Texas Community Bancshares, Inc. Goodwill & Intangibles Disclosure
Note 22 - Core Deposit Intangible
Core deposit intangible assets were recorded as part of the MapleMark Edgewood Branch Acquisition.
The components of core deposit intangible assets were as follows:
December 31, | ||||||
| 2023 |
| 2022 | |||
Core deposit intangible | $ | 926 | $ | 926 | ||
Less accumulated amortization |
| (661) |
| (529) | ||
Net core deposit intangible | $ | 265 | $ | 397 | ||
Core deposit intangible assets are amortized on a straight-line basis over their estimated life of 7 years. There was $132 of amortization expense related to intangible assets for each of the years ended December 31, 2023 and 2022. The estimated aggregate future amortization expense for core deposit intangible assets remaining as of December 31, 2023, was as follows:
Years ended December 31: |
| ||
2024 | $ | 132 | |
2025 |
| 133 | |
Total | $ | 265 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2023 | Mar 27, 2024 | Showing above |
| 2022 | Mar 30, 2023 | |
| 2021 | Mar 23, 2022 | |
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.