XML 42 R32.htm IDEA: XBRL DOCUMENT v3.19.1
Goodwill and Other Intangible Assets (Tables)
 3 Months Ended
Mar. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Summary of core deposit intangibles and other intangibles For CDI and other intangibles, changes in the gross carrying amount, accumulated amortization, and net book value were as follows:
 
Three Months Ended March 31, 2019
 
Year Ended December 31, 2018
 
($ in Thousands)
Core deposit intangibles
 
 
 
Gross carrying amount
$
58,100

 
$
58,100

Accumulated amortization
(6,778
)
 
(5,326
)
Net book value
$
51,322

 
$
52,774

Additions during the periods
$
—

 
$
58,100

Amortization during the year
$
1,453

 
$
5,326

Other intangibles
 
 
 
Gross carrying amount
$
44,887

 
$
44,931

Reductions due to sale
—

 
(43
)
Accumulated amortization
(22,599
)
 
(21,825
)
Net book value
$
22,288

 
$
23,062

Additions during the period
$
—

 
$
10,359

Amortization during the year
$
774

 
$
2,833
Summary of changes in balance of mortgage servicing rights asset and mortgage servicing rights valuation allowance A summary of changes in the balance of the mortgage servicing rights asset and the mortgage servicing rights valuation allowance is as follows:
 
Three Months Ended March 31, 2019
 
Year Ended December 31, 2018
 
($ in Thousands)
Mortgage servicing rights
Mortgage servicing rights at beginning of period
$
68,433

 
$
59,168

Additions from acquisition
—

 
8,136

Additions
1,247

 
10,722

Amortization
(2,693
)
 
(9,594
)
Mortgage servicing rights at end of period
$
66,987

 
$
68,433

Valuation allowance at beginning of period
(239
)
 
(784
)
(Additions) recoveries, net
(121
)
 
545

Valuation allowance at end of period
(360
)
 
(239
)
Mortgage servicing rights, net
$
66,626

 
$
68,193

Fair value of mortgage servicing rights
$
73,858

 
$
81,012

Portfolio of residential mortgage loans serviced for others (“servicing portfolio”)
$
8,543,467

 
$
8,600,983

Mortgage servicing rights, net to servicing portfolio
0.78
%
 
0.79
%
Mortgage servicing rights expense(a)
$
2,814

 
$
9,049


(a) Includes the amortization of mortgage servicing rights and additions / recoveries to the valuation allowance of mortgage servicing rights, and is a component of mortgage banking, net in the consolidated statements of income
Summary of estimated future amortization expense

The projections of amortization expense are based on existing asset balances, the current interest rate environment, and prepayment speeds as of March 31, 2019. The actual amortization expense the Corporation recognizes in any given period may be significantly different depending upon acquisition or sale activities, changes in interest rates, prepayment speeds, market conditions, regulatory requirements, and events or circumstances that indicate the carrying amount of an asset may not be recoverable. The following table shows the estimated future amortization expense for amortizing intangible assets:
Estimated Amortization Expense
Core Deposit Intangibles
 
Other Intangibles
 
Mortgage Servicing Rights
 
($ in Thousands)
Nine Months Ending December 31, 2019
$
4,358

 
$
2,050

 
$
7,983

2020
5,810

 
2,707

 
11,032

2021
5,810

 
2,682

 
9,334

2022
5,810

 
2,659

 
7,848

2023
5,810

 
2,640

 
6,579

2024
5,810

 
2,620

 
5,507

Beyond 2024
17,914

 
6,931

 
18,703

Total Estimated Amortization Expense
$
51,322

 
$
22,288

 
$
66,987