PROSPERITY BANCSHARES INC Goodwill & Intangibles Disclosure
3. GOODWILL AND CORE DEPOSIT INTANGIBLES
Changes in the carrying amount of the Company’s goodwill and core deposit intangibles for fiscal years 2025 and 2024 were as follows:
|
|
Goodwill |
|
|
Core Deposit Intangibles |
|
||
|
|
(Dollars in thousands) |
|
|||||
Balance as of December 31, 2023 |
|
$ |
3,396,086 |
|
|
$ |
63,994 |
|
Less: |
|
|
|
|
|
|
||
Amortization |
|
|
— |
|
|
|
(15,670 |
) |
Add: |
|
|
|
|
|
|
||
Measurement period adjustment of First Bancshares merger |
|
|
316 |
|
|
|
— |
|
Lone Star merger |
|
|
106,727 |
|
|
|
17,723 |
|
Balance as of December 31, 2024 |
|
|
3,503,129 |
|
|
|
66,047 |
|
Less: |
|
|
|
|
|
|
||
Amortization |
|
|
— |
|
|
|
(14,442 |
) |
Add: |
|
|
|
|
|
|
||
Measurement period adjustment of Lone Star merger |
|
|
(2 |
) |
|
|
— |
|
Balance as of December 31, 2025 |
|
$ |
3,503,127 |
|
|
$ |
51,605 |
|
Management performs an evaluation annually, and more frequently if a triggering event occurs, of whether any impairment of the goodwill or core deposit intangibles has occurred. If any such impairment is determined, a write down is recorded. Based on the Company’s annual goodwill impairment test, management does not believe any of its goodwill is impaired as of December 31, 2025.
Core deposit intangibles are being amortized on a non-pro rata basis over their estimated lives, which the Company believes is between 10 and 15 years. The estimated aggregate future amortization expense for core deposit intangibles remaining as of December 31, 2025, is as follows (dollars in thousands):
2026 |
|
$ |
12,763 |
|
2027 |
|
|
11,262 |
|
2028 |
|
|
9,958 |
|
2029 |
|
|
7,609 |
|
Thereafter |
|
|
10,013 |
|
Total |
|
$ |
51,605 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 27, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Feb 26, 2021 | |
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.