Goodwill And Other Intangible Assets

12 Months Ended

Dec. 31, 2011

Goodwill And Other Intangible Assets [Abstract]

NOTE 10. GOODWILL AND OTHER INTANGIBLE ASSETS

The following table represents a roll forward of goodwill:


	2011		2010
(in thousands)

Balance at beginning of year	$	165,273	$	165,167
Additions		—		106
Balance at End of Year	$	165,273	$	165,273

Goodwill represents the excess of the purchase price over the fair value of net assets purchased. Goodwill is reviewed for impairment annually with an interim analysis performed when necessary.

During the third quarter of 2011, our stock traded below common book value for an extended period of time. As a result, we engaged a third party to provide current market data for recent bank merger and acquisition transactions. The market data included transactions from January 2010 to August 2011 and indicated that transactions were occurring in excess of common book value of 70.3 percent (median). This data supported our conclusion that the fair value exceeds the carrying value and no further valuation procedures were completed. At December 31, 2011, our stock was trading in excess of 10 percent above common book value.

We completed the annual goodwill impairment assessment as required in 2011 and 2010; the results indicated that the fair value of each reporting unit exceeded the carrying value. We determined that goodwill is not impaired.

The following table shows a summary of intangible assets:


	2011			2010
(in thousands)

Gross carrying amount at beginning of year	$	15,070		$	15,070
Accumulated amortization		(9,342	)		(7,605	)
Balance at End of Year	$	5,728		$	7,465

Intangible assets as of December 31, 2011 consisted of $4.9 million for the acquisition of core deposits, $0.2 million for the acquisition of wealth management relationships and $0.6 million for the acquisition of insurance contract relationships. We determined the amount of identifiable intangible assets based upon independent core deposit and insurance contract analyses. We did not record any intangible assets in 2011 or 2010. Other intangible assets are evaluated for recoverability annually and more frequently if triggering events and changes in circumstances occur. We completed this review in 2011 and 2010 and determined that other intangible assets are not impaired.

Amortization expense on finite-lived intangible assets totaled $1.7 million, $1.9 million and $2.3 million for 2011, 2010 and 2009, respectively. The following is a summary of the expected amortization expense for finite-lived intangibles assets, assuming no new additions, for each of the five years following December 31, 2011:


	Amount
(in thousands)

2012	$	1,542
2013		1,337
2014		911
2015		716
2016		520
Total	$	5,026

- 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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