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%||
|Virginia Commonwealth Bank||VA||63%||
|City National Bank of Florida||FL||N/A||
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%|