Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Goodwill

Total goodwill was $465.7 million as of both March 31, 2021 and December 31, 2020. The Company’s annual goodwill impairment testing is 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 unit 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 to the Consolidated Financial Statements of the Company’s 2020 Form 10-K. The Company completed an annual goodwill impairment testing as of December 31, 2020, and determined there was no goodwill impairment.

As of March 31, 2021, while COVID-19 cases have begun to ease from the January 2021 peak, the spread of new, more contagious variants could impact the magnitude and duration of this health crisis. However, ongoing virus containment efforts and vaccination progress, as well as the possibility of further government stimulus, could accelerate the macroeconomic recovery. The Company conducted a qualitative interim impairment test as of March 31, 2021, and concluded goodwill was not impaired. There were no changes in the carrying amount of goodwill during the three months ended March 31, 2021 and 2020.

Core Deposit Intangibles

The following table presents the gross carrying amount of core deposit intangible assets and accumulated amortization as of March 31, 2021 and December 31, 2020:

($ in thousands)	March 31, 2021		December 31, 2020
Gross balance (1)	$	86,099	$	86,099
Accumulated amortization (1)	(80,454)		(79,722)
Net carrying balance (1)	$	5,645	$	6,377

(1)Excludes fully amortized core deposit intangible assets.

There were no impairment write-downs of the core deposit intangibles for the three months ended March 31, 2021 and 2020.

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 $732 thousand and $953 thousand for the three months ended March 31, 2021 and 2020, respectively.

The following table presents the estimated future amortization expense of core deposit intangibles as of March 31, 2021:

($ in thousands)	Amount
Remainder of 2021	$	2,017
2022	1,865
2023	1,199
2024	553
2025	11
Total	$	5,645