Intangible Assets

3 Months Ended

Mar. 31, 2019

Intangible Assets

Intangible Assets

12. Intangible Assets

Intangible assets consist of core deposit intangibles, customer relationships, non-compete agreements, trade names and books of business. Intangible assetsare amortized on either a straight-line or an accelerated basis over their estimated useful lives.

On March 22, 2019, the Bancorp completed its acquisition of MB Financial, Inc. In connection with the acquisition, the Bancorp recorded a $183 million core deposit intangible asset with a weighted-average amortization period of 6.8 years. The fair value of the core deposit intangible is preliminary and subject to change as additional information becomes available. Due to the timing of the acquisition, the Bancorp is in the process of identifying and valuing other intangible assets acquired in the MB Financial, Inc. transaction.

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 March 31, 2019
Core deposit intangibles	$	216	(31)	185
Customer relationships		31	(3)	28
Non-compete agreements		13	(11)	2
Other		5	(2)	3
Total intangible assets	$	265	(47)	218
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 March 31, 2019, all of the Bancorp’s intangible assets were being amortized. Amortization expense recognized on intangible assets was $3 million and $1 million for the three months ended March 31, 2019and2018, respectively. The Bancorp’s projections of amortization expense shown in the following table is based on existing balances as of March 31, 2019. Future amortization expense may vary from these projections.

Estimated amortization expense for the remainder of 2019 through 2023 is as follows:
($ in millions)		Total
Remainder of 2019	$	42
2020		47
2021		39
2022		30
2023		22