Intangible Assets

12 Months Ended

Dec. 31, 2019

Intangible Assets [Abstract]

Intangible Assets

12. INTANGIBLE ASSETS

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 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 $25 million operating lease intangible asset with a weighted-average amortization period of 1.7 years. The fair values of these intangibles are subject to change as additional information becomes available.

 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 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 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, 2019, all of the Bancorp’s intangible assets were being amortized. Amortization expense recognized on intangible assets was $54 million, $5 million and $2 million for the years ended December 31, 2019, 2018 and 2017, respectively. The Bancorp’s projections of amortization expense shown in thefollowing table are based on existing asset balances as of December 31, 2019. Future amortization expense may vary from these projections.

Estimated amortization expense for the years ending December 31, 2020 through 2024 is as follows:

($ in millions)	Total
2020	$	56
2021		43
2022		34
2023		24
2024		16