Goodwill and Other Intangible Assets
 12 Months Ended
Dec. 31, 2014
Goodwill and Other Intangible Assets  
Goodwill and Other Intangible Assets

 

Note 7: Goodwill and Other Intangible Assets

 

Other than goodwill, the Company does not have any other intangible assets that are not amortized. Accounting standards allow for goodwill to be tested for impairment by first performing a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value.  If the reporting unit does not pass the qualitative assessment, then the reporting unit’s carrying value is compared to its fair value.

 

The Company’s goodwill is associated with the operations of Busey Wealth Management and FirsTech.  Based on the impairment testing performed at December 31, 2014, Busey Wealth Management and FirsTech did not have indicators of potential impairment based on the estimated fair value of those operating segments. Busey Wealth Management and FirsTech have sustained quarterly and annual profits. However, it is possible we will evaluate our goodwill for impairment on a more frequent basis than annually. The evaluation may result in impairment.

 

There were no changes in the carrying amount of goodwill by operating segment during 2014 or 2013. The carrying amount of goodwill by operating segment, in thousands, at December 31, 2014 and 2013 is as follows:

 

Goodwill:

 

 

 

FirsTech

 

$
8,992 

 

Busey Wealth Management

 
11,694 

 

Total Goodwill

 

$
20,686 

 

 

Core deposit and customer relationship intangible assets are amortized on an accelerated or straight-line basis over the estimated period benefited up to 10 years.  Other intangible asset disclosures are as follows:

 

 

 

Balance at
December 31,
2013

 

Amortization

 

Balance at
December 31,
2014

 

 

 

(dollars in thousands)

 

Amortized intangible assets:

 

 

 

 

 

 

 

Core deposit intangible assets

 

$
6,124 

 

$
1,870 

 

$
4,254 

 

Customer relationship intangible assets

 
3,447 

 
1,014 

 
2,433 

 

 

 

$
9,571 

 

$
2,884 

 

$
6,687 

 

 

 

 

Core deposit
intangible

 

Customer
relationship
intangible

 

 

 

(dollars in thousands)

 

As of December 31, 2014:

 

 

 

 

 

Gross carrying amount

 

$
19,962 

 

$
11,320 

 

Accumulated amortization

 
15,708 

 
8,887 

 

 

 

$
4,254 

 

$
2,433 

 

 

 

 

 

 

 

Estimated amortization expense on balance at December 31, 2014:

 

 

 

 

 

2015

 

$
1,719 

 

$
972 

 

2016

 
1,644 

 
929 

 

2017

 
891 

 
532 

 

 

 

$
4,254 

 

$
2,433