GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

The following tables detail the changes in carrying value of goodwill by segment during the years ended December 31, 2020 and 2019.

	As of December 31, 2020		As of December 31, 2019
	(In thousands)
Goodwill
Wealth Management and Trust (1)	$	57,607	$	57,607
Total goodwill	$	57,607	$	57,607

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(1)The goodwill balance in the Wealth Management and Trust segment as of December 31, 2020 and 2019 includes goodwill from the legacy KLS entity that was merged with Boston Private Wealth in 2019. See Part II. Item 8. “Financial Statements and Supplementary Data - Note 1: Basis of Presentation and Summary of Significant Accounting Policies” for additional information on the merger.

The following table details total goodwill and the cumulative impairment charges thereon as of December 31, 2020 and 2019:

	Goodwill prior to impairment		Cumulative goodwill impairment		Goodwill
	(In thousands)
Private Banking	$	34,281	$	(34,281)	$	—
Wealth Management and Trust	67,135		(9,528)		57,607
Holding Company and Eliminations	75,162		(75,162)		—
Total goodwill at December 31, 2020 and 2019	$	176,578	$	(118,971)	$	57,607

In 2020 and 2019, the Company recorded no additional goodwill. Cumulative goodwill impairment relates to charges taken on legacy acquisitions in 2017 and prior periods.

Management performed its annual goodwill impairment testing during the fourth quarter of 2020 for applicable reporting units. There was no additional testing required for long-lived intangible assets in 2020 given the Company determined that there was no risk of impairment and no triggering events.

2020 Impairment Testing and Results

Management performed its annual goodwill impairment testing during the fourth quarter of 2020 for the Wealth Management and Trust reporting unit. Based on the procedures performed, no additional testing was required. Neither Boston Private Bank nor DGHM has any goodwill as of December 31, 2020.

2019 Impairment Testing and Results

Management performed its annual goodwill impairment testing during the fourth quarter of 2019 for the Wealth Management and Trust reporting unit. The 2019 testing was performed for Boston Private Wealth, which includes the legacy goodwill balance at KLS that was combined as part of the merger of Boston Private Wealth and KLS in the third quarter of 2019. Based on the procedures performed, no additional testing was required. Neither Boston Private Bank nor DGHM has any goodwill as of December 31, 2019.

Intangible Assets

The following table shows the gross and net carrying amounts of identifiable intangible assets at December 31, 2020 and 2019:

	2020						2019
	Gross Carrying Amount		Accumulated Amortization		Net		Gross Carrying Amount		Accumulated Amortization		Net
	(In thousands)
Advisory contracts	$	23,950	$	16,769	$	7,181	$	23,950	$	14,376	$	9,574
Mortgage servicing rights	1,243		326		917		816		38		778
Commercial servicing rights	973		15		958		—		—		—
Total	$	26,166	$	17,110	$	9,056	$	24,766	$	14,414	$	10,352

The Company added $0.4 million and $0.8 million in mortgage servicing rights intangible assets in 2020 and 2019, respectively, related to the sale of Residential mortgage loans with servicing rights retained. The Company added $1.0 million in Commercial servicing rights intangible assets in 2020 related to the Federal Reserve's Main Street Lending Program.

Intangible assets amortization was $2.7 million, $2.7 million, and $2.9 million for 2020, 2019, and 2018, respectively.

Management reviews, and adjusts if necessary, intangible asset amortization schedules to ensure that the remaining life on the amortization schedule accurately reflects the useful life of the intangible asset. The weighted average amortization period of these intangible assets is 4.12 years.

The estimated annual amortization expense for these identifiable intangible assets over the next five years is:

	Estimated intangible amortization expense
	(In thousands)
2021	$	2,417
2022	2,381
2023	2,318
2024	1,765
2025	175
Thereafter	—
Total	$	9,056