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GOODWILL AND OTHER INTANGIBLE ASSETS
9 Months Ended
Sep. 30, 2012
GOODWILL AND OTHER INTANGIBLE ASSETS  
GOODWILL AND OTHER INTANGIBLE ASSETS

NOTE 11 — GOODWILL AND OTHER INTANGIBLE ASSETS

 

Goodwill

 

The carrying amount of goodwill remained at $337.4 million as of September 30, 2012 and December 31, 2011. Goodwill is tested for impairment on an annual basis as of December 31, or more frequently as events occur, or as current circumstances and conditions warrant. The Company records impairment write-downs as charges to noninterest expense and adjustments to the carrying value of goodwill. Subsequent reversals of goodwill impairment are prohibited.

 

As of September 30, 2012, the Company’s market capitalization based on total outstanding common and preferred shares was $3.09 billion and its total stockholders’ equity was $2.32 billion. The Company performed its annual impairment test as of December 31, 2011 to determine whether and to what extent, if any, recorded goodwill was impaired. The analysis compared the fair value of each of the reporting units, including goodwill, to the respective carrying amounts. If the carrying amount of the reporting unit, including goodwill, exceeds the fair value of that reporting unit, then further testing for goodwill impairment is performed.

 

Premiums on Acquired Deposits

 

The Company also has premiums on acquired deposits, which represent the intangible value of depositor relationships resulting from deposit liabilities assumed in various acquisitions. These intangibles are tested for impairment on an annual basis, or more frequently as events occur, or as current circumstances and conditions warrant. As of September 30, 2012 and December 31, 2011, the gross carrying amount of premiums on acquired deposits totaled $115.3 million and $117.6 million, respectively, and the related accumulated amortization totaled $56.5 million and $50.4 million, respectively. The decrease in the gross carrying value is due to the full amortization and removal of a specific premium acquired on deposits.

 

The Company amortizes premiums on acquired deposits based on the projected useful lives of the related deposits. Amortization expense of premiums on acquired deposits was $2.7 million and $3.1 million for the three months ended September 30, 2012 and 2011, respectively. Amortization expense of premiums on acquired deposits was $8.4 million and $9.4 million for the nine months ended September 30, 2012 and 2011, respectively.

 

The following table provides the estimated future amortization expense of premiums on acquired deposits for the succeeding five years and thereafter:

 

 

 

Amount

 

 

 

(In thousands)

 

Estimated Amortization Expense of Premiums on Acquired Deposits

 

 

 

Three Months Ending December 31, 2012

 

  $

2,461

 

Year Ending December 31, 2013

 

9,365

 

Year Ending December 31, 2014

 

8,454

 

Year Ending December 31, 2015

 

7,543

 

Year Ending December 31, 2016

 

6,634

 

Thereafter

 

24,289

 

Total

 

  $

58,746