Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

9. GOODWILL AND OTHER INTANGIBLE ASSETS

The following table shows a rollforward of goodwill by line of business:


(in thousands)	Community Banking			Wealth Manage- ment		Insurance			Consumer Finance		Total
Balance at January 1, 2015	$	813,434		$	8,020	$	8,950		$	1,809	$	832,213
Goodwill (deductions) additions		(1,035	)		—		1,908			—		873

Balance at December 31, 2015		812,399			8,020		10,858			1,809		833,086
Goodwill (deductions) additions		199,200			—		(157	)		—		199,043

Balance at December 31, 2016	$	1,011,599		$	8,020	$	10,701		$	1,809	$	1,032,129

We recorded goodwill during 2015 and 2016 as a result of the purchase accounting adjustments relating to the various acquisitions described in Note 3, “Mergers and Acquisitions.”

The following table shows a summary of core deposit intangibles, customer renewal lists and mortgage servicing rights:


(in thousands)	Core Deposit Intangibles			Customer Renewal Lists			Mortgage Servicing Rights			Total Finite- lived Intangibles
December 31, 2016
Gross carrying amount	$	139,886		$	12,352		$	19,914		$	172,152
Accumulated amortization		(89,888	)		(8,544	)		(6,393	)		(104,825	)

Net carrying amount	$	49,998		$	3,808		$	13,521		$	67,327

December 31, 2015
Gross carrying amount	$	111,594		$	12,351		$	12,766		$	136,711
Accumulated amortization		(79,362	)		(7,860	)		(3,845	)		(91,067	)

Net carrying amount	$	32,232		$	4,491		$	8,921		$	45,644

Core deposit intangibles are being amortized primarily over 10 years using accelerated methods. Customer renewal lists and mortgage servicing rights are being amortized over their estimated useful lives, which range from eight to thirteen years.

The amortization relating to mortgage servicing rights is included in mortgage banking operations within the non-interest income section on the consolidated income statements, while the amortization expense relating to core deposit intangibles and customer renewal lists is reflected as a separate line item within the non-interest expense section. The following table summarizes amortization expense recognized:


December 31	2016		2015		2014
(in thousands)
Amortization expense of other core deposit intangibles and customer renewal lists	$	11,210	$	8,305	$	9,717
Amortization expense of mortgage servicing rights		2,548		2,250		2,593

Total amortization of intangibles	$	13,758	$	10,555	$	12,310

Following is a summary of the expected amortization expense on finite-lived intangible assets, assuming no new additions, for each of the five years following December 31, 2016:


(in thousands)
2017	$	12,362
2018		9,864
2019		8,608
2020		7,894
2021		7,032

Total	$	45,760

Goodwill and other intangible assets are tested annually for impairment, and more frequently if events or changes in circumstances indicate the carrying value may not be recoverable. We completed this test in 2016 and 2015 and determined that our intangible assets are not impaired.

- 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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