Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Note 5 - Goodwill and Other Intangible Assets

During the first quarter of 2022, Synovus reorganized its internal management reporting structure to add an additional segment for Consumer Banking. The Consumer Banking segment was previously included in the Community Banking segment. In connection with the reorganization, management reallocated a portion of the Community Banking goodwill to Consumer Banking using a relative fair value approach. See "Part II - Item 8. Financial Statements and Supplementary Data - Note 17 - Segment Reporting" in this Report for additional information.

Goodwill allocated to each reporting unit at December 31, 2022 and 2021 is presented as follows:


(in thousands)	Wholesale Banking Reporting Unit		Community Banking Reporting Unit		Consumer Banking Reporting Unit		Wealth Management Reporting Unit		Total Goodwill
Balance as of December 31, 2020 (1)	$	171,636	$	256,323	$	—	$	24,431	$	452,390
Change in goodwill	—		—		—		—		—
Balance as of December 31, 2021	$	171,636	$	256,323	$	—	$	24,431	$	452,390
Change in goodwill from reallocation	—		(114,701)		114,701		—		—
Balance as of December 31, 2022	$	171,636	$	141,622	$	114,701	$	24,431	$	452,390

(1) During 2020, Synovus recorded a $44.9 million goodwill impairment charge representing all of the goodwill allocated to the Consumer Mortgage reporting unit; as such, the Consumer Mortgage reporting unit is not presented in the table above.

Goodwill is evaluated for impairment on an annual basis or whenever an event occurs or circumstances change to indicate that it is more likely than not that an impairment loss has been incurred (i.e., a triggering event). During the fourth quarter of 2022, Synovus completed its annual goodwill impairment evaluation by performing a qualitative assessment of goodwill at the reporting unit level. In performing the qualitative assessment, the Company evaluated events and circumstances since the last impairment analysis, recent operating performance including reporting unit performance, changes in market capitalization, changes in the business climate, company-specific factors and trends in the banking industry. The results of the qualitative assessment indicated that it was more likely than not that the estimated fair value of each reporting unit exceeded its carrying amount as of the test date; therefore, the quantitative goodwill impairment tests were deemed unnecessary.

The following table shows the gross carrying amount and accumulated amortization of other intangible assets as of December 31, 2022 and 2021, which primarily consist of core deposit intangible assets. The CDI is being amortized over its estimated useful life of approximately ten years utilizing an accelerated method. Aggregate other intangible assets amortization expense for the years ended December 31, 2022, 2021, and 2020 was $8.5 million, $9.5 million, and $10.6 million, respectively, and is included in other operating expense on the consolidated statements of income.


(in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Value
December 31, 2022
CDI	$	57,400	$	(35,484)	$	21,916
Other	12,500		(7,292)		5,208
Total other intangible assets	$	69,900	$	(42,776)	$	27,124
December 31, 2021
CDI	57,400		(28,178)		$	29,222
Other	12,500		(6,126)		6,374
Total other intangible assets	$	69,900	$	(34,304)	$	35,596

The estimated amortization expense of other intangible assets for the next five years is as follows:


(in thousands)	Amortization Expense
2023	$	7,429
2024	6,366
2025	5,266
2026	4,195
2027	2,824