Intangible Assets

9 Months Ended

Sep. 30, 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 assets are 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 $195 million core deposit intangible asset with a weighted-average amortization period of 7.2 years. The fair value of the core deposit intangible is subject to change as additional information becomes available.

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 September 30, 2019
Core deposit intangibles	$	229	(57)	172
Customer relationships		29	(5)	24
Non-compete agreements		13	(11)	2
Other		4	(1)	3
Total intangible assets	$	275	(74)	201
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 September 30, 2019, all of the Bancorp’s intangible assets were being amortized. Amortization expense recognized on intangible assets was $14 million and $2 million for the three months ended September 30, 2019 and 2018, respectively, and $31 million and $4 million for the nine months ended September 30, 2019 and 2018, respectively. The Bancorp's projection of amortization expense shown in the following table is based on existing balances as of September 30, 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	$	14
2020		48
2021		40
2022		32
2023		24