Enterprise Financial Services delays earnings report
Enterprise Financial Services Corp., parent of Enterprise Bank, says it will delay its earnings report while it evaluates goodwill on its balance sheet for impairment.
Enterprise had planned to announce earnings today. The company now says it will release them before May 11.
Enterprise is the eighth largest bank in St. Louis, with a 2 percent share of the region’s deposits.
Goodwill is the estmated value of intangible things, such as a business’s name and customer loyalty. Banks generally acquire goodwill by buying other banks. Enterprise bought two banks in Kansas City in recent years. It now has $48 million in goodwill on its books, according to its year-end financial statement.
Companies that have seen their stock prices drop must assess the value of their goodwill regularly. A reduction would cut reported profits.
Enterprise earned a $4.4 million profit last year, down from $17.6 million in 2007.
Jim Gallagher is a business reporter, covering banking and finance. He also writes a Sunday column on personal finance. 
Never understood that “goodwill” thing. So if the shareholders decide to liquidate just exactly how do you cash that “goodwill” check and how do you get a sucker to write you a check for the “goodwill” asset sitting in the vault? When you find them have them contact me, I have about million dollars of “goodwill” sitting in my bedroom closet at home I need to unload.