5. Goodwill and Core Deposit and Trust Relationship Intangibles

On October 26, 2012, the Company acquired $286.7 million in deposits and $6.0 million in commercial loans in connection with the Branch Acquisition. The Company recorded $6.2 million of goodwill and $2.9 million of core deposit intangible related to the Branch Acquisition.

The changes in goodwill, core deposit intangible and trust relationship intangible for the years ended December 31, 2012 and 2011 are shown in the table below:

	Goodwill
	Banking		Financial Services			Total
Balance at December 31, 2010	$	34,720	$	7,060		$	41,780
2011 impairment charge		-		(50	)		(50	)
Balance at December 31, 2011	$	34,720	$	7,010		$	41,730
2012 activity		6,182		(276	)		5,906
Balance at December 31, 2012	$	40,902	$	6,734		$	47,636

The annual impairment evaluation of goodwill did not identify any impairment in 2012. During 2012, the Company exited its employee benefits line resulting in a reduction of goodwill of $276,000. The annual evaluation of goodwill resulted in a $50,000 impairment charge recorded by Acadia Trust, N.A. in December 2011.

	Core Deposit Intangible								Trust Relationship Intangible
	Total		Accumulated Amortization			Net			Total		Accumulated Amortization			Net
Balance at December 31, 2010	$	14,444	$	(10,930	)	$	3,514		$	753	$	(226	)	$	527
2011 amortization		-		(502	)		(502	)		-		(75	)		(75	)
Balance at December 31, 2011		14,444		(11,432	)		3,012			753		(301	)		452
2012 activity		2,856		(582	)		2,274			-		(75	)		(75	)
Balance at December 31, 2012	$	17,300	$	(12,014	)	$	5,286		$	753	$	(376	)	$	377

The following table reflects the expected amortization schedule for intangible assets at December 31, 2012:

	Core Deposit Intangible		Trust Relationship Intangible
2013	$	1,073	$	75
2014		1,073		75
2015		1,073		75
2016		1,073		75
2017		994		77
Total unamortized intangible	$	5,286	$	377

- 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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