XML 24 R13.htm IDEA: XBRL DOCUMENT v3.21.2
Goodwill and Other Intangible Assets
 9 Months Ended
Sep. 30, 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 nine months ended September 30, 2021 were as follows:
(Dollars in thousands)BankingWealth ManagementInsuranceConsolidated
Balance at December 31, 2020$138,476 $15,434 $18,649 $172,559 
Addition to goodwill from acquisitions— — — — 
Balance at September 30, 2021$138,476 $15,434 $18,649 $172,559 

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

At September 30, 2021At December 31, 2020
(Dollars in thousands)Gross Carrying Amount
Accumulated Amortization (1)
Net Carrying AmountGross Carrying Amount
Accumulated Amortization (1)
Net Carrying Amount
Amortized intangible assets:
Core deposit intangibles$6,788 $5,277 $1,511 $6,788 $4,787 $2,001 
Customer related intangibles6,017 5,779 238 7,604 7,147 457 
Servicing rights25,679 18,069 7,610 22,354 15,946 6,408 
Total amortized intangible assets$38,484 $29,125 $9,359 $36,746 $27,880 $8,866 
(1) Included within accumulated amortization is a valuation allowance of $18 thousand and $87 thousand on mortgage servicing rights at September 30, 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$214 
2022666 
2023409 
2024267 
2025145 
Thereafter48 
Total$1,749 
The aggregate fair value of mortgage servicing rights was $10.1 million and $6.7 million at September 30, 2021 and December 31, 2020, respectively. The fair value of mortgage servicing rights was determined using a discount rate of 10.0% at September 30, 2021 and December 31, 2020.
Changes in the servicing rights balance are summarized as follows:
 Three Months Ended September 30,Nine Months Ended September 30,
(Dollars in thousands)2021202020212020
Beginning of period$7,433 $6,081 $6,408 $6,626 
Servicing rights capitalized872 900 3,325 2,261 
Amortization of servicing rights(678)(834)(2,192)(2,402)
Changes in valuation allowance(17)132 69 (206)
End of period$7,610 $6,279 $7,610 $6,279 
Loans serviced for others$1,326,364 $1,167,316 $1,326,364 $1,167,316 

Activity in the valuation allowance for mortgage servicing rights was as follows:
 Three Months Ended September 30,Nine Months Ended September 30,
(Dollars in thousands)2021202020212020
Valuation allowance, beginning of period$(1)$(338)$(87)$— 
Additions(17)— — (206)
Reductions— 132 69 — 
Valuation allowance, end of period$(18)$(206)$(18)$(206)

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$1,426 
20221,174 
2023964 
2024790 
2025646 
Thereafter2,610 
Total$7,610