Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2018

Goodwill And Other Intangible Assets [Abstract]

Goodwill and Other Intangible Assets

Note 10 – Goodwill and Other Intangible Assets

The following is a summary of the gross carrying amount and accumulated amortization of amortizable intangible assets as of June 30, 2018, December 31, 2017, and June 30, 2017 and the carrying amount of unamortized intangible assets as of those same dates.

	June 30, 2018				December 31, 2017				June 30, 2017
($ in thousands)	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Amortizable intangible assets:
Customer lists	$	6,013		1,322		6,013		1,090		2,369		866
Core deposit intangibles		28,440		14,078		28,280		11,475		18,520		9,404
SBA servicing asset		4,166		558		2,194		207		928		66
Other		1,303		812		1,303		581		1,032		381
Total	$	39,922		16,770		37,790		13,353		22,849		10,717
Unamortizable intangible
assets:
Goodwill	$	232,458				233,070				139,124

Activity related to transactions during the periods includes the following:

(1) In connection with the Carolina Bank acquisition on March 3, 2017, the Company recorded a net increase of $65,072,000 in goodwill and $8,790,000 in a core deposit intangible.

(2) In connection with the September 1, 2017 acquisition of Bear Insurance Service, the Company recorded $5,330,000 in goodwill, $3,644,000 in a customer list intangible, and $271,000 in other amortizable intangible assets.

(3) In connection with the Asheville Savings Bank acquisition on October 1, 2017, the Company recorded a net increase of $88,235,000 in goodwill and $9,880,000 in a core deposit intangible.

In addition to the above acquisition related activity, the Company recorded $1,972,000 and $513,000 in servicing assets associated with the guaranteed portion of SBA loans originated and sold during the first six months of 2018 and 2017, respectively. During the first six months of 2018 and 2017, the Company recorded $351,000 and $66,000, respectively, in related amortization expense. Servicing assets are recorded at fair value and amortized over the expected life of the related loans.

Amortization expense of all intangible assets totaled $1,745,000 and $1,031,000 for the three months ended June 30, 2018 and 2017, respectively, and $3,417,000 and $1,607,000 for the six months ended June 30, 2018 and 2017, respectively.

The following table presents the estimated amortization expense related to amortizable intangible assets for the last two quarters of calendar year 2018 and for each of the four calendar years ending December 31, 2022 and the estimated amount amortizable thereafter. 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.

($ in thousands)	Estimated Amortization Expense
July 1 to December 31, 2018	$	3,164
2019		5,440
2020		4,370
2021		3,288
2022		2,312
Thereafter		4,578
Total	$	23,152