GOODWILL AND OTHER INTANGIBLES

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Goodwill represents the excess consideration paid for net assets acquired in a business combination over their fair values. At September 30, 2022 and December 31, 2021, we had goodwill of $114.3 million and $94.3 million.

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


	Three Months Ended September 30,				Nine Months Ended September 30,
($ in thousands)	2022		2021		2022		2021
Goodwill, beginning of period	$	95,127	$	37,144	$	94,301	$	37,144
Goodwill from business combination	18,190		—		18,190		—
Goodwill adjustments for purchase accounting	995		—		1,821		—


Goodwill, end of period	$	114,312	$	37,144	$	114,312	$	37,144
Accumulated impairment losses at end of period	$	2,100	$	2,100	$	2,100	$	2,100

The acquisition of Deepstack resulted in the recognition of $18.2 million in goodwill. We also adjusted goodwill as a result of updates to the initial fair value of core deposit intangibles and finalization of income tax returns related to the PMB acquisition during the three and nine months ended September 30, 2022. During the measurement period (not to exceed one year from the acquisition date), the fair value of assets acquired and liabilities assumed are subject to adjustment if additional information becomes available to indicate a more accurate or appropriate value for an asset or liability.

We evaluate goodwill for impairment as of October 1 each year, and more frequently if events or circumstances indicate that there may be impairment. We completed our most recent annual goodwill impairment test as of October 1, 2021 and determined that no goodwill impairment existed. During the three and nine months ended September 30, 2022, there were no events or circumstances that indicated an interim impairment test of goodwill was necessary.

Other Intangibles

Other intangibles are comprised of the following at September 30, 2022 and December 31, 2021:


($ in thousands)	September 30, 2022		December 31, 2021
Core deposit intangibles	$	4,281	$	6,411
Developed technology	2,800		—



Other intangibles	1,000		—
Total other intangibles	$	8,081	$	6,411

Other intangibles are amortized over their estimated useful lives and reviewed for impairment at least quarterly. As of September 30, 2022, the weighted average remaining amortization period for core deposit intangibles was approximately 6.8 years. Amortization periods for developed technology and other intangibles acquired in the Deepstack acquisition have useful lives ranging from 3 to 10 years.

The following table presents changes in the carrying amount of other intangibles for the periods indicated:


	Three Months Ended September 30,				Nine Months Ended September 30,
($ in thousands)	2022		2021		2022		2021
Other intangibles:
Balance, beginning of period	$	34,978	$	30,904	$	35,958	$	30,904
Other intangibles from business combination	3,800		—		3,800		—
Purchase accounting adjustments	—		—		(980)		—
Balance, end of period	38,778		30,904		38,778		30,904
Accumulated amortization:
Balance, beginning of period	30,301		28,835		29,547		28,271
Amortization of other intangibles	396		282		1,150		846
Balance, end of period	30,697		29,117		30,697		29,117
Other intangibles	$	8,081	$	1,787	$	8,081	$	1,787

The following table presents estimated future amortization expense of other intangibles as of September 30, 2022:


($ in thousands)	Remainder of 2022		2023		2024		2025		2026		2027 and After		Total
Estimated future amortization expense	$	526	$	1,799	$	1,425	$	1,110	$	1,013	$	2,208	$	8,081