XML 26 R16.htm IDEA: XBRL DOCUMENT v3.26.1
Goodwill and Other Intangible Assets
 6 Months Ended
Jun. 30, 2026
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets
Goodwill
The Corporation conducted its most recent annual impairment testing in May 2026, utilizing a qualitative assessment. Based on this assessment, management concluded that it is more likely than not that the estimated fair value exceeded the carrying value (including goodwill) for each reporting unit. Therefore, a step one quantitative analysis was not required. There have been no events since the May 2026 impairment test that have changed the Corporation's impairment assessment conclusion. There were no impairment charges recorded in the first six months of 2025 or 2026.
The Corporation added $42.1 million goodwill related to the American National acquisition in the second quarter of 2026. The Corporation had goodwill of $1.1 billion at both June 30, 2026 and December 31, 2025.
Core Deposit Intangibles
The Corporation has CDIs which are amortized. CDI recorded as part of the American National acquisition is amortized over ten years using the sum of digits method while prior acquisitions are amortized under the straight line method. Changes in the gross carrying amount, accumulated amortization, and net book value for CDIs were as follows:
(in thousands)Six Months Ended Jun 30, 2026Year Ended Dec 31, 2025
Core deposit intangibles
Gross carrying amount at the beginning of period$88,109 $88,109 
Additions during the period103,200 — 
Accumulated amortization(74,356)(65,260)
Net book value$116,953 $22,849 
Amortization during the period$9,096 $8,811 
Mortgage Servicing Rights
A summary of changes in the balance of the MSRs asset under the fair value measurement method is as follows:
(in thousands)Six Months Ended Jun 30, 2026Year Ended Dec 31, 2025
Mortgage servicing rights
Mortgage servicing rights at beginning of period$86,337 $87,683 
Additions6,159 8,716 
Decay(4,899)(8,621)
Valuation:
Changes in fair value of asset86 (1,441)
Mortgage servicing rights at end of period$87,683 $86,337 
Portfolio of residential mortgage loans serviced for others (“servicing portfolio”)$6,160,254 $6,191,012 
Mortgage servicing rights to servicing portfolio1.42 %1.39 %
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 June 30, 2026. 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 yearly amortization expense for CDIs and decay for MSRs:
(in thousands)Core Deposit IntangiblesMortgage Servicing Rights
Six Months Ended December 31, 2026$13,788 $4,817 
202726,167 11,601 
202818,965 11,838 
202915,285 11,189 
203011,788 10,214 
20319,851 9,123 
Beyond 203121,109 28,901 
Total estimated amortization expense and MSRs decay(a)
$116,953 $87,683 
(a) Includes the decrease in value due to passage of time, including the impact from both regularly scheduled principal payments and partial loan paydowns.