Banking Industry 2020 Second Quarter Goodwill Impairment Update
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%
Cedar Hill has completed over 150 Goodwill Impairment Tests during last 5 years.