SunTrust 2009 Annual Report Download - page 118

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SUNTRUST BANKS, INC.
Notes to Consolidated Financial Statements (Continued)
The changes in the carrying amount of goodwill by reportable segment for the years ended December 31, 2009 and 2008 are
as follows:
(Dollars in thousands) Retail Commercial
Retail &
Commercial Wholesale
Corporate and
Investment
Banking
Household
Lending Mortgage
Wealth and
Investment
Management
Corporate
Other and
Treasury Total
Balance, January 1, 2008 $4,893,970 $1,272,483 $- $- $147,454 $- $275,840 $331,746 $- $6,921,493
Intersegment transfers (4,893,970) (1,272,483) 5,780,742 522,667 (147,454) - - - 10,498 -
NCF purchase adjustments - - (11,782) (119) - - (416) 1,502 - (10,815)
Sale of First Mercantile Trust Company - - - - - - - (11,734) - (11,734)
Acquisition of GB&T - - 143,030 - - - - - - 143,030
Sale of TransPlatinum Service Corp. - - - - - - - - (10,498) (10,498)
Purchase of remaining interest in ZCI - - - - - - - 20,712 - 20,712
Sale of majority interest in ZCI - - - - - - - (15,433) - (15,433)
Acquisition of Cymric Family Office Service - - - - - - - 1,378 - 1,378
SunAmerica contingent consideration - - - - - - 2,830 - - 2,830
Purchase price adjustments - - - - - - - 2,540 - 2,540
Balance, December 31, 2008 $- $- $5,911,990 $522,548 $- $- $278,254 $330,711 $- $7,043,503
Intersegment transfers 1- - 125,580 (522,548) 223,307 451,915 (278,254) - - -
Goodwill impairment - - (299,241) - - (451,915) - - - (751,156)
Seix contingent consideration - - - - - - - 12,722 - 12,722
Acquisition of Epic Advisors, Inc. - - - - - - - 5,012 - 5,012
TBK contingent consideration - - - - - - - 2,700 - 2,700
Inlign contingent consideration - - - - - - - 2,621 - 2,621
Purchase price adjustments - - 474 - - - - 1,206 - 1,680
Other - - - - - - - 1,996 - 1,996
Balance, December 31, 2009 $- $- $5,738,803 $- $223,307 $- $- $356,968 $- $6,319,078
1Goodwill was reallocated among the reportable segments as a result of the corporate restructuring described in Note 22, “Business Segment Reporting,” to the Consolidated Financial Statements.
The changes in carrying amounts of other intangible assets for the years ended December 31 are as follows:
(Dollars in thousands)
Core Deposit
Intangibles
MSRs
LOCOM
MSRs Fair
Value Other Total
Balance, January 1, 2008 $172,655 $1,049,425 $- $140,915 $1,362,995
Amortization (56,854) (223,092) - (19,406) (299,352)
MSRs originated - 485,597 - - 485,597
MSRs impairment reserve - (371,881) - - (371,881)
MSRs impairment recovery - 1,881 - - 1,881
Sale of interest in Lighthouse Partners - - - (5,992) (5,992)
Sale of MSRs - (131,456) - - (131,456)
Customer intangible impairment charge - - - (45,000) (45,000)
Purchased credit card relationships 1- - - 9,898 9,898
Acquisition of GB&T229,510 - - - 29,510
Sale of First Mercantile Trust - - - (3,033) (3,033)
Other - - - 2,260 2,260
Balance, December 31, 2008 $145,311 $810,474 $- $79,642 $1,035,427
Designated at fair value (transfers from amortized cost) - (187,804) 187,804 - -
Amortization (41,071) (218,008) - (14,736) (273,815)
MSRs originated - - 681,813 - 681,813
MSRs impairment recovery - 199,159 - - 199,159
Changes in fair value
Due to changes in inputs or assumptions 3- - 160,639 - 160,639
Other changes in fair value 4- - (94,695) - (94,695)
Other - - - 2,771 2,771
Balance, December 31, 2009 $104,240 $603,821 $935,561 $67,677 $1,711,299
1During the third quarter of 2008, SunTrust purchased a credit card portfolio of loans including the cardholder relationships from another financial institution
representing an outstanding balance of $82.4 million at the time of acquisition. A majority of the premium paid was attributed to the cardholder
relationships and is being amortized over seven years.
2During the second quarter of 2008, SunTrust acquired 100% of the outstanding shares of GB&T. As a result of the acquisition, SunTrust assumed $1.4
billion of deposit liabilities and recorded core deposit intangibles that are being amortized over an eight year period.
3Primarily reflects changes in discount rates and prepayment speed assumptions, due to changes in interest rates.
4Represents changes due to the collection of expected cash flows, net of accretion, due to passage of time.
102