Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

The following table summarizes the changes in the Company's goodwill and other intangible assets for the years ended December 31, 2012, 2013 and 2014.



(in thousands)	Goodwill
	Community Banking
				Accumulated
	Gross			Impairment			Total
Balance, December 31, 2011	$	769,013		$	(112,934	)	$	656,079
Net additions	12,545			—			12,545
Reductions	(452		)	—			(452		)
Balance, December 31, 2012	781,106			(112,934		)	668,172
Net additions	96,777			—			96,777
Reductions	(644		)	—			(644		)
Balance, December 31, 2013	877,239			(112,934		)	764,305
Net additions	1,021,920			—			1,021,920
Reductions	—			—			—
Balance, December 31, 2014	$	1,899,159		$	(112,934	)	$	1,786,225

	Other Intangible Assets
				Accumulated
	Gross			Amortization			Net
Balance, December 31, 2011	$	58,079		$	(36,934	)	$	21,145
Net additions	830			—			830
Amortization	—			(4,816		)	(4,816		)
Balance, December 31, 2012	58,909			(41,750		)	17,159
Net additions	—			—			—
Amortization	—			(4,781		)	(4,781		)
Balance, December 31, 2013	58,909			(46,531		)	12,378
Net additions	54,562			—			54,562
Amortization	—			(10,207		)	(10,207		)
Balance, December 31, 2014	$	113,471		$	(56,738	)	$	56,733

Goodwill additions in 2014, 2013, and 2012 relate to the Sterling merger, FinPac acquisition, and Circle acquisition, respectively. Additional information on the acquisition and purchase price allocation is provided in Note 2. The reduction to goodwill in 2013 of $644,000 relates to acquistion accounting adjustments. The reduction to goodwill in 2012 of $452,000 is due to the recognition of tax benefits upon exercise of fully vested acquired stock options.

Intangible additions in 2014 and 2012 relate to the Sterling merger and Circle acquisition, respectively. No impairment losses separate from the scheduled amortization have been recognized in the periods presented.

The Company conducted its annual evaluation of goodwill for impairment at both December 31, 2014 and 2013, respectively. At both dates, in the first step of the goodwill impairment test, the Company determined that the fair value of the Community Banking reporting unit exceeded its carrying amount. The significant assumptions and methodology utilized to test for goodwill impairment as of December 31, 2014 were consistent with those used at December 31, 2013.

The table below presents the forecasted amortization expense for intangible assets acquired in all mergers:



(in thousands)	Expected
Year	Amortization
2015	$	11,225
2016	8,622
2017	6,756
2018	6,166
2019	5,618
Thereafter	18,346
	$	56,733

- 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