Goodwill and Intangibles

3 Months Ended

Mar. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

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 three months ended March 31, 2017, we determined there were no events or other indicators of impairment as it relates to goodwill or other intangibles.

The following table shows the changes in our goodwill during the quarter as well as the allocation of goodwill to our reportable operating segments for purposes of goodwill impairment testing:



	WSFS			Cash		Wealth		Consolidated
(Dollars in thousands)	Bank			Connect		Management		Company
December 31, 2016	$	147,396		$	—	$	20,143	$	167,539
Remeasurement adjustments	(1,635		)	—		56		(1,579		)
Goodwill from business combinations	—			—		—		—
March 31, 2017	$	145,761		$	—	$	20,199	$	165,960

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 tables summarize other intangible assets:



	March 31, 2017
(Dollars in thousands)	Gross Intangible Assets		Accumulated Amortization			Net Intangible Assets		Amortization Period
Core deposits	$	10,658	$	(3,440	)	$	7,218	10 years
Customer relationships	17,561		(3,013		)	14,548		7-15 years
Non-compete agreements	221		(24		)	197		5 years
Loan servicing rights	1,821		(1,092		)	729		10-30 years
Favorable lease asset	1,932		(212		)	1,720		10 months-18 years
Total intangible assets	$	32,193	$	(7,781	)	$	24,412



	December 31, 2016
(Dollars in thousands)	Gross Intangible Assets		Accumulated Amortization			Net Intangible Assets		Amortization Period
Core deposits	$	13,128	$	(5,630	)	$	7,498	10 years
Customer relationships	17,561		(2,612		)	14,949		7-15 years
Non-compete agreements	1,006		(728		)	278		6 months- 5 years
Loan servicing rights	1,708		(1,067		)	641		10-30 years
Favorable lease asset	458		(116		)	342		10 months-15 years
Total intangible assets	$	33,861	$	(10,153	)	$	23,708

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 three months ended March 31, 2017, we recognized amortization expense on other intangible assets of $0.9 million.

The following table shows the estimated future amortization expense related to our intangible assets:



(Dollars in thousands)	Amortization of Intangibles
Remaining in 2017	$	2,287
2018	2,965
2019	2,897
2020	2,701
2021	2,329
Thereafter	11,233
Total	$	24,412

- 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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