Business Combination (Tables)

9 Months Ended

Sep. 30, 2019

Business Combinations [Abstract]

Schedule of Business Combination, Consideration Transferred

The following table summarizes the allocation of the purchase price to the net assets of SVB Leerink as of January 4, 2019:

(Dollars in thousands)	January 4, 2019
Cash paid	$	265,601
Replacement award liabilities (1)	7,629
Total purchase consideration	$	273,230
Fair value of net assets acquired	135,407
Goodwill	$	137,823

 

(1)

The replacement award liabilities recognized as part of the total purchase consideration and the post-combination expenses of $9.1 million related to share-based replacement awards will be paid out in cash in accordance with SVB Leerink's original grant date vesting schedules.

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes the estimated fair value of assets acquired and liabilities assumed upon the finalization of the purchase:

(Dollars in thousands)	January 4, 2019
Assets acquired:
Cash and cash equivalents	$	163,273
Investment securities	33,644
Accounts receivable	36,538
Intangible assets	60,900
Other assets	35,128
Total assets acquired	329,483
Liabilities assumed:
Accrued compensation	137,206
Due to broker-dealers	18,483
Other liabilities	33,131
Noncontrolling interests	5,256
Total liabilities assumed	194,076
Fair value of net assets acquired	$	135,407

Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination

The following table summarizes the fair value and estimated useful lives of the other intangible assets at the date of acquisition:

(Dollars in thousands)	Estimated Fair Value		Weighted Average Estimated Useful Life - in Years
Other intangible assets:
Customer relationships	$	42,000	11.0
Other	18,900		9.9
Total other intangible assets	$	60,900

The components of net other intangible assets related to the acquisition of SVB Leerink were as follows:

	September 30, 2019
(Dollars in thousands)	Gross Amount		Accumulated Amortization		Net Carrying Amount
Other intangible assets:
Customer relationships	$	42,000	$	2,864	$	39,136
Other	18,900		5,748		13,152
Total other intangible assets	$	60,900	$	8,612	$	52,288

Business Combination, Results of Acquiree Included in Combined Entity

The following table represents the amount of revenue and earnings attributable to SVB Leerink that is included in our financial results for the three and nine months ended September 30, 2019:

(Dollars in thousands)	Three months ended September 30, 2019			Nine months ended September 30, 2019
Net interest income	$	277		$	961
Noninterest income	53,773			188,925
Noninterest expense	55,200			177,675
(Loss) income before income tax expense	(1,150		)	12,211
Income tax (benefit) expense	(558		)	3,121
Net income attributable to noncontrolling interests	826			861
Net (loss) income available to common stockholders	$	(1,418	)	$	8,229

Restructuring and Related Costs

The following table shows the components of acquisition-related activities expense for the three and nine months ended September 30, 2019:

(Dollars in thousands)	Three months ended September 30, 2019		Nine months ended September 30, 2019
Professional fees	$	260	$	911
Other	94		367
Total acquisition-related expenses	$	354	$	1,278