Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2023

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Note 8—Goodwill and Other Intangible Assets

The carrying amount of goodwill was $1.9 billion at December 31, 2023 and December 31, 2022. The Company added $342.0 million in goodwill related to the Atlantic Capital acquisition in 2022.

The Company evaluated the carrying value of goodwill as of October 31, 2023, its annual test date, and concluded that no impairment charge was necessary. The Company will continue to monitor the other market conditions on the Company’ business, operating results, cash flows and/or financial condition. The following is a summary of changes in the carrying amounts of goodwill:

	Year Ended
	December 31,
(Dollars in thousands)	2023		2022
Balance at beginning of period	$	1,923,106	$	1,581,085
Additions:
Goodwill from Atlantic Capital acquisition		—		342,021
Balance at end of period	$	1,923,106	$	1,923,106

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 $17.5 million in core deposit intangibles related to the Atlantic Capital transaction during the first quarter of 2022. The following is a summary of gross carrying amounts and accumulated amortization of other intangible assets:

	December 31,		December 31,
(Dollars in thousands)	2023		2022
Gross carrying amount	$	274,753	$	274,869
Accumulated amortization		(185,977)		(158,419)
	$	88,776	$	116,450

Amortization expense totaled $27.6 million, $33.2 million and $35.2 million for the years ended December 31, 2023, 2022, and 2021, respectively. Other intangibles are amortized using either the straight-line method or an accelerated basis over their estimated useful lives, with lives generally between 10 and 15 years for core deposit intangibles and between 10 and 15 years for customer lists.

The Company elected to apply fair value accounting to the Company’s SBA servicing asset. The change in fair value of the SBA servicing asset is recorded in SBA Income, a component of Noninterest Income on the Consolidated Statements of Income, during each applicable reporting period. As a result of the fair value accounting treatment, the Company does not amortize the SBA servicing asset and therefore excluded the SBA servicing asset from the future amortization expense table presented below. The fair value of the SBA servicing asset was $6.0 million and $6.1 million, respectively, at December 31, 2023 and 2022.

Estimated amortization expense for other intangibles, excluding the SBA servicing asset, for each of the next five years is as follows:

(Dollars in thousands)
Year ended December 31:
2024	$	22,395
2025		18,766
2026		15,232
2027		11,756
2028		8,020
Thereafter		6,655
	$	82,824