Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2023

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. In accordance with ASC Topic 350, goodwill is tested at least annually for impairment at the reporting unit level. The Corporation performs an annual test of goodwill for impairment during the fourth quarter of each year. The Corporation concluded there was no impairment of goodwill during 2021 through 2023.

Changes in the carrying amount of the Corporation's goodwill by business segment for the years ended December 31, 2023 and 2022 were as follows:

(Dollars in thousands)	Banking		Wealth Management		Insurance		Consolidated
Balance at December 31, 2021	$	138,476	$	15,434	$	21,600	$	175,510
Addition to goodwill from acquisitions	—		—		—		—
Balance at December 31, 2022	138,476		15,434		21,600		175,510
Addition to goodwill from acquisitions	—		—		—		—
Balance at December 31, 2023	$	138,476	$	15,434	$	21,600	$	175,510

The Corporation also has core deposit and customer-related intangibles, 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 Corporation also performs an annual test of core deposit and customer-related intangibles for impairment during the fourth quarter of each year. The Corporation concluded there was no impairment of core deposit and customer-related intangibles during 2021 through 2023.

The amortization of core deposit and customer-related intangibles for the years ended December 31, 2023, 2022 and 2021 was $845 thousand, $1.2 million and $965 thousand, respectively.

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

	At December 31, 2023						At December 31, 2022
(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	$	6,329	$	459	$	6,788	$	5,939	$	849
Customer-related intangibles	4,162		2,653		1,509		8,493		6,530		1,963
Servicing rights	30,850		21,868		8,982		28,904		20,332		8,572
Total amortized intangible assets	$	41,800	$	30,850	$	10,950	$	44,185	$	32,801	$	11,384

(1) Included within accumulated amortization is a valuation allowance of $98 thousand and $5 thousand on servicing rights at December 31, 2023 and 2022, respectively.

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
2024		$	648
2025		469
2026		319
2027		216
2028		161
Thereafter		155
Total		$	1,968

The aggregate fair value of servicing rights was $17.7 million and $16.8 million at December 31, 2023 and 2022, respectively. The fair value of these rights was determined using a discount rate of 12.3% at December 31, 2023 and a range of 10.1% to 12.0% at December 31, 2022.

Changes in the servicing rights balance are summarized as follows:

	For the Years Ended December 31,
(Dollars in thousands)	2023		2022		2021
Beginning of period	$	8,572	$	7,878	$	6,408
Servicing rights capitalized	1,946		2,344		4,206
Amortization of servicing rights	(1,443)		(1,658)		(2,810)
Changes in valuation allowance	(93)		8		74
End of period	$	8,982	$	8,572	$	7,878
Loans serviced for others	$	1,630,032	$	1,503,149	$	1,428,020

Activity in the valuation allowance for servicing rights are summarized as follows:

	For the Years Ended December 31,
(Dollars in thousands)	2023		2022		2021
Valuation allowance, beginning of period	$	(5)	$	(13)	$	(87)
Additions	(93)		—		—
Reductions	—		8		74
Valuation allowance, end of period	$	(98)	$	(5)	$	(13)

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

Year	(Dollars in thousand)	Amount
2024		$	1,168
2025		1,035
2026		914
2027		806
2028		631
Thereafter		4,428
Total		$	8,982