Note 14 - Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

14. Goodwill and Other Intangible Assets

Goodwill. Total goodwill was $375.7 million as of September 30, 2023 and remains unchanged compared with December 31, 2022. The Company completed its annual goodwill impairment testing and concluded that goodwill was not impaired as of December 31, 2022. Additionally, the Company reviewed the macroeconomic conditions on its business performance and market capitalization as a result of the banking industry market disruptions during the first nine months of 2023 and concluded that goodwill was not impaired as of September 30, 2023.

Core Deposit Intangibles. As a result of the acquisition of HSBC’s West Coast mass retail market consumer banking business and retail business banking business, the Company added core deposit intangible of $3.1 million in 2022.

The following table presents the gross carrying amount and accumulated amortization of core deposits intangible assets as of September 30, 2023 and December 31, 2022:

	September 30, 2023			December 31, 2022
	(In thousands)
Gross balance	$	10,562		$	10,562
Accumulated amortization		(5,041	)		(4,291	)
Impairment		(1,227	)		(918	)
Net carrying balance	$	4,294		$	5,353

There were no impairment write-downs on core deposit intangibles for the three months ended September 30, 2023 and 2022 and $309 thousand for the nine months ended September 30, 2023 included in amortization of core deposit intangibles. There was $918 thousand impairment write-down for the year ended December 31, 2022 included in amortization of core deposit intangibles on the Consolidated Statements of Operations and Comprehensive Income.

The Company amortizes the core deposit intangibles based on the projected useful lives of the related deposits. The amortization expense related to the core deposit intangible assets was $250 thousand for each of the three months ended September 30, 2023 and 2022.

	Amount
	(In thousands)
2023	$	250
2024		1,001
2025		946
2026		870
2027		870
Thereafter		357
Total	$	4,294