Capital One 2005 Annual Report Download - page 99

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The other intangible items relate to customer lists, brokerage relationships and insurance contracts. The following table
mmarizes the Company’ s purchase accounting intangible assets subject to amortization. su
December 31, 2005
Gross
Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
Amortization
Period
Core deposit intangibles $ 380,000 $ (9,421) $ 370,579 10.0 years
Trust intangibles 10,500 (145) 10,355 18.0 years
Lease intangibles 5,209 (148) 5,061 9.6 years
Other intangibles 8,351 (168) 8,183 11.5 years
Total $ 404,060 $ (9,882) 394,178
Intangibles are amortized on an accelerated basis over their respective estimated useful lives. Intangible assets are recorded in
Other assets on the balance sheet. Amortization expense related to purchase accounting intangibles totaled $9.9 million for
the year ended December 31, 2005. Amortization expense for intangibles is recorded to non-interest expense. The weighted
average amortization period for all purchase accounting intangibles is 10.2 years. Estimated future amortization is as follows:
006—$75.0 million, 2007—$67.4 million, 2008—$59.4, 2009—$50.8 million, 2010—$43.1 million. 2
Note 18
Regulatory Matters
The Company and the Bank are subject to capital adequacy guidelines adopted by the Federal Reserve Board (the “Federal
Reserve”) while the Savings Bank is subject to capital adequacy guidelines adopted by the Office of Thrift Supervision (the
“OTS”) and the National Bank is subject to capital adequacy guidelines adopted by the Office of the Comptroller of the
Currency (the “OCC”) (collectively, the “regulators”). The capital adequacy guidelines require the Company, the Bank, the
Savings Bank and the National Bank to maintain specific capital levels based upon quantitative measures of their assets,
liabilities and off-balance sheet items. In addition, the Bank, Savings Bank and National Bank must also adhere to the
gulatory framework for prompt corrective action. re
The most recent notifications received from the regulators categorized the Bank, the Savings Bank and the National Bank as
“well-capitalized.” As of December 31, 2005, the Company’ s, the Bank’ s, the Savings Bank’ s and the National Bank’ s
capital exceeded all minimum regulatory requirements to which they were subject, and there were no conditions or events
90