Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 7. GOODWILL AND OTHER INTANGIBLE ASSETS

WesBanco’s Consolidated Balance Sheets include goodwill of $573.8 million and $480.6 million at December 31, 2016 and 2015, respectively all of which relates to the Community Banking segment. WesBanco’s other intangible assets of $19.4 million and $10.3 million at December 31, 2016 and 2015, respectively, primarily consist of core deposit and other customer list intangibles which have finite lives and are amortized using straight line and accelerated methods. WesBanco recognized $92.9 million in goodwill and $12.0 million in core deposit intangibles in connection with the YCB acquisition and $168.8 million in goodwill and $5.3 million in core deposit intangibles in connection with the ESB acquisition. Other intangible assets are being amortized over estimated useful lives ranging from ten to sixteen years. Amortization of core deposit and customer list intangible assets totaled $2.9 million, $2.4 million and $1.9 million for the years ended December 31, 2016, 2015 and 2014, respectively. WesBanco completed its annual goodwill impairment evaluation as of November 30, 2016 and determined that goodwill was not impaired as of December 31, 2016 as there were no significant changes in market conditions, consolidated operating results, or forecasted future results from November 30, 2016. Additionally, there were no events or changes in circumstances indicating impairment of intangible assets as of December 31, 2016.

The following table shows WesBanco’s capitalized other intangible assets and related accumulated amortization:


	December 31,
*(in thousands)*	2016			2015
Other intangible assets:
Gross carrying amount	$	37,725		$	28,674
Accumulated amortization		(18,341	)		(18,338	)

Net carrying amount of other intangible assets	$	19,384		$	10,336

The following table shows the amortization on WesBanco’s other intangible assets for each of the next five years (in thousands):


Year	Amount
2017	$	4,066
2018		3,543
2019		3,037
2020		2,564
2021		2,122

As part of the YCB and ESB acquisitions, WesBanco entered into non-compete agreements with former YCB and ESB executives with terms ranging from one to four years. The non-compete agreements are recognized in other assets on the balance sheet with the amortization expense recognized in amortization of intangible assets on the income statement. Amortization expense of non-compete agreements totaled $0.7 million in 2016 and 2015, respectively and is expected to be $0.9 million, $0.6 million and $0.2 million in the next three years, respectively.

- 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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