Goodwill And Intangible Assets

6 Months Ended

Jun. 30, 2015

Goodwill And Intangible Assets Disclosure [Abstract]

NOTE 9 – Goodwill and Intangible Assets

Our annual goodwill impairment testing was completed as of July 31, 2014, with no impairment identified.

The carrying amount of goodwill and intangible assets attributable to each of our reporting segments is presented in the following table (in thousands):

	December 31, 2014		Net Additions		Impairment Losses		June 30, 2015
Goodwill
Global Wealth Management	$	177,171	$	85,626	$	—	$	262,797
Institutional Group		617,855		5,359	—			623,214
	$	795,026	$	90,985	$	—	$	886,011

	December 31, 2014		Net Additions		Amortization			June 30, 2015
Intangible assets
Global Wealth Management	$	23,503	$	9,868	$	(1,582	)	$	31,789
Institutional Group		31,060		—		(2,091	)		28,969
	$	54,563	$	9,868	$	(3,673	)	$	60,758

The additions to goodwill and intangible assets during the three months ended June 30, 2015, are primarily attributable to the acquisition of Sterne Agee, which closed on June 5, 2015, and Merchant Capital, which closed on December 31, 2014. The allocation of the purchase price for these acquisitions is preliminary and will be finalized upon completion of the analysis of the fair values of the net assets of the acquisitions as of the respective acquisition dates and the identified intangible assets. The final goodwill recorded on the consolidated statement of financial condition may differ from the preliminary estimate reflected herein. Goodwill for certain of our acquisitions is deductible for tax purposes.

Amortizable intangible assets consist of acquired customer relationships, trade name, investment banking backlog, and non-compete agreements that are amortized over their contractual or determined useful lives. Intangible assets subject to amortization as of June 30, 2015 and December 31, 2014 were as follows (in thousands):

	June 30, 2015				December 31, 2014
	Gross Carrying Value		Accumulated Amortization		Gross Carrying Value		Accumulated Amortization
Customer relationships	$	71,649	$	32,217	$	63,661	$	29,636
Trade name		23,303		6,030		21,423		5,322
Investment banking backlog		7,388		7,388		7,388		7,388
Core deposits		5,447		4,797		5,447		4,657
Non-compete agreements		1,484		200		1,484		120
	$	109,271	$	50,632	$	99,403	$	47,123

Amortization expense related to intangible assets was $1.8 million and $1.7 million for the three months ended June 30, 2015 and 2014, respectively. Amortization expense related to intangible assets was $3.7 million and $8.2 million for the six months ended June 30, 2015 and 2014, respectively.

The weighted-average remaining lives of the following intangible assets at June 30, 2015, are: customer relationships, 5.3 years; core deposits, 2.2 years; trade name, 11.3 years; and non-compete agreements, 2.3 years. As of June 30, 2015, we expect amortization expense in future periods to be as follows (in thousands):

Fiscal year
Remainder of 2015	$	4,339
2016		7,706
2017		7,087
2018		6,368
2019		6,162
Thereafter		26,977
	$	58,639

- 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.

+ References + Details