Goodwill Impairment Charge

The goodwill impairment charge is a non-cash adjustment which has no affect on cash flows, liquidity or tangible capital. Additionally, since goodwill is excluded from regulatory capital, the impairment charge has no impact on regulatory capital ratios. There will be no tax benefit associated with this charge. The determination of the impairment charge followed the Company´s annual review of its goodwill which was performed by a third party, in accordance with Statement of Financial Accounting Standards No. 142. The Company may continues to exceed requirements to be considered "well capitalized" in accordance with regulatory standards.

For example, recently Baltimore County Savings Bank, announced that, during the three months ending September 30, 2009, it will record a $2.3 million impairment charge to write off all goodwill recorded in connection with its acquisition in 2002 of WHG Bancshares Corporation.

Updated On: 09.10.04