GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2013

GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract]

6.	GOODWILL AND OTHER INTANGIBLE ASSETS

Changes to the carrying amount of goodwill for the years ended December 31, 2013 and 2012 are provided in the following table (in thousands):

Balance, December 31, 2011	$	24,959
Adjustment to goodwill		(136	)
Goodwill acquired during the year		17,958
Balance, December 31, 2012		42,781
Adjustment to goodwill		(610	)
Balance, December 31, 2013	$	42,171

The goodwill acquired during the year ended December 31, 2012 was a result of the PSB acquisition completed during the fourth quarter. The adjustments to goodwill made during the year ended December 31, 2013 included reductions resulting from reclassification of a $415,000 liability assumed, a $351,000 increase in the value of fixed assets acquired and a $190,000 increase in the amount of income tax receivable recorded from the PSB acquisition. Additionally, the amount of increases in goodwill recorded in the PSB acquisition included a $254,000 market value adjustment on two bonds held in the investment portfolio and a $36,000 increase to the amount of income tax payable recorded from the PSB acquisition. The adjustments were made as additional information existing at the time of the acquisition was reviewed. Net of deferred taxes, the adjustments resulted in a $610,000 reduction to goodwill recorded in the PSB acquisition. The adjustments to goodwill had no impact on net earnings or stockholders’ equity.

A summary of core deposit intangible assets as of December 31, 2013 and 2012 is as follows (in thousands):

	2013			2012
Gross carrying amount	$	11,674		$	11,674
Less accumulated amortization		(3,733	)		(2,627	)
Net carrying amount	$	7,941		$	9,047

During 2012, $2.7 million of core deposit intangibles were recorded as a result of the deposits acquired in the 2012 acquisition.

Amortization expense on the core deposit intangible assets totaled approximately $1.1 million in 2013, $762,000 in 2012, and $230,000 in 2011.

The estimated amortization expense on the core deposit intangible assets for the five succeeding years and thereafter is as follows (in thousands):

2014	$	1,106
2015		1,106
2016		1,106
2017		1,106
2018		1,106
Thereafter		2,411
	$	7,941

- 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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