Goodwill and other intangible assets

6 Months Ended

Jun. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill And Intangible Assets Disclosure [Text Block]

Note 18 – Goodwill and other intangible assets

Goodwill

The changes in the carrying amount of goodwill for the six months ended June 30, 2015 and 2014, allocated by reportable segments, were as follows (refer to Note 38 for the definition of the Corporation’s reportable segments):

2015
					Purchase
	Balance at		Goodwill on		accounting				Balance at
(In thousands)	January 1, 2015		acquisition		adjustments			Other	June 30,2015
Banco Popular de Puerto Rico	$	250,109	$	3,899	$	(2,875)	$	-	$	251,133
Banco Popular North America		215,567		38,735		-		-		254,302
Total Popular, Inc.	$	465,676	$	42,634	$	(2,875)	$	-	$	505,435

2014
								Goodwill written off
					Purchase			related to
	Balance at		Goodwill on		accounting			discontinued			Balance at
(In thousands)	January 1, 2014		acquisition		adjustments			operations	Other		June 30, 2014
Banco Popular de Puerto Rico	$	245,679	$	-	$	-	$	-	$	-	$	245,679
Banco Popular North America		402,078		-		-		(186,511)		-		215,567
Total Popular, Inc.	$	647,757	$	-	$	-	$	(186,511)	$	-	$	461,246

The goodwill acquired during 2015 in the reportable segments of Banco Popular de Puerto Rico and Banco Popular North America of $3.4 million, after considering purchase accounting adjustments, and $38.7 million, respectively, was related to the Doral Bank Transaction. During the second quarter of 2015, the Corporation recorded adjustments to its initial fair value estimates resulting in a net reduction of the goodwill recorded in connection with the Doral Bank Transaction of approximately $0.5 million. Refer to Note 5, Business Combination, for additional information. In addition, the Corporation recorded purchase accounting adjustments to reduce the goodwill related to the acquisition of an insurance benefits business during the year ended December 31, 2014, based amount of goodwill by approximately $2.4 million.

The following table presents the gross amount of goodwill and accumulated impairment losses by reportable segments.

June 30, 2015

	Balance at				Balance at		Balance at				Balance at
	January 1,		Accumulated		January 1,		June 30,		Accumulated		June 30,
	2015		impairment		2015		2015		impairment		2015
(In thousands)	(gross amounts)		losses		(net amounts)		(gross amounts)		losses		(net amounts)
Banco Popular de Puerto Rico	$	250,109	$	-	$	250,109	$	251,133	$	-	$	251,133
Banco Popular North America		379,978		164,411		215,567		418,713		164,411		254,302
Total Popular, Inc.	$	630,087	$	164,411	$	465,676	$	669,846	$	164,411	$	505,435

December 31, 2014

	Balance at				Balance at		Balance at				Balance at
	January 1,		Accumulated		January 1,		December 31,		Accumulated		December 31,
	2014		impairment		2014		2014		impairment		2014
(In thousands)	(gross amounts)		losses		(net amounts)		(gross amounts)		losses		(net amounts)
Banco Popular de Puerto Rico	$	245,679	$	-	$	245,679	$	250,109	$	-	$	250,109
Banco Popular North America		566,489		164,411		402,078		379,978		164,411		215,567
Total Popular, Inc.	$	812,168	$	164,411	$	647,757	$	630,087	$	164,411	$	465,676

Other Intangible Assets

At June 30, 2015 and December 31, 2014, the Corporation had $ 6 million of identifiable intangible assets, with indefinite useful lives, mostly associated with E-LOAN’s trademark.

The following table reflects the components of other intangible assets subject to amortization:

		Gross				Net
		Carrying		Accumulated		Carrying
(In thousands)		Amount		Amortization		Value
June 30, 2015
	Core deposits	$	74,252	$	35,400	$	38,852
	Other customer relationships		37,876		7,987		29,889
Total other intangible assets		$	112,128	$	43,387	$	68,741
December 31, 2014
	Core deposits	$	50,679	$	32,006	$	18,673
	Other customer relationships		19,452		6,644		12,808
Total other intangible assets		$	70,131	$	38,650	$	31,481

During the first quarter of 2015, the Corporation also acquired $23.6 million in core deposit intangibles related to the Doral Bank Transaction.

During the quarter ended June 30, 2015, the Corporation recognized $ 2.9 million in amortization expense related to other intangible assets with definite useful lives (June 30, 2014 - $ 2.0 million). During the six months ended June 30, 2015, the Corporation recognized $ 5.0 million in amortization related to other intangible assets with definite useful lives (June 30, 2014 - $ 4.1 million).

The following table presents the estimated amortization of the intangible assets with definite useful lives for each of the following periods:

(In thousands)
Remaining 2015	$	7,263
Year 2016		13,414
Year 2017		10,665
Year 2018		10,573
Year 2019		9,997
Year 2020		6,131

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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