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Goodwill and Intangible Assets | 3 Months Ended
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Mar. 31, 2020
Goodwill And Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | NOTE 8 – Goodwill and Intangible Assets The carrying amount of goodwill and intangible assets attributable to each of our reporting segments is presented in the following table (in thousands):
|  | December 31, 2019 |  |  | Adjustments |  |  | Sale of ZCM |  |  | March 31, 2020 |
Goodwill |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Global Wealth Management |  | $ | 344,981 |  |  | $ | — |  |  | $ | (9,972 | ) |  | $ | 335,009 |
Institutional Group |  |  | 849,093 |  |  |  | 412 |  |  |  | — |  |  |  | 849,505 |
|  | $ | 1,194,074 |  |  | $ | 412 |  |  | $ | (9,972 | ) |  | $ | 1,184,514 |
|  | December 31, 2019 |  |  | Adjustments / Sale of ZCM |  |  | Amortization |  |  | March 31, 2020 |
Intangible assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Global Wealth Management |  | $ | 53,279 |  |  | $ | (1,532 | ) |  | $ | (1,735 | ) |  | $ | 50,012 |
Institutional Group |  |  | 108,494 |  |  |  | (563 | ) |  |  | (3,297 | ) |  |  | 104,634 |
|  | $ | 161,773 |  |  | $ | (2,095 | ) |  | $ | (5,032 | ) |  | $ | 154,646 |
The adjustments to goodwill and intangible assets during the three months ended March 31, 2020, are primarily attributable to the sale of ZCM, and the acquisitions of MainFirst Bank AG on November 1, 2019 and GMP Capital, Inc. on December 6, 2019. On March 27, 2020, the Company completed the sale of ZCM, a wholly owned asset management subsidiary. The Company recorded a gain on the sale during the three months ended March 31, 2020, which included a write-off of allocated goodwill and the remaining net book value of intangible assets. The allocation of the purchase price of these acquisitions are preliminary and will be finalized upon completion of the analysis of the fair values of the net assets as of the respective acquisition dates and the identified intangible assets. The final goodwill recorded on the consolidated statement of financial condition may differ from that reflected herein as a result of future measurement period adjustments and the recording of identified intangible assets. The goodwill represents the value expected from the synergies created through the operational enhancement benefits that will result from the integration of each respective business, its employees, and customer base. Amortizable intangible assets consist of acquired customer relationships, trade name, investment banking backlog, and non-compete agreements that are amortized over their contractual or determined useful lives. Intangible assets as of March 31, 2020 and December 31, 2019 were as follows (in thousands):
|  | March 31, 2020 |  |  | December 31, 2019 |
|  | Gross Carrying Value |  |  | Accumulated Amortization |  |  | Gross Carrying Value |  |  | Accumulated Amortization |
Customer relationships |  | $ | 202,563 |  |  | $ | 76,762 |  |  | $ | 207,253 |  |  | $ | 75,987 |
Trade name |  |  | 28,659 |  |  |  | 14,112 |  |  |  | 28,659 |  |  |  | 13,649 |
Core deposits |  |  | 8,615 |  |  |  | 3,475 |  |  |  | 8,615 |  |  |  | 2,985 |
Non-compete agreements |  |  | 9,280 |  |  |  | 3,020 |  |  |  | 9,490 |  |  |  | 2,828 |
Investment banking backlog |  |  | 4,245 |  |  |  | 2,024 |  |  |  | 4,245 |  |  |  | 1,787 |
Acquired technology |  |  | 840 |  |  |  | 163 |  |  |  | 840 |  |  |  | 93 |
|  | $ | 254,202 |  |  | $ | 99,556 |  |  | $ | 259,102 |  |  | $ | 97,329 |
Amortization expense related to intangible assets was $5.0 million and $3.6 million for the three months ended March 31, 2020 and 2019, respectively. Amortization expense is included in other operating expenses in the consolidated statements of operations. The weighted-average remaining lives of the following intangible assets at March 31, 2020, are: customer relationships, 10.5 years; trade name, 9.7 years; core deposits, 3.9 years; non-compete agreements, 6.7 years; investment banking backlog, 8.5 years; and acquired technology, 2.4 years. We have an intangible asset that is not subject to amortization and is, therefore, not included in the table below. As of March 31, 2020, we expect amortization expense in future periods to be as follows (in thousands):
Fiscal year |  |  |  |
Remainder of 2020 |  | $ | 13,640 |
2021 |  |  | 17,326 |
2022 |  |  | 15,968 |
2023 |  |  | 14,678 |
2024 |  |  | 13,797 |
Thereafter |  |  | 77,119 |
|  | $ | 152,528 |

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