GOODWILL AND OTHER INTANGIBLES

3 Months Ended

Mar. 31, 2019

Goodwill And Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLES [Text Block]

NOTE 14 – GOODWILL AND OTHER INTANGIBLES

Goodwill as of March 31, 2019 and December 31, 2018 amounted to $28.1 million, recognized as part of “Other assets” in the consolidated statements of financial condition. The Corporation conducted its annual evaluation of goodwill and other intangibles during the fourth quarter of 2018. The Corporation’s goodwill is related to the U.S. (Florida) reporting unit.

There have been no significant events related to the Florida reporting unit that could indicate potential goodwill impairment since the date of the last evaluation; therefore, no goodwill impairment evaluation was performed during the first quarter of 2019. Goodwill and other indefinite life intangibles are reviewed at least annually for impairment.

In connection with the acquisition of the FirstBank-branded credit card loan portfolio, in the second quarter of 2012, the Corporation recognized a purchased credit card relationship intangible of $24.5 million ($5.2 million as of March 31, 2019 and $5.7 million as of December 31, 2018), which is being amortized over the remaining estimated life of 2.6 years on an accelerated basis based on the estimated attrition rate of the purchased credit card accounts, which reflects the pattern in which the economic benefits of the intangible asset are consumed. These benefits are consumed as the revenue stream generated by the cardholder relationship is realized.

The core deposit intangible of $4.1 million (December 31, 2018 - $4.3 million) primarily consists of the core deposit acquired in the February 2015 Doral Bank transaction.

In the first quarter of 2016, FirstBank Insurance Agency acquired certain insurance customer accounts and related customer records and recognized an insurance customer relationship intangible of $1.1 million ($0.6 million as of March 31, 2019 and $0.6 million as of December 31, 2018), which is being amortized over the remaining estimated life of 3.8 years on a straight-line basis. The acquired accounts have a direct relationship to the previous mortgage loan portfolio acquisitions from Doral Bank and Doral Financial in 2015 and 2014.

The following table shows the gross amount and accumulated amortization of the Corporation’s intangible assets recognized as part of Other assets in the consolidated statements of financial condition:

	As of		As of
	March 31,		December 31,
	2019		2018
(Dollars in thousands)
Core deposit intangible:
Gross amount	$	51,664	$	51,664
Accumulated amortization ⁽¹⁾		(47,568)		(47,329)
Net carrying amount	$	4,096	$	4,335

Remaining amortization period		5.8 years		6.0 years

Purchased credit card relationship intangible:
Gross amount	$	24,465	$	24,465
Accumulated amortization ⁽²⁾		(19,285)		(18,763)
Net carrying amount	$	5,180	$	5,702

Remaining amortization period		2.6 years		2.9 years

Insurance customer relationship intangible:
Gross amount	$	1,067	$	1,067
Accumulated amortization ⁽³⁾		(483)		(445)
Net carrying amount	$	584	$	622

Remaining amortization period		3.8 years		4.0 years

(1) For the quarters ended March 31, 2019 and 2018, the amortization expense of core deposit intangibles amounted to $0.2 million and $0.4 million, respectively.
(2) For the quarters ended March 31, 2019 and 2018, the amortization expense of the purchased credit card relationship intangible amounted
to $0.5 million and $0.6 million, respectively.
(3) For each of the quarters ended March 31, 2019 and 2018, the amortization expense of the insurance customer relationship intangible amounted to $38 thousand.

	The estimated aggregate annual amortization expense related to the intangible assets for future periods is as follows:

			Amount
			(In thousands)
2019		$	2,289
2020			2,851
2021			2,658
2022			915
2023			622
2024 and after			525