Goodwill and Other Intangibles

9 Months Ended

Sep. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangibles

Goodwill and Other Intangibles

The table below sets forth the carrying amount of goodwill and other intangible assets, net of accumulated amortization, as of the dates indicated below.

	As of September 30, 2024		As of December 31, 2023
	(In thousands)
Balances not subject to amortization
Goodwill	$	914,957	$	557,635
Balances subject to amortization
Core deposit intangibles	117,395		8,570
Customer list intangible	24,019		—
Trade name intangible	1,138		—
Total goodwill and other intangible assets (1)	$	1,057,509	$	566,205

(1)The increase in goodwill and other intangible assets from December 31, 2023 to September 30, 2024 was due to goodwill and other intangible assets recorded during the three months ended September 30, 2024 in connection with the merger. The Company identified acquired intangible assets related to core deposits (e.g., core deposit intangible) and Cambridge Trust Wealth Management, which included a customer list intangible and trade name intangible. Refer to Note 3, Mergers and Acquisitions for further information regarding the Company’s merger with Cambridge.

The Company quantitatively assesses goodwill for impairment at the reporting unit level on an annual basis or sooner if an event occurs or circumstances change which might indicate that the fair value of a reporting unit is below its carrying amount. The Company has identified and assigned goodwill to one reporting unit - the banking business.

The Company performed its annual assessment for the banking business as of September 30, 2024. The assessment included a comparison of the banking reporting unit’s carrying value of equity to estimated fair value of equity using the market capitalization method of the market approach. The Company evaluated conditions as of the assessment date and how a market participant would evaluate a control premium for the banking reporting unit. The implied control premium was estimated using the discounted cash flow method of the income approach by evaluating the present value of market participant cost savings and synergies. Based upon the assessment, it was determined there was no impairment of the Company’s goodwill as of September 30, 2024.

Other intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Management performed a review of the Company’s intangible assets as of September 30, 2024 and concluded that it was not more-likely-than-not that the carrying amount of other intangible assets may not be recoverable. Management had also previously performed an assessment as of December 31, 2023 and determined there was no indication of impairment related to intangible assets.