Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2018

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

NOTE 11 – GOODWILL AND OTHER INTANGIBLE ASSETS

The following table shows the changes in the carrying amount of goodwill for the three and nine months ended September 30, 2018 and 2017:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(dollars in thousands)	2018		2017		2018		2017
Balance at beginning of period	$	828,804	$	655,018	$	828,051	$	655,018
Acquisition adjustments		-		-		753		-
Balance at end of period	$	828,804	$	655,018	$	828,804	$	655,018

Goodwill is reviewed annually for impairment.  No events or circumstances since the August 31, 2018 annual impairment test were noted that would indicate it was more likely than not a goodwill impairment exists.  During the nine months ended September 30, 2018, Old National recorded a $0.8 million increase to goodwill associated with the acquisition of Anchor (MN).

The gross carrying amount and accumulated amortization of other intangible assets at September 30, 2018 and December 31, 2017 were as follows:

	Gross		Accumulated			Net
	Carrying		Amortization			Carrying
(dollars in thousands)	Amount		and Impairment			Amount
September 30, 2018
Core deposit	$	90,083	$	(53,765	)	$	36,318
Customer trust relationships		16,547		(10,731	)		5,816
Total intangible assets	$	106,630	$	(64,496	)	$	42,134
December 31, 2017
Core deposit	$	108,923	$	(62,874	)	$	46,049
Customer trust relationships		16,547		(9,533	)		7,014
Customer loan relationships		4,413		(4,380	)		33
Total intangible assets	$	129,883	$	(76,787	)	$	53,096

Other intangible assets consist of core deposit intangibles and customer relationship intangibles and are being amortized primarily on an accelerated basis over their estimated useful lives, generally over a period of 5 to 15 years. During the nine months ended September 30, 2018, Old National recorded a $0.7 million decrease to core deposit intangibles related to the updated valuation associated with the acquisition of Anchor (MN).

Old National reviews other intangible assets for possible impairment whenever events or changes in circumstances indicate that carrying amounts may not be recoverable.  No impairment charges were recorded during the nine months ended September 30, 2018 or 2017.  Total amortization expense associated with intangible assets was $3.3 million for the three months ended September 30, 2018 and $10.3 million for the nine months ended September 30, 2018, compared to $2.6 million for the three months ended September 30, 2017 and $8.4 million for the nine months ended September 30, 2017.

Estimated amortization expense for future years is as follows:

(dollars in thousands)
2018 remaining	$	3,116
2019		11,010
2020		8,672
2021		6,417
2022		4,595
Thereafter		8,324
Total	$	42,134