Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2017

The following table presents the changes in the carrying amount of goodwill for the years ended December 31, 2017 and 2016:



(Dollars in thousands)	2017		2016
Balance at January 1	$	150,601	$	139,773
Acquired in the Cordia merger	—		10,828
Balance at December 31	$	150,601	$	150,601

Mortgage Servicing Rights Key Economic Assumptions Used to Value

Key economic assumptions used to value mortgage servicing rights as of December 31, 2017 and 2016 were as follows:



	2017			2016
Discount rate - conventional fixed loans	9.41		%	9.45		%
Discount rate - all loans excluding conventional fixed loans	10.41		%	10.45		%
Weighted average constant prepayment rate	10.93		%	10.42		%
Weighted average cost to service a loan	$	64.03		$	62.75

Schedule of Mortgage Servicing Rights at Amortized Cost

The activity of the servicing asset for the years ended December 31, 2017, 2016 and 2015 is presented in the following table:



(Dollars in thousands)	2017			2016			2015
Balance at January 1	$	20,415		$	19,351		$	16,688
Servicing rights originated	7,174			5,931			5,910
Amortization	(5,648		)	(4,958		)	(4,002		)
Valuation allowance reversal	4			91			755
Balance at December 31	$	21,945		$	20,415		$	19,351

Schedule of Valuation Allowance for Impairment of Recognized Servicing Assets [Table Text Block]

The following table presents the activity in the servicing asset valuation allowance for the years ended December 31, 2017, 2016 and 2015:



(Dollars in thousands)	2017			2016			2015
Balance at January 1	$	4		$	95		$	850
Valuation allowance reversal	(4		)	(91		)	(755		)
Balance at December 31	$	—		$	4		$	95

Schedule of Other Intangible Assets

The following information relates to other intangible assets, all customer-related, which are being amortized over their estimated useful lives:



(Dollars in thousands)	2017			2016
Balance at January 1	$	57,625		$	71,635
Acquired in the NMSB acquisition	—			240
Acquired in the FCSB acquisition	—			390
Acquired in the Cordia acquisition	—			2,210
Acquired in the HCB acquisition	850			—
Acquired in the Guaranty acquisition	9,870			—
Amortization	(17,194		)	(16,850		)
Balance at December 31	$	51,151		$	57,625

The gross amount of other intangible assets and accumulated amortization as of December 31, 2017 and 2016, are:



(Dollars in thousands)	2017			2016
Gross balance	$	128,761		$	118,041
Accumulated amortization	(77,610		)	(60,416		)
Carrying value	$	51,151		$	57,625

Future Amortization Expense Schedule

Based on current estimated useful lives and carrying values, BancShares anticipates amortization expense for intangible assets in subsequent periods will be:



(Dollars in thousands)
2018	$	15,394
2019	12,275
2020	9,431
2021	6,799
2022	4,288