GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2011

GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL AND OTHER INTANGIBLE ASSETS

NOTE 4—GOODWILL AND OTHER INTANGIBLE ASSETS

        At December 31, 2011, we had goodwill of $39.1 million related entirely to the Los Padres acquisition, all of which is deductible for tax purposes.

        The following table presents the changes in the carrying amount of goodwill:

	Goodwill
	(In thousands)
Balance, December 31, 2008 and December 31, 2009	$	—
Addition from the Los Padres acquisition		47,301
Balance, December 31, 2010		47,301
Adjustments to Los Padres goodwill, including resolution of matter with FDIC regarding settlement accounting for wholly-owned subsidiary of Los Padres		(8,160	)
Balance, December 31, 2011	$	39,141

        Our intangible assets with definite lives are core deposit and customer relationship intangibles. These intangibles are amortized over their respective estimated useful lives to their estimated residual values and reviewed for impairment at least quarterly. The amortization expense represents the estimated decline in the value of the underlying deposits or loan customers acquired. As of December 31, 2011, all of our customer relationship intangible assets had been fully amortized. The weighted average amortization period remaining for our core deposit intangibles is 2.4 years. The estimated aggregate amortization expense related to these intangible assets for each of the next five years is $6.1 million, $4.5 million, $2.9 million, $2.7 million and $1.2 million.

        The following table presents the changes in the gross amounts of core deposit intangibles, or CDI, and customer relationship intangibles, or CRI, and the related accumulated amortization for the years indicated:

	Year Ended December 31,
	2011			2010			2009
	(In thousands)
Gross amount of CDI and CRI:
Balance, beginning of year	$	76,319		$	75,911		$	76,562
Adjustment to Security Pacific Bank CDI		—			—			109
Additions due to acquisitions		—			2,189			2,812
Fully amortized portion		(9,219	)		(1,781	)		(3,572	)
Balance, end of year		67,100			76,319			75,911
Accumulated Amortization:
Balance, beginning of year		(50,476	)		(42,615	)		(36,640	)
Amortization		(8,428	)		(9,642	)		(9,547	)
Fully amortized portion		9,219			1,781			3,572
Balance, end of year		(49,685	)		(50,476	)		(42,615	)
Net CDI and CRI, end of year	$	17,415		$	25,843		$	33,296