Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

Goodwill allocated to each reporting unit at March 31, 2020 and December 31, 2019 is provided in the following table:

(in thousands)	March 31, 2020		December 31, 2019
IBERIABANK	$	1,203,810	$	1,203,810
Mortgage	23,178		23,178
LTC	8,545		8,545
Total	$	1,235,533	$	1,235,533

The Company performed the required annual goodwill impairment test as of October 1, 2019. The Company’s annual impairment test did not indicate impairment in any of the Company’s reporting units as of the testing date.

During the first quarter of 2020 and through the date of the filing of this Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, management evaluated the events and changes in certain circumstances that could indicate that goodwill might be impaired. In light of the COVID-19 pandemic and its impact on macroeconomic conditions, the unprecedented economic uncertainty, and the significant declines in the Company's stock price and overall prices in the equity markets, management concluded that an interim quantitative test was necessary for all reporting units. The Company factored in multiple economic scenarios, in an effort to take into account the unprecedented economic uncertainty, and determined that the estimated fair value of each reporting unit exceeded its carrying value. Therefore, the goodwill of each reporting unit was considered not to be impaired as of the testing date. The goodwill impairment evaluation requires management to utilize significant judgments and assumptions which are based on the best information available at the time. Results of future tests, if required, could vary in subsequent reporting periods if conditions differ substantially from the assumptions utilized in completing the evaluations. The conclusion that no impairment exists may change if the pandemic continues for an extended period of time or a recovery in economic activity is delayed.

Mortgage Servicing Rights

Mortgage servicing rights are recorded at the lower of cost or market value in other intangible assets on the Company's consolidated balance sheets and amortized over the remaining servicing life of the loans, with consideration given to prepayment assumptions. Mortgage servicing rights had the following carrying values as of the periods indicated:

	March 31, 2020										December 31, 2019
	Gross Carrying Amount		Valuation Allowance			Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Valuation Allowance			Accumulated Amortization			Net Carrying Amount
(in thousands)
Mortgage servicing rights	$	24,870	$	(2,657	)	$	(7,451	)	$	14,762	$	22,476	$	(250	)	$	(6,621	)	$	15,605

Intangible assets subject to amortization

Definite-lived intangible assets included in other intangible assets on the Company’s consolidated balance sheets had the following carrying values as of the periods indicated:

	March 31, 2020							December 31, 2019
(in thousands)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Core deposit intangible assets	$	121,277	$	(70,758	)	$	50,519	$	136,183	$	(81,493	)	$	54,690
Customer relationship intangible asset	1,348		(1,341		)	7		1,385		(1,371		)	14
Non-compete agreement	206		(118		)	88		206		(110		)	96
Total	$	122,831	$	(72,217	)	$	50,614	$	137,774	$	(82,974	)	$	54,800