Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

The following is a summary of the gross carrying amount and accumulated amortization of amortizable intangible assets as of December 31, 2022 and December 31, 2021 and the carrying amount of unamortizable intangible assets as of those same dates.

	December 31, 2022			December 31, 2021
($ in thousands)	Gross Carrying Amount		Accumulated Amortization	Gross Carrying Amount	Accumulated Amortization
Amortizable intangible assets:
Customer lists	$	2,700	1,847	2,700	1,386
Core deposit intangibles	29,050		21,274	29,050	18,076
SBA servicing asset	13,264		9,260	11,932	6,460
Other	100		58	100	33
Total	$	45,114	32,439	43,782	25,955
Unamortizable intangible assets:
Goodwill	$	364,263		364,263

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

Amortization expense of all other intangible assets, excluding the SBA servicing asset, totaled $3.7 million, $3.5 million, and $4.0 million for the years ended December 31, 2022, 2021 and 2020, respectively.

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." The following table presents the changes in the SBA servicing assets for each period indicated. Impairment charges included with amortization expense in the table below were immaterial for each period presented.

($ in thousands)	December 31, 2022		December 31, 2021
Beginning balance, net	$	5,472	5,788
New servicing assets	1,332		1,956
Amortization expense and impairment charges	(2,800)		(2,272)
Ending balance, net	$	4,004	5,472

During 2022, 2021, and 2020, the Company recorded $3.4 million, $3.9 million, and $3.3 million, respectively, in SBA guarantee servicing fee income. At December 31, 2022 and 2021, the Company serviced SBA for others totaling $392.4 million and $414.2 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 as of October 31st of each year. Goodwill is also evaluated for impairment any time there is a triggering event indicating that impairment may have occurred. No triggering events were identified during 2022 or 2021, and therefore, the Company did not perform interim impairment evaluations in either of those years. Each of the Company's goodwill impairment evaluations for the periods presented, including the most recent October 2022 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, 2020	$	239,272
Additions from acquisition of Select	132,356
Reduction from disposal of First Bank Insurance	(7,365)
Balance at December 31, 2021	364,263
Net activity during 2022	—
Balance at December 31, 2022	$	364,263

In addition to the changes in goodwill presented above, activity for other intangibles related to transactions since January 1, 2021 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, customer lists with a carrying value of $2.8 million were derecognized.

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, 2027 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
2023	$	2,545
2024	1,718
2025	1,358
2026	962
2027	781
Thereafter	1,307
Total	$	8,671