Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill represents the premium paid for acquired companies above the net fair value of the assets acquired and liabilities assumed, including separately identifiable intangible assets. Goodwill is not amortized, but is assessed for impairment on an annual basis, or more often if events or circumstances indicate there may be impairment, referred to as a triggering event. Upon the occurrence of a triggering event, accounting guidance allows for an assessment of qualitative factors to determine whether it is more likely than not, or a greater than 50% likelihood, that the fair value of the entity is less than its carrying amount, including goodwill. When it is more likely than not that impairment has occurred, management is required to perform a quantitative analysis and, if necessary, adjust the carrying amount of goodwill by recording a goodwill impairment loss.

Since the latter part of the first quarter of 2020, as a result of market concerns about the potential impact of COVID-19, United’s stock price declined such that it traded below book value for much of the first nine months of 2020. United generally performs its annual goodwill impairment assessment during the fourth quarter of each year, using data as of the end of the third quarter; however, as a result of this triggering event, management has qualitatively assessed and concluded that there was not a greater than 50% likelihood that United’s fair value was less than its carrying amount as of September 30, 2020, given the anticipated short duration of the change in macroeconomic conditions and excess of value as of the latest annual assessment performed as of September 30, 2019. Management will continue to monitor and assess the impact of the pandemic on the Company’s value as part of the annual goodwill assessment in the fourth quarter.

The carrying amount of goodwill and other intangible assets as of the dates indicated is summarized below (in thousands):


	September 30, 2020		December 31, 2019
Core deposit intangible	$	36,162	$	32,802
Less: accumulated amortization	(21,106)		(17,980)
Net core deposit intangible	15,056		14,822




Goodwill	369,018		327,425
Total goodwill and other intangible assets, net	$	384,074	$	342,247

The following is a summary of changes in the carrying amounts of goodwill (in thousands):


	Three Months Ended September 30,						Nine Months Ended September 30,
2020	Goodwill		Accumulated Impairment Losses		Goodwill, net of Accumulated Impairment Losses		Goodwill		Accumulated Impairment Losses		Goodwill, net of Accumulated Impairment Losses
Balance, beginning of period	$	633,015	$	(305,590)	$	327,425	$	633,015	$	(305,590)	$	327,425
Acquisition of Three Shores	41,593		—		41,593		41,593		—		41,593

Balance, end of period	$	674,608	$	(305,590)	$	369,018	$	674,608	$	(305,590)	$	369,018

2019
Balance, beginning of period	$	633,015	$	(305,590)	$	327,425	$	612,702	$	(305,590)	$	307,112
Acquisition of FMBT	—		—		—		20,313		—		20,313

Balance, end of period	$	633,015	$	(305,590)	$	327,425	$	633,015	$	(305,590)	$	327,425

The estimated aggregate amortization expense for future periods for core deposit intangibles is as follows (in thousands):


Year
Remainder of 2020	$	1,042
2021	3,622
2022	2,915
2023	2,321
2024	1,834
Thereafter	3,322
Total	$	15,056