Capital
Intangible Assets
Also known as Intangibles
Intangible assets are non-physical assets other than goodwill: core deposit intangibles, customer relationships, and certain servicing rights. Most are deducted from regulatory capital, so like goodwill they widen the gap between book and tangible equity.
How is Intangible Assets calculated?
Reported on Schedule RC separately from goodwill. Core deposit intangibles arise in acquisitions to value the acquired deposit base; they amortize over time. Most intangibles are deducted from CET1 capital, though limited mortgage servicing assets can be partially included.
Why does Intangible Assets matter?
Intangibles, with goodwill, are what separate book equity from tangible common equity. They reflect acquisition activity and, because regulators largely disallow them, they overstate the capital actually available to absorb losses.
How do you interpret Intangible Assets?
Read intangibles alongside goodwill and tangible common equity. Amortizing intangibles shrink over time, so a high balance at a recently acquisitive bank will decline; the key question is how much of reported equity survives once all intangibles are stripped out.
What do Intangible Assets levels indicate?
| Range | Label | Interpretation |
|---|---|---|
| Minimal | Strong | Tangible equity ≈ book equity. |
| Moderate | Adequate | Modest acquisition-related intangibles. |
| High vs. equity | Watch | Meaningful share of equity is regulator-disallowed. |
| Dominant | Concern | Tangible capital materially below reported equity. |
Worked example
Frequently asked
What is a core deposit intangible?
When a bank acquires another, the value of the acquired low-cost deposit relationships is booked as a core deposit intangible. It amortizes over the expected life of those deposits and is deducted from regulatory capital.
Are intangibles the same as goodwill?
Goodwill is the residual premium over fair value of net assets; other intangibles (core deposit intangibles, servicing rights) are separately identifiable. Both are reported on Schedule RC and largely deducted from CET1.
Sources
Explore 4,196 FDIC-insured banks
Browse every FDIC-insured institution by state, asset tier, or name, with quarterly FFIEC filing data behind each profile.