GOODWILL AND OTHER INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2012

7. GOODWILL AND OTHER INTANGIBLE ASSETS

Carrying Amount of Goodwill by Operating Segment

(Amounts in thousands)


	June 30,		December 31,
	2012		2011
Banking	$	81,755	$	81,755
Trust and Investments		12,791		12,816

Total goodwill	$	94,546	$	94,571

Goodwill is not amortized but, instead, is subject to impairment tests at least on an annual basis or more often if events or circumstances occur that would indicate it is more likely than not that the fair value of a reporting unit is below its carrying value. Our annual goodwill test was performed as of October 31, 2011, and it was determined that no impairment existed as of that date.

There were no impairment charges for goodwill recorded in 2011. The Company is not aware of any events or circumstances that would result in goodwill impairment as of June 30, 2012.

Goodwill decreased by $25,000 during the first six months of 2012 due to an adjustment for tax benefits associated with the goodwill attributable to Lodestar Investment Counsel, LLC (“Lodestar”), an investment management firm and wholly-owned subsidiary of the Company.

We have other intangible assets capitalized on the Consolidated Statements of Financial Condition in the form of core deposit premiums and client relationships. These intangible assets are being amortized over their estimated useful lives, which range from 7 years to 15 years. We review intangible assets for possible impairment whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. During second quarter 2012, there were no events or circumstances to indicate there may be impairment of intangible assets, and no impairment charges for other intangible assets were recorded in 2011.

Other Intangible Assets

(Amounts in thousands)


	Gross Carrying Amount				Accumulated Amortization				Net Carrying Amount
	June 30, 2012		December 31, 2011		June 30, 2012		December 31, 2011		June 30, 2012		December 31, 2011
Core deposit intangible	$	18,093	$	18,093	$	6,222	$	5,079	$	11,871	$	13,014
Client relationships		5,037		4,900		2,756		2,561		2,281		2,339

Total	$	23,130	$	22,993	$	8,978	$	7,640	$	14,152	$	15,353

Additional Information—Other Intangible Assets


	June 30, 2012
Weighted average remaining life at period end (in years):
Core deposit intangible		5
Client relationships		7

Amortization expense for other intangible assets totaled $669,000 and $375,000 for the quarters ended June 30, 2012 and 2011, respectively. For the six months ended June 30, 2012 and 2011, amortization expense totaled $1.3 million and $751,000, respectively.

Scheduled Amortization of Other Intangible Assets

(Amounts in thousands)


	Total
Year ending December 31,
2012:
Remaining six months	$	1,345
2013		3,118
2014		3,208
2015		2,656
2016		2,362
2017 and thereafter		1,463

Total	$	14,152

- 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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