Intangible Assets and Goodwill

12 Months Ended

Dec. 31, 2019

Goodwill And Intangible Assets Disclosure [Abstract]

(7) INTANGIBLE ASSETS AND GOODWILL

The following is a summary of intangible assets:

	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
	(Dollars in thousands)
As of December 31, 2019
Core deposit intangibles	$	35,856	$	(14,131	)	$	21,725
Customer relationship intangibles		3,391		(2,508	)		883
Total	$	39,247	$	(16,639	)	$	22,608
As of December 31, 2018
Core deposit intangibles	$	25,907	$	(11,113	)	$	14,794
Customer relationship intangibles		5,699		(4,115	)		1,584
Mortgage servicing intangibles		397		(305	)		92
Total	$	32,003	$	(15,533	)	$	16,470

The evaluation of intangible assets for the year ended December 31, 2019 resulted in an impairment of customer relationship intangibles of approximately $353,000 related to BancFirst Insurance Services, Inc.

Mortgage servicing intangibles were amortized based on prepayment assumptions and were adjusted to fair value periodically, if impaired. Fair value was estimated based on the present value of future cash flows over several interest rate scenarios, which were then discounted at risk-adjusted rates. The Company considered portfolio characteristics, contractually specified servicing fees, prepayment assumptions, delinquency rates, late charges, other ancillary revenue, costs to service and other economic factors. When available, fair value estimates and assumptions were compared to observable market data, recent market activity and actual portfolio experience.

Estimated amortization of intangible assets for the next five years, as of December 31, 2019, is as follows (dollars in thousands):

Estimated Amortization
2020	$	3,820
2021		3,090
2022		2,822
2023		2,806
2024		2,806

At December 31, 2019, the weighted-average remaining life of all intangible assets was approximately 7.6 years which consisted of customer relationship intangibles with a weighted-average life of 4.8 years and core deposit intangibles with a weighted-average life of 7.8 years.

The following is a summary of goodwill by business segment:

							Other		Executive,
	Metropolitan		Community		Pegasus		Financial		Operations
	Banks		Banks		Bank		Services		& Support		Consolidated
	(Dollars in thousands)
Year Ended December 31, 2019
Balance at beginning of period	$	13,767	$	59,894	$	—	$	5,464	$	624	$	79,749
Acquisitions		—		—		68,855		—		—		68,855
Balance at end of period	$	13,767	$	59,894	$	68,855	$	5,464	$	624	$	148,604

Year Ended December 31, 2018
Balance at beginning of period	$	8,078	$	39,876	$	—	$	5,464	$	624	$	54,042
Acquisitions		5,689		20,018		—		—		—		25,707
Balance at end of period	$	13,767	$	59,894	$	—	$	5,464	$	624	$	79,749

The Company acquired Pegasus Bank on August 15, 2019, which added $68.9 million in goodwill. The Company did not apply push down accounting and therefore the goodwill associated with this acquisition is included at the holding company level.