Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

2. Goodwill and Other Intangible Assets

The Company tests goodwill for impairment annually or more frequently if circumstances warrant. The Company’s annual impairment test as of December 31, 2011 concluded that its goodwill was not impaired; however, the Company can make no assurances that future impairment tests will not result in goodwill impairments. The Company concluded there were no triggering events during the first nine months of 2012 that required an interim goodwill impairment test.

On April 1, 2012, the Company’s subsidiary, Landmark National Bank, assumed approximately $35.0 million in deposits with the acquisition of the Wellsville Bank. The Company identified $24.7 million of core deposits and recorded a core deposit intangible asset of $308,000 as a result of the acquisition. The core deposit intangible asset will be amortized over its estimated useful life of ten years on an accelerated basis. A summary of this and the other intangible assets that continue to be subject to amortization is as follows:

(Dollars in thousands)	As of September 30, 2012
	Gross carrying amount		Accumulated amortization			Valuation allowance			Net carrying amount
Core deposit intangible assets	$	4,973	$	(4,171	)	$	-		$	802
Mortgage servicing rights		2,785		(1,109	)		(212	)		1,464
Total other intangible assets	$	7,758	$	(5,280	)	$	(212	)	$	2,266

(Dollars in thousands)	As of December 31, 2011
	Gross carrying amount		Accumulated amortization			Valuation allowance		Net carrying amount
Core deposit intangible assets	$	4,665	$	(3,902	)	$	-	$	763
Mortgage servicing rights		2,149		(989	)		-		1,160
Total other intangible assets	$	6,814	$	(4,891	)	$	-	$	1,923

Aggregate core deposit and mortgage servicing rights amortization expense was $481,000 and $190,000 for the third quarter of 2012 and 2011, respectively. Aggregate core deposit and mortgage servicing rights amortization expense was $907,000 and $551,000 for the first nine months of 2012 and 2011, respectively. The following sets forth estimated amortization expense for other intangible assets for the remainder of 2012 and in successive years ending December 31:

(Dollars in thousands)	Amortization
	expense
Remainder of 2012	$	229
2013		846
2014		756
2015		301
2016		38
Thereafter		96
Total	$	2,266