Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

The following table shows the changes in the carrying amount of goodwill:


	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in thousands)	2020		2019		2020		2019
Balance at beginning of period	$	1,036,994	$	1,036,258	$	1,036,994	$	1,036,258
Acquisitions and adjustments	—		—		—		—
Balance at end of period	$	1,036,994	$	1,036,258	$	1,036,994	$	1,036,258

Old National performed the required annual goodwill impairment test as of August 31, 2019 and there was no impairment. No events or circumstances since the August 31, 2019 annual impairment test were noted that would indicate it was more likely than not a goodwill impairment exists. However, management did conclude that the current decline in macroeconomic conditions is a triggering event, but other mitigating factors did not warrant an interim quantitative impairment test. We continue to evaluate our qualitative assessment assumptions, which are

subject to risks and uncertainties, including: (1) forecasted revenues, expenses, and cash flows; (2) current discount rates; (3) our market capitalization; (4) observable market transactions and multiples; (5) changes to the regulatory environment; and (6) the nature and amount of government support that has been and is expected to be provided in the future. Refer to Note 20, Commitments and Contingencies, for additional information on COVID-19 and its potential impact to Old National.

The gross carrying amount and accumulated amortization of other intangible assets were as follows:


(dollars in thousands)	Gross Carrying Amount		Accumulated Amortization and Impairment		Net Carrying Amount
June 30, 2020
Core deposit	$	116,185	$	(66,935)	$	49,250
Customer trust relationships	16,547		(13,080)		3,467
Total intangible assets	$	132,732	$	(80,015)	$	52,717

December 31, 2019
Core deposit	$	119,051	$	(63,020)	$	56,031
Customer trust relationships	16,547		(12,473)		4,074
Total intangible assets	$	135,598	$	(75,493)	$	60,105

Other intangible assets consist of core deposit intangibles and customer relationship intangibles and are being amortized primarily on an accelerated basis over their estimated useful lives, generally over a period of 5 to 15 years.

Old National reviews other intangible assets for possible impairment whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. No impairment charges were recorded during the six months ended June 30, 2020 or 2019. Total amortization expense associated with intangible assets was $3.6 million for the three months ended June 30, 2020 and $7.4 million for the six months ended June 30, 2020, compared to $4.3 million for the three months ended June 30, 2019 and $8.8 million for the six months ended June 30, 2019.

Estimated amortization expense for future years is as follows:


(dollars in thousands)
2020 remaining	$	6,703
2021	11,336
2022	9,014
2023	7,053
2024	5,645
Thereafter	12,966
Total	$	52,717