GOODWILL, CORE DEPOSIT PREMIUM AND OTHER INTANGIBLE ASSETS (Tables)

3 Months Ended

Mar. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Gross Carrying Amount and Accumulated Amortization of Other Intangible Assets

The gross carrying amount of these intangible assets and the associated accumulated amortization at March 31, 2019, and December 31, 2018, are presented in the table below, in thousands:

	March 31, 2019						December 31, 2018
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Amortizing intangible assets:
Core deposit intangibles	$	83,640	$	39,236	$	44,404	$	83,640	$	36,403	$	47,237
Customer relationship intangibles	1,177		944		233		1,177		935		242
Mortgage servicing rights	41,473		14,001		27,472		42,228		12,865		29,363
Commercial servicing rights	6,902		5,406		1,496		6,834		5,125		1,709
Total	$	133,192	$	59,587	$	73,605	$	133,879	$	55,328	$	78,551

Schedule of Estimated Future Amortization Expense of Amortizable Intangible Assets

The following table shows the estimated future amortization expense for amortizable intangible assets, excluding the mortgage servicing rights portfolio for Dubuque Bank and Trust Company, in thousands:

	Core Deposit Intangibles		Customer Relationship Intangibles		Mortgage Servicing Rights		Commercial Servicing Rights		Total
Nine months ending December 31, 2019	$	6,949	$	28	$	736	$	310	$	8,023
Year ending December 31,
2020	8,230		36		1,431		331		10,028
2021	7,036		35		1,226		293		8,590
2022	5,634		35		1,022		246		6,937
2023	4,933		34		818		159		5,944
2024	4,008		33		613		86		4,740
Thereafter	7,614		32		613		71		8,330
Total	$	44,404	$	233	$	6,459	$	1,496	$	52,592

Summary of Changes in Servicing Rights

The following table summarizes, in thousands, the changes in capitalized mortgage servicing rights for the three months ended March 31, 2019, and March 31, 2018:

	2019			2018
Balance at January 1,	$	29,363		$	23,248
Originations	198			1,162
Amortization	(1,500		)	(1,245		)
Valuation adjustment	(589		)	—
Balance at period end	$	27,472		$	23,165
Mortgage servicing rights, net to servicing portfolio	0.68		%	0.72		%

The following table summarizes, in thousands, the changes in capitalized commercial servicing rights for the three-months ended March 31, 2019, and March 31, 2018:

	2019			2018
Balance at January 1,	$	1,709		$	2,609
Originations	68			21
Amortization	(281		)	(322		)
Valuation allowance on commercial servicing rights	—			(2		)
Balance at period end	$	1,496		$	2,306
Fair value of commercial servicing rights	$	1,926		$	2,781
Commercial servicing rights, net to servicing portfolio	1.58		%	1.84		%

Schedule of Servicing Asset at Fair Value and Amortized Cost

The following table summarizes, in thousands, the book value, the fair value of each tranche of the mortgage servicing rights and any recorded valuation allowance at each respective subsidiary at March 31, 2019, and December 31, 2018:

March 31, 2019	Book Value 15-Year Tranche		Fair Value 15-Year Tranche		Impairment 15-Year Tranche		Book Value 30-Year Tranche		Fair Value 30-Year Tranche		Impairment 30-Year Tranche
Dubuque Bank and Trust Company	$	1,982	$	4,648	$	—	$	19,031	$	32,420	$	—
First Bank & Trust	1,644		1,519		125		5,462		4,940		522
Total	$	3,626	$	6,167	$	125	$	24,493	$	37,360	$	522
December 31, 2018
Dubuque Bank and Trust Company	$	2,195	$	4,636	$	—	$	20,025	$	36,901	$	—
First Bank & Trust	1,685		1,665		20		5,516		5,478		38
Total	$	3,880	$	6,301	$	20	$	25,541	$	42,379	$	38

The following table summarizes, in thousands, the book value, the fair value of each tranche of the commercial servicing rights and any recorded valuation allowance at each respective subsidiary at March 31, 2019, and December 31, 2018:

March 31, 2019	Book Value Less than 20 Years		Fair Value Less than 20 Years		Impairment Less than 20 Years		Book Value More than 20 Years		Fair Value More than 20 Years		Impairment More than 20 Years
Citywide Banks	$	—	$	—	$	—	$	—	$	—	$	—
Premier Valley Bank	37		65		—		168		178		—
Wisconsin Bank & Trust	212		387		—		1,079		1,296		—
Total	$	249	$	452	$	—	$	1,247	$	1,474	$	—
December 31, 2018
Citywide Banks	$	1	$	6	$	—	$	18	$	20	$	—
Premier Valley Bank	45		74		—		178		184		—
Wisconsin Bank & Trust	249		411		—		1,218		1,439		—
Total	$	295	$	491	$	—	$	1,414	$	1,643	$	—