Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

The following is a summary of the gross carrying amount and accumulated amortization of amortizable intangible assets as of December 31, 2021 and December 31, 2020 and the carrying amount of unamortizable intangible assets as of those same dates.


	December 31, 2021			December 31, 2020
($ in thousands)	Gross Carrying Amount		Accumulated Amortization	Gross Carrying Amount	Accumulated Amortization
Amortizable intangible assets:
Customer lists	$	2,700	1,386	7,613	2,814
Core deposit intangibles	29,050		18,076	28,440	23,832
SBA servicing asset	11,932		6,460	9,976	4,188
Other	100		33	1,403	1,232
Total	$	43,782	25,955	47,432	32,066

Unamortizable intangible assets:
Goodwill	$	364,263		239,272

Customer lists are generally amortized over 5 years and core deposit intangibles are generally amortized over 10 years, both at an accelerated rate.

As discussed in Note 1, SBA servicing assets are recorded for the portions of SBA loans that the Company has sold but continues to service for a fee. Servicing assets are initially recorded at fair value, amortized over the expected lives of the related loans, and are periodically tested for impairment. SBA guarantee servicing fees and SBA servicing asset amortization expense are both recorded within noninterest income within the line item "Other service charges, commissions, and fees." As derived from the table above, the Company had a SBA servicing asset at December 31, 2021 with a remaining book value of $5.5 million. The Company recorded $2.0 million and $2.2 million in servicing assets associated with the guaranteed portion of SBA loans sold during 2021 and 2020, respectively. During 2021, 2020, and 2019, the Company recorded $3.9 million, $3.3 million, and $2.6 million, respectively, in SBA guarantee servicing fee income, and $2.3 million, $1.8 million, and $1.3 million, respectively, in related amortization expense. At December 31, 2021 and 2020, the Company serviced SBA for others totaling $414.2 million and $395.4 million, respectively. There were no other loans serviced for others in any year presented.

Goodwill is evaluated for impairment on at least an annual basis, with the annual evaluation occurring on October 31st of each year. Goodwill is also evaluated for impairment any time there is a triggering event indicating that impairment may have occurred. During 2020, in addition to the annual impairment evaluation, due to the COVID-19 pandemic, the Company evaluated its goodwill for impairment at each of the first three quarter ends of 2020, with each evaluation indicating that there was no impairment. Due to improving economic conditions and increases in the Company's stock price and market capitalization at year end 2020 and throughout 2021, no triggering events were identified, and therefore, the Company did not perform interim impairment evaluations subsequent to the third quarter of 2020. Each of the Company's goodwill impairment evaluations for the periods presented, including the most recent October 2021 evaluation, indicated that there was no goodwill impairment.

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


($ in thousands)	Total Goodwill
Balance at December 31, 2019	$	234,368
Additions from acquisition of Magnolia Financial	4,904
Balance at December 31, 2020	239,272
Additions from acquisition of Select	132,356
Reduction from disposal of First Bank Insurance Services, Inc.	(7,365)
Balance at December 31, 2021	$	364,263

In addition to the changes in goodwill presented above, activity for other intangibles related to transactions since January 1, 2020 are presented as follows. Refer to Note 2 for additional discussion of the transactions.

•In connection with the Select acquisition on October 15, 2021, the Company recorded $9.2 million in core deposit intangibles.

•Related to the sale of First Bank Insurance Services, Inc., customer lists with a carrying value of $2.8 million were derecognized.

•In connection with the acquisition of Magnolia Financial on September 1, 2020, the Company recorded $1.6 million in other amortizable intangible assets.

Amortization expense of all other intangible assets, excluding the SBA servicing asset, totaled $3.5 million, $4.0 million, and $4.9 million for the years ended December 31, 2021, 2020 and 2019, respectively.

The following table presents the estimated amortization expense schedule related to acquisition-related amortizable intangible assets for each of the five calendar years ending December 31, 2026 and the estimated amount amortizable thereafter. These amounts will be recorded as "Intangibles amortization expense" within the noninterest expense section of the Consolidated Statements of Income. These estimates are subject to change in future periods to the extent management determines it is necessary to make adjustments to the carrying value or estimated useful lives of amortizable intangible assets.


($ in thousands)	Estimated Amortization Expense
2022	$	3,684
2023	2,545
2024	1,718
2025	1,358
2026	962
Thereafter	2,088
Total	$	12,355