þ
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2012
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|
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or
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________.
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Large accelerated filer þ
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Accelerated filer o
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Non-accelerated filer o
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Smaller reporting company o
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(Do not check if a smaller reporting company)
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Title of Class
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Shares outstanding as of July 26, 2012
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Common Stock,
No Par Value
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27,564,656
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Page
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PART I - FINANCIAL INFORMATION | |
PART II - OTHER INFORMATION
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Exhibit 31.1 - Certification of Chief Executive Officer pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a)
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53
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Exhibit 31.2 - Certification of Chief Financial Officer pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a)
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54
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Exhibit 32.1 - Certification of Chief Executive Officer Required by 18 U.S.C. Section 1350
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55
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Exhibit 32.2 - Certification of Chief Financial Officer Required by 18 U.S.C. Section 1350
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56
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WESTAMERICA BANCORPORATION
|
||||||||
CONSOLIDATED BALANCE SHEETS
|
||||||||
(unaudited)
|
||||||||
At June 30,
|
At December 31,
|
|||||||
2012
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2011
|
|||||||
(In thousands)
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||||||||
Assets:
|
||||||||
Cash and due from banks
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$ | 320,925 | $ | 530,045 | ||||
Investment securities available for sale
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708,717 | 638,753 | ||||||
Investment securities held to maturity, with fair values of: $1,232,813 at June 30, 2012, $947,493 at December 31, 2011
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1,206,646 | 922,803 | ||||||
Purchased covered loans
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463,251 | 535,278 | ||||||
Purchased non-covered loans
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102,390 | 125,921 | ||||||
Originated loans
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1,751,578 | 1,862,607 | ||||||
Allowance for loan losses
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(31,523 | ) | (32,597 | ) | ||||
Total loans
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2,285,696 | 2,491,209 | ||||||
Non-covered other real estate owned
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17,585 | 26,500 | ||||||
Covered other real estate owned
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14,608 | 19,135 | ||||||
Premises and equipment, net
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37,867 | 36,548 | ||||||
Identifiable intangibles, net
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25,888 | 28,629 | ||||||
Goodwill
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121,673 | 121,673 | ||||||
Other assets
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213,525 | 226,866 | ||||||
Total Assets
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$ | 4,953,130 | $ | 5,042,161 | ||||
Liabilities:
|
||||||||
Deposits:
|
||||||||
Noninterest bearing deposits
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$ | 1,573,188 | $ | 1,562,254 | ||||
Interest bearing deposits:
|
||||||||
Transaction
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742,633 | 734,988 | ||||||
Savings
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1,136,876 | 1,148,178 | ||||||
Time
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755,802 | 804,501 | ||||||
Total deposits
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4,208,499 | 4,249,921 | ||||||
Short-term borrowed funds
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81,582 | 115,689 | ||||||
Federal Home Loan Bank advances
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25,911 | 26,023 | ||||||
Term repurchase agreement
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10,000 | 10,000 | ||||||
Debt financing
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15,000 | 15,000 | ||||||
Other liabilities
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54,212 | 66,887 | ||||||
Total Liabilities
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4,395,204 | 4,483,520 | ||||||
Shareholders' Equity:
|
||||||||
Common stock (no par value), authorized - 150,000 shares
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||||||||
Issued and outstanding: 27,621 at June 30, 2012, 28,150 at December 31, 2011
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372,631 | 377,775 | ||||||
Deferred compensation
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3,101 | 3,060 | ||||||
Accumulated other comprehensive income
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13,030 | 11,369 | ||||||
Retained earnings
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169,164 | 166,437 | ||||||
Total Shareholders' Equity
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557,926 | 558,641 | ||||||
Total Liabilities and Shareholders' Equity
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$ | 4,953,130 | $ | 5,042,161 |
WESTAMERICA BANCORPORATION
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||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME
|
||||||||||||||||
(unaudited)
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||||||||||||||||
For the Three Months
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For the Six Months
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|||||||||||||||
Ended June 30,
|
||||||||||||||||
2012
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2011
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2012
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2011
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|||||||||||||
(In thousands, except per share data)
|
||||||||||||||||
Interest and Fee Income:
|
||||||||||||||||
Loans
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$ | 33,745 | $ | 41,272 | $ | 69,401 | $ | 82,635 | ||||||||
Investment securities available for sale
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4,938 | 5,684 | 9,726 | 10,902 | ||||||||||||
Investment securities held to maturity
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8,218 | 6,132 | 16,072 | 12,045 | ||||||||||||
Total Interest and Fee Income
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46,901 | 53,088 | 95,199 | 105,582 | ||||||||||||
Interest Expense:
|
||||||||||||||||
Deposits
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1,107 | 1,777 | 2,294 | 3,667 | ||||||||||||
Short-term borrowed funds
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21 | 47 | 48 | 109 | ||||||||||||
Term repurchase agreement
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24 | - | 49 | - | ||||||||||||
Federal Home Loan Bank advances
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119 | 128 | 239 | 279 | ||||||||||||
Debt financing and notes payable
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201 | 201 | 401 | 401 | ||||||||||||
Total Interest Expense
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1,472 | 2,153 | 3,031 | 4,456 | ||||||||||||
Net Interest Income
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45,429 | 50,935 | 92,168 | 101,126 | ||||||||||||
Provision for Loan Losses
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2,800 | 2,800 | 5,600 | 5,600 | ||||||||||||
Net Interest Income After Provision For Loan Losses
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42,629 | 48,135 | 86,568 | 95,526 | ||||||||||||
Noninterest Income:
|
||||||||||||||||
Service charges on deposit accounts
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7,027 | 7,577 | 14,122 | 15,098 | ||||||||||||
Merchant processing services
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2,529 | 2,391 | 4,922 | 4,562 | ||||||||||||
Debit card fees
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1,345 | 1,283 | 2,508 | 2,484 | ||||||||||||
ATM processing fees
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932 | 997 | 1,865 | 1,932 | ||||||||||||
Trust fees
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497 | 482 | 986 | 975 | ||||||||||||
Financial services commissions
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194 | 117 | 365 | 146 | ||||||||||||
Loss on sale of securities
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(1,287 | ) | - | (1,287 | ) | - | ||||||||||
Other
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2,296 | 2,445 | 4,721 | 4,838 | ||||||||||||
Total Noninterest Income
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13,533 | 15,292 | 28,202 | 30,035 | ||||||||||||
Noninterest Expense:
|
||||||||||||||||
Salaries and related benefits
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14,494 | 14,913 | 29,540 | 29,988 | ||||||||||||
Occupancy
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3,775 | 4,050 | 7,709 | 8,075 | ||||||||||||
Outsourced data processing services
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2,078 | 2,122 | 4,161 | 4,578 | ||||||||||||
Amortization of identifiable intangibles
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1,339 | 1,480 | 2,741 | 3,028 | ||||||||||||
Furniture and equipment
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1,041 | 1,038 | 1,892 | 1,971 | ||||||||||||
Professional fees
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902 | 1,453 | 1,669 | 2,303 | ||||||||||||
Courier service
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793 | 852 | 1,578 | 1,695 | ||||||||||||
Deposit insurance assessments
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653 | 740 | 1,403 | 1,960 | ||||||||||||
Other real estate owned
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3 | 990 | 233 | 1,135 | ||||||||||||
Settlements
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- | 2,100 | - | 2,100 | ||||||||||||
Other
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4,271 | 4,571 | 8,457 | 8,799 | ||||||||||||
Total Noninterest Expense
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29,349 | 34,309 | 59,383 | 65,632 | ||||||||||||
Income Before Income Taxes
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26,813 | 29,118 | 55,387 | 59,929 | ||||||||||||
Provision for income taxes
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5,849 | 7,849 | 13,418 | 16,278 | ||||||||||||
Net Income
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$ | 20,964 | $ | 21,269 | $ | 41,969 | $ | 43,651 | ||||||||
Average Common Shares Outstanding
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27,744 | 28,771 | 27,897 | 28,895 | ||||||||||||
Diluted Average Common Shares Outstanding
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27,790 | 28,923 | 27,951 | 29,073 | ||||||||||||
Per Common Share Data:
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||||||||||||||||
Basic earnings
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$ | 0.76 | $ | 0.74 | $ | 1.50 | $ | 1.51 | ||||||||
Diluted earnings
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0.75 | 0.74 | 1.50 | 1.50 | ||||||||||||
Dividends paid
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0.37 | 0.36 | 0.74 | 0.72 |
WESTAMERICA BANCORPORATION
|
||||||||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
||||||||||||||||
(unaudited)
|
||||||||||||||||
For the Three Months
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For the Six Months
|
|||||||||||||||
Ended June 30,
|
||||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Net income
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$ | 20,964 | $ | 21,269 | $ | 41,969 | $ | 43,651 | ||||||||
Other comprehensive income:
|
||||||||||||||||
Increase in net unrealized gains on securities available for sale
|
1,451 | 9,861 | 2,835 | 13,931 | ||||||||||||
Deferred tax expense
|
(610 | ) | (4,145 | ) | (1,192 | ) | (5,857 | ) | ||||||||
Increase in net unrealized gains on securities available for sale, net of tax
|
841 | 5,716 | 1,643 | 8,074 | ||||||||||||
Post-retirement benefit transition obligation amortization
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15 | 15 | 30 | 30 | ||||||||||||
Deferred tax expense
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(6 | ) | (6 | ) | (12 | ) | (12 | ) | ||||||||
Post-retirement benefit transition obligation amortization, net of tax
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9 | 9 | 18 | 18 | ||||||||||||
Total other comprehensive income
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850 | 5,725 | 1,661 | 8,092 | ||||||||||||
Total comprehensive income
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$ | 21,814 | $ | 26,994 | $ | 43,630 | $ | 51,743 |
WESTAMERICA BANCORPORATION
|
||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
|
||||||||||||||||||||||||
(unaudited)
|
||||||||||||||||||||||||
Accumulated
|
||||||||||||||||||||||||
Common
|
Accumulated
|
Other
|
||||||||||||||||||||||
Shares
|
Common
|
Deferred
|
Comprehensive
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Retained
|
||||||||||||||||||||
Outstanding
|
Stock
|
Compensation
|
Income
|
Earnings
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Total
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Balance, December 31, 2010
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29,090 | $ | 378,885 | $ | 2,724 | $ | 159 | $ | 163,519 | $ | 545,287 | |||||||||||||
Net income for the period
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43,651 | 43,651 | ||||||||||||||||||||||
Other comprehensive income
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8,092 | 8,092 | ||||||||||||||||||||||
Exercise of stock options
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74 | 3,273 | 3,273 | |||||||||||||||||||||
Tax benefit increase upon exercise of stock options
|
28 | 28 | ||||||||||||||||||||||
Restricted stock activity
|
15 | 455 | 336 | 791 | ||||||||||||||||||||
Stock based compensation
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720 | 720 | ||||||||||||||||||||||
Stock awarded to employees
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1 | 58 | 58 | |||||||||||||||||||||
Purchase and retirement of stock
|
(640 | ) | (8,142 | ) | (23,542 | ) | (31,684 | ) | ||||||||||||||||
Dividends
|
(20,876 | ) | (20,876 | ) | ||||||||||||||||||||
Balance, June 30, 2011
|
28,540 | $ | 375,277 | $ | 3,060 | $ | 8,251 | $ | 162,752 | $ | 549,340 | |||||||||||||
Balance, December 31, 2011
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28,150 | $ | 377,775 | $ | 3,060 | $ | 11,369 | $ | 166,437 | $ | 558,641 | |||||||||||||
Net income for the period
|
41,969 | 41,969 | ||||||||||||||||||||||
Other comprehensive income
|
1,661 | 1,661 | ||||||||||||||||||||||
Exercise of stock options
|
25 | 1,030 | 1,030 | |||||||||||||||||||||
Tax benefit increase upon exercise of stock options
|
2 | 2 | ||||||||||||||||||||||
Restricted stock activity
|
11 | 482 | 41 | 523 | ||||||||||||||||||||
Stock based compensation
|
805 | 805 | ||||||||||||||||||||||
Stock awarded to employees
|
1 | 63 | 63 | |||||||||||||||||||||
Purchase and retirement of stock
|
(566 | ) | (7,526 | ) | (18,555 | ) | (26,081 | ) | ||||||||||||||||
Dividends
|
(20,687 | ) | (20,687 | ) | ||||||||||||||||||||
Balance, June 30, 2012
|
27,621 | $ | 372,631 | $ | 3,101 | $ | 13,030 | $ | 169,164 | $ | 557,926 |
WESTAMERICA BANCORPORATION
|
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
(unaudited)
|
||||||||
For the Six Months
|
||||||||
Ended June 30,
|
||||||||
2012
|
2011
|
|||||||
(In thousands)
|
||||||||
Operating Activities:
|
||||||||
Net income
|
$ | 41,969 | $ | 43,651 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
7,037 | 6,943 | ||||||
Loan loss provision
|
5,600 | 5,600 | ||||||
Net amortization of deferred loan fees
|
(303 | ) | (190 | ) | ||||
Decrease (increase) in interest income receivable
|
1,004 | (161 | ) | |||||
(Increase) decrease in other assets
|
(3,386 | ) | 1,685 | |||||
(Decrease) increase in income taxes payable
|
(1,186 | ) | 212 | |||||
Increase in net deferred tax asset
|
(6,275 | ) | (571 | ) | ||||
Decrease in interest expense payable
|
(129 | ) | (328 | ) | ||||
Increase in other liabilities
|
2,160 | 4,581 | ||||||
Stock option compensation expense
|
805 | 720 | ||||||
Tax benefit increase upon exercise of stock options
|
(2 | ) | (28 | ) | ||||
Loss on sale of securities available for sale
|
1,287 | - | ||||||
Gain on sale of other assets
|
(256 | ) | (800 | ) | ||||
Net writedown (gain) on sale of premises and equipment
|
1 | (127 | ) | |||||
Originations of mortgage loans for resale
|
(27 | ) | (90 | ) | ||||
Net proceeds from sale of mortgage loans originated for resale
|
28 | 93 | ||||||
Net gain on sale of foreclosed assets
|
(2,041 | ) | (193 | ) | ||||
Writedown of foreclosed assets
|
1,925 | 845 | ||||||
Net Cash Provided by Operating Activities
|
48,211 | 61,842 | ||||||
Investing Activities:
|
||||||||
Net repayments of loans
|
194,740 | 146,387 | ||||||
Proceeds from FDIC1 loss-sharing indemnification
|
20,259 | 5,265 | ||||||
Purchases of investment securities available for sale
|
(137,378 | ) | (152,998 | ) | ||||
Purchases of investment securities held to maturity
|
(405,281 | ) | (128,294 | ) | ||||
Proceeds from sale/maturity/calls of securities available for sale
|
70,249 | 122,645 | ||||||
Proceeds from maturity/calls of securities held to maturity
|
106,080 | 41,749 | ||||||
Net change in FRB2/FHLB3 securities
|
895 | (13,158 | ) | |||||
Proceeds from sale of foreclosed assets
|
16,632 | 6,734 | ||||||
Purchases of premises and equipment
|
(2,637 | ) | (250 | ) | ||||
Proceeds from sale of premises and equipment
|
- | 169 | ||||||
Net Cash (Used in) Provided by Investing Activities
|
(136,441 | ) | 28,249 | |||||
Financing Activities:
|
||||||||
Net change in deposits
|
(41,048 | ) | (43,848 | ) | ||||
Net change in short-term borrowings and FHLB3 advances
|
(34,106 | ) | (15,658 | ) | ||||
Exercise of stock options
|
1,030 | 3,273 | ||||||
Tax benefit increase upon exercise of stock options
|
2 | 28 | ||||||
Repurchases/retirement of stock
|
(26,081 | ) | (31,684 | ) | ||||
Dividends paid
|
(20,687 | ) | (20,876 | ) | ||||
Net Cash Used in Financing Activities
|
(120,890 | ) | (108,765 | ) | ||||
Net Change In Cash and Due from Banks
|
(209,120 | ) | (18,674 | ) | ||||
Cash and Due from Banks at Beginning of Period
|
530,045 | 338,793 | ||||||
Cash and Due from Banks at End of Period
|
$ | 320,925 | $ | 320,119 | ||||
Supplemental Cash Flow Disclosures:
|
||||||||
Supplemental disclosure of non cash activities:
|
||||||||
Loan collateral transferred to other real estate owned
|
$ | 4,108 | $ | 14,637 | ||||
Supplemental disclosure of cash flow activities:
|
||||||||
Interest paid for the period
|
3,602 | 6,299 | ||||||
Income tax payments for the period
|
21,631 | 16,638 |
Investment Securities Available for Sale
|
||||||||||||||||
At June 30, 2012
|
||||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
U.S. Treasury securities
|
$ | 3,528 | $ | 45 | $ | - | $ | 3,573 | ||||||||
Securities of U.S. Government sponsored entities
|
100,493 | 407 | (1 | ) | 100,899 | |||||||||||
Residential mortgage-backed securities
|
72,394 | 5,046 | (2 | ) | 77,438 | |||||||||||
Commercial mortgage-backed securities
|
4,306 | 64 | - | 4,370 | ||||||||||||
Obligations of States and political subdivisions
|
223,237 | 13,234 | (279 | ) | 236,192 | |||||||||||
Residential collateralized mortgage obligations
|
43,959 | 1,646 | - | 45,605 | ||||||||||||
Asset-backed securities
|
16,964 | - | (218 | ) | 16,746 | |||||||||||
FHLMC and FNMA stock
|
824 | 1,871 | (4 | ) | 2,691 | |||||||||||
Corporate securities
|
217,952 | 818 | (2,078 | ) | 216,692 | |||||||||||
Other securities
|
2,236 | 2,325 | (50 | ) | 4,511 | |||||||||||
Total
|
$ | 685,893 | $ | 25,456 | $ | (2,632 | ) | $ | 708,717 |
Investment Securities Held to Maturity
|
||||||||||||||||
At June 30, 2012
|
||||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Securities of U.S. Government sponsored entities
|
$ | 4,287 | $ | 29 | $ | - | $ | 4,316 | ||||||||
Residential mortgage-backed securities
|
82,346 | 1,896 | (73 | ) | 84,169 | |||||||||||
Obligations of States and political subdivisions
|
667,386 | 21,826 | (882 | ) | 688,330 | |||||||||||
Residential collateralized mortgage obligations
|
452,627 | 3,982 | (611 | ) | 455,998 | |||||||||||
Total
|
$ | 1,206,646 | $ | 27,733 | $ | (1,566 | ) | $ | 1,232,813 |
Investment Securities Available for Sale
|
||||||||||||||||
At December 31, 2011
|
||||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
U.S. Treasury securities
|
$ | 3,537 | $ | 59 | $ | - | $ | 3,596 | ||||||||
Securities of U.S. Government sponsored entities
|
117,150 | 375 | (53 | ) | 117,472 | |||||||||||
Residential mortgage-backed securities
|
84,961 | 5,457 | (10 | ) | 90,408 | |||||||||||
Commercial mortgage-backed securities
|
4,506 | 27 | (3 | ) | 4,530 | |||||||||||
Obligations of States and political subdivisions
|
234,522 | 11,839 | (268 | ) | 246,093 | |||||||||||
Residential collateralized mortgage obligations
|
49,111 | 2,053 | - | 51,164 | ||||||||||||
Asset-backed securities
|
7,566 | - | (260 | ) | 7,306 | |||||||||||
FHLMC and FNMA stock
|
824 | 1,027 | (4 | ) | 1,847 | |||||||||||
Corporate securities
|
114,286 | 203 | (2,290 | ) | 112,199 | |||||||||||
Other securities
|
2,302 | 1,884 | (48 | ) | 4,138 | |||||||||||
Total
|
$ | 618,765 | $ | 22,924 | $ | (2,936 | ) | $ | 638,753 |
Investment Securities Held to Maturity
|
||||||||||||||||
At December 31, 2011
|
||||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Residential mortgage-backed securities
|
$ | 54,869 | $ | 1,532 | $ | (77 | ) | $ | 56,324 | |||||||
Obligations of States and political subdivisions
|
625,390 | 23,581 | (496 | ) | 648,475 | |||||||||||
Residential collateralized mortgage obligations
|
242,544 | 2,781 | (2,631 | ) | 242,694 | |||||||||||
Total
|
$ | 922,803 | $ | 27,894 | $ | (3,204 | ) | $ | 947,493 |
At June 30, 2012
|
||||||||||||||||
Securities Available
|
Securities Held
|
|||||||||||||||
for Sale
|
to Maturity
|
|||||||||||||||
Amortized
|
Fair
|
Amortized
|
Fair
|
|||||||||||||
Cost
|
Value
|
Cost
|
Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Maturity in years:
|
||||||||||||||||
1 year or less
|
$ | 59,556 | $ | 59,810 | $ | 11,269 | $ | 11,344 | ||||||||
Over 1 to 5 years
|
321,842 | 321,762 | 161,587 | 166,300 | ||||||||||||
Over 5 to 10 years
|
55,864 | 58,736 | 269,998 | 280,908 | ||||||||||||
Over 10 years
|
124,912 | 133,794 | 228,819 | 234,094 | ||||||||||||
Subtotal
|
562,174 | 574,102 | 671,673 | 692,646 | ||||||||||||
Mortgage-backed securities and residential collateralized mortgage obligations
|
120,659 | 127,413 | 534,973 | 540,167 | ||||||||||||
Other securities
|
3,060 | 7,202 | - | - | ||||||||||||
Total
|
$ | 685,893 | $ | 708,717 | $ | 1,206,646 | $ | 1,232,813 |
At December 31, 2011
|
||||||||||||||||
Securities Available
|
Securities Held
|
|||||||||||||||
for Sale
|
to Maturity
|
|||||||||||||||
Amortized
|
Fair
|
Amortized
|
Fair
|
|||||||||||||
Cost
|
Value
|
Cost
|
Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Maturity in years:
|
||||||||||||||||
1 year or less
|
$ | 37,785 | $ | 37,967 | $ | 12,056 | $ | 12,121 | ||||||||
Over 1 to 5 years
|
242,766 | 241,945 | 158,438 | 162,791 | ||||||||||||
Over 5 to 10 years
|
63,442 | 65,919 | 307,504 | 321,922 | ||||||||||||
Over 10 years
|
133,068 | 140,835 | 147,392 | 151,641 | ||||||||||||
Subtotal
|
477,061 | 486,666 | 625,390 | 648,475 | ||||||||||||
Mortgage-backed securities and residential collateralized mortgage obligations
|
138,578 | 146,102 | 297,413 | 299,018 | ||||||||||||
Other securities
|
3,126 | 5,985 | - | - | ||||||||||||
Total
|
$ | 618,765 | $ | 638,753 | $ | 922,803 | $ | 947,493 |
Investment Securities Available for Sale
|
||||||||||||||||||||||||
At June 30, 2012
|
||||||||||||||||||||||||
Less than 12 months
|
12 months or longer
|
Total
|
||||||||||||||||||||||
Unrealized
|
Unrealized
|
Unrealized
|
||||||||||||||||||||||
Fair Value
|
Losses
|
Fair Value
|
Losses
|
Fair Value
|
Losses
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Securities of U.S. Government sponsored entities
|
$ | 4,997 | $ | (1 | ) | $ | - | $ | - | $ | 4,997 | $ | (1 | ) | ||||||||||
Residential mortgage-backed securities
|
7 | - | 984 | (2 | ) | 991 | (2 | ) | ||||||||||||||||
Obligations of States and political subdivisions
|
3,663 | (71 | ) | 11,705 | (208 | ) | 15,368 | (279 | ) | |||||||||||||||
Asset-backed securities
|
10,194 | (6 | ) | 6,552 | (212 | ) | 16,746 | (218 | ) | |||||||||||||||
FHLMC and FNMA stock
|
- | - | 1 | (4 | ) | 1 | (4 | ) | ||||||||||||||||
Corporate securities
|
71,028 | (878 | ) | 38,799 | (1,200 | ) | 109,827 | (2,078 | ) | |||||||||||||||
Other securities
|
- | - | 1,951 | (50 | ) | 1,951 | (50 | ) | ||||||||||||||||
Total
|
$ | 89,889 | $ | (956 | ) | $ | 59,992 | $ | (1,676 | ) | $ | 149,881 | $ | (2,632 | ) |
Investment Securities Held to Maturity
|
||||||||||||||||||||||||
At June 30, 2012
|
||||||||||||||||||||||||
Less than 12 months
|
12 months or longer
|
Total
|
||||||||||||||||||||||
Unrealized
|
Unrealized
|
Unrealized
|
||||||||||||||||||||||
Fair Value
|
Losses
|
Fair Value
|
Losses
|
Fair Value
|
Losses
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Residential mortgage-backed securities
|
$ | 21,030 | $ | (73 | ) | $ | - | $ | - | $ | 21,030 | $ | (73 | ) | ||||||||||
Obligations of States and political subdivisions
|
70,381 | (853 | ) | 4,641 | (29 | ) | 75,022 | (882 | ) | |||||||||||||||
Residential collateralized mortgage obligations
|
75,288 | (396 | ) | 13,929 | (215 | ) | 89,217 | (611 | ) | |||||||||||||||
Total
|
$ | 166,699 | $ | (1,322 | ) | $ | 18,570 | $ | (244 | ) | $ | 185,269 | $ | (1,566 | ) |
Investment Securities Available for Sale
|
||||||||||||||||||||||||
At December 31, 2011
|
||||||||||||||||||||||||
Less than 12 months
|
12 months or longer
|
Total
|
||||||||||||||||||||||
Unrealized
|
Unrealized
|
Unrealized
|
||||||||||||||||||||||
Fair Value
|
Losses
|
Fair Value
|
Losses
|
Fair Value
|
Losses
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Securities of U.S. Government sponsored entities
|
$ | 35,051 | $ | (53 | ) | $ | - | $ | - | $ | 35,051 | $ | (53 | ) | ||||||||||
Residential mortgage-backed securities
|
3,443 | (10 | ) | - | - | 3,443 | (10 | ) | ||||||||||||||||
Commercial mortgage-backed securities
|
- | - | 1,347 | (3 | ) | 1,347 | (3 | ) | ||||||||||||||||
Obligations of States and political subdivisions
|
5,803 | (61 | ) | 15,015 | (207 | ) | 20,818 | (268 | ) | |||||||||||||||
Asset-backed securities
|
- | - | 7,306 | (260 | ) | 7,306 | (260 | ) | ||||||||||||||||
FHLMC and FNMA stock
|
- | - | 1 | (4 | ) | 1 | (4 | ) | ||||||||||||||||
Corporate securities
|
32,048 | (1,516 | ) | 24,226 | (774 | ) | 56,274 | (2,290 | ) | |||||||||||||||
Other securities
|
- | - | 1,953 | (48 | ) | 1,953 | (48 | ) | ||||||||||||||||
Total
|
$ | 76,345 | $ | (1,640 | ) | $ | 49,848 | $ | (1,296 | ) | $ | 126,193 | $ | (2,936 | ) |
Investment Securities Held to Maturity
|
||||||||||||||||||||||||
At December 31, 2011
|
||||||||||||||||||||||||
Less than 12 months
|
12 months or longer
|
Total
|
||||||||||||||||||||||
Unrealized
|
Unrealized
|
Unrealized
|
||||||||||||||||||||||
Fair Value
|
Losses
|
Fair Value
|
Losses
|
Fair Value
|
Losses
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Residential mortgage-backed securities
|
$ | 14,032 | $ | (77 | ) | $ | - | $ | - | $ | 14,032 | $ | (77 | ) | ||||||||||
Obligations of States and political subdivisions
|
38,026 | (334 | ) | 6,441 | (162 | ) | 44,467 | (496 | ) | |||||||||||||||
Residential collateralized mortgage obligations
|
50,355 | (373 | ) | 15,443 | (2,258 | ) | 65,798 | (2,631 | ) | |||||||||||||||
Total
|
$ | 102,413 | $ | (784 | ) | $ | 21,884 | $ | (2,420 | ) | $ | 124,297 | $ | (3,204 | ) |
For the Three Months
|
For the Six Months
|
|||||||||||||||
Ended June 30,
|
||||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Taxable
|
$ | 5,348 | $ | 4,223 | $ | 10,038 | $ | 7,980 | ||||||||
Tax-exempt
|
7,808 | 7,593 | 15,760 | 14,967 | ||||||||||||
Total interest income from investment securities
|
$ | 13,156 | $ | 11,816 | $ | 25,798 | $ | 22,947 |
At June 30, 2012
|
||||||||||||||||||||||||
Consumer
|
||||||||||||||||||||||||
Commercial
|
Residential
|
Installment
|
||||||||||||||||||||||
Commercial
|
Real Estate
|
Construction
|
Real Estate
|
& Other
|
Total
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Originated loans
|
$ | 357,587 | $ | 662,635 | $ | 12,555 | $ | 249,299 | $ | 469,502 | $ | 1,751,578 | ||||||||||||
Purchased covered loans:
|
||||||||||||||||||||||||
Impaired
|
347 | 9,642 | 2,346 | - | 260 | 12,595 | ||||||||||||||||||
Non impaired
|
84,721 | 304,625 | 10,294 | 10,366 | 71,016 | 481,022 | ||||||||||||||||||
Purchase discount
|
(10,210 | ) | (18,855 | ) | (464 | ) | (522 | ) | (315 | ) | (30,366 | ) | ||||||||||||
Purchased non-covered loans:
|
||||||||||||||||||||||||
Impaired
|
2,081 | 16,747 | - | - | 298 | 19,126 | ||||||||||||||||||
Non impaired
|
12,383 | 51,031 | 1,794 | 3,438 | 22,646 | 91,292 | ||||||||||||||||||
Purchase discount
|
(859 | ) | (4,496 | ) | (95 | ) | (474 | ) | (2,104 | ) | (8,028 | ) | ||||||||||||
Total
|
$ | 446,050 | $ | 1,021,329 | $ | 26,430 | $ | 262,107 | $ | 561,303 | $ | 2,317,219 |
At December 31, 2011
|
||||||||||||||||||||||||
Consumer
|
||||||||||||||||||||||||
Commercial
|
Residential
|
Installment
|
||||||||||||||||||||||
Commercial
|
Real Estate
|
Construction
|
Real Estate
|
& Other
|
Total
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Originated loans
|
$ | 398,446 | $ | 704,655 | $ | 14,580 | $ | 271,111 | $ | 473,815 | $ | 1,862,607 | ||||||||||||
Purchased covered loans:
|
||||||||||||||||||||||||
Impaired
|
1,296 | 20,697 | 2,977 | - | 262 | 25,232 | ||||||||||||||||||
Non impaired
|
117,777 | 333,428 | 13,372 | 13,016 | 78,735 | 556,328 | ||||||||||||||||||
Purchase discount
|
(19,535 | ) | (22,318 | ) | (2,473 | ) | (524 | ) | (1,432 | ) | (46,282 | ) | ||||||||||||
Purchased non-covered loans:
|
||||||||||||||||||||||||
Impaired
|
2,262 | 17,090 | - | - | 638 | 19,990 | ||||||||||||||||||
Non impaired
|
14,129 | 67,045 | 6,076 | 3,598 | 25,294 | 116,142 | ||||||||||||||||||
Purchase discount
|
(1,013 | ) | (6,101 | ) | (95 | ) | (474 | ) | (2,528 | ) | (10,211 | ) | ||||||||||||
Total
|
$ | 513,362 | $ | 1,114,496 | $ | 34,437 | $ | 286,727 | $ | 574,784 | $ | 2,523,806 |
For the
|
||||||||
Six Months Ended
|
For the Year Ended
|
|||||||
June 30, 2012
|
December 31, 2011
|
|||||||
Impaired purchased covered loans
|
(In thousands)
|
|||||||
Carrying amount at the beginning of the period
|
$ | 18,591 | $ | 33,556 | ||||
Reductions during the period
|
(9,279 | ) | (14,965 | ) | ||||
Carrying amount at the end of the period
|
$ | 9,312 | $ | 18,591 |
For the
|
||||||||
Six Months Ended
|
For the Year Ended
|
|||||||
June 30, 2012
|
December 31, 2011
|
|||||||
Impaired purchased non-covered loans
|
(In thousands)
|
|||||||
Carrying amount at the beginning of the period
|
$ | 15,572 | $ | 33,725 | ||||
Reductions during the period
|
(691 | ) | (18,153 | ) | ||||
Carrying amount at the end of the period
|
$ | 14,881 | $ | 15,572 |
For the
|
For the
|
|||||||
Six Months Ended
|
Year Ended
|
|||||||
June 30, 2012
|
December 31, 2011
|
|||||||
Accretable yield for purchased loans
|
(In thousands)
|
|||||||
Balance at the beginning of the period
|
$ | 9,990 | $ | 6,089 | ||||
Reclassification from nonaccretable difference
|
3,816 | 16,906 | ||||||
Accretion
|
(9,804 | ) | (13,005 | ) | ||||
Disposals and other
|
- | - | ||||||
Balance at the end of the period
|
$ | 4,002 | $ | 9,990 | ||||
Accretion
|
$ | (9,804 | ) | $ | (13,005 | ) | ||
Reduction in FDIC indemnification asset
|
7,373 | 9,315 | ||||||
Increase in interest income
|
$ | (2,431 | ) | $ | (3,690 | ) |
Allowance for Credit Losses
|
||||||||||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2012
|
||||||||||||||||||||||||||||||||||||
Consumer
|
Purchased
|
Purchased
|
||||||||||||||||||||||||||||||||||
Commercial
|
Residential
|
Installment
|
Non-covered
|
Covered
|
||||||||||||||||||||||||||||||||
Commercial
|
Real Estate
|
Construction
|
Real Estate
|
and Other
|
Loans
|
Loans
|
Unallocated
|
Total
|
||||||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||||||
Balance at beginning of period
|
$ | 6,814 | $ | 11,427 | $ | 2,755 | $ | 645 | $ | 2,825 | $ | - | $ | 139 | $ | 7,278 | $ | 31,883 | ||||||||||||||||||
Additions:
|
||||||||||||||||||||||||||||||||||||
Provision
|
1,984 | (1,561 | ) | (270 | ) | 19 | 817 | 25 | 324 | 1,462 | 2,800 | |||||||||||||||||||||||||
Deductions:
|
||||||||||||||||||||||||||||||||||||
Chargeoffs
|
(2,696 | ) | - | - | (62 | ) | (1,211 | ) | (25 | ) | (247 | ) | - | (4,241 | ) | |||||||||||||||||||||
Recoveries
|
228 | 33 | 196 | - | 600 | - | 24 | - | 1,081 | |||||||||||||||||||||||||||
Net loan and lease losses
|
(2,468 | ) | 33 | 196 | (62 | ) | (611 | ) | (25 | ) | (223 | ) | - | (3,160 | ) | |||||||||||||||||||||
Balance at end of period
|
6,330 | 9,899 | 2,681 | 602 | 3,031 | - | 240 | 8,740 | 31,523 | |||||||||||||||||||||||||||
Liability for off-balance sheet credit exposure
|
1,644 | 16 | 12 | - | 384 | - | - | 637 | 2,693 | |||||||||||||||||||||||||||
Total allowance for credit losses
|
$ | 7,974 | $ | 9,915 | $ | 2,693 | $ | 602 | $ | 3,415 | $ | - | $ | 240 | $ | 9,377 | $ | 34,216 |
Allowance for Credit Losses
|
||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2012
|
||||||||||||||||||||||||||||||||||||
Consumer
|
Purchased
|
Purchased
|
||||||||||||||||||||||||||||||||||
Commercial
|
Residential
|
Installment
|
Non-covered
|
Covered
|
||||||||||||||||||||||||||||||||
Commercial
|
Real Estate
|
Construction
|
Real Estate
|
and Other
|
Loans
|
Loans
|
Unallocated
|
Total
|
||||||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||||||
Balance at beginning of period
|
$ | 6,012 | $ | 10,611 | $ | 2,342 | $ | 781 | $ | 3,072 | $ | - | $ | - | $ | 9,779 | $ | 32,597 | ||||||||||||||||||
Additions:
|
||||||||||||||||||||||||||||||||||||
Provision
|
3,259 | 203 | 141 | 753 | 1,444 | 25 | 814 | (1,039 | ) | 5,600 | ||||||||||||||||||||||||||
Deductions:
|
||||||||||||||||||||||||||||||||||||
Chargeoffs
|
(3,558 | ) | (948 | ) | - | (932 | ) | (2,864 | ) | (25 | ) | (612 | ) | - | (8,939 | ) | ||||||||||||||||||||
Recoveries
|
617 | 33 | 198 | - | 1,379 | - | 38 | - | 2,265 | |||||||||||||||||||||||||||
Net loan and lease losses
|
(2,941 | ) | (915 | ) | 198 | (932 | ) | (1,485 | ) | (25 | ) | (574 | ) | - | (6,674 | ) | ||||||||||||||||||||
Balance at end of period
|
6,330 | 9,899 | 2,681 | 602 | 3,031 | - | 240 | 8,740 | 31,523 | |||||||||||||||||||||||||||
Liability for off-balance sheet credit exposure
|
1,644 | 16 | 12 | - | 384 | - | - | 637 | 2,693 | |||||||||||||||||||||||||||
Total allowance for credit losses
|
$ | 7,974 | $ | 9,915 | $ | 2,693 | $ | 602 | $ | 3,415 | $ | - | $ | 240 | $ | 9,377 | $ | 34,216 |
Allowance for Credit Losses
|
||||||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2011
|
||||||||||||||||||||||||||||||||
Consumer
|
Purchased
|
|||||||||||||||||||||||||||||||
Commercial
|
Residential
|
Installment
|
Covered
|
|||||||||||||||||||||||||||||
Commercial
|
Real Estate
|
Construction
|
Real Estate
|
and Other
|
Loans
|
Unallocated
|
Total
|
|||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||
Balance at beginning of period
|
$ | 7,816 | $ | 10,355 | $ | 2,260 | $ | 377 | $ | 4,458 | $ | - | $ | 9,055 | $ | 34,321 | ||||||||||||||||
Additions:
|
||||||||||||||||||||||||||||||||
Provision
|
2,133 | (114 | ) | 1,699 | 308 | (262 | ) | - | (964 | ) | 2,800 | |||||||||||||||||||||
Deductions:
|
||||||||||||||||||||||||||||||||
Chargeoffs
|
(3,663 | ) | - | - | (219 | ) | (1,339 | ) | - | - | (5,221 | ) | ||||||||||||||||||||
Recoveries
|
443 | - | - | - | 665 | - | - | 1,108 | ||||||||||||||||||||||||
Net loan and lease losses
|
(3,220 | ) | - | - | (219 | ) | (674 | ) | - | - | (4,113 | ) | ||||||||||||||||||||
Balance at end of period
|
6,729 | 10,241 | 3,959 | 466 | 3,522 | - | 8,091 | 33,008 | ||||||||||||||||||||||||
Liability for off-balance sheet credit exposure
|
1,772 | 33 | 105 | - | 147 | - | 636 | 2,693 | ||||||||||||||||||||||||
Total allowance for credit losses
|
$ | 8,501 | $ | 10,274 | $ | 4,064 | $ | 466 | $ | 3,669 | $ | - | $ | 8,727 | $ | 35,701 |
Allowance for Credit Losses
|
||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2011
|
||||||||||||||||||||||||||||||||
Consumer
|
Purchased
|
|||||||||||||||||||||||||||||||
Commercial
|
Residential
|
Installment
|
Covered
|
|||||||||||||||||||||||||||||
Commercial
|
Real Estate
|
Construction
|
Real Estate
|
and Other
|
Loans
|
Unallocated
|
Total
|
|||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||
Balance at beginning of period
|
$ | 8,094 | $ | 9,607 | $ | 3,260 | $ | 617 | $ | 6,372 | $ | - | $ | 7,686 | $ | 35,636 | ||||||||||||||||
Additions:
|
||||||||||||||||||||||||||||||||
Provision
|
2,979 | 634 | 2,174 | 376 | (968 | ) | - | 405 | 5,600 | |||||||||||||||||||||||
Deductions:
|
||||||||||||||||||||||||||||||||
Chargeoffs
|
(4,987 | ) | - | (1,475 | ) | (527 | ) | (3,475 | ) | - | - | (10,464 | ) | |||||||||||||||||||
Recoveries
|
643 | - | - | - | 1,593 | - | - | 2,236 | ||||||||||||||||||||||||
Net loan and lease losses
|
(4,344 | ) | - | (1,475 | ) | (527 | ) | (1,882 | ) | - | - | (8,228 | ) | |||||||||||||||||||
Balance at end of period
|
6,729 | 10,241 | 3,959 | 466 | 3,522 | - | 8,091 | 33,008 | ||||||||||||||||||||||||
Liability for off-balance sheet credit exposure
|
1,772 | 33 | 105 | - | 147 | - | 636 | 2,693 | ||||||||||||||||||||||||
Total allowance for credit losses
|
$ | 8,501 | $ | 10,274 | $ | 4,064 | $ | 466 | $ | 3,669 | $ | - | $ | 8,727 | $ | 35,701 |
Recorded Investment in Loans Evaluated for Impairment
|
||||||||||||||||||||||||||||||||||||
At June 30, 2012
|
||||||||||||||||||||||||||||||||||||
Commercial
|
Commercial
Real Estate
|
Construction
|
Residential
Real Estate
|
Consumer
Installment and
Other
|
Purchased Non-
covered Loans
|
Purchased
Covered
Loans
|
Unallocated
|
Total
|
||||||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||||||
Allowance for credit losses:
|
||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 1,297 | $ | - | $ | 2,124 | $ | 90 | $ | - | $ | - | $ | - | $ | - | $ | 3,511 | ||||||||||||||||||
Collectively evaluated for impairment
|
6,677 | 9,915 | 569 | 512 | 3,415 | - | 240 | 9,377 | 30,705 | |||||||||||||||||||||||||||
Purchased loans with evidence of credit deterioration
|
- | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Total
|
$ | 7,974 | $ | 9,915 | $ | 2,693 | $ | 602 | $ | 3,415 | $ | - | 240 | $ | 9,377 | $ | 34,216 | |||||||||||||||||||
Carrying value of loans:
|
||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 6,846 | $ | 3,389 | $ | 3,068 | $ | 621 | $ | - | $ | 5,727 | $ | 6,635 | $ | - | $ | 26,286 | ||||||||||||||||||
Collectively evaluated for impairment
|
350,741 | 659,246 | 9,487 | 248,678 | 469,502 | 81,782 | 447,304 | - | 2,266,740 | |||||||||||||||||||||||||||
Purchased loans with evidence of credit deterioration
|
- | - | - | - | - | 14,881 | 9,312 | - | 24,193 | |||||||||||||||||||||||||||
Total
|
$ | 357,587 | $ | 662,635 | $ | 12,555 | $ | 249,299 | $ | 469,502 | $ | 102,390 | $ | 463,251 | $ | - | $ | 2,317,219 |
Recorded Investment in Loans Evaluated for Impairment
|
||||||||||||||||||||||||||||||||||||
At December 31, 2011
|
||||||||||||||||||||||||||||||||||||
Commercial
|
Commercial
Real Estate
|
Construction
|
Residential
Real Estate
|
Consumer
Installment and
Other
|
Purchased Non-
covered Loans
|
Purchased
Covered
Loans
|
Unallocated
|
Total
|
||||||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||||||
Allowance for credit losses:
|
||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | - | $ | 229 | $ | 1,794 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 2,023 | ||||||||||||||||||
Collectively evaluated for impairment
|
7,672 | 10,382 | 582 | 781 | 3,270 | - | - | 10,580 | 33,267 | |||||||||||||||||||||||||||
Purchased loans with evidence of credit deterioration
|
- | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Total
|
$ | 7,672 | $ | 10,611 | $ | 2,376 | $ | 781 | $ | 3,270 | $ | - | $ | - | $ | 10,580 | $ | 35,290 | ||||||||||||||||||
Carrying value of loans:
|
||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | - | $ | 1,399 | $ | 3,126 | $ | - | $ | - | $ | 5,611 | $ | 5,988 | $ | - | $ | 16,124 | ||||||||||||||||||
Collectively evaluated for impairment
|
398,446 | 703,256 | 11,454 | 271,111 | 473,815 | 104,738 | 510,699 | - | 2,473,519 | |||||||||||||||||||||||||||
Purchased loans with evidence of credit deterioration
|
- | - | - | - | - | 15,572 | 18,591 | - | 34,163 | |||||||||||||||||||||||||||
Total
|
$ | 398,446 | $ | 704,655 | $ | 14,580 | $ | 271,111 | $ | 473,815 | $ | 125,921 | $ | 535,278 | $ | - | $ | 2,523,806 |
Credit Risk Profile by Internally Assigned Grade
|
||||||||||||||||||||||||||||||||
At June 30, 2012
|
||||||||||||||||||||||||||||||||
Commercial
|
Commercial
Real Estate
|
Construction
|
Residential
Real Estate
|
Consumer
Installment and
Other
|
Purchased Non-
covered Loans
|
Purchased
Covered
Loans (1)
|
Total
|
|||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||
Grade:
|
||||||||||||||||||||||||||||||||
Pass
|
$ | 325,257 | $ | 603,075 | $ | 8,529 | $ | 243,968 | $ | 467,643 | $ | 53,700 | $ | 321,037 | $ | 2,023,209 | ||||||||||||||||
Special mention
|
11,965 | 30,130 | 484 | 2,559 | 264 | 9,769 | 37,355 | 92,526 | ||||||||||||||||||||||||
Substandard
|
17,993 | 29,430 | 3,542 | 2,772 | 1,055 | 45,406 | 133,790 | 233,988 | ||||||||||||||||||||||||
Doubtful
|
2,372 | - | - | - | 13 | 1,543 | 1,435 | 5,363 | ||||||||||||||||||||||||
Loss
|
- | - | - | - | 527 | - | - | 527 | ||||||||||||||||||||||||
Default risk purchase discount
|
- | - | - | - | - | (8,028 | ) | (30,366 | ) | (38,394 | ) | |||||||||||||||||||||
Total
|
$ | 357,587 | $ | 662,635 | $ | 12,555 | $ | 249,299 | $ | 469,502 | $ | 102,390 | $ | 463,251 | $ | 2,317,219 |
Credit Risk Profile by Internally Assigned Grade
|
||||||||||||||||||||||||||||||||
At December 31, 2011
|
||||||||||||||||||||||||||||||||
Commercial
|
Commercial
Real Estate
|
Construction
|
Residential
Real Estate
|
Consumer
Installment and
Other
|
Purchased Non-
covered Loans
|
Purchased
Covered
Loans (1)
|
Total
|
|||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||
Grade:
|
||||||||||||||||||||||||||||||||
Pass
|
$ | 360,279 | $ | 646,078 | $ | 10,413 | $ | 264,861 | $ | 471,783 | $ | 63,955 | $ | 372,560 | $ | 2,189,929 | ||||||||||||||||
Special mention
|
17,247 | 29,103 | 341 | 1,961 | 600 | 15,701 | 32,365 | 97,318 | ||||||||||||||||||||||||
Substandard
|
20,695 | 29,474 | 3,826 | 4,289 | 1,014 | 52,994 | 175,410 | 287,702 | ||||||||||||||||||||||||
Doubtful
|
225 | - | - | - | 66 | 3,444 | 1,070 | 4,805 | ||||||||||||||||||||||||
Loss
|
- | - | - | - | 352 | 38 | 155 | 545 | ||||||||||||||||||||||||
Default risk purchase discount
|
- | - | - | - | - | (10,211 | ) | (46,282 | ) | (56,493 | ) | |||||||||||||||||||||
Total
|
$ | 398,446 | $ | 704,655 | $ | 14,580 | $ | 271,111 | $ | 473,815 | $ | 125,921 | $ | 535,278 | $ | 2,523,806 |
Summary of Loans by Delinquency and Nonaccrual Status
|
||||||||||||||||||||
At June 30, 2012
|
||||||||||||||||||||
Current and
Accruing
|
30-89 Days Past
Due and
Accruing
|
Past Due 90
days or More
and Accruing
|
Nonaccrual
|
Total
Loans
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Commercial
|
$ | 347,329 | $ | 2,583 | $ | - | $ | 7,675 | $ | 357,587 | ||||||||||
Commercial real estate
|
646,856 | 11,385 | - | 4,394 | 662,635 | |||||||||||||||
Construction
|
9,400 | 87 | - | 3,068 | 12,555 | |||||||||||||||
Residential real estate
|
247,477 | 423 | - | 1,399 | 249,299 | |||||||||||||||
Consumer installment & other
|
465,145 | 3,822 | 525 | 10 | 469,502 | |||||||||||||||
Total originated loans
|
1,716,207 | 18,300 | 525 | 16,546 | 1,751,578 | |||||||||||||||
Purchased non-covered loans
|
80,850 | 1,668 | - | 19,872 | 102,390 | |||||||||||||||
Purchased covered loans
|
434,452 | 18,623 | 140 | 10,036 | 463,251 | |||||||||||||||
Total
|
$ | 2,231,509 | $ | 38,591 | $ | 665 | $ | 46,454 | $ | 2,317,219 |
Summary of Loans by Delinquency and Nonaccrual Status
|
||||||||||||||||||||
At December 31, 2011
|
||||||||||||||||||||
Current and
Accruing
|
30-89 Days Past
Due and
Accruing
|
Past Due 90
days or More
and Accruing
|
Nonaccrual
|
Total
Loans
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Commercial
|
$ | 388,322 | $ | 6,953 | $ | - | $ | 3,171 | $ | 398,446 | ||||||||||
Commercial real estate
|
679,633 | 16,967 | 1,626 | 6,429 | 704,655 | |||||||||||||||
Construction
|
10,664 | 570 | - | 3,346 | 14,580 | |||||||||||||||
Residential real estate
|
262,917 | 5,648 | - | 2,546 | 271,111 | |||||||||||||||
Consumer installment & other
|
467,015 | 6,324 | 421 | 55 | 473,815 | |||||||||||||||
Total originated loans
|
1,808,551 | 36,462 | 2,047 | 15,547 | 1,862,607 | |||||||||||||||
Purchased non-covered loans
|
101,585 | 1,095 | 34 | 23,207 | 125,921 | |||||||||||||||
Purchased covered loans
|
501,823 | 18,902 | 241 | 14,312 | 535,278 | |||||||||||||||
Total
|
$ | 2,411,959 | $ | 56,459 | $ | 2,322 | $ | 53,066 | $ | 2,523,806 |
For the Three Months
|
For the Six Months
|
|||||||||||||||
Ended June 30,
|
||||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Interest income that would have been recognized had the loans performed in accordance with their original terms
|
$ | 789 | $ | 1,586 | $ | 1,577 | $ | 3,270 | ||||||||
Less: Interest income recognized on nonaccrual loans
|
(494 | ) | (2,085 | ) | (1,336 | ) | (2,876 | ) | ||||||||
Total (addition) reduction of interest income
|
$ | 295 | $ | (499 | ) | $ | 241 | $ | 394 |
Impaired Loans
|
||||||||||||
At June 30, 2012
|
||||||||||||
Unpaid
|
||||||||||||
Recorded
|
Principal
|
Related
|
||||||||||
Investment
|
Balance
|
Allowance
|
||||||||||
(In thousands)
|
||||||||||||
Impaired loans with no related allowance recorded:
|
||||||||||||
Commercial
|
$ | 9,010 | $ | 17,574 | $ | - | ||||||
Commercial real estate
|
30,713 | 39,297 | - | |||||||||
Construction
|
6,433 | 10,657 | - | |||||||||
Residential real estate
|
982 | 984 | - | |||||||||
Consumer installment and other
|
2,851 | 3,226 | - | |||||||||
Impaired loans with an allowance recorded:
|
||||||||||||
Commercial
|
3,097 | 3,123 | 1,297 | |||||||||
Construction
|
3,068 | 3,183 | 2,124 | |||||||||
Residential real estate
|
621 | 621 | 90 | |||||||||
Total:
|
||||||||||||
Commercial
|
$ | 12,107 | $ | 20,697 | $ | 1,297 | ||||||
Commercial real estate
|
30,713 | 39,297 | - | |||||||||
Construction
|
9,501 | 13,840 | 2,124 | |||||||||
Residential real estate
|
1,603 | 1,605 | 90 | |||||||||
Consumer installment and other
|
2,851 | 3,226 | - |
Impaired Loans
|
||||||||||||
At December 31, 2011
|
||||||||||||
Unpaid
|
||||||||||||
Recorded
|
Principal
|
Related
|
||||||||||
Investment
|
Balance
|
Allowance
|
||||||||||
(In thousands)
|
||||||||||||
Impaired loans with no related allowance recorded:
|
||||||||||||
Commercial
|
$ | 5,483 | $ | 11,727 | $ | - | ||||||
Commercial real estate
|
33,095 | 43,793 | - | |||||||||
Construction
|
4,194 | 7,209 | - | |||||||||
Consumer installment and other
|
2,990 | 3,658 | - | |||||||||
Impaired loans with an allowance recorded:
|
||||||||||||
Commercial real estate
|
1,399 | 1,399 | 229 | |||||||||
Construction
|
3,126 | 3,183 | 1,794 | |||||||||
Total:
|
||||||||||||
Commercial
|
$ | 5,483 | $ | 11,727 | $ | - | ||||||
Commercial real estate
|
34,494 | 45,192 | 229 | |||||||||
Construction
|
7,320 | 10,392 | 1,794 | |||||||||
Consumer installment and other
|
2,990 | 3,658 | - |
Impaired Loans
|
||||||||||||||||||||||||||||||||
For the Three Months Ended June 30,
|
For the Six Months Ended June 30,
|
|||||||||||||||||||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||||||||||||||||||
Average
|
Recognized
|
Average
|
Recognized
|
Average
|
Recognized
|
Average
|
Recognized
|
|||||||||||||||||||||||||
Recorded
|
Interest
|
Recorded
|
Interest
|
Recorded
|
Interest
|
Recorded
|
Interest
|
|||||||||||||||||||||||||
Investment
|
Income
|
Investment
|
Income
|
Investment
|
Income
|
Investment
|
Income
|
|||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||
Commercial
|
$ | 9,888 | $ | 67 | $ | 17,135 | $ | 179 | $ | 9,342 | $ | 117 | $ | 17,373 | $ | 509 | ||||||||||||||||
Commercial real estate
|
30,228 | 349 | 38,402 | 414 | 31,416 | 727 | 38,732 | 729 | ||||||||||||||||||||||||
Construction
|
7,552 | 59 | 25,141 | 89 | 7,981 | 159 | 24,572 | 173 | ||||||||||||||||||||||||
Residential real estate
|
1,112 | - | 449 | - | 957 | - | 449 | - | ||||||||||||||||||||||||
Consumer installment and other
|
2,825 | 8 | 2,374 | 13 | 2,873 | 26 | 2,191 | 17 | ||||||||||||||||||||||||
Total
|
$ | 51,605 | $ | 483 | $ | 83,501 | $ | 695 | $ | 52,569 | $ | 1,029 | $ | 83,317 | $ | 1,428 |
Troubled Debt Restructurings
|
||||||||||||||||
At June 30, 2012
|
||||||||||||||||
Period-End
|
||||||||||||||||
Individual
|
||||||||||||||||
Number of
|
Pre-Modification
|
Period-End
|
Impairment
|
|||||||||||||
Contracts
|
Carrying Value
|
Carrying Value
|
Allowance
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Commercial
|
2 | $ | 326 | $ | 308 | $ | - | |||||||||
Construction
|
1 | 3,183 | 3,068 | 2,124 | ||||||||||||
Commercial real estate
|
2 | 1,817 | 1,799 | - | ||||||||||||
Total
|
5 | $ | 5,326 | $ | 5,175 | $ | 2,124 |
Troubled Debt Restructurings
|
||||||||||||||||
At December 31, 2011
|
||||||||||||||||
Period-End
|
||||||||||||||||
Individual
|
||||||||||||||||
Number of
|
Pre-Modification
|
Period-End
|
Impairment
|
|||||||||||||
Contracts
|
Carrying Value
|
Carrying Value
|
Allowance
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Commercial
|
2 | $ | 326 | $ | 321 | $ | - | |||||||||
Construction
|
1 | 3,183 | 3,126 | 1,794 | ||||||||||||
Total
|
3 | $ | 3,509 | $ | 3,447 | $ | 1,794 |
June 30, 2012
|
$ | 121,673 | ||
December 31, 2011
|
$ | 121,673 |
At June 30,
|
At December 31,
|
|||||||||||||||
2012
|
2011
|
|||||||||||||||
(In thousands)
|
||||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Carrying
|
Accumulated
|
Carrying
|
Accumulated
|
|||||||||||||
Amount
|
Amortization
|
Amount
|
Amortization
|
|||||||||||||
Core Deposit Intangibles
|
$ | 56,808 | $ | (32,551 | ) | $ | 56,808 | $ | (30,070 | ) | ||||||
Merchant Draft Processing Intangible
|
10,300 | (8,669 | ) | 10,300 | (8,409 | ) | ||||||||||
Total Identifiable Intangible Assets
|
$ | 67,108 | $ | (41,220 | ) | $ | 67,108 | $ | (38,479 | ) |
At June 30, 2012
|
||||||||||||
Merchant
|
||||||||||||
Core
|
Draft
|
|||||||||||
Deposit
|
Processing
|
|||||||||||
Intangibles
|
Intangible
|
Total
|
||||||||||
(In thousands)
|
||||||||||||
For the six months ended June 30, 2012 (actual)
|
$ | 2,481 | $ | 260 | $ | 2,741 | ||||||
Estimate for year ended December 31, 2012
|
4,868 | 500 | 5,368 | |||||||||
2013
|
4,304 | 400 | 4,704 | |||||||||
2014
|
3,946 | 324 | 4,270 | |||||||||
2015
|
3,594 | 262 | 3,856 | |||||||||
2016
|
3,292 | 212 | 3,504 | |||||||||
2017
|
2,853 | 164 | 3,017 |
At June 30, 2012
|
||||||||||||||||
Fair Value
|
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2 )
|
Significant
Unobservable
Inputs
(Level 3 )
|
|||||||||||||
(In thousands)
|
||||||||||||||||
U.S. Treasury securities
|
$ | 3,573 | $ | 3,573 | $ | - | $ | - | ||||||||
Securities of U.S. Government sponsored entities
|
100,899 | 100,899 | - | - | ||||||||||||
Municipal bonds:
|
||||||||||||||||
Federally Tax-exempt - California
|
80,105 | - | 80,105 | - | ||||||||||||
Federally Tax-exempt - 26 other states
|
149,347 | - | 149,347 | - | ||||||||||||
Taxable - California
|
1,319 | - | 1,319 | - | ||||||||||||
Taxable - 1 other state
|
5,421 | - | 5,421 | - | ||||||||||||
Residential mortgage-backed securities ("MBS"):
|
||||||||||||||||
Guaranteed by GNMA
|
33,848 | - | 33,848 | - | ||||||||||||
Issued by FNMA and FHLMC
|
43,590 | - | 43,590 | - | ||||||||||||
Residential collateralized mortgage obligations:
|
||||||||||||||||
Issued or guaranteed by FNMA, FHLMC, or GNMA
|
41,609 | - | 41,609 | - | ||||||||||||
All other
|
3,996 | - | 3,996 | - | ||||||||||||
Commercial mortgage-backed securities
|
4,370 | - | 4,370 | - | ||||||||||||
Asset-backed securities
|
16,746 | - | 16,746 | - | ||||||||||||
FHLMC and FNMA stock
|
2,691 | 2,691 | - | - | ||||||||||||
Corporate securities
|
216,692 | - | 216,692 | - | ||||||||||||
Other securities
|
4,511 | 2,560 | 1,951 | - | ||||||||||||
Total investment securities available for sale
|
$ | 708,717 | $ | 109,723 | $ | 598,994 | $ | - |
At December 31, 2011
|
||||||||||||||||
Fair Value
|
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2 )
|
Significant
Unobservable
Inputs
(Level 3 )
|
|||||||||||||
(In thousands)
|
||||||||||||||||
U.S. Treasury securities
|
$ | 3,596 | $ | 3,596 | $ | - | $ | - | ||||||||
Securities of U.S. Government sponsored entities
|
117,472 | 117,472 | - | - | ||||||||||||
Municipal bonds:
|
||||||||||||||||
Federally Tax-exempt - California
|
80,307 | - | 80,307 | - | ||||||||||||
Federally Tax-exempt - 27 other states
|
159,031 | - | 159,031 | - | ||||||||||||
Taxable - California
|
1,345 | - | 1,345 | - | ||||||||||||
Taxable - 1 other state
|
5,410 | - | 5,410 | - | ||||||||||||
Residential mortgage-backed securities ("MBS"):
|
||||||||||||||||
Guaranteed by GNMA
|
37,112 | - | 37,112 | - | ||||||||||||
Issued by FNMA and FHLMC
|
53,296 | - | 53,296 | - | ||||||||||||
Residential collateralized mortgage obligations:
|
||||||||||||||||
Issued or guaranteed by FNMA, FHLMC, or GNMA
|
46,130 | - | 46,130 | - | ||||||||||||
All other
|
5,034 | - | 5,034 | - | ||||||||||||
Commercial mortgage-backed securities
|
4,530 | - | 4,530 | - | ||||||||||||
Asset-backed securities
|
7,306 | - | 7,306 | - | ||||||||||||
FHLMC and FNMA stock
|
1,847 | 1,847 | - | - | ||||||||||||
Corporate securities
|
112,199 | - | 112,199 | - | ||||||||||||
Other securities
|
4,138 | 2,186 | 1,952 | - | ||||||||||||
Total investment securities available for sale
|
$ | 638,753 | $ | 125,101 | $ | 513,652 | $ | - |
At June 30, 2012
|
||||||||||||||||||||
Fair Value
|
Level 1
|
Level 2
|
Level 3
|
Total Losses
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Non-covered other real estate owned (1)
|
$ | 6,244 | $ | - | $ | 6,244 | $ | - | $ | (1,081 | ) | |||||||||
Covered other real estate owned (2)
|
9,236 | - | 9,236 | - | (252 | ) | ||||||||||||||
Originated impaired loans (3)
|
5,825 | - | 4,625 | 1,200 | (2,214 | ) | ||||||||||||||
Purchased covered impaired loans (4)
|
3,304 | - | 3,304 | - | (191 | ) | ||||||||||||||
Total assets measured at fair value on a nonrecurring basis
|
$ | 24,609 | $ | - | $ | 23,409 | $ | 1,200 | $ | (3,738 | ) |
At December 31, 2011
|
||||||||||||||||||||
Fair Value
|
Level 1
|
Level 2
|
Level 3
|
Total Losses
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Non-covered other real estate owned (1)
|
$ | 6,350 | $ | - | $ | 6,350 | $ | - | $ | (1,000 | ) | |||||||||
Covered other real estate owned (2)
|
10,695 | - | 10,695 | - | (578 | ) | ||||||||||||||
Originated impaired loans (3)
|
2,502 | - | 2,502 | - | - | |||||||||||||||
Total assets measured at fair value on a nonrecurring basis
|
$ | 19,547 | $ | - | $ | 19,547 | $ | - | $ | (1,578 | ) |
At June 30, 2012
|
||||||||||||||||||||
Carrying
Amount
|
Estimated
Fair Value
|
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2 )
|
Significant
Unobservable
Inputs
(Level 3 )
|
||||||||||||||||
Financial Assets
|
(In thousands) | |||||||||||||||||||
Cash and due from banks
|
$ | 320,925 | $ | 320,925 | $ | 320,925 | $ | - | $ | - | ||||||||||
Investment securities held to maturity:
|
||||||||||||||||||||
Securities of U.S. Government sponsored entities
|
4,287 | 4,316 | 4,316 | - | - | |||||||||||||||
Municipal bonds:
|
||||||||||||||||||||
Federally Tax-exempt - California
|
97,154 | 100,805 | - | 100,805 | - | |||||||||||||||
Federally Tax-exempt - 41 other states
|
552,235 | 569,409 | - | 569,409 | - | |||||||||||||||
Taxable - California
|
7,855 | 7,892 | - | 7,892 | - | |||||||||||||||
Taxable - 4 other states
|
10,142 | 10,224 | - | 10,224 | - | |||||||||||||||
Residential mortgage-backed securities ("MBS"):
|
||||||||||||||||||||
Guaranteed by GNMA
|
15,614 | 15,969 | - | 15,969 | - | |||||||||||||||
Issued by FNMA and FHLMC
|
66,732 | 68,200 | - | 68,200 | - | |||||||||||||||
Residential collateralized mortgage obligations:
|
||||||||||||||||||||
Issued or guaranteed by FNMA, FHLMC, or GNMA
|
439,404 | 442,801 | - | 442,801 | - | |||||||||||||||
All other
|
13,223 | 13,197 | - | 13,197 | - | |||||||||||||||
Total investment securities held to maturity
|
1,206,646 | 1,232,813 | 4,316 | 1,228,497 | - | |||||||||||||||
Loans
|
2,285,696 | 2,307,635 | - | - | 2,307,635 | |||||||||||||||
Other assets - FDIC receivable
|
20,885 | 20,861 | - | - | 20,861 | |||||||||||||||
Financial Liabilities
|
||||||||||||||||||||
Deposits:
|
||||||||||||||||||||
Noninterest bearing
|
$ | 1,573,188 | $ | 1,573,188 | $ | 1,573,188 | $ | - | $ | - | ||||||||||
Transaction
|
742,633 | 742,633 | 742,633 | - | - | |||||||||||||||
Savings
|
1,136,876 | 1,136,876 | 1,136,876 | - | - | |||||||||||||||
Time
|
755,802 | 758,350 | - | - | 758,350 | |||||||||||||||
Total Deposits
|
4,208,499 | 4,211,047 | 3,452,697 | - | 758,350 | |||||||||||||||
Short-term borrowed funds
|
81,582 | 81,582 | 81,582 | - | - | |||||||||||||||
Federal Home Loan Bank advances
|
25,911 | 26,364 | 26,364 | - | ||||||||||||||||
Term repurchase agreement
|
10,000 | 10,166 | - | 10,166 | - | |||||||||||||||
Debt financing
|
15,000 | 15,485 | - | 15,485 | - | |||||||||||||||
At December 31, 2011
|
||||||||||||||||||||
Carrying
|
Estimated
|
|||||||||||||||||||
Amount
|
Fair Value
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Financial Assets
|
||||||||||||||||||||
Cash and due from banks
|
$ | 530,045 | $ | 530,045 | ||||||||||||||||
Investment securities held to maturity
|
922,803 | 947,493 | ||||||||||||||||||
Loans
|
2,491,209 | 2,515,095 | ||||||||||||||||||
Other assets - FDIC receivable
|
40,113 | 40,046 | ||||||||||||||||||
Financial Liabilities
|
||||||||||||||||||||
Deposits
|
$ | 4,249,921 | $ | 4,250,164 | ||||||||||||||||
Short-term borrowed funds
|
115,689 | 115,689 | ||||||||||||||||||
Federal Home Loan Bank advances
|
26,023 | 26,532 | ||||||||||||||||||
Term repurchase agreement
|
10,000 | 10,242 | ||||||||||||||||||
Debt financing
|
15,000 | 15,222 |
At June 30,
|
At December 31,
|
|||||||
2012
|
2011
|
|||||||
(In thousands)
|
||||||||
Senior fixed-rate note
|
$ | 15,000 | $ | 15,000 | ||||
Total debt financing
|
$ | 15,000 | $ | 15,000 |
For the Three Months
|
For the Six Months
|
|||||||||||||||
Ended June 30,
|
||||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
(In thousands, except per share data)
|
||||||||||||||||
Net income applicable to common equity (numerator)
|
$ | 20,964 | $ | 21,269 | $ | 41,969 | $ | 43,651 | ||||||||
Basic earnings per common share
|
||||||||||||||||
Weighted average number of common shares outstanding - basic (denominator)
|
27,744 | 28,771 | 27,897 | 28,895 | ||||||||||||
Basic earnings per common share
|
$ | 0.76 | $ | 0.74 | $ | 1.50 | $ | 1.51 | ||||||||
Diluted earnings per common share
|
||||||||||||||||
Weighted average number of common shares outstanding - basic
|
27,744 | 28,771 | 27,897 | 28,895 | ||||||||||||
Add exercise of options reduced by the number of shares that could have been purchased with the proceeds of such exercise
|
46 | 152 | 54 | 178 | ||||||||||||
Weighted average number of common shares outstanding - diluted (denominator)
|
27,790 | 28,923 | 27,951 | 29,073 | ||||||||||||
Diluted earnings per common share
|
$ | 0.75 | $ | 0.74 | $ | 1.50 | $ | 1.50 |
WESTAMERICA BANCORPORATION
|
||||||||||||||||
FINANCIAL SUMMARY
|
||||||||||||||||
For the Three Months
|
For the Six Months
|
|||||||||||||||
Ended June 30,
|
||||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
(In thousands, except per share data)
|
||||||||||||||||
Net Interest and Fee Income (FTE)*
|
$ | 50,333 | $ | 55,837 | $ | 102,032 | $ | 110,830 | ||||||||
Provision for Loan Losses
|
2,800 | 2,800 | 5,600 | 5,600 | ||||||||||||
Noninterest Income
|
||||||||||||||||
Loss on sale of securities
|
(1,287 | ) | - | (1,287 | ) | - | ||||||||||
Other
|
14,820 | 15,292 | 29,489 | 30,035 | ||||||||||||
Noninterest Income
|
13,533 | 15,292 | 28,202 | 30,035 | ||||||||||||
Noninterest Expense:
|
||||||||||||||||
Settlements
|
- | 2,100 | - | 2,100 | ||||||||||||
Other
|
29,349 | 32,209 | 59,383 | 63,532 | ||||||||||||
Total Noninterest Expense
|
29,349 | 34,309 | 59,383 | 65,632 | ||||||||||||
Income Before Income Taxes (FTE)*
|
31,717 | 34,020 | 65,251 | 69,633 | ||||||||||||
Income Tax Provision (FTE)*
|
10,753 | 12,751 | 23,282 | 25,982 | ||||||||||||
Net Income
|
$ | 20,964 | $ | 21,269 | $ | 41,969 | $ | 43,651 | ||||||||
Average Common Shares Outstanding
|
27,744 | 28,771 | 27,897 | 28,895 | ||||||||||||
Diluted Average Common Shares Outstanding
|
27,790 | 28,923 | 27,951 | 29,073 | ||||||||||||
Common Shares Outstanding at Period End
|
27,621 | 28,540 | 27,621 | 28,540 | ||||||||||||
Per Common Share:
|
||||||||||||||||
Basic Earnings
|
$ | 0.76 | $ | 0.74 | $ | 1.50 | $ | 1.51 | ||||||||
Diluted Earnings
|
0.75 | 0.74 | 1.50 | 1.50 | ||||||||||||
Book Value Per Common Share
|
$ | 20.20 | $ | 19.25 | ||||||||||||
Financial Ratios:
|
||||||||||||||||
Return On Assets
|
1.69 | % | 1.73 | % | 1.69 | % | 1.78 | % | ||||||||
Return On Common Equity
|
15.55 | % | 15.64 | % | 15.50 | % | 16.14 | % | ||||||||
Net Interest Margin (FTE)*
|
4.89 | % | 5.38 | % | 5.00 | % | 5.37 | % | ||||||||
Net Loan Losses to Average Gross Originated Loans
|
0.65 | % | 0.83 | % | 0.67 | % | 0.83 | % | ||||||||
Efficiency Ratio**
|
46.0 | % | 48.2 | % | 45.6 | % | 46.6 | % | ||||||||
Average Balances:
|
||||||||||||||||
Assets
|
$ | 4,974,619 | $ | 4,927,849 | $ | 5,002,777 | $ | 4,934,387 | ||||||||
Earning Assets
|
4,127,699 | 4,156,226 | 4,093,985 | 4,154,676 | ||||||||||||
Originated Loans
|
1,789,221 | 1,978,155 | 1,812,296 | 1,990,042 | ||||||||||||
Purchased Covered Loans
|
478,965 | 644,555 | 495,965 | 659,597 | ||||||||||||
Purchased Non-covered Loans
|
107,483 | 178,384 | 113,493 | 185,870 | ||||||||||||
Deposits
|
4,227,752 | 4,143,749 | 4,240,758 | 4,141,288 | ||||||||||||
Shareholders' Equity
|
542,192 | 545,637 | 544,434 | 545,421 | ||||||||||||
Period End Balances:
|
||||||||||||||||
Assets
|
$ | 4,953,130 | $ | 4,876,731 | ||||||||||||
Earning Assets
|
4,232,582 | 4,125,743 | ||||||||||||||
Originated Loans
|
1,751,578 | 1,963,642 | ||||||||||||||
Purchased Covered Loans
|
463,251 | 622,727 | ||||||||||||||
Purchased Non-covered Loans
|
102,390 | 164,844 | ||||||||||||||
Deposits
|
4,208,499 | 4,088,385 | ||||||||||||||
Shareholders' Equity
|
557,926 | 549,340 | ||||||||||||||
Capital Ratios at Period End:
|
||||||||||||||||
Total Risk Based Capital
|
15.74 | % | 15.92 | % | ||||||||||||
Tangible Equity to Tangible Assets
|
8.54 | % | 8.39 | % | ||||||||||||
Dividends Paid Per Common Share
|
$ | 0.37 | $ | 0.36 | $ | 0.74 | $ | 0.72 | ||||||||
Common Dividend Payout Ratio
|
49 | % | 49 | % | 49 | % | 48 | % |
For the Three Months
|
For the Six Months
|
|||||||||||||||
Ended June 30,
|
||||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
(In thousands, except per share data)
|
||||||||||||||||
Net interest income (FTE)
|
$ | 50,333 | $ | 55,837 | $ | 102,032 | $ | 110,830 | ||||||||
Provision for loan losses
|
(2,800 | ) | (2,800 | ) | (5,600 | ) | (5,600 | ) | ||||||||
Noninterest income
|
13,533 | 15,292 | 28,202 | 30,035 | ||||||||||||
Noninterest expense
|
(29,349 | ) | (34,309 | ) | (59,383 | ) | (65,632 | ) | ||||||||
Income before taxes (FTE)
|
31,717 | 34,020 | 65,251 | 69,633 | ||||||||||||
Income tax provision (FTE)
|
(10,753 | ) | (12,751 | ) | (23,282 | ) | (25,982 | ) | ||||||||
Net income
|
$ | 20,964 | $ | 21,269 | $ | 41,969 | $ | 43,651 | ||||||||
Average diluted common shares
|
27,790 | 28,923 | 27,951 | 29,073 | ||||||||||||
Diluted earnings per common share
|
$ | 0.75 | $ | 0.74 | $ | 1.50 | $ | 1.50 | ||||||||
Average total assets
|
$ | 4,974,619 | $ | 4,927,849 | $ | 5,002,777 | $ | 4,934,387 | ||||||||
Net income to average total assets (annualized)
|
1.69 | % | 1.73 | % | 1.69 | % | 1.78 | % | ||||||||
Net income to average common stockholders' equity (annualized)
|
15.55 | % | 15.64 | % | 15.50 | % | 16.14 | % |
For the Three Months
|
For the Six Months
|
|||||||||||||||
Ended June 30,
|
||||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
(In thousands)
|
||||||||||||||||
Interest and fee income
|
$ | 46,901 | $ | 53,088 | $ | 95,199 | $ | 105,582 | ||||||||
Interest expense
|
(1,472 | ) | (2,153 | ) | (3,031 | ) | (4,456 | ) | ||||||||
FTE adjustment
|
4,904 | 4,902 | 9,864 | 9,704 | ||||||||||||
Net interest income (FTE)
|
$ | 50,333 | $ | 55,837 | $ | 102,032 | $ | 110,830 | ||||||||
Average earning assets
|
$ | 4,127,699 | $ | 4,156,226 | $ | 4,093,985 | $ | 4,154,676 | ||||||||
Net interest margin (FTE) (annualized)
|
4.89 | % | 5.38 | % | 5.00 | % | 5.37 | % |
For the Three Months
|
For the Six Months
|
|||||||||||||||
Ended June 30,
|
||||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
Yield on earning assets (FTE)
|
5.04 | % | 5.59 | % | 5.15 | % | 5.59 | % | ||||||||
Rate paid on interest-bearing liabilities
|
0.21 | % | 0.30 | % | 0.22 | % | 0.31 | % | ||||||||
Net interest spread (FTE)
|
4.83 | % | 5.29 | % | 4.93 | % | 5.28 | % | ||||||||
Impact of noninterest bearing demand deposits
|
0.06 | % | 0.09 | % | 0.07 | % | 0.09 | % | ||||||||
Net interest margin (FTE)
|
4.89 | % | 5.38 | % | 5.00 | % | 5.37 | % |
For the Three Months Ended
|
||||||||||||
June 30, 2012
|
||||||||||||
Yields
|
||||||||||||
Interest
|
Earned/
|
|||||||||||
Average
|
Income/
|
Rates
|
||||||||||
Balance
|
Expense
|
Paid
|
||||||||||
(In thousands)
|
||||||||||||
Assets
|
||||||||||||
Investment securities:
|
||||||||||||
Available for sale
|
||||||||||||
Taxable
|
$ | 449,977 | $ | 2,774 | 2.47 | % | ||||||
Tax-exempt (1)
|
220,724 | 3,254 | 5.90 | % | ||||||||
Held to maturity
|
||||||||||||
Taxable
|
451,988 | 2,574 | 2.28 | % | ||||||||
Tax-exempt (1)
|
629,341 | 8,731 | 5.55 | % | ||||||||
Loans:
|
||||||||||||
Commercial:
|
||||||||||||
Taxable
|
330,485 | 5,490 | 6.68 | % | ||||||||
Tax-exempt (1)
|
133,591 | 2,085 | 6.28 | % | ||||||||
Commercial real estate
|
1,046,878 | 17,531 | 6.74 | % | ||||||||
Real estate construction
|
28,627 | 300 | 4.21 | % | ||||||||
Real estate residential
|
271,196 | 2,496 | 3.68 | % | ||||||||
Consumer
|
564,892 | 6,570 | 4.68 | % | ||||||||
Total loans (1)
|
2,375,669 | 34,472 | 5.84 | % | ||||||||
Total interest-earning assets (1)
|
4,127,699 | $ | 51,805 | 5.04 | % | |||||||
Other assets
|
846,920 | |||||||||||
Total assets
|
$ | 4,974,619 | ||||||||||
Liabilities and shareholders' equity
|
||||||||||||
Deposits:
|
||||||||||||
Noninterest bearing demand
|
$ | 1,579,359 | $ | - | - | % | ||||||
Savings and interest-bearing transaction
|
1,876,734 | 308 | 0.07 | % | ||||||||
Time less than $100,000
|
270,549 | 385 | 0.57 | % | ||||||||
Time $100,000 or more
|
501,110 | 414 | 0.33 | % | ||||||||
Total interest-bearing deposits
|
2,648,393 | 1,107 | 0.17 | % | ||||||||
Short-term borrowed funds
|
93,568 | 21 | 0.09 | % | ||||||||
Term repurchase agreement
|
10,000 | 24 | 0.97 | % | ||||||||
Federal Home Loan Bank advances
|
25,944 | 119 | 1.86 | % | ||||||||
Debt financing
|
15,000 | 201 | 5.35 | % | ||||||||
Total interest-bearing liabilities
|
2,792,905 | $ | 1,472 | 0.21 | % | |||||||
Other liabilities
|
60,163 | |||||||||||
Shareholders' equity
|
542,192 | |||||||||||
Total liabilities and shareholders' equity
|
$ | 4,974,619 | ||||||||||
Net interest spread (1) (2)
|
4.83 | % | ||||||||||
Net interest income and interest margin (1) (3)
|
$ | 50,333 | 4.89 | % |
For the Three Months Ended
|
||||||||||||
June 30, 2011
|
||||||||||||
Yields
|
||||||||||||
Interest
|
Earned/
|
|||||||||||
Average
|
Income/
|
Rates
|
||||||||||
Balance
|
Expense
|
Paid
|
||||||||||
(In thousands)
|
||||||||||||
Assets:
|
||||||||||||
Money market assets and funds sold
|
$ | 205 | $ | - | - | % | ||||||
Investment securities:
|
||||||||||||
Available for sale
|
||||||||||||
Taxable
|
467,322 | 2,914 | 2.49 | % | ||||||||
Tax-exempt (1)
|
271,889 | 4,242 | 6.24 | % | ||||||||
Held to maturity
|
||||||||||||
Taxable
|
139,411 | 1,309 | 3.76 | % | ||||||||
Tax-exempt (1)
|
476,305 | 7,405 | 6.22 | % | ||||||||
Loans:
|
||||||||||||
Commercial:
|
||||||||||||
Taxable
|
457,659 | 7,619 | 6.68 | % | ||||||||
Tax-exempt (1)
|
149,459 | 2,436 | 6.54 | % | ||||||||
Commercial real estate
|
1,222,393 | 20,017 | 6.57 | % | ||||||||
Real estate construction
|
67,323 | 771 | 4.59 | % | ||||||||
Real estate residential
|
319,323 | 3,171 | 3.97 | % | ||||||||
Consumer
|
584,937 | 8,106 | 5.56 | % | ||||||||
Total loans (1)
|
2,801,094 | 42,120 | 6.03 | % | ||||||||
Total interest-earning assets (1)
|
4,156,226 | $ | 57,990 | 5.59 | % | |||||||
Other assets
|
771,623 | |||||||||||
Total assets
|
$ | 4,927,849 | ||||||||||
Liabilities and shareholders' equity
|
||||||||||||
Deposits:
|
||||||||||||
Noninterest bearing demand
|
$ | 1,466,754 | $ | - | - | % | ||||||
Savings and interest-bearing transaction
|
1,815,513 | 647 | 0.14 | % | ||||||||
Time less than $100,000
|
318,235 | 548 | 0.69 | % | ||||||||
Time $100,000 or more
|
543,247 | 582 | 0.43 | % | ||||||||
Total interest-bearing deposits
|
2,676,995 | 1,777 | 0.27 | % | ||||||||
Short-term borrowed funds
|
103,177 | 47 | 0.18 | % | ||||||||
Federal Home Loan Bank advances
|
48,248 | 128 | 1.05 | % | ||||||||
Debt financing and notes payable
|
26,007 | 201 | 3.08 | % | ||||||||
Total interest-bearing liabilities
|
2,854,427 | $ | 2,153 | 0.30 | % | |||||||
Other liabilities
|
61,031 | |||||||||||
Shareholders' equity
|
545,637 | |||||||||||
Total liabilities and shareholders' equity
|
$ | 4,927,849 | ||||||||||
Net interest spread (1) (2)
|
5.29 | % | ||||||||||
Net interest income and interest margin (1) (3)
|
$ | 55,837 | 5.38 | % |
For the Six Months Ended
|
||||||||||||
June 30, 2012
|
||||||||||||
Yields
|
||||||||||||
Interest
|
Earned/
|
|||||||||||
Average
|
Income/
|
Rates
|
||||||||||
Balance
|
Expense
|
Paid
|
||||||||||
(In thousands)
|
||||||||||||
Assets
|
||||||||||||
Investment securities:
|
||||||||||||
Available for sale
|
||||||||||||
Taxable
|
$ | 430,935 | $ | 5,338 | 2.48 | % | ||||||
Tax-exempt (1)
|
223,032 | 6,613 | 5.93 | % | ||||||||
Held to maturity
|
||||||||||||
Taxable
|
396,547 | 4,700 | 2.37 | % | ||||||||
Tax-exempt (1)
|
621,717 | 17,568 | 5.65 | % | ||||||||
Loans:
|
||||||||||||
Commercial:
|
||||||||||||
Taxable
|
341,280 | 11,273 | 6.64 | % | ||||||||
Tax-exempt (1)
|
135,669 | 4,139 | 6.14 | % | ||||||||
Commercial real estate
|
1,068,951 | 35,780 | 6.73 | % | ||||||||
Real estate construction
|
30,947 | 852 | 5.54 | % | ||||||||
Real estate residential
|
277,167 | 5,099 | 3.68 | % | ||||||||
Consumer
|
567,740 | 13,701 | 4.85 | % | ||||||||
Total loans (1)
|
2,421,754 | 70,844 | 5.88 | % | ||||||||
Total interest-earning assets (1)
|
4,093,985 | $ | 105,063 | 5.15 | % | |||||||
Other assets
|
908,792 | |||||||||||
Total assets
|
$ | 5,002,777 | ||||||||||
Liabilities and shareholders' equity
|
||||||||||||
Deposits:
|
||||||||||||
Noninterest bearing demand
|
$ | 1,577,708 | $ | - | - | % | ||||||
Savings and interest-bearing transaction
|
1,880,640 | 634 | 0.07 | % | ||||||||
Time less than $100,000
|
275,642 | 824 | 0.60 | % | ||||||||
Time $100,000 or more
|
506,768 | 836 | 0.33 | % | ||||||||
Total interest-bearing deposits
|
2,663,050 | 2,294 | 0.17 | % | ||||||||
Short-term borrowed funds
|
104,237 | 48 | 0.09 | % | ||||||||
Term repurchase agreement
|
10,000 | 49 | 0.98 | % | ||||||||
Federal Home Loan Bank advances
|
25,972 | 239 | 1.85 | % | ||||||||
Debt financing and notes payable
|
15,000 | 401 | 5.35 | % | ||||||||
Total interest-bearing liabilities
|
2,818,259 | $ | 3,031 | 0.22 | % | |||||||
Other liabilities
|
62,376 | |||||||||||
Shareholders' equity
|
544,434 | |||||||||||
Total liabilities and shareholders' equity
|
$ | 5,002,777 | ||||||||||
Net interest spread (1) (2)
|
4.93 | % | ||||||||||
Net interest income and interest margin (1) (3)
|
$ | 102,032 | 5.00 | % |
For the Six Months Ended
|
||||||||||||
June 30, 2011
|
||||||||||||
Yields
|
||||||||||||
Interest
|
Earned/
|
|||||||||||
Average
|
Income/
|
Rates
|
||||||||||
Balance
|
Expense
|
Paid
|
||||||||||
(In thousands)
|
||||||||||||
Assets:
|
||||||||||||
Money market assets and funds sold
|
$ | 440 | $ | - | - | % | ||||||
Investment securities:
|
||||||||||||
Available for sale
|
||||||||||||
Taxable
|
451,994 | 5,379 | 2.38 | % | ||||||||
Tax-exempt (1)
|
270,490 | 8,455 | 6.25 | % | ||||||||
Held to maturity
|
||||||||||||
Taxable
|
131,087 | 2,601 | 3.97 | % | ||||||||
Tax-exempt (1)
|
465,156 | 14,498 | 6.23 | % | ||||||||
Loans:
|
||||||||||||
Commercial:
|
||||||||||||
Taxable
|
471,256 | 15,084 | 6.45 | % | ||||||||
Tax-exempt (1)
|
151,648 | 4,936 | 6.56 | % | ||||||||
Commercial real estate
|
1,236,921 | 39,945 | 6.51 | % | ||||||||
Real estate construction
|
71,197 | 1,717 | 4.86 | % | ||||||||
Real estate residential
|
323,296 | 6,527 | 4.04 | % | ||||||||
Consumer
|
581,191 | 16,144 | 5.60 | % | ||||||||
Total loans (1)
|
2,835,509 | 84,353 | 6.00 | % | ||||||||
Total interest-earning assets (1)
|
4,154,676 | $ | 115,286 | 5.59 | % | |||||||
Other assets
|
779,711 | |||||||||||
Total assets
|
$ | 4,934,387 | ||||||||||
Liabilities and shareholders' equity
|
||||||||||||
Deposits:
|
||||||||||||
Noninterest bearing demand
|
$ | 1,464,925 | $ | - | - | % | ||||||
Savings and interest-bearing transaction
|
1,804,475 | 1,318 | 0.15 | % | ||||||||
Time less than $100,000
|
326,159 | 1,040 | 0.64 | % | ||||||||
Time $100,000 or more
|
545,729 | 1,309 | 0.48 | % | ||||||||
Total interest-bearing deposits
|
2,676,363 | 3,667 | 0.28 | % | ||||||||
Short-term borrowed funds
|
106,991 | 109 | 0.20 | % | ||||||||
Federal Home Loan Bank advances
|
52,983 | 279 | 1.05 | % | ||||||||
Debt financing and notes payable
|
26,161 | 401 | 3.06 | % | ||||||||
Total interest-bearing liabilities
|
2,862,498 | $ | 4,456 | 0.31 | % | |||||||
Other liabilities
|
61,543 | |||||||||||
Shareholders' equity
|
545,421 | |||||||||||
Total liabilities and shareholders' equity
|
$ | 4,934,387 | ||||||||||
Net interest spread (1) (2)
|
5.28 | % | ||||||||||
Net interest income and interest margin (1) (3)
|
$ | 110,830 | 5.37 | % |
For the Three Months Ended June 30, 2012
|
||||||||||||
Compared with
|
||||||||||||
For the Three months Ended June 30, 2011
|
||||||||||||
Volume
|
Rate
|
Total
|
||||||||||
(In thousands)
|
||||||||||||
Interest and fee income:
|
||||||||||||
Investment securities:
|
||||||||||||
Available for sale
|
||||||||||||
Taxable
|
$ | (107 | ) | $ | (33 | ) | $ | (140 | ) | |||
Tax-exempt (1)
|
(765 | ) | (223 | ) | (988 | ) | ||||||
Held to maturity
|
||||||||||||
Taxable
|
1,949 | (684 | ) | 1,265 | ||||||||
Tax-exempt (1)
|
2,182 | (856 | ) | 1,326 | ||||||||
Loans:
|
||||||||||||
Commercial:
|
||||||||||||
Taxable
|
(2,133 | ) | 4 | (2,129 | ) | |||||||
Tax-exempt (1)
|
(255 | ) | (96 | ) | (351 | ) | ||||||
Commercial real estate
|
(2,976 | ) | 490 | (2,486 | ) | |||||||
Real estate construction
|
(412 | ) | (59 | ) | (471 | ) | ||||||
Real estate residential
|
(455 | ) | (220 | ) | (675 | ) | ||||||
Consumer
|
(274 | ) | (1,262 | ) | (1,536 | ) | ||||||
Total loans (1)
|
(6,505 | ) | (1,143 | ) | (7,648 | ) | ||||||
Total decrease in interest and fee income (1)
|
(3,246 | ) | (2,939 | ) | (6,185 | ) | ||||||
Interest expense:
|
||||||||||||
Deposits:
|
||||||||||||
Savings and interest-bearing
|
||||||||||||
transaction
|
21 | (360 | ) | (339 | ) | |||||||
Time less than $100,000
|
(76 | ) | (87 | ) | (163 | ) | ||||||
Time $100,000 or more
|
(43 | ) | (125 | ) | (168 | ) | ||||||
Total interest-bearing deposits
|
(98 | ) | (572 | ) | (670 | ) | ||||||
Short-term borrowed funds
|
(4 | ) | (22 | ) | (26 | ) | ||||||
Term repurchase agreement
|
24 | - | 24 | |||||||||
Federal Home Loan Bank advances
|
(77 | ) | 68 | (9 | ) | |||||||
Debt financing
|
(108 | ) | 108 | - | ||||||||
Total decrease in interest expense
|
(263 | ) | (418 | ) | (681 | ) | ||||||
Decrease in Net Interest Income (1)
|
$ | (2,983 | ) | $ | (2,521 | ) | $ | (5,504 | ) |
For the Six Months Ended June 30, 2012
|
||||||||||||
Compared with
|
||||||||||||
For the Six Months Ended June 30, 2011
|
||||||||||||
Volume
|
Rate
|
Total
|
||||||||||
(In thousands)
|
||||||||||||
Interest and fee income:
|
||||||||||||
Investment securities:
|
||||||||||||
Available for sale
|
||||||||||||
Taxable
|
$ | (242 | ) | $ | 201 | $ | (41 | ) | ||||
Tax-exempt (1)
|
(1,415 | ) | (427 | ) | (1,842 | ) | ||||||
Held to maturity
|
||||||||||||
Taxable
|
3,490 | (1,391 | ) | 2,099 | ||||||||
Tax-exempt (1)
|
4,528 | (1,458 | ) | 3,070 | ||||||||
Loans:
|
||||||||||||
Commercial:
|
||||||||||||
Taxable
|
(4,237 | ) | 426 | (3,811 | ) | |||||||
Tax-exempt (1)
|
(483 | ) | (314 | ) | (797 | ) | ||||||
Commercial real estate
|
(5,457 | ) | 1,292 | (4,165 | ) | |||||||
Real estate construction
|
(1,076 | ) | 211 | (865 | ) | |||||||
Real estate residential
|
(868 | ) | (560 | ) | (1,428 | ) | ||||||
Consumer
|
(295 | ) | (2,148 | ) | (2,443 | ) | ||||||
Total loans (1)
|
(12,416 | ) | (1,093 | ) | (13,509 | ) | ||||||
Total decrease in interest and fee income (1)
|
(6,055 | ) | (4,168 | ) | (10,223 | ) | ||||||
Interest expense:
|
||||||||||||
Deposits:
|
||||||||||||
Savings and interest-bearingtransaction
|
57 | (741 | ) | (684 | ) | |||||||
Time less than $100,000
|
(151 | ) | (65 | ) | (216 | ) | ||||||
Time $100,000 or more
|
(83 | ) | (390 | ) | (473 | ) | ||||||
Total interest-bearing deposits
|
(177 | ) | (1,196 | ) | (1,373 | ) | ||||||
Short-term borrowed funds
|
(2 | ) | (59 | ) | (61 | ) | ||||||
Term repurchase agreement
|
49 | - | 49 | |||||||||
Federal Home Loan Bank advances
|
(21 | ) | (19 | ) | (40 | ) | ||||||
Debt financing
|
(216 | ) | 216 | - | ||||||||
Total decrease in interest expense
|
(367 | ) | (1,058 | ) | (1,425 | ) | ||||||
Decrease in Net Interest Income (1)
|
$ | (5,688 | ) | $ | (3,110 | ) | $ | (8,798 | ) |
For the Three Months
|
For the Six Months
|
|||||||||||||||
Ended June 30,
|
||||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
|
(In thousands)
|
|||||||||||||||
Service charges on deposit accounts
|
$ | 7,027 | $ | 7,577 | $ | 14,122 | $ | 15,098 | ||||||||
Merchant processing services
|
2,529 | 2,391 | 4,922 | 4,562 | ||||||||||||
Debit card fees
|
1,345 | 1,283 | 2,508 | 2,484 | ||||||||||||
ATM processing fees
|
932 | 997 | 1,865 | 1,932 | ||||||||||||
Other service fees
|
697 | 721 | 1,393 | 1,411 | ||||||||||||
Trust fees
|
497 | 482 | 986 | 975 | ||||||||||||
Check sale income
|
208 | 212 | 420 | 432 | ||||||||||||
Safe deposit rental
|
193 | 168 | 390 | 337 | ||||||||||||
Financial services commissions
|
194 | 117 | 365 | 146 | ||||||||||||
Loss on sale of securities
|
(1,287 | ) | - | (1,287 | ) | - | ||||||||||
Other
|
1,198 | 1,344 | 2,518 | 2,658 | ||||||||||||
Total
|
$ | 13,533 | $ | 15,292 | $ | 28,202 | $ | 30,035 |
For the Three Months
|
For the Six Months
|
|||||||||||||||
Ended June 30,
|
||||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Salaries and related benefits
|
$ | 14,494 | $ | 14,913 | $ | 29,540 | $ | 29,988 | ||||||||
Occupancy
|
3,775 | 4,050 | 7,709 | 8,075 | ||||||||||||
Outsourced data processing services
|
2,078 | 2,122 | 4,161 | 4,578 | ||||||||||||
Settlements
|
- | 2,100 | - | 2,100 | ||||||||||||
Amortization of identifiable intangibles
|
1,339 | 1,480 | 2,741 | 3,028 | ||||||||||||
Professional fees
|
902 | 1,453 | 1,669 | 2,303 | ||||||||||||
Furniture and equipment
|
1,041 | 1,038 | 1,892 | 1,971 | ||||||||||||
Other real estate owned
|
3 | 990 | 233 | 1,135 | ||||||||||||
Courier service
|
793 | 852 | 1,578 | 1,695 | ||||||||||||
Deposit insurance assessments
|
653 | 740 | 1,403 | 1,960 | ||||||||||||
Loan expense
|
390 | 544 | 1,017 | 938 | ||||||||||||
Telephone
|
418 | 428 | 794 | 863 | ||||||||||||
Postage
|
344 | 363 | 716 | 731 | ||||||||||||
Operational losses
|
149 | 341 | 322 | 589 | ||||||||||||
Stationery and supplies
|
247 | 323 | 490 | 646 | ||||||||||||
Advertising and public relations
|
151 | 161 | 303 | 332 | ||||||||||||
Other noninterest expense
|
2,572 | 2,411 | 4,815 | 4,700 | ||||||||||||
Total
|
$ | 29,349 | $ | 34,309 | $ | 59,383 | $ | 65,632 |
·
|
The Bank maintains a Loan Review Department which reports directly to the Board of Directors. The Loan Review Department performs independent evaluations of loans and assigns credit risk grades to evaluated loans using grading standards employed by bank regulatory agencies. Those loans judged to carry higher risk attributes are referred to as “classified loans.” Classified loans receive elevated management attention to maximize collection.
|
·
|
The Bank maintains two loan administration offices whose sole responsibility is to manage and collect classified loans.
|
First Tier Loss Coverage
|
$ | 269,000 | ||
Less: Recognized credit risk discount
|
161,203 | |||
Exposure to under-estimated risk within First Tier
|
107,797 | |||
Bank loss-sharing percentage
|
20 percent
|
|||
First Tier risk to Bank, pre-tax
|
$ | 21,559 | ||
First Tier risk to Bank, after-tax
|
$ | 12,494 |
For the Three Months
|
For the Six Months
|
|||||||||||||||
Ended June 30,
|
||||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Analysis of the Allowance for Credit Losses
|
||||||||||||||||
Balance, beginning of period
|
$ | 34,576 | $ | 37,014 | $ | 35,290 | $ | 38,329 | ||||||||
Provision for loan losses
|
2,800 | 2,800 | 5,600 | 5,600 | ||||||||||||
Provision for unfunded commitments
|
- | - | - | - | ||||||||||||
Loans charged off
|
||||||||||||||||
Commercial
|
(2,696 | ) | (3,663 | ) | (3,558 | ) | (4,987 | ) | ||||||||
Commercial real estate
|
- | - | (948 | ) | - | |||||||||||
Real estate construction
|
- | - | - | (1,475 | ) | |||||||||||
Real estate residential
|
(62 | ) | (219 | ) | (932 | ) | (527 | ) | ||||||||
Consumer
|
(1,211 | ) | (1,339 | ) | (2,864 | ) | (3,475 | ) | ||||||||
Purchased covered loans
|
(247 | ) | - | (612 | ) | - | ||||||||||
Purchased non-covered loans
|
(25 | ) | - | (25 | ) | - | ||||||||||
Total chargeoffs
|
(4,241 | ) | (5,221 | ) | (8,939 | ) | (10,464 | ) | ||||||||
Recoveries of loans previously charged off
|
||||||||||||||||
Commercial
|
228 | 443 | 617 | 643 | ||||||||||||
Commercial real estate
|
33 | - | 33 | - | ||||||||||||
Real estate construction
|
196 | - | 198 | - | ||||||||||||
Real estate residential
|
- | - | - | - | ||||||||||||
Consumer
|
600 | 665 | 1,379 | 1,593 | ||||||||||||
Purchased covered loans
|
24 | - | 38 | - | ||||||||||||
Total recoveries
|
1,081 | 1,108 | 2,265 | 2,236 | ||||||||||||
Net loan losses
|
(3,160 | ) | (4,113 | ) | (6,674 | ) | (8,228 | ) | ||||||||
Balance, end of period
|
$ | 34,216 | $ | 35,701 | $ | 34,216 | $ | 35,701 | ||||||||
Components:
|
||||||||||||||||
Allowance for loan losses
|
$ | 31,523 | $ | 33,008 | ||||||||||||
Liability for off-balance sheet credit exposure
|
2,693 | 2,693 | ||||||||||||||
Allowance for credit losses
|
$ | 34,216 | $ | 35,701 | ||||||||||||
Net loan losses:
|
||||||||||||||||
Originated loans
|
$ | (2,912 | ) | $ | (4,113 | ) | $ | (6,075 | ) | $ | (8,228 | ) | ||||
Purchased covered loans
|
(223 | ) | - | (574 | ) | - | ||||||||||
Purchased non-covered loans
|
(25 | ) | - | (25 | ) | - | ||||||||||
Net loan losses as a percentage of average loans (annualized):
|
||||||||||||||||
Originated loans
|
0.65 | % | 0.83 | % | 0.67 | % | 0.83 | % | ||||||||
Purchased covered loans
|
0.19 | % | - | % | 0.23 | % | - | % | ||||||||
Purchased non-covered loans
|
0.09 | % | - | % | 0.04 | % | - | % |
Minimum
|
Well-capitalized
|
|||||||||||||||||||
At June 30,
|
At December 31,
|
Regulatory
|
by Regulatory
|
|||||||||||||||||
2012
|
2011
|
2011
|
Requirement
|
Definition
|
||||||||||||||||
Tier I Capital
|
14.46 | % | 14.58 | % | 14.54 | % | 4.00 | % | 6.00 | % | ||||||||||
Total Capital
|
15.74 | % | 15.92 | % | 15.83 | % | 8.00 | % | 10.00 | % | ||||||||||
Leverage ratio
|
8.43 | % | 8.57 | % | 8.38 | % | 4.00 | % | 5.00 | % |
Minimum
|
Well-capitalized
|
|||||||||||||||||||
At June 30,
|
At December 31,
|
Regulatory
|
by Regulatory
|
|||||||||||||||||
2012
|
2011
|
2011
|
Requirement
|
Definition
|
||||||||||||||||
Tier I Capital
|
13.85 | % | 14.23 | % | 13.84 | % | 4.00 | % | 6.00 | % | ||||||||||
Total Capital
|
15.32 | % | 15.75 | % | 15.32 | % | 8.00 | % | 10.00 | % | ||||||||||
Leverage ratio
|
8.02 | % | 8.32 | % | 7.93 | % | 4.00 | % | 5.00 | % |
·
|
Redefine the type of capital which qualifies as regulatory capital in a manner which is more restrictive than current rules,
|
·
|
Introduce a new “Common Equity Tier 1” capital measurement,
|
·
|
Establish higher minimum levels of capital,
|
·
|
Introduce a “capital conservation buffer,”
|
·
|
Increase the risk-weighting of certain assets and commitments, in particular construction loans, loans on nonaccrual status, loans 90 days or more past due, short-term credit commitments, and deferred tax assets, and
|
·
|
Alter the risk-weightings on residential real estate loans based on loan quality (underwriting standards and terms) and the loan-to-value ratio determined at time of origination or subsequent restructuring or modification.
|
Proposed
|
Proforma Measurements as of
|
|||||||||||||||||||
Proposed
|
Minimum
|
June 30, 2012 Assuming New
|
||||||||||||||||||
Minimum
|
"Well-capitalized"
|
Plus "Capital
|
Proposals Fully Phased-in and
|
|||||||||||||||||
Capital
|
Under PCA
|
Conservation
|
Covered Asset Indemnification
|
|||||||||||||||||
Requirement
|
Proposal
|
Buffer"
|
Expired
|
|||||||||||||||||
Company
|
Bank
|
|||||||||||||||||||
Capital Measurement:
|
||||||||||||||||||||
Leverage
|
4.00 | % | 5.00 | % | 4.00 | % | 8.65 | % | 8.22 | % | ||||||||||
Common Equity Tier 1
|
4.50 | % | 6.50 | % | 7.00 | % | 13.06 | % | 12.47 | % | ||||||||||
Tier I Capital
|
6.00 | % | 8.00 | % | 8.50 | % | 13.06 | % | 12.47 | % | ||||||||||
Total Capital
|
8.00 | % | 10.00 | % | 10.50 | % | 14.12 | % | 13.54 | % |
(c)
|
(d)
|
|||||||||||||||
Total Number
|
Maximum Number
|
|||||||||||||||
of Shares
|
of Shares that May
|
|||||||||||||||
(a)
|
(b)
|
Purchased as Part of
|
Yet Be Purchased
|
|||||||||||||
Total Number of
|
Average Price
|
Publicly Announced
|
Under the Plans
|
|||||||||||||
Period
|
Shares Purchased
|
Paid per Share
|
Plans or Programs*
|
or Programs
|
||||||||||||
(In thousands, except per share data)
|
||||||||||||||||
April 1
|
||||||||||||||||
through
|
102 | $ | 46.58 | 102 | 1,018 | |||||||||||
April 30
|
||||||||||||||||
May 1
|
||||||||||||||||
through
|
182 | 45.16 | 182 | 836 | ||||||||||||
May 31
|
||||||||||||||||
June 1
|
||||||||||||||||
through
|
33 | 43.59 | 33 | 803 | ||||||||||||
June 30
|
||||||||||||||||
Total
|
317 | $ | 45.45 | 317 | 803 |
Note 10 - Earnings Per Common Share (Detail) - Earnings per common share and diluted earnings per common share (USD $)
In Thousands, except Per Share data, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
|
|
Net income applicable to common equity (numerator) (in Dollars) | $ 20,964 | $ 21,269 | $ 41,969 | $ 43,651 |
Weighted average number of common shares outstanding - basic | 27,744 | 28,771 | 27,897 | 28,895 |
Add exercise of options reduced by the number of shares that could have been purchased with the proceeds of such exercise | 46 | 152 | 54 | 178 |
Weighted average number of common shares outstanding - diluted (denominator) | 27,790 | 28,923 | 27,951 | 29,073 |
Diluted earnings per common share (in Dollars per share) | $ 0.75 | $ 0.74 | $ 1.50 | $ 1.50 |
Basic earnings per common share (in Dollars per share) | $ 0.76 | $ 0.74 | $ 1.50 | $ 1.51 |
Note 8 - Fair Value Measurements (Detail) - Assets measured at fair value on a recurring basis (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Fair Value | $ 708,717 | $ 638,753 |
US Treasury Securities [Member] | Fair Value, Inputs, Level 1 [Member]
|
||
Fair Value | 3,573 | 3,596 |
US Treasury Securities [Member]
|
||
Fair Value | 3,573 | 3,596 |
US Government-sponsored Enterprises Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member]
|
||
Fair Value | 100,899 | 117,472 |
US Government-sponsored Enterprises Debt Securities [Member]
|
||
Fair Value | 100,899 | 117,472 |
US States and Political Subdivisions Debt Securities [Member] | Federally Tax-Exempt - California [Member] | Fair Value, Inputs, Level 2 [Member]
|
||
Fair Value | 80,105 | 80,307 |
US States and Political Subdivisions Debt Securities [Member] | Federally Tax-Exempt - California [Member]
|
||
Fair Value | 80,105 | 80,307 |
US States and Political Subdivisions Debt Securities [Member] | Federally Tax-Exempt - Other States [Member] | Fair Value, Inputs, Level 2 [Member]
|
||
Fair Value | 149,347 | 159,031 |
US States and Political Subdivisions Debt Securities [Member] | Federally Tax-Exempt - Other States [Member]
|
||
Fair Value | 149,347 | 159,031 |
US States and Political Subdivisions Debt Securities [Member] | Taxable - California [Member] | Fair Value, Inputs, Level 2 [Member]
|
||
Fair Value | 1,319 | 1,345 |
US States and Political Subdivisions Debt Securities [Member] | Taxable - California [Member]
|
||
Fair Value | 1,319 | 1,345 |
US States and Political Subdivisions Debt Securities [Member] | Taxable - Other States [Member] | Fair Value, Inputs, Level 2 [Member]
|
||
Fair Value | 5,421 | 5,410 |
US States and Political Subdivisions Debt Securities [Member] | Taxable - Other States [Member]
|
||
Fair Value | 5,421 | 5,410 |
US States and Political Subdivisions Debt Securities [Member]
|
||
Fair Value | 236,192 | 246,093 |
Residential Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Guaranteed By GNMA [Member]
|
||
Fair Value | 33,848 | 37,112 |
Residential Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Issued by FNMA and FHLMC [Member]
|
||
Fair Value | 43,590 | 53,296 |
Residential Mortgage Backed Securities [Member] | Guaranteed By GNMA [Member]
|
||
Fair Value | 33,848 | 37,112 |
Residential Mortgage Backed Securities [Member] | Issued by FNMA and FHLMC [Member]
|
||
Fair Value | 43,590 | 53,296 |
Residential Mortgage Backed Securities [Member]
|
||
Fair Value | 77,438 | 90,408 |
Residential Collateralized Mortgage Obligations [Member] | Issued Or Guaranteed By FNMA, FHLMC, Or GNMA [Member] | Fair Value, Inputs, Level 2 [Member]
|
||
Fair Value | 41,609 | 46,130 |
Residential Collateralized Mortgage Obligations [Member] | Issued Or Guaranteed By FNMA, FHLMC, Or GNMA [Member]
|
||
Fair Value | 41,609 | 46,130 |
Residential Collateralized Mortgage Obligations [Member] | Collateralized Securities, Other [Member] | Fair Value, Inputs, Level 2 [Member]
|
||
Fair Value | 3,996 | 5,034 |
Residential Collateralized Mortgage Obligations [Member] | Collateralized Securities, Other [Member]
|
||
Fair Value | 3,996 | 5,034 |
Residential Collateralized Mortgage Obligations [Member]
|
||
Fair Value | 45,605 | 51,164 |
Commercial Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member]
|
||
Fair Value | 4,370 | 4,530 |
Commercial Mortgage Backed Securities [Member]
|
||
Fair Value | 4,370 | 4,530 |
Asset-backed Securities [Member] | Fair Value, Inputs, Level 2 [Member]
|
||
Fair Value | 16,746 | 7,306 |
Asset-backed Securities [Member]
|
||
Fair Value | 16,746 | 7,306 |
FHLMC And FNMA Stock [Member] | Fair Value, Inputs, Level 1 [Member]
|
||
Fair Value | 2,691 | 1,847 |
FHLMC And FNMA Stock [Member]
|
||
Fair Value | 2,691 | 1,847 |
Domestic Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member]
|
||
Fair Value | 216,692 | 112,199 |
Domestic Corporate Debt Securities [Member]
|
||
Fair Value | 216,692 | 112,199 |
Other Securities [Member] | Fair Value, Inputs, Level 1 [Member]
|
||
Fair Value | 2,560 | 2,186 |
Other Securities [Member] | Fair Value, Inputs, Level 2 [Member]
|
||
Fair Value | 1,951 | 1,952 |
Other Securities [Member]
|
||
Fair Value | 4,511 | 4,138 |
Fair Value, Inputs, Level 1 [Member]
|
||
Fair Value | 109,723 | 125,101 |
Fair Value, Inputs, Level 2 [Member]
|
||
Fair Value | $ 598,994 | $ 513,652 |
Note 7 - Commitments and Contingent Liabilities (Detail) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Unfunded Loan Commitments | $ 329,779 | $ 348,621 |
Financial Standby Letter of Credit [Member]
|
||
Letters of Credit Outstanding, Amount | 26,377 | 27,221 |
Standby Letters of Credit [Member]
|
||
Letters of Credit Outstanding, Amount | $ 454 | $ 454 |
Note 4 - Loans and Allowance for Credit Losses (Detail) - Changes in the accretable yield for purchased loans (USD $)
In Thousands, unless otherwise specified |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2012
|
Dec. 31, 2011
|
|
Balance at the beginning of the period | $ 9,990 | $ 6,089 |
Reclassification from nonaccretable difference | 3,816 | 16,906 |
Accretion | (9,804) | (13,005) |
Reduction in FDIC indemnification asset | 7,373 | 9,315 |
Increase in interest income | (2,431) | (3,690) |
Balance at the end of the period | $ 4,002 | $ 9,990 |
Note 3 - Investment Securities (Detail) - Schedule of amortized cost, unrealized gains and losses accumulated in other comprehensive income, and fair value - available for sale investment securities portfolio (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Amortized Cost | $ 685,893 | $ 618,765 |
Gross Unrealized Gains | 25,456 | 22,924 |
Gross Unrealized Losses | (2,632) | (2,936) |
Fair Value | 708,717 | 638,753 |
US Treasury Securities [Member]
|
||
Amortized Cost | 3,528 | 3,537 |
Gross Unrealized Gains | 45 | 59 |
Fair Value | 3,573 | 3,596 |
US Government-sponsored Enterprises Debt Securities [Member]
|
||
Amortized Cost | 100,493 | 117,150 |
Gross Unrealized Gains | 407 | 375 |
Gross Unrealized Losses | (1) | (53) |
Fair Value | 100,899 | 117,472 |
Residential Mortgage Backed Securities [Member]
|
||
Amortized Cost | 72,394 | 84,961 |
Gross Unrealized Gains | 5,046 | 5,457 |
Gross Unrealized Losses | (2) | (10) |
Fair Value | 77,438 | 90,408 |
Commercial Mortgage Backed Securities [Member]
|
||
Amortized Cost | 4,306 | 4,506 |
Gross Unrealized Gains | 64 | 27 |
Gross Unrealized Losses | (3) | |
Fair Value | 4,370 | 4,530 |
US States and Political Subdivisions Debt Securities [Member]
|
||
Amortized Cost | 223,237 | 234,522 |
Gross Unrealized Gains | 13,234 | 11,839 |
Gross Unrealized Losses | (279) | (268) |
Fair Value | 236,192 | 246,093 |
Residential Collateralized Mortgage Obligations [Member]
|
||
Amortized Cost | 43,959 | 49,111 |
Gross Unrealized Gains | 1,646 | 2,053 |
Fair Value | 45,605 | 51,164 |
Asset-backed Securities [Member]
|
||
Amortized Cost | 16,964 | 7,566 |
Gross Unrealized Losses | (218) | (260) |
Fair Value | 16,746 | 7,306 |
FHLMC And FNMA Stock [Member]
|
||
Amortized Cost | 824 | 824 |
Gross Unrealized Gains | 1,871 | 1,027 |
Gross Unrealized Losses | (4) | (4) |
Fair Value | 2,691 | 1,847 |
Domestic Corporate Debt Securities [Member]
|
||
Amortized Cost | 217,952 | 114,286 |
Gross Unrealized Gains | 818 | 203 |
Gross Unrealized Losses | (2,078) | (2,290) |
Fair Value | 216,692 | 112,199 |
Other Securities [Member]
|
||
Amortized Cost | 2,236 | 2,302 |
Gross Unrealized Gains | 2,325 | 1,884 |
Gross Unrealized Losses | (50) | (48) |
Fair Value | $ 4,511 | $ 4,138 |
Note 8 - Fair Value Measurements (Detail) - Fair value estimates for financial instruments, excluding financial instruments recorded at fair value on a recurring basis (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
US Government-sponsored Enterprises Debt Securities [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
|
||
Investment securities held to maturity: | ||
Investment securities held to maturity | $ 4,287 | |
US Government-sponsored Enterprises Debt Securities [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
|
||
Investment securities held to maturity: | ||
Investment securities held to maturity | 4,316 | |
US Government-sponsored Enterprises Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member]
|
||
Investment securities held to maturity: | ||
Investment securities held to maturity | 4,316 | |
US States and Political Subdivisions Debt Securities [Member] | Federally Tax-Exempt - California [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
|
||
Investment securities held to maturity: | ||
Investment securities held to maturity | 97,154 | |
US States and Political Subdivisions Debt Securities [Member] | Federally Tax-Exempt - California [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
|
||
Investment securities held to maturity: | ||
Investment securities held to maturity | 100,805 | |
US States and Political Subdivisions Debt Securities [Member] | Federally Tax-Exempt - California [Member] | Fair Value, Inputs, Level 2 [Member]
|
||
Investment securities held to maturity: | ||
Investment securities held to maturity | 100,805 | |
US States and Political Subdivisions Debt Securities [Member] | Federally Tax-Exempt - Other States [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
|
||
Investment securities held to maturity: | ||
Investment securities held to maturity | 552,235 | |
US States and Political Subdivisions Debt Securities [Member] | Federally Tax-Exempt - Other States [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
|
||
Investment securities held to maturity: | ||
Investment securities held to maturity | 569,409 | |
US States and Political Subdivisions Debt Securities [Member] | Federally Tax-Exempt - Other States [Member] | Fair Value, Inputs, Level 2 [Member]
|
||
Investment securities held to maturity: | ||
Investment securities held to maturity | 569,409 | |
US States and Political Subdivisions Debt Securities [Member] | Taxable - California [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
|
||
Investment securities held to maturity: | ||
Investment securities held to maturity | 7,855 | |
US States and Political Subdivisions Debt Securities [Member] | Taxable - California [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
|
||
Investment securities held to maturity: | ||
Investment securities held to maturity | 7,892 | |
US States and Political Subdivisions Debt Securities [Member] | Taxable - California [Member] | Fair Value, Inputs, Level 2 [Member]
|
||
Investment securities held to maturity: | ||
Investment securities held to maturity | 7,892 | |
US States and Political Subdivisions Debt Securities [Member] | Taxable - Other States [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
|
||
Investment securities held to maturity: | ||
Investment securities held to maturity | 10,142 | |
US States and Political Subdivisions Debt Securities [Member] | Taxable - Other States [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
|
||
Investment securities held to maturity: | ||
Investment securities held to maturity | 10,224 | |
US States and Political Subdivisions Debt Securities [Member] | Taxable - Other States [Member] | Fair Value, Inputs, Level 2 [Member]
|
||
Investment securities held to maturity: | ||
Investment securities held to maturity | 10,224 | |
US States and Political Subdivisions Debt Securities [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | Guaranteed By GNMA [Member]
|
||
Investment securities held to maturity: | ||
Investment securities held to maturity | 15,614 | |
US States and Political Subdivisions Debt Securities [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | Issued by FNMA and FHLMC [Member]
|
||
Investment securities held to maturity: | ||
Investment securities held to maturity | 66,732 | |
US States and Political Subdivisions Debt Securities [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Guaranteed By GNMA [Member]
|
||
Investment securities held to maturity: | ||
Investment securities held to maturity | 15,969 | |
US States and Political Subdivisions Debt Securities [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Issued by FNMA and FHLMC [Member]
|
||
Investment securities held to maturity: | ||
Investment securities held to maturity | 68,200 | |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Guaranteed By GNMA [Member]
|
||
Investment securities held to maturity: | ||
Investment securities held to maturity | 15,969 | |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Issued by FNMA and FHLMC [Member]
|
||
Investment securities held to maturity: | ||
Investment securities held to maturity | 68,200 | |
Residential Collateralized Mortgage Obligations [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | Issued Or Guaranteed By FNMA, FHLMC, Or GNMA [Member]
|
||
Investment securities held to maturity: | ||
Investment securities held to maturity | 439,404 | |
Residential Collateralized Mortgage Obligations [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member] | Collateralized Securities, Other [Member]
|
||
Investment securities held to maturity: | ||
Investment securities held to maturity | 13,223 | |
Residential Collateralized Mortgage Obligations [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Issued Or Guaranteed By FNMA, FHLMC, Or GNMA [Member]
|
||
Investment securities held to maturity: | ||
Investment securities held to maturity | 442,801 | |
Residential Collateralized Mortgage Obligations [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Collateralized Securities, Other [Member]
|
||
Investment securities held to maturity: | ||
Investment securities held to maturity | 13,197 | |
Residential Collateralized Mortgage Obligations [Member] | Issued Or Guaranteed By FNMA, FHLMC, Or GNMA [Member] | Fair Value, Inputs, Level 2 [Member]
|
||
Investment securities held to maturity: | ||
Investment securities held to maturity | 442,801 | |
Residential Collateralized Mortgage Obligations [Member] | Collateralized Securities, Other [Member] | Fair Value, Inputs, Level 2 [Member]
|
||
Investment securities held to maturity: | ||
Investment securities held to maturity | 13,197 | |
Noninterest Bearing [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
|
||
Deposits: | ||
Deposits | 1,573,188 | |
Noninterest Bearing [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
|
||
Deposits: | ||
Deposits | 1,573,188 | |
Noninterest Bearing [Member] | Fair Value, Inputs, Level 1 [Member]
|
||
Deposits: | ||
Deposits | 1,573,188 | |
Transaction [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
|
||
Deposits: | ||
Deposits | 742,633 | |
Transaction [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
|
||
Deposits: | ||
Deposits | 742,633 | |
Transaction [Member] | Fair Value, Inputs, Level 1 [Member]
|
||
Deposits: | ||
Deposits | 742,633 | |
Savings [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
|
||
Deposits: | ||
Deposits | 1,136,876 | |
Savings [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
|
||
Deposits: | ||
Deposits | 1,136,876 | |
Savings [Member] | Fair Value, Inputs, Level 1 [Member]
|
||
Deposits: | ||
Deposits | 1,136,876 | |
Time [Member] | Carrying (Reported) Amount, Fair Value Disclosure [Member]
|
||
Deposits: | ||
Deposits | 755,802 | |
Time [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
|
||
Deposits: | ||
Deposits | 758,350 | |
Time [Member] | Fair Value, Inputs, Level 3 [Member]
|
||
Deposits: | ||
Deposits | 758,350 | |
Carrying (Reported) Amount, Fair Value Disclosure [Member]
|
||
Cash and due from banks | 320,925 | 530,045 |
Investment securities held to maturity: | ||
Investment securities held to maturity | 1,206,646 | 922,803 |
Loans | 2,285,696 | 2,491,209 |
Other assets - FDIC receivable | 20,885 | 40,113 |
Deposits: | ||
Deposits | 4,208,499 | 4,249,921 |
Short-term borrowed funds | 81,582 | 115,689 |
Federal Home Loan Bank advances | 25,911 | 26,023 |
Term repurchase agreement | 10,000 | 10,000 |
Debt financing | 15,000 | 15,000 |
Estimate of Fair Value, Fair Value Disclosure [Member]
|
||
Cash and due from banks | 320,925 | 530,045 |
Investment securities held to maturity: | ||
Investment securities held to maturity | 1,232,813 | 947,493 |
Loans | 2,307,635 | 2,515,095 |
Other assets - FDIC receivable | 20,861 | 40,046 |
Deposits: | ||
Deposits | 4,211,047 | 4,250,164 |
Short-term borrowed funds | 81,582 | 115,689 |
Federal Home Loan Bank advances | 26,364 | 26,532 |
Term repurchase agreement | 10,166 | 10,242 |
Debt financing | 15,485 | 15,222 |
Fair Value, Inputs, Level 1 [Member]
|
||
Cash and due from banks | 320,925 | |
Investment securities held to maturity: | ||
Investment securities held to maturity | 4,316 | |
Deposits: | ||
Deposits | 3,452,697 | |
Short-term borrowed funds | 81,582 | |
Federal Home Loan Bank advances | 26,364 | |
Fair Value, Inputs, Level 2 [Member]
|
||
Investment securities held to maturity: | ||
Investment securities held to maturity | 1,228,497 | |
Deposits: | ||
Term repurchase agreement | 10,166 | |
Debt financing | 15,485 | |
Fair Value, Inputs, Level 3 [Member]
|
||
Investment securities held to maturity: | ||
Loans | 2,307,635 | |
Other assets - FDIC receivable | 20,861 | |
Deposits: | ||
Deposits | $ 758,350 |
Note 5 - Concentration of Credit Risk (Detail) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Loan Commitments And Standby Letters Of Credit (in Dollars) | $ 73,497 | $ 77,988 |
Commercial Real Estate Loans [Member]
|
||
Loan To Value Ratio Requirement | 75.00% | |
Residential Real Estate Loans [Member]
|
||
Loan To Value Ratio Requirement | 80.00% |
Note 4 - Loans and Allowance for Credit Losses (Detail) - Loans by delinquency and nonaccrual status (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2012
|
Dec. 31, 2011
|
||||
---|---|---|---|---|---|---|
Current and Accruing | $ 2,231,509 | $ 2,411,959 | ||||
30-89 Days Past Due and Accruing | 38,591 | 56,459 | ||||
Past Due 90 days or More and Accruing | 665 | 2,322 | ||||
Nonaccrual | 46,454 | 53,066 | ||||
Total Loans | 2,317,219 | 2,523,806 | ||||
Originated Loans [Member] | Commercial Portfolio Segment [Member]
|
||||||
Current and Accruing | 347,329 | 388,322 | ||||
30-89 Days Past Due and Accruing | 2,583 | 6,953 | ||||
Nonaccrual | 7,675 | 3,171 | ||||
Total Loans | 357,587 | 398,446 | ||||
Originated Loans [Member] | Commercial Real Estate Portfolio Segment [Member]
|
||||||
Current and Accruing | 646,856 | 679,633 | ||||
30-89 Days Past Due and Accruing | 11,385 | 16,967 | ||||
Past Due 90 days or More and Accruing | 1,626 | |||||
Nonaccrual | 4,394 | 6,429 | ||||
Total Loans | 662,635 | 704,655 | ||||
Originated Loans [Member] | Construction Portfolio Segment [Member]
|
||||||
Current and Accruing | 9,400 | 10,664 | ||||
30-89 Days Past Due and Accruing | 87 | 570 | ||||
Nonaccrual | 3,068 | 3,346 | ||||
Total Loans | 12,555 | 14,580 | ||||
Originated Loans [Member] | Residential Portfolio Segment [Member]
|
||||||
Current and Accruing | 247,477 | 262,917 | ||||
30-89 Days Past Due and Accruing | 423 | 5,648 | ||||
Nonaccrual | 1,399 | 2,546 | ||||
Total Loans | 249,299 | 271,111 | ||||
Originated Loans [Member] | Consumer Portfolio Segment [Member]
|
||||||
Current and Accruing | 465,145 | 467,015 | ||||
30-89 Days Past Due and Accruing | 3,822 | 6,324 | ||||
Past Due 90 days or More and Accruing | 525 | 421 | ||||
Nonaccrual | 10 | 55 | ||||
Total Loans | 469,502 | 473,815 | ||||
Originated Loans [Member]
|
||||||
Current and Accruing | 1,716,207 | 1,808,551 | ||||
30-89 Days Past Due and Accruing | 18,300 | 36,462 | ||||
Past Due 90 days or More and Accruing | 525 | 2,047 | ||||
Nonaccrual | 16,546 | 15,547 | ||||
Total Loans | 1,751,578 | 1,862,607 | ||||
Purchased Non-Covered Loans [Member]
|
||||||
Current and Accruing | 80,850 | 101,585 | ||||
30-89 Days Past Due and Accruing | 1,668 | 1,095 | ||||
Past Due 90 days or More and Accruing | 34 | |||||
Nonaccrual | 19,872 | 23,207 | ||||
Total Loans | 102,390 | 125,921 | ||||
Purchased Covered Loans [Member]
|
||||||
Current and Accruing | 434,452 | 501,823 | ||||
30-89 Days Past Due and Accruing | 18,623 | 18,902 | ||||
Past Due 90 days or More and Accruing | 140 | 241 | ||||
Nonaccrual | 10,036 | 14,312 | ||||
Total Loans | 463,251 | [1] | 535,278 | [1] | ||
Commercial Portfolio Segment [Member]
|
||||||
Total Loans | 446,050 | 513,362 | ||||
Commercial Real Estate Portfolio Segment [Member]
|
||||||
Total Loans | 1,021,329 | 1,114,496 | ||||
Construction Portfolio Segment [Member]
|
||||||
Total Loans | 26,430 | 34,437 | ||||
Residential Portfolio Segment [Member]
|
||||||
Total Loans | 262,107 | 286,727 | ||||
Consumer Portfolio Segment [Member]
|
||||||
Total Loans | $ 561,303 | $ 574,784 | ||||
|
Note 9 - Debt Financing (Detail) - Schedule of debt financing and notes payable (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Senior fixed-rate note | $ 15,000 | $ 15,000 |
Total debt financing | $ 15,000 | $ 15,000 |
Note 8 - Fair Value Measurements (Detail) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2012
|
Mar. 31, 2012
|
Dec. 31, 2011
|
Jun. 30, 2011
|
Mar. 31, 2011
|
Dec. 31, 2010
|
---|---|---|---|---|---|---|
FDIC Indemnification Rate | 80.00% | |||||
Loans and Leases Receivable, Allowance | $ 31,523 | $ 31,883 | $ 32,597 | $ 33,008 | $ 34,321 | $ 35,636 |
Purchased Covered Loans [Member]
|
||||||
Loans and Leases Receivable, Allowance | 240 | 139 | ||||
Fair Value Discount, Credit Default Risk, Purchased Loans | 30,366 | 46,282 | ||||
Purchased Non-Covered Loans [Member]
|
||||||
Fair Value Discount, Credit Default Risk, Purchased Loans | $ 8,028 | $ 10,211 |
Note 2 - Accounting Policies
|
6 Months Ended |
---|---|
Jun. 30, 2012
|
|
Significant Accounting Policies [Text Block] |
Note
2: Accounting Policies
The
Company’s accounting policies are discussed in Note 1
to the audited consolidated financial statements included in
the Company’s Annual Report on Form 10-K for the year
ended December 31, 2011. Certain amounts in prior
periods have been reclassified to conform to the current
presentation.
Certain
accounting policies underlying the preparation of these
financial statements require Management to make estimates and
judgments. These estimates and judgments may significantly
affect reported amounts of assets and liabilities, revenues
and expenses, and disclosures of contingent assets and
liabilities. Management exercises judgment to estimate the
appropriate level of the allowance for credit losses, the
acquisition date fair value of purchased loans, and the
evaluation of other than temporary impairment of investment
securities, which are discussed in the Company’s
accounting policies.
Recently
Adopted Accounting Standards
FASB ASU
2011-03, Reconsideration
of Effective Control for Repurchase Agreements, was
issued April 2011 addressing the accounting for repurchase
agreements and other agreements that both entitle and
obligate a transferor to repurchase or redeem financial
assets before their maturity. The amendments
remove from the assessment of effective control (1) the
criterion requiring the transferor to have the ability to
repurchase or redeem the financial assets on substantially
the agreed terms, even in the event of default by the
transferee, and (2) the collateral maintenance implementation
guidance related to that criterion. The Company
adopted the provisions of the Update in the first quarter of
2012 with prospective application to new transactions or
existing transactions modified on or after January 1, 2012.
The adoption of the Update did not have a material effect on
the Company’s financial statements at the date of
adoption.
FASB ASU
2011-04, Amendments to
Achieve Common Fair Value Measurement and Disclosure
Requirements in U.S. GAAP and IFRSs, was issued May
2011 as a result of the FASB and International Accounting
Standards Board’s (IASB) goal to develop common
requirements for measuring fair value and for disclosing
information about fair value measurements in accordance with
U.S. generally accepted accounting principles and
International Financial Reporting Standards. The Company
adopted the provisions of the Update in the first quarter of
2012 with prospective application, resulting in expanded fair
value disclosure. The adoption of the Update did not have a
material effect on the Company’s financial statements
at the date of adoption.
FASB ASU
2011-05, Presentation of
Comprehensive Income, was issued June 2011 requiring
that all changes in stockholders’ equity be presented
either in a single continuous statement of comprehensive
income or in two separate but consecutive
statements. This Update also requires that
reclassification adjustments for items that are reclassified
from other comprehensive income to net income be presented on
the face of the financial statements. The Company adopted the
provisions of the Update in the first quarter of 2012 with
retrospective application, resulting in the addition of a new
financial statement titled “Consolidated Statements of
Comprehensive Income”.
FASB ASU
2011-12, Deferral of the
Effective Date for Amendments to the Presentation of
Reclassifications of Items Out of Accumulated Other
Comprehensive Income in Accounting Standards Update No.
2011-05, was issued December 2011 updating and
superseding certain pending paragraphs relating to the
presentation on the face of the financial statements the
effects of reclassifications out of accumulated other
comprehensive income on the components of net income and
other comprehensive income. This Update was
effective concurrent with ASU 2011-05, Presentation of
Comprehensive Income, and did not have a material
effect on the Company’s financial statements at the
date of adoption.
FASB ASU
2011-08, Testing for
Goodwill Impairment, was issued September 2011 giving
an entity the option to first assess qualitative factors to
determine whether the existence of events or circumstances
leads to a determination that it is more likely than not that
the fair value of a reporting unit is less than its carrying
amount. If, after assessing the totality of events or
circumstances, an entity determines it is more likely than
not that the fair value of a reporting unit is more than its
carrying amount, then performing the two-step impairment test
is unnecessary. However, if an entity concludes otherwise,
then it is required to perform the first step of the two-step
impairment test by calculating the fair value of the
reporting unit and comparing the fair value with the carrying
amount of the reporting unit. If the carrying amount of a
reporting unit exceeds its fair value, then the entity is
required to perform the second step of the goodwill
impairment test to measure the amount of the impairment loss,
if any. Under the amendments in this Update, an entity has
the option to bypass the qualitative assessment for any
reporting unit in any period and proceed directly to
performing the first step of the two-step goodwill impairment
test. An entity may resume performing the qualitative
assessment in any subsequent period. The Company adopted the
provisions of the Update in the first quarter of 2012. The
adoption of the Update did not have a material effect on the
Company’s financial statements at the date of
adoption.
Recently
Issued Accounting Standards
FASB ASU
2011-11, Disclosures about
Offsetting Assets and Liabilities, was issued December
2011 to require an entity to disclose information about
offsetting and related arrangements to enable users of its
financial statements to understand the effect of those
arrangements on its financial position. An entity is required
to apply the amendments for annual reporting periods
beginning on or after January 1, 2013, and interim periods
within those annual periods. An entity should provide the
disclosures required by those amendments retrospectively for
all comparative periods presented. The Update will
not have a material effect on the Company’s financial
statements at the date of adoption.
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