Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2018

The following table presents the changes in the carrying amount of goodwill for the years ended December 31, 2018 and 2017:



(Dollars in thousands)	2018		2017
Balance at January 1	$	150,601	$	150,601
Acquired in the HomeBancorp acquisition	57,616		—
Acquired in the Capital Commerce acquisition	10,680		—
Acquired in the Palmetto Heritage acquisition	17,450		—
Balance at December 31	$	236,347	$	150,601

Mortgage Servicing Rights Key Economic Assumptions Used to Value

Key economic assumptions used to value mortgage servicing rights as of December 31, 2018 and 2017, were as follows:



	2018			2017
Discount rate - conventional fixed loans	9.69		%	9.41		%
Discount rate - all loans excluding conventional fixed loans	10.69		%	10.41		%
Weighted average constant prepayment rate	9.26		%	10.93		%
Weighted average cost to service a loan	$	72.65		$	64.03

Schedule of Mortgage Servicing Rights at Amortized Cost

The activity of the servicing asset for the years ended December 31, 2018, 2017 and 2016 is presented in the following table:



(Dollars in thousands)	2018			2017			2016
Balance at January 1	$	21,945		$	20,415		$	19,351
Servicing rights originated	5,258			7,174			5,931
Amortization	(5,807		)	(5,648		)	(4,958		)
Valuation allowance reversal	—			4			91
Balance at December 31	$	21,396		$	21,945		$	20,415

Schedule of Valuation Allowance for Impairment of Recognized Servicing Assets [Table Text Block]

Schedule of Other Intangible Assets

The following information relates to other intangible assets, all customer-related, which are being amortized over their estimated useful lives:



(Dollars in thousands)	2018			2017
Balance at January 1	$	51,151		$	57,625
Acquired in the Harvest Community Bank acquisition	—			850
Acquired in the Guaranty acquisition	—			9,870
Acquired in the HomeBancorp acquisition	9,860			—
Acquired in the Capital Commerce acquisition	2,680			—
Acquired in the Palmetto Heritage acquisition	1,706			—
Amortization	(17,165		)	(17,194		)
Balance at December 31	$	48,232		$	51,151

The gross amount of other intangible assets and accumulated amortization as of December 31, 2018 and 2017, are:



(Dollars in thousands)	2018			2017
Gross balance	$	143,007		$	128,761
Accumulated amortization	(94,775		)	(77,610		)
Carrying value	$	48,232		$	51,151

Future Amortization Expense Schedule

Based on current estimated useful lives and carrying values, BancShares anticipates amortization expense for core deposit intangibles in subsequent periods will be:



(Dollars in thousands)
2019	$	14,964
2020	11,729
2021	8,706
2022	5,805
2023 and subsequent	7,028