Quarterly report pursuant to Section 13 or 15(d)

GOODWILL AND OTHER INTANGIBLE ASSETS

v3.3.0.814
GOODWILL AND OTHER INTANGIBLE ASSETS
9 Months Ended
Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND OTHER INTANGIBLE ASSETS
GOODWILL AND OTHER INTANGIBLE ASSETS
Business segments are based on segment leadership structure, which reflects how segment performance is monitored and assessed. We have five major business segments: Retail and Business Banking, Commercial Banking, Automobile Finance and Commercial Real Estate (AFCRE), Regional Banking and The Huntington Private Client Group (RBHPCG), and Home Lending. A Treasury / Other function includes, along with technology and operations, other unallocated assets, liabilities, revenue, and expense.
A rollforward of goodwill by business segment for the first nine-month period of 2015 is presented in the table below:
(dollar amounts in thousands)
Retail &
Business
Banking
 
Commercial
Banking
 
AFCRE
 
RBHPCG
 
Home
Lending
 
Treasury/
Other
 
Huntington
Consolidated
Balance, beginning of period
$
368,097

 
$
59,594

 
$

 
$
90,012

 
$

 
$
4,838

 
$
522,541

Goodwill acquired during the period

 
155,828

 

 

 

 

 
155,828

Adjustments

 

 

 
(1,500
)
 

 

 
(1,500
)
Impairment

 

 

 

 

 

 

Balance, end of period
$
368,097

 
$
215,422

 
$

 
$
88,512

 
$

 
$
4,838

 
$
676,869


On March 31, 2015, Huntington completed its acquisition of Macquarie Equipment Finance, which was re-branded Huntington Technology Finance. As part of the transaction, Huntington recorded $155.8 million of goodwill and $8.2 million of other intangible assets. For additional information on the acquisition, see Business Combinations footnote.
During the 2015 third quarter, Huntington adjusted the goodwill in the RBHPCG segment related to a held for sale disposal group at September 30, 2015. The amount was adjusted based on relative fair value methodology.
Goodwill is not amortized but is evaluated for impairment on an annual basis at October 1 of each year or whenever events or changes in circumstances indicate the carrying value may not be recoverable. As a result of the 2014 first quarter reorganization in our reported business segments, goodwill was reallocated among the business segments. Immediately following the reallocation, impairment of $3.0 million was recorded in the Home Lending reporting segment.
At September 30, 2015 and December 31, 2014, Huntington’s other intangible assets consisted of the following:
(dollar amounts in thousands)
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Value
September 30, 2015
 
 
 
 
 
Core deposit intangible
$
400,058

 
$
(383,459
)
 
$
16,599

Customer relationship
116,120

 
(74,025
)
 
42,095

Other
25,164

 
(25,065
)
 
99

Total other intangible assets
$
541,342

 
$
(482,549
)
 
$
58,793

December 31, 2014
 
 
 
 
 
Core deposit intangible
$
400,058

 
$
(366,907
)
 
$
33,151

Customer relationship
107,920

 
(66,534
)
 
41,386

Other
25,164

 
(25,030
)
 
134

Total other intangible assets
$
533,142

 
$
(458,471
)
 
$
74,671


The estimated amortization expense of other intangible assets for the remainder of 2015 and the next five years is as follows:
 
 
(dollar amounts in thousands)
Amortization
Expense
2015
$
3,786

2016
14,316

2017
12,908

2018
11,135

2019
9,825

2020
3,076