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GOODWILL AND OTHER INTANGIBLES

3 Months Ended

Mar. 31, 2022

Goodwill and other Intangible Assets [Abstract]

GOODWILL AND OTHER INTANGIBLES [Text Block]

NOTE 7 – GOODWILL AND OTHER INTANGIBLES

Goodwill as of each of March 31, 2022 and December 31, 2021 amounted to $38.6 million. 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 2021, as part of its annual evaluation, the Corporation performed a qualitative assessment to determine if a goodwill impairment test was necessary. This assessment involved identifying the inputs and assumptions that most affects fair value, evaluating the significance of all identified relevant events and circumstances that affect fair value of the reporting entity and evaluating such factors to determine if a positive assertion can be made that it is more likely than not that the fair value of the reporting unit is greater than its carrying amount. As of December 31, 2021, the Corporation concluded that it is more-likely-than-not that the fair value of the reporting units exceeded their carrying value. The Corporation determined that there have been no significant events since the last annual assessment that could indicate potential goodwill impairment on reporting units for which the goodwill is allocated. As a result, no impartment charges for goodwill were recorded during the first quarter of 2022.

There were no changes in the carrying amount of goodwill during the quarter ended March 31, 2022. The changes in the carrying amount of goodwill attributable to operating segments during 2020 and the quarter ended March 31, 2021 are reflected in the following table

		Mortgage Banking		Consumer (Retail) Banking		Commercial and Corporate Banking		United States Operations		Total
(In thousands)
Goodwill, January 1, 2020		$	-	$	1,406	$	-	$	26,692	$	28,098
	Merger and acquisitions (1)		574		794		4,935		-		6,303
	Measurement period adjustment (1)		385		533		3,313		-		4,231
Goodwill, December 31, 2020		$	959	$	2,733	$	8,248	$	26,692	$	38,632
	Measurement period adjustment (2)		53		74		(148)		-		(21)
Goodwill, March 31, 2021		$	1,012	$	2,807	$	8,100	$	26,692	$	38,611

(1)	Recognized in connection with the BSPR acquisition on September 1, 2020. Refer to Note 2 - Business Combination included in the 2021 Annual Report on Form 10-K for additional information.
(2)	Relates to the fair value estimate update performed within one year of the closing of the BSPR acquisition, in accordance with ASC Topic 805, "Business Combinations"("ASC 805").

The following table shows the gross amount and accumulated amortization of the Corporation’s other intangible assets subject to amortization as of the indicated dates:

		As of		As of
		March 31,		December 31,
		2022		2021
(Dollars in thousands)
Core deposit intangible:
Gross amount		$	87,544	$	87,544
Accumulated amortization			(60,896)		(58,973)
	Net carrying amount	$	26,648	$	28,571

Remaining amortization period (in years)			7.8		8.0

Purchased credit card relationship intangible:
Gross amount		$	3,800	$	3,800
Accumulated amortization			(2,927)		(2,602)
	Net carrying amount	$	873	$	1,198

Remaining amortization period (in years)			1.4		1.7

Insurance customer relationship intangible:
Gross amount		$	1,067	$	1,067
Accumulated amortization			(940)		(902)
	Net carrying amount	$	127	$	165

Remaining amortization period (in years)			0.8		1.1

During the quarters ended March 31, 2022 and 2021, the Corporation recognized $2.3 million and $3.0 million, respectively, in amortization expense on its other intangibles subject to amortization.

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 March 31, 2022.

The estimated aggregate annual amortization expense related to the intangible assets subject to amortization for future periods was as follows as of March 31, 2022:

		Amount
(In thousands)
2022	$	6,550
2023		7,775
2024		6,429
2025		3,437
2026		872
2027 and after		2,585