Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible AssetsThe Company had goodwill of $901.3 million and $898.6 million at September 30, 2021 and December 31, 2020, respectively. The Company recorded adjustments to goodwill associated with the acquisition of Opus in the amount of $2.7 million during the first six months of 2021, within the one-year measurement period subsequent to the acquisition date of June 1, 2020. These adjustments largely relate to the finalization of the short-year Opus tax returns. During the nine months ended September 30, 2020, the additions to goodwill included $92.8 million associated with the acquisition of Opus and adjustments to goodwill in the amount of $2.7 million during the third quarter of 2020, within the one-year measurement period subsequent to the acquisition date. During the second quarter of 2021, the Company finalized its fair value analysis of the acquired assets and assumed liabilities associated with the Opus acquisition.

	September 30,		September 30,
(Dollars in thousands)	2021		2020
Balance, beginning of year	$	898,569	$	808,322
Goodwill acquired during the year	—		92,844
Purchase accounting adjustments	2,743		(2,732)
Balance, end of year	$	901,312	$	898,434
Accumulated impairment losses at end of year	$	—	$	—

The Company’s policy is to assess goodwill for impairment on an annual basis during the fourth quarter of each year, and more frequently if events or circumstances lead management to believe the value of goodwill may be impaired.

The Company had other intangible assets of $73.5 million at September 30, 2021, consisting of $70.7 million in core deposit intangibles and $2.8 million in customer relationship intangibles. The Company had other intangibles assets of $85.5 million at December 31, 2020, consisting of $82.5 million in core deposit intangibles and $3.0 million in customer relationship intangibles. The following table summarizes the change in the balance of core deposit intangibles and customer relationship intangibles, and the related accumulated amortization for the periods indicated below:

	Three Months Ended						Nine Months Ended
	September 30,		June 30,		September 30,		September 30,		September 30,
(Dollars in thousands)	2021		2021		2020		2021		2020
Gross amount of intangible assets:
Beginning balance	$	145,212	$	145,212	$	145,212	$	145,212	$	125,945
Additions due to acquisitions	—		—		—		—		19,267
Ending balance	145,212		145,212		145,212		145,212		145,212
Accumulated amortization:
Beginning balance	(67,849)		(63,848)		(50,662)		(59,705)		(42,633)
Amortization	(3,912)		(4,001)		(4,538)		(12,056)		(12,567)
Ending balance	(71,761)		(67,849)		(55,200)		(71,761)		(55,200)
Net intangible assets	$	73,451	$	77,363	$	90,012	$	73,451	$	90,012

The Company amortizes core deposit intangibles and customer relationship intangibles based on the projected useful lives of the related deposits in the case of core deposit intangibles, and over the projected useful lives of the related client relationships in the case of customer relationship intangibles. The amortization periods typically range from six to eleven years. The estimated aggregate amortization expense related to our core deposit intangible and customer relationship intangible assets for each of the next five years succeeding December 31, 2020, in order from the present, is $15.9 million, $14.0 million, $12.3 million, $11.1 million, and $10.0 million. The Company analyzes core deposit intangibles and customer relationship intangibles annually for impairment, or sooner if events and circumstances indicate possible impairment. Factors that may contribute to impairment include customer attrition and run-off. Management is unaware of any events and/or circumstances that would indicate a possible impairment to the core deposit intangibles or customer relationship intangibles as of September 30, 2021.