GOODWILL AND OTHER INTANGIBLES

12 Months Ended

Dec. 31, 2021

Goodwill and other Intangible Assets [Abstract]

GOODWILL AND OTHER INTANGIBLES [Text Block]

NOTE 14 – GOODWILL AND OTHER INTANGIBLES 

Goodwill as of each December 31, 2021 and December 31, 2020 amounted to $

38.6

 million. As of December 31, 2021, the

Corporation’s goodwill includes $

26.7

 million related to the United States (Florida) reporting unit and $

11.9

 million recorded mainly

in connection with the acquisition of BSPR on September 1, 2020. The Corporation’s policy is to assess goodwill and other

intangibles for impairment on an annual basis during the fourth quarter of each year, and more frequently if events or circumstances

lead management to believe that the values of goodwill or other intangibles may be impaired. During the fourth quarter of 2021, as

part of its annual evaluation, the Corporation performed a qualitative assessment to determine if a goodwill impairment test was

necessary. This assessment involved identifying the inputs and assumptions that most affects fair value, evaluating the significance of

all identified relevant events and circumstances that affect fair value of the reporting entity and evaluating such factors to determine if

a positive assertion can be made that it is more likely than not that the fair value of the reporting unit is greater than its carrying

amount. As of December 31, 2021, the Corporation concluded that it is more -likely-than-not that the fair value of the reporting units

exceeded its carrying value. As a result,

no

 impairment charges for goodwill were recorded during the year ended December 31, 2021.

The changes in the carrying amount of goodwill attributable to operating segments are reflected in the following table. The

adjustments for the years ended December 31, 2020 and 2021 are measurement period adjustments, primarily related to post closing

purchase price adjustments to account for differences between BSPR’s actual excess capital at closing date compared to the BSPR’s

excess capital amount used for the preliminary closing statement at acquisition date. During the third quarter of 2021, the Corporation

finalized its fair values analysis of the acquired assets and assumed liabilities associated with the BSPR acquisition.

Mortgage

Banking

Consumer

(Retail)

Banking

Commercial

and Corporate

Banking

United States

Operations

Total

(In thousands)

Goodwill, January 1, 2020

$

-

$

1,406

$

-

$

26,692

$

28,098

Merger and acquisitions

574

794

4,935

-

6,303

Adjustments

385

533

3,313

-

4,231

Goodwill, December 31, 2020

$

959

$

2,733

$

8,248

$

26,692

$

38,632

Adjustments

53

74

(148)

-

(21)

Goodwill, December 31, 2021

$

1,012

$

2,807

$

8,100

$

26,692

$

38,611

The Corporation had other intangible assets of $

29.9

 million as of December 31, 2021, consisting of $

28.6

 million in core deposit

intangibles, $

1.2

 million in purchased credit card relationship intangibles, and $

0.2

 million in insurance customer relationship

intangibles.

The following table shows the gross amount and accumulated amortization of the Corporation’s other intangible assets as of the

indicated dates:

Year Ended December 31, 2021

Core deposit intangible

Purchased credit card

relationship intangible

Insurance customer

relationship intangible

Total

(In thousands)

Gross amount of intangible assets:

 Beginning balance

$

87,096

$

28,265

$

1,067

$

116,428

 Measurement period adjustment

(1)

448

-

-

448

 Ending balance

87,544

28,265

1,067

116,876

Accumulated amortization:

 Beginning balance

(51,254)

(23,532)

(749)

(75,535)

 Amortization

(7,719)

(3,535)

(153)

(11,407)

 Ending balance

(58,973)

(27,067)

(902)

(86,942)

Net intangible assets

$

28,571

$

1,198

$

165

$

29,934

Remaining amortization period (in years)

8.0

1.7

1.1

(1)

Measurement adjustment relates to fair value estimate update performed within 1 year of the closing date of the BSPR acquisition, in accordance with ASC 805.

Year Ended December 31, 2020

Core deposit intangible

Purchased credit card

relationship intangible

Insurance customer

relationship intangible

Total

(In thousands)

Gross amount of intangible assets:

 Beginning balance

$

51,664

$

24,465

$

1,067

$

77,196

 Additions due to acquisitions

35,432

3,800

-

39,232

 Ending balance

87,096

28,265

1,067

116,428

Accumulated amortization:

 Beginning balance

(48,176)

(20,850)

(597)

(69,623)

 Amortization

(3,078)

(2,682)

(152)

(5,912)

 Ending balance

(51,254)

(23,532)

(749)

(75,535)

Net intangible assets

$

35,842

$

4,733

$

318

$

40,893

Remaining amortization period (in years)

9.0

2.7

2.1

Year Ended December 31, 2019

Core deposit intangible

Purchased credit card

relationship intangible

Insurance customer

relationship intangible

Total

(In thousands)

Gross amount of intangible assets:

 Beginning balance

$

51,664

$

24,465

$

1,067

$

77,196

Accumulated amortization:

 Beginning balance

(47,329)

(18,763)

(445)

(66,537)

 Amortization

(847)

(2,087)

(152)

(3,086)

 Ending balance

(48,176)

(20,850)

(597)

(69,623)

Net intangible assets

$

3,488

$

3,615

$

470

$

7,573

Remaining amortization period (in years)

5.1

1.9

3.0

The Corporation amortizes core deposit intangibles and customer relationship intangibles based on the projected useful lives of the

related deposits in the case of core deposit intangibles, and over the projected useful lives of the related client relationships in the case

of customer relationship intangibles. As mentioned above, the Corporation analyzes core deposit intangibles and customer relationship

intangibles annually for impairment, or sooner if events and circumstances indicate possible impairment. Factors that may suggest

impairment include customer attrition and run-off. Management is unaware of any events and/or circumstances that would indicate a

possible impairment to the core deposit intangibles or customer relationship intangibles as of December 31, 2021.

The estimated aggregate annual amortization expense related to the intangible assets for future periods was as follows as of December

31, 2021:

Amount

(In thousands)

2022

$

8,816

2023

7,736

2024

6,416

2025

3,509

2026

872

2027 and after

2,585