GOODWILL AND OTHER INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

As of June 30, 2022 and December 31, 2021, 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 23 – Business Segments for the definition of OFG’s reportable business segments). There were no changes in the carrying amount of goodwill as of June 30, 2022 and December 31, 2021.

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 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 quarter of 2021 using October 31, 2021 as the annual evaluation date and concluded that there was no impairment at December 31, 2021. There were no events that caused OFG to perform interim testing during the six-month period ended June 30, 2022.

The following table reflects the components of other intangible assets subject to amortization at June 30, 2022 and December 31, 2021:


	Gross Carrying Amount		Accumulated Amortization		Net Carrying Value
	(In thousands)
June 30, 2022
Core deposit intangibles	$	51,402	$	27,048	$	24,354
Customer relationship intangibles	17,753		10,354		7,399
Other intangibles	567		520		47
Total other intangible assets	$	69,722	$	37,922	$	31,800
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

In connection with previous acquisitions, 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 acquisitions of a securities broker-dealer and insurance agencies.

Other intangible assets have a definite useful life. Amortization of other intangible assets for the quarters ended June 30, 2022 and 2021 was $2.2 million and $2.5 million, respectively. Amortization of other intangible assets for the six-month periods ended June 30, 2022 and 2021 was $4.3 million and $4.9 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