Goodwill And Other Intangible Assets

12 Months Ended

Dec. 31, 2016

Goodwill And Other Intangible Assets [Abstract]

Note 7: Goodwill and Other Intangible Assets

We have recorded goodwill and other identifiable intangible assets associated with purchase business combinations. Goodwill is not amortized, but is periodically evaluated for impairment. We perform an annual goodwill impairment test each year and assess qualitative factors on a quarterly basis that would indicate events or circumstances that an impairment might have taken place.

At December 31, 2016 and 2015, goodwill totaled $13.5 million, of which $12.5 million of goodwill is reported in the Oklahoma Banking segment and $1.0 million is reported in the Texas Banking segment. In 2015, $12.3 million of goodwill was recorded as a result of the acquisition of Bancshares. Further information regarding operating segments can be found in “Note 20 Operating Segments”.

Based on our annual goodwill impairment test through December 31, 2016, management does not believe any of its goodwill is impaired as of December 31, 2016. We did not recognize an impairment during the years ended December 31, 2016, 2015 and 2014.

The following table presents the gross carrying amount of other intangible assets and accumulated amortization.


	At December 31,
(Dollars in thousands)	2016		2015
Core deposit premiums	$	6,119	$	6,119
Less accumulated amortization		(3,820)		(3,225)
Core deposit premiums, net		2,299		2,894

Loan servicing rights		14,710		13,635
Less accumulated amortization		(11,219)		(9,914)
Loan servicing rights, net		3,491		3,721

Other intangible assets, net	$	5,790	$	6,615

Core deposit intangibles are amortized using an economic life method based on deposit attrition. As a result, amortization will decline over time with most of the amortization occurring during the initial years. The weighted average amortization period for core deposit intangibles is approximately 10 years. Amortization expense related to core deposit intangibles totaled $0.6 million in 2016, $0.3 million in 2015, and $0.4 million in 2014. In 2015, $2.7 million of core deposit intangibles was recorded as a result of the acquisition of Bancshares. As of December 31, 2016, economic conditions did not indicate that impairment existed for the core deposit intangibles and therefore no impairment evaluation was performed. We did not recognize any impairment during the years ended December 31, 2016, 2015, and 2014.

During 2016, 2015, and 2014, we had recorded loan servicing rights amortization expense of $0.7 million, $0.6 million, and $0.4 million, respectively. As of December 31, 2016, mortgage loan servicing rights had a fair value of $4.2 million, which exceeded the book value of $3.5 million. Because the fair value exceeded the book value, there was no impairment charge at December 31, 2016. During the first three quarters of 2016, the mortgage loan servicing rights were written down to their fair values, resulting in total impairment charges of $0.6 million, which was included in noninterest income. As of December 31, 2015, mortgage loan servicing rights were written down to their fair values, resulting in an impairment charge of $0.1 million, which was included in noninterest income. We did not recognize any impairment during the year ended December 31, 2014.

The estimated aggregate future amortization expense for other intangible assets remaining as of December 31, 2016 is as follows:


(Dollars in thousands)	Core Deposit Premiums		Loan Servicing Rights		Total
2017	$	451	$	654	$	1,105
2018		391		571		962
2019		386		478		864
2020		386		396		782
2021		386		323		709
Thereafter		299		1,069		1,368
	$	2,299	$	3,491	$	5,790

- 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.

+ References + Details