Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets [Text Block]

Goodwill and Other Intangible Assets

Goodwill is not amortized but is reviewed for potential impairment at the reporting unit level. Management analyzes its goodwill for impairment on an annual basis and between annual tests in certain circumstances such as upon material adverse changes in legal, business, regulatory and economic factors. An impairment loss is recorded to the extent that the carrying amount of goodwill exceeds its implied fair value. The Company performed its annual impairment assessment as of July 31, 2022 and concluded that there was no impairment. As of December 31, 2022, we determined there were no events or circumstances which would more likely than not reduce the fair value of our reporting unit below its carrying amount.

Our CDIs are evaluated for impairment if events and circumstances indicate possible impairment. The CDIs are amortized on an accelerated basis over an estimated life of 10 years each.

The following table sets forth activity for goodwill and other intangible assets for the periods indicated:

	Years Ended December 31,
	2022		2021		2020
	(in thousands)
Goodwill, beginning of period	$	823,172	$	765,842	$	765,842
Established through acquisition (1)	—		57,330		—
Total goodwill, end of period	823,172		823,172		765,842
Other intangible assets, net
CDI:
Gross CDI balance, beginning of period (2)	88,931		78,821		105,473
Accumulated amortization, beginning of period	(55,203)		(53,006)		(70,934)
CDI, net, beginning of period	33,728		25,815		34,539
Established through acquisition	—		15,900		—
CDI current period amortization	(8,698)		(7,987)		(8,724)
Total CDI, end of period	25,030		33,728		25,815
Intangible assets not subject to amortization	919		919		919
Other intangible assets, net at end of period	25,949		34,647		26,734
Total goodwill and intangible assets, end of period	$	849,121	$	857,819	$	792,576

__________

(1) See Note 2, Business Combinations, for additional information regarding the goodwill related to the acquisition of Bank of Commerce on October 1, 2021.

(2) For the year ended December 31, 2021, the gross CDI balance, beginning of period has been adjusted to remove fully amortized amounts. Prior period columns have not been adjusted.

The following table provides the estimated future amortization expense of CDI for the succeeding five years:

	Years Ending December 31,
	(in thousands)
2023	$	7,082
2024	5,673
2025	4,366
2026	3,225
2027	2,083