Note 6:  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 as of October 1 of each year and assess qualitative factors on a quarterly basis that would indicate events or circumstances that an impairment might have taken place.

 

Goodwill totaled $1.2 million at December 31, 2014 and 2013, of which, $0.2 million of goodwill is reported in the Oklahoma Banking segment and $1.0 million is reported in the Texas Banking segment.  Further information regarding operating segments can be found in “Note 19 Operating Segments”.    

 

Based on our annual goodwill impairment test as of October 1, 2014 and updated through December 31, 2014, management does not believe any of its goodwill is impaired as of December 31, 2014.  We did not recognize an impairment during the years ended December 31, 2014, 2013 and 2012. 

 

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

 

 

 

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 $0.4  million in 2014 and $0.5 million in 2013 and 2012.    In addition, the impact of the Kansas branch sales resulted in a $1.1 million reduction to core deposit intangibles.

 

During 2014 and 2013,  we had recorded loan servicing rights amortization expense of $0.4  million and $0.8 million, respectively. 

 

 

The estimated aggregate future amortization expense for other intangible assets remaining as of December 31, 2014 is as follows: