GOODWILL AND OTHER INTANGIBLES

9 Months Ended

Sep. 30, 2023

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, 2023 and December 31, 2022, we had goodwill of $114.3 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)	2023		2022		2023		2022
Goodwill, beginning of period	$	114,312	$	95,127	$	114,312	$	94,301
Goodwill from business combination	—		18,190		—		18,190
Goodwill adjustments for purchase accounting	—		995		—		1,821


Goodwill, end of period	$	114,312	$	114,312	$	114,312	$	114,312

The acquisition of Deepstack in the third quarter of 2022 resulted in the recognition of $18.2 million in goodwill. We also adjusted goodwill during the three and nine months ended September 30, 2022 as a result of updates to the initial fair value of core deposit intangibles and finalization of income tax returns related to the acquisition of PMB.

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 and determined that no goodwill impairment existed. For the three and nine months ended September 30, 2023, we analyzed indicators related to potential goodwill impairment due to volatility in the financial markets and recent events in the banking sector. Based on this analysis, we did not identify any impairment to goodwill.

Other Intangibles

Other intangibles are comprised of the following at September 30, 2023 and December 31, 2022:


($ in thousands)	September 30, 2023		December 31, 2022
Core deposit intangibles	$	3,078	$	3,932
Developed technology	2,216		2,637



Other intangibles	848		957
Total other intangibles	$	6,142	$	7,526

Other intangibles are amortized over their estimated useful lives and reviewed for impairment at least quarterly. As of September 30, 2023, the weighted average remaining amortization period for core deposit intangibles was approximately 6.2 years. Amortization periods for developed technology and other intangibles acquired in the acquisition of Deepstack 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)	2023		2022		2023		2022
Other intangibles:
Balance, beginning of period	$	38,778	$	34,978	$	38,778	$	35,958
Other intangibles from business combination	—		3,800		—		3,800
Purchase accounting adjustments	—		—		—		(980)
Balance, end of period	38,778		38,778		38,778		38,778
Accumulated amortization:
Balance, beginning of period	32,175		30,301		31,252		29,547
Amortization of other intangibles	461		396		1,384		1,150
Balance, end of period	32,636		30,697		32,636		30,697
Other intangibles	$	6,142	$	8,081	$	6,142	$	8,081

The following table presents estimated future amortization expense of other intangibles as of September 30, 2023:


($ in thousands)	Remainder of 2023		2024		2025		2026		2027		2028 and After		Total
Estimated future amortization expense	$	415	$	1,425	$	1,107	$	1,013	$	811	$	1,371	$	6,142