Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Other Intangible Assets

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Goodwill and Other Intangible Assets
3 Months Ended
Mar. 31, 2014
Goodwill and Other Intangible Assets [Abstract]  
GOODWILL AND OTHER INTANGIBLE ASSETS

7. Goodwill and Other Intangible Assets

 

 

Business segments are based on segment leadership structure, which reflects how segment performance is monitored and assessed. During the 2014 first quarter, we realigned our business segments to drive our ongoing growth and leverage the knowledge of our highly experienced team. We now 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 our insurance brokerage business, along with technology and operations, other unallocated assets, liabilities, revenue, and expense. All periods presented have been reclassified to conform to the current period classification. Amounts relating to the realignment are disclosed in the table below.

 

A rollforward of goodwill by business segment for the first three-month period of 2014 is presented in the table below:

 

    Retail &                          
    Business Commercial     Home     Treasury/   Huntington
(dollar amounts in thousands) Banking Banking AFCRE     RBHPCG     Lending     Other   Consolidated
Balance, beginning of period $ 286,824   $ 16,169   $ ---   $ 98,951   $ ---   $ 42,324   $ 444,268
  Goodwill acquired                                        
  during the period   64,180     ---     ---     ---     ---     ---     64,180
  Adjustments   ---     5,939     ---     (8,939)     3,000     ---     ---
  Impairment   ---     ---     ---     ---     (3,000)     ---     (3,000)
Balance, end of period $ 351,004   $ 22,108   $ ---   $ 90,012   $ ---   $ 42,324   $ 505,448

Goodwill acquired during the period was the result of the Camco Financial acquisition, which was completed on March 1, 2014. For additional information, see Business Combinations footnote.

 

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 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 March 31, 2014 and December 31, 2013, Huntington's other intangible assets consisted of the following:

      Gross           Net
      Carrying     Accumulated     Carrying
(dollar amounts in thousands)   Amount     Amortization     Value
                   
March 31, 2014                
  Core deposit intangible $ 387,105   $ (342,981)   $ 44,124
  Customer relationship   106,974     (60,534)     46,440
  Other   25,164     (24,971)     193
Total other intangible assets $ 519,243   $ (428,486)   $ 90,757
                   
December 31, 2013                
  Core deposit intangible $ 380,249   $ (335,552)   $ 44,697
  Customer relationship   106,974     (58,675)     48,299
  Other   25,164     (24,967)     197
Total other intangible assets $ 512,387   $ (419,194)   $ 93,193
                   

The estimated amortization expense of other intangible assets for the remainder of 2014 and the next five years is as follows:

  (dollar amounts     Amortization
  in thousands)     Expense
         
  2014   $ 28,458
  2015     21,693
  2016     8,354
  2017     7,747
  2018     6,752
  2019     6,205