Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill is tested annually, or more often than annually, if circumstances warrant, for impairment. If the implied fair value of goodwill is lower than its carrying amount, goodwill impairment is indicated, and goodwill is written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the financial statements. Goodwill totaled $1.1 billion at March 31, 2022 and December 31, 2021. Goodwill increased $1.0 million during the quarter ended March 31, 2022 due to the continued assessment of the fair value and assumed tax position of the Landmark and Triumph acquisitions.

Core deposit premiums represent the value of the relationships that acquired banks had with their deposit customers and are amortized over periods ranging from 10 years to 15 years and are periodically evaluated, at least annually, as to the recoverability of their carrying value. Other intangible assets represent the value of other acquired relationships, including relationships with trust and wealth management customers, and are being amortized over various periods ranging from 10 years to 15 years.

Changes in the carrying amount and accumulated amortization of the Company’s core deposit premiums and other intangible assets at March 31, 2022 and December 31, 2021 were as follows: 

	March 31,		December 31,
(In thousands)	2022		2021
Core deposit premiums:
Balance, beginning of year	$	93,862	$	97,363
Acquisitions(1)	—		9,295
Disposition of intangible asset(2)	—		(674)
Amortization	(3,144)		(12,122)
Balance, end of period	90,718		93,862
Books of business and other intangibles:
Balance, beginning of year	12,373		13,747
Amortization	(343)		(1,374)
Balance, end of period	12,030		12,373
Total other intangible assets, net	$	102,748	$	106,235

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(1)    Core deposit premiums of $5.1 million and $4.2 million were recorded during 2021 as part of the Triumph and Landmark acquisitions, respectively. See Note 2, Acquisitions, for additional information on acquisitions completed in 2021.

(2)    Adjustments recorded for the premiums on certain deposit liabilities associated with the sale of banking operations.

The carrying basis and accumulated amortization of the Company’s other intangible assets at March 31, 2022 and December 31, 2021 were as follows: 

	March 31,		December 31,
(In thousands)	2022		2021
Core deposit premiums:
Gross carrying amount	$	153,496	$	153,496
Accumulated amortization	(62,778)		(59,634)
Core deposit premiums, net	90,718		93,862
Books of business and other intangibles:
Gross carrying amount	19,937		19,937
Accumulated amortization	(7,907)		(7,564)
Books of business and other intangibles, net	12,030		12,373
Total other intangible assets, net	$	102,748	$	106,235

The Company’s estimated remaining amortization expense on other intangible assets as of March 31, 2022 is as follows:

(In thousands)	Year	Amortization Expense
	Remainder of 2022	$	10,408
	2023	13,612
	2024	12,709
	2025	10,125
	2026	9,652
	Thereafter	46,242
	Total	$	102,748