Goodwill And Other Intangible Assets

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill And Other Intangible Assets

Goodwill and Other Intangible Assets

The following table presents information about the Company's intangible assets which have estimable useful lives.

	June 30, 2023								December 31, 2022
(In thousands)	Gross Carrying Amount		Accumulated Amortization		Valuation Allowance		Net Amount		Gross Carrying Amount		Accumulated Amortization		Valuation Allowance		Net Amount
Amortizable intangible assets:
Core deposit premium	$	5,550	$	(4,977)	$	—	$	573	$	31,270	$	(30,565)	$	—	$	705
Mortgage servicing rights	22,328		(11,835)		—		10,493		22,187		(11,258)		—		10,929
Total	$	27,878	$	(16,812)	$	—	$	11,066	$	53,457	$	(41,823)	$	—	$	11,634

Aggregate amortization expense on intangible assets was $353 thousand and $501 thousand for the three month periods ended June 30, 2023 and 2022, respectively, and $709 thousand and $1.1 million for the six month periods ended June 30, 2023 and 2022, respectively. The following table shows the estimated annual amortization expense for the next five fiscal years. This expense is based on existing asset balances and the interest rate environment as of June 30, 2023. The Company’s actual amortization expense in any given period may be different from the estimated amounts depending upon the acquisition of intangible assets, changes in mortgage interest rates, prepayment rates and other market conditions.

(In thousands)
2023	$	1,388
2024	1,276
2025	1,130
2026	988
2027	851

During the first quarter of 2023, the Company wrote off $25.7 million of core deposit intangible assets that were fully amortized. During the second quarter of 2023, the Company acquired L.J. Hart & Company, a municipal bond underwriter and advisor, and the acquisition resulted in goodwill of $7.5 million. Changes in the carrying amount of goodwill and other intangible assets for the six month period ended June 30, 2023 are as follows:

(In thousands)	Goodwill		Easement		Core Deposit Premium		Mortgage Servicing Rights
Balance January 1, 2023	$	138,921	$	3,600	$	705	$	10,929
Acquisition	7,450		—		—		—
Originations, net of disposals	—		—		—		141
Amortization	—		—		(132)		(577)
Balance June 30, 2023	$	146,371	$	3,600	$	573	$	10,493

Goodwill allocated to the Company’s operating segments at June 30, 2023 and December 31, 2022 is shown below.

(In thousands)	June 30, 2023		December 31, 2022
Consumer segment	$	70,721	$	70,721
Commercial segment	74,904		67,454
Wealth segment	746		746
Total goodwill	$	146,371	$	138,921