Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

As of December 31, 2021 and 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 29 – Business Segments for the definition of OFG’s reportable business segments). There were no changes in the carrying amount of goodwill for the years ended December 31, 2021, 2020 and 2019. No goodwill was recorded in connection with the Scotiabank Acquisition.

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 (such as a further deterioration of the Puerto Rico economy or the liquidity for Puerto Rico securities or loans secured by assets in Puerto Rico), 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 quarters of 2021 and 2020 using October 31, 2021 and 2020, respectively, as the annual evaluation dates and concluded that there was no impairment at December 31, 2021 and 2020.

In connection with reviewing our financial condition in light of the Covid-19 pandemic, we evaluated our assets, including goodwill and other intangibles, for potential impairment. Based upon our review as of December 31, 2021 and 2020, no impairments have been recorded.

The following table reflects the components of other intangible assets subject to amortization at December 31, 2021 and 2020:


	Gross Carrying Amount		Accumulated Amortization		Net Carrying Value
	(In thousands)
December 31, 2021
Core deposit intangibles	$	51,402	$	23,772	$	27,630
Customer relationship intangibles	17,753		9,385		8,368
Other intangibles	567		472		95
Total other intangible assets	$	69,722	$	33,629	$	36,093
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 years ended December 31, 2021, 2020 and 2019 was $9.8 million, $11.1 million, and $1.2 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)
2022	$	8,501
2023	6,898
2024	5,913
2025	4,927
2026	3,942
Thereafter	5,912