Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

The following table presents the changes in the carrying amount of goodwill:


	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2023		2022		2023		2022
Balance at beginning of period	$	1,998,716	$	1,991,534	$	1,998,716	$	1,036,994
Acquisitions and adjustments	—		11,065		—		965,605
Balance at end of period	$	1,998,716	$	2,002,599	$	1,998,716	$	2,002,599

The increase in goodwill for the three and nine months ended September 30, 2022 was due to the First Midwest merger. See Note 3 to the consolidated financial statements for additional detail regarding this transaction.

Old National performed the required annual goodwill impairment test as of August 31, 2023 and concluded that there was no impairment. No events or circumstances since the August 31, 2023 annual impairment test were noted that would indicate it was more likely than not a goodwill impairment exists.

The gross carrying amounts and accumulated amortization of other intangible assets were as follows:


(dollars in thousands)	Gross Carrying Amount		Accumulated Amortization and Impairment		Net Carrying Amount
September 30, 2023
Core deposit	$	143,511	$	(68,312)	$	75,199
Customer trust relationships	52,621		(19,701)		32,920
Total other intangible assets	$	196,132	$	(88,013)	$	108,119

December 31, 2022
Core deposit	$	170,642	$	(80,951)	$	89,691
Customer trust relationships	56,243		(19,529)		36,714
Total other intangible assets	$	226,885	$	(100,480)	$	126,405

Other intangible assets consist of core deposit intangibles and customer relationship intangibles and are being amortized primarily on an accelerated basis over their estimated useful lives, generally over a period of 5 to 15 years.

Old National reviews other intangible assets for possible impairment whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. No impairment charges were recorded during the nine months ended September 30, 2023 or 2022. Total amortization expense associated with intangible assets was

$6.0 million and $18.3 million for the three and nine months ended September 30, 2023, respectively, compared to $7.1 million and $19.1 million for the three and nine months ended September 30, 2022, respectively.

Estimated amortization expense for future years is as follows:


(dollars in thousands)
2023 remaining	$	5,869
2024	21,239
2025	18,358
2026	15,555
2027	12,867
Thereafter	34,231
Total	$	108,119