Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2015

Goodwill and Other Intangible Assets [Abstract]

The following table details changes in the recorded amount of goodwill for the years ended December 31:



(Dollars in thousands)	2015		2014
Goodwill, beginning of year	$	98,562	$	70,520
Acquired goodwill	34,069		28,042
Goodwill, end of year	$	132,631	$	98,562

Peoples performed the required goodwill impairment tests and concluded there was no impairment in the recorded value of goodwill in 2015, based upon the estimated fair value of the single reporting unit. At December 31, 2015, Peoples completed the first step of the goodwill impairment test due to potential indicators impairment. Peoples utilized the Income Approach and Market Approach analysis in determining that the fair value of the reporting unit exceeded the carrying amount and that the goodwill of the reporting unit was not considered impaired.

Other intangible assets

Other intangible assets were comprised of the following at December 31:



(Dollars in thousands)	Core Deposits			Customer Relationships			Total
2015
Gross intangibles	$	7,013		$	8,858		$	15,871
Acquired intangibles	8,623			1,695			10,318
Accumulated amortization	(4,396		)	(7,194		)	(11,590		)
Total acquired intangibles	$	11,240		$	3,359		$	14,599
Servicing rights							2,387
Total other intangibles							$	16,986
2014
Gross intangibles	$	2,226		$	8,646		$	10,872
Acquired intangibles	4,787			212			4,999
Accumulated amortization	(1,156		)	(6,357		)	(7,513		)
Total acquired intangibles	$	5,857		$	2,501		$	8,358
Servicing rights							2,238
Total other intangibles							$	10,596

The following table details estimated aggregate future amortization expense of core deposit and customer relationship intangible assets at December 31, 2015:



(Dollars in thousands)	Core Deposits		Customer Relationships		Total
2016	$	3,114	$	833	$	3,947
2017	2,608		722		3,330
2018	2,098		606		2,704
2019	1,586		482		2,068
2020	1,071		352		1,423
Thereafter	763		364		1,127
Total	$	11,240	$	3,359	$	14,599

For further information regarding Peoples' acquisitions, refer to Note 17.

The following is an analysis of activity of servicing rights for the years ended December 31:



(Dollars in thousands)	2015			2014			2013
Balance, beginning of year	$	2,238		$	2,295		$	2,073
Amortization	(662		)	(597		)	(652		)
Servicing rights originated	566			497			675
Servicing rights acquired	245			43			199
Balance, end of year	$	2,387		$	2,238		$	2,295

No valuation allowances were required at December 31, 2015, 2014 and 2013 for Peoples’ servicing rights since the fair value equaled or exceeded the book value.

- 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