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Goodwill and Other Intangible Assets | 9 Months Ended
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Sep. 30, 2023
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 $1.32 billion at September 30, 2023 and December 31, 2022. Goodwill impairment was neither indicated nor recorded during the nine months ended September 30, 2023 or the year ended December 31, 2022. During March of 2023, the Company’s share price began to decline as markets in the United States (“US”) responded to the sudden collapse of two US banks. As a result of the decrease in the Company’s market capitalization, the Company performed an interim goodwill impairment qualitative assessment during the first quarter of 2023 and concluded that it was more likely-than-not that the fair value of goodwill continued to exceed its carrying value and therefore, goodwill was not impaired. During the second quarter of 2023, 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 2023, 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, 2023, 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 8 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, 2023 and December 31, 2022 were as follows:
| September 30, |  | December 31,
(In thousands) | 2023 |  | 2022
Core deposit premiums: |  |  |
Balance, beginning of year | $ | 116,016 |  |  | $ | 93,862 |
Acquisitions(1) | — |  |  | 36,500 |
Amortization | (11,066) |  |  | (14,346) |
Balance, end of period | 104,950 |  |  | 116,016 |
Books of business and other intangibles: |  |  |
Balance, beginning of year | 12,935 |  |  | 12,373 |
Acquisitions(2) | — |  |  | 2,131 |
Amortization | (1,225) |  |  | (1,569) |
Balance, end of period | 11,710 |  |  | 12,935 |
Total other intangible assets, net | $ | 116,660 |  |  | $ | 128,951 |
_________________________ (1) A core deposit premium of $36.5 million was recorded during 2022 as part of the Spirit acquisition. See Note 2, Acquisitions, for additional information. (2) 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. The carrying basis and accumulated amortization of the Company’s other intangible assets at September 30, 2023 and December 31, 2022 were as follows:
| September 30, |  | December 31,
(In thousands) | 2023 |  | 2022
Core deposit premiums: |  |  |
Gross carrying amount | $ | 187,467 |  |  | $ | 189,996 |
Accumulated amortization | (82,517) |  |  | (73,980) |
Core deposit premiums, net | 104,950 |  |  | 116,016 |
Books of business and other intangibles: |  |  |
Gross carrying amount | 22,068 |  |  | 22,068 |
Accumulated amortization | (10,358) |  |  | (9,133) |
Books of business and other intangibles, net | 11,710 |  |  | 12,935 |
Total other intangible assets, net | $ | 116,660 |  |  | $ | 128,951 |
The Company’s estimated remaining amortization expense on other intangible assets as of September 30, 2023 is as follows:
(In thousands) | Year |  | Amortization Expense
| Remainder of 2023 |  | $ | 4,015 |
| 2024 |  | 15,403 |
| 2025 |  | 12,819 |
| 2026 |  | 12,346 |
| 2027 |  | 12,218 |
| Thereafter |  | 59,859 |
| Total |  | $ | 116,660 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 350 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//350/tableOfContent + Details
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