Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

A summary of the Company’s goodwill assets by business segment is presented in the following table:



(Dollars in thousands)	January 1, 2018		Goodwill Acquired		Impairment Loss		Goodwill Adjustments			September 30, 2018
Community banking	$	429,520	$	36,307	$	—	$	—		$	465,827
Specialty finance	40,250		—		—		(631		)	39,619
Wealth management	32,114		—		—		—			32,114
Total	$	501,884	$	36,307	$	—	$	(631	)	$	537,560

The community banking segment's goodwill increased $36.3 million in the first nine months of 2018 primarily as a result of the acquisition of CSC and Veterans First. The specialty finance segment's goodwill decreased $631,000 in the first nine months of 2018 as a result of foreign currency translation adjustments related to the Canadian acquisitions.

At June 30, 2018, the Company utilized a qualitative approach for its annual goodwill impairment test of the community banking segment and determined that it is not more likely than not that an impairment existed at that time. At December 31, 2017, the Company utilized a quantitative approach for its annual goodwill impairment tests of the specialty finance and wealth management segments and determined that no impairment existed at that time. At each reporting date between annual goodwill impairment tests, the Company considers potential indicators of impairment. As of September 30, 2018, the Company identified no such indicators of goodwill impairment within the community banking, specialty finance and wealth management segments.

A summary of intangible assets as of the dates shown and the expected amortization of finite-lived intangible assets as of September 30, 2018 is as follows:



(Dollars in thousands)	September 30, 2018			December 31, 2017			September 30, 2017
Community banking segment:
Core deposit intangibles with finite lives:
Gross carrying amount	$	44,395		$	37,272		$	37,272
Accumulated amortization	(28,142		)	(25,427		)	(24,550		)
Net carrying amount	$	16,253		$	11,845		$	12,722
Trademark with indefinite lives:
Carrying amount	5,800			—			—
Total net carrying amount	$	22,053		$	11,845		$	12,722
Specialty finance segment:
Customer list intangibles with finite lives:
Gross carrying amount	$	1,967		$	1,972		$	1,972
Accumulated amortization	(1,407		)	(1,298		)	(1,258		)
Net carrying amount	$	560		$	674		$	714
Wealth management segment:
Customer list and other intangibles with finite lives:
Gross carrying amount	$	7,940		$	7,940		$	7,940
Accumulated amortization	(3,175		)	(2,838		)	(2,725		)
Net carrying amount	$	4,765		$	5,102		$	5,215
Total other intangible assets, net	$	27,378		$	17,621		$	18,651



Estimated amortization
Actual in nine months ended September 30, 2018	$	3,164
Estimated remaining in 2018	1,253
Estimated—2019	4,517
Estimated—2020	3,681
Estimated—2021	3,014
Estimated—2022	2,388

The core deposit intangibles recognized in connection with prior bank acquisitions are amortized over a ten-year period on an accelerated basis. The customer list intangibles recognized in connection with the purchase of life insurance premium finance assets in 2009 are being amortized over an 18-year period on an accelerated basis while the customer list intangibles recognized in connection with prior acquisitions within the wealth management segment are being amortized over a ten-year period on a straight-line basis. Indefinite-lived intangible assets consist of certain trade and domain names recognized in connection with the Veterans First acquisition. As indefinite-lived intangible assets are not amortized, the Company assesses impairment on at least an annual basis.

Total amortization expense associated with finite-lived intangibles totaled approximately $3.2 million and $3.4 million for the nine months ended September 30, 2018 and 2017, respectively.

- 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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