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 September 30, 2012
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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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CALIFORNIA | 94-2156203 |
(State or Other Jurisdiction of | (I.R.S. Employer |
Incorporation or Organization) | Identification No.) |
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 |
Shares outstanding as of October 26, 2012
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Common Stock,
No Par Value
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27,386,000
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Page
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PART I - FINANCIAL INFORMATION | ||
Item 1 | ||
Item 2 | ||
Item 3 | ||
Item 4 | ||
Item 1 | ||
Item 1A | ||
Item 2 | ||
Item 3 | ||
Item 4 | ||
Item 5 | ||
Item 6 | ||
Exhibit 31.1 - Certification of Chief Executive Officer pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a)
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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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Exhibit 32.1 - Certification of Chief Executive Officer Required by 18 U.S.C. Section 1350
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Exhibit 32.2 - Certification of Chief Financial Officer Required by 18 U.S.C. Section 1350
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At September 30,
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At December 31,
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|||||||
2012
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2011
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|||||||
(In thousands)
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||||||||
Assets:
|
||||||||
Cash and due from banks
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$ | 367,964 | $ | 530,045 | ||||
Investment securities available for sale
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738,462 | 638,753 | ||||||
Investment securities held to maturity, with fair values of: $1,190,345 at September 30, 2012, $947,493 at December 31, 2011
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1,158,731 | 922,803 | ||||||
Purchased covered loans
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418,364 | 535,278 | ||||||
Purchased non-covered loans
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82,676 | 125,921 | ||||||
Originated loans
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1,708,414 | 1,862,607 | ||||||
Allowance for loan losses
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(30,966 | ) | (32,597 | ) | ||||
Total loans
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2,178,488 | 2,491,209 | ||||||
Non-covered other real estate owned
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14,842 | 26,500 | ||||||
Covered other real estate owned
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12,437 | 19,135 | ||||||
Premises and equipment, net
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38,386 | 36,548 | ||||||
Identifiable intangibles, net
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24,553 | 28,629 | ||||||
Goodwill
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121,673 | 121,673 | ||||||
Other assets
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204,091 | 226,866 | ||||||
Total Assets
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$ | 4,859,627 | $ | 5,042,161 | ||||
Liabilities:
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||||||||
Deposits:
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||||||||
Noninterest bearing deposits
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$ | 1,594,379 | $ | 1,562,254 | ||||
Interest bearing deposits:
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||||||||
Transaction
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745,852 | 734,988 | ||||||
Savings
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1,133,788 | 1,148,178 | ||||||
Time
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656,538 | 804,501 | ||||||
Total deposits
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4,130,557 | 4,249,921 | ||||||
Short-term borrowed funds
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55,630 | 115,689 | ||||||
Federal Home Loan Bank advances
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25,855 | 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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63,744 | 66,887 | ||||||
Total Liabilities
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4,300,786 | 4,483,520 | ||||||
Shareholders' Equity:
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||||||||
Common stock (no par value), authorized - 150,000 shares
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||||||||
Issued and outstanding: 27,396 at September 30, 2012, 28,150 at December 31, 2011
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371,211 | 377,775 | ||||||
Deferred compensation
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3,101 | 3,060 | ||||||
Accumulated other comprehensive income
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14,454 | 11,369 | ||||||
Retained earnings
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170,075 | 166,437 | ||||||
Total Shareholders' Equity
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558,841 | 558,641 | ||||||
Total Liabilities and Shareholders' Equity
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$ | 4,859,627 | $ | 5,042,161 |
For the Three Months
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For the Nine Months
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|||||||||||||||
Ended September 30,
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||||||||||||||||
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)
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||||||||||||||||
Interest and Fee Income:
|
||||||||||||||||
Loans
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$ | 31,779 | $ | 39,899 | $ | 101,180 | $ | 122,534 | ||||||||
Investment securities available for sale
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4,918 | 5,526 | 14,644 | 16,428 | ||||||||||||
Investment securities held to maturity
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8,575 | 6,551 | 24,646 | 18,597 | ||||||||||||
Total Interest and Fee Income
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45,272 | 51,976 | 140,470 | 157,559 | ||||||||||||
Interest Expense:
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||||||||||||||||
Deposits
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1,020 | 1,677 | 3,314 | 5,344 | ||||||||||||
Short-term borrowed funds
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15 | 62 | 63 | 170 | ||||||||||||
Term repurchase agreement
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25 | 14 | 74 | 14 | ||||||||||||
Federal Home Loan Bank advances
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122 | 118 | 361 | 398 | ||||||||||||
Debt financing and notes payable
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200 | 200 | 601 | 601 | ||||||||||||
Total Interest Expense
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1,382 | 2,071 | 4,413 | 6,527 | ||||||||||||
Net Interest Income
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43,890 | 49,905 | 136,057 | 151,032 | ||||||||||||
Provision for Loan Losses
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2,800 | 2,800 | 8,400 | 8,400 | ||||||||||||
Net Interest Income After Provision For Loan Losses
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41,090 | 47,105 | 127,657 | 142,632 | ||||||||||||
Noninterest Income:
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||||||||||||||||
Service charges on deposit accounts
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6,847 | 7,430 | 20,969 | 22,529 | ||||||||||||
Merchant processing services
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2,411 | 2,358 | 7,333 | 6,921 | ||||||||||||
Debit card fees
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1,308 | 1,269 | 3,816 | 3,752 | ||||||||||||
ATM processing fees
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782 | 980 | 2,648 | 2,911 | ||||||||||||
Trust fees
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540 | 432 | 1,526 | 1,407 | ||||||||||||
Financial services commissions
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175 | 111 | 540 | 257 | ||||||||||||
Loss on sale of securities
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- | - | (1,287 | ) | - | |||||||||||
Other
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2,563 | 2,625 | 7,283 | 7,462 | ||||||||||||
Total Noninterest Income
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14,626 | 15,205 | 42,828 | 45,239 | ||||||||||||
Noninterest Expense:
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||||||||||||||||
Salaries and related benefits
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14,294 | 14,401 | 43,833 | 44,388 | ||||||||||||
Occupancy
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3,901 | 4,010 | 11,609 | 12,085 | ||||||||||||
Outsourced data processing services
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2,156 | 2,165 | 6,318 | 6,743 | ||||||||||||
Amortization of identifiable intangibles
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1,336 | 1,477 | 4,076 | 4,505 | ||||||||||||
Furniture and equipment
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991 | 943 | 2,883 | 2,915 | ||||||||||||
Professional fees
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786 | 1,185 | 2,455 | 3,489 | ||||||||||||
Courier service
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772 | 840 | 2,350 | 2,535 | ||||||||||||
Other real estate owned
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679 | 700 | 912 | 1,835 | ||||||||||||
Settlements
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- | - | - | 2,100 | ||||||||||||
Other
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4,354 | 5,662 | 14,215 | 16,419 | ||||||||||||
Total Noninterest Expense
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29,269 | 31,383 | 88,651 | 97,014 | ||||||||||||
Income Before Income Taxes
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26,447 | 30,927 | 81,834 | 90,857 | ||||||||||||
Provision for income taxes
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6,425 | 8,495 | 19,843 | 24,774 | ||||||||||||
Net Income
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$ | 20,022 | $ | 22,432 | $ | 61,991 | $ | 66,083 | ||||||||
Average Common Shares Outstanding
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27,513 | 28,433 | 27,769 | 28,739 | ||||||||||||
Diluted Average Common Shares Outstanding
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27,565 | 28,498 | 27,821 | 28,879 | ||||||||||||
Per Common Share Data:
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||||||||||||||||
Basic earnings
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$ | 0.73 | $ | 0.79 | $ | 2.23 | $ | 2.30 | ||||||||
Diluted earnings
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0.73 | 0.79 | 2.23 | 2.29 | ||||||||||||
Dividends paid
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0.37 | 0.36 | 1.11 | 1.08 |
For the Three Months
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For the Nine Months
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|||||||||||||||
Ended September 30,
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||||||||||||||||
2012
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2011
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2012
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2011
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|||||||||||||
(In thousands)
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||||||||||||||||
Net income
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$ | 20,022 | $ | 22,432 | $ | 61,991 | $ | 66,083 | ||||||||
Other comprehensive income:
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||||||||||||||||
Increase in net unrealized gains on securities available for sale
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2,441 | 4,376 | 5,277 | 18,307 | ||||||||||||
Deferred tax expense
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(1,026 | ) | (1,841 | ) | (2,219 | ) | (7,698 | ) | ||||||||
Increase in net unrealized gains on securities available for sale, net of tax
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1,415 | 2,535 | 3,058 | 10,609 | ||||||||||||
Post-retirement benefit transition obligation amortization
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15 | 15 | 45 | 45 | ||||||||||||
Deferred tax expense
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(6 | ) | (6 | ) | (18 | ) | (18 | ) | ||||||||
Post-retirement benefit transition obligation amortization, net of tax
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9 | 9 | 27 | 27 | ||||||||||||
Total other comprehensive income
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1,424 | 2,544 | 3,085 | 10,636 | ||||||||||||
Total comprehensive income
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$ | 21,446 | $ | 24,976 | $ | 65,076 | $ | 76,719 |
Common
Shares |
Common
Stock |
Accumulated
CompensationDeferred
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Accumulated
IncomeOther
Comprehensive
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Retained
Earnings |
Total
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|||||||||||||||||||
(In thousands)
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||||||||||||||||||||||||
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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66,083 | 66,083 | ||||||||||||||||||||||
Other comprehensive income
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10,636 | 10,636 | ||||||||||||||||||||||
Exercise of stock options
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150 | 6,234 | 6,234 | |||||||||||||||||||||
Tax benefit increase upon exercise of stock options
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6 | 6 | ||||||||||||||||||||||
Restricted stock activity
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15 | 455 | 336 | 791 | ||||||||||||||||||||
Stock based compensation
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1,080 | 1,080 | ||||||||||||||||||||||
Stock awarded to employees
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2 | 75 | 75 | |||||||||||||||||||||
Purchase and retirement of stock
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(956 | ) | (12,337 | ) | (32,725 | ) | (45,062 | ) | ||||||||||||||||
Dividends
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(31,142 | ) | (31,142 | ) | ||||||||||||||||||||
Balance, September 30, 2011
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28,301 | $ | 374,398 | $ | 3,060 | $ | 10,795 | $ | 165,735 | $ | 553,988 | |||||||||||||
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
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61,991 | 61,991 | ||||||||||||||||||||||
Other comprehensive income
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3,085 | 3,085 | ||||||||||||||||||||||
Exercise of stock options
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69 | 2,917 | 2,917 | |||||||||||||||||||||
Tax benefit decrease upon exercise of stock options
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(9 | ) | (9 | ) | ||||||||||||||||||||
Restricted stock activity
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11 | 482 | 41 | 523 | ||||||||||||||||||||
Stock based compensation
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1,180 | 1,180 | ||||||||||||||||||||||
Stock awarded to employees
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2 | 74 | 74 | |||||||||||||||||||||
Purchase and retirement of stock
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(836 | ) | (11,208 | ) | (27,478 | ) | (38,686 | ) | ||||||||||||||||
Dividends
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(30,875 | ) | (30,875 | ) | ||||||||||||||||||||
Balance, September 30, 2012
|
27,396 | $ | 371,211 | $ | 3,101 | $ | 14,454 | $ | 170,075 | $ | 558,841 |
For the Nine Months
Ended September 30, |
||||||||
2012
|
2011
|
|||||||
(In thousands)
|
||||||||
Operating Activities:
|
||||||||
Net income
|
$ | 61,991 | $ | 66,083 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
10,574 | 10,460 | ||||||
Loan loss provision
|
8,400 | 8,400 | ||||||
Net amortization of deferred loan fees
|
(402 | ) | (295 | ) | ||||
Decrease in interest income receivable
|
1,183 | 74 | ||||||
(Increase) decrease in other assets
|
(155 | ) | 944 | |||||
Increase in income taxes payable
|
500 | 805 | ||||||
(Increase) decrease in net deferred tax asset
|
(7,370 | ) | 1,365 | |||||
Decrease in interest expense payable
|
(97 | ) | (1,196 | ) | ||||
Increase (decrease) in other liabilities
|
12,696 | (551 | ) | |||||
Stock option compensation expense
|
1,180 | 1,080 | ||||||
Tax benefit decrease (increase) upon exercise of stock options
|
9 | (6 | ) | |||||
Loss on sale of securities available for sale
|
1,287 | - | ||||||
Gain on sale of other assets
|
(656 | ) | (800 | ) | ||||
Net loss (gain) on sale of premises and equipment
|
78 | (398 | ) | |||||
Originations of mortgage loans for resale
|
(597 | ) | (450 | ) | ||||
Net proceeds from sale of mortgage loans originated for resale
|
626 | 471 | ||||||
Net gain on sale of foreclosed assets
|
(2,545 | ) | (280 | ) | ||||
Writedown of foreclosed assets
|
3,033 | 1,326 | ||||||
Net Cash Provided by Operating Activities
|
89,735 | 87,032 | ||||||
Investing Activities:
|
||||||||
Net repayments of loans
|
296,278 | 240,524 | ||||||
Proceeds from FDIC1 loss-sharing indemnification
|
25,768 | 7,956 | ||||||
Purchases of investment securities available for sale
|
(211,349 | ) | (208,707 | ) | ||||
Purchases of investment securities held to maturity
|
(410,829 | ) | (233,966 | ) | ||||
Proceeds from sale/maturity/calls of securities available for sale
|
116,916 | 204,168 | ||||||
Proceeds from maturity/calls of securities held to maturity
|
156,363 | 61,737 | ||||||
Net change in FRB2/FHLB3 securities
|
1,336 | (12,698 | ) | |||||
Proceeds from sale of foreclosed assets
|
23,155 | 17,702 | ||||||
Purchases of premises and equipment
|
(3,875 | ) | (2,198 | ) | ||||
Proceeds from sale of premises and equipment
|
- | 640 | ||||||
Net Cash Provided by Investing Activities
|
(6,237 | ) | 75,158 | |||||
Financing Activities:
|
||||||||
Net change in deposits
|
(118,868 | ) | 60,375 | |||||
Net change in short-term borrowings and FHLB3 advances
|
(60,058 | ) | (21,640 | ) | ||||
Repayments of notes payable and debt financing
|
- | (10,000 | ) | |||||
Exercise of stock options
|
2,917 | 6,234 | ||||||
Tax benefit (decrease) increase upon exercise of stock options
|
(9 | ) | 6 | |||||
Repurchases/retirement of stock
|
(38,686 | ) | (45,062 | ) | ||||
Dividends paid
|
(30,875 | ) | (31,142 | ) | ||||
Net Cash Used in Financing Activities
|
(245,579 | ) | (41,229 | ) | ||||
Net Change In Cash and Due from Banks
|
(162,081 | ) | 120,961 | |||||
Cash and Due from Banks at Beginning of Period
|
530,045 | 338,793 | ||||||
Cash and Due from Banks at End of Period
|
$ | 367,964 | $ | 459,754 | ||||
Supplemental Cash Flow Disclosures:
|
||||||||
Supplemental disclosure of non cash activities:
|
||||||||
Loan collateral transferred to other real estate owned
|
$ | 6,362 | $ | 33,196 | ||||
Supplemental disclosure of cash flow activities:
|
||||||||
Interest paid for the period
|
5,091 | 9,028 | ||||||
Income tax payments for the period
|
27,466 | 22,604 |
Investment Securities Available for Sale
At September 30, 2012 |
||||||||||||||||
Amortized
Cost |
Gross
GainsUnrealized
|
Gross
LossesUnrealized
|
Fair
Value |
|||||||||||||
(In thousands)
|
||||||||||||||||
U.S. Treasury securities
|
$ | 3,524 | $ | 45 | $ | - | $ | 3,569 | ||||||||
Securities of U.S. Government sponsored entities
|
85,319 | 323 | - | 85,642 | ||||||||||||
Residential mortgage-backed securities
|
61,206 | 4,661 | (1 | ) | 65,866 | |||||||||||
Commercial mortgage-backed securities
|
4,206 | 82 | - | 4,288 | ||||||||||||
Obligations of States and political subdivisions
|
210,258 | 15,627 | (236 | ) | 225,649 | |||||||||||
Residential collateralized mortgage obligations
|
106,609 | 1,435 | (288 | ) | 107,756 | |||||||||||
Asset-backed securities
|
16,541 | 5 | (193 | ) | 16,353 | |||||||||||
FHLMC and FNMA stock
|
824 | 288 | (40 | ) | 1,072 | |||||||||||
Corporate securities
|
222,563 | 2,646 | (750 | ) | 224,459 | |||||||||||
Other securities
|
2,147 | 1,699 | (38 | ) | 3,808 | |||||||||||
Total
|
$ | 713,197 | $ | 26,811 | $ | (1,546 | ) | $ | 738,462 |
Investment Securities Held to Maturity
At September 30, 2012 |
||||||||||||||||
Amortized
Cost |
Gross
Unrealized |
Gross
Unrealized |
Fair
Value |
|||||||||||||
(In thousands)
|
||||||||||||||||
Securities of U.S. Government sponsored entities
|
$ | 3,739 | $ | 29 | $ | - | $ | 3,768 | ||||||||
Residential mortgage-backed securities
|
77,166 | 2,469 | (6 | ) | 79,629 | |||||||||||
Obligations of States and political subdivisions
|
651,747 | 25,496 | (82 | ) | 677,161 | |||||||||||
Residential collateralized mortgage obligations
|
426,079 | 4,291 | (583 | ) | 429,787 | |||||||||||
Total
|
$ | 1,158,731 | $ | 32,285 | $ | (671 | ) | $ | 1,190,345 |
Investment Securities Available for Sale
At December 31, 2011 |
||||||||||||||||
Amortized
Cost |
Gross
GainsUnrealized
|
Gross
LossesUnrealized
|
Fair
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 |
||||||||||||||||
Amortized
Cost |
Gross
GainsUnrealized
|
Gross
LossesUnrealized
|
Fair
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 September 30, 2012
|
||||||||||||||||
Securities Available
for Sale |
Securities Held
to Maturity |
|||||||||||||||
Amortized
Cost |
Fair
Value |
Amortized
Cost |
Fair
Value |
|||||||||||||
(In thousands)
|
||||||||||||||||
Maturity in years:
|
||||||||||||||||
1 year or less
|
$ | 42,448 | $ | 42,703 | $ | 9,385 | $ | 9,532 | ||||||||
Over 1 to 5 years
|
322,278 | 325,349 | 167,756 | 172,534 | ||||||||||||
Over 5 to 10 years
|
61,047 | 65,023 | 260,070 | 270,793 | ||||||||||||
Over 10 years
|
112,432 | 122,597 | 218,275 | 228,070 | ||||||||||||
Subtotal
|
538,205 | 555,672 | 655,486 | 680,929 | ||||||||||||
Mortgage-backed securities and residential collateralized mortgage obligations
|
172,021 | 177,910 | 503,245 | 509,416 | ||||||||||||
Other securities
|
2,971 | 4,880 | - | - | ||||||||||||
Total
|
$ | 713,197 | $ | 738,462 | $ | 1,158,731 | $ | 1,190,345 |
At December 31, 2011
|
||||||||||||||||
Securities Available
for Sale |
Securities Held
to Maturity |
|||||||||||||||
Amortized
Cost |
Fair
Value |
Amortized
Cost |
Fair
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 September 30, 2012 |
||||||||||||||||||||||||
Less than 12 months
|
12 months or longer
|
Total
|
||||||||||||||||||||||
Fair
Value
|
Unrealized
Losses |
Fair
Value
|
Unrealized
Losses |
Fair
Value
|
Unrealized
Losses |
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Residential mortgage-backed securities
|
$ | 170 | $ | (1 | ) | $ | 36 | $ | - | $ | 206 | $ | (1 | ) | ||||||||||
Obligations of States and political subdivisions
|
2,403 | (41 | ) | 9,415 | (195 | ) | 11,818 | (236 | ) | |||||||||||||||
Residential collateralized mortgage obligations
|
65,215 | (288 | ) | - | - | 65,215 | (288 | ) | ||||||||||||||||
Asset-backed securities
|
- | - | 11,318 | (193 | ) | 11,318 | (193 | ) | ||||||||||||||||
FHLMC and FNMA stock
|
309 | (36 | ) | 1 | (4 | ) | 310 | (40 | ) | |||||||||||||||
Corporate securities
|
4,841 | (50 | ) | 39,300 | (700 | ) | 44,141 | (750 | ) | |||||||||||||||
Other securities
|
- | - | 1,962 | (38 | ) | 1,962 | (38 | ) | ||||||||||||||||
Total
|
$ | 72,938 | $ | (416 | ) | $ | 62,032 | $ | (1,130 | ) | $ | 134,970 | $ | (1,546 | ) |
Investment Securities Held to Maturity
At September 30, 2012 |
||||||||||||||||||||||||
Less than 12 months
|
12 months or longer
|
Total
|
||||||||||||||||||||||
|
|
|
||||||||||||||||||||||
Fair
Value
|
Unrealized
Losses |
Fair
Value
|
Unrealized
Losses |
Fair
Value
|
Unrealized
Losses |
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Residential mortgage-backed securities
|
$ | 754 | $ | (6 | ) | $ | - | $ | - | $ | 754 | $ | (6 | ) | ||||||||||
Obligations of States and political subdivisions
|
9,279 | (67 | ) | 2,755 | (15 | ) | 12,034 | (82 | ) | |||||||||||||||
Residential collateralized mortgage obligations
|
37,907 | (532 | ) | 6,412 | (51 | ) | 44,319 | (583 | ) | |||||||||||||||
Total
|
$ | 47,940 | $ | (605 | ) | $ | 9,167 | $ | (66 | ) | $ | 57,107 | $ | (671 | ) |
Investment Securities Available for Sale
At December 31, 2011 |
||||||||||||||||||||||||
Less than 12 months
|
12 months or longer
|
Total
|
||||||||||||||||||||||
Fair
Value
|
Unrealized
Losses |
Fair
Value
|
Unrealized
Losses |
Fair
Value
|
Unrealized
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
|
||||||||||||||||||||||
Fair
Value
|
Unrealized
Losses |
Fair
Value
|
Unrealized
Losses |
Fair
Value
|
Unrealized
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 Nine Months
|
|||||||||||||||
Ended September 30,
|
||||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Taxable
|
$ | 5,705 | $ | 4,624 | $ | 15,742 | $ | 12,604 | ||||||||
Tax-exempt
|
7,788 | 7,453 | 23,548 | 22,421 | ||||||||||||
Total interest income from investment securities
|
$ | 13,493 | $ | 12,077 | $ | 39,290 | $ | 35,025 |
At September 30, 2012
|
||||||||||||||||||||||||
Commercial
|
Commercial
Real Estate |
Construction
|
Residential
Real Estate |
Consumer
Installment |
Total
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Originated loans
|
$ | 350,229 | $ | 646,450 | $ | 8,896 | $ | 236,310 | $ | 466,529 | $ | 1,708,414 | ||||||||||||
Purchased covered loans:
|
||||||||||||||||||||||||
Impaired
|
321 | 8,266 | 2,260 | - | 258 | 11,105 | ||||||||||||||||||
Non impaired
|
67,921 | 279,619 | 9,450 | 9,823 | 67,687 | 434,500 | ||||||||||||||||||
Purchase discount
|
(9,816 | ) | (16,558 | ) | (366 | ) | (433 | ) | (68 | ) | (27,241 | ) | ||||||||||||
Purchased non-covered loans:
|
||||||||||||||||||||||||
Impaired
|
1,656 | 7,131 | - | - | 298 | 9,085 | ||||||||||||||||||
Non impaired
|
10,983 | 42,842 | 1,619 | 3,428 | 20,214 | 79,086 | ||||||||||||||||||
Purchase discount
|
(845 | ) | (2,078 | ) | (95 | ) | (474 | ) | (2,003 | ) | (5,495 | ) | ||||||||||||
Total
|
$ | 420,449 | $ | 965,672 | $ | 21,764 | $ | 248,654 | $ | 552,915 | $ | 2,209,454 |
At December 31, 2011
|
||||||||||||||||||||||||
Commercial
|
Commercial
Real Estate |
Construction
|
Residential
Real Estate |
Consumer
& OtherInstallment
|
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
September 30, 2012Nine Months Ended
|
For the Year Ended
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
|
(10,156 | ) | (14,965 | ) | ||||
Carrying amount at the end of the period
|
$ | 8,435 | $ | 18,591 |
For the
Nine Months Ended |
For the Year Ended
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
|
(8,285 | ) | (18,153 | ) | ||||
Carrying amount at the end of the period
|
$ | 7,287 | $ | 15,572 |
For the
Nine Months Ended |
For the
Year Ended |
|||||||
Accretable yield for purchased loans
|
(In thousands)
|
|||||||
Balance at the beginning of the period
|
$ | 9,990 | $ | 6,089 | ||||
Reclassification from nonaccretable difference
|
8,290 | 16,906 | ||||||
Accretion
|
(12,962 | ) | (13,005 | ) | ||||
Disposals and other
|
- | - | ||||||
Balance at the end of the period
|
$ | 5,318 | $ | 9,990 | ||||
Accretion
|
$ | (12,962 | ) | $ | (13,005 | ) | ||
Reduction in FDIC indemnification asset
|
9,823 | 9,315 | ||||||
(Increase) in interest income
|
$ | (3,139 | ) | $ | (3,690 | ) |
Allowance for Credit Losses
For the Three Months Ended September 30, 2012 |
||||||||||||||||||||||||||||||||||||
Commercial
|
Commercial
Real Estate |
Construction
|
Residential
Real Estate |
Consumer
Installment |
Purchased
Non-covered |
Purchased
Covered |
Unallocated
|
Total
|
||||||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||||||
Balance at beginning of period
|
$ | 6,330 | $ | 9,899 | $ | 2,681 | $ | 602 | $ | 3,031 | $ | - | $ | 240 | $ | 8,740 | $ | 31,523 | ||||||||||||||||||
Additions:
|
||||||||||||||||||||||||||||||||||||
Provision
|
829 | 587 | (87 | ) | 103 | 894 | 535 | 1,105 | (1,166 | ) | 2,800 | |||||||||||||||||||||||||
Deductions:
|
||||||||||||||||||||||||||||||||||||
Chargeoffs
|
(65 | ) | (168 | ) | (2,091 | ) | (224 | ) | (1,439 | ) | (535 | ) | (111 | ) | - | (4,633 | ) | |||||||||||||||||||
Recoveries
|
500 | 145 | 26 | - | 589 | - | 16 | - | 1,276 | |||||||||||||||||||||||||||
Net loan recoveries (losses)
|
435 | (23 | ) | (2,065 | ) | (224 | ) | (850 | ) | (535 | ) | (95 | ) | - | (3,357 | ) | ||||||||||||||||||||
Balance at end of period
|
7,594 | 10,463 | 529 | 481 | 3,075 | - | 1,250 | 7,574 | 30,966 | |||||||||||||||||||||||||||
Liability for off-balance sheet credit exposure
|
1,642 | 14 | 2 | - | 402 | - | - | 633 | 2,693 | |||||||||||||||||||||||||||
Total allowance for credit losses
|
$ | 9,236 | $ | 10,477 | $ | 531 | $ | 481 | $ | 3,477 | $ | - | $ | 1,250 | $ | 8,207 | $ | 33,659 |
Allowance for Credit Losses
For the Nine Months Ended September 30, 2012 |
||||||||||||||||||||||||||||||||||||
Commercial
|
Commercial
Real Estate |
Construction
|
Residential
Real Estate |
Consumer
and OtherInstallment
|
Purchased
Non-covered |
Purchased
Covered |
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
|
4,088 | 790 | 54 | 856 | 2,338 | 560 | 1,919 | (2,205 | ) | 8,400 | ||||||||||||||||||||||||||
Deductions:
|
||||||||||||||||||||||||||||||||||||
Chargeoffs
|
(3,623 | ) | (1,116 | ) | (2,091 | ) | (1,156 | ) | (4,303 | ) | (560 | ) | (723 | ) | - | (13,572 | ) | |||||||||||||||||||
Recoveries
|
1,117 | 178 | 224 | - | 1,968 | - | 54 | - | 3,541 | |||||||||||||||||||||||||||
Net loan losses
|
(2,506 | ) | (938 | ) | (1,867 | ) | (1,156 | ) | (2,335 | ) | (560 | ) | (669 | ) | - | (10,031 | ) | |||||||||||||||||||
Balance at end of period
|
7,594 | 10,463 | 529 | 481 | 3,075 | - | 1,250 | 7,574 | 30,966 | |||||||||||||||||||||||||||
Liability for off-balance sheet credit exposure
|
1,642 | 14 | 2 | - | 402 | - | - | 633 | 2,693 | |||||||||||||||||||||||||||
Total allowance for credit losses
|
$ | 9,236 | $ | 10,477 | $ | 531 | $ | 481 | $ | 3,477 | $ | - | $ | 1,250 | $ | 8,207 | $ | 33,659 |
Allowance for Credit Losses
For the Three Months Ended September 30, 2011 |
||||||||||||||||||||||||||||||||
Commercial
|
Commercial
Real Estate |
Construction
|
Residential
Real Estate |
Consumer
Installment |
Unallocated
|
Purchased
Covered |
Total
|
|||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||
Balance at beginning of period
|
$ | 6,729 | $ | 10,241 | $ | 3,959 | $ | 466 | $ | 3,522 | $ | 8,091 | $ | - | $ | 33,008 | ||||||||||||||||
Additions:
|
||||||||||||||||||||||||||||||||
Provision
|
539 | 1,422 | (826 | ) | 317 | 539 | 381 | 428 | 2,800 | |||||||||||||||||||||||
Deductions:
|
||||||||||||||||||||||||||||||||
Chargeoffs
|
(799 | ) | (398 | ) | (452 | ) | - | (1,575 | ) | - | (428 | ) | (3,652 | ) | ||||||||||||||||||
Recoveries
|
190 | - | - | - | 547 | - | - | 737 | ||||||||||||||||||||||||
Net loan losses
|
(609 | ) | (398 | ) | (452 | ) | - | (1,028 | ) | - | (428 | ) | (2,915 | ) | ||||||||||||||||||
Balance at end of period
|
6,659 | 11,265 | 2,681 | 783 | 3,033 | 8,472 | - | 32,893 | ||||||||||||||||||||||||
Liability for off-balance sheet credit exposure
|
1,835 | 1 | 62 | - | 150 | 645 | - | 2,693 | ||||||||||||||||||||||||
Total allowance for credit losses
|
$ | 8,494 | $ | 11,266 | $ | 2,743 | $ | 783 | $ | 3,183 | $ | 9,117 | $ | - | $ | 35,586 |
Allowance for Credit Losses
For the Nine Months Ended September 30, 2011 |
||||||||||||||||||||||||||||||||
Commercial
|
Commercial
Real Estate |
Construction
|
Residential
Real Estate |
Consumer
Installment |
Unallocated
|
Purchased
LoansCovered
|
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
|
3,518 | 2,057 | 1,347 | 693 | (429 | ) | 786 | 428 | 8,400 | |||||||||||||||||||||||
Deductions:
|
||||||||||||||||||||||||||||||||
Chargeoffs
|
(5,786 | ) | (399 | ) | (1,926 | ) | (527 | ) | (5,050 | ) | - | (428 | ) | (14,116 | ) | |||||||||||||||||
Recoveries
|
833 | - | - | - | 2,140 | - | - | 2,973 | ||||||||||||||||||||||||
Net loan losses
|
(4,953 | ) | (399 | ) | (1,926 | ) | (527 | ) | (2,910 | ) | - | (428 | ) | (11,143 | ) | |||||||||||||||||
Balance at end of period
|
6,659 | 11,265 | 2,681 | 783 | 3,033 | 8,472 | - | 32,893 | ||||||||||||||||||||||||
Liability for off-balance sheet credit exposure
|
1,835 | 1 | 62 | - | 150 | 645 | - | 2,693 | ||||||||||||||||||||||||
Total allowance for credit losses
|
$ | 8,494 | $ | 11,266 | $ | 2,743 | $ | 783 | $ | 3,183 | $ | 9,117 | $ | - | $ | 35,586 |
Recorded Investment in Loans and Related Impairment Method
At September 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
|
$ | 3,109 | $ | 87 | $ | - | $ | - | $ | - | $ | - | $ | 1,011 | $ | - | $ | 4,207 | ||||||||||||||||||
Collectively evaluated for impairment
|
6,127 | 10,390 | 531 | 481 | 3,477 | - | 239 | 8,207 | 29,452 | |||||||||||||||||||||||||||
Purchased loans with evidence of credit deterioration
|
- | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Total
|
$ | 9,236 | $ | 10,477 | $ | 531 | $ | 481 | $ | 3,477 | $ | - | $ | 1,250 | $ | 8,207 | $ | 33,659 | ||||||||||||||||||
Carrying value of loans:
|
||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 9,286 | $ | 1,563 | $ | - | $ | - | $ | - | $ | 3,874 | $ | 17,751 | $ | - | $ | 32,474 | ||||||||||||||||||
Collectively evaluated for impairment
|
340,943 | 644,887 | 8,896 | 236,310 | 466,529 | 71,515 | 392,178 | - | 2,161,258 | |||||||||||||||||||||||||||
Purchased loans with evidence of credit deterioration
|
- | - | - | - | - | 7,287 | 8,435 | - | 15,722 | |||||||||||||||||||||||||||
Total
|
$ | 350,229 | $ | 646,450 | $ | 8,896 | $ | 236,310 | $ | 466,529 | $ | 82,676 | $ | 418,364 | $ | - | $ | 2,209,454 |
Recorded Investment in Loans and Related Impairment Method
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 September 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
|
$ | 319,117 | $ | 582,830 | $ | 7,988 | $ | 233,582 | $ | 464,721 | $ | 49,461 | $ | 287,125 | $ | 1,944,824 | ||||||||||||||||
Special mention
|
12,509 | 29,439 | 436 | 471 | 264 | 9,265 | 23,270 | 75,654 | ||||||||||||||||||||||||
Substandard
|
14,030 | 34,181 | 472 | 2,257 | 1,148 | 27,938 | 133,665 | 213,691 | ||||||||||||||||||||||||
Doubtful
|
4,573 | - | - | - | 11 | 1,507 | 1,445 | 7,536 | ||||||||||||||||||||||||
Loss
|
- | - | - | - | 385 | - | 100 | 485 | ||||||||||||||||||||||||
Default risk purchase discount
|
- | - | - | - | - | (5,495 | ) | (27,241 | ) | (32,736 | ) | |||||||||||||||||||||
Total
|
$ | 350,229 | $ | 646,450 | $ | 8,896 | $ | 236,310 | $ | 466,529 | $ | 82,676 | $ | 418,364 | $ | 2,209,454 |
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 September 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
|
$ | 337,996 | $ | 2,049 | $ | - | $ | 10,184 | $ | 350,229 | ||||||||||
Commercial real estate
|
631,559 | 12,344 | - | 2,547 | 646,450 | |||||||||||||||
Construction
|
8,896 | - | - | - | 8,896 | |||||||||||||||
Residential real estate
|
235,464 | 567 | - | 279 | 236,310 | |||||||||||||||
Consumer installment & other
|
461,795 | 4,272 | 433 | 29 | 466,529 | |||||||||||||||
Total originated loans
|
1,675,710 | 19,232 | 433 | 13,039 | 1,708,414 | |||||||||||||||
Purchased non-covered loans
|
69,428 | 3,164 | 1 | 10,083 | 82,676 | |||||||||||||||
Purchased covered loans
|
390,684 | 7,023 | 59 | 20,598 | 418,364 | |||||||||||||||
Total
|
$ | 2,135,822 | $ | 29,419 | $ | 493 | $ | 43,720 | $ | 2,209,454 |
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 Nine Months
|
|||||||||||||||
Ended September 30,
|
||||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Interest income that would have been recognized had the loans performed in accordance with their original terms
|
$ | 767 | $ | 1,104 | $ | 2,345 | $ | 4,373 | ||||||||
Less: Interest income recognized on nonaccrual loans
|
(684 | ) | (1,010 | ) | (2,021 | ) | (3,886 | ) | ||||||||
Total reduction of interest income
|
$ | 83 | $ | 94 | $ | 324 | $ | 487 |
Impaired Loans
At September 30, 2012 |
||||||||||||
Recorded
Investment |
Unpaid
BalancePrincipal
|
Related
Allowance |
||||||||||
(In thousands)
|
||||||||||||
Impaired loans with no related allowance recorded:
|
||||||||||||
Commercial
|
$ | 6,947 | $ | 14,904 | $ | - | ||||||
Commercial real estate
|
21,152 | 18,086 | - | |||||||||
Construction
|
5,489 | 7,114 | - | |||||||||
Residential real estate
|
713 | 713 | - | |||||||||
Consumer installment and other
|
2,134 | 2,137 | - | |||||||||
Impaired loans with an allowance recorded:
|
||||||||||||
Commercial
|
14,906 | 15,676 | 3,979 | |||||||||
Commercial real estate
|
739 | 739 | 87 | |||||||||
Construction
|
1,172 | 1,172 | 141 | |||||||||
Total:
|
||||||||||||
Commercial
|
$ | 21,853 | $ | 30,580 | $ | 3,979 | ||||||
Commercial real estate
|
21,891 | 18,825 | 87 | |||||||||
Construction
|
6,661 | 8,286 | 141 | |||||||||
Residential real estate
|
713 | 713 | - | |||||||||
Consumer installment and other
|
2,134 | 2,137 | - |
Impaired Loans
At December 31, 2011 |
||||||||||||
Recorded
Investment |
Unpaid
Principal |
Related
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 September 30,
|
For the Nine Months Ended September 30,
|
|||||||||||||||||||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||||||||||||||||||
Average
Recorded |
Recognized
Interest |
Average
Recorded |
Recognized
Interest |
Average
Recorded |
Recognized
Interest |
Average
Recorded |
Recognized
Interest |
|||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||
Commercial
|
$ | 16,980 | $ | 71 | $ | 10,950 | $ | 39 | $ | 12,772 | $ | 188 | $ | 16,664 | $ | 548 | ||||||||||||||||
Commercial real estate
|
26,302 | 210 | 33,978 | 520 | 28,079 | 937 | 39,098 | 1,249 | ||||||||||||||||||||||||
Construction
|
8,081 | 29 | 17,065 | 122 | 6,891 | 188 | 21,839 | 295 | ||||||||||||||||||||||||
Residential real estate
|
1,158 | - | 225 | - | 712 | - | 374 | - | ||||||||||||||||||||||||
Consumer installment and other
|
2,493 | 9 | 2,474 | 7 | 2,618 | 35 | 2,444 | 24 | ||||||||||||||||||||||||
Total
|
$ | 55,014 | $ | 319 | $ | 64,692 | $ | 688 | $ | 51,072 | $ | 1,348 | $ | 80,419 | $ | 2,116 |
Troubled Debt Restructurings
At September 30, 2012 |
||||||||||||||||
Number of
Contracts |
Pre-Modification
Carrying Value |
Period-End
Carrying Value |
Period-End
AllowanceIndividual
Impairment
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Commercial
|
2 | $ | 326 | $ | 303 | $ | - | |||||||||
Commercial real estate
|
1 | 1,388 | 1,433 | - | ||||||||||||
Total
|
3 | $ | 1,714 | $ | 1,736 | $ | - |
Troubled Debt Restructurings
At December 31, 2011 |
||||||||||||||||
Number of
Contracts |
Pre-Modification
Carrying Value |
Period-End
Carrying Value |
Period-End
AllowanceIndividual
Impairment
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Commercial
|
2 | $ | 326 | $ | 321 | $ | - | |||||||||
Construction
|
1 | 3,183 | 3,126 | 1,794 | ||||||||||||
Total
|
3 | $ | 3,509 | $ | 3,447 | $ | 1,794 |
September 30, 2012
|
$ | 121,673 | ||
December 31, 2011
|
$ | 121,673 |
At September 30,
|
At December 31,
|
|||||||||||||||
2012
|
2011
|
|||||||||||||||
(In thousands)
|
||||||||||||||||
Gross
Carrying |
Accumulated
Amortization |
Gross
Carrying |
Accumulated
Amortization |
|||||||||||||
Core Deposit Intangibles
|
$ | 56,808 | $ | (33,766 | ) | $ | 56,808 | $ | (30,070 | ) | ||||||
Merchant Draft Processing Intangible
|
10,300 | (8,789 | ) | 10,300 | (8,409 | ) | ||||||||||
Total Identifiable Intangible Assets
|
$ | 67,108 | $ | (42,555 | ) | $ | 67,108 | $ | (38,479 | ) |
Core
Deposit |
Merchant
Draft |
Total
|
||||||||||
(In thousands)
|
||||||||||||
For the nine months ended September 30, 2012 (actual)
|
$ | 3,696 | $ | 380 | $ | 4,076 | ||||||
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 |
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)
|
||||||||||||||||
Investment securities available for sale:
|
||||||||||||||||
At September 30, 2012
|
$ | 738,462 | $ | 92,129 | $ | 646,333 | $ | - | ||||||||
At December 31, 2011
|
$ | 638,753 | $ | 125,101 | $ | 513,652 | $ | - |
At September 30, 2012
|
||||||||||||||||||||
Fair Value
|
Level 1
|
Level 2
|
Level 3
|
Total Losses
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Non-covered other real estate owned
|
$ | 7,970 | $ | - | $ | 7,970 | $ | - | $ | (2,167 | ) | |||||||||
Covered other real estate owned
|
7,999 | - | 7,999 | - | (102 | ) | ||||||||||||||
Originated impaired loans
|
5,021 | - | 2,021 | 3,000 | (1,985 | ) | ||||||||||||||
Purchased covered impaired loans
|
8,190 | - | 3,730 | 4,460 | (180 | ) | ||||||||||||||
Total assets measured at fair value on a nonrecurring basis
|
$ | 29,180 | $ | - | $ | 21,720 | $ | 7,460 | $ | (4,434 | ) |
At December 31, 2011
|
||||||||||||||||||||
Fair Value
|
Level 1
|
Level 2
|
Level 3
|
Total Losses
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Non-covered other real estate owned
|
$ | 6,350 | $ | - | $ | 6,350 | $ | - | $ | (1,000 | ) | |||||||||
Covered other real estate owned
|
10,695 | - | 10,695 | - | (578 | ) | ||||||||||||||
Originated impaired loans
|
2,502 | - | 2,502 | - | - | |||||||||||||||
Total assets measured at fair value on a nonrecurring basis
|
$ | 19,547 | $ | - | $ | 19,547 | $ | - | $ | (1,578 | ) |
At September 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
|
$ | 367,964 | $ | 367,964 | $ | 367,964 | $ | - | $ | - | ||||||||||
Investment securities held to maturity
|
1,158,731 | 1,190,345 | 3,768 | 1,186,577 | - | |||||||||||||||
Loans
|
2,178,488 | 2,197,978 | - | - | 2,197,978 | |||||||||||||||
Other assets - FDIC receivable
|
15,416 | 15,397 | - | - | 15,397 | |||||||||||||||
Financial Liabilities
|
||||||||||||||||||||
Deposits
|
$ | 4,130,557 | $ | 4,131,735 | $ | - | $ | 3,474,019 | $ | 657,716 | ||||||||||
Short-term borrowed funds
|
55,630 | 55,630 | - | 55,630 | - | |||||||||||||||
Federal Home Loan Bank advances
|
25,855 | 26,288 | 26,288 | - | - | |||||||||||||||
Term repurchase agreement
|
10,000 | 10,148 | - | 10,148 | - | |||||||||||||||
Debt financing
|
15,000 | 15,557 | - | 15,557 | - |
At December 31, 2011
|
||||||||
Carrying
Amount |
Estimated
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 |
For the Three Months
|
For the Nine Months
|
|||||||||||||||
Ended September 30,
|
||||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
(In thousands, except per share data)
|
||||||||||||||||
Net income (numerator)
|
$ | 20,022 | $ | 22,432 | $ | 61,991 | $ | 66,083 | ||||||||
Basic earnings per common share
|
||||||||||||||||
Weighted average number of common shares outstanding - basic (denominator)
|
27,513 | 28,433 | 27,769 | 28,739 | ||||||||||||
Basic earnings per common share
|
$ | 0.73 | $ | 0.79 | $ | 2.23 | $ | 2.30 | ||||||||
Diluted earnings per common share
|
||||||||||||||||
Weighted average number of common shares outstanding - basic
|
27,513 | 28,433 | 27,769 | 28,739 | ||||||||||||
Add exercise of options reduced by the number of shares that could have been purchased with the proceeds of such exercise
|
52 | 65 | 52 | 140 | ||||||||||||
Weighted average number of common shares outstanding - diluted (denominator)
|
27,565 | 28,498 | 27,821 | 28,879 | ||||||||||||
Diluted earnings per common share
|
$ | 0.73 | $ | 0.79 | $ | 2.23 | $ | 2.29 |
For the Three Months
|
For the Nine Months
|
|||||||||||||||
Ended September 30,
|
||||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
(In thousands, except per share data)
|
||||||||||||||||
Net Interest and Fee Income (FTE)1
|
$ | 48,712 | $ | 54,675 | $ | 150,743 | $ | 165,506 | ||||||||
Provision for Loan Losses
|
2,800 | 2,800 | 8,400 | 8,400 | ||||||||||||
Noninterest Income
|
||||||||||||||||
Loss on sale of securities
|
- | - | (1,287 | ) | - | |||||||||||
Other
|
14,626 | 15,205 | 44,115 | 45,239 | ||||||||||||
Total Noninterest Income
|
14,626 | 15,205 | 42,828 | 45,239 | ||||||||||||
Noninterest Expense:
|
||||||||||||||||
Settlements
|
- | - | - | 2,100 | ||||||||||||
Other
|
29,269 | 31,383 | 88,651 | 94,914 | ||||||||||||
Total Noninterest Expense
|
29,269 | 31,383 | 88,651 | 97,014 | ||||||||||||
Income Before Income Taxes (FTE)1
|
31,269 | 35,697 | 96,520 | 105,331 | ||||||||||||
Income Tax Provision (FTE)1
|
11,247 | 13,265 | 34,529 | 39,248 | ||||||||||||
Net Income
|
$ | 20,022 | $ | 22,432 | $ | 61,991 | $ | 66,083 | ||||||||
Average Common Shares Outstanding
|
27,513 | 28,433 | 27,769 | 28,739 | ||||||||||||
Diluted Average Common Shares Outstanding
|
27,565 | 28,498 | 27,821 | 28,879 | ||||||||||||
Common Shares Outstanding at Period End
|
27,396 | 28,301 | ||||||||||||||
Per Common Share:
|
||||||||||||||||
Basic Earnings
|
$ | 0.73 | $ | 0.79 | $ | 2.23 | $ | 2.30 | ||||||||
Diluted Earnings
|
0.73 | 0.79 | 2.23 | 2.29 | ||||||||||||
Book Value Per Common Share
|
$ | 20.40 | $ | 19.57 | ||||||||||||
Financial Ratios:
|
||||||||||||||||
Return On Assets
|
1.63 | % | 1.81 | % | 1.67 | % | 1.79 | % | ||||||||
Return On Common Equity
|
14.68 | % | 16.44 | % | 15.23 | % | 16.24 | % | ||||||||
Net Interest Margin (FTE)1
|
4.67 | % | 5.32 | % | 4.89 | % | 5.35 | % | ||||||||
Net Loan Losses As A Percentage of Average Loans
|
||||||||||||||||
Originated Loans
|
0.63 | % | 0.51 | % | 0.66 | % | 0.73 | % | ||||||||
Purchased covered Loans
|
0.09 | % | 0.28 | % | 0.19 | % | 0.09 | % | ||||||||
Purchased Non-covered Loans
|
2.19 | % | - | % | 0.69 | % | - | % | ||||||||
Efficiency Ratio2
|
46.2 | % | 44.9 | % | 45.8 | % | 46.0 | % | ||||||||
Average Balances:
|
||||||||||||||||
Assets
|
$ | 4,892,088 | $ | 4,920,482 | $ | 4,965,611 | $ | 4,929,701 | ||||||||
Earning Assets
|
4,160,953 | 4,093,020 | 4,116,471 | 4,133,898 | ||||||||||||
Originated Loans
|
1,730,186 | 1,943,379 | 1,784,726 | 1,974,316 | ||||||||||||
Purchased Covered Loans
|
435,953 | 596,072 | 475,815 | 638,189 | ||||||||||||
Purchased Non-covered Loans
|
97,100 | 151,634 | 107,989 | 174,333 | ||||||||||||
Deposits
|
4,176,342 | 4,155,812 | 4,219,129 | 4,146,183 | ||||||||||||
Shareholders' Equity
|
542,708 | 541,369 | 543,855 | 544,056 | ||||||||||||
Period End Balances:
|
||||||||||||||||
Assets
|
$ | 4,859,627 | $ | 4,966,499 | ||||||||||||
Earning Assets
|
4,106,647 | 4,074,457 | ||||||||||||||
Originated Loans
|
1,708,414 | 1,920,286 | ||||||||||||||
Purchased Covered Loans
|
418,364 | 575,353 | ||||||||||||||
Purchased Non-covered Loans
|
82,676 | 139,200 | ||||||||||||||
Deposits
|
4,130,557 | 4,192,383 | ||||||||||||||
Shareholders' Equity
|
558,841 | 553,988 | ||||||||||||||
Capital Ratios at Period End:
|
||||||||||||||||
Total Risk Based Capital
|
16.22 | % | 15.41 | % | ||||||||||||
Tangible Equity to Tangible Assets
|
8.75 | % | 8.35 | % | ||||||||||||
Dividends Paid Per Common Share
|
$ | 0.37 | $ | 0.36 | $ | 1.11 | $ | 1.08 | ||||||||
Common Dividend Payout Ratio
|
51 | % | 46 | % | 50 | % | 47 | % |
For the Three Months
|
For the Nine Months
|
|||||||||||||||
Ended September 30,
|
||||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
(In thousands, except per share data)
|
||||||||||||||||
Net interest income (FTE)
|
$ | 48,712 | $ | 54,675 | $ | 150,743 | $ | 165,506 | ||||||||
Provision for loan losses
|
(2,800 | ) | (2,800 | ) | (8,400 | ) | (8,400 | ) | ||||||||
Noninterest income
|
14,626 | 15,205 | 42,828 | 45,239 | ||||||||||||
Noninterest expense
|
(29,269 | ) | (31,383 | ) | (88,651 | ) | (97,014 | ) | ||||||||
Income before taxes (FTE)
|
31,269 | 35,697 | 96,520 | 105,331 | ||||||||||||
Income tax provision (FTE)
|
(11,247 | ) | (13,265 | ) | (34,529 | ) | (39,248 | ) | ||||||||
Net income
|
$ | 20,022 | $ | 22,432 | $ | 61,991 | $ | 66,083 | ||||||||
Average diluted common shares
|
27,565 | 28,498 | 27,821 | 28,879 | ||||||||||||
Diluted earnings per common share
|
$ | 0.73 | $ | 0.79 | $ | 2.23 | $ | 2.29 | ||||||||
Average total assets
|
$ | 4,892,088 | $ | 4,920,482 | $ | 4,965,611 | $ | 4,929,701 | ||||||||
Net income applicable to common equity to average total assets (annualized)
|
1.63 | % | 1.81 | % | 1.67 | % | 1.79 | % | ||||||||
Net income applicable to common equity to average common stockholders' equity (annualized)
|
14.68 | % | 16.44 | % | 15.23 | % | 16.24 | % |
For the Three Months
|
For the Nine Months
|
|||||||||||||||
Ended September 30,
|
||||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
(In thousands)
|
||||||||||||||||
Interest and fee income
|
$ | 45,272 | $ | 51,976 | $ | 140,470 | $ | 157,559 | ||||||||
Interest expense
|
(1,382 | ) | (2,071 | ) | (4,413 | ) | (6,527 | ) | ||||||||
FTE adjustment
|
4,822 | 4,770 | 14,686 | 14,474 | ||||||||||||
Net interest income (FTE)
|
$ | 48,712 | $ | 54,675 | $ | 150,743 | $ | 165,506 | ||||||||
Average earning assets
|
$ | 4,160,953 | $ | 4,093,020 | $ | 4,116,471 | $ | 4,133,898 | ||||||||
Net interest margin (FTE) (annualized)
|
4.67 | % | 5.32 | % | 4.89 | % | 5.35 | % | ||||||||
For the Three Months
|
For the Nine Months
|
|||||||||||||||
Ended September 30,
|
||||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Yield on earning assets (FTE)
|
4.80 | % | 5.52 | % | 5.03 | % | 5.56 | % | ||||||||
Rate paid on interest-bearing liabilities
|
0.21 | % | 0.29 | % | 0.21 | % | 0.31 | % | ||||||||
Net interest spread (FTE)
|
4.59 | % | 5.23 | % | 4.82 | % | 5.25 | % | ||||||||
Impact of all other net noninterest bearing funds
|
0.08 | % | 0.09 | % | 0.07 | % | 0.10 | % | ||||||||
Net interest margin (FTE)
|
4.67 | % | 5.32 | % | 4.89 | % | 5.35 | % |
For the Three Months Ended
|
||||||||||||
September 30, 2012
|
||||||||||||
Average
Balance |
Interest
Income/ |
Yields/
Rates |
||||||||||
(In thousands)
|
||||||||||||
Assets
|
||||||||||||
Investment securities:
|
||||||||||||
Available for sale
|
||||||||||||
Taxable
|
$ | 506,508 | $ | 2,894 | 2.29 | % | ||||||
Tax-exempt (1)
|
209,861 | 3,055 | 5.82 | % | ||||||||
Held to maturity
|
||||||||||||
Taxable
|
539,822 | 2,811 | 2.08 | % | ||||||||
Tax-exempt (1)
|
641,523 | 8,900 | 5.55 | % | ||||||||
Loans:
|
||||||||||||
Commercial:
|
||||||||||||
Taxable
|
307,446 | 4,518 | 5.85 | % | ||||||||
Tax-exempt (1)
|
124,862 | 1,878 | 5.98 | % | ||||||||
Commercial real estate
|
990,509 | 17,015 | 6.83 | % | ||||||||
Real estate construction
|
25,336 | 335 | 5.26 | % | ||||||||
Real estate residential
|
259,754 | 2,308 | 3.55 | % | ||||||||
Consumer
|
555,332 | 6,380 | 4.57 | % | ||||||||
Total loans (1)
|
2,263,239 | 32,434 | 5.70 | % | ||||||||
Total interest-earning assets (1)
|
4,160,953 | $ | 50,094 | 4.80 | % | |||||||
Other assets
|
731,135 | |||||||||||
Total assets
|
$ | 4,892,088 | ||||||||||
Liabilities and shareholders' equity
|
||||||||||||
Deposits:
|
||||||||||||
Noninterest bearing demand
|
$ | 1,605,362 | $ | - | - | % | ||||||
Savings and interest-bearing transaction
|
1,882,110 | 301 | 0.06 | % | ||||||||
Time less than $100,000
|
258,631 | 359 | 0.55 | % | ||||||||
Time $100,000 or more
|
430,239 | 360 | 0.33 | % | ||||||||
Total interest-bearing deposits
|
2,570,980 | 1,020 | 0.16 | % | ||||||||
Short-term borrowed funds
|
61,794 | 15 | 0.10 | % | ||||||||
Term repurchase agreement
|
10,000 | 25 | 0.97 | % | ||||||||
Federal Home Loan Bank advances
|
25,889 | 122 | 1.87 | % | ||||||||
Debt financing
|
15,000 | 200 | 5.35 | % | ||||||||
Total interest-bearing liabilities
|
2,683,663 | $ | 1,382 | 0.21 | % | |||||||
Other liabilities
|
60,355 | |||||||||||
Shareholders' equity
|
542,708 | |||||||||||
Total liabilities and shareholders' equity
|
$ | 4,892,088 | ||||||||||
Net interest spread (1) (2)
|
4.59 | % | ||||||||||
Net interest income and interest margin (1) (3)
|
$ | 48,712 | 4.67 | % | ||||||||
For the Three Months Ended
September 30, 2011 |
||||||||||||
Average
Balance |
Interest
Income/ |
Yields/
Rates |
||||||||||
(In thousands)
|
||||||||||||
Assets:
|
||||||||||||
Money market assets and funds sold
|
$ | 281 | $ | - | - | % | ||||||
Investment securities:
|
||||||||||||
Available for sale
|
||||||||||||
Taxable
|
453,330 | 2,989 | 2.64 | % | ||||||||
Tax-exempt (1)
|
252,356 | 3,895 | 6.17 | % | ||||||||
Held to maturity
|
||||||||||||
Taxable
|
209,826 | 1,635 | 3.12 | % | ||||||||
Tax-exempt (1)
|
486,142 | 7,538 | 6.20 | % | ||||||||
Loans:
|
||||||||||||
Commercial:
|
||||||||||||
Taxable
|
415,219 | 6,901 | 6.59 | % | ||||||||
Tax-exempt (1)
|
145,672 | 2,270 | 6.18 | % | ||||||||
Commercial real estate
|
1,185,692 | 19,557 | 6.54 | % | ||||||||
Real estate construction
|
49,972 | 1,072 | 8.51 | % | ||||||||
Real estate residential
|
309,203 | 3,013 | 3.90 | % | ||||||||
Consumer
|
585,327 | 7,876 | 5.34 | % | ||||||||
Total loans (1)
|
2,691,085 | 40,689 | 6.00 | % | ||||||||
Total Interest earning assets (1)
|
4,093,020 | $ | 56,746 | 5.52 | % | |||||||
Other assets
|
827,462 | |||||||||||
Total assets
|
$ | 4,920,482 | ||||||||||
Liabilities and shareholders' equity
|
||||||||||||
Deposits:
|
||||||||||||
Noninterest bearing demand
|
$ | 1,494,773 | $ | - | - | % | ||||||
Savings and interest-bearing transaction
|
1,826,688 | 597 | 0.13 | % | ||||||||
Time less than $100,000
|
303,768 | 556 | 0.73 | % | ||||||||
Time $100,000 or more
|
530,583 | 524 | 0.39 | % | ||||||||
Total interest-bearing deposits
|
2,661,039 | 1,677 | 0.25 | % | ||||||||
Short-term borrowed funds
|
99,730 | 62 | 0.25 | % | ||||||||
Term repurchase agreement
|
5,652 | 14 | 0.97 | % | ||||||||
Federal Home Loan Bank advances
|
35,309 | 118 | 1.34 | % | ||||||||
Debt financing and notes payable
|
21,075 | 200 | 3.80 | % | ||||||||
Total interest-bearing liabilities
|
2,822,805 | $ | 2,071 | 0.29 | % | |||||||
Other liabilities
|
61,535 | |||||||||||
Shareholders' equity
|
541,369 | |||||||||||
Total liabilities and shareholders' equity
|
$ | 4,920,482 | ||||||||||
Net interest spread (1) (2)
|
5.23 | % | ||||||||||
Net interest income and interest margin (1) (3)
|
$ | 54,675 | 5.32 | % |
For the Nine Months Ended
September 30, 2012 |
||||||||||||
Average
Balance |
Interest
Income/ |
Yields/
Rates |
||||||||||
(In thousands)
|
||||||||||||
Assets
|
||||||||||||
Investment securities:
|
||||||||||||
Available for sale
|
||||||||||||
Taxable
|
$ | 456,310 | $ | 8,231 | 2.41 | % | ||||||
Tax-exempt (1)
|
218,610 | 9,667 | 5.90 | % | ||||||||
Held to maturity
|
||||||||||||
Taxable
|
444,654 | 7,511 | 2.25 | % | ||||||||
Tax-exempt (1)
|
628,367 | 26,469 | 5.62 | % | ||||||||
Loans:
|
||||||||||||
Commercial:
|
||||||||||||
Taxable
|
329,920 | 15,790 | 6.39 | % | ||||||||
Tax-exempt (1)
|
132,040 | 6,017 | 6.09 | % | ||||||||
Commercial real estate
|
1,042,613 | 52,795 | 6.76 | % | ||||||||
Real estate construction
|
29,063 | 1,187 | 5.46 | % | ||||||||
Real estate residential
|
271,320 | 7,407 | 3.64 | % | ||||||||
Consumer
|
563,574 | 20,082 | 4.76 | % | ||||||||
Total loans (1)
|
2,368,530 | 103,278 | 5.82 | % | ||||||||
Total interest-earning assets (1)
|
4,116,471 | $ | 155,156 | 5.03 | % | |||||||
Other assets
|
849,140 | |||||||||||
Total assets
|
$ | 4,965,611 | ||||||||||
Liabilities and shareholders' equity
|
||||||||||||
Deposits:
|
||||||||||||
Noninterest bearing demand
|
$ | 1,586,993 | $ | - | - | % | ||||||
Savings and interest-bearing transaction
|
1,881,134 | 934 | 0.07 | % | ||||||||
Time less than $100,000
|
269,930 | 1,184 | 0.59 | % | ||||||||
Time $100,000 or more
|
481,072 | 1,196 | 0.33 | % | ||||||||
Total interest-bearing deposits
|
2,632,136 | 3,314 | 0.17 | % | ||||||||
Short-term borrowed funds
|
89,986 | 63 | 0.09 | % | ||||||||
Term repurchase agreement
|
10,000 | 74 | 0.97 | % | ||||||||
Federal Home Loan Bank advances
|
25,944 | 361 | 1.86 | % | ||||||||
Debt financing and notes payable
|
15,000 | 601 | 5.35 | % | ||||||||
Total interest-bearing liabilities
|
2,773,066 | $ | 4,413 | 0.21 | % | |||||||
Other liabilities
|
61,697 | |||||||||||
Shareholders' equity
|
543,855 | |||||||||||
Total liabilities and shareholders' equity
|
$ | 4,965,611 | ||||||||||
Net interest spread (1) (2)
|
4.82 | % | ||||||||||
Net interest income and interest margin (1) (3)
|
$ | 150,743 | 4.89 | % |
For the Nine Months Ended
September 30, 2011 |
||||||||||||
Average
Balance |
Interest
Income/ |
Yields/
Rates |
||||||||||
(In thousands)
|
||||||||||||
Assets:
|
||||||||||||
Money market assets and funds sold
|
$ | 386 | $ | - | - | % | ||||||
Investment securities:
|
||||||||||||
Available for sale
|
||||||||||||
Taxable
|
452,444 | 8,368 | 2.47 | % | ||||||||
Tax-exempt (1)
|
264,379 | 12,348 | 6.23 | % | ||||||||
Held to maturity
|
||||||||||||
Taxable
|
157,623 | 4,236 | 3.58 | % | ||||||||
Tax-exempt (1)
|
472,228 | 22,038 | 6.22 | % | ||||||||
Loans:
|
||||||||||||
Commercial:
|
||||||||||||
Taxable
|
452,372 | 21,985 | 6.50 | % | ||||||||
Tax-exempt (1)
|
149,634 | 7,207 | 6.44 | % | ||||||||
Commercial real estate
|
1,219,657 | 59,502 | 6.52 | % | ||||||||
Real estate construction
|
64,044 | 2,789 | 5.82 | % | ||||||||
Real estate residential
|
318,546 | 9,540 | 3.99 | % | ||||||||
Consumer
|
582,585 | 24,020 | 5.51 | % | ||||||||
Total loans (1)
|
2,786,838 | 125,043 | 6.00 | % | ||||||||
Total earning assets (1)
|
4,133,898 | $ | 172,033 | 5.56 | % | |||||||
Other assets
|
795,803 | |||||||||||
Total assets
|
$ | 4,929,701 | ||||||||||
Liabilities and shareholders' equity
|
||||||||||||
Deposits:
|
||||||||||||
Noninterest bearing demand
|
$ | 1,474,983 | $ | - | - | % | ||||||
Savings and interest-bearing transaction
|
1,811,962 | 1,915 | 0.14 | % | ||||||||
Time less than $100,000
|
318,613 | 1,598 | 0.67 | % | ||||||||
Time $100,000 or more
|
540,625 | 1,831 | 0.45 | % | ||||||||
Total interest-bearing deposits
|
2,671,200 | 5,344 | 0.27 | % | ||||||||
Short-term borrowed funds
|
104,544 | 170 | 0.22 | % | ||||||||
Term repurchase agreement
|
1,905 | 14 | 0.97 | % | ||||||||
Federal Home Loan Bank advances
|
47,027 | 398 | 1.13 | % | ||||||||
Debt financing and notes payable
|
24,447 | 601 | 3.28 | % | ||||||||
Total interest-bearing liabilities
|
2,849,123 | $ | 6,527 | 0.31 | % | |||||||
Other liabilities
|
61,539 | |||||||||||
Shareholders' equity
|
544,056 | |||||||||||
Total liabilities and shareholders' equity
|
$ | 4,929,701 | ||||||||||
Net interest spread (1) (2)
|
5.25 | % | ||||||||||
Net interest income and interest margin (1) (3)
|
$ | 165,506 | 5.35 | % | ||||||||
For the Three Months Ended September 30, 2012
Compared with
For the Three months Ended September 30, 2011
|
||||||||||||
Volume
|
Rate
|
Total
|
||||||||||
(In thousands)
|
||||||||||||
Interest and fee income:
|
||||||||||||
Investment securities:
|
||||||||||||
Available for sale
|
||||||||||||
Taxable
|
$ | 331 | $ | (426 | ) | $ | (95 | ) | ||||
Tax-exempt (1)
|
(628 | ) | (212 | ) | (840 | ) | ||||||
Held to maturity
|
||||||||||||
Taxable
|
1,873 | (697 | ) | 1,176 | ||||||||
Tax-exempt (1)
|
2,227 | (865 | ) | 1,362 | ||||||||
Loans:
|
||||||||||||
Commercial:
|
||||||||||||
Taxable
|
(1,660 | ) | (723 | ) | (2,383 | ) | ||||||
Tax-exempt (1)
|
(320 | ) | (72 | ) | (392 | ) | ||||||
Commercial real estate
|
(3,367 | ) | 825 | (2,542 | ) | |||||||
Real estate construction
|
(416 | ) | (321 | ) | (737 | ) | ||||||
Real estate residential
|
(455 | ) | (250 | ) | (705 | ) | ||||||
Consumer
|
(394 | ) | (1,102 | ) | (1,496 | ) | ||||||
Total loans (1)
|
(6,612 | ) | (1,643 | ) | (8,255 | ) | ||||||
Total decrease in interest and fee income (1)
|
(2,809 | ) | (3,843 | ) | (6,652 | ) | ||||||
Interest expense:
|
||||||||||||
Deposits:
|
||||||||||||
Savings and interest-bearing transaction
|
17 | (313 | ) | (296 | ) | |||||||
Time less than $100,000
|
(76 | ) | (121 | ) | (197 | ) | ||||||
Time $100,000 or more
|
(91 | ) | (73 | ) | (164 | ) | ||||||
Total interest-bearing deposits
|
(150 | ) | (507 | ) | (657 | ) | ||||||
Short-term borrowed funds
|
(17 | ) | (30 | ) | (47 | ) | ||||||
Term repurchase agreement
|
11 | - | 11 | |||||||||
Federal Home Loan Bank advances
|
(37 | ) | 41 | 4 | ||||||||
Debt financing
|
(68 | ) | 68 | - | ||||||||
Total decrease in interest expense
|
(261 | ) | (428 | ) | (689 | ) | ||||||
Decrease in Net Interest Income (1)
|
$ | (2,548 | ) | $ | (3,415 | ) | $ | (5,963 | ) | |||
For the Nine Months Ended September 30, 2012
Compared with
For the Nine Months Ended September 30, 2011
|
||||||||||||
Volume
|
Rate
|
Total
|
||||||||||
(In thousands)
|
||||||||||||
Interest and fee income:
|
||||||||||||
Investment securities:
|
||||||||||||
Available for sale
|
||||||||||||
Taxable
|
$ | 91 | $ | (228 | ) | $ | (137 | ) | ||||
Tax-exempt (1)
|
(2,042 | ) | (639 | ) | (2,681 | ) | ||||||
Held to maturity
|
||||||||||||
Taxable
|
5,332 | (2,057 | ) | 3,275 | ||||||||
Tax-exempt (1)
|
6,751 | (2,320 | ) | 4,431 | ||||||||
Loans:
|
||||||||||||
Commercial:
|
||||||||||||
Taxable
|
(5,843 | ) | (352 | ) | (6,195 | ) | ||||||
Tax-exempt (1)
|
(805 | ) | (385 | ) | (1,190 | ) | ||||||
Commercial real estate
|
(8,817 | ) | 2,110 | (6,707 | ) | |||||||
Real estate construction
|
(1,436 | ) | (166 | ) | (1,602 | ) | ||||||
Real estate residential
|
(1,325 | ) | (808 | ) | (2,133 | ) | ||||||
Consumer
|
(699 | ) | (3,239 | ) | (3,938 | ) | ||||||
Total loans (1)
|
(18,925 | ) | (2,840 | ) | (21,765 | ) | ||||||
Total decrease in interest and fee income (1)
|
(8,793 | ) | (8,084 | ) | (16,877 | ) | ||||||
Interest expense:
|
||||||||||||
Deposits:
|
||||||||||||
Savings and interest-bearing transaction
|
74 | (1,055 | ) | (981 | ) | |||||||
Time less than $100,000
|
(225 | ) | (189 | ) | (414 | ) | ||||||
Time $100,000 or more
|
(182 | ) | (453 | ) | (635 | ) | ||||||
Total interest-bearing deposits
|
(333 | ) | (1,697 | ) | (2,030 | ) | ||||||
Short-term borrowed funds
|
(21 | ) | (86 | ) | (107 | ) | ||||||
Term repurchase agreement
|
52 | 8 | 60 | |||||||||
Federal Home Loan Bank advances
|
(225 | ) | 188 | (37 | ) | |||||||
Debt financing
|
(287 | ) | 287 | - | ||||||||
Total decrease in interest expense
|
(814 | ) | (1,300 | ) | (2,114 | ) | ||||||
Decrease in Net Interest Income (1)
|
$ | (7,979 | ) | $ | (6,784 | ) | $ | (14,763 | ) |
For the Three Months Ended
|
For the Nine Months Ended
|
|||||||||||||||
September 30,
|
||||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
|
(In thousands)
|
|||||||||||||||
Service charges on deposit accounts
|
$ | 6,847 | $ | 7,430 | $ | 20,969 | $ | 22,529 | ||||||||
Merchant processing services
|
2,411 | 2,358 | 7,333 | 6,921 | ||||||||||||
Debit card fees
|
1,308 | 1,269 | 3,816 | 3,752 | ||||||||||||
ATM processing fees
|
782 | 980 | 2,648 | 2,911 | ||||||||||||
Other service fees
|
729 | 743 | 2,122 | 2,155 | ||||||||||||
Trust fees
|
540 | 432 | 1,526 | 1,407 | ||||||||||||
Check sale income
|
196 | 207 | 615 | 640 | ||||||||||||
Safe deposit fees
|
196 | 188 | 586 | 525 | ||||||||||||
Financial services commissions
|
175 | 111 | 540 | 257 | ||||||||||||
Loss on sale of securities
|
- | - | (1,287 | ) | - | |||||||||||
Other noninterest income
|
1,442 | 1,487 | 3,960 | 4,142 | ||||||||||||
Total
|
$ | 14,626 | $ | 15,205 | $ | 42,828 | $ | 45,239 |
For the Three Months Ended
|
For the Nine Months Ended
|
|||||||||||||||
September 30,
|
||||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Salaries and related benefits
|
$ | 14,294 | $ | 14,401 | $ | 43,833 | $ | 44,388 | ||||||||
Occupancy
|
3,901 | 4,010 | 11,609 | 12,085 | ||||||||||||
Outsourced data processing services
|
2,156 | 2,165 | 6,318 | 6,743 | ||||||||||||
Amortization of identifiable intangibles
|
1,336 | 1,477 | 4,076 | 4,505 | ||||||||||||
Furniture and equipment
|
991 | 943 | 2,883 | 2,915 | ||||||||||||
Professional fees
|
786 | 1,185 | 2,455 | 3,489 | ||||||||||||
Courier service
|
772 | 840 | 2,350 | 2,535 | ||||||||||||
Other real estate owned
|
679 | 700 | 912 | 1,835 | ||||||||||||
Telephone
|
429 | 422 | 1,224 | 1,285 | ||||||||||||
Loan expense
|
400 | 578 | 1,417 | 1,515 | ||||||||||||
Postage
|
308 | 353 | 1,024 | 1,083 | ||||||||||||
Stationery and supplies
|
274 | 272 | 764 | 919 | ||||||||||||
Advertising/public relations
|
123 | 156 | 426 | 488 | ||||||||||||
Operational losses
|
110 | 226 | 433 | 815 | ||||||||||||
Settlements
|
- | - | - | 2,100 | ||||||||||||
Other noninterest expense
|
2,710 | 3,655 | 8,927 | 10,314 | ||||||||||||
Total
|
$ | 29,269 | $ | 31,383 | $ | 88,651 | $ | 97,014 |
·
|
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 Nine Months
|
|||||||||||||||
Ended September 30,
|
||||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Analysis of the Allowance for Credit Losses
|
||||||||||||||||
Balance, beginning of period
|
$ | 34,216 | $ | 35,701 | $ | 35,290 | $ | 38,329 | ||||||||
Provision for loan losses
|
2,800 | 2,800 | 8,400 | 8,400 | ||||||||||||
Provision for unfunded commitments
|
- | - | - | - | ||||||||||||
Loans charged off
|
||||||||||||||||
Commercial
|
(65 | ) | (799 | ) | (3,623 | ) | (5,786 | ) | ||||||||
Commercial real estate
|
(168 | ) | (398 | ) | (1,116 | ) | (399 | ) | ||||||||
Real estate construction
|
(2,091 | ) | (452 | ) | (2,091 | ) | (1,926 | ) | ||||||||
Real estate residential
|
(224 | ) | - | (1,156 | ) | (527 | ) | |||||||||
Consumer and other installment
|
(1,439 | ) | (1,575 | ) | (4,303 | ) | (5,050 | ) | ||||||||
Purchased covered loans
|
(111 | ) | (428 | ) | (723 | ) | (428 | ) | ||||||||
Purchased non-covered loans
|
(535 | ) | - | (560 | ) | - | ||||||||||
Total chargeoffs
|
(4,633 | ) | (3,652 | ) | (13,572 | ) | (14,116 | ) | ||||||||
Recoveries of loans previously charged off
|
||||||||||||||||
Commercial
|
500 | 190 | 1,117 | 833 | ||||||||||||
Commercial real estate
|
145 | - | 178 | - | ||||||||||||
Real estate construction
|
26 | - | 224 | - | ||||||||||||
Consumer and other installment
|
589 | 547 | 1,968 | 2,140 | ||||||||||||
Purchased covered loans
|
16 | - | 54 | - | ||||||||||||
Total recoveries
|
1,276 | 737 | 3,541 | 2,973 | ||||||||||||
Net loan losses
|
(3,357 | ) | (2,915 | ) | (10,031 | ) | (11,143 | ) | ||||||||
Balance, end of period
|
$ | 33,659 | $ | 35,586 | $ | 33,659 | $ | 35,586 | ||||||||
Components:
|
||||||||||||||||
Allowance for loan losses
|
$ | 30,966 | $ | 32,893 | ||||||||||||
Liability for off-balance sheet credit exposure
|
2,693 | 2,693 | ||||||||||||||
Allowance for credit losses
|
$ | 33,659 | $ | 35,586 | ||||||||||||
Net loan losses:
|
||||||||||||||||
Originated loans
|
$ | (2,727 | ) | $ | (2,487 | ) | $ | (8,802 | ) | $ | (10,715 | ) | ||||
Purchased covered loans
|
(95 | ) | (428 | ) | (669 | ) | (428 | ) | ||||||||
Purchased non-covered loans
|
(535 | ) | - | (560 | ) | - | ||||||||||
Net loan losses as a percentage of average loans (annualized):
|
||||||||||||||||
Originated loans
|
0.63 | % | 0.51 | % | 0.66 | % | 0.73 | % | ||||||||
Purchased covered loans
|
0.09 | % | 0.28 | % | 0.19 | % | 0.09 | % | ||||||||
Purchased non-covered loans
|
2.19 | % | - | % | 0.69 | % | - | % |
Minimum
|
Well-capitalized
|
|||||||||||||||||||
At September 30,
|
At December 31,
|
Regulatory
|
by Regulatory
|
|||||||||||||||||
2012
|
2011
|
2011
|
Requirement
|
Definition
|
||||||||||||||||
Tier I Capital
|
14.96 | % | 14.11 | % | 14.54 | % | 4.00 | % | 6.00 | % | ||||||||||
Total Capital
|
16.22 | % | 15.41 | % | 15.83 | % | 8.00 | % | 10.00 | % | ||||||||||
Leverage ratio
|
8.58 | % | 8.44 | % | 8.38 | % | 4.00 | % | 5.00 | % |
Minimum
|
Well-capitalized
|
|||||||||||||||||||
At September 30,
|
At December 31,
|
Regulatory
|
by Regulatory
|
|||||||||||||||||
2012
|
2011
|
2011
|
Requirement
|
Definition
|
||||||||||||||||
Tier I Capital
|
14.30 | % | 13.99 | % | 13.84 | % | 4.00 | % | 6.00 | % | ||||||||||
Total Capital
|
15.78 | % | 15.49 | % | 15.32 | % | 8.00 | % | 10.00 | % | ||||||||||
Leverage ratio
|
8.15 | % | 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
Minimum |
"Well-capitalized"
Under PCA |
Proposed
Minimum |
Proforma Measurements as of
September 30, 2012 Assuming New |
|||||||||||||||||
Company
|
Bank
|
|||||||||||||||||||
Capital Measurement:
|
||||||||||||||||||||
Leverage
|
4.00 | % | 5.00 | % | 4.00 | % | 8.83 | % | 8.40 | % | ||||||||||
Common Equity Tier 1
|
4.50 | % | 6.50 | % | 7.00 | % | 13.69 | % | 13.06 | % | ||||||||||
Tier I Capital
|
6.00 | % | 8.00 | % | 8.50 | % | 13.69 | % | 13.06 | % | ||||||||||
Total Capital
|
8.00 | % | 10.00 | % | 10.50 | % | 14.78 | % | 14.17 | % |
Period
|
(a)
Total Number of |
(b)
Average Price |
(c)
Total Number |
(d)
Maximum Number |
||||||||||||
(In thousands, except per share data)
|
||||||||||||||||
July 1
through
July 31
|
90 | $ | 45.99 | 90 | 1,967 | |||||||||||
August 1
through
August 31
|
80 | 45.93 | 80 | 1,887 | ||||||||||||
September 1
through
September 30
|
100 | 47.77 | 100 | 1,787 | ||||||||||||
Total
|
270 | $ | 46.63 | 270 | 1,787 |
Note 4 - Loans and Allowance for Credit Losses (Detail) - Impaired loans, supplemental schedule (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
|
Average Recored Investment | $ 55,014 | $ 64,692 | $ 51,072 | $ 80,419 |
Recognized Interest Income | 319 | 688 | 1,348 | 2,116 |
Commercial [Member]
|
||||
Average Recored Investment | 16,980 | 10,950 | 12,772 | 16,664 |
Recognized Interest Income | 71 | 39 | 188 | 548 |
Commercial Real Estate Loans [Member]
|
||||
Average Recored Investment | 26,302 | 33,978 | 28,079 | 39,098 |
Recognized Interest Income | 210 | 520 | 937 | 1,249 |
Construction [Member]
|
||||
Average Recored Investment | 8,081 | 17,065 | 6,891 | 21,839 |
Recognized Interest Income | 29 | 122 | 188 | 295 |
Residential Real Estate Loans [Member]
|
||||
Average Recored Investment | 1,158 | 225 | 712 | 374 |
Consumer Installment And Other [Member]
|
||||
Average Recored Investment | 2,493 | 2,474 | 2,618 | 2,444 |
Recognized Interest Income | $ 9 | $ 7 | $ 35 | $ 24 |
Note 8 - Fair Value Measurements (Detail) - Assets measured at fair value on a nonrecurring basis (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Fair Value | $ 29,180 | $ 19,547 |
Total Losses | (4,434) | (1,578) |
Non-Covered Other Real Estate Owned [Member] | Fair Value, Inputs, Level 2 [Member]
|
||
Fair Value | 7,970 | 6,350 |
Non-Covered Other Real Estate Owned [Member]
|
||
Fair Value | 7,970 | 6,350 |
Total Losses | (2,167) | (1,000) |
Covered Other Real Estate Owned [Member] | Fair Value, Inputs, Level 2 [Member]
|
||
Fair Value | 7,999 | 10,695 |
Covered Other Real Estate Owned [Member]
|
||
Fair Value | 7,999 | 10,695 |
Total Losses | (102) | (578) |
Originated Impaired Loans [Member] | Fair Value, Inputs, Level 2 [Member]
|
||
Fair Value | 2,021 | 2,502 |
Originated Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member]
|
||
Fair Value | 3,000 | |
Originated Impaired Loans [Member]
|
||
Fair Value | 5,021 | 2,502 |
Total Losses | (1,985) | |
Purchased Covered Impaired Loans [Member] | Fair Value, Inputs, Level 2 [Member]
|
||
Fair Value | 3,730 | |
Purchased Covered Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member]
|
||
Fair Value | 4,460 | |
Purchased Covered Impaired Loans [Member]
|
||
Fair Value | 8,190 | |
Total Losses | (180) | |
Fair Value, Inputs, Level 2 [Member]
|
||
Fair Value | 21,720 | 19,547 |
Fair Value, Inputs, Level 3 [Member]
|
||
Fair Value | $ 7,460 |
Note 8 - Fair Value Measurements (Detail) (USD $)
In Thousands, unless otherwise specified |
9 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
Jun. 30, 2012
|
Dec. 31, 2011
|
Sep. 30, 2011
|
Jun. 30, 2011
|
Dec. 31, 2010
|
Sep. 30, 2012
Purchased Covered Loans [Member]
|
Jun. 30, 2012
Purchased Covered Loans [Member]
|
Dec. 31, 2011
Purchased Covered Loans [Member]
|
Sep. 30, 2012
Purchased Non-Covered Loans [Member]
|
Dec. 31, 2011
Purchased Non-Covered Loans [Member]
|
Sep. 30, 2012
Minimum [Member]
Fair Value, Inputs, Level 3 [Member]
|
Sep. 30, 2012
Maximum [Member]
Fair Value, Inputs, Level 3 [Member]
|
Sep. 30, 2012
Fair Value, Inputs, Level 2 [Member]
|
|
Fair Value Inputs, Discount Rate | 50.00% | 55.00% | 10.00% | |||||||||||
Loans and Leases Receivable, Allowance | $ 30,966 | $ 31,523 | $ 32,597 | $ 32,893 | $ 33,008 | $ 35,636 | $ 1,250 | $ 240 | ||||||
Fair Value Discount, Credit Default Risk, Purchased Loans | $ 27,241 | $ 46,282 | $ 5,495 | $ 10,211 |
Note 4 - Loans and Allowance for Credit Losses (Detail) - Allowance for Credit Losses (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
Dec. 31, 2011
|
|
Allowance for loan losses: | |||||
Balance at beginning of period | $ 31,523 | $ 33,008 | $ 32,597 | $ 35,636 | |
Additions: | |||||
Provision | 2,800 | 2,800 | 8,400 | 8,400 | |
Deductions: | |||||
Chargeoffs | (4,633) | (3,652) | (13,572) | (14,116) | |
Recoveries | 1,276 | 737 | 3,541 | 2,973 | |
Net loan recoveries (losses) | (3,357) | (2,915) | (10,031) | (11,143) | |
Balance at end of period | 30,966 | 32,893 | 30,966 | 32,893 | |
Liability for off-balance sheet credit exposure | 2,693 | 2,693 | 2,693 | 2,693 | |
Total allowance for credit losses | 33,659 | 35,586 | 33,659 | 35,586 | 35,290 |
Commercial [Member]
|
|||||
Allowance for loan losses: | |||||
Balance at beginning of period | 6,330 | 6,729 | 6,012 | 8,094 | |
Additions: | |||||
Provision | 829 | 539 | 4,088 | 3,518 | |
Deductions: | |||||
Chargeoffs | (65) | (799) | (3,623) | (5,786) | |
Recoveries | 500 | 190 | 1,117 | 833 | |
Net loan recoveries (losses) | 435 | (609) | (2,506) | (4,953) | |
Balance at end of period | 7,594 | 6,659 | 7,594 | 6,659 | |
Liability for off-balance sheet credit exposure | 1,642 | 1,835 | 1,642 | 1,835 | |
Total allowance for credit losses | 9,236 | 8,494 | 9,236 | 8,494 | 7,672 |
Commercial Real Estate Loans [Member]
|
|||||
Allowance for loan losses: | |||||
Balance at beginning of period | 9,899 | 10,241 | 10,611 | 9,607 | |
Additions: | |||||
Provision | 587 | 1,422 | 790 | 2,057 | |
Deductions: | |||||
Chargeoffs | (168) | (398) | (1,116) | (399) | |
Recoveries | 145 | 178 | |||
Net loan recoveries (losses) | (23) | (398) | (938) | (399) | |
Balance at end of period | 10,463 | 11,265 | 10,463 | 11,265 | |
Liability for off-balance sheet credit exposure | 14 | 1 | 14 | 1 | |
Total allowance for credit losses | 10,477 | 11,266 | 10,477 | 11,266 | 10,611 |
Construction [Member]
|
|||||
Allowance for loan losses: | |||||
Balance at beginning of period | 2,681 | 3,959 | 2,342 | 3,260 | |
Additions: | |||||
Provision | (87) | (826) | 54 | 1,347 | |
Deductions: | |||||
Chargeoffs | (2,091) | (452) | (2,091) | (1,926) | |
Recoveries | 26 | 224 | |||
Net loan recoveries (losses) | (2,065) | (452) | (1,867) | (1,926) | |
Balance at end of period | 529 | 2,681 | 529 | 2,681 | |
Liability for off-balance sheet credit exposure | 2 | 62 | 2 | 62 | |
Total allowance for credit losses | 531 | 2,743 | 531 | 2,743 | 2,376 |
Residential Real Estate Loans [Member]
|
|||||
Allowance for loan losses: | |||||
Balance at beginning of period | 602 | 466 | 781 | 617 | |
Additions: | |||||
Provision | 103 | 317 | 856 | 693 | |
Deductions: | |||||
Chargeoffs | (224) | (1,156) | (527) | ||
Net loan recoveries (losses) | (224) | (1,156) | (527) | ||
Balance at end of period | 481 | 783 | 481 | 783 | |
Total allowance for credit losses | 481 | 783 | 481 | 783 | 781 |
Consumer Installment And Other [Member]
|
|||||
Allowance for loan losses: | |||||
Balance at beginning of period | 3,031 | 3,522 | 3,072 | 6,372 | |
Additions: | |||||
Provision | 894 | 539 | 2,338 | (429) | |
Deductions: | |||||
Chargeoffs | (1,439) | (1,575) | (4,303) | (5,050) | |
Recoveries | 589 | 547 | 1,968 | 2,140 | |
Net loan recoveries (losses) | (850) | (1,028) | (2,335) | (2,910) | |
Balance at end of period | 3,075 | 3,033 | 3,075 | 3,033 | |
Liability for off-balance sheet credit exposure | 402 | 150 | 402 | 150 | |
Total allowance for credit losses | 3,477 | 3,183 | 3,477 | 3,183 | 3,270 |
Purchased Non-Covered Loans [Member]
|
|||||
Additions: | |||||
Provision | 535 | 560 | |||
Deductions: | |||||
Chargeoffs | (535) | (560) | |||
Net loan recoveries (losses) | (535) | (560) | |||
Purchased Covered Loans [Member]
|
|||||
Allowance for loan losses: | |||||
Balance at beginning of period | 240 | ||||
Additions: | |||||
Provision | 1,105 | 428 | 1,919 | 428 | |
Deductions: | |||||
Chargeoffs | (111) | (428) | (723) | (428) | |
Recoveries | 16 | 54 | |||
Net loan recoveries (losses) | (95) | (428) | (669) | (428) | |
Balance at end of period | 1,250 | 1,250 | |||
Total allowance for credit losses | 1,250 | 1,250 | |||
Unallocated [Member]
|
|||||
Allowance for loan losses: | |||||
Balance at beginning of period | 8,740 | 8,091 | 9,779 | 7,686 | |
Additions: | |||||
Provision | (1,166) | 381 | (2,205) | 786 | |
Deductions: | |||||
Balance at end of period | 7,574 | 8,472 | 7,574 | 8,472 | |
Liability for off-balance sheet credit exposure | 633 | 645 | 633 | 645 | |
Total allowance for credit losses | $ 8,207 | $ 9,117 | $ 8,207 | $ 9,117 |
Note 3 - Investment Securities (Detail) - Amortized cost, unrealized gains and losses, and fair value - held to maturity investment securities portfolio (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Amortized Cost | $ 1,158,731 | $ 922,803 |
Gross Unrealized Gains | 32,285 | 27,894 |
Gross Unrealized Losses | (671) | (3,204) |
Fair Value | 1,190,345 | 947,493 |
US Government-sponsored Enterprises Debt Securities [Member]
|
||
Amortized Cost | 3,739 | |
Gross Unrealized Gains | 29 | |
Fair Value | 3,768 | |
Residential Mortgage Backed Securities [Member]
|
||
Amortized Cost | 77,166 | 54,869 |
Gross Unrealized Gains | 2,469 | 1,532 |
Gross Unrealized Losses | (6) | (77) |
Fair Value | 79,629 | 56,324 |
US States and Political Subdivisions Debt Securities [Member]
|
||
Amortized Cost | 651,747 | 625,390 |
Gross Unrealized Gains | 25,496 | 23,581 |
Gross Unrealized Losses | (82) | (496) |
Fair Value | 677,161 | 648,475 |
Residential Collateralized Mortgage Obligations [Member]
|
||
Amortized Cost | 426,079 | 242,544 |
Gross Unrealized Gains | 4,291 | 2,781 |
Gross Unrealized Losses | (583) | (2,631) |
Fair Value | $ 429,787 | $ 242,694 |
Note 9 - Debt Financing (Detail) (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Short-term Debt | $ 55,630 | $ 115,689 |
Long-term Federal Home Loan Bank Advances | 25,855 | 26,023 |
Restricted Pledged Loans | 35,638 | 35,894 |
Federal Home Loan Bank Advance, Maturity Next Fiscal Year | 5,000 | |
Federal Home Loan Bank Advance, Maturity Year Three | 20,000 | |
Securities Sold under Agreements to Repurchase | 10,000 | 10,000 |
Unsecured Debt | 15,000 | 15,000 |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 5.31% | |
Short-term Debt [Member]
|
||
Pledged Financial Instruments, Not Separately Reported, Other Debt Securities Available-for-sale or Held-for-investment | 56,743 | |
Securities Sold Under Agreement To Repurchase [Member]
|
||
Pledged Financial Instruments, Not Separately Reported, Other Debt Securities Available-for-sale or Held-for-investment | $ 10,500 |
Note 6 - Goodwill and Identifiable Intangible Assets (Detail) - Carrying values of goodwill (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
September 30, 2012 | $ 121,673 | $ 121,673 |
December 31, 2011 | $ 121,673 | $ 121,673 |
Note 4 - Loans and Allowance for Credit Losses (Detail) - Effect of nonaccrual loans on interest income (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
|
Interest income that would have been recognized had the loans performed in accordance with their original terms | $ 767 | $ 1,104 | $ 2,345 | $ 4,373 |
Less: Interest income recognized on nonaccrual loans | (684) | (1,010) | (2,021) | (3,886) |
Total reduction of interest income | $ 83 | $ 94 | $ 324 | $ 487 |
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 | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
|
Net income (numerator) (in Dollars) | $ 20,022 | $ 22,432 | $ 61,991 | $ 66,083 |
Weighted average number of common shares outstanding - basic | 27,513 | 28,433 | 27,769 | 28,739 |
Add exercise of options reduced by the number of shares that could have been purchased with the proceeds of such exercise | 52 | 65 | 52 | 140 |
Weighted average number of common shares outstanding - diluted (denominator) | 27,565 | 28,498 | 27,821 | 28,879 |
Diluted earnings per common share (in Dollars per share) | $ 0.73 | $ 0.79 | $ 2.23 | $ 2.29 |
Basic earnings per common share (in Dollars per share) | $ 0.73 | $ 0.79 | $ 2.23 | $ 2.30 |
Note 8 - Fair Value Measurements (Detail) - Assets measured at fair value on a recurring basis (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Investment securities available for sale: | ||
Fair Value | $ 738,462 | $ 638,753 |
Fair Value, Inputs, Level 1 [Member]
|
||
Investment securities available for sale: | ||
Fair Value | 92,129 | 125,101 |
Fair Value, Inputs, Level 2 [Member]
|
||
Investment securities available for sale: | ||
Fair Value | $ 646,333 | $ 513,652 |
Note 2 - Accounting Policies
|
9 Months Ended |
---|---|
Sep. 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.
FASB
ASU 2012-06, Subsequent
Accounting for an Indemnification Asset Recognized at the
Acquisition Date as a Result of a Government-Assisted
Acquisition of a Financial Institution, was issued
October 2012 to provide guidance for consistently measuring
an indemnification asset subsequent to
acquisition. Subsequent accounting for changes in
the measurement of the indemnification asset should be on the
same basis as a change in the assets subject to
indemnification. Any amortization of changes in
value is limited to the shorter of the contractual term of
the indemnification agreement or the remaining life of the
indemnified assets. The amendments are effective
for fiscal years, and interim periods within those years,
beginning on or after December 15, 2012, with early adoption
permitted. The amendments will not have a material
effect on the Company’s financial statements at the
date of adoption.
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