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Goodwill and Other Intangible Assets | 9 Months Ended
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Sep. 30, 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 $1.075 billion at September 30, 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 nine months of 2020, goodwill increased $19.8 million related to the continued assessment of the fair value and assumed tax position of the Landrum acquisition which was finalized during the third quarter. Goodwill impairment was neither indicated nor recorded during the nine months ended September 30, 2020 or the year ended December 31, 2019. During the first quarter of 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 that economic decline, the effect on share price and other factors, the Company performed an interim goodwill impairment qualitative assessment during the first quarter and concluded no impairment existed. During the second quarter of 2020, the Company performed the 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 is not impaired. During the third quarter of 2020, the Company once again performed an interim goodwill impairment assessment and concluded no impairment existed. While the goodwill impairment analysis indicated no impairment at September 30, 2020, the Company’s assessment depends on several assumptions which are dependent on market and economic conditions, and future changes in those conditions could impact the Company’s assessment in the future. 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 September 30, 2020 and December 31, 2019 were as follows:
| September 30, |  | December 31,
(In thousands) | 2020 |  | 2019
Core deposit premiums: |  |  |
Balance, beginning of year | $ | 111,808 |  |  | $ | 79,807 |
Acquisitions(1) | — |  |  | 42,695 |
Disposition of intangible asset(2) | (2,324) |  |  | — |
Amortization | (9,114) |  |  | (10,694) |
Balance, end of period | 100,370 |  |  | 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 | (1,029) |  |  | (1,111) |
Balance, end of period | 14,090 |  |  | 15,532 |
Total other intangible assets, net | $ | 114,460 |  |  | $ | 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) Adjustments recorded for the premiums on certain deposit liabilities associated with the sale of the Texas Branches and Colorado 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 September 30, 2020 and December 31, 2019 were as follows:
| September 30, |  | December 31,
(In thousands) | 2020 |  | 2019
Core deposit premiums: |  |  |
Gross carrying amount | $ | 146,355 |  |  | $ | 148,679 |
Accumulated amortization | (45,985) |  |  | (36,871) |
Core deposit premiums, net | 100,370 |  |  | 111,808 |
Books of business and other intangibles: |  |  |
Gross carrying amount | 19,938 |  |  | 20,350 |
Accumulated amortization | (5,848) |  |  | (4,818) |
Books of business and other intangibles, net | 14,090 |  |  | 15,532 |
Total other intangible assets, net | $ | 114,460 |  |  | $ | 127,340 |
The Company’s estimated remaining amortization expense on other intangible assets as of September 30, 2020 is as follows:
(In thousands) | Year |  | Amortization Expense
| Remainder of 2020 |  | $ | 3,351 |
| 2021 |  | 13,379 |
| 2022 |  | 13,327 |
| 2023 |  | 13,044 |
| 2024 |  | 12,141 |
| Thereafter |  | 59,218 |
| Total |  | $ | 114,460 |

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- 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
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