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Note 8 - Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Text Block]

8. Goodwill and Other Intangible Assets

Goodwill. Total goodwill was $375.7 million as of December 31, 2023 and 2022. Additional information pertaining to the Company’s accounting policy for goodwill is summarized in Note 1 — Summary of Significant Accounting Policies — Goodwill and Other Intangible Assets. The Company completed its annual goodwill impairment testing and additionally reviewed the macroeconomic conditions on its business performance and market capitalization and concluded that goodwill was not impaired as of December 31, 2023 and 2022.

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 intangibles of $3.1 million in 2022. The following table presents the gross carrying amount and accumulated amortization of core deposits intangible assets as of December 31, 2023 and 2022:

	*December 31,*
	*2023*			*2022*
	(In thousands)
Gross balance	$	10,562		$	10,562
Accumulated amortization		(5,291	)		(4,291	)
Impairment		(1,227	)		(918	)
Net carrying balance	$	4,044		$	5,353

There were $1.2 million and $918 thousand in impairment write-downs on core deposit intangibles for the year ended December 31, 2023 and 2022, respectively, included in amortization of core deposit intangibles on the Consolidated Statements of Operations and Comprehensive Income. No impairment write-downs were recorded on core deposit intangibles for the years ended December 31, 2021.

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 $1.3 million, $1.9 million and $687 thousand for the years ended December 31, 2023, 2022 and 2021, respectively.

	*Amount*
	(In thousands)
2024	$	1,001
2025	$	947
2026	$	870
2027	$	870
thereafter	$	356
Total	$	4,044