Goodwill, Intangible Assets, and Servicing Assets

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill, Intangible Assets, and Servicing Assets

GOODWILL AND OTHER INTANGIBLE ASSETS

The carrying amount of the Company’s goodwill as of December 31, 2022 and 2021 was $464.5 million. Goodwill represents the excess of the purchase price over the sum of the estimated fair values of the tangible and identifiable intangible assets acquired less the estimated fair value of the liabilities assumed. Goodwill has an indefinite useful life and is evaluated for impairment annually or more frequently if events and circumstances indicate that the asset might be impaired. An impairment loss is recognized to the extent that the carrying amount exceeds the asset’s fair value. For the year ended December 31, 2022, the Company performed a qualitative assessment to test for impairment and the management has concluded that there was no impairment. As the Company operates as single business unit, goodwill impairment was assessed based on the Company as a whole. Goodwill is not amortized for book purposes and is not tax deductible.

Core deposit intangible assets are amortized over their estimated lives, which range from seven to ten years. The following table provides information regarding the core deposit intangibles as of the dates indicated:

				December 31, 2022				December 31, 2021
Core Deposit Intangibles Related To:	Amortization Period	Gross Amount		Accumulated Amortization		Carrying Amount		Accumulated Amortization		Carrying Amount
		(Dollars in thousands)
Foster Bankshares acquisition	10 years	$	2,763	$	(2,668)	$	95	$	(2,504)	$	259
Wilshire Bancorp acquisition	10 years	18,138		(12,507)		5,631		(10,726)		7,412
Total		$	20,901	$	(15,175)	$	5,726	$	(13,230)	$	7,671

Total amortization expense on core deposit intangibles was $1.9 million and $2.0 million for the years ended December 31, 2022 and 2021, respectively. The estimated future amortization expense for core deposit intangibles is as follows: $1.8 million in 2023, $1.6 million in 2024, $1.5 million in 2025, and $829 thousand in 2026.