Goodwill and Other Intangibles

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangibles

The carrying value of goodwill was $58.1 million at both December 31, 2014 and 2013, and the following table presents goodwill at the reporting unit (or business segment) level:



(Dollars in thousands)
Commercial Banking Segment		$22,591
Wealth Management Service Segment	35,523
Total		$58,114

Intangible assets consist of wealth management advisory contracts. The following table presents the components of intangible assets:



(Dollars in thousands)
December 31,	2014		2013
Gross carrying amount		$13,657		$13,657
Accumulated amortization	8,808		8,164
Net amount		$4,849		$5,493

The intangible asset value attributable to wealth management advisory contracts acquired was based on the time period over which the advisory contracts are expected to generate economic benefits. The asset is being amortized over a 20‑year life using a declining balance method, based on expected attrition for the current customer base derived from historical runoff data. The amortization schedule is based on the anticipated future customer runoff rate.

Amortization expense for the years ended December 31, 2014, 2013, and 2012, amounted to $644 thousand, $680 thousand and $728 thousand, respectively.

The following table presents estimated annual amortization expense for advisory contracts:



(Dollars in thousands)
Years ending December 31,	2015		$603
	2016	562
	2017	538
	2018	502
	2019	467
	Thereafter	2,177

- 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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