GOODWILL AND INTANGIBLE ASSETS

The change in the carrying value of goodwill for the years ended December 31, 2018 and 2017 is summarized below for both the total Company and by the Company's reportable segments.



	December 31,
(dollars in thousands)	2018		2017
Consolidated
Carrying amount of goodwill at beginning of year	$	125,532	$	125,532
Additions related to acquisitions in current year	377,902		—
Carrying amount of goodwill at end of year	$	503,434	$	125,532

Banking Division
Carrying amount of goodwill at beginning of year	$	125,532	$	125,532
Additions related to acquisitions in current year	312,612		—
Carrying amount of goodwill at end of year	$	438,144	$	125,532

Premium Finance Division
Carrying amount of goodwill at beginning of year	$	—	$	—
Additions related to acquisitions in current year	$	65,290	$	—
Carrying amount of goodwill at end of year	$	65,290	$	—

During 2018, the Company recorded goodwill totaling $377.9 million comprised of $219.6 million, $93.0 million and $65.3 million related to the acquisitions of Hamilton, Atlantic and USPF, respectively.

Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value.

At December 31, 2018, the Banking Division had positive equity and the Company's qualitative assessment indicated that it was more likely than not that the Banking Division's fair value exceeded it carrying value, resulting in no goodwill impairment.

At December 31, 2018, the Premium Finance Division had positive equity but the Company’s qualitative assessment did not indicate that it was more likely than not that the reporting unit’s fair value exceeded its carrying value. Therefore, the Company proceeded to the two step impairment test. Step 1 includes the determination of the carrying value of the reporting unit, including the goodwill and intangible assets, and estimating fair value of the reporting unit. If the carrying amount of a reporting unit exceeds its fair value, Step 2 determines the impairment. Step 1 was completed for the Premium Finance Division by updating the original cash flow model used to value the division with current customer information, margin assumptions, and future growth. The resulting fair value of the Premium Finance Division exceeded its carrying value, indicating no goodwill impairment and eliminating the need to do Step 2.

The carrying value of intangible assets as of December 31, 2018 and 2017 was $58.7 million and $13.5 million, respectively. Intangible assets are comprised core deposit intangibles, an insurance agent relationships intangible, a "US Premium Finance" trade name intangible, and a non-compete agreement intangible. During 2018, the Company recorded core deposit intangible assets of $23.6 million and $7.5 million associated with the Hamilton acquisition and the Atlantic acquisition, respectively. The amortization period used for core deposit intangibles ranges from seven to ten years. Also during 2018, in connection with the USPF acquisition, the Company recorded an insurance agent relationships intangible asset of $22.4 million, a "US Premium Finance" trade name intangible asset of $1.1 million and a non-compete agreement intangible asset of $162,000. The amortization periods used for the insurance agent relationships, the "US Premium Finance" trade name, and the non-compete agreement intangible assets are eight years, seven years and three years, respectively.

Following is a summary of information related to acquired intangible assets:



	As of December 31, 2018				As of December 31, 2017
(dollars in thousands)	Gross Amount		Accumulated Amortization		Gross Amount		Accumulated Amortization
Amortized intangible assets:
Core deposit premiums	$	57,348	$	19,512	$	26,250	$	12,754
Insurance agent relationships	22,351		2,561		—		—
US Premium Finance trade name	1,094		143		—		—
Non-compete agreement	162		50		—		—
	$	80,955	$	22,266	$	26,250	$	12,754

The Premium Finance Division loans decreased $72.2 million from $482.5 million at December 31, 2017 to $410.4 million at December 31, 2018, indicating the insurance agent relationships intangible asset could be impaired. A detail analysis of acquired insurance agent relationships was performed to update retention assumptions. These new assumptions were used to calculate expected future cash flows from the acquired insurance agent relationships. The updated undiscounted cash flows exceeded the carrying value of the insurance agent relationships intangible asset, indicating no impairment.

The aggregate amortization expense for intangible assets was approximately $9.5 million, $3.9 million, and $4.4 million for the years ended December 31, 2018, 2017 and 2016, respectively.

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



2019	$	12,022
2020	10,491
2021	8,520
2022	6,887
2023	6,067
Thereafter	14,702
	$	58,689