ý | Quarterly report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 |
¨ | Transition report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 |
Montana | 81-0331430 | |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) | |
401 North 31st Street, Billings, MT | 59116-0918 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | ¨ | Accelerated filer | ý | |
Non-accelerated filer | ¨ | Smaller reporting company | ¨ |
June 30, 2012 – Class A common stock | 16,890,002 | ||||
June 30, 2012 – Class B common stock | 26,338,748 |
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES Quarterly Report on Form 10-Q Index | |||
Page | |||
Part I. | Financial Information | ||
Item 1. | Financial Statements (unaudited) | ||
3 | |||
4 | |||
5 | |||
6 | |||
7 | |||
9 | |||
Item 2. | 33 | ||
Item 3. | 49 | ||
Item 4. | 49 | ||
Part II. | |||
Item 1. | 50 | ||
Item 1A . | 50 | ||
Item 2. | 50 | ||
Item 3. | 50 | ||
Item 4. | Mine Safety Disclosures | 50 | |
Item 5. | 50 | ||
Item 6. | 50 | ||
52 |
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except share data) (Unaudited) | |||||||
June 30, 2012 | December 31, 2011 | ||||||
Assets | |||||||
Cash and due from banks | $ | 146,577 | $ | 142,502 | |||
Federal funds sold | 2,854 | 309 | |||||
Interest bearing deposits in banks | 387,222 | 329,636 | |||||
Total cash and cash equivalents | 536,653 | 472,447 | |||||
Investment securities: | |||||||
Available-for-sale | 1,913,983 | 2,016,864 | |||||
Held-to-maturity (estimated fair values of $177,532 and $161,877 at June 30, 2012 and December 31, 2011, respectively) | 166,926 | 152,781 | |||||
Total investment securities | 2,080,909 | 2,169,645 | |||||
Loans held for investment | 4,093,815 | 4,133,028 | |||||
Mortgage loans held for sale | 76,148 | 53,521 | |||||
Total loans | 4,169,963 | 4,186,549 | |||||
Less allowance for loan losses | 102,794 | 112,581 | |||||
Net loans | 4,067,169 | 4,073,968 | |||||
Premises and equipment, net of accumulated depreciation | 187,367 | 184,771 | |||||
Goodwill | 183,673 | 183,673 | |||||
Company-owned life insurance | 75,849 | 74,880 | |||||
Other real estate owned (“OREO”) | 53,817 | 37,452 | |||||
Accrued interest receivable | 30,936 | 31,974 | |||||
Mortgage servicing rights, net of accumulated amortization and impairment reserve | 11,985 | 11,555 | |||||
Deferred tax asset, net | 5,017 | 9,628 | |||||
Core deposit intangibles, net of accumulated amortization | 6,647 | 7,357 | |||||
Other assets | 65,154 | 68,177 | |||||
Total assets | $ | 7,305,176 | $ | 7,325,527 | |||
Liabilities and Stockholders’ Equity | |||||||
Deposits: | |||||||
Non-interest bearing | $ | 1,337,777 | $ | 1,271,709 | |||
Interest bearing | 4,563,602 | 4,555,262 | |||||
Total deposits | 5,901,379 | 5,826,971 | |||||
Securities sold under repurchase agreements | 455,993 | 516,243 | |||||
Accounts payable and accrued expenses | 33,589 | 42,248 | |||||
Accrued interest payable | 8,215 | 8,123 | |||||
Long-term debt | 37,181 | 37,200 | |||||
Other borrowed funds | 7 | 7 | |||||
Subordinated debentures held by subsidiary trusts | 82,477 | 123,715 | |||||
Total liabilities | 6,518,841 | 6,554,507 | |||||
Stockholders’ equity: | |||||||
Nonvoting noncumulative preferred stock without par value; authorized 100,000 shares; issued and outstanding 5,000 shares as of June 30, 2012 and December 31, 2011 | 50,000 | 50,000 | |||||
Common stock | 269,698 | 266,842 | |||||
Retained earnings | 448,372 | 435,144 | |||||
Accumulated other comprehensive income, net | 18,265 | 19,034 | |||||
Total stockholders’ equity | 786,335 | 771,020 | |||||
Total liabilities and stockholders’ equity | $ | 7,305,176 | $ | 7,325,527 |
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited) | |||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||
Interest income: | |||||||||||||
Interest and fees on loans | $ | 58,084 | $ | 61,475 | $ | 115,994 | $ | 123,866 | |||||
Interest and dividends on investment securities: | |||||||||||||
Taxable | 9,458 | 10,649 | 19,163 | 20,560 | |||||||||
Exempt from federal taxes | 1,240 | 1,194 | 2,444 | 2,365 | |||||||||
Interest on deposits in banks | 279 | 227 | 516 | 594 | |||||||||
Interest on federal funds sold | 6 | 6 | 7 | 9 | |||||||||
Total interest income | 69,067 | 73,551 | 138,124 | 147,394 | |||||||||
Interest expense: | |||||||||||||
Interest on deposits | 5,779 | 8,903 | 12,041 | 18,774 | |||||||||
Interest on securities sold under repurchase agreements | 152 | 171 | 308 | 408 | |||||||||
Interest on long-term debt | 495 | 495 | 993 | 984 | |||||||||
Interest on subordinated debentures held by subsidiary trusts | 1,467 | 1,455 | 2,974 | 2,903 | |||||||||
Total interest expense | 7,893 | 11,024 | 16,316 | 23,069 | |||||||||
Net interest income | 61,174 | 62,527 | 121,808 | 124,325 | |||||||||
Provision for loan losses | 12,000 | 15,400 | 23,250 | 30,400 | |||||||||
Net interest income after provision for loan losses | 49,174 | 47,127 | 98,558 | 93,925 | |||||||||
Non-interest income: | |||||||||||||
Income from the origination and sale of loans | 9,420 | 4,109 | 17,804 | 7,554 | |||||||||
Other service charges, commissions and fees | 8,254 | 7,768 | 16,678 | 15,148 | |||||||||
Service charges on deposit accounts | 4,455 | 4,385 | 8,616 | 8,495 | |||||||||
Wealth management revenues | 3,815 | 3,689 | 7,098 | 6,999 | |||||||||
Investment securities gains, net | 198 | 16 | 229 | 18 | |||||||||
Other income | 1,520 | 1,624 | 3,619 | 3,536 | |||||||||
Total non-interest income | 27,662 | 21,591 | 54,044 | 41,750 | |||||||||
Non-interest expense: | |||||||||||||
Salaries and wages | 21,640 | 20,554 | 43,204 | 40,757 | |||||||||
Employee benefits | 6,819 | 7,335 | 15,785 | 14,834 | |||||||||
Occupancy, net | 4,037 | 4,013 | 8,025 | 8,228 | |||||||||
Furniture and equipment | 3,189 | 3,129 | 6,327 | 6,349 | |||||||||
Outsourced technology services | 2,179 | 2,212 | 4,445 | 4,453 | |||||||||
OREO expense, net of income | 1,806 | 2,042 | 2,911 | 3,753 | |||||||||
FDIC insurance premiums | 1,601 | 1,629 | 3,196 | 4,095 | |||||||||
Professional fees | 1,002 | 726 | 1,935 | 1,505 | |||||||||
Mortgage servicing rights amortization | 817 | 671 | 1,712 | 1,478 | |||||||||
Mortgage servicing rights impairment (recovery) | 52 | 27 | (816 | ) | (320 | ) | |||||||
Core deposit intangibles amortization | 355 | 361 | 710 | 723 | |||||||||
Other expenses | 13,802 | 11,493 | 27,305 | 21,295 | |||||||||
Total non-interest expense | 57,299 | 54,192 | 114,739 | 107,150 | |||||||||
Income before income tax expense | 19,537 | 14,526 | 37,863 | 28,525 | |||||||||
Income tax expense | 6,527 | 4,672 | 12,639 | 9,165 | |||||||||
Net income | 13,010 | 9,854 | 25,224 | 19,360 | |||||||||
Preferred stock dividends | 853 | 853 | 1,706 | 1,697 | |||||||||
Net income available to common shareholders | $ | 12,157 | $ | 9,001 | $ | 23,518 | $ | 17,663 | |||||
Basic earnings per common share | $ | 0.28 | $ | 0.21 | $ | 0.55 | $ | 0.41 | |||||
Diluted earnings per common share | $ | 0.28 | $ | 0.21 | $ | 0.55 | $ | 0.41 | |||||
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In thousands) (Unaudited) | |||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||
Net income | $ | 13,010 | $ | 9,854 | $ | 25,224 | $ | 19,360 | |||||
Other comprehensive income, before tax: | |||||||||||||
Investment securities available-for sale: | |||||||||||||
Change in net unrealized gains (losses) during period | (1,864 | ) | 21,000 | (1,107 | ) | 21,419 | |||||||
Reclassification adjustment for net gains included in income | (198 | ) | (16 | ) | (229 | ) | (18 | ) | |||||
Defined benefit post-retirement benefits plans: | |||||||||||||
Change in net actuarial loss | 35 | 35 | 68 | 69 | |||||||||
Other comprehensive income, before tax | (2,027 | ) | 21,019 | (1,268 | ) | 21,470 | |||||||
Deferred tax benefit (expense) related to other comprehensive income | 797 | (8,271 | ) | 499 | (8,448 | ) | |||||||
Other comprehensive income (loss), net of tax | (1,230 | ) | 12,748 | (769 | ) | 13,022 | |||||||
Comprehensive income, net of tax | $ | 11,780 | $ | 22,602 | $ | 24,455 | $ | 32,382 |
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (In thousands, except share and per share data) (Unaudited) | |||||||||||||||||||
Preferred stock | Common stock | Retained earnings | Accumulated other comprehensive income | Total stockholders’ equity | |||||||||||||||
Balance at December 31, 2011 | $ | 50,000 | $ | 266,842 | $ | 435,144 | $ | 19,034 | $ | 771,020 | |||||||||
Comprehensive income: | |||||||||||||||||||
Net income | — | — | 25,224 | — | 25,224 | ||||||||||||||
Other comprehensive income, net of tax | — | — | — | (769 | ) | (769 | ) | ||||||||||||
Common stock transactions: | |||||||||||||||||||
17,981 common shares purchased and retired | — | (257 | ) | — | — | (257 | ) | ||||||||||||
23,973 common shares issued | — | — | — | — | — | ||||||||||||||
122,912 non-vested common shares issued | — | — | — | — | — | ||||||||||||||
3,193 non-vested common shares forfeited | — | — | — | — | — | ||||||||||||||
118,865 stock options exercised, net of 39,667 shares tendered in payment of option price and income tax withholding amounts | — | 1,263 | — | — | 1,263 | ||||||||||||||
Tax benefit of stock-based compensation | — | 126 | — | — | 126 | ||||||||||||||
Stock-based compensation expense | — | 1,724 | — | — | 1,724 | ||||||||||||||
Cash dividends declared: | |||||||||||||||||||
Common ($0.24 per share) | — | — | (10,290 | ) | — | (10,290 | ) | ||||||||||||
Preferred (6.75% per share) | — | — | (1,706 | ) | — | (1,706 | ) | ||||||||||||
Balance at June 30, 2012 | $ | 50,000 | $ | 269,698 | $ | 448,372 | $ | 18,265 | $ | 786,335 | |||||||||
Balance at December 31, 2010 | $ | 50,000 | $ | 264,174 | $ | 413,253 | $ | 9,375 | $ | 736,802 | |||||||||
Comprehensive income: | |||||||||||||||||||
Net income | — | — | 19,360 | — | 19,360 | ||||||||||||||
Other comprehensive income, net of tax | — | — | — | 13,022 | 13,022 | ||||||||||||||
Common stock transactions: | |||||||||||||||||||
14,112 common shares purchased and retired | — | (193 | ) | — | — | (193 | ) | ||||||||||||
14,692 common shares issued | — | 195 | — | — | 195 | ||||||||||||||
130,904 non-vested common shares issued | — | — | — | — | — | ||||||||||||||
17,544 non-vested common shares forfeited | — | (89 | ) | — | — | (89 | ) | ||||||||||||
Non-vested liability awards vesting during period | — | 195 | — | — | 195 | ||||||||||||||
50,287 stock options exercised, net of 106,185 shares tendered in payment of option price and income tax withholding amounts | — | 102 | — | — | 102 | ||||||||||||||
Tax benefit of stock-based compensation | — | 224 | — | — | 224 | ||||||||||||||
Stock-based compensation expense | — | 1,031 | — | — | 1,031 | ||||||||||||||
Cash dividends declared: | |||||||||||||||||||
Common ($0.225 per share) | — | — | (9,607 | ) | — | (9,607 | ) | ||||||||||||
Preferred (6.75% per share) | — | — | (1,697 | ) | — | (1,697 | ) | ||||||||||||
Balance at June 30, 2011 | $ | 50,000 | $ | 265,639 | $ | 421,309 | $ | 22,397 | $ | 759,345 |
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) | |||||||
Six Months Ended June 30, | |||||||
2012 | 2011 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 25,224 | $ | 19,360 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Provision for loan losses | 23,250 | 30,400 | |||||
Net (gain) loss on disposal of property and equipment | (501 | ) | 3 | ||||
Depreciation and amortization | 8,568 | 8,677 | |||||
Net premium amortization on investment securities | 5,188 | 4,932 | |||||
Net gains on investment securities transactions | (229 | ) | (18 | ) | |||
Net gains on sales of mortgage loans held for sale | (12,423 | ) | (4,984 | ) | |||
Net (gain) loss on sale of OREO | 6 | (420 | ) | ||||
Write-down of OREO and other assets pending disposal | 1,217 | 3,515 | |||||
Net reversal of impairment of mortgage servicing rights | (816 | ) | (320 | ) | |||
Net gain on sale of mortgage servicing rights | (19 | ) | — | ||||
Deferred income tax (benefit) expense | 5,030 | (538 | ) | ||||
Net increase in cash surrender value of company-owned life insurance policies | (969 | ) | (1,024 | ) | |||
Stock-based compensation expense | 1,724 | 1,116 | |||||
Tax benefits from stock-based compensation expense | 126 | 224 | |||||
Excess tax benefits from stock-based compensation | (108 | ) | (157 | ) | |||
Originations of mortgage loans held for sale, net of sales | (12,265 | ) | 21,709 | ||||
Changes in operating assets and liabilities: | |||||||
Decrease in interest receivable | 1,038 | 40 | |||||
Decrease in other assets | 1,754 | 11,881 | |||||
Increase (decrease) in accrued interest payable | 92 | (1,466 | ) | ||||
Decrease in accounts payable and accrued expenses | (8,659 | ) | (3,275 | ) | |||
Net cash provided by operating activities | 37,228 | 89,655 | |||||
Cash flows from investing activities: | |||||||
Purchases of investment securities: | |||||||
Held-to-maturity | (19,104 | ) | (7,434 | ) | |||
Available-for-sale | (439,614 | ) | (406,564 | ) | |||
Proceeds from maturities and pay-downs of investment securities: | |||||||
Held-to-maturity | 4,739 | 5,405 | |||||
Available-for-sale | 536,527 | 335,877 | |||||
Capital distribution by unconsolidated subsidiary trust | 1,238 | — | |||||
Proceeds from sales of mortgage servicing rights | 907 | — | |||||
Extensions of credit to customers, net of repayments | (29,736 | ) | 34,535 | ||||
Recoveries of loans charged-off | 2,795 | 2,140 | |||||
Proceeds from sales of OREO | 15,674 | 7,963 | |||||
Capital expenditures, net of sales | (8,467 | ) | (4,730 | ) | |||
Net cash provided by (used in) investing activities | $ | 64,959 | $ | (32,808 | ) |
FIRST INTERSTATE BANCSYSTEM, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) (In thousands) (Unaudited) | |||||||
Six Months Ended June 30, | |||||||
2012 | 2011 | ||||||
Cash flows from financing activities: | |||||||
Net increase (decrease) in deposits | $ | 74,408 | $ | (131,048 | ) | ||
Net decrease in repurchase agreements | (60,250 | ) | (185,115 | ) | |||
Net increase in short-term borrowings | — | 449 | |||||
Repayment of junior subordinated debentures held by subsidiary trusts | (41,238 | ) | — | ||||
Repayments of long-term debt | (19 | ) | (22 | ) | |||
Proceeds from issuance of common stock | 1,263 | 102 | |||||
Excess tax benefits from stock-based compensation | 108 | 157 | |||||
Purchase and retirement of common stock | (257 | ) | (193 | ) | |||
Dividends paid to common stockholders | (10,290 | ) | (9,607 | ) | |||
Dividends paid to preferred stockholders | (1,706 | ) | (1,697 | ) | |||
Net cash used in financing activities | (37,981 | ) | (326,974 | ) | |||
Net increase (decrease) in cash and cash equivalents | 64,206 | (270,127 | ) | ||||
Cash and cash equivalents at beginning of period | 472,447 | 685,618 | |||||
Cash and cash equivalents at end of period | $ | 536,653 | $ | 415,491 | |||
Supplemental disclosures of cash flow information: | |||||||
Cash paid during the period for income taxes | $ | 12,740 | $ | 8,730 | |||
Cash paid during the period for interest expense | $ | 16,224 | $ | 24,535 |
(1) | Basis of Presentation |
(2) | Investment Securities |
June 30, 2012 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||
Available-for-Sale: | ||||||||||||
Obligations of U.S. government agencies | $ | 1,024,769 | $ | 4,259 | $ | (71 | ) | $ | 1,028,957 | |||
U.S. agency residential mortgage-backed securities & collateralized mortgage obligations | 856,395 | 28,087 | (106 | ) | 884,376 | |||||||
Private mortgage-backed securities | 645 | 8 | (3 | ) | 650 | |||||||
Total | $ | 1,881,809 | $ | 32,354 | $ | (180 | ) | $ | 1,913,983 |
June 30, 2012 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||
Held-to Maturity: | ||||||||||||
State, county and municipal securities | $ | 166,790 | $ | 10,703 | $ | (97 | ) | $ | 177,396 | |||
Other securities | 136 | — | — | 136 | ||||||||
Total | $ | 166,926 | $ | 10,703 | $ | (97 | ) | $ | 177,532 |
December 31, 2011 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||
Available-for-Sale: | ||||||||||||
Obligations of U.S. government agencies | $ | 1,134,427 | $ | 4,353 | $ | (662 | ) | $ | 1,138,118 | |||
U.S. agency residential mortgage-backed securities & collateralized mortgage obligations | 848,444 | 29,567 | (14 | ) | 877,997 | |||||||
Private mortgage-backed securities | 758 | 7 | (16 | ) | 749 | |||||||
Total | $ | 1,983,629 | $ | 33,927 | $ | (692 | ) | $ | 2,016,864 |
December 31, 2011 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||
Held-to Maturity: | ||||||||||||
State, county and municipal securities | $ | 152,619 | $ | 9,113 | $ | (17 | ) | $ | 161,715 | |||
Other securities | 162 | — | — | 162 | ||||||||
Total | $ | 152,781 | $ | 9,113 | $ | (17 | ) | $ | 161,877 |
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||
June 30, 2012 | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||||||
Available-for-Sale: | ||||||||||||||||||||
Obligations of U.S. government agencies | $ | 64,982 | $ | (71 | ) | $ | — | $ | — | $ | 64,982 | $ | (71 | ) | ||||||
U.S. agency residential mortgage-backed securities & collateralized mortgage obligations | 42,902 | (106 | ) | — | — | 42,902 | (106 | ) | ||||||||||||
Private mortgage-backed securities | 226 | (1 | ) | 160 | (2 | ) | 386 | (3 | ) | |||||||||||
Total | $ | 108,110 | $ | (178 | ) | $ | 160 | $ | (2 | ) | $ | 108,270 | $ | (180 | ) |
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||
June 30, 2012 | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||||||
Held-to-Maturity: | ||||||||||||||||||||
State, county and municipal securities | $ | 7,451 | $ | (80 | ) | $ | 721 | $ | (17 | ) | $ | 8,172 | $ | (97 | ) |
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||
December 31, 2011 | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||||||
Available-for-Sale: | ||||||||||||||||||||
Obligations of U.S. government agencies | $ | 287,404 | $ | (662 | ) | $ | — | $ | — | $ | 287,404 | $ | (662 | ) | ||||||
U.S. agency residential mortgage-backed securities & collateralized mortgage obligations | 45,694 | (14 | ) | — | — | 45,694 | (14 | ) | ||||||||||||
Private mortgage-backed securities | 246 | (10 | ) | 177 | (6 | ) | 423 | (16 | ) | |||||||||||
Total | $ | 333,344 | $ | (686 | ) | $ | 177 | $ | (6 | ) | $ | 333,521 | $ | (692 | ) |
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||
December 31, 2011 | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||||||
Held-to-Maturity: | ||||||||||||||||||||
State, county and municipal securities | $ | — | $ | — | $ | 773 | $ | (17 | ) | $ | 773 | $ | (17 | ) |
Available-for-Sale | Held-to-Maturity | ||||||||||||
June 30, 2012 | Amortized Cost | Estimated Fair Value | Amortized Cost | Estimated Fair Value | |||||||||
Within one year | $ | 407,085 | $ | 415,903 | $ | 5,827 | $ | 5,676 | |||||
After one year but within five years | 1,194,260 | 1,210,099 | 25,859 | 26,720 | |||||||||
After five years but within ten years | 186,190 | 190,628 | 72,298 | 76,837 | |||||||||
After ten years | 94,274 | 97,353 | 62,806 | 68,163 | |||||||||
Total | 1,881,809 | 1,913,983 | 166,790 | 177,396 | |||||||||
Investments with no stated maturity | — | — | 136 | 136 | |||||||||
Total | $ | 1,881,809 | $ | 1,913,983 | $ | 166,926 | $ | 177,532 |
(3) | Loans |
June 30, 2012 | December 31, 2011 | ||||||
Real estate loans: | |||||||
Commercial | $ | 1,517,400 | $ | 1,553,155 | |||
Construction: | |||||||
Land acquisition & development | 240,550 | 278,613 | |||||
Residential | 51,193 | 61,106 | |||||
Commercial | 59,911 | 61,054 | |||||
Total construction loans | 351,654 | 400,773 | |||||
Residential | 572,018 | 571,943 | |||||
Agricultural | 171,087 | 175,302 | |||||
Total real estate loans | 2,612,159 | 2,701,173 | |||||
Consumer: | |||||||
Indirect consumer | 418,604 | 407,651 | |||||
Other consumer | 144,442 | 147,487 | |||||
Credit card | 58,166 | 60,933 | |||||
Total consumer loans | 621,212 | 616,071 | |||||
Commercial | 720,010 | 693,261 | |||||
Agricultural | 138,115 | 119,710 | |||||
Other, including overdrafts | 2,319 | 2,813 | |||||
Loans held for investment | 4,093,815 | 4,133,028 | |||||
Mortgage loans held for sale | 76,148 | 53,521 | |||||
Total loans | $ | 4,169,963 | $ | 4,186,549 |
Total Loans | |||||||||||||||||||||
30 - 59 | 60 - 89 | > 90 | 30 or More | ||||||||||||||||||
Days | Days | Days | Days | Current | Non-accrual | Total | |||||||||||||||
As of June 30, 2012 | Past Due | Past Due | Past Due | Past Due | Loans | Loans | Loans | ||||||||||||||
Real estate | |||||||||||||||||||||
Commercial | $ | 9,570 | $ | 4,391 | $ | 1,295 | $ | 15,256 | $ | 1,450,257 | $ | 51,887 | $ | 1,517,400 | |||||||
Construction: | |||||||||||||||||||||
Land acquisition & development | 4,064 | 1,876 | 49 | 5,989 | 198,950 | 35,611 | 240,550 | ||||||||||||||
Residential | 411 | — | — | 411 | 47,609 | 3,173 | 51,193 | ||||||||||||||
Commercial | — | — | — | — | 48,889 | 11,022 | 59,911 | ||||||||||||||
Total construction loans | 4,475 | 1,876 | 49 | 6,400 | 295,448 | 49,806 | 351,654 | ||||||||||||||
Residential | 5,234 | 1,264 | 1,231 | 7,729 | 552,998 | 11,291 | 572,018 | ||||||||||||||
Agricultural | 14,072 | 865 | — | 14,937 | 151,399 | 4,751 | 171,087 | ||||||||||||||
Total real estate loans | 33,351 | 8,396 | 2,575 | 44,322 | 2,450,102 | 117,735 | 2,612,159 | ||||||||||||||
Consumer: | |||||||||||||||||||||
Indirect consumer | 2,035 | 200 | 20 | 2,255 | 415,878 | 471 | 418,604 | ||||||||||||||
Other consumer | 1,078 | 102 | 135 | 1,315 | 142,423 | 704 | 144,442 | ||||||||||||||
Credit card | 428 | 241 | 686 | 1,355 | 56,786 | 25 | 58,166 | ||||||||||||||
Total consumer loans | 3,541 | 543 | 841 | 4,925 | 615,087 | 1,200 | 621,212 | ||||||||||||||
Commercial | 7,062 | 1,382 | 3,835 | 12,279 | 697,231 | 10,500 | 720,010 | ||||||||||||||
Agricultural | 654 | 144 | 380 | 1,178 | 136,449 | 488 | 138,115 | ||||||||||||||
Other, including overdrafts | — | — | — | — | 2,319 | — | 2,319 | ||||||||||||||
Loans held for investment | 44,608 | 10,465 | 7,631 | 62,704 | 3,901,188 | 129,923 | 4,093,815 | ||||||||||||||
Mortgage loans originated for sale | — | — | — | — | 76,148 | — | 76,148 | ||||||||||||||
Total loans | $ | 44,608 | $ | 10,465 | $ | 7,631 | $ | 62,704 | $ | 3,977,336 | $ | 129,923 | $ | 4,169,963 |
Total Loans | |||||||||||||||||||||
30 - 59 | 60 - 89 | > 90 | 30 or More | ||||||||||||||||||
Days | Days | Days | Days | Current | Non-accrual | Total | |||||||||||||||
As of December 31, 2011 | Past Due | Past Due | Past Due | Past Due | Loans | Loans | Loans | ||||||||||||||
Real estate | |||||||||||||||||||||
Commercial | $ | 22,124 | $ | 7,871 | $ | 630 | $ | 30,625 | $ | 1,455,139 | $ | 67,391 | $ | 1,553,155 | |||||||
Construction: | |||||||||||||||||||||
Land acquisition & development | 5,251 | 2,448 | 867 | 8,566 | 208,134 | 61,913 | 278,613 | ||||||||||||||
Residential | 415 | — | — | 415 | 56,219 | 4,472 | 61,106 | ||||||||||||||
Commercial | 1,698 | — | — | 1,698 | 34,820 | 24,536 | 61,054 | ||||||||||||||
Total construction loans | 7,364 | 2,448 | 867 | 10,679 | 299,173 | 90,921 | 400,773 | ||||||||||||||
Residential | 4,669 | 973 | 1,798 | 7,440 | 546,278 | 18,225 | 571,943 | ||||||||||||||
Agricultural | 4,103 | 1,831 | — | 5,934 | 166,119 | 3,249 | 175,302 | ||||||||||||||
Total real estate loans | 38,260 | 13,123 | 3,295 | 54,678 | 2,466,709 | 179,786 | 2,701,173 | ||||||||||||||
Consumer: | |||||||||||||||||||||
Indirect consumer | 3,078 | 370 | 45 | 3,493 | 403,695 | 463 | 407,651 | ||||||||||||||
Other consumer | 1,479 | 436 | 60 | 1,975 | 144,625 | 887 | 147,487 | ||||||||||||||
Credit card | 604 | 375 | 585 | 1,564 | 59,343 | 26 | 60,933 | ||||||||||||||
Total consumer loans | 5,161 | 1,181 | 690 | 7,032 | 607,663 | 1,376 | 616,071 | ||||||||||||||
Commercial | 13,721 | 3,464 | 405 | 17,590 | 657,609 | 18,062 | 693,261 | ||||||||||||||
Agricultural | 476 | 215 | 110 | 801 | 118,150 | 759 | 119,710 | ||||||||||||||
Other, including overdrafts | — | 2 | — | 2 | 2,811 | — | 2,813 | ||||||||||||||
Loans held for investment | 57,618 | 17,985 | 4,500 | 80,103 | 3,852,942 | 199,983 | 4,133,028 | ||||||||||||||
Mortgage loans originated for sale | — | — | — | — | 53,521 | — | 53,521 | ||||||||||||||
Total loans | $ | 57,618 | $ | 17,985 | $ | 4,500 | $ | 80,103 | $ | 3,906,463 | $ | 199,983 | $ | 4,186,549 |
As of June 30, 2012 | Unpaid Total Principal Balance | Recorded Investment With No Allowance | Recorded Investment With Allowance | Total Recorded Investment | Related Allowance | ||||||||||
Real estate: | |||||||||||||||
Commercial | $ | 88,616 | $ | 60,518 | $ | 19,509 | $ | 80,027 | $ | 5,388 | |||||
Construction: | |||||||||||||||
Land acquisition & development | 50,837 | 21,910 | 16,667 | 38,577 | 6,776 | ||||||||||
Residential | 3,505 | 1,541 | 1,632 | 3,173 | 276 | ||||||||||
Commercial | 13,743 | 1,558 | 9,463 | 11,021 | 572 | ||||||||||
Total construction loans | 68,085 | 25,009 | 27,762 | 52,771 | 7,624 | ||||||||||
Residential | 12,176 | 4,332 | 7,661 | 11,993 | 2,111 | ||||||||||
Agricultural | 5,733 | 3,302 | 1,933 | 5,235 | 76 | ||||||||||
Total real estate loans | 174,610 | 93,161 | 56,865 | 150,026 | 15,199 | ||||||||||
Commercial | 12,526 | 7,748 | 4,226 | 11,974 | 2,339 | ||||||||||
Agricultural | 552 | 95 | 405 | 500 | 405 | ||||||||||
Total | $ | 187,688 | $ | 101,004 | $ | 61,496 | $ | 162,500 | $ | 17,943 |
As of December 31, 2011 | Unpaid Total Principal Balance | Recorded Investment With No Allowance | Recorded Investment With Allowance | Total Recorded Investment | Related Allowance | ||||||||||
Real estate: | |||||||||||||||
Commercial | $ | 97,745 | $ | 62,769 | $ | 23,218 | $ | 85,987 | $ | 6,741 | |||||
Construction: | |||||||||||||||
Land acquisition & development | 73,258 | 22,300 | 39,131 | 61,431 | 12,084 | ||||||||||
Residential | 13,721 | 10,427 | 2,044 | 12,471 | 312 | ||||||||||
Commercial | 26,647 | 3,510 | 21,026 | 24,536 | 5,042 | ||||||||||
Total construction loans | 113,626 | 36,237 | 62,201 | 98,438 | 17,438 | ||||||||||
Residential | 18,305 | 2,678 | 15,626 | 18,304 | 3,844 | ||||||||||
Agricultural | 8,018 | 7,470 | — | 7,470 | — | ||||||||||
Total real estate loans | 237,694 | 109,154 | 101,045 | 210,199 | 28,023 | ||||||||||
Commercial | 26,348 | 7,354 | 12,284 | 19,638 | 4,664 | ||||||||||
Agricultural | 759 | 496 | 263 | 759 | 151 | ||||||||||
Total | $ | 264,801 | $ | 117,004 | $ | 113,592 | $ | 230,596 | $ | 32,838 |
Three Months Ended June 30, | ||||||||||||||
2012 | 2011 | |||||||||||||
Average Recorded Investment | Income Recognized | Average Recorded Investment | Income Recognized | |||||||||||
Real estate: | ||||||||||||||
Commercial | $ | 87,135 | $ | 320 | 90,625 | $ | 110 | |||||||
Construction: | ||||||||||||||
Land acquisition & development | 51,949 | 30 | 54,500 | 42 | ||||||||||
Residential | 3,637 | — | 18,841 | 18 | ||||||||||
Commercial | 20,807 | — | 18,306 | — | ||||||||||
Total construction loans | 76,393 | 30 | 91,647 | 60 | ||||||||||
Residential | 14,726 | 12 | 23,085 | 97 | ||||||||||
Agricultural | 6,816 | — | 6,086 | 40 | ||||||||||
Total real estate loans | 185,070 | 362 | 211,443 | 307 | ||||||||||
Commercial | 14,355 | 22 | 29,626 | 23 | ||||||||||
Agricultural | 1,378 | 11 | 1,003 | — | ||||||||||
Total | $ | 200,803 | $ | 395 | 242,072 | $ | 330 |
Six Months Ended June 30, | |||||||||||||||
2012 | 2011 | ||||||||||||||
Average Recorded Investment | Income Recognized | Average Recorded Investment | Income Recognized | ||||||||||||
Real estate: | |||||||||||||||
Commercial | $ | 85,701 | $ | 671 | $ | 81,429 | $ | 202 | |||||||
Construction: | |||||||||||||||
Land acquisition & development | 56,924 | 46 | 49,444 | 87 | |||||||||||
Residential | 8,810 | — | 17,697 | 37 | |||||||||||
Commercial | 22,536 | — | 18,811 | — | |||||||||||
Total construction loans | 88,270 | 46 | 85,952 | 124 | |||||||||||
Residential | 16,251 | 21 | 19,415 | 97 | |||||||||||
Agricultural | 10,039 | 32 | 5,094 | 42 | |||||||||||
Total real estate loans | 200,261 | 770 | 191,890 | 465 | |||||||||||
Commercial | 16,195 | 44 | 31,505 | 65 | |||||||||||
Agricultural | 1,246 | 15 | 945 | — | |||||||||||
Total | $ | 217,702 | $ | 829 | $ | 224,340 | $ | 530 |
Type of Concession | ||||||||||||||||||
Three Months Ended June 30, 2012 | Number of Notes | Interest only period | Extension of terms or maturity | Interest rate adjustment | Other (1) | Principal Balance at Restructure Date | ||||||||||||
Real estate: | ||||||||||||||||||
Commercial | 3 | $ | — | $ | — | $ | 2,787 | $ | 149 | $ | 2,936 | |||||||
Construction: | ||||||||||||||||||
Land acquisition & development | 1 | — | 229 | — | — | 229 | ||||||||||||
Total construction loans | 1 | — | 229 | — | — | 229 | ||||||||||||
Total real estate loans | 4 | — | 229 | 2,787 | 149 | 3,165 | ||||||||||||
Consumer: | ||||||||||||||||||
Other | 1 | — | 69 | — | — | 69 | ||||||||||||
Total consumer loans | 1 | — | 69 | — | — | 69 | ||||||||||||
Total loans restructured during period | 5 | $ | — | $ | 298 | $ | 2,787 | $ | 149 | $ | 3,234 |
Number of Notes | Type of Concession | Principal Balance at Restructure Date | ||||||||||||||||
Six Months Ended June 30, 2012 | Interest only period | Extension of terms or maturity | Interest rate adjustment | Other (1) | ||||||||||||||
Real estate: | ||||||||||||||||||
Commercial | 12 | $ | — | $ | — | $ | 3,876 | $ | 8,612 | $ | 12,488 | |||||||
Construction: | ||||||||||||||||||
Land acquisition & development | 3 | — | 229 | — | 623 | 852 | ||||||||||||
Commercial | 1 | — | — | — | 3,155 | 3,155 | ||||||||||||
Total construction loans | 4 | — | 229 | — | 3,778 | 4,007 | ||||||||||||
Residential | 2 | 568 | 25 | — | — | 593 | ||||||||||||
Total real estate loans | 18 | 568 | 254 | 3,876 | 12,390 | 17,088 | ||||||||||||
Consumer: | ||||||||||||||||||
Other | 1 | — | 69 | — | — | 69 | ||||||||||||
Total consumer loans | 1 | — | 69 | — | — | 69 | ||||||||||||
Commercial | 5 | 13 | 98 | — | 80 | 191 | ||||||||||||
Total loans restructured during period | 24 | $ | 581 | $ | 421 | $ | 3,876 | $ | 12,470 | $ | 17,348 |
(1) | Other includes concessions that reduce or defer payments for a specified period of time and/or extend amortization schedules. |
Three Months Ended June 30, 2012 | Six Months Ended June 30, 2012 | ||||||||||
Number of Notes | Balance | Number of Notes | Balance | ||||||||
Real estate: | |||||||||||
Commercial | 13 | $ | 4,363 | 13 | $ | 4,363 | |||||
Construction: | |||||||||||
Land acquisition & development | 2 | 380 | 3 | $ | 885 | ||||||
Total construction loans | 2 | 380 | 3 | 885 | |||||||
Agriculture | — | — | 2 | 1,624 | |||||||
Total real estate loans | 15 | 4,743 | 18 | 6,872 | |||||||
Commercial | 1 | 25 | 1 | 25 | |||||||
Agricultural | 1 | 239 | 3 | 567 | |||||||
Total | 17 | $ | 5,007 | 22 | $ | 7,464 |
As of June 30, 2012 | Other Assets Especially Mentioned | Substandard | Doubtful | Total Criticized Loans | ||||||||
Real estate: | ||||||||||||
Commercial | $ | 104,976 | $ | 155,539 | $ | 20,808 | $ | 281,323 | ||||
Construction: | ||||||||||||
Land acquisition & development | 31,305 | 17,682 | 30,776 | 79,763 | ||||||||
Residential | 1,211 | 4,188 | 1,632 | 7,031 | ||||||||
Commercial | — | 530 | 10,495 | 11,025 | ||||||||
Total construction loans | 32,516 | 22,400 | 42,903 | 97,819 | ||||||||
Residential | 7,851 | 14,358 | 7,661 | 29,870 | ||||||||
Agricultural | 23,379 | 11,123 | 2,328 | 36,830 | ||||||||
Total real estate loans | 168,722 | 203,420 | 73,700 | 445,842 | ||||||||
Consumer: | ||||||||||||
Indirect consumer | 995 | 1,875 | 118 | 2,988 | ||||||||
Other consumer | 1,058 | 1,365 | 559 | 2,982 | ||||||||
Credit card | — | 430 | 2,458 | 2,888 | ||||||||
Total consumer loans | 2,053 | 3,670 | 3,135 | 8,858 | ||||||||
Commercial | 43,935 | 35,312 | 4,233 | 83,480 | ||||||||
Agricultural | 5,798 | 1,514 | 406 | 7,718 | ||||||||
Total | $ | 220,508 | $ | 243,916 | $ | 81,474 | $ | 545,898 |
As of December 31, 2011 | Other Assets Especially Mentioned | Substandard | Doubtful | Total Criticized Loans | ||||||||
Real estate: | ||||||||||||
Commercial | $ | 129,046 | $ | 153,320 | $ | 25,087 | $ | 307,453 | ||||
Construction: | ||||||||||||
Land acquisition & development | 37,294 | 31,873 | 38,761 | 107,928 | ||||||||
Residential | 9,448 | 5,528 | 2,044 | 17,020 | ||||||||
Commercial | — | 2,620 | 21,916 | 24,536 | ||||||||
Total construction loans | 46,742 | 40,021 | 62,721 | 149,484 | ||||||||
Residential | 8,149 | 15,706 | 15,140 | 38,995 | ||||||||
Agricultural | 16,037 | 18,498 | 395 | 34,930 | ||||||||
Total real estate loans | 199,974 | 227,545 | 103,343 | 530,862 | ||||||||
Consumer: | ||||||||||||
Indirect consumer | 1,141 | 1,729 | 247 | 3,117 | ||||||||
Other consumer | 745 | 1,361 | 674 | 2,780 | ||||||||
Credit card | — | 486 | 2,789 | 3,275 | ||||||||
Total consumer loans | 1,886 | 3,576 | 3,710 | 9,172 | ||||||||
Commercial | 34,698 | 33,478 | 12,849 | 81,025 | ||||||||
Agricultural | 4,345 | 5,195 | 263 | 9,803 | ||||||||
Total | $ | 240,903 | $ | 269,794 | $ | 120,165 | $ | 630,862 |
(4) | Allowance For Loan Losses |
Three Months Ended June 30, 2012 | Real Estate | Consumer | Commercial | Agriculture | Other | Total | ||||||||||||
Allowance for loan losses: | ||||||||||||||||||
Beginning balance | $ | 89,128 | $ | 7,212 | $ | 18,380 | $ | 1,182 | $ | — | $ | 115,902 | ||||||
Provision charged to operating expense | 10,419 | 784 | 866 | (69 | ) | — | 12,000 | |||||||||||
Less loans charged-off | (22,350 | ) | (1,210 | ) | (3,180 | ) | (5 | ) | — | (26,745 | ) | |||||||
Add back recoveries of loans previously charged-off | 526 | 488 | 609 | 14 | — | 1,637 | ||||||||||||
Ending balance | $ | 77,723 | $ | 7,274 | $ | 16,675 | $ | 1,122 | $ | — | $ | 102,794 | ||||||
Six Months Ended June 30, 2012 | Real Estate | Consumer | Commercial | Agriculture | Other | Total | ||||||||||||
Allowance for loan losses: | ||||||||||||||||||
Beginning balance | $ | 87,396 | $ | 8,594 | $ | 15,325 | $ | 1,266 | $ | — | $ | 112,581 | ||||||
Provision charged to operating expense | 16,801 | 193 | 6,307 | (51 | ) | — | 23,250 | |||||||||||
Less loans charged-off | (27,506 | ) | (2,522 | ) | (5,692 | ) | (112 | ) | — | (35,832 | ) | |||||||
Add back recoveries of loans previously charged-off | 1,032 | 1,009 | 735 | 19 | — | 2,795 | ||||||||||||
Ending balance | $ | 77,723 | $ | 7,274 | $ | 16,675 | $ | 1,122 | $ | — | $ | 102,794 | ||||||
As of June 30, 2012 | Real Estate | Consumer | Commercial | Agriculture | Other | Total | ||||||||||||
Allowance for loan losses: | ||||||||||||||||||
Loans individually evaluated for impairment | $ | 15,199 | $ | — | $ | 2,339 | $ | 405 | $ | — | $ | 17,943 | ||||||
Loans collectively evaluated for impairment | 62,524 | 7,274 | 14,336 | 717 | — | 84,851 | ||||||||||||
Allowance for loan losses | $ | 77,723 | $ | 7,274 | $ | 16,675 | $ | 1,122 | $ | — | $ | 102,794 | ||||||
As of June 30, 2012 | Real Estate | Consumer | Commercial | Agriculture | Other | Total | ||||||||||||
Total loans: | ||||||||||||||||||
Individually evaluated for impairment | $ | 150,026 | $ | — | $ | 11,974 | $ | 500 | $ | — | $ | 162,500 | ||||||
Collectively evaluated for impairment | 2,538,281 | 621,212 | 708,036 | 137,615 | 2,319 | 4,007,463 | ||||||||||||
Total loans | $ | 2,688,307 | $ | 621,212 | $ | 720,010 | $ | 138,115 | $ | 2,319 | $ | 4,169,963 |
Three Months Ended June 30, 2011 | Real Estate | Consumer | Commercial | Agriculture | Other | Total | ||||||||||||
Allowance for loan losses: | ||||||||||||||||||
Beginning balance | $ | 92,350 | $ | 8,992 | $ | 21,790 | $ | 1,314 | $ | — | $ | 124,446 | ||||||
Provision charged to operating expense | 10,941 | 563 | 3,798 | 98 | — | 15,400 | ||||||||||||
Less loans charged-off | (13,157 | ) | (1,499 | ) | (1,407 | ) | (39 | ) | — | (16,102 | ) | |||||||
Add back recoveries of loans previously charged-off | 109 | 470 | 253 | 3 | — | 835 | ||||||||||||
Ending balance | $ | 90,243 | $ | 8,526 | $ | 24,434 | $ | 1,376 | $ | — | $ | 124,579 | ||||||
Six Months Ended June 30, 2011 | Real Estate | Consumer | Commercial | Agriculture | Other | Total | ||||||||||||
Allowance for loan losses: | ||||||||||||||||||
Beginning balance | $ | 84,181 | $ | 9,332 | $ | 25,354 | $ | 1,613 | $ | — | $ | 120,480 | ||||||
Provision charged to operating expense | 23,096 | 1,251 | 6,255 | (202 | ) | — | 30,400 | |||||||||||
Less loans charged-off | (17,388 | ) | (2,959 | ) | (8,049 | ) | (45 | ) | — | (28,441 | ) | |||||||
Add back recoveries of loans previously charged-off | 354 | 902 | 874 | 10 | — | 2,140 | ||||||||||||
Ending balance | $ | 90,243 | $ | 8,526 | $ | 24,434 | $ | 1,376 | $ | — | $ | 124,579 | ||||||
As of June 30, 2011 | Real Estate | Consumer | Commercial | Agriculture | Other | Total | ||||||||||||
Allowance for loan losses: | ||||||||||||||||||
Loans individually evaluated for impairment | $ | 29,903 | $ | — | $ | 13,740 | $ | 249 | $ | — | $ | 43,892 | ||||||
Loans collectively evaluated for impairment | 60,340 | 8,526 | 10,694 | 1,127 | — | 80,687 | ||||||||||||
Allowance for loan losses | $ | 90,243 | $ | 8,526 | $ | 24,434 | $ | 1,376 | $ | — | $ | 124,579 | ||||||
As of June 30, 2011 | Real Estate | Consumer | Commercial | Agriculture | Other | Total | ||||||||||||
Total loans: | ||||||||||||||||||
Individually evaluated for impairment | $ | 208,485 | $ | — | $ | 32,609 | $ | 923 | $ | — | $ | 242,017 | ||||||
Collectively evaluated for impairment | 2,585,238 | 626,184 | 691,549 | 132,975 | 3,297 | 4,039,243 | ||||||||||||
Total loans | $ | 2,793,723 | $ | 626,184 | $ | 724,158 | $ | 133,898 | $ | 3,297 | $ | 4,281,260 |
(5) | Other Real Estate Owned |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Beginning balance | $ | 44,756 | $ | 31,995 | $ | 37,452 | $ | 33,632 | |||||||
Additions | 19,139 | 2,883 | 33,117 | 5,763 | |||||||||||
Capitalized improvements | 406 | — | 75 | 15 | |||||||||||
Valuation adjustments | (569 | ) | (1,963 | ) | (1,147 | ) | (3,515 | ) | |||||||
Dispositions | (9,915 | ) | (4,592 | ) | (15,680 | ) | (7,572 | ) | |||||||
Ending balance | $ | 53,817 | $ | 28,323 | $ | 53,817 | $ | 28,323 |
(6) | Subordinated Debentures Held by Subsidiary Trusts |
(7) | Common Stock |
(8) | Earnings per Common Share |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||
Net income | $ | 13,010 | $ | 9,854 | $ | 25,224 | $ | 19,360 | |||||
Less preferred stock dividends | 853 | 853 | 1,706 | 1,697 | |||||||||
Net income available to common shareholders, basic and diluted | $ | 12,157 | $ | 9,001 | $ | 23,518 | $ | 17,663 | |||||
Weighted average common shares outstanding for basic earnings per share computation | 42,966,926 | 42,781,894 | 42,920,347 | 42,735,897 | |||||||||
Dilutive effects of stock-based compensation | 93,278 | 114,717 | 96,111 | 138,031 | |||||||||
Weighted average common shares outstanding for diluted earnings per common share computation | 43,060,204 | 42,896,611 | 43,016,458 | 42,873,928 | |||||||||
Basic earnings per common share | $ | 0.28 | $ | 0.21 | $ | 0.55 | $ | 0.41 | |||||
Diluted earnings per common share | $ | 0.28 | $ | 0.21 | $ | 0.55 | $ | 0.41 |
(9) | Regulatory Capital |
Actual | Adequately Capitalized | Well Capitalized | |||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||
June 30, 2012 | |||||||||||||||||
Total risk-based capital: | |||||||||||||||||
Consolidated | $ | 778,980 | 16.2 | % | $ | 384,573 | 8.0 | % | NA | NA | |||||||
FIB | 677,619 | 14.2 | 382,724 | 8.0 | $ | 478,406 | 10.0 | % | |||||||||
Tier 1 risk-based capital: | |||||||||||||||||
Consolidated | 683,363 | 14.2 | 192,286 | 4.0 | NA | NA | |||||||||||
FIB | 602,288 | 12.6 | 191,362 | 4.0 | $ | 287,043 | 6.0 | ||||||||||
Leverage capital ratio: | |||||||||||||||||
Consolidated | 683,363 | 9.5 | 286,505 | 4.0 | NA | NA | |||||||||||
FIB | 602,288 | 8.4 | 285,417 | 4.0 | $ | 356,771 | 5.0 |
Actual | Adequately Capitalized | Well Capitalized | |||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||
December 31, 2011 | |||||||||||||||||
Total risk-based capital: | |||||||||||||||||
Consolidated | $ | 800,354 | 16.5 | % | $ | 387,082 | 8.0 | % | NA | NA | |||||||
FIB | 663,860 | 13.8 | 384,987 | 8.0 | $ | 481,234 | 10.0 | % | |||||||||
Tier 1 risk-based capital: | |||||||||||||||||
Consolidated | 704,229 | 14.6 | 193,541 | 4.0 | NA | NA | |||||||||||
FIB | 588,059 | 12.2 | 192,494 | 4.0 | $ | 288,740 | 6.0 | ||||||||||
Leverage capital ratio: | |||||||||||||||||
Consolidated | 704,229 | 9.8 | 286,303 | 4.0 | NA | NA | |||||||||||
FIB | 588,059 | 8.2 | 285,358 | 4.0 | $ | 356,698 | 5.0 |
(10) | Commitments and Contingencies |
(11) | Financial Instruments with Off-Balance Sheet Risk |
(12) | Supplemental Disclosures to Consolidated Statement of Cash Flows |
(13) | Other Comprehensive Income |
Pre-tax | Tax Expense (Benefit) | Net of Tax | |||||||||||||||||||||
Three Months Ended June 30, | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | |||||||||||||||||
Investment securities available-for sale: | |||||||||||||||||||||||
Change in net unrealized gain during period | $ | (1,864 | ) | $ | 21,000 | $ | (733 | ) | $ | 8,263 | $ | (1,131 | ) | $ | 12,737 | ||||||||
Reclassification adjustment for net gains included in net income | (198 | ) | (16 | ) | (78 | ) | (6 | ) | (120 | ) | (10 | ) | |||||||||||
Defined benefits post-retirement benefit plan: | |||||||||||||||||||||||
Change in net actuarial loss | 35 | 35 | 14 | 14 | 21 | 21 | |||||||||||||||||
Total other comprehensive income | $ | (2,027 | ) | $ | 21,019 | $ | (797 | ) | $ | 8,271 | $ | (1,230 | ) | $ | 12,748 | ||||||||
Pre-tax | Tax Expense (Benefit) | Net of Tax | |||||||||||||||||||||
Six Months Ended June 30, | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | |||||||||||||||||
Investment securities available-for sale: | |||||||||||||||||||||||
Change in net unrealized gain during period | $ | (1,107 | ) | $ | 21,419 | $ | (436 | ) | $ | 8,428 | $ | (671 | ) | $ | 12,991 | ||||||||
Reclassification adjustment for net gains included in net income | (229 | ) | (18 | ) | (90 | ) | (7 | ) | (139 | ) | (11 | ) | |||||||||||
Defined benefits post-retirement benefit plan: | |||||||||||||||||||||||
Change in net actuarial loss | 68 | 69 | 27 | 27 | 41 | 42 | |||||||||||||||||
Total other comprehensive income | $ | (1,268 | ) | $ | 21,470 | $ | (499 | ) | $ | 8,448 | $ | (769 | ) | $ | 13,022 |
June 30, 2012 | December 31, 2011 | ||||||
Net unrealized gain on investment securities available-for-sale | $ | 19,723 | $ | 20,533 | |||
Net actuarial loss on defined benefit post-retirement benefit plans | (1,458 | ) | (1,499 | ) | |||
Net accumulated other comprehensive income | $ | 18,265 | $ | 19,034 |
(14) | Fair Value Measurements |
Fair Value Measurements at Reporting Date Using | ||||||||||||
Balance as of June 30, 2012 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||
Investment securities available-for-sale: | ||||||||||||
Obligations of U.S. government agencies | $ | 1,028,957 | $ | — | $ | 1,028,957 | $ | — | ||||
U.S. agencies mortgage-backed securities & collateralized mortgage obligations | 884,376 | — | 884,376 | — | ||||||||
Private mortgage-backed securities | 650 | — | 650 | — | ||||||||
Mortgage servicing rights | 14,180 | — | 14,180 | — |
Fair Value Measurements at Reporting Date Using | ||||||||||||
Balance as of December 31, 2011 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||
Investment securities available-for-sale: | ||||||||||||
Obligations of U.S. government agencies | $ | 1,138,118 | $ | — | $ | 1,138,118 | $ | — | ||||
U.S. agencies mortgage-backed securities & collateralized mortgage obligations | 877,997 | — | 877,997 | — | ||||||||
Private mortgage-backed securities | 749 | — | 749 | — | ||||||||
Mortgage servicing rights | 11,910 | — | 11,910 | — | ||||||||
Derivative liability contract | 383 | — | — | 383 |
Six Months Ended June 30, | 2012 | 2011 | ||||
Balance, beginning of period | $ | 383 | $ | 86 | ||
Accruals during the period | — | 164 | ||||
Cash payments during the period | (383 | ) | (128 | ) | ||
Balance, end of period | $ | — | $ | 122 |
Fair Value Measurements at Reporting Date Using | ||||||||||||
Balance as of June 30, 2012 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||
Impaired loans | $ | 69,893 | $ | — | $ | — | $ | 69,893 | ||||
Other real estate owned | 16,442 | — | — | 16,442 | ||||||||
Long-lived assets to be disposed of by sale | 496 | — | 496 | — | ||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||
Balance as of December 31, 2011 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||
Impaired loans | $ | 100,035 | $ | — | $ | — | $ | 100,035 | ||||
Other real estate owned | 17,000 | — | — | 17,000 |
Fair Value Measurements at Reporting Date Using | |||||||||||||||
As of June 30, 2012 | Carrying Amount | Estimated Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||
Financial assets: | |||||||||||||||
Cash and cash equivalents | $ | 536,653 | $ | 536,653 | $ | — | $ | 536,653 | $ | — | |||||
Investment securities available-for-sale | 1,913,983 | 1,913,983 | — | 1,913,983 | — | ||||||||||
Investment securities held-to-maturity | 166,926 | 177,532 | — | 177,532 | — | ||||||||||
Accrued interest receivable | 30,936 | 30,936 | — | 30,936 | — | ||||||||||
Mortgage servicing rights, net | 11,985 | 14,180 | — | 14,180 | — | ||||||||||
Net loans | 4,067,169 | 4,055,520 | — | 3,985,627 | 69,893 | ||||||||||
Total financial assets | $ | 6,727,652 | $ | 6,728,804 | $ | — | $ | 6,658,911 | $ | 69,893 | |||||
Financial liabilities: | |||||||||||||||
Total deposits, excluding time deposits | $ | 4,419,969 | 4,419,969 | — | 4,419,969 | — | |||||||||
Time deposits | 1,481,410 | 1,488,737 | — | 1,488,737 | — | ||||||||||
Securities sold under repurchase agreements | 455,993 | 455,993 | — | 455,993 | — | ||||||||||
Other borrowed funds | 7 | 7 | — | 7 | — | ||||||||||
Accrued interest payable | 8,215 | 8,215 | — | 8,215 | — | ||||||||||
Long-term debt | 37,181 | 34,101 | — | 34,101 | — | ||||||||||
Subordinated debentures held by subsidiary trusts | 82,477 | 61,380 | — | 61,380 | — | ||||||||||
Total financial liabilities | $ | 6,485,252 | $ | 6,468,402 | $ | — | $ | 6,468,402 | $ | — |
Fair Value Measurements at Reporting Date Using | |||||||||||||||
As of December 31, 2011 | 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: | |||||||||||||||
Cash and cash equivalents | $ | 472,447 | $ | 472,447 | $ | — | $ | 472,447 | $ | — | |||||
Investment securities available-for-sale | 2,016,864 | 2,016,864 | — | 2,016,864 | — | ||||||||||
Investment securities held-to-maturity | 152,781 | 161,877 | — | 161,877 | — | ||||||||||
Accrued interest receivable | 31,974 | 31,974 | — | 31,974 | — | ||||||||||
Mortgage servicing rights, net | 11,555 | 11,910 | — | 11,910 | — | ||||||||||
Net loans | 4,073,968 | 4,064,718 | — | 3,964,683 | 100,035 | ||||||||||
Total financial assets | $ | 6,759,589 | $ | 6,759,790 | $ | — | $ | 6,659,755 | $ | 100,035 | |||||
Financial liabilities: | |||||||||||||||
Total deposits, excluding time deposits | $ | 4,269,631 | $ | 4,269,631 | $ | — | $ | 4,269,631 | $ | — | |||||
Time deposits | 1,557,340 | 1,565,558 | — | 1,565,558 | — | ||||||||||
Securities sold under repurchase agreements | 516,243 | 516,243 | — | 516,243 | — | ||||||||||
Other borrowed funds | 7 | 7 | — | 7 | — | ||||||||||
Accrued interest payable | 8,123 | 8,123 | — | 8,123 | — | ||||||||||
Long-term debt | 37,200 | 34,341 | — | 34,341 | — | ||||||||||
Subordinated debentures held by subsidiary trusts | 123,715 | 102,525 | — | 102,525 | — | ||||||||||
Derivative contract liability | 383 | 383 | — | — | 383 | ||||||||||
Total financial liabilities | $ | 6,512,642 | $ | 6,496,811 | $ | — | $ | 6,496,428 | $ | 383 |
(15) | Recent Authoritative Accounting Guidance |
(16) | Subsequent Events |
Average Balance Sheets, Yields and Rates | |||||||||||||||||
(Dollars in thousands) | Three Months Ended June 30, | ||||||||||||||||
2012 | 2011 | ||||||||||||||||
Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | ||||||||||||
Interest earning assets: | |||||||||||||||||
Loans (1) (2) | $ | 4,159,565 | $ | 58,564 | 5.66 | % | $ | 4,269,637 | $ | 61,926 | 5.82 | % | |||||
Investment securities (2) | 2,094,148 | 11,414 | 2.19 | 2,019,187 | 12,533 | 2.49 | |||||||||||
Interest bearing deposits in banks | 442,698 | 279 | 0.25 | 359,446 | 227 | 0.25 | |||||||||||
Federal funds sold | 3,668 | 6 | 0.66 | 3,871 | 6 | 0.62 | |||||||||||
Total interest earnings assets | 6,700,079 | 70,263 | 4.22 | 6,652,141 | 74,692 | 4.50 | |||||||||||
Non-earning assets | 633,454 | 617,221 | |||||||||||||||
Total assets | $ | 7,333,533 | $ | 7,269,362 | |||||||||||||
Interest bearing liabilities: | |||||||||||||||||
Demand deposits | $ | 1,596,076 | $ | 606 | 0.15 | % | $ | 1,263,466 | $ | 847 | 0.27 | % | |||||
Savings deposits | 1,482,986 | 934 | 0.25 | 1,711,210 | 1,753 | 0.41 | |||||||||||
Time deposits | 1,496,597 | 4,239 | 1.14 | 1,780,542 | 6,303 | 1.42 | |||||||||||
Repurchase agreements | 493,450 | 152 | 0.12 | 469,459 | 171 | 0.15 | |||||||||||
Other borrowed funds | 33 | — | — | 5,459 | — | — | |||||||||||
Long-term debt | 37,184 | 495 | 5.35 | 37,485 | 495 | 5.30 | |||||||||||
Subordinated debentures held by subsidiary trusts | 120,996 | 1,467 | 4.88 | 123,715 | 1,455 | 4.72 | |||||||||||
Total interest bearing liabilities | 5,227,322 | 7,893 | 0.61 | 5,391,336 | 11,024 | 0.82 | |||||||||||
Non-interest bearing deposits | 1,277,091 | 1,089,909 | |||||||||||||||
Other non-interest bearing liabilities | 47,781 | 47,791 | |||||||||||||||
Stockholders’ equity | 781,339 | 740,326 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 7,333,533 | $ | 7,269,362 | |||||||||||||
Net FTE interest income | $ | 62,370 | $ | 63,668 | |||||||||||||
Less FTE adjustments (2) | (1,196 | ) | (1,141 | ) | |||||||||||||
Net interest income from consolidated statements of income | $ | 61,174 | $ | 62,527 | |||||||||||||
Interest rate spread | 3.61 | % | 3.68 | % | |||||||||||||
Net FTE interest margin (3) | 3.74 | % | 3.84 | % | |||||||||||||
Cost of funds, including non-interest bearing demand deposits (4) | 0.49 | % | 0.68 | % |
(1) | Average loan balances include non-accrual loans. Interest income on loans includes amortization of deferred loan fees net of deferred loan costs, which is not material. |
(2) | Interest income and average rates for tax exempt loans and securities are presented on a FTE basis. |
(3) | Net FTE interest margin during the period equals (i) the difference between annualized interest income on interest earning assets and the annualized interest expense on interest bearing liabilities, divided by (ii) average interest earning assets for the period. |
(4) | Calculated by dividing total annualized interest on interest bearing liabilities by the sum of total interest bearing liabilities plus non-interest bearing deposits. |
Average Balance Sheets, Yields and Rates | |||||||||||||||||
(Dollars in thousands) | Six Months Ended June 30, | ||||||||||||||||
2012 | 2011 | ||||||||||||||||
Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | ||||||||||||
Interest earning assets: | |||||||||||||||||
Loans (1) (2) | $ | 4,162,384 | $ | 116,938 | 5.65 | % | $ | 4,286,512 | $ | 124,762 | 5.87 | % | |||||
Investment securities (2) | 2,118,793 | 23,018 | 2.18 | 1,984,000 | 24,291 | 2.47 | |||||||||||
Interest bearing deposits in banks | 408,799 | 516 | 0.25 | 472,994 | 594 | 0.25 | |||||||||||
Federal funds sold | 2,139 | 7 | 0.66 | 3,061 | 9 | 0.59 | |||||||||||
Total interest earnings assets | 6,692,115 | 140,479 | 4.22 | 6,746,567 | 149,656 | 4.47 | |||||||||||
Non-earning assets | 626,295 | 619,837 | |||||||||||||||
Total assets | $ | 7,318,410 | $ | 7,366,404 | |||||||||||||
Interest bearing liabilities: | |||||||||||||||||
Demand deposits | $ | 1,589,440 | $ | 1,253 | 0.16 | % | $ | 1,256,414 | $ | 1,681 | 0.27 | % | |||||
Savings deposits | 1,466,113 | 1,948 | 0.27 | 1,727,886 | 3,753 | 0.44 | |||||||||||
Time deposits | 1,518,693 | 8,840 | 1.17 | 1,827,269 | 13,340 | 1.47 | |||||||||||
Repurchase agreements | 503,428 | 308 | 0.12 | 519,392 | 408 | 0.16 | |||||||||||
Other borrowed funds | 34 | — | — | 5,577 | — | — | |||||||||||
Long-term debt | 37,189 | 993 | 5.37 | 37,490 | 984 | 5.29 | |||||||||||
Subordinated debentures held by subsidiary trusts | 122,356 | 2,974 | 4.89 | 123,715 | 2,903 | 4.73 | |||||||||||
Total interest bearing liabilities | 5,237,253 | 16,316 | 0.63 | 5,497,743 | 23,069 | 0.85 | |||||||||||
Non-interest bearing deposits | 1,254,983 | 1,080,379 | |||||||||||||||
Other non-interest bearing liabilities | 48,926 | 49,395 | |||||||||||||||
Stockholders’ equity | 777,248 | 738,887 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 7,318,410 | $ | 7,366,404 | |||||||||||||
Net FTE interest income | $ | 124,163 | $ | 126,587 | |||||||||||||
Less FTE adjustments (2) | (2,355 | ) | (2,262 | ) | |||||||||||||
Net interest income from consolidated statements of income | $ | 121,808 | $ | 124,325 | |||||||||||||
Interest rate spread | 3.59 | % | 3.62 | % | |||||||||||||
Net FTE interest margin (3) | 3.73 | % | 3.78 | % | |||||||||||||
Cost of funds, including non-interest bearing demand deposits (4) | 0.51 | % | 0.71 | % |
(1) | Average loan balances include non-accrual loans. Interest income on loans includes amortization of deferred loan fees net of deferred loan costs, which is not material. |
(2) | Interest income and average rates for tax exempt loans and securities are presented on a FTE basis. |
(3) | Net FTE interest margin during the period equals (i) the difference between annualized interest income on interest earning assets and the annualized interest expense on interest bearing liabilities, divided by (ii) average interest earning assets for the period. |
(4) | Calculated by dividing total annualized interest on interest bearing liabilities by the sum of total interest bearing liabilities plus non-interest bearing deposits. |
Analysis of Interest Changes Due to Volume and Rates | |||||||||||||||||||||||
(Dollars in thousands) | Three Months Ended June 30, 2012 compared with Three Months Ended June 30, 2011 | Six Months Ended June 30, 2012 compared with Six Months Ended June 30, 2011 | |||||||||||||||||||||
Volume | Rate | Net | Volume | Rate | Net | ||||||||||||||||||
Interest earning assets: | |||||||||||||||||||||||
Loans (1) | $ | (1,597 | ) | $ | (1,765 | ) | $ | (3,362 | ) | $ | (3,612 | ) | $ | (4,212 | ) | $ | (7,824 | ) | |||||
Investment securities (1) | 465 | (1,584 | ) | (1,119 | ) | 1,650 | (2,923 | ) | (1,273 | ) | |||||||||||||
Interest bearing deposits in banks | 53 | (1 | ) | 52 | (81 | ) | 3 | (78 | ) | ||||||||||||||
Federal funds sold | — | — | — | (3 | ) | 1 | (2 | ) | |||||||||||||||
Total change | (1,079 | ) | (3,350 | ) | (4,429 | ) | (2,046 | ) | (7,131 | ) | (9,177 | ) | |||||||||||
Interest bearing liabilities: | |||||||||||||||||||||||
Demand deposits | 223 | (464 | ) | (241 | ) | 446 | (874 | ) | (428 | ) | |||||||||||||
Savings deposits | (234 | ) | (585 | ) | (819 | ) | (569 | ) | (1,236 | ) | (1,805 | ) | |||||||||||
Time deposits | (1,005 | ) | (1,059 | ) | (2,064 | ) | (2,252 | ) | (2,248 | ) | (4,500 | ) | |||||||||||
Repurchase agreements | 9 | (28 | ) | (19 | ) | (13 | ) | (87 | ) | (100 | ) | ||||||||||||
Long-term debt | (4 | ) | 4 | — | (8 | ) | 17 | 9 | |||||||||||||||
Subordinated debentures | (32 | ) | 44 | 12 | (32 | ) | 103 | 71 | |||||||||||||||
Total change | (1,043 | ) | (2,088 | ) | (3,131 | ) | (2,428 | ) | (4,325 | ) | (6,753 | ) | |||||||||||
Increase (decrease) in FTE net interest income | $ | (36 | ) | $ | (1,262 | ) | $ | (1,298 | ) | $ | 382 | $ | (2,806 | ) | $ | (2,424 | ) |
Nonperforming Assets | |||||||||||||||
(Dollars in thousands) | June 30, 2012 | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | ||||||||||
Non-performing loans: | |||||||||||||||
Non-accrual loans | $ | 129,923 | 180,910 | 199,983 | 223,961 | 229,662 | |||||||||
Accruing loans past due 90 days or more | 6,451 | 5,017 | 4,111 | 3,001 | 2,194 | ||||||||||
Troubled debt restructurings | 35,959 | 36,838 | 37,376 | 35,616 | 31,611 | ||||||||||
Total non-performing loans | 172,333 | 222,765 | 241,470 | 262,578 | 263,467 | ||||||||||
OREO | 53,817 | 44,756 | 37,452 | 25,080 | 28,323 | ||||||||||
Total non-performing assets | $ | 226,150 | 267,521 | 278,922 | 287,658 | 291,790 | |||||||||
Non-performing loans to total loans | 4.13 | % | 5.36 | % | 5.77 | % | 6.14 | % | 6.15 | % | |||||
Non-performing assets to total loans and OREO | 5.35 | % | 6.36 | % | 6.60 | % | 6.69 | % | 6.77 | % | |||||
Non-performing assets to total assets | 3.10 | % | 3.60 | % | 3.81 | % | 3.94 | % | 4.05 | % |
Non-Performing Loans by Loan Type | |||||||||||||
(Dollars in thousands) | June 30, 2012 | Percent of Total | December 31, 2011 | Percent of Total | |||||||||
Real estate: | |||||||||||||
Commercial | $ | 80,489 | 46.8 | % | $ | 86,990 | 36.0 | % | |||||
Construction: | . | ||||||||||||
Land acquisition and development | 38,651 | 22.5 | % | 63,195 | 26.2 | % | |||||||
Commercial | 11,022 | 6.4 | % | 14,023 | 5.8 | % | |||||||
Residential | 3,173 | 1.8 | % | 24,536 | 10.2 | % | |||||||
Total construction | 52,846 | 30.7 | % | 101,754 | 42.2 | % | |||||||
Residential | 13,166 | 7.6 | % | 20,075 | 8.3 | % | |||||||
Agricultural | 5,234 | 3.0 | % | 7,470 | 3.1 | % | |||||||
Total real estate | 151,735 | 88.1 | % | 216,289 | 89.6 | % | |||||||
Consumer | 3,282 | 1.9 | % | 3,455 | 1.4 | % | |||||||
Commercial | 16,448 | 9.5 | % | 20,857 | 8.6 | % | |||||||
Agricultural | 868 | 0.5 | % | 869 | 0.4 | % | |||||||
Total non-performing loans | $ | 172,333 | 100.0 | % | $ | 241,470 | 100.0 | % |
(1) | Specific valuation allowances associated with impaired loans. Specific valuation allowances are determined based on assessment of the fair value of the collateral underlying the loans as determined through independent appraisals, the present value of future cash flows, observable market prices and any relevant qualitative or environmental factors impacting the loan. No specific valuation allowances are recorded for impaired loans that are adequately secured. |
(2) | Historical valuation allowances based on loan loss experience for similar loans with similar characteristics and trends. Historical valuation allowances are determined by applying percentage loss factors to the credit exposures from outstanding loans. For commercial, agricultural and real estate loans, loss factors are applied based on the internal risk classifications of these loans. For consumer loans, loss factors are applied on a portfolio basis. For commercial, agriculture and real estate loans, loss factor percentages are based on a migration analysis of our historical loss experience, designed to account for credit deterioration. For consumer loans, loss factor percentages are based on a one-year loss history. |
Allowance for Loan Losses | |||||||||||||||
(Dollars in thousands) | Three Months Ended | ||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||
2012 | 2012 | 2011 | 2011 | 2011 | |||||||||||
Balance at beginning of period | $ | 115,902 | 112,581 | 120,303 | 124,579 | 124,446 | |||||||||
Provision charged to operating expense | 12,000 | 11,250 | 13,751 | 14,000 | 15,400 | ||||||||||
Charge offs: | |||||||||||||||
Real estate | |||||||||||||||
Commercial | 6,362 | 681 | 2,972 | 4,064 | 5,005 | ||||||||||
Construction | 15,107 | 2,571 | 9,178 | 7,997 | 7,404 | ||||||||||
Residential | 861 | 1,825 | 3,803 | 149 | 748 | ||||||||||
Agricultural | 20 | 79 | 213 | — | — | ||||||||||
Consumer | 1,210 | 1,312 | 1,402 | 1,682 | 1,499 | ||||||||||
Commercial | 3,180 | 2,512 | 4,785 | 6,498 | 1,407 | ||||||||||
Agricultural | 5 | 107 | 82 | 15 | 39 | ||||||||||
Total charge-offs | 26,745 | 9,087 | 22,435 | 20,405 | 16,102 | ||||||||||
Recoveries: | |||||||||||||||
Real estate | |||||||||||||||
Commercial | 483 | 213 | 116 | 41 | 11 | ||||||||||
Construction | 13 | 173 | 227 | 1,272 | 50 | ||||||||||
Residential | 30 | 120 | 52 | 73 | 48 | ||||||||||
Agricultural | — | — | — | — | — | ||||||||||
Consumer | 488 | 521 | 384 | 453 | 470 | ||||||||||
Commercial | 609 | 126 | 183 | 287 | 253 | ||||||||||
Agricultural | 14 | 5 | — | 3 | 3 | ||||||||||
Total recoveries | 1,637 | 1,158 | 962 | 2,129 | 835 | ||||||||||
Net charge-offs | 25,108 | 7,929 | 21,473 | 18,276 | 15,267 | ||||||||||
Balance at end of period | $ | 102,794 | 115,902 | 112,581 | 120,303 | 124,579 | |||||||||
Period end loans | $ | 4,169,963 | 4,158,616 | 4,186,549 | 4,275,717 | 4,281,260 | |||||||||
Average loans | 4,159,565 | 4,165,203 | 4,236,228 | 4,291,632 | 4,269,637 | ||||||||||
Net loans charged-off to average loans, annualized | 2.42 | % | 0.76 | % | 2.01 | % | 1.69 | % | 1.43 | % | |||||
Allowance to period end loans | 2.47 | % | 2.79 | % | 2.69 | % | 2.81 | % | 2.91 | % |
Deposits | |||||||||||||
(Dollars in thousands) | June 30, 2012 | Percent of Total | December 31, 2011 | Percent of Total | |||||||||
Non-interest bearing demand | $ | 1,337,777 | 22.7 | % | $ | 1,271,709 | 21.8 | % | |||||
Interest bearing: | |||||||||||||
Demand | 1,586,962 | 26.9 | 1,306,509 | 22.4 | |||||||||
Savings | 1,495,230 | 25.3 | 1,691,413 | 29.0 | |||||||||
Time, $100 and over | 641,070 | 10.9 | 681,047 | 11.7 | |||||||||
Time, other (1) | 840,340 | 14.2 | 876,293 | 15.1 | |||||||||
Total interest bearing | 4,563,602 | 77.3 | 4,555,262 | 78.2 | |||||||||
Total deposits | $ | 5,901,379 | 100.0 | % | $ | 5,826,971 | 100.0 | % |
(1) | Included in Time, other are Certificate of Deposit Account Registry Service, or CDAR, deposits of $84 million as of June 30, 2012 and $98 million as of December 31, 2011. |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Period | Total Number of Shares Purchased (1) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs | |||||
April 2012 | — | $ | — | — | Not Applicable | ||||
May 2012 | — | — | — | Not Applicable | |||||
June 2012 | 77 | 14.13 | — | Not Applicable | |||||
Total | 77 | $ | 14.13 | — | Not Applicable |
(1) | Represents shares purchased by the Company in satisfaction of minimum required income tax withholding requirements pursuant to the vesting of restricted stock. |
Item 3. | Defaults upon Senior Securities |
Item 4. | Mine Safety Disclosures |
Item 5. | Other Information |
Item 6. | Exhibits |
2.1 | Stock Purchase Agreement dated as of September 18, 2007, by and between First Interstate BancSystem, Inc. and First Western Bancorp, Inc. (incorporated herein by reference to Exhibit 2.1 of the Company’s Current Report on Form 8-K filed on September 19, 2007) | |
2.2 | First Amendment to Stock Purchase Agreement dated as of January 10, 2008, between First Interstate BancSystem, Inc. and Christen Group, Inc. formerly known as First Western Bancorp, Inc. (incorporated herein by reference to Exhibit 10.20 of the Company’s Current Report on Form 8-K filed on January 16, 2008) | |
3.1 | Amended and Restated Articles of Incorporation dated March 5, 2010 (incorporated herein by reference to Exhibit 3.1 of the Company’s Current Report on Form 8-K/A filed on March 10, 2010) | |
3.2 | Second Amended and Restated Bylaws dated January 27, 2011 (incorporated herein by reference to Exhibit 3.1 of the Company’s Current Report on Form 8-K/A filed on February 3, 2011) |
4.1 | Specimen of Series A preferred stock certificate of First Interstate BancSystem, Inc. (incorporated herein by reference to Exhibit 4.2 of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2007) | |
10.1 | Credit Agreement Re: Subordinated Term Note dated as of January 10, 2008, between First Interstate BancSystem, Inc. and First Midwest Bank (incorporated herein by reference to Exhibit 10.24 of the Company’s Current Report on Form 8-K filed on January 16, 2008) | |
10.2 | Lease Agreement between Billings 401 Joint Venture and First Interstate Bank Montana dated September 20, 1985 and addendum thereto (incorporated herein by reference to Exhibit 10.4 of the Company’s Post-Effective Amendment No. 3 to Registration Statement on Form S-1, No. 033-84540, filed on September 29, 1994) | |
10.3† | First Interstate BancSystem’s Deferred Compensation Plan dated December 1, 2006 (incorporated herein by reference to Exhibit 10.9 of the Company’s Pre-Effective Amendment No. 3 to Registration Statement on Form S-1, No. 333-164380, filed on March 23, 2010) |
10.4† | First Amendment to the First Interstate BancSystem’s Deferred Compensation Plan dated October 24, 2008 (incorporated herein by reference to Exhibit 10.10 of the Company’s Pre-Effective Amendment No. 3 to Registration Statement on Form S-1, No. 333-164380, filed on March 23, 2010) | |
10.5† | 2001 Stock Option Plan (incorporated herein by reference to Exhibit 4.12 of the Company’s Registration Statement on Form S-8, No. 333-106495, filed on June 25, 2003) | |
10.6† | Second Amendment to 2001 Stock Option Plan (incorporated herein by reference to Exhibit 10.6 of the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2010) | |
10.7† | First Interstate BancSystem, Inc. 2006 Equity Compensation Plan (incorporated herein by reference to Appendix A of the Company’s 2006 Definitive Proxy Statement of Schedule 14A) | |
10.8† | Amendment to First Interstate BancSystem, Inc. 2006 Equity Compensation Plan (incorporated herein by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed on March 22, 2010) | |
10.9† | Second Amendment to First Interstate BancSystem, Inc. 2006 Equity Compensation Plan (incorporated herein by reference to Exhibit 10.9 of the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2010) | |
10.10 | Trademark License Agreements between Wells Fargo & Company and First Interstate BancSystem, Inc. (incorporated herein by reference to Exhibit 10.11 of the Company’s Registration Statement on Form S-1, No. 333-25633 filed on April 22, 1997) | |
31.1* | Certification of Quarterly Report on Form 10-Q pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 by Chief Executive Officer | |
31.2* | Certification of Quarterly Report on Form 10-Q pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 by Chief Financial Officer | |
32* | Certification of Quarterly Report on Form 10-Q pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
101** | Interactive data file |
† | Management contract or compensatory arrangement. |
* | Filed herewith. |
** | As provided in Rule 406T of Regulation S-T, this information is furnished and not filed for purposes of Sections 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934. |
FIRST INTERSTATE BANCSYSTEM, INC. | |||
Date: August 9, 2012 | /S/ ED GARDING | ||
Ed Garding | |||
President and Chief Executive Officer | |||
Date: August 9, 2012 | /S/ TERRILL R. MOORE | ||
Terrill R. Moore | |||
Executive Vice President and Chief Financial Officer |
1. | I have reviewed this quarterly report on Form 10-Q of First Interstate BancSystem, Inc; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes, as of the end of the period covered by this report based on such evaluation; and |
c. | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions); |
a. | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ ED GARDING |
Ed Garding |
President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of First Interstate BancSystem, Inc; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes, as of the end of the period covered by this report based on such evaluation; and |
c. | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions); |
a. | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ TERRILL R. MOORE |
Terrill R. Moore |
Executive Vice President and Chief Financial Officer |
/s/ ED GARDING |
Ed Garding |
President and Chief Executive Officer |
/s/ TERRILL R. MOORE |
Terrill R. Moore |
Executive Vice President and Chief Financial Officer Chief Financial Officer |
Schedule of Estimated Fair Values of Financial Instruments by Level of Valuation Inputs (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Carrying Amount
|
||
Financial assets: | ||
Cash and cash equivalents | $ 536,653 | $ 472,447 |
Investment securities available-for-sale | 1,913,983 | 2,016,864 |
Investment securities held-to-maturity | 166,926 | 152,781 |
Accrued interest receivable | 30,936 | 31,974 |
Mortgage servicing rights | 11,985 | 11,555 |
Net loans | 4,067,169 | 4,073,968 |
Total financial assets | 6,727,652 | 6,759,589 |
Financial liabilities: | ||
Total deposits, excluding time deposits | 4,419,969 | 4,269,631 |
Time deposits | 1,481,410 | 1,557,340 |
Securities sold under repurchase agreements | 455,993 | 516,243 |
Other borrowed funds | 7 | 7 |
Accrued interest payable | 8,215 | 8,123 |
Long-term debt | 37,181 | 37,200 |
Subordinated debentures held by subsidiary trusts | 82,477 | 123,715 |
Derivative liability contract | 383 | |
Total financial liabilities | 6,485,252 | 6,512,642 |
Estimated Fair Value
|
||
Financial assets: | ||
Cash and cash equivalents | 536,653 | 472,447 |
Investment securities available-for-sale | 1,913,983 | 2,016,864 |
Investment securities held-to-maturity | 177,532 | 161,877 |
Accrued interest receivable | 30,936 | 31,974 |
Mortgage servicing rights | 14,180 | 11,910 |
Net loans | 4,055,520 | 4,064,718 |
Total financial assets | 6,728,804 | 6,759,790 |
Financial liabilities: | ||
Total deposits, excluding time deposits | 4,419,969 | 4,269,631 |
Time deposits | 1,488,737 | 1,565,558 |
Securities sold under repurchase agreements | 455,993 | 516,243 |
Other borrowed funds | 7 | 7 |
Accrued interest payable | 8,215 | 8,123 |
Long-term debt | 34,101 | 34,341 |
Subordinated debentures held by subsidiary trusts | 61,380 | 102,525 |
Derivative liability contract | 383 | |
Total financial liabilities | 6,468,402 | 6,496,811 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Estimated Fair Value
|
||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Investment securities available-for-sale | 0 | 0 |
Investment securities held-to-maturity | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Net loans | 0 | 0 |
Total financial assets | 0 | 0 |
Financial liabilities: | ||
Total deposits, excluding time deposits | 0 | 0 |
Time deposits | 0 | 0 |
Securities sold under repurchase agreements | 0 | 0 |
Other borrowed funds | 0 | 0 |
Accrued interest payable | 0 | 0 |
Long-term debt | 0 | 0 |
Subordinated debentures held by subsidiary trusts | 0 | 0 |
Derivative liability contract | 0 | |
Total financial liabilities | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Estimated Fair Value
|
||
Financial assets: | ||
Cash and cash equivalents | 536,653 | 472,447 |
Investment securities available-for-sale | 1,913,983 | 2,016,864 |
Investment securities held-to-maturity | 177,532 | 161,877 |
Accrued interest receivable | 30,936 | 31,974 |
Mortgage servicing rights | 14,180 | 11,910 |
Net loans | 3,985,627 | 3,964,683 |
Total financial assets | 6,658,911 | 6,659,755 |
Financial liabilities: | ||
Total deposits, excluding time deposits | 4,419,969 | 4,269,631 |
Time deposits | 1,488,737 | 1,565,558 |
Securities sold under repurchase agreements | 455,993 | 516,243 |
Other borrowed funds | 7 | 7 |
Accrued interest payable | 8,215 | 8,123 |
Long-term debt | 34,101 | 34,341 |
Subordinated debentures held by subsidiary trusts | 61,380 | 102,525 |
Derivative liability contract | 0 | |
Total financial liabilities | 6,468,402 | 6,496,428 |
Significant Unobservable Inputs (Level 3) | Estimated Fair Value
|
||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Investment securities available-for-sale | 0 | 0 |
Investment securities held-to-maturity | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Net loans | 69,893 | 100,035 |
Total financial assets | 69,893 | 100,035 |
Financial liabilities: | ||
Total deposits, excluding time deposits | 0 | 0 |
Time deposits | 0 | 0 |
Securities sold under repurchase agreements | 0 | 0 |
Other borrowed funds | 0 | 0 |
Accrued interest payable | 0 | 0 |
Long-term debt | 0 | 0 |
Subordinated debentures held by subsidiary trusts | 0 | 0 |
Derivative liability contract | 383 | |
Total financial liabilities | $ 0 | $ 383 |
Financial Instruments with Off-Balance Sheet Risk (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2012
|
---|---|
Entity Information [Line Items] | |
Credit Extension Commitments | $ 1,063,924 |
Credit Extension Commitments, Beyond One Year | 280,119 |
Standby Letters of Credit
|
|
Entity Information [Line Items] | |
Credit Extension Commitments | 67,071 |
Unused Credit Card Lines
|
|
Entity Information [Line Items] | |
Credit Extension Commitments | $ 296,301 |
Schedule of Actual Capital Amounts and Ratios and Selected Minimum Regulatory Thresholds (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Total risk-based capital: | ||
Actual Amount | $ 778,980 | $ 800,354 |
Actual Ratio | 16.20% | 16.50% |
Adequately Capitalized Amount | 384,573 | 387,082 |
Adequately Capitalized Ratio | 8.00% | 8.00% |
Tier 1 risk-based capital: | ||
Actual Amount | 683,363 | 704,229 |
Actual Ratio | 14.20% | 14.60% |
Adequately Capitalized Amount | 192,286 | 193,541 |
Adequately Capitalized Ratio | 4.00% | 4.00% |
Leverage capital ratio: | ||
Actual Ratio | 9.50% | 9.80% |
Adequately Capitalized Amount | 286,505 | 286,303 |
Adequately Capitalized Ratio | 4.00% | 4.00% |
FIB
|
||
Total risk-based capital: | ||
Actual Amount | 677,619 | 663,860 |
Actual Ratio | 14.20% | 13.80% |
Adequately Capitalized Amount | 382,724 | 384,987 |
Adequately Capitalized Ratio | 8.00% | 8.00% |
Well Capitalized Amount | 478,406 | 481,234 |
Well Capitalized Ratio | 10.00% | 10.00% |
Tier 1 risk-based capital: | ||
Actual Amount | 602,288 | 588,059 |
Actual Ratio | 12.60% | 12.20% |
Adequately Capitalized Amount | 191,362 | 192,494 |
Adequately Capitalized Ratio | 4.00% | 4.00% |
Well Capitalized Amount | 287,043 | 288,740 |
Well Capitalized Ratio | 6.00% | 6.00% |
Leverage capital ratio: | ||
Actual Ratio | 8.40% | 8.20% |
Adequately Capitalized Amount | 285,417 | 285,358 |
Adequately Capitalized Ratio | 4.00% | 4.00% |
Well Capitalized Amount | $ 356,771 | $ 356,698 |
Well Capitalized Ratio | 5.00% | 5.00% |
Amortized Cost and Approximate Fair Values of Investment Securities (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
|
Dec. 31, 2011
|
|
Schedule of Available for Sale and Held-to-Maturity Securities [Line Items] | |||||
Available-for-Sale Securities, Gross Realized Gains | $ 201 | $ 16 | $ 232 | $ 18 | |
Available-for-sale Securities, Gross Realized Losses | 3 | 0 | 3 | 0 | |
Available-for-Sale: | |||||
Available-for-Sale, Amortized Cost | 1,881,809 | 1,881,809 | 1,983,629 | ||
Available-for-Sale, Gross Unrealized Gains | 32,354 | 32,354 | 33,927 | ||
Available-for-Sale, Gross Unrealized Losses | (180) | (180) | (692) | ||
Available-for-Sale, Estimated Fair Value | 1,913,983 | 1,913,983 | 2,016,864 | ||
Held-to-Maturity: | |||||
Held-to-Maturity, Amortized Cost | 166,926 | 166,926 | 152,781 | ||
Held-to-Maturity, Gross Unrealized Gains | 10,703 | 10,703 | 9,113 | ||
Held-to-Maturity, Gross Unrealized Losses | (97) | (97) | (17) | ||
Held-to-Maturity, Estimated Fair Value | 177,532 | 177,532 | 161,877 | ||
Obligations of U.S. government agencies
|
|||||
Available-for-Sale: | |||||
Available-for-Sale, Amortized Cost | 1,024,769 | 1,024,769 | 1,134,427 | ||
Available-for-Sale, Gross Unrealized Gains | 4,259 | 4,259 | 4,353 | ||
Available-for-Sale, Gross Unrealized Losses | (71) | (71) | (662) | ||
Available-for-Sale, Estimated Fair Value | 1,028,957 | 1,028,957 | 1,138,118 | ||
U.S. agency residential mortgage-backed securities & collateralized mortgage obligations
|
|||||
Available-for-Sale: | |||||
Available-for-Sale, Amortized Cost | 856,395 | 856,395 | 848,444 | ||
Available-for-Sale, Gross Unrealized Gains | 28,087 | 28,087 | 29,567 | ||
Available-for-Sale, Gross Unrealized Losses | (106) | (106) | (14) | ||
Available-for-Sale, Estimated Fair Value | 884,376 | 884,376 | 877,997 | ||
Private mortgage-backed securities
|
|||||
Available-for-Sale: | |||||
Available-for-Sale, Amortized Cost | 645 | 645 | 758 | ||
Available-for-Sale, Gross Unrealized Gains | 8 | 8 | 7 | ||
Available-for-Sale, Gross Unrealized Losses | (3) | (3) | (16) | ||
Available-for-Sale, Estimated Fair Value | 650 | 650 | 749 | ||
State, county and municipal securities
|
|||||
Held-to-Maturity: | |||||
Held-to-Maturity, Amortized Cost | 166,790 | 166,790 | 152,619 | ||
Held-to-Maturity, Gross Unrealized Gains | 10,703 | 10,703 | 9,113 | ||
Held-to-Maturity, Gross Unrealized Losses | (97) | (97) | (17) | ||
Held-to-Maturity, Estimated Fair Value | 177,396 | 177,396 | 161,715 | ||
Other securities
|
|||||
Held-to-Maturity: | |||||
Held-to-Maturity, Amortized Cost | 136 | 136 | 162 | ||
Held-to-Maturity, Gross Unrealized Gains | 0 | 0 | 0 | ||
Held-to-Maturity, Gross Unrealized Losses | 0 | 0 | 0 | ||
Held-to-Maturity, Estimated Fair Value | $ 136 | $ 136 | $ 162 |
Investment Securities (Tables)
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Jun. 30, 2012
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost and Approximate Fair Values of Investment Securities | The amortized cost and approximate fair values of investment securities are summarized as follows:
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Gross Unrealized Losses and Fair Values of Investment Securities | The following tables show the gross unrealized losses and fair values of investment securities, aggregated by investment category, and the length of time individual investment securities have been in a continuous unrealized loss position, as of June 30, 2012 and December 31, 2011
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Maturities of Investment Securities | Maturities of investment securities at June 30, 2012 are shown below. Maturities of mortgage-backed securities have been adjusted to reflect shorter maturities based upon estimated prepayments of principal. All other investment securities maturities are shown at contractual maturity dates.
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Schedule of Comprehensive Income (Loss) (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
|
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Change in net unrealized Gain during period: | ||||
Change in net unrealized gain during period, before tax amount | $ (1,864) | $ 21,000 | $ (1,107) | $ 21,419 |
Change in net unrealized gain during period, tax expense (benefit) | (733) | 8,263 | (436) | 8,428 |
Change in net unrealized gain during period, net of tax amount | (1,131) | 12,737 | (671) | 12,991 |
Reclassification adjustment for gains included in net income: | ||||
Reclassification adjustment for gains included in net income, before tax amount | (198) | (16) | (229) | (18) |
Reclassification adjustment for gains included in net income, tax expense (benefit) | (78) | (6) | (90) | (7) |
Reclassification adjustment for gains included in net income, net of tax amount | (120) | (10) | (139) | (11) |
Change in net actuarial loss: | ||||
Change in net actuarial loss, before tax amount | 35 | 35 | 68 | 69 |
Change in net actuarial loss, tax expense (benefit) | 14 | 14 | 27 | 27 |
Change in net actuarial loss, net of tax amount | 21 | 21 | 41 | 42 |
Other comprehensive income (loss): | ||||
Other comprehensive income, before tax | (2,027) | 21,019 | (1,268) | 21,470 |
Total other comprehensive income, tax expense (benefit) | (797) | 8,271 | (499) | 8,448 |
Total other comprehensive income, net of tax amount | $ (1,230) | $ 12,748 | $ (769) | $ 13,022 |
OREO (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2012
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Jun. 30, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
|
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Real Estate Acquired Through Foreclosure [Roll Forward] | ||||
Beginning balance | $ 44,756 | $ 31,995 | $ 37,452 | $ 33,632 |
Additions | 19,139 | 2,883 | 33,117 | 5,763 |
Capitalized improvements | 406 | 0 | 75 | 15 |
Valuation adjustments | (569) | (1,963) | (1,147) | (3,515) |
Dispositions | (9,915) | (4,592) | (15,680) | (7,572) |
Ending balance | $ 53,817 | $ 28,323 | $ 53,817 | $ 28,323 |
Schedule of Recorded Investment in Past Due Loans by Class (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2012
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Jun. 30, 2011
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Jun. 30, 2012
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Jun. 30, 2011
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Dec. 31, 2011
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Loans and Leases Receivable Recorded Investment, Past Due [Line Items] | |||||
Loans held for investment | $ 4,093,815 | $ 4,093,815 | $ 4,133,028 | ||
Mortgage loans held for sale | 76,148 | 76,148 | 53,521 | ||
Total loans | 4,169,963 | 4,281,260 | 4,169,963 | 4,281,260 | 4,186,549 |
Interest Income on Non-Accrual Loans if Accrued | 584 | 769 | 1,272 | 1,487 | |
Commercial real estate
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Loans and Leases Receivable Recorded Investment, Past Due [Line Items] | |||||
30 to 59 Days Past Due | 9,570 | 9,570 | 22,124 | ||
60 to 89 Days Past Due | 4,391 | 4,391 | 7,871 | ||
Greater than 90 Days Past Due | 1,295 | 1,295 | 630 | ||
Total Loans 30 or More Days Past Due | 15,256 | 15,256 | 30,625 | ||
Current Loans | 1,450,257 | 1,450,257 | 1,455,139 | ||
Non-accrual Loans | 51,887 | 51,887 | 67,391 | ||
Loans held for investment | 1,517,400 | 1,517,400 | 1,553,155 | ||
Land acquisition & development construction real estate
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Loans and Leases Receivable Recorded Investment, Past Due [Line Items] | |||||
30 to 59 Days Past Due | 4,064 | 4,064 | 5,251 | ||
60 to 89 Days Past Due | 1,876 | 1,876 | 2,448 | ||
Greater than 90 Days Past Due | 49 | 49 | 867 | ||
Total Loans 30 or More Days Past Due | 5,989 | 5,989 | 8,566 | ||
Current Loans | 198,950 | 198,950 | 208,134 | ||
Non-accrual Loans | 35,611 | 35,611 | 61,913 | ||
Loans held for investment | 240,550 | 240,550 | 278,613 | ||
Residential construction real estate
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Loans and Leases Receivable Recorded Investment, Past Due [Line Items] | |||||
30 to 59 Days Past Due | 411 | 411 | 415 | ||
60 to 89 Days Past Due | 0 | 0 | 0 | ||
Greater than 90 Days Past Due | 0 | 0 | 0 | ||
Total Loans 30 or More Days Past Due | 411 | 411 | 415 | ||
Current Loans | 47,609 | 47,609 | 56,219 | ||
Non-accrual Loans | 3,173 | 3,173 | 4,472 | ||
Loans held for investment | 51,193 | 51,193 | 61,106 | ||
Commercial construction real estate
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Loans and Leases Receivable Recorded Investment, Past Due [Line Items] | |||||
30 to 59 Days Past Due | 0 | 0 | 1,698 | ||
60 to 89 Days Past Due | 0 | 0 | 0 | ||
Greater than 90 Days Past Due | 0 | 0 | 0 | ||
Total Loans 30 or More Days Past Due | 0 | 0 | 1,698 | ||
Current Loans | 48,889 | 48,889 | 34,820 | ||
Non-accrual Loans | 11,022 | 11,022 | 24,536 | ||
Loans held for investment | 59,911 | 59,911 | 61,054 | ||
Total construction loans
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Loans and Leases Receivable Recorded Investment, Past Due [Line Items] | |||||
30 to 59 Days Past Due | 4,475 | 4,475 | 7,364 | ||
60 to 89 Days Past Due | 1,876 | 1,876 | 2,448 | ||
Greater than 90 Days Past Due | 49 | 49 | 867 | ||
Total Loans 30 or More Days Past Due | 6,400 | 6,400 | 10,679 | ||
Current Loans | 295,448 | 295,448 | 299,173 | ||
Non-accrual Loans | 49,806 | 49,806 | 90,921 | ||
Loans held for investment | 351,654 | 351,654 | 400,773 | ||
Residential real estate
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Loans and Leases Receivable Recorded Investment, Past Due [Line Items] | |||||
30 to 59 Days Past Due | 5,234 | 5,234 | 4,669 | ||
60 to 89 Days Past Due | 1,264 | 1,264 | 973 | ||
Greater than 90 Days Past Due | 1,231 | 1,231 | 1,798 | ||
Total Loans 30 or More Days Past Due | 7,729 | 7,729 | 7,440 | ||
Current Loans | 552,998 | 552,998 | 546,278 | ||
Non-accrual Loans | 11,291 | 11,291 | 18,225 | ||
Loans held for investment | 572,018 | 572,018 | 571,943 | ||
Agricultural real estate
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Loans and Leases Receivable Recorded Investment, Past Due [Line Items] | |||||
30 to 59 Days Past Due | 14,072 | 14,072 | 4,103 | ||
60 to 89 Days Past Due | 865 | 865 | 1,831 | ||
Greater than 90 Days Past Due | 0 | 0 | 0 | ||
Total Loans 30 or More Days Past Due | 14,937 | 14,937 | 5,934 | ||
Current Loans | 151,399 | 151,399 | 166,119 | ||
Non-accrual Loans | 4,751 | 4,751 | 3,249 | ||
Loans held for investment | 171,087 | 171,087 | 175,302 | ||
Total real estate loans
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Loans and Leases Receivable Recorded Investment, Past Due [Line Items] | |||||
30 to 59 Days Past Due | 33,351 | 33,351 | 38,260 | ||
60 to 89 Days Past Due | 8,396 | 8,396 | 13,123 | ||
Greater than 90 Days Past Due | 2,575 | 2,575 | 3,295 | ||
Total Loans 30 or More Days Past Due | 44,322 | 44,322 | 54,678 | ||
Current Loans | 2,450,102 | 2,450,102 | 2,466,709 | ||
Non-accrual Loans | 117,735 | 117,735 | 179,786 | ||
Loans held for investment | 2,612,159 | 2,612,159 | 2,701,173 | ||
Indirect consumer
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Loans and Leases Receivable Recorded Investment, Past Due [Line Items] | |||||
30 to 59 Days Past Due | 2,035 | 2,035 | 3,078 | ||
60 to 89 Days Past Due | 200 | 200 | 370 | ||
Greater than 90 Days Past Due | 20 | 20 | 45 | ||
Total Loans 30 or More Days Past Due | 2,255 | 2,255 | 3,493 | ||
Current Loans | 415,878 | 415,878 | 403,695 | ||
Non-accrual Loans | 471 | 471 | 463 | ||
Loans held for investment | 418,604 | 418,604 | 407,651 | ||
Other consumer
|
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Loans and Leases Receivable Recorded Investment, Past Due [Line Items] | |||||
30 to 59 Days Past Due | 1,078 | 1,078 | 1,479 | ||
60 to 89 Days Past Due | 102 | 102 | 436 | ||
Greater than 90 Days Past Due | 135 | 135 | 60 | ||
Total Loans 30 or More Days Past Due | 1,315 | 1,315 | 1,975 | ||
Current Loans | 142,423 | 142,423 | 144,625 | ||
Non-accrual Loans | 704 | 704 | 887 | ||
Loans held for investment | 144,442 | 144,442 | 147,487 | ||
Credit card consumer
|
|||||
Loans and Leases Receivable Recorded Investment, Past Due [Line Items] | |||||
30 to 59 Days Past Due | 428 | 428 | 604 | ||
60 to 89 Days Past Due | 241 | 241 | 375 | ||
Greater than 90 Days Past Due | 686 | 686 | 585 | ||
Total Loans 30 or More Days Past Due | 1,355 | 1,355 | 1,564 | ||
Current Loans | 56,786 | 56,786 | 59,343 | ||
Non-accrual Loans | 25 | 25 | 26 | ||
Loans held for investment | 58,166 | 58,166 | 60,933 | ||
Total consumer loans
|
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Loans and Leases Receivable Recorded Investment, Past Due [Line Items] | |||||
30 to 59 Days Past Due | 3,541 | 3,541 | 5,161 | ||
60 to 89 Days Past Due | 543 | 543 | 1,181 | ||
Greater than 90 Days Past Due | 841 | 841 | 690 | ||
Total Loans 30 or More Days Past Due | 4,925 | 4,925 | 7,032 | ||
Current Loans | 615,087 | 615,087 | 607,663 | ||
Non-accrual Loans | 1,200 | 1,200 | 1,376 | ||
Loans held for investment | 621,212 | 621,212 | 616,071 | ||
Commercial
|
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Loans and Leases Receivable Recorded Investment, Past Due [Line Items] | |||||
30 to 59 Days Past Due | 7,062 | 7,062 | 13,721 | ||
60 to 89 Days Past Due | 1,382 | 1,382 | 3,464 | ||
Greater than 90 Days Past Due | 3,835 | 3,835 | 405 | ||
Total Loans 30 or More Days Past Due | 12,279 | 12,279 | 17,590 | ||
Current Loans | 697,231 | 697,231 | 657,609 | ||
Non-accrual Loans | 10,500 | 10,500 | 18,062 | ||
Loans held for investment | 720,010 | 720,010 | 693,261 | ||
Agricultural
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Loans and Leases Receivable Recorded Investment, Past Due [Line Items] | |||||
30 to 59 Days Past Due | 654 | 654 | 476 | ||
60 to 89 Days Past Due | 144 | 144 | 215 | ||
Greater than 90 Days Past Due | 380 | 380 | 110 | ||
Total Loans 30 or More Days Past Due | 1,178 | 1,178 | 801 | ||
Current Loans | 136,449 | 136,449 | 118,150 | ||
Non-accrual Loans | 488 | 488 | 759 | ||
Loans held for investment | 138,115 | 138,115 | 119,710 | ||
Other, including overdrafts
|
|||||
Loans and Leases Receivable Recorded Investment, Past Due [Line Items] | |||||
30 to 59 Days Past Due | 0 | 0 | 0 | ||
60 to 89 Days Past Due | 0 | 0 | 2 | ||
Greater than 90 Days Past Due | 0 | 0 | 0 | ||
Total Loans 30 or More Days Past Due | 0 | 0 | 2 | ||
Current Loans | 2,319 | 2,319 | 2,811 | ||
Non-accrual Loans | 0 | 0 | 0 | ||
Loans held for investment | 2,319 | 2,319 | 2,813 | ||
Loans held for investment
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Loans and Leases Receivable Recorded Investment, Past Due [Line Items] | |||||
30 to 59 Days Past Due | 44,608 | 44,608 | 57,618 | ||
60 to 89 Days Past Due | 10,465 | 10,465 | 17,985 | ||
Greater than 90 Days Past Due | 7,631 | 7,631 | 4,500 | ||
Total Loans 30 or More Days Past Due | 62,704 | 62,704 | 80,103 | ||
Current Loans | 3,901,188 | 3,901,188 | 3,852,942 | ||
Non-accrual Loans | 129,923 | 129,923 | 199,983 | ||
Loans held for investment | 4,093,815 | 4,093,815 | 4,133,028 | ||
Mortgage loans originated for sale
|
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Loans and Leases Receivable Recorded Investment, Past Due [Line Items] | |||||
30 to 59 Days Past Due | 0 | 0 | 0 | ||
60 to 89 Days Past Due | 0 | 0 | 0 | ||
Greater than 90 Days Past Due | 0 | 0 | 0 | ||
Total Loans 30 or More Days Past Due | 0 | 0 | 0 | ||
Current Loans | 76,148 | 76,148 | 53,521 | ||
Non-accrual Loans | 0 | 0 | 0 | ||
Total loans
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Loans and Leases Receivable Recorded Investment, Past Due [Line Items] | |||||
30 to 59 Days Past Due | 44,608 | 44,608 | 57,618 | ||
60 to 89 Days Past Due | 10,465 | 10,465 | 17,985 | ||
Greater than 90 Days Past Due | 7,631 | 7,631 | 4,500 | ||
Total Loans 30 or More Days Past Due | 62,704 | 62,704 | 80,103 | ||
Current Loans | 3,977,336 | 3,977,336 | 3,906,463 | ||
Non-accrual Loans | 129,923 | 129,923 | 199,983 | ||
Total loans | $ 4,169,963 | $ 4,169,963 | $ 4,186,549 |
Schedule of Financial Assets and Financial Liabilities Measured at Fair Value on a Recurring and Non-Recurring Basis (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2012
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Jun. 30, 2011
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Jun. 30, 2012
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Jun. 30, 2011
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Dec. 31, 2011
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Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
OREO expense, net of income | $ 1,806 | $ 2,042 | $ 2,911 | $ 3,753 | |
Related Allowance | 17,943 | 17,943 | 32,838 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value Measured on a Recurring Basis
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Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Mortgage servicing rights | 0 | 0 | 0 | ||
Derivative liability contract | 0 | ||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value Measured on a Non-recurring Basis
|
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Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 0 | 0 | 0 | ||
Other real estate owned | 0 | 0 | 0 | ||
Long-lived assets to be disposed of by sale | 0 | 0 | |||
Significant Other Observable Inputs (Level 2) | Fair Value Measured on a Recurring Basis
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Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Mortgage servicing rights | 14,180 | 14,180 | 11,910 | ||
Derivative liability contract | 0 | ||||
Significant Other Observable Inputs (Level 2) | Fair Value Measured on a Non-recurring Basis
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Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 0 | 0 | 0 | ||
Other real estate owned | 0 | 0 | 0 | ||
Long-lived assets to be disposed of by sale | 496 | 496 | |||
Significant Unobservable Inputs (Level 3) | Fair Value Measured on a Recurring Basis
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Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Mortgage servicing rights | 0 | 0 | 0 | ||
Derivative liability contract | 383 | ||||
Significant Unobservable Inputs (Level 3) | Fair Value Measured on a Non-recurring Basis
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Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 69,893 | 69,893 | 100,035 | ||
Other real estate owned | 16,442 | 16,442 | 17,000 | ||
Long-lived assets to be disposed of by sale | 0 | 0 | |||
OREO expense, net of income | 1,147 | 3,515 | |||
Related Allowance | (16,848) | (16,848) | (32,838) | ||
Impaired Financing Receivable, Related Allowance, Partial Loan Charge-Offs | (25,188) | (25,188) | (34,205) | ||
Significant Unobservable Inputs (Level 3) | Fair Value Measured on a Non-recurring Basis | Directly Related to Receipt of Updated Appraisals and Adjustments
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Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
OREO expense, net of income | 625 | 291 | |||
Significant Unobservable Inputs (Level 3) | Fair Value Measured on a Non-recurring Basis | Based on Management Estimates of the Current Fair Value of Properties
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Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
OREO expense, net of income | 522 | 3,224 | |||
Estimated Fair Value | Fair Value Measured on a Recurring Basis
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Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Mortgage servicing rights | 14,180 | 14,180 | 11,910 | ||
Derivative liability contract | 383 | ||||
Estimated Fair Value | Fair Value Measured on a Non-recurring Basis
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Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 69,893 | 69,893 | 100,035 | ||
Other real estate owned | 16,442 | 16,442 | 17,000 | ||
Long-lived assets to be disposed of by sale | 496 | 496 | |||
Change During Period | Fair Value Measured on a Non-recurring Basis
|
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Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Long-lived assets to be disposed of by sale | 70 | 70 | |||
Obligations of U.S. government agencies | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value Measured on a Recurring Basis
|
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Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Investment securities available-for-sale | 0 | 0 | 0 | ||
Obligations of U.S. government agencies | Significant Other Observable Inputs (Level 2) | Fair Value Measured on a Recurring Basis
|
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Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Investment securities available-for-sale | 1,028,957 | 1,028,957 | 1,138,118 | ||
Obligations of U.S. government agencies | Significant Unobservable Inputs (Level 3) | Fair Value Measured on a Recurring Basis
|
|||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Investment securities available-for-sale | 0 | 0 | 0 | ||
Obligations of U.S. government agencies | Estimated Fair Value | Fair Value Measured on a Recurring Basis
|
|||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Investment securities available-for-sale | 1,028,957 | 1,028,957 | 1,138,118 | ||
U.S. agency residential mortgage-backed securities & collateralized mortgage obligations | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value Measured on a Recurring Basis
|
|||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Investment securities available-for-sale | 0 | 0 | 0 | ||
U.S. agency residential mortgage-backed securities & collateralized mortgage obligations | Significant Other Observable Inputs (Level 2) | Fair Value Measured on a Recurring Basis
|
|||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Investment securities available-for-sale | 884,376 | 884,376 | 877,997 | ||
U.S. agency residential mortgage-backed securities & collateralized mortgage obligations | Significant Unobservable Inputs (Level 3) | Fair Value Measured on a Recurring Basis
|
|||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Investment securities available-for-sale | 0 | 0 | 0 | ||
U.S. agency residential mortgage-backed securities & collateralized mortgage obligations | Estimated Fair Value | Fair Value Measured on a Recurring Basis
|
|||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Investment securities available-for-sale | 884,376 | 884,376 | 877,997 | ||
Private mortgage-backed securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value Measured on a Recurring Basis
|
|||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Investment securities available-for-sale | 0 | 0 | 0 | ||
Private mortgage-backed securities | Significant Other Observable Inputs (Level 2) | Fair Value Measured on a Recurring Basis
|
|||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Investment securities available-for-sale | 650 | 650 | 749 | ||
Private mortgage-backed securities | Significant Unobservable Inputs (Level 3) | Fair Value Measured on a Recurring Basis
|
|||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Investment securities available-for-sale | 0 | 0 | 0 | ||
Private mortgage-backed securities | Estimated Fair Value | Fair Value Measured on a Recurring Basis
|
|||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Investment securities available-for-sale | 650 | 650 | 749 | ||
Estimated Fair Value
|
|||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Investment securities available-for-sale | 1,913,983 | 1,913,983 | 2,016,864 | ||
Mortgage servicing rights | 14,180 | 14,180 | 11,910 | ||
Derivative liability contract | 383 | ||||
Estimated Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1)
|
|||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Investment securities available-for-sale | 0 | 0 | 0 | ||
Mortgage servicing rights | 0 | 0 | 0 | ||
Derivative liability contract | 0 | ||||
Estimated Fair Value | Significant Other Observable Inputs (Level 2)
|
|||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Investment securities available-for-sale | 1,913,983 | 1,913,983 | 2,016,864 | ||
Mortgage servicing rights | 14,180 | 14,180 | 11,910 | ||
Derivative liability contract | 0 | ||||
Estimated Fair Value | Significant Unobservable Inputs (Level 3)
|
|||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Investment securities available-for-sale | 0 | 0 | 0 | ||
Mortgage servicing rights | 0 | 0 | 0 | ||
Derivative liability contract | 383 | ||||
Estimated Fair Value | Significant Unobservable Inputs (Level 3) | Fair Value Measured on a Non-recurring Basis
|
|||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 69,893 | 69,893 | 100,035 | ||
Carrying Amount
|
|||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Investment securities available-for-sale | 1,913,983 | 1,913,983 | 2,016,864 | ||
Mortgage servicing rights | 11,985 | 11,985 | 11,555 | ||
Derivative liability contract | 383 | ||||
Carrying Amount | Significant Unobservable Inputs (Level 3) | Fair Value Measured on a Non-recurring Basis
|
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Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impaired loans | 111,929 | 111,929 | 167,078 | ||
Long-lived assets to be disposed of by sale | $ 566 | $ 566 | $ 1,513 |
Commitments and Contingencies (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2012
|
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Construction Contracts
|
|
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Commitments to Purchase | $ 2,024 |
Held-to-maturity Securities | Corporate Debt Securities
|
|
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Commitments to Purchase | $ 3,180 |
Basis of Presentation
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6 Months Ended |
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Jun. 30, 2012
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation In the opinion of management, the accompanying unaudited consolidated financial statements of First Interstate BancSystem, Inc. and subsidiaries (the “Company”) contain all adjustments (all of which are of a normal recurring nature) necessary to present fairly the financial position of the Company at June 30, 2012 and December 31, 2011, the results of operations for each of the three and six month periods ended June 30, 2012 and 2011 and cash flows for the six months ended June 30, 2012 and 2011, in conformity with U.S. generally accepted accounting principles. The balance sheet information at December 31, 2011 is derived from audited consolidated financial statements. Certain reclassifications, none of which were material, have been made to conform prior year financial statements to the June 30, 2012 presentation. These reclassifications did not change previously reported net income or stockholders’ equity. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011. Operating results for the three and six months ended June 30, 2012 are not necessarily indicative of the results that may be expected for the year ending December 31, 2012. |