Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

The Corporation has goodwill from acquisitions which is deemed to be an indefinite intangible asset and is not amortized. Changes in the carrying amount of the Corporation's goodwill by business segment for the three months ended March 31, 2022 were as follows:

(Dollars in thousands)	Banking		Wealth Management		Insurance		Consolidated
Balance at December 31, 2021	$	138,476	$	15,434	$	21,600	$	175,510
Addition to goodwill from acquisitions	—		—		—		—
Balance at March 31, 2022	$	138,476	$	15,434	$	21,600	$	175,510

The Corporation also has core deposit and customer-related intangibles, which are not deemed to have an indefinite life and therefore will continue to be amortized over their useful life using the present value of projected cash flows. The following table reflects the components of intangible assets at the dates indicated:

	At March 31, 2022						At December 31, 2021
(Dollars in thousands)	Gross Carrying Amount		Accumulated Amortization (1)		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization (1)		Net Carrying Amount
Amortized intangible assets:
Core deposit intangibles	$	6,788	$	5,566	$	1,222	$	6,788	$	5,425	$	1,363
Customer related intangibles	8,493		6,053		2,440		8,493		5,886		2,607
Servicing rights	27,274		19,152		8,122		26,560		18,682		7,878
Total amortized intangible assets	$	42,555	$	30,771	$	11,784	$	41,841	$	29,993	$	11,848

(1) Included within accumulated amortization is a valuation allowance of $7 thousand and $13 thousand on servicing rights at March 31, 2022 and December 31, 2021, respectively.

The estimated aggregate amortization expense for core deposit and customer-related intangibles for the remainder of 2022 and the succeeding fiscal years is as follows:

Year	(Dollars in thousands)	Amount
Remainder of 2022		$	849
2023		845
2024		648
2025		469
2026		319
Thereafter		532
Total		$	3,662

The aggregate fair value of servicing rights was $15.1 million and $11.3 million at March 31, 2022 and December 31, 2021, respectively. The fair value of these rights was determined using a discount rate of 10.2% at March 31, 2022 and December 31, 2021.

Changes in the servicing rights balance are summarized as follows:

	Three Months Ended March 31,
(Dollars in thousands)	2022		2021
Beginning of period	$	7,878	$	6,408
Servicing rights capitalized	714		1,313
Amortization of servicing rights	(476)		(792)
Changes in valuation allowance	6		86
End of period	$	8,122	$	7,015
Loans serviced for others	$	1,440,562	$	1,255,124

Activity in the valuation allowance for servicing rights was as follows:

	Three Months Ended March 31,
(Dollars in thousands)	2022		2021
Valuation allowance, beginning of period	$	(13)	$	(87)
Reductions	6		86
Valuation allowance, end of period	$	(7)	$	(1)

The estimated amortization expense of servicing rights for the remainder of 2022 and the succeeding fiscal years is as follows:

Year	(Dollars in thousands)	Amount
Remainder of 2022		$	1,130
2023		994
2024		871
2025		762
2026		664
Thereafter		3,701
Total		$	8,122