Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill and Intangible Assets

In accordance with the Intangibles – Goodwill and Other topic of the FASB ASC, goodwill is not amortized but is reviewed for potential impairment at the reporting unit level. Management analyzes its goodwill for impairment on an annual basis and between annual tests in certain circumstances such as material adverse changes in legal, business, regulatory and economic factors. An impairment loss is recorded to the extent that the carrying amount of goodwill exceeds its implied fair value.

During the third quarter of 2012, the Company changed its annual goodwill impairment testing date from September 30 to July 31, which did not result in any delay, acceleration or avoidance of impairment. The Company believes this date for the annual goodwill impairment test is preferable because it provides more time to complete the impairment testing as it occurs earlier within a quarterly reporting cycle. The additional time is preferable as it would allow more time before the quarterly reporting deadline to estimate the implied fair value of goodwill for comparison with its carrying value, if necessary. This change was applied prospectively beginning on July 31, 2012. Retrospective application to prior periods is impracticable as the Company is unable to objectively determine, without the use of hindsight, the assumptions that would have been used in those earlier periods. In connection with this change, the Company performed an impairment assessment as of July 31, 2012 and concluded that there was no impairment.

The core deposit intangible (“CDI”) is evaluated for impairment if events and circumstances indicate a possible impairment. The CDI is amortized on an accelerated basis over an estimated life of approximately 10 years.

The following table sets forth activity for goodwill and intangible assets for the period:

	Years Ended December 31,
	2012			2011			2010
	(in thousands)
Total goodwill, beginning of period	$	115,554		$	109,639		$	95,519
Established through acquisitions	—			5,915			14,120
Total goodwill, end of period	115,554			115,554			109,639
Gross core deposit intangible balance, beginning of period	32,441			26,652			8,896
Accumulated amortization, beginning of period	(12,275		)	(7,956		)	(4,033		)
Core deposit intangible, net, beginning of period	20,166			18,696			4,863
Established through acquisitions	—			5,789			17,755
CDI current period amortization	(4,445		)	(4,319		)	(3,922		)
Total core deposit intangible, end of period	15,721			20,166			18,696
Total goodwill and intangible assets, end of period	$	131,275		$	135,720		$	128,335

The following table provides the estimated future amortization expense of core deposit intangibles for the succeeding five years:

Years Ending December 31,	(in thousands)
2013	$	3,964
2014	3,397
2015	2,645
2016	2,184
2017	1,627