Goodwill and Intangibles

9 Months Ended

Sep. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

8. GOODWILL AND INTANGIBLES

In accordance with FASB ASC 805, Business Combinations (ASC 805) and FASB ASC 350, Intangibles-Goodwill and Other (ASC 350), all assets and liabilities acquired in purchase acquisitions, including goodwill, indefinite-lived intangibles and other intangibles are recorded at fair value.

During the nine months ended September 30, 2015, we determined there were no events or other indicators of impairment as it relates to goodwill or other intangibles.

The following table shows the allocation of goodwill to our reportable operating segments for purposes of goodwill impairment testing:


					Trust &
	WSFS		Cash		Wealth		Consolidated
(In Thousands)	Bank		Connect		Management		Company
December 31, 2014	$	43,517	$	—	$	5,134	$	48,651
Changes in goodwill		136		—		—		136

September 30, 2015	$	43,653	$	—	$	5,134	$	48,787

ASC 350 also requires that an acquired intangible asset be separately recognized if the benefit of the intangible asset is obtained through contractual or other legal rights, or if the asset can be sold, transferred, licensed, rented or exchanged, regardless of the acquirer’s intent to do so.

The following table summarizes intangible assets:


	Gross					Net
(In Thousands)	Intangible		Accumulated			Intangible
September 30, 2015	Assets		Amortization			Assets
Core deposits	$	7,610	$	(4,170	)	$	3,440
CB&T intangibles		3,142		(1,133	)		2,009
Array and Arrow intangibles		2,353		(759	)		1,594
Mortgage servicing rights		1,422		(913	)		509

Total intangible assets	$	14,527	$	(6,975	)	$	7,552


December 31, 2014
Core deposits	$	7,610	$	(3,321	)	$	4,289
CB&T intangibles		3,142		(985	)		2,157
Array and Arrow intangibles		2,353		(497	)		1,856
Mortgage servicing rights		1,455		(815	)		640

Total intangible assets	$	14,560	$	(5,618	)	$	8,942

Core deposits are amortized over their expected lives using the present value of the benefit of the core deposits, straight-line or accelerated methods of amortization. During the nine months ended September 30, 2015, we recognized amortization expense on other intangible assets of $1.3 million.

The following presents the estimated amortization expense of intangibles:


	Amortization
(In Thousands)	of Intangibles
Remaining in 2015	$	430
2016		1,434
2017		1,217
2018		1,137
2019		962
Thereafter		2,372

Total	$	7,552

- 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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