Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets [Text Block]

Goodwill and Intangible Assets

On October 1, 2018, the Company acquired CoBiz Financial, Inc. ("CoBiz"), parent company of CoBiz Bank. The Company paid total consideration of $944 million, which included $243 million in cash along with the issuance of 7.2 million shares of BOK Financial common stock valued at $701 million in exchange for all the outstanding shares of CoBiz. Goodwill acquired was attributed to synergies expected to be gained through consolidation of administrative functions resulting in cost savings. The purchase price allocation was completed in 2019 with no significant change from the preliminary purchase price allocation.

On May 1, 2018, the Company acquired a majority voting interest in Switchgrass Holdings, LLC, a restaurant franchise owner and operator, pursuant to merchant banking regulations and restrictions. The purchase price for the acquisition was $14 million and included $6.7 million of intangible assets.

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



	Dec. 31,
	2019		2018
Core deposit premiums	$	103,200	$	103,200
Less accumulated amortization	19,364		5,032
Net core deposit premiums	83,836		98,168

Other identifiable intangible assets	74,372		63,497
Less accumulated amortization	32,937		26,816
Net other identifiable intangible assets	41,435		36,681

Total intangible assets, net	$	125,271	$	134,849

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



	Core Deposit Premiums		Other Identifiable Intangible Assets		Total
2020	$	12,892	$	7,405	$	20,297
2021	11,893		6,706		18,599
2022	10,981		5,339		16,320
2023	10,145		4,298		14,443
2024	9,379		3,284		12,663
Thereafter	28,546		14,403		42,949
	$	83,836	$	41,435	$	125,271

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, 2017	313,270		43,458		90,702		—			447,430
Goodwill recognized during 2018¹	—		—		—		601,833			601,833
Balance, December 31, 2018	313,270		43,458		90,702		601,833			1,049,263
Adjustment¹	600,661		—		—		(601,833		)	(1,172		)
Balance, December 31, 2019	$	913,931	$	43,458	$	90,702	$	—		$	1,048,091


¹	Goodwill related to the CoBiz acquisition was not yet allocated to the operating segments as of December 31, 2018 and was included in Funds Management and Other in 2018 then allocated during 2019.

The annual goodwill evaluations for 2019 and 2018 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.