Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

The Company's annual goodwill impairment test was performed as of October 1, 2013. It was determined that no impairment existed as of that date. Goodwill is tested for impairment at the reporting unit level. All of our goodwill is allocated to First Midwest Bancorp, Inc., which is the Company's only applicable reporting unit for purposes of testing goodwill impairment. The carrying amount of goodwill was $264.1 million at December 31, 2013 and $265.5 million at December 31, 2012. Goodwill decreased $1.4 million from the prior year as a result of the sale of an equity method investment during the year ended December 31, 2013. For a discussion of the accounting policies for goodwill and other intangible assets, refer to Note 1, "Summary of Significant Accounting Policies."

The Company's other intangible assets are core deposit intangibles, which are being amortized over their estimated useful lives. The Company's annual impairment testing was performed as of November 30, 2013 by comparing the carrying value of other intangible assets with our anticipated discounted future cash flows, and it was determined that no impairment existed as of that date.

Other Intangible Assets

(Dollar amounts in thousands)



	Years Ended December 31,
	2013							2012									2011
	Gross		Accumulated Amortization		Net			Gross			Accumulated Amortization			Net			Gross			Accumulated Amortization			Net
Beginning balance	$	33,775	$	18,193	$	15,582		$	34,318		$	16,145		$	18,173		$	42,832		$	22,276		$	20,556
Additions	—		—		—			781			—			781			1,419			—			1,419
Amortization expense	—		3,278		(3,278		)	—			3,372			(3,372		)	—			3,802			(3,802		)
Fully amortized assets	—		—		—			(1,324		)	(1,324		)	—			(9,933		)	(9,933		)	—
Ending balance	$	33,775	$	21,471	$	12,304		$	33,775		$	18,193		$	15,582		$	34,318		$	16,145		$	18,173
Weighted-average remaining life (in years)					5.9									6.4									6.9
Estimated useful lives (in years)					3.3 to 12.8									3.3 to 12.8									3.3 to 12.6

Scheduled Amortization of Other Intangible Assets

(Dollar amounts in thousands)



	Total
Year ending December 31,
2014	$	2,689
2015	2,500
2016	2,424
2017	1,643
2018	719
2019 and thereafter	2,329
Total	$	12,304

- 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.

+ References+ Details