SB FINANCIAL GROUP, INC. Goodwill & Intangibles Disclosure
Note 6: Goodwill and Intangibles
The balance of goodwill was $23.2 million for the twelve months ended December 31, 2024, and December 31, 2023.
Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value. Goodwill is tested on the last day of the last quarter of each calendar year. At December 31, 2024, the Company determined that no events had occurred to change the assessment from the quantitative analysis, and it was more likely than not that the fair value of the reporting unit exceeded its carrying value, including goodwill. The qualitative assessment indicated that it was more likely than not that the fair value of the reporting unit exceeded its carrying value, resulting in no impairment.
Carrying basis and accumulated amortization of intangible assets were as follows at December 31:
| 2024 | 2023 | |||||||||||||||
| ($ in thousands) | Gross Carrying | Accumulated | Gross Carrying | Accumulated | ||||||||||||
| Amount | Amortization | Amount | Amortization | |||||||||||||
| Core deposits intangible | $ | 660 | $ | (303 | ) | $ | 660 | $ | (236 | ) | ||||||
| Customer relationship intangible | 200 | (200 | ) | |||||||||||||
| Banking intangibles | $ | 660 | $ | (303 | ) | $ | 860 | $ | (436 | ) | ||||||
Amortization expense for intangibles for the years ended December 31, 2024 and 2023 was $0.07 million and $0.09 million, respectively. Estimated amortization expense for each of the following five years is immaterial.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Mar 7, 2025 | Showing above |
| 2023 | Mar 8, 2024 | |
| 2022 | Mar 7, 2023 | |
| 2021 | Mar 7, 2022 | |
| 2020 | Mar 8, 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.