Intangible Assets, Goodwill and Other

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

Goodwill and Other Intangible Assets

As of December 31, 2023, there was $1.0 billion in goodwill, as compared to no goodwill as of December 31, 2022. Goodwill represents the excess of the total acquisition price paid over the fair value of the assets acquired, net of fair value of liabilities assumed. Additional information on the Merger and purchase price allocations is provided in Note 2 - Business Combinations. Goodwill is not amortized but is evaluated for potential impairment on an annual basis or whenever events or changes in circumstances indicate the carrying value may not be recoverable. The Company performed its annual impairment assessment as of October 31, 2023 and concluded that there was no impairment. As of December 31, 2023, it was 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.

During 2023, the Company recorded $710.2 million of core deposit intangibles associated with the Merger. Core deposit intangible asset values were determined based on the present value of the expected cost savings attributable to the core deposit funding relative to an alternative source of funding. The fair value was estimated based on a discounted cash flow methodology that gave consideration to expected customer attrition rates, net maintenance cost of the deposit base, alternative cost of funds, and the interest costs associated with customer deposits. The intangible assets are being amortized on an accelerated basis over a period of 10 years. No impairment losses separate from the scheduled amortization have been recognized in the periods presented.

The following table summarizes the changes in the Company's other intangible assets as of December 31, 2023 and 2022:

(in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
As of December 31, 2023	$	764,791	$	(161,112)	$	603,679
As of December 31, 2022	$	54,561	$	(49,816)	$	4,745

As of December 31, 2023, all of the Company's intangible assets were being amortized. Amortization expense recognized on intangible assets was $111.3 million, $4.1 million, and $4.5 million for the years ended December 31, 2023, 2022, and 2021, respectively.

The table below presents the forecasted amortization expense for intangible assets as of December 31, 2023:

(in thousands)
Year	Expected Amortization
2024	$	119,431
2025	105,458
2026	92,545
2027	79,632
2028	66,719
Thereafter	139,894
Total intangible assets	$	603,679