Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Goodwill

The Company’s annual goodwill impairment testing was performed as of December 31 of each year, or more frequently as events occur or circumstances change that would more-likely-than-not reduce the fair value of a reporting units below its carrying value. Additional information pertaining to our accounting policy for goodwill is summarized in Note 1— Summary of Significant Accounting Policies - Goodwill and Other Intangible Assets. Due to the uncertain market conditions resulting from the COVID-19 pandemic, the Company had performed an interim goodwill impairment test as of March 31, 2020 and concluded that there was no impairment. We completed our annual goodwill impairment testing as of December 31, 2020. Based on the results of the annual goodwill impairment test, the Company determined there was no goodwill impairment.

The following table presents changes in the carrying amount of goodwill by reporting units during the year ended December 31, 2019:

($ in thousands)	Consumer and Business Banking		Commercial Banking		Total
Beginning balance, January 1, 2019	$	353,321	$	112,226	$	465,547
Acquisition of East West Markets, LLC	—		150		150
Ending balance, December 31, 2019	$	353,321	$	112,376	$	465,697

There were no changes in the carrying amount of goodwill during the year ended December 31, 2020.

Core Deposit Intangibles

The following table presents the gross carrying amount of core deposit intangible and accumulated amortization as of December 31, 2020 and 2019:

($ in thousands)	December 31,
	2020		2019
Gross balance (1)	$	86,099	$	86,099
Accumulated amortization (1)	(79,722)		(76,088)
Net carrying balance (1)	$	6,377	$	10,011

(1) Excludes fully amortized core deposit intangible assets.

There were no impairment write-downs on core deposit intangibles for the years ended December 31, 2020, 2019 and 2018.

Amortization Expense

The Company amortizes the core deposit intangibles based on the projected useful lives of the related deposits. The amortization expense related to the core deposit intangible assets was $3.6 million, $4.5 million and $5.5 million for the years ended December 31, 2020, 2019 and 2018, respectively. The following table presents the estimated future amortization expense of core deposit intangibles as of December 31, 2020:

($ in thousands)	Amount
2021	$	2,749
2022	1,865
2023	1,199
2024	553
2025	11
Thereafter	—
Total	$	6,377