XML 28 R17.htm IDEA: XBRL DOCUMENT
v3.20.2

Goodwill and Other Intangible Assets | 9 Months Ended
--- | ---
Sep. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The following is a summary of the gross carrying amount and accumulated amortization of amortizable intangible assets as of September 30, 2020 and December 31, 2019, and the carrying amount of unamortized intangible assets as of those same dates.
|  | September 30, 2020 |  | December 31, 2019
($ in thousands) |  | Gross Carrying Amount |  | Accumulated Amortization |  | Gross Carrying Amount |  | Accumulated Amortization
Amortizable intangible assets: |  |  |  |  |  |  |  |
Customer lists |  | $ | 6,013 |  |  | 2,575 |  |  | 6,013 |  |  | 2,185 |
Core deposit intangibles |  | 28,440 |  |  | 23,112 |  |  | 28,440 |  |  | 20,610 |
SBA servicing asset |  | 9,268 |  |  | 3,624 |  |  | 7,776 |  |  | 2,393 |
Other |  | 1,303 |  |  | 1,196 |  |  | 1,303 |  |  | 1,127 |
Total |  | $ | 45,024 |  |  | 30,507 |  |  | 43,532 |  |  | 26,315 |
Unamortizable intangible assets: |  |  |  |  |  |  |  |
Goodwill |  | $ | 240,972 |  |  |  |  | 234,368 |  |  |
SBA servicing assets are recorded for SBA loans, or portions thereof, that the Company has sold but continue to service for a fee. Servicing assets are initially recorded at fair value and amortized over the expected lives of the related loans and are tested for impairment on a quarterly basis. SBA servicing asset amortization expense is recorded within noninterest income as an offset to SBA servicing fees within the line item "Other service charges, commissions, and fees." As derived from the table above, the Company had a SBA servicing asset at September 30, 2020 with a remaining book value of $5,644,000. The Company recorded $1,492,000 and $2,057,000 in servicing assets associated with the guaranteed portion of SBA loans sold during the first nine months of 2020 and 2019, respectively. During the first nine months of 2020 and 2019, the Company recorded $1,231,000 and $975,000, respectively, in related amortization expense. In connection with the September 1, 2020 acquisition of a business financing company, the Company recorded a $6.6 million intangible asset, which has initially been recorded as goodwill. The Company is currently performing valuation studies of this intangible asset and may reclassify a portion of this amount from goodwill to other types of intangible assets at the next reporting date. See Note 16 for additional discussion of this acquisition. Amortization expense of all other intangible assets totaled $928,000 and $1,163,000 for the three months ended September 30, 2020 and 2019, respectively. Amortization expense of all other intangible assets totaled $2,961,000 and $3,737,000 for the nine months ended September 30, 2020 and 2019, respectively. During the period ended March 31, 2020, the economic turmoil and market volatility resulting from the COVID-19 crisis resulted in a substantial decrease in the Company's stock price and market capitalization. Management believed such decrease was a triggering indicator requiring an interim step-one goodwill impairment quantitative analysis. The results of the March 31, 2020 analysis determined that none of the Company's goodwill was impaired. As a result of the continued economic turmoil and market volatility during the period ended June 30, 2020, the Company qualitatively reviewed the factors and assumptions used in the March 31, 2020 analysis, including financial projections, discount rates, and market premiums, in light of the triggering event existing as of June 30, 2020. Based on that analysis, the Company concluded there was no impairment of its goodwill at June 30, 2020. With the economic turmoil and market volatility continuing in the third quarter of 2020, a triggering event was identified and management again performed an interim step-one goodwill impairment quantitative analysis as of September 30, 2020. This analysis again concluded that none of the Company's goodwill was impaired as of that date. Management will continue to evaluate the economic conditions at future reporting periods for applicable changes and take appropriate actions. The following table presents the estimated amortization expense schedule related to acquisition-related amortizable intangible assets. These amounts will be recorded as "Intangibles amortization expense" within the noninterest expense section of the Consolidated Statements of Income. 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. income within the line item "Other service charges, commissions and fees" of the Consolidated Statements of Income.
($ in thousands) |  | Estimated Amortization Expense
October 1 to December 31, 2020 |  | $ | 880 |
2021 |  | 2,927 |
2022 |  | 2,022 |
2023 |  | 1,041 |
2024 |  | 404 |
Thereafter |  | 1,599 |
Total |  | $ | 8,873 |

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration