XML 33 R17.htm IDEA: XBRL DOCUMENT v3.10.0.1
Goodwill and Identifiable Intangible Assets
12 Months Ended
Dec. 31, 2018
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, 2018 and 2017 ($ in thousands):

 

 

 

General

 

 

 

 

 

 

 

 

 

 

 

Banking

 

 

Insurance

 

 

Total

 

Balance as of January 1, 2017

 

$

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

 

Adjustment during 2018

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2018

 

$

334,603

 

 

$

45,024

 

 

$

379,627

 

Trustmark’s General Banking Segment 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 Segment 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 Segments during 2018, 2017 and 2016.  Based on these tests, Trustmark concluded that the fair value of both the General Banking and Insurance Segments substantially exceeded the book value and no impairment charge was required.

Identifiable Intangible Assets

At December 31, 2018 and 2017, identifiable intangible assets consisted of the following ($ in thousands):

 

 

 

December 31, 2018

 

 

December 31, 2017

 

 

 

Gross Carrying

 

 

Accumulated

 

 

Net Carrying

 

 

Gross Carrying

 

 

Accumulated

 

 

Net Carrying

 

 

 

Amount

 

 

Amortization

 

 

Amount

 

 

Amount

 

 

Amortization

 

 

Amount

 

Core deposit intangibles

 

$

87,674

 

 

$

78,353

 

 

$

9,321

 

 

$

87,674

 

 

$

73,494

 

 

$

14,180

 

Insurance intangibles

 

 

13,824

 

 

 

12,348

 

 

 

1,476

 

 

 

13,824

 

 

 

12,026

 

 

 

1,798

 

Banking charters

 

 

1,325

 

 

 

1,010

 

 

 

315

 

 

 

1,325

 

 

 

943

 

 

 

382

 

Borrower relationship intangible

 

 

 

 

 

 

 

 

 

 

 

690

 

 

 

690

 

 

 

 

Total

 

$

102,823

 

 

$

91,711

 

 

$

11,112

 

 

$

103,513

 

 

$

87,153

 

 

$

16,360

 

 

Trustmark recorded $5.2 million of amortization of identifiable intangible assets in 2018, $6.2 million in 2017 and $6.9 million in 2016.  Trustmark estimates that amortization expense for identifiable intangible assets will be $4.0 million in 2019, $2.7 million in 2020, $1.9 million in 2021, $1.1 million in 2022 and $427 thousand in 2023.  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 2018, 2017 or 2016.

The following table illustrates the carrying amounts and remaining weighted-average amortization periods of identifiable intangible assets as of December 31, 2018 ($ in thousands):

 

 

 

 

 

 

Remaining

 

 

 

 

 

 

 

Weighted-

 

 

 

 

 

 

 

Average

 

 

 

Net Carrying

 

 

Amortization

 

 

 

Amount

 

 

Period in Years

 

Core deposit intangibles

 

$

9,321

 

 

 

4.4

 

Insurance intangibles

 

 

1,476

 

 

 

15.5

 

Banking charters

 

 

315

 

 

 

4.7

 

Total

 

$

11,112

 

 

 

5.9