Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 11 – GOODWILL AND OTHER INTANGIBLE ASSETS

The following table shows the changes in the carrying amount of goodwill for the six months ended June 30, 2017 and 2016:


(dollars in thousands)	2017		2016
Balance at January 1,	$	655,018	$	584,634
Acquisitions		—		111,852
Divestitures		—		(40,963	)

Balance at June 30,	$	655,018	$	655,523

Goodwill is reviewed annually for impairment. No events or circumstances since the August 31, 2016 annual impairment test were noted that would indicate it was more likely than not a goodwill impairment exists.

The gross carrying amount and accumulated amortization of other intangible assets at June 30, 2017 and December 31, 2016 were as follows:


(dollars in thousands)	Gross Carrying Amount		Accumulated Amortization and Impairment			Net Carrying Amount
June 30, 2017
Amortized intangible assets:
Core deposit	$	81,663	$	(57,906	)	$	23,757
Customer trust relationships		16,547		(8,662	)		7,885
Customer loan relationships		4,413		(4,179	)		234

Total intangible assets	$	102,623	$	(70,747	)	$	31,876

December 31, 2016
Amortized intangible assets:
Core deposit	$	81,663	$	(53,214	)	$	28,449
Customer trust relationships		16,547		(7,753	)		8,794
Customer loan relationships		4,413		(3,979	)		434

Total intangible assets	$	102,623	$	(64,946	)	$	37,677

Other intangible assets consist of core deposit intangibles and customer relationship intangibles and are being amortized primarily on an accelerated basis over their estimated useful lives, generally over a period of 5 to 15 years.

Old National reviews other intangible assets for possible impairment whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. No impairment charges were recorded during the six months ended June 30, 2017 or 2016. Total amortization expense associated with intangible assets was $5.8 million for the six months ended June 30, 2017 and $6.0 million for the six months ended June 30, 2016.

Estimated amortization expense for future years is as follows:


(dollars in thousands)
2017 remaining	$	5,214
2018		8,687
2019		6,737
2020		4,883
2021		3,111
Thereafter		3,244

Total	$	31,876

- 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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