Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2024

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 $1.32 billion at March 31, 2024 and December 31, 2023. Goodwill impairment was neither indicated nor recorded during the three months ended March 31, 2024 or the year ended December 31, 2023.

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 8 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, 2024 and December 31, 2023 were as follows: 

	March 31,		December 31,
(In thousands)	2024		2023
Core deposit premiums:
Balance, beginning of year	$	101,344	$	116,016
Amortization	(3,442)		(14,672)
Balance, end of period	97,902		101,344
Books of business and other intangibles:
Balance, beginning of year	11,301		12,935
Amortization	(408)		(1,634)
Balance, end of period	10,893		11,301
Total other intangible assets, net	$	108,795	$	112,645

The carrying basis and accumulated amortization of the Company’s other intangible assets at March 31, 2024 and December 31, 2023 were as follows: 

	March 31,		December 31,
(In thousands)	2024		2023
Core deposit premiums:
Gross carrying amount	$	177,624	$	187,467
Accumulated amortization	(79,722)		(86,123)
Core deposit premiums, net	97,902		101,344
Books of business and other intangibles:
Gross carrying amount	22,068		22,068
Accumulated amortization	(11,175)		(10,767)
Books of business and other intangibles, net	10,893		11,301
Total other intangible assets, net	$	108,795	$	112,645

The Company’s estimated remaining amortization expense on other intangible assets as of March 31, 2024 is as follows: 

(In thousands)	Year	Amortization Expense
	Remainder of 2024	$	11,553
	2025	12,819
	2026	12,346
	2027	12,218
	2028	11,312
	Thereafter	48,547
	Total	$	108,795