Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2020

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Note 19—Goodwill and Other Intangible Assets

The carrying amount of goodwill was $1.6 billion at June 30, 2020, compared to $1.0 billion at December 31, 2019 and June 30, 2019. The Company added $600.5 million in goodwill related to the CSFL merger during the second quarter of 2020. The Company’s other intangible assets, consisting of core deposit intangibles, noncompete intangibles, and client list intangibles are included on the face of the balance sheet. The Company added $125.9 million in core deposit intangible related to the CSFL merger during the second quarter of 2020.

The Company completed its annual valuation of the carrying value of its goodwill as of April 30, 2020. We determined that no impairment charge was necessary at this time. We will continue to monitor the impact of COVID-19 on the Company’ business, operating results, cash flows and/or financial condition.

Our other intangible assets, consisting of core deposit intangibles, noncompete intangibles, and client list intangibles are included on the face of the balance sheet. The following is a summary of gross carrying amounts and accumulated amortization of other intangible assets:

	June 30,		December 31,		June 30,
(Dollars in thousands)	2020		2019		2019
Gross carrying amount	$	248,171	$	119,501	$	119,501
Accumulated amortization		(77,260)		(69,685)		(63,150)
	$	170,911	$	49,816	$	56,351

Amortization expense totaled $4.7 million and $7.7 million, respectively, for the three and six months ended June 30, 2020, respectively, compared to $3.3 million and $6.5 million, respectively, for the three and six months ended June 30, 2019, respectively.  Other intangibles are amortized using either the straight-line method or an accelerated basis over their estimated useful lives, with lives generally between two and 15 years.  Estimated amortization expense for other intangibles for each of the next five quarters is as follows:

(Dollars in thousands)
Quarter ending:
September 30, 2020	$	9,000
December 31, 2020		8,641
March 31, 2021		8,377
June 30, 2021		8,174
September 30, 2021		7,791
Thereafter		128,928
	$	170,911