[X] | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2012. | |
[ ] | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ______ to ______ | |
Commission file number 001-15373 |
Large accelerated filer o | Accelerated filer R | Non-accelerated filer o | Smaller reporting company o |
(Do not check if a smaller reporting company) |
Page | ||
PART I - FINANCIAL INFORMATION | ||
Item 1. Financial Statements | ||
Condensed Consolidated Balance Sheets (Unaudited) | ||
Condensed Consolidated Statements of Operations (Unaudited) | ||
Condensed Consolidated Statements of Comprehensive Income (Unaudited) | ||
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) | ||
Condensed Consolidated Statements of Cash Flows (Unaudited) | ||
Notes to Condensed Consolidated Financial Statements (Unaudited) | ||
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | ||
Item 3. Quantitative and Qualitative Disclosures About Market Risk | ||
Item 4. Controls and Procedures | ||
PART II - OTHER INFORMATION | ||
Item 1. Legal Proceedings | ||
Item 1A. Risk Factors | ||
Item 6. Exhibits | ||
Signatures | ||
(In thousands, except share and per share data) | September 30, 2012 | December 31, 2011 | |||||
Assets | |||||||
Cash and due from banks | $ | 28,964 | $ | 20,791 | |||
Federal funds sold | 30 | 143 | |||||
Interest-bearing deposits (including $3,800 and $2,650 pledged as collateral) | 56,681 | 167,209 | |||||
Total cash and cash equivalents | 85,675 | 188,143 | |||||
Interest-bearing deposits greater than 90 days | 1,000 | 1,502 | |||||
Securities available for sale | 610,357 | 593,182 | |||||
Mortgage loans held for sale | 8,245 | 6,494 | |||||
Portfolio loans not covered under FDIC loss share | 1,987,166 | 1,897,074 | |||||
Less: Allowance for loan losses | 34,222 | 37,989 | |||||
Portfolio loans not covered under FDIC loss share, net | 1,952,944 | 1,859,085 | |||||
Portfolio loans covered under FDIC loss share, net of the allowance for loan losses ($11,102 and $1,635, respectively) | 210,331 | 298,975 | |||||
Portfolio loans, net | 2,163,275 | 2,158,060 | |||||
Other real estate not covered under FDIC loss share | 12,549 | 17,217 | |||||
Other real estate covered under FDIC loss share | 18,810 | 36,471 | |||||
Other investments, at cost | 16,362 | 14,527 | |||||
Fixed assets, net | 21,469 | 18,986 | |||||
Accrued interest receivable | 10,481 | 9,193 | |||||
State tax credits, held for sale, including $25,069 and $26,350 carried at fair value, respectively | 65,873 | 50,446 | |||||
FDIC loss share receivable | 75,851 | 184,554 | |||||
Goodwill | 30,334 | 30,334 | |||||
Intangibles, net | 7,846 | 9,285 | |||||
Other assets | 65,565 | 59,385 | |||||
Total assets | $ | 3,193,692 | $ | 3,377,779 | |||
Liabilities and Shareholders' Equity | |||||||
Demand deposits | $ | 621,070 | $ | 585,479 | |||
Interest-bearing transaction accounts | 259,902 | 253,504 | |||||
Money market accounts | 975,216 | 1,084,304 | |||||
Savings | 81,552 | 51,145 | |||||
Certificates of deposit: | |||||||
$100 and over | 420,672 | 550,535 | |||||
Other | 192,521 | 266,386 | |||||
Total deposits | 2,550,933 | 2,791,353 | |||||
Subordinated debentures | 85,081 | 85,081 | |||||
Federal Home Loan Bank advances | 126,000 | 102,000 | |||||
Other borrowings | 147,104 | 154,545 | |||||
Accrued interest payable | 1,377 | 1,762 | |||||
Other liabilities | 15,681 | 3,473 | |||||
Total liabilities | 2,926,176 | 3,138,214 | |||||
Shareholders' equity: | |||||||
Preferred stock, $0.01 par value; 5,000,000 shares authorized; 35,000 shares issued and outstanding | 33,914 | 33,293 | |||||
Common stock, $0.01 par value; 30,000,000 shares authorized; 18,039,710 and 17,849,862 shares issued, respectively | 180 | 178 | |||||
Treasury stock, at cost; 76,000 shares | (1,743 | ) | (1,743 | ) | |||
Additional paid in capital | 172,545 | 169,138 | |||||
Retained earnings | 53,232 | 35,097 | |||||
Accumulated other comprehensive income | 9,388 | 3,602 | |||||
Total shareholders' equity | 267,516 | 239,565 | |||||
Total liabilities and shareholders' equity | $ | 3,193,692 | $ | 3,377,779 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
(In thousands, except per share data) | 2012 | 2011 | 2012 | 2011 | |||||||||||
Interest income: | |||||||||||||||
Interest and fees on loans | $ | 39,886 | $ | 30,983 | $ | 111,519 | $ | 93,565 | |||||||
Interest on debt securities: | |||||||||||||||
Taxable | 2,628 | 2,853 | 7,440 | 8,666 | |||||||||||
Nontaxable | 264 | 184 | 734 | 449 | |||||||||||
Interest on federal funds sold | — | — | — | 1 | |||||||||||
Interest on interest-bearing deposits | 53 | 166 | 195 | 427 | |||||||||||
Dividends on equity securities | 43 | 99 | 230 | 269 | |||||||||||
Total interest income | 42,874 | 34,285 | 120,118 | 103,377 | |||||||||||
Interest expense: | |||||||||||||||
Interest-bearing transaction accounts | 182 | 211 | 566 | 606 | |||||||||||
Money market accounts | 1,024 | 2,004 | 3,694 | 6,210 | |||||||||||
Savings | 68 | 35 | 209 | 53 | |||||||||||
Certificates of deposit: | |||||||||||||||
$100 and over | 1,691 | 2,297 | 5,500 | 6,959 | |||||||||||
Other | 597 | 855 | 2,103 | 2,708 | |||||||||||
Subordinated debentures | 982 | 1,128 | 3,111 | 3,375 | |||||||||||
Federal Home Loan Bank advances | 721 | 881 | 2,327 | 2,669 | |||||||||||
Notes payable and other borrowings | 125 | 105 | 362 | 316 | |||||||||||
Total interest expense | 5,390 | 7,516 | 17,872 | 22,896 | |||||||||||
Net interest income | 37,484 | 26,769 | 102,246 | 80,481 | |||||||||||
Provision for loan losses not covered under FDIC loss share | 1,048 | 5,400 | 2,841 | 13,300 | |||||||||||
Provision for loan losses covered under FDIC loss share | 10,889 | 2,672 | 13,380 | 2,947 | |||||||||||
Net interest income after provision for loan losses | 25,547 | 18,697 | 86,025 | 64,234 | |||||||||||
Noninterest income: | |||||||||||||||
Wealth Management revenue | 1,825 | 1,832 | 5,525 | 5,173 | |||||||||||
Service charges on deposit accounts | 1,456 | 1,332 | 4,199 | 3,663 | |||||||||||
Other service charges and fee income | 676 | 464 | 1,848 | 1,105 | |||||||||||
Gain on sale of other real estate | 739 | 517 | 3,152 | 1,039 | |||||||||||
Gain on state tax credits, net | 256 | 1,368 | 1,180 | 2,510 | |||||||||||
Gain on sale of investment securities | — | 768 | 1,156 | 1,448 | |||||||||||
Change in FDIC loss share receivable | 1,912 | 1,513 | (6,738 | ) | 1,148 | ||||||||||
Miscellaneous income | 968 | 932 | 2,338 | 1,821 | |||||||||||
Total noninterest income | 7,832 | 8,726 | 12,660 | 17,907 | |||||||||||
Noninterest expense: | |||||||||||||||
Employee compensation and benefits | 11,441 | 9,329 | 32,956 | 26,282 | |||||||||||
Occupancy | 1,399 | 1,306 | 4,162 | 3,586 | |||||||||||
Furniture and equipment | 384 | 431 | 1,234 | 1,216 | |||||||||||
Data processing | 881 | 642 | 2,530 | 1,872 | |||||||||||
FDIC and other insurance | 862 | 828 | 2,658 | 3,183 | |||||||||||
Loan legal and other real estate expense | 1,187 | 1,576 | 5,216 | 7,267 | |||||||||||
Other | 5,128 | 4,190 | 15,304 | 10,885 | |||||||||||
Total noninterest expense | 21,282 | 18,302 | 64,060 | 54,291 | |||||||||||
Income before income tax expense | 12,097 | 9,121 | 34,625 | 27,850 | |||||||||||
Income tax expense | 4,167 | 3,289 | 11,744 | 9,633 | |||||||||||
Net income | $ | 7,930 | $ | 5,832 | $ | 22,881 | $ | 18,217 | |||||||
Net income available to common shareholders | $ | 7,282 | $ | 5,200 | $ | 20,948 | $ | 16,329 | |||||||
Earnings per common share | |||||||||||||||
Basic | $ | 0.41 | $ | 0.29 | $ | 1.17 | $ | 1.00 | |||||||
Diluted | 0.39 | 0.29 | 1.14 | 0.98 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
(in thousands) | 2012 | 2011 | 2012 | 2011 | |||||||||||
Net income | $ | 7,930 | $ | 5,832 | $ | 22,881 | $ | 18,217 | |||||||
Other comprehensive income, net of tax: | |||||||||||||||
Unrealized gain (loss) on investment securities arising during the period, net of tax | 3,248 | (261 | ) | 6,526 | 6,302 | ||||||||||
Less reclassification adjustment for realized gain on sale of securities included in net income, net of tax | — | (491 | ) | (740 | ) | (926 | ) | ||||||||
Reclassification of cash flow hedge, net of tax | — | (28 | ) | — | (85 | ) | |||||||||
Total other comprehensive income (loss) | 3,248 | (780 | ) | 5,786 | 5,291 | ||||||||||
Total comprehensive income | $ | 11,178 | $ | 5,052 | $ | 28,667 | $ | 23,508 |
(in thousands, except per share data) | Preferred Stock | Common Stock | Treasury Stock | Additional paid in capital | Retained earnings | Accumulated other comprehensive income (loss) | Total shareholders' equity | |||||||||||||||||||||
Balance January 1, 2012 | $ | 33,293 | $ | 178 | $ | (1,743 | ) | $ | 169,138 | $ | 35,097 | $ | 3,602 | $ | 239,565 | |||||||||||||
Net income | — | — | — | — | 22,881 | — | 22,881 | |||||||||||||||||||||
Change in fair value of available for sale securities, net of tax | — | — | — | — | — | 6,526 | 6,526 | |||||||||||||||||||||
Reclassification adjustment for realized gain on sale of securities included in net income, net of tax | — | — | — | — | — | (740 | ) | (740 | ) | |||||||||||||||||||
Total comprehensive income | 28,667 | |||||||||||||||||||||||||||
Cash dividends paid on common shares, $0.1575 per share | — | — | — | — | (2,813 | ) | — | (2,813 | ) | |||||||||||||||||||
Cash dividends paid on preferred stock | — | — | — | — | (1,312 | ) | — | (1,312 | ) | |||||||||||||||||||
Preferred stock accretion of discount | 621 | — | — | — | (621 | ) | — | — | ||||||||||||||||||||
Issuance under equity compensation plans, net, 189,848 shares | — | 2 | — | 1,530 | — | — | 1,532 | |||||||||||||||||||||
Share-based compensation | — | — | — | 1,791 | — | — | 1,791 | |||||||||||||||||||||
Excess tax benefit related to equity compensation plans | — | — | — | 86 | — | — | 86 | |||||||||||||||||||||
Balance September 30, 2012 | $ | 33,914 | $ | 180 | $ | (1,743 | ) | $ | 172,545 | $ | 53,232 | $ | 9,388 | $ | 267,516 |
(in thousands, except per share data) | Preferred Stock | Common Stock | Treasury Stock | Additional paid in capital | Retained earnings | Accumulated other comprehensive income (loss) | Total shareholders' equity | |||||||||||||||||||||
Balance January 1, 2011 | $ | 32,519 | $ | 150 | $ | (1,743 | ) | $ | 133,673 | $ | 15,775 | $ | (573 | ) | $ | 179,801 | ||||||||||||
Net income | — | — | — | — | 18,217 | — | 18,217 | |||||||||||||||||||||
Change in fair value of available for sale securities, net of tax | — | — | — | — | — | 6,302 | 6,302 | |||||||||||||||||||||
Reclassification adjustment for realized gain on sale of securities included in net income, net of tax | — | — | — | — | — | (926 | ) | (926 | ) | |||||||||||||||||||
Reclassification of cash flow hedge, net of tax | — | — | — | — | — | (85 | ) | (85 | ) | |||||||||||||||||||
Total comprehensive income | 23,508 | |||||||||||||||||||||||||||
Cash dividends paid on common shares, $0.1575 per share | — | — | — | — | (2,644 | ) | — | (2,644 | ) | |||||||||||||||||||
Cash dividends paid on preferred stock | — | — | — | — | (1,313 | ) | — | (1,313 | ) | |||||||||||||||||||
Preferred stock accretion of discount | 575 | — | — | — | (575 | ) | — | — | ||||||||||||||||||||
Issuance under equity compensation plans, net, 109,812 shares | — | 1 | — | 1,368 | — | — | 1,369 | |||||||||||||||||||||
Issuance under public stock offering 2,743,900 shares | — | 27 | — | 32,581 | — | — | 32,608 | |||||||||||||||||||||
Share-based compensation | — | — | — | 1,120 | — | — | 1,120 | |||||||||||||||||||||
Excess tax benefit related to equity compensation plans | — | — | — | 22 | — | — | 22 | |||||||||||||||||||||
Balance September 30, 2011 | $ | 33,094 | $ | 178 | $ | (1,743 | ) | $ | 168,764 | $ | 29,460 | $ | 4,718 | $ | 234,471 |
Nine months ended September 30, | |||||||
(in thousands) | 2012 | 2011 | |||||
Cash flows from operating activities: | |||||||
Net income | $ | 22,881 | $ | 18,217 | |||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||
Depreciation | 1,944 | 2,057 | |||||
Provision for loan losses | 16,221 | 16,247 | |||||
Deferred income taxes | (1,982 | ) | 5,091 | ||||
Net amortization of debt securities | 5,839 | 3,983 | |||||
Amortization of intangible assets | 1,440 | 490 | |||||
Gain on sale of investment securities | (1,156 | ) | (1,448 | ) | |||
Mortgage loans originated for sale | (71,085 | ) | (48,772 | ) | |||
Proceeds from mortgage loans sold | 68,987 | 49,147 | |||||
Gain on sale of other real estate | (3,152 | ) | (1,039 | ) | |||
Gain on state tax credits, net | (1,180 | ) | (2,510 | ) | |||
Excess tax benefit of share-based compensation | (86 | ) | (22 | ) | |||
Share-based compensation | 1,791 | 1,120 | |||||
Valuation adjustment on other real estate | 2,201 | 3,261 | |||||
Net accretion of loan discount and indemnification asset | (18,754 | ) | (10,964 | ) | |||
Changes in: | |||||||
Accrued interest receivable | (1,288 | ) | 165 | ||||
Accrued interest payable | (385 | ) | (501 | ) | |||
Prepaid FDIC insurance | 1,837 | 2,336 | |||||
Other assets | 1,298 | (6,294 | ) | ||||
Other liabilities | 12,567 | (5,558 | ) | ||||
Net cash provided by operating activities | 37,938 | 25,006 | |||||
Cash flows from investing activities: | |||||||
Cash received from acquisition of Legacy Bank | — | 8,926 | |||||
Cash received from acquisition of The First National Bank of Olathe | — | 112,778 | |||||
Net increase in loans | (10,478 | ) | (84,022 | ) | |||
Net cash proceeds received from FDIC loss share receivable | 85,173 | 35,932 | |||||
Proceeds from the sale of debt and equity securities, available for sale | 110,876 | 84,456 | |||||
Proceeds from the maturity of debt and equity securities, available for sale | 91,498 | 122,934 | |||||
Proceeds from the redemption of other investments | 6,296 | 5,774 | |||||
Proceeds from the sale of state tax credits held for sale | 4,408 | 8,045 | |||||
Proceeds from the sale of other real estate | 44,273 | 27,429 | |||||
Payments for the purchase/origination of: | |||||||
Available for sale debt and equity securities | (214,935 | ) | (255,210 | ) | |||
Other investments | (8,138 | ) | (1,361 | ) | |||
State tax credits held for sale | (18,577 | ) | — | ||||
Fixed assets | (4,433 | ) | (416 | ) | |||
Net cash provided by investing activities | 85,963 | 65,265 | |||||
Cash flows from financing activities: | |||||||
Net increase in noninterest-bearing deposit accounts | 35,591 | 101,351 | |||||
Net decrease in interest-bearing deposit accounts | (276,011 | ) | (204,372 | ) | |||
Proceeds from Federal Home Loan Bank advances | 157,500 | — | |||||
Repayments of Federal Home Loan Bank advances | (133,500 | ) | (23,254 | ) | |||
Net decrease in other borrowings | (7,440 | ) | (20,332 | ) | |||
Cash dividends paid on common stock | (2,813 | ) | (2,645 | ) | |||
Excess tax benefit of share-based compensation | 86 | 22 | |||||
Cash dividends paid on preferred stock | (1,312 | ) | (1,313 | ) | |||
Issuance of common stock | — | 32,608 | |||||
Proceeds from the issuance of equity instruments | 1,530 | 1,369 | |||||
Net cash used in financing activities | (226,369 | ) | (116,566 | ) | |||
Net decrease in cash and cash equivalents | (102,468 | ) | (26,295 | ) | |||
Cash and cash equivalents, beginning of period | 188,143 | 293,668 | |||||
Cash and cash equivalents, end of period | $ | 85,675 | $ | 267,373 | |||
Supplemental disclosures of cash flow information: | |||||||
Cash paid during the period for: | |||||||
Interest | $ | 17,487 | $ | 23,442 | |||
Income taxes | 10,953 | 16,871 | |||||
Noncash transactions: | |||||||
Transfer to other real estate owned in settlement of loans | $ | 19,799 | $ | 20,287 | |||
Sales of other real estate financed | 5,264 | 2,135 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
(in thousands, except per share data) | 2012 | 2011 | 2012 | 2011 | |||||||||||
Net income as reported | $ | 7,930 | $ | 5,832 | $ | 22,881 | $ | 18,217 | |||||||
Preferred stock dividend | (436 | ) | (437 | ) | (1,312 | ) | (1,313 | ) | |||||||
Accretion of preferred stock discount | (212 | ) | (195 | ) | (621 | ) | (575 | ) | |||||||
Net income available to common shareholders | $ | 7,282 | $ | 5,200 | $ | 20,948 | $ | 16,329 | |||||||
Impact of assumed conversions | |||||||||||||||
Interest on 9% convertible trust preferred securities, net of income tax | 371 | 371 | 1,113 | 1,113 | |||||||||||
Net income available to common shareholders and assumed conversions | $ | 7,653 | $ | 5,571 | $ | 22,061 | $ | 17,442 | |||||||
Weighted average common shares outstanding | 17,876 | 17,741 | 17,829 | 16,322 | |||||||||||
Incremental shares from assumed conversions of convertible trust preferred securities | 1,439 | 1,439 | 1,439 | 1,439 | |||||||||||
Additional dilutive common stock equivalents | 100 | 22 | 34 | 20 | |||||||||||
Weighted average diluted common shares outstanding | 19,415 | 19,202 | 19,302 | 17,781 | |||||||||||
Basic earnings per common share: | $ | 0.41 | $ | 0.29 | $ | 1.17 | $ | 1.00 | |||||||
Diluted earnings per common share: | $ | 0.39 | $ | 0.29 | $ | 1.14 | $ | 0.98 |
September 30, 2012 | |||||||||||||||
(in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||
Available for sale securities: | |||||||||||||||
Obligations of U.S. Government sponsored enterprises | $ | 124,721 | $ | 3,284 | $ | — | $ | 128,005 | |||||||
Obligations of states and political subdivisions | 43,720 | 2,429 | (360 | ) | 45,789 | ||||||||||
Residential mortgage-backed securities | 426,992 | 9,773 | (202 | ) | 436,563 | ||||||||||
$ | 595,433 | $ | 15,486 | $ | (562 | ) | $ | 610,357 | |||||||
December 31, 2011 | |||||||||||||||
(in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||
Available for sale securities: | |||||||||||||||
Obligations of U.S. Government sponsored enterprises | $ | 126,305 | $ | 678 | $ | (66 | ) | $ | 126,917 | ||||||
Obligations of states and political subdivisions | 38,489 | 1,729 | (381 | ) | 39,837 | ||||||||||
Residential mortgage-backed securities | 422,761 | 5,269 | (1,602 | ) | 426,428 | ||||||||||
$ | 587,555 | $ | 7,676 | $ | (2,049 | ) | $ | 593,182 |
(in thousands) | Amortized Cost | Estimated Fair Value | |||||
Due in one year or less | $ | 2,299 | $ | 2,325 | |||
Due after one year through five years | 118,719 | 122,152 | |||||
Due after five years through ten years | 42,958 | 45,014 | |||||
Due after ten years | 4,465 | 4,303 | |||||
Mortgage-backed securities | 426,992 | 436,563 | |||||
$ | 595,433 | $ | 610,357 |
September 30, 2012 | |||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||
(in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||
Obligations of the state and political subdivisions | $ | 540 | $ | 2 | $ | 3,388 | $ | 358 | $ | 3,928 | $ | 360 | |||||||||||
Residential mortgage-backed securities | 16,764 | 71 | 9,161 | 131 | 25,925 | 202 | |||||||||||||||||
$ | 17,304 | $ | 73 | $ | 12,549 | $ | 489 | $ | 29,853 | $ | 562 | ||||||||||||
December 31, 2011 | |||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||
(in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||
Obligations of U.S. government sponsored enterprises | $ | 23,389 | $ | 66 | $ | — | $ | — | $ | 23,389 | $ | 66 | |||||||||||
Obligations of the state and political subdivisions | 1,503 | 8 | 3,027 | 373 | 4,530 | 381 | |||||||||||||||||
Residential mortgage-backed securities | 86,954 | 1,598 | 4,203 | 4 | 91,157 | 1,602 | |||||||||||||||||
$ | 111,846 | $ | 1,672 | $ | 7,230 | $ | 377 | $ | 119,076 | $ | 2,049 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
(in thousands) | 2012 | 2011 | 2012 | 2011 | |||||||||||
Gross gains realized | $ | — | $ | 768 | $ | 1,399 | $ | 1,448 | |||||||
Gross losses realized | — | — | (243 | ) | — | ||||||||||
Proceeds from sales | — | 49,033 | 110,876 | 84,456 |
(in thousands) | September 30, 2012 | December 31, 2011 | |||||
Real Estate Loans: | |||||||
Construction and Land Development | $ | 146,236 | $ | 140,147 | |||
Commercial real estate - Investor Owned | 476,501 | 477,154 | |||||
Commercial real estate - Owner Occupied | 325,379 | 334,416 | |||||
Residential real estate | 146,940 | 171,034 | |||||
Total real estate loans | $ | 1,095,056 | $ | 1,122,751 | |||
Commercial and industrial | 880,394 | 763,202 | |||||
Consumer & other | 11,694 | 11,459 | |||||
Portfolio Loans | $ | 1,987,144 | $ | 1,897,412 | |||
Unearned loan costs, net | 22 | (338 | ) | ||||
Portfolio loans, including unearned loan costs | $ | 1,987,166 | $ | 1,897,074 |
(in thousands) | Commercial & Industrial | Commercial Real Estate Owner Occupied | Commercial Real Estate Investor Owned | Construction and Land Development | Residential Real Estate | Consumer & Other | Qualitative Adjustment | Total | |||||||||||||||||||||||
Allowance for Loan Losses: | |||||||||||||||||||||||||||||||
Balance at December 31, 2011 | $ | 11,945 | $ | 6,297 | $ | 6,751 | $ | 5,847 | $ | 3,931 | $ | 14 | $ | 3,204 | $ | 37,989 | |||||||||||||||
Provision charged to expense | 929 | 1,231 | 216 | 269 | (555 | ) | — | (372 | ) | 1,718 | |||||||||||||||||||||
Losses charged off | (585 | ) | (746 | ) | (185 | ) | (856 | ) | (362 | ) | — | — | (2,734 | ) | |||||||||||||||||
Recoveries | 96 | 2 | 15 | 152 | 356 | 2 | — | 623 | |||||||||||||||||||||||
Balance at March 31, 2012 | $ | 12,385 | $ | 6,784 | $ | 6,797 | $ | 5,412 | $ | 3,370 | $ | 16 | $ | 2,832 | $ | 37,596 | |||||||||||||||
Provision charged to expense | (3,201 | ) | (744 | ) | 3,518 | 442 | (189 | ) | 3 | 246 | 75 | ||||||||||||||||||||
Losses charged off | (406 | ) | (739 | ) | (108 | ) | (502 | ) | (216 | ) | — | — | (1,971 | ) | |||||||||||||||||
Recoveries | 203 | 5 | 15 | 97 | 284 | — | — | 604 | |||||||||||||||||||||||
Balance at June 30, 2012 | $ | 8,981 | $ | 5,306 | $ | 10,222 | $ | 5,449 | $ | 3,249 | $ | 19 | $ | 3,078 | $ | 36,304 | |||||||||||||||
Provision charged to expense | (204 | ) | (738 | ) | 604 | 2,551 | (1,202 | ) | 4 | 33 | 1,048 | ||||||||||||||||||||
Losses charged off | (1,479 | ) | (625 | ) | (639 | ) | (949 | ) | (282 | ) | — | — | (3,974 | ) | |||||||||||||||||
Recoveries | 142 | 1 | 14 | 15 | 672 | — | — | 844 | |||||||||||||||||||||||
Balance at September 30, 2012 | $ | 7,440 | $ | 3,944 | $ | 10,201 | $ | 7,066 | $ | 2,437 | $ | 23 | $ | 3,111 | $ | 34,222 |
(in thousands) | Commercial & Industrial | Commercial Real Estate Owner Occupied | Commercial Real Estate Investor Owned | Construction and Land Development | Residential Real Estate | Consumer & Other | Qualitative Adjustment | Total | |||||||||||||||||||||||
Balance September 30, 2012 | |||||||||||||||||||||||||||||||
Allowance for Loan Losses - Ending Balance: | |||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 1,165 | $ | 379 | $ | 2,199 | $ | 2,538 | $ | 506 | $ | — | $ | — | $ | 6,787 | |||||||||||||||
Collectively evaluated for impairment | 6,275 | 3,565 | 8,002 | 4,528 | 1,931 | 23 | 3,111 | 27,435 | |||||||||||||||||||||||
Total | $ | 7,440 | $ | 3,944 | $ | 10,201 | $ | 7,066 | $ | 2,437 | $ | 23 | $ | 3,111 | $ | 34,222 | |||||||||||||||
Loans - Ending Balance: | |||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 2,849 | $ | 5,584 | $ | 9,647 | $ | 10,095 | $ | 3,883 | $ | — | $ | — | $ | 32,058 | |||||||||||||||
Collectively evaluated for impairment | 877,545 | 319,795 | 466,854 | 136,141 | 143,057 | 11,716 | — | 1,955,108 | |||||||||||||||||||||||
Total | $ | 880,394 | $ | 325,379 | $ | 476,501 | $ | 146,236 | $ | 146,940 | $ | 11,716 | $ | — | $ | 1,987,166 | |||||||||||||||
Balance at December 31, 2011 | |||||||||||||||||||||||||||||||
Allowance for Loan Losses - Ending Balance: | |||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 3,214 | $ | 1,377 | $ | 2,315 | $ | 2,927 | $ | 896 | $ | — | $ | — | $ | 10,729 | |||||||||||||||
Collectively evaluated for impairment | 8,731 | 4,920 | 4,436 | 2,920 | 3,035 | 14 | 3,204 | 27,260 | |||||||||||||||||||||||
Total | $ | 11,945 | $ | 6,297 | $ | 6,751 | $ | 5,847 | $ | 3,931 | $ | 14 | $ | 3,204 | $ | 37,989 | |||||||||||||||
Loans - Ending Balance: | |||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 5,634 | $ | 4,572 | $ | 11,127 | $ | 14,767 | $ | 5,522 | $ | — | $ | — | $ | 41,622 | |||||||||||||||
Collectively evaluated for impairment | 757,568 | 329,844 | 466,027 | 125,380 | 165,512 | 11,121 | — | 1,855,452 | |||||||||||||||||||||||
Total | $ | 763,202 | $ | 334,416 | $ | 477,154 | $ | 140,147 | $ | 171,034 | $ | 11,121 | $ | — | $ | 1,897,074 |
September 30, 2012 | |||||||||||||||||||||||
(in thousands) | Unpaid Contractual Principal Balance | Recorded Investment With No Allowance | Recorded Investment With Allowance | Total Recorded Investment | Related Allowance | Average Recorded Investment | |||||||||||||||||
Commercial & Industrial | $ | 4,081 | $ | 291 | $ | 2,558 | $ | 2,849 | $ | 1,165 | $ | 6,322 | |||||||||||
Real Estate: | |||||||||||||||||||||||
Commercial - Owner Occupied | 6,154 | 2,875 | 2,709 | 5,584 | 379 | 8,653 | |||||||||||||||||
Commercial - Investor Owned | 14,053 | 1,865 | 7,782 | 9,647 | 2,199 | 9,793 | |||||||||||||||||
Construction and Land Development | 13,192 | 748 | 9,347 | 10,095 | 2,538 | 11,295 | |||||||||||||||||
Residential | 4,164 | 1,705 | 2,178 | 3,883 | 506 | 4,800 | |||||||||||||||||
Consumer & Other | — | — | — | — | — | — | |||||||||||||||||
Total | $ | 41,644 | $ | 7,484 | $ | 24,574 | $ | 32,058 | $ | 6,787 | $ | 40,863 |
December 31, 2011 | |||||||||||||||||||||||
(in thousands) | Unpaid Contractual Principal Balance | Recorded Investment With No Allowance | Recorded Investment With Allowance | Total Recorded Investment | Related Allowance | Average Recorded Investment | |||||||||||||||||
Commercial & Industrial | $ | 7,517 | $ | 128 | $ | 5,506 | $ | 5,634 | $ | 3,214 | $ | 6,571 | |||||||||||
Real Estate: | |||||||||||||||||||||||
Commercial - Owner Occupied | 5,099 | — | 4,572 | 4,572 | 1,377 | 2,711 | |||||||||||||||||
Commercial - Investor Owned | 15,676 | 914 | 10,213 | 11,127 | 2,315 | 10,562 | |||||||||||||||||
Construction and Land Development | 19,685 | 1,628 | 13,139 | 14,767 | 2,927 | 16,114 | |||||||||||||||||
Residential | 6,465 | 2,211 | 3,311 | 5,522 | 896 | 9,588 | |||||||||||||||||
Consumer & Other | — | — | — | — | — | — | |||||||||||||||||
Total | $ | 54,442 | $ | 4,881 | $ | 36,741 | $ | 41,622 | $ | 10,729 | $ | 45,546 |
September 30, 2012 | |||||||||||||||
(in thousands) | Non-accrual | Restructured | Loans over 90 days past due and still accruing interest | Total | |||||||||||
Commercial & Industrial | $ | 2,849 | $ | — | $ | — | $ | 2,849 | |||||||
Real Estate: | |||||||||||||||
Commercial - Investor Owned | 9,647 | — | — | 9,647 | |||||||||||
Commercial - Owner Occupied | 5,377 | 207 | — | 5,584 | |||||||||||
Construction and Land Development | 7,286 | 2,809 | — | 10,095 | |||||||||||
Residential | 2,187 | 1,696 | — | 3,883 | |||||||||||
Consumer & Other | — | — | — | — | |||||||||||
Total | $ | 27,346 | $ | 4,712 | $ | — | $ | 32,058 |
December 31, 2011 | |||||||||||||||
(in thousands) | Non-accrual | Restructured | Loans over 90 days past due and still accruing interest | Total | |||||||||||
Commercial & Industrial | $ | 4,475 | $ | 1,159 | $ | — | $ | 5,634 | |||||||
Real Estate: | |||||||||||||||
Commercial - Investor Owned | 6,647 | 4,480 | — | 11,127 | |||||||||||
Commercial - Owner Occupied | 4,129 | 443 | — | 4,572 | |||||||||||
Construction and Land Development | 10,335 | 3,677 | 755 | 14,767 | |||||||||||
Residential | 5,299 | 223 | — | 5,522 | |||||||||||
Consumer & Other | — | — | — | — | |||||||||||
Total | $ | 30,885 | $ | 9,982 | $ | 755 | $ | 41,622 |
Three months ended September 30, 2012 | Nine months ended September 30, 2012 | ||||||||||||||||||||
(in thousands, except for number of loans) | Number of Loans | Pre-Modification Outstanding Recorded Balance | Post-Modification Outstanding Recorded Balance | Number of Loans | Pre-Modification Outstanding Recorded Balance | Post-Modification Outstanding Recorded Balance | |||||||||||||||
Commercial & Industrial | 1 | $ | 150 | $ | — | — | $ | — | $ | — | |||||||||||
Real Estate: | |||||||||||||||||||||
Commercial - Owner Occupied | 1 | 207 | 207 | 1 | 207 | 207 | |||||||||||||||
Commercial - Investor Owned | — | — | — | — | — | — | |||||||||||||||
Construction and Land Development | — | — | — | 2 | 4,341 | 2,809 | |||||||||||||||
Residential | — | — | — | 1 | 1,696 | 1,696 | |||||||||||||||
Consumer & Other | — | — | — | — | — | — | |||||||||||||||
Total | 2 | $ | 357 | $ | 207 | 4 | $ | 6,244 | $ | 4,712 |
Three months ended September 30, 2012 | Nine months ended September 30, 2012 | ||||||||||||
(in thousands, except for number of loans) | Number of Loans | Recorded Balance | Number of Loans | Recorded Balance | |||||||||
Commercial & Industrial | 1 | $ | 150 | 2 | $ | 166 | |||||||
Real Estate: | |||||||||||||
Commercial - Owner Occupied | — | — | — | — | |||||||||
Commercial - Investor Owned | — | — | — | — | |||||||||
Construction and Land Development | — | — | — | — | |||||||||
Residential | — | — | — | — | |||||||||
Consumer & Other | — | — | — | — | |||||||||
Total | 1 | $ | 150 | 2 | $ | 166 |
September 30, 2012 | |||||||||||||||||||
(in thousands) | 30-89 Days Past Due | 90 or More Days Past Due | Total Past Due | Current | Total | ||||||||||||||
Commercial & Industrial | $ | 704 | $ | 862 | $ | 1,566 | $ | 878,828 | $ | 880,394 | |||||||||
Real Estate: | |||||||||||||||||||
Commercial - Owner Occupied | — | 344 | 344 | 325,035 | 325,379 | ||||||||||||||
Commercial - Investor Owned | 15 | 4,509 | 4,524 | 471,977 | 476,501 | ||||||||||||||
Construction and Land Development | 596 | 5,306 | 5,902 | 140,334 | 146,236 | ||||||||||||||
Residential | 703 | 890 | 1,593 | 145,347 | 146,940 | ||||||||||||||
Consumer & Other | 5 | — | 5 | 11,711 | 11,716 | ||||||||||||||
Total | $ | 2,023 | $ | 11,911 | $ | 13,934 | $ | 1,973,232 | $ | 1,987,166 |
December 31, 2011 | |||||||||||||||||||
(in thousands) | 30-89 Days Past Due | 90 or More Days Past Due | Total Past Due | Current | Total | ||||||||||||||
Commercial & Industrial | $ | 4,521 | $ | 792 | $ | 5,313 | $ | 757,889 | $ | 763,202 | |||||||||
Real Estate: | |||||||||||||||||||
Commercial - Owner Occupied | 1,945 | 1,522 | 3,467 | 330,949 | 334,416 | ||||||||||||||
Commercial - Investor Owned | 2,308 | 4,209 | 6,517 | 470,637 | 477,154 | ||||||||||||||
Construction and Land Development | 1,356 | 9,786 | 11,142 | 129,005 | 140,147 | ||||||||||||||
Residential | 299 | 4,137 | 4,436 | 166,598 | 171,034 | ||||||||||||||
Consumer & Other | — | — | — | 11,121 | 11,121 | ||||||||||||||
Total | $ | 10,429 | $ | 20,446 | $ | 30,875 | $ | 1,866,199 | $ | 1,897,074 |
• | Grades 1, 2, and 3 - These grades include loans to borrowers with a continuous record of strong earnings, sound balance sheet condition and capitalization, ample liquidity with solid cash flow and whose management team has experience and depth within their industry. |
• | Grade 4– This grade includes loans to borrowers with positive trends in profitability, satisfactory capitalization and balance sheet condition, and sufficient liquidity and cash flow. |
• | Grade 5 – This grade includes loans to borrowers that may display fluctuating trends in sales, profitability, capitalization, liquidity, and cash flow. |
• | Grade 6– This grade includes loans to borrowers where an adverse change or perceived weakness has occurred, but may be correctable in the near future. Alternatively, this rating category may also include circumstances where the company is starting to reverse a negative trend or condition, or have recently been upgraded from a 7, 8, or 9 rating. |
• | Grade 7 – Watch credits are companies that have experienced financial setback of a nature that are not determined to be severe or influence ‘ongoing concern’ expectations. Borrowers within this category are expected to turnaround within a 12-month period of time. Although possible, no loss is anticipated, due to strong collateral and/or guarantor support. |
• | Grade 8 – Substandard credits will include those companies that are characterized by significant losses and sustained downward trends in balance sheet condition, liquidity, and cash flow. Repayment reliance may have shifted to secondary sources. Collateral exposure may exist and additional reserves may be warranted. |
• | Grade 9 – Doubtful credits include borrowers that may show deteriorating trends that are unlikely to be corrected. Collateral values may appear insufficient for full recovery, therefore requiring a partial charge-off, or debt renegotiation with the borrower. Borrower may have declared bankruptcy or bankruptcy is likely in the near term. All doubtful rated credits will be on non-accrual. |
September 30, 2012 | |||||||||||||||||||
(in thousands) | Pass (1-6) | Watch (7) | Substandard (8) | Doubtful (9) | Total | ||||||||||||||
Commercial & Industrial | $ | 824,351 | $ | 37,878 | $ | 18,165 | $ | — | $ | 880,394 | |||||||||
Real Estate: | |||||||||||||||||||
Commercial - Owner Occupied | 279,806 | 30,850 | 14,379 | 344 | 325,379 | ||||||||||||||
Commercial - Investor Owned | 387,509 | 54,161 | 34,831 | — | 476,501 | ||||||||||||||
Construction and Land Development | 101,683 | 15,101 | 28,944 | 508 | 146,236 | ||||||||||||||
Residential | 130,212 | 4,967 | 11,761 | — | 146,940 | ||||||||||||||
Consumer & Other | 11,660 | 6 | 50 | — | 11,716 | ||||||||||||||
Total | $ | 1,735,221 | $ | 142,963 | $ | 108,130 | $ | 852 | $ | 1,987,166 |
December 31, 2011 | |||||||||||||||||||
(in thousands) | Pass (1-6) | Watch (7) | Substandard (8) | Doubtful (9) | Total | ||||||||||||||
Commercial & Industrial | $ | 683,239 | $ | 50,197 | $ | 27,229 | $ | 2,537 | $ | 763,202 | |||||||||
Real Estate: | |||||||||||||||||||
Commercial - Owner Occupied | 276,802 | 40,207 | 16,225 | 1,182 | 334,416 | ||||||||||||||
Commercial - Investor Owned | 405,686 | 56,370 | 14,894 | 204 | 477,154 | ||||||||||||||
Construction and Land Development | 91,286 | 27,056 | 21,461 | 344 | 140,147 | ||||||||||||||
Residential | 148,309 | 4,814 | 16,419 | 1,492 | 171,034 | ||||||||||||||
Consumer & Other | 11,112 | 9 | — | — | 11,121 | ||||||||||||||
Total | $ | 1,616,434 | $ | 178,653 | $ | 96,228 | $ | 5,759 | $ | 1,897,074 |
September 30, 2012 | December 31, 2011 | ||||||||
(in thousands) | Weighted- Average Risk Rating | Recorded Investment Covered Loans | Weighted- Average Risk Rating | Recorded Investment Covered Loans | |||||
Real Estate Loans: | |||||||||
Construction and Land Development | 7.13 | $ | 38,620 | 7.22 | $ | 65,990 | |||
Commercial real estate - Investor Owned | 6.00 | 64,287 | 6.12 | 75,093 | |||||
Commercial real estate - Owner Occupied | 6.60 | 44,307 | 6.03 | 63,101 | |||||
Residential real estate | 5.67 | 46,426 | 4.81 | 56,828 | |||||
Total real estate loans | $ | 193,640 | $ | 261,012 | |||||
Commercial and industrial | 6.93 | 26,209 | 6.61 | 36,423 | |||||
Consumer & other | 4.33 | 1,584 | 4.14 | 3,175 | |||||
Portfolio Loans | $ | 221,433 | $ | 300,610 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
(in thousands) | 2012 | 2011 | 2012 | 2011 | |||||||||||
Balance at beginning of period | $ | 1,889 | $ | — | $ | 1,635 | $ | — | |||||||
Provision charged to expense | 10,889 | 2,672 | 13,380 | 2,947 | |||||||||||
Loans charged off | (1,627 | ) | (103 | ) | (3,689 | ) | (378 | ) | |||||||
Recoveries | 10 | — | 16 | — | |||||||||||
Other | (59 | ) | — | (240 | ) | — | |||||||||
Balance at end of period | $ | 11,102 | $ | 2,569 | $ | 11,102 | $ | 2,569 |
September 30, 2012 | |||||||||||||||||||
(in thousands) | 30-89 Days Past Due | 90 or More Days Past Due | Total Past Due | Current | Total | ||||||||||||||
Commercial & Industrial | $ | 3,325 | $ | 4,378 | $ | 7,703 | $ | 18,506 | $ | 26,209 | |||||||||
Real Estate: | |||||||||||||||||||
Commercial - Owner Occupied | — | 6,590 | 6,590 | 37,717 | 44,307 | ||||||||||||||
Commercial - Investor Owned | 375 | 2,180 | 2,555 | 61,732 | 64,287 | ||||||||||||||
Construction and Land Development | 1,884 | 21,830 | 23,714 | 14,906 | 38,620 | ||||||||||||||
Residential | 609 | 2,634 | 3,243 | 43,183 | 46,426 | ||||||||||||||
Consumer & Other | 11 | 2 | 13 | 1,571 | 1,584 | ||||||||||||||
Total | $ | 6,204 | $ | 37,614 | $ | 43,818 | $ | 177,615 | $ | 221,433 |
December 31, 2011 | |||||||||||||||||||
(in thousands) | 30-89 Days Past Due | 90 or More Days Past Due | Total Past Due | Current | Total | ||||||||||||||
Commercial & Industrial | $ | 879 | $ | 9,867 | $ | 10,746 | $ | 25,677 | $ | 36,423 | |||||||||
Real Estate: | |||||||||||||||||||
Commercial - Owner Occupied | 1,438 | 9,684 | 11,122 | 51,979 | 63,101 | ||||||||||||||
Commercial - Investor Owned | 2,530 | 7,021 | 9,551 | 65,542 | 75,093 | ||||||||||||||
Construction and Land Development | 2,842 | 28,745 | 31,587 | 34,403 | 65,990 | ||||||||||||||
Residential | 1,634 | 3,341 | 4,975 | 51,853 | 56,828 | ||||||||||||||
Consumer & Other | 236 | 7 | 243 | 2,932 | 3,175 | ||||||||||||||
Total | $ | 9,559 | $ | 58,665 | $ | 68,224 | $ | 232,386 | $ | 300,610 |
(in thousands) | September 30, 2012 | September 30, 2011 | |||||
Balance at beginning of period | $ | 63,335 | $ | 46,460 | |||
Additions | — | 40,380 | |||||
Accretion | (36,225 | ) | (15,337 | ) | |||
Reclassifications from nonaccretable difference | 74,758 | 5,160 | |||||
Other | (6,423 | ) | (34,228 | ) | |||
Balance at end of period | $ | 95,445 | $ | 42,435 |
(in thousands) | September 30, 2012 | December 31, 2011 | |||||
Commitments to extend credit | $ | 724,517 | $ | 547,657 | |||
Standby letters of credit | 43,383 | 43,973 |
• | Economic hedge of state tax credits. In November 2008, the Company paid $2.1 million to enter into a series of interest rate caps in order to economically hedge changes in fair value of the State tax credits held for sale. In February 2010, the Company paid $751,000 for an additional series of interest rate caps. See Note 8—Fair Value Measurements for further discussion of the fair value of the state tax credits. |
• | Economic hedge of prime based loans. Previously, the Company had two outstanding interest rate swap agreements whereby the Company paid a variable rate of interest equivalent to the prime rate and received a fixed rate of interest. The swaps were designed to hedge the cash flows associated with a portion of prime based loans and had been designated as cash flow hedges. However, in December 2008, due to a variable rate differential, the Company concluded the cash flow hedges would not be prospectively effective and the hedges were dedesignated. The swaps were terminated in February 2009. The unrealized gain prior to dedesignation was included in Accumulated other comprehensive income and is being amortized over the expected life of the related loans. For the three months ended September 30, 2011, $44,000 was reclassified into Miscellaneous income. For the nine months ended September 30, 2011, $132,000 was reclassified into Miscellaneous income. At December 31, 2011, there were no additional amounts remaining in Accumulated other comprehensive income to be reclassified into operations. |
Asset Derivatives (Other Assets) | Liability Derivatives (Other Liabilities) | ||||||||||||||||||||||
Notional Amount | Fair Value | Fair Value | |||||||||||||||||||||
(in thousands) | September 30, 2012 | December 31, 2011 | September 30, 2012 | December 31, 2011 | September 30, 2012 | December 31, 2011 | |||||||||||||||||
Non-designated hedging instruments | |||||||||||||||||||||||
Interest rate cap contracts | $ | 49,050 | $ | 80,050 | $ | 14 | $ | 94 | $ | — | $ | — |
Location of Gain or (Loss) Recognized in Operations on Derivative | Amount of Gain or (Loss) Recognized in Operations on Derivative | Amount of Gain or (Loss) Recognized in Operations on Derivative | |||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
(in thousands) | 2012 | 2011 | 2012 | 2011 | |||||||||||||
Non-designated hedging instruments | |||||||||||||||||
Interest rate cap contracts | Gain on state tax credits, net | $ | (14 | ) | $ | (176 | ) | $ | (79 | ) | $ | (410 | ) | ||||
Interest rate swap contracts | Miscellaneous income | — | 44 | — | 132 |
Asset Derivatives (Other Assets) | Liability Derivatives (Other Liabilities) | ||||||||||||||||||||||
Notional Amount | Fair Value | Fair Value | |||||||||||||||||||||
(in thousands) | September 30, 2012 | December 31, 2011 | September 30, 2012 | December 31, 2011 | September 30, 2012 | December 31, 2011 | |||||||||||||||||
Non-designated hedging instruments | |||||||||||||||||||||||
Interest rate swap contracts | $ | 142,773 | $ | 65,077 | $ | 2,265 | $ | 1,095 | $ | 2,626 | $ | 1,796 | |||||||||||
Foreign exchange forward contracts | 1,142 | — | 1,142 | — | 1,142 | — |
Location of Gain or (Loss) Recognized in Operations on Derivative | Amount of Gain or (Loss) Recognized in Operations on Derivative | Amount of Gain or (Loss) Recognized in Operations on Derivative | |||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
(in thousands) | 2012 | 2011 | 2012 | 2011 | |||||||||||||
Non-designated hedging instruments | |||||||||||||||||
Interest rate swap contracts | Interest and fees on loans | $ | (103 | ) | $ | (160 | ) | $ | (354 | ) | $ | (451 | ) |
September 30, 2012 | |||||||||||||||
(in thousands) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Fair Value | |||||||||||
Assets | |||||||||||||||
Securities available for sale | |||||||||||||||
Obligations of U.S. Government sponsored enterprises | $ | — | $ | 128,005 | $ | — | $ | 128,005 | |||||||
Obligations of states and political subdivisions | — | 42,742 | 3,047 | 45,789 | |||||||||||
Residential mortgage-backed securities | — | 436,563 | — | 436,563 | |||||||||||
Total securities available for sale | $ | — | $ | 607,310 | $ | 3,047 | $ | 610,357 | |||||||
Portfolio loans | — | 12,891 | — | 12,891 | |||||||||||
State tax credits held for sale | — | — | 25,069 | 25,069 | |||||||||||
Derivative financial instruments | — | 3,421 | — | 3,421 | |||||||||||
Total assets | $ | — | $ | 623,622 | $ | 28,116 | $ | 651,738 | |||||||
Liabilities | |||||||||||||||
Derivative financial instruments | $ | — | $ | 3,768 | $ | — | $ | 3,768 | |||||||
Total liabilities | $ | — | $ | 3,768 | $ | — | $ | 3,768 |
• | Securities available for sale. Securities classified as available for sale are reported at fair value utilizing Level 2 and Level 3 inputs. The Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond's terms and conditions. At September 30, 2012, Level 3 securities available for sale consist primarily of three Auction Rate Securities. |
• | Portfolio Loans. Certain fixed rate portfolio loans are accounted for as trading instruments and reported at fair value. Fair value on these loans is determined using a third party valuation model with observable Level 2 market data inputs. |
• | State tax credits held for sale. At September 30, 2012, of the $65.9 million of state tax credits held for sale on the condensed consolidated balance sheet, approximately $25.1 million were carried at fair value. The remaining $40.8 million of state tax credits were accounted for at cost. |
• | Derivatives. Derivatives are reported at fair value utilizing Level 2 inputs. The Company obtains counterparty quotations to value its interest rate swaps and caps. In addition, the Company validates the counterparty quotations with third party valuation sources. Derivatives with negative fair values are included in Other liabilities in the consolidated balance sheets. Derivatives with positive fair value are included in Other assets in the consolidated balance sheets. |
• | Purchases, sales, issuances and settlements, net. There were no Level 3 purchases during the quarter ended September 30, 2012. |
• | Transfers in and/or out of Level 3. The transfer out of Level 3 is related to a newly issued mortgage-backed security purchased in the fourth quarter of 2011 which was originally priced using Level 3 assumptions. In the first quarter of 2012, a third party pricing service, utilizing Level 2 assumptions, became available as more data was available on the new security. |
Securities available for sale, at fair value | |||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
(in thousands) | 2012 | 2011 | 2012 | 2011 | |||||||||||
Beginning balance | $ | 3,042 | $ | 2,994 | $ | 6,763 | $ | 7,520 | |||||||
Total gains (losses): | |||||||||||||||
Included in other comprehensive income | 5 | 5 | 20 | 34 | |||||||||||
Purchases, sales, issuances and settlements: | |||||||||||||||
Purchases | — | 4,983 | — | 4,983 | |||||||||||
Transfer in and/or out of Level 3 | — | — | (3,736 | ) | (4,555 | ) | |||||||||
Ending balance | $ | 3,047 | $ | 7,982 | $ | 3,047 | $ | 7,982 | |||||||
Change in unrealized gains relating to assets still held at the reporting date | $ | 5 | $ | 5 | $ | 20 | $ | 34 |
State tax credits held for sale | |||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
(in thousands) | 2012 | 2011 | 2012 | 2011 | |||||||||||
Beginning balance | $ | 24,836 | $ | 29,247 | $ | 26,350 | $ | 31,576 | |||||||
Total gains: | |||||||||||||||
Included in earnings | 264 | 1,211 | 994 | 2,020 | |||||||||||
Purchases, sales, issuances and settlements: | |||||||||||||||
Sales | (31 | ) | (964 | ) | (2,275 | ) | (4,102 | ) | |||||||
Ending balance | $ | 25,069 | $ | 29,494 | $ | 25,069 | $ | 29,494 | |||||||
Change in unrealized gains relating to assets still held at the reporting date | $ | 257 | $ | 975 | $ | 439 | $ | 1,009 |
(1) | (1) | (1) | (1) | ||||||||||||||||||||
(in thousands) | Total Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total (losses) gains for the three months ended September 30, 2012 | Total (losses) gains for the nine months ended September 30, 2012 | |||||||||||||||||
Impaired loans | $ | 7,905 | $ | — | $ | — | $ | 7,905 | $ | (3,974 | ) | $ | (8,679 | ) | |||||||||
Other real estate | 8,454 | — | — | 8,454 | (387 | ) | (2,201 | ) | |||||||||||||||
Total | $ | 16,359 | $ | — | $ | — | $ | 16,359 | $ | (4,361 | ) | $ | (10,880 | ) |
September 30, 2012 | December 31, 2011 | ||||||||||||||
(in thousands) | Carrying Amount | Estimated fair value | Carrying Amount | Estimated fair value | |||||||||||
Balance sheet assets | |||||||||||||||
Cash and due from banks | $ | 28,964 | $ | 28,964 | $ | 20,791 | $ | 20,791 | |||||||
Federal funds sold | 30 | 30 | 143 | 143 | |||||||||||
Interest-bearing deposits | 57,681 | 57,681 | 168,711 | 168,711 | |||||||||||
Securities available for sale | 610,357 | 610,357 | 593,182 | 593,182 | |||||||||||
Other investments, at cost | 16,362 | 16,362 | 14,527 | 14,527 | |||||||||||
Loans held for sale | 8,245 | 8,245 | 6,494 | 6,494 | |||||||||||
Derivative financial instruments | 3,421 | 3,421 | 1,189 | 1,189 | |||||||||||
Portfolio loans, net | 2,163,275 | 2,169,718 | 2,158,060 | 2,163,723 | |||||||||||
State tax credits, held for sale | 65,873 | 71,482 | 50,446 | 50,446 | |||||||||||
Accrued interest receivable | 10,481 | 10,481 | 9,193 | 9,193 | |||||||||||
Balance sheet liabilities | |||||||||||||||
Deposits | 2,550,933 | 2,562,601 | 2,791,353 | 2,804,044 | |||||||||||
Subordinated debentures | 85,081 | 41,919 | 85,081 | 42,252 | |||||||||||
Federal Home Loan Bank advances | 126,000 | 135,388 | 102,000 | 110,575 | |||||||||||
Other borrowings | 147,104 | 147,111 | 154,545 | 154,561 | |||||||||||
Derivative financial instruments | 3,768 | 3,768 | 1,796 | 1,796 | |||||||||||
Accrued interest payable | 1,377 | 1,377 | 1,762 | 1,762 |
Estimated Fair Value Measurement at Reporting Date Using | Balance at September 30, 2012 | ||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | ||||||||||||
Financial Assets: | |||||||||||||||
Portfolio loans, net | $ | — | $ | — | $ | 2,169,421 | $ | 2,169,421 | |||||||
State tax credits, held for sale | $ | — | $ | — | $ | 46,413 | $ | 46,413 | |||||||
Financial Liabilities: | |||||||||||||||
Deposits | 1,937,740 | — | 624,861 | 2,562,601 | |||||||||||
Subordinated debentures | — | — | 41,919 | 41,919 | |||||||||||
Federal Home Loan Bank advances | — | — | 135,388 | 135,388 | |||||||||||
Other borrowings | — | — | 147,111 | 147,111 | |||||||||||
Estimated Fair Value Measurement at Reporting Date Using | Balance at December 31, 2011 | ||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | ||||||||||||
Financial Assets: | |||||||||||||||
Portfolio loans, net | $ | — | $ | — | $ | 2,163,121 | $ | 2,163,121 | |||||||
State tax credits, held for sale | $ | — | $ | — | $ | 24,096 | $ | 24,096 | |||||||
Financial Liabilities: | |||||||||||||||
Deposits | 1,974,432 | — | 829,612 | 2,804,044 | |||||||||||
Subordinated debentures | — | — | 42,252 | 42,252 | |||||||||||
Federal Home Loan Bank advances | — | — | 110,575 | 110,575 | |||||||||||
Other borrowings | — | — | 154,561 | 154,561 |
(in thousands) | Banking | Wealth Management | Corporate and Intercompany | Total | |||||||||||
Balance Sheet Information | September 30, 2012 | ||||||||||||||
Portfolio loans | $ | 2,208,599 | $ | — | $ | — | $ | 2,208,599 | |||||||
Goodwill | 30,334 | — | — | 30,334 | |||||||||||
Intangibles, net | 7,846 | — | — | 7,846 | |||||||||||
Deposits | 2,535,930 | 30,688 | (15,685 | ) | 2,550,933 | ||||||||||
Borrowings | 215,051 | 60,553 | 82,581 | 358,185 | |||||||||||
Total assets | 3,075,740 | 96,660 | 21,292 | 3,193,692 | |||||||||||
December 31, 2011 | |||||||||||||||
Portfolio loans | $ | 2,197,684 | $ | — | $ | — | $ | 2,197,684 | |||||||
Goodwill | 30,334 | — | — | 30,334 | |||||||||||
Intangibles, net | 9,285 | — | — | 9,285 | |||||||||||
Deposits | 2,773,482 | 39,440 | (21,569 | ) | 2,791,353 | ||||||||||
Borrowings | 213,480 | 45,565 | 82,581 | 341,626 | |||||||||||
Total assets | 3,278,328 | 90,068 | 9,383 | 3,377,779 | |||||||||||
Income Statement Information | Three months ended September 30, 2012 | ||||||||||||||
Net interest income (expense) | $ | 38,627 | $ | (252 | ) | $ | (891 | ) | $ | 37,484 | |||||
Provision for loan losses | 11,937 | — | — | 11,937 | |||||||||||
Noninterest income | 5,418 | 2,088 | 326 | 7,832 | |||||||||||
Noninterest expense | 18,063 | 1,968 | 1,251 | 21,282 | |||||||||||
Income (loss) before income tax expense (benefit) | 14,045 | (132 | ) | (1,816 | ) | 12,097 | |||||||||
Three months ended September 30, 2011 | |||||||||||||||
Net interest income (expense) | $ | 28,105 | $ | (304 | ) | $ | (1,032 | ) | $ | 26,769 | |||||
Provision for loan losses | 8,072 | — | — | 8,072 | |||||||||||
Noninterest income | 5,105 | 3,201 | 420 | 8,726 | |||||||||||
Noninterest expense | 15,454 | 2,016 | 832 | 18,302 | |||||||||||
Income (loss) before income tax expense (benefit) | 9,684 | 881 | (1,444 | ) | 9,121 | ||||||||||
Income Statement Information | Nine months ended September 30, 2012 | ||||||||||||||
Net interest income (expense) | $ | 105,646 | $ | (566 | ) | $ | (2,834 | ) | $ | 102,246 | |||||
Provision for loan losses | 16,221 | — | — | 16,221 | |||||||||||
Noninterest income | 5,571 | 6,718 | 371 | 12,660 | |||||||||||
Noninterest expense | 54,424 | 5,761 | 3,875 | 64,060 | |||||||||||
Income (loss) before income tax expense (benefit) | 40,572 | 391 | (6,338 | ) | 34,625 | ||||||||||
Nine months ended September 30, 2011 | |||||||||||||||
Net interest income (expense) | $ | 84,511 | $ | (941 | ) | $ | (3,089 | ) | $ | 80,481 | |||||
Provision for loan losses | 16,247 | — | — | 16,247 | |||||||||||
Noninterest income | 9,721 | 7,683 | 503 | 17,907 | |||||||||||
Noninterest expense | 45,639 | 5,914 | 2,738 | 54,291 | |||||||||||
Income (loss) before income tax expense (benefit) | 32,346 | 828 | (5,324 | ) | 27,850 |
• | Loans - Portfolio loans totaled $2.2 billion at September 30, 2012, flat with December 31, 2011 and September 30, 2011. Loans covered under FDIC shared loss agreements ("Covered loans") were $221.4 million at September 30, 2012, a decrease of $79.2 million or 26% from December 31, 2011 and a decrease of $105.5 million or 32% from September 30, 2011. The decrease is due to principal paydowns and loans that paid off. |
• | Deposits – Total deposits at September 30, 2012 were $2.6 billion, a decrease of $240.4 million, or 9%, and $266.3 million, or 9%, from December 31, 2011 and September 30, 2011, respectively. The decrease is mainly due to a decline in certificates of deposit as the Company continues to force a decline through lower cost pricing. Demand deposits increased $35.6 million or 6% from December 31, 2011 and $63.8 million or 11% from September 30, 2011 while interest bearing transaction accounts decreased $72.3 million or 5% from December 31, 2011 and $42.4 million or 3% from September 30, 2011. |
• | Asset quality – Nonperforming loans, including troubled debt restructurings were $32.1 million at September 30, 2012, compared to $41.6 million at December 31, 2011 and $48.0 million at September 30, 2011. Nonperforming loans represented 1.61% of total Noncovered loans at September 30, 2012 versus 2.19% at December 31, 2011 and 2.57% at September 30, 2011. Excluding non-accrual loans and Covered loans, portfolio loans that were 30-89 days delinquent at September 30, 2012 remained at very low levels, representing 0.07% of the portfolio compared to 0.36% at December 31, 2011 and 0.03% at September 30, 2011. |
• | Interest rate margin – The net interest rate margin was 5.21% for the third quarter of 2012, compared to 4.81% for the second quarter of 2012 and 3.79% in the third quarter of 2011. For the nine month period ended September 30, 2012, the net interest rate margin was 4.79% compared to 4.04% for the same period in 2011. See Net Interest Income in this section for more information. |
• | Covered loans and other assets covered under FDIC shared loss agreements - The following table illustrates the net revenue contribution of covered assets for the most recent five quarters. |
For the Quarter ended | |||||||||||||||||||
(in thousands) | September 30, 2012 | June 30, 2012 | March 31, 2012 | December 31, 2011 | September 30, 2011 | ||||||||||||||
Accretion income | $ | 7,995 | $ | 7,155 | $ | 7,081 | $ | 6,841 | $ | 4,942 | |||||||||
Accelerated cash flows | 7,446 | 5,315 | 2,691 | 4,733 | 1,620 | ||||||||||||||
Other | 103 | 106 | 130 | 29 | 4 | ||||||||||||||
Total interest income | 15,544 | 12,576 | 9,902 | 11,603 | 6,566 | ||||||||||||||
Provision for loan losses | (10,889 | ) | (206 | ) | (2,285 | ) | 144 | (2,672 | ) | ||||||||||
Gain on sale of other real estate | 34 | 769 | 1,173 | 144 | 588 | ||||||||||||||
Change in FDIC loss share receivable | 1,912 | (5,694 | ) | (2,956 | ) | (4,642 | ) | 1,513 | |||||||||||
Pre-tax net revenue | $ | 6,601 | $ | 7,445 | $ | 5,834 | $ | 7,249 | $ | 5,995 |
Three months ended September 30, | |||||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||
(in thousands) | Average Balance | Interest Income/Expense | Average Yield/ Rate | Average Balance | Interest Income/Expense | Average Yield/ Rate | |||||||||||||||
Assets | |||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Taxable loans (1) | $ | 1,918,419 | $ | 23,907 | 4.96 | % | $ | 1,807,526 | $ | 24,037 | 5.28 | % | |||||||||
Tax-exempt loans (2) | 37,138 | 680 | 7.28 | 30,965 | 595 | 7.62 | |||||||||||||||
Covered loans (3) | 233,272 | 15,544 | 26.51 | 256,381 | 6,566 | 10.16 | |||||||||||||||
Total loans | 2,188,829 | 40,131 | 7.29 | 2,094,872 | 31,198 | 5.91 | |||||||||||||||
Taxable investments in debt and equity securities | 574,968 | 2,671 | 1.85 | 471,303 | 2,953 | 2.49 | |||||||||||||||
Non-taxable investments in debt and equity securities (2) | 35,874 | 412 | 4.57 | 24,703 | 287 | 4.61 | |||||||||||||||
Short-term investments | 90,297 | 53 | 0.23 | 243,812 | 166 | 0.27 | |||||||||||||||
Total securities and short-term investments | 701,139 | 3,136 | 1.78 | 739,818 | 3,406 | 1.83 | |||||||||||||||
Total interest-earning assets | 2,889,968 | 43,267 | 5.96 | 2,834,690 | 34,604 | 4.84 | |||||||||||||||
Noninterest-earning assets: | |||||||||||||||||||||
Cash and due from banks | 17,435 | 23,499 | |||||||||||||||||||
Other assets | 318,400 | 377,123 | |||||||||||||||||||
Allowance for loan losses | (37,804 | ) | (44,822 | ) | |||||||||||||||||
Total assets | $ | 3,187,999 | $ | 3,190,490 | |||||||||||||||||
Liabilities and Shareholders' Equity | |||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Interest-bearing transaction accounts | $ | 259,488 | $ | 182 | 0.28 | % | $ | 218,416 | $ | 211 | 0.38 | % | |||||||||
Money market accounts | 982,375 | 1,024 | 0.41 | 1,019,362 | 2,004 | 0.78 | |||||||||||||||
Savings | 74,961 | 68 | 0.36 | 34,103 | 35 | 0.41 | |||||||||||||||
Certificates of deposit | 639,084 | 2,288 | 1.42 | 859,478 | 3,152 | 1.45 | |||||||||||||||
Total interest-bearing deposits | 1,955,908 | 3,562 | 0.72 | 2,131,359 | 5,402 | 1.01 | |||||||||||||||
Subordinated debentures | 85,081 | 982 | 4.59 | 85,081 | 1,128 | 5.26 | |||||||||||||||
Borrowed funds | 225,963 | 846 | 1.49 | 201,385 | 986 | 1.94 | |||||||||||||||
Total interest-bearing liabilities | 2,266,952 | 5,390 | 0.95 | 2,417,825 | 7,516 | 1.23 | |||||||||||||||
Noninterest bearing liabilities: | |||||||||||||||||||||
Demand deposits | 642,598 | 530,619 | |||||||||||||||||||
Other liabilities | 15,086 | 10,508 | |||||||||||||||||||
Total liabilities | 2,924,636 | 2,958,952 | |||||||||||||||||||
Shareholders' equity | 263,363 | 231,538 | |||||||||||||||||||
Total liabilities & shareholders' equity | $ | 3,187,999 | $ | 3,190,490 | |||||||||||||||||
Net interest income | $ | 37,877 | $ | 27,088 | |||||||||||||||||
Net interest spread | 5.01 | % | 3.61 | % | |||||||||||||||||
Net interest rate margin (4) | 5.21 | 3.79 |
(1) | Average balances include non-accrual loans. The income on such loans is included in interest but is recognized only upon receipt. Loan fees, net of amortization of deferred loan origination fees and costs, included in interest income are approximately $340,000 and $211,000 for the three months ended September 30, 2012 and 2011, respectively. |
(2) | Non-taxable income is presented on a fully tax-equivalent basis using a 36% tax rate. The tax-equivalent adjustments were $393,000 and $319,000 for the three months ended September 30, 2012 and 2011, respectively. |
(3) | Covered loans are loans covered under FDIC shared-loss agreements. |
(4) | Net interest income divided by average total interest-earning assets. |
Nine months ended September 30, | |||||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||
(in thousands) | Average Balance | Interest Income/Expense | Average Yield/ Rate | Average Balance | Interest Income/Expense | Average Yield/ Rate | |||||||||||||||
Assets | |||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Taxable loans (1) | $ | 1,897,482 | $ | 72,319 | 5.09 | % | $ | 1,767,492 | $ | 71,029 | 5.37 | % | |||||||||
Tax-exempt loans (2) | 32,857 | 1,841 | 7.48 | 32,623 | 1,895 | 7.77 | |||||||||||||||
Covered loans (3) | 254,568 | 38,022 | 19.95 | 204,532 | 21,323 | 13.94 | |||||||||||||||
Total loans | 2,184,907 | 112,182 | 6.86 | 2,004,647 | 94,247 | 6.29 | |||||||||||||||
Taxable investments in debt and equity securities | 554,898 | 7,670 | 1.85 | 454,593 | 8,936 | 2.63 | |||||||||||||||
Non-taxable investments in debt and equity securities (2) | 32,902 | 1,146 | 4.65 | 19,982 | 702 | 4.70 | |||||||||||||||
Short-term investments | 110,364 | 195 | 0.24 | 218,017 | 428 | 0.26 | |||||||||||||||
Total securities and short-term investments | 698,164 | 9,011 | 1.72 | 692,592 | 10,066 | 1.94 | |||||||||||||||
Total interest-earning assets | 2,883,071 | 121,193 | 5.62 | 2,697,239 | 104,313 | 5.17 | |||||||||||||||
Noninterest-earning assets: | |||||||||||||||||||||
Cash and due from banks | 16,037 | 15,776 | |||||||||||||||||||
Other assets | 361,824 | 329,117 | |||||||||||||||||||
Allowance for loan losses | (38,104 | ) | (43,612 | ) | |||||||||||||||||
Total assets | $ | 3,222,828 | $ | 2,998,520 | |||||||||||||||||
Liabilities and Shareholders' Equity | |||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Interest-bearing transaction accounts | $ | 256,505 | $ | 566 | 0.29 | % | $ | 201,979 | $ | 606 | 0.40 | % | |||||||||
Money market accounts | 1,024,359 | 3,694 | 0.48 | 957,346 | 6,210 | 0.87 | |||||||||||||||
Savings | 66,386 | 209 | 0.42 | 18,595 | 53 | 0.38 | |||||||||||||||
Certificates of deposit | 701,168 | 7,603 | 1.45 | 844,133 | 9,667 | 1.53 | |||||||||||||||
Total interest-bearing deposits | 2,048,418 | 12,072 | 0.79 | 2,022,053 | 16,536 | 1.09 | |||||||||||||||
Subordinated debentures | 85,081 | 3,111 | 4.88 | 85,081 | 3,375 | 5.30 | |||||||||||||||
Borrowed funds | 217,841 | 2,689 | 1.65 | 205,897 | 2,985 | 1.94 | |||||||||||||||
Total interest-bearing liabilities | 2,351,340 | 17,872 | 1.02 | 2,313,031 | 22,896 | 1.32 | |||||||||||||||
Noninterest bearing liabilities: | |||||||||||||||||||||
Demand deposits | 609,357 | 468,740 | |||||||||||||||||||
Other liabilities | 8,828 | 10,815 | |||||||||||||||||||
Total liabilities | 2,969,525 | 2,792,586 | |||||||||||||||||||
Shareholders' equity | 253,303 | 205,934 | |||||||||||||||||||
Total liabilities & shareholders' equity | $ | 3,222,828 | $ | 2,998,520 | |||||||||||||||||
Net interest income | $ | 103,321 | $ | 81,417 | |||||||||||||||||
Net interest spread | 4.60 | % | 3.85 | % | |||||||||||||||||
Net interest rate margin (4) | 4.79 | 4.04 |
(1) | Average balances include non-accrual loans. The income on such loans is included in interest but is recognized only upon receipt. Loan fees, net of amortization of deferred loan origination fees and costs, included in interest income are approximately $1,040,000 and $640,000 for the nine months ended September 30, 2012 and 2011, respectively. |
(2) | Non-taxable income is presented on a fully tax-equivalent basis using a 36% tax rate. The tax-equivalent adjustments were $1,075,000 and $936,000 for the nine months ended September 30, 2012 and 2011, respectively. |
(3) | Covered loans are loans covered under FDIC shared-loss agreements. |
(4) | Net interest income divided by average total interest-earning assets. |
2012 compared to 2011 | |||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
Increase (decrease) due to | Increase (decrease) due to | ||||||||||||||||||||||
(in thousands) | Volume(1) | Rate(2) | Net | Volume(1) | Rate(2) | Net | |||||||||||||||||
Interest earned on: | |||||||||||||||||||||||
Taxable loans | $ | 1,393 | $ | (1,523 | ) | $ | (130 | ) | $ | 5,107 | $ | (3,817 | ) | $ | 1,290 | ||||||||
Tax-exempt loans (3) | 112 | (27 | ) | 85 | 14 | (68 | ) | (54 | ) | ||||||||||||||
Covered loans | (641 | ) | 9,619 | 8,978 | 6,043 | 10,656 | 16,699 | ||||||||||||||||
Taxable investments in debt and equity securities | 568 | (850 | ) | (282 | ) | 1,727 | (2,993 | ) | (1,266 | ) | |||||||||||||
Non-taxable investments in debt and equity securities (3) | 128 | (3 | ) | 125 | 451 | (7 | ) | 444 | |||||||||||||||
Short-term investments | (93 | ) | (20 | ) | (113 | ) | (194 | ) | (39 | ) | (233 | ) | |||||||||||
Total interest-earning assets | $ | 1,467 | $ | 7,196 | $ | 8,663 | $ | 13,148 | $ | 3,732 | $ | 16,880 | |||||||||||
Interest paid on: | |||||||||||||||||||||||
Interest-bearing transaction accounts | $ | 35 | $ | (64 | ) | $ | (29 | ) | $ | 142 | $ | (182 | ) | $ | (40 | ) | |||||||
Money market accounts | (71 | ) | (909 | ) | (980 | ) | 409 | (2,925 | ) | (2,516 | ) | ||||||||||||
Savings | 37 | (4 | ) | 33 | 150 | 6 | 156 | ||||||||||||||||
Certificates of deposit | (799 | ) | (65 | ) | (864 | ) | (1,565 | ) | (499 | ) | (2,064 | ) | |||||||||||
Subordinated debentures | — | (146 | ) | (146 | ) | — | (264 | ) | (264 | ) | |||||||||||||
Borrowed funds | 109 | (249 | ) | (140 | ) | 167 | (463 | ) | (296 | ) | |||||||||||||
Total interest-bearing liabilities | (689 | ) | (1,437 | ) | (2,126 | ) | (697 | ) | (4,327 | ) | (5,024 | ) | |||||||||||
Net interest income | $ | 2,156 | $ | 8,633 | $ | 10,789 | $ | 13,845 | $ | 8,059 | $ | 21,904 |
(1) | Change in volume multiplied by yield/rate of prior period. |
(2) | Change in yield/rate multiplied by volume of prior period. |
(3) | Nontaxable income is presented on a fully-tax equivalent basis using a 36% tax rate. |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
(in thousands) | 2012 | 2011 | 2012 | 2011 | |||||||||||
Allowance at beginning of period, for loans not covered under FDIC loss share | $ | 36,304 | $ | 42,157 | $ | 37,989 | $ | 42,759 | |||||||
Loans charged off: | |||||||||||||||
Commercial and industrial | (1,479 | ) | (2,038 | ) | (2,470 | ) | (2,942 | ) | |||||||
Real estate: | |||||||||||||||
Commercial | (1,264 | ) | (217 | ) | (3,042 | ) | (1,511 | ) | |||||||
Construction and Land Development | (949 | ) | (2,039 | ) | (2,307 | ) | (8,875 | ) | |||||||
Residential | (282 | ) | (664 | ) | (860 | ) | (1,270 | ) | |||||||
Consumer and other | — | — | — | (5 | ) | ||||||||||
Total loans charged off | (3,974 | ) | (4,958 | ) | (8,679 | ) | (14,603 | ) | |||||||
Recoveries of loans previously charged off: | |||||||||||||||
Commercial and industrial | 142 | 154 | 441 | 295 | |||||||||||
Real estate: | |||||||||||||||
Commercial | 15 | 21 | 52 | 573 | |||||||||||
Construction and Land Development | 15 | 11 | 264 | 282 | |||||||||||
Residential | 672 | 72 | 1,312 | 217 | |||||||||||
Consumer and other | — | 25 | 2 | 59 | |||||||||||
Total recoveries of loans | 844 | 283 | 2,071 | 1,426 | |||||||||||
Net loan chargeoffs | (3,130 | ) | (4,675 | ) | (6,608 | ) | (13,177 | ) | |||||||
Provision for loan losses | 1,048 | 5,400 | 2,841 | 13,300 | |||||||||||
Allowance at end of period, for loans not covered under FDIC loss share | $ | 34,222 | $ | 42,882 | $ | 34,222 | $ | 42,882 | |||||||
Allowance at beginning of period, for loans covered under FDIC loss share | $ | 1,889 | $ | — | $ | 1,635 | $ | — | |||||||
Loans charged off | (1,627 | ) | (103 | ) | (3,689 | ) | (378 | ) | |||||||
Recoveries of loans | 10 | — | 16 | — | |||||||||||
Other | (59 | ) | — | (240 | ) | — | |||||||||
Net loan chargeoffs | (1,676 | ) | (103 | ) | (3,913 | ) | (378 | ) | |||||||
Provision for loan losses | 10,889 | 2,672 | 13,380 | 2,947 | |||||||||||
Allowance at end of period, for loans covered under FDIC loss share | $ | 11,102 | $ | 2,569 | $ | 11,102 | $ | 2,569 | |||||||
Total Allowance at end of period | $ | 45,324 | $ | 45,451 | $ | 45,324 | $ | 45,451 | |||||||
Excludes loans covered under FDIC loss share | |||||||||||||||
Average loans | $ | 1,955,557 | $ | 1,838,491 | $ | 1,930,339 | $ | 1,800,115 | |||||||
Total portfolio loans | 1,987,166 | 1,867,956 | 1,987,166 | 1,867,956 | |||||||||||
Net chargeoffs to average loans | 0.64 | % | 1.01 | % | 0.46 | % | 0.98 | % | |||||||
Allowance for loan losses to loans | 1.72 | 2.30 | 1.72 | 2.30 | |||||||||||
September 30, | September 30, | ||||||
(in thousands) | 2012 | 2011 | |||||
Non-accrual loans | $ | 27,346 | $ | 35,698 | |||
Loans past due 90 days or more and still accruing interest | — | — | |||||
Restructured loans | 4,712 | 12,340 | |||||
Total nonperforming loans | 32,058 | 48,038 | |||||
Foreclosed property (1) | 12,549 | 21,370 | |||||
Other bank owned assets | — | — | |||||
Total nonperforming assets (1) | $ | 44,607 | $ | 69,408 | |||
Excludes assets covered under FDIC loss share | |||||||
Total assets | $ | 3,193,692 | $ | 3,348,784 | |||
Total portfolio loans | 1,987,166 | 1,867,956 | |||||
Total loans plus foreclosed property | 1,999,715 | 1,889,326 | |||||
Nonperforming loans to total loans | 1.61 | % | 2.57 | % | |||
Nonperforming assets to total loans plus foreclosed property | 2.23 | 3.67 | |||||
Nonperforming assets to total assets (1) | 1.40 | 2.07 | |||||
Allowance for loan losses to nonperforming loans | 107.00 | % | 89.00 | % |
(1) | Excludes assets covered under FDIC shared-loss agreements, except for their inclusion in total assets. |
(in thousands) | September 30, 2012 | June 30, 2012 | March 31, 2012 | December 31, 2011 | |||||||||||
Construction and Land Development | $ | 10,095 | $ | 11,278 | $ | 12,109 | $ | 14,767 | |||||||
Commercial Real Estate | 15,231 | 20,067 | 21,225 | 15,699 | |||||||||||
Residential Real Estate | 3,883 | 4,543 | 4,631 | 5,522 | |||||||||||
Commercial & Industrial | 2,849 | 4,667 | 9,219 | 5,634 | |||||||||||
Consumer & Other | — | — | — | — | |||||||||||
Total | $ | 32,058 | $ | 40,555 | $ | 47,184 | $ | 41,622 |
2012 | 2011 | ||||||||||||||||||
(in thousands) | 3rd Qtr | 2nd Qtr | 1st Qtr | Year to date | Year to date | ||||||||||||||
Nonperforming loans beginning of period | $ | 40,555 | $ | 47,184 | $ | 41,622 | $ | 41,622 | $ | 46,357 | |||||||||
Additions to nonaccrual loans | 9,336 | 1,073 | 12,110 | 22,519 | 39,009 | ||||||||||||||
Additions to restructured loans | 415 | 243 | 4,365 | 5,023 | 5,119 | ||||||||||||||
Chargeoffs | (3,974 | ) | (1,971 | ) | (2,734 | ) | (8,679 | ) | (14,593 | ) | |||||||||
Other principal reductions | (9,786 | ) | (4,612 | ) | (3,608 | ) | (18,006 | ) | (13,820 | ) | |||||||||
Moved to Other real estate | (4,488 | ) | (1,059 | ) | (3,816 | ) | (9,363 | ) | (10,105 | ) | |||||||||
Moved to performing | — | (303 | ) | — | (303 | ) | (3,929 | ) | |||||||||||
Loans past due 90 days or more and still accruing interest | — | — | (755 | ) | (755 | ) | — | ||||||||||||
Nonperforming loans end of period | $ | 32,058 | $ | 40,555 | $ | 47,184 | $ | 32,058 | $ | 48,038 |
2012 | 2011 | ||||||||||||||||||
(in thousands) | 3rd Qtr | 2nd Qtr | 1st Qtr | Year to date | Year to date | ||||||||||||||
Other real estate beginning of period | $ | 37,275 | $ | 45,380 | $ | 53,688 | $ | 53,688 | $ | 36,208 | |||||||||
Additions and expenses capitalized to prepare property for sale | 4,488 | 2,109 | 3,816 | 10,413 | 10,105 | ||||||||||||||
Additions from FDIC assisted transactions | 1,830 | 4,234 | 3,322 | 9,386 | 57,917 | ||||||||||||||
Writedowns in value | (620 | ) | (1,012 | ) | (2,052 | ) | (3,684 | ) | (6,361 | ) | |||||||||
Sales | (11,614 | ) | (13,436 | ) | (13,394 | ) | (38,444 | ) | (25,306 | ) | |||||||||
Other real estate end of period | $ | 31,359 | $ | 37,275 | $ | 45,380 | $ | 31,359 | $ | 72,563 |
• | Wealth Management revenue – For the three and nine months ended September 30, 2012, Wealth Management revenue from the Trust division decreased $7,000 and increased $352,000, or 7%, over the same periods in 2011, respectively. Assets under administration were $1.6 billion at September 30, 2012, a 14% increase from September 30, 2011, due to market value increases and additional accounts from new clients. |
• | Service charges and other fee income – For the three and nine months ended September 30, 2012, service charges and other fee income increased $336,000 and $1.3 million, respectively, compared to the same period in 2011 due to an increase in service charges on business accounts, debit card and credit card income, and overdraft fees. The $1.3 million increase in these fees for the nine months ended September 30, 2012 is primarily due to the acquisition of FNB. |
• | Sale of Other real estate – For the quarter ended September 30, 2012, we sold $11.6 million of Other real estate for a gain of $739,000 which included a gain of $705,000 from Other real estate not covered by loss share agreements and a gain of $34,000 from Other real estate covered by loss share agreements. Year-to-date through September 30, 2012, we have sold $38.4 million of Other real estate for a net gain of $3.2 million which included a gain of $1.2 million from Other real estate not covered by loss share agreements and a gain of $2.0 million from other real estate covered by loss share agreements. For the year-to-date period in 2011, we sold $25.3 million of Other real estate for a net gain of $1.0 million. |
• | State tax credit brokerage activities – For the quarter ended September 30, 2012, the Company recorded a gain of $256,000 compared to a gain of $1.4 million in the third quarter of 2011. For the nine months ended September 30, 2012, the Company recorded a gain of $1.2 million compared to a gain of $2.5 million for the nine months ended September 30, 2011. The decrease in both periods is due to lower sales volume of client purchases of the state tax credits and lower net mark-to-market gains on those tax credits held at fair value. For more information on the fair value treatment of the state tax credits, see Note 8 – Fair Value Measurements. |
• | Sale of investment securities – During the first nine months of 2012, the Company realized approximately $110.9 million of proceeds on the sale of investment securities, generating a net gain of $1.2 million. |
• | Change in FDIC loss share receivable – Our four shared-loss agreements with the FDIC have provisions by which the FDIC is required to reimburse us for certain loan losses including up to 90 days of accrued but unpaid interest and direct expenses related to the resolution of assets incurring a loss. Generally, the agreements carry terms of five years from date of acquisition for non-single family or commercial assets and ten years from date of acquisition for single family assets. The shared loss agreements with the FDIC for the HNB and Legacy bank |
• | common equity Tier 1 capital to total risk-weighted assets of 7.0% (4.5% plus a capital conservation buffer of 2.5%); |
• | Tier 1 capital to total risk-weighted assets of 8.5% (6% plus a capital conservation buffer of 2.5%); |
• | total capital to total risk-weighted assets of 10.5% (8% plus a capital conservation buffer of 2.5%); and |
• | Tier 1 capital to adjusted average total assets (leverage ratio) of 4%. |
(Dollars in thousands) | September 30, 2012 | December 31, 2011 | |||||
Tier 1 capital to risk weighted assets | 12.75 | % | 12.40 | % | |||
Total capital to risk weighted assets | 14.12 | % | 13.78 | % | |||
Tier 1 common equity to risk weighted assets | 7.91 | % | 7.32 | % | |||
Leverage ratio (Tier 1 capital to average tangible assets) | 9.53 | % | 8.26 | % | |||
Tangible common equity to tangible assets | 6.19 | % | 4.99 | % | |||
Tier 1 capital | $ | 300,104 | $ | 276,275 | |||
Total risk-based capital | $ | 332,216 | $ | 306,996 |
(In thousands) | September 30, 2012 | December 31, 2011 | |||||
Total shareholders' equity | $ | 267,516 | $ | 239,565 | |||
Less: Preferred stock | (33,914 | ) | (33,293 | ) | |||
Less: Goodwill | (30,334 | ) | (30,334 | ) | |||
Less: Intangible assets | (7,846 | ) | (9,285 | ) | |||
Tangible common equity | $ | 195,422 | $ | 166,653 | |||
Total assets | $ | 3,193,692 | $ | 3,377,779 | |||
Less: Goodwill | (30,334 | ) | (30,334 | ) | |||
Less: Intangible assets | (7,846 | ) | (9,285 | ) | |||
Tangible assets | $ | 3,155,512 | $ | 3,338,160 | |||
Tangible common equity to tangible assets | 6.19 | % | 4.99 | % |
(In thousands) | September 30, 2012 | December 31, 2011 | |||||
Total shareholders' equity | $ | 267,516 | $ | 239,565 | |||
Less: Goodwill | (30,334 | ) | (30,334 | ) | |||
Less: Intangible assets | (7,846 | ) | (9,285 | ) | |||
Less: Unrealized gains | (9,388 | ) | (3,602 | ) | |||
Plus: Qualifying trust preferred securities | 80,100 | 79,874 | |||||
Other | 56 | 57 | |||||
Tier 1 capital | $ | 300,104 | $ | 276,275 | |||
Less: Preferred stock | (33,914 | ) | (33,293 | ) | |||
Less: Qualifying trust preferred securities | (80,100 | ) | (79,874 | ) | |||
Tier 1 common equity | $ | 186,090 | $ | 163,108 | |||
Total risk weighted assets determined in accordance with prescribed regulatory requirements | 2,353,251 | 2,227,958 | |||||
Tier 1 common equity to risk weighted assets | 7.91 | % | 7.32 | % |
• | Application of the concepts of highest and best use and valuation premise |
• | Introduction of a option to measure groups of offsetting assets and liabilities on a net basis |
• | Incorporation of certain premiums and discounts in fair value measurements |
• | Measurement of the fair value of certain instruments classified in shareholders' equity |
• | Gross amounts of recognized assets and liabilities |
• | Offsetting amounts that determine the net amount presented in the balance sheet |
• | Amounts subject to an enforceable master netting arrangement that were not already included in the disclosure required by (2) above, including |
◦ | Amounts related to recognized financial instruments and other derivative instruments if either (a) management makes an accounting election not to offset the amounts, or (b) the amounts do not meet |
◦ | Amounts related to financial collateral |
• | Net amounts after deducting the amounts in (4) from the amounts in (3) above |
(in thousands) | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Beyond 5 years or no stated maturity | Total | ||||||||||||||||||||
Interest-Earning Assets | |||||||||||||||||||||||||||
Securities available for sale | $ | 159,367 | $ | 66,518 | $ | 46,282 | $ | 45,211 | $ | 125,820 | $ | 167,159 | $ | 610,357 | |||||||||||||
Other investments | — | — | — | — | — | 16,362 | 16,362 | ||||||||||||||||||||
Interest-bearing deposits | 57,681 | — | — | — | — | — | 57,681 | ||||||||||||||||||||
Federal funds sold | 30 | — | — | — | — | — | 30 | ||||||||||||||||||||
Portfolio loans (1) | 1,658,273 | 245,506 | 147,123 | 85,781 | 58,969 | 12,947 | 2,208,599 | ||||||||||||||||||||
Loans held for sale | 8,245 | — | — | — | — | — | 8,245 | ||||||||||||||||||||
Total interest-earning assets | $ | 1,883,596 | $ | 312,024 | $ | 193,405 | $ | 130,992 | $ | 184,789 | $ | 196,468 | $ | 2,901,274 | |||||||||||||
Interest-Bearing Liabilities | |||||||||||||||||||||||||||
Savings, NOW and Money market deposits | $ | 1,316,670 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 1,316,670 | |||||||||||||
Certificates of deposit | 333,403 | 91,870 | 50,177 | 133,724 | 3,989 | 30 | 613,193 | ||||||||||||||||||||
Subordinated debentures | 56,807 | 28,274 | — | — | — | — | 85,081 | ||||||||||||||||||||
Other borrowings | 193,104 | — | 10,000 | — | 20,000 | 50,000 | 273,104 | ||||||||||||||||||||
Total interest-bearing liabilities | $ | 1,899,984 | $ | 120,144 | $ | 60,177 | $ | 133,724 | $ | 23,989 | $ | 50,030 | $ | 2,288,048 | |||||||||||||
Interest-sensitivity GAP | |||||||||||||||||||||||||||
GAP by period | $ | (16,388 | ) | $ | 191,880 | $ | 133,228 | $ | (2,732 | ) | $ | 160,800 | $ | 146,438 | $ | 613,226 | |||||||||||
Cumulative GAP | $ | (16,388 | ) | $ | 175,492 | $ | 308,720 | $ | 305,988 | $ | 466,788 | $ | 613,226 | $ | 613,226 | ||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities | |||||||||||||||||||||||||||
Periodic | 0.99 | 2.60 | 3.21 | 0.98 | 7.70 | 3.93 | 1.27 | ||||||||||||||||||||
Cumulative GAP as of September 30, 2012 | 0.99 | 1.09 | 1.15 | 1.14 | 1.21 | 1.27 | 1.27 |
(1) | Adjusted for the impact of the interest rate swaps. |
Exhibit Number | Description | |
Registrant hereby agrees to furnish to the Commission, upon request, the instruments defining the rights of holders of each issue of long-term debt of Registrant and its consolidated subsidiaries. | ||
*12.1 | Computation of Ratio of Earnings to Fixed Charges and Preferred Dividends | |
*31.1 | Chief Executive Officer’s Certification required by Rule 13(a)-14(a). | |
*31.2 | Chief Financial Officer’s Certification required by Rule 13(a)-14(a). | |
**32.1 | Chief Executive Officer Certification pursuant to 18 U.S.C. § 1350, as adopted pursuant to section § 906 of the Sarbanes-Oxley Act of 2002. | |
**32.2 | Chief Financial Officer Certification pursuant to 18 U.S.C. § 1350, as adopted pursuant to section § 906 of the Sarbanes-Oxley Act of 2002. | |
***101 | Pursuant to Rule 405 of Regulation S-T, the following financial information from the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2012, is formatted in XBRL interactive data files: (i) Consolidated Balance Sheet at September 30, 2012 and December 31, 2011; (ii) Consolidated Statement of Income for the three months and nine months ended September 30, 2012 and 2011; (iii) Consolidated Statement of Comprehensive Income for the three months and nine months ended September 30, 2012 and 2011; (iv) Consolidated Statement of Changes in Equity and Comprehensive Income for the nine months ended September 30, 2012 and 2011; (v) Consolidated Statement of Cash Flows for the nine months ended September 30, 2012 and 2011; and (vi) Notes to Financial Statements. |
ENTERPRISE FINANCIAL SERVICES CORP | |||
By: | /s/ Peter F. Benoist | ||
Peter F. Benoist | |||
Chief Executive Officer | |||
By: | /s/ Frank H. Sanfilippo | ||
Frank H. Sanfilippo | |||
Chief Financial Officer |
Nine Months Ended September 30, | Years ended December 31, | ||||||||||||||||||
($ in thousands) | 2012 | 2011 | 2010 | 2009 (2) | 2008 | 2007 | |||||||||||||
Earnings (1): | |||||||||||||||||||
Income (loss) before income taxes | $ | 34,625 | $ | 37,372 | $ | 6,396 | $ | (49,321 | ) | $ | 11,738 | $ | 24,044 | ||||||
Add: Fixed charges from below | 20,797 | 33,866 | 35,242 | 51,396 | 60,454 | 69,242 | |||||||||||||
Earnings including interest expense on deposits (a) | $ | 55,422 | $ | 71,238 | $ | 41,638 | $ | 2,075 | $ | 72,192 | $ | 93,286 | |||||||
Less: interest expense on deposits | (12,072 | ) | (21,658 | ) | (22,867 | ) | (30,203 | ) | (39,920 | ) | (52,864 | ) | |||||||
Earnings excluding interest expense on deposits (b) | $ | 43,350 | $ | 49,580 | $ | 18,771 | $ | (28,128 | ) | $ | 32,272 | $ | 40,422 | ||||||
Fixed charges (1): | |||||||||||||||||||
Interest on deposits | $ | 12,072 | $ | 21,658 | $ | 22,867 | $ | 30,203 | $ | 39,920 | $ | 52,864 | |||||||
Interest on borrowings | 5,800 | 8,497 | 9,544 | 18,642 | 20,418 | 16,378 | |||||||||||||
TARP preferred stock dividends (pre-tax) | 2,925 | 3,711 | 2,831 | 2,551 | 116 | — | |||||||||||||
Fixed charges including interest on deposits (c) | $ | 20,797 | $ | 33,866 | $ | 35,242 | $ | 51,396 | $ | 60,454 | $ | 69,242 | |||||||
Less: interest expense on deposits | (12,072 | ) | (21,658 | ) | (22,867 | ) | (30,203 | ) | (39,920 | ) | (52,864 | ) | |||||||
Fixed charges excluding interest expense on deposits (d) | $ | 8,725 | $ | 12,208 | $ | 12,375 | $ | 21,193 | $ | 20,534 | $ | 16,378 | |||||||
Ratio of earnings to combined fixed charges | |||||||||||||||||||
Excluding interest on deposits (b/d) (3) | 4.97x | 4.06x | 1.52x | -1.33x | 1.57x | 2.47x | |||||||||||||
Including interest on deposits (a/c) | 2.66x | 2.10x | 1.18x | 0.04x | 1.19x | 1.35x | |||||||||||||
Ratio of earnings to combined fixed charges and preferred dividends: | |||||||||||||||||||
Excluding interest on deposits (b/d) (3) | 6.97x | 5.40x | 1.67x | -1.65x | 1.57x | 2.47x | |||||||||||||
Including interest on deposits (a/c) | 2.94x | 2.24x | 1.20x | -0.01x | 1.19x | 1.35x |
1. | I have reviewed this quarterly report on Form 10-Q of Enterprise Financial Services Corp; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
By: | /s/ Peter F. Benoist | Date: | November 5, 2012 |
Peter F. Benoist | |||
Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Enterprise Financial Services Corp; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
By: | /s/ Frank H. Sanfilippo | Date: | November 5, 2012 |
Frank H. Sanfilippo | |||
Chief Financial Officer |
Portfolio Loans Not Covered by Loss Share ("Non-covered") - Summary of Aging of Recorded Investment in Past Due Non-covered Loans by Portfolio Class and Category (Details) (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | $ 1,987,166 | $ 1,897,074 |
Non-Covered Loans
|
||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-89 Days Past Due | 2,023 | 10,429 |
90 or More Days Past Due | 11,911 | 20,446 |
Total Past Due | 13,934 | 30,875 |
Current | 1,973,232 | 1,866,199 |
Total | 1,987,144 | 1,897,412 |
Total | 1,987,166 | 1,897,074 |
Non-Covered Loans | Commercial & Industrial
|
||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-89 Days Past Due | 704 | 4,521 |
90 or More Days Past Due | 862 | 792 |
Total Past Due | 1,566 | 5,313 |
Current | 878,828 | 757,889 |
Total | 880,394 | 763,202 |
Non-Covered Loans | Real Estate
|
||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 1,095,056 | 1,122,751 |
Non-Covered Loans | Real Estate | Commercial - Owner Occupied
|
||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-89 Days Past Due | 0 | 1,945 |
90 or More Days Past Due | 344 | 1,522 |
Total Past Due | 344 | 3,467 |
Current | 325,035 | 330,949 |
Total | 325,379 | 334,416 |
Non-Covered Loans | Real Estate | Commercial - Investor Owned
|
||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-89 Days Past Due | 15 | 2,308 |
90 or More Days Past Due | 4,509 | 4,209 |
Total Past Due | 4,524 | 6,517 |
Current | 471,977 | 470,637 |
Total | 476,501 | 477,154 |
Non-Covered Loans | Real Estate | Construction and Land Development
|
||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-89 Days Past Due | 596 | 1,356 |
90 or More Days Past Due | 5,306 | 9,786 |
Total Past Due | 5,902 | 11,142 |
Current | 140,334 | 129,005 |
Total | 146,236 | 140,147 |
Non-Covered Loans | Real Estate | Residential
|
||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-89 Days Past Due | 703 | 299 |
90 or More Days Past Due | 890 | 4,137 |
Total Past Due | 1,593 | 4,436 |
Current | 145,347 | 166,598 |
Total | 146,940 | 171,034 |
Non-Covered Loans | Consumer & Other
|
||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-89 Days Past Due | 5 | 0 |
90 or More Days Past Due | 0 | 0 |
Total Past Due | 5 | 0 |
Current | 11,711 | 11,121 |
Total | 11,694 | 11,459 |
Total | $ 11,716 | $ 11,121 |
Fair Value Measurements - Fair Value, Financial Instruments, Unobservable Input Reconciliation (Details) (Recurring basis, USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
Mar. 31, 2012
|
Mar. 31, 2011
|
|
Securities available for sale, at fair value
|
||||||
Level 3 Financial Instruments Measured at Fair Value | ||||||
Beginning balance | $ 3,042 | $ 2,994 | $ 6,763 | $ 7,520 | ||
Total gains (losses): | ||||||
Included in other comprehensive income | 5 | 5 | 20 | 34 | ||
Purchases, sales, issuances and settlements: | ||||||
Purchases | 0 | 4,983 | 0 | 4,983 | ||
Transfer in and/or out of Level 3 | 0 | 0 | (3,736) | (4,555) | ||
Ending Balance | 3,047 | 7,982 | 3,047 | 7,982 | ||
Change in unrealized gains relating to assets still held at the reporting date | 5 | 5 | 20 | 34 | ||
State tax credits held for sale
|
||||||
Level 3 Financial Instruments Measured at Fair Value | ||||||
Beginning balance | 26,350 | 31,576 | 24,836 | 29,247 | ||
Total gains (losses): | ||||||
Included in earnings | 264 | 1,211 | 994 | 2,020 | ||
Purchases, sales, issuances and settlements: | ||||||
Sales | (31) | (964) | (2,275) | (4,102) | ||
Ending Balance | 25,069 | 29,494 | 25,069 | 29,494 | 24,836 | 29,247 |
Change in unrealized gains relating to assets still held at the reporting date | $ 257 | $ 975 | $ 439 | $ 1,009 |
Derivative Financial Instruments (Details) (USD $)
|
1 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Feb. 28, 2010
|
Feb. 28, 2009
swap_agreement
|
Nov. 30, 2008
|
Sep. 30, 2011
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Dec. 31, 2011
|
Sep. 30, 2012
Non-designated hedging instruments
Risk Management
Interest rate cap contracts
|
Dec. 31, 2011
Non-designated hedging instruments
Risk Management
Interest rate cap contracts
|
Sep. 30, 2012
Non-designated hedging instruments
Risk Management
Gain on state tax credits, net
Interest rate cap contracts
|
Sep. 30, 2011
Non-designated hedging instruments
Risk Management
Gain on state tax credits, net
Interest rate cap contracts
|
Sep. 30, 2012
Non-designated hedging instruments
Risk Management
Gain on state tax credits, net
Interest rate cap contracts
|
Sep. 30, 2011
Non-designated hedging instruments
Risk Management
Gain on state tax credits, net
Interest rate cap contracts
|
Sep. 30, 2012
Non-designated hedging instruments
Risk Management
Miscellaneous income
Interest rate swap contracts
|
Sep. 30, 2011
Non-designated hedging instruments
Risk Management
Miscellaneous income
Interest rate swap contracts
|
Sep. 30, 2012
Non-designated hedging instruments
Risk Management
Miscellaneous income
Interest rate swap contracts
|
Sep. 30, 2011
Non-designated hedging instruments
Risk Management
Miscellaneous income
Interest rate swap contracts
|
Sep. 30, 2012
Non-designated hedging instruments
Risk Management
Other Assets
Interest rate cap contracts
|
Dec. 31, 2011
Non-designated hedging instruments
Risk Management
Other Assets
Interest rate cap contracts
|
Sep. 30, 2012
Non-designated hedging instruments
Risk Management
Other Liabilities
Interest rate cap contracts
|
Dec. 31, 2011
Non-designated hedging instruments
Risk Management
Other Liabilities
Interest rate cap contracts
|
Sep. 30, 2012
Non-designated hedging instruments
Client-Related
Interest rate swap contracts
|
Dec. 31, 2011
Non-designated hedging instruments
Client-Related
Interest rate swap contracts
|
Sep. 30, 2012
Non-designated hedging instruments
Client-Related
Foreign exchange forward contracts
|
Dec. 31, 2011
Non-designated hedging instruments
Client-Related
Foreign exchange forward contracts
|
Sep. 30, 2012
Non-designated hedging instruments
Client-Related
Interest and fees on loans
Interest rate swap contracts
|
Sep. 30, 2011
Non-designated hedging instruments
Client-Related
Interest and fees on loans
Interest rate swap contracts
|
Sep. 30, 2012
Non-designated hedging instruments
Client-Related
Interest and fees on loans
Interest rate swap contracts
|
Sep. 30, 2011
Non-designated hedging instruments
Client-Related
Interest and fees on loans
Interest rate swap contracts
|
Sep. 30, 2012
Non-designated hedging instruments
Client-Related
Other Assets
Interest rate swap contracts
|
Dec. 31, 2011
Non-designated hedging instruments
Client-Related
Other Assets
Interest rate swap contracts
|
Sep. 30, 2012
Non-designated hedging instruments
Client-Related
Other Assets
Foreign exchange forward contracts
|
Dec. 31, 2011
Non-designated hedging instruments
Client-Related
Other Assets
Foreign exchange forward contracts
|
Sep. 30, 2012
Non-designated hedging instruments
Client-Related
Other Liabilities
Interest rate swap contracts
|
Dec. 31, 2011
Non-designated hedging instruments
Client-Related
Other Liabilities
Interest rate swap contracts
|
Sep. 30, 2012
Non-designated hedging instruments
Client-Related
Other Liabilities
Foreign exchange forward contracts
|
Dec. 31, 2011
Non-designated hedging instruments
Client-Related
Other Liabilities
Foreign exchange forward contracts
|
|
Derivative [Line Items] | |||||||||||||||||||||||||||||||||||||
Unrealized Gain Derivative Instruments | $ 3,400,000 | ||||||||||||||||||||||||||||||||||||
Derivative, Collateral, Right to Reclaim Cash | 3,800,000 | 2,700,000 | |||||||||||||||||||||||||||||||||||
Amount Paid to Enter Into a Series of Interest Rate Caps | 751,000 | 2,100,000 | |||||||||||||||||||||||||||||||||||
Number of Interest Rate Swaps Previously Held But Now Terminated | 2 | ||||||||||||||||||||||||||||||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, before Tax | 44,000 | 132,000 | |||||||||||||||||||||||||||||||||||
Unrealized Gain on Derivatives to Be Reclassified in Future Periods | 0 | ||||||||||||||||||||||||||||||||||||
Summary of Derivative Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||
Notional Amount | 49,050,000 | 80,050,000 | 142,773,000 | 65,077,000 | 1,142,000 | 0 | |||||||||||||||||||||||||||||||
Asset Derivatives, Fair Value | 14,000 | 94,000 | 2,265,000 | 1,095,000 | 1,142,000 | 0 | |||||||||||||||||||||||||||||||
Liability Derivatives, Fair Value | 0 | 0 | 2,626,000 | 1,796,000 | 1,142,000 | 0 | |||||||||||||||||||||||||||||||
Amount of Gain or (Loss) Recognized in Operations on Derivative | $ (14,000) | $ (176,000) | $ (79,000) | $ (410,000) | $ 0 | $ 44,000 | $ 0 | $ 132,000 | $ (103,000) | $ (160,000) | $ (354,000) | $ (451,000) |
Portfolio Loans Not Covered by Loss Share ("Non-covered") - Summary of Allowance for Loan Losses for Non-covered Loans by Portfolio Class and Category (Details) (Non-Covered Loans, USD $)
In Thousands, unless otherwise specified |
3 Months Ended | ||
---|---|---|---|
Sep. 30, 2012
|
Jun. 30, 2012
|
Mar. 31, 2012
|
|
Allowance for Loan Losses [Roll Forward] | |||
Balance | $ 36,304 | $ 37,596 | $ 37,989 |
Provision charged to expense | 1,048 | 75 | 1,718 |
Losses charged off | (3,974) | (1,971) | (2,734) |
Recoveries | 844 | 604 | 623 |
Balance | 34,222 | 36,304 | 37,596 |
Commercial & Industrial
|
|||
Allowance for Loan Losses [Roll Forward] | |||
Balance | 8,981 | 12,385 | 11,945 |
Provision charged to expense | (204) | (3,201) | 929 |
Losses charged off | (1,479) | (406) | (585) |
Recoveries | 142 | 203 | 96 |
Balance | 7,440 | 8,981 | 12,385 |
Real Estate | Commercial Real Estate Owner Occupied
|
|||
Allowance for Loan Losses [Roll Forward] | |||
Balance | 5,306 | 6,784 | 6,297 |
Provision charged to expense | (738) | (744) | 1,231 |
Losses charged off | (625) | (739) | (746) |
Recoveries | 1 | 5 | 2 |
Balance | 3,944 | 5,306 | 6,784 |
Real Estate | Commercial Real Estate Investor Owned
|
|||
Allowance for Loan Losses [Roll Forward] | |||
Balance | 10,222 | 6,797 | 6,751 |
Provision charged to expense | 604 | 3,518 | 216 |
Losses charged off | (639) | (108) | (185) |
Recoveries | 14 | 15 | 15 |
Balance | 10,201 | 10,222 | 6,797 |
Real Estate | Construction and Land Development
|
|||
Allowance for Loan Losses [Roll Forward] | |||
Balance | 5,449 | 5,412 | 5,847 |
Provision charged to expense | 2,551 | 442 | 269 |
Losses charged off | (949) | (502) | (856) |
Recoveries | 15 | 97 | 152 |
Balance | 7,066 | 5,449 | 5,412 |
Real Estate | Residential Real Estate
|
|||
Allowance for Loan Losses [Roll Forward] | |||
Balance | 3,249 | 3,370 | 3,931 |
Provision charged to expense | (1,202) | (189) | (555) |
Losses charged off | (282) | (216) | (362) |
Recoveries | 672 | 284 | 356 |
Balance | 2,437 | 3,249 | 3,370 |
Consumer & Other
|
|||
Allowance for Loan Losses [Roll Forward] | |||
Balance | 19 | 16 | 14 |
Provision charged to expense | 4 | 3 | 0 |
Losses charged off | 0 | 0 | 0 |
Recoveries | 0 | 0 | 2 |
Balance | 23 | 19 | 16 |
Qualitative Adjustment
|
|||
Allowance for Loan Losses [Roll Forward] | |||
Balance | 3,078 | 2,832 | 3,204 |
Provision charged to expense | 33 | 246 | (372) |
Losses charged off | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Balance | $ 3,111 | $ 3,078 | $ 2,832 |
Fair Value Measurements (Tables)
|
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2012
|
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments Measured at Fair Value on a Recurring Basis | The following table summarizes financial instruments measured at fair value on a recurring basis as of September 30, 2012, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Financial Instruments, Unobservable Input Reconciliation |
|
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Fair Value Measurements, Nonrecurring | The following table presents financial instruments and non-financial assets measured at fair value on a non-recurring basis as of September 30, 2012.
(1) The amounts represent only balances measured at fair value during the period and still held as of the reporting date. |
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Summary of Carrying Amount and Fair Values of Financial Instruments Reported on the Balance Sheets | Following is a summary of the carrying amounts and fair values of the Company’s financial instruments on the consolidated balance sheets at September 30, 2012, and December 31, 2011.
|
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Estimate of the Fair Value of Financial Instruments Not Recorded at Fair Value on Balance Sheet | The following table presents the level in the fair value hierarchy for the estimated fair values of only the Company’s financial instruments that are not already on the condensed consolidated balance sheets at fair value at September 30, 2012, and December 31, 2011.
|
Portfolio Loans Covered by Loss Share (Covered loans) - Allowance for Credit Losses on Financing Receivables (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2012
|
Dec. 31, 2011
|
Sep. 30, 2012
Covered Loans
|
Sep. 30, 2011
Covered Loans
|
Sep. 30, 2012
Covered Loans
|
Sep. 30, 2011
Covered Loans
|
|
Summary of Activity in the Allowance for Loan Losses for Covered Loans [Roll Forward] | ||||||
Balance at beginning of period | $ 11,102 | $ 1,635 | $ 1,889 | $ 0 | $ 1,635 | $ 0 |
Provision charged to expense | 10,889 | 2,672 | 13,380 | 2,947 | ||
Loans charged off | (1,627) | (103) | (3,689) | (378) | ||
Recoveries | 10 | 0 | 16 | 0 | ||
Other | (59) | 0 | (240) | 0 | ||
Balance at beginning of period | $ 11,102 | $ 1,635 | $ 11,102 | $ 2,569 | $ 11,102 | $ 2,569 |
Segment Reporting (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
segment
|
Sep. 30, 2011
|
Dec. 31, 2011
|
|
Segment Reporting [Abstract] | |||||
Number of Primary Operating Segments | 2 | ||||
Number of Reportable Segments | 3 | ||||
Segment Reporting Information [Line Items] | |||||
Portfolio loans | $ 2,208,599 | $ 2,208,599 | $ 2,197,684 | ||
Goodwill | 30,334 | 30,334 | 30,334 | ||
Intangibles, net | 7,846 | 7,846 | 9,285 | ||
Deposits | 2,550,933 | 2,550,933 | 2,791,353 | ||
Borrowings | 358,185 | 358,185 | 341,626 | ||
Total assets | 3,193,692 | 3,193,692 | 3,377,779 | ||
Income Statement Information | |||||
Net interest income (expense) | 37,484 | 26,769 | 102,246 | 80,481 | |
Provision for loan losses | 11,937 | 8,072 | 16,221 | 16,247 | |
Noninterest Income | 7,832 | 8,726 | 12,660 | 17,907 | |
Noninterest Expense | 21,282 | 18,302 | 64,060 | 54,291 | |
Income before income tax expense | 12,097 | 9,121 | 34,625 | 27,850 | |
Banking
|
|||||
Segment Reporting Information [Line Items] | |||||
Portfolio loans | 2,208,599 | 2,208,599 | 2,197,684 | ||
Goodwill | 30,334 | 30,334 | 30,334 | ||
Intangibles, net | 7,846 | 7,846 | 9,285 | ||
Deposits | 2,535,930 | 2,535,930 | 2,773,482 | ||
Borrowings | 215,051 | 215,051 | 213,480 | ||
Total assets | 3,075,740 | 3,075,740 | 3,278,328 | ||
Income Statement Information | |||||
Net interest income (expense) | 38,627 | 28,105 | 105,646 | 84,511 | |
Provision for loan losses | 11,937 | 8,072 | 16,221 | 16,247 | |
Noninterest Income | 5,418 | 5,105 | 5,571 | 9,721 | |
Noninterest Expense | 18,063 | 15,454 | 54,424 | 45,639 | |
Income before income tax expense | 14,045 | 9,684 | 40,572 | 32,346 | |
Wealth Management
|
|||||
Segment Reporting Information [Line Items] | |||||
Portfolio loans | 0 | 0 | 0 | ||
Goodwill | 0 | 0 | 0 | ||
Intangibles, net | 0 | 0 | 0 | ||
Deposits | 30,688 | 30,688 | 39,440 | ||
Borrowings | 60,553 | 60,553 | 45,565 | ||
Total assets | 96,660 | 96,660 | 90,068 | ||
Income Statement Information | |||||
Net interest income (expense) | (252) | (304) | (566) | (941) | |
Provision for loan losses | 0 | 0 | 0 | 0 | |
Noninterest Income | 2,088 | 3,201 | 6,718 | 7,683 | |
Noninterest Expense | 1,968 | 2,016 | 5,761 | 5,914 | |
Income before income tax expense | (132) | 881 | 391 | 828 | |
Corporate and Intercompany
|
|||||
Segment Reporting Information [Line Items] | |||||
Portfolio loans | 0 | 0 | 0 | ||
Goodwill | 0 | 0 | 0 | ||
Intangibles, net | 0 | 0 | 0 | ||
Deposits | (15,685) | (15,685) | (21,569) | ||
Borrowings | 82,581 | 82,581 | 82,581 | ||
Total assets | 21,292 | 21,292 | 9,383 | ||
Income Statement Information | |||||
Net interest income (expense) | (891) | (1,032) | (2,834) | (3,089) | |
Provision for loan losses | 0 | 0 | 0 | 0 | |
Noninterest Income | 326 | 420 | 371 | 503 | |
Noninterest Expense | 1,251 | 832 | 3,875 | 2,738 | |
Income before income tax expense | $ (1,816) | $ (1,444) | $ (6,338) | $ (5,324) |
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