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Note 2 - Business Combination - Estimated Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Feb. 24, 2023
Dec. 31, 2022
Assets      
Goodwill $ 3,592   $ 2,312
Columbia State Bank [Member]      
Assets      
Cash and cash equivalents   $ 336,157  
Loans receivable   63,191  
Premises and equipment   6,342  
Accrued interest receivable   530  
Core deposit intangible ("CDI")   17,438  
Goodwill   1,280  
Other assets   11  
Total assets acquired   424,949  
Liabilities      
Noninterest-bearing accounts   225,567  
Interest-bearing accounts   199,350  
Total deposits   424,917  
Accrued interest payable   4  
Other liabilities   28  
Total liabilities assumed   424,949  
Columbia State Bank [Member] | Reported Value by Acquiree [Member]      
Assets      
Cash and cash equivalents   336,157  
Loans receivable   66,093  
Premises and equipment   6,342  
Accrued interest receivable   530  
Core deposit intangible ("CDI")   0  
Goodwill   0  
Other assets   11  
Total assets acquired   409,133  
Liabilities      
Noninterest-bearing accounts   225,567  
Interest-bearing accounts   199,898  
Total deposits   425,465  
Accrued interest payable   4  
Other liabilities   28  
Total liabilities assumed   425,497  
Columbia State Bank [Member] | Fair Value Adjustment [Member]      
Assets      
Cash and cash equivalents   0  
Loans receivable [1]   (2,902)  
Premises and equipment   0  
Accrued interest receivable   0  
Core deposit intangible ("CDI") [2]   17,438  
Goodwill [3]   1,280  
Other assets   0  
Total assets acquired   15,816  
Liabilities      
Noninterest-bearing accounts   0  
Interest-bearing accounts [4]   (548)  
Total deposits   (548)  
Accrued interest payable   0  
Other liabilities   0  
Total liabilities assumed   $ (548)  
[1] The fair value discount for acquired loans was determined by separate adjustments to reflect a credit risk and marketability component and a yield component reflecting the differential between portfolio and market yields. The discount on acquired loans will be accreted back into interest income using the effective yield method. None of the loans acquired are purchased financial assets with credit deterioration. The fair value of the loans is $63.2 million and the gross amount due is $66.1 million, none of which is expected to be uncollectable.
[2] The fair value adjustment represents the value of the core deposit base assumed in the Branch Purchase based on a study performed by an independent consulting firm. This amount was recorded by the Company as an identifiable intangible asset and will be amortized as an expense on an accelerated basis over the average life of the core deposit base, which is estimated to be 10 years.
[3] The fair value adjustment represents the value of the goodwill calculated from the purchase based on the purchase price, less the fair value of assets acquired net of liabilities assumed. The goodwill of $1.3 million is attributable to the workforce and customer relationships associated with the branches. All of the goodwill is deductible for tax purposes and will be amortized over a 15-year period. The goodwill was assigned to the Commercial and Consumer Banking segment.
[4] The fair value of time deposits was calculated using a discounted cash flow analysis that calculated the present value of the projected cash flows from the portfolio versus the present value of a similar portfolio with a similar maturity profile at current market rates. This adjustment represents a difference in interest rates from the time deposits acquired and the estimated wholesale funding rates used in the application of fair value accounting. The discounted amount will be amortized into expense as an increase in interest expense over the maturity profile of the acquired time deposits.