Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2016

Note 9.

Goodwill and Other Intangible Assets

Goodwill

The company has one reporting unit for goodwill impairment testing purposes – Community Banking. Prior to October 2016, the Company maintained two reporting units — Community Banking and Insurance Services. The Insurance Services reporting unit consisted of the Company’s wholly owned subsidiary Greenpoint, which was sold in October 2016. The Company performed its annual qualitative assessment of goodwill as of October 31, 2016, and concluded that no impairment charge was necessary. No events have occurred after the 2016 analysis to indicate potential impairment.

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


(Amounts in thousands)	Community Banking			Insurance Services			Total
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

Balance December 31, 2014	$	91,455		$	9,267		$	100,722

Balance January 1, 2015	$	91,455		$	9,267		$	100,722
Acquisitions and dispositions, net		—			(324	)		(324	)
Cash consideration paid		—			88			88

Balance December 31, 2015	$	91,455		$	9,031		$	100,486

Balance January 1, 2016	$	91,455		$	9,031		$	100,486
Acquisitions and dispositions, net		1,290			(5,997	)		(4,707	)
Other ⁽¹⁾		3,034			(3,034	)		—

Balance December 31, 2016	$	95,779		$	—		$	95,779

(1)	Represents the transfer of goodwill after the sale of Greenpoint to one reporting unit

Other Intangible Assets

The Company’s other intangible assets include core deposit and other identifiable intangibles. As of December 31, 2016, the remaining lives of core deposit intangibles ranged from 6 years to 9 years and the weighted average remaining life was 7 years. Other identifiable intangibles 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,
	2016			2015
(Amounts in thousands)	Total			Community Banking			Insurance Services			Total
Core deposit intangibles	$	11,536		$	12,282		$	—		$	12,282
Accumulated amortization		(4,515	)		(7,958	)		—			(7,958	)

Core deposit intangibles, net		7,021			4,324			—			4,324
Other identifiable intangibles		3,508			535			3,711			4,246
Accumulated amortization		(3,322	)		(464	)		(2,863	)		(3,327	)

Other identifiable intangibles, net		186			71			848			919

Total other intangible assets, net	$	7,207		$	4,395		$	848		$	5,243

Amortization expense for other intangible assets was $1.14 million in 2016, $1.12 million in 2015, and $787 thousand in 2014. The following schedule presents the estimated amortization expense for intangible assets, by year, as of December 31, 2016:


(Amounts in thousands)
2017	$	1,029
2018		1,029
2019		1,029
2020		1,029
2021		1,015
2022 and thereafter		2,034

	$	7,165

- 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.

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