Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2019

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 September 30, 2019 and December 31, 2018, and the carrying amount of unamortized intangible assets as of those same dates.



	September 30, 2019			December 31, 2018
($ in thousands)	Gross Carrying Amount		Accumulated Amortization	Gross Carrying Amount	Accumulated Amortization
Amortizable intangible assets:
Customer lists	$	6,013	2,048	6,013	1,637
Core deposit intangibles	28,440		19,650	28,440	16,469
SBA servicing asset	7,528		2,028	5,472	1,053
Other	1,303		1,102	1,303	957
Total	$	43,284	24,828	41,228	20,116

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

The Company recorded $2,056,000 and $2,755,000 in servicing assets associated with the guaranteed portion of SBA loans originated and sold during the first nine months of 2019 and 2018, respectively. During the first nine months of 2019 and 2018, the Company recorded $975,000 and $555,000, respectively, in related amortization expense. Servicing assets are recorded for loans, or portions thereof, that the Company has sold but continue to service for a fee. Servicing assets are 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 to offset SBA servicing fees.

Amortization expense of all other intangible assets totaled $1,163,000 and $1,452,000 for the three months ended September 30, 2019 and 2018, respectively, and $3,737,000 and $4,518,000 for the nine months ended September 30, 2019 and 2018, respectively.

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. Additionally, as noted in the table above, the Company has a SBA servicing asset at September 30, 2019 with a remaining book value of $5,500,000. This servicing asset will be amortized over the lives of the related loans, with such amortization expense recorded as a reduction of servicing

income within the line item "Other service charges, commissions and fees" of the Consolidated Statements of Income.



($ in thousands)	Estimated Amortization Expense
October 1 to December 31, 2019	$	1,121
2020	3,841
2021	2,927
2022	2,022
2023	1,041
Thereafter	2,004
Total	$	12,956