XML 41 R16.htm IDEA: XBRL DOCUMENT
v3.20.1

Goodwill and Other Intangible Assets | 3 Months Ended
--- | ---
Mar. 31, 2020
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 $1.065 billion at March 31, 2020 and $1.056 billion at December 31, 2019. During 2019, the Company recorded $131.3 million and $78.5 million of goodwill as a result of its acquisitions of Landrum and Reliance, respectively. During the first quarter of 2020, goodwill increased $9.5 million related to the continued assessment of the fair value and assumed tax position of the Landrum acquisition. Goodwill impairment was neither indicated nor recorded during the three months ended March 31, 2020 or the year ended December 31, 2019. During the first quarter 2020, the Company’s share price began to decline as the markets in the United States responded to the global COVID-19 pandemic. As a result of the economic decline, the effect on share price and other factors, the Company performed an interim goodwill impairment qualitative assessment and concluded that it is more likely-than-not that the fair value of goodwill continues to exceed its carrying value and therefore, goodwill is not impaired. 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 10 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, 2020 and December 31, 2019 were as follows:
(In thousands) | March 31, 2020 |  | December 31, 2019
Core deposit premiums: |  |  |
Balance, beginning of year | $ | 111,808 |  |  | $ | 79,807 |
Acquisitions(1) | — |  |  | 42,695 |
Disposition of intangible asset(2) | (1,841 | ) |  | — |
Amortization | (3,070 | ) |  | (10,694 | )
Balance, end of period | 106,897 |  |  | 111,808 |
Books of business and other intangibles: |  |  |
Balance, beginning of year | 15,532 |  |  | 11,527 |
Acquisitions(3) | — |  |  | 5,116 |
Disposition of intangible asset | (413 | ) |  | — |
Amortization | (343 | ) |  | (1,111 | )
Balance, end of period | 14,776 |  |  | 15,532 |
Total other intangible assets, net | $ | 121,673 |  |  | $ | 127,340 |
_________________________ (1) Core deposit premiums of $24.3 million and $18.4 million were recorded during 2019 as part of the Landrum and Reliance acquisitions, respectively. See Note 2, Acquisitions, for additional information on acquisitions completed in 2019. (2) Consisting of an adjustment for the premium on certain deposit liabilities related to the sale of the Texas Branches. (3) The Company recorded $5.1 million during 2019 primarily related to the wealth management operations acquired from Landrum. See Note 2, Acquisitions, for additional information on acquisitions completed in 2019. The carrying basis and accumulated amortization of the Company’s other intangible assets at March 31, 2020 and December 31, 2019 were as follows:
(In thousands) | March 31, 2020 |  | December 31, 2019
Core deposit premiums: |  |  |
Gross carrying amount | $ | 146,838 |  |  | $ | 148,679 |
Accumulated amortization | (39,941 | ) |  | (36,871 | )
Core deposit premiums, net | 106,897 |  |  | 111,808 |
Books of business and other intangibles: |  |  |
Gross carrying amount | 19,938 |  |  | 20,350 |
Accumulated amortization | (5,162 | ) |  | (4,818 | )
Books of business and other intangibles, net | 14,776 |  |  | 15,532 |
Total other intangible assets, net | $ | 121,673 |  |  | $ | 127,340 |
The Company’s estimated remaining amortization expense on other intangible assets as of March 31, 2020 is as follows:
(In thousands) | Year |  | Amortization Expense
| Remainder of 2020 |  | $ | 10,120 |
| 2021 |  | 13,436 |
| 2022 |  | 13,384 |
| 2023 |  | 13,101 |
| 2024 |  | 12,199 |
| Thereafter |  | 59,433 |
| Total |  | $ | 121,673 |

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration