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Goodwill
9 Months Ended
Sep. 30, 2013
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill
Goodwill
The Company’s goodwill represents the excess of the purchase price over the fair value of net assets acquired in the purchases of North Pacific Bank in 1998, Western Washington Bancorp in 2006, and Valley on July 15, 2013. The Company’s goodwill is assigned to the Bank and is evaluated for impairment at the Bank level (reporting unit).
At September 30, 2013, the Company’s step-one analysis concluded that the reporting unit’s fair value was greater than its carrying value and therefore no goodwill impairment charges were required for the nine months ended September 30, 2013. The Company did not record goodwill impairment charges for the three or nine months ended September 30, 2013 or 2012. Even though there was no goodwill impairment at September 30, 2013, adverse events may impact the recoverability of goodwill and could result in a future impairment charge which could have a material impact on the Company’s Condensed Consolidated Financial Statements.