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Goodwill and Other Intangible Assets
 12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets
Goodwill
The following table details changes in the recorded amount of goodwill for the years ended December 31:
(Dollars in thousands)20232022
Goodwill, beginning of year$292,397 $264,193 
Goodwill recorded from acquisitions69,772 28,204 
Goodwill, end of year$362,169 $292,397 
Peoples performed a qualitative assessment of goodwill as of October 1, 2023, and management does not believe it is more likely than not that the fair value of Peoples’ reporting unit is less than its carrying amount.
As of the close of business on April 30, 2023, Peoples completed its merger with Limestone Bancorp, Inc. (“Limestone”) pursuant to an Agreement and Plan of Merger dated October 24, 2022, at which point Limestone merged with and into Peoples, and immediately thereafter, Limestone Bank, Inc., the subsidiary bank of Limestone, merged with and into Peoples Bank (collectively, the “Limestone Merger”). Peoples has recorded preliminary goodwill from the Limestone Merger totaling $68.8 million as of December 31, 2023.
On January 3, 2023, Peoples acquired a trust and investment business, for which Peoples has recorded $0.6 million in goodwill as of December 31, 2023. On October 10, 2023, Peoples purchased the assets of an insurance business, for which $0.4 million in goodwill has been recorded as of December 31, 2023.
On March 11, 2022, Peoples Insurance entered into an Asset Purchase Agreement with Elite Agency, Inc. (“Elite”), and consummated the acquisition on April 1, 2022. In 2022, Peoples recorded $2.3 million of goodwill related to this acquisition. On March 7, 2022, Peoples Bank entered into an Asset Purchase Agreement with Vantage, at which point Vantage became a legal subsidiary of Peoples Bank. In 2022, Peoples recorded $27.2 million of goodwill related to this acquisition. During 2022, Peoples also recorded a $1.3 million reduction of the goodwill recognized in the Premier Merger due to changes in the fair value of loans acquired from Premier.
Other intangible assets
Other intangible assets were comprised of the following at December 31:
(Dollars in thousands)Core DepositsCustomer RelationshipsIndefinite-Lived Trade NamesTotal
2023
Gross intangibles$26,464 $37,920 $2,491 $66,875 
Intangibles recorded from acquisitions27,722 — — 27,722 
Accumulated amortization(25,670)(20,680)— (46,350)
Total acquisition-related intangibles$28,516 $17,240 $2,491 $48,247 
Servicing rights1,385 
Non-compete agreements (a)371 
Total other intangibles$50,003 
2022
Gross intangibles$26,464 $25,173 $1,274 $52,911 
Intangibles recorded from acquisitions (b)— 14,067 1,217 15,284 
Accumulated amortization(20,667)(15,412)— (36,079)
Total acquisition-related intangibles$5,797 $23,828 $2,491 $32,116 
Servicing rights1,816 
Total other intangibles$33,932 
(a) Non-compete agreements were recognized due to acquisitions.
(b) Peoples included in customer relationship intangibles intangible assets related to a non-compete agreements in the amount of $1.3 million at December 31, 2022.
Peoples performed other intangible assets impairment testing as of October 1, 2023 and concluded there was no impairment in the recorded value of other intangible assets as of October 1, 2023. During the annual impairment test, Peoples assessed qualitative factors, including relevant events and circumstances, to determine that it was more-likely-than-not that the fair value of other intangible assets exceeded the carrying value.
Other intangible assets recorded from the above-mentioned acquisitions in 2023 consisted of $27.7 million of core deposit intangibles related to the Limestone Merger.
Other intangible assets recorded from the above-mentioned acquisitions in 2022 were $10.8 million of customer relationship intangible assets, $1.2 million of non-compete intangible assets, and $1.2 million of indefinite-lived trade name intangible assets related to the Vantage acquisition. Peoples also recorded $2.0 million of customer relationship intangible assets and $0.1 million of non-compete intangible assets related to the acquisition of Elite.
The following table details estimated aggregate future amortization of other intangible assets at December 31, 2023:
(Dollars in thousands)Core DepositsCustomer Relationships (a)Total
2024$5,875 $5,310 $11,185 
20254,609 4,221 8,830 
20263,736 3,081 6,817 
20273,043 2,256 5,299 
20282,608 1,549 4,157 
Thereafter8,645 1,194 9,839 
Total$28,516 $17,611 $46,127 
(a) Peoples includes in customer relationship intangibles intangible assets related to a non-compete agreements.
The weighted average amortization period of other intangibles is 9.2 years.
The following is an analysis of activity of servicing rights for the years ended December 31:
(Dollars in thousands)202320222021
Balance, beginning of year$1,816 $2,218 $2,486 
Amortization(457)(594)(936)
Servicing rights originated27 180 519 
Change in valuation allowance(1)12 149 
Balance, end of year$1,385 $1,816 $2,218 
The following is the breakdown of the discount rates and prepayment speeds of servicing rights for the years ended December 31:
20232022
Minimum MaximumMinimumMaximum
Discount rates13.5 %16.0 %12.5 %15.0 %
Prepayment speeds7.7 %16.1 %6.5 %23.8 %
The fair value of servicing rights was $3.2 million at December 31, 2023 and $3.4 million at December 31, 2022.