Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Total goodwill was $465.7 million and $465.5 million as of June 30, 2019 and December 31, 2018, respectively. Goodwill represents the excess of the purchase price over the fair value of net assets acquired in an acquisition. The Company assesses goodwill for impairment at the reporting unit level (at the same level as the Company’s business segment) on an annual basis as of December 31of each year, or more frequently if events or circumstances, such as adverse changes in the economic or business environment, indicate there may be impairment. The Company organizes its operation into three reporting segments: (1) Consumer and Business Banking; (2) Commercial Banking; and (3) Other. For information on how the reporting units are identified and components are aggregated, see Note 18 — Business Segments to the Consolidated Financial Statements in this Form 10-Q.

There were no changes in the carrying amount of goodwill during the three months ended June 30, 2019 and 2018. The following tables present changes in the carrying amount of goodwill by reporting unit during the six months ended June 30, 2019 and 2018:




($ in thousands)	Consumer and Business Banking			Commercial Banking		Total
Beginning balance, January 1, 2018	$	357,207		$	112,226	$	469,433
Disposition of the DCB branches	(3,886		)	—		(3,886		)
Ending balance, June 30, 2018	$	353,321		$	112,226	$	465,547




($ in thousands)	Consumer and Business Banking		Commercial Banking		Total
Beginning balance, January 1, 2019	$	353,321	$	112,226	$	465,547
Acquisition of Enstream Capital Markets, LLC	—		150		150
Ending balance, June 30, 2019	$	353,321	$	112,376	$	465,697

Impairment Analysis

The Company performed its annual impairment analysis as of December 31, 2018, and concluded that there was no goodwill impairment as the fair value of all reporting units exceeded the carrying amount of their respective reporting unit. There were no triggering events during the three and six months ended June 30, 2019, and therefore, no additional goodwill impairment analysis was performed. No assurance can be given that goodwill will not be written down in future periods. Refer to Note 9 — Goodwill and Other Intangible Assets to the Consolidated Financial Statements of the Company’s 2018 Form 10-K for additional details related to the Company’s annual goodwill impairment analysis.

Core Deposit Intangibles

Core deposit intangibles represent the intangible value of depositor relationships resulting from deposit liabilities assumed in various acquisitions and are included in Other assets on the Consolidated Balance Sheet. These intangibles are tested for impairment on an annual basis, or more frequently as events occur or current circumstances and conditions warrant. There were no impairment write-downs on the core deposit intangibles for each of the three and six months ended June 30, 2019 and 2018. Core deposit intangibles associated with the sale of the Bank’s DCB branches, which had with a net carrying amount of $1.0 million were written off in the first quarter of 2018.

The following table presents the gross carrying amount of core deposit intangible assets and accumulated amortization as of June 30, 2019 and December 31, 2018:




($ in thousands)	June 30, 2019			December 31, 2018
Gross balance ⁽¹⁾	$	86,099		$	86,099
Accumulated amortization ⁽¹⁾	(73,896		)	(71,570		)
Net carrying balance ⁽¹⁾	$	12,203		$	14,529


(1)	Excludes fully amortized core deposit intangible assets.

Amortization Expense

The Company amortizes the core deposit intangibles based on the projected useful lives of the related deposits. The amortization expense related to the core deposit intangible assets was $1.1 million and $1.4 million for the three months ended June 30, 2019 and 2018, respectively, and $2.3 million and $2.9 million for the six months ended June 30, 2019 and 2018, respectively.

The following table presents the estimated future amortization expense of core deposit intangibles as of June 30, 2019:




($ in thousands)	Amount
Remainder of 2019	$	2,192
2020	3,634
2021	2,749
2022	1,865
2023	1,199
Thereafter	564
Total	$	12,203