Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

Changes to the carrying amount of goodwill by reporting unit for the nine months ended September 30, 2017, and the year ended December 31, 2016 are provided in the following table.



(Dollars in thousands)	IBERIABANK		Mortgage		LTC		Total
Balance, December 31, 2015	$	696,260	$	23,178	$	5,165	$	724,603
Goodwill adjustments during the year	2,253		—		—		2,253
Balance, December 31, 2016	$	698,513	$	23,178	$	5,165	$	726,856
Goodwill acquired during the year (preliminary allocation)	431,827		—		—		431,827
Balance, September 30, 2017	$	1,130,340	$	23,178	$	5,165	$	1,158,683

On July 31, 2017, the Company completed its acquisition of Sabadell United. In connection with the acquisition, the Company recorded $431.8 million of goodwill based on preliminary fair value estimates. See Note 3 for additional information regarding this acquisition. The goodwill adjustments during 2016 were the result of the finalization of fair value estimates related to the 2015 acquisitions of Florida Bank Group, Old Florida, and Georgia Commerce during the respective measurement periods.

The Company performed the required annual goodwill impairment test as of October 1, 2016. The Company’s annual impairment test did not indicate impairment in any of the Company’s reporting units as of the testing date. Following the testing date, management evaluated the events and changes that could indicate that goodwill might be impaired and concluded that a subsequent interim test was not necessary. The Company is currently in the process of performing its annual impairment test as of October 1, 2017.

Mortgage Servicing Rights

Mortgage servicing rights are recorded at the lower of cost or market value in “other assets” on the Company's consolidated balance sheets and amortized over the remaining servicing life of the loans, with consideration given to prepayment assumptions. Mortgage servicing rights had the following carrying values as of the periods indicated:



	September 30, 2017							December 31, 2016
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
(Dollars in thousands)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Mortgage servicing rights	$	8,985	$	(3,747	)	$	5,238	$	7,202	$	(3,144	)	$	4,058

In addition, there was an insignificant amount of non-mortgage servicing rights related to SBA loans as of September 30, 2017 and December 31, 2016, respectively.

Title Plant

The Company held title plant assets recorded in “other assets” on the Company's consolidated balance sheets totaling $6.7 million at both September 30, 2017 and December 31, 2016. No events or changes in circumstances occurred during the nine months ended September 30, 2017 to suggest the carrying value of the title plant was not recoverable.

Intangible assets subject to amortization

In connection with the acquisition of Sabadell United, the Company recorded $96.6 million of core deposit intangible assets. Core deposit intangible assets are subject to amortization over a ten year period. Definite-lived intangible assets had the following carrying values included in “other assets” on the Company’s consolidated balance sheets as of the periods indicated:



	September 30, 2017							December 31, 2016
(Dollars in thousands)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Core deposit intangible assets	$	157,964	$	(47,355	)	$	110,609	$	74,001	$	(52,165	)	$	21,836
Customer relationship intangible asset	1,143		(970		)	173		1,348		(1,064		)	284
Non-compete agreement	63		(35		)	28		63		(22		)	41
Total	$	159,170	$	(48,360	)	$	110,810	$	75,412	$	(53,251	)	$	22,161

The estimated amortization expense of other intangible assets for the remainder of 2017 and the next five years is as follows:



(Dollars in thousands)	Amortization Expense
2017	$	5,969
2018	21,568
2019	18,105
2020	15,065
2021	11,256
2022	9,087

- 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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