Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2019

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Note 7. Goodwill and Other Intangible Assets

Other than goodwill, the Company does not have any other intangible assets that are not amortized. The Company’s goodwill is associated with its three operating segments, Banking, Remittance Processing and Wealth Management. Goodwill is tested annually for impairment, and as part of this analysis, the reporting unit's carrying value is compared to its fair value. Based on the impairment testing performed at December 31, 2019, there were no indicators of potential impairment based on the estimated fair value of those operating segments. All three operating segments have sustained quarterly and annual earnings.

During 2019, the Company recorded, in the Banking operating segment, goodwill totaling $41.4 million and other intangible assets totaling $27.2 million in connection with the acquisition of Banc Ed. In addition, $5.4 million of other intangible assets was recorded in the Wealth Management operating segment in 2019 in connection with the acquisition

of Banc Ed. Further, in 2019 the Company recorded, in the Wealth Management operating segment, goodwill totaling $2.4 million and other intangible assets totaling $5.7 million relating to the acquisition of IST. During 2018, the Company adjusted goodwill by $1.7 million relating to the acquisition of Mid Illinois as it finalized its assessment of the initial fair value of assets acquired and liabilities assumed. The carrying amount of goodwill by operating segment, at December 31, 2019 and 2018 is as follows (dollars in thousands):

	Balance at		Balance at
	December 31, 2019		December 31, 2018
Goodwill:
Banking	$	288,436	$	246,999
Remittance Processing		8,992		8,992
Wealth Management		14,108		11,694
Total goodwill	$	311,536	$	267,685

Core deposit and customer relationship intangible assets are amortized over the estimated period benefited. Other intangible asset disclosures are as follows (dollars in thousands):

	Balance at		2019		Balance at		2018
	December 31, 2019		Amortization		December 31, 2018		Amortization
Amortized intangible assets:
Core deposit intangible assets	$	51,100	$	7,963	$	31,836	$	5,535
Customer relationship intangible assets		10,493		1,584		1,037		319
	$	61,593	$	9,547	$	32,873	$	5,854

			Customer
	Core deposit		relationship
	intangible		intangible
As of December 31, 2019:
Gross carrying amount	$	90,256	$	24,208
Accumulated amortization		39,156		13,715
	$	51,100	$	10,493
Estimated amortization expense at December 31, 2019:
2020	$	7,753	$	2,188
2021		7,259		1,926
2022		6,749		1,664
2023		6,225		1,403
2024		5,686		1,141
Thereafter		17,428		2,171
	$	51,100	$	10,493