XML 23 R13.htm IDEA: XBRL DOCUMENT
v3.23.1

Goodwill and Other Intangible Assets | 3 Months Ended
--- | ---
Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The following is a summary of the gross carrying amount and accumulated amortization of amortizable intangible assets as of March 31, 2023 and December 31, 2022, and the carrying amount of unamortized intangible assets as of those same dates.
|  | March 31, 2023 |  | December 31, 2022
($ in thousands) |  | Gross Carrying Amount |  | Accumulated Amortization |  | Gross Carrying Amount |  | Accumulated Amortization
Amortizable intangible assets: |  |  |  |  |  |  |  |
Customer lists |  | $ | 2,700 |  |  | 1,927 |  |  | 2,700 |  |  | 1,847 |
Core deposit intangibles |  | 57,890 |  |  | 23,334 |  |  | 29,050 |  |  | 21,274 |
SBA servicing assets |  | 13,342 |  |  | 9,445 |  |  | 13,264 |  |  | 9,260 |
Other |  | 100 |  |  | 64 |  |  | 100 |  |  | 58 |
Total |  | $ | 74,032 |  |  | 34,770 |  |  | 45,114 |  |  | 32,439 |
Unamortizable intangible assets: |  |  |  |  |  |  |  |
Goodwill |  | $ | 478,750 |  |  |  |  | 364,263 |  |  |
Customer lists are generally amortized over five years and core deposit intangibles are generally amortized over 10 years, both at an accelerated rate. Amortization expense of all other intangible assets, excluding the SBA servicing assets, totaled $2.1 million and $1.0 million for the three months ended March 31, 2023 and 2022, respectively. SBA servicing assets are recorded for the portions of SBA loans that the Company has sold but continues to service for a fee. Servicing assets are initially recorded at fair value and amortized over the expected lives of the related loans and are tested for impairment on a quarterly basis. SBA servicing asset amortization expense is recorded within noninterest income as an offset to SBA servicing fees within the line item "Other service charges, commissions, and fees." The following table presents the changes in the SBA servicing assets for the three months ended March 31, 2023 and 2022:
|  | Three months ended March 31, |  |
($ in thousands) |  | 2023 |  | 2022 |  |  |  |
Beginning balance, net |  | $ | 4,004 |  |  | 5,472 |  |  |  |  |
Add: New servicing assets |  | 77 |  |  | 745 |  |  |  |  |
Less: Amortization and impairment expense |  | 184 |  |  | 626 |  |  |  |  |
Ending balance, net |  | $ | 3,897 |  |  | 5,591 |  |  |  |  |
During the three months ended March 31, 2023 and 2022, the Company recorded $1.0 million and $0.8 million, respectively, in SBA guarantee servicing income. A t March 31, 2023 and December 31, 2022, the Company serviced SBA loans totali ng $380.6 million a nd $392.4 million, respectively, for others. There were no other loans serviced in any period presented. Goodwill is evaluated for impairment on at least an annual basis, with the annual evaluation occurring as of October 31 of each year. Goodwill is also evaluated for impairment any time there is a triggering event indicating that impairment may have occurred. No triggering events were identified during 2022 or 2021, and therefore, the Company did not perform interim impairment evaluations in either of those years. Each of the Company's goodwill impairment evaluations for the periods presented, including the most recent October 2022 evaluation, indicated that there was no goodwill impairment. The following table presents the changes in carrying amounts of goodwill:
($ in thousands) |  | Total Goodwill
Balance at December 31, 2021 |  | $ | 364,263 |
Net activity during 2022 |  | — |
Balance at December 31, 2022 |  | 364,263 |
Additions from acquisition of GrandSouth |  | 114,487 |
Balance at March 31, 2023 |  | $ | 478,750 |
In connection with the GrandSouth acquisition on January 1, 2023, the Company recorded $28.8 million in core deposit intangibles. The following table presents the estimated amortization expense schedule related to acquisition-related amortizable intangible assets, excluding the SBA servicing assets. These amounts will be recorded as "Intangibles amortization expense" within the noninterest expense section of the Consolidated Statements of Income. These estimates are subject to change in future periods to the extent management determines it is necessary to make adjustments to the carrying value or estimated useful lives of amortized intangible assets.
($ in thousands) |  | Estimated Amortization Expense
April 1, 2023 to December 31, 2023 |  | $ | 5,857 |
2024 |  | 6,604 |
2025 |  | 5,672 |
2026 |  | 4,705 |
2027 |  | 3,951 |
Thereafter |  | 8,576 |
Total |  | $ | 35,365 |

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 -Topic 350 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//350/tableOfContent + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration