Goodwill and Other Intangibles and Mortgage Servicing Rights (Tables)

3 Months Ended

Mar. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of goodwill and intangible assets

A summary of goodwill and other intangibles was as follows.

	Three Months Ended		Year Ended
(in thousands)	March 31, 2021		December 31, 2020
Goodwill	$	163,151	$	163,151
Core deposit intangibles	8,112		8,837
Customer list intangibles	3,238		3,365
Other intangibles	11,350		12,202
Goodwill and other intangibles, net	$	174,501	$	175,353

Schedule of goodwill

A summary of goodwill was as follows. During 2020, goodwill increased due to the Advantage acquisition. See Note 2 for additional information on the Company’s acquisitions.

	Three Months Ended		Year Ended
(in thousands)	March 31, 2021		December 31, 2020
Goodwill:
Goodwill at beginning of year	$	163,151	$	151,198
Acquisition	—		11,953
Goodwill at end of period	$	163,151	$	163,151

Schedule of other intangible assets

	Three Months Ended		Year Ended
(in thousands)	March 31, 2021		December 31, 2020
Core deposit intangibles:
Gross carrying amount	$	31,715	$	31,715
Accumulated amortization	(23,603)		(22,878)
Net book value	$	8,112	$	8,837
Additions during the period	$	—	$	1,000
Amortization during the period	$	725	$	3,060
Customer list intangibles:
Gross carrying amount	$	5,523	$	5,523
Accumulated amortization	(2,285)		(2,158)
Net book value	$	3,238	$	3,365
Amortization during the period	$	127	$	507

Schedule of mortgage servicing rights

A summary of the changes in the mortgage servicing rights asset was as follows.

	Three Months Ended			Year Ended
(in thousands)	March 31, 2021			December 31, 2020
Mortgage servicing rights ("MSR") asset:
MSR asset at beginning of year	$	10,230		$	5,919
Capitalized MSR	1,117			5,256
MSR asset acquired	—			529
Amortization during the period	(496)			(1,474)
MSR asset at end of period	$	10,851		$	10,230
Valuation allowance at beginning of year	$	(1,000)		$	—
Additions	(500)			(1,000)
Valuation allowance at end of period	$	(1,500)		$	(1,000)
MSR asset, net	$	9,351		$	9,230
Fair value of MSR asset at end of period	$	10,550		$	9,276
Residential mortgage loans serviced for others	$	1,293,845		$	1,250,206
Net book value of MSR asset to loans serviced for others	0.72		%	0.74		%

Schedule of estimated future amortization expense for amortizing intangible assets and the MSR asset

The following table shows the estimated future amortization expense for amortizing intangible assets and the MSR asset. The projections are based on existing asset balances, the current interest rate environment and prepayment speeds as of March 31, 2021. The actual amortization expense the Company recognizes in any given period may be significantly different depending upon acquisition or sale activities, changes in interest rates, prepayment speeds, market conditions, regulatory requirements and events or circumstances that indicate the carrying amount of an asset may not be recoverable.

(in thousands)	Core deposit intangibles		Customer list intangibles		MSR asset
Year ending December 31,
2021 (remaining nine months)	$	1,918	$	380	$	1,381
2022	2,150		507		1,869
2023	1,633		483		1,773
2024	1,130		449		1,448
2025	670		449		961
2026	317		249		960
Thereafter	294		721		2,459
Total	$	8,112	$	3,238	$	10,851