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Goodwill and Other Intangible Assets
 12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets, Net
NOTE 7.  GOODWILL AND OTHER INTANGIBLE ASSETS, NET
In performing our annual goodwill assessment in the fourth quarter of 2022 of our two reportable segments – Commercial Banking and Civic, we conducted a qualitative assessment of our Commercial Banking reporting unit and a quantitative assessment of our Civic reporting unit. In performing the qualitative assessment, we considered relevant events and circumstances that may affect the fair value or carrying amount of the Commercial Banking reporting unit. The events and circumstances we considered included current macroeconomic conditions, current industry conditions and the financial performance of the reporting unit and we concluded that it was not more-likely-than-not that goodwill is impaired at the Commercial Banking reporting unit level. Furthermore, in connection with our plans to restructure the Civic reporting unit, we elected to bypass the qualitative assessment and proceeded directly to a quantitative test. We measured the fair value of the Civic reporting unit consistent with the fair value measurement principle that it is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As a result of the quantitative assessment, we recorded a goodwill impairment of $29.0 million at the Civic reporting unit in the fourth quarter of 2022 as the estimated fair value of the reporting unit was less than the carrying value. This was a non-cash charge to earnings and had no impact on our regulatory capital ratios, cash flows, or liquidity position.
The unprecedented decline in economic conditions in the banking industry triggered by the failure of two large regional banks caused a significant decline in stock market valuations in March 2023, including our stock price. These triggering events indicated that goodwill related to our single reporting unit may be impaired and resulted in us performing a goodwill impairment assessment in the first quarter of 2023. We applied the market approach using an average share price of the Company's stock and a control premium to determine the fair value of the reporting unit. The control premium was based upon management's judgment using historical information of control premiums for completed bank acquisitions. As a result, we recorded a goodwill impairment of $1.4 billion in the first quarter of 2023 as the estimated fair value of equity was less than book value. This was a non-cash charge to earnings and had no impact on our regulatory capital ratios, cash flows or liquidity position.
In performing our annual goodwill impairment testing in the fourth quarter of 2023 we considered relevant events and circumstances that may affect the fair value or carrying amount of our reporting unit. The events and circumstances we considered included macroeconomic conditions, industry conditions, and our financial performance. Based on our qualitative assessment, we concluded that there were no conditions, changes in operations, or results that indicated a triggering event had occurred in the fourth quarter of 2023. Thus, a quantitative assessment was not required and we determined that it was more likely than not that the fair value of the reporting unit was greater than its carrying value and there was no evidence of impairment.
The following table presents the changes in the carrying amount of goodwill for the years indicated:
 Goodwill
 (In thousands)
Balance, December 31, 2021$1,405,736 
Impairment - Civic(29,000)
Balance, December 31, 20221,376,736 
Impairment (1,376,736)
Merger with PacWest Bancorp198,627 
Balance, December 31, 2023$198,627 
Our other intangible assets with definite lives are CDI and CRI. CDI and CRI are amortized over their respective estimated useful lives and reviewed for impairment at least quarterly. The amortization expense represents the estimated decline in the value of the underlying deposits or customer relationships acquired.
The following table presents the changes in CDI and CRI and the related accumulated amortization for the years indicated:
 Year Ended December 31,
202320222021
 (In thousands)
Gross Amount of CDI and CRI:   
Balance, beginning of year$91,550 $133,850 $109,646 
Addition from the PacWest Bancorp merger145,464 — — 
Addition from the HOA Business acquisition— — 33,300 
Addition from the Civic acquisition— — 750 
Fully amortized portion(750)(42,300)(9,846)
Balance, end of year236,264 91,550 133,850 
Accumulated Amortization:
Balance, beginning of year(60,169)(88,893)(86,005)
Amortization expense(11,368)(13,576)(12,734)
Fully amortized portion750 42,300 9,846 
Balance, end of year(70,787)(60,169)(88,893)
Net CDI and CRI, end of year$165,477 $31,381 $44,957 
The following table presents the estimated aggregate future amortization expense for our current intangible assets as of the date indicated:
December 31, 2023
(In thousands)
Year Ending December 31,
2024$32,533 
202527,657 
202624,411 
202721,166 
202817,921 
Thereafter41,789 
Net CDI and CRI$165,477