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Goodwill and Other Intangible Assets
12 Months Ended
Dec. 31, 2019
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets

NOTE 7. GOODWILL AND OTHER INTANGIBLE ASSETS

Wesbanco’s Consolidated Balance Sheets include goodwill of $1.1 billion and $0.9 billion as of December 31, 2019 and 2018, respectively, all of which relates to the Community Banking segment. Wesbanco’s other intangible assets of $80.4 million and $57.0 million at December 31, 2019 and 2018, 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 $203.8 million in goodwill and $33.6 million in core deposit intangibles in connection with the OLBK 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 $10.1 million, $6.4 million and $4.1 million for the years ended December 31, 2019, 2018 and 2017, respectively. Wesbanco completed its annual goodwill impairment evaluation as of November 30, 2019 and determined that goodwill was not impaired as of such date as well as  at year-end, as there were no significant changes in market conditions, consolidated operating results, or forecasted future results from November 30, 2019. Additionally, there were no events or changes in circumstances indicating impairment of other intangible assets as of December 31, 2019.

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

 

 

 

December 31,

 

(in thousands)

 

2019

 

 

2018

 

Other intangible assets:

 

 

 

 

 

 

 

 

Gross carrying amount

 

$

119,387

 

 

$

85,796

 

Accumulated amortization

 

 

(38,954

)

 

 

(28,830

)

Net carrying amount of other intangible assets

 

$

80,433

 

 

$

56,966

 

 

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

 

Year

 

Amount

 

2020

 

$

14,838

 

2021

 

 

13,085

 

2022

 

 

11,584

 

2023

 

 

9,963

 

2024

 

 

8,659

 

2025 and thereafter

 

 

22,304

 

Total

 

 

80,433

 

 

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 $0.2 million, $0.6 million and $0.9 million in 2019, 2018 and 2017, respectively. The agreements were fully amortized in 2019.