Exhibit 99.1
FOR IMMEDIATE RELEASE
CONTACT
Kristine D. Brenner
Director of Investor Relations
(810) 257-2506
kristine.brenner@citizensbanking.com
Citizens Republic Bancorp Reports Solid Fourth Quarter Earnings
| • | Net income attributable to common shareholders was $12 million, or $0.31 per share for the fourth quarter |
| • | Earnings for the quarter were driven by consistent performance in net interest margin, fee income and expenses as well as a continuing decline in credit costs |
| • | Credit trends improved significantly throughout the year: |
| o | Nonperforming loans dropped below $100 million for the first time since the first quarter of 2007 totaling $87 million or 1.58% of total loans |
| o | Delinquencies of $48 million or 0.86% of total portfolio loans are less than half the amount of last year end |
| • | Targeted lending in C&I and Indirect led to 5% and 6% growth in those portfolios, respectively, compared to the end of last year |
FLINT, MICHIGAN, January 26, 2012 -—Citizens Republic Bancorp, Inc. (Nasdaq: CRBC) announced net income attributable to common shareholders of $12.3 million, or $0.31 per diluted share for the three months ended December 31, 2011, compared to $27.2 million, or $0.68 per diluted share for last quarter. For the year ended December 31, 2011, Citizens recorded a net loss attributable to common shareholders of $16.3 million, or $0.41 per diluted share, compared to a net loss of $314.6 million, or $7.99 per diluted share for the prior year.
“2011 was a pivotal year for Citizens. We successfully executed on our strategies and returned to sustained profitability. We significantly improved the risk profile of the bank by reducing problem assets and improving all of our credit metrics while strengthening our capital levels,” commented Cathleen Nash, president and chief executive officer.
“Our strategic focus for 2012 is to continue to provide top tier client service, prudently rebuild our loan portfolio, mitigate net interest margin pressure, ensure reserve levels reflect our improved risk profile and support loan growth, and continue to report consistent profits,” added Ms. Nash.
Balance Sheet
Total assets at December 31, 2011 were $9.5 billion, a decrease of $137.3 million or 1% from last quarter largely due to planned reductions in adversely classified loans. The modest increase in our C&I portfolio was offset by declines in all other portfolios compared to last quarter.
Total assets decreased $502.8 million compared to last year, as increases in our C&I and Indirect portfolios were more than offset by anticipated decreases in all other loan portfolios.
Core deposits were up $319.5 million or 7% over December 31 of last year and essentially flat from last quarter, reflecting our focus on generating and growing core deposit relationships. Time deposits at December 31, 2011 decreased $119.4 million, or 5% from last quarter and $651.4 million or 23% from December 31 of last year as we continue to strategically reduce high cost single service and brokered time deposits.
1
Other interest-bearing liabilities, which include federal funds purchased and securities sold under agreements to repurchase, other short-term borrowings, and long-term debt, totaled $894.3 million at December 31, 2011, essentially unchanged from the end of last quarter and a decrease of $180.7 million or 17% from December 31 of last year, as the result of retiring maturing long-term debt.
Capital
Citizens continues to grow capital organically through earnings and maintain a strong capital position.
Capital Ratios | December 31, 2011 | September 30, 2011 | December 31, 2010 | |||||||||
Leverage ratio | 8.45 | % | 8.21 | % | 7.71 | % | ||||||
Tier 1 capital ratio | 13.51 | 12.81 | 12.11 | |||||||||
Total capital ratio | 14.84 | 14.14 | 13.51 | |||||||||
Tier 1 common equity (non-GAAP) | 7.24 | 6.77 | 6.62 | |||||||||
Tangible equity to tangible assets (non-GAAP) | 7.59 | 7.36 | 7.09 | |||||||||
Tangible common equity to tangible assets (non-GAAP) | 4.47 | 4.31 | 4.20 | |||||||||
Net Interest Income and Margin
Net interest margin was 3.62% in the fourth quarter of 2011, consistent with last quarter and an increase of 20 basis points from the fourth quarter of last year. For the year ended December 31, 2011, net interest margin was 3.58%, compared with 3.31% for the prior year. These increases were due to declining deposit costs, reductions in high-cost funding, lower levels of non-performing assets, and a planned reduction in excess cash and money market investments, partially offset by lower investment securities yields.
Net interest income was $78.0 million for the fourth quarter of 2011, a decrease of $0.8 million from last quarter largely due to a reduction in average earning assets. Net interest income decreases from the fourth quarter of last year and year over year reflect the reduction in average earning assets which was partially offset by the higher net interest margin.
Credit Quality
Citizens’ credit trends showed continued improvement this quarter and significant improvement compared to last year end. Credit quality continues to benefit from the emphasis we have placed on improving the risk characteristics in our portfolios.
| • | Total delinquencies decreased 51% from December 31 of last year to $47.7 million, and currently represent 0.86% of portfolio loans. |
| • | Nonperforming assets declined to $102.2 million, representing a 25% decrease from the end of last quarter and a decrease of 64% from December 31 of last year. |
| • | Net charge-offs for the fourth quarter decreased to $32.6 million, compared to $33.4 million last quarter and $159.3 million in the fourth quarter of last year. |
| • | The provision for loan losses was $15.0 million in the fourth quarter, compared with $17.5 million last quarter and $131.3 million in the fourth quarter of last year. For 2011, the provision for loan losses was $138.8 million, compared to $392.9 million in 2010, a decrease of $254.1 million or 65%. |
| • | The allowance for loan losses was $172.7 million or 198% of nonperforming portfolio loans at December 31, 2011, compared to $190.4 million or 190% at the end of the prior quarter, and $296.0 million or 138% at the end of the prior year. |
Noninterest Income and Expense
Noninterest income was $24.4 million for the fourth quarter 2011, unchanged from last quarter and the fourth quarter of 2010. For 2011, noninterest income was $95.3 million, up slightly from last year.
Noninterest expense was $66.6 million for the fourth quarter of 2011, an increase of $1.2 million or 2% from last quarter, and a decrease of $10.6 million or 14% from the fourth quarter of last year. For the full year 2011, noninterest expense was $283.2 million, a decrease of $23.9 million or 8% from 2010. The increase compared to last quarter was primarily a result of higher salaries and benefits expense, other real estate expense, state taxes and miscellaneous losses, partially offset by lower advertising and public relations. The decreases compared to last year reflect Citizens’ continued focus on improving efficiencies through better vendor management, as well as reductions in credit costs, salaries expense, and FDIC insurance.
2
The income tax expense for the fourth quarter of 2011 was $2.5 million, compared with a benefit of $12.6 million for the third quarter of 2011 and a tax expense of $3.4 million for the fourth quarter of 2010. For the full year 2011, the income tax benefit was $20.3 million, compared with a tax expense of $12.9 million for 2010. The variances were the result of Citizens recording a receivable due to the revocation of a tax election in the third quarter of 2011 and changes in other comprehensive income that are included in the calculation of the 2011 tax provision.
Conference Call
Citizens’ senior management will review the quarter’s results in a conference call at10:00 a.m. ET on Friday, January 27, 2012.A live audio webcast is available on Citizens’ investor relations page at www.citizensbanking.com or by calling (800) 862-9098 (conference ID: Citizens Republic). To listen to the conference call, please connect approximately 10 minutes prior to the scheduled conference time.
A recording will be available approximately two hours after the completion of the conference call at www.citizensbanking.com, where it will be archived for 90 days.
Use of Non-GAAP Financial Measures
In addition to results presented in accordance with generally accepted accounting principles (“GAAP”), this release includes non-GAAP financial measures such as tangible equity to tangible assets ratio, tangible common equity to tangible assets ratio, Tier 1 common equity ratio, pre-tax pre-provision profit, net interest margin, and the efficiency ratio. Citizens believes these non-GAAP financial measures provide additional information that is useful to investors in understanding the underlying performance of Citizens, its business, and performance trends and such measures help facilitate performance comparisons with others in the banking industry. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied and are not audited. Readers should be aware of these limitations and should be cautious as to their use of such measures. To mitigate these limitations, Citizens has procedures in place to ensure that these measures are calculated using the appropriate GAAP or regulatory components in their entirety to ensure that Citizens’ performance is properly reflected to facilitate consistent period-to-period comparisons. Although Citizens believes the above non-GAAP financial measures disclosed in this release enhance investors’ understanding of its business and performance, these non-GAAP measures should not be considered in isolation, or as a substitute for GAAP basis financial measures. See our related Form 8-K for further discussion regarding these non-GAAP financial measures.
Corporate Profile
Citizens Republic Bancorp, Inc. is a diversified financial services company providing a wide range of commercial, consumer, mortgage banking, trust and financial planning services to a broad client base. Citizens serves communities in Michigan, Ohio, and Wisconsin with 219 offices and 248 ATMs. Citizens is the largest bank holding company headquartered in Michigan with roots dating back to 1871 and is the 57th largest bank holding company headquartered in the United States. More information about Citizens is available at www.citizensbanking.com.
Safe Harbor Statement
Discussions and statements in this release that are not statements of historical fact, including without limitation, statements that include terms such as “will,” “may,” “should,” “believe,” “expect,” “anticipate,” “estimate,” “project,” “intend,” and “plan,” and statements regarding Citizens’ future financial and operating results, plans, objectives, expectations and intentions, are forward-looking statements that involve risks and uncertainties, many of which are beyond Citizens’ control or are subject to change. No forward-looking statement is a guarantee of future performance and actual results could differ materially.
Factors that could cause or contribute to actual results differing materially from Citizens’ expectations include the risks and uncertainties detailed from time to time in Citizens’ annual and quarterly filings with the SEC, which are available at the SEC’s web site www.sec.gov. Other factors not currently anticipated may also materially and adversely affect Citizens’ results of operations, cash flows, financial position and prospects. There can be no assurance that future results will meet expectations. While Citizens believes that the forward-looking statements in this release are reasonable, you should not place undue reliance on any forward-
3
looking statement. In addition, these statements speak only as of the date made. Citizens does not undertake, and expressly disclaims, any obligation to update or alter any statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
Discontinued Operations
As a result of the sale of Citizens’ wholly-owned subsidiary, F&M Bank—Iowa, during the second quarter of 2010, the financial condition and operating results for this subsidiary have been segregated from the financial condition and operating results of Citizens’ continuing operations throughout this release and, as such, are presented as a discontinued operation. While all prior periods have been revised retrospectively to align with this treatment, these changes do not affect Citizens’ reported consolidated financial condition or net income for any of the prior periods.
Reverse Stock Split Adjustment
All prior year shares outstanding and per share calculations have been adjusted to reflect the 1-for-10 reverse stock split that became effective July 1, 2011.
4
| Consolidated Balance Sheets (Unaudited) | ||||||||||||
| Citizens Republic Bancorp, Inc. | ||||||||||||
(in thousands) | December 31, 2011 | September 30, 2011 | December 31, 2010 | |||||||||
| Assets | ||||||||||||
Cash and due from banks | $ | 153,418 | $ | 147,418 | $ | 127,585 | ||||||
Money market investments | 313,632 | 283,018 | 409,079 | |||||||||
Investment Securities: | ||||||||||||
Securities available for sale, at fair value | 1,312,733 | 1,307,977 | 2,049,528 | |||||||||
Securities held to maturity, at amortized cost (fair value of $1,487,550, $1,491,048 and $469,421, respectively) | 1,444,054 | 1,454,873 | 474,832 | |||||||||
|
|
|
|
|
| |||||||
Total investment securities | 2,756,787 | 2,762,850 | 2,524,360 | |||||||||
FHLB and Federal Reserve stock | 117,943 | 123,696 | 143,873 | |||||||||
Portfolio loans: | ||||||||||||
Commercial and industrial | 1,543,529 | 1,531,492 | 1,474,227 | |||||||||
Commercial real estate | 1,544,361 | 1,643,901 | 2,120,735 | |||||||||
|
|
|
|
|
| |||||||
Total commercial | 3,087,890 | 3,175,393 | 3,594,962 | |||||||||
Residential mortgage | 637,245 | 654,561 | 756,245 | |||||||||
Direct consumer | 933,314 | 954,831 | 1,045,530 | |||||||||
Indirect consumer | 871,086 | 887,542 | 819,865 | |||||||||
|
|
|
|
|
| |||||||
Total portfolio loans | 5,529,535 | 5,672,327 | 6,216,602 | |||||||||
Less: Allowance for loan losses | (172,726 | ) | (190,354 | ) | (296,031 | ) | ||||||
|
|
|
|
|
| |||||||
Net portfolio loans | 5,356,809 | 5,481,973 | 5,920,571 | |||||||||
Loans held for sale | 10,402 | 30,221 | 40,347 | |||||||||
Premises and equipment | 97,970 | 98,954 | 104,714 | |||||||||
Goodwill | 318,150 | 318,150 | 318,150 | |||||||||
Other intangible assets | 7,428 | 8,116 | 10,454 | |||||||||
Bank owned life insurance | 220,280 | 219,248 | 217,757 | |||||||||
Other assets | 110,030 | 126,544 | 148,755 | |||||||||
|
|
|
|
|
| |||||||
Total assets | $ | 9,462,849 | $ | 9,600,188 | $ | 9,965,645 | ||||||
|
|
|
|
|
| |||||||
| Liabilities | ||||||||||||
Noninterest-bearing deposits | $ | 1,614,311 | $ | 1,621,451 | $ | 1,325,383 | ||||||
Interest-bearing demand deposits | 951,590 | 945,458 | 947,953 | |||||||||
Savings deposits | 2,627,665 | 2,652,267 | 2,600,750 | |||||||||
|
|
|
|
|
| |||||||
Core deposits | 5,193,566 | 5,219,176 | 4,874,086 | |||||||||
Time deposits | 2,201,375 | 2,320,728 | 2,852,748 | |||||||||
|
|
|
|
|
| |||||||
Total deposits | 7,394,941 | 7,539,904 | 7,726,834 | |||||||||
Federal funds purchased and securities sold under agreements to repurchase | 40,098 | 40,599 | 41,699 | |||||||||
Other short-term borrowings | — | 640 | 620 | |||||||||
Other liabilities | 154,088 | 154,232 | 152,072 | |||||||||
Long-term debt | 854,185 | 855,670 | 1,032,689 | |||||||||
|
|
|
|
|
| |||||||
Total liabilities | 8,443,312 | 8,591,045 | 8,953,914 | |||||||||
| Shareholders' Equity | ||||||||||||
Preferred stock—no par value | 285,114 | 283,360 | 278,300 | |||||||||
Common stock—no par value | 1,434,803 | 1,433,765 | 1,431,829 | |||||||||
Retained deficit | (694,560 | ) | (706,907 | ) | (678,242 | ) | ||||||
Accumulated other comprehensive loss | (5,820 | ) | (1,075 | ) | (20,156 | ) | ||||||
|
|
|
|
|
| |||||||
Total shareholders' equity | 1,019,537 | 1,009,143 | 1,011,731 | |||||||||
|
|
|
|
|
| |||||||
Total liabilities and shareholders' equity | $ | 9,462,849 | $ | 9,600,188 | $ | 9,965,645 | ||||||
|
|
|
|
|
| |||||||
5
Consolidated Statements of Operations (Unaudited)
Citizens Republic Bancorp, Inc.
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
(in thousands, except per share amounts) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Interest Income | ||||||||||||||||
Interest and fees on loans | $ | 77,146 | $ | 91,785 | $ | 312,746 | $ | 390,587 | ||||||||
Interest and dividends on investment securities: | ||||||||||||||||
Taxable | 18,617 | 17,603 | 79,281 | 72,545 | ||||||||||||
Tax-exempt | 2,388 | 3,304 | 10,800 | 16,035 | ||||||||||||
Dividends on FHLB and Federal Reserve stock | 1,009 | 1,013 | 4,152 | 3,776 | ||||||||||||
Money market investments | 170 | 319 | 840 | 1,501 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total interest income | 99,330 | 114,024 | 407,819 | 484,444 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Interest Expense | ||||||||||||||||
Deposits | 12,382 | 19,587 | 57,327 | 98,526 | ||||||||||||
Short-term borrowings | 21 | 19 | 79 | 80 | ||||||||||||
Long-term debt | 8,878 | 12,687 | 37,303 | 56,774 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total interest expense | 21,281 | 32,293 | 94,709 | 155,380 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Interest Income | 78,049 | 81,731 | 313,110 | 329,064 | ||||||||||||
Provision for loan losses | 15,007 | 131,296 | 138,808 | 392,882 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net interest income (loss) after provision for loan losses | 63,042 | (49,565 | ) | 174,302 | (63,818 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Noninterest Income | ||||||||||||||||
Service charges on deposit accounts | 9,724 | 10,072 | 39,268 | 40,336 | ||||||||||||
Trust fees | 3,747 | 4,135 | 15,103 | 15,603 | ||||||||||||
Mortgage and other loan income | 2,705 | 3,109 | 9,620 | 10,486 | ||||||||||||
Brokerage and investment fees | 1,243 | 1,264 | 5,072 | 4,579 | ||||||||||||
ATM network user fees | 1,837 | 1,825 | 7,511 | 7,057 | ||||||||||||
Bankcard fees | 2,468 | 2,325 | 9,656 | 8,859 | ||||||||||||
Net (losses) gains on loans held for sale | (217 | ) | (3,069 | ) | 1,808 | (20,617 | ) | |||||||||
Investment securities gains (losses) | 38 | (171 | ) | (1,336 | ) | 13,896 | ||||||||||
Other income | 2,818 | 4,538 | 8,555 | 14,460 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total noninterest income | 24,363 | 24,028 | 95,257 | 94,659 | ||||||||||||
Noninterest Expense | ||||||||||||||||
Salaries and employee benefits | 30,952 | 32,294 | 123,514 | 126,384 | ||||||||||||
Occupancy | 6,326 | 6,834 | 26,059 | 26,963 | ||||||||||||
Professional services | 2,311 | 2,945 | 9,331 | 10,550 | ||||||||||||
Equipment | 3,326 | 3,355 | 12,136 | 12,482 | ||||||||||||
Data processing services | 3,709 | 4,636 | 16,131 | 18,734 | ||||||||||||
Advertising and public relations | 1,298 | 1,512 | 5,848 | 6,530 | ||||||||||||
Postage and delivery | 1,165 | 1,075 | 4,543 | 4,571 | ||||||||||||
Other loan expenses | 3,497 | 5,431 | 16,007 | 20,311 | ||||||||||||
Losses on other real estate (ORE) | 1,081 | 930 | 12,768 | 13,438 | ||||||||||||
ORE expenses | 995 | 1,653 | 4,322 | 4,970 | ||||||||||||
Intangible asset amortization | 688 | 851 | 3,027 | 3,923 | ||||||||||||
Other expense | 11,292 | 15,718 | 49,464 | 58,231 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total noninterest expense | 66,640 | 77,234 | 283,150 | 307,087 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Income (Loss) from Continuing Operations before Income Taxes | 20,765 | (102,771 | ) | (13,591 | ) | (276,246 | ) | |||||||||
Income tax provision (benefit) from continuing operations | 2,521 | 3,383 | (20,258 | ) | 12,858 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Income (Loss) from Continuing Operations | 18,244 | (106,154 | ) | 6,667 | (289,104 | ) | ||||||||||
Discontinued operations: | ||||||||||||||||
Loss from discontinued operations (net of income tax) | — | — | — | (3,821 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Income (Loss) | 18,244 | (106,154 | ) | 6,667 | (292,925 | ) | ||||||||||
Dividend on redeemable preferred stock | (5,897 | ) | (5,545 | ) | (22,985 | ) | (21,685 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net Income (Loss) Attributable to Common Shareholders | $ | 12,347 | $ | (111,699 | ) | $ | (16,318 | ) | $ | (314,610 | ) | |||||
|
|
|
|
|
|
|
| |||||||||
Income (Loss) Per Share from Continuing Operations: | ||||||||||||||||
Basic | $ | 0.31 | $ | (2.83 | ) | $ | (0.41 | ) | $ | (7.89 | ) | |||||
Diluted | 0.31 | (2.83 | ) | (0.41 | ) | (7.89 | ) | |||||||||
Loss Per Share from Discontinued Operations: | ||||||||||||||||
Basic | $ | — | $ | — | $ | — | $ | (0.10 | ) | |||||||
Diluted | — | — | — | (0.10 | ) | |||||||||||
Net Income (Loss) Per Common Share: | ||||||||||||||||
Basic | $ | 0.31 | $ | (2.83 | ) | $ | (0.41 | ) | $ | (7.99 | ) | |||||
Diluted | 0.31 | (2.83 | ) | (0.41 | ) | (7.99 | ) | |||||||||
Average Common Shares Outstanding: | ||||||||||||||||
Basic | 39,433 | 39,405 | 39,422 | 39,392 | ||||||||||||
Diluted | 39,433 | 39,405 | 39,422 | 39,392 | ||||||||||||
6
Selected Quarterly Information (Unaudited)
Citizens Republic Bancorp and Subsidiaries
| Three Months Ended | ||||||||||||||||||||
(in thousands, except per share amounts) | December 31, 2011 | September 30, 2011 | June 30, 2011 | March 31, 2011 | December 31, 2010 | |||||||||||||||
Summary of Operations | ||||||||||||||||||||
Net interest income | $ | 78,049 | $ | 78,841 | $ | 77,606 | $ | 78,614 | $ | 81,731 | ||||||||||
Provision for loan losses | 15,007 | 17,481 | 17,596 | 88,724 | 131,296 | |||||||||||||||
Noninterest income | 24,363 | 24,427 | 23,325 | 23,143 | 24,028 | |||||||||||||||
Noninterest expense | 66,640 | 65,411 | 69,444 | 81,656 | 77,234 | |||||||||||||||
Income tax provision (benefit) from continuing operations | 2,521 | (12,568 | ) | (10,266 | ) | 55 | 3,383 | |||||||||||||
Net income (loss) | 18,244 | 32,944 | 24,157 | (68,678 | ) | (106,154 | ) | |||||||||||||
Net income (loss) attributable to common shareholders(1) | 12,347 | 27,183 | 18,456 | (74,305 | ) | (111,699 | ) | |||||||||||||
Taxable equivalent adjustment, continuing operations | 1,670 | 1,827 | 1,884 | 2,102 | 2,247 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Per Common Share Data (2) | ||||||||||||||||||||
Net income (loss) from continuing operations: | ||||||||||||||||||||
Basic | $ | 0.31 | $ | 0.68 | $ | 0.46 | $ | (1.89 | ) | $ | (2.83 | ) | ||||||||
Diluted | 0.31 | 0.68 | 0.46 | (1.89 | ) | (2.83 | ) | |||||||||||||
Common book value | 18.24 | 18.03 | 17.34 | 16.73 | 18.47 | |||||||||||||||
Tangible book value (non-GAAP) | 17.24 | 16.96 | 16.22 | 15.53 | 17.20 | |||||||||||||||
Tangible common book value (non-GAAP) | 10.16 | 9.92 | 9.22 | 8.49 | 10.19 | |||||||||||||||
Shares outstanding, end of period(3) | 40,260 | 40,256 | 40,252 | 39,778 | 39,717 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
At Period End | ||||||||||||||||||||
Assets | $ | 9,462,849 | $ | 9,600,188 | $ | 9,495,630 | $ | 9,724,113 | $ | 9,965,645 | ||||||||||
Earning assets | 8,680,995 | 8,824,183 | 8,755,838 | 9,009,704 | 9,302,825 | |||||||||||||||
Portfolio loans | 5,529,535 | 5,672,327 | 5,627,637 | 5,704,198 | 6,216,602 | |||||||||||||||
Allowance for loan losses | 172,726 | 190,354 | 206,292 | 224,117 | 296,031 | |||||||||||||||
Deposits | 7,394,941 | 7,539,904 | 7,444,703 | 7,691,505 | 7,726,834 | |||||||||||||||
Long-term debt | 854,185 | 855,670 | 881,112 | 906,629 | 1,032,689 | |||||||||||||||
Shareholders' equity | 1,019,537 | 1,009,143 | 979,722 | 945,401 | 1,011,731 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Average for the Quarter | ||||||||||||||||||||
Assets | $ | 9,523,184 | $ | 9,596,275 | $ | 9,664,939 | $ | 9,898,921 | $ | 10,468,318 | ||||||||||
Earning assets | 8,761,435 | 8,856,072 | 8,942,348 | 9,231,042 | 9,768,828 | |||||||||||||||
Portfolio loans | 5,632,432 | 5,663,058 | 5,668,752 | 6,051,407 | 6,682,474 | |||||||||||||||
Allowance for loan losses | 190,163 | 206,119 | 223,922 | 295,232 | 323,742 | |||||||||||||||
Deposits | 7,452,137 | 7,546,615 | 7,605,707 | 7,729,960 | 7,964,849 | |||||||||||||||
Long-term debt | 856,206 | 862,479 | 905,902 | 971,076 | 1,159,760 | |||||||||||||||
Shareholders' equity | 1,017,082 | 991,602 | 963,932 | 1,002,290 | 1,145,198 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Financial Ratios (annualized)(4) | ||||||||||||||||||||
Return on average assets | 0.76 | % | 1.36 | % | 1.00 | % | (2.81 | )% | (4.02 | )% | ||||||||||
Return on average shareholders' equity | 7.12 | 13.18 | 10.05 | (27.79 | ) | (36.78 | ) | |||||||||||||
Average shareholders' equity / average assets | 10.68 | 10.33 | 9.97 | 10.13 | 10.94 | |||||||||||||||
Net interest margin (FTE)(5) | 3.62 | 3.63 | 3.56 | 3.53 | 3.42 | |||||||||||||||
Efficiency ratio (non-GAAP) | 61.39 | 59.89 | 63.85 | 67.09 | 68.22 | |||||||||||||||
Allowance for loan losses as a percent of portfolio loans | 3.12 | 3.36 | 3.67 | 3.93 | 4.76 | |||||||||||||||
Allowance for loan losses as a percent of nonperforming loans(6) | 197.56 | 190.09 | 185.90 | 182.72 | 138.41 | |||||||||||||||
Allowance for loan losses as a percent of nonperforming assets(6) | 168.97 | 139.01 | 147.99 | 127.82 | 105.66 | |||||||||||||||
Nonperforming loans as a percent of portfolio loans(6) | 1.58 | 1.77 | 1.97 | 2.15 | 3.44 | |||||||||||||||
Nonperforming assets as a percent of portfolio loans plus ORAA(6)(7) | 1.84 | 2.39 | 2.46 | 3.04 | 4.45 | |||||||||||||||
Nonperforming assets as a percent of total assets(6) | 1.08 | 1.43 | 1.47 | 1.80 | 2.81 | |||||||||||||||
Ratio of net charge-offs during period to average portfolio loans | 2.30 | 2.34 | 2.51 | 10.77 | 9.46 | |||||||||||||||
Leverage ratio | 8.45 | 8.21 | 7.83 | 7.39 | 7.71 | |||||||||||||||
Tier 1 capital ratio | 13.51 | 12.81 | 12.43 | 11.90 | 12.11 | |||||||||||||||
Total capital ratio | 14.84 | 14.14 | 13.77 | 13.24 | 13.51 | |||||||||||||||
| (1) | Net income (loss) attributable to common shareholders includes a non-cash dividend to preferred shareholders of $5.9 million, $5.8 million, $5.7 million and $5.6 million in the fourth, third, second and first quarters of 2011 and $5.5 million in the fourth quarter of 2010. |
| (2) | Per common share data, as well as number of shares, were adjusted to reflect the 1 for 10 reverse stock split effective 7/1/11. |
| (3) | Includes participating shares which are restricted stock units and restricted shares. |
| (4) | Financial ratios are based upon continuing operations. |
| (5) | Net interest margin is presented on an annual basis, includes taxable equivalent adjustments to interest income and is based on a tax rate of 35%. |
| (6) | Nonperforming loans/assets now exclude troubled debt restructurings (TDRs) that are on an accrual status and performing in accordance with their modified terms. |
| (7) | Other real estate assets acquired ("ORAA") include loans held for sale. |
7
Loan Portfolios
(in thousands) | December 31, 2011 | September 30, 2011 | June 30, 2011 | March 31, 2011 | December 31, 2010 | |||||||||||||||
Land hold | $ | 6,542 | $ | 6,818 | $ | 7,426 | $ | 17,273 | $ | 28,259 | ||||||||||
Land development | 13,104 | 22,232 | 22,507 | 22,744 | 34,800 | |||||||||||||||
Construction | 5,847 | 5,410 | 8,111 | 23,297 | 103,687 | |||||||||||||||
Income producing | 913,755 | 975,262 | 1,019,551 | 1,038,674 | 1,170,982 | |||||||||||||||
Owner-occupied | 605,113 | 634,179 | 664,647 | 692,296 | 783,007 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total commercial real estate | 1,544,361 | 1,643,901 | 1,722,242 | 1,794,284 | 2,120,735 | |||||||||||||||
Commercial and industrial | 1,543,529 | 1,531,492 | 1,349,803 | 1,353,167 | 1,474,227 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total commercial | 3,087,890 | 3,175,393 | 3,072,045 | 3,147,451 | 3,594,962 | |||||||||||||||
Residential mortgage | 637,245 | 654,561 | 708,164 | 727,304 | 756,245 | |||||||||||||||
Direct consumer | 933,314 | 954,831 | 978,319 | 1,006,424 | 1,045,530 | |||||||||||||||
Indirect consumer | 871,086 | 887,542 | 869,109 | 823,019 | 819,865 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total consumer | 2,441,645 | 2,496,934 | 2,555,592 | 2,556,747 | 2,621,640 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total portfolio loans | $ | 5,529,535 | $ | 5,672,327 | $ | 5,627,637 | $ | 5,704,198 | $ | 6,216,602 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Delinquency Rates By Loan Portfolio
| December 31, 2011 | September 30, 2011 | June 30, 2011 | March 31, 2011 | December 31, 2010 | ||||||||||||||||||||||||||||||||||||
30 to 89 days past due (in thousands) | $ | % of Portfolio | $ | % of Portfolio | $ | % of Portfolio | $ | % of Portfolio | $ | % of Portfolio | ||||||||||||||||||||||||||||||
Land hold | $ | 21 | 0.3 | % | $ | — | — | % | $ | 571 | 7.69 | % | $ | 509 | 2.95 | % | $ | 2,233 | 7.90 | % | ||||||||||||||||||||
Land development | — | — | 216 | 0.97 | — | — | — | — | 216 | 0.62 | ||||||||||||||||||||||||||||||
Construction | — | — | — | — | 1,722 | 21.23 | — | — | 464 | 0.45 | ||||||||||||||||||||||||||||||
Income producing | 2,508 | 0.27 | 3,325 | 0.34 | 1,597 | 0.16 | 4,817 | 0.46 | 20,643 | 1.76 | ||||||||||||||||||||||||||||||
Owner-occupied | 2,345 | 0.39 | 5,817 | 0.92 | 6,524 | 0.98 | 1,981 | 0.29 | 14,705 | 1.88 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total commercial real estate | 4,874 | 0.32 | 9,358 | 0.57 | 10,414 | 0.60 | 7,307 | 0.41 | 38,261 | 1.80 | ||||||||||||||||||||||||||||||
Commercial and industrial | 2,454 | 0.16 | 2,594 | 0.17 | 3,637 | 0.27 | 6,177 | 0.46 | 9,058 | 0.61 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total commercial | 7,328 | 0.24 | 11,952 | 0.38 | 14,051 | 0.46 | 13,484 | 0.43 | 47,319 | 1.32 | ||||||||||||||||||||||||||||||
Residential mortgage | 9,544 | 1.50 | 9,079 | 1.39 | 11,564 | 1.63 | 10,279 | 1.41 | 15,389 | 2.03 | ||||||||||||||||||||||||||||||
Direct consumer | 17,810 | 1.91 | 18,629 | 1.95 | 20,393 | 2.08 | 17,210 | 1.71 | 22,379 | 2.14 | ||||||||||||||||||||||||||||||
Indirect consumer | 13,067 | 1.50 | 9,898 | 1.12 | 10,681 | 1.23 | 10,187 | 1.24 | 13,287 | 1.62 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total consumer | 40,421 | 1.66 | 37,606 | 1.51 | 42,638 | 1.67 | 37,676 | 1.47 | 51,055 | 1.95 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total delinquent loans | $ | 47,749 | 0.86 | $ | 49,558 | 0.87 | $ | 56,689 | 1.01 | $ | 51,160 | 0.90 | $ | 98,374 | 1.58 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
8
Nonperforming Assets
| December 31, 2011 | September 30, 2011 | June 30, 2011 | March 31, 2011 | December 31, 2010 | ||||||||||||||||||||||||||||||||||||
(in thousands) | $ | % of Portfolio | $ | % of Portfolio | $ | % of Portfolio | $ | % of Portfolio | $ | % of Portfolio | ||||||||||||||||||||||||||||||
Land hold | $ | — | — | % | $ | 167 | 2.45 | % | $ | 167 | 2.25 | % | $ | 1,154 | 6.68 | % | $ | 3,250 | 11.50 | % | ||||||||||||||||||||
Land development | 213 | 1.62 | 12 | 0.05 | 379 | 1.68 | 78 | 0.35 | 3,070 | 8.82 | ||||||||||||||||||||||||||||||
Construction | 150 | 2.57 | 257 | 4.76 | 559 | 6.89 | 395 | 1.70 | 7,472 | 7.21 | ||||||||||||||||||||||||||||||
Income producing | 21,171 | 2.32 | 23,227 | 2.38 | 20,180 | 1.98 | 28,250 | 2.72 | 62,021 | 5.30 | ||||||||||||||||||||||||||||||
Owner-occupied | 23,798 | 3.93 | 27,540 | 4.34 | 21,169 | 3.18 | 21,738 | 3.14 | 42,826 | 5.47 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total commercial real estate | 45,332 | 2.94 | 51,203 | 3.11 | 42,454 | 2.47 | 51,615 | 2.88 | 118,639 | 5.59 | ||||||||||||||||||||||||||||||
Commercial and industrial | 16,946 | 1.10 | 18,536 | 1.21 | 20,995 | 1.56 | 25,785 | 1.91 | 57,752 | 3.92 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total nonaccruing commercial | 62,278 | 2.02 | 69,739 | 2.20 | 63,449 | 2.07 | 77,400 | 2.46 | 176,391 | 4.91 | ||||||||||||||||||||||||||||||
Residential mortgage | 11,312 | 1.78 | 13,074 | 2.00 | 30,693 | 4.33 | 30,385 | 4.18 | 22,076 | 2.92 | ||||||||||||||||||||||||||||||
Direct consumer | 12,115 | 1.30 | 14,704 | 1.54 | 13,944 | 1.43 | 13,043 | 1.30 | 12,562 | 1.20 | ||||||||||||||||||||||||||||||
Indirect consumer | 953 | 0.11 | 1,256 | 0.14 | 1,281 | 0.15 | 1,169 | 0.14 | 1,279 | 0.16 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total nonaccruing consumer | 24,380 | 1.00 | 29,034 | 1.16 | 45,918 | 1.80 | 44,597 | 1.74 | 35,917 | 1.37 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total nonaccruing loans | 86,658 | 1.57 | 98,773 | 1.74 | 109,367 | 1.94 | 121,997 | 2.14 | 212,308 | 3.42 | ||||||||||||||||||||||||||||||
Loans 90+ days still accruing | 770 | 0.01 | 1,368 | 0.02 | 1,604 | 0.03 | 660 | 0.01 | 1,573 | 0.03 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total nonperforming portfolio loans | 87,428 | 1.58 | 100,141 | 1.77 | 110,971 | 1.97 | 122,657 | 2.15 | 213,881 | 3.44 | ||||||||||||||||||||||||||||||
Nonperforming held for sale | 2,372 | 20,134 | 11,395 | 30,359 | 24,073 | |||||||||||||||||||||||||||||||||||
Other repossessed assets acquired | 12,422 | 16,665 | 17,032 | 22,227 | 42,216 | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total nonperforming assets | $ | 102,222 | $ | 136,940 | $ | 139,398 | $ | 175,243 | $ | 280,170 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Restructured loans still accruing | $ | 32,347 | $ | 12,206 | $ | 12,682 | $ | 12,714 | $ | 6,392 | ||||||||||||||||||||||||||||||
Commercial inflows | $ | 13,269 | $ | 23,901 | $ | 24,370 | $ | 29,486 | $ | 110,877 | ||||||||||||||||||||||||||||||
Commercial outflows | (20,730 | ) | (17,611 | ) | (38,321 | ) | (128,477 | ) | (255,986 | ) | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Net change | $ | (7,461 | ) | $ | 6,290 | $ | (13,951 | ) | $ | (98,991 | ) | $ | (145,109 | ) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Net Charge-Offs
| Three Months Ended | ||||||||||||||||||||||||||||||||||||||||
| December 31, 2011 | September 30, 2011 | June 30, 2011 | March 31, 2011 | December 31, 2010 | ||||||||||||||||||||||||||||||||||||
(in thousands) | $ | % of Portfolio* | $ | % of Portfolio* | $ | % of Portfolio* | $ | % of Portfolio* | $ | % of Portfolio* | ||||||||||||||||||||||||||||||
Land hold | $ | (33 | ) | (2.00 | )% | $ | — | — | % | $ | 4,719 | N/M | % | $ | 4,942 | N/M | % | $ | 5,238 | 73.54 | % | |||||||||||||||||||
Land development | 3,079 | 93.21 | 43 | 0.76 | 38 | 0.68 | 4,439 | 79.15 | 19,652 | N/M | ||||||||||||||||||||||||||||||
Construction | (4 | ) | (0.24 | ) | (5 | ) | (0.34 | ) | (1 | ) | (0.04 | ) | 5,578 | 97.09 | 10,046 | 38.44 | ||||||||||||||||||||||||
Income producing | 11,924 | 5.18 | 3,156 | 1.28 | 8,228 | 3.24 | 77,589 | 30.30 | 64,159 | 21.74 | ||||||||||||||||||||||||||||||
Owner-occupied | 5,791 | 3.80 | 2,129 | 1.33 | 3,149 | 1.90 | 25,260 | 14.80 | 18,078 | 9.16 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total commercial real estate | 20,757 | 5.33 | 5,323 | 1.28 | 16,133 | 3.76 | 117,808 | 26.63 | 117,173 | 21.92 | ||||||||||||||||||||||||||||||
Commercial and industrial | 1,032 | 0.27 | 1,225 | 0.32 | 7,176 | 2.13 | 32,013 | 9.59 | 26,055 | 7.01 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total commercial | 21,789 | 2.80 | 6,548 | 0.82 | 23,309 | 3.04 | 149,821 | 19.30 | 143,228 | 15.81 | ||||||||||||||||||||||||||||||
Residential mortgage | 1,170 | 0.73 | 18,364 | 11.13 | 4,431 | 2.51 | 3,400 | 1.90 | 6,099 | 3.20 | ||||||||||||||||||||||||||||||
Direct consumer | 6,930 | 2.95 | 5,710 | 2.37 | 5,605 | 2.30 | 5,496 | 2.21 | 7,114 | 2.70 | ||||||||||||||||||||||||||||||
Indirect consumer | 2,746 | 1.25 | 2,797 | 1.25 | 2,076 | 0.96 | 1,921 | 0.95 | 2,870 | 1.39 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total consumer | 10,846 | 1.76 | 26,871 | 4.27 | 12,112 | 1.90 | 10,817 | 1.72 | 16,083 | 2.43 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total net charge-offs | $ | 32,635 | 2.30 | $ | 33,419 | 2.34 | $ | 35,421 | 2.51 | $ | 160,638 | 10.77 | $ | 159,311 | 9.46 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
* Represents an annualized rate.
| N/M | - Not Meaningful |
9
Summary of Loan Loss Experience
| Three Months Ended | ||||||||||||||||||||
(in thousands) | December 31, 2011 | September 30, 2011 | June 30, 2011 | March 31, 2011 | December 31, 2010 | |||||||||||||||
Allowance for loan losses—beginning of period | $ | 190,354 | $ | 206,292 | $ | 224,117 | $ | 296,031 | $ | 324,046 | ||||||||||
Provision for loan losses | 15,007 | 17,481 | 17,596 | 88,724 | 131,296 | |||||||||||||||
Charge-offs: | ||||||||||||||||||||
Commercial and industrial | 1,490 | 994 | 4,016 | 29,712 | 24,634 | |||||||||||||||
Small business | 399 | 1,132 | 3,853 | 4,078 | 2,747 | |||||||||||||||
Commercial real estate | 21,581 | 5,860 | 16,371 | 118,721 | 119,986 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total commercial | 23,470 | 7,986 | 24,240 | 152,511 | 147,367 | |||||||||||||||
Residential mortgage | 1,366 | 18,369 | 4,659 | 3,403 | 6,141 | |||||||||||||||
Direct consumer | 7,544 | 6,398 | 6,522 | 6,468 | 7,701 | |||||||||||||||
Indirect consumer | 3,229 | 3,430 | 2,639 | 2,472 | 3,647 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total charge-offs | 35,609 | 36,183 | 38,060 | 164,854 | 164,856 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Recoveries: | ||||||||||||||||||||
Commercial and industrial | 609 | 721 | 524 | 1,603 | 1,017 | |||||||||||||||
Small business | 248 | 180 | 169 | 174 | 309 | |||||||||||||||
Commercial real estate | 824 | 537 | 238 | 913 | 2,813 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total commercial | 1,681 | 1,438 | 931 | 2,690 | 4,139 | |||||||||||||||
Residential mortgage | 197 | 5 | 228 | 3 | 42 | |||||||||||||||
Direct consumer | 613 | 688 | 917 | 972 | 587 | |||||||||||||||
Indirect consumer | 483 | 633 | 563 | 551 | 777 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total recoveries | 2,974 | 2,764 | 2,639 | 4,216 | 5,545 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net charge-offs | 32,635 | 33,419 | 35,421 | 160,638 | 159,311 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Allowance for loan losses—end of period | $ | 172,726 | $ | 190,354 | $ | 206,292 | $ | 224,117 | $ | 296,031 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
10
Non-GAAP Reconciliation
(in thousands) | December 31, 2011 | September 30, 2011 | June 30, 2011 | March 31, 2011 | December 31, 2010 | |||||||||||||||
Efficiency Ratio (non-GAAP) | ||||||||||||||||||||
Net interest income (A) | $ | 78,049 | $ | 78,841 | $ | 77,606 | $ | 78,614 | $ | 81,731 | ||||||||||
Taxable equivalent adjustment (B) | 1,670 | 1,827 | 1,884 | 2,102 | 2,247 | |||||||||||||||
Investment securities gain (losses) (C) | 38 | 3 | (993 | ) | (383 | ) | (171 | ) | ||||||||||||
Noninterest income (D) | 24,363 | 24,427 | 23,325 | 23,143 | 24,028 | |||||||||||||||
Noninterest expense (E) | 66,640 | 65,411 | 69,444 | 81,656 | 77,234 | |||||||||||||||
Losses on ORE and ORE Expenses (F) | 2,076 | 1,739 | 2,384 | 10,890 | 2,583 | |||||||||||||||
Intangible amortization (G) | 688 | 732 | 778 | 828 | 851 | |||||||||||||||
Efficiency ratio: (E-F-G)/(A+B-C+D) (non-GAAP) | 61.39 | % | 59.89 | % | 63.85 | % | 67.09 | % | 68.22 | % | ||||||||||
Tangible Common Equity to Tangible Assets (non-GAAP) | ||||||||||||||||||||
Total assets | $ | 9,462,849 | $ | 9,600,188 | $ | 9,495,630 | $ | 9,724,113 | $ | 9,965,645 | ||||||||||
Goodwill | (318,150 | ) | (318,150 | ) | (318,150 | ) | (318,150 | ) | (318,150 | ) | ||||||||||
Other intangible assets | (7,428 | ) | (8,116 | ) | (8,848 | ) | (9,626 | ) | (10,454 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Tangible assets (non-GAAP) | $ | 9,137,271 | $ | 9,273,922 | $ | 9,168,632 | $ | 9,396,337 | $ | 9,637,041 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total shareholders' equity | $ | 1,019,537 | $ | 1,009,143 | $ | 979,722 | $ | 945,401 | $ | 1,011,731 | ||||||||||
Goodwill | (318,150 | ) | (318,150 | ) | (318,150 | ) | (318,150 | ) | (318,150 | ) | ||||||||||
Other intangible assets | (7,428 | ) | (8,116 | ) | (8,848 | ) | (9,626 | ) | (10,454 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Tangible equity (non-GAAP) | $ | 693,959 | $ | 682,877 | $ | 652,724 | $ | 617,625 | $ | 683,127 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Tangible equity | $ | 693,959 | $ | 682,877 | $ | 652,724 | $ | 617,625 | $ | 683,127 | ||||||||||
Preferred stock | (285,114 | ) | (283,360 | ) | (281,642 | ) | (279,955 | ) | (278,300 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Tangible common equity (non-GAAP) | $ | 408,845 | $ | 399,517 | $ | 371,082 | $ | 337,670 | $ | 404,827 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Tier 1 Common Equity (non-GAAP) | ||||||||||||||||||||
Total shareholders' equity | $ | 1,019,537 | $ | 1,009,143 | $ | 979,722 | $ | 945,401 | $ | 1,011,731 | ||||||||||
Qualifying capital securities | 73,667 | 73,667 | 73,667 | 73,667 | 73,667 | |||||||||||||||
Goodwill | (318,150 | ) | (318,150 | ) | (318,150 | ) | (318,150 | ) | (318,150 | ) | ||||||||||
Accumulated other comprehensive loss | 5,820 | 1,075 | 923 | 14,278 | 20,156 | |||||||||||||||
Other intangible assets | (7,428 | ) | (8,116 | ) | (8,848 | ) | (9,626 | ) | (10,454 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Tier 1 capital (regulatory) | $ | 773,446 | $ | 757,619 | $ | 727,314 | $ | 705,570 | $ | 776,950 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Tier 1 capital (regulatory) | $ | 773,446 | $ | 757,619 | $ | 727,314 | $ | 705,570 | $ | 776,950 | ||||||||||
Qualifying capital securities | (73,667 | ) | (73,667 | ) | (73,667 | ) | (73,667 | ) | (73,667 | ) | ||||||||||
Preferred stock | (285,114 | ) | (283,360 | ) | (281,642 | ) | (279,955 | ) | (278,300 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Tier 1 common equity (non-GAAP) | $ | 414,665 | $ | 400,592 | $ | 372,005 | $ | 351,948 | $ | 424,983 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net risk-weighted assets (regulatory) | $ | 5,723,333 | $ | 5,912,527 | $ | 5,850,177 | $ | 5,929,802 | $ | 6,416,792 | ||||||||||
Equity to assets | 10.77 | % | 10.51 | % | 10.32 | % | 9.72 | % | 10.15 | % | ||||||||||
Tier 1 common equity (non-GAAP) | 7.24 | 6.77 | 6.36 | 5.93 | 6.62 | |||||||||||||||
Tangible equity to tangible assets (non-GAAP) | 7.59 | 7.36 | 7.12 | 6.57 | 7.09 | |||||||||||||||
Tangible common equity to tangible assets (non-GAAP) | 4.47 | 4.31 | 4.05 | 3.59 | 4.20 | |||||||||||||||
11
| Pre-tax pre-provision profit (non-GAAP) | Three Months Ended | |||||||||||||||||||
(in thousands) | December 31, 2011 | September 30, 2011 | June 30, 2011 | March 31, 2011 | December 31, 2010 | |||||||||||||||
Income (loss) from continuing operations | $ | 18,244 | $ | 32,944 | $ | 24,157 | $ | (68,678 | ) | $ | (106,154 | ) | ||||||||
Income tax provision (benefit) from continuing operations | 2,521 | (12,568 | ) | (10,266 | ) | 55 | 3,383 | |||||||||||||
Provision for loan losses | 15,007 | 17,481 | 17,596 | 88,724 | 131,296 | |||||||||||||||
Net losses (gains) on loans held for sale | 217 | (1,952 | ) | (1,179 | ) | 1,106 | 3,069 | |||||||||||||
Investment securities (gains) losses | (38 | ) | (3 | ) | 993 | 383 | 171 | |||||||||||||
Losses on other real estate (ORE) | 1,081 | 1,210 | 1,355 | 9,122 | 930 | |||||||||||||||
Fair-value adjustment on bank owned life insurance(1) | (100 | ) | 385 | 48 | (100 | ) | (105 | ) | ||||||||||||
Fair-value adjustment on swaps(1) | (46 | ) | 268 | 77 | 114 | (535 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Pre-tax pre-provision profit (non-GAAP) | $ | 36,886 | $ | 37,765 | $ | 32,781 | $ | 30,726 | $ | 32,055 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
| (1) | Fair-value adjustment amounts contained in line item “Other income” on Consolidated Statements of Operations |
| Noninterest Income and Noninterest Expense | Three Months Ended | |||||||||||||||||||
(in thousands) | December 31, 2011 | September 30, 2011 | June 30, 2011 | March 31, 2011 | December 31, 2010 | |||||||||||||||
Service charges on deposit accounts | $ | 9,724 | $ | 10,362 | $ | 9,753 | $ | 9,429 | $ | 10,072 | ||||||||||
Trust fees | 3,747 | 3,622 | 3,811 | 3,923 | 4,135 | |||||||||||||||
Mortgage and other loan income | 2,705 | 2,089 | 1,883 | 2,942 | 3,109 | |||||||||||||||
Brokerage and investment fees | 1,243 | 1,188 | 1,533 | 1,108 | 1,264 | |||||||||||||||
ATM network user fees | 1,837 | 1,993 | 1,926 | 1,755 | 1,825 | |||||||||||||||
Bankcard fees | 2,468 | 2,482 | 2,468 | 2,238 | 2,325 | |||||||||||||||
Net (losses) gains on loans held for sale | (217 | ) | 1,952 | 1,179 | (1,106 | ) | (3,069 | ) | ||||||||||||
Investment securities gains (losses) | 38 | 3 | (993 | ) | (383 | ) | (171 | ) | ||||||||||||
Other income | 2,818 | 736 | 1,765 | 3,237 | 4,538 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total noninterest income | $ | 24,363 | $ | 24,427 | $ | 23,325 | $ | 23,143 | $ | 24,028 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Salaries and employee benefits | $ | 30,952 | $ | 30,280 | $ | 31,265 | $ | 31,018 | $ | 32,294 | ||||||||||
Occupancy | 6,326 | 6,125 | 6,047 | 7,562 | 6,834 | |||||||||||||||
Professional services | 2,311 | 2,394 | 2,407 | 2,219 | 2,945 | |||||||||||||||
Equipment | 3,326 | 2,918 | 2,841 | 3,052 | 3,355 | |||||||||||||||
Data processing services | 3,709 | 3,823 | 4,247 | 4,352 | 4,636 | |||||||||||||||
Advertising and public relations | 1,298 | 2,179 | 1,802 | 569 | 1,512 | |||||||||||||||
Postage and delivery | 1,165 | 1,142 | 1,120 | 1,116 | 1,075 | |||||||||||||||
Other loan expenses | 3,497 | 3,941 | 3,314 | 5,255 | 5,431 | |||||||||||||||
Losses on other real estate (ORE) | 1,081 | 1,210 | 1,355 | 9,122 | 930 | |||||||||||||||
ORE expenses | 995 | 529 | 1,029 | 1,768 | 1,653 | |||||||||||||||
Intangible asset amortization | 688 | 732 | 778 | 828 | 851 | |||||||||||||||
Other expense | 11,292 | 10,138 | 13,239 | 14,795 | 15,718 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total noninterest expense | $ | 66,640 | $ | 65,411 | $ | 69,444 | $ | 81,656 | $ | 77,234 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
12
| Average Balances, Yields and Rates | ||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||
| December 31, 2011 | September 30, 2011 | December 31, 2010 | ||||||||||||||||||||||
(in thousands) | Average Balance | Average Rate | Average Balance | Average Rate | Average Balance | Average Rate | ||||||||||||||||||
Earning Assets | ||||||||||||||||||||||||
Money market investments | $ | 273,714 | 0.25 | % | $ | 270,422 | 0.25 | % | $ | 512,068 | 0.25 | % | ||||||||||||
Investment securities: | ||||||||||||||||||||||||
Taxable | 2,481,094 | 3.00 | 2,536,944 | 3.23 | 2,076,584 | 3.39 | ||||||||||||||||||
Tax-exempt | 225,093 | 6.53 | 242,494 | 6.63 | 300,838 | 6.76 | ||||||||||||||||||
FHLB and Federal Reserve stock | 123,508 | 3.25 | 123,906 | 3.13 | 150,871 | 2.67 | ||||||||||||||||||
Portfolio loans: | ||||||||||||||||||||||||
Commercial and industrial | 1,539,811 | 5.32 | 1,440,968 | 5.24 | 1,583,285 | 4.67 | ||||||||||||||||||
Commercial real estate | 1,620,479 | 5.02 | 1,678,996 | 5.07 | 2,422,033 | 5.31 | ||||||||||||||||||
Residential mortgage | 647,491 | 4.55 | 693,494 | 4.45 | 778,572 | 4.90 | ||||||||||||||||||
Direct consumer | 943,445 | 5.98 | 967,443 | 6.00 | 1,068,615 | 6.11 | ||||||||||||||||||
Indirect consumer | 881,206 | 6.58 | 882,157 | 6.56 | 829,969 | 6.84 | ||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
Total portfolio loans | 5,632,432 | 5.45 | 5,663,058 | 5.43 | 6,682,474 | 5.43 | ||||||||||||||||||
Loans held for sale | 25,594 | 3.12 | 19,248 | 4.44 | 45,993 | 7.72 | ||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
Total earning assets | 8,761,435 | 4.59 | 8,856,072 | 4.64 | 9,768,828 | 4.73 | ||||||||||||||||||
Nonearning Assets | ||||||||||||||||||||||||
Cash and due from banks | 141,138 | 147,044 | 146,433 | |||||||||||||||||||||
Premises and equipment | 98,526 | 99,835 | 105,509 | |||||||||||||||||||||
Investment security fair value adjustment | 46,065 | 46,558 | 63,711 | |||||||||||||||||||||
Other nonearning assets | 666,183 | 652,885 | 707,579 | |||||||||||||||||||||
Assets of discontinued operations | — | — | — | |||||||||||||||||||||
Allowance for loan losses | (190,163 | ) | (206,119 | ) | (323,742 | ) | ||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
Total assets | $ | 9,523,184 | $ | 9,596,275 | $ | 10,468,318 | ||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
Interest-Bearing Liabilities | ||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Interest-bearing demand deposits | $ | 937,024 | 0.18 | $ | 976,637 | 0.21 | $ | 941,221 | 0.24 | |||||||||||||||
Savings deposits | 2,645,821 | 0.31 | 2,648,640 | 0.33 | 2,629,442 | 0.49 | ||||||||||||||||||
Time deposits | 2,269,233 | 1.73 | 2,380,333 | 1.80 | 3,035,501 | 2.06 | ||||||||||||||||||
Short-term borrowings | 45,020 | 0.19 | 43,445 | 0.18 | 41,591 | 0.18 | ||||||||||||||||||
Long-term debt | 856,206 | 4.12 | 862,479 | 4.19 | 1,159,760 | 4.34 | ||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
Total interest-bearing liabilities | 6,753,304 | 1.25 | 6,911,534 | 1.30 | 7,807,515 | 1.64 | ||||||||||||||||||
Noninterest-Bearing Liabilities and Equity | ||||||||||||||||||||||||
Noninterest-bearing demand | 1,600,059 | 1,541,005 | 1,358,685 | |||||||||||||||||||||
Other liabilities | 152,739 | 152,134 | 156,920 | |||||||||||||||||||||
Liabilities of discontinued operations | — | — | — | |||||||||||||||||||||
Shareholders’ equity | 1,017,082 | 991,602 | 1,145,198 | |||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 9,523,184 | $ | 9,596,275 | $ | 10,468,318 | ||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
Interest Spread | 3.33 | % | 3.34 | % | 3.09 | % | ||||||||||||||||||
Contribution of noninterest bearing sources of funds | 0.29 | 0.29 | 0.33 | |||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
Net Interest Margin | 3.62 | % | 3.63 | % | | 3.42 | % | |||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
13
| Average Balances, Yields and Rates | Twelve Months Ended December 31, | |||||||||||||||
| 2011 | 2010 | |||||||||||||||
(in thousands) | Average Balance | Average Rate | Average Balance | Average Rate | ||||||||||||
Earning Assets | ||||||||||||||||
Money market investments | $ | 340,482 | 0.25 | % | $ | 605,217 | 0.25 | % | ||||||||
Investment securities: | ||||||||||||||||
Taxable | 2,444,539 | 3.24 | 1,901,195 | 3.82 | ||||||||||||
Tax-exempt | 250,098 | 6.64 | 366,044 | 6.74 | ||||||||||||
FHLB and Federal Reserve stock | 132,101 | 3.14 | 154,959 | 2.44 | ||||||||||||
Portfolio loans: | ||||||||||||||||
Commercial and industrial | 1,438,292 | 5.13 | 1,728,712 | 4.80 | ||||||||||||
Commercial real estate | 1,776,292 | 5.12 | 2,631,901 | 5.30 | ||||||||||||
Residential mortgage | 700,257 | 4.65 | 867,500 | 5.06 | ||||||||||||
Direct consumer | 981,396 | 6.04 | 1,133,691 | 6.07 | ||||||||||||
Indirect consumer | 856,279 | 6.65 | 813,845 | 6.84 | ||||||||||||
|
|
|
| |||||||||||||
Total portfolio loans | 5,752,516 | 5.45 | 7,175,649 | 5.44 | ||||||||||||
Loans held for sale | 26,451 | 3.52 | 69,705 | 2.76 | ||||||||||||
|
|
|
| |||||||||||||
Total earning assets | 8,946,187 | 4.64 | 10,272,769 | 4.82 | ||||||||||||
Nonearning Assets | ||||||||||||||||
Cash and due from banks | 142,721 | 163,203 | ||||||||||||||
Premises and equipment | 101,009 | 107,382 | ||||||||||||||
Investment security fair value adjustment | 44,712 | 54,451 | ||||||||||||||
Other nonearning assets | 663,477 | 725,101 | ||||||||||||||
Assets of discontinued operations | — | 108,615 | ||||||||||||||
Allowance for loan losses | (228,509 | ) | (325,844 | ) | ||||||||||||
|
|
|
| |||||||||||||
Total assets | $ | 9,669,597 | $ | 11,105,677 | ||||||||||||
|
|
|
| |||||||||||||
Interest-Bearing Liabilities | ||||||||||||||||
Deposits: | ||||||||||||||||
Interest-bearing demand deposits | $ | 953,187 | 0.21 | $ | 1,008,871 | 0.27 | ||||||||||
Savings deposits | 2,636,422 | 0.35 | 2,561,596 | 0.62 | ||||||||||||
Time deposits | 2,489,703 | 1.85 | 3,405,281 | 2.35 | ||||||||||||
Short-term borrowings | 42,760 | 0.18 | 36,744 | 0.22 | ||||||||||||
Long-term debt | 898,501 | 4.15 | 1,280,839 | 4.43 | ||||||||||||
|
|
|
| |||||||||||||
Total interest-bearing liabilities | 7,020,573 | 1.35 | 8,293,331 | 1.87 | ||||||||||||
Noninterest-Bearing Liabilities and Equity | ||||||||||||||||
Noninterest-bearing demand | 1,503,430 | 1,306,881 | ||||||||||||||
Other liabilities | 151,833 | 146,669 | ||||||||||||||
Liabilities of discontinued operations | — | 128,851 | ||||||||||||||
Shareholders’ equity | 993,761 | 1,229,945 | ||||||||||||||
|
|
|
| |||||||||||||
Total liabilities and shareholders’ equity | $ | 9,669,597 | $ | 11,105,677 | ||||||||||||
|
|
|
| |||||||||||||
Interest Spread | 3.29 | % | 2.95 | % | ||||||||||||
Contribution of noninterest bearing sources of funds | 0.29 | 0.36 | ||||||||||||||
|
|
|
| |||||||||||||
Net Interest Margin | 3.58 | % | 3.31 | % | ||||||||||||
|
|
|
| |||||||||||||
14