Banking Industry 2020 First Quarter Goodwill Impairment Update

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 NameStateParent Price to Book at 3/31/2020Goodwill Impairment Losses ($000)
BBVA USAAL23%

2,185,000

Umpqua BankOR56%

1,783,846

Pacific Western BankCA43%

1,470,000

HSBC Bank USA, N.AVA70%

784,000

Great Western BankSD60%

740,562

TIAA, FSBFLN/A

528,354

Cadence Bank, N.AGA34%

443,695

CIT Bank, N.ACA28%

323,074

OPUS BankCAN/A

96,229

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 BanksQ1 2020
1: Number of Banks concluding "No triggering event had occurred"34.00%
2: Number of Banks performing Interim Goodwill Impairment Tests3952.00%
% of Tests
A. Number of Banks performing Qualitative Goodwill Impairment Tests1948.72%
B. Number of Banks performing Quantitative Goodwill Impairment Tests1641.03%
C. Number of Banks performing Non-Specific Goodwill Impairment Tests410.26%
3: Number of Banks silent with regard to Interim Goodwill Impairment Testing3344.00%

Cedar Hill has completed over 150 Goodwill Impairment Tests during last 5 years