Goodwill and Identifiable Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Identifiable Intangible Assets

Note 9 – Goodwill and Identifiable Intangible Assets

Goodwill

The table below illustrates goodwill by segment for the years ended December 31, 2017 and 2016 ($ in thousands):

	General
	Banking		Insurance		Total
Balance as of January 1, 2016	$	321,132	$	45,024	$	366,156
Adjustment during 2016		—		—		—
Balance as of December 31, 2016		321,132		45,024		366,156
Goodwill from Reliance merger during 2017		13,471		—		13,471
Balance as of December 31, 2017	$	334,603	$	45,024	$	379,627

Trustmark’s General Banking Division delivers a full range of banking services to consumer, corporate, small and middle-market businesses through its extensive branch network. During 2017, Trustmark recorded $13.5 million as goodwill from its merger with Reliance.

The Insurance Division includes TNB’s wholly-owned retail insurance subsidiary that offers a diverse mix of insurance products and services. Trustmark performed goodwill impairment tests for the General Banking and Insurance Divisions during 2017, 2016 and 2015. Based on these tests, Trustmark concluded that the fair value of both the General Banking and Insurance Divisions substantially exceeded the book value and no impairment charge was required.

Identifiable Intangible Assets

At December 31, 2017 and 2016, identifiable intangible assets consisted of the following ($ in thousands):

	December 31, 2017						December 31, 2016
	Gross Carrying		Accumulated		Net Carrying		Gross Carrying		Accumulated		Net Carrying
	Amount		Amortization		Amount		Amount		Amortization		Amount
Core deposit intangibles	$	87,674	$	73,494	$	14,180	$	85,824	$	67,843	$	17,981
Insurance intangibles		13,824		12,026		1,798		13,824		11,615		2,209
Banking charters		1,325		943		382		1,325		877		448
Borrower relationship intangible		690		690		—		690		648		42
Total	$	103,513	$	87,153	$	16,360	$	101,663	$	80,983	$	20,680

Trustmark recorded $6.2 million of amortization of identifiable intangible assets in 2017, $6.9 million in 2016 and $7.8 million in 2015. Trustmark estimates that amortization expense for identifiable intangible assets will be $5.2 million in 2018, $4.0 million in 2019, $2.7 million in 2020, $1.9 million in 2021 and $1.1 million in 2022. Trustmark continually evaluates whether events and circumstances have occurred that indicate that identifiable intangible assets have become impaired. Measurement of any impairment of such identifiable intangible assets is based on the fair values of those assets. There were no impairment losses on identifiable intangible assets recorded during 2017, 2016 or 2015.

The following table illustrates the carrying amounts and remaining weighted-average amortization periods of identifiable intangible assets as of December 31, 2017 ($ in thousands):

			Remaining
			Weighted-
			Average
	Net Carrying		Amortization
	Amount		Period in Years
Core deposit intangibles	$	14,180		5.2
Insurance intangibles		1,798		15.3
Banking charters		382		5.7
Total	$	16,360		6.3

- 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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