Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Note 7 – Goodwill and Other Intangible Assets

The Company had goodwill of $901.3 million at December 31, 2022 and 2021. During 2021, the Company recorded adjustments associated with the acquisition of Opus resulting in an increase to goodwill in the amount of $2.7 million, within the one-year measurement period subsequent to the acquisition date of June 1, 2020. These adjustments largely related to the finalization of the short-year Opus tax returns. During the second quarter of 2021, the Company finalized its fair value analysis of the acquired assets and liabilities associated with the Opus acquisition.

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


(Dollars in thousands)	2022		2021
Balance, beginning of year	$	901,312	$	898,569

Purchase accounting adjustments	—		2,743

Balance, end of year	$	901,312	$	901,312
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 2022, and determined goodwill was not impaired.

Other intangible assets with definite lives were $55.6 million at December 31, 2022, consisting of $53.2 million in core deposit intangibles and $2.4 million in customer relationship intangibles. 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 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)	2022		2021		2020
Gross balance of intangible assets:
Balance, beginning of year	$	145,212	$	145,212	$	125,945
Additions due to acquisitions	—		—		19,267
Balance, end of year	145,212		145,212		145,212
Accumulated amortization:
Balance, beginning of year	(75,641)		(59,705)		(42,633)
Amortization	(13,983)		(15,936)		(17,072)
Balance, end of year	(89,624)		(75,641)		(59,705)
Net intangible assets, end of year	$	55,588	$	69,571	$	85,507

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 and customer relationship intangible assets for each of the next five years succeeding December 31, 2022, in order from the present, is $12.3 million, $11.1 million, $10.0 million, $8.9 million, and $7.2 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, 2022, 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.