GOODWILL AND OTHER INTANGIBLE ASSETS (Note 8)

The changes in the carrying amount of goodwill as allocated to our business segments, or reporting units thereof, for goodwill impairment analysis were:



	Business Segment / Reporting Unit*
	Wealth Management		Consumer Lending		Commercial Lending		Investment Management		Total
	(in thousands)
Balance at December 31, 2016	$	21,218	$	200,103	$	316,258	$	153,058	$	690,637
Balance at December 31, 2017	$	21,218	$	200,103	$	316,258	$	153,058	$	690,637
Goodwill from business combinations	—		86,922		241,592		65,514		394,028
Balance at December 31, 2018	$	21,218	$	287,025	$	557,850	$	218,572	$	1,084,665


*	Valley’s Wealth Management Division is comprised of trust, asset management and insurance services. This reporting unit is included in the Consumer Lending segment for financial reporting purposes.

The goodwill from business combinations during 2018 set forth in the table above relates to the USAB acquisition. During 2018, Valley adjusted the fair value of certain PCI loans and deferred tax assets which, on a combined basis, resulted in a $5.8 million net increase in goodwill. See Note 2 for further details related to the USAB acquisition.

There was no impairment of goodwill during the years ended December 31, 2018, 2017 and 2016.

The following tables summarize other intangible assets as of December 31, 2018 and 2017:



	Gross Intangible Assets		Accumulated Amortization			Valuation Allowance			Net Intangible Assets
	(in thousands)
December 31, 2018
Loan servicing rights	$	87,354	$	(63,161	)	$	(83	)	$	24,110
Core deposits	80,470		(29,136		)	—			51,334
Other	3,945		(2,399		)	—			1,546
Total other intangible assets	$	171,769	$	(94,696	)	$	(83	)	$	76,990
December 31, 2017
Loan servicing rights	$	79,138	$	(57,054	)	$	(471	)	$	21,613
Core deposits	43,396		(24,297		)	—			19,099
Other	4,087		(2,292		)	—			1,795
Total other intangible assets	$	126,621	$	(83,643	)	$	(471	)	$	42,507

Core deposits are amortized using an accelerated method and have a weighted average amortization period of 8 years. The line item labeled “Other” included in the table above primarily consists of customer lists which are amortized over their expected lives generally using a straight-line method and have a weighted average amortization period of 7.6 years. Valley recorded approximately $44.6 million and $1.4 million of core deposit intangibles and loan servicing rights, respectively, resulting from the USAB acquisition. Valley evaluates core deposits and other intangibles for impairment when an indication of impairment exists. No impairment was recognized during the years ended December 31, 2018, 2017 and 2016.

The following table summarizes the change in loan servicing rights during the years ended December 31, 2018, 2017 and 2016:



	2018			2017			2016
	(in thousands)
Loan servicing rights:
Balance at beginning of year	$	22,084		$	20,368		$	16,681
Origination of loan servicing rights	8,216			7,039			8,479
Amortization expense	(6,107		)	(5,323		)	(4,792		)
Balance at end of year	$	24,193		$	22,084		$	20,368
Valuation allowance:
Balance at beginning of year	$	(471	)	$	(900	)	$	(289	)
Impairment adjustment	388			429			(611		)
Balance at end of year	$	(83	)	$	(471	)	$	(900	)
Balance at end of year, net of valuation allowance	$	24,110		$	21,613		$	19,468

Loan servicing rights are accounted for using the amortization method (see Note 1 for more details).

The Bank is a servicer of residential mortgage loan portfolios, and it is compensated for loan administrative services performed for mortgage servicing rights of loans originated and sold by the Bank, and to a lesser extent, purchased mortgage servicing rights. The aggregate principal balances of residential mortgage loans serviced by the Bank for others approximated $3.2 billion, $2.8 billion and $2.5 billion at December 31, 2018, 2017 and 2016, respectively. The outstanding balance of loans serviced for others is not included in the consolidated statements of financial condition.

Valley recognized amortization expense on other intangible assets, including recoveries and net impairment charges on loan servicing rights (reflected in the table above), of $18.4 million, $10.0 million and $11.3 million for the years ended December 31, 2018, 2017 and 2016, respectively.

The following table presents the estimated amortization expense of other intangible assets over the next five-year period:



Year	Loan Servicing Rights		Core Deposits		Other
	(in thousands)
2019	$	5,574	$	10,961	$	235
2020	4,590		9,607		220
2021	3,614		8,252		206
2022	2,872		6,898		191
2023	2,286		5,544		131