GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

The change in the carrying value of goodwill for the years ended December 31, 2017 and 2016 is summarized below.



	December 31,
(dollars in thousands)	2017		2016
Carrying amount of goodwill at beginning of year	$	125,532	$	90,082
Additions related to acquisitions in current year	—		35,485
Fair value adjustments related to acquisitions in prior year	—		(35		)
Carrying amount of goodwill at end of year	$	125,532	$	125,532

During 2016, the Company recorded goodwill totaling $35,485,000 related to the acquisition of JAXB. During 2016, the Company recorded a reduction of $35,000 of goodwill related to the 2015 Merchants acquisition.

Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value. At December 31, 2017, the Company’s reporting unit had positive equity and the Company elected to perform a qualitative assessment to determine if it was more likely than not that the fair value of the reporting unit exceeded its carrying value, including goodwill. The qualitative assessment indicated that it was more likely than not that the fair value of the reporting unit exceeded its carrying value, resulting in no impairment.

The carrying value of intangible assets as of December 31, 2017 and 2016 was $13,496,000 and $17,428,000, respectively. Intangible assets are comprised solely of core deposit intangibles. The Company recorded a core deposit intangible asset of $4,746,000 associated with the acquisition of JAXB during 2016. The amortization period used for core deposit intangibles ranges from seven to ten years. Following is a summary of information related to acquired intangible assets:



	As of December 31, 2017				As of December 31, 2016
(dollars in thousands)	Gross Amount		Accumulated Amortization		Gross Amount		Accumulated Amortization
Amortized intangible assets - core deposit premiums	$	26,250	$	12,754	$	26,250	$	8,822

The aggregate amortization expense for intangible assets was approximately $3,932,000, $4,376,000, and $3,741,000 for the years ended December 31, 2017, 2016 and 2015, respectively.

The estimated amortization expense for each of the next five years is as follows (in thousands):



2018	$	3,697
2019	3,622
2020	2,915
2021	1,691
2022	653
Thereafter	918
	$	13,496

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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