Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2020

Goodwill And Intangible Assets Disclosure [Abstract]

Note 7 -- Goodwill and Intangible Assets

The Company has goodwill from business combinations, intangible assets from branch acquisitions, identifiable intangible assets assigned to core deposit relationships and customer lists of business lines acquired. The following table presents gross carrying amount and accumulated amortization by major intangible asset class as of December 31, 2020 and 2019 (in thousands):

	2020				2019
	Gross Carrying		Accumulated		Gross Carrying		Accumulated
	Value		Amortization		Value		Amortization
Goodwill not subject to amortization	$	108,752	$	3,760	$	108,752	$	3,760
Intangibles from branch acquisition		3,015		3,015		3,015		3,015
Core deposit intangibles		32,355		20,910		32,355		17,746
Customer list intangibles		16,389		5,222		16,129		3,917
	$	160,511	$	32,907	$	160,251	$	28,438

All goodwill was assigned to the banking segment of the Company. This goodwill is not deductible for tax purposes.

The unpaid principal balance of mortgage loans serviced for others was $126.8 million and $186.2 million at December 31, 2020 and 2019, respectively. The following table summarizes the activity pertaining to the mortgage servicing rights included in intangible assets as of December 31, 2020 and 2019 (in thousands):

	December 31, 2020			December 31, 2019
Beginning Balance	$	1,444		$	2,101
Acquired Balance		—			—
Mortgage Servicing rights capitalized		—			—
Valuation reserve		(273	)		(380	)
Mortgage Servicing rights amortized		(593	)		(411	)
I/O strip		(62	)		134
Ending Balance	$	516		$	1,444

Total amortization expense for the years ended December 31, 2020, 2019 and 2018 was as follows (in thousands):

	2020		2019		2018
Core deposit intangibles	$	3,164	$	3,729	$	2,544
Customer list intangibles		1,305		1,269		363
Mortgage Servicing Rights		593		850		308
	$	5,062	$	5,848	$	3,215

Estimated amortization expense for each of the five succeeding years is shown in the table below (in thousands):

For year ended 12/31/21	$	4,408
For year ended 12/31/22		3,526
For year ended 12/31/23		3,214
For year ended 12/31/24		2,946
For year ended 12/31/25		2,633

In accordance with the provisions of SFAS 142 ”Goodwill and Other Intangible Assets,” codified in ASC 350, the Company performed testing of goodwill for impairment as of September 30, 2019 and 2018, and determined, as of each of these dates, that goodwill was not impaired. Management also concluded that the remaining amounts and amortization periods were appropriate for all intangible assets. The weighted average amortization period for core deposit, customer lists and total intangibles was 3.32, 4.92 and 4.11, respectively, at December 31, 2020.