Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill and Other Intangible Assets [Abstract]

Note 6. Goodwill and Other Intangible Assets

Goodwill represents the excess of the consideration paid over the fair value of the net assets acquired or the excess of the fair value of the net liabilities assumed over the consideration received in a business combination. The FNBC transactions resulted in goodwill of approximately $124.3 million during the year ended December 31, 2017. The carrying amount of goodwill was $745.5 million and $621.2 million at December 31, 2017 and 2016. The Company completed its annual goodwill impairment test as of September 30, 2017 and concluded that there was no impairment of goodwill.

The Company used the discounted net present value of estimated future cash flows to measure the fair value of its goodwill at December 31, 2017. The valuation technique used by the Company requires significant assumptions. Assumptions are made concerning the economic environment, expected net interest margins, growth rates, and discount rates for cash flows. Changes to these assumptions could result in significantly different results.

No goodwill impairment charges were recognized during 2017, 2016 or 2015.

Identifiable intangible assets with finite lives are amortized over the periods benefited and are evaluated for impairment similar to other long-lived assets. The purchase and carrying values of intangible assets subject to amortization were as follows:



	December 31, 2017
	Purchase		Accumulated		Carrying
(in thousands)	Value		Amortization		Value
Core deposit intangibles	$	215,955	$	132,878	$	83,077
Credit card and trust relationships		22,400		16,882		5,518
Merchant processing relationships		10,000		7,955		2,045
	$	248,355	$	157,715	$	90,640



	December 31, 2016
	Purchase		Accumulated		Carrying
(in thousands)	Value		Amortization		Value
Core deposit intangibles	$	190,655	$	113,436	$	77,219
Credit card and trust relationships		22,400		14,907		7,493
Merchant processing relationships		10,000		6,955		3,045
	$	223,055	$	135,298	$	87,757



	Years Ended December 31,
(in thousands)	2017		2016		2015
Aggregate amortization expense for:
Core deposit intangibles	$	19,442	$	16,411	$	18,031
Credit card and trust relationships		1,975		2,172		2,369
Trade name		—		—		2,388
Merchant processing relationships		1,000		1,198		1,396
	$	22,417	$	19,781	$	24,184

The weighted-average remaining life of core deposit intangibles is 9 years. The weighted-average remaining life of other identifiable intangibles is 6 years.

The following table shows estimated amortization expense of other intangible assets as of December 31, 2017 for the five succeeding years and thereafter, calculated based on current amortization schedules.



(in thousands)
2018	$	21,368
2019		18,194
2020		13,766
2021		11,288
2022		8,975
Thereafter		17,049
	$	90,640

- 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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