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Note 8 - Core Deposit and Customer List Intangible Assets

12 Months Ended

Dec. 31, 2023

Intangible Assets Disclosure [Text Block]

(8) Core Deposit and Customer List Intangible Assets

Bancorp recorded CDI assets of $13 million, $4 million, $2 million and $3 million in association with the acquisition of CB in 2022, KB in 2021, KSB in 2019 and TBOC in 2013, respectively.

Changes in the net carrying amount of CDI assets follow:

Years ended December 31, (in thousands)	2023			2022			2021
Balance at beginning of period	$	14,958		$	5,596		$	1,962
Added from acquisition		—			12,724			3,405
Provisional period adjustment		—			—			999
Amortized to expense		(3,014	)		(3,362	)		(770	)
Balance at end of period	$	11,944		$	14,958		$	5,596

As a result of the CB acquisition, Bancorp also recorded intangible assets totaling $14 million associated with the customer lists of the acquired WM&T and LFA businesses. Of this total, $12 million was attributed to WM&T and $2 million was attributed to LFA. Similar to CDI assets, these intangibles also amortize over their estimated useful lives.

As previously noted, Bancorp’s interest in LFA was sold effective December 31, 2022. As a result, the remaining CLI associated with LFA was written off at the date of sale and ultimately reflected as a component of the $870,000 pre-tax loss on the disposition of LFA that was recorded on Bancorp’s consolidated income statements for the fourth quarter and year ended December 31, 2022.

The carrying amount of the CLI assets follows:

Year ended December 31, (in thousands)	2023			2022
Balance at beginning of period	$	10,032		$	-
Added from acquisition		—			14,360
Provisional period adjustment		—			—
Disposition of LFA		—			(2,146	)
Amortized to expense		(1,672	)		(2,182	)
Balance at end of period	$	8,360		$	10,032

Future CDI and CLI amortization expense is estimated as follows:

(in thousands)	CDI		CLI
2024		2,686		1,520
2025		2,375		1,368
2026		2,063		1,216
2027		1,752		1,064
2028		1,339		912
2029		888		760
2030		576		608
2031		265		456
2032		-		304
2033		-		152
Total future amortization expense	$	11,944	$	8,360