Huntington National Bank 2008 Annual Report Download - page 103

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8. GOODWILL AND OTHER INTANGIBLE ASSETS
Changes to the carrying amount of goodwill by line of business for the years ended December 31, 2008 and 2007, were as follows:
(in thousands)
Regional
Banking PFCMIG
Treasury/
Other
Huntington
Consolidated
Balance, January 1, 2007 $ 535,855 $ 35,021 $ — $ 570,876
Goodwill acquired during the period 2,370,804 56,946 61,845 2,489,595
Adjustments (504) (4,450) 3,816 (1,138)
Balance, December 31, 2007 2,906,155 87,517 65,661 3,059,333
Adjustments (17,811) 65,661 (52,198) (4,348)
Balance, December 31, 2008 $2,888,344 $153,178 $ 13,463 $3,054,985
The change in consolidated goodwill for the year ended December 31, 2008, primarily related to final purchase accounting
adjustments of acquired bank branches, operating facilities, and other contingent obligations primarily from the Sky Financial
acquisition made on July 1, 2007. Huntington transferred goodwill relating to the insurance business from Treasury/Other to
PFCMIG and transferred other goodwill from Regional Banking to Treasury/Other in response to other organizational changes.
Huntington does not expect a material amount of goodwill from mergers in 2007 to be deductible for tax purposes.
In accordance with FASB Statement No. 142, Goodwill and Other Intangible Assets (Statement No. 142), goodwill is not amortized,
but is evaluated for impairment on an annual basis at October 1st of each year or whenever events or changes in circumstances
indicate that the carrying value may not be recoverable. Due to the adverse changes in the business climate in which the Company
operates, a goodwill impairment test was also performed as of June 30, 2008 and December 31, 2008 relating to the carrying value
of goodwill of our reporting units, in accordance with Statement No. 142. Based on these analyses, the Company concluded that
the fair value of its reporting units exceeds the fair value of its assets and liabilities and therefore goodwill was not considered
impaired.
At December 31, 2008 and 2007, Huntington’s other intangible assets consisted of the following:
(in thousands)
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying Value
December 31, 2008
Core deposit intangible $373,300 $(111,163) $262,137
Customer relationship 104,574 (16,776) 87,798
Other 29,327 (22,559) 6,768
Total other intangible assets $507,201 $(150,498) $356,703
December 31, 2007
Core deposit intangible $373,300 $ (46,057) $327,243
Customer relationship 104,574 (7,055) 97,519
Other 23,655 (20,447) 3,208
Total other intangible assets $501,529 $ (73,559) $427,970
The estimated amortization expense of other intangible assets for the next five years is as follows:
(in thousands)
Amortization
Expense
2009 $68,372
2010 60,455
2011 53,310
2012 46,066
2013 40,429
101
Notes to Consolidated Financial Statements Huntington Bancshares Incorporated