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Note 6 - Goodwill And Core Deposit Premiums

9 Months Ended

Sep. 30, 2012

Goodwill and Intangible Assets Disclosure [Text Block]

NOTE 6: GOODWILL AND CORE DEPOSIT PREMIUMS

Goodwill is tested annually, or more than annually, if circumstances warrant, for impairment. If the implied fair value of goodwill is lower than its carrying amount, goodwill impairment is indicated and goodwill is written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the financial statements. Although the Company had an FDIC-assisted acquisition during the quarter ended September 30, 2012, no additional goodwill was recorded, as the transaction resulted in a bargain purchase gain.

Core deposit premiums are periodically evaluated as to the recoverability of their carrying value. An additional core deposit premium of approximately $1.2 million was recorded as part of the FDIC-assisted acquisition during the quarter, and will be amortized over a ten year period.

Goodwill, along with the carrying basis and accumulated amortization of core deposit premiums (net of core deposit premiums that were fully amortized) at September 30, 2012, and December 31, 2011, were as follows:

(In thousands)	September 30, 2012			December 31, 2011

Goodwill	$	60,605		$	60,605

Core deposit premiums:
Gross carrying amount	$	4,261		$	3,069
Accumulated amortization		(1,712	)		(1,490	)

Net core deposit premiums	$	2,549		$	1,579

Core deposit premium amortization expense recorded for the nine months ended September 30, 2012 and 2011, was $222,000 and $670,000, respectively. The Company’s estimated remaining amortization expense on core deposit premiums as of September 30, 2012, is as follows:

(In thousands)	Year	Amortization Expense

	Remainder of 2012	$	93
	2013		380
	2014		276
	2015		270
	2016		267
	Thereafter		1,263

	Total	$	2,549

- 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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