Agenda - Council - 11/13/2012 - Laserfiche WebLink

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The details of our finite -lived intangible assets are presented below: Gross Carrying Accumulated Net Book (dollars in thousands) Amount Amortization Value Balance as of December 31, 2011: Core Deposits $398,878 $326,681 $ 72,197 Software1'> 198,432 130,774 67,658 Other Intangible Assets('`' 52,822 22,230 30,592 Total $650,132 $479,685 $170,447 Balance as of December 31, 2010: Core Deposits $398,878 $293,706 $105,172 Software 195,705 122,308 73,397 Other Intangible Assets(2) 42,942 15,811 27,131 of (2) Total $637,525 $431,825 $205,700 Includes in process software not subject to amortization of $14.4 million and $16.1 million at December 31, 2011 and 2010, respectively. Includes mortgage servicing rights. Refer to Note 3 for additional information. Intangible amortization expense included in noninterest expense was $51.5 million and $55.7 million for 2011 and 2010, respectively. For the years ended December 31, 2011 and 2010, the Bank's review did not result in any material impainnent. The table below presents the estimated future annual amortization expense for finite -lived intangible assets for the years ending December 31: (dollars in thousands) 2012 2013 2014 2015 2016 9. Variable Interest Entities $33,566 27,689 24,829 21,331 17,053 A VIE is an entity that has either a total equity investment that is insufficient to finance its activities without additional subordinated financial support or whose equity investors lack the ability to control the entity's activities. Under existing accounting guidance, a VIE is consolidated by its primary beneficiary, the party that has both the power to direct the activities that most significantly impact the VIE and a variable interest that could potentially be significant to the VIE. The Bank evaluates whether an entity is a VIE upon its creation and upon the occurrence of significant events such as a change in an entity's assets or activities. The determination of whether the Bank is the primary beneficiary involves performing a qualitative analysis of the VIE that includes its capital structure, contractual terms including the rights of each variable interest holder, the activities of the VIE that most significantly impact its economic perfonnance, whether the Bank has the power to direct those activities and our obligation to absorb losses or the right to receive benefits significant to the VIE. Limited liability companies The Bank has investments in numerous limited liability companies ("LLCs") for the purpose of managing foreclosed properties seized to mitigate losses to the Bank and its partners by selling the collateral. These LLCs have similar risks and characteristics and therefore have been aggregated for disclosure purposes. For some of these entities, the Bank is responsible for managing the daily operations. The Bank is the primary beneficiary when it has the power to direct the activities that significantly impact the performance of the LLCs and the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIEs. Profits and losses of the entities are allocated to the Bank and its -32- 2011 Bank of the West Annual Report