GOODWILL AND OTHER INTANGIBLES

12 Months Ended

Dec. 31, 2014

NOTE 9.GOODWILL AND OTHER INTANGIBLES

Goodwill and other intangible assets are presented in the tables below. The Company completed one acquisition during 2014. 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. There were no acquisitions during 2013.

The increase in goodwill in 2014 and 2013 is as follows:

(In thousands)	2014		2013
Balance, beginning of the period	$	256,871	$	255,199
Goodwill aquired:
New York Branch Acquisition	7,871		—
Beacon Federal Bancorp, Inc. (1)	—		1,672
Balance, end of the period	$	264,742	$	256,871

(1)	Goodwill related to the acquisition of Beacon was adjusted due to the subsequent recognition of certain identifiable liabilities that had not been recognized as part of the original accounting.

Year-end goodwill relates to the following reporting units:

(In thousands)	2014		2013

Banking	$	241,566	$	233,695
Insurance	23,176		23,176
Total	$	264,742	$	256,871

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 2014 and 2013.

The components of other intangible assets are as follows:

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

December 31, 2014
Non-maturity deposits	$	34,053	$	(25,656	)	$	8,397
Insurance contracts	7,558		(6,094		)	1,464
All other intangible assets	3,894		(2,227		)	1,667
Total	$	45,505	$	(33,977	)	$	11,528

December 31, 2013
Non-maturity deposits	$	31,503	$	(22,106	)	$	9,397
Insurance contracts	7,558		(5,320		)	2,238
All other intangible assets	3,894		(1,738		)	2,156
Total	$	42,955	$	(29,164	)	$	13,791

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 $4.8 million in 2014, $5.3 million in 2013, and $5.3 million in 2012.

The estimated aggregate future amortization expense for intangible assets remaining at year-end 2014 is as follows: 2015- $3.3 million; 2016- $2.7 million; 2017- $1.7 million; 2018- $1.3 million; 2019- $1.0 million and thereafter- $1.5 million.

For the years 2014, 2013, and 2012, 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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