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Goodwill and Intangible Assets | 3 Months Ended
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Mar. 31, 2019
Goodwill And Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | NOTE 8 – Goodwill and Intangible Assets The carrying amount of goodwill and intangible assets attributable to each of our reporting segments is presented in the following table (in thousands):
|  | December 31, 2018 |  |  | Adjustments |  |  | Write-off |  |  | March 31, 2019 |
Goodwill |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Global Wealth Management |  | $ | 340,395 |  |  | $ | 6,998 |  |  | $ | — |  |  | $ | 347,393 |
Institutional Group |  |  | 694,284 |  |  |  | 14,434 |  |  |  | — |  |  |  | 708,718 |
|  | $ | 1,034,679 |  |  | $ | 21,432 |  |  | $ | — |  |  | $ | 1,056,111 |
|  | December 31, 2018 |  |  | Net Additions |  |  | Amortization |  |  | March 31, 2019 |
Intangible assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Global Wealth Management |  | $ | 60,532 |  |  | $ | — |  |  | $ | (1,847 | ) |  | $ | 58,685 |
Institutional Group |  |  | 59,123 |  |  |  | 7,768 |  |  |  | (1,746 | ) |  |  | 65,145 |
|  | $ | 119,655 |  |  | $ | 7,768 |  |  | $ | (3,593 | ) |  | $ | 123,830 |
On January 2, 2019, the Company completed the acquisition of First Empire. The acquisition was accounted for under the acquisition method of accounting in accordance with ASC 805, “Business Combinations.” Accordingly, goodwill was measured as the excess of the acquisition-date fair value of the consideration transferred over the amount of acquisition-date identifiable assets acquired net of assumed liabilities. We recorded $22.1 million of goodwill and intangible assets in the consolidated statement of financial condition, which has been allocated to our company’s Institutional Group segment. The allocation of the purchase price of First Empire is preliminary and will be finalized upon completion of the analysis of the fair values of the net assets of First Empire as of the acquisition date and the identified intangible assets. The final goodwill recorded on the consolidated statement of financial condition may differ from that reflected herein as a result of future measurement period adjustments and the recording of identified intangible assets. See Note 1 in the notes to our consolidated financial statements for additional information regarding the acquisition of First Empire. The goodwill represents the value expected from the synergies created through the operational enhancement benefits that will result from the integration of the First Empire business, its employees and customer base. Goodwill is expected to be deductible for federal income tax purposes. The adjustments to goodwill included in our Global Wealth Management segment during the three months ended March 31, 2019 are primarily attributable to the Business Bank acquisition, which closed on August 31, 2018. Amortizable intangible assets consist of acquired customer relationships, trade name, investment banking backlog, and non-compete agreements that are amortized over their contractual or determined useful lives. Intangible assets subject to amortization as of March 31, 2019 and December 31, 2018 were as follows (in thousands):
|  | March 31, 2019 |  |  | December 31, 2018 |
|  | Gross Carrying Value |  |  | Accumulated Amortization |  |  | Gross Carrying Value |  |  | Accumulated Amortization |
Customer relationships |  | $ | 160,819 |  |  | $ | 67,661 |  |  | $ | 160,745 |  |  | $ | 65,254 |
Trade name |  |  | 26,831 |  |  |  | 12,136 |  |  |  | 26,831 |  |  |  | 11,755 |
Core deposits |  |  | 8,615 |  |  |  | 1,384 |  |  |  | 8,615 |  |  |  | 816 |
Non-compete agreements |  |  | 2,714 |  |  |  | 1,674 |  |  |  | 2,603 |  |  |  | 1,452 |
Investment banking backlog |  |  | 1,445 |  |  |  | 1,311 |  |  |  | 1,431 |  |  |  | 1,293 |
Estimated First Empire intangibles (1) |  |  | 7,700 |  |  |  | 128 |  |  |  | — |  |  |  | — |
|  | $ | 208,124 |  |  | $ | 84,294 |  |  | $ | 200,225 |  |  | $ | 80,570 |
(1) See discussion regarding the allocation of the estimated goodwill and intangibles recorded for the First Empire acquisition. Amortization expense related to intangible assets was $3.6 million and $2.7 million for the three months ended March 31, 2019 and 2018, respectively. The weighted-average remaining lives of the following intangible assets at March 31, 2019, are: customer relationships, 10.0 years; trade name, 9.4 years; core deposits, 4.8 years; non-compete agreements, 9.6 years; and First Empire intangibles, 14.8 years. We have an intangible asset that is not subject to amortization and is, therefore, not included in the table below. As of March 31, 2019, we expect amortization expense in future periods to be as follows (in thousands):
Fiscal year |  |  |  |
Remainder of 2019 |  | $ | 10,577 |
2020 |  |  | 13,586 |
2021 |  |  | 12,732 |
2022 |  |  | 11,916 |
2023 |  |  | 11,249 |
Thereafter |  |  | 61,652 |
|  | $ | 121,712 |

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