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Goodwill and Other Intangible Assets (Tables)
 3 Months Ended
Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Summary of core deposit intangibles and other intangibles For CDIs and other intangibles, changes in the gross carrying amount, accumulated amortization, and net book value were as follows:
($ in Thousands)Three months ended Mar 31, 2022Year Ended Dec 31, 2021
Core deposit intangibles
Gross carrying amount at the beginning of period$88,109 $88,109 
Accumulated amortization(32,219)(30,016)
Net book value$55,890 $58,093 
Amortization during the period$2,203 $8,811 
Other intangibles
Gross carrying amount at the beginning of period$— $2,000 
Reductions due to sale— (1,317)
Accumulated amortization— (683)
Net book value $— $— 
Amortization during the period$— $33 
Summary of changes in balance of mortgage servicing rights asset and mortgage servicing rights valuation allowance
A summary of changes in the balance of the MSRs asset under the fair value measurement method for the quarter ended March 31, 2022 is as follows:
($ in Thousands)Three months ended Mar 31, 2022
Mortgage servicing rights
Mortgage servicing rights at beginning of period$54,862 
Cumulative effect of accounting methodology change2,296 
Balance at beginning of period, adjusted$57,158 
Additions3,042 
Paydowns(2,637)
Valuation:
Change in fair value model assumptions2,345 
Changes in fair value of asset7,106 
Mortgage servicing rights at end of period$67,015 
Portfolio of residential mortgage loans serviced for others (“servicing portfolio”)$6,972,242 
Mortgage servicing rights to servicing portfolio0.96 %
Prior to January 1, 2022, the Corporation accounted for its MSRs under the amortization methodology. Under this methodology the Corporation evaluated its MSRs asset for impairment at minimum on a quarterly basis. Impairment was assessed based on fair value at each reporting date using estimated prepayment speeds of the underlying mortgage loans serviced and stratifications based on the risk characteristics of the underlying loans (predominantly loan type and note interest rate). As mortgage interest rates fell, prepayment speeds were usually faster and the value of the MSRs asset generally decreased, requiring additional valuation reserve. Conversely, as mortgage interest rates rose, prepayment speeds were usually slower and the value of the MSRs asset generally increased, requiring less valuation reserve. A valuation allowance was established, through a charge to earnings, to the extent the amortized cost of the MSRs exceeded the estimated fair value by stratification. An other-than-temporary impairment (i.e., recoverability was considered remote when considering interest rates and loan pay off activity) was recognized as a write-down of the MSRs asset and the related valuation allowance (to the extent a valuation allowance was available) and then against earnings. A direct write-down permanently reduced the carrying value of the MSRs asset and valuation allowance, precluding subsequent recoveries.
A summary of changes in the balance of the MSRs asset and the MSRs valuation allowance under the amortization method for the year ended December 31, 2021 is as follows:
($ in Thousands)Year Ended Dec 31, 2021
Mortgage servicing rights
Mortgage servicing rights at beginning of period$59,967 
Additions16,151 
Amortization(19,436)
Mortgage servicing rights at end of period$56,682 
Valuation allowance at beginning of period$(18,006)
(Additions) recoveries, net16,186 
Valuation allowance at end of period$(1,820)
Mortgage servicing rights, net$54,862 
Fair value of mortgage servicing rights$57,259 
Portfolio of residential mortgage loans serviced for others (“servicing portfolio”)$6,994,834 
Mortgage servicing rights, net to servicing portfolio0.78 %
Mortgage servicing rights expense(a)
$3,250 
(a) Includes the amortization of mortgage servicing rights and additions / recoveries to the valuation allowance of mortgage servicing rights, and is a component of mortgage banking, net on the consolidated statements of income
Summary of estimated future amortization expense The following table shows the estimated future amortization expense for amortizing intangible assets:
($ in Thousands)Core Deposit IntangiblesMortgage Servicing Rights
Nine months ended December 31, 2022$6,608 $8,956 
20238,811 11,320 
20248,811 9,663 
20258,811 8,227 
20268,811 6,874 
20278,811 5,913 
Beyond 20275,227 16,062 
Total Estimated Amortization Expense$55,890 $67,015