XML 23 R13.htm IDEA: XBRL DOCUMENT v3.22.2
Goodwill and Other Intangible Assets
 6 Months Ended
Jun. 30, 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 six months ended June 30, 2022 were as follows:
(Dollars in thousands)BankingWealth ManagementInsuranceConsolidated
Balance at December 31, 2021$138,476 $15,434 $21,600 $175,510 
Addition to goodwill from acquisitions— — — — 
Balance at June 30, 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 June 30, 2022At December 31, 2021
(Dollars in thousands)Gross Carrying Amount
Accumulated Amortization (1)
Net Carrying AmountGross Carrying Amount
Accumulated Amortization (1)
Net Carrying Amount
Amortized intangible assets:
Core deposit intangibles$6,788 $5,705 $1,083 $6,788 $5,425 $1,363 
Customer related intangibles8,493 6,220 2,273 8,493 5,886 2,607 
Servicing rights27,951 19,579 8,372 26,560 18,682 7,878 
Total amortized intangible assets$43,232 $31,504 $11,728 $41,841 $29,993 $11,848 
(1) Included within accumulated amortization is a valuation allowance of $3 thousand and $13 thousand on servicing rights at June 30, 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$543 
2023845 
2024648 
2025469 
2026319 
Thereafter532 
Total$3,356 
The aggregate fair value of servicing rights was $16.7 million and $11.3 million at June 30, 2022 and December 31, 2021, respectively. The fair value of these rights was determined using a discount rate of 10.2% at June 30, 2022 and December 31, 2021.
Changes in the servicing rights balance are summarized as follows:
 Three Months Ended June 30,Six Months Ended June 30,
(Dollars in thousands)2022202120222021
Beginning of period$8,122 $7,015 $7,878 $6,408 
Servicing rights capitalized677 1,140 1,391 2,453 
Amortization of servicing rights(431)(722)(907)(1,514)
Changes in valuation allowance4 — 10 86 
End of period$8,372 $7,433 $8,372 $7,433 
Loans serviced for others$1,475,659 $1,303,105 $1,475,659 $1,303,105 

Activity in the valuation allowance for servicing rights was as follows:
 Three Months Ended June 30,Six Months Ended June 30,
(Dollars in thousands)2022202120222021
Valuation allowance, beginning of period$(7)$(1)$(13)$(87)
Reductions4 — 10 86 
Valuation allowance, end of period$(3)$(1)$(3)$(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$1,085 
2023967 
2024859 
2025761 
2026672 
Thereafter4,028 
Total$8,372