EQUITY BANCSHARES INC Goodwill & Intangibles Disclosure
NOTE 7 – GOODWILL AND CORE DEPOSIT INTANGIBLES
The assets and liabilities acquired in business combinations are recorded at their estimated fair values at the acquisition date. The excess of the purchase price over the estimated fair value of the net assets for tax free acquisitions is recorded as goodwill, none of which is deductible for tax purposes. The excess of the purchase price over the estimated fair value of the net assets for taxable acquisitions is recorded as goodwill and is deductible for tax purposes.
As of December 31, 2025, and December 31, 2024, management conducted a qualitative evaluation of current economic conditions, Company performance, stock price and other pertinent factors, finally concluding that no goodwill impairment is warranted at this time.
The carrying basis of goodwill and core deposit intangibles as of and for the years ended December 31, 2025 and 2024, were as follows.
|
|
Goodwill |
|
|
Core Deposit |
|
||
Balance as of January 1, 2024 |
|
$ |
53,101 |
|
|
$ |
7,222 |
|
Acquired in acquisition |
|
|
— |
|
|
|
12,036 |
|
Amortization |
|
|
— |
|
|
|
(4,289 |
) |
Balance as of December 31, 2024 |
|
|
53,101 |
|
|
|
14,969 |
|
Acquired in acquisition |
|
|
29,000 |
|
|
|
11,168 |
|
Amortization |
|
|
— |
|
|
|
(4,503 |
) |
Balance as of December 31, 2025 |
|
$ |
82,101 |
|
|
$ |
21,634 |
|
Estimated core deposit intangibles amortization expense for each of the following five years and thereafter is listed in the following table.
Expensed in one year or less |
|
$ |
4,585 |
|
Expensed after one year through two years |
|
|
3,745 |
|
Expensed after two years through three years |
|
|
2,997 |
|
Expensed after three years through four years |
|
|
2,476 |
|
Expensed after four years through five years |
|
|
2,100 |
|
Thereafter |
|
|
5,731 |
|
Total |
|
$ |
21,634 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 6, 2026 | Showing above |
| 2024 | Mar 7, 2025 | |
| 2023 | Mar 7, 2024 | |
| 2022 | Mar 9, 2023 | |
| 2021 | Mar 9, 2022 | |
| 2020 | Mar 9, 2021 | |
| 2019 | Mar 10, 2020 | |
| 2018 | Mar 20, 2019 | |
| 2017 | Mar 16, 2018 | |
| 2016 | Mar 16, 2017 | |
| 2015 | Mar 17, 2016 | |
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.