In June 2013, the Bank redeemed $50,000 of subordinated debentures with a fixed interest rate of 5.95%. The 2013 inclusion of non-qualifying capital instruments in total capital under Basel III is capped at $607,500, based on 90% of the January 1, 2013 balance of $675,000. As a result, the June redemption of subordinated debentures had no impact on non-qualifying capital included in total capital as the balance of subordinated debentures after the redemption was still in excess of the $607,500 cap.
During the three and nine months ended July 31, 2013, the Bank complied with all internal and external capital requirements.
15. Business Acquisition
Effective May 17, 2013, the Bank acquired 54.6% of the outstanding common shares of McLean & Partners Wealth Management Ltd. (McLean & Partners), a Calgary, Alberta based wealth management firm, in exchange for $10,098 cash and contingent consideration for a total acquisition cost of $11,777. Additional contingent consideration, to a maximum of $1,639, will be paid in cash if earnings targets are achieved over a two year period. The results of operations for McLean & Partners have been included in the Bank's consolidated financial statements since the effective acquisition date.
The following table summarizes the fair value of the assets acquired and liabilities assumed:
Fair value of consideration transferred $ 11,777Identifiable assets acquired and liabilities assumed Intangible assets 9,840 Other items, net 696 Deferred income tax liability (2,330) Non-controlling interest (316)---------------------------------------------------------------------------- Goodwill $ 3,887----------------------------------------------------------------------------
Intangible assets include customer relationships, non-competition agreements and a trade name. The trade name, which has an estimated value of $518, is not subject to amortization. The total amount of goodwill and intangible assets is not deductible for income tax purposes.
16. Comparative Figures
Certain comparative figures have been reclassified to conform to the current period's presentation.
Head OfficeCanadian Western Bank GroupSuite 3000, Canadian Western Bank Place10303 Jasper AvenueEdmonton, AB T5J 3X6Telephone: (780) 423-8888Fax: (780) 423-8897www.cwb.comSubsidiary OfficesNational Leasing Group Inc.1525 Buffalo PlaceWinnipeg, MB R3T 1L9Toll-free: 1-800-665-1326Toll-free fax: 1-866-408-0729nationalleasing.comCanadian Western Trust CompanySuite 600, 750 Cambie StreetVancouver, BC V6B 0A2Toll-free: 1-800-663-1124Fax: (604) 669-6069cwt.caValiant Trust CompanySuite 310, 606 - 4th Street S.W.Calgary, AB T2P 1T1Toll-free: 1-866-313-1872Fax: (403) 233-2857valianttrust.comCanadian Direct Insurance IncorporatedSuite 600, 750 Cambie StreetVancouver, BC V6B 0A2Telephone: (604) 699-3678Fax: (604) 699-3851canadiandirect.comAdroit Investment Management Ltd.Suite 1250, Canadian Western Bank Place10303 Jasper AvenueEdmonton, AB T5J 3N6Telephone: (780) 429-3500Fax: (780) 429-9680adroitinvestments.caMcLean & Partners Wealth Management Ltd.801 10th Avenue SWCalgary, AB T2R 0B4Telephone: (403) 234-0005Fax: (403) 234-0606mcleanpartners.comStock Exchange ListingsThe Toronto Stock ExchangeCommon Shares: CWBSeries 3 Preferred Shares: CWB.PR.ATransfer Agent and RegistrarValiant Trust CompanySuite 310, 606 - 4th Street S.W.Calgary, AB T2P 1T1Telephone: (403) 233-2801Fax: (403) 233-2857Website: www.valianttrust.comEmail: firstname.lastname@example.org
Eligible Dividends Designation
CWB designates all dividends for both common and preferred shares paid to Canadian residents as "eligible dividends", as defined in the Income Tax Act (Canada), unless otherwise noted.
Dividend Reinvestment Plan
CWB's dividend reinvestment plan allows common and preferred shareholders to purchase additional common shares by reinvesting their cash dividend without incurring brokerage and commission fees. For information about participation in the plan, please contact the Transfer Agent and Registrar or visit www.cwb.com.
Investor & Public RelationsCanadian Western BankTelephone: (780) 441-3770Toll-free: 1-800-836-1886Fax: (780) 969-8326Email: InvestorRelations@cwbank.com
Online Investor Information
Additional investor information including supplemental financial information and corporate presentations are available on CWB's website at www.cwb.com.
Quarterly Conference Call and Webcast
CWB's quarterly conference call and live audio webcast will take place on August 29, 2013 at 2:00 p.m. ET (12:00 p.m. MT). The webcast will be archived on the Bank's website at www.cwb.com for sixty days. A replay of the conference call will be available until September 12, 2013 by dialing 905-694-9451 (Toronto) or 1-800-408-3053 (toll-free) and entering passcode 6674131.
Canadian Western Bank
President and Chief Executive Officer
Canadian Western Bank
Kirby Hill, CFA
Vice President, Strategy and Communications