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 NameStateParent Price to Book at 3/31/2020Goodwill Impairment Losses ($000)
Santander Bank, N.A.MA37%


Berkshire BankMA32%


Howard BankMD63%


Riverview BankPA42%


Virginia Commonwealth BankVA63%


CrossFirst BankKS83%


City National Bank of FloridaFLN/A


Heritage BankNEN/A


Northpointe BankMIN/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 BanksQ1 2020Q2 2020
1: Number of Banks concluding "No triggering event had occurred"34.00%4.00%
2: Number of Banks performing Interim Goodwill Impairment Tests4152.00%54.67%
% of Tests% of Tests
A. Number of Banks performing Qualitative Goodwill Impairment Tests1848.72%43.90%
B. Number of Banks performing Quantitative Goodwill Impairment Tests1941.03%46.34%
C. Number of Banks performing Non-Specific Goodwill Impairment Tests410.26%9.76%
3: Number of Banks silent with regard to Interim Goodwill Impairment Testing3144.00%41.33%

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