XML 62 R40.htm IDEA: XBRL DOCUMENT v2.3.0.15
BANK LOANS, NET (Tables)
12 Months Ended
Sep. 30, 2011
BANK LOANS, NET [Abstract] 
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 portfolio segment in RJ Bank's total loan portfolio as of September 30 of each respective year presented:

   
2011
  
2010
  
2009
 
   
Balance
  
%
  
Balance
  
%
  
Balance
  
%
 
   
($ in thousands)
 
                    
Loans held for sale, net(1)
 $102,236   2% $6,114   -  $40,484   1%
Loans held for investment:
                        
C&I loans
  4,100,939   61%  3,232,723   52%  3,079,916   46%
CRE construction loans
  29,087   -   65,512   1%  163,951   2%
CRE loans
  742,889   11%  937,669   15%  1,080,160   16%
Residential mortgage loans
  1,756,486   26%  2,015,331   32%  2,396,995   35%
Consumer loans
  7,438   -   23,940   -   22,816   - 
Total loans held for investment
  6,636,839       6,275,175       6,743,838     
Net unearned income and deferred expenses
  (45,417)      (39,276)      (40,077)    
Total loans held for investment, net(1)
  6,591,422       6,235,899       6,703,761     
                          
Total loans held for sale and investment
  6,693,658   100%  6,242,013   100%  6,744,245   100%
Allowance for loan losses
  (145,744)      (147,084)      (150,272)    
Bank loans, net
 $6,547,914      $6,094,929      $6,593,973     

   
2008
  
2007
 
   
Balance
  
%
  
Balance
  
%
 
   
($ in thousands)
 
              
Loans held for sale, net(1)
 $524   -  $1,571   - 
Loans held for investment:
                
C&I loans
  3,411,963   47%  1,820,471   38%
CRE construction loans
  346,691   5%  123,664   3%
CRE loans
  842,766   12%  841,152   18%
Residential mortgage loans
  2,599,042   36%  1,933,061   41%
Consumer loans
  23,778   -   4,541   - 
Total loans held for investment
  7,224,240       4,722,889     
Net unearned income and deferred expenses
  (41,382)      (13,229)    
Total loans held for investment, net(1)
  7,182,858       4,709,660     
                  
Total loans held for sale and investment
  7,183,382   100%  4,711,231   100%
Allowance for loan losses
  (88,155)      (47,022)    
Bank loans, net
 $7,095,227      $4,664,209     

(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:

   
Year ended September 30, 2011
 
   
Purchases
  
Sales
 
   
(in thousands)
 
        
C&I loans
 $156,475  $57,209 
CRE loans
  2,630   - 
Residential mortgage loans
  91,745   - 
Total
 $250,850  $57,209 
 
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:

   
As of September 30,
 
   
2011
  
2010
  
2009
  
2008
  
2007
 
   
($ in thousands)
 
Nonaccrual loans:
               
C&I loans
 $25,685  $-  $-  $-  $- 
CRE loans
  15,842   67,071   73,961   37,462   - 
Residential mortgage loans:
                    
First mortgage loans
  90,992   80,754   54,986   14,571   1,391 
Home equity loans/lines
  67   71   111   -   - 
Total nonaccrual loans
  132,586   147,896   129,058   52,033   1,391 
                      
Accruing loans which are 90 days past due:
                    
CRE loans
  -   830   12,461   -   682 
Residential mortgage loans:
                    
First mortgage loans
  690   5,098   16,863   6,113   1,992 
Home equity loans/lines
  47   159   -   18   - 
Total accruing loans which are 90 days past due
  737   6,087   29,324   6,131   2,674 
Total nonperforming loans
  133,323   153,983   158,382   58,164   4,065 
                      
Real estate owned and other repossessed assets, net:
                    
CRE
  7,707   19,486   4,646   1,928   - 
Residential:
                    
First mortgage
  6,852   8,439   4,045   2,216   1,653 
Home equity
  13   -   -   -   - 
Total
  14,572   27,925   8,691   4,144   1,653 
Total nonperforming assets, net
 $147,895  $181,908  $167,073  $62,308  $5,718 
Total nonperforming assets as a % of total loans, net and other real estate owned, net
  2.25%  2.97%  2.53%  0.88%  0.12%
                      
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 September 30, 2011:

   
30-59
days
  
60-89
days
  
90 days
or more
  
Total
past due
  
Current
  
Total loans held
for investment (1)
 
   
(in thousands)
 
                    
C&I loans
 $-  $-  $-  $-  $4,100,939  $4,100,939 
CRE construction loans
  -   -   -   -   29,087   29,087 
CRE loans
  -   -   5,053   5,053   737,836   742,889 
Residential mortgage loans:
                        
First mortgage loans
  6,400   6,318   61,870   74,588   1,651,181   1,725,769 
Home equity loans/lines
  88   -   114   202   30,515   30,717 
Consumer loans
  -   -   -   -   7,438   7,438 
Total loans held for investment, net
 $6,488  $6,318  $67,037  $79,843  $6,556,996  $6,636,839 

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

Summary of Impaired Loans
The following table provides a summary of RJ Bank's impaired loans:

   
September 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)
                  
C&I loans
 $25,685  $26,535  $8,478  $-  $-  $- 
CRE loans
  6,122   6,131   1,014   60,598   85,652   8,469 
Residential mortgage loans:
                        
First mortgage loans
  83,471   123,202   10,226   74,640   110,521   9,873 
Home equity loans/lines
  128   128   20   144   144   30 
Total
  115,406   155,996   19,738   135,382   196,317   18,372 
                          
Impaired loans without allowance for loan losses:(2)
                        
CRE loans
  9,720   20,648   -   6,473   17,309   - 
Residential - first mortgage loans
  6,553   10,158   -   3,552   5,355   - 
Total
  16,273   30,806   -   10,025   22,664   - 
Total impaired loans
 $131,679  $186,802  $19,738  $145,407  $218,981  $18,372 

(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 total impaired loans and the related interest income recognized in the Consolidated Statements of Income and Comprehensive Income are as follows:

   
Year ended September 30,
 
   
2011
  
2010
  
2009
 
   
(in thousands)
 
Average impaired loan balance:
         
C&I loans
 $8,673  $-  $- 
CRE loans
  38,542   58,266   62,285 
Residential mortgage loans:
            
First mortgage loans
  85,863   64,540   25,976 
Home equity loans/lines
  142   129   127 
Total
 $133,220  $122,935  $88,388 
              
Interest income recognized:
            
Residential mortgage loans:
            
First mortgage loans
 $295  $121  $39 
Home equity loans/lines
  5   3   4 
Total
 $300  $124  $43 

Impact of TDRs
 The table below presents the impact TDRs which occurred during the year ended September 30, 2011 had on our consolidated financial statements:

   
 
Number of
contracts
  
Pre-modification
outstanding
recorded
investment
  
Post-modification
outstanding
recorded
investment
 
   
(in thousands)
 
Troubled debt restructurings:
         
C&I loans
  1  $12,450  $12,034 
CRE loans
  1   9,226   9,226 
Residential mortgage – first mortgage loans
  25   10,025   10,528 
Total
  27  $31,701  $31,788 

Credit Quality of Held for Investment Loan Portfolio
RJ Bank's credit quality of its held for investment loan portfolio as of September 30, 2011 is as follows:

            
Residential mortgage
       
   
C&I
  
CRE
construction
  
CRE
  
First
mortgage
  
Home
equity
  
Consumer
  
Total
 
 
   
(in thousands)
 
                       
Pass
 $3,906,358  $29,087  $572,124  $1,607,327  $30,319  $7,438  $6,152,653 
Special mention
  88,889   -   76,021   23,684   170   -   188,764 
Substandard
  93,658   -   90,058   94,758   228   -   278,702 
Doubtful
  12,034   -   4,686   -   -   -   16,720 
Total
 $4,100,939  $29,087  $742,889  $1,725,769  $30,717  $7,438  $6,636,839 

Changes in the Allowance for Loan Losses
Changes in the allowance for loan losses of RJ Bank by portfolio segment are as follows:

      
Loans held for investment
    
   
Loans held for sale
  
C&I
  
CRE construction
  
CRE
  
Residential mortgage
  
Consumer
  
Total
 
 
   
(in thousands)
 
Year ended September 30, 2011:
                     
Balance at beginning of year:
 $23  $60,464  $4,473  $47,771  $34,297  $56  $147,084 
Provision for loan losses
  (18)  21,261   (3,983)  (3,485)  19,670   210   33,655 
Net charge-offs:
                            
Charge-offs
  -   (458)  -   (15,204)  (22,501)  (255)  (38,418)
Recoveries
  -   -   -   1,670   1,744   9   3,423 
Net charge-offs
  -   (458)  -   (13,534)  (20,757)  (246)  (34,995)
Balance at September 30, 2011
 $5  $81,267  $490  $30,752  $33,210  $20  $145,744 
                              
                              
Year ended September 30, 2010:
                            
Balance at beginning of year:
 $7  $84,841  $3,237  $34,018  $28,081  $88  $150,272 
Provision for loan losses
  16   (24,377)  1,236   67,806   35,764   (32)  80,413 
Net charge-offs:
                            
Charge-offs
  -   -   -   (56,402)  (30,837)  -   (87,239)
Recoveries
  -   -   -   2,349   1,289   -   3,638 
Net charge-offs
  -   -   -   (54,053)  (29,548)  -   (83,601)
Balance at September 30, 2010
 $23  $60,464  $4,473  $47,771  $34,297  $56  $147,084 
                              
                              
Year ended September 30, 2009:
                            
Balance at beginning of year:
 $1  $55,106  $7,061  $17,238  $8,588  $162  $88,155 
Provision for loan losses
  6   29,735   (602)  94,096   46,179   (74)  169,341 
Net charge-offs:
                            
Charge-offs
  -   -   (3,222)  (77,317)  (27,314)  -   (107,853)
Recoveries
  -   -   -   1   628   -   629 
Net charge-offs
  -   -   (3,222)  (77,316)  (26,686)  -   (107,224)
Balance at September 30, 2009
 $7  $84,841  $3,237  $34,018  $28,081  $88  $150,272 
Recorded Investment and Related Allowance for Loan Losses, by Loan Portfolio Segment
The following table presents, by loan portfolio segment, RJ Bank's recorded investment and related allowance for loan losses:

      
Loans held for investment
    
   
Loans held for sale
  
C&I
  
CRE construction
  
CRE
  
Residential mortgage
  
Consumer
  
Total
 
 
   
(in thousands)
 
September 30, 2011:
                     
Allowance for loan losses:
                     
Individually evaluated for impairment
 $-  $8,478  $-  $1,014  $2,642  $-  $12,134 
Collectively evaluated for impairment
  5   72,789   490   29,738   30,568   20   133,610 
Total allowance for loan losses
 $5  $81,267  $490  $30,752  $33,210  $20  $145,744 
Loan category as a % of total recorded investment
  2%  61%  -   11%  26%  -   100%
                              
Recorded investment:(1)
                            
Individually evaluated for impairment
 $-  $25,685  $-  $15,842  $23,453  $-  $64,980 
Collectively evaluated for impairment
  92,748   4,075,254   29,087   727,047   1,733,033   7,438   6,664,607 
Total recorded investment
 $92,748  $4,100,939  $29,087  $742,889  $1,756,486  $7,438  $6,729,587 
     
     
     
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.