Goodwill Impairment First Quarter 2020 Goodwill Impairment Tracking
In Q1 2020, many banks had determined that the economic impact of the COVID-19 pandemic combined with the significant decline in their stock trading value produced a “triggering event” forcing interim goodwill testing.
In the 2008 and 2009, during the Great Recession, the industry had $50 billion in goodwill impairment losses. At 6/30/2020 there was approximately $340.6 billion in goodwill in US commercial banks and savings institutions.
Q1 2020 the banking industry recorded $8.6 billion in goodwill impairment losses.
First Quarter 2020 Largest Goodwill Impairment Losses ($000)
|Company Name||State||Parent Price to Book at 3/31/2020||Goodwill Impairment Losses ($000)|
|Pacific Western Bank||CA||43%||
|HSBC Bank USA, N.A||VA||70%||
|Great Western Bank||SD||60%||
|Cadence Bank, N.A||GA||34%||
|CIT Bank, N.A||CA||28%||
Cedar Hill Reviewed Q1 2020 10-Qs of Top 75 Largest Banks. What are they disclosing about Goodwill Impairment?
|Review of Forms 10-Qs Top 75 Publicly Traded Banks||# of Banks||Q1 2020|
|1: Number of Banks concluding "No triggering event had occurred"||3||4.00%|
|2: Number of Banks performing Interim Goodwill Impairment Tests||39||52.00%|
|% of Tests|
|A. Number of Banks performing Qualitative Goodwill Impairment Tests||19||48.72%|
|B. Number of Banks performing Quantitative Goodwill Impairment Tests||16||41.03%|
|C. Number of Banks performing Non-Specific Goodwill Impairment Tests||4||10.26%|
|3: Number of Banks silent with regard to Interim Goodwill Impairment Testing||33||44.00%|