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Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2018

Goodwill and Other Intangible Assets [Abstract]

Note 7. Goodwill and Other Intangible Assets

The following is a summary of the gross carrying amount and accumulated amortization of amortizable intangible assets as of December 31, 2018 and December 31, 2017 and the carrying amount of unamortizable intangible assets as of those same dates.

	December 31, 2018				December 31, 2017
($ in thousands)	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Amortizable intangible assets:
Customer lists	$	6,013		1,637		6,013		1,090
Core deposit intangibles		28,440		16,469		28,280		11,475
SBA servicing asset		5,472		1,053		2,194		207
Other		1,303		957		1,303		581
Total	$	41,228		20,116		37,790		13,353

Unamortizable intangible assets:
Goodwill	$	234,368				233,070

Activity related to transactions since January 1, 2017 includes the following:

(1)

In connection with the Carolina Bank acquisition on March 3, 2017, the Company recorded a net increase of $66,540,000 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 $88,677,000 in goodwill and $9,880,000 in a core deposit intangible.

In addition to the above acquisition related activity, the Company recorded $3,278,000 and $1,779,000 in servicing assets associated with the guaranteed portion of SBA loans originated and sold during 2018 and 2017, respectively.

During 2018 and 2017, the Company recorded $846,000 and $207,000, 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.

Amortization expense of all intangible assets totaled $6,763,000, $4,240,000 and $1,211,000 for the years ended December 31, 2018, 2017 and 2016, respectively.

Goodwill is evaluated for impairment on at least an annual basis – see Note 1(s). For each of the years presented, the Company’s evaluation indicated that there was no goodwill impairment.

The following table presents the estimated amortization expense related to amortizable intangible assets for each of the five calendar years ending December 31, 2023 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 amortizable intangible assets.

($ in thousands)	Estimated Amortization Expense
2019	$	5,649
2020		4,549
2021		3,549
2022		2,459
2023		1,398
Thereafter		3,508
Total	$	21,112