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Goodwill and Other Intangible Assets
 12 Months Ended
Dec. 31, 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 for the years ended December 31:
(Dollars in thousands)20222021
Goodwill, beginning of year$264,193 $171,260 
Goodwill recorded from acquisitions28,204 92,933 
Goodwill, end of year$292,397 $264,193 
Peoples performed a qualitative assessment of goodwill as of October 1, 2022, and management does not believe it is more likely than not that the fair value of Peoples' reporting unit is less its carrying amount.
On March 11, 2022, Peoples Insurance entered into an Asset Purchase Agreement with Elite, and consummated the acquisition on April 1, 2022. In 2022, Peoples 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. Peoples recorded $27.2 million of goodwill related to this acquisition. During 2022, Peoples also recorded a $1.3 million reduction of the goodwill recognized in the Premier Merger due to changes in the fair value of loans acquired from Premier.
On April 1, 2021, Peoples recorded $24.7 million of goodwill related to the acquisition of 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.
Other intangible assets
Other intangible assets were comprised of the following at December 31:
(Dollars in thousands)Core DepositsCustomer RelationshipsIndefinite-Lived Trade NamesTotal
2022
Gross intangibles$26,464 $25,173 $1,274 $52,911 
Intangibles recorded from acquisitions (a)— 14,067 1,217 15,284 
Accumulated amortization(20,667)(15,412)— (36,079)
Total acquisition-related intangibles$5,797 $23,828 2,491 $32,116 
Servicing rights1,816 
Total other intangibles$33,932 
2021
Gross intangibles$22,233 $12,495 $— $34,728 
Intangibles recorded from acquisitions (a)4,233 13,014 1,27418,521 
Accumulated amortization(19,048)(9,603)— (28,651)
Total acquisition-related intangibles$7,418 $15,906 1,274 $24,598 
Servicing rights2,218 
Total other intangibles$26,816 
(a)Peoples included in customer relationship intangibles an intangible asset related to a non-compete agreement in the
amount of $1.3 million and $0.3 million at December 31, 2022 and December 31, 2021, respectively
Peoples performed other intangible assets impairment testing as of October 1, 2022 and concluded there was no impairment in the recorded value of other intangible assets as of October 1, 2022. During the annual impairment test, Peoples assessed qualitative factors, including relevant events and circumstances, to determine that it was more-likely-than-not that the fair value of other intangible assets exceeded the carrying value.
Other intangible assets recorded from the above-mentioned acquisitions in 2022 were $10.8 million of customer relationship intangible assets, $1.2 million of non-compete intangible assets, and $1.2 million of indefinite-lived trade name 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 20 Acquisitions" for additional information.
The following table details estimated aggregate future amortization of other intangible assets at December 31, 2022:
(Dollars in thousands)Core DepositsCustomer RelationshipsTotal
2023$1,257 $6,269 $7,526 
20241,058 5,325 6,383 
2025891 4,255 5,146 
2026731 3,114 3,845 
2027572 2,289 2,861 
Thereafter1,288 2,576 3,864 
Total$5,797 $23,828 $29,625 
The weighted average amortization period of other intangibles is 7.2 years.
The following is an analysis of activity of servicing rights for the years ended December 31:
(Dollars in thousands)202220212020
Balance, beginning of year$2,218 $2,486 $2,742 
Amortization(594)(936)(1,121)
Servicing rights originated180 519 1,026 
Change in valuation allowance12 149 (161)
Balance, end of year$1,816 $2,218 $2,486 
For the years ended December 31, 2022 and 2021, Peoples recorded reductions of $12,000 and $149,000, respectively, to the valuation allowance due to increases in the fair value of servicing rights. During 2020, Peoples established a valuation allowance of $161,000 related to the decrease in the fair value of servicing rights to less than the carrying value.
The following is the breakdown of the discount rates and prepayment speeds of servicing rights for the years ended December 31:
20222021
Minimum MaximumMinimumMaximum
Discount rates12.5 %15.0 %8.3 %10.8 %
Prepayment speeds6.5 %23.8 %8.9 %27.1 %
The fair value of servicing rights was $3.4 million at December 31, 2022 and $2.6 million at December 31, 2021.