Goodwill

12 Months Ended

Dec. 31, 2012

Goodwill [Abstract]

Goodwill

8.   Goodwill

The change in the carrying amount of goodwill for the years ended December 31, 2012 and 2011 is as follows:

	2012		2011
Balance, beginning of year	$	10,821	$	10,821
Acquired during the year		125		-
Balance, end of year	$	10,946	$	10,821

In the third quarter of 2012, the Corporation purchased the loans and other assets of a consumer discount company in Ebensburg, Pennsylvania. The purchase price was $1,248 for the performing loans and customers of the business. The purchase price resulted in the Corporation recording a $75 customer relationship intangible asset which is being amortized using the straight-line method over three years. This amount is included in accrued interest receivable and other assets on the consolidated balance sheet. Goodwill of $125 was also recorded in connection with the acquisition. Due to the insignificance of the assets acquired in relation to the consolidated financial statements as a whole, no further business combination or intangible asset disclosures are included in the notes to consolidated financial statements.

Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value, which is determined through a two-step impairment test. Step 1 includes the determination of the carrying value of our single reporting unit, including the existing goodwill and intangible assets, and estimating the fair value of the reporting unit. We determined the fair value of our reporting unit exceeded its carrying amount. If the carrying amount of the reporting unit exceeds its fair value, we are required to perform a second step to the impairment test. Our annual impairment analysis at December 31, 2012 and 2011 indicated that the Step 2 analysis was not necessary.