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Goodwill and Other Intangible Assets | 9 Months Ended
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Sep. 30, 2022
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 $1.31 billion and $1.15 billion at September 30, 2022 and December 31, 2021, respectively. Goodwill increased $163.0 million during the nine months ended September 30, 2022 primarily due to the Spirit acquisition, along with adjustments related to the continued assessment of the fair value and assumed tax position of the Landmark and Triumph acquisitions. Goodwill impairment was neither indicated nor recorded during the nine months ended September 30, 2022 or the year ended December 31, 2021. During the second quarter of 2022, the Company performed an annual goodwill impairment analysis and concluded no impairment existed. Also during 2022, the Company’s share price began to decline as markets in the United States responded to record inflation and other economic pressures. As a result of the effect on share price, the Company performed interim goodwill impairment assessments during the second and third quarters and concluded no impairment existed during the periods. 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 8 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, 2022 and December 31, 2021 were as follows:
| September 30, |  | December 31,
(In thousands) | 2022 |  | 2021
Core deposit premiums: |  |  |
Balance, beginning of year | $ | 93,862 |  |  | $ | 97,363 |
Acquisitions(1) | 36,500 |  |  | 9,295 |
Disposition of intangible asset(2) | — |  |  | (674) |
Amortization | (10,647) |  |  | (12,122) |
Balance, end of period | 119,715 |  |  | 93,862 |
Books of business and other intangibles: |  |  |
Balance, beginning of year | 12,373 |  |  | 13,747 |
Acquisitions(3) | 2,131 |  |  | — |
Amortization | (1,160) |  |  | (1,374) |
Balance, end of period | 13,344 |  |  | 12,373 |
Total other intangible assets, net | $ | 133,059 |  |  | $ | 106,235 |
_________________________ (1) A core deposit premium of $36.5 million was recorded during 2022 as part of the Spirit acquisition. Core deposit premiums of $5.1 million and $4.2 million were recorded during 2021 as part of the Triumph and Landmark acquisitions, respectively. See Note 2, Acquisitions, for additional information on acquisitions. (2) Adjustments recorded for the premiums on certain deposit liabilities associated with the sale of banking operations. (3) The Company recorded $2.1 million during 2022 related to servicing assets acquired as part of the Spirit acquisition. See Note 2, Acquisitions, for additional information on acquisitions. The carrying basis and accumulated amortization of the Company’s other intangible assets at September 30, 2022 and December 31, 2021 were as follows:
| September 30, |  | December 31,
(In thousands) | 2022 |  | 2021
Core deposit premiums: |  |  |
Gross carrying amount | $ | 189,996 |  |  | $ | 153,496 |
Accumulated amortization | (70,281) |  |  | (59,634) |
Core deposit premiums, net | 119,715 |  |  | 93,862 |
Books of business and other intangibles: |  |  |
Gross carrying amount | 22,068 |  |  | 19,937 |
Accumulated amortization | (8,724) |  |  | (7,564) |
Books of business and other intangibles, net | 13,344 |  |  | 12,373 |
Total other intangible assets, net | $ | 133,059 |  |  | $ | 106,235 |
The Company’s estimated remaining amortization expense on other intangible assets as of September 30, 2022 is as follows:
(In thousands) | Year |  | Amortization Expense
| Remainder of 2022 |  | $ | 4,108 |
| 2023 |  | 16,306 |
| 2024 |  | 15,403 |
| 2025 |  | 12,819 |
| 2026 |  | 12,346 |
| Thereafter |  | 72,077 |
| Total |  | $ | 133,059 |

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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 https://asc.fasb.org/topic&trid=2144416 + Details
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