Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

The following is a summary of the gross carrying amount and accumulated amortization of amortizable intangible assets as of December 31, 2020 and December 31, 2019 and the carrying amount of unamortizable intangible assets as of those same dates.


	December 31, 2020			December 31, 2019
($ in thousands)	Gross Carrying Amount		Accumulated Amortization	Gross Carrying Amount	Accumulated Amortization
Amortizable intangible assets:
Customer lists	$	7,613	2,814	6,013	2,185
Core deposit intangibles	28,440		23,832	28,440	20,610
SBA servicing asset	9,976		4,188	7,776	2,393
Other	1,403		1,232	1,303	1,127
Total	$	47,432	32,066	43,532	26,315

Unamortizable intangible assets:
Goodwill	$	239,272		234,368

SBA servicing assets are recorded for the portions of SBA loans that the Company has sold but continue to service for a fee. Servicing assets are initially recorded at fair value and amortized over the expected lives of the related loans and are tested for impairment on a quarterly basis. SBA servicing asset amortization expense is recorded within noninterest income as an offset to SBA servicing fees within the line item "Other service charges, commissions, and fees." As derived from the table above, the Company had a SBA servicing asset at December 31, 2020 with a remaining book value of $5,788,000. The Company recorded $2,200,000 and $2,304,000 in servicing assets associated with the guaranteed portion of SBA loans sold during 2020 and 2019, respectively. During 2020, 2019, and 2018, the Company recorded $1,795,000, $1,340,000, and $846,000, respectively, in related amortization expense. At December 31, 2020 and 2019, the Company serviced for others SBA loans totaling $395.4 million and $316.7 million, respectively.

In connection with the September 1, 2020 acquisition of a business financing company, the Company recorded goodwill of $4.9 million and $1.6 million in other amortizable intangible assets, each of which is deductible for tax purposes over 15 years. See Note 2 for additional discussion of this acquisition.

Amortization expense of all other intangible assets, excluding the SBA servicing asset, totaled $3,956,000, $4,858,000 and $5,917,000 for the years ended December 31, 2020, 2019 and 2018, respectively.

Goodwill is evaluated for impairment on at least an annual basis, with the annual evaluation occurring on October 31 of each year – see Note 1 for additional discussion. The annual reviews in October 2018 and October 2019, which were primarily of a qualitative nature, indicated that none of the Company's goodwill was impaired. The onset of the COVID-19 pandemic in March 2020 resulted in economic turmoil and market volatility that resulted in a substantial decrease in the Company's stock price and market capitalization. Management believed such decreases were triggering indicators requiring indicating the need for interim analysis. Accordingly, during each quarter of 2020, the Company reviewed its goodwill for impairment. For the first and third quarters of 2020, the Company performed an interim step-one goodwill impairment quantitative analysis. For the second quarter of 2020

and the annual fourth quarter 2020 review, management reviewed its goodwill for impairment primarily qualitatively by reviewing the factors and assumptions used in the analysis for the preceding quarter. The conclusion of each 2020 review was that none of the Company's goodwill was impaired.

The following table presents the estimated amortization expense schedule related to acquisition-related amortizable intangible assets for each of the five calendar years ending December 31, 2025 and the estimated amount amortizable thereafter. These amounts will be recorded as "Intangibles amortization expense" within the noninterest expense section of the Consolidated Statements of Income. These estimates are subject to change in future periods to the extent management determines it is necessary to make adjustments to the carrying value or estimated useful lives of amortizable intangible assets.


($ in thousands)	Estimated Amortization Expense
2021	$	3,272
2022	2,367
2023	1,386
2024	741
2025	562
Thereafter	1,250
Total	$	9,578