Intangible Assets

12 Months Ended

Dec. 31, 2011

Intangible Assets [Abstract]

Intangible Assets

Note 5 – Intangible Assets

Business Combinations

Unamortized Intangible Assets (Goodwill)

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, 2011, 2010 and 2009:

(dollars in thousands)	As of December 31,
	2011		2010		2009
Gross balance at beginning of year	$	—	$	—	$	110,195
Accumulated impairment balance beginning of year		—		—		(57,800	)
Effect of Granite merger		3,905		—		—
Impairment		—		—		(52,395	)
Accumulated balance at end of year	$	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, 2011, 2010 and 2009:

CORE DEPOSIT INTANGIBLE

(dollars in thousands)	As of December 31,
	2011		2010		2009
Balance at beginning of year	$	8,202	$	8,202	$	8,202
Effect of Granite merger		4,900		—		—
Impairment		—		—		—
Balance at end of year	$	13,102	$	8,202	$	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:

CORE DEPOSIT INTANGIBLE

(dollars in thousands)	As of December 31,
	2011		2010
Core deposit premium related to whole bank acquisitions:
Carrying amount	$	13,102	$	8,202
Accumulated amortization		4,925		4,029
Net core deposit premium	$	8,177	$	4,173

Amortization of intangibles totaled approximately $0.9 million for core deposit premiums in 2011, $0.8 million in 2010 and $0.8 million in 2009.

The following table presents the estimated amortization expense for intangible assets for each of the five calendar years ending December 31, 2016 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.

CORE DEPOSIT INTANGIBLE

(dollars in thousands)	Estimated Amortization Expense
2012	$	1,407
2013		1,407
2014		1,407
2015		1,386
2016		834
Thereafter		1,736
Total	$	8,177

Mortgage Servicing Rights

Mortgage loans serviced for others are not included in the consolidated balance sheet. The unpaid principal balance of mortgage loans serviced for others amounted to $0.7 million, $493.7 million and $453.3 million at December 31, 2011, 2010 and 2009, 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. CommunityOne did not sell any mortgage servicing rights in 2009.