XML 28 R17.htm IDEA: XBRL DOCUMENT
v3.21.2

Goodwill And Other Intangible Assets | 6 Months Ended
--- | ---
Jun. 30, 2021
Goodwill And Other Intangible Assets [Abstract] |
Goodwill And Other Intangible Assets | NOTE 9 — GOODWILL AND OTHER INTANGIBLE ASSETS As of June 30, 2021 and December 31, 2020, OFG had $86.1 million of goodwill allocated as follows: $84.1 million to the banking segment and $2.0 million to the wealth management segment (refer to Note 24 for the definition of OFG’s reportable business segments). There were no changes in the carrying amount of goodwill as of June 30, 2021 and December 31, 2020. Goodwill recorded in connection with the BBVAPR Acquisition and the FDIC-assisted Eurobank Acquisition is not amortized to expense but is tested at least annually for impairment. No goodwill was recorded in connection with the Scotiabank Acquisition. OFG performs annual goodwill impairment test as of October 31 and monitors for interim triggering events on an ongoing basis. Actual values may differ significantly from such estimates. Among these are future growth rates for the reporting units, selection of comparable market transactions, discount rates and earnings capitalization rates. Changes in assumptions and results due to economic conditions, industry factors, and reporting unit performance and cash flow projections could result in different assessments of the fair values of reporting segments and could result in impairment charges. If an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting segment below its carrying amount, an interim impairment test is required. Relevant events and circumstances for evaluating whether it is more likely than not that the fair value of a reporting segment is less than its carrying amount may include macroeconomic conditions, adverse changes in legal factors or in the business climate, adverse actions by a regulator, unanticipated competition, the loss of key employees, natural disasters, or similar events. OFG performed its annual impairment review of goodwill during the fourth quarter of 2020 using October 31, 2020, respectively, as the annual evaluation date and concluded that there was no impairment at 2020. There were no additional events that caused OFG to perform interim testing during the six-month period ended June 30, 2021. The following table reflects the components of other intangible assets subject to amortization at June 30, 2021 and December 31, 2020:
|  | Gross |  |  |  | Net
|  | Carrying |  | Accumulated |  | Carrying
|  | Amount |  | Amortization |  | Value
|  | (In thousands)
June 30, 2021 |  |  |  |  |  |  |  |  |
Core deposit intangibles |  | $ | 51,402 |  | $ | 20,096 |  | $ | 31,306
Customer relationship intangibles |  |  | 17,753 |  |  | 8,254 |  |  | 9,499
Other intangibles |  |  | 567 |  |  | 377 |  |  | 190
Total other intangible assets |  | $ | 69,722 |  | $ | 28,727 |  | $ | 40,995
December 31, 2020 |  |  |  |  |  |  |  |  |
Core deposit intangibles |  | $ | 51,402 |  | $ | 16,419 |  | $ | 34,983
Customer relationship intangibles |  |  | 17,753 |  |  | 7,124 |  |  | 10,629
Other intangibles |  |  | 567 |  |  | 283 |  |  | 284
Total other intangible assets |  | $ | 69,722 |  | $ | 23,826 |  | $ | 45,896
In connection with the Eurobank Acquisition, the BBVAPR Acquisition and the Scotiabank Acquisition, OFG recorded a core deposit intangible representing the value of checking and savings deposits acquired. In addition, OFG recorded a customer relationship intangible representing the value of customer relationships acquired with the acquisition of a securities broker-dealer and insurance agency in the BBVAPR Acquisition and an insurance agency in the Scotiabank Acquisition. Other intangible assets have a definite useful life. Amortization of other intangible assets for the quarters ended June 30, 2021 and 2020 was $2.5 million and $2.8 million, respectively. Amortization of other intangible assets for the six-month periods ended June 30, 2021 and 2020 was $4.9 million and $5.6 million, respectively. The following table presents the estimated amortization of other intangible assets for each of the following periods.
Year Ending December 31, | (In thousands)
2021 | $ | 9,802
2022 |  | 8,501
2023 |  | 6,898
2024 |  | 5,913
2025 |  | 4,927
Thereafter |  | 9,854

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 http://asc.fasb.org/topic&trid=2144416 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration