Other Intangible Assets and Goodwill

12 Months Ended

Dec. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Note 6. Other Intangible Assets and Goodwill

The following table sets forth information regarding the Company’s core deposit intangibles:



	At or for the Years ended
(Dollars in thousands)	December 31, 2013			December 31, 2012		December 31, 2011
Gross carrying value	$	27,857		22,404		28,248
Accumulated amortization	(18,345		)	(16,230	)	(19,964	)
Net carrying value	$	9,512		6,174		8,284
Aggregate amortization expense	$	2,401		2,110		2,473
Weighted-average amortization period
(Period in years)	9.5
Estimated amortization expense for the years ending December 31,
2014	$	2,650
2015	2,198
2016	1,700
2017	828
2018	430

Core deposit intangibles increased $5,739,000 during 2013 due to the acquisitions of Wheatland and NCBI. For additional information relating to acquisitions, see Note 22.

The following schedule discloses the changes in the carrying value of goodwill:



	Years ended
(Dollars in thousands)	December 31, 2013		December 31, 2012	December 31, 2011
Net carrying value at beginning of period	$	106,100	106,100	146,259
Acquisitions	23,606		—	—
Impairment charge	—		—	(40,159	)
Net carrying value at end of period	$	129,706	106,100	106,100

The gross carrying value of goodwill and the accumulated impairment charge consists of the following:



(Dollars in thousands)	December 31, 2013			December 31, 2012
Gross carrying value	$	169,865		146,259
Accumulated impairment charge	(40,159		)	(40,159	)
Net carrying value	$	129,706		106,100

Note 6. Other Intangible Assets and Goodwill (continued)

The Company’s first step in evaluating goodwill for possible impairment is a control premium analysis. The analysis first calculates the market capitalization and then adjusts such value for a control premium range which results in an implied fair value. The control premium range is determined based on historical control premiums for acquisitions that are comparable to the Company and is obtained from an independent third party. The calculated implied fair value is then compared to the book value to determine whether the Company needs to proceed to step two of the goodwill impairment assessment. The Company performed its annual goodwill impairment test during the third quarter of 2013 and determined the fair value of the aggregated reporting units exceeded the carrying value, such that the Company’s goodwill was not considered impaired. In recognition there were no events or circumstances that occurred during the fourth quarter of 2013 that would more-likely-than-not reduce the fair value of a reporting unit below its carrying value, the Company did not perform interim testing at December 31, 2013. However, changes in the economic environment, operations of the aggregated reporting units, or other factors could result in the decline in the fair value of the aggregated reporting units which could result in a goodwill impairment in the future. Due to high levels of volatility and dislocation in prices of shares of publicly-held, exchange listed banking companies in 2011, a goodwill impairment charge was recognized by the Company during the third quarter of 2011. The method utilized for the 2011 two-step impairment analysis and the corresponding amount of the impairment charge included quoted stock market prices for other banks, discounted cash flows and inputs from comparable transactions.

- 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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