Goodwill, Intangible Assets, and Servicing Assets

12 Months Ended

Dec. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill, Intangible Assets, and Servicing Assets

GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

The carrying amount of the Company’s goodwill at December 31, 2024 and 2023, was $464.5 million. There was no impairment of goodwill recorded during the year ended December 31, 2024.

Goodwill and other intangible assets generated from business combinations and deemed to have indefinite lives, are not subject to amortization and, instead, are tested for impairment annually at the reporting unit level unless a triggering event occurs, thereby requiring an updated assessment. 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. Impairment exists when the carrying value of the goodwill exceeds the fair value of the reporting unit.

At December 31, 2024, the Company performed a qualitative assessment to test for impairment and management has concluded that goodwill was more than likely not impaired. As such, the Company did not perform a quantitative analysis of goodwill impaired during the year ended December 31, 2024. The Company operates as single business unit, and therefore, goodwill impairment was assessed based on the Company as a whole.

Intangible Assets

The following table provides information regarding core deposit intangibles at December 31, 2024 and 2023:


				December 31, 2024				December 31, 2023
Core Deposit Intangibles Related To:	Amortization Period	Gross Amount		Accumulated Amortization		Carrying Amount		Accumulated Amortization		Carrying Amount
		(Dollars in thousands)

Wilshire Bancorp acquisition	10 years	$	18,138	$	(15,807)	$	2,331	$	(14,203)	$	3,935

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