Goodwill And Other Intangible Assets

9 Months Ended

Sep. 30, 2011

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		September 30, 2011
Community banking	$	250,766	$	5,951	$	—	$	256,717
Specialty finance		16,095		—		—		16,095
Wealth management		14,329		15,228		—		29,557

Total	$	281,190	$	21,179	$	—	$	302,369

The Community banking segment's goodwill increased $6.0 million in 2011 as a result of the ESBI acquisition as well as the acquisition of certain assets and the assumption of certain liabilities of the mortgage banking businesses of Woodfield and River City. The acquisition of ESBI, Woodfield and River City increased goodwill $3.8 million, $750,000 and $1.4 million, respectively. Further, the Wealth management segment's goodwill increased $15.2 million in 2011 as a result of the acquisition of Great Lakes Advisors.

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 September 30, 2011 is as follows:


(Dollars in thousands)	September 30, 2011			December 31, 2010			September 30, 2010
Specialty finance segment:
Customer list intangibles:
Gross carrying amount	$	1,800		$	1,800		$	5,052
Accumulated amortization		(411	)		(253	)		(3,450	)

Net carrying amount	$	1,389		$	1,547		$	1,602

Community banking segment:
Core deposit intangibles:
Gross carrying amount	$	35,567		$	29,608		$	29,508
Accumulated amortization		(20,547	)		(18,580	)		(17,916	)

Net carrying amount	$	15,020		$	11,028		$	11,592

Wealth management segment:
Customer list and other intangibles:
Gross carrying amount	$	6,090		$	—		$	—
Accumulated amortization		(86	)		—			—

Net carrying amount	$	6,004		$	—		$	—

Total other intangible assets, net	$	22,413		$	12,575		$	13,194


Estimated amortization
Actual in nine months ended September 30, 2011	$	2,363
Estimated remaining in 2011		1,042
Estimated - 2012		4,073
Estimated - 2013		3,860
Estimated - 2014		3,384
Estimated - 2015		1,898

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 acquisition of Elgin State Bank and the FDIC-assisted acquisitions of First Chicago, CFBC and TBOC during 2011. Core deposit intangibles recognized in connection with the Company's bank acquisitions are being amortized over ten-year periods on an accelerated basis.

Intangibles within the Wealth management segment were recognized in connection with the Company's acquisition of Great Lakes Advisors during the third quarter of 2011. These intangibles consist of customer list and trademark intangibles, which are being amortized over a 20-year period, as well as the value of certain executive non-compete agreements, which are being amortized over a two-year period.

Total amortization expense associated with finite-lived intangibles totaled approximately $2.4 million and $2.0 million for the nine months ended September 30, 2011 and 2010, respectively.

- 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.

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