Goodwill and Intangible Assets (Tables)
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12 Months Ended |
Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] |
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Summary of core deposit intangibles and other intangibles |
The Corporation has other intangible assets that are amortized, consisting of CDIs and MSRs. For CDIs and other intangibles, changes in the gross carrying amount, accumulated amortization, and net book value were as follows: | | | | | | | | | | | | ($ in Thousands) | 2021 | 2020 | 2019 | Core deposit intangibles | | | | Gross carrying amount at the beginning of the year | $ | 88,109 | | $ | 80,730 | | $ | 58,100 | | Additions during the year | — | | 7,379 | | 22,630 | | Accumulated amortization | (30,016) | | (21,205) | | (12,456) | | Net book value | $ | 58,093 | | $ | 66,904 | | $ | 68,274 | | Amortization during the year | $ | 8,811 | | $ | 8,749 | | $ | 7,130 | | Other intangibles | | | | Gross carrying amount at the beginning of the year | $ | 2,000 | | $ | 38,970 | | $ | 44,887 | | Additions during the year | — | | 200 | | — | | Reductions due to sale | (1,317) | | (17,435) | | (217) | | Accumulated amortization | (683) | | (20,385) | | (24,643) | | Net book value | $ | — | | $ | 1,350 | | $ | 20,027 | | Amortization during the year | $ | 33 | | $ | 1,443 | | $ | 2,818 | |
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Summary of changes in balance of mortgage servicing rights asset and mortgage servicing rights valuation allowance |
A summary of changes in the balance of the MSRs asset and the MSRs valuation allowance is as follows: | | | | | | | | | | | | ($ in Thousands) | 2021 | 2020 | 2019 | Mortgage servicing rights | | Mortgage servicing rights at beginning of year | $ | 59,967 | | $ | 67,607 | | $ | 68,433 | | Additions from acquisition | — | | 1,357 | | — | | Additions | 16,151 | | 13,667 | | 11,606 | | Amortization | (19,436) | | (22,664) | | (12,432) | | Mortgage servicing rights at end of year | $ | 56,682 | | $ | 59,967 | | $ | 67,607 | | Valuation allowance at beginning of year | (18,006) | | (302) | | (239) | | (Additions) recoveries, net | 16,186 | | (17,704) | | (63) | | Valuation allowance at end of year | (1,820) | | (18,006) | | (302) | | Mortgage servicing rights, net | $ | 54,862 | | $ | 41,961 | | $ | 67,306 | | Fair value of mortgage servicing rights | $ | 57,259 | | $ | 41,990 | | $ | 72,532 | | Portfolio of residential mortgage loans serviced for others (“servicing portfolio”) | 6,994,834 | | 7,743,956 | | 8,488,969 | | Mortgage servicing rights, net to servicing portfolio | 0.78 | % | 0.54 | % | 0.79 | % | Mortgage servicing rights expense(a) | $ | 3,250 | | $ | 40,369 | | $ | 12,494 | |
(a) Includes the amortization of mortgage servicing rights and additions / recoveries to the valuation allowance of mortgage servicing rights, and is a component of mortgage banking, net on the consolidated statements of income.
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Summary of estimated future amortization expense |
The projections of amortization expense are based on existing asset balances, the current interest rate environment, and prepayment speeds as of December 31, 2021. The actual amortization expense the Corporation 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. The following table shows the estimated future amortization expense for amortizing intangible assets: | | | | | | | | | | | | | | ($ in Thousands) | Core Deposit Intangibles | | | | Mortgage Servicing Rights | Year ending December 31, | | | | | | 2022 | $ | 8,811 | | | | | $ | 8,901 | | 2023 | 8,811 | | | | | 9,614 | | 2024 | 8,811 | | | | | 7,811 | | 2025 | 8,811 | | | | | 6,490 | | 2026 | 8,811 | | | | | 5,423 | | Beyond 2026 | 14,038 | | | | | 18,444 | | Total Estimated Amortization Expense | $ | 58,093 | | | | | $ | 56,682 | |
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