Goodwill and Core Deposit Intangibles

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND CORE DEPOSIT INTANGIBLES

Goodwill

BancShares applied the acquisition method of accounting for the SVBB Acquisition and the CIT Merger. The fair value of the net assets acquired exceeded the purchase prices for both acquisitions. Consequently, there was a gain on acquisition (and no goodwill) as discussed further in Note 2 — Business Combinations. BancShares had goodwill of $346 million at March 31, 2023 and December 31, 2022 that relates to business combinations completed prior to the SVBB Acquisition and the CIT Merger. All of the goodwill relates to the General Banking reporting segment. There was no goodwill impairment during the three months ended March 31, 2023 or 2022.

Core Deposit Intangibles

Core deposit intangibles represent the estimated fair value of core deposits and other customer relationships acquired. Core deposit intangibles are being amortized over their estimated useful life. The following tables summarize the activity for core deposit intangibles during the quarter ending March 31, 2023.

Core Deposit Intangibles


dollars in millions	2023
Balance, net of accumulated amortization at January 1	$	140
Core deposit intangibles related to the SVBB Acquisition	230
Amortization for the period	(6)
Balance at March 31, net of accumulated amortization	$	364

Core Deposit Intangible Accumulated Amortization


dollars in millions	March 31, 2023		December 31, 2022
Gross balance	$	501	$	271
Accumulated amortization	(137)		(131)
Balance, net of accumulated amortization	$	364	$	140

The following table summarizes the expected amortization expense as of March 31, 2023 in subsequent periods for core deposit intangibles.

Core Deposit Intangible Expected Amortization


dollars in millions
Remainder 2023	$	52
2024	63
2025	54
2026	46
2027	39
2028	34
Thereafter	76
Balance, net of accumulated amortization	$	364