Glacier Bancorp Inc. in Kalispell, Mont., said late Thursday that it intends to take a goodwill impairment charge of between $30 million and $35 million in the third quarter to reflect the recent decline in its market value.
The charge will result in a loss for the quarter that ended Sept. 30, the company said, and could wipe out profits for the second half of this year. Through the first six months of 2011, the $7.1 billion-asset Glacier earned $22.2 million.
In a news release, Glacier President and Chief Executive Officer Mick Blodnick said the recent volatility in bank stock prices necessitated a review of certain reporting segments for potential goodwill impairment. The company's shares are down more than 20% since the start of 2011 and are trading at slightly below book value.
Blodnick added that much of the goodwill deemed to be impaired were related to historical acquisitions, some of which were completed over a decade ago. Glacier, a multi-bank holding company with operations in four Mountain West states, has acquired more than a dozen banks since 1998.
The company said that without the impairment charge it would have reported improved third-quarter results when it announces its earnings on Oct. 27.