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Goodwill and Other Intangible Assets
 12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets
The table below sets forth the carrying amount of goodwill and other intangible assets, net of accumulated amortization as of the dates indicated below. With regard to the years ended December 31, 2023 and 2022, the information presented within this Note excludes discontinued operations. Refer to Note 23, “Discontinued Operations” for further discussion regarding discontinued operations.
As of December 31,
20242023
(In thousands)
Balances not subject to amortization
Goodwill$914,957 $557,635 
Balances subject to amortization
Core deposit intangibles111,296 8,570 
Customer list intangible22,841 — 
Trade name intangible1,064 — 
Total balances subject to amortization135,201 8,570 
Total goodwill and other intangible assets (1)$1,050,158 $566,205 
(1)The increase in goodwill and other intangible assets from December 31, 2023 to December 31, 2024 was due to goodwill and other intangible assets recorded during the third quarter of 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 changes in the carrying value of goodwill for the periods indicated were as follows:
For the Years Ended December 31,
20242023
(In thousands)
Balance at beginning of year$557,635 $557,635 
Goodwill recorded during the year357,322 — 
Balance at end of year$914,957 $557,635 
The following table sets forth the carrying amount of the Company’s other intangible assets, net of accumulated amortization, as of the dates indicated below:
As of December 31,
20242023
Gross Carrying AmountAccumulated AmortizationNet
Carrying
Amount		Gross Carrying AmountAccumulated AmortizationNet
Carrying
Amount
(In thousands)
Core deposit intangible$126,633 $(15,337)$111,296 $11,633 $(3,063)$8,570 
Customer list intangible25,000 (2,159)22,841 — — — 
Trade name intangible1,200 (136)1,064 — — — 
Total$152,833 $(17,632)$135,201 $11,633 $(3,063)$8,570 
The Company 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 unit.
In accordance with the accounting guidance codified in ASC 350-20, the Company performs a test of goodwill for impairment at least on an annual basis. An assessment is also required to be performed to the extent relevant events and/or
circumstances occur which may indicate it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount.
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.
In the fourth quarter of 2024, management elected to change the annual date at which it assesses goodwill for impairment from September 30 to November 30. Management considered the accounting guidance codified in ASC 250 in assessing the appropriateness of the change and the method for applying the change. The assessment included an evaluation of the justification of the change noting an assessment date of November 30 is preferable to September 30 as management’s process for determining future period forecasted earnings for budgeting purposes, a key input in the quantitative goodwill impairment assessment, occurs in the fourth quarter. Previously, future period forecasted earnings were estimated as of September 30 to support the annual goodwill impairment assessment and later updated in the fourth quarter for budgeting purposes and to support impairment evaluations performed as of December 31. Thus, moving the annual assessment date to November 30 allows for a more accurate estimate of future forecasted earnings to be used in its quantitative assessment of goodwill for impairment. In addition, based upon the assessment performed, management determined the change should be applied prospectively beginning with an assessment performed as of November 30, 2024 as a retrospective application of this change in accounting principle would require the use of assumptions and estimations developed with the use of hindsight, which is not appropriate for the annual goodwill impairment assessment. Management believes the change in goodwill impairment testing date does not represent a material change to the method of applying an accounting principle in light of the internal controls over financial reporting and requirements to assess goodwill impairment upon certain triggering events, and does not delay, accelerate or avoid any impairment charges. In addition, the Company last performed an assessment as of November 30, 2024 as an update to the September 30, 2024 annual test. As such, no more than 12 months will have elapsed between the previous assessment and the next annual assessment as of November 30, 2025.
The Company performed its annual assessment for the banking business as of November 30, 2024, the Company’s new annual assessment date as described above. The assessment included a comparison of the banking reporting unit’s carrying value of equity to estimated fair value of equity based on the Company’s market capitalization. The assessment also considered the changes in market conditions from the September 30, 2024 assessment. Based upon the assessment, it was determined there was no impairment of the Company’s goodwill as of November 30, 2024. As of December 31, 2024, there was no effect to the Company’s Consolidated Financial Statements as a result of the change in annual assessment date.
The amortization expense of the Company’s other intangible assets was $14.6 million, $1.8 million, and $1.2 million during the years ended December 31, 2024, 2023, and 2022, respectively. The increase in amortization expense for the year ended December 31, 2024 from 2023 was attributable to amortization expense recorded in the third and fourth quarter of 2024 related to other intangible assets acquired in connection with the Company’s merger with Cambridge.
The weighted average original amortization period and weighted average remaining useful life of the Company’s other intangible assets is 7.8 years and 7.0 years, respectively. Management performs an assessment of the remaining useful lives of the Company’s intangible assets on a quarterly basis to determine if such lives remain appropriate.
The estimated amortization expense for the remaining useful life of the Company’s other intangible assets is as follows:
Year(In thousands)
2025$31,231 
202629,464 
202722,219 
202816,175 
202913,454 
Thereafter22,658 
Total amortization expense$135,201