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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

7.    Goodwill and other intangible assets

The Company does not amortize goodwill, however, core deposit and other intangible assets are amortized over the estimated life of each respective asset. At December 31, 2019 the Company reduced by $933 million the gross carrying amount and accumulated amortization associated with intangible assets that had been fully amortized and, therefore, had no remaining net carrying amount. Total amortizing intangible assets were comprised of the following:

 

 

 

Gross Carrying

Amount

 

 

Accumulated

Amortization

 

 

Net Carrying

Amount

 

 

 

(In thousands)

 

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

Core deposit

 

$

131,664

 

 

$

105,802

 

 

$

25,862

 

Other

 

 

6,757

 

 

 

3,585

 

 

 

3,172

 

Total

 

$

138,421

 

 

$

109,387

 

 

$

29,034

 

December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

Core deposit

 

$

887,459

 

 

$

843,572

 

 

$

43,887

 

Other

 

 

182,568

 

 

 

179,388

 

 

 

3,180

 

Total

 

$

1,070,027

 

 

$

1,022,960

 

 

$

47,067

 

Amortization of core deposit and other intangible assets was generally computed using accelerated methods over original amortization periods of three to ten years. The weighted-average original amortization period was approximately eight years. Amortization expense for core deposit and other intangible assets was $19 million, $25 million and $31 million for the years ended December 31, 2019, 2018 and 2017, respectively. Estimated amortization expense in future years for such intangible assets is as follows:

 

 

 

(In thousands)

 

Year ending December 31:

 

 

 

 

2020

 

$

14,869

 

2021

 

 

10,167

 

2022

 

 

3,998

 

 

 

$

29,034

 

 

The Company completed annual goodwill impairment tests as of October 1, 2019, 2018 and 2017. For purposes of testing for impairment, the Company assigned all recorded goodwill to the reporting units originally intended to benefit from past business combinations, which has historically been the Company’s core relationship business reporting units. Goodwill was generally assigned based on the implied fair value of the acquired goodwill applicable to the benefited reporting units at the time of each respective acquisition. The implied fair value of the goodwill was determined as the difference between the estimated incremental overall fair value of the reporting unit and the estimated fair value of the net assets assigned to the reporting unit as of each respective acquisition date. To test for goodwill impairment at each evaluation date, the Company compared the estimated fair value of each of its reporting units to their respective carrying amounts and certain other assets and liabilities assigned to the reporting unit, including goodwill and core deposit and other intangible assets. The methodologies used to estimate fair values of reporting units as of the acquisition dates and as of the evaluation dates were similar. For the Company’s core customer relationship business reporting units, fair value was estimated as the present value of the expected future cash flows of the reporting unit. Based on the results of the goodwill impairment tests, the Company concluded that the amount of recorded goodwill was not impaired at the respective testing dates.

A summary of goodwill assigned to each of the Company’s reportable segments as of December 31, 2019 and 2018 for purposes of testing for impairment is as follows:

 

 

 

(In thousands)

 

 

 

 

 

 

Business Banking

 

$

864,366

 

Commercial Banking

 

 

1,401,873

 

Commercial Real Estate

 

 

654,389

 

Discretionary Portfolio

 

 

 

Residential Mortgage Banking

 

 

 

Retail Banking

 

 

1,309,191

 

All Other

 

 

363,293

 

Total

 

$

4,593,112