XML 41 R37.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Goodwill and Intangible Assets (Tables)
 12 Months Ended
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Summary of core deposit intangibles and other intangibles
The Corporation has other intangible assets that are amortized, consisting of CDIs, other intangibles (primarily related to customer relationships acquired in connection with the Corporation’s insurance agency acquisitions), and MSRs. For CDIs and other intangibles, changes in the gross carrying amount, accumulated amortization, and net book value were as follows:
($ in Thousands)201920182017
Core deposit intangibles
Gross carrying amount$80,730  $58,100  $4,385  
Accumulated amortization(12,456) (5,326) (4,385) 
Net book value$68,274  $52,774  $—  
Additions during the period$22,630  $58,100  $—  
Amortization during the year$7,130  $5,326  $112  
Other intangibles
Gross carrying amount$44,887  $44,931  $34,572  
Reductions due to sale(217) (43) —  
Accumulated amortization(24,643) (21,825) (18,992) 
Net book value$20,027  $23,062  $15,580  
Additions during the period$—  $10,359  $2,162  
Amortization during the year$2,818  $2,833  $1,847  
Summary of changes in balance of mortgage servicing rights asset and mortgage servicing rights valuation allowance
A summary of changes in the balance of the MSRs asset and the MSRs valuation allowance is as follows:
($ in Thousands)201920182017
Mortgage servicing rights
Mortgage servicing rights at beginning of year$68,433  $59,168  $62,085  
Additions from acquisition—  8,136  —  
Additions11,606  10,722  7,167  
Amortization(12,432) (9,594) (10,084) 
Mortgage servicing rights at end of year$67,607  $68,433  $59,168  
Valuation allowance at beginning of year(239) (784) (609) 
(Additions) recoveries, net(63) 545  (175) 
Valuation allowance at end of year(302) (239) (784) 
Mortgage servicing rights, net$67,306  $68,193  $58,384  
Fair value of mortgage servicing rights$72,532  $81,012  $64,387  
Portfolio of residential mortgage loans serviced for others (“servicing portfolio”)$8,484,977  $8,600,983  $7,646,846  
Mortgage servicing rights, net to servicing portfolio0.79 %0.79 %0.76 %
Mortgage servicing rights expense(a)
$12,494  $9,049  $10,259  
(a) Includes the amortization of mortgage servicing rights and additions / recoveries to the valuation allowance of mortgage servicing rights, and is a component of mortgage banking, net on the consolidated statements of income.
Summary of estimated future amortization expense
The projections of amortization expense are based on existing asset balances, the current interest rate environment, and prepayment speeds as of December 31, 2019. The actual amortization expense the Corporation recognizes in any given period may be significantly different depending upon acquisition or sale activities, changes in interest rates, prepayment speeds, market conditions, regulatory requirements, and events or circumstances that indicate the carrying amount of an asset may not be recoverable. The following table shows the estimated future amortization expense for amortizing intangible assets:
($ in Thousands)Core Deposit IntangiblesOther IntangiblesMortgage Servicing Rights
Year ending December 31,
2020$8,073  $2,681  $10,628  
20218,073  2,656  11,481  
20228,073  2,633  9,576  
20238,073  2,614  7,967  
20248,073  2,594  6,621  
Beyond 202427,909  6,850  21,336  
Total Estimated Amortization Expense$68,274  $20,027  $67,607