Intangible Assets

12 Months Ended

Dec. 31, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Intangible Assets

Business Combinations

Unamortized Intangible Assets (Goodwill)

FNB conducted an annual goodwill impairment test as of December 31, 2012, and had determined that there was no impairment to goodwill. The goodwill relates to the Granite acquisition. During 2012 Granite generated net income, improved its asset quality, and met the capital requirements of the bank order which was terminated on February 27, 2013.

For intangible assets related to business combinations, the following is a summary of the changes in the balance of unamortized intangible assets (goodwill) during the years ended December 31, 2012, 2011 and 2010:

(dollars in thousands)	For the Twelve Months Ended December 31,
	2012		2011		2010
Gross balance at beginning of year	$	3,905	$	—	$	—
Accumulated impairment balance beginning of year	—		—		—
Effect of Granite merger	300		3,905		—
Impairment	—		—		—
Accumulated balance at end of year	$	4,205	$	3,905	$	—

Amortized Intangible Assets

Core Deposit Premium

For intangible assets related to business combinations, the following is a summary of the changes in the original carrying amount of amortized intangible assets during the years ended December 31, 2012, 2011 and 2010:

(dollars in thousands)	For the Twelve Months Ended December 31,
	2012		2011		2010
Balance at the beginning of the period	$	13,102	$	8,202	$	8,202
Effect of Granite merger	—		4,900		—
Impairment	—		—		—
Balance at the end of the period	$	13,102	$	13,102	$	8,202

For intangible assets related to business combinations, the following is a summary of the gross carrying amount and accumulated amortization of amortized intangible assets and the carrying amount of unamortized intangible assets:

(dollars in thousands)	As of December 31,
	2012		2011
Core deposit premium related to whole bank acquisitions:
Carrying amount	$	13,102	$	13,102
Accumulated amortization	6,332		4,925
Net core deposit premium	$	6,770	$	8,177

Amortization of intangibles totaled approximately $1.4 million for core deposit premiums in 2012, $0.9 million in 2011 and $0.8 million in 2010.

The following table presents the estimated amortization expense for intangible assets for each of the five calendar years ending December 31, 2017 and the estimated amount amortizable thereafter. These estimates are subject to change in future periods to the extent management determines it is necessary to make adjustments to the carrying value or estimated useful lives of amortized intangible assets.

(dollars in thousands)	Estimated Amortization Expense
2013	$	1,407
2014	1,407
2015	1,386
2016	834
2017	612
Thereafter	1,123
Total	$	6,769

Mortgage Servicing Rights

Mortgage loans serviced for others are not included in the consolidated balance sheets. The unpaid principal balance of mortgage loans serviced for others amounted to $65.1 million, $0.7 million, and $493.7 million at December 31, 2012, 2011, and 2010, respectively.

In accordance with instructions from Fannie Mae, CommunityOne entered into an agreement on December 29, 2010 to sell to a third party mortgage servicing rights on approximately $492.9 million of loans serviced for Fannie Mae and recognized a loss of $3.0 million, including transaction costs. CommunityOne continued to service these loans until January 31, 2011.