Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill is tested annually, or more often than annually, if circumstances warrant, for impairment. If the implied fair value of goodwill is lower than its carrying amount, goodwill impairment is indicated, and goodwill is written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the financial statements. Goodwill totaled $1.1 billion at September 30, 2021 and December 31, 2020.

Goodwill impairment was neither indicated nor recorded during the nine months ended September 30, 2021 or the year ended December 31, 2020. During the first quarter of 2020, the Company’s share price began to decline as the markets in the United States responded to the global COVID-19 pandemic. As a result of that economic decline, the effect on share price and other factors, the Company performed an interim goodwill impairment assessment during each quarter of 2020 and concluded no impairment existed during each period. While the goodwill impairment analyses indicated no impairment during 2020, the Company’s assessment depended on several assumptions which were dependent on market and economic conditions, and future changes in those conditions could impact the Company’s assessment in the future. The Company will complete an interim goodwill impairment analysis if the stock price falls below the book value per share for a full quarter. Due to the improved market and economic conditions, and the related effects on the Company’s share price, the Company did not perform an interim goodwill impairment assessment during the first or third quarter of 2021. During the second quarter of 2021, the Company performed an annual goodwill impairment analysis and concluded no impairment existed.

Core deposit premiums represent the value of the relationships that acquired banks had with their deposit customers and are amortized over periods ranging from 10 years to 15 years and are periodically evaluated, at least annually, as to the recoverability of their carrying value. Other intangible assets represent the value of other acquired relationships, including relationships with trust and wealth management customers, and are being amortized over various periods ranging from 10 years to 15 years.

Changes in the carrying amount and accumulated amortization of the Company’s core deposit premiums and other intangible assets at September 30, 2021 and December 31, 2020 were as follows:


	September 30,		December 31,
(In thousands)	2021		2020
Core deposit premiums:
Balance, beginning of year	$	97,363	$	111,808
Disposition of intangible asset(1)	(674)		(2,324)
Amortization	(8,978)		(12,121)
Balance, end of period	87,711		97,363
Books of business and other intangibles:
Balance, beginning of year	13,747		15,532
Disposition of intangible asset	—		(413)
Amortization	(1,030)		(1,372)
Balance, end of period	12,717		13,747
Total other intangible assets, net	$	100,428	$	111,110

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(1) Adjustments recorded for the premiums on certain deposit liabilities associated with the sale of banking operations.

The carrying basis and accumulated amortization of the Company’s other intangible assets at September 30, 2021 and December 31, 2020 were as follows:


	September 30,		December 31,
(In thousands)	2021		2020
Core deposit premiums:
Gross carrying amount	$	144,202	$	146,355
Accumulated amortization	(56,491)		(48,992)
Core deposit premiums, net	87,711		97,363
Books of business and other intangibles:
Gross carrying amount	19,937		19,937
Accumulated amortization	(7,220)		(6,190)
Books of business and other intangibles, net	12,717		13,747
Total other intangible assets, net	$	100,428	$	111,110

The Company’s estimated remaining amortization expense on other intangible assets as of September 30, 2021 is as follows:


(In thousands)	Year	Amortization Expense
	Remainder of 2021	$	3,332
	2022	13,275
	2023	12,992
	2024	12,090
	2025	9,505
	Thereafter	49,234
	Total	$	100,428