Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2025

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Note 18 — Goodwill and Other Intangible Assets

The carrying amount of goodwill was $3.1 billion and $1.9 billion, respectively, at March 31, 2025 and December 31, 2024. The Company added $1.2 billion in goodwill related to the Independent acquisition in the first quarter of 2025. The Company also added $412.1 million in core deposit intangibles related to the Independent acquisition and $558,000 related to the purchase of a wealth business client list during the first quarter of 2025. The goodwill was calculated based on the preliminary fair values of the assets acquired and liabilities assumed as of the acquisition date, and subject to change as additional information becomes available during the measurement period. 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 last completed its annual valuation of the carrying value of its goodwill as of October 31, 2024 and determined there was no impairment of the Company’s goodwill. Management continues to monitor the impact of market conditions on the Company’s business, operating results, cash flows and/or financial condition.

The following is a summary of gross carrying amounts and accumulated amortization of other intangible assets:

	March 31,		December 31,
(Dollars in thousands)	2025		2024
Gross carrying amount	$	687,645	$	274,829
Accumulated amortization		(232,202)		(208,371)
	$	455,443	$	66,458

Amortization expense totaled $23.8 million for the quarter ended March 31, 2025, compared to $6.0 million for the quarter ended March 31, 2024.  Other intangibles, except for SBA servicing assets which are carried at fair value, 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:
June 30, 2025	$	23,637
September 30, 2025		23,220
December 31, 2025		23,211
March 31, 2026		21,139
June 30, 2026		20,876
Thereafter		337,152
	$	449,235