NOTE 8 – Goodwill and Intangible Assets

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, 2017		Adjustments		Write-off		September 30, 2018
Goodwill
Global Wealth Management	$	276,477	$	54,969	$	—	$	331,446
Institutional Group		692,357		1,911		—		694,268
	$	968,834	$	56,880	$	—	$	1,025,714

	December 31, 2017		Net Additions		Amortization			September 30, 2018
Intangible assets
Global Wealth Management	$	44,525	$	17,180	$	(3,662	)	$	58,043
Institutional Group		65,102		857		(5,079	)		60,880
	$	109,627	$	18,037	$	(8,741	)	$	118,923

On March 19, 2018, the Company completed the acquisition of Ziegler. The acquisition was accounted for under the acquisition method of accounting in accordance with ASC 805, “Business Combinations.” Accordingly, goodwill was measured as the excess of the acquisition-date fair value of the consideration transferred over the amount of acquisition-date identifiable assets acquired net of assumed liabilities. We recorded $19.0 million of goodwill in the consolidated statement of financial condition, which has been allocated to our company’s Global Wealth Management and Institutional Group segments. Identifiable intangible assets purchased by our company consisted of customer relationships and non-compete agreements with an acquisition-date fair value of $9.5 million. See Note 1 in the notes to our consolidated financial statements for additional information regarding the acquisition of Ziegler.

The goodwill represents the value expected from the synergies created through the operational enhancement benefits that will result from the integration of the Ziegler business and of the hired financial advisors and the conversion of the customer accounts to our platform. Goodwill is expected to be deductible for federal income tax purposes.

On August 31, 2018, the Company completed the acquisition of Business Bancshares, Inc. (“BBI”). The acquisition was accounted for under the acquisition method of accounting in accordance with ASC 805, “Business Combinations.” Accordingly, goodwill was measured as the excess of the acquisition-date fair value of the consideration transferred over the amount of acquisition-date identifiable assets acquired net of assumed liabilities. We recorded $46.4 million of goodwill and intangibles in the consolidated statement of financial condition, which has been allocated to our company’s Global Wealth Management segment. The allocation of the purchase price of BBI is preliminary and will be finalized upon completion of the analysis of the fair values of the net assets of BBI as of the acquisition date and the identified intangible assets. The final goodwill recorded on the consolidated statement of financial condition may differ from that reflected herein as a result of future measurement period adjustments and the recording of identified intangible assets. See Note 1 in the notes to our consolidated financial statements for additional information regarding the acquisition of BBI.

The goodwill represents the value expected from the synergies created through the operational enhancement benefits that will result from the integration of the BBI business and its customer base.

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 September 30, 2018 and December 31, 2017 were as follows (in thousands):

	September 30, 2018				December 31, 2017
	Gross Carrying Value		Accumulated Amortization		Gross Carrying Value		Accumulated Amortization
Customer relationships	$	156,240	$	62,822	$	146,986	$	55,809
Trade name		24,713		11,373		24,713		10,228
Non-compete agreements		2,603		1,388		2,598		1,202
Investment banking backlog		1,431		1,214		1,419		968
Estimated BBI intangibles ⁽¹⁾		8,615		—		—		—
	$	193,602	$	76,797	$	175,716	$	68,207

⁽¹⁾ See discussion regarding the allocation of the estimated goodwill and intangibles recorded for the BBI acquisition.

Amortization expense related to intangible assets was $3.0 million and $2.9 million for the three months ended September 30, 2018 and 2017, respectively. Amortization expense related to intangible assets was $8.7 million and $9.1 million for the nine months ended September 30, 2018 and 2017, respectively. Amortization expense is included in other operating expenses in the consolidated statements of operations.

The weighted-average remaining lives of the following intangible assets at September 30, 2018, are: customer relationships, 10.7 years; trade name, 9.7 years; non-compete agreements, 8.8 years; and BBI intangibles, 5.0 years. As of September 30, 2018, we expect amortization expense in future periods to be as follows (in thousands):

Fiscal year
Remainder of 2018	$	3,382
2019		12,974
2020		12,757
2021		12,258
2022		11,798
Thereafter		63,636
	$	116,805