Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

The carrying amounts of goodwill allocated to Valley's reporting units at both March 31, 2024 and December 31, 2023, were as follows:


Reporting Unit *
Wealth Management		Consumer Banking		Commercial Banking		Total
(in thousands)



$	78,142	$	349,646	$	1,441,148	$	1,868,936

* The Wealth Management and Consumer Banking reporting units are both components of the overall Consumer Banking operating segment, which is further described in Note 1 5.

During the three months ended March 31, 2024, there were no triggering events that would more likely than not

reduce the fair value of any reporting unit below its carrying amount. There was no impairment of goodwill recognized during the three months ended March 31, 2024 and 2023.

The following table summarizes other intangible assets as of March 31, 2024 and December 31, 2023:


	Gross Intangible Assets		Accumulated Amortization		Net Intangible Assets
	(in thousands)
March 31, 2024
Loan servicing rights	$	123,136	$	(101,830)	$	21,306
Core deposits	215,620		(119,832)		95,788
Other	50,393		(16,018)		34,375
Total other intangible assets	$	389,149	$	(237,680)	$	151,469
December 31, 2023
Loan servicing rights	$	122,586	$	(100,636)	$	21,950
Core deposits	215,620		(113,183)		102,437
Other	50,393		(14,449)		35,944
Total other intangible assets	$	388,599	$	(228,268)	$	160,331

Loan servicing rights are accounted for using the amortization method. Under this method, Valley amortizes the loan servicing assets over the period of the economic life of the assets arising from estimated net servicing revenues. On a quarterly basis, Valley stratifies its loan servicing assets into groupings based on risk characteristics and assesses each group for impairment based on fair value. Impairment charges on loan servicing rights are recognized in earnings when the book value of a stratified group of loan servicing rights exceeds its estimated fair value. There was no impairment of loan servicing rights recognized during the three months ended March 31, 2024 and 2023.

Core deposits are amortized using an accelerated method over a period of 10.0 years. The line item labeled “Other” included in the table above primarily consists of customer lists, certain financial asset servicing contracts and covenants not to compete, which are amortized over their expected lives generally using a straight-line method and have a weighted average amortization period of approximately 13.4 years.

Valley evaluates core deposits and other intangibles for impairment when an indication of impairment exists. There was no impairment of core deposits and other intangibles was recognized during the three months ended March 31, 2024 and 2023.

The following table presents the estimated future amortization expense of other intangible assets for the remainder of 2024 through 2028:


Year	Loan Servicing Rights		Core Deposits		Other
	(in thousands)
2024	$	2,066	$	18,248	$	4,382
2025	2,504		21,048		5,380
2026	2,206		17,223		4,805
2027	1,928		13,544		4,205
2028	1,685		10,117		3,633

Valley recognized amortization expense on other intangible assets totaling approximately $9.4 million and $10.5 million for the three months ended March 31, 2024 and 2023, respectively.