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GOODWILL, CORE DEPOSIT INTANGIBLE AND OTHER ASSETS
12 Months Ended
Dec. 31, 2011
GOODWILL, CORE DEPOSIT INTANGIBLE AND OTHER ASSETS  
GOODWILL, CORE DEPOSIT INTANGIBLE AND OTHER ASSETS

Note 8—GOODWILL, CORE DEPOSIT INTANGIBLE AND OTHER ASSETS

        Intangible assets (excluding goodwill) consisted of the following:

 
  December 31,  
(Dollars in thousands)
  2011   2010  

Core deposit premiums, gross carrying amount

  $ 3,438   $ 3,438  

Other intangibles

    646     646  
           

 

    4,084     4,084  

Accumulated amortization

    (3,719 )   (3,203 )
           

Net

  $ 365   $ 881  
           

        Amortization of the intangibles amounted to $517 thousand, $621 thousand and $621 thousand the years ended December 31, 2011, 2010 and 2009, respectively. Amortization of the intangibles is scheduled to be as follows:

(Dollars in thousands)
   
 

2012

  $ 204  

2013

    161  
       

 

  $ 365  
       

        The acquisition of two financial advisory firms in 2008 resulted in recognition of $646 thousand in an intangible asset related to the customer list. The intangible asset is being amortized on a straight line basis over five years.

        Market capitalization and acquisition multiples had significantly declined since 2004 and 2006, which were the dates of the acquisition of Dutchfork Bankshares and DeKalb Bancshares, respectively. The multiples and the resulting valuations have declined dramatically throughout 2008 and 2009 as a result of the ongoing economic downturn. The step 2 test under accounting guidance at September 30, 2009 reflected 100 percent of the goodwill was impaired. As a result, the company recognized a goodwill impairment charge in the amount of $27.8 million in the third quarter of 2009. The impairment charge resulted in all of the goodwill intangible related to these two transactions being written off as of September 30, 2009. As a result of the acquisition of Palmetto South mortgage on July 31, 2011, we have recorded goodwill in the amount of $571 thousand. Beginning in 2012 and each year, thereafter, this goodwill will be tested for impairment.

        Bank-owned life insurance provides benefits to various existing officers. The carrying value of all existing policies at December 31, 2011and 2010 was $11.0 million and $10.8 million, respectively.