Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2024

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. Changes in the carrying amount of the Corporation's goodwill by business segment for the three months ended March 31, 2024 were as follows:

(Dollars in thousands)	Banking		Wealth Management		Insurance		Consolidated
Balance at December 31, 2023	$	138,476	$	15,434	$	21,600	$	175,510
Addition to goodwill from acquisitions	—		—		—		—
Balance at March 31, 2024	$	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 following table reflects the components of intangible assets at the dates indicated:

	At March 31, 2024						At December 31, 2023
(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	$	6,408	$	380	$	6,788	$	6,329	$	459
Customer related intangibles	2,476		1,064		1,412		4,162		2,653		1,509
Servicing rights	10,539		4,858		5,681		30,850		21,868		8,982
Total amortized intangible assets	$	19,803	$	12,330	$	7,473	$	41,800	$	30,850	$	10,950

(1) Included within accumulated amortization is a valuation allowance of $18 thousand and $98 thousand on servicing rights at March 31, 2024 and December 31, 2023, respectively.

The estimated aggregate amortization expense for core deposit and customer-related intangibles for the remainder of 2024 and the succeeding fiscal years is as follows:

Year	(Dollars in thousands)	Amount
Remainder of 2024		$	472
2025		469
2026		319
2027		216
2028		161
Thereafter		155
Total		$	1,792

The aggregate fair value of servicing rights was $10.4 million and $17.7 million at March 31, 2024 and December 31, 2023, respectively. The fair value of these rights was determined using a discount rate of 12.5% and 12.3% at March 31, 2024 and December 31, 2023, respectively. The change in the fair value of servicing rights from December 31, 2023 was primarily related to the sale of servicing rights in the quarter.

Changes in the servicing rights balance are summarized as follows:

	Three Months Ended March 31,
(Dollars in thousands)	2024		2023
Beginning of period	$	8,982	$	8,572
Servicing rights capitalized	426		277
Amortization of servicing rights	(341)		(354)
Sold servicing rights	(3,466)		—
Changes in valuation allowance	80		(35)
End of period	$	5,681	$	8,460
Loans serviced for others	$	1,480,074	$	1,496,319

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

	Three Months Ended March 31,
(Dollars in thousands)	2024		2023
Valuation allowance, beginning of period	$	(98)	$	(5)
Additions	—		(35)
Reductions	80		—
Valuation allowance, end of period	$	(18)	$	(40)

The estimated amortization expense of servicing rights for the remainder of 2024 and the succeeding fiscal years is as follows:

Year	(Dollars in thousands)	Amount
Remainder of 2024		$	795
2025		692
2026		601
2027		521
2028		453
Thereafter		2,619
Total		$	5,681