GOODWILL AND OTHER INTANGIBLE ASSETS, NET

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS, NET

At December 31, 2017 and 2016, the Company had goodwill of $37.1 million and $39.2 million, respectively. The following table presents changes in the carrying amount of goodwill for the periods indicated:



	Year Ended December 31,
($ in thousands)	2017			2016		2015
Goodwill balance at beginning of the year	$	39,244		$	39,244	$	31,591
Goodwill adjustments for purchase accounting	—			—		7,653
Goodwill adjustments for discontinued operations	(2,100		)	—		—
Goodwill balance at end of year	$	37,144		$	39,244	$	39,244
Accumulated impairment losses at end of year	$	2,100		$	—	$	—

Goodwill was allocated between the Commercial Banking and Mortgage Banking segments using a relative fair value approach in connection with the Company's realignment of segment reporting at December 31, 2014. The carrying values of goodwill allocated to the reportable segments were $37.1 million and $2.1 million to the Commercial Banking segment and Mortgage Banking segment, respectively, at December 31, 2016. During the year ended December 31, 2017, the Company discontinued its mortgage banking operations and wrote off goodwill of $2.1 million, which was previously allocated to its Mortgage Banking segment, against the gain on disposal of discontinued operations. See Note 2 for additional information.

During the year ended December 31, 2015, the Company made goodwill adjustments of $7.7 million related to the finalization of accounting adjustments for the BPNA Branch Acquisition, which was completed on November 8, 2014.

The Company conducts its evaluation of goodwill impairment as of August 31 each year, and more frequently if events or circumstances indicate that there may be impairment. The Company completed its annual goodwill impairment test (Step 0) as of August 31, 2017 and determined that no goodwill impairment existed.

Core deposit intangibles are amortized over their useful lives ranging from four to ten years. As of December 31, 2017, the weighted-average remaining amortization period for core deposit intangibles was approximately 6.0 years. The following table presents a summary of other intangible assets as of the dates indicated:



($ in thousands)	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
December 31, 2017
Core deposit intangibles	$	30,904	$	21,551	$	9,353
December 31, 2016
Core deposit intangibles	$	30,904	$	17,656	$	13,248
Customer relationship intangible	670		391		279
Trade name intangibles	90		—		90

The Company recorded impairment on intangible assets of $336 thousand, $690 thousand, and $258 thousand for the years ended December 31, 2017, 2016, and 2015, respectively. During the year ended December 31, 2017, the Company also wrote off a customer relationship intangible of $246 thousand and a trade name intangible of $90 thousand related to RenovationReady. RenovationReady was acquired by the Company in 2014 and provided specialized loan services to financial institutions and mortgage bankers that originate agency eligible residential renovation and construction loan products. During the year ended December 31, 2016, the Company ceased to use the CS Financial trade name and wrote off the related trade name intangible of $690 thousand. CS Financial is a mortgage banking firm, which is the Bank's wholly owned subsidiary and which the Bank acquired in 2013. During the year ended December 31, 2015, the Company wrote off a portion of core deposit intangibles on noninterest-bearing demand deposits and money market accounts acquired through the BPNA Branch Acquisition of $258 thousand, as these deposits were transferred in connection with the sale of two branches to AUB. The impairment losses recognized related to intangible assets are recorded in Impairment on Intangible Assets on the Consolidated Statements of Operations.

Aggregate amortization of intangible assets was $3.9 million, $4.9 million and $5.8 million for the years ended December 31, 2017, 2016, and 2015, respectively. The following table presents estimated future amortization expenses as of December 31, 2017:



($ in thousands)	2018		2019		2020		2021		2022 and After		Total
Estimated future amortization expense	$	3,007	$	2,195	$	1,518	$	1,081	$	1,552	$	9,353

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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