Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

The Corporation has core deposit and customer-related intangibles and servicing rights, which are not deemed to have an indefinite life and therefore will continue to be amortized over their useful life using the present value of projected cash flows. The amortization of intangible assets for the years ended December 31, 2019, 2018 and 2017 was $3.5 million, $3.4 million and $4.2 million, respectively.

The Corporation also has goodwill which is deemed to be an indefinite intangible asset and is not amortized. In accordance with ASC Topic 350, the Corporation performed a qualitative assessment of goodwill during the fourth quarter of 2019 and determined it was more likely than not that the fair value of the Corporation, including each of the identified reporting units, was more than its carrying amount; therefore, the Corporation did not need to perform the two-step impairment test for the Corporation or the reporting units.

The Corporation also completed an impairment test for other intangible assets during the fourth quarter of 2019. There was no impairment of goodwill or other identifiable intangibles recorded during 2017 through 2019.

Changes in the carrying amount of the Corporation's goodwill by business segment for the years ended December 31, 2019 and 2018 were as follows:

(Dollars in thousands)	Banking		Wealth Management		Insurance		Consolidated
Balance at December 31, 2017	$	138,476	$	15,434	$	18,649	$	172,559
Addition to goodwill from acquisitions	—		—		—		—
Balance at December 31, 2018	138,476		15,434		18,649		172,559
Addition to goodwill from acquisitions	—		—		—		—
Balance at December 31, 2019	$	138,476	$	15,434	$	18,649	$	172,559

The following table reflects the components of intangible assets at the dates indicated:

	At December 31, 2019						At December 31, 2018
(Dollars in thousands)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Amortized intangible assets:
Covenants not to compete	$	—	$	—	$	—	$	710	$	710	$	—
Core deposit intangibles	6,788		4,026		2,762		6,788		3,143		3,645
Customer related intangibles	8,819		7,923		896		12,381		10,804		1,577
Servicing rights	19,160		12,534		6,626		17,314		10,546		6,768
Total amortized intangible assets	$	34,767	$	24,483	$	10,284	$	37,193	$	25,203	$	11,990

The estimated aggregate amortization expense for core deposit and customer-related intangibles for each of the five succeeding fiscal years and thereafter follows:

Year	(Dollars in thousands)	Amount
2020		$	1,200
2021		923
2022		666
2023		409
2024		267
Thereafter		193

The aggregate fair value of mortgage servicing rights was $9.2 million and $11.5 million at December 31, 2019 and 2018, respectively. The fair value of these rights was determined using a discount rate of 10.0% at December 31, 2019 and 2018.

Changes in the servicing rights balance are summarized as follows:

	For the Years Ended December 31,
(Dollars in thousands)	2019		2018		2017
Beginning of period	$	6,768	$	6,573	$	6,485
Servicing rights capitalized	1,787		1,458		1,487
Amortization of servicing rights	(1,929)		(1,263)		(1,399)
End of period	$	6,626	$	6,768	$	6,573
Loans serviced for others	$	1,080,905	$	1,031,506	$	1,008,123

There was no valuation allowance for mortgage servicing rights at December 31, 2019, 2018 and 2017.

The estimated amortization expense of servicing rights for each of the five succeeding fiscal years and thereafter is as follows:

Year	(Dollars in thousands)	Amount
2020		$	1,173
2021		979
2022		814
2023		674
2024		557
Thereafter		2,429