Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of core deposit intangibles and other intangibles

The Corporation has CDIs and historically had other intangible assets, both of which are amortized. For CDIs and other intangibles, changes in the gross carrying amount, accumulated amortization, and net book value were as follows:

($ in thousands)	2023		2022		2021
Core deposit intangibles
Gross carrying amount at the beginning of the year	$	88,109	$	88,109	$	88,109
Accumulated amortization	(47,638)		(38,827)		(30,016)
Net book value	$	40,471	$	49,282	$	58,093
Amortization during the year	$	8,811	$	8,811	$	8,811
Other intangibles
Gross carrying amount at the beginning of the year	$	—	$	—	$	2,000
Reductions due to sale	—		—		(1,317)
Accumulated amortization	—		—		(683)
Net book value	$	—	$	—	$	—
Amortization during the year	$	—	$	—	$	33

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 under the fair value measurement method for the years ended December 31, 2023 and 2022 is as follows:

($ in thousands)	2023			2022
Mortgage servicing rights
Mortgage servicing rights at beginning of period	$	77,351		$	54,862
Cumulative effect of accounting methodology change	N/A			2,296
Balance at beginning of period, adjusted	$	77,351		$	57,158
Additions	3,564			7,279
Paydowns	(7,185)			(9,350)
Valuation:
Change in fair value model assumptions	8,881			5,715
Changes in fair value of asset	1,778			16,549
Mortgage servicing rights at end of period	$	84,390		$	77,351
Portfolio of residential mortgage loans serviced for others (“servicing portfolio”)(a)	$	7,364,492		$	6,711,820
Mortgage servicing rights to servicing portfolio(a)	1.15		%	1.15		%

(a) During the fourth quarter of 2023, the Corporation transferred $969 million of residential mortgages into held for sale and subsequently sold them for $844 million. After sale, the servicing has been retained for a short period until full servicing can be transferred to the purchaser.

Prior to January 1, 2022, the Corporation accounted for its MSRs under the amortization methodology. See Note 1 for the Corporation’s accounting policy for MSRs when they were still under the amortization methodology.

A summary of changes in the balance of the MSRs asset and the MSRs valuation allowance under the amortization methodology for the year ended December 31, 2021 is as follows:

($ in thousands)	2021
Mortgage servicing rights
Mortgage servicing rights at beginning of year	$	59,967
Additions	16,151
Amortization	(19,436)
Mortgage servicing rights at end of year	$	56,682
Valuation allowance at beginning of year	(18,006)
(Additions) recoveries, net	16,186
Valuation allowance at end of year	(1,820)
Mortgage servicing rights, net	$	54,862
Fair value of mortgage servicing rights	$	57,259
Portfolio of residential mortgage loans serviced for others (“servicing portfolio”)	6,994,834
Mortgage servicing rights, net to servicing portfolio	0.78		%
Mortgage servicing rights expense(a)	$	3,250

(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 for CDIs and decay for MSRs are based on existing asset balances, the current interest rate environment, and prepayment speeds as of December 31, 2023. The actual 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 CDIs and decay for MSRs:

($ in thousands)	Core Deposit Intangibles		Mortgage Servicing Rights
Year ending December 31,
2024	$	8,811	$	10,555
2025	8,811		11,404
2026	8,811		10,710
2027	8,811		9,922
2028	3,485		9,005
Beyond 2028	1,742		32,794
Total estimated amortization expense and MSRs decay(a)	$	40,471	$	84,390