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Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2020

Goodwill and Other Intangible Assets

Note 7. Goodwill and Other Intangible Assets

Other than goodwill, the Company does not have any other intangible assets that are not amortized. The Company’s goodwill is associated with its three operating segments, Banking, Remittance Processing, and Wealth Management. Goodwill is tested annually for impairment, and as part of this analysis, the reporting unit's carrying value is compared to its estimated fair value. Based on the impairment testing performed at December 31, 2020, there were no indicators of potential impairment based on the estimated fair value of those operating segments. All three operating segments have sustained quarterly and annual earnings.

During 2020, the Company recorded, in the Wealth Management operating segment, other intangible assets totaling $0.4 million in connection with an asset acquisition. During 2019, the Company recorded, in the Banking operating segment, goodwill totaling $41.4 million and other intangible assets totaling $27.2 million in connection with the acquisition of Banc Ed. In addition, $5.4 million of other intangible assets was recorded in the Wealth Management operating segment in 2019 in connection with the acquisition of Banc Ed. Further, in 2019 the Company recorded, in the Wealth Management operating segment, goodwill totaling $2.4 million and other intangible assets totaling $5.7 million relating to the acquisition of IST.

The carrying amount of goodwill by operating segment, at December 31, 2020 and 2019 is as follows (dollars in thousands):


	As of December 31,
	2020		2019
Goodwill:
Banking	$	288,436	$	288,436
Remittance Processing		8,992		8,992
Wealth Management		14,108		14,108
Total goodwill	$	311,536	$	311,536

Core deposit and customer relationship intangible assets are amortized over the estimated period benefited. Intangible asset disclosures are as follows (dollars in thousands):


	As of and for the Years Ended December 31,
	2020						2019
			Customer						Customer
	Core deposit		relationship				Core deposit		relationship
	intangible		intangible		Total		intangible		intangible		Total
Intangible assets, gross	$	90,256	$	24,608	$	114,864	$	90,256	$	24,208	$	114,464
Accumulated amortization		46,909		15,970		62,879		39,156		13,715		52,871
Intangible assets, net	$	43,347	$	8,638	$	51,985	$	51,100	$	10,493	$	61,593

Amortization expense	$	7,753	$	2,255	$	10,008	$	7,963	$	1,584	$	9,547

Future expense for the amortization of intangible assets, as estimated at December 31, 2020, is summarized in the table below for the periods presented (dollars in thousands):


			Customer
	Core deposit		relationship
Estimated amortization expense at December 31, 2020:	intangible		intangible		Total
2021	$	7,259	$	2,060	$	9,319
2022		6,749		1,797		8,546
2023		6,226		1,469		7,695
2024		5,686		1,141		6,827
2025		4,915		879		5,794
Thereafter		12,512		1,292		13,804
Total estimated amortization expense	$	43,347	$	8,638	$	51,985