Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

In connection with its acquisition of Radius in the first quarter of 2021, the Company recognized Goodwill of $75.7 million, which is fully allocated to the LendingClub Bank operating segment. Goodwill is not amortized, but will be subject to annual impairment tests. See “Note 2. Business Acquisition.”

Intangible Assets

Intangible assets consist of customer relationships, which include the core deposit intangible acquired during the first quarter of 2021 as part of the acquisition of Radius. Intangible assets, net of accumulated amortization, are included in “Other assets” on the Company’s Condensed Consolidated Balance Sheets. The gross and net carrying values and accumulated amortization are as follows for the periods presented:


	September 30, 2021		December 31, 2020
Gross carrying value	$	54,500	$	39,500
Accumulated amortization	(31,979)		(28,073)
Net carrying value	$	22,521	$	11,427

The customer relationship intangible assets are amortized on an accelerated basis from ten to fourteen years. Amortization expense associated with intangible assets for the third quarter and first nine months of 2021 was $1.3 million and $3.9 million, respectively. Amortization expense associated with intangible assets for the third quarter and first nine months of 2020 was $0.8 million and $2.4 million, respectively. There was no impairment loss for the third quarters and first nine months of 2021 and 2020.

The expected future amortization expense for intangible assets as of September 30, 2021, is as follows:


2021	$	1,340
2022	4,847
2023	4,198
2024	3,549
2025	2,901
Thereafter	5,686
Total	$	22,521