GOODWILL AND OTHER INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill. Assets and liabilities acquired in a business combination are recorded at their estimated fair values as of the acquisition date. The excess of the purchase price of the acquisition over the fair value of net assets acquired is recorded as goodwill.

Changes in the carrying amount of goodwill for the three months ended March 31, 2022 and March 31, 2021 were as follows:


	Three months ended
	March 31,
(Dollars in thousands)		2022		2021
Balance at beginning of period		$	1,000,749	$	937,771
Goodwill resulting from business combinations		(790)		0
Balance at end of period		$	999,959	$	937,771

In December 2021, First Financial recorded $63.0 million of goodwill resulting from the acquisition of Summit Funding Group, Inc. In the first quarter of 2022, First Financial recorded an adjustment of $0.8 million to goodwill from the Summit merger. The fair value measurements of Summit's assets and liabilities are subject to refinement for up to one year after the closing date of the acquisition as additional information relative to closing date fair values become available, and the measurement period ends in December 2022. For further detail on various mergers or acquisitions, see Note 18 - Business Combinations.

Goodwill is evaluated for impairment on an annual basis as of October 1 of each year, or whenever events or changes in circumstances indicate that the fair value of a reporting unit may be below its carrying value. First Financial performed its most recent annual impairment test as of October 1, 2021 and no impairment was indicated. As of March 31, 2022, no events or changes in circumstances indicated that the fair value of the reporting unit was below its carrying value.

Other intangible assets. Other intangible assets consist primarily of core deposit, customer list and other miscellaneous intangibles, such as purchase commissions, non-compete agreements and trade name intangibles.

Core deposit intangibles represent the estimated fair value of acquired customer deposit relationships on the date of acquisition and are amortized on an accelerated basis over their estimated useful lives. First Financial's core deposit intangibles have an estimated weighted average remaining life of 6.0 years.

First Financial recorded a customer list intangible asset in conjunction with the Summit acquisition to account for the obligation or advantage on the part of either the Company or the customer to continue the pre-existing relationship subsequent to the merger. The customer list intangible asset is being amortized on a straight-line basis over its estimated useful life of 12 years and was $29.5 million and $30.1 million at March 31, 2022 and December 31, 2021, respectively. Additionally, First Financial recorded a customer list intangible asset in conjunction with the Bannockburn acquisition which is being amortized on a straight-line basis over its estimated useful life of 11 years. The Bannockburn customer list net intangible asset was $30.2 million and $31.1 million at March 31, 2022 and December 31, 2021, respectively.

Amortization expense recognized on intangible assets for the three months ended March 31, 2022 and March 31, 2021 was $2.9 million and $2.5 million, respectively.

The gross carrying amount and accumulated amortization of other intangible assets at March 31, 2022 and December 31, 2021 were as follows:


(Dollars in thousands)	March 31, 2022				December 31, 2021
	Gross carrying amount		Accumulated amortization		Gross carrying amount		Accumulated amortization
Amortized intangible assets
Core deposit intangibles	$	45,256	$	(27,710)	$	45,256	$	(26,911)
Customer list	69,563		(9,886)		69,563		(8,362)
Other	14,589		(5,921)		14,589		(5,237)


Total	$	129,408	$	(43,517)	$	129,408	$	(40,510)