GOODWILL AND OTHER INTANGIBLES

3 Months Ended

Mar. 31, 2023

GOODWILL AND OTHER INTANGIBLES [Abstract]

GOODWILL AND OTHER INTANGIBLES

NOTE 6 – GOODWILL AND OTHER INTANGIBLES 

Goodwill

Goodwill as of each of March 31, 2023 and December 31, 2022 amounted to $

38.6

 million.

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 2022, management performed a qualitative analysis over the carrying amount of each relevant reporting units’ goodwill and

concluded that it is more-likely-than-not that the fair value of the reporting units exceeded their carrying value. This assessment

involved identifying the inputs and assumptions that most affect fair value, including evaluating significant and relevant events

impacting each 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 units exceeded their carrying amount. As of December 31, 2022, the Corporation

concluded that it is more-likely-than-not that the fair value of the reporting units exceeded their carrying value. The Corporation

determined that there have been no significant events since the last annual assessment that could indicate potential goodwill

impairment on reporting units for which the goodwill is allocated. As a result, no impairment charges for goodwill were recorded

during the quarter ended March 31, 2023.

There were

no

 changes in the carrying amount of goodwill during the quarter ended March 31, 2022.

Other Intangible Assets

The following table presents the gross amount and accumulated amortization of the Corporation’s intangible assets subject to

amortization as of the indicated dates:

As of

As of

March 31, 

December 31,

2023 

2022 

(Dollars in thousands)

Core deposit intangible:

Gross amount

$

87,544

$

87,544

Accumulated amortization

(68,557)

(66,644)

Net carrying amount

$

18,987

$

20,900

Remaining amortization period (in years)

6.8

7.0

Purchased credit card relationship intangible:

Gross amount

$

3,800

$

3,800

Accumulated amortization

(3,714)

(3,595)

Net carrying amount

$

86

$

205

Remaining amortization period (in years)

0.4

0.7

Insurance customer relationship intangible:

Gross amount

$

-

$

1,067

Accumulated amortization

-

(1,054)

Net carrying amount

$

-

$

13

Remaining amortization period (in years)

-

0.1

During the quarters ended March 31, 2023 and 2022, the Corporation recognized $

2.0

 million and $

2.3

 million, respectively, in

amortization expense on its other intangibles subject to amortization.

The Corporation amortizes core deposit intangibles and customer relationship intangible 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 the customer relationship intangible. The Corporation analyzes core deposit intangibles and the customer relationship intangible

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 the customer relationship intangible as of March 31, 2023.

The estimated aggregate annual amortization expense related to the intangible assets subject to amortization for future periods was

as follows as of March 31, 2023:

(In thousands)

2023

$

5,691

2024

6,416

2025

3,509

2026

872

2027

872

2028 and after

1,713