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Goodwill and Other Intangible Assets
 3 Months Ended
Mar. 31, 2013
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 step one impairment test as of December 31, 2012 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 three months of 2013 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 March 31, 2013  
    Gross carrying
amount		     Accumulated
amortization		     Valuation
allowance		     Net carrying
amount		  
Core deposit intangible assets   $ 4,973     $ (4,334 )   $ -     $ 639  
Mortgage servicing rights     3,218       (1,216 )     (212 )     1,790  
Total other intangible assets   $ 8,191     $ (5,550 )   $ (212 )   $ 2,429  

 

(Dollars in thousands)   As of December 31, 2012  
    Gross carrying
amount		     Accumulated
amortization		     Valuation
allowance		     Net carrying
amount		  
Core deposit intangible assets   $ 4,973     $ (4,258 )   $ -     $ 715  
Mortgage servicing rights     3,038       (1,147 )     (212 )     1,679  
Total other intangible assets   $ 8,011     $ (5,405 )   $ (212 )   $ 2,394  

 

During 2012, the Company recorded a $212,000 valuation allowance against its mortgage servicing rights. The continual decline in mortgage rates decreased the estimated fair value of these assets as it became more likely that some of the loans that the Company services will be refinanced.

 

Aggregate core deposit and mortgage servicing rights amortization expense was $223,000 and $211,000 for the first quarter of 2013 and 2012, respectively. The following sets forth estimated amortization expense for other intangible assets for the remainder of 2013 and in successive years ending December 31:

 

(Dollars in thousands)   Amortization  
    expense  
Remainder of 2013   $ 646  
2014     778  
2015     696  
2016     214  
2017     31  
Thereafter     64  
Total   $ 2,429