Intangible Assets

12 Months Ended

Dec. 31, 2018

9. INTANGIBLE ASSETS

Intangible assets consist of core deposit intangibles, customer relationships, non-compete agreements, trade names and rent intangibles. Intangible assets are amortized on either a straight-line or an accelerated basis over their estimated useful lives. The increase in gross carrying amount of intangible assets from the year ended December 31, 2017 reflects acquisition activity during 2018.


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

			Gross Carrying	Accumulated	Net Carrying
($ in millions)			Amount	Amortization	Amount
As of December 31, 2018
	Core deposit intangibles	$	34	(30)	4
	Customer relationships		32	(3)	29
	Non-compete agreements		14	(11)	3
	Other		7	(3)	4
Total intangible assets		$	87	(47)	40
As of December 31, 2017
	Core deposit intangibles	$	34	(29)	5
	Customer relationships		16	-	16
	Non-compete agreements		13	(10)	3
	Other		6	(3)	3
Total intangible assets		$	69	(42)	27

As of December 31, 2018, all of the Bancorp’s intangible assets were being amortized. Amortization expense recognized on intangible assets was $5 million for the year ended December 31, 2018 and $2 million for both the years ended December 31, 2017 and 2016. The Bancorp’s projections of amortization expense shown in the following table are based on existing asset balances as of December 31, 2018. Future amortization expense may vary from these projections.


Estimated amortization expense for the years ending December 31, 2019 through 2023 is as follows:

($ in millions)		Total
2019	$	6
2020		4
2021		4
2022		3
2023		3