Atlantic Union Bankshares Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

INTANGIBLE ASSETS

INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

The Company’s intangible assets consist of core deposits, goodwill, and other intangibles arising from previous and current acquisitions. The Company has determined that core deposit intangibles have finite lives and amortizes them over their estimated useful lives. Core deposit intangible assets are being amortized over the period of expected benefit, which ranges from 4 to 14 years , using an accelerated method. On January 1, 2014, the Company completed the acquisition of StellarOne and acquired intangible assets of $29.6 million and recorded $234.1 million of goodwill. On May 31, 2016, the Company completed the acquisition of ODCM and recorded goodwill of $4.7 million and other amortizable intangible assets of $4.5 million. The Company is amortizing these intangible assets over the period of expected benefit, which ranges from 5 to 10 years using a straight-line method.

In accordance with ASC 350, Intangibles-Goodwill and Other, the Company reviews the carrying value of indefinite lived intangible assets at least annually or more frequently if certain impairment indicators exist. The Company performed its annual impairment testing in the second quarter of 2016 and determined that there was no impairment to its goodwill or intangible assets.

Information concerning intangible assets with a finite life is presented in the following table (dollars in thousands):



	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
December 31, 2016
Amortizable core deposit intangibles	$	68,367	$	51,987	$	16,380
Other amortizable intangibles	4,502		280		4,222
December 31, 2015
Amortizable core deposit intangibles	$	76,185	$	52,875	$	23,310

Amortization expense of core deposit intangibles for the years ended December 31, 2016, 2015, and 2014 totaled $6.9 million, $8.4 million, and $9.8 million, respectively. Amortization expense of other intangibles at December 31, 2016 was $280,000. There was no amortization expense of other intangibles for the years ended December 31, 2015 and 2014. As of December 31, 2016, the estimated remaining amortization expense of intangibles is as follows (dollars in thousands):



2017	$	6,070
2018	4,625
2019	3,573
2020	2,509
2021	1,481
Thereafter	2,344
Total estimated amortization expense	$	20,602