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Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2018

Goodwill And Other Intangible Assets [Abstract]

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 March 31, 2018, December 31, 2017, and March 31, 2017 and the carrying amount of unamortized intangible assets as of those same dates.

	March 31, 2018				December 31, 2017				March 31, 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		1,185		6,013		1,090		2,369		806
Core deposit intangibles		28,440		12,803		28,280		11,475		18,520		8,580
SBA servicing asset		3,348		319		2,194		207		579		31
Other		1,303		718		1,303		581		1,032		303
Total	$	39,104		15,025		37,790		13,353		22,500		9,720

Unamortizable intangible
assets:
Goodwill	$	231,681				233,070				142,872

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 $87,458,000 in goodwill and $9,880,000 in a core deposit intangible.

In addition to the above acquisition related activity, the Company recorded $1,154,000 and $195,000 in servicing assets associated with the guaranteed portion of SBA loans originated and sold during the first quarters of 2018 and 2017, respectively. During the first quarters of 2018 and 2017, the Company recorded $112,000 and $31,000, 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 $1,672,000 and $576,000 for the three months ended March 31, 2018 and 2017, respectively.

The following table presents the estimated amortization expense related to amortizable intangible assets, excluding SBA servicing assets, for the last three 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
April 1 to December 31, 2018	$	4,357
2019		4,858
2020		3,841
2021		2,927
2022		2,022
Thereafter		3,045
Total	$	21,050