Goodwill And Other Intangible Assets

6 Months Ended

Jun. 30, 2012

Goodwill And Other Intangible Assets [Abstract]

NOTE 11 - GOODWILL AND OTHER INTANGIBLE ASSETS

The following table shows the changes in the carrying amount of goodwill by segment for the six months ended June 30, 2012 and 2011:


		Community
(dollars in thousands)		Banking		Other		Total
Balance, January 1, 2012	$	212,412	$	40,765	$	253,177
Goodwill acquired during the period		0		0		0
Balance, June 30, 2012	$	212,412	$	40,765	$	253,177

Balance, January 1, 2011	$	128,011	$	39,873	$	167,884
Goodwill acquired during the period		67,536		893		68,429
Balance, June 30, 2011	$	195,547	$	40,766	$	236,313

Goodwill is reviewed annually for impairment. Old National completed its most recent annual goodwill impairment test as of August 31, 2011 and determined that no impairment existed as of this date. Old National recorded $68.4 million of goodwill in the first quarter of 2011 associated with the acquisition of Monroe Bancorp, of which $67.5 million was allocated to the "Community Banking" segment and $0.9 million to the "Other" segment. Old National recorded $16.9 million of goodwill in the third quarter of 2011 associated with the acquisition of Integra Bank, all of which was allocated to the "Community Banking" segment.

The gross carrying amount and accumulated amortization of other intangible assets at June 30, 2012 and December 31, 2011 was as follows:


				Accumulated
		Gross Carrying		Amortization			Net Carrying
(dollars in thousands)		Amount		and Impairment			Amount
June 30, 2012
Amortized intangible assets:
Core deposit	$	39,265	$	(23,375	)	$	15,890
Customer business relationships		26,411		(17,221	)		9,190
Customer trust relationships		3,622		(737	)		2,885
Customer loan relationships		4,413		(2,173	)		2,240
Total intangible assets	$	73,711	$	(43,506	)	$	30,205
December 31, 2011
Amortized intangible assets:
Core deposit	$	39,265	$	(20,815	)	$	18,450
Customer business relationships		25,897		(16,312	)		9,585
Customer trust relationships		3,622		(474	)		3,148
Customer loan relationships		4,413		(1,972	)		2,441
Total intangible assets	$	73,197	$	(39,573	)	$	33,624

Other intangible assets consist of core deposit intangibles and customer relationship intangibles and are being amortized primarily on an accelerated basis over their estimated useful lives, generally over a period of 5 to 25 years. During the second quarter of 2012, Old National increased customer business relationships by $0.5 million related to the purchase of an insurance book of business, which is included in the "Other" segment. During the first quarter of 2011, Old National recorded $8.2 million of core deposit intangibles associated with the acquisition of Monroe Bancorp, which is included in the "Community Banking" segment. During the first quarter of 2011, Old National also recorded $2.3 million of customer relationship intangibles associated with the trust business of Monroe Bancorp, which is included in the "Other" segment. During the second quarter of 2011, Old National recorded $1.3 million of customer relationship intangibles associated with the trust business of Integra Wealth Management and Trust, which is included in the "Other" segment. During the second quarter of 2011, Old National reduced customer business relationships by $0.1 million related to the sale of an insurance book of business, which is included in the "Other" segment. During the third quarter of 2011, Old National recorded $4.3 million of core deposit intangibles associated with the acquisition of Integra Bank, which is included in the "Community Banking" segment. During the fourth quarter of 2011, Old National recorded $0.3 million of customer business relationships associated with the purchase of an insurance book of business and took accelerated amortization of $0.7 million on its core deposit intangible related to the sale of the former Chicago-area Integra branches. Total amortization expense associated with other intangible assets for the six months ended June 30 was $3.9 million in 2012 and $3.8 million in 2011.

Estimated amortization expense for future years is as follows:


(dollars in thousands)
2012 remaining	$	4,423
2013		6,536
2014		5,302
2015		4,258
2016		3,405
Thereafter		6,281
Total	$	30,205

- 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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