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Goodwill and Intangible Assets (Tables)
 12 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Changes in Goodwill
The following table presents the changes in the carrying amount of goodwill for the years ending December 31, 2021 and 2020:
Year ended December 31
(Dollars in thousands)20212020
Balance at January 1$350,298 $349,398 
Recognized in the Community Financial acquisition— 686 
Measurement period adjustments(1)
— 214 
Other adjustment(2)
(4,234)— 
Balance at December 31$346,064 $350,298 
(1)Adjustments related to Entegra PCD loans and divested deposits as well as the deferred tax assets related to these items.
(2)Immaterial adjustment related to deferred taxes associated with pensions.
Schedule of Mortgage Servicing Rights at Amortized Cost
The activity of the mortgage servicing asset for the years ended December 31, 2021, 2020 and 2019 is presented in the following table:
(Dollars in thousands)202120202019
Balance at January 1$18,426 $22,963 $21,396 
Servicing rights originated10,556 8,006 6,149 
Servicing rights acquired in Entegra transaction— — 1,873 
Amortization(8,727)(8,400)(6,233)
Valuation allowance decrease (increase)3,102 (4,143)(222)
Balance at December 31$23,357 $18,426 $22,963 
Schedule of Valuation Allowance for Impairment of Recognized Servicing Assets
The following table presents the activity in the servicing asset valuation allowance for the years ended December 31, 2021, 2020 and 2019:
(Dollars in thousands)202120202019
Beginning balance$4,365 $222 $— 
Valuation allowance (decrease) increase(3,102)4,143 222 
Ending balance$1,263 $4,365 $222 
Mortgage Servicing Rights Key Economic Assumptions Used to Value
Key economic assumptions used to value mortgage servicing rights as of December 31, 2021 and 2020, were as follows:
20212020
Discount rate - conventional fixed loans8.51 %7.92 %
Discount rate - all loans excluding conventional fixed loans9.51 %8.92 %
Weighted average constant prepayment rate15.69 %20.62 %
Weighted average cost to service a loan$87.58 $87.58 
Schedule of Other Intangible Assets
The following information relates to core deposit intangible assets, which are being amortized over their estimated useful lives:
(Dollars in thousands)20212020
Balance at January 1$29,667 $43,386 
Acquired in Community Financial transaction— 536 
Amortization(10,948)(14,255)
Balance at December 31$18,719 $29,667 
The gross amount of core deposit intangible assets and accumulated amortization as of December 31, 2021 and 2020, are:
(Dollars in thousands)20212020
Gross balance$127,842 $127,842 
Accumulated amortization(109,123)(98,175)
Carrying value$18,719 $29,667 
Future Amortization Expense Schedule
Based on current estimated useful lives and carrying values, BancShares anticipates amortization expense for core deposit intangibles in subsequent periods will be:
(Dollars in thousands)
2022$7,743 
20235,129 
20242,659 
20251,374 
2026 and subsequent1,814 
$18,719