Carrying Amount of Goodwill |
The following tables summarize the effects of the adjustment on the amounts previously reported in the goodwill allocation table, the corrected (or “as adjusted”) amounts for each applicable period end and the changes in goodwill for each period presented. | | | | | | | | | | | | | | | | | | | | | | | | | | Reporting Unit (1) | | Wealth Management | | Consumer Banking | | Commercial Banking | | | Total | | (in thousands) | December 31, 2021, as reported | $ | 38,851 | | | $ | 222,390 | | | $ | 1,197,767 | | | | $ | 1,459,008 | | Adjustment | (4,536) | | | 127,167 | | | (122,631) | | | | — | | December 31, 2021, as adjusted | $ | 34,315 | | | $ | 349,557 | | | $ | 1,075,136 | | | | $ | 1,459,008 | | | | | | | | | | | December 31, 2022, as reported | $ | 49,767 | | | $ | 284,873 | | | $ | 1,534,296 | | | | $ | 1,868,936 | | Adjustment | 28,375 | | | 64,773 | | | (93,148) | | | | — | | December 31, 2022, as adjusted | $ | 78,142 | | | $ | 349,646 | | | $ | 1,441,148 | | | | $ | 1,868,936 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | Reporting Unit (1) | | Wealth Management | | Consumer Banking | | Commercial Banking | | | Total | | (in thousands) | December 31, 2021, as adjusted | $ | 34,315 | | | $ | 349,557 | | | $ | 1,075,136 | | | | $ | 1,459,008 | | Goodwill from business combinations, as adjusted (2) | 43,827 | | | 89 | | | 366,012 | | | | 409,928 | | December 31, 2022, as adjusted | $ | 78,142 | | | $ | 349,646 | | | $ | 1,441,148 | | | | $ | 1,868,936 | | December 31, 2023 | $ | 78,142 | | | $ | 349,646 | | | $ | 1,441,148 | | | | $ | 1,868,936 | |
(1) The Wealth Management and Consumer Banking reporting units are both components of the overall Consumer Banking operating segment, which is further described in Note 21. (2) Includes adjustments of $32.9 million, $(62.4) million and $29.4 million for Wealth Management, Consumer Banking and Commercial Banking, respectively, to reflect the correction of an immaterial error related to the reallocation of goodwill during the second quarter 2022.
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Other Intangible Assets |
The following tables summarize other intangible assets as of December 31, 2023 and 2022: | | | | | | | | | | | | | | | | | | | | | Gross Intangible Assets | | Accumulated Amortization | | | | Net Intangible Assets | | (in thousands) | December 31, 2023 | | | | | | | | Loan servicing rights | $ | 122,586 | | | $ | (100,636) | | | | | $ | 21,950 | | Core deposits | 215,620 | | | (113,183) | | | | | 102,437 | | Other | 50,393 | | | (14,449) | | | | | 35,944 | | Total other intangible assets | $ | 388,599 | | | $ | (228,268) | | | | | $ | 160,331 | | December 31, 2022 | | | | | | | | Loan servicing rights | $ | 119,943 | | | $ | (96,136) | | | | | $ | 23,807 | | Core deposits | 223,670 | | | (92,486) | | | | | 131,184 | | Other | 51,299 | | | (8,834) | | | | | 42,465 | | Total other intangible assets | $ | 394,912 | | | $ | (197,456) | | | | | $ | 197,456 | |
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Schedule of Change in Loan Servicing Rights |
The following table summarizes the change in loan servicing rights during the years ended December 31, 2023, 2022 and 2021: | | | | | | | | | | | | | | | | | | | 2023 | | 2022 | | 2021 | | (in thousands) | Loan servicing rights: | | | | | | Balance at beginning of year | $ | 23,807 | | | $ | 23,685 | | | $ | 22,810 | | Origination of loan servicing rights | 2,643 | | | 5,307 | | | 11,486 | | Amortization expense | (4,500) | | | (5,185) | | | (10,611) | | Balance at end of year | $ | 21,950 | | | $ | 23,807 | | | $ | 23,685 | | Valuation allowance: | | | | | | Balance at beginning of year | $ | — | | | $ | — | | | $ | (865) | | Impairment recovery adjustment | — | | | — | | | 865 | | | | | | | | Balance at end of year, net of valuation allowance | $ | 21,950 | | | $ | 23,807 | | | $ | 23,685 | |
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Estimated Future Amortization Expense |
The following table presents the estimated amortization expense of other intangible assets over the next five-year period: | | | | | | | | | | | | | | | | | | | | | Year | | Loan Servicing Rights | | Core Deposits | | Other | | | (in thousands) | 2024 | | $ | 2,816 | | | $ | 24,897 | | | $ | 5,951 | | 2025 | | 2,478 | | | 21,048 | | | 5,380 | | 2026 | | 2,187 | | | 17,223 | | | 4,805 | | 2027 | | 1,916 | | | 13,544 | | | 4,205 | | 2028 | | 1,681 | | | 10,117 | | | 3,633 | |
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