Other Intangible Assets: At September 30, 2011, intangible assets consisted primarily of core deposit intangibles (CDI), which are amounts recorded in business combinations or deposit purchase transactions related to the value of transaction-related deposits and the value of the customer relationships associated with the deposits.

We amortize CDI over their estimated useful life and review them at least annually for events or circumstances that could impact their recoverability. The core deposit intangible assets shown in the table below represent the value ascribed to the long-term deposit relationships acquired in three separate bank acquisitions during 2007. These intangible assets are being amortized using an accelerated method over estimated useful lives of eight years. The core deposit intangible assets are not estimated to have a significant residual value. Other intangible assets are amortized over their useful lives and are also reviewed for impairment.

The following table summarizes the changes in the Company’s core deposit intangibles and other intangibles for the nine months ended September 30, 2011 and the year ended December 31, 2010 (in thousands):

		Core Deposit Intangibles			Other			Total

Balance, December 31, 2010	$	8,598		$	11		$	8,609
Amortization		(1,721	)		(1	)		(1,722	)
Balance, September 30, 2011	$	6,877		$	10		$	6,887

		Core Deposit Intangibles			Other			Total

Balance, December 31, 2009	$	11,057		$	13		$	11,070
Amortization		(2,459	)		(2	)		(2,461	)
Balance, December 31, 2010	$	8,598		$	11		$	8,609

Estimated annual amortization expense with respect to existing intangibles as of September 30, 2011 is as follows (in thousands):

Year Ended	Core Deposit Intangibles		Other		Total

December 31, 2011	$	2,276	$	2	$	2,278
December 31, 2012		2,092		2		2,094
December 31, 2013		1,908		2		1,910
December 31, 2014		1,724		2		1,726
Thereafter		598		3		601
	$	8,598	$	11	$	8,609

Mortgage Servicing Rights: Mortgage servicing rights are reported in other assets. Mortgage servicing rights are initially reported at fair value and are amortized in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Mortgage servicing rights are subsequently evaluated for impairment based upon the fair value of the rights compared to the amortized cost (remaining unamortized initial fair value). If the fair value is less than the amortized cost, a valuation allowance is created through an impairment charge to servicing fee income. However, if the fair value is greater than the amortized cost, the amount above the amortized cost is not recognized in the carrying value. During the first nine months of 2011 and during all of 2010, the Company did not record an impairment charge. Loans serviced for others totaled $747 million and $705 million at September 30, 2011 and December 31, 2010, respectively. Custodial accounts maintained in connection with this servicing totaled $5 million and $6 million at September 30, 2011 and December 31, 2010, respectively.

An analysis of our mortgage servicing rights for the three and nine months ended September 30, 2011 and 2010 is presented below (in thousands):

	Three Months Ended September 30						Nine Months Ended September 30
		2011			2010			2011			2010

Balance, beginning of the period	$	5,369		$	5,315		$	5,441		$	5,703
Amounts capitalized		573			873			1,226			1,290
Amortization (1)		(448	)		(579	)		(1,173	)		(1,384	)
Balance, end of the period	$	5,494		$	5,609		$	5,494		$	5,609

(1) Amortization of mortgage servicing rights is recorded as a reduction of loan servicing income and any unamortized balance is fully written off if the loan repays in full.