NATIONAL BANKSHARES INC Goodwill & Intangibles Disclosure
Note 17: Goodwill and Other Intangibles
The following table presents information on goodwill and core deposit intangible assets during the year ended December 31, 2025.
|
|
Beginning Balance |
|
|
Additions |
|
|
Measurement Period Adjustment |
|
|
Accumulated Amortization |
|
|
Ending Balance |
|
|||||
Goodwill |
|
$ |
10,718 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
10,718 |
|
Core deposit intangible |
|
$ |
1,863 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
(373 |
) |
|
$ |
1,490 |
|
The Company conducts an impairment review of goodwill and core deposit intangibles at least annually and more frequently if certain impairment indicators are evident. Testing for 2025 and 2024 did not indicate impairment.
Core deposit intangible amortization expense for the years ended December 31, 2025 and 2024 was $373 and $237, respectively. Estimated future amortization of the core deposit intangible is as follows:
|
|
Amortization Expense |
|
|
2026 |
|
$ |
331 |
|
2027 |
|
|
290 |
|
2028 |
|
|
248 |
|
2029 |
|
|
207 |
|
2030 |
|
|
165 |
|
Thereafter |
|
|
249 |
|
Total amortizing core deposit intangible |
|
$ |
1,490 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 27, 2026 | Showing above |
| 2024 | Mar 28, 2025 | |
| 2023 | Mar 19, 2024 | |
| 2022 | Mar 10, 2023 | |
| 2021 | Mar 11, 2022 | |
| 2020 | Mar 18, 2021 | |
| 2019 | Mar 11, 2020 | |
| 2018 | Mar 13, 2019 | |
| 2015 | Mar 9, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.