| Oct. 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 3rd Quarter Earnings
(Numbers in Thousands, Except Per Share Data, Income from Continuing Operations)
| | 3rd quarter 2007 | 3rd quarter 2006 | 2nd quarter 2007 |
| Net Revenues | $54,396 | $62,310 | $60,166 |
| Net Income | $ 1,889 | $12,505 | $10,603 |
| Diluted Shares | 22,666 | 24,498 | 23,098 |
| Diluted EPS | $0.08 | $0.51 | $0.46 |
ROCKFORD, Ill., Oct. 18 /PRNewswire-FirstCall/ -- AMCORE Financial, Inc. (Nasdaq: AMFI) announced today that it would increase its third quarter 2007 provision for loan losses by $11.1 million over the previous quarter’s $4.2 million. In addition, the Company is taking a $5.6 million impairment loss on the pending sale of $205 million in longer-term mortgage-backed bonds from its investment portfolio. "Both actions are expected to strengthen the Company by recognizing current market realities," said Kenneth E. Edge, Chairman and CEO of AMCORE.
Diluted earnings per share from continuing operations were $0.08 for third quarter 2007, which was a decrease from $0.51 in third quarter 2006, and $0.46 in the previous quarter. Net income from continuing operations in the third quarter of 2007 was $1.9 million, a decrease from $12.5 million in the prior-year period and $10.6 million in the previous quarter.
“This increase in our reserves recognizes the general softening of the economy and real estate conditions across our markets,” said Edge. “The sale of the bonds relates to a balance sheet restructuring that reduces longer-term interest rate and liquidity risk in our investment portfolio. By addressing this issue at this time, we are expecting to improve our ability to weather changes in interest rates. It is important to note that AMCORE remains well-capitalized and that neither action is related to any subprime loans or investments.”
Highlights
| · | Provision for loan losses was $15.3 million, a $12.4 million increase from $2.9 million in third quarter 2006 and an $11.1 million increase from $4.2 million in second quarter 2007. |
| - | Net charge-offs were $4.5 million, or 0.45 percent of average loans on an annualized basis, compared to $2.8 million and 0.28 percent in third quarter 2006 and $4.8 million or 0.48 percent in second quarter 2007, respectively. |
| - | Non-performing loans were $41.2 million, an increase of $11.1 million from September 30, 2006 and $3.5 million from June 30, 2007. Non-performing loans include $27.6 million of non-accrual loans and $13.6 million of loans 90 days past due and still accruing. |
| | · | Net interest income was $40.4 million or 3.35 percent of average earning assets in third quarter 2007 compared to $41.2 million or 3.33 percent in third quarter 2006, and $40.7 million or 3.39 percent in second quarter 2007. |
| | · | Average loan balances grew two percent, or $91 million, compared to third quarter 2006, while average investment securities declined 22 percent or $246 million. Bank issued deposits were essentially flat at $3.4 billion compared to the third quarter 2006. |
| | · | Non-interest income decreased 34 percent, or $7.1 million, compared to third quarter 2006 and decreased 28 percent, or $5.4 million, compared to second quarter 2007. Third quarter 2007 included a $5.6 million impairment loss on investment securities and lower CRA-related fund investment earnings compared to third quarter 2006. |
| | · | Total operating expenses decreased eight percent, or $3.4 million, compared to third quarter 2006, and decreased four percent, or $1.5 million, compared to second quarter 2007. |
Revenues
Net revenues decreased 13 percent, or $7.9 million, to $54.4 million in third quarter 2007 from $62.3 million during the same quarter a year ago, and 10 percent, or $5.8 million, from $60.2 million in the previous quarter.
Net interest income decreased two percent, or $779,000, to $40.4 million in third quarter 2007 from $41.2 million during the same quarter a year ago, and decreased one percent, or $347,000, from $40.7 million in the previous quarter. The net interest margin increased two basis points to 3.35 percent in third quarter 2007 from 3.33 percent in third quarter 2006, and decreased four basis points compared to second quarter 2007.
Average loan balances grew two percent, or $91 million, compared to third quarter 2006 and were essentially flat compared to the previous quarter. Ending loan balances for third quarter 2007 were $51 million lower than average balances as run-off exceeded new loan growth. Loan yields rose nine 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 $3.4 billion, which were essentially flat compared to a year ago and to the previous quarter. Ending bank issued deposit balances for third quarter 2007 were $57 million higher than average balances indicating stronger activity at the end of the quarter. The total cost of bank issued deposits increased 34 basis points from third quarter 2006, and seven basis points from second quarter 2007.
Total non-interest income decreased 34 percent, or $7.1 million, compared to third quarter 2006 and decreased 28 percent, or $5.4 million, compared to second quarter 2007. Third quarter 2007 included a $5.6 million impairment loss on investment securities and lower CRA-related fund investment earnings compared to both third quarter 2006 and second quarter 2007.
Investment management and trust revenues increased $337,000, or eight percent, from third quarter 2006 and increased $848,000, or 23 percent, from second quarter 2007. Deposit-related fees and bankcard fees increased $921,000 and $305,000 or 13 percent and 18 percent respectively, when compared to third quarter 2006. When compared to the previous quarter, deposit related fees increased $416,000, or six percent, and bankcard fees increased $48,000, or two percent.
Income from company-owned life insurance decreased $1.1 million or 39 percent, when compared to third quarter 2006, and increased $500,000, or 40 percent, when compared to second quarter 2007. Third quarter 2006 included a $1.3 million net insurance claim.
Net mortgage revenues decreased 58 percent, or $445,000, in third quarter 2007 compared to the same period a year ago, and decreased 47 percent, or $279,000, from second quarter 2007. The decline for both periods was primarily due to a decline in servicing revenues due to the sale of the Originated Mortgage Servicing Rights portfolio.
Other non-interest income decreased $1.8 million from third quarter 2006 and decreased $1.3 million from second quarter 2007. The decline from third quarter 2006 was largely due to lower earnings from CRA-related fund investments, while the decline from second quarter 2007 was primarily due to derivative mark-to-market losses in the current quarter compared to income in the previous quarter.
Operating Expenses
Total operating expenses decreased eight percent, or $3.4 million, compared to third quarter 2006, and decreased four percent, or $1.5 million, compared to second quarter 2007. Third quarter 2006 included $2.1 million of expense related to the extinguishment of Federal Home Loan Bank advances.
Professional fees decreased $240,000, or nine percent, compared to the same quarter a year ago, and increased 31 percent, or $599, 000, from second quarter 2007. The increase from the previous quarter was due to consultant fees to improve the Company’s compliance program.
The efficiency ratio was 71.81 percent compared to 68.16 percent for the same period in 2006 and 67.39 percent in the prior quarter.
Income Taxes
Income taxes, as a percentage of pre-tax income from continuing operations, were 23.5 percent for year-to-date period ending September 30, 2007, compared to 28.3 percent in the same period a year ago. The decline is due to a lower proportion of taxable versus tax-exempt income in the 2007 year-to-date period compared to the same period in 2006.
Other Key Performance Ratios
Other key ratios include return on average assets of 0.14 percent in third quarter 2007 compared to 0.92 percent during the prior-year period and 0.81 percent in the previous quarter. Return on average equity was 1.97 percent in third quarter 2007 compared to 12.38 percent in third quarter 2006 and 10.99 percent in second quarter 2007.
Asset Quality & Loan Loss
The percentage of total non-performing assets to total assets was 0.89 percent at September 30, 2007, up from 0.59 percent at September 30, 2006 and 0.78 percent at June 30, 2007. Net charge-offs were $4.5 million, an increase of $1.7 million from third quarter 2006 and a decrease of $326,000 from second quarter 2007. Net charge-offs were 45 basis points of average loans on an annualized basis during third quarter 2007, compared to 28 basis points for third quarter 2006 and 48 basis points for second quarter 2007.
Provision for loan losses of $15.3 million in third quarter 2007 increased $12.4 million from the $2.9 million in third quarter 2006 and increased $11.1 million from $4.2 million in second quarter 2007.
Buy-back Update
During third quarter 2007, 465,000 shares were repurchased at an average price of $25.35 in connection with the Company’s stock buy-back program. AMCORE had 22,480,000 ending shares outstanding at September 30, 2007 compared to 24,277,000 ending shares at September 30, 2006 and 22,922,000 ending shares outstanding at June 30, 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 http://www.AMCORE.com.
AMCORE Financial, Inc. |
CONSOLIDATED FINANCIAL SUMMARY |
| (Unaudited) |
| | | | | | | | | | | | | | | | |
| ($ in 000's except per share data) | | 3rd Qtr. | | 2nd Qtr. | | 1st Qtr. | | 4th Qtr. | | 3rd Qtr. | | 3Q/2Q | | 3Q 07/06 | |
SHARE DATA | | 2007 | | 2007 | | 2007 | | 2006 | | 2006 | | Inc(Dec) | | Inc(Dec) | |
| Diluted earnings per share: | | | | | | | | | | | | | | | | | | | | | | |
| Income from continuing operations | | $ | 0.08 | | $ | 0.46 | | $ | 0.35 | | $ | 0.53 | | $ | 0.51 | | | (83 | %) | | (84 | %) |
| Net income | | $ | 0.08 | | $ | 0.46 | | $ | 0.35 | | $ | 0.54 | | $ | 0.51 | | | (83 | %) | | (84 | %) |
| Cash dividends | | $ | 0.185 | | $ | 0.185 | | $ | 0.185 | | $ | 0.185 | | $ | 0.185 | | | 0 | % | | 0 | % |
| Book value | | $ | 16.76 | | $ | 16.58 | | $ | 16.89 | | $ | 16.81 | | $ | 16.73 | | | 1 | % | | 0 | % |
| Average diluted shares outstanding | | | 22,666 | | | 23,098 | | | 23,804 | | | 24,052 | | | 24,498 | | | (2 | %) | | (7 | %) |
| Ending shares outstanding | | | 22,480 | | | 22,922 | | | 23,507 | | | 23,792 | | | 24,277 | | | (2 | %) | | (7 | %) |
| | | | | | | | | | | | | | | | | | | | | | | |
INCOME STATEMENT | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Total Interest Income | | $ | 87,592 | | $ | 86,817 | | $ | 85,742 | | $ | 88,090 | | $ | 87,525 | | | 1 | % | | 0 | % |
| Total Interest Expense | | | 47,221 | | | 46,099 | | | 45,346 | | | 47,032 | | | 46,375 | | | 2 | % | | 2 | % |
Net interest income | | | 40,371 | | | 40,718 | | | 40,396 | | | 41,058 | | | 41,150 | | | (1 | %) | | (2 | %) |
| | | | | | | | | | | | | | | | | | | | | | | |
Provision for loan losses | | | 15,281 | | | 4,227 | | | 3,179 | | | 3,007 | | | 2,863 | | | 262 | % | | 434 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Non-interest income: | | | | | | | | | | | | | | | | | | | | | | |
| Investment management & trust | | | 4,519 | | | 3,671 | | | 4,080 | | | 4,383 | | | 4,182 | | | 23 | % | | 8 | % |
| Service charges on deposits | | | 7,852 | | | 7,436 | | | 6,329 | | | 6,536 | | | 6,931 | | | 6 | % | | 13 | % |
| Net mortgage revenues | | | 317 | | | 596 | | | 926 | | | 862 | | | 762 | | | (47 | %) | | (58 | %) |
| Company owned life insurance | | | 1,747 | | | 1,247 | | | 954 | | | 2,943 | | | 2,870 | | | 40 | % | | (39 | %) |
| Brokerage commission | | | 1,107 | | | 1,191 | | | 863 | | | 821 | | | 700 | | | (7 | %) | | 58 | % |
| Bankcard fee income | | | 1,995 | | | 1,947 | | | 1,860 | | | 1,663 | | | 1,690 | | | 2 | % | | 18 | % |
| Gain on sale of loans | | | - | | | 1 | | | 241 | | | 150 | | | 116 | | | (100 | %) | | (100 | %) |
| Net security (losses) gains | | | (5,574 | ) | | - | | | - | | | 42 | | | - | | | 0 | % | | 0 | % |
| Other | | | 2,062 | | | 3,359 | | | 4,127 | | | 3,864 | | | 3,909 | | | (39 | %) | | (47 | %) |
Total non-interest income | | | 14,025 | | | 19,448 | | | 19,380 | | | 21,264 | | | 21,160 | | | (28 | %) | | (34 | %) |
| | | | | | | | | | | | | | | | | | | | | | | |
| Operating expenses: | | | | | | | | | | | | | | | | | | | | | | |
| Personnel costs | | | 22,188 | | | 23,998 | | | 26,460 | | | 25,245 | | | 23,274 | | | (8 | %) | | (5 | %) |
| Net occupancy & equipment | | | 6,167 | | | 5,852 | | | 6,316 | | | 5,581 | | | 5,533 | | | 5 | % | | 11 | % |
| Data processing | | | 843 | | | 955 | | | 687 | | | 779 | | | 674 | | | (12 | %) | | 25 | % |
| Professional fees | | | 2,503 | | | 1,904 | | | 1,929 | | | 2,214 | | | 2,743 | | | 31 | % | | (9 | %) |
| Communication | | | 1,385 | | | 1,270 | | | 1,323 | | | 1,231 | | | 1,379 | | | 9 | % | | 0 | % |
| Advertising & business development | | | 794 | | | 835 | | | 1,137 | | | 2,059 | | | 1,789 | | | (5 | %) | | (56 | %) |
| Other | | | 5,180 | | | 5,734 | | | 7,130 | | | 5,140 | �� | | 7,076 | | | (10 | %) | | (27 | %) |
Total operating expenses | | | 39,060 | | | 40,548 | | | 44,982 | | | 42,249 | | | 42,468 | | | (4 | %) | | (8 | %) |
| | | | | | | | | | | | | | | | | | | | | | | |
Income from continuing operations before income taxes | | | 55 | | | 15,391 | | | 11,615 | | | 17,066 | | | 16,979 | | | (100 | %) | | (100 | %) |
| Income tax (benefit) expense | | | (1,834 | ) | | 4,788 | | | 3,396 | | | 4,437 | | | 4,474 | | | (138 | %) | | (141 | %) |
Income from continuing operations | | | 1,889 | | | 10,603 | | | 8,219 | | | 12,629 | | | 12,505 | | | (82 | %) | | (85 | %) |
| Discontinued operations: | | | | | | | | | | | | | | | | | | | | | | |
| Income tax benefit | | | - | | | - | | | - | | | (328 | ) | | - | | | N/M | | | N/M | |
Income from discontinued operations | | | - | | | - | | | - | | | 328 | | | - | | | N/M | | | N/M | |
Net Income | | $ | 1,889 | | $ | 10,603 | | $ | 8,219 | | $ | 12,957 | | $ | 12,505 | | | (82 | %) | | (85 | %) |
| | | | | | | | | | | | | | | | |
| | | 3rd Qtr. | | 2nd Qtr. | | 1st Qtr. | | 4th Qtr. | | 3rd Qtr. | | Basis Point | | Basis Point | |
KEY RATIOS AND DATA | | 2007 | | 2007 | | 2007 | | 2006 | | 2006 | | Change | | Change | |
| | | | | | | | | | | | | | | | |
| Net interest margin (FTE) | | | 3.35 | % | | 3.39 | % | | 3.38 | % | | 3.34 | % | | 3.33 | % | | (4 | ) | | 2 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Return on average assets (1) | | | 0.14 | % | | 0.81 | % | | 0.63 | % | | 0.93 | % | | 0.92 | % | | (67 | ) | | (78 | ) |
| Return on average equity (1) | | | 1.97 | % | | 10.99 | % | | 8.34 | % | | 12.51 | % | | 12.38 | % | | (902 | ) | | (1041 | ) |
| Efficiency ratio (1) | | | 71.81 | % | | 67.39 | % | | 75.25 | % | | 67.79 | % | | 68.16 | % | | 442 | | | 365 | |
| Equity/assets (end of period) | | | 7.16 | % | | 7.17 | % | | 7.54 | % | | 7.56 | % | | 7.46 | % | | (1 | ) | | (30 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
| Allowance to loans (end of period) | | | 1.31 | % | | 1.01 | % | | 1.04 | % | | 1.04 | % | | 1.03 | % | | 30 | | | 28 | |
| Allowance to non-accrual loans | | | 186.57 | % | | 132.69 | % | | 136.59 | % | | 136.16 | % | | 140.36 | % | | 54 | | | 46 | |
| Allowance to non-performing loans | | | 125.08 | % | | 107.97 | % | | 111.55 | % | | 126.42 | % | | 134.93 | % | | 17 | | | (10 | ) |
| Non-accrual loans to loans | | | 0.70 | % | | 0.76 | % | | 0.76 | % | | 0.76 | % | | 0.73 | % | | (6 | ) | | (3 | ) |
| Non-performing assets to total assets | | | 0.89 | % | | 0.78 | % | | 0.73 | % | | 0.64 | % | | 0.59 | % | | 11 | | | 30 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| (in millions) | | | | | | | | | | | | | | | | | | | | | | |
| Total assets under administration | | $ | 2,789 | | $ | 2,817 | | $ | 2,711 | | $ | 2,671 | | $ | 2,627 | | | (1 | %) | | 6 | % |
| Mortgage loans closed | | $ | 64 | | $ | 87 | | $ | 75 | | $ | 84 | | $ | 111 | | | (26 | %) | | (42 | %) |
| Mortgage servicing rights, net | | $ | 0.1 | | $ | 1.2 | | $ | 0.7 | | $ | 14.3 | | $ | 14.2 | | | (92 | %) | | (99 | %) |
| Percentage of mortgage loans serviced | | | 0.96 | % | | 1.07 | % | | 1.07 | % | | 0.97 | % | | 0.98 | % | | (11 | ) | | (2 | ) |
| N/M = not meaningful |
| (1) Ratios from continuing operations |
AMCORE Financial, Inc. |
| (Unaudited) |
| | | | | | | | | | | | | | | | | | |
| ($ in 000's) | | 3rd Qtr. | | 2nd Qtr. | | 1st Qtr. | | 4th Qtr. | | 3rd Qtr. | | 3Q/2Q | | 3Q 07/06 | | Ending | |
AVERAGE BALANCE SHEET | | 2007 | | 2007 | | 2007 | | 2006 | | 2006 | | Inc(Dec) | | Inc(Dec) | | Balances | |
Assets: | | | | | | | | | | | | | | | | | |
| Investment securities , at cost | | $ | 860,426 | | $ | 868,713 | | $ | 897,511 | | $ | 1,037,355 | | $ | 1,105,999 | | | (1 | %) | | (22 | %) | $ | 875,660 | |
| Short-term investments | | | 4,814 | | | 3,584 | | | 19,127 | | | 7,672 | | | 6,005 | | | 34 | % | | (20 | %) | | 3,368 | |
| Loans held for sale | | | 8,514 | | | 13,477 | | | 12,305 | | | 14,983 | | | 27,036 | | | (37 | %) | | (69 | %) | | 8,753 | |
| Loans: Commercial | | | 803,529 | | | 809,739 | | | 803,570 | | | 806,679 | | | 820,647 | | | (1 | %) | | (2 | %) | | 793,307 | |
| Commercial real estate | | | 2,382,397 | | | 2,389,201 | | | 2,354,882 | | | 2,322,050 | | | 2,269,703 | | | (0 | %) | | 5 | % | | 2,358,973 | |
| Residential real estate | | | 491,982 | | | 495,046 | | | 498,427 | | | 506,514 | | | 495,917 | | | (1 | %) | | (1 | %) | | 478,259 | |
| Consumer | | | 316,879 | | | 312,404 | | | 306,268 | | | 311,643 | | | 317,455 | | | 1 | % | | (0 | %) | | 313,245 | |
| Total loans | | $ | 3,994,787 | | $ | 4,006,390 | | $ | 3,963,147 | | $ | 3,946,886 | | $ | 3,903,722 | | | (0 | %) | | 2 | % | $ | 3,943,784 | |
| Total earning assets | | $ | 4,868,541 | | $ | 4,892,164 | | $ | 4,892,090 | | $ | 5,006,896 | | $ | 5,042,762 | | | (0 | %) | | (3 | %) | $ | 4,831,565 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Allowance for loan losses | | | (42,354 | ) | | (43,069 | ) | | (41,653 | ) | | (41,917 | ) | | (41,503 | ) | | (2 | %) | | 2 | % | | (51,500 | ) |
| Goodwill | | | 6,148 | | | 6,148 | | | 6,148 | | | 6,148 | | | 6,148 | | | 0 | % | | 0 | % | | 6,148 | |
| Other non-earning assets | | | 414,042 | | | 410,019 | | | 399,135 | | | 403,640 | | | 397,302 | | | 1 | % | | 4 | % | | 473,028 | |
| Total assets | | $ | 5,246,377 | | $ | 5,265,262 | | $ | 5,255,720 | | $ | 5,374,767 | | $ | 5,404,709 | | | (0 | %) | | (3 | %) | $ | 5,259,241 | |
Liabilities and Stockholders' Equity: | | | | | | | | | | | | | | | | | | | | | | | | | |
| Non interest bearing deposits | | $ | 499,550 | | $ | 502,813 | | $ | 492,766 | | $ | 504,960 | | $ | 484,502 | | | (1 | %) | | 3 | % | $ | 547,417 | |
| Interest bearing deposits | | | 1,809,846 | | | 1,786,600 | | | 1,784,489 | | | 1,760,241 | | | 1,716,174 | | | 1 | % | �� | 5 | % | | 1,840,754 | |
| Time deposits | | | 1,130,992 | | | 1,161,978 | | | 1,199,365 | | | 1,217,385 | | | 1,246,157 | | | (3 | %) | | (9 | %) | | 1,109,334 | |
| Total bank issued deposits | | $ | 3,440,388 | | $ | 3,451,391 | | $ | 3,476,620 | | $ | 3,482,586 | | $ | 3,446,833 | | | (0 | %) | | (0 | %) | $ | 3,497,505 | |
| Wholesale deposits | | | 649,906 | | | 648,270 | | | 746,629 | | | 807,470 | | | 790,629 | | | 0 | % | | (18 | %) | | 633,551 | |
| Short-term borrowings | | | 294,584 | | | 323,911 | | | 157,511 | | | 286,422 | | | 327,337 | | | (9 | %) | | (10 | %) | | 327,822 | |
| Long-term borrowings | | | 421,826 | | | 389,008 | | | 406,936 | | | 328,591 | | | 372,472 | | | 8 | % | | 13 | % | | 368,641 | |
| Total wholesale funding | | $ | 1,366,316 | | $ | 1,361,189 | | $ | 1,311,076 | | $ | 1,422,483 | | $ | 1,490,438 | | | 0 | % | | (8 | %) | $ | 1,330,014 | |
| Total interest bearing liabilities | | | 4,307,154 | | | 4,309,767 | | | 4,294,930 | | | 4,400,109 | | | 4,452,769 | | | (0 | %) | | (3 | %) | | 4,280,102 | |
| Other liabilities | | | 59,949 | | | 65,784 | | | 68,126 | | | 69,290 | | | 66,608 | | | (9 | %) | | (10 | %) | | 55,049 | |
| Total liabilities | | $ | 4,866,653 | | $ | 4,878,364 | | $ | 4,855,822 | | $ | 4,974,359 | | $ | 5,003,879 | | | (0 | %) | | (3 | %) | $ | 4,882,568 | |
| Stockholders' equity | | | 391,731 | | | 396,666 | | | 411,131 | | | 412,003 | | | 420,177 | | | (1 | %) | | (7 | %) | | 380,545 | |
| Other comprehensive loss | | | (12,007 | ) | | (9,768 | ) | | (11,233 | ) | | (11,595 | ) | | (19,347 | ) | | 23 | % | | (38 | %) | | (3,872 | ) |
| Total stockholders' equity | | | 379,724 | | | 386,898 | | | 399,898 | | | 400,408 | | | 400,830 | | | (2 | %) | | (5 | %) | | 376,673 | |
| Total liabilities & stockholders' equity | | $ | 5,246,377 | | $ | 5,265,262 | | $ | 5,255,720 | | $ | 5,374,767 | | $ | 5,404,709 | | | (0 | %) | | (3 | %) | $ | 5,259,241 | |
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CREDIT QUALITY | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ending allowance for loan losses | | $ | 51,500 | | $ | 40,714 | | $ | 41,308 | | $ | 40,913 | | $ | 40,626 | | | 26 | % | | 27 | % | | | |
| Net charge-offs | | | 4,495 | | | 4,821 | | | 2,784 | | | 2,720 | | | 2,797 | | | (7 | %) | | 61 | % | | | |
| Net charge-offs to avg loans (annualized) | | | 0.45 | % | | 0.48 | % | | 0.28 | % | | 0.27 | % | | 0.28 | % | | (6 | %) | | 61 | % | | | |
| Non-performing assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
| Non-accrual loans | | $ | 27,603 | | $ | 30,683 | | $ | 30,242 | | $ | 30,048 | | $ | 28,945 | | | (10 | %) | | (5 | %) | | | |
| Loans 90 days past due & still accruing | | | 13,571 | | | 7,024 | | | 6,790 | | | 2,315 | | | 1,164 | | | 93 | % | | 1066 | % | | | |
| Total non-performing loans | | | 41,174 | | | 37,707 | | | 37,032 | | | 32,363 | | | 30,109 | | | 9 | % | | 37 | % | | | |
| Foreclosed real estate | | | 5,251 | | | 3,553 | | | 1,205 | | | 1,247 | | | 1,540 | | | 48 | % | | 241 | % | | | |
| Other foreclosed assets | | | 236 | | | 164 | | | 231 | | | 317 | | | 483 | | | 44 | % | | (51 | %) | | | |
| Total non-performing assets | | $ | 46,661 | | $ | 41,424 | | $ | 38,468 | | $ | 33,927 | | $ | 32,132 | | | 13 | % | | 45 | % | | | |
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YIELD AND RATE ANALYSIS | | | | | | | | | | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investment securities (FTE) | | | 4.56 | % | | 4.42 | % | | 4.43 | % | | 4.54 | % | | 4.55 | % | | | | | | | | | |
| Short-term investments | | | 6.61 | % | | 6.27 | % | | 5.64 | % | | 5.66 | % | | 5.73 | % | | | | | | | | | |
| Loans held for sale | | | 6.51 | % | | 5.68 | % | | 4.86 | % | | 5.61 | % | | 5.70 | % | | | | | | | | | |
| Loans: Commercial | | | 8.24 | % | | 8.27 | % | | 8.23 | % | | 8.08 | % | | 8.12 | % | | | | | | | | | |
| Commercial real estate | | | 7.75 | % | | 7.76 | % | | 7.80 | % | | 7.83 | % | | 7.75 | % | | | | | | | | | |
| Residential real estate | | | 7.13 | % | | 7.03 | % | | 7.05 | % | | 7.00 | % | | 6.97 | % | | | | | | | | | |
| Consumer | | | 7.76 | % | | 7.69 | % | | 7.53 | % | | 7.41 | % | | 7.16 | % | | | | | | | | | |
| Total loans (FTE) | | | 7.77 | % | | 7.77 | % | | 7.77 | % | | 7.74 | % | | 7.68 | % | | | | | | | | | |
| Total interest earning assets (FTE) | | | 7.20 | % | | 7.17 | % | | 7.14 | % | | 7.07 | % | | 6.98 | % | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest bearing deposits | | | 3.44 | % | | 3.30 | % | | 3.25 | % | | 3.18 | % | | 3.05 | % | | | | | | | | | |
| Time deposits | | | 4.70 | % | | 4.69 | % | | 4.65 | % | | 4.57 | % | | 4.31 | % | | | | | | | | | |
| Total bank issued deposits | | | 3.92 | % | | 3.85 | % | | 3.82 | % | | 3.75 | % | | 3.58 | % | | | | | | | | | |
| Wholesale deposits | | | 5.13 | % | | 5.11 | % | | 5.16 | % | | 5.10 | % | | 4.98 | % | | | | | | | | | |
| Short-term borrowings | | | 5.08 | % | | 5.09 | % | | 4.85 | % | | 5.10 | % | | 4.92 | % | | | | | | | | | |
| Long-term borrowings | | | 5.61 | % | | 5.62 | % | | 5.85 | % | | 5.86 | % | | 6.04 | % | | | | | | | | | |
| Total wholesale funding | | | 5.27 | % | | 5.25 | % | | 5.34 | % | | 5.27 | % | | 5.23 | % | | | | | | | | | |
| Total interest bearing liabilities | | | 4.35 | % | | 4.29 | % | | 4.28 | % | | 4.24 | % | | 4.13 | % | | | | | | | | | |
| Net interest spread | | | 2.85 | % | | 2.88 | % | | 2.86 | % | | 2.83 | % | | 2.85 | % | | | | | | | | | |
| Net interest margin (FTE) | | | 3.35 | % | | 3.39 | % | | 3.38 | % | | 3.34 | % | | 3.33 | % | | | | | | | | | |
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| FTE adjustment (000's) | | $ | 657 | | $ | 619 | | $ | 608 | | $ | 974 | | $ | 1,054 | | | | | | | | | | |
