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Goodwill and Other Intangible Assets
 6 Months Ended
Jun. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill as allocated to our business segments, or reporting units thereof, for goodwill impairment analysis were:
 
Business Segment / Reporting Unit*
 
Wealth
Management
 
Consumer
Lending
 
Commercial
Lending
 
Investment
Management
 
Total
 
(in thousands)
Balance at December 31, 2019
$
21,218

 
$
306,572

 
$
825,767

 
$
220,068

 
$
1,373,625

Goodwill from business combinations
—

 
121

 
1,654

 
9

 
1,784

Balance at June 30, 2020
$
21,218

 
$
306,693

 
$
827,421

 
$
220,077

 
$
1,375,409

 
*
Valley’s Wealth Management Division is comprised of trust, asset management and insurance services. This reporting unit is included in the Consumer Lending segment for financial reporting purposes.

During the six months ended June 30, 2020, Valley recorded additional goodwill as set forth in the table above related to the Oritani acquisition, reflecting the effect of the combined adjustments to the fair value of certain loans and deferred tax assets as of the acquisition date. Certain estimates for acquired assets and assumed liabilities are subject to change for up to one year after the acquisition date. See Note 2 for details.
During the second quarter 2020, Valley performed the annual goodwill impairment test at its normal assessment date. As a result, there was no charge for impairment of goodwill during the three and six months ended June 30, 2020 and 2019.

The following table summarizes other intangible assets as of June 30, 2020 and December 31, 2019: 
 
Gross
Intangible
Assets
 
Accumulated
Amortization
 
Valuation
Allowance
 
Net
Intangible
Assets
 
(in thousands)
June 30, 2020
 
 
 
 
 
 
 
Loan servicing rights
$
98,127

 
$
(74,624
)
 
$
(825
)
 
$
22,678

Core deposits
101,160

 
(47,118
)
 
—

 
54,042

Other
3,945

 
(2,744
)
 
—

 
1,201

Total other intangible assets
$
203,232

 
$
(124,486
)
 
$
(825
)
 
$
77,921

December 31, 2019
 
 
 
 
 
 
 
Loan servicing rights
$
94,827

 
$
(70,095
)
 
$
(47
)
 
$
24,685

Core deposits
101,160

 
(40,384
)
 
—

 
60,776

Other
3,945

 
(2,634
)
 
—

 
1,311

Total other intangible assets
$
199,932

 
$
(113,113
)
 
$
(47
)
 
$
86,772



Loan servicing rights are accounted for using the amortization method. Under this method, Valley amortizes the loan servicing assets over the period of the economic life of the assets arising from estimated net servicing revenues. On a quarterly basis, Valley stratifies its loan servicing assets into groupings based on risk characteristics and assesses each group for impairment based on fair value. Impairment charges on loan servicing rights are recognized in earnings when the book value of a stratified group of loan servicing rights exceeds its estimated fair value. Valley recorded net impairment charges on its loan servicing rights totaling $669 thousand and $778 thousand for the three and six months ended June 30, 2020, respectively. Valley recorded net recoveries of impairment charges on its loan servicing rights totaling $107 thousand and $83 thousand for the three and six months ended June 30, 2019, respectively. See the “Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis” section of Note 6 for additional information regarding the fair valuation.

Core deposits are amortized using an accelerated method and have a weighted average amortization period of 8.9 years. The line item labeled “Other” included in the table above primarily consists of customer lists and covenants not to compete, which are amortized over their expected lives generally using a straight-line method and have a weighted average amortization period of approximately 7.6 years. Valley evaluates core deposits and other intangibles for impairment when an indication of impairment exists. No impairment was recognized during the three and six months ended June 30, 2020 and 2019.

The following table presents the estimated future amortization expense of other intangible assets for the remainder of 2020 through 2024: 
 
Loan Servicing
Rights
 
Core
Deposits
 
Other
 
(in thousands)
2020
$
5,161

 
$
6,629

 
$
110

2021
4,179

 
11,607

 
206

2022
3,226

 
9,876

 
191

2023
2,483

 
8,146

 
131

2024
1,931

 
6,537

 
117



Valley recognized amortization expense on other intangible assets, including net impairment (or recovery of impairment) charges on loan servicing rights, totaling approximately $6.7 million and $4.2 million for the three
months ended June 30, 2020 and 2019, respectively, and $12.2 million and $8.5 million for the six months ended June 30, 2020 and 2019, respectively.