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BANK LOANS, NET (Tables)
 9 Months Ended
Jun. 30, 2011
Receivables:  
Held for sale and held for investment loan portfolios
The following table presents the balances for both the held for sale and held for investment loan portfolios as well as the associated percentage of each major loan category in RJ Bank's total loan portfolio:

   
June 30, 2011
  
September 30, 2010
 
   
Balance
  
%
  
Balance
  
%
 
   
($ in thousands)
 
              
Loans held for sale, net (1)
 $70,121   1% $6,114   - 
Loans held for investment, net: (1)
                
Commercial loans
  3,796,539   59%  3,232,723   52%
CRE construction loans
  25,381   -   65,512   1%
CRE loans
  783,297   12%  937,669   15%
Residential mortgage loans
  1,760,387   28%  2,015,331   32%
Consumer loans
  5,897   -   23,940   - 
Total loans held for investment
  6,371,501       6,275,175     
Net unearned income and deferred expenses
  (43,728)      (39,276)    
Total loans held for investment, net
  6,327,773       6,235,899     
                  
Total loans held for sale and investment
  6,397,894   100%  6,242,013   100%
Allowance for loan losses
  (145,800)      (147,084)    
Bank loans, net
 $6,252,094      $6,094,929     

(1)  
Net of unearned income and deferred expenses, which includes purchase premiums, purchase discounts, and net deferred origination fees and costs.
Loan purchases and sales
The following table presents purchases and sales of any loans held for investment by portfolio segment:

   
Three months ended June 30, 2011
  
Nine months ended June 30, 2011
 
   
Purchases
  
Sales
  
Purchases
  
Sales
 
   
(in thousands)
 
Commercial loans
 $16,500  $38,545  $23,430  $54,424 
CRE loans
  4,650   -   4,650   - 
Residential mortgage loans
  145   -   40,568   - 
Total
 $21,295  $38,545  $68,648  $54,424 
Schedule of maturities of loan portfolios
The following table shows the contractual maturities of RJ Bank's loan portfolio at June 30, 2011, including contractual principal repayments.  This table does not, however, include any estimates of prepayments.  These prepayments could shorten the average loan lives and cause the actual timing of the loan repayments to differ significantly from those shown in the following table:

   
Due in
 
   
One Year or Less
  
> One Year -
Five Years
  
> Five Years
  
Total (1)
 
   
(in thousands)
 
              
Loans held for sale
 $-  $-  $63,622  $63,622 
Loans held for investment:
                
Commercial loans
  84,276   2,448,746   1,263,517   3,796,539 
CRE construction loans
  21,792   3,589   -   25,381 
CRE loans
  311,786   447,682   23,829   783,297 
Residential mortgage loans
  1,147   12,104   1,747,136   1,760,387 
Consumer loans
  5,872   -   25   5,897 
Total loans held for investment
  424,873   2,912,121   3,034,507   6,371,501 
Total loans
 $424,873  $2,912,121  $3,098,129  $6,435,123 

(1)  
Excludes any net unearned income and deferred expenses.
Nonperforming loans held for investment and total nonperforming assets
The following table presents the comparative data for nonperforming loans held for investment and total nonperforming assets:

   
June 30, 2011
  
September 30, 2010
 
   
(in thousands)
 
Nonaccrual loans:
      
Commercial loans
 $26,192  $- 
CRE loans
  25,805   67,071 
Residential mortgage loans:
        
First mortgage loans (1)
  83,590   80,754 
Home equity loans/lines
  82   71 
Total nonaccrual loans
  135,669   147,896 
          
Accruing loans which are 90 days past due:
        
CRE loans
  -   830 
Residential mortgage loans:
        
First mortgage loans
  4,306   5,098 
Home equity loans/lines
  86   159 
Total accruing loans which are 90 days past due
  4,392   6,087 
Total nonperforming loans
  140,061   153,983 
          
Real estate owned and other repossessed assets, net:
        
CRE
  10,256   19,486 
Residential:
        
First mortgage
  8,552   8,439 
Home equity
  13   - 
Total
  18,821   27,925 
Total nonperforming assets, net
 $158,882  $181,908 
Total nonperforming assets as a % of total loans, net and other real estate owned, net
  2.53%  2.97%

(1)  
Of the total residential first mortgage nonaccrual loans, there are loans totaling $74.1 million and $68.7 million as of June 30, 2011 and September 30, 2010, respectively, for which a charge-off had previously been recorded.
Analysis of the payment status of loans held for investment
The following table presents an analysis of the payment status of loans held for investment as of June 30, 2011:

   
30-59
Days
  
60-89
Days
  
90 Days
or More
  
Total
Past Due
  
Current
  
Total Loans Held
for Investment (1)
 
   
(in thousands)
 
                    
Commercial loans
 $-  $-  $-  $-  $3,758,101  $3,758,101 
CRE construction loans
  -   -   -   -   25,078   25,078 
CRE loans
  19,215   -   5,053   24,268   755,673   779,941 
Residential mortgage loans:
                        
First mortgage loans
  9,630   7,383   62,317   79,330   1,647,963   1,727,293 
Home equity loans/lines
  110   -   168   278   31,184   31,462 
Consumer loans
  -   -   -   -   5,898   5,898 
Total loans held for
                        
investment, net
 $28,955  $7,383  $67,538  $103,876  $6,223,897  $6,327,773 

(1)  
Net of unearned income and deferred expenses.
Summary of impaired loans
The following table provides a summary of RJ Bank's impaired loans:

   
June 30, 2011
  
September 30, 2010
 
   
Gross Recorded Investment
  
Unpaid Principal Balance
  
Allowance for Losses
  
Gross Recorded Investment
  
Unpaid Principal Balance
  
Allowance For Losses
 
   
(in thousands)
 
Impaired loans with allowance for loan losses: (1)
                  
Commercial loans
 $26,192  $26,535  $5,464  $-  $-  $- 
CRE loans
  20,771   34,014   7,744   60,598   85,652   8,469 
Residential mortgage loans:
                        
First mortgage loans
  14,031   15,712   2,678   12,434   13,659   2,782 
Home equity loans/lines
  143   143   26   144   144   30 
Total
  61,137   76,404   15,912   73,176   99,455   11,281 
                          
Impaired loans without allowance for loan losses: (2)
                        
CRE loans
  5,034   7,925   -   6,473   17,309   - 
Residential - first mortgage loans
  6,288   9,631   -   3,552   5,355   - 
Total
  11,322   17,556   -   10,025   22,664   - 
Total impaired loans
 $72,459  $93,960  $15,912  $83,201  $122,119  $11,281 

(1)  
Impaired loan balances have had reserves established based upon management's analysis.

(2)  
When the discounted cash flow, collateral value or market value equals or exceeds the carrying value of the loan, then the loan does not require an allowance.  These are generally loans in process of foreclosure that have already been adjusted to fair value.

The average balance of the impaired loans and the related interest income recognized in the Condensed Consolidated Statements of Income are as follows:

   
Three months ended June 30,
  
Nine months ended June 30,
 
   
2011
  
2010
  
2011
  
2010
 
   
(in thousands)
 
Average impaired loan balance:
            
Commercial loans
 $8,731  $-  $2,910  $- 
CRE loans
  37,862   61,558   43,954   56,815 
Residential mortgage loans:
                
First mortgage loans
  19,980   6,333   19,065   5,335 
Home equity loans/lines
  143   128   143   128 
Total
 $66,716  $68,019  $66,072  $62,278 
                  
Interest income recognized:
                
Residential mortgage loans:
                
First mortgage loans
 $80  $27  $216  $79 
Home equity loans/lines
  1   1   3   2 
Total
 $81  $28  $219  $81 
Credit quality of held for investment loan portfolio

RJ Bank's credit quality of its held for investment loan portfolio as of June 30, 2011 is presented in the following table:

            
Residential Mortgage
       
   
Commercial
  
CRE
Construction
  
CRE
  
First
Mortgage
  
Home
Equity
  
Consumer
  
Total
 
 
   
(in thousands)
 
                       
Pass
 $3,600,202  $25,381  $642,033  $1,608,758  $30,718  $5,897  $5,912,989 
Special mention
  89,144   -   58,326   28,662   176   -   176,308 
Substandard
  94,743   -   76,790   91,789   284   -   263,606 
Doubtful
  12,450   -   6,148   -   -   -   18,598 
Total
 $3,796,539  $25,381  $783,297  $1,729,209  $31,178  $5,897  $6,371,501 
Changes in the allowance for loan losses
Changes in the allowance for loan losses of RJ Bank by portfolio segment were as follows:

      
Loans Held for Investment
    
   
Loans Held for Sale
  
Commercial
  
CRE Construction
  
CRE
  
Residential Mortgage
  
Consumer
  
Total
 
 
   
(in thousands)
 
Three months ended June 30, 2011:
                     
Balance at beginning of period:
 $4  $64,696  $2,745  $44,182  $34,469  $19  $146,115 
Provision for loan losses
  1   9,283   (2,318)  (5,137)  6,321   213   8,363 
Net charge-offs:
                            
Charge-offs
  -   (370)  -   (4,082)  (5,243)  (215)  (9,910)
Recoveries
  -   -   -   780   449   3   1,232 
Net charge-offs
  -   (370)  -   (3,302)  (4,794)  (212)  (8,678)
Balance at end of period
 $5  $73,609  $427  $35,743  $35,996  $20  $145,800 
Net charge-offs to average bank loans outstanding (annualized)
  -   0.04%  -   1.73%  1.07%  14.33%  0.55%
                              
Nine months ended June 30, 2011:
                            
Balance at beginning of period:
 $23  $60,464  $4,473  $47,771  $34,297  $56  $147,084 
Provision for loan losses
  (18)  13,597   (4,046)  925   17,559   215   28,232 
Net charge-offs:
                            
Charge-offs
  -   (452)  -   (14,012)  (17,348)  (255)  (32,067)
Recoveries
  -   -   -   1,059   1,488   4   2,551 
Net charge-offs
  -   (452)  -   (12,953)  (15,860)  (251)  (29,516)
Balance at end of period
 $5  $73,609  $427  $35,743  $35,996  $20  $145,800 
Net charge-offs to average bank loans outstanding (annualized)
  -   0.02%  -   2.21%  1.12%  4.82%  0.63%
Recorded investment and related allowance for loan losses, by loan portfolio segment
The following tables allocate, by loan portfolio segment, RJ Bank's recorded investment and related allowance for loan losses:

      
Loans Held for Investment
    
   
Loans Held for Sale
  
Commercial
  
CRE Construction
  
CRE
  
Residential Mortgage
  
Consumer
  
Total
 
 
   
(in thousands)
 
June 30, 2011:
                     
Allowance for loan losses:
                     
Individually evaluated for impairment
 $-  $5,464  $-  $7,744  $2,704  $-  $15,912 
Collectively evaluated for impairment
  5   68,145   427   27,999   33,292   20   129,888 
Total allowance for loan losses
 $5  $73,609  $427  $35,743  $35,996  $20  $145,800 
Loan category as a % of total recorded investment
  1%  59%  -   12%  28%  -   100%
                              
Recorded investment: (1)
                            
Individually evaluated for impairment
 $-  $26,192  $  -  $25,805  $20,462  $-  $72,459 
Collectively evaluated for impairment
  63,622   3,770,347   25,381   757,492   1,739,925   5,897   6,362,664 
Total recorded investment
 $63,622  $3,796,539  $25,381  $783,297  $1,760,387  $5,897  $6,435,123 

(1)  
Excludes any net unearned income and deferred expenses.

     
Loans Held for Investment
    
   
Loans Held for Sale
  
Commercial
  
CRE Construction
  
CRE
  
Residential Mortgage
  
Consumer
  
Total
 
   
(in thousands)
 
September 30, 2010:
                     
Allowance for loan losses:
                     
Individually evaluated for impairment
 $-  $ -  $ -  $8,469  $2,812  $-  $11,281 
Collectively evaluated for impairment
  23   60,464   4,473   39,302   31,485   56   135,803 
Total allowance for loan losses
 $23  $60,464  $4,473  $47,771  $34,297  $ 56  $147,084 
Loan category as a % of total recorded investment
  -   52%  1%  15%  32%  -   100% 
                              
Recorded investment: (1)
                            
Individually evaluated for impairment
 $ -  $ -  $ -  $67,071  $16,130  $  -  $83,201 
Collectively evaluated for impairment
  5,847   3,232,723   65,512   870,598   1,999,201   23,940   6,197,821 
Total recorded investment
 $5,847  $3,232,723  $65,512  $937,669  $2,015,331  $23,940  $6,281,022 

(1)  
Excludes any net unearned income and deferred expenses.