OHIO VALLEY BANC CORPOVBC

OHIO VALLEY BANC CORP Goodwill & Intangibles Disclosure

10-KFiled Mar 13, 20262 min read
Note F – Goodwill and Intangible Assets
Goodwill:  The reported amount of goodwill as of December 31 was as follows:
    Gross Carrying Amount
  
   
2025
    
2024
  
Goodwill
  
$
7,319
    
$
7,319
  


Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value. At November 30, 2025, the Company performed a quantitative goodwill impairment test to identify potential impairment by comparing the fair value of the relevant reporting entity with its carrying value, including goodwill. The Company concluded it is unlikely that impairment of goodwill has occurred. There were no changes in circumstances as of December 31, 2025.



During 2024, the general economic conditions that the Company operates in had trended from generally stable to improving in select markets in relation to economic development. While asset levels continued to grow and capital levels remained strong, the Company’s stock price continued to trade below book value during 2024. Given that the Company’s stock is thinly traded and has institutional ownership of less than 10%, the market price may not always be reflective of actual value.  Furthermore, the Company’s stock price to book will typically trend below peers due to carrying higher capital levels than peers. Due to these factors, management could not conclude that evidence provided by a qualitative assessment would support that it is more likely than not that the fair value of goodwill is more than the carrying amount. Therefore, the Company proceeded to complete the quantitative impairment test using November 30, 2024 as the measurement date.



The quantitative impairment test includes comparing the carrying value of the reporting unit, including the existing goodwill and intangible assets, to the fair value of the reporting unit. If the carrying amount of the reporting unit exceeds its fair value, a goodwill impairment charge is recorded for the amount in which the carrying value of the reporting unit exceeds the fair value of the reporting unit, up to the amount of goodwill attributed to the reporting unit. After performing the quantitative testing, it was determined that the reporting unit’s fair value exceeded the reporting unit’s carrying value as of November 30, 2024, resulting in no impairment for the year ended December 31, 2024.


Acquired intangible assets:  Acquired intangible assets were as follows at year-end:

   
2025
   
2024
 
   
Gross Carrying
Amount
    
Accumulated
Amortization
    
Gross Carrying
Amount
    
Accumulated
Amortization
  
Amortized intangible assets:
                        
Core deposit intangibles
 
$
—
    
$
—
    
$
738
    
$
738
  

Aggregate amortization expense was $0 for 2025 and $8 for 2024.

Historical Timeline

Fiscal YearFiled
2025Mar 13, 2026Showing above
2024Mar 14, 2025
2023Mar 15, 2024
2022Mar 23, 2023
2021Mar 17, 2022
2020Mar 24, 2021
2019Mar 16, 2020
2018Mar 18, 2019
2017Mar 16, 2018
2016Mar 16, 2017

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.

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