Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

A summary of the Company’s goodwill assets by business segment is presented in the following table:



(Dollars in thousands)	January 1, 2013		Goodwill Acquired		Impairment Loss		Goodwill Adjustments			March 31, 2013
Community banking	$	274,963	$	—	$	—	$	(1,504	)	$	273,459
Specialty finance	38,574		—		—		(265		)	38,309
Wealth management	31,864		—		—		—			31,864
Total	$	345,401	$	—	$	—	$	(1,769	)	$	343,632

The community banking segment's goodwill decreased $1.5 million in 2013 as a result of the subsequent purchase adjustments related to the acquisition of Hyde Park Bank in 2012. Additionally, the specialty finance segment’s goodwill decreased $265,000 during this same period as a result of subsequent purchase adjustments and foreign currency translation adjustments related to the acquisition of Macquarie Premium Funding Inc. in 2012.

A summary of finite-lived intangible assets as of the dates shown and the expected amortization as of March 31, 2013 is as follows:



(Dollars in thousands)	March 31, 2013			December 31, 2012			March 31, 2012
Community banking segment:
Core deposit intangibles:
Gross carrying amount	$	37,860		$	38,176		$	36,053
Accumulated amortization	(26,127		)	(25,159		)	(22,347		)
Net carrying amount	$	11,733		$	13,017		$	13,706
Specialty finance segment:
Customer list intangibles:
Gross carrying amount	$	1,800		$	1,800		$	1,800
Accumulated amortization	(688		)	(645		)	(510		)
Net carrying amount	$	1,112		$	1,155		$	1,290
Wealth management segment:
Customer list and other intangibles:
Gross carrying amount	$	7,390		$	7,390		$	7,390
Accumulated amortization	(725		)	(615		)	(285		)
Net carrying amount	$	6,665		$	6,775		$	7,105
Total other intangible assets, net	$	19,510		$	20,947		$	22,101



Estimated amortization
Actual in three months ended March 31, 2013	$	1,120
Estimated remaining in 2013	3,239
Estimated—2014	3,834
Estimated—2015	2,309
Estimated—2016	1,753
Estimated—2017	1,388

The decrease in core deposit intangibles from 2012 was primarily from the divestiture of the deposits and current banking locations of Second Federal in the first quarter of 2013. The core deposit intangibles previously recognized in connection with this and other prior acquisitions are being amortized over a ten-year period on an accelerated basis.

The customer list intangibles recognized in connection with the purchase of life insurance premium finance assets in 2009 are being amortized over an 18-year period on an accelerated basis.

The customer list intangibles recognized in connection with prior acquisitions within the wealth management segment are being amortized over a ten-year period on a straight-line basis.

Total amortization expense associated with finite-lived intangibles totaled approximately $1.1 million and $1.0 million for the three months ended March 31, 2013 and 2012, respectively.

- 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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