Goodwill and Other Intangibles and Mortgage Servicing Rights (Tables)

9 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of goodwill and intangible assets

A summary of goodwill and other intangibles was as follows.

	Nine Months Ended		Year Ended
(in thousands)	September 30, 2020		December 31, 2019
Goodwill	$	163,151	$	151,198
Core deposit intangibles	9,570		10,897
Customer list intangibles	3,492		3,872
Other intangibles	13,062		14,769
Goodwill and other intangibles, net	$	176,213	$	165,967

Schedule of goodwill

A summary of goodwill was as follows. During 2020, goodwill increased due to the Advantage acquisition and during 2019, goodwill increased due to the Choice acquisition. See Note 2 for additional information on the Company's acquisitions.

	Nine Months Ended		Year Ended
(in thousands)	September 30, 2020		December 31, 2019
Goodwill:
Goodwill at beginning of year	$	151,198	$	107,366
Acquisition	11,953		44,594
Impairment	—		(762)
Goodwill at end of period	$	163,151	$	151,198

Schedule of other intangible assets

	Nine Months Ended		Year Ended
(in thousands)	September 30, 2020		December 31, 2019
Core deposit intangibles:
Gross carrying amount	$	31,715	$	30,715
Accumulated amortization	(22,145)		(19,818)
Net book value	$	9,570	$	10,897
Additions during the period	$	1,000	$	1,700
Amortization during the period	$	2,327	$	3,365
Customer list intangibles:
Gross carrying amount	$	5,523	$	5,523
Accumulated amortization	(2,031)		(1,651)
Net book value	$	3,492	$	3,872
Additions during the period	$	—	$	—
Amortization during the period	$	380	$	507

Schedule of mortgage servicing rights

A summary of the changes in the mortgage servicing rights asset was as follows.

	Nine Months Ended			Year Ended
(in thousands)	September 30, 2020			December 31, 2019
Mortgage servicing rights ("MSR") asset:
MSR asset at beginning of year	$	5,919		$	3,749
Capitalized MSR	4,038			2,876
MSR asset acquired	529			160
Amortization during the period	(1,001)			(866)
MSR asset at end of period	$	9,485		$	5,919
Valuation allowance at beginning of year	$	—		$	—
Additions	(800)			—
Valuation allowance at end of period	$	(800)		$	—
MSR asset, net	$	8,685		$	5,919
Fair value of MSR asset at end of period	$	10,332		$	8,420
Residential mortgage loans serviced for others	$	1,204,856		$	847,756
Net book value of MSR asset to loans serviced for others	0.72		%	0.70		%

Schedule of estimated future amortization expense for amortizing intangible assets and the MSR asset

The following table shows the estimated future amortization expense for amortizing intangible assets and the MSR asset. The projections are based on existing asset balances, the current interest rate environment and prepayment speeds as of September 30, 2020. The actual amortization expense the Company 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.

(in thousands)	Core deposit intangibles		Customer list intangibles		MSR asset
Year ending December 31,
2020 (remaining three months)	$	733	$	127	$	434
2021	2,643		507		1,568
2022	2,150		507		1,535
2023	1,633		483		1,419
2024	1,130		449		1,202
2025	670		449		784
Thereafter	611		970		2,543
Total	$	9,570	$	3,492	$	9,485