Note 7 - Goodwill and Intangibles

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Goodwill and Intangibles

Note 7. Goodwill and Intangibles

The following table presents the changes in the carrying amount of goodwill for the years ended December 31, 2023, 2022 and 2021:

	2023		2022		2021
	(dollars in thousands)
Balance at the beginning of period	$	137,607	$	74,066	$	74,066
Acquisition of GFED		—		63,541		—
Acquisition of GFED - measurement period adjustment		1,420		—		—
Balance at the end of period	$	139,027	$	137,607	$	74,066

The measurement period adjustment of $1.4 million during 2023 related to the changes to acquired deferred income taxes of GFED.

The following table presents goodwill by reportable segment:

	December 31, 2023		December 31, 2022		December 31, 2021
	(dollars in thousands)
Commercial banking:
QCBT	$	3,223	$	3,223	$	3,223
CRBT		14,980		14,980		14,980
CSB		9,888		9,888		9,888
GB		110,936		109,516		45,975
	$	139,027	$	137,607	$	74,066

At November 30, 2023 and 2022, the Company’s management performed an annual internal assessment of goodwill at the reporting unit level and determined no impairment existed.

Note 7. Goodwill and Intangibles (continued)

The following table presents the changes in core deposit intangibles (included in Intangibles on the consolidated balance sheets) during the years ended December 31, 2023, 2022 and 2021:

	2023		2022		2021
	(dollars in thousands)
Balance at the beginning of the period	$	16,759	$	9,349	$	11,381
Acquisition of GFED		—		10,264		—
Amortization expense		(2,938)		(2,854)		(2,032)
Balance at the end of the period	$	13,821	$	16,759	$	9,349
Gross carrying amount	$	29,519	$	29,519	$	19,255
Accumulated amortization		(15,698)		(12,760)		(9,906)
Net book value	$	13,821	$	16,759	$	9,349

The following table presents the core deposit intangibles by reportable segment:

	December 31, 2023		December 31, 2022		December 31, 2021
	(dollars in thousands)
Commercial Banking:
CRBT	$	883	$	1,225	$	1,702
CSB		1,430		2,027		2,653
GB		11,508		13,507		4,994
	$	13,821	$	16,759	$	9,349

The following table presents the estimated amortization of the core deposit intangibles:

	Amount
Years ending December 31,	(dollars in thousands)
2024	$	2,761
2025		2,645
2026		2,360
2027		1,874
2028		1,316
Thereafter		2,865
	$	13,821