Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2011

Goodwill and Intangible Assets [Abstract]

6. Goodwill and Intangible Assets

Goodwill

Goodwill totaled $460.0 million at June 30, 2011, December 31, 2010, and June 30, 2010. Goodwill of $272.1 million, which reflects prior period purchase accounting adjustments, was acquired in the second quarter of 2010 in the FDIC assisted acquisition of Midwest.

The Corporation expects $43.5 million of the $48.3 million of goodwill acquired in the First Bank branches acquisition and all of the goodwill acquired in the Midwest acquisition to be deductible for tax purposes.

Goodwill was not recognized in the 2010 acquisition of George Washington. These acquisitions are more fully described in Note 2 (Business Combinations).

Other Intangible Assets

The following tables show the gross carrying amount and the amount of accumulated amortization of intangible assets subject to amortization.


	June 30, 2011
	Gross Carrying		Accumulated			Net Carrying
	Amount		Amortization			Amount
Core deposit intangibles	$	16,760	$	(7,850	)	$	8,910
Non-compete covenant		102		(38	)		64
Lease intangible		617		(266	)		351

	$	17,479	$	(8,154	)	$	9,325


	December 31, 2010
	Gross Carrying		Accumulated			Net Carrying
	Amount		Amortization			Amount
Core deposit intangibles	$	16,760	$	(6,871	)	$	9,889
Non-compete covenant		102		(25	)		77
Lease covenant		617		(172	)		445

	$	17,479	$	(7,068	)	$	10,411


	June 30, 2010
	Gross Carrying		Accumulated			Net Carrying
	Amount		Amortization			Amount
Core deposit intangibles	$	16,760	$	(4,966	)	$	11,794
Non-compete covenant		102		(13	)		89
Lease covenant		617		(78	)		539

	$	17,479	$	(5,057	)	$	12,422

In the quarter ended June 30, 2010, a core deposit intangible asset of $7.4 million was recognized as a result of the Midwest acquisition. Core deposit intangible assets are amortized on an accelerated basis over their useful lives of ten years.

This acquisition is more fully described in Note 2 (Business Combinations).

Intangible asset amortization expense was $0.5 million and $0.7 million for the three months ended June 30, 2011 and 2010, respectively. Estimated amortization expense for each of the next five years is as follows: 2011 — $1.1 million; 2012 — $1.9 million; 2013 — $1.2 million; 2014 — $1.1 million; and 2015 — $1.0 million.

- 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.

+ References+ Details