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Goodwill and Other Intangible Assets
 9 Months Ended
Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets
Goodwill
The following table details changes in the recorded amount of goodwill:
(Dollars in thousands)September 30, 2022December 31, 2021
Goodwill, beginning of year$264,193 $171,260 
Goodwill recorded from acquisitions28,204 92,933 
Goodwill, end of period$292,397 $264,193 
On March 11, 2022, Peoples Insurance Agency, LLC ("Peoples Insurance") entered into an Asset Purchase Agreement with Elite Agency, Inc. ("Elite"), and consummated the acquisition on April 1, 2022. In the second quarter of 2022, Peoples preliminarily recorded $2.3 million of goodwill related to this acquisition. Peoples Bank entered into an Asset Purchase Agreement, dated March 7, 2022 with Vantage, at which point Vantage became a legal subsidiary of Peoples Bank. In the first nine months of 2022, Peoples preliminarily recorded $27.2 million of goodwill related to this acquisition, which was offset partially by adjustments of $1.2 million to the goodwill balance related to the Premier Merger during the measurement period. On April 1, 2021, Peoples recorded $24.7 million of goodwill related to the acquisition of NS Leasing, LLC ("NSL"). On May 4, 2021, Peoples Insurance recorded $46,000 of goodwill from the acquisition of an insurance agency. On September 17, 2021, Peoples completed the merger with Premier, for which Peoples recorded $66.9 million of goodwill. For additional information on these acquisitions, refer to "Note 13 Acquisitions."
Other Intangible Assets
Other intangible assets were comprised of the following at September 30, 2022, and at December 31, 2021:
(Dollars in thousands)Core DepositsCustomer RelationshipsTotal
September 30, 2022
Gross intangibles$26,464 $25,173 $51,637 
Intangibles recorded from acquisitions (a)— 14,067 14,067 
Accumulated amortization(20,286)(13,795)(34,081)
Total acquisition-related intangibles$6,178 $25,445 $31,623 
Servicing rights1,917 
Indefinite-lived intangibles (b)2,491 
Total other intangibles$36,031 
December 31, 2021
Gross intangibles$22,233 $12,495 $34,728 
Intangibles recorded from acquisitions (c)4,233 13,014 17,247 
Accumulated amortization(19,048)(9,603)(28,651)
Total acquisition-related intangibles$7,418 $15,906 $23,324 
Servicing rights2,218 
Indefinite-lived intangibles (d)1,274 
Total other intangibles$26,816 
(a) Customer relationship intangible assets included $1.2 million of non-compete intangible assets related to the Vantage acquisition and
$0.1 million of non-compete intangible assets related to the Elite acquisition.
(b) Included $1.2 million of trade name intangible assets related to the Vantage acquisition and $1.3 million of trade name
intangible assets related to the NSL acquisition.
(c) Customer relationship intangible assets consisted of $0.3 million of non-compete intangible assets related to the NSL acquisition.
(d) Included $1.3 million of trade name intangible assets related to the NSL acquisition.
Other intangible assets preliminarily recorded for the nine months ended September 30, 2022 included $10.8 million of customer relationship intangible assets, and $1.2 million of non-compete intangible assets related to the Vantage acquisition. Peoples also recorded $2.0 million of customer relationship intangible assets and $0.1 million of non-compete intangible assets related to the acquisition of Elite.
Other intangible assets recorded in 2021 included $12.7 million of customer relationship intangible assets related to the NSL acquisition, $4.2 million of core deposit intangible assets related to the Premier merger, and $0.3 million of non-compete intangible assets, and $1.3 million of trade name intangible assets, both related to the NSL acquisition. Refer to "Note 13 Acquisitions" for additional information.
The following table details estimated aggregate future amortization of other intangible assets at September 30, 2022:
(Dollars in thousands)Core DepositsCustomer RelationshipsTotal
Remaining three months of 2022$382 $1,617 $1,999 
20231,257 6,269 7,526 
20241,058 5,325 6,383 
2025891 4,255 5,146 
2026731 3,114 3,845 
Thereafter1,859 4,865 6,724 
Total$6,178 $25,445 $31,623 
The weighted average amortization period of other intangible assets is 9.8 years.
Servicing Rights
The following is an analysis of activity of servicing rights for the periods ended September 30, 2022 and December 31, 2021:
(Dollars in thousands)September 30, 2022December 31, 2021
Balance, beginning of year$2,218 $2,486 
Amortization(460)(775)
Servicing rights originated153 519 
Change in valuation allowance6 (12)
Balance, end of period$1,917 $2,218 
Peoples accounts for its servicing rights under the amortization method, recognizing a valuation allowance when amortized cost exceeds fair value. As of September 30, 2022, Peoples recorded a reduction to the valuation allowance of $6,000 related to changes in the fair value of servicing rights. During 2021, Peoples had recorded a valuation allowance of $12,000 related to the decrease in the fair value of servicing rights.
The following is the breakdown of the discount rates and prepayment speeds of servicing rights for the periods ended September 30, 2022 and December 31, 2021:
September 30, 2022December 31, 2021
Minimum MaximumMinimumMaximum
Discount rates11.3 %13.8 %8.3 %10.8 %
Prepayment speeds7.7 %20.0 %8.9 %27.1 %
The fair value of servicing rights was $3.5 million and $2.6 million at September 30, 2022 and December 31, 2021, respectively.