GOODWILL AND OTHER INTANGIBLES

12 Months Ended

Dec. 31, 2012

9. GOODWILL AND OTHER INTANGIBLES

Goodwill and other intangible assets are presented in the tables below. As discussed in Note 3 — Mergers, we completed three significant acquisitions during 2012. In accordance with applicable accounting guidance, we allocated the amount paid to the fair value of the net assets acquired, with any excess amounts recorded as goodwill.

The increase in goodwill in 2012 and 2011 is as follows:

(In thousands)	2012		2011
Balance, beginning of the period	$	202,391	$	161,725
Goodwill aquired:
Legacy Bancorp, Inc.	—		23,496
Rome Bancorp, Inc.	—		17,176
Connecticut Bank & Trust	14,146		—
Greenpark Mortgage Corporation	4,145		—
Beacon Federal Bancorp, Inc.	34,511		—
Other	6		(6		)
Balance, end of the period	$	255,199	$	202,391

Year-end goodwill relates to the following reporting units:

(In thousands)	2012		2011

Banking	$	232,023	$	179,215
Insurance	23,176		23,176
Total	$	255,199	$	202,391

The Company tests goodwill impairment annually in the fourth quarter or more frequently if events or changes in circumstances indicate that impairment is possible. No impairment was recorded on goodwill for 2012 and 2011.

The components of other intangible assets are as follows:

(In thousands)	Gross Intangible Assets		Accumulated Amortization			Net Intangible Assets

December 31, 2012
Non-maturity deposits	$	31,503	$	(18,164	)	$	13,339
Insurance contracts	7,558		(4,539		)	3,019
All other intangible assets	3,894		(1,193		)	2,701
Total	$	42,955	$	(23,896	)	$	19,059

December 31, 2011 (1)
Non-maturity deposits	$	28,663	$	(13,538	)	$	15,125
Insurance contracts	7,345		(3,795		)	3,550
All other intangible assets	3,522		(650		)	2,872
Total	$	39,530	$	(17,983	)	$	21,547

(1 ) Amounts include balances associated with discontinued operations

Other intangible assets are amortized on a straight-line or accelerated basis over their estimated lives, which range from eight to eleven years. Amortization expense related to intangible assets totaled $5.3 million in 2012, $4.4 million in 2011, and $3.0 million in 2010.

The estimated aggregate future amortization expense for intangible assets remaining at year-end 2012 is as follows: 2013- $5.3 million; 2014- $4.5 million; 2015- $3.1 million; 2016- $2.4 million; 2017- $1.4 million and thereafter- $2.4 million.

For the years 2012, 2011, and 2010, no impairment charges were identified for the Company’s intangible assets.

- 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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