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GOODWILL AND OTHER INTANGIBLES | 12 Months Ended
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Dec. 31, 2017
GOODWILL AND OTHER INTANGIBLES [Text Block] | NOTE 15 – GOODWILL AND OTHER INTANGIBLES Goodwill as of December 31, 2017 and 2016 amounted to $28.1 million, recognized as part of “Other Assets” in the consolidated statements of financial condition. The Corporation conducted its annual evaluation of goodwill and other intangibles during the fourth quarter of 201 7. The Corporation’s goodwill is related to the acquisition of FirstBank Florida in 2005. The Corporation bypassed the qualitative assessment in 2017 and p roceeded directly to perform the first step of the two-step goodwill impairment test. The Step 1 evaluation of goodwill allocated to the Florida reporting unit under both valuation approaches (market and discounted cash flow analysis) indicated that the fa ir value of the unit was above the carrying amount of its equity book value as of the valuation date (October 1); therefore, the completion of Step 2 was not required. Based on the analyse s under both the market and discounted cash flow approaches, the est imated fair value of the equity of the reporting unit exceeded the carrying amount of the entity, including goodwill at the evaluation date. Goodwill was not impaired as of December 31, 201 7 or 201 6, nor was any goodwill written off due to impairment durin g 201 7, 201 6, or 201 5. In connection with the acquisition of the FirstBank-branded credit card loan portfolio in the second quarter of 2012, the Corporation recognized a purchased credit card relationship intangible of $24.5 million, which is being amort ized over the remaining estimated life of 3.9 years on an accelerated basis based on the estimated attrition rate of the purchased credit card accounts, which reflects the pattern in which the economic benefits of the intangible asset are consumed. These b enefits are consumed as the revenue stream generated by the cardholder relationship is realized. The core deposit intangible acquired in the February 2015 Doral Bank transaction amounted to $5.8 million ($3.7 million as of December 3 1, 2017 and $4.4 million as of December 31, 2016). In the first quarter of 2016, FirstBank Insurance Agency acquired certain insurance customer accounts and related customer records and recognized an insurance customer relationship intangible of $1.1 million ($0.8 million as of December 31, 2017 and $0.9 million as of December 31, 2016), which is being amortized over the next 5.0 years on a straight-line basis. The acquired accounts have a direct relationship to the previous mortgage loan portfolio acquisitions from Doral Bank and D oral Financial in 2015 and 2014.
The following table shows the gross amount and accumulated amortization of the Corporation’s intangible assets recognized as part of Other Assets in the consolidated statements of financial condition:
| As of
| December 31,
| 2017 |  | 2016
(Dollars in thousands) |  |  |  |  |
Core deposit intangible: |  |  |  |  |
Gross amount, beginning of period | $ | 51,664 |  | $ | 51,664
Accumulated amortization (1) |  | (46,186) |  |  | (44,466)
Net carrying amount | $ | 5,478 |  | $ | 7,198
Remaining amortization period |  | 7.0 years |  |  | 8.1 years
Purchased credit card relationship intangible: |  |  |  |  |
Gross amount | $ | 24,465 |  | $ | 24,465
Accumulated amortization (2) |  | (16,465) |  |  | (13,934)
Net carrying amount | $ | 8,000 |  | $ | 10,531
Remaining amortization period |  | 3.9 years |  |  | 5 years
Insurance customer relationship intangible: |  |  |  |  |
Gross amount | $ | 1,067 |  | $ | 1,067
Accumulated amortization (3) |  | (292) |  |  | (140)
Net carrying amount | $ | 775 |  | $ | 927
Remaining amortization period |  | 5.0 years |  |  | 6.1 years
(1) For the years ended December 31, 2017 and 2016, the amortization expense of core deposit intangibles amounted to $1.7 million and $2.0 million, respectively.
(2) For the years ended December 31, 2017 and 2016, the amortization expense of the purchased credit card relationship intangible amounted to $2.5 million and $2.8 million, respectively.
(3) For the years ended December 31, 2017 and 2016, the amortization expense of the insurance customer relationship intangible amounted to $0.2 million and $0.1 million, respectively.
The estimated aggregate annual amortization expense related to the intangible assets for future periods is as follows:
|  |  | Amount |
| (In thousands) |  |  |
| 2018 | $ | 3,591 |
| 2019 |  | 3,088 |
| 2020 |  | 2,851 |
| 2021 |  | 2,658 |
| 2022 |  | 915 |
| 2023 and after |  | 1,150 |

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- Definition The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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