article thumbnail

The Dark Art of Bank Fair-Value Accounting Needs More Transparency

Reynolds Holding

That was one of the justifications for the Federal Reserve’s adoption of Current Expected Credit Loss , or CECL, reserve accounting for banks in 2016 — despite many complaints about the negative impact on reported results and the “price” that CECL imposed on growing lenders. and its CET1 ratio would be cut from 14.3 percent to 8.9

Banking 59
article thumbnail

Minority Shareholder’s Petition to Dissolve Seltzer Business Loses Its Fizz

Farrel Fritz

For one of the “outside” shareholders who drew no salary and sought to monetize her 25% share of the trapped-in value of the real estate, those factors most likely contributed to her decision to sue for judicial dissolution of the three companies, claiming she was the victim of a freeze-out. The Dissolution Petitions. Elaine Loses at Trial.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Ready Capital and Broadmark Realty Capital Announce Definitive Merger Agreement

Benzinga

per Broadmark share, representing a 41% premium or approximately 0.85x tangible book value as of December 31, 2022. Proven Acquisition Track Record Provides Long-Term Upside to Shareholders: Integration and post-close growth strategy informed by Ready Capital's six mergers and acquisitions since 2016.

article thumbnail

Top 5 Accounting Issues to Master to Avoid Snags in SPAC IPOs

ThomsonReuters

Goodwill is an accounting term for the figure that is recorded on the balance sheet after subtracting the book value of a business from the higher price that was paid for it. 2016-15 and SEC Accounting and Reporting Update Service [SARU] No. Relative to other M&A transactions, it’s off the charts,” Steimel said.

article thumbnail

Mid Penn Bancorp, Inc. Reports First Quarter Earnings and Declares Dividend

Benzinga

Book value per common share was $32.15 for the fourth quarter of 2022, while tangible book value per share (1) was $24.52 Resilient profitability: Earnings of $11.2 for the first quarter, compared to $32.24 at March 31, 2023, compared to $24.59, at December 31, 2022. million compared to net interest income of $38.6

article thumbnail

Why Are Acquiring Companies So Reluctant to Amortize Purchased Goodwill?

Reynolds Holding

they opted for pooling accounting, in which goodwill was not recognized and therefore not amortized; the book value of the assets and liabilities of the two businesses were just added together. 2016) ABInBev-SABMiller deal to yield $2billion in fees and taxes, Financial Times , 27 August 2016 Massoudi, A. In the U.S.

article thumbnail

Valuation Decision Finds LLC “Worthless, Worthless, Worthless”

Farrel Fritz

Garibaldi valued Quattro using an asset approach based upon its “book value” as stated in its financial statement and tax return for the period ended December 31, 2015. million shares in December 2016 for $.01, 01, not per share, but per 1.1 million shares. Defendant does not challenge this transaction.