Intangible Assets

9 Months Ended

Sep. 30, 2020

Intangible Assets, Net (Excluding Goodwill) [Abstract]

Intangible assets consist of core deposit intangibles, customer relationships, operating leases, non-compete agreements, trade names and books of business. Intangible assets are amortized on either a straight-line or an accelerated basis over their estimated useful lives and, based on the type of intangible asset, the amortization expense may be recorded in either other noninterest income or other noninterest expense in the Condensed Consolidated Statements of Income.

On March 22, 2019, the Bancorp completed its acquisition of MB Financial, Inc. In connection with the acquisition, the Bancorp recorded a $195 million core deposit intangible asset with a weighted-average amortization period of 7.2 years. Additionally, the Bancorp recorded a $24 million operating lease intangible asset with a weighted-average amortization period of 1.7 years. The fair values of these intangibles were finalized as of March 31, 2020.

The details of the Bancorp’s intangible assets are shown in the following table:


($ in millions)	Gross Carrying Amount		Accumulated Amortization	Net Carrying Amount
As of September 30, 2020
Core deposit intangibles	$	229	(104)	125
Customer relationships	29		(7)	22
Operating leases	19		(13)	6
Non-compete agreements	3		(2)	1
Other	4		(1)	3
Total intangible assets	$	284	(127)	157
As of December 31, 2019
Core deposit intangibles	$	229	(70)	159
Customer relationships	29		(6)	23
Operating leases	23		(9)	14
Non-compete agreements	13		(11)	2
Other	4		(1)	3
Total intangible assets	$	298	(97)	201

As of September 30, 2020, all of the Bancorp’s intangible assets were being amortized. Amortization expense recognized on intangible assets was $13 million and $14 million for the three months ended September 30, 2020 and 2019, respectively, and $43 million and $31 million for the nine months ended September 30, 2020 and 2019, respectively. The Bancorp’s projections of amortization expense shown in the following table are based on existing asset balances as of September 30, 2020. Future amortization expense may vary from these projections.

Estimated amortization expense for the remainder of 2020 through 2024 is as follows:


($ in millions)	Total
Remainder of 2020	$	13
2021	43
2022	33
2023	24
2024	16