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 Fourth Consecutive Quarterly Profit
| • | Net income attributable to common shareholders was $19 million or $0.47 per share for the first quarter |
| • | Improved earnings for the quarter were driven by a 44% reduction in provision expense as credit trends continue to improve |
| • | C&I loan portfolio grew by 7% |
| • | As announced last week, the written agreement with our regulators was terminated |
| • | Anticipate restoring our deferred tax asset in the second quarter with the continuation of positive earnings and performance trends |
FLINT, MICHIGAN, April 26, 2012 —Citizens Republic Bancorp, Inc. (Nasdaq: CRBC) announced net income attributable to common shareholders of $18.9 million or $0.47 per diluted share for the three months ended March 31, 2012, compared to $12.3 million or $0.31 per diluted share for last quarter.
“We are very pleased to report our fourth consecutive quarter of profitability. We continue to successfully execute on our strategies and organically grow our strong capital position,” commented Cathleen Nash, president and chief executive officer.
“With continued positive performance of earnings and credit quality, we expect to fully restore the deferred tax asset next quarter,” added Ms. Nash.
Balance Sheet
The balance sheet grew modestly to $9.6 billion compared to year end as a result of core deposit growth. Core deposits were up $263.6 million or 5% over last quarter, reflecting our focus on generating and growing core deposit relationships. This growth in core deposits was deployed in investment securities. Time deposits at March 31, 2012 decreased $168.2 million or 8% from last quarter as we continue to strategically reduce high cost single service and brokered time deposits. Loan balances were essentially unchanged compared to last quarter as the growth in our C&I portfolio was offset by declines in our CRE, home equity and residential mortgage portfolios.
Capital
Citizens continues to grow capital organically through earnings and maintains a strong capital position.
| Regulatory Minimum for “Well- | March 31, | December 31, | March 31, | |||||||||||||
Capital Ratios | Capitalized” | 2012 | 2011 | 2011 | ||||||||||||
Leverage ratio | 5.00 | % | 8.71 | % | 8.45 | % | 7.39 | % | ||||||||
Tier 1 capital ratio | 6.00 | 13.70 | 13.51 | 11.90 | ||||||||||||
Total capital ratio | 10.00 | 14.97 | 14.84 | 13.24 | ||||||||||||
Tier 1 common equity (non-GAAP) | 7.49 | 7.24 | 5.93 | |||||||||||||
Tangible equity to tangible assets (non-GAAP) | 7.78 | 7.59 | 6.57 | |||||||||||||
Tangible common equity to tangible assets (non-GAAP) | 4.68 | 4.47 | 3.59 | |||||||||||||
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Net Interest Income and Margin
Net interest margin was 3.56% in the first quarter of 2012, a slight decrease from last quarter and a slight increase from the first quarter of last year. The decrease from last quarter was due to lower investment securities yields and a reduction in average loan balances, partially offset by declining deposit costs and reductions in high-cost funding. The slight increase from the first quarter of last year was due to declining deposit costs, reducing reliance on high-cost funding, and lower levels of non-performing assets, partially offset by lower investment securities yields.
Net interest income was $76.1 million for the first quarter of 2012, a decrease of $1.9 million from last quarter and a decrease of $2.5 million from the first quarter of last year. The decrease from the fourth quarter was due to the reduction in net interest margin while the decrease from the first quarter of 2011 reflects a reduction in average earning assets.
Credit Quality
Credit quality continues to benefit from the emphasis we have placed on improving the risk characteristics in our portfolios.
| • | Total delinquencies decreased 22% from March 31 of last year to $40.0 million and currently represent 0.72% of portfolio loans. |
| • | Nonperforming assets declined to $90.6 million, an 11% decrease from the end of December and a decrease of 48% from March 31 of last year. |
| • | Net charge-offs for the first quarter decreased to $28.1 million, compared to $32.6 million last quarter and $160.6 million in the first quarter of last year. First quarter 2012 activity included $7.1 million in consumer charge-offs that we do not expect to recur, related to the implementation of more conservative loss recognition parameters. First quarter 2011 includes activity related to the problem asset resolution initiatives. |
| • | The provision for loan losses was $8.4 million in the first quarter, compared with $15.0 million last quarter and $88.7 million in the first quarter of last year. |
| • | The allowance for loan losses was $153.0 million or 203% of nonperforming portfolio loans at March 31, 2012, compared to $172.7 million or 198% at the end of the prior quarter, and $224.1 million or 183% at the end of the first quarter last year. |
Noninterest Income and Expense
Noninterest income was $24.2 million for the first quarter 2012, essentially unchanged from last quarter as gains on loans held for sale offset decreases in mortgage and other loan income and service charges on deposit accounts. Noninterest income increased $1.1 million or 5% over the first quarter of 2011, reflecting gains on loans held for sale, partially offset by a decrease in mortgage and other loan income.
Noninterest expense was $67.1 million for the first quarter of 2012, essentially unchanged from last quarter as gains on ORE and lower credit costs were offset by higher payroll tax expense and increases in benefit costs primarily related to the reinstatement of the employer matching in the 401(k) plan. Noninterest expense decreased $14.6 million or 18% from the first quarter of last year as losses on ORE and credit costs were significantly lower due to the completion of the problem asset resolution initiatives in early 2011. Additionally, FDIC insurance costs decreased as we moved to the small bank pricing model. These decreases were partially offset by higher salaries and incentives costs.
Conference Call
Citizens’ senior management will review the quarter’s results in a conference call at10:00 a.m. ET on Friday, April 27, 2012.A live audio webcast is available on Citizens’ investor relations page at www.citizensbanking.com or by calling (800) 894-5910 (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,
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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-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.
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.
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Consolidated Balance Sheets (Unaudited)
Citizens Republic Bancorp, Inc.
| March 31, | December 31, | March 31, | ||||||||||
| (in thousands) | 2012 | 2011 | 2011 | |||||||||
Assets | ||||||||||||
Cash and due from banks | $ | 145,240 | $ | 153,418 | $ | 136,638 | ||||||
Money market investments | 300,174 | 313,632 | 495,562 | |||||||||
Investment Securities: | ||||||||||||
Securities available for sale, at fair value | 1,492,985 | 1,312,733 | 2,119,416 | |||||||||
Securities held to maturity, at amortized cost (fair value of $1,422,253, $1,487,550 and $541,646, respectively) | 1,374,449 | 1,444,054 | 547,449 | |||||||||
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Total investment securities | 2,867,434 | 2,756,787 | 2,666,865 | |||||||||
FHLB and Federal Reserve stock | 117,943 | 117,943 | 143,873 | |||||||||
Portfolio loans: | ||||||||||||
Commercial and industrial | 1,657,140 | 1,543,529 | 1,353,167 | |||||||||
Commercial real estate | 1,487,059 | 1,544,361 | 1,794,284 | |||||||||
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Total commercial | 3,144,199 | 3,087,890 | 3,147,451 | |||||||||
Residential mortgage | 611,166 | 637,245 | 727,304 | |||||||||
Direct consumer | 903,238 | 933,314 | 1,006,424 | |||||||||
Indirect consumer | 869,460 | 871,086 | 823,019 | |||||||||
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Total portfolio loans | 5,528,063 | 5,529,535 | 5,704,198 | |||||||||
Less: Allowance for loan losses | (153,007 | ) | (172,726 | ) | (224,117 | ) | ||||||
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Net portfolio loans | 5,375,056 | 5,356,809 | 5,480,081 | |||||||||
Loans held for sale | 13,627 | 10,402 | 38,121 | |||||||||
Premises and equipment | 95,795 | 97,970 | 102,162 | |||||||||
Goodwill | 318,150 | 318,150 | 318,150 | |||||||||
Other intangible assets | 6,850 | 7,428 | 9,626 | |||||||||
Bank owned life insurance | 221,268 | 220,280 | 218,016 | |||||||||
Other assets | 115,809 | 110,030 | 115,019 | |||||||||
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Total assets | $ | 9,577,346 | $ | 9,462,849 | $ | 9,724,113 | ||||||
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Liabilities | ||||||||||||
Noninterest-bearing deposits | $ | 1,692,865 | $ | 1,614,311 | $ | 1,413,920 | ||||||
Interest-bearing demand deposits | 993,143 | 951,590 | 956,676 | |||||||||
Savings deposits | 2,771,150 | 2,627,665 | 2,646,851 | |||||||||
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Core deposits | 5,457,158 | 5,193,566 | 5,017,447 | |||||||||
Time deposits | 2,033,204 | 2,201,375 | 2,674,058 | |||||||||
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Total deposits | 7,490,362 | 7,394,941 | 7,691,505 | |||||||||
Federal funds purchased and securities sold under agreements to repurchase | 34,779 | 40,098 | 40,069 | |||||||||
Other short-term borrowings | — | — | 690 | |||||||||
Other liabilities | 153,987 | 154,088 | 139,819 | |||||||||
Long-term debt | 853,599 | 854,185 | 906,629 | |||||||||
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Total liabilities | 8,532,727 | 8,443,312 | 8,778,712 | |||||||||
Shareholders’ Equity | ||||||||||||
Preferred stock—no par value | 286,901 | 285,114 | 279,955 | |||||||||
Common stock—no par value | 1,435,327 | 1,434,803 | 1,432,271 | |||||||||
Retained deficit | (675,654 | ) | (694,560 | ) | (752,547 | ) | ||||||
Accumulated other comprehensive loss | (1,955 | ) | (5,820 | ) | (14,278 | ) | ||||||
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Total shareholders’ equity | 1,044,619 | 1,019,537 | 945,401 | |||||||||
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Total liabilities and shareholders’ equity | $ | 9,577,346 | $ | 9,462,849 | $ | 9,724,113 | ||||||
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Consolidated Statements of Operations (Unaudited)
Citizens Republic Bancorp, Inc.
| Three Months Ended | ||||||||
| March 31, | ||||||||
| (in thousands, except per share amounts) | 2012 | 2011 | ||||||
Interest Income | ||||||||
Interest and fees on loans | $ | 74,879 | $ | 80,711 | ||||
Interest and dividends on investment securities: | ||||||||
Taxable | 17,309 | 19,610 | ||||||
Tax-exempt | 2,254 | 3,086 | ||||||
Dividends on FHLB and Federal Reserve stock | 1,140 | 1,125 | ||||||
Money market investments | 215 | 253 | ||||||
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Total interest income | 95,797 | 104,785 | ||||||
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Interest Expense | ||||||||
Deposits | 11,096 | 16,375 | ||||||
Short-term borrowings | 18 | 18 | ||||||
Long-term debt | 8,564 | 9,778 | ||||||
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Total interest expense | 19,678 | 26,171 | ||||||
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Net Interest Income | 76,119 | 78,614 | ||||||
Provision for loan losses | 8,397 | 88,724 | ||||||
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Net interest income (loss) after provision for loan losses | 67,722 | (10,110 | ) | |||||
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Noninterest Income | ||||||||
Service charges on deposit accounts | 8,985 | 9,429 | ||||||
Trust fees | 3,602 | 3,923 | ||||||
Mortgage and other loan income | 1,858 | 2,942 | ||||||
Brokerage and investment fees | 1,324 | 1,108 | ||||||
ATM network user fees | 1,808 | 1,755 | ||||||
Bankcard fees | 2,457 | 2,238 | ||||||
Net gains (losses) on loans held for sale | 916 | (1,106 | ) | |||||
Investment securities gains (losses) | — | (383 | ) | |||||
Other income | 3,290 | 3,237 | ||||||
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Total noninterest income | 24,240 | 23,143 | ||||||
Noninterest Expense | ||||||||
Salaries and employee benefits | 33,298 | 31,018 | ||||||
Occupancy | 6,696 | 7,562 | ||||||
Professional services | 2,023 | 2,219 | ||||||
Equipment | 3,303 | 3,052 | ||||||
Data processing services | 4,048 | 4,352 | ||||||
Advertising and public relations | 1,335 | 569 | ||||||
Postage and delivery | 1,099 | 1,116 | ||||||
Other loan expenses | 3,186 | 5,255 | ||||||
(Gains) losses on other real estate (ORE) | (385 | ) | 9,122 | |||||
ORE expenses | 450 | 1,768 | ||||||
Intangible asset amortization | 578 | 828 | ||||||
Other expense | 11,470 | 14,795 | ||||||
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Total noninterest expense | 67,101 | 81,656 | ||||||
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Income (Loss) before Income Taxes | 24,861 | (68,623 | ) | |||||
Income tax provision | — | 55 | ||||||
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Net Income (Loss) | 24,861 | (68,678 | ) | |||||
Dividend on redeemable preferred stock | (5,955 | ) | (5,627 | ) | ||||
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Net Income (Loss) Attributable to Common Shareholders | $ | 18,906 | $ | (74,305 | ) | |||
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Net Income (Loss) Per Common Share: | ||||||||
Basic | $ | 0.47 | $ | (1.89 | ) | |||
Diluted | 0.47 | (1.89 | ) | |||||
Average Common Shares Outstanding: | ||||||||
Basic | 39,446 | 39,406 | ||||||
Diluted | 39,446 | 39,406 | ||||||
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Selected Quarterly Information (Unaudited)
| Three Months Ended | ||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
| (in thousands, except per share amounts) | 2012 | 2011 | 2011 | 2011 | 2011 | |||||||||||||||
Summary of Operations | ||||||||||||||||||||
Net interest income | $ | 76,119 | $ | 78,049 | $ | 78,841 | $ | 77,606 | $ | 78,614 | ||||||||||
Provision for loan losses | 8,397 | 15,007 | 17,481 | 17,596 | 88,724 | |||||||||||||||
Noninterest income | 24,240 | 24,363 | 24,427 | 23,325 | 23,143 | |||||||||||||||
Noninterest expense | 67,101 | 66,640 | 65,411 | 69,444 | 81,656 | |||||||||||||||
Income tax provision (benefit) | — | 2,521 | (12,568 | ) | (10,266 | ) | 55 | |||||||||||||
Net income (loss) | 24,861 | 18,244 | 32,944 | 24,157 | (68,678 | ) | ||||||||||||||
Net income (loss) attributable to common shareholders(1) | 18,906 | 12,347 | 27,183 | 18,456 | (74,305 | ) | ||||||||||||||
Taxable equivalent adjustment | 1,571 | 1,670 | 1,827 | 1,884 | 2,102 | |||||||||||||||
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Per Common Share Data(2) | ||||||||||||||||||||
Net income (loss) | ||||||||||||||||||||
Basic | $ | 0.47 | $ | 0.31 | $ | 0.68 | $ | 0.46 | $ | (1.89 | ) | |||||||||
Diluted | 0.47 | 0.31 | 0.68 | 0.46 | (1.89 | ) | ||||||||||||||
Common book value | 18.83 | 18.24 | 18.03 | 17.34 | 16.73 | |||||||||||||||
Tangible book value (non-GAAP) | 17.88 | 17.24 | 16.96 | 16.22 | 15.53 | |||||||||||||||
Tangible common book value (non-GAAP) | 10.75 | 10.16 | 9.92 | 9.22 | 8.49 | |||||||||||||||
Shares outstanding, end of period(3) | 40,247,241 | 40,260,213 | 40,255,758 | 40,251,874 | 39,778,255 | |||||||||||||||
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At Period End | ||||||||||||||||||||
Assets | $ | 9,577,346 | $ | 9,462,849 | $ | 9,600,188 | $ | 9,495,630 | $ | 9,724,113 | ||||||||||
Earning assets | 8,774,119 | 8,680,995 | 8,824,183 | 8,755,838 | 9,009,704 | |||||||||||||||
Portfolio loans | 5,528,063 | 5,529,535 | 5,672,327 | 5,627,637 | 5,704,198 | |||||||||||||||
Allowance for loan losses | 153,007 | 172,726 | 190,354 | 206,292 | 224,117 | |||||||||||||||
Deposits | 7,490,362 | 7,394,941 | 7,539,904 | 7,444,703 | 7,691,505 | |||||||||||||||
Long-term debt | 853,599 | 854,185 | 855,670 | 881,112 | 906,629 | |||||||||||||||
Shareholders’ equity | 1,044,619 | 1,019,537 | 1,009,143 | 979,722 | 945,401 | |||||||||||||||
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Average for the Quarter | ||||||||||||||||||||
Assets | $ | 9,521,386 | $ | 9,523,184 | $ | 9,596,275 | $ | 9,664,939 | $ | 9,898,921 | ||||||||||
Earning assets | 8,750,078 | 8,761,435 | 8,856,072 | 8,942,348 | 9,231,042 | |||||||||||||||
Portfolio loans | 5,508,528 | 5,632,432 | 5,663,058 | 5,668,752 | 6,051,407 | |||||||||||||||
Allowance for loan losses | 172,509 | 190,163 | 206,119 | 223,922 | 295,232 | |||||||||||||||
Deposits | 7,441,693 | 7,452,137 | 7,546,615 | 7,605,707 | 7,729,960 | |||||||||||||||
Long-term debt | 853,912 | 856,206 | 862,479 | 905,902 | 971,076 | |||||||||||||||
Shareholders’ equity | 1,028,494 | 1,017,082 | 991,602 | 963,932 | 1,002,290 | |||||||||||||||
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Financial Ratios (annualized) | ||||||||||||||||||||
Return on average assets | 1.05 | % | 0.76 | % | 1.36 | % | 1.00 | % | (2.81 | )% | ||||||||||
Return on average shareholders’ equity | 9.72 | 7.12 | 13.18 | 10.05 | (27.79 | ) | ||||||||||||||
Average shareholders’ equity / average assets | 10.80 | 10.68 | 10.33 | 9.97 | 10.13 | |||||||||||||||
Net interest margin (FTE)(4) | 3.56 | 3.62 | 3.63 | 3.56 | 3.53 | |||||||||||||||
Efficiency ratio (non-GAAP) | 65.20 | 61.39 | 59.89 | 63.85 | 67.09 | |||||||||||||||
Allowance for loan losses as a percent of portfolio loans | 2.77 | 3.12 | 3.36 | 3.67 | 3.93 | |||||||||||||||
Allowance for loan losses as a percent of nonperforming loans(5) | 202.56 | 197.56 | 190.09 | 185.90 | 182.72 | |||||||||||||||
Allowance for loan losses as a percent of nonperforming assets(5) | 168.87 | 168.97 | 139.01 | 147.99 | 127.82 | |||||||||||||||
Nonperforming loans as a percent of portfolio loans(5) | 1.37 | 1.58 | 1.77 | 1.97 | 2.15 | |||||||||||||||
Nonperforming assets as a percent of total loans plus ORAA(5)(6) | 1.63 | 1.84 | 2.39 | 2.46 | 3.04 | |||||||||||||||
Nonperforming assets as a percent of total assets(5) | 0.95 | 1.08 | 1.43 | 1.47 | 1.80 | |||||||||||||||
Ratio of net charge-offs during period to average portfolio loans | 2.05 | 2.30 | 2.34 | 2.51 | 10.77 | |||||||||||||||
Leverage ratio | 8.71 | 8.45 | 8.21 | 7.83 | 7.39 | |||||||||||||||
Tier 1 capital ratio | 13.70 | 13.51 | 12.81 | 12.43 | 11.90 | |||||||||||||||
Total capital ratio | 14.97 | 14.84 | 14.14 | 13.77 | 13.24 | |||||||||||||||
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| (1) | Net income (loss) attributable to common shareholders includes a non-cash dividend to preferred shareholders of $6.0 million in the first quarter of 2012 and $5.9 million, $5.8 million, $5.7 million and $5.6 million in the fourth, third, second, and first quarters of 2011. |
| (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) | 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%. |
| (5) | Nonperforming loans/assets exclude troubled debt restructurings (TDRs) that are on an accrual status and performing in accordance with their modified terms. |
| (6) | Other real estate assets acquired (“ORAA”) include loans held for sale. |
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Loan Portfolios (in thousands) | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | March 31, 2011 | |||||||||||||||
Land hold | $ | 5,387 | $ | 6,542 | $ | 6,818 | $ | 7,426 | $ | 17,273 | ||||||||||
Land development | 7,226 | 13,104 | 22,232 | 22,507 | 22,744 | |||||||||||||||
Construction | 6,410 | 5,847 | 5,410 | 8,111 | 23,297 | |||||||||||||||
Income producing | 877,461 | 913,755 | 975,262 | 1,019,551 | 1,038,674 | |||||||||||||||
Owner-occupied | 590,575 | 605,113 | 634,179 | 664,647 | 692,296 | |||||||||||||||
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Total commercial real estate | 1,487,059 | 1,544,361 | 1,643,901 | 1,722,242 | 1,794,284 | |||||||||||||||
Commercial and industrial | 1,657,140 | 1,543,529 | 1,531,492 | 1,349,803 | 1,353,167 | |||||||||||||||
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Total commercial | 3,144,199 | 3,087,890 | 3,175,393 | 3,072,045 | 3,147,451 | |||||||||||||||
Residential mortgage | 611,166 | 637,245 | 654,561 | 708,164 | 727,304 | |||||||||||||||
Direct consumer | 903,238 | 933,314 | 954,831 | 978,319 | 1,006,424 | |||||||||||||||
Indirect consumer | 869,460 | 871,086 | 887,542 | 869,109 | 823,019 | |||||||||||||||
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Total consumer | 2,383,864 | 2,441,645 | 2,496,934 | 2,555,592 | 2,556,747 | |||||||||||||||
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|
|
|
|
| |||||||||||
Total portfolio loans | $ | 5,528,063 | $ | 5,529,535 | $ | 5,672,327 | $ | 5,627,637 | $ | 5,704,198 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Delinquency Rates By Loan Portfolio | ||||||||||||||||||||||||||||||||||||||||
| March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | March 31, 2011 | ||||||||||||||||||||||||||||||||||||
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 | % | ||||||||||||||||||||
Land development | 130 | 1.81 | — | — | 216 | 0.97 | — | — | — | — | ||||||||||||||||||||||||||||||
Construction | — | — | — | — | — | — | 1,722 | 21.23 | — | — | ||||||||||||||||||||||||||||||
Income producing | 1,447 | 0.16 | 2,508 | 0.27 | 3,325 | 0.34 | 1,597 | 0.16 | 4,817 | 0.46 | ||||||||||||||||||||||||||||||
Owner-occupied | 5,177 | 0.88 | 2,345 | 0.39 | 5,817 | 0.92 | 6,524 | 0.98 | 1,981 | 0.29 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total commercial real estate | 6,754 | 0.45 | 4,874 | 0.32 | 9,358 | 0.57 | 10,414 | 0.60 | 7,307 | 0.41 | ||||||||||||||||||||||||||||||
Commercial and industrial | 2,887 | 0.17 | 2,454 | 0.16 | 2,594 | 0.17 | 3,637 | 0.27 | 6,177 | 0.46 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total commercial | 9,641 | 0.31 | 7,328 | 0.24 | 11,952 | 0.38 | 14,051 | 0.46 | 13,484 | 0.43 | ||||||||||||||||||||||||||||||
Residential mortgage | 7,568 | 1.24 | 9,544 | 1.50 | 9,079 | 1.39 | 11,564 | 1.63 | 10,279 | 1.41 | ||||||||||||||||||||||||||||||
Direct consumer | 14,002 | 1.55 | 17,810 | 1.91 | 18,629 | 1.95 | 20,393 | 2.08 | 17,210 | 1.71 | ||||||||||||||||||||||||||||||
Indirect consumer | 8,780 | 1.01 | 13,067 | 1.50 | 9,898 | 1.12 | 10,681 | 1.23 | 10,187 | 1.24 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total consumer | 30,350 | 1.27 | 40,421 | 1.66 | 37,606 | 1.51 | 42,638 | 1.67 | 37,676 | 1.47 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total delinquent loans | $ | 39,991 | 0.72 | $ | 47,749 | 0.86 | $ | 49,558 | 0.87 | $ | 56,689 | 1.01 | $ | 51,160 | 0.90 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
7
| Nonperforming Assets | ||||||||||||||||||||||||||||||||||||||||
| March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | March 31, 2011 | ||||||||||||||||||||||||||||||||||||
(in thousands) | $ | % of Portfolio | $ | % of Portfolio | $ | % of Portfolio | $ | % of Portfolio | $ | % of Portfolio | ||||||||||||||||||||||||||||||
Land hold | $ | — | — | % | $ | — | — | % | $ | 167 | 2.45 | % | $ | 167 | 2.25 | % | $ | 1,154 | 6.68 | % | ||||||||||||||||||||
Land development | 207 | 2.87 | 213 | 1.62 | 12 | 0.05 | 379 | 1.68 | 78 | 0.35 | ||||||||||||||||||||||||||||||
Construction | 150 | 2.34 | 150 | 2.57 | 257 | 4.76 | 559 | 6.89 | 395 | 1.70 | ||||||||||||||||||||||||||||||
Income producing | 18,566 | 2.12 | 21,171 | 2.32 | 23,227 | 2.38 | 20,180 | 1.98 | 28,250 | 2.72 | ||||||||||||||||||||||||||||||
Owner-occupied | 20,716 | 3.51 | 23,798 | 3.93 | 27,540 | 4.34 | 21,169 | 3.18 | 21,738 | 3.14 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total commercial real estate | 39,639 | 2.67 | 45,332 | 2.94 | 51,203 | 3.11 | 42,454 | 2.47 | 51,615 | 2.88 | ||||||||||||||||||||||||||||||
Commercial and industrial | 14,629 | 0.88 | 16,946 | 1.10 | 18,536 | 1.21 | 20,995 | 1.56 | 25,785 | 1.91 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total nonaccruing commercial | 54,268 | 1.73 | 62,278 | 2.02 | 69,739 | 2.20 | 63,449 | 2.07 | 77,400 | 2.46 | ||||||||||||||||||||||||||||||
Residential mortgage | 11,137 | 1.82 | 11,312 | 1.78 | 13,074 | 2.00 | 30,693 | 4.33 | 30,385 | 4.18 | ||||||||||||||||||||||||||||||
Direct consumer | 8,895 | 0.98 | 12,115 | 1.30 | 14,704 | 1.54 | 13,944 | 1.43 | 13,043 | 1.30 | ||||||||||||||||||||||||||||||
Indirect consumer | 1,074 | 0.12 | 953 | 0.11 | 1,256 | 0.14 | 1,281 | 0.15 | 1,169 | 0.14 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total nonaccruing consumer | 21,106 | 0.89 | 24,380 | 1.00 | 29,034 | 1.16 | 45,918 | 1.80 | 44,597 | 1.74 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total nonaccruing loans | 75,374 | 1.37 | 86,658 | 1.57 | 98,773 | 1.74 | 109,367 | 1.94 | 121,997 | 2.14 | ||||||||||||||||||||||||||||||
Loans 90+ days still accruing | 164 | 0.00 | 770 | 0.01 | 1,368 | 0.02 | 1,604 | 0.03 | 660 | 0.01 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total nonperforming portfolio loans | 75,538 | 1.37 | 87,428 | 1.58 | 100,141 | 1.77 | 110,971 | 1.97 | 122,657 | 2.15 | ||||||||||||||||||||||||||||||
Nonperforming held for sale | 3,264 | 2,372 | 20,134 | 11,395 | 30,359 | |||||||||||||||||||||||||||||||||||
Other repossessed assets acquired | 11,803 | 12,422 | 16,665 | 17,032 | 22,227 | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total nonperforming assets | $ | 90,605 | $ | 102,222 | $ | 136,940 | $ | 139,398 | $ | 175,243 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Restructured loans still accruing | $ | 17,911 | $ | 32,347 | $ | 12,206 | $ | 12,682 | $ | 12,714 | ||||||||||||||||||||||||||||||
Commercial inflows | $ | 14,027 | $ | 13,269 | $ | 23,901 | $ | 24,370 | $ | 29,486 | ||||||||||||||||||||||||||||||
Commercial outflows | (22,036 | ) | (20,730 | ) | (17,611 | ) | (38,321 | ) | (128,477 | ) | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Net change | $ | (8,009 | ) | $ | (7,461 | ) | $ | 6,290 | $ | (13,951 | ) | $ | (98,991 | ) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
| Net Charge-Offs | Three Months Ended | |||||||||||||||||||||||||||||||||||||||
| March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | March 31, 2011 | ||||||||||||||||||||||||||||||||||||
(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 | % | |||||||||||||||||||
Land development | (83 | ) | (4.64 | ) | 3,079 | 93.21 | 43 | 0.76 | 38 | 0.68 | 4,439 | 79.15 | ||||||||||||||||||||||||||||
Construction | (101 | ) | (6.33 | ) | (4 | ) | (0.24 | ) | (5 | ) | (0.34 | ) | (1 | ) | (0.04 | ) | 5,578 | 97.09 | ||||||||||||||||||||||
Income producing | 4,151 | 1.90 | 11,924 | 5.18 | 3,156 | 1.28 | 8,228 | 3.24 | 77,589 | 30.30 | ||||||||||||||||||||||||||||||
Owner-occupied | 2,537 | 1.73 | 5,791 | 3.80 | 2,129 | 1.33 | 3,149 | 1.90 | 25,260 | 14.80 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total commercial real estate | 6,504 | 1.76 | 20,757 | 5.33 | 5,323 | 1.28 | 16,133 | 3.76 | 117,808 | 26.63 | ||||||||||||||||||||||||||||||
Commercial and industrial | 3,029 | 0.74 | 1,032 | 0.27 | 1,225 | 0.32 | 7,176 | 2.13 | 32,013 | 9.59 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total commercial | 9,533 | 1.22 | 21,789 | 2.80 | 6,548 | 0.82 | 23,309 | 3.04 | 149,821 | 19.30 | ||||||||||||||||||||||||||||||
Residential mortgage | 5,076 | 3.34 | 1,170 | 0.73 | 18,364 | 11.13 | 4,431 | 2.51 | 3,400 | 1.90 | ||||||||||||||||||||||||||||||
Direct consumer | 10,935 | 4.87 | 6,930 | 2.95 | 5,710 | 2.37 | 5,605 | 2.30 | 5,496 | 2.21 | ||||||||||||||||||||||||||||||
Indirect consumer | 2,572 | 1.19 | 2,746 | 1.25 | 2,797 | 1.25 | 2,076 | 0.96 | 1,921 | 0.95 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total consumer | 18,583 | 3.14 | 10,846 | 1.76 | 26,871 | 4.27 | 12,112 | 1.90 | 10,817 | 1.72 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
Total net charge-offs | $ | 28,116 | 2.05 | $ | 32,635 | 2.30 | $ | 33,419 | 2.34 | $ | 35,421 | 2.51 | $ | 160,638 | 10.77 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||
| * | Represents an annualized rate. |
N/M—Not Meaningful
8
Summary of Loan Loss Experience
| Three Months Ended | ||||||||||||||||||||
(in thousands) | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | March 31, 2011 | |||||||||||||||
Allowance for loan losses—beginning of period | $ | 172,726 | $ | 190,354 | $ | 206,292 | $ | 224,117 | $ | 296,031 | ||||||||||
Provision for loan losses | 8,397 | 15,007 | 17,481 | 17,596 | 88,724 | |||||||||||||||
Charge-offs: | ||||||||||||||||||||
Commercial and industrial | 2,388 | 1,490 | 994 | 4,016 | 29,712 | |||||||||||||||
Small business | 1,265 | 399 | 1,132 | 3,853 | 4,078 | |||||||||||||||
Commercial real estate | 8,997 | 21,581 | 5,860 | 16,371 | 118,721 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total commercial | 12,650 | 23,470 | 7,986 | 24,240 | 152,511 | |||||||||||||||
Residential mortgage | 5,210 | 1,366 | 18,369 | 4,659 | 3,403 | |||||||||||||||
Direct consumer | 11,527 | 7,544 | 6,398 | 6,522 | 6,468 | |||||||||||||||
Indirect consumer | 3,251 | 3,229 | 3,430 | 2,639 | 2,472 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total charge-offs | 32,638 | 35,609 | 36,183 | 38,060 | 164,854 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Recoveries: | ||||||||||||||||||||
Commercial and industrial | 376 | 609 | 721 | 524 | 1,603 | |||||||||||||||
Small business | 248 | 248 | 180 | 169 | 174 | |||||||||||||||
Commercial real estate | 2,493 | 824 | 537 | 238 | 913 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total commercial | 3,117 | 1,681 | 1,438 | 931 | 2,690 | |||||||||||||||
Residential mortgage | 134 | 197 | 5 | 228 | 3 | |||||||||||||||
Direct consumer | 592 | 613 | 688 | 917 | 972 | |||||||||||||||
Indirect consumer | 679 | 483 | 633 | 563 | 551 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total recoveries | 4,522 | 2,974 | 2,764 | 2,639 | 4,216 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net charge-offs | 28,116 | 32,635 | 33,419 | 35,421 | 160,638 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Allowance for loan losses—end of period | $ | 153,007 | $ | 172,726 | $ | 190,354 | $ | 206,292 | $ | 224,117 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
9
Non-GAAP Reconciliation
(in thousands) | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | March 31, 2011 | |||||||||||||||
Efficiency Ratio (non-GAAP) | ||||||||||||||||||||
Net interest income (A) | $ | 76,119 | $ | 78,049 | $ | 78,841 | $ | 77,606 | $ | 78,614 | ||||||||||
Taxable equivalent adjustment (B) | 1,571 | 1,670 | 1,827 | 1,884 | 2,102 | |||||||||||||||
Investment securities gain (losses) (C) | — | 38 | 3 | (993 | ) | (383 | ) | |||||||||||||
Noninterest income (D) | 24,240 | 24,363 | 24,427 | 23,325 | 23,143 | |||||||||||||||
Noninterest expense (E) | 67,101 | 66,640 | 65,411 | 69,444 | 81,656 | |||||||||||||||
(Gains) losses on ORE and ORE Expenses (F) | 65 | 2,076 | 1,739 | 2,384 | 10,890 | |||||||||||||||
Intangible amortization (G) | 578 | 688 | 732 | 778 | 828 | |||||||||||||||
Efficiency ratio: (E-F-G)/(A+B-C+D) (non-GAAP) | 65.20 | % | 61.39 | % | 59.89 | % | 63.85 | % | 67.09 | % | ||||||||||
Tangible Common Equity to Tangible Assets (non-GAAP) | ||||||||||||||||||||
Total assets | $ | 9,577,346 | $ | 9,462,849 | $ | 9,600,188 | $ | 9,495,630 | $ | 9,724,113 | ||||||||||
Goodwill | (318,150 | ) | (318,150 | ) | (318,150 | ) | (318,150 | ) | (318,150 | ) | ||||||||||
Other intangible assets | (6,850 | ) | (7,428 | ) | (8,116 | ) | (8,848 | ) | (9,626 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Tangible assets (non-GAAP) | $ | 9,252,346 | $ | 9,137,271 | $ | 9,273,922 | $ | 9,168,632 | $ | 9,396,337 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total shareholders’ equity | $ | 1,044,619 | $ | 1,019,537 | $ | 1,009,143 | $ | 979,722 | $ | 945,401 | ||||||||||
Goodwill | (318,150 | ) | (318,150 | ) | (318,150 | ) | (318,150 | ) | (318,150 | ) | ||||||||||
Other intangible assets | (6,850 | ) | (7,428 | ) | (8,116 | ) | (8,848 | ) | (9,626 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Tangible equity (non-GAAP) | $ | 719,619 | $ | 693,959 | $ | 682,877 | $ | 652,724 | $ | 617,625 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Tangible equity | $ | 719,619 | $ | 693,959 | $ | 682,877 | $ | 652,724 | $ | 617,625 | ||||||||||
Preferred stock | (286,901 | ) | (285,114 | ) | (283,360 | ) | (281,642 | ) | (279,955 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Tangible common equity (non-GAAP) | $ | 432,718 | $ | 408,845 | $ | 399,517 | $ | 371,082 | $ | 337,670 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Tier 1 Common Equity (non-GAAP) | ||||||||||||||||||||
Total shareholders’ equity | $ | 1,044,619 | $ | 1,019,537 | $ | 1,009,143 | $ | 979,722 | $ | 945,401 | ||||||||||
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 | 1,955 | 5,820 | 1,075 | 923 | 14,278 | |||||||||||||||
Other intangible assets | (6,850 | ) | (7,428 | ) | (8,116 | ) | (8,848 | ) | (9,626 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Tier 1 capital (regulatory) | $ | 795,241 | $ | 773,446 | $ | 757,619 | $ | 727,314 | $ | 705,570 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Tier 1 capital (regulatory) | $ | 795,241 | $ | 773,446 | $ | 757,619 | $ | 727,314 | $ | 705,570 | ||||||||||
Qualifying capital securities | (73,667 | ) | (73,667 | ) | (73,667 | ) | (73,667 | ) | (73,667 | ) | ||||||||||
Preferred stock | (286,901 | ) | (285,114 | ) | (283,360 | ) | (281,642 | ) | (279,955 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Tier 1 common equity (non-GAAP) | $ | 434,673 | $ | 414,665 | $ | 400,592 | $ | 372,005 | $ | 351,948 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net risk-weighted assets (regulatory) | $ | 5,800,014 | $ | 5,723,333 | $ | 5,912,527 | $ | 5,850,177 | $ | 5,929,802 | ||||||||||
Equity to assets | 10.91 | % | 10.77 | % | 10.51 | % | 10.32 | % | 9.72 | % | ||||||||||
Tier 1 common equity (non-GAAP) | 7.49 | 7.24 | 6.77 | 6.36 | 5.93 | |||||||||||||||
Tangible equity to tangible assets (non-GAAP) | 7.78 | 7.59 | 7.36 | 7.12 | 6.57 | |||||||||||||||
Tangible common equity to tangible assets (non-GAAP) | 4.68 | 4.47 | 4.31 | 4.05 | 3.59 | |||||||||||||||
10
Pre-tax pre-provision profit (non-GAAP)
| Three Months Ended | ||||||||||||||||||||
(in thousands) | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | March 31, 2011 | |||||||||||||||
Net income (loss) | $ | 24,861 | $ | 18,244 | $ | 32,944 | $ | 24,157 | $ | (68,678 | ) | |||||||||
Income tax provision (benefit) | — | 2,521 | (12,568 | ) | (10,266 | ) | 55 | |||||||||||||
Provision for loan losses | 8,397 | 15,007 | 17,481 | 17,596 | 88,724 | |||||||||||||||
Net (gains) losses on loans held for sale | (916 | ) | 217 | (1,952 | ) | (1,179 | ) | 1,106 | ||||||||||||
Investment securities (gains) losses | — | (38 | ) | (3 | ) | 993 | 383 | |||||||||||||
(Gains) losses on other real estate (ORE) | (385 | ) | 1,081 | 1,210 | 1,355 | 9,122 | ||||||||||||||
Fair-value adjustment on bank owned life insurance(1) | (205 | ) | (100 | ) | 385 | 48 | (100 | ) | ||||||||||||
Fair-value adjustment on swaps(1) | (61 | ) | (46 | ) | 268 | 77 | 114 | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Pre-tax pre-provision profit (non-GAAP) | $ | 31,691 | $ | 36,886 | $ | 37,765 | $ | 32,781 | $ | 30,726 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
| (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) | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | March 31, 2011 | |||||||||||||||
Service charges on deposit accounts | $ | 8,985 | $ | 9,724 | $ | 10,362 | $ | 9,753 | $ | 9,429 | ||||||||||
Trust fees | 3,602 | 3,747 | 3,622 | 3,811 | 3,923 | |||||||||||||||
Mortgage and other loan income | 1,858 | 2,705 | 2,089 | 1,883 | 2,942 | |||||||||||||||
Brokerage and investment fees | 1,324 | 1,243 | 1,188 | 1,533 | 1,108 | |||||||||||||||
ATM network user fees | 1,808 | 1,837 | 1,993 | 1,926 | 1,755 | |||||||||||||||
Bankcard fees | 2,457 | 2,468 | 2,482 | 2,468 | 2,238 | |||||||||||||||
Net gains (losses) on loans held for sale | 916 | (217 | ) | 1,952 | 1,179 | (1,106 | ) | |||||||||||||
Investment securities gains (losses) | — | 38 | 3 | (993 | ) | (383 | ) | |||||||||||||
Other income | 3,290 | 2,818 | 736 | 1,765 | 3,237 | |||||||||||||||
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Total noninterest income | $ | 24,240 | $ | 24,363 | $ | 24,427 | $ | 23,325 | $ | 23,143 | ||||||||||
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Salaries and employee benefits | $ | 33,298 | $ | 30,952 | $ | 30,280 | $ | 31,265 | $ | 31,018 | ||||||||||
Occupancy | 6,696 | 6,326 | 6,125 | 6,047 | 7,562 | |||||||||||||||
Professional services | 2,023 | 2,311 | 2,394 | 2,407 | 2,219 | |||||||||||||||
Equipment | 3,303 | 3,326 | 2,918 | 2,841 | 3,052 | |||||||||||||||
Data processing services | 4,048 | 3,709 | 3,823 | 4,247 | 4,352 | |||||||||||||||
Advertising and public relations | 1,335 | 1,298 | 2,179 | 1,802 | 569 | |||||||||||||||
Postage and delivery | 1,099 | 1,165 | 1,142 | 1,120 | 1,116 | |||||||||||||||
Other loan expenses | 3,186 | 3,497 | 3,941 | 3,314 | 5,255 | |||||||||||||||
(Gains) losses on other real estate (ORE) | (385 | ) | 1,081 | 1,210 | 1,355 | 9,122 | ||||||||||||||
ORE expenses | 450 | 995 | 529 | 1,029 | 1,768 | |||||||||||||||
Intangible asset amortization | 578 | 688 | 732 | 778 | 828 | |||||||||||||||
Other expense | 11,470 | 11,292 | 10,138 | 13,239 | 14,795 | |||||||||||||||
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Total noninterest expense | $ | 67,101 | $ | 66,640 | $ | 65,411 | $ | 69,444 | $ | 81,656 | ||||||||||
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11
Average Balances, Yields and Rates
| $000,000,000 | $000,000,000 | $000,000,000 | $000,000,000 | $000,000,000 | $000,000,000 | |||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||
| March 31, 2012 | December 31, 2011 | March 31, 2011 | ||||||||||||||||||||||
(in thousands) | Average Balance | Average Rate | Average Balance | Average Rate | Average Balance | Average Rate | ||||||||||||||||||
Earning Assets | ||||||||||||||||||||||||
Money market investments | $ | 349,652 | 0.25 | % | $ | 273,714 | 0.25 | % | $ | 416,756 | 0.25 | % | ||||||||||||
Investment securities: | ||||||||||||||||||||||||
Taxable | 2,548,390 | 2.72 | 2,481,094 | 3.00 | 2,313,467 | 3.39 | ||||||||||||||||||
Tax-exempt | 215,344 | 6.44 | 225,093 | 6.53 | 278,679 | 6.81 | ||||||||||||||||||
FHLB and Federal Reserve stock | 117,942 | 3.88 | 123,508 | 3.25 | 143,873 | 3.16 | ||||||||||||||||||
Portfolio loans: | ||||||||||||||||||||||||
Commercial and industrial | 1,573,933 | 5.61 | 1,539,811 | 5.32 | 1,422,574 | 4.59 | ||||||||||||||||||
Commercial real estate | 1,521,448 | 5.04 | 1,620,479 | 5.02 | 2,045,360 | 5.30 | ||||||||||||||||||
Residential mortgage | 627,721 | 4.31 | 647,491 | 4.55 | 741,818 | 4.76 | ||||||||||||||||||
Direct consumer | 920,030 | 5.89 | 943,445 | 5.98 | 1,024,979 | 6.12 | ||||||||||||||||||
Indirect consumer | 865,396 | 6.42 | 881,206 | 6.58 | 816,676 | 6.79 | ||||||||||||||||||
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Total portfolio loans | 5,508,528 | 5.48 | 5,632,432 | 5.45 | 6,051,407 | 5.40 | ||||||||||||||||||
Loans held for sale | 10,222 | 4.54 | 25,594 | 3.12 | 26,860 | 5.50 | ||||||||||||||||||
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Total earning assets | 8,750,078 | 4.47 | 8,761,435 | 4.59 | 9,231,042 | 4.67 | ||||||||||||||||||
Nonearning Assets | ||||||||||||||||||||||||
Cash and due from banks | 143,008 | 141,138 | 143,957 | |||||||||||||||||||||
Premises and equipment | 96,986 | 98,526 | 104,399 | |||||||||||||||||||||
Investment security fair value adjustment | 49,832 | 46,065 | 32,229 | |||||||||||||||||||||
Other nonearning assets | 653,991 | 666,183 | 682,526 | |||||||||||||||||||||
Allowance for loan losses | (172,509 | ) | (190,163 | ) | (295,232 | ) | ||||||||||||||||||
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Total assets | $ | 9,521,386 | $ | 9,523,184 | $ | 9,898,921 | ||||||||||||||||||
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Interest-Bearing Liabilities | ||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Interest-bearing demand deposits | $ | 973,664 | 0.17 | $ | 937,024 | 0.18 | $ | 951,770 | 0.23 | |||||||||||||||
Savings deposits | 2,708,522 | 0.28 | 2,645,821 | 0.31 | 2,629,296 | 0.40 | ||||||||||||||||||
Time deposits | 2,128,916 | 1.67 | 2,269,233 | 1.73 | 2,753,306 | 1.95 | ||||||||||||||||||
Short-term borrowings | 38,683 | 0.19 | 45,020 | 0.19 | 41,187 | 0.18 | ||||||||||||||||||
Long-term debt | 853,912 | 4.03 | 856,206 | 4.12 | 971,076 | 4.08 | ||||||||||||||||||
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Total interest-bearing liabilities | 6,703,697 | 1.18 | 6,753,304 | 1.25 | 7,346,635 | 1.44 | ||||||||||||||||||
Noninterest-Bearing Liabilities and Shareholders’ Equity | ||||||||||||||||||||||||
Noninterest-bearing demand | 1,630,591 | 1,600,059 | 1,395,588 | |||||||||||||||||||||
Other liabilities | 158,604 | 152,739 | 154,408 | |||||||||||||||||||||
Shareholders’ equity | 1,028,494 | 1,017,082 | 1,002,290 | |||||||||||||||||||||
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Total liabilities and shareholders’ equity | $ | 9,521,386 | $ | 9,523,184 | $ | 9,898,921 | ||||||||||||||||||
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Interest Spread | 3.29 | % | 3.33 | % | 3.23 | % | ||||||||||||||||||
Contribution of noninterest bearing sources of funds | 0.27 | 0.29 | 0.30 | |||||||||||||||||||||
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Net Interest Margin | 3.56 | % | 3.62 | % | 3.53 | % | ||||||||||||||||||
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12