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GOODWILL AND OTHER INTANGIBLE ASSETS
12 Months Ended
Dec. 31, 2011
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure [Text Block]

NOTE 7. GOODWILL AND OTHER INTANGIBLE ASSETS

 

Goodwill totaled $12.5 million at December 31, 2011 and $13.7 million at December 31, 2010. Under the provisions of FASB ASC Topic 350, “Intangibles – Goodwill and Other”, goodwill was subjected to an annual assessment for impairment during the third quarter of 2011. As a result of the annual assessment, it was determined that no goodwill impairment existed in the Company’s Community Banking segment. In 2010, the annual assessment determined that goodwill impairment existed at one of the Banks in the Community Banking segment and the Company recorded goodwill impairment charges of $1.5 million. The Community Banking segment had $2.6 million in goodwill at the end of both 2011 and 2010. See Note 26 for further information regarding the Company’s business segments.

 

During the testing for goodwill and other intangible assets impairment in the third quarter of 2011, it was determined that goodwill and other intangible assets were impaired in the Insurance Products and Services segment, primarily relating to the Company’s retail insurance business. The Company recorded goodwill impairment charges of $1.2 million and other intangible assets impairment charges of $120 thousand. In 2010, the annual assessment determined that goodwill impairment existed in the Company’s wholesale insurance business in the Insurance Products and Services segment. The Company recorded goodwill impairment charges of $1.5 million and other intangible assets impairment charges of $51 thousand in the third quarter of 2010. During the fourth quarter of 2010, goodwill increased $724 thousand for the Insurance Products and Services segment. The increase reflected a contingent payment to be made to one of the Company’s retail insurance producer firms for meeting performance criteria outlined in its acquisition agreement. As of December 31, 2011, the Insurance Products and Services segment had $9.9 million in goodwill compared to $11.1 million at the end of 2010.

 

The Company will continue to review goodwill and other intangible assets on an annual basis for impairment and as events occur or circumstances change.

 

The significant components of goodwill and acquired intangible assets are as follows:

 

    December 31, 2011     December 31, 2010  
(Dollars in thousands)   Gross
Carrying
Amount
    Impairment
Charges
    Accumulated
Amortization
    Net
Carrying
Amount
    Weighted
Average
Remaining
Life
    Gross
Carrying
Amount
    Impairment
Charges
    Accumulated
Amortization
    Net
Carrying
Amount
    Weighted
Average
Remaining
Life
 
                                                             
Goodwill   $ 17,345     $ (4,224 )   $ (667 )   $ 12,454       -     $ 17,345     $ (3,000 )   $ (667 )   $ 13,678       -  
                                                                                 
Other intangible assets                                                                                
Amortizable                                                                                
Employment agreements   $ 1,730     $ -     $ (1,059 )   $ 671       2.7     $ 1,730     $ -     $ (810 )   $ 920       3.7  
Insurance expirations     1,270       -       (809 )     461       5.4       1,270       -       (725 )     545       6.4  
Core deposits     968       -       (938 )     30       0.3       968       -       (817 )     151       1.3  
Customer relationships     960       (126 )     (253 )     581       11.6       960     (6 )     (195 )     759       12.6  
      4,928       (126 )     (3,059 )     1,743               4,928     (6 )     (2,547 )     2,375          
Unamortizable                                                                                
Carrier relationships     1,300       (45 )     -       1,255       -       1,300       (45 )     -       1,255       -  
Trade name     1,210       -       -       1,210       -       1,210       -       -       1,210       -  
      2,510       (45 )     -       2,465               2,510       (45 )     -       2,465          
Total other intangible assets   $ 7,438     $ (171 )   $ (3,059 )   $ 4,208             $ 7,438     $ (51 )   $ (2,547 )   $ 4,840          

 

The current period and estimated future amortization expense for amortizable other intangible assets is as follows:

 

        Amortization  
(Dollars in thousands)         Expense  
Year ended December 31, 2011         $ 512  
               
Estimate for years ended December 31,   2012       392  
    2013       296  
    2014       296  
    2015       255  
    2016       134