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GOODWILL AND OTHER INTANGIBLES
 9 Months Ended
Sep. 30, 2022
Goodwill and other Intangible Assets [Abstract]  
GOODWILL AND OTHER INTANGIBLES [Text Block]
NOTE 6 – GOODWILL AND OTHER INTANGIBLES
 
 
Goodwill
 
as
 
of
 
each
 
of
 
September
 
30,
 
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 affect
 
fair value, including
evaluating
 
significant
 
and
 
relevant
 
events
 
impacting
 
each
 
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
 
each 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
 
impairment charges
 
for
goodwill were recorded during the first nine months of 2022.
There
 
were
no
 
changes in
 
the carrying
 
amount of
 
goodwill during
 
the quarter
 
and
 
nine-month
 
period ended
 
September 30,
 
2022.
The
 
changes
 
in
 
the
 
carrying
 
amount
 
of
 
goodwill
 
attributable
 
to
 
operating
 
segments
 
during
 
2020
 
and
 
the
 
nine-month
 
period
 
ended
September 30, 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, September 30, 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
 
intangible
 
assets
 
subject
 
to
amortization as of the indicated dates:
As of
As of
September 30,
December 31,
2022
 
2021
 
(Dollars in thousands)
Core deposit intangible:
Gross amount
$
87,544
$
87,544
Accumulated amortization
(64,726)
(58,973)
Net carrying amount
$
22,818
$
28,571
Remaining amortization period (in years)
7.3
8.0
Purchased credit card relationship intangible:
Gross amount
$
3,800
$
3,800
Accumulated amortization
(3,424)
(2,602)
Net carrying amount
$
376
$
1,198
Remaining amortization period (in years)
0.9
1.7
Insurance customer relationship intangible:
Gross amount
$
1,067
$
1,067
Accumulated amortization
(1,016)
(902)
Net carrying amount
$
51
$
165
Remaining amortization period (in years)
0.3
1.1
During
 
the quarter
 
and
 
nine-month
 
period
 
ended
 
September
 
30,
 
2022,
 
the
 
Corporation recognized
 
$
2.2
 
million
 
and $
6.7
 
million,
respectively,
 
in amortization
 
expense
 
on its
 
other intangibles
 
subject to
 
amortization,
 
compared to
 
$
2.8
 
million
 
and $
8.7
 
million for
the same periods
 
in 2021, 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.
 
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, 2022.
The estimated
 
aggregate annual
 
amortization expense
 
related to the
 
intangible assets
 
subject to amortization
 
for future periods
 
was
as follows as of September 30, 2022:
Amount
(In thousands)
2022
$
2,126
2023
7,736
2024
6,416
2025
3,509
2026
872
2027 and after
2,586