Goodwill and Other Intangible Assets

12 Months Ended

Dec. 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 December 31, 2024 and 2023.

Goodwill impairment was neither indicated nor recorded in 2024, 2023 or 2022. During the second quarter of 2024, the Company performed an annual goodwill impairment analysis and concluded that it is more likely-than-not that the fair value of goodwill continues to exceed its carrying value and therefore, goodwill was not impaired.

During March of 2023, the Company’s share price began to decline as markets in the United States (“US”) responded to the sudden collapse of two US banks. As a result of the decrease in the Company’s market capitalization, the Company performed an interim goodwill impairment qualitative assessment during the first quarter of 2023 and concluded that it was more likely-than-not that the fair value of goodwill continued to exceed its carrying value and therefore, goodwill was not impaired. During the second quarter of 2023, the Company performed an annual goodwill impairment analysis and concluded no impairment existed. Additionally, the Company performed interim goodwill impairment assessments during the third and fourth quarters of 2023 and concluded no impairment existed during the periods.

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 December 31, 2024 and 2023 were as follows:

(In thousands)	2024		2023
Core deposit premiums:
Balance, beginning of year	$	101,344	$	116,016
Amortization	(13,769)		(14,672)
Balance, end of year	87,575		101,344
Books of business and other intangibles:
Balance, beginning of year	11,301		12,935
Amortization	(1,634)		(1,634)
Balance, end of year	9,667		11,301
Total other intangible assets, net	$	97,242	$	112,645

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

(In thousands)	2024		2023
Core deposit premiums:
Gross carrying amount	$	177,624	$	187,467
Accumulated amortization	(90,049)		(86,123)
Core deposit premiums, net	87,575		101,344
Books of business and other intangibles:
Gross carrying amount	22,068		22,068
Accumulated amortization	(12,401)		(10,767)
Books of business and other intangibles, net	9,667		11,301
Total other intangible assets, net	$	97,242	$	112,645

Core deposit premium amortization expense recorded for the years ended December 31, 2024, 2023 and 2022 was $13.8 million, $14.7 million and $14.3 million, respectively. Amortization expense recorded for books of business and other intangibles was $1.6 million for each year ended December 31, 2024, 2023 and 2022. 

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

Year	(In thousands)
2025	$	12,819
2026	12,346
2027	12,218
2028	11,312
2029	8,563
Thereafter	39,984
Total	$	97,242