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Goodwill and Intangible Assets
12 Months Ended
Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets [Text Block]
Goodwill and Intangible Assets

On May 4, 2015, the Company acquired a majority voting interest in Heartland Food Products, LLC, a Kansas-based food product and restaurant equipment company pursuant to merchant banking regulations and restrictions. The cash purchase price for this acquisition was $18 million. The purchase price allocation included $11 million of identifiable intangible assets and $2.7 million of goodwill.

On January 12, 2016, the Company acquired E-Spectrum Advisors, a boutique energy investment banking firm based in Dallas that offers a broad range of oil and natural gas property sales and strategic advisory services. On February 29, 2016, the Company acquired Weaver and Tidwell Financial Advisors LTD d/b/a Weaver Wealth Management, a registered investment advisor. The acquisition included hiring Weaver Wealth Management’s team and transitioning its wealth management clients to The Milestone Group, a wholly owned subsidiary of BOK Financial. The acquisition increased BOK Financial’s assets under management and administration by approximately $340 million. The combined cash purchase price for these two acquisitions in 2016 totaled $7.7 million, including $5.3 million of identifiable intangible assets and $3.3 million of goodwill.

On December 1, 2016, the Company acquired MBT Bancshares, Inc. ("MBT"), parent company of Missouri Bank and Trust of Kansas City (“Mobank”). Mobank operates four banking branches in the Kansas City, Missouri area. BOK Financial paid $102.5 million in an all-cash deal for all outstanding shares of MBT stock. MBT was merged into BOK Financial and Mobank became a wholly owned subsidiary of BOK Financial on December 1, 2016. On February 17, 2017, Mobank was merged with the Bank of Kansas City banking division of BOKF, NA. All branches in the Kansas City market will operate under the Mobank name.

A summary of the preliminary purchase price allocation and resulting goodwill follows (in thousands):
Cash and cash equivalents
$
166,215

Securities
14,431

Loans1
444,482

Premises and equipments, net
8,035

Intangible assets – Core deposit premium
6,510

Other assets
3,599

Total assets acquired
643,272

 
 
Deposits
598,735

Other borrowings
7,217

Other liabilities
980

Total liabilities assumed
606,932

 
 
Net assets acquired
36,340

Less: purchase price
102,500

Goodwill
$
66,160

1 Loans are presented net of participations sold to BOKF NA.

The pro-forma impact of all acquisition transactions for periods prior to the acquisition dates was not material to the Company's consolidated financial statements.

The following table presents the original cost and accumulated amortization of intangible assets (in thousands):
 
 
Dec. 31,
 
 
2016
 
2015
Core deposit premiums
 
$
35,879

 
$
29,369

Less accumulated amortization
 
29,369

 
29,101

Net core deposit premiums
 
6,510

 
268

 
 
 
 
 
Other identifiable intangible assets
 
60,951

 
55,509

Less accumulated amortization
 
20,530

 
11,868

Net other identifiable intangible assets
 
40,421

 
43,641

 
 
 
 
 
Total intangible assets, net
 
$
46,931

 
$
43,909



Expected amortization expense for intangible assets that will continue to be amortized (in thousands):
 
 
Core
Deposit
Premiums
 
Other
Identifiable
Intangible Assets
 
Total
2017
 
$
808

 
$
4,565

 
$
5,373

2018
 
732

 
3,908

 
4,640

2019
 
716

 
3,556

 
4,272

2020
 
697

 
3,420

 
4,117

2021
 
675

 
3,063

 
3,738

Thereafter
 
2,882

 
21,909

 
24,791

 
 
$
6,510

 
$
40,421

 
$
46,931



The changes in the carrying value of goodwill by operating segment are as follows (in thousands):
 
 
Commercial Banking
 
Consumer Banking
 
Wealth
Management
 
Funds Management and Other
 
Total
Balance, December 31, 2014
 
 
 
 
 
 
 
 
 
 
Goodwill
 
$
269,363

 
$
39,251

 
$
69,394

 
$

 
$
378,008

Accumulated impairment losses
 

 
(228
)
 

 

 
(228
)
 
 
269,363

 
39,023

 
69,394

 

 
377,780

 
 
 
 
 
 
 
 
 
 
 
Goodwill acquired during 2015
 
7,681

 

 

 

 
7,681

 
 
 
 
 
 
 
 
 
 
 
Balance, December 31, 2015
 
 
 
 
 
 
 
 
 
 
Goodwill
 
277,044

 
39,251

 
69,394

 

 
385,689

Accumulated impairment losses
 

 
(228
)
 

 

 
(228
)
 
 
277,044

 
39,023

 
69,394

 

 
385,461

 
 
 
 
 
 
 
 
 
 
 
Goodwill acquired during 2016
 
1,210

 

 
2,126

 
66,160

 
69,496

Adjustment1
 
(6,058
)
 

 

 

 
(6,058
)
 
 
 
 
 
 
 
 
 
 
 
Balance, December 31, 2016
 
 
 
 
 
 
 
 
 
 
Goodwill
 
272,196

 
39,251

 
71,520

 
66,160

 
449,127

Accumulated impairment losses
 

 
(228
)
 

 

 
(228
)
 
 
$
272,196

 
$
39,023

 
$
71,520

 
$
66,160

 
$
448,899


1 
Completion of an external audit of Heartland Food Products resulted in a reallocation of the purchase price between net assets acquired, intangible assets and goodwill during 2016.

Goodwill related to the Mobank acquisition was not yet allocated to the operating segments as of December 31, 2016 and accordingly is included in Funds Management and Other above. All of the goodwill related to the Mobank acquisition is tax deductible.

The annual goodwill evaluations for 2016 and 2015 did not indicate impairment for any reporting unit. Economic conditions did not indicate that impairment existed for any identifiable intangible assets and therefore no impairment evaluation was performed.