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Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2021

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, FirsTech, 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, 2021, there were no indicators of potential impairment based on the estimated fair value of those operating segments. All three operating segments have produced quarterly and annual earnings.

During 2021, in connection with the acquisition of CAC, the company recorded goodwill totaling $6.3 million and other intangible assets totaling $8.8 million in the Banking operating segment, as well as other intangible assets totaling $8.5 million in the Wealth Management segment. During 2020, the Company recorded other intangible assets totaling $0.4 million in the Wealth Management operating segment in connection with an asset acquisition.

The carrying amount of goodwill by operating segment is as follows (dollars in thousands):


	As of December 31,
	2021		2020
Goodwill
Banking	$	294,773	$	288,436
FirsTech		8,992		8,992
Wealth Management		14,108		14,108
Total goodwill	$	317,873	$	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,
	2021						2020
			Customer						Customer
	Core deposit		relationship				Core deposit		relationship
	intangible		intangible		Total		intangible		intangible		Total
Intangibles
Intangible assets, gross	$	99,065	$	33,138	$	132,203	$	90,256	$	24,608	$	114,864
Accumulated amortization		55,161		18,991		74,152		46,909		15,970		62,879
Intangible assets, net	$	43,904	$	14,147	$	58,051	$	43,347	$	8,638	$	51,985

Amortization expense	$	8,253	$	3,021	$	11,274	$	7,753	$	2,255	$	10,008

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


	As of December 31, 2021
			Customer
	Core deposit		relationship
	intangible		intangible		Total
Estimated amortization expense
2022	$	8,315	$	3,313	$	11,628
2023		7,616		2,816		10,432
2024		6,902		2,318		9,220
2025		5,956		1,887		7,843
2026		5,227		1,479		6,706
Thereafter		9,888		2,334		12,222
Total estimated amortization expense	$	43,904	$	14,147	$	58,051