Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]



(In thousands)	Banking		Insurance			Wealth Management		Total
Balance at January 1, 2018	$	64,369	$	19,711		$	8,211	$	92,291
Goodwill related to sale of portion of business unit¹	0		(8		)	0		(8		)
Balance at December 31, 2018	$	64,369	$	19,703		$	8,211	$	92,283
Acquisitions	0		164			0		164
Balance at December 31, 2019	$	64,369	$	19,867		$	8,211	$	92,447

¹ The $8,000 reduction of goodwill in 2018, reflects an adjustment related to the sale of a portion of insurance revenues. In 2017, Tompkins Insurance sold a portion of its personal lines insurance revenues, which had been acquired in a previous acquisition, to a third party. In 2018, Tompkins Insurance adjusted the goodwill related to the sale in 2017.

In the second quarter of 2019, Tompkins Insurance acquired the Cali Agency, Inc., an insurance agency located in western New York, in a cash transaction. The Company recorded the following intangible assets as a result of the acquisition: goodwill ($164,000), customer related intangible ($171,000) and a covenant-not-to-compete ($87,000). The values of the customer related intangible and covenant-not-to-compete are being amortized over 15 years and 5 years, respectively.

Goodwill is assigned to reporting units. The Company reviews its goodwill and intangible assets annually, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. Based on the Company’s review as of December 31, 2019, there was no impairment of its goodwill or intangible assets. The Company’s impairment testing is highly sensitive to certain assumptions and estimates used. In the event that economic or credit conditions deteriorate significantly, additional interim impairment tests may be required.

Other Intangible Assets

The following table provides information regarding the Company's amortizing intangible assets:



December 31, 2019	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
(In thousands)
Amortized intangible assets:
Core deposit intangible	$	18,774	$	16,404	$	2,370
Customer relationships	9,048		6,405		2,643
Other intangibles	6,197		4,987		1,210
Total intangible assets	$	34,019	$	27,796	$	6,223



December 31, 2018	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
(In thousands)
Amortized intangible assets:
Core deposit intangible	$	18,774	$	15,386	$	3,388
Customer relationships	8,877		5,888		2,989
Other intangibles	5,983		4,732		1,251
Total intangible assets	$	33,634	$	26,006	$	7,628

Amortization expense related to intangible assets totaled $1.7 million in 2019, $1.8 million in 2018 and $1.9 million in 2017. The estimated aggregate future amortization expense for intangible assets remaining as of December 31, 2019 is as follows:



Estimated amortization expense:¹
(In thousands)
For the year ended December 31, 2020	$	1,509
For the year ended December 31, 2021	1,342
For the year ended December 31, 2022	897
For the year ended December 31, 2023	334
For the year ended December 31, 2024	294

¹Excludes the amortization of mortgage servicing rights. Amortization of mortgage servicing rights was $117,000 in 2019, $69,000 in 2018 and $122,000 in 2017.