Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets [Text Block]

Goodwill and Intangible Assets

On December 1, 2016, the Company acquired MBT Bancshares (“MBT”), parent company of Missouri Bank and Trust of Kansas City (“Mobank”) following regulatory approval of the transaction. Mobank operated four banking branches in the Kansas City, Mo. 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 21, 2017, Mobank was merged with the Bank of Kansas City division of BOKF, NA. All branches in the Kansas City market operate under the Mobank name. The preliminary purchase price allocation was finalized during 2017, resulting in a $2.0 million increase in identifiable intangibles, $1.5 million decrease in premises and equipment and other repossessed assets, and a $526 thousand decrease in goodwill.

The following table presents the original cost and accumulated amortization of intangible assets (in thousands):



	Dec. 31,
	2017		2016
Core deposit premiums	$	6,510	$	35,879
Less accumulated amortization	808		29,369
Net core deposit premiums	5,702		6,510

Other identifiable intangible assets	44,468		60,951
Less accumulated amortization	21,512		20,530
Net other identifiable intangible assets	22,956		40,421

Total intangible assets, net	$	28,658	$	46,931

Expected amortization expense for intangible assets that will continue to be amortized (in thousands):



	Core Deposit Premiums		Other Identifiable Intangible Assets		Total
2018	$	732	$	4,322	$	5,054
2019	716		3,970		4,686
2020	697		3,834		4,531
2021	675		3,477		4,152
2022	649		2,628		3,277
Thereafter	2,233		4,725		6,958
	$	5,702	$	22,956	$	28,658

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, 2015
Goodwill	$	277,044		$	39,251		$	69,394		$	—		$	385,689
Accumulated impairment losses	—			(228		)	—			—			(228		)
	277,044			39,023			69,394			—			385,461

Goodwill recognized during 2016	1,210			—			2,126			66,160			69,496
Adjustment²	$	(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

Goodwill recognized during 2017	4,301			—			—			—			4,301
Sales of consolidated merchant banking investments during 2017	(5,219		)	—			(25		)	—			(5,244		)
Adjustment¹	41,992			4,435			19,207			(66,160		)	(526		)

Balance, December 31, 2017
Goodwill	313,270			43,686			90,702			—			447,658
Accumulated impairment losses	—			(228		)	—			—			(228		)
	$	313,270		$	43,458		$	90,702		$	—		$	447,430


¹	Goodwill from Mobank acquisition was not yet allocated to the segments as of December 31, 2016. Adjustment was made in 2017 for final purchase price adjustments and to allocate to the segments.


²	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.

The annual goodwill evaluations for 2017 and 2016 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.

- 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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