Goodwill and Other Intangibles

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

The following tables set forth the carrying amount of goodwill and other intangible assets, net of accumulated amortization by reporting unit at the dates indicated below:


	As of December 31, 2022
	Banking Business		Insurance Agency Business		Net Carrying Amount
	(In thousands)
Balances not subject to amortization
Goodwill	$	557,635	$	82,587	$	640,222
Balances subject to amortization
Insurance agency (1)	—		10,530		10,530
Core deposits	10,374		—		10,374
Total other intangible assets	10,374		10,530		20,904
Total goodwill and other intangible assets	$	568,009	$	93,117	$	661,126

(1)Insurance agency intangible assets include customer list, non-compete agreement and supplier relationship intangible assets.


	As of December 31, 2021
	Banking Business		Insurance Agency Business		Net Carrying Amount
	(In thousands)
Balances not subject to amortization
Goodwill	$	557,635	$	73,861	$	631,496
Balances subject to amortization
Insurance agency (1)	—		6,635		6,635
Core deposits	11,572		—		11,572
Total other intangible assets	11,572		6,635		18,207
Total goodwill and other intangible assets	$	569,207	$	80,496	$	649,703

(1)Insurance agency intangible assets include customer list, non-compete agreement and supplier relationship intangible assets.

The changes in the carrying value of goodwill for the periods indicated were as follows:


	For the Year Ended December 31, 2022
	Banking Business		Insurance Agency Business		Net Carrying Amount
	(In thousands)
Balance at beginning of year	$	557,635	$	73,861	$	631,496
Goodwill recorded during the year (1)	—		8,726		8,726
Goodwill disposed of during the year	—		—		—
Balance at end of year	$	557,635	$	82,587	$	640,222

(1)The goodwill recorded during the year relates to the acquisition of two insurance agencies. For additional information refer to Note 3, Mergers and Acquisitions.


	For the Year Ended December 31, 2021
	Banking Business		Insurance Agency Business		Net Carrying Amount
	(In thousands)
Balance at beginning of year	$	298,611	$	70,866	$	369,477
Goodwill recorded during the year (1)	259,024		2,995		262,019
Goodwill disposed of during the year	—		—		—
Balance at end of year	$	557,635	$	73,861	$	631,496

(1)The goodwill recorded during the year relates to the acquisition of Century and two insurance agencies. For additional information refer to Note 3, Mergers and Acquisitions.

The following table sets forth the carrying amount of the Company’s intangible assets, net of accumulated amortization, as of the dates indicated below:


	As of December 31,
	2022						2021
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(In thousands)
Insurance agency (1)	$	37,105	$	(26,575)	$	10,530	$	30,545	$	(23,910)	$	6,635
Core deposits	15,969		(5,595)		10,374		18,212		(6,640)		11,572
Total	$	53,074	$	(32,170)	$	20,904	$	48,757	$	(30,550)	$	18,207

(1)Insurance agency intangible assets include customer list, non-compete agreement and supplier relationship intangible assets.

The Company quantitatively assesses goodwill for impairment at the reporting unit level on an annual basis or sooner if an event occurs or circumstances change which might indicate that the fair value of a reporting unit is below its carrying amount. The Company has identified and assigned goodwill to two reporting units - the banking business and insurance agency business. The quantitative assessments for both the banking business and insurance agency business were most recently performed as of September 30, 2022. The assessment for the banking business included a market capitalization analysis, as well as a comparison of the banking business’s book value to the implied fair value using a pricing multiple of the Company’s tangible book value. The assessment for the insurance agency business included a price-to-earnings analysis, as well as an earnings before interest, taxes, depreciation, and amortization (“EBITDA”) multiplier valuation based upon recent and observed agency mergers and acquisitions. The Company considered the economic conditions for the period including the potential impact of the COVID-19 pandemic as it pertains to the goodwill above and determined that there was no indication of impairment related to goodwill during the year ended December 31, 2022. Additionally, the Company did not record any impairment charges during the years ended December 31, 2021 and 2020.

The amortization expense of the Company’s intangible assets was $3.9 million, $2.5 million, and $2.9 million during the years ended December 31, 2022, 2021, and 2020, respectively.

The total weighted-average original amortization period for intangible assets is 9.9 years. The Company has estimated the remaining useful life of its insurance agency intangible assets, comprised primarily of customer lists and non-

compete agreements, and its core deposit intangible assets to have a weighted-average life of 7.8 years and 8.9 years, respectively.

The estimated amortization expense for each of the five succeeding years and thereafter is as follows:


Year	(In thousands)
2023	$	3,831
2024	3,350
2025	2,889
2026	2,467
2027	2,102
Thereafter	6,265
Total amortization expense	$	20,904

Other intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. The Company considered the economic conditions for the period, including the potential impact of the COVID-19 pandemic, as it pertains to these intangible assets and determined that there was no indication of impairment related to other intangible assets during the year ended December 31, 2022. Additionally, the Company did not record any impairment charges during the years ended December 31, 2021 and 2020.