Seacoast Banking's Ill Will

Things have gotten so bad at Florida’s Seacoast Banking (SBCF) that it no longer has any goodwill. Really.

A week after the bank announced a $13.2 million second-quarter loss, the struggling lender said it has taken an impairment charge on its remaining $49.8 million in goodwill. Seacoast, in a regulatory filing, says: “The charge will eliminate the Company’s goodwill asset.”

It’s a bit surprising that Seacoast didn’t take the impairment charge when it announced earnings. But the bank says it wasn’t quite done with its calcuations.

Goodwill must be a hard thing to give up–especially when there’s so little to go around in the banking world these days.

Comments

[District Ba...:]

Not sure what the point of this article is.... goodwill is one of the intangible assets that banks hold on their balance sheet (along with core deposit intangibles) - and any bank investor worth his salt is looking at things on a tangible basis (tangible book value, tangible capital levels, etc). Thus, while goodwill impairment is a painful charge to take from a GAAP EPS standpoint, it is meaningless from a tangible capital standpoint.

Aug 05 10:37 AM

[greedcanbgood:]

Correct, but if they're taking a hit on goodwill, it may mean that there's not much left...

Aug 11 10:35 AM