Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

The Company had goodwill of $901.3 million at September 30, 2023 and December 31, 2022. The Company did not record any adjustments to goodwill during the three and nine months ended September 30, 2023 and September 30, 2022.

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. Due to the market volatility experienced in the banking sector in 2023, the Company assessed goodwill for impairment at September 30, 2023, by performing a quantitative assessment of goodwill as of September 30, 2023, in accordance with ASC 350-20, Intangibles - Goodwill and Other - Goodwill. The quantitative assessment was performed with the assistance of an independent third party, and the results of this assessment indicated the value of goodwill assets were not impaired as of September 30, 2023.

Other intangible assets with definite lives were $46.3 million at September 30, 2023, consisting of $44.2 million in core deposit intangibles and $2.1 million in customer relationship intangibles. At December 31, 2022, other intangibles assets were $55.6 million, consisting of $53.2 million in core deposit intangibles and $2.4 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,		September 30,		September 30,		September 30,
(Dollars in thousands)	2023		2022		2023		2022
Gross amount of intangible assets:
Beginning balance	$	145,212	$	145,212	$	145,212	$	145,212
Additions due to acquisitions	—		—		—		—
Ending balance	145,212		145,212		145,212		145,212
Accumulated amortization:
Beginning balance	(95,850)		(82,712)		(89,624)		(75,641)
Amortization	(3,055)		(3,472)		(9,281)		(10,543)
Ending balance	(98,905)		(86,184)		(98,905)		(86,184)
Net intangible assets	$	46,307	$	59,028	$	46,307	$	59,028

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, 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. The Company believes core deposit relationships in the current interest rate environment continue to provide a significant benefit to the Company relative to other sources of alternative funding, and thus does not believe the value of core deposit intangible assets are impaired at September 30, 2023. In addition, the Company is unaware of any events and/or circumstances that would indicate the value of customer relationship intangible assets are impaired as of September 30, 2023.