GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2011

GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract]

(9) GOODWILL AND OTHER INTANGIBLE ASSETS

The following table presents the changes in the carrying amount of goodwill by operating segment for the years ended December 31, 2011 and 2010:

	2011
	Community		Insurance
	Banking		Agencies		Total
	(In thousands)
Balance as of January 1, 2011	$	217,618	$	52,479	$	270,097
Goodwill recorded during the year		-		1,200		1,200
Balance as of December 31, 2011	$	217,618	$	53,679	$	271,297

	2010
	Community		Insurance
	Banking		Agencies		Total
	(In thousands)
Balance as of January 1, 2010	$	217,618	$	52,479	$	270,097
Goodwill recorded during the year		-		-		-
Balance as of December 31, 2010	$	217,618	$	52,479	$	270,097

The goodwill recorded in the insurance agency segment during 2011 was related to an earn-out payment associated with an insignificant insurance agency acquired during the first quarter of 2008.

The Company's policy is to assess goodwill for impairment at the reporting segment level on an annual basis or sooner if an event occurs or circumstances change which indicate that the fair value of a reporting unit is below its carrying amount. Impairment is the condition that exists when the carrying amount of goodwill exceeds its implied fair value. Accounting standards require management to estimate the fair value of each reporting segment in assessing impairment at least annually. The Company's annual assessment date is during the Company's fourth quarter. The Company performed a complete goodwill impairment analysis for all of its reporting segments during the second quarter of 2011 and a roll-forward of that analysis during the third quarter of 2011 because volatile market conditions caused the Company's market value to fall below book value. Based on these analyses, the estimated fair value exceeded its respective carrying value by 2% for the Company's Community Banking reporting segment and by 30% for the Company's Insurance Agencies reporting segment. The Company's annual goodwill impairment evaluation performed during the fourth quarter also indicated no impairment of goodwill for its reporting units. Therefore, no goodwill impairment was recorded during 2011. The Company's annual goodwill impairment evaluation for 2010 indicated no impairment of goodwill for its reporting units. The Company will continue to test reporting unit goodwill for potential impairment on an annual basis in the Company's fourth quarter, or sooner if a goodwill impairment indicator is identified

In the current environment, forecasting cash flows, credit losses and growth in addition to valuing the Company's assets with any degree of assurance is very difficult and subject to significant changes over very short periods of time. Management will continue to update its analysis as circumstances change. As market conditions continue to be volatile and unpredictable, impairment of goodwill related to the Company's reporting segments may be necessary in future periods.

The following tables present information regarding the components of the Company's identifiable intangible assets included in the other assets category on the consolidated balance sheet for the years ended December 31, 2011 and 2010:

	Year ended				Year ended
	December 31, 2011				December 31, 2010
	Gross Carrying		Accumulated		Gross Carrying		Accumulated
	Amount		Amortization		Amount		Amortization
Amortized intangible assets:	(In thousands)
Core deposit intangibles	$	27,801	$	20,728	$	27,801	$	19,716
Customer relationship intangibles		32,749		23,935		32,511		21,661
Non-solicitation intangibles		75		38		600		600
Total	$	60,625	$	44,701	$	60,912	$	41,977

Unamortized intangible assets:
Trade names	$	688	$	-	$	688	$	-

	Year ended
	December 31,
		2011		2010
Aggregate amortization expense for:	(In thousands)
Core deposit intangibles	$	1,012	$	1,308
Customer relationship intangibles		2,274		2,601
Non-solicitation intangibles		38		-
Total	$	3,324	$	3,909

The following table presents information regarding estimated amortization expense of the Company's amortizable identifiable intangible assets for the year ending December 31, 2012, and the succeeding four years:

	Core		Customer		Non-
	Deposit		Relationship		Solicitation
	Intangibles		Intangibles		Intangibles		Total
Estimated amortization expense:	(In thousands)
For the year ending December 31, 2012	$	946	$	1,974	$	37	$	2,957
For the year ending December 31, 2013		582		1,686		-		2,268
For the year ending December 31, 2014		526		1,435		-		1,961
For the year ending December 31, 2015		487		1,158		-		1,645
For the year ending December 31, 2016		451		893		-		1,344

- 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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