Message from Mike Percy, Managing Partner, Financial Services
Dear FIEB readers,
With certain states tightening restrictions due to the rise in infection rates, I hope this message finds you, your friends, your family, and your colleagues safe.
Third quarter financial reporting results are now largely complete. For roughly 400 public banks filing with the SEC, there were only a handful of goodwill impairments. Other than goodwill, there were approximately 30 impairments recorded, with the most common being for mortgage servicing rights. Other impairments included debt securities, right of use assets, and long-lived assets. Nonperforming loans remained comparable to the second quarter. For the quarterly provision for credit losses over average loans, third quarter was less than the second quarter. However, CECL adopters saw a significant decline, while incurred-loss banks saw a slight decline.
As we move through the fourth quarter, I wish you, your family, and your friends a delightful Thanksgiving, whether it’s in person or virtually.