Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2015

Note 9.

Goodwill and Other Intangible Assets

Goodwill

Goodwill represents the excess of the purchase price over the fair value of net assets acquired. Goodwill is allocated to the appropriate reporting unit when acquired, if applicable. The estimated future value of the cash consideration is recognized as goodwill at the acquisition date. The Company analyzed the carrying value of goodwill as of October 31, 2015, and determined that no impairment charge was necessary.

The following table presents the activity in goodwill, by reporting unit, in the periods indicated:


(Amounts in thousands)	Community Banking			Insurance Services			Total
Beginning balance, January 1, 2015	$	91,455		$	9,267		$	100,722
Acquisitions and dispositions, net		—			(324	)		(324	)
Cash consideration paid		—			88			88

Ending balance, December 31, 2015	$	91,455		$	9,031		$	100,486

Beginning balance, January 1, 2014	$	96,541		$	8,914		$	105,455
Acquisitions and dispositions, net		(6,454	)		—			(6,454	)
Cash consideration paid		1,368			353			1,721

Ending balance, December 31, 2014	$	91,455		$	9,267		$	100,722

Beginning balance, January 1, 2013	$	96,717		$	8,149		$	104,866
Acquisitions and dispositions, net		(176	)		324			148
Cash consideration paid		—			441			441

Ending balance, December 31, 2013	$	96,541		$	8,914		$	105,455

Other Intangible Assets

The Company’s intangible assets also include core deposit and other identifiable intangible assets. Core deposit intangible assets are amortized over their estimated useful lives that range from 7 to 11 years. As of December 31, 2015, the remaining lives of core deposit intangible assets ranged from 8 months to 10 years, and the weighted average remaining life was 9 years. Other identifiable intangible assets are amortized using the straight-line method and consist primarily of the value assigned to contractual rights arising from insurance agency acquisitions. The following table presents the components of other intangible assets, by reporting unit, as of the dates indicated:


	December 31,
	2015									2014
(Amounts in thousands)	Community Banking			Insurance Services			Total			Community Banking			Insurance Services			Total
Core deposit intangibles	$	12,282		$	—		$	12,282		$	12,282		$	—		$	12,282
Accumulated amortization		(7,958	)		—			(7,958	)		(7,148	)		—			(7,148	)

Core deposit intangibles, net		4,324			—			4,324			5,134			—			5,134
Other identifiable intangibles		535			3,711			4,246			535			3,711			4,246
Accumulated amortization		(464	)		(2,863	)		(3,327	)		(437	)		(2,522	)		(2,959	)

Other identifiable intangibles, net		71			848			919			98			1,189			1,287

Total other intangible assets, net	$	4,395		$	848		$	5,243		$	5,232		$	1,189		$	6,421

Amortization expense for other intangible assets was $1.12 million in 2015, $787 thousand in 2014, and $729 thousand in 2013. The following schedule presents the estimated amortization expense for intangible assets, by year, as of December 31, 2015:


(Amounts in thousands)
2016	$	1,034
2017		821
2018		624
2019		438
2020		438
2021 and thereafter		1,845

	$	5,200

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details