Goodwill

9 Months Ended

Sep. 30, 2019

Goodwill

Goodwill

11. Goodwill

Business combinations entered into by the Bancorp typically result in the recognition of goodwill. Acquisition activity includes acquisitions in the respective period in addition to purchase accounting adjustments related to previous acquisitions. On March 22, 2019 the Bancorp completed its acquisition of MB Financial, Inc. In connection with the acquisition, the Bancorp recorded $1.8 billion of goodwill. The estimated fair value of assets acquired, liabilities assumed and noncontrolling interest recognized are considered preliminary as of September 30, 2019 and are subject to change for up to one year after the acquisition date as additional information becomes available. The amount of goodwill recognized and the allocation to the Bancorp’s reporting units are also considered preliminary and subject to change for up to one year from the acquisition date.

The Bancorp completed its annual goodwill impairment test as of September 30, 2019 and the estimated fair values of the Commercial Banking, Branch Banking and Wealth and Asset Management reporting units exceeded their carrying values, including goodwill.

Changes in the net carrying amount of goodwill, by reporting unit, for the nine months ended September 30, 2019 and the year ended December 31, 2018 were as follows:
					Wealth	General
		Commercial	Branch	Consumer	and Asset	Corporate
($ in millions)		Banking	Banking	Lending	Management	and Other	Total
Goodwill	$	1,363	1,655	215	177	-	3,410
Accumulated impairment losses		(750)	-	(215)	-	-	(965)
Net carrying value as of December 31, 2017	$	613	1,655	-	177	-	2,445
Acquisition activity		17	-	-	16	-	33
Net carrying value as of December 31, 2018	$	630	1,655	-	193	-	2,478
Acquisition activity		1,352	399	-	64	-	1,815
Sale of business		-	-	-	(3)	-	(3)
Net carrying value as of September 30, 2019	$	1,982	2,054	-	254	-	4,290