GOODWILL AND INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

10. GOODWILL AND INTANGIBLE ASSETS

In accordance with ASC 805, Business Combinations (ASC 805) and ASC 350, Intangibles - Goodwill and Other (ASC 350), all assets acquired and liabilities assumed in purchase acquisitions, including goodwill, indefinite-lived intangibles and other intangibles are recorded at fair value as of acquisition date.

During the nine months ended September 30, 2019, we did not identify any indicators of impairment as it relates to goodwill or intangibles.

The following table shows the allocation of goodwill to our reportable operating segments for purposes of goodwill impairment testing:


(Dollars in thousands)	WSFS Bank		Cash Connect		Wealth Management		Consolidated Company
December 31, 2018	$	145,808	$	—	$	20,199	$	166,007
Goodwill from business combinations	309,486		—		—		309,486
Remeasurement period adjustments	(2,535)		—		—		(2,535)
September 30, 2019	$	452,759	$	—	$	20,199	$	472,958

ASC 350 requires that an acquired intangible asset be separately recognized if the benefit of the intangible asset is obtained through contractual or other legal rights, or if the asset can be sold, transferred, licensed, rented or exchanged, regardless of the acquirer’s intent to do so.

The following table summarizes our intangible assets:


(Dollars in thousands)	Gross Intangible Assets		Accumulated Amortization		Net Intangible Assets		Amortization Period
September 30, 2019
Core deposits	$	95,711	$	(10,969)	$	84,742	10 years
Customer relationships	17,561		(7,015)		10,546		7-15 years
Non-compete agreements	221		(135)		86		5 years
Loan servicing rights⁽¹⁾	4,932		(1,414)		3,518		10-25 years
Total intangible assets	$	118,425	$	(19,533)	$	98,892
December 31, 2018
Core deposits	$	10,658	$	(5,285)	$	5,373	10 years
Customer relationships	17,561		(5,815)		11,746		7-15 years
Non-compete agreements	221		(101)		120		5 years
Loan servicing rights	2,652		(1,301)		1,351		10-30 years
Favorable lease asset⁽²⁾	1,932		(506)		1,426		10 months-18 years
Total intangible assets	$	33,024	$	(13,008)	$	20,016

⁽¹⁾Includes impairment losses of $0.2 million and $0.5 million for the three and nine months ended September 30, 2019, respectively.

⁽²⁾The favorable lease asset was fully amortized and written off during the nine months ended September 30, 2019 as a result of our adoption of ASU 2016-02 on January 1, 2019. See Note 2 for further information.

We recognized amortization expense on intangible assets of $2.8 million and $6.9 million for the three and nine months ended September 30, 2019, respectively, and $0.7 million and $2.1 million for the three and nine months ended September 30, 2018, respectively.

The following table presents the estimated future amortization expense on our intangible assets:


(Dollars in thousands)	Amortization of Intangibles
Remaining in 2019	$	2,964
2020	11,614
2021	11,167
2022	10,995
2023	10,875
Thereafter	51,277
Total	$	98,892