Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

At December 31, 2021, the Company had goodwill of $901.3 million. In June 2020, the Company acquired Opus, which resulted in the recognition of approximately $93.0 million in goodwill assets including post-acquisition measurement period purchase accounting adjustments totaling $146,000. These adjustments largely relate to the finalization of the short-year Opus tax returns within one year after the closing date of the acquisition, and resulted from additional information becoming available or finalized during that period about facts or circumstances that existed as of the acquisition date. During the year ended December 31, 2021 the Company recorded adjustments associated with the acquisition of Opus resulting in an increase to goodwill in the amount of $2.7 million. Adjustments to goodwill associated with the acquisition of Opus resulted in a decrease of $2.6 million to goodwill during the year ended December 31, 2020. The Company’s analysis of the fair value of assets acquired and liabilities assumed in the Opus acquisition was finalized during the second quarter of 2021.

The following table presents changes in the carrying value of goodwill for the years ended December 31:


(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		(2,597)

Balance, end of year	$	901,312	$	898,569
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 performed a qualitative assessment of goodwill in accordance with ASC 350-20, Intangibles - Goodwill and Other - Goodwill during the fourth quarter of 2021, and determined goodwill was not impaired.

During the fourth quarter of 2020, and in accordance with ASC 350-20, the Company made an unconditional election to forego a qualitative assessment of goodwill and proceed directly to the quantitative assessment of goodwill. The Company’s quantitative assessment of goodwill in the fourth quarter of 2020 consisted of a market approach as well as a discounted cash flow approach, both of which were given equal weighting in the analysis. The results of that analysis indicated the estimated fair value of the Company exceeded its carrying value and that the value of goodwill assets could be supported and there was no goodwill impairment as of December 31, 2020. The Company made the unconditional election to proceed directly to a quantitative assessment of goodwill in 2020 largely due to the volatility experienced in the Company’s stock price and weakened economic conditions stemming from the onset of the COVID-19 pandemic.

At December 31, 2021, the Company had other intangible assets of $69.6 million, consisting of $66.9 million in core deposit intangibles and $2.7 million in customer relationship intangibles. The Company had no additions to other intangible assets during 2021. At December 31, 2020, the Company had other intangible assets of $85.5 million, consisting of $82.5 million in core deposit intangibles and $3.0 million in customer relationship intangibles. The Company had $19.3 million of additions to other intangible assets during 2020, consisting of $16.1 million of core deposit intangible assets and $3.2 million of customer relationship intangibles, both the result of the Opus acquisition. The following table summarizes the changes in the balances of core deposit and customer relationship intangible assets, and the related accumulated amortization for the years ended December 31:


(Dollars in thousands)	2021		2020		2019
Gross balance of intangible assets:
Balance, beginning of year	$	145,212	$	125,945	$	125,945
Additions due to acquisitions	—		19,267		—
Balance, end of year	145,212		145,212		125,945
Accumulated amortization:
Balance, beginning of year	(59,705)		(42,633)		(25,389)
Amortization	(15,936)		(17,072)		(17,244)
Balance, end of year	(75,641)		(59,705)		(42,633)
Net intangible assets, end of year	$	69,571	$	85,507	$	83,312

The Company amortizes the core deposit 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, typically ranging from six to eleven years. The estimated aggregate amortization expense related to our core deposit and customer relationship intangible assets for each of the next five years succeeding December 31, 2021, in order from the present, is $14.0 million, $12.3 million, $11.1 million, $10.0 million, and $8.9 million. The Company’s core deposit and customer relationship intangibles are evaluated annually for impairment or more frequently if events and circumstances lead management to believe their value may not be recoverable. Factors that may ultimately attribute to impairment include customer attrition and run-off. As of December 31, 2021, the Company is unaware of any events and/or circumstances that would indicate a possible impairment in the values of core deposit intangible assets and customer relationship intangible assets.