Goodwill and Intangibles

6 Months Ended

Jun. 30, 2016

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 six months ended June 30, 2016, 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:


(In Thousands)	WSFS Bank			Cash Connect		Wealth Management		Consolidated Company
December 31, 2015	$	80,078		$	—	$	5,134	$	85,212
Changes in goodwill		(360	)		—		—		(360	)

June 30, 2016	$	79,718		$	—	$	5,134	$	84,852

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 other intangible assets:


(In Thousands)	Gross Intangible Assets		Accumulated Amortization			Net Intangible Assets
June 30, 2016
Core deposits	$	10,245	$	(5,067	)	$	5,178
CB&T intangibles		3,142		(1,279	)		1,863
Array and Arrow intangibles		2,353		(1,022	)		1,331
Mortgage servicing rights		1,508		(1,013	)		495
Alliance intangible assets		650		(296	)		354

Total intangible assets	$	17,898	$	(8,677	)	$	9,221

December 31, 2015
Core deposits	$	10,246	$	(4,512	)	$	5,734
CB&T intangibles		3,142		(1,181	)		1,961
Array and Arrow intangibles		2,353		(847	)		1,506
Mortgage servicing rights		1,430		(949	)		481
Alliance intangible assets		511		(110	)		401

Total intangible assets	$	17,682	$	(7,599	)	$	10,083

Core deposits are amortized over their expected lives using the present value of the benefit of the core deposits and either accelerated or straight-line methods of amortization. During the six months ended June 30, 2016, we recognized amortization expense on other intangible assets of $1.0 million.

The following presents the estimated amortization expense of intangibles:


(In Thousands)	Amortization of Intangibles
Remaining in 2016	$	922
2017		1,577
2018		1,440
2019		1,372
2020		1,048
Thereafter		2,862

Total	$	9,221

- 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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