Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2021

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 September 30, 2021 and December 31, 2020. The Company added $15.8 million in goodwill related to the DWI acquisition in the first quarter of 2021. The Company

made subsequent fair value adjustments related to the CSFL merger in the second quarter of 2021 that increased goodwill by $1.3 million.

The Company last completed its annual valuation of the carrying value of its goodwill as of April 30, 2020. We updated this analysis as of November 30, 2020. We determined that no impairment charge was necessary for each period end. During the second quarter of 2021, the Company implemented the change in its annual goodwill valuation date to October 31 each year in order for the valuation to be closer to our year end audit date. We will continue to monitor the impact of the COVID-19 pandemic on the Company’s 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:

	September 30,		December 31,
(Dollars in thousands)	2021		2020
Gross carrying amount	$	258,190	$	258,554
Accumulated amortization		(121,606)		(95,962)
	$	136,584	$	162,592

Amortization expense totaled $8.5 million and $26.7 million, for the three and nine months ended September 30, 2021, compared to $9.6 million and $17.2 million for the three and nine months ended September 30, 2020.  The increase compared to the nine months ended September 30, 2020 was due to the intangibles added from the CSFL merger in the second quarter of 2020.  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:
December 31, 2021	$	8,201
March 31, 2022		7,931
June 30, 2022		7,666
September 30, 2022		7,230
December 31, 2022		7,229
Thereafter		98,327
	$	136,584