Goodwill and Other Acquisition-Related Intangible Assets

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Acquisition-Related Intangible Assets

Goodwill and Other Acquisition-Related Intangible Assets

A summary of the Company’s goodwill assets by reporting unit is presented in the following table:

(In thousands)	December 31, 2021		Goodwill Acquired		Impairment Loss		Goodwill Adjustments		September 30, 2022
Community banking	$	545,671	$	—	$	—	$	—	$	545,671
Specialty finance	40,105		—		—		(2,070)		38,035
Wealth management	69,373		—		—		—		69,373
Total	$	655,149	$	—	$	—	$	(2,070)	$	653,079

The specialty finance unit’s goodwill decreased $2.1 million in the first nine months of 2022 as a result of foreign currency translation adjustments related to the Canadian acquisitions.

The Company assesses each reporting unit’s goodwill for impairment on at least an annual basis and considers potential indicators of impairment at each reporting date between annual goodwill impairment tests. At October 1, 2021, the Company utilized a quantitative approach for its annual goodwill impairment tests of the banking, specialty finance and wealth management reporting units and determined that no impairment existed at that time.

At each reporting date between annual goodwill impairment tests, the Company considers potential indicators of impairment. Given the current and prior economic uncertainty and volatility surrounding the effects of COVID-19, the Company assessed whether such events and circumstances resulted in it being more likely than not that the fair value of any reporting unit was less than its carrying value. Potential impairment indicators considered include the condition of the economy and banking industry; government intervention and regulatory updates; the impact of recent events to financial performance and cost factors of the reporting units; performance of the Company’s stock and other relevant events.

At the conclusion of this assessment of all reporting units, the Company determined that as of September 30, 2022, it was more likely than not that the fair value of all reporting units exceeded the respective carrying value of such reporting unit.

A summary of acquisition-related intangible assets as of the dates shown and the expected amortization of finite-lived acquisition-related intangible assets as of September 30, 2022 is as follows:

(In thousands)	September 30, 2022		December 31, 2021		September 30, 2021
Community banking segment:
Core deposit intangibles with finite lives:
Gross carrying amount	$	55,206	$	55,206	$	55,206
Accumulated amortization	(41,480)		(38,067)		(36,840)
Net carrying amount	$	13,726	$	17,139	$	18,366
Trademark with indefinite lives:
Carrying amount	5,800		5,800		5,800
Total net carrying amount	$	19,526	$	22,939	$	24,166
Specialty finance segment:
Customer list intangibles with finite lives:
Gross carrying amount	$	1,960	$	1,967	$	1,967
Accumulated amortization	(1,771)		(1,721)		(1,705)
Net carrying amount	$	189	$	246	$	262
Wealth management segment:
Customer list and other intangibles with finite lives:
Gross carrying amount	$	20,430	$	20,430	$	20,430
Accumulated amortization	(16,525)		(15,308)		(14,740)
Net carrying amount	$	3,905	$	5,122	$	5,690
Total acquisition-related intangible assets:
Gross carrying amount	$	83,396	$	83,403	$	83,403
Accumulated amortization	(59,776)		(55,096)		(53,285)
Total other acquisition-related intangible assets, net	$	23,620	$	28,307	$	30,118

Estimated amortization
Actual in nine months ended September 30, 2022	$	4,680
Estimated remaining in 2022	1,431
Estimated—2023	4,658
Estimated—2024	3,259
Estimated—2025	2,552
Estimated—2026	1,954

The core deposit intangibles recognized in connection with prior bank acquisitions are amortized over a ten-year period on an accelerated basis. The customer list intangibles recognized in connection with the purchase of life insurance premium finance assets in 2009 are being amortized over an 18-year period on an accelerated basis. The customer list and other intangibles recognized in connection with prior acquisitions within the wealth management segment are being amortized over a period of up to ten years on a straight-line basis. Indefinite-lived intangible assets consist of certain trade and domain names recognized in connection with the acquisition of certain assets of Veterans First Mortgage in 2018. As indefinite-lived intangible assets are not amortized, the Company assesses impairment on at least an annual basis.

Total amortization expense associated with finite-lived acquisition-related intangibles totaled approximately $4.7 million and $5.9 million for the nine months ended September 30, 2022 and 2021, respectively.