Note 6 - Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

NOTE 6: GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill is tested annually, or more often than annually, if circumstances warrant, for impairment.  If the implied fair value of goodwill is lower than its carrying amount, goodwill impairment is indicated, and goodwill is written down to its implied fair value.  Subsequent increases in goodwill value are not recognized in the financial statements.  Goodwill totaled $314.2 million at June 30, 2015 and $108.1 million at December 31, 2014.   The Company recorded $111.3 million and $95.6 of goodwill during the six months ended June 30, 2015 as a result of its acquisitions of Community First and Liberty, respectively. Goodwill impairment was neither indicated nor recorded during the six months ended June 30, 2015 or the year ended December 31, 2014.

Core deposit premiums are amortized over a ten year period and are periodically evaluated, at least annually, as to the recoverability of their carrying value.  Core deposit premiums of $11.3 million and $14.6 million were recorded during the first quarter of 2015 as part of the Community First and Liberty acquisitions, respectively.

The Delta Trust acquisition on August 31, 2014 included some significant lines of business related to investments, trust and insurance, for which the Company recorded $5.1 million of intangible assets. The Company also recorded $0.4 million of intangible assets during the six months ended June 30, 2015 related to a line of insurance business as part of the Community First acquisition. These intangible assets are being amortized over various periods ranging from 10 to 15 years.

On September 30, 2013, the Company acquired a credit card portfolio and recorded Purchased Credit Card Relationships (“PCCR’s”) of $2.1 million. This intangible asset is being amortized over a five year period.

The Company’s goodwill and other intangibles (carrying basis and accumulated amortization) at June 30, 2015 and December 31, 2014, were as follows: 

(In thousands)	June 30, 2015			December 31, 2014
Goodwill	$	314,282		$	108,095
Core deposit premiums:
Gross carrying amount		44,030			18,318
Accumulated amortization		(4,040	)		(2,386	)
Core deposit premiums, net		39,990			15,932
Purchased credit card relationships:
Gross carrying amount		2,068			2,068
Accumulated amortization		(724	)		(517	)
Purchased credit card relationships, net		1,344			1,551
Books of business intangible:
Gross carrying amount		5,560			5,140
Accumulated amortization		(289	)		(97	)
Books of business intangible, net		5,271			5,043
Other intangible assets, net		46,605			22,526
Total goodwill and other intangible assets	$	360,887		$	130,621

The Company’s estimated future amortization expense for intangible assets remaining as of June 30, 2015 is as follows:

(In thousands)	Year	Amortization Expense
	Remainder of 2015	$	2,633
	2016		5,240
	2017		5,240
	2018		5,137
	2019		4,826
	Thereafter		23,529
	Total	$	46,605