Goodwill and Core Deposit Intangibles

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill

Management analyzes its goodwill for impairment on an annual basis and between annual tests in certain circumstances, such as upon material adverse changes in legal, business, regulatory, and economic factors. An impairment loss is recorded to the extent that the carrying amount of goodwill exceeds its implied fair value. The Company performed an impairment assessment as of July 1, 2021 and 2020 and concluded that there was no impairment to goodwill.

The following table details changes in the recorded amount of goodwill as of the dates indicated:

	As of June 30,
	June 30, 2022		December 31, 2021
Net carrying value at beginning of the period	$	621.6	$	621.6
Provisional additions to goodwill from acquisition	478.2		—
Net carrying value at end of period	$	1,099.8	$	621.6

Other Intangible Assets

Other intangible assets are comprised of core deposit intangibles (“CDI”) and other customer relationship intangibles (“OCRI”) and amounted to the following at June 30, 2022 and December 31, 2021:

As of June 30, 2022	CDI		OCRI		Total
Gross other intangible assets, at beginning of the period	$	106.0	$	—	$	106.0
Provisional amounts established through acquisition	50.1		22.8		72.9
Reductions due to sale of health savings accounts	(1.4)		—		(1.4)
Accumulated amortization	(71.6)		(0.8)		(72.4)
Net other intangible assets, end of period	$	83.1	$	22.0	$	105.1
December 31, 2021
Gross other intangible assets, at beginning of the period	$	106.0	$	—	$	106.0
Accumulated amortization	(64.7)		—		(64.7)
Net other intangible assets, end of period	$	41.3	$	—	$	41.3

The Company recorded $4.1 million and $2.5 million of other intangible asset amortization expense for the three months ended June 30, 2022 and 2021, respectively, and recorded $7.7 million and $5.0 million of other intangible asset amortization expense for the six months ended June 30, 2022 and 2021, respectively

CDI and OCRI are evaluated for impairment if events and circumstances indicate a possible impairment. CDI is amortized using an accelerated method based on the estimated weighted average useful lives of the related deposits, which is generally 10 years. OCRI is amortized using a straight-line method over its estimated useful life of 12 years based on customer revenue attrition on an annualized basis.

The following table provides the estimated aggregate future amortization expense of other intangible assets:

Years Ending December 31,	CDI		OCRI		Total
2022 remaining	$	7.2	$	0.9	$	8.1
2023	13.7		1.9		15.6
2024	12.7		1.9		14.6
2025	11.8		1.9		13.7
2026	10.9		1.9		12.8
Thereafter	26.8		13.5		40.3
Total	$	83.1	$	22.0	$	105.1