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Intangible Assets, Goodwill and Other
 9 Months Ended
Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure
Note 5 Goodwill and Other Intangible Assets
Goodwill
The following table details changes in the recorded amount of goodwill:
(Dollars in thousands)September 30, 2021December 31, 2020
Goodwill, beginning of year$171,260 $165,701 
Goodwill recorded from acquisitions95,755 5,559 
Goodwill, end of period$267,015 $171,260 
Peoples Bank entered into the Asset Purchase Agreement, dated March 24, 2021 with NSL. The transaction closed after the close of business on March 31, 2021 and Peoples Bank began operating the acquired business as a division of Peoples Bank on April 1, 2021. On April 1, 2021, Peoples recorded $24.7 million of goodwill related to the acquisition from NSL. On May 4, 2021, Peoples Insurance Agency, LLC ("Peoples Insurance") acquired substantially all of the assets and rights of an insurance agency located in Pikeville, Kentucky and certain rights to related customer accounts, which were previously developed and maintained by Justice & Stamper Insurance Agency, Inc. Peoples recorded $46,000 of goodwill from this completed acquisition. On September 17, 2021, Peoples completed the merger with Premier, for which Peoples recorded $71.0 million of goodwill. In 2020, Peoples completed its acquisition of Premium Finance, recording $5.5 million in goodwill. Also, in 2020 Peoples Insurance completed an acquisition of a property and casualty-focused independent insurance agency for which $0.1 million of goodwill was recorded. For additional information on these acquisitions, refer to "Note 13 Acquisitions."
Other Intangible Assets
Other intangible assets were comprised of the following at end of period, September 30, 2021 and end of year, December 31, 2020:
(Dollars in thousands)Core DepositsCustomer RelationshipsTotal
September 30, 2021
Gross intangibles$25,805 $25,096 $50,901 
Accumulated amortization(17,813)(8,256)(26,069)
Total acquisition-related intangibles$7,992 $16,840 $24,832 
Servicing rights2,294 
Indefinite-lived intangibles1,274 
Total other intangibles$28,400 
December 31, 2020
Gross intangibles$22,233 $12,495 $34,728 
Accumulated amortization(17,298)(6,579)(23,877)
Total acquisition-related intangibles$4,935 $5,916 $10,851 
Servicing rights2,486 
Total other intangibles$13,337 
Other intangible assets recorded from the above-mentioned acquisitions year-to-date as of September 30, 2021 were $13.0 million of customer relationship intangible assets related to the NSL and Peoples Insurance acquisitions, and $4.2 million of core deposit intangible assets related to Premier. Refer to "Note 13 Acquisitions" for additional information. Other intangible assets recorded in 2020 included $5.0 million of customer relationship intangible assets from the Premium Finance and Peoples Insurance acquisitions.
The following table details estimated aggregate future amortization of other intangible assets at September 30, 2021:
(Dollars in thousands)Core DepositsCustomer RelationshipsTotal
2021$574 $934 $1,508 
20221,620 4,014 5,634 
20231,257 3,712 4,969 
20241,058 2,733 3,791 
2025891 1,941 2,832 
Thereafter2,592 3,506 6,098 
Total$7,992 $16,840 $24,832 
The weighted average amortization period of other intangible assets is 8.1 years.
Servicing Rights
The following is an analysis of activity of servicing rights for the periods ended September 30,2021 and December 31, 2020:
(Dollars in thousands)September 30, 2021December 31, 2020
Balance, beginning of year$2,486 $2,742 
Amortization(591)(1,121)
Servicing rights originated415 1,026 
Valuation allowance(16)(161)
Balance, end of period$2,294 $2,486 
Peoples accounts for its servicing rights under the amortization method, recognizing a valuation allowance when amortized cost exceeds fair value. As of September 30, 2021, Peoples has recorded a valuation allowance of $16,000 related to the decrease in the fair value of servicing rights. During 2020, Peoples recorded a valuation allowance of $161,000 related to the decrease in the fair value of servicing rights.
The following is the breakdown of the discount rates and prepayment speeds of servicing rights for the periods ended September 30,2021 and December 31, 2020:
September 30, 2021December 31, 2020
Minimum MaximumMinimumMaximum
Discount rates8.3 %10.8 %8.3 %10.8 %
Prepayment speeds8.4 %27.2 %12.8 %21.1 %
The fair value of servicing rights was $2.3 million and $2.6 million at September 30, 2021 and December 31, 2020, respectively.