XML 36 R15.htm IDEA: XBRL DOCUMENT v3.22.4
Goodwill and Other Intangible Assets
 12 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets, Net
NOTE 8.  GOODWILL AND OTHER INTANGIBLE ASSETS, NET
In performing our annual goodwill assessment in the fourth quarter of 2022 of our two reportable segments – Commercial Banking and Civic, we conducted a qualitative assessment of our Commercial Banking reporting unit and a quantitative assessment of our Civic reporting unit. In performing the qualitative assessment, we considered relevant events and circumstances that may affect the fair value or carrying amount of the Commercial Banking reporting unit. The events and circumstances we considered included current macroeconomic conditions, current industry conditions and the financial performance of the reporting unit and we concluded that it was not more-likely-than-not that goodwill is impaired at the Commercial Banking reporting unit level. Furthermore, in connection with our plans to restructure the Civic reporting unit, we elected to bypass the qualitative assessment and proceeded directly to a quantitative test. We measured the fair value of the Civic reporting unit consistent with the fair value measurement principle that it is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As a result of the quantitative assessment, we recorded a goodwill impairment of $29.0 million at the Civic reporting unit in the fourth quarter of 2022 as the estimated fair value of the reporting unit was less than the carrying value. This was a non-cash charge to earnings and had no impact on our regulatory capital ratios, cash flows, or liquidity position.
We performed our annual goodwill impairment testing in the fourth quarter of 2021. We evaluated the carrying value of goodwill for our one reportable segment and determined that it was not impaired.

The following table presents the changes in the carrying amount of goodwill for the years indicated:
 Goodwill
 (In thousands)
Balance, December 31, 2020$1,078,670 
Addition from the Civic acquisition125,448 
Addition from the HOA Business acquisition201,618 
Balance, December 31, 20211,405,736 
Impairment - Civic(29,000)
Balance, December 31, 2022$1,376,736 
Our other intangible assets with definite lives are CDI and CRI. CDI and CRI are amortized over their respective estimated useful lives and reviewed for impairment at least quarterly. The amortization expense represents the estimated decline in the value of the underlying deposits or customer relationships acquired.
The following table presents the changes in CDI and CRI and the related accumulated amortization for the years indicated:
 Year Ended December 31,
202220212020
 (In thousands)
Gross Amount of CDI and CRI:   
Balance, beginning of year$133,850 $109,646 $117,573 
Addition from the Civic acquisition— 750 — 
Addition from the HOA Business acquisition— 33,300 — 
Fully amortized portion(42,300)(9,846)(7,927)
Balance, end of year91,550 133,850 109,646 
Accumulated Amortization:
Balance, beginning of year(88,893)(86,005)(79,179)
Amortization expense(13,576)(12,734)(14,753)
Fully amortized portion42,300 9,846 7,927 
Balance, end of year(60,169)(88,893)(86,005)
Net CDI and CRI, end of year$31,381 $44,957 $23,641 
The following table presents the estimated aggregate future amortization expense for our current intangible assets as of the date indicated:
December 31, 2022
(In thousands)
Year Ending December 31,
2023$9,085 
20246,404 
20254,087 
20263,481 
20272,876 
Thereafter5,448 
Net CDI and CRI$31,381