Quarterly report pursuant to Section 13 or 15(d)

GOODWILL AND INTANGIBLE ASSETS

v3.24.3
GOODWILL AND INTANGIBLE ASSETS
9 Months Ended
Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND INTANGIBLE ASSETS

5. GOODWILL AND INTANGIBLE ASSETS

The Company’s intangible assets consist of core deposits, goodwill, and other intangibles arising from previous acquisitions. The Company has determined that CDI have finite lives and amortizes them over their estimated useful lives. CDI are being amortized over the period of expected benefit, which ranges from four years to ten years, using an accelerated method. Other amortizable intangible assets are being amortized over the period of expected benefit, which ranges from four years to ten years, using various methods. The Company concluded that there was no impairment to goodwill or intangible assets as of the balance sheet date. In the normal course of business, the Company routinely monitors the impact of the changes in the financial markets and includes these assessments in the Company’s impairment process.

As a result of the American National acquisition, the Company’s associated goodwill at September 30, 2024 totaled $287.5 million. During the quarter ended September 30, 2024, the Company adjusted the American National acquisition allocation of the purchase price for certain provisional amounts recognized at the acquisition date to reflect new information obtained about facts and circumstances that existed as of the acquisition date. The measurement period and reclassification adjustments recorded in this quarter relate to deferred taxes, the fair values of long-term borrowings, and foreclosed properties, which resulted in a $5.2 million increase in the preliminary goodwill recognized during the second quarter of 2024.

The following table provides information on the significant components of goodwill and other acquired intangible assets as of the periods ended (dollars in thousands).

    

Gross

    

Additions:

    

    

Net

Carrying

American National

Accumulated

Carrying

Value

Acquisition (1)

Amortization

Value

September 30, 2024

 

  

 

  

 

  

 

  

Goodwill

$

925,211

$

287,499

$

$

1,212,710

CDI

85,491

74,410

(80,828)

79,073

Other amortizable intangibles

3,977

10,277

(3,151)

11,103

December 31, 2023

 

  

 

  

 

  

 

  

Goodwill

$

925,211

$

$

$

925,211

CDI

85,491

(68,599)

16,892

Other amortizable intangibles

 

3,977

 

 

(1,686)

 

2,291

(1) Includes initial goodwill of $282.3 million and a goodwill adjustment of $5.2 million related to the American National acquisition. Refer to Note 2 “Acquisitions” for more information.

The following table presents the Company’s goodwill and intangible assets by operating segment as of the periods ended (dollars in thousands):

Wholesale Banking

Consumer Banking

Corporate Other

Total

September 30, 2024

 

  

 

  

 

  

  

Goodwill (1)

$

845,239

$

362,245

$

5,226

$

1,212,710

Intangible Assets (2)

 

9,032

 

830

 

80,314

 

90,176

December 31, 2023

 

  

 

  

 

  

 

  

Goodwill

$

639,180

$

286,031

$

$

925,211

Intangible Assets

 

1,302

 

989

 

16,892

 

19,183

(1) Wholesale Banking and Consumer Banking includes gross carrying values of $209.9 million and $77.6 million, respectively, which were added in the second quarter of 2024 related to the American National acquisition. Refer to Note 2 “Acquisitions” for more information.

(2) Wholesale Banking and Corporate Other includes gross carrying values of $8.4 million and $76.3 million, respectively, which were added in the second quarter of 2024 related to the American National acquisition. Refer to Note 2 “Acquisitions” for more information.


Amortization expense of intangibles for the three months ended September 30, 2024 and 2023 totaled $5.8 million and $2.2 million, respectively. Amortization expense of intangibles for the nine months ended September 30, 2024 and 2023 totaled $13.7 million and $6.7 million, respectively. As of September 30, 2024, the estimated remaining amortization expense of intangibles is as follows for the years ending (dollars in thousands):

For the remaining three months of 2024

    

$

5,615

2025

19,950

2026

16,245

2027

12,936

2028

10,151

Thereafter

25,279

Total estimated amortization expense

$

90,176