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Goodwill and Intangible Assets (Tables)
 12 Months Ended
Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Changes in Goodwill
The following table presents the changes in the carrying amount of goodwill as of December 31, 2020 and 2019:
Year ended December 31
(Dollars in thousands)20202019
Balance at January 1$349,398 $236,347 
Recognized in the Community Financial acquisition686 — 
Measurement period adjustments(1)
214 — 
Recognized in the Biscayne Bancshares acquisition— 46,521 
Recognized in the First South Bancorp acquisition— 13,896 
Recognized in the Entegra acquisition— 52,634 
Balance at December 31$350,298 $349,398 
(1)See Note B, Business Combinations for additional information
Schedule of Mortgage Servicing Rights at Amortized Cost
The activity of the mortgage servicing asset for the years ended December 31, 2020, 2019 and 2018 is presented in the following table:
(Dollars in thousands)202020192018
Balance at January 1$22,963 $21,396 $21,945 
Servicing rights originated8,006 6,149 5,258 
Servicing rights acquired in Entegra transaction— 1,873 — 
Amortization(8,400)(6,233)(5,807)
Valuation allowance increase(4,143)(222)— 
Balance at December 31$18,426 $22,963 $21,396 
Schedule of Valuation Allowance for Impairment of Recognized Servicing Assets
The following table presents the activity in the servicing asset valuation allowance for the years ended December 31, 2020, 2019 and 2018:
(Dollars in thousands)202020192018
Beginning balance$222 $— $— 
Valuation allowance increase4,143 222 — 
Ending balance$4,365 $222 $— 
Mortgage Servicing Rights Key Economic Assumptions Used to Value
Key economic assumptions used to value mortgage servicing rights as of December 31, 2020 and 2019, were as follows:
20202019
Discount rate - conventional fixed loans7.92 %8.92 %
Discount rate - all loans excluding conventional fixed loans8.92 %9.92 %
Weighted average constant prepayment rate20.62 %13.72 %
Weighted average cost to service a loan$87.58 $87.09 
Schedule of Other Intangible Assets
The following information relates to core deposit intangible assets, which are being amortized over their estimated useful lives:
(Dollars in thousands)20202019
Balance at January 1$43,386 $48,232 
Acquired in Community Financial transaction536 — 
Acquired in Biscayne Bancshares transaction— 4,745 
Acquired in First South Bancorp transaction— 2,268 
Acquired in Entegra transaction— 4,487 
Amortization(14,255)(16,346)
Balance at December 31$29,667 $43,386 
The gross amount of core deposit intangible assets and accumulated amortization as of December 31, 2020 and 2019, are:
(Dollars in thousands)20202019
Gross balance$127,842 $154,507 
Accumulated amortization(98,175)(111,121)
Carrying value$29,667 $43,386 
Future Amortization Expense Schedule
Based on current estimated useful lives and carrying values, BancShares anticipates amortization expense for core deposit intangibles in subsequent periods will be:
(Dollars in thousands)
2021$10,948 
20227,743 
20235,129 
20242,658 
2025 and subsequent3,189 
$29,667