Quarterly report pursuant to Section 13 or 15(d)

INTANGIBLE ASSETS

v3.2.0.727
INTANGIBLE ASSETS
6 Months Ended
Jun. 30, 2015
INTANGIBLE ASSETS [Abstract]  
INTANGIBLE ASSETS

 

5.INTANGIBLE ASSETS

 

The Company’s intangible assets consist of core deposits and goodwill arising from previous acquisitions.  The Company has determined that core deposit intangibles have a finite life and amortizes them over their estimated useful life.    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.    

 

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 2015 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

June 30, 2015

 

 

 

 

 

 

 

 

Amortizable core deposit intangibles

$

76,185 

 

$

48,791 

 

$

27,394 

 

 

 

 

 

 

 

 

 

December 31, 2014

 

 

 

 

 

 

 

 

Amortizable core deposit intangibles

$

76,185 

 

$

44,430 

 

$

31,755 

 

 

 

 

 

 

 

 

 

June 30, 2014

 

 

 

 

 

 

 

 

Amortizable core deposit intangibles

$

76,185 

 

$

39,706 

 

$

36,479 

 

Amortization expense of core deposit intangibles for the three and six months ended June 30, 2015 totaled $2.1 million and $4.4 million, respectively; for the three and six months ended June 30, 2014 totaled $2.5 million and $5.1 million, respectively; and for the year ended December 31, 2014 was $9.8 million.  As of June 30, 2015, the estimated remaining amortization expense of core deposit intangibles is as follows (dollars in thousands):

 

 

 

 

For the remaining six months of 2015

$

4,085 

For the year ending December 31, 2016

 

6,932 

For the year ending December 31, 2017

 

5,590 

For the year ending December 31, 2018

 

4,144 

For the year ending December 31, 2019

 

3,093 

For the year ending December 31, 2020

 

2,027 

Thereafter

 

1,523 

Total estimated amortization expense

$

27,394