Goodwill and Other Acquisition-Related Intangible Assets

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Acquisition-Related Intangible Assets

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


(In thousands)	January 1, 2023		Goodwill Acquired		Impairment Loss		Goodwill Adjustments		December 31, 2023
Community banking	$	545,671	$	—	$	—	$	—	$	545,671
Specialty finance	38,480		—		—		526		39,006
Wealth management	69,373		2,622		—		—		71,995
Total	$	653,524	$	2,622	$	—	$	526	$	656,672

The wealth management unit’s goodwill increased $2.6 million in 2023 as a result of the Rothschild & Co Asset Management U.S. acquisition. The specialty finance segment’s goodwill increased $526,000 in 2023 as a result of foreign currency translation adjustments related to prior 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, 2023, the Company utilized a qualitative approach for its annual goodwill impairment tests of the community banking, specialty finance and wealth management reporting units and determined that it was more likely than not that the fair value of all reporting units exceeded the respective carrying value of such reporting unit at that time.

At each reporting date between annual goodwill impairment tests, the Company considers potential indicators of impairment. The Company assessed whether events and circumstances as of each reporting date in 2023 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. As of December 31, 2023, the Company identified no indicators of goodwill impairment subsequent to its analysis as of October 1, 2023 within the community banking, specialty finance or wealth management reporting units and the Company determined 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 December 31, 2023 is as follows:


	December 31,
(In thousands)	2023		2022
Community banking segment:
Core deposit intangibles with finite lives:
Gross carrying amount	$	55,206	$	55,206
Accumulated amortization	(46,125)		(42,501)
Net carrying amount	$	9,081	$	12,705
Trademark with indefinite lives:
Carrying amount	5,800		5,800
Total net carrying amount	$	14,881	$	18,505
Specialty finance segment:
Customer list intangibles with finite lives:
Gross carrying amount	$	1,963	$	1,962
Accumulated amortization	(1,837)		(1,785)
Net carrying amount	$	126	$	177
Wealth management segment:
Customer list and other intangibles with finite lives:
Gross carrying amount	$	26,630	$	20,430
Accumulated amortization	(18,748)		(16,926)
Net carrying amount	$	7,882	$	3,504
Total acquisition-related intangible assets:
Gross carrying amount	$	89,599	$	83,398
Accumulated amortization	(66,710)		(61,212)
Total acquisition-related intangible assets, net	$	22,889	$	22,186


Estimated amortization for the year-ended:
2024	$	4,301
2025	3,482
2026	2,772
2027	2,157
2028	1,591

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. The increase in wealth management segment customer list and other intangibles relates to the acquisition in the second quarter of 2023, which is being amortized over a period of ten years on an accelerated 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 intangibles in 2023, 2022 and 2021 was $5.5 million, $6.1 million and $7.7 million, respectively.