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 was as follows:

	At December 31,
(In thousands)	2020		2019
Goodwill related to consumer banking segment	$	771,555	$	764,389
Goodwill related to commercial banking segment	541,491		535,489
Goodwill, net	$	1,313,046	$	1,299,878

The Corporation recorded goodwill in the amount of $1.2 billion related to the TCF/Chemical Merger completed on August 1, 2019. Goodwill was allocated to the appropriate reporting unit based on the relative fair value of assets acquired and deposits held by the reporting unit. This methodology allocates goodwill in proportion to the assets held by each reporting unit as well as incorporating the value of the funding source provided by the in place deposits. The reporting units aggregate between the Consumer Banking and Commercial Banking segments. See "Note 3. Business Combinations" for further information. During each quarter of 2020 we evaluated whether it was more-likely-than-not that the fair value of any reporting unit was less than its carrying amount. During the fourth quarter we completed our annual impairment test, which did not indicate impairment for any reporting unit. There was no impairment of goodwill in 2020 and 2019.

The following table sets forth the carrying amount and accumulated amortization of intangible assets that are amortizable and arose from business combinations or other acquisitions.

(In thousands)	Core deposit intangibles		Program agreements		Non-compete agreements		Customer relationships		Total
At December 31, 2020
Gross carrying value	$	141,232	$	14,700	$	9,000	$	21,949	$	186,881
Accumulated amortization	(29,971)		(1,818)		(7,330)		(1,385)		(40,504)
Net carrying amount	$	111,261	$	12,882	$	1,670	$	20,564	$	146,377
At December 31, 2019
Gross carrying value	$	141,232	$	14,700	$	9,000	$	21,949	$	186,881
Accumulated amortization	(11,016)		(1,031)		(5,618)		(848)		(18,513)
Net carrying amount	$	130,216	$	13,669	$	3,382	$	21,101	$	168,368

There was no impairment of other intangible assets in 2020 and 2019.

Amortization expense for intangible assets was $22.0 million, $11.7 million and $3.4 million for 2020, 2019 and 2018, respectively.

The estimated future amortization expense on intangible assets for the next five years is as follows:

(In thousands)	Total
2021	$	20,136
2022	18,180
2023	16,868
2024	16,161
2025	15,425

On August 1, 2019, the Corporation completed the TCF/Chemical Merger. As a result, the Corporation recorded $159.5 million in intangible assets consisting of core deposits and customer relationships intangibles. See "Note 3. Business Combinations" for further information.