Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets

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Intangible Assets
3 Months Ended
Mar. 31, 2013
Intangible Assets [Abstract]  
INTANGIBLE ASSETS
4. INTANGIBLE ASSETS

The Company’s intangible assets consist of core deposits, trademarks, and goodwill arising from previous acquisitions. The Company has determined that core deposit intangibles and trademarks have a finite life and amortizes them over their estimated useful life. Core deposit intangible assets are being amortized over the period of expected benefit, which ranges from 4 to 14 years, using an accelerated method. The trademark intangible acquired through previous acquisitions was amortized over three years using the straight-line method. In accordance with Accounting Standards Codification (“ASC”) 350, Intangibles-Goodwill and Other (“ASC 350”), the Company reviews the carrying value of indefinite lived intangible assets at least annually or more frequently if certain impairment indicators exist. Based on the annual testing during the second quarter of each year and the absence of impairment indicators subsequent to the evaluation date, the Company has recorded no impairment charges to date for goodwill or intangible assets.

Information concerning intangible assets with a finite life is presented in the following table (dollars in thousands):

 

                         
    Gross Carrying
Value
    Accumulated
Amortization
    Net Carrying
Value
 

March 31, 2013

                       

Amortizable core deposit intangibles

  $ 46,615     $ 31,873     $ 14,742  

Trademark intangible

    1,200       1,200       —    
       

December 31, 2012

                       

Amortizable core deposit intangibles

  $ 46,615     $ 30,837     $ 15,778  

Trademark intangible

    1,200       1,167       33  
       

March 31, 2012

                       

Amortizable core deposit intangibles

  $ 46,615     $ 27,212     $ 19,403  

Trademark intangible

    1,200       867       333  

 

Amortization expense of core deposit intangibles for the three months ended March 31, 2013 and 2012, and for the year ended December 31, 2012 totaled $1.0 million, $1.3 million, and $4.9 million, respectively. Amortization expense of the trademark intangibles for the three months ended March 31, 2013 and 2012 totaled $33,000 and $100,000, respectively, and for the year ended December 31, 2012 was $400,000. As of March 31, 2013, the estimated remaining amortization expense of core deposit intangibles for the remainder of 2013 and for each of the five succeeding fiscal years is as follows for the years ending (dollars in thousands):

 

         

For the remaining nine months of 2013

  $ 2,761  

For the year ending December 31, 2014

    2,898  

For the year ending December 31, 2015

    2,463  

For the year ending December 31, 2016

    1,862  

For the year ending December 31, 2017

    1,437  

For the year ending December 31, 2018

    906  

Thereafter

    2,415  
   

 

 

 
    $ 14,742