GOODWILL AND OTHER INTANGIBLE ASSETS, NET

3 Months Ended

Mar. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS, NET

At March 31, 2017, the Company had goodwill of $37.1 million related to the following acquisitions: Banco Popular North America's Southern California branches, RenovationReady, CS Financial, Inc. (CS Financial), The Private Bank of California, and Beach Business Bank.

The Company conducts its evaluation of goodwill impairment as of August 31 each year, and more frequently if events or circumstances indicate that there may be impairment. The Company completed its annual goodwill impairment test as of August 31, 2016 and determined that no goodwill impairment existed. The Company expects to perform its next annual goodwill impairment test at August 31, 2017.

Core deposit intangibles are amortized over their useful lives ranging from 4 to 10 years. As of March 31, 2017, the weighted average remaining amortization period for core deposit intangibles was approximately 5.7 years.



	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
	(In thousands)
March 31, 2017
Core deposit intangibles	$	30,904	$	18,713	$	12,191
December 31, 2016
Core deposit intangibles	$	30,904	$	17,656	$	13,248
Customer relationship intangible	670		391		279
Trade name intangible	90		—		90

Aggregate amortization of intangible assets was $1.1 million and $1.3 million for the three months ended March 31, 2017 and 2016, respectively. The following table presents estimated future amortization expenses as of March 31, 2017:



	Remainder of 2017		2018		2019		2020		2021 and After		Total
	(In thousands)
Estimated future amortization expense	$	2,838	$	3,007	$	2,195	$	1,518	$	2,633	$	12,191

The Company wrote off goodwill of $2.1 million, which was previously allocated to Mortgage Banking segment, against the gain on disposal of discontinued operations during the three months ended March 31, 2017. See Note 2 for additional information. The Company also wrote off a customer relationship intangible of $246 thousand and a trade name intangible of $90 thousand related to RenovationReady during the three months ended March 31, 2017. RenovationReady was acquired in 2014 and provided specialized loan services to financial institutions and mortgage bankers that originate agency eligible residential renovation and construction loan products.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details