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Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2024

Goodwill and Other Intangible Assets

Note 17 — Goodwill and Other Intangible Assets

The carrying amount of goodwill was $1.9 billion at March 31, 2024 and December 31, 2023. The Company’s other intangible assets, consisting of core deposit intangibles, noncompete intangibles, and client list intangibles are included on the face of the balance sheet.

The Company last completed its annual valuation of the carrying value of its goodwill as of October 31, 2023 and determined there was no impairment of the Company’s goodwill. Management continues to monitor the impact of market conditions on the Company’s business, operating results, cash flows and/or financial condition.

The following is a summary of gross carrying amounts and accumulated amortization of other intangible assets:


	March 31,		December 31,
(Dollars in thousands)	2024		2023
Gross carrying amount	$	275,168	$	274,753
Accumulated amortization		(191,975)		(185,977)
	$	83,193	$	88,776

Amortization expense totaled $6.0 million for the quarter ended March 31, 2024, compared to $7.3 million for the quarter ended March 31, 2023. Other intangibles are amortized using either the straight-line method or an accelerated basis over their estimated useful lives, with lives generally between two and 15 years.

The Company applies fair value accounting to the Company’s SBA servicing asset. The change in fair value of the SBA servicing asset is recorded in SBA Income, a component of Noninterest Income on the Consolidated Statements of Income, during each applicable reporting period. As a result of the fair value accounting treatment, the Company does not amortize the SBA servicing asset and therefore excludes the SBA servicing asset from the future amortization expense table presented below. The fair value of the SBA servicing asset was $6.4 million and $6.0 million, respectively, at March 31, 2024 and December 31, 2023. The fair value of the SBA servicing asset is included in Core Deposit and Other Intangibles on the Consolidated Balance Sheets.

Estimated amortization expense for other intangibles for each of the next five quarters is as follows:


(Dollars in thousands)
Quarter ending:
June 30, 2024	$	5,744
September 30, 2024		5,327
December 31, 2024		5,326
March 31, 2025		5,100
June 30, 2025		4,836
Thereafter		50,493
	$	76,826