(7) Intangible Assets (8) Mortgage Banking Activities The following table presents the original cost and accumulated amortization of intangible assets (in thousands): The net amortized cost of intangible assets at December 31, 2001 is assigned to reporting units as follows (in thousands): Expected amortization expense for intangible assets that will continue to be amortized under FAS 142 (in thousands): BOK Financial engages in mortgage banking activities through the BOk Mortgage Division of BOk. Residential mortgage loans held for sale totaled $166 million and $49 million and outstanding mortgage loan commitments totaled $261 million and $123 million at December 31, 2001 and 2000. Mortgage loan commitments are generally outstanding for 60 to 90 days and are subject to both credit and interest rate risk. Credit risk is managed through underwriting policies and procedures, including collateral requirements, which are generally accepted by the secondary loan markets. Exposure:to interest rate fluctuations is partially hedged through the use of mortgage-backed securities forward sales contracts. These contracts sét the price for loans that will be delivered in the next 60:to 90 days. At December. 31, 2001, the notional amount of forward sales contracts totaled $208 million, with a fair value of $2.6 million. Mortgage loans held for sale are carried at the lower of aggregate cost or market value, including estimated losses on unfunded commitments and gains or losses on forward sales contracts. At December 31, 2001, BOk owned the rights to service 88,916 mortgage loans with outstanding principal balances of $6.6 billion, including $209 million serviced for BOk, and held related funds of $177 million for investors and borrowers. The weighted average interest rate and remaining term was 7.30% and 266 months, respectively. Mortgage loans sold with recourse totaled $2.4 million at December 31, 2001. At December 31, 2000, BOk owned the rights to service mortgage loans with outstanding principal balances of $6.9 billion and held related funds of $79 million for investors and borrowers. The portfolio of mortgage servicing rights exposes BOk to interest rate risk. During periods of falling interest rates, mortgage loan prepayments increase, reducing the value of the mortgage servicing rights. During 1998 through the first quarter of 2000, BOk used a combination of futures contracts.and options related to 10-year U.S. Treasury securities to hedge this risk. See Note 1 for specific accounting policies for mortgage servicing rights and the related hedges: December 31, 2001 2000 Core deposit premiums $ 71,950... $ 58,235 Less accumulated amortization 49,418 40,572 Net core deposit premiums 22,532 17,663 Other identifiable intangible assets 38,263 38,263 Less accumulated amortization 19,626 16,624 Net other-identifiable intangible assets 18,637 21,639 Goodwill 142,746 93,317 Less accumulated depreciation 31,839 23,574 Net. goodwill 110,907 69,743 Total intangible assets, net $152,076 $109,045 Core deposit premiums: Bank of Albuquerque 5: 4,945 Bank of Texas 17.587 $.22,532 Other identifiable intangible assets: Bank of Albuquerque $15,273 Bank of Oklahoma 3,364 $ 18,637 Goodwill: Bank of Oklahoma $ 5,550 Bank of Texas 104,863 BOSC. Inc. 494 $110,907 Core Other Deposit Unidentified Premiums Intangible Assets Total 2002 $ 7,020 $ 3,190 $10,210 2003 5.949 1,768 7,717 2004 4,039 1,484 5,523 2005 2,888 1,484 4,372 2006 1,521 1,484 3,005 Thereafter 1,115 9,227 10.342 $22,532 $18.637 $41,169