Goodwill And Other Intangible Assets

12 Months Ended

Dec. 31, 2013

Goodwill And Other Intangible Assets [Abstract]

Note 5: Goodwill and Other Intangible Assets

We have recorded goodwill and other identifiable intangible assets associated with purchase business combinations. Goodwill is not amortized, but is periodically evaluated for impairment. We perform an annual goodwill impairment test as of October 1 of each year and assess qualitative factors on a quarterly basis that would indicate events or circumstances that an impairment might have taken place.

Goodwill totaled $1.2 million at December 31, 2013 and 2012, of which, $0.2 million of goodwill is reported in the Oklahoma Banking segment and $1.0 million is reported in the Texas Banking segment. Further information regarding operating segments can be found in “Note 18 Operating Segments”.

Based on our annual goodwill impairment test as of October 1, 2013 and updated through December 31, 2013, management does not believe any of its goodwill is impaired as of December 31, 2013. We did not recognize an impairment during the years ended December 31, 2013, 2012 and 2011.

The following table presents the gross carrying amount of other intangible assets and accumulated amortization.


	At December 31,
(Dollars in thousands)	2013		2012
Core deposit premiums	$	5,400	$	5,400
Less accumulated amortization		(3,343)		(2,857)
Core deposit premiums, net		2,057		2,543

Loan servicing rights		11,689		10,257
Less accumulated amortization		(8,766)		(7,936)
Loan servicing rights, net		2,923		2,321

Other intangible assets, net	$	4,980	$	4,864

Core deposit intangibles are amortized using an economic life method based on deposit attrition. As a result, amortization will decline over time with most of the amortization occurring during the initial years. The weighted average amortization period for core deposit intangibles is approximately 10 years. Amortization expense related to core deposit intangibles totaled $0.5 million in 2013, 2012, and 2011.

During 2013 and 2012, we had recorded loan servicing right amortization expense of $0.8 million and $0.7 million, respectively.

The estimated aggregate future amortization expense for other intangible assets remaining as of December 31, 2013 is as follows:


(Dollars in thousands)	Core Deposit Premiums		Loan Servicing Rights		Total
2014	$	514	$	512	$	1,026
2015		474		476		950
2016		425		400		825
2017		249		333		582
2018		182		274		456
Thereafter		213		928		1,141
	$	2,057	$	2,923	$	4,980

- 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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