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