GOODWILL AND OTHER INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill by reportable business segment is included in the table below. Refer to “Note 22 – Business Segments” for additional information on OFG’s reportable business segments.


	Banking		Wealth Management		Treasury		Total
	(In thousands)
December 31, 2023	$	84,063	$	178	$	—	$	84,241
March 31, 2024	$	84,063	$	178	$	—	$	84,241

There were no changes in the carrying amount of goodwill during the quarters ended March 31, 2024 and 2023. There were no accumulated impairment losses at March 31, 2024 and December 31, 2023.

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 2023 using October 31, 2023 as the annual evaluation date and concluded that there was no impairment at December 31, 2023. During the quarter ended March 31, 2024, OFG performed an assessment of events or circumstances that could trigger reductions in the book value of the goodwill. Based on this assessment, no impairments were identified at March 31, 2024.

The following table reflects the components of other intangible assets subject to amortization at March 31, 2024 and December 31, 2023:


	Gross Carrying Amount		Accumulated Amortization		Net Carrying Value
	(In thousands)
March 31, 2024
Core deposit intangibles	$	41,507	$	26,791	$	14,716
Customer relationship intangibles	12,693		8,193		4,500

Total other intangible assets	$	54,200	$	34,984	$	19,216
December 31, 2023
Core deposit intangibles	$	41,507	$	25,659	$	15,848
Customer relationship intangibles	12,693		7,847		4,846

Total other intangible assets	$	54,200	$	33,506	$	20,694

In connection with previous acquisitions, OFG recorded core deposit intangibles representing the value of checking and savings deposits acquired. In addition, OFG recorded customer relationship intangibles representing the value of customer relationships acquired with its acquisitions of insurance agencies. During the quarter ended March 31, 2024, OFG performed an assessment of events or circumstances that could trigger reductions in the book value of other intangible assets. Based on this assessment, no impairments were identified at March 31, 2024.

Other intangible assets have a definite useful life. Amortization of other intangible assets for the quarters ended March 31, 2024 and 2023, was $1.5 million and $1.7 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)
2024						5,913
2025						4,927
2026						3,942
2027						2,956
2028						1,971
Thereafter						985