Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 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 September 30, 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 the Company’s accounting policy for goodwill is summarized in Note 1 — Summary of Significant Accounting Policies — Significant Accounting Policies — Goodwill and Other Intangible Assets to the Consolidated Financial Statements of the Company’s 2020 Form 10-K. The Company completed its annual goodwill impairment testing as of December 31, 2020, and determined there was no goodwill impairment. As of September 30, 2021, the Company reviewed the macroeconomic conditions, including the impacts of the COVID-19 pandemic on its business performance and market capitalization, and concluded that goodwill was not impaired.

Core Deposit Intangibles

The following table presents the gross carrying amount of core deposit intangible assets and accumulated amortization as of September 30, 2021 and December 31, 2020:

($ in thousands)	September 30, 2021		December 31, 2020
Gross balance (1)	$	86,099	$	86,099
Accumulated amortization (1)	(81,869)		(79,722)
Net carrying balance (1)	$	4,230	$	6,377

(1)Excludes fully amortized core deposit intangible assets.

There were no impairment write-downs on core deposit intangibles during the three and nine months ended September 30, 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 $706 thousand and $927 thousand for the three months ended September 30, 2021 and 2020, respectively, and $2.1 million and $2.8 million for the nine months ended September 30, 2021 and 2020, respectively.

The following table presents the estimated future amortization expense of core deposit intangibles as of September 30, 2021:

($ in thousands)	Amount
Remainder of 2021	$	602
2022	1,865
2023	1,199
2024	553
2025	11
Total	$	4,230