Annual report pursuant to Section 13 and 15(d)

INTANGIBLE ASSETS

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INTANGIBLE ASSETS
 12 Months Ended
Dec. 31, 2013
Goodwill and Intangible Assets Disclosure [Abstract]  
INTANGIBLE ASSETS

NOTE 5 - INTANGIBLE ASSETS

 

The Company had net intangible assets of $84.8 million and $85.1 million at December 31, 2013 and December 31, 2012, respectively.  Intangible assets were as follows:

 

    2013   2012
(Dollars in Thousands)   Gross Amount   Accumulated Amortization   Gross Amount   Accumulated Amortization
Core Deposit Intangibles   $ 47,176     $ 47,176     $ 47,176     $ 47,157  
Goodwill     84,811       —         84,811       —    
Customer Relationship Intangible     1,867       1,835       1,867       1,644  
Total Intangible Assets   $ 133,854     $ 49,011     $ 133,854     $ 48,801  

 

Net Core Deposit Intangibles:  As of December 31, 2013, the Company’s core deposit intangibles were fully amortized. Amortization expense for the twelve months of 2013, 2012, and 2011 was $19,000, 200,000, and $500,000, respectively.

 

Goodwill:  As of December 31, 2013 and December 31, 2012, the Company had goodwill, net of accumulated amortization, of $84.8 million. Goodwill is tested for impairment on an annual basis, or more often if impairment indicators exist. A goodwill impairment test consists of two steps. Step One compares the estimated fair value of the reporting unit to its carrying amount. If the carrying amount exceeds the estimated fair value, Step Two is performed by comparing the fair value of the reporting unit’s implied goodwill to the carrying value of goodwill. If the carrying value of the reporting unit’s goodwill exceeds the estimated fair value, an impairment charge is recorded equal to the excess.

 

As of December 31, 2013, the Company’s net book value, including goodwill, exceeded its market capitalization, and as such, the Company performed goodwill impairment testing. The Step One test indicated that the carrying amount (including goodwill) of the Company’s reporting unit was less than its estimated fair value, therefore, no impairment was recorded. The Company will continue to evaluate goodwill for impairment as defined by ASC Topic 350.

 

Other:  As of December 31, 2013 and December 31, 2012, the Company had a customer relationship intangible asset, net of accumulated amortization, of $32,000 and $223,000, respectively.  This intangible asset was recorded as a result of the acquisition of trust customer relationships.  Annual amortization expense during 2013, 2012, and 2011 was approximately $191,000.  The Company’s customer relationship intangible asset will be fully amortized by February 2014.