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Goodwill and Other Intangible Assets
 12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets, Net
NOTE 7.  GOODWILL AND OTHER INTANGIBLE ASSETS, NET
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.
During the year ended December 31, 2024, the Company recorded adjustments related to the Merger resulting in an increase to goodwill of $15.9 million, within the one-year measurement period subsequent to the acquisition date of November 30, 2023. These adjustments largely related to the estimated fair value of acquired loans.
In performing our annual goodwill impairment testing in the fourth quarter of 2024 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 2024. 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, 2022$1,376,736 
Impairment (1,376,736)
Addition from the Merger with PacWest Bancorp198,627 
Balance, December 31, 2023$198,627 
Purchase accounting adjustments - Merger with PacWest Bancorp15,894 
Balance, December 31, 2024$214,521 
Our other intangible assets with definite lives are CDI and CRI. CDI and CRI are amortized on an accelerated basis 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,
202420232022
 (In thousands)
Gross Amount of CDI and CRI:   
Balance, beginning of year$236,264 $91,550 $133,850 
Addition from the PacWest Bancorp merger— 145,464 — 
Fully amortized portion(57,500)(750)(42,300)
Balance, end of year178,764 236,264 91,550 
Accumulated Amortization:
Balance, beginning of year(70,787)(60,169)(88,893)
Amortization expense(32,533)(11,368)(13,576)
Fully amortized portion57,500 750 42,300 
Balance, end of year(45,820)(70,787)(60,169)
Net CDI and CRI, end of year$132,944 $165,477 $31,381 
There was no impairment of CDI and CRI for the years ended December 31, 2024, 2023, and 2022.
The following table presents the estimated aggregate future amortization expense for our current CDI and CRI as of the date indicated:
December 31, 2024
(In thousands)
Year Ending December 31,
2025$27,657 
202624,412 
202721,166 
202817,920 
202914,675 
Thereafter27,114 
Net CDI and CRI$132,944