Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

The Corporation has goodwill from acquisitions which is deemed to be an indefinite intangible asset and is not amortized. The Corporation also 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.

Changes in the carrying amount of the Corporation's goodwill by business segment for the three months ended March 31, 2021 were as follows:

(Dollars in thousands)	Banking		Wealth Management		Insurance		Consolidated
Balance at December 31, 2020	$	138,476	$	15,434	$	18,649	$	172,559
Addition to goodwill from acquisitions	—		—		—		—
Balance at March 31, 2021	$	138,476	$	15,434	$	18,649	$	172,559

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

	At March 31, 2021						At December 31, 2020
(Dollars in thousands)	Gross Carrying Amount		Accumulated Amortization (1)		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization (1)		Net Carrying Amount
Amortized intangible assets:
Core deposit intangibles	$	6,788	$	4,960	$	1,829	$	6,788	$	4,787	$	2,001
Customer related intangibles	6,017		5,635		381		7,604		7,147		457
Servicing rights	23,667		16,652		7,015		22,354		15,946		6,408
Total amortized intangible assets	$	36,472	$	27,247	$	9,225	$	36,746	$	27,880	$	8,866

(1) Included within accumulated amortization is a valuation allowance of $1 thousand and $87 thousand on mortgage servicing rights at March 31, 2021 and December 31, 2020, respectively.

The estimated aggregate amortization expense for core deposit and customer-related intangibles for the remainder of 2021 and the succeeding fiscal years is as follows:

Year	(Dollars in thousands)	Amount
Remainder of 2021		$	675
2022		666
2023		409
2024		267
2025		144
Thereafter		49
Total		$	2,210

The aggregate fair value of mortgage servicing rights was $9.5 million and $6.7 million at March 31, 2021 and December 31, 2020, respectively. The fair value of mortgage servicing rights was determined using a discount rate of 10.0% at March 31, 2021 and December 31, 2020.

Changes in the servicing rights balance are summarized as follows:

	Three Months Ended March 31,
(Dollars in thousands)	2021		2020
Beginning of period	$	6,408	$	6,626
Servicing rights capitalized	1,313		526
Amortization of servicing rights	(792)		(657)
Changes in valuation allowance	86		(55)
End of period	$	7,015	$	6,440
Loans serviced for others	$	1,255,124	$	1,087,174

Activity in the valuation allowance for mortgage servicing rights was as follows:

	Three Months Ended March 31,
(Dollars in thousands)	2021		2020
Valuation allowance, beginning of period	$	(87)	$	—
Additions	—		(55)
Reductions	86		—
Valuation allowance, end of period	$	(1)	$	(55)

The estimated amortization expense of servicing rights for the remainder of 2021 and the succeeding fiscal years is as follows:

Year	(Dollars in thousands)	Amount
Remainder of 2021		$	1,307
2022		1,077
2023		885
2024		725
2025		593
Thereafter		2,428
Total		$	7,015