GOODWILL AND OTHER INTANGIBLES

12 Months Ended

Dec. 31, 2023

GOODWILL AND OTHER INTANGIBLES [Abstract]

GOODWILL AND OTHER INTANGIBLES

NOTE 9 – GOODWILL AND OTHER INTANGIBLES 

Goodwill

Goodwill as of each of December 31, 2023 and 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 2023, management performed a qualitative analysis of 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, and thus no

impairment charges for goodwill were recorded. 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.

In the qualitative assessment performed for each reporting unit, the Corporation evaluated events and circumstances that could

impact the fair value including the following:

● Macroeconomic conditions, such as improvement or deterioration in general economic conditions;

● Industry and market considerations;

● Interest rate fluctuations;

● Overall financial performance of the reporting unit;

● Performance of industry peers over the last year; and

● Recent market transactions

There were

no

 changes in the carrying amount of goodwill during the years ended December 31, 2023 and 2022. The changes in the

carrying amount of goodwill attributable to operating segments during the year ended December 31, 2021 are reflected in the

following table.

Mortgage Banking

Consumer (Retail)

Banking

Commercial and

Corporate Banking

United States

Operations

Total

(In thousands)

Goodwill, January 1, 2021

$

959

$

2,733

$

8,248

$

26,692

$

38,632

Measurement period adjustment

(1)

53

74

(148)

-

(21)

Goodwill, December 31, 2021

 (2)

$

1,012

$

2,807

$

8,100

$

26,692

$

38,611

(1)

Relates to the fair value estimate update performed within one year of the closing of the BSPR acquisition, in accordance with ASC Topic 805, "Business Combinations"("ASC 805").

(2)

Includes $

10.5

 million related to the BSPR acquisition.

Merger and Restructuring Costs – BSPR Acquisition

In connection with the BSPR acquisition on September 1, 2020, the Corporation recognized acquisition expenses of $

26.4

 million

during the year ended December 31, 2021. Acquisition, integration, and restructuring expenses were included in merger and

restructuring costs in the consolidated statements of income, and consisted primarily of costs related to voluntary and involuntary

separation actions and systems conversions, as well as accelerated depreciation charges related to planned closures and consolidation

of branches in accordance with the Corporation’s integration and restructuring plan, and other integration related efforts.

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

December 31, 

December 31,

2023 

2022 

(Dollars in thousands)

Core deposit intangible:

Gross amount

$

87,544

$

87,544

Accumulated amortization

(74,161)

(66,644)

Net carrying amount

$

13,383

$

20,900

Remaining amortization period (in years)

6.0

7.0

Purchased credit card relationship intangible:

Gross amount

$

-

$

3,800

Accumulated amortization

-

(3,595)

Net carrying amount

$

-

$

205

Remaining amortization period (in years)

-

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 years ended December 31, 2023, 2022, and 2021, the Corporation recognized $

7.7

 million, $

8.8

 million, and $

11.4

million, respectively, in amortization expense on its other intangibles subject to amortization

.

The Corporation amortizes core deposit intangibles based on the projected useful lives of the related deposits. Core deposit

intangibles are analyzed 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 as of December 31, 2023.

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

as follows as of December 31, 2023

(In thousands)

2024

$

6,416

2025

3,509

2026

872

2027

872

2028

872

2029 and after

842