GOODWILL AND OTHER INTANGIBLES

12 Months Ended

Dec. 31, 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 December 31, 2022 and 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:


	Year Ended December 31,
($ in thousands)	2022		2021		2020
Goodwill, beginning of the year	$	94,301	$	37,144	$	37,144
Goodwill from business combinations	18,190		57,157		—
Goodwill adjustments for purchase accounting	1,821		—		—


Goodwill, end of year	$	114,312	$	94,301	$	37,144

At December 31, 2022, goodwill included $18.2 million recognized in the Deepstack Acquisition and $59.0 million in the PMB Acquisition (refer to Note 2 — Business Combinations). During the year ended December 31, 2022, we adjusted goodwill as a result of updates to the initial fair value of core deposit intangibles and finalization of income tax returns related to PMB. 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, 2022. Based on the annual goodwill impairment tests performed during the years ended December 31, 2022, 2021 and 2020, we determined that there was no impairment of goodwill.

Other Intangibles

Other intangibles are comprised of the following as of the dates indicated:


($ in thousands)	December 31, 2022		December 31, 2021
Core deposit intangibles	$	3,932	$	6,411
Developed technology	2,637		—



Other intangibles	957		—
Total other intangibles	$	7,526	$	6,411

Other intangibles are amortized over their estimated useful lives and reviewed for impairment at least quarterly. As of December 31, 2022, the weighted average remaining amortization period for core deposit intangibles was approximately 6.7 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 intangibles for the periods indicated:


	Year Ended December 31,
($ in thousands)	2022		2021		2020
Other intangibles:
Balance, beginning of year	$	35,958	$	30,904	$	30,904
Other intangibles acquired from business combinations	3,800		5,054		—
Purchase accounting adjustments	(980)		—		—
Balance, end of year	38,778		35,958		30,904
Accumulated amortization:
Balance, beginning of year	29,547		28,271		26,753
Amortization of other intangibles	1,705		1,276		1,518
Balance, end of year	31,252		29,547		28,271
Other intangibles, net	$	7,526	$	6,411	$	2,633

There was no impairment of other intangibles for the years ended December 31, 2022, 2021 and 2020.

The following table presents estimated future amortization expenses of other intangibles as of December 31, 2022:


($ in thousands)	2023		2024		2025		2026		2027		2028 and After		Total
Estimated future amortization expense	$	1,799	$	1,425	$	1,107	$	1,013	$	811	$	1,371	$	7,526