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Goodwill And Other Intangible Assets
6 Months Ended
Jun. 30, 2011
Goodwill And Other Intangible Assets  
Goodwill and Other Intangible Assets

(9) Goodwill and Other Intangible Assets

A summary of the Company's goodwill assets by business segment is presented in the following table:

 

(Dollars in thousands)

   January 1,
2011
     Goodwill
Acquired
     Impairment
Loss
     June 30,
2011
 

Community banking

   $ 250,766       $ 2,111       $ —         $ 252,877   

Specialty finance

     16,095         —           —           16,095   

Wealth management

     14,329         —           —           14,329   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 281,190       $ 2,111       $ —         $ 283,301   
  

 

 

    

 

 

    

 

 

    

 

 

 

The Community banking segment's goodwill increased $2.1 million in 2011 as a result of the acquisition of certain assets and the assumption of certain liabilities of the mortgage banking businesses of Woodfield and River City. The acquisition of Woodfield and River City increased goodwill $750,000 and $1.4 million, respectively.

Pursuant to the acquisition of Professional Mortgage Partners ("PMP") in December 2008, Wintrust may be required to pay contingent consideration to the former owner of PMP as a result of attaining certain performance measures through December 2011. Any contingent payments made pursuant to this transaction would be reflected as increases in the Community banking segment's goodwill.

 

A summary of finite-lived intangible assets as of the dates shown and the expected amortization as of June 30, 2011, December 31, 2010, and June 30, 2010 is as follows:

 

(Dollars in thousands)

   June 30,
2011
    December 31,
2010
    June 30,
2010
 

Specialty finance segment:

      

Customer list intangibles:

      

Gross carrying amount

   $ 1,800      $ 1,800      $ 5,052   

Accumulated amortization

     (361     (253     (3,401
  

 

 

   

 

 

   

 

 

 

Net carrying amount

   $ 1,439      $ 1,547      $ 1,651   
  

 

 

   

 

 

   

 

 

 

Community banking segment:

      

Core deposit intangibles:

      

Gross carrying amount

   $ 29,808      $ 29,608      $ 28,888   

Accumulated amortization

     (19,715     (18,580     (17,264
  

 

 

   

 

 

   

 

 

 

Net carrying amount

   $ 10,093      $ 11,028      $ 11,624   
  

 

 

   

 

 

   

 

 

 

Total other intangible assets, net

   $ 11,532      $ 12,575      $ 13,275   
  

 

 

   

 

 

   

 

 

 

 

Estimated amortization

      

Actual in six months ended June 30, 2011

   $ 1,393   

Estimated remaining in 2011

     1,392   

Estimated — 2012

     2,728   

Estimated — 2013

     2,639   

Estimated — 2014

     2,293   

Estimated — 2015

     915   

The customer list intangibles recognized in connection with the purchase of life insurance premium finance assets in 2009 are being amortized over an 18-year period on an accelerated basis.

The increase in core deposit intangibles from 2010 was related to the FDIC-assisted acquisition of CFBC and TBOC during the first quarter of 2011. Core deposit intangibles recognized in connection with the Company's bank acquisitions are being amortized over ten-year periods on an accelerated basis.

Total amortization expense associated with finite-lived intangibles totaled approximately $1.4 million and $1.3 million for the six months ended June 30, 2011 and 2010, respectively.