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GOODWILL AND OTHER INTANGIBLES | 12 Months Ended
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Dec. 31, 2022
GOODWILL AND OTHER INTANGIBLES [Abstract] |
GOODWILL AND OTHER INTANGIBLES [Text Block] | NOTE 9 – GOODWILL AND OTHER INTANGIBLES Goodwill Goodwill as of each of December 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 2022, management performed a qualitative analysis over the carrying amount of each relevant reporting units’ goodwill and concluded that it is more-likely-than-not that the fair value of the reporting units exceeded their carrying value. 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 the reporting units exceeded their carrying amount. In the qualitative assessment performed for each reporting unit, the Corporation evaluated events and circumstances that could impact the fair value including the following: ● Macroeconomic conditions, such as improvement or deterioration in general economic conditions; ● Industry and market considerations; ● Interest rate fluctuations; ● Overall financial performance of the entity; ● Performance of industry peers over the last year; and ● Recent market transactions. Management considered positive and negative evidence obtained during the evaluation of significant events and circumstances and evaluated such information to conclude that it is more likely than not that the reporting unit’s fair value is greater than their carrying amount; thus, quantitative tests were not required. As a result, no impairment charges for goodwill were recorded during the year ended December 31, 2022. There were no changes in the carrying amount of goodwill during the year ended December 31, 2022. The changes in the carrying amount of goodwill attributable to operating segments 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) (2) 385 533 3,313 - 4,231 Goodwill, December 31, 2020 $ 959 $ 2,733 $ 8,248 $ 26,692 $ 38,632 Measurement period adjustment (1) (2) 53 74 (148) - (21) Goodwill, December 31, 2021 $ 1,012 $ 2,807 $ 8,100 $ 26,692 $ 38,611 (1) Recognized in connection with the BSPR acquisition on September 1, 2020. (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"). Merger and Restructuring Costs – BSPR Acquisition In connection with the BSPR acquisition on September 1, 2020, the Corporation recognized acquisition expenses of $ 26.4 million and $ 26.5 million during the years ended December 31, 2021 and 2020, respectively. No acquisition expenses were recognized during the year ended December 31, 2022. Acquisition, integration, and restructuring expenses were included in merger and restructuring costs in the consolidated statements of income, and consisted primarily of legal fees, severance and personnel-related costs, service contracts cancellation penalties, valuation services, systems conversion, and other integration efforts, as well as accelerated depreciation charges related to planned closures and consolidation of branches in accordance with the Corporation’s integration and restructuring plan. Other Intangible Assets 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 December 31, December 31, 2022 2021 (Dollars in thousands) Core deposit intangible: Gross amount $ 87,544 $ 87,544 Accumulated amortization (66,644) (58,973) Net carrying amount $ 20,900 $ 28,571 Remaining amortization period (in years) 7.0 8.0 Purchased credit card relationship intangible: Gross amount $ 3,800 $ 3,800 Accumulated amortization (3,595) (2,602) Net carrying amount $ 205 $ 1,198 Remaining amortization period (in years) 0.7 1.7 Insurance customer relationship intangible: Gross amount $ 1,067 $ 1,067 Accumulated amortization (1,054) (902) Net carrying amount $ 13 $ 165 Remaining amortization period (in years) 0.1 1.1 During the years ended December 31, 2022, 2021, and 2020, the Corporation recognized $ 8.8 million, $ 11.4 million, and $ 5.9 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. 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 December 31, 2022. The estimated aggregate annual amortization expense related to the intangible assets subject to amortization for future periods was as follows as of December 31, 2022: (In thousands) 2023 $ 7,736 2024 6,416 2025 3,509 2026 872 2027 872 2028 and after 1,713

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI https://asc.fasb.org/topic&trid=2144416 + Details
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