| July 18, 2007 | |
| | |
| For media inquiries: | For financial inquiries: |
| Katherine Taylor | Don Wilson |
| Investor Relations Manager | Chief Financial Officer |
| 815-961-7164 | 815-961-2721 |
AMCORE Financial, Inc. Reports 2nd Quarter Earnings
(Numbers in Thousands, Except Per Share Data, Income from Continuing Operations)
| | | 2nd quarter 2007 | | 2nd quarter 2006 | | 1st quarter 2007 | |
| Net Revenues | | $ | 60,166 | | $ | 58,786 | | $ | 59,776 | |
| Net Income | | $ | 10,603 | | $ | 11,434 | | $ | 8,219 | |
| Diluted Shares | | | 23,098 | | | 24,758 | | | 23,804 | |
| Diluted EPS | | $ | 0.46 | | $ | 0.46 | | $ | 0.35 | |
ROCKFORD, IL — AMCORE Financial, Inc. (Nasdaq: AMFI) reported diluted earnings per share from continuing operations of $0.46 for second quarter 2007, which was flat compared to second quarter 2006, and an increase of 31 percent from $0.35 in the previous quarter. Net income from continuing operations in the second quarter of 2007 was $10.6 million, a seven percent decrease from $11.4 million in the prior-year period, and a 29 percent increase from $8.2 million in the previous quarter.
“Our earnings per share showed improvement from the prior quarter as the Company experienced lower expenses, an increase in net revenues and increased loan growth,” said Kenneth E. Edge, Chairman, President and CEO of AMCORE. “Our markets remain strong and our core performance is improving.”
Highlights
| | · | Net interest income was $40.7 million or 3.39 percent of average earning assets in second quarter 2007 compared to $41.3 million or 3.40 percent in second quarter 2006, and $40.4 million or 3.38 percent in first quarter 2007. |
| | · | Average loan balances grew five percent, or $186 million, compared to second quarter 2006, while average investment securities declined 24 percent or $277 million. Bank issued deposits decreased one percent compared to second quarter 2006 and first quarter 2007. |
| | · | Non-interest income increased 11 percent or $2.0 million compared to second quarter 2006 and was flat compared to first quarter 2007. First quarter included the $2.4 million gain on the sale of the Originated Mortgage Servicing Rights portfolio and second quarter 2007 included $1.4 million of earnings from CRA-related fund investments. |
| | · | Provision for loan losses was $4.2 million and net charge-offs were 0.48 percent of average loans on an annualized basis compared to $2.3 million and 0.25 percent in second quarter 2006 and $3.2 million and 0.28 percent in first quarter 2007, respectively. |
| - | Non-performing loans increased $8.7 million from June 30, 2006 and increased $675,000 from March 31, 2007. |
| - | Net charge-offs increased $2.4 million compared to the same period a year ago and increased $2.0 million compared to first quarter 2007. The increase was due primarily to a $2 million charge-off of a single credit that had been on non-accrual since second quarter 2006. The remainder of the credit remains in non-accrual pending resolution. |
| | · | Total operating expenses increased one percent, or $290,000, compared to second quarter 2006, and decreased 10 percent, or $4.4 million, compared to first quarter 2007. First quarter 2007 included a $2.3 million debt extinguishment charge and $1.3 million employment-related charges. |
Revenues
Net revenues increased two percent, or $1.4 million, to $60.2 million in second quarter 2007 from $58.8 million during the same quarter a year ago, and one percent, or $390,000, from $59.8 million in the previous quarter.
Net interest income decreased one percent, or $602,000, to $40.7 million in second quarter 2007 from $41.3 million during the same quarter a year ago, and increased one percent, or $322,000, from $40.4 million in the previous quarter. The net interest margin decreased one basis point to 3.39 percent in second quarter 2007 from 3.40 percent in second quarter 2006, and increased one basis point compared to first quarter 2007.
Average loan balances grew five percent, or $186 million, compared to second quarter 2006 and increased one percent, or $43 million compared to the previous quarter. Ending loan balances for second quarter 2007 were $23 million higher than average balances indicating stronger activity at quarter end. Loan yields rose 29 basis points to 7.77 percent compared to the same period a year ago and were flat compared to the previous quarter.
Average bank issued deposits totaled $3.5 billion, which decreased one percent compared to a year ago and to the previous quarter. Ending bank issued deposit balances for second quarter 2007 were $39 million higher than average balances indicating stronger activity at the end of the quarter. The total cost of bank issued deposits increased 55 basis points from second quarter 2006, and three basis points from first quarter 2007.
Total non-interest income increased 11 percent or $2.0 million compared to second quarter 2006 and was flat compared to first quarter 2007. The first quarter 2007 non-interest revenues included the $2.4 million gain on the sale of the Originated Mortgage Servicing Rights portfolio and second quarter 2007 included $1.4 million in earnings from CRA-related fund investments.
Investment management and trust revenues decreased $299,000, or eight percent, from second quarter 2006 and decreased $409,000, or 10 percent, from first quarter 2007. Deposit-related fees and bankcard fees increased $831,000 and $432,000 or 13 percent and 29 percent respectively, when compared to first quarter 2006. When compared to the previous quarter, deposit related fees increased $1.1 million, or 17 percent, and bankcard fees increased $87,000, or five percent.
Income from company-owned life insurance increased $98,000, or nine percent, when compared to second quarter 2006, and increased $293,000, or 31 percent, when compared to first quarter 2007.
Net mortgage revenues decreased 44 percent, or $465,000, in second quarter 2007 compared to the same period a year ago, and decreased 36 percent, or $330,000, from first quarter 2007. The decline for both periods was primarily due to a decline in servicing revenues due to the January sale of the Originated Mortgage Servicing Rights portfolio, for which AMCORE previously recognized a gain.
Other non-interest income increased $1.1 million from second quarter 2006 and decreased $768,000 from first quarter 2007. Second quarter 2007 included earnings from CRA-related fund investments and first quarter 2007 included the gain from the sale of the Originated Mortgage Servicing Rights portfolio.
Operating Expenses
Total operating expenses increased one percent, or $290,000, compared to second quarter 2006, and decreased 10 percent, or $4.4 million, compared to first quarter 2007. The first quarter included some non-recurring items including $2.3 million in debt extinguishment expenses from the redemption of trust preferred securities and $1.3 million in employment related expenses.
Professional fees decreased $751,000, or 28 percent, compared to the same quarter a year ago, and decreased one percent, or $25,000, from first quarter 2007. The decrease from second quarter 2006 is due to a decline in professional fees related to compliance matters and lower outsourced internal audit costs.
The efficiency ratio was 67.39 percent compared to 68.48 percent for the same period in 2006 and 75.25 percent in the prior quarter.
Income Taxes
Income taxes, as a percentage of pre-tax income from continuing operations, were 31.1 percent in the second quarter 2007, compared to 29.8 percent in the second quarter 2006 and 29.2 percent in the first quarter 2007. The increase in percentage in second quarter 2007 compared to both second quarter 2006 and first quarter 2007 was due to a lower proportion of tax-exempt earnings to total earnings before tax.
Other Key Performance Ratios
Other key ratios include a five basis point decrease in return on average assets to 0.81 percent in second quarter 2007 compared to 0.86 percent during the prior-year period and an 18 basis point increase from 0.63 percent in the previous quarter. Return on average equity decreased 53 basis points to 10.99 percent in second quarter 2007 compared to 11.52 percent in second quarter 2006 and increased 265 basis points from 8.34 percent in first quarter 2007.
Asset Quality & Loan Loss
The percentage of total non-performing assets to total assets was 0.78 percent at June 30, 2007, up from 0.57 percent at June 30, 2006 and 0.73 percent at March 31, 2007. Net charge-offs were $4.8 million, an increase of $2.4 million from second quarter 2006 and an increase of $2.0 million from first quarter 2007. Net charge-offs were 48 basis points of average loans on an annualized basis during second quarter 2007, compared to 25 basis points for second quarter 2006 and 28 basis points for first quarter 2007. The increase in net charge-offs was due mainly to the partial write-down of one large commercial credit that was placed on non-accrual status during second quarter 2006. The remainder of the loan relationship remains in non-accrual pending final resolution.
Provision for loan losses of $4.2 million in second quarter 2007 increased $2.0 million, or 88 percent, from the $2.3 million in second quarter 2006 and increased 33 percent, or $1.0 million, from first quarter 2007.
Buy-back Update
During second quarter 2007, 668,000 shares were repurchased at an average price of $30.36 in connection with the Company’s stock buy-back program. AMCORE had 22,922,000 ending shares outstanding at June 30, 2007 compared to 24,581,000 ending shares at June 30, 2006 and 23,507,000 ending shares at March 31, 2007.
AMCORE Financial, Inc. is headquartered in Northern Illinois and has banking assets of $5.3 billion with 78 locations in Illinois and Wisconsin. AMCORE provides a full range of consumer and commercial banking services, a variety of mortgage lending products and wealth management services including trust, brokerage, private banking, financial planning, investment management, insurance and comprehensive retirement plan services.
This news release contains, and our periodic filings with the Securities and Exchange Commission and written or oral statements made by the Company’s officers and directors to the press, potential investors, securities analysts and others will contain, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934, and the Company intends that such forward-looking statements be subject to the safe harbors created thereby with respect to, among other things, the financial condition, results of operations, plans, objectives, future performance and business of AMCORE. Statements that are not historical facts, including statements about beliefs and expectations, are forward-looking statements. These statements are based upon beliefs and assumptions of AMCORE’s management and on information currently available to such management. The use of the words “believe”, “expect”, “anticipate”, “plan”, “estimate”, “should”, “may”, “will” or similar expressions identify forward-looking statements. Forward-looking statements speak only as of the date they are made, and AMCORE undertakes no obligation to update publicly any forward-looking statements in light of new information or future events.
Contemplated, projected, forecasted or estimated results in such forward-looking statements involve certain inherent risks and uncertainties. A number of factors - many of which are beyond the ability of the Company to control or predict - could cause actual results to differ materially from those in its forward-looking statements. These factors include, among others, the following possibilities: (I) heightened competition, including specifically the intensification of price competition, the entry of new competitors and the formation of new products by new or existing competitors; (II) adverse state, local and federal legislation and regulation or adverse findings or rulings made by local, state or federal regulators or agencies regarding AMCORE and its operations ; (III) failure to obtain new customers and retain existing customers; (IV) inability to carry out marketing and/or expansion plans; (V) ability to attract and retain key executives or personnel; (VI) changes in interest rates including the effect of prepayment; (VII) general economic and business conditions which are less favorable than expected; (VIII) equity and fixed income market fluctuations; (IX) unanticipated changes in industry trends; (X) unanticipated changes in credit quality and risk factors; (XI) success in gaining regulatory approvals when required; (XII) changes in Federal Reserve Board monetary policies; (XIII) unexpected outcomes on existing or new litigation in which AMCORE, its subsidiaries, officers, directors or employees are named defendants; (XIV) technological changes; (XV) changes in U.S. generally accepted accounting principles; (XVI) changes in assumptions or conditions affecting the application of “critical accounting estimates”; (XVII) inability of third-party vendors to perform critical services for the Company or its customers; (XVIII) disruption of operations caused by the conversion and installation of data processing systems, and (XIX) zoning restrictions or other limitations at the local level, which could prevent limited branch offices from transitioning to full-service facilities.
AMCORE common stock is listed on The NASDAQ Stock Market under the symbol “AMFI.” Further information about AMCORE Financial, Inc. can be found at the Company’s website at www.AMCORE.com.
CONSOLIDATED FINANCIAL SUMMARY
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($ in 000’s except per share data) | | 2nd Qtr. | | 1st Qtr. | | 4th Qtr. | | 3rd Qtr. | | 2nd Qtr. | | 2Q/1Q | | 2Q 07/06 | |
SHARE DATA | | 2007 | | 2007 | | 2006 | | 2006 | | 2006 | | Inc(Dec) | | Inc(Dec) | |
| Diluted earnings per share: | | | | | | | | | | | | | | | |
| Income from continuing operations | | $ | 0.46 | | $ | 0.35 | | $ | 0.53 | | $ | 0.51 | | $ | 0.46 | | | 31 | % | | 0 | % |
| Net income | | $ | 0.46 | | $ | 0.35 | | $ | 0.54 | | $ | 0.51 | | $ | 0.46 | | | 31 | % | | 0 | % |
| Cash dividends | | $ | 0.185 | | $ | 0.185 | | $ | 0.185 | | $ | 0.185 | | $ | 0.185 | | | 0 | % | | 0 | % |
| Book value | | $ | 16.58 | | $ | 16.89 | | $ | 16.81 | | $ | 16.73 | | $ | 16.06 | | | (2 | %) | | 3 | % |
| Average diluted shares outstanding | | | 23,098 | | | 23,804 | | | 24,052 | | | 24,477 | | | 24,758 | | | (3 | %) | | (7 | %) |
| Ending shares outstanding | | | 22,922 | | | 23,507 | | | 23,792 | | | 24,277 | | | 24,581 | | | (2 | %) | | (7 | %) |
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INCOME STATEMENT | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Total Interest Income | | $ | 86,817 | | $ | 85,742 | | $ | 88,090 | | $ | 87,525 | | $ | 83,567 | | | 1 | % | | 4 | % |
| Total Interest Expense | | | 46,099 | | | 45,346 | | | 47,032 | | | 46,375 | | | 42,247 | | | 2 | % | | 9 | % |
Net interest income | | | 40,718 | | | 40,396 | | | 41,058 | | | 41,150 | | | 41,320 | | | 1 | % | | (1 | %) |
| | | | | | | | | | | | | | | | | | | | | | | |
Provision for loan losses | | | 4,227 | | | 3,179 | | | 3,007 | | | 2,863 | | | 2,250 | | | 33 | % | | 88 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Non-interest income: | | | | | | | | | | | | | | | | | | | | | | |
| Investment management & trust | | | 3,671 | | | 4,080 | | | 4,383 | | | 4,182 | | | 3,970 | | | (10 | %) | | (8 | %) |
| Service charges on deposits | | | 7,436 | | | 6,329 | | | 6,536 | | | 6,931 | | | 6,605 | | | 17 | % | | 13 | % |
| Net mortgage revenues | | | 596 | | | 926 | | | 862 | | | 762 | | | 1,061 | | | (36 | %) | | (44 | %) |
| Company owned life insurance | | | 1,247 | | | 954 | | | 2,943 | | | 2,870 | | | 1,149 | | | 31 | % | | 9 | % |
| Brokerage commission | | | 1,191 | | | 863 | | | 821 | | | 700 | | | 744 | | | 38 | % | | 60 | % |
| Bankcard fee income | | | 1,947 | | | 1,860 | | | 1,663 | | | 1,690 | | | 1,515 | | | 5 | % | | 29 | % |
| Gain on sale of loans | | | 1 | | | 241 | | | 150 | | | 116 | | | 149 | | | (100 | %) | | (99 | %) |
| Net security gain | | | — | | | — | | | 42 | | | — | | | — | | | 0 | % | | 0 | % |
| Other | | | 3,359 | | | 4,127 | | | 3,864 | | | 3,909 | | | 2,273 | | | (19 | %) | | 48 | % |
Total non-interest income | | | 19,448 | | | 19,380 | | | 21,264 | | | 21,160 | | | 17,466 | | | 0 | % | | 11 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Operating expenses: | | | | | | | | | | | | | | | | | | | | | | |
| Personnel costs | | | 23,998 | | | 26,460 | | | 25,245 | | | 23,274 | | | 24,315 | | | (9 | %) | | (1 | %) |
| Net occupancy & equipment | | | 5,852 | | | 6,316 | | | 5,581 | | | 5,533 | | | 4,892 | | | (7 | %) | | 20 | % |
| Data processing | | | 955 | | | 687 | | | 779 | | | 674 | | | 790 | | | 39 | % | | 21 | % |
| Professional fees | | | 1,904 | | | 1,929 | | | 2,214 | | | 2,743 | | | 2,655 | | | (1 | %) | | (28 | %) |
| Communication | | | 1,270 | | | 1,323 | | | 1,231 | | | 1,379 | | | 1,220 | | | (4 | %) | | 4 | % |
| Advertising & business development | | | 835 | | | 1,137 | | | 2,059 | | | 1,789 | | | 1,838 | | | (27 | %) | | (55 | %) |
| Other | | | 5,734 | | | 7,130 | | | 5,140 | | | 7,076 | | | 4,548 | | | (20 | %) | | 26 | % |
Total operating expenses | | | 40,548 | | | 44,982 | | | 42,249 | | | 42,468 | | | 40,258 | | | (10 | %) | | 1 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
Income from continuing operations before income taxes | | | 15,391 | | | 11,615 | | | 17,066 | | | 16,979 | | | 16,278 | | | 33 | % | | (5 | %) |
| Income taxes | | | 4,788 | | | 3,396 | | | 4,437 | | | 4,474 | | | 4,844 | | | 41 | % | | (1 | %) |
Income from continuing operations | | | 10,603 | | | 8,219 | | | 12,629 | | | 12,505 | | | 11,434 | | | 29 | % | | (7 | %) |
| Discontinued operations: | | | | | | | | | | | | | | | | | | | | | | |
| Loss from discontinued operations | | | — | | | — | | | — | | | — | | | (18 | ) | | N/M | | | N/M | |
| Income tax benefit | | | — | | | — | | | (328 | ) | | — | | | (7 | ) | | N/M | | | N/M | |
| | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) from discontinued operations | | | — | | | — | | | 328 | | | — | | | (11 | ) | | N/M | | | N/M | |
Net Income | | $ | 10,603 | | $ | 8,219 | | $ | 12,957 | | $ | 12,505 | | $ | 11,423 | | | 29 | % | | (7 | %) |
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| | | | 2nd Qtr. | | | 1st Qtr. | | | 4th Qtr. | | | 3rd Qtr. | | | 2nd Qtr. | | | Basis Point | | | Basis Point | |
KEY RATIOS AND DATA | | | 2007 | | | 2007 | | | 2006 | | | 2006 | | | 2006 | | | Change | | | Change | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Net interest margin (FTE) | | | 3.39 | % | | 3.38 | % | | 3.34 | % | | 3.33 | % | | 3.40 | % | | 1 | | | (1 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
| Return on average assets (1) | | | 0.81 | % | | 0.63 | % | | 0.93 | % | | 0.92 | % | | 0.86 | % | | 18 | | | (5 | ) |
| Return on average equity (1) | | | 10.99 | % | | 8.34 | % | | 12.51 | % | | 12.38 | % | | 11.52 | % | | 265 | | | (53 | ) |
| Efficiency ratio (1) | | | 67.39 | % | | 75.25 | % | | 67.79 | % | | 68.16 | % | | 68.48 | % | | (786 | ) | | (109 | ) |
| Equity/assets (end of period) | | | 7.17 | % | | 7.54 | % | | 7.56 | % | | 7.46 | % | | 7.28 | % | | (37 | ) | | (11 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
| Allowance to loans (end of period) | | | 1.01 | % | | 1.04 | % | | 1.04 | % | | 1.03 | % | | 1.05 | % | | (3 | ) | | (4 | ) |
| Allowance to non-accrual loans | | | 132.69 | % | | 136.59 | % | | 136.16 | % | | 140.36 | % | | 165.29 | % | | (4 | ) | | (33 | ) |
| Allowance to non-performing loans | | | 107.97 | % | | 111.55 | % | | 126.42 | % | | 134.93 | % | | 139.79 | % | | (4 | ) | | (32 | ) |
| Non-accrual loans to loans | | | 0.76 | % | | 0.76 | % | | 0.76 | % | | 0.73 | % | | 0.63 | % | | 0 | | | 13 | |
| Non-performing assets to total assets | | | 0.78 | % | | 0.73 | % | | 0.64 | % | | 0.59 | % | | 0.57 | % | | 5 | | | 21 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| (in millions) | | | | | | | | | | | | | | | | | | | | | | |
| Total assets under administration | | $ | 2,817 | | $ | 2,711 | | $ | 2,671 | | $ | 2,627 | | $ | 2,532 | | | 4 | % | | 11 | % |
| Mortgage loans closed | | $ | 81 | | $ | 74 | | $ | 84 | | $ | 111 | | $ | 120 | | | 9 | % | | (33 | %) |
| Mortgage servicing rights, net | | $ | 1.2 | | $ | 0.7 | | $ | 14.3 | | $ | 14.2 | | $ | 13.9 | | | 77 | % | | (91 | %) |
| Percentage of mortgage loans serviced | | | 1.07 | % | | 1.07 | % | | 0.97 | % | | 0.98 | % | | 0.98 | % | | 0 | | | 9 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| N/M = not meaningful | | | | | | | | | | | | | | | | | | | | | | |
| (1) Ratios from continuing operations | | | | | | | | | | | | | | | | | | | | | | |
(Unaudited)
| | | | | | | | | | | | | | | | | | |
| ($ in 000’s) | | 2nd Qtr. | | 1st Qtr. | | 4th Qtr. | | 3rd Qtr. | | 2nd Qtr. | | 2Q/1Q | | 2Q 07/06 | | Ending | |
AVERAGE BALANCE SHEET | | 2007 | | 2007 | | 2006 | | 2006 | | 2006 | | Inc(Dec) | | Inc(Dec) | | Balances | |
Assets: | | | | | | | | | | | | | | | | | |
| Investment securities | | $ | 868,713 | | $ | 897,511 | | $ | 1,037,355 | | $ | 1,105,999 | | $ | 1,145,757 | | | (3 | %) | | (24 | %) | $ | 835,469 | |
| Short-term investments | | | 3,584 | | | 19,127 | | | 7,672 | | | 6,005 | | | 6,570 | | | (81 | %) | | (45 | %) | | 2,218 | |
| Loans held for sale | | | 13,477 | | | 12,305 | | | 14,983 | | | 27,036 | | | 26,420 | | | 10 | % | | (49 | %) | | 13,850 | |
| Loans: Commercial | | | 809,739 | | | 803,570 | | | 806,679 | | | 820,647 | | | 832,541 | | | 1 | % | | (3 | %) | | 814,060 | |
| Commercial real estate | | | 2,389,201 | | | 2,354,882 | | | 2,322,050 | | | 2,269,703 | | | 2,190,746 | | | 1 | % | | 9 | % | | 2,418,780 | |
| Residential real estate | | | 495,046 | | | 498,427 | | | 506,514 | | | 495,917 | | | 479,585 | | | (1 | %) | | 3 | % | | 479,446 | |
| Consumer | | | 312,404 | | | 306,268 | | | 311,643 | | | 317,455 | | | 317,362 | | | 2 | % | | (2 | %) | | 317,381 | |
| Total loans | | $ | 4,006,390 | | $ | 3,963,147 | | $ | 3,946,886 | | $ | 3,903,722 | | $ | 3,820,234 | | | 1 | % | | 5 | % | $ | 4,029,667 | |
| Total earning assets | | $ | 4,892,164 | | $ | 4,892,090 | | $ | 5,006,896 | | $ | 5,042,762 | | $ | 4,998,981 | | | 0 | % | | (2 | %) | $ | 4,881,204 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Allowance for loan losses | | | (43,069 | ) | | (41,653 | ) | | (41,917 | ) | | (41,503 | ) | | (41,532 | ) | | 3 | % | | 4 | % | | (40,714 | ) |
| Other non-earning assets | | | 416,167 | | | 405,283 | | | 409,788 | | | 403,450 | | | 398,946 | | | 3 | % | | 4 | % | | 462,245 | |
| Total assets | | $ | 5,265,262 | | $ | 5,255,720 | | $ | 5,374,767 | | $ | 5,404,709 | | $ | 5,356,395 | | | 0 | % | | (2 | %) | $ | 5,302,735 | |
Liabilities and Stockholders’ Equity: | | | | | | | | | | | | | | | | | | | | | | | | | |
| Non interest bearing deposits | | $ | 502,813 | | $ | 492,766 | | $ | 504,960 | | $ | 484,502 | | $ | 486,103 | | | 2 | % | | 3 | % | $ | 543,122 | |
| Interest bearing deposits | | | 1,786,600 | | | 1,784,489 | | | 1,760,241 | | | 1,716,174 | | | 1,779,003 | | | 0 | % | | 0 | % | | 1,804,439 | |
| Time deposits | | | 1,161,978 | | | 1,199,365 | | | 1,217,385 | | | 1,246,157 | | | 1,237,080 | | | (3 | %) | | (6 | %) | | 1,142,367 | |
| Total bank issued deposits | | $ | 3,451,391 | | $ | 3,476,620 | | $ | 3,482,586 | | $ | 3,446,833 | | $ | 3,502,186 | | | (1 | %) | | (1 | %) | $ | 3,489,928 | |
| Wholesale deposits | | | 648,270 | | | 746,629 | | | 807,470 | | | 790,629 | | | 703,222 | | | (13 | %) | | (8 | %) | | 656,061 | |
| Short-term borrowings | | | 323,911 | | | 157,511 | | | 286,422 | | | 327,337 | | | 349,648 | | | 106 | % | | (7 | %) | | 301,075 | |
| Long-term borrowings | | | 389,008 | | | 406,936 | | | 328,591 | | | 372,472 | | | 340,833 | | | (4 | %) | | 14 | % | | 416,531 | |
| Total wholesale funding | | $ | 1,361,189 | | $ | 1,311,076 | | $ | 1,422,483 | | $ | 1,490,438 | | $ | 1,393,703 | | | 4 | % | | (2 | %) | $ | 1,373,667 | |
| Total interest bearing liabilities | | | 4,309,767 | | | 4,294,930 | | | 4,400,109 | | | 4,452,769 | | | 4,409,786 | | | 0 | % | | (2 | %) | | 4,320,473 | |
| Other liabilities | | | 65,784 | | | 68,126 | | | 69,290 | | | 66,608 | | | 62,286 | | | (3 | %) | | 6 | % | | 59,034 | |
| Total liabilities | | $ | 4,878,364 | | $ | 4,855,822 | | $ | 4,974,359 | | $ | 5,003,879 | | $ | 4,958,175 | | | 0 | % | | (2 | %) | $ | 4,922,629 | |
| Stockholders’ equity | | | 396,666 | | | 411,131 | | | 412,003 | | | 420,177 | | | 418,307 | | | (4 | %) | | (5 | %) | | 394,092 | |
| Other comprehensive loss | | | (9,768 | ) | | (11,233 | ) | | (11,595 | ) | | (19,347 | ) | | (20,087 | ) | | (13 | %) | | (51 | %) | | (13,986 | ) |
| Total stockholders’ equity | | | 386,898 | | | 399,898 | | | 400,408 | | | 400,830 | | | 398,220 | | | (3 | %) | | (3 | %) | | 380,106 | |
| Total liabilities & stockholders’ equity | | $ | 5,265,262 | | $ | 5,255,720 | | $ | 5,374,767 | | $ | 5,404,709 | | $ | 5,356,395 | | | 0 | % | | (2 | %) | $ | 5,302,735 | |
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| CREDIT QUALITY | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ending allowance for loan losses | | $ | 40,714 | | $ | 41,308 | | $ | 40,913 | | $ | 40,626 | | $ | 40,560 | | | (1 | %) | | 0 | % | | | |
| Net charge-offs | | | 4,821 | | | 2,784 | | | 2,720 | | | 2,797 | | | 2,423 | | | 73 | % | | 99 | % | | | |
| Net charge-offs to avg loans (annualized) | | | 0.48 | % | | 0.28 | % | | 0.27 | % | | 0.28 | % | | 0.25 | % | | 71 | % | | 92 | % | | | |
| Non-performing assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
| Non-accrual loans | | $ | 30,683 | | $ | 30,242 | | $ | 30,048 | | $ | 28,945 | | $ | 24,539 | | | 1 | % | | 25 | % | | | |
| Loans 90 days past due & still accruing | | | 7,024 | | | 6,790 | | | 2,315 | | | 1,164 | | | 4,476 | | | 3 | % | | 57 | % | | | |
| Total non-performing loans | | | 37,707 | | | 37,032 | | | 32,363 | | | 30,109 | | | 29,015 | | | 2 | % | | 30 | % | | | |
| Foreclosed real estate | | | 3,553 | | | 1,205 | | | 1,247 | | | 1,540 | | | 1,025 | | | 195 | % | | 247 | % | | | |
| Other foreclosed assets | | | 164 | | | 231 | | | 317 | | | 483 | | | 681 | | | (29 | %) | | (76 | %) | | | |
| Total non-performing assets | | $ | 41,424 | | $ | 38,468 | | $ | 33,927 | | $ | 32,132 | | $ | 30,721 | | | 8 | % | | 35 | % | | | |
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YIELD AND RATE ANALYSIS | | | | | | | | | | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investment securities (FTE) | | | 4.42 | % | | 4.43 | % | | 4.54 | % | | 4.55 | % | | 4.52 | % | | | | | | | | | |
| Short-term investments | | | 6.27 | % | | 5.64 | % | | 5.66 | % | | 5.73 | % | | 5.31 | % | | | | | | | | | |
| Loans held for sale | | | 5.68 | % | | 4.86 | % | | 5.61 | % | | 5.70 | % | | 5.16 | % | | | | | | | | | |
| Loans: Commercial | | | 8.27 | % | | 8.23 | % | | 8.08 | % | | 8.12 | % | | 7.87 | % | | | | | | | | | |
| Commercial real estate | | | 7.76 | % | | 7.80 | % | | 7.83 | % | | 7.75 | % | | 7.56 | % | | | | | | | | | |
| Residential real estate | | | 7.03 | % | | 7.05 | % | | 7.00 | % | | 6.97 | % | | 6.78 | % | | | | | | | | | |
| Consumer | | | 7.69 | % | | 7.53 | % | | 7.41 | % | | 7.16 | % | | 6.95 | % | | | | | | | | | |
| Total loans (FTE) | | | 7.77 | % | | 7.77 | % | | 7.74 | % | | 7.68 | % | | 7.48 | % | | | | | | | | | |
| Total interest earning assets (FTE) | | | 7.17 | % | | 7.14 | % | | 7.07 | % | | 6.98 | % | | 6.79 | % | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest bearing deposits | | | 3.30 | % | | 3.25 | % | | 3.18 | % | | 3.05 | % | | 2.82 | % | | | | | | | | | |
| Time deposits | | | 4.69 | % | | 4.65 | % | | 4.57 | % | | 4.31 | % | | 3.98 | % | | | | | | | | | |
| Total bank issued deposits | | | 3.85 | % | | 3.82 | % | | 3.75 | % | | 3.58 | % | | 3.30 | % | | | | | | | | | |
| Wholesale deposits | | | 5.11 | % | | 5.16 | % | | 5.10 | % | | 4.98 | % | | 4.70 | % | | | | | | | | | |
| Short-term borrowings | | | 5.09 | % | | 4.85 | % | | 5.10 | % | | 4.92 | % | | 4.72 | % | | | | | | | | | |
| Long-term borrowings | | | 5.62 | % | | 5.85 | % | | 5.86 | % | | 6.04 | % | | 6.03 | % | | | | | | | | | |
| Total wholesale funding | | | 5.25 | % | | 5.34 | % | | 5.27 | % | | 5.23 | % | | 5.03 | % | | | | | | | | | |
| Total interest bearing liabilities | | | 4.29 | % | | 4.28 | % | | 4.24 | % | | 4.13 | % | | 3.84 | % | | | | | | | | | |
| Net interest spread | | | 2.88 | % | | 2.86 | % | | 2.83 | % | | 2.85 | % | | 2.95 | % | | | | | | | | | |
| Net interest margin (FTE) | | | 3.39 | % | | 3.38 | % | | 3.34 | % | | 3.33 | % | | 3.40 | % | | | | | | | | | |
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| FTE adjustment (000’s) | | $ | 619 | | $ | 608 | | $ | 974 | | $ | 1,054 | | $ | 1,070 | | | | | | | | | | |
