XML 63 R12.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Intangible Assets | 9 Months Ended
--- | ---
Sep. 30, 2012
Intangible Assets [Abstract] |
Intangible Assets |
(5) |  | Intangible Assets
Core Deposit Intangible Asset A summary of amortizable intangible assets at September 30, 2012 and December 31, 2011 is as follows:
|  | September 30, 2012 |  |  | December 31, 2011 |
(in thousands) |  | Gross Carrying Amount |  |  | Accumulated Amortization |  |  | Net Amount |  |  | Gross Carrying Amount |  |  | Accumulated Amortization |  |  | Net Amount |
Core deposit intangible |  | $ | 4,795 |  |  | $ | (4,559 | ) |  | $ | 236 |  |  | $ | 4,795 |  |  | $ | (4,252 | ) |  | $ | 543 |
Our Company’s amortization expense on intangible assets in any given period may be different from the estimated amounts depending upon the acquisition of intangible assets, changes in mortgage interest rates, prepayment rates and other market conditions. The following table shows the estimated future amortization expense based on existing asset balances and the interest rate environment as of September 30, 2012 for the next five years:
(in thousands) |  | Core Deposit Intangible Asset |
2012 |  | $ | 101 |
2013 |  |  | 135 |
2014 |  |  | — |
2015 |  |  | — |
2016 |  |  | — |
2017 |  |  | — |
Changes in the net carrying amount of core deposit intangible assets in the table below for the periods indicated were as follows:
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
(in thousands) |  | 2012 |  |  | 2011 |  |  | 2012 |  |  | 2011 |
Balance at beginning of period |  | $ | 337 |  |  | $ | 751 |  |  | $ | 543 |  |  | $ | 978 |
Additions |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Amortization |  |  | (101 | ) |  |  | (104 | ) |  |  | (307 | ) |  |  | (331 | )
Balance at end of period |  | $ | 236 |  |  | $ | 647 |  |  | $ | 236 |  |  | $ | 647 |
Mortgage Servicing Rights On January 1, 2012, our Company opted to measure mortgage servicing rights at fair value as permitted by Accounting Standards Codification (ASC) Topic 860-50 Accounting for Servicing Financial Assets. The election of this option resulted in the recognition of a cumulative effect of change in accounting principle of $460,000, which was recorded as an increase to beginning retained earnings. As such, effective January 1, 2012, changes in the fair value of mortgage servicing rights are recognized in earnings in noninterest income in the period in which the change occurs and no amortization will be recognized on mortgage servicing rights going forward. At September 30, 2012 and December 31, 2011, our Company serviced mortgage loans for others totaling $306,926,000 and $307,016,000, respectively. The table below presents changes in mortgage servicing rights (MSRs) for the periods indicated:
(in thousands) |  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2012 |  |  | 2011 |  |  | 2012 |  |  | 2011 |
Balance at beginning of period |  | $ | 2,666 |  |  | $ | 2,272 |  |  | $ | 2,308 |  |  | $ | 2,356 |
Re-measurement to fair value upon election to measure servicing rights at fair value |  |  | 0 |  |  |  | 0 |  |  |  | 742 |  |  |  | 0 |
Originated mortgage servicing rights |  |  | 231 |  |  |  | 215 |  |  |  | 559 |  |  |  | 436 |
Changes in fair value: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Due to change in model inputs and assumptions (1) |  |  | 96 |  |  |  | 0 |  |  |  | 372 |  |  |  | 0 |
Other changes in fair value (2) |  |  | (369 | ) |  |  | 0 |  |  |  | (1,357 | ) |  |  | 0 |
Amortization |  |  | 0 |  |  |  | (221 | ) |  |  | 0 |  |  |  | (526 | )
Balance at end of period |  | $ | 2,624 |  |  | $ | 2,266 |  |  | $ | 2,624 |  |  | $ | 2,266 |
| (1) | The change in fair value resulting from changes in valuation inputs or assumptions used in valuation model primarily reflects the change in discount rates and prepayment speed assumptions primarily due to changes in interest rates.
| (2) | Other changes in fair value reflect changes due to customer payments and passage of time. This also includes a one time adjustment of a $538,000 correction of an immaterial prior period error due to changing from the straight-line amortization method to an accelerated amortization method of accounting for amortizing MSRs in prior years. If the aforementioned was corrected as of December 31, 2011, the balance at the beginning of the period would have been $1,770,000.
The following key data and assumptions were used in estimating the fair value of our Company’s mortgage servicing rights as of the date indicated:
|  | September 30, 2012 |
Weighted-Average Constant Prepayment Rate |  |  | 16.32 | %
Weighted-Average Contractual Life (in years) |  |  | 20.00 |
Weighted-Average Note Rate |  |  | 4.38 | %
Weighted-Average Discount Rate |  |  | 8.01 | %

X
- Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=7658586&loc=d3e16373-109275 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=7658586&loc=d3e16265-109275 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=7658586&loc=d3e16323-109275 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 142 -Paragraph 42, 43, 44, 45, 46, 47 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=14024403&loc=d3e13854-109267 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=14024403&loc=d3e13816-109267 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration