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GOODWILL AND OTHER INTANGIBLES | 9 Months Ended
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Sep. 30, 2021
Goodwill And Intangible Assets Disclosure [Abstract] |
GOODWILL AND OTHER INTANGIBLES [Text Block] | NOTE 14 – GOODWILL AND OTHER INTANGIBLES Goodwill as of each September 30, 2021 and December 31, 2020 amounted to $38.6 million. As of September 30, 2021, the Corporation’s goodwill includes $28.1 million related to the United States (Florida) reporting unit and $10.5 million recorded in connection with the acquisition of BSPR on September 1, 2020. The Corporation’s policy is to assess goodwill and other intangibles for impairment on an annual basis during the fourth quarter of each year, and more frequently if events or circumstances lead management to believe that the values of goodwill or other intangibles may be impaired. During the fourth quarter of 2020, as part of its annual evaluation, the Corporation bypassed the qualitative assessment and proceeded directly to perform quantitative analyses to test for impairment the goodwill of the Florida reporting unit. Based on analyses under both the market and discounted cash flow approaches, the estimated fair value of the Florida reporting unit well exceeded the carrying amount of the entity, including goodwill as of the evaluation date (October 1). During the first nine months of 2021, the Corporation evaluated whether there have been any triggering events to accelerate the impairment analysis. The Corporation determined that there have been no significant events since the last annual assessment for the Florida reporting unit and the date on which the Corporation completed the acquisition of BSPR that could indicate potential goodwill impairment on reporting units for which the goodwill is allocated. The changes in the carrying amount of goodwill attributable to operating segments are reflected in the following table. The adjustments for 2020 and 2021 are measurement period adjustments, primarily related to post closing purchase price adjustments to account for differences between BSPR’s actual excess capital at closing date compared to the BSPR’s excess capital amount used for the preliminary closing statement at acquisition date. In August 2021, the Corporation finalized its fair value analysis of the acquired assets and assumed liabilities associated with the BSPR acquisition.
|  | Mortgage Banking |  | Consumer (Retail) Banking |  | Commercial and Corporate Banking |  | United States Operations |  | Total
(In thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill, January 1, 2020 | $ | - |  | $ | - |  | $ | - |  | $ | 28,098 |  | $ | 28,098
| Merger and acquisitions |  | 574 |  |  | 794 |  |  | 4,935 |  |  | - |  |  | 6,303
| Adjustments |  | 385 |  |  | 533 |  |  | 3,313 |  |  | - |  |  | 4,231
Goodwill, December 31, 2020 | $ | 959 |  | $ | 1,327 |  | $ | 8,248 |  | $ | 28,098 |  | $ | 38,632
| Adjustments |  | 53 |  |  | 74 |  |  | (148) |  |  | - |  |  | (21)
Goodwill, September 30, 2021 | $ | 1,012 |  | $ | 1,401 |  | $ | 8,100 |  | $ | 28,098 |  | $ | 38,611
The Corporation had other intangible assets of $32.7 million as of September 30, 2021, consisting of $30.5 million in core deposit intangibles, $2.0 million in purchased credit card relationship intangibles, and $0.2 million in insurance customer relationship intangibles. The following table shows the gross amount and accumulated amortization of the Corporation’s intangible assets as of the indicated dates:
|  |  | As of |  | As of
|  |  | September 30, |  | December 31,
|  |  | 2021 |  | 2020
(Dollars in thousands) |  |  |  |  |
Core deposit intangible: |  |  |  |  |
| Gross amount | $ | 87,544 |  | $ | 87,096
| Accumulated amortization (1) |  | (57,050) |  |  | (51,254)
| Net carrying amount | $ | 30,494 |  | $ | 35,842
Remaining amortization period (in years) |  | 8.3 |  |  | 9.0
Purchased credit card relationship intangible: |  |  |  |  |
| Gross amount | $ | 28,265 |  | $ | 28,265
| Accumulated amortization (2) |  | (26,273) |  |  | (23,532)
| Net carrying amount | $ | 1,992 |  | $ | 4,733
Remaining amortization period (in years) |  | 1.9 |  |  | 2.7
Insurance customer relationship intangible: |  |  |  |  |
| Gross amount | $ | 1,067 |  | $ | 1,067
| Accumulated amortization (3) |  | (864) |  |  | (749)
| Net carrying amount | $ | 203 |  | $ | 318
Remaining amortization period (in years) |  | 1.3 |  |  | 2.1
(1) | For the quarter and nine-month period ended September 30, 2021, the amortization expense of core deposit intangibles amounted to $1.9 million and $5.8 million, respectively (2020 - $0.8 million and $1.2 million, respectively).
(2) | For the quarter and nine-month period ended September 30, 2021, the amortization expense of the purchased credit card relationship intangible asset amounted to $0.9 million and $2.7 million, respectively (2020 - $0.7 million and $1.6 million, respectively).
(3) | For the quarter and nine-month period ended September 30, 2021, the amortization expense of the insurance customer relationship intangible asset amounted to $38 thousand and $0.1 million, respectively (2020 - $39 thousand and $0.1 million, respectively).
The Corporation amortizes core deposit intangibles and customer relationship intangibles based on the projected useful lives of the related deposits in the case of core deposit intangibles, and over the projected useful lives of the related client relationships in the case of customer relationship intangibles. As mentioned above, the Corporation analyzes core deposit intangibles and customer relationship intangibles annually for impairment, or sooner if events and circumstances indicate possible impairment. Factors that may suggest impairment include customer attrition and run-off. Management is unaware of any events and/or circumstances that would indicate a possible impairment to the core deposit intangibles or customer relationship intangibles as of September 30, 2021.
The estimated aggregate annual amortization expense related to the intangible assets for future periods is as follows as of September 30, 2021:
|  |  | Amount |
|  |  | (In thousands) |
| 2021 | $ | 2,755 |
| 2022 |  | 8,816 |
| 2023 |  | 7,736 |
| 2024 |  | 6,416 |
| 2025 |  | 3,509 |
| 2026 and after |  | 3,457 |

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