GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

The following tables detail the changes in carrying value of goodwill by segment during the years ended December 31, 2018 and 2017.



	As of December 31, 2017		Divestitures			As of December 31, 2018
	(In thousands)
Goodwill
Private Banking	$	—	$	—		$	—
Wealth Management and Trust	34,777		—			34,777
Affiliate Partners (2)	40,821		(17,991		)	22,830
Total goodwill	$	75,598	$	(17,991	)	57,607



	As of December 31, 2016		Impairment			Transfer to held for sale (1)			As of December 31, 2017
	(In thousands)
Goodwill
Private Banking	$	—	$	—		$	—		$	—
Wealth Management and Trust	34,777		—			—			34,777
Affiliate Partners	107,777		(24,901		)	(42,055		)	40,821
Total goodwill	$	142,554	$	(24,901	)	$	(42,055	)	$	75,598

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(1)	Remaining goodwill of Anchor was classified as held for sale as of December 31, 2017. Goodwill was eliminated at the time of the closing of the sale of Anchor in the second quarter of 2018.

(2) Sale of the Company's entire ownership interest in BOS closed in December 2018.

The following table details total goodwill and the cumulative impairment charges thereon as of December 31, 2018 and 2017:



	Goodwill prior to impairment		Cumulative goodwill impairment			Goodwill
	(In thousands)
Private Banking	$	34,281	$	(34,281	)	$	—
Wealth Management and Trust	44,305		(9,528		)	34,777
Affiliate Partners (1)	97,992		(75,162		)	22,830
Total goodwill at December 31, 2018	$	176,578	$	(118,971	)	$	57,607

Private Banking	$	34,281	$	(34,281	)	$	—
Wealth Management and Trust	44,305		(9,528		)	34,777
Affiliate Partners (2)	115,983		(75,162		)	40,821
Total goodwill at December 31, 2017	$	194,569	$	(118,971	)	$	75,598

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(1)	Sale of the Company's entire ownership interest in BOS closed in December 2018.


(2)	Remaining goodwill of Anchor was classified as held for sale as of December 31, 2017 and was eliminated when the sale was closed in April 2018.

In 2018 and 2017, the Company recorded no additional goodwill.

Management performed its annual goodwill and indefinite-lived intangible asset impairment testing during the fourth quarter of 2018 for applicable reporting units. There was no additional testing required for long-lived intangible assets in 2018.

2018 Impairment testing and results

Management performed its annual goodwill and indefinite-lived intangible asset impairment testing during the fourth quarter of 2018 for applicable reporting units. For the 2018 testing, Step 0 was performed for Boston Private Wealth and KLS. Based on the qualitative factors assessed in Step 0 test for Boston Private Wealth and KLS, no additional testing was required. Neither Boston Private Bank nor DGHM has any goodwill as of December 31, 2018.

2017 Impairment testing and results

For the 2017 testing, Step 0 was performed for BOS and KLS. Based on the qualitative factors assessed in the Step 0 tests for BOS and KLS, no additional testing was required. A Step 1 test was performed for Boston Private Wealth and Anchor. The results of the Step 1 test for Boston Private Wealth indicated that the fair value exceeded the carrying value, and therefore no goodwill impairment was evident. Neither Boston Private Bank nor DGHM have any goodwill.

In December 2017, while the Company was performing the Step 1 test for Anchor, the Company entered into an agreement to sell its entire ownership interest in Anchor. The Company’s annual goodwill impairment test for Anchor resulted in a goodwill impairment charge of $24.9 million in the fourth quarter of 2017. The decline in fair value and the related goodwill impairment was related to the fair market value impacts of the Anchor sale transaction. Due to the terms of the transaction that were required for a mutual agreement, the fair value obtained was substantially below the carrying value. The fair value was based on the terms of the sale transaction. The transaction closed during in the first quarter of 2018.

Intangible assets

The following table shows the gross and net carrying amounts of identifiable intangible assets at December 31, 2018 and 2017:



	2018						2017
	Gross Carrying Amount		Accumulated Amortization		Net		Gross Carrying Amount		Accumulated Amortization		Net
	(In thousands)
Advisory contracts (1) (2)	$	30,859	$	18,632	$	12,227	$	37,313	$	21,370	$	15,943
Trade names (2)	—		—		—		140		—		140
Total	$	30,859	$	18,632	$	12,227	$	37,453	$	21,370	$	16,083

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(1)	Intangible assets of Anchor were classified as held for sale as of December 31, 2017 and were eliminated when the sale were closed in April 2018.


(2)	Sale of the company's entire ownership interest in BOS closed in December 2018.

The Company recorded no additional identifiable intangible assets in 2018 or 2017.

Consolidated expense related to intangible assets subject to amortization was $2.9 million, $5.6 million, and $6.3 million for 2018, 2017, and 2016, respectively.

Management reviews, and adjusts if necessary, intangible asset amortization schedules to ensure that the remaining life on the amortization schedule accurately reflects the useful life of the intangible asset. The weighted average amortization period of these intangible assets is 5.75 years.

The estimated annual amortization expense for these identifiable intangibles over the next five years is:



	Estimated intangible amortization expense
	(In thousands)
2019	$	2,654
2020	2,393
2021	1,915
2022	1,915
2023	1,915
2024 and thereafter	1,435