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) |
|---|---|---|---|
| BBVA USA | AL | 23% | 2,185,000 |
| Umpqua Bank | OR | 56% | 1,783,846 |
| Pacific Western Bank | CA | 43% | 1,470,000 |
| HSBC Bank USA, N.A | VA | 70% | 784,000 |
| Great Western Bank | SD | 60% | 740,562 |
| TIAA, FSB | FL | N/A | 528,354 |
| Cadence Bank, N.A | GA | 34% | 443,695 |
| CIT Bank, N.A | CA | 28% | 323,074 |
| OPUS Bank | CA | N/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 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% |