Goodwill and Other Acquisition-Related Intangible Assets

12 Months Ended

Dec. 31, 2024

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, 2024		Goodwill Acquired		Impairment Loss		Goodwill Adjustments		December 31, 2024
Community banking	$	545,671	$	142,083	$	—	$	—	$	687,754
Specialty finance	39,006		—		—		(1,813)		37,193
Wealth management	71,995		—		—		—		71,995
Total	$	656,672	$	142,083	$	—	$	(1,813)	$	796,942

The community banking unit’s goodwill increased $142.1 million in 2024 as a result of the Macatawa acquisition. The specialty finance segment’s goodwill decreased $1.8 million in 2024 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, 2024, the Company utilized a quantitative approach for its annual goodwill impairment tests of the community 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. The Company assessed whether events and circumstances as of each reporting date in 2024 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, 2024, the Company identified no indicators of goodwill impairment subsequent to its analysis as of October 1, 2024 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, 2024 is as follows:


	December 31,
(In thousands)	2024		2023
Community banking segment:
Core deposit intangibles with finite lives:
Gross carrying amount	$	158,106	$	55,206
Accumulated amortization	(56,784)		(46,125)
Net carrying amount	$	101,322	$	9,081
Trademark with indefinite lives:
Carrying amount	13,800		5,800
Total net carrying amount	$	115,122	$	14,881
Specialty finance segment:
Customer list intangibles with finite lives:
Gross carrying amount	$	1,959	$	1,963
Accumulated amortization	(1,881)		(1,837)
Net carrying amount	$	78	$	126
Wealth management segment:
Customer list and other intangibles with finite lives:
Gross carrying amount	$	26,630	$	26,630
Accumulated amortization	(20,140)		(18,748)
Net carrying amount	$	6,490	$	7,882
Total acquisition-related intangible assets:
Gross carrying amount	$	200,495	$	89,599
Accumulated amortization	(78,805)		(66,710)
Total acquisition-related intangible assets, net	$	121,690	$	22,889


Estimated amortization for the year-ended:
2025	$	21,391
2026	18,830
2027	16,342
2028	13,908
2029	11,536

The community banking unit's core deposit intangibles and trademarks with indefinite lives increased $102.9 million and $8.0 million, respectively, in the third quarter of 2024 as a result of the Macatawa acquisition.

The core deposit intangibles recognized in connection with the Company’s 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 or accelerated basis. Indefinite-lived intangible assets consist of certain trade and domain names recognized in connection with prior acquisitions. 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 2024, 2023 and 2022 was $12.1 million, $5.5 million and $6.1 million, respectively.