Goodwill Impairment second Quarter 2020 Goodwill Impairment Tracking
In Q2 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.
Q2 2020 the banking industry recorded $2.5 billion in goodwill impairment losses
Second Quarter 2020 Largest Goodwill Impairment Losses ($000)
| Company Name | State | Parent Price to Book at 3/31/2020 | Goodwill Impairment Losses ($000) |
|---|---|---|---|
| Santander Bank, N.A. | MA | 37% | 1,848,228 |
| Berkshire Bank | MA | 32% | 530,586 |
| Howard Bank | MD | 63% | 34,500 |
| Riverview Bank | PA | 42% | 24,754 |
| Virginia Commonwealth Bank | VA | 63% | 10,503 |
| CrossFirst Bank | KS | 83% | 7,397 |
| City National Bank of Florida | FL | N/A | 3,595 |
| Heritage Bank | NE | N/A | 1,951 |
| Northpointe Bank | MI | N/A | 1,281 |
Cedar Hill Reviewed Q2 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 | Q2 2020 |
|---|---|---|---|
| 1: Number of Banks concluding "No triggering event had occurred" | 3 | 4.00% | 4.00% |
| 2: Number of Banks performing Interim Goodwill Impairment Tests | 41 | 52.00% | 54.67% |
| % of Tests | % of Tests | ||
| A. Number of Banks performing Qualitative Goodwill Impairment Tests | 18 | 48.72% | 43.90% |
| B. Number of Banks performing Quantitative Goodwill Impairment Tests | 19 | 41.03% | 46.34% |
| C. Number of Banks performing Non-Specific Goodwill Impairment Tests | 4 | 10.26% | 9.76% |
| 3: Number of Banks silent with regard to Interim Goodwill Impairment Testing | 31 | 44.00% | 41.33% |