Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2021

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 March 31, 2021 and December 31, 2020, and the carrying amount of unamortized intangible assets as of those same dates.


	March 31, 2021			December 31, 2020
($ in thousands)	Gross Carrying Amount		Accumulated Amortization	Gross Carrying Amount	Accumulated Amortization
Amortizable intangible assets:
Customer lists	$	7,613	3,023	7,613	2,814
Core deposit intangibles	28,440		24,500	28,440	23,832
SBA servicing asset	10,583		4,658	9,976	4,188
Other	1,403		1,252	1,403	1,232
Total	$	48,039	33,433	47,432	32,066
Unamortizable intangible assets:
Goodwill	$	239,272		239,272

SBA servicing assets are recorded for the portions of SBA loans that the Company has sold but continues 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 March 31, 2021 with a remaining book value of $5,925,000. The Company recorded $607,000 and $217,000 in servicing assets associated with the guaranteed portion of SBA loans sold during the first three months of 2021 and 2020, respectively. During the first three months of 2021 and 2020, the Company recorded $470,000 and $918,000, respectively, in related amortization expense. Included in the amortization expense for the first three months of 2020 was an impairment charge of approximately $500,000 due to a decrease in the fair value of the asset resulting from deterioration in market conditions at March 31, 2020. At March 31, 2021 and December 31, 2020, the Company serviced for others SBA loans totaling $412.5 million and $395.4 million, respectively.

Amortization expense of all other intangible assets, excluding the SBA servicing asset, totaled $897,000 and $1,055,000 for the three months ended March 31, 2021 and 2020, respectively.

Goodwill is evaluated for impairment on at least an annual basis, with the annual evaluation occurring on October 31 of each year. During the period ended March 31, 2020, the economic turmoil and market volatility resulting from the COVID-19 crisis resulted in a substantial decrease in the Company's stock price and market capitalization. Management believed such decrease was a triggering indicator requiring an interim goodwill impairment quantitative analysis. In this analysis, the Company determined that none of its goodwill was impaired as of March 31, 2020. Due to improving economic conditions and increases in the Company's stock price and market capitalization at year end 2020 and the first quarter of 2021, no triggering events were identified and therefore, the Company did not perform an interim impairment evaluation at December 31, 2020 or March 31, 2021.

The following table presents the estimated amortization expense schedule related to acquisition-related amortizable intangible assets. 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 amortized intangible assets. income within the line item "Other service charges, commissions and fees" of the Consolidated Statements of Income.


($ in thousands)	Estimated Amortization Expense
April 1, 2021 to December 31, 2021	$	2,375
2022	2,367
2023	1,386
2024	741
2025	562
Thereafter	1,250
Total	$	8,681