Huntington National Bank 2014 Annual Report Download - page 153

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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 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 years ended December 31, 2014 and 2013, is presented in the table below:
Retail &
Business Commercial Home Treasury/ Huntington
(dollar amounts in thousands) Banking Banking AFCRE RBHPCG Lending Other Consolidated
Balance, January 1, 2013 $ 286,824 $ 22,108 $ --- $ 93,012 $ --- $ 42,324 $ 444,268
Adjustments / Reallocation --- --- --- --- --- --- ---
Balance, December 31, 2013 286,824 22,108 --- 93,012 --- 42,324 444,268
Goodwill acquired during the period 81,273 --- --- --- --- --- 81,273
Adjustments / Reallocation --- 37,486 --- (3,000) 3,000 (37,486) ---
Impairment --- --- --- --- (3,000) --- (3,000)
Balance, December 31, 2014 $ 368,097 $ 59,594 $ --- $ 90,012 $ --- $ 4,838 $ 522,541
In 2014, Huntington completed an acquisition of 24 Bank of America branches in Michigan and recorded $17.1 million of
goodwill. The remaining $64.2 million of goodwill acquired during 2014 was the result of the Camco Financial acquisition, which
was also completed in 2014. For additional information on the acquisitions, see Business Combinations footnote.
Goodwill is not amortized but is evaluated for impairment on an annual basis as of October 1st each year or whenever events or
changes in circumstances indicate that 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. No impairment was recorded in 2013 or 2012.
During the 2014 third quarter, we moved our insurance brokerage business from Treasury / Other to Commercial Banking to align
with a change in management responsibilities. Amounts relating to the realignment are disclosed in the table above.
At December 31, 2014 and 2013, Huntington’s other intangible assets consisted of the following:
Gross Net
Carrying Accumulated Carrying
(dollar amounts in thousands) Amount Amortization Value
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
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