QCR HOLDINGS INC Goodwill & Intangibles Disclosure
Note 6. Goodwill and Intangibles
The following table presents the changes in the carrying amount of goodwill for the years ended December 31, 2025, 2024 and 2023:
| | 2025 | | 2024 | | 2023 | |||
(dollars in thousands) | |||||||||
Balance at the beginning of period | $ | 138,595 | $ | 139,027 | $ | 137,607 | |||
Acquisition of GFED - measurement period adjustment | — | — | 1,420 | ||||||
Goodwill impairment - m2 restructuring | — | (432) | — | ||||||
Balance at the end of period | $ | 138,595 | $ | 138,595 | $ | 139,027 | |||
Goodwill impairment expense totaled $432 thousand during the year ended December 31, 2024. The decision to discontinue offering new loans and leases through m2 was a triggering event that necessitated an interim impairment evaluation of goodwill.
The measurement period adjustment of $1.4 million during the year ended December 31, 2023 related to the changes to acquired deferred income taxes of GFED.
The following table presents goodwill by reportable segment:
December 31, 2025 | December 31, 2024 | December 31, 2023 | |||||||
(dollars in thousands) | |||||||||
Commercial banking: | |||||||||
QCBT | $ | 2,791 | $ | 2,791 | $ | 3,223 | |||
CRBT |
| 14,980 |
| 14,980 |
| 14,980 | |||
CSB | 9,888 | 9,888 | 9,888 | ||||||
GB |
| 110,936 |
| 110,936 |
| 110,936 | |||
$ | 138,595 | $ | 138,595 | $ | 139,027 | ||||
At November 30, 2025 and 2024, the Company’s management performed an annual internal assessment of goodwill at the reporting unit level and determined no impairment existed at either date.
Note 6. Goodwill and Intangibles (continued)
The following table presents the changes in core deposit intangibles (included in Intangibles on the consolidated balance sheets) during the years ended December 31, 2025, 2024 and 2023:
| | 2025 | 2024 | 2023 | |||||
(dollars in thousands) | |||||||||
Balance at the beginning of the period | $ | 11,061 | $ | 13,821 | $ | 16,759 | |||
Amortization expense |
| (2,981) |
| (2,760) |
| (2,938) | |||
Balance at the end of the period | $ | 8,080 | $ | 11,061 | $ | 13,821 | |||
| |
| |
| | ||||
Gross carrying amount | $ | 29,519 | $ | 29,519 | $ | 29,519 | |||
Accumulated amortization |
| (21,439) |
| (18,458) |
| (15,698) | |||
Net book value | $ | 8,080 | $ | 11,061 | $ | 13,821 | |||
The following table presents the core deposit intangibles by reportable segment:
December 31, 2025 | December 31, 2024 | December 31, 2023 | |||||||
(dollars in thousands) | |||||||||
Commercial Banking: | |||||||||
CRBT | $ | 387 | $ | 628 | $ | 883 | |||
CSB | — | 865 | 1,430 | ||||||
GB | 7,693 | 9,568 | 11,508 | ||||||
$ | 8,080 | $ | 11,061 | $ | 13,821 | ||||
The following table presents the estimated amortization of the core deposit intangibles:
| Amount | ||
Years ending December 31, | (dollars in thousands) | ||
2026 | $ | 2,024 | |
2027 |
| 1,874 | |
2028 |
| 1,316 | |
2029 |
| 944 | |
2030 |
| 889 | |
Thereafter |
| 1,033 | |
$ | 8,080 | ||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Mar 11, 2022 | |
| 2020 | Mar 12, 2021 | |
| 2019 | Mar 13, 2020 | |
| 2018 | Mar 15, 2019 | |
| 2017 | Mar 12, 2018 | |
| 2016 | Mar 10, 2017 | |
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.