Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL AND OTHER INTANGIBLE ASSETS

The following table presents goodwill as of the dates presented:

	December 31,
(dollars in thousands)	2021		2020
Balance at beginning of year	$	373,424	$	371,621
Additions	—		1,803
Balance at End of Year	$	373,424	$	373,424

Goodwill represents the excess of the purchase price over the fair value of net assets acquired. Additional goodwill of $1.8 million was recorded during 2020 related to our acquisition of DNB. Refer to Note 2 Business Combinations for further details on the DNB merger.

Goodwill is reviewed for impairment annually or more frequently if it is determined that a triggering event has occurred. Based upon our qualitative assessment performed for our annual impairment analysis as of October 1, 2021, we concluded that it is more likely than not that the fair value of the reporting units exceeds the carrying value. In general, the overall macroeconomic conditions and more specifically the economic conditions of the banking industry have improved throughout 2021. No events or circumstances since the November 1, 2021 annual impairment test were noted that would indicate it was more likely than not that goodwill impairment exists.

The following table presents a summary of intangible assets as of the dates presented:

	December 31,
(dollars in thousands)	2021		2020
Gross carrying amount at beginning of year	$	31,340	$	31,052
Additions	—		288
Accumulated amortization	(24,445)		(22,665)
Balance at End of Year	$	6,895	$	8,675

Intangible assets of $6.9 million at December 31, 2021 relate to core deposit and wealth management customer relationships resulting from acquisitions. The $0.3 million addition during 2020 related to acquired wealth management customer relationships. We determined the amount of identifiable intangible assets for our core deposits based upon an independent valuation. Other intangible assets are evaluated for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. There were no triggering events in 2021 requiring an impairment analysis to be completed.

Amortization expense on finite-lived intangible assets totaled $1.8 million, $2.5 million and $0.8 million for 2021, 2020 and 2019.

The following is a summary of the expected amortization expense for finite-lived intangible assets, assuming no new additions, for each of the five years following December 31, 2021 and thereafter:

(dollars in thousands)	Amount
2022	$	1,518
2023	1,319
2024	1,151
2025	820
2026	671
Thereafter	1,416
Total	$	6,895