Goodwill and Acquired Intangible Assets

12 Months Ended

Dec. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Acquired Intangible Assets

Note 8 - Goodwill and Acquired Intangible Assets

The following table presents changes in the carrying amount of goodwill:

	For the Year Ended December 31,
(In thousands)	2024		2023		2022
Beginning of year	$	732,417	$	480,319	$	252,154
Changes from business combinations	—		252,098		228,165
Total	$	732,417	$	732,417	$	480,319

The Company performs an analysis for goodwill impairment annually in the fourth quarter or more frequently as considered necessary. The Company performed a qualitative goodwill assessment in the fourth quarter of 2024, and concluded that a quantitative goodwill impairment test was not necessary as it was not more likely-than-not that the fair value of the Company’s reporting unit was below the carrying amount. Based on the analyses performed, the Company concluded that goodwill was not impaired during the periods presented.

Acquired intangible assets primarily consist of CDI, which are intangible assets arising from the purchase of deposits separately or from bank acquisitions. The change in balance for CDI is as follows:

	For the Year Ended December 31,
(In thousands)	2024		2023		2022
Beginning of year	$	91,702	$	71,285	$	12,998
Acquired CDI, including measurement period adjustments	—		49,143		67,388
Amortization expense	(23,628)		(28,726)		(9,101)
End of year	$	68,074	$	91,702	$	71,285

The gross carrying amount and accumulated amortization of the Company's CDI subject to amortization as of:

	December 31, 2024				December 31, 2023
(In thousands)	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Core deposit intangible	$	125,720	$	(57,646)	$	135,212	$	(43,511)

The annual amortization expense for the Company's CDI for each of the five years subsequent to December 31, 2024 is $19.9 million, $16.4 million, $13.0 million, $9.3 million and $6.1 million, respectively.

Certain customer relationships were acquired in 2022 through the acquisition of Drummond and its insurance agency subsidiary. The gross carrying amount assigned to these relationships as of December 31, 2024 is $2.6 million and the accumulated amortization is $0.6 million. The intangible asset is being amortized on a straight line basis over 10 years.

The carrying value of servicing rights retained from the sale of the guaranteed portion of SBA loans totaled $1.7 million at December 31, 2024 and 2023.