Depository Institutions

Goodwill Impairment Testing

Mercer Capital’s goodwill impairment testing and intangible asset valuation services reflect a comprehensive understanding of the accounting rules coupled with in-depth valuation, financial reporting, and financial institution industry knowledge

While there are some common elements to all impairment tests, Mercer Capital can assist you with the unique issues related to the financial services industry.

We have been retained by financial institutions across the country to provide independent valuation opinions regarding the fair value of reporting units for purposes of performing Step 1 of the impairment test prescribed by ASC 350.

In the event that potential goodwill impairment is indicated based upon the results of the Step 1 test, Mercer Capital provides valuations of the financial assets, liabilities, and intangible assets that may be required to determine the amount of the impairment under Step 2 of the impairment test. We have appraised many types of intangible assets, including core deposit intangible assets, employment agreements, trademarks, and customer relationships, among others.

With respect to financial assets and liabilities, Mercer has provided valuations of loan and time deposit portfolios, as well as other esoteric assets for which quoted market prices are unavailable. We are experts in the requirements of ASC 350 (formerly SFAS 142) and can help you navigate the ever-changing issues in goodwill and business combination accounting.

Professionals

Andrew K. Gibbs, CFA, CPA/ABV

Senior Vice President

Jeff K. Davis, CFA

Managing Director

Jay D. Wilson, Jr., CFA, ASA, CBA

Senior Vice President

Eden G. Stanton, CFA, ASA

Vice President

Mary Grace Arehart, CFA

Vice President

Research and Resources

Does Your Bank Need an Interim Impairment Test Due to the Economic Impact of COVID-19?

Goodwill impairment testing is typically performed annually. But the unprecedented events precipitated by the COVID-19 pandemic now raise questions whether an interim goodwill impairment test is warranted. In this article, we discuss if your bank might need an interim impairment test and describe how an impairment test works.

Obtain a Proposal

Bank Impairment Testing Proposal Request

Mercer Capital is pleased to prepare a proposal for impairment testing services for your bank or bank holding company.

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Depository Institutions

Mercer Capital has extensive experience assisting banks, thrifts, and credit unions with corporate valuation requirements, transactional advisory services, financial reporting, and strategic decisions.

These monthly newsletters are focused on bank activity in five U.S. regions. Each edition of Bank Watch highlights various banking metrics, including public market indicators, M&A market indicators, and key indices of the top financial institutions in your region, providing insight into financial institution valuation issues.

Texas Bank Snapshot

These monthly updates focus on bank activity in Texas. Each edition highlights various banking metrics, including public market indicators, M&A market indicators, and key indices of the top financial institutions in Texas, providing insight into financial institution valuation issues.

Regional Bank Peer Reports

Updated weekly, Mercer Capital’s Regional Public Bank Peer Reports offer a closer look at the market pricing and performance of publicly traded banks in the states of five U.S. regions.