| January 22, 2008 | |
| | |
| For media inquiries: | For financial inquiries: |
| Katherine Taylor | Don Wilson |
| Investor Relations Manager | President and Chief Operating Officer |
| 815-961-7164 | 815-961-2721 |
AMCORE Financial, Inc. Reports 4th Quarter Earnings
(Numbers in Thousands, Edxcept Per Share Data)
Results From Continuing Operations
| | | 4th quarter 2007 | | |
YTD 2007 | | | 4th quarter 2006 | | |
YTD 2006 | |
| Net Revenues | | $ | 57,243 | | $ | 231,581 | | $ | 62,322 | | $ | 240,547 | |
| Net Income | | $ | 7,530 | | $ | 28,241 | | $ | 12,629 | | $ | 47,027 | |
| Diluted Shares | | | 22,175 | | | 22,897 | | | 24,052 | | | 24,562 | |
| Diluted EPS | | $ | 0.34 | | $ | 1.23 | | $ | 0.53 | | $ | 1.91 | |
ROCKFORD, IL — AMCORE Financial, Inc. (Nasdaq: AMFI) reported diluted earnings per share from continuing operations of $0.34 for fourth quarter 2007, which was a decrease from $0.53 per diluted share in fourth quarter 2006, and an increase from $0.08 in the previous quarter. Net income from continuing operations in the fourth quarter of 2007 was $7.5 million, a decrease from $12.6 million in the prior-year period, and an increase from $1.9 million in the previous quarter.
Full year 2007 diluted earnings per share from continuing operations was $1.23, which was a decrease from $1.91 in 2006. AMCORE’s net income from continuing operations for the full year 2007 decreased $18.8 million to $28.2 million from $47.0 million in 2006, and includes a $19.0 million increase in provision for loan losses compared to the previous year.
“In 2007, we added to our reserves in recognition of the general softening of the economy and real estate markets,” said Kenneth E. Edge, Chairman and CEO of AMCORE. “We also began to implement cost controls and are taking prudent steps to manage the size and scope of our business to be as strong as possible given the current economic environment and short-term outlook for our industry. AMCORE remains well capitalized and will focus on improving efficiencies in 2008.”
Highlights
| · | Net interest income was $39.1 million or 3.28 percent of average earning assets in fourth quarter 2007 compared to $41.1 million or 3.34 percent in fourth quarter 2006, and $40.4 million or 3.35 percent of average earning assets in third quarter 2007. |
| · | Average loan balances were flat at $3.9 billion compared to fourth quarter 2006, while average investment securities declined 16 percent or $166 million. Average bank issued deposits decreased one percent to $3.4 billion compared to the fourth quarter 2006. |
| · | Provision for loan losses was $6.4 million, a $3.4 million increase from $3.0 million in fourth quarter 2006 and an $8.9 million decrease from $15.3 million in third quarter 2007. |
| - | Net charge-offs were $4.8 million, or 0.48 percent of average loans on an annualized basis, compared to $2.7 million and 0.27 percent in fourth quarter 2006, and $4.5 million and 0.45 percent in third quarter 2007, respectively. |
| - | Non-performing loans were $70.8 million, an increase of $38.4 million from December 31, 2006 and $29.6 million from September 30, 2007. Non-performing loans include $41.0 million of non-accrual loans and $29.8 million of loans 90 days past due and still accruing. |
| · | Non-interest income decreased $3.1 million compared to fourth quarter 2006 and increased $4.1 million compared to third quarter 2007. |
| · | Operating expenses decreased $1.5 million compared to fourth quarter 2006, but increased $1.7 million compared to third quarter 2007. |
Revenues
Net revenues decreased $5.1 million to $57.2 million in fourth quarter 2007 from $62.3 million during the same quarter a year ago and increased $2.8 million from $54.4 million in the previous quarter.
Net interest income decreased five percent, or $2.0 million, to $39.1 million in fourth quarter 2007 from $41.1 million during the same quarter a year ago, and decreased three percent, or $1.3 million, compared to third quarter 2007. The net interest margin decreased six basis points to 3.28 percent in fourth quarter 2007 from 3.34 percent in fourth quarter 2006, and decreased seven basis points compared to third quarter 2007.
Average loan balances were flat at $3.9 billion compared to fourth quarter 2006 and decreased one percent, or $51 million, compared to the previous quarter. Average bank issued deposits decreased one percent, or $44 million, to $3.4 billion compared to the fourth quarter 2006 and were essentially flat compared to the previous quarter.
Total non-interest income decreased $3.1 million compared to fourth quarter 2006 and increased $4.1 million compared to third quarter 2007. The fourth quarter 2006 non-interest revenues included $1.8 million in earnings from CRA-related fund investment earnings and a $1.5 million net insurance claim on company-owned life insurance, compared to $360,000 and none, respectively, in fourth quarter 2007. Third quarter 2007 included a $5.6 million impairment loss on investment securities and $981,000 of CRA-related fund investment earnings.
Investment management and trust revenues increased $112,000, or three percent, but was essentially flat with third quarter 2007. Deposit-related fees and bankcard fee income increased $1.5 million and $397,000, or 22 percent and 24 percent, respectively, when compared to fourth quarter 2006. When compared to the previous quarter, deposit related fees increased $149,000, or two percent, and bankcard fee income increased $65,000, or three percent.
Mortgage banking income decreased $593,000 in fourth quarter 2007 compared to the same period a year ago, and decreased $48,000, from third quarter 2007. The decline from a year ago was primarily due to a decline in servicing revenues due to the sale of the Originated Mortgage Servicing Rights portfolio.
Income from company-owned life insurance decreased $1.5 million when compared to fourth quarter 2006, and decreased $266,000 when compared to third quarter 2007. The fourth quarter decrease over the prior year period is primarily due to net insurance claims in the prior period.
Other non-interest income decreased $2.7 million from fourth quarter 2006 and decreased $892,000 from third quarter 2007. Fourth quarter 2007 compared to fourth quarter 2006 included a $1.4 million decrease in CRA-related fund investment earnings and a decrease of $1.0 million related to derivatives. The decrease in fourth quarter 2007 compared to third quarter 2007 was due to lower CRA-related fund investment earnings.
Operating Expenses
Total operating expenses decreased $1.5 million, compared to fourth quarter 2006, and increased $1.7 million, compared to third quarter 2007. The decrease from fourth quarter 2006 was primarily related to lower employee incentive and benefit costs, while the increase from third quarter 2007 related to a $766,000 increase in foreclosed property related costs. In addition, as a member of the VISA, Inc. organization, AMCORE recognized a $653,000 charge for its proportionate share of various litigation claims against VISA, Inc.
Increased net occupancy and equipment expenses of $699,000 in fourth quarter 2007 compared to fourth quarter 2006, primarily due to branch expansion, were essentially offset by lower advertising and business development costs. In 2007, AMCORE opened two branches in the suburban Chicago communities of Deerfield and Willowbrook.
Increased advertising and business development costs in fourth quarter 2007, compared to third quarter 2007, were largely offset by lower professional fees. Advertising and business development expenses included a $300,000 contribution to the Company’s private foundations to support charitable work in its communities. The decrease in professional fees related to lower external compliance related consulting costs.
The efficiency ratio was 71.19 percent compared to 67.79 percent for the same period in 2006 and 71.81 percent in the prior quarter.
Income Taxes
Income taxes, as a percentage of pre-tax income from continuing operations, were 24.0 percent for the year-to-date period ending December 31, 2007 compared to 27.7 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 a 35 basis point decrease in return on average assets to 0.58 percent in fourth quarter 2007 compared to 0.93 percent during the prior-year period and a 44 basis point increase from 0.14 percent in the previous quarter. Return on average equity decreased 457 basis points to 7.94 percent in fourth quarter 2007 compared to 12.51 percent in fourth quarter 2006 and increased 597 basis points from 1.97 percent in third quarter 2007.
Asset Quality & Loan Loss
The percentage of total non-performing assets to total assets was 1.45 percent at December 31, 2007, up from 0.64 percent at December 31, 2006 and 0.89 percent at September 30, 2007. Net charge-offs were $4.8 million, an increase of $2.0 million from fourth quarter 2006 and an increase of $265,000 from third quarter 2007. Net charge-offs were 48 basis points of average loans on an annualized basis during fourth quarter 2007, compared to 27 basis points for fourth quarter 2006 and 45 basis points for third quarter 2007.
Provision for loan losses of $6.4 million in fourth quarter 2007 increased $3.4 million, or 113 percent, from the $3.0 million in fourth quarter 2006 and decreased $8.9 million, or 58 percent, from third quarter 2007.
Buy-back Update
During fourth quarter, 551,000 shares were repurchased at an average price of $23.10, primarily in connection with the Company’s stock buy-back program. For the full year of 2007, 2.1 million shares were repurchased at an average cost of $27.93.
AMCORE Financial, Inc. is headquartered in Northern Illinois and has banking assets of $5.2 billion with 79 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.
AMCORE Financial, Inc.
CONSOLIDATED FINANCIAL SUMMARY
(Unaudited)
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| ($ in 000's except per share data) | | 4th Qtr. | | 3rd Qtr. | | 2nd Qtr. | | 1st Qtr. | | 4th Qtr. | | 4Q/3Q | | 4Q 07/06 | | | Year-to-Date | | 07/06 | |
SHARE DATA | | 2007 | | 2007 | | 2007 | | 2007 | | 2006 | | Inc(Dec) | | Inc(Dec) | | | 2007 | | 2006 | | Inc(Dec) | |
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| Diluted earnings per share: | | | | | | | | | | | | | | | | | | | | | | |
| Income from continuing operations | | $ | 0.34 | | $ | 0.08 | | $ | 0.46 | | $ | 0.35 | | $ | 0.53 | | | 325 | % | | (36 | %) | | $ | 1.23 | | $ | 1.91 | | | (36 | %) |
| Net income | | $ | 0.34 | | $ | 0.08 | | $ | 0.46 | | $ | 0.35 | | $ | 0.54 | | | 325 | % | | (37 | %) | | $ | 1.23 | | $ | 1.92 | | | (36 | %) |
| Cash dividends | | $ | 0.185 | | $ | 0.185 | | $ | 0.185 | | $ | 0.185 | | $ | 0.185 | | | 0 | % | | 0 | % | | $ | 0.74 | | $ | 0.74 | | | 0 | % |
| Book value | | $ | 16.80 | | $ | 16.76 | | $ | 16.58 | | $ | 16.89 | | $ | 16.81 | | | 0 | % | | 0 | % | | $ | 16.80 | | $ | 16.81 | | | (0 | %) |
| Average diluted shares outstanding | | | 22,175 | | | 22,657 | | | 23,098 | | | 23,804 | | | 24,052 | | | (2 | %) | | (8 | %) | | | 22,897 | | | 24,562 | | | (7 | %) |
| Ending shares outstanding | | | 21,940 | | | 22,480 | | | 22,922 | | | 23,507 | | | 23,792 | | | (2 | %) | | (8 | %) | | | 21,940 | | | 23,792 | | | (8 | %) |
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INCOME STATEMENT | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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| Total Interest Income | | $ | 83,865 | | $ | 87,592 | | $ | 86,817 | | $ | 85,742 | | $ | 88,090 | | | (4 | %) | | (5 | %) | | $ | 344,016 | | $ | 339,176 | | | 1 | % |
| Total Interest Expense | | | 44,766 | | | 47,221 | | | 46,099 | | | 45,346 | | | 47,032 | | | (5 | %) | | (5 | %) | | | 183,432 | | | 174,218 | | | 5 | % |
Net interest income | | | 39,099 | | | 40,371 | | | 40,718 | | | 40,396 | | | 41,058 | | | (3 | %) | | (5 | %) | | | 160,584 | | | 164,958 | | | (3 | %) |
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Provision for loan losses | | | 6,400 | | | 15,281 | | | 4,227 | | | 3,179 | | | 3,007 | | | (58 | %) | | 113 | % | | | 29,087 | | | 10,120 | | | 187 | % |
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| Non-interest income: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investment management & trust | | | 4,495 | | | 4,519 | | | 3,671 | | | 4,080 | | | 4,383 | | | (1 | %) | | 3 | % | | | 16,765 | | | 16,200 | | | 3 | % |
| Service charges on deposits | | | 8,001 | | | 7,852 | | | 7,436 | | | 6,329 | | | 6,536 | | | 2 | % | | 22 | % | | | 29,618 | | | 25,622 | | | 16 | % |
| Net mortgage revenues | | | 269 | | | 317 | | | 596 | | | 926 | | | 862 | | | (15 | %) | | (69 | %) | | | 2,108 | | | 3,917 | | | (46 | %) |
| Company owned life insurance | | | 1,481 | | | 1,747 | | | 1,247 | | | 954 | | | 2,943 | | | (15 | %) | | (50 | %) | | | 5,429 | | | 7,891 | | | (31 | %) |
| Brokerage commission | | | 1,013 | | | 1,107 | | | 1,191 | | | 863 | | | 821 | | | (8 | %) | | 23 | % | | | 4,174 | | | 3,146 | | | 33 | % |
| Bankcard fee income | | | 2,060 | | | 1,995 | | | 1,947 | | | 1,860 | | | 1,663 | | | 3 | % | | 24 | % | | | 7,862 | | | 6,225 | | | 26 | % |
| Gain on sale of loans | | | 1 | | | - | | | 1 | | | 241 | | | 150 | | | N/M | | | N/M | | | | 243 | | | 576 | | | (58 | %) |
| Net security (losses) gains | | | (346 | ) | | (5,574 | ) | | - | | | - | | | 42 | | | (94 | %) | | (924 | %) | | | (5,920 | ) | | 267 | | | (2,317 | %) |
| Other | | | 1,170 | | | 2,062 | | | 3,359 | | | 4,127 | | | 3,864 | | | (43 | %) | | (70 | %) | | | 10,718 | | | 11,745 | | | (9 | %) |
Total non-interest income | | | 18,144 | | | 14,025 | | | 19,448 | | | 19,380 | | | 21,264 | | | 29 | % | | (15 | %) | | | 70,997 | | | 75,589 | | | (6 | %) |
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| Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Personnel costs | | | 22,278 | | | 22,188 | | | 23,998 | | | 26,460 | | | 25,245 | | | 0 | % | | (12 | %) | | | 94,924 | | | 97,890 | | | (3 | %) |
| Net occupancy & equipment | | | 6,280 | | | 6,167 | | | 5,852 | | | 6,316 | | | 5,581 | | | 2 | % | | 13 | % | | | 24,615 | | | 20,891 | | | 18 | % |
| Data processing | | | 884 | | | 843 | | | 955 | | | 687 | | | 779 | | | 5 | % | | 13 | % | | | 3,369 | | | 2,998 | | | 12 | % |
| Professional fees | | | 2,061 | | | 2,503 | | | 1,904 | | | 1,929 | | | 2,214 | | | (18 | %) | | (7 | %) | | | 8,397 | | | 9,317 | | | (10 | %) |
| Communication | | | 1,280 | | | 1,385 | | | 1,270 | | | 1,323 | | | 1,231 | | | (8 | %) | | 4 | % | | | 5,258 | | | 5,088 | | | 3 | % |
| Advertising & business development | | | 1,400 | | | 794 | | | 835 | | | 1,137 | | | 2,059 | | | 76 | % | | (32 | %) | | | 4,166 | | | 7,409 | | | (44 | %) |
| Other | | | 6,566 | | | 5,180 | | | 5,734 | | | 7,130 | | | 5,140 | | | 27 | % | | 28 | % | | | 24,610 | | | 21,772 | | | 13 | % |
Total operating expenses | | | 40,749 | | | 39,060 | | | 40,548 | | | 44,982 | | | 42,249 | | | 4 | % | | (4 | %) | | | 165,339 | | | 165,365 | | | (0 | %) |
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| Income from continuing operations | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| before income taxes | | | 10,094 | | | 55 | | | 15,391 | | | 11,615 | | | 17,066 | | | N/M | | | (41 | %) | | | 37,155 | | | 65,062 | | | (43 | %) |
| Income tax (benefit) expense | | | 2,564 | | | (1,834 | ) | | 4,788 | | | 3,396 | | | 4,437 | | | (240 | %) | | (42 | %) | | | 8,914 | | | 18,035 | | | (51 | %) |
Income from continuing operations | | | 7,530 | | | 1,889 | | | 10,603 | | | 8,219 | | | 12,629 | | | 299 | % | | (40 | %) | | | 28,241 | | | 47,027 | | | (40 | %) |
| Discontinued operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Loss from discontinued operations | | | - | | | - | | | - | | | - | | | - | | | N/M | | | N/M | | | | - | | | (131 | ) | | N/M | |
| Income tax benefit | | | - | | | - | | | - | | | - | | | (328 | ) | | N/M | | | N/M | | | | - | | | (379 | ) | | N/M | |
| Income from discontinued | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| operations | | | - | | | - | | | - | | | - | | | 328 | | | N/M | | | N/M | | | | - | | | 248 | | | N/M | |
Net Income | | $ | 7,530 | | $ | 1,889 | | $ | 10,603 | | $ | 8,219 | | $ | 12,957 | | | 299 | % | | (42 | %) | | $ | 28,241 | | $ | 47,275 | | | (40 | %) |
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| | | | 4th Qtr. | | | 3rd Qtr. | | | 2nd Qtr. | | | 1stQtr. | | | 4th Qtr. | | | Basis Point | | | Basis Point | | | Year-to-Date | | | Basis Point | |
KEY RATIOS AND DATA | | | 2007 | | | 2007 | | | 2007 | | | 2007 | | | 2006 | | | Change | | | Change | | | 2007 | | | 2006 | | | Change | |
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| Net interest margin (FTE) | | | 3.28 | % | | 3.35 | % | | 3.39 | % | | 3.38 | % | | 3.34 | % | | (7 | ) | | (6 | ) | | 3.35 | % | | 3.38 | % | | (3 | ) |
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| Return on average assets (1) | | | 0.58 | % | | 0.14 | % | | 0.81 | % | | 0.63 | % | | 0.93 | % | | 44 | | | (35 | ) | | 0.54 | % | | 0.88 | % | | (34 | ) |
| Return on average equity (1) | | | 7.94 | % | | 1.97 | % | | 10.99 | % | | 8.34 | % | | 12.51 | % | | 597 | | | (457 | ) | | 7.32 | % | | 11.76 | % | | (444 | ) |
| Efficiency ratio (1) | | | 71.19 | % | | 71.81 | % | | 67.39 | % | | 75.25 | % | | 67.79 | % | | (62 | ) | | 340 | | | 71.40 | % | | 68.75 | % | | 265 | |
| Equity/assets (end of period) | | | 7.10 | % | | 7.16 | % | | 7.17 | % | | 7.54 | % | | 7.56 | % | | (6 | ) | | (46 | ) | | | | | | | | | |
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| Allowance to loans (end of period) | | | 1.35 | % | | 1.31 | % | | 1.01 | % | | 1.04 | % | | 1.04 | % | | 4 | | | 31 | | | | | | | | | | |
| Allowance to non-accrual loans | | | 129.70 | % | | 186.57 | % | | 132.69 | % | | 136.59 | % | | 136.16 | % | | (5687 | ) | | (646 | ) | | | | | | | | | |
| Allowance to non-performing loans | | | 75.06 | % | | 125.08 | % | | 107.97 | % | | 111.55 | % | | 126.42 | % | | (5002 | ) | | (5136 | ) | | | | | | | | | |
| Non-accrual loans to loans | | | 1.04 | % | | 0.70 | % | | 0.76 | % | | 0.76 | % | | 0.76 | % | | 34 | | | 28 | | | | | | | | | | |
| Non-performing assets to total assets | | | 1.45 | % | | 0.89 | % | | 0.78 | % | | 0.73 | % | | 0.64 | % | | 56 | | | 81 | | | | | | | | | | |
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| ($ in millions) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total assets under administration | | $ | 2,728 | | $ | 2,789 | | $ | 2,817 | | $ | 2,711 | | $ | 2,671 | | | (2 | %) | | 2 | % | | | | | | | | | |
| Mortgage loans closed | | $ | 51 | | $ | 64 | | $ | 87 | | $ | 75 | | $ | 84 | | | (20 | %) | | (39 | %) | | | | | | | | | |
| Mortgage servicing rights, net | | $ | 0.1 | | $ | 0.1 | | $ | 1.2 | | $ | 0.7 | | $ | 14.3 | | | 0 | % | | (99 | %) | | | | | | | | | |
| Percentage of mortgage loans serviced | | | 0.94 | % | | 0.96 | % | | 1.07 | % | | 1.07 | % | | 0.97 | % | | (2 | ) | | (3 | ) | | | | | | | | | |
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| N/M = not meaningful | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) Ratios from continuing operations | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
AMCORE Financial, Inc.
CONSOLIDATED FINANCIAL SUMMARY (cont.)
(Unaudited)
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($ in 000's)AVERAGE BALANCE SHEET | | | 4th Qtr. 2007 | | | 3rd Qtr. 2007 | | | 2nd Qtr. 2007 | | | 1st Qtr. 2007 | | | 4th Qtr. 2006 | | | | | | 4Q 07/06 Inc(Dec) | | | | Ending Balances | |
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investment securities, at cost | | $ | 871,626 | | $ | 860,426 | | $ | 868,713 | | $ | 897,511 | | $ | 1,037,355 | | | 1 | % | | (16 | %) | | $ | 848,069 | |
| Short-term investments | | | 6,856 | | | 4,814 | | | 3,584 | | | 19,127 | | | 7,672 | | | 42 | % | | (11 | %) | | | 12,882 | |
| Loans held for sale | | | 6,653 | | | 8,514 | | | 13,477 | | | 12,305 | | | 14,983 | | | (22 | %) | | (56 | %) | | | 3,636 | |
| Loans: Commercial | | | 776,557 | | | 803,529 | | | 809,739 | | | 803,570 | | | 806,679 | | | (3 | %) | | (4 | %) | | | 767,312 | |
| Commercial real estate | | | 2,358,906 | | | 2,382,397 | | | 2,389,201 | | | 2,354,882 | | | 2,322,050 | | | (1 | %) | | 2 | % | | | 2,361,180 | |
| Residential real estate | | | 488,532 | | | 491,982 | | | 495,046 | | | 498,427 | | | 506,514 | | | (1 | %) | | (4 | %) | | | 468,420 | |
| Consumer | | | 319,808 | | | 316,879 | | | 312,404 | | | 306,268 | | | 311,643 | | | 1 | % | | 3 | % | | | 335,772 | |
| Total loans | | $ | 3,943,803 | | $ | 3,994,787 | | $ | 4,006,390 | | $ | 3,963,147 | | $ | 3,946,886 | | | (1 | %) | | (0 | %) | | $ | 3,932,684 | |
| Total earning assets | | $ | 4,828,938 | | $ | 4,868,541 | | $ | 4,892,164 | | $ | 4,892,090 | | $ | 5,006,896 | | | (1 | %) | | (4 | %) | | $ | 4,797,271 | |
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| Allowance for loan losses | | | (52,499 | ) | | (42,354 | ) | | (43,069 | ) | | (41,653 | ) | | (41,917 | ) | | 24 | % | | 25 | % | | | (53,140 | ) |
| Goodwill | | | 6,148 | | | 6,148 | | | 6,148 | | | 6,148 | | | 6,148 | | | 0 | % | | 0 | % | | | 6,148 | |
| Other non-earning assets | | | 412,641 | | | 414,042 | | | 410,019 | | | 399,135 | | | 403,640 | | | (0 | %) | | 2 | % | | | 442,499 | |
| Total assets | | $ | 5,195,228 | | $ | 5,246,377 | | $ | 5,265,262 | | $ | 5,255,720 | | $ | 5,374,767 | | | (1 | %) | | (3 | %) | | $ | 5,192,778 | |
Liabilities and Stockholders' Equity: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Non-interest bearing deposits | | $ | 496,301 | | $ | 499,550 | | $ | 502,813 | | $ | 492,766 | | $ | 504,960 | | | (1 | %) | | (2 | %) | | $ | 508,389 | |
| Interest bearing deposits | | | 1,873,883 | | | 1,809,846 | | | 1,786,600 | | | 1,784,489 | | | 1,760,241 | | | 4 | % | | 6 | % | | | 1,867,633 | |
| Time deposits | | | 1,067,981 | | | 1,130,992 | | | 1,161,978 | | | 1,199,365 | | | 1,217,385 | | | (6 | %) | | (12 | %) | | | 1,029,418 | |
| Total bank issued deposits | | $ | 3,438,165 | | $ | 3,440,388 | | $ | 3,451,391 | | $ | 3,476,620 | | $ | 3,482,586 | | | (0 | %) | | (1 | %) | | $ | 3,405,440 | |
| Wholesale deposits | | | 620,500 | | | 649,906 | | | 648,270 | | | 746,629 | | | 807,470 | | | (5 | %) | | (23 | %) | | | 597,816 | |
| Short-term borrowings | | | 327,678 | | | 294,584 | | | 323,911 | | | 157,511 | | | 286,422 | | | 11 | % | | 14 | % | | | 397,088 | |
| Long-term borrowings | | | 368,657 | | | 421,826 | | | 389,008 | | | 406,936 | | | 328,591 | | | (13 | %) | | 12 | % | | | 368,858 | |
| Total wholesale funding | | $ | 1,316,835 | | $ | 1,366,316 | | $ | 1,361,189 | | $ | 1,311,076 | | $ | 1,422,483 | | | (4 | %) | | (7 | %) | | $ | 1,363,762 | |
| Total interest bearing liabilities | | | 4,258,699 | | | 4,307,154 | | | 4,309,767 | | | 4,294,930 | | | 4,400,109 | | | (1 | %) | | (3 | %) | | | 4,260,813 | |
| Other liabilities | | | 64,144 | | | 59,949 | | | 65,784 | | | 68,126 | | | 69,290 | | | 7 | % | | (7 | %) | | | 55,009 | |
| Total liabilities | | $ | 4,819,144 | | $ | 4,866,653 | | $ | 4,878,364 | | $ | 4,855,822 | | $ | 4,974,359 | | | (1 | %) | | (3 | %) | | $ | 4,824,211 | |
| Stockholders' equity | | | 377,775 | | | 391,731 | | | 396,666 | | | 411,131 | | | 412,003 | | | (4 | %) | | (8 | %) | | | 371,883 | |
| Other comprehensive loss | | | (1,691 | ) | | (12,007 | ) | | (9,768 | ) | | (11,233 | ) | | (11,595 | ) | | (86 | %) | | (85 | %) | | | (3,316 | ) |
| Total stockholders' equity | | | 376,084 | | | 379,724 | | | 386,898 | | | 399,898 | | | 400,408 | | | (1 | %) | | (6 | %) | | | 368,567 | |
| Total liabilities & stockholders' equity | | $ | 5,195,228 | | $ | 5,246,377 | | $ | 5,265,262 | | $ | 5,255,720 | | $ | 5,374,767 | | | (1 | %) | | (3 | %) | | $ | 5,192,778 | |
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CREDIT QUALITY | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ending allowance for loan losses | | $ | 53,140 | | $ | 51,500 | | $ | 40,714 | | $ | 41,308 | | $ | 40,913 | | | 3 | % | | 30 | % | | | | |
| Net charge-offs | | | 4,760 | | | 4,495 | | | 4,821 | | | 2,784 | | | 2,720 | | | 6 | % | | 75 | % | | | | |
| Net charge-offs to avg loans (annualized) | | | 0.48 | % | | 0.45 | % | | 0.48 | % | | 0.28 | % | | 0.27 | % | | 7 | % | | 78 | % | | | | |
| Non-performing assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Non-accrual loans | | $ | 40,972 | | $ | 27,603 | | $ | 30,683 | | $ | 30,242 | | $ | 30,048 | | | 48 | % | | 36 | % | | | | |
| Loans 90 days past due & still accruing | | | 29,826 | | | 13,571 | | | 7,024 | | | 6,790 | | | 2,315 | | | 120 | % | | 1,188 | % | | | | |
| Total non-performing loans | | | 70,798 | | | 41,174 | | | 37,707 | | | 37,032 | | | 32,363 | | | 72 | % | | 119 | % | | | | |
| Foreclosed real estate | | | 4,108 | | | 5,251 | | | 3,553 | | | 1,205 | | | 1,247 | | | (22 | %) | | 229 | % | | | | |
| Other foreclosed assets | | | 201 | | | 236 | | | 164 | | | 231 | | | 317 | | | (15 | %) | | (37 | %) | | | | |
| Total non-performing assets | | $ | 75,107 | | $ | 46,661 | | $ | 41,424 | | $ | 38,468 | | $ | 33,927 | | | 61 | % | | 121 | % | | | | |
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YIELD AND RATE ANALYSIS | | | | | | | | | | | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investment securities (FTE) | | | 4.61 | % | | 4.56 | % | | 4.42 | % | | 4.43 | % | | 4.54 | % | | | | | | | | | | |
| Short-term investments | | | 5.31 | % | | 6.61 | % | | 6.27 | % | | 5.64 | % | | 5.66 | % | | | | | | | | | | |
| Loans held for sale | | | 7.61 | % | | 6.51 | % | | 5.68 | % | | 4.86 | % | | 5.61 | % | | | | | | | | | | |
| Loans: Commercial | | | 7.80 | % | | 8.24 | % | | 8.27 | % | | 8.23 | % | | 8.08 | % | | | | | | | | | | |
| Commercial real estate | | | 7.42 | % | | 7.75 | % | | 7.76 | % | | 7.80 | % | | 7.83 | % | | | | | | | | | | |
| Residential real estate | | | 6.94 | % | | 7.13 | % | | 7.03 | % | | 7.05 | % | | 7.00 | % | | | | | | | | | | |
| Consumer | | | 7.96 | % | | 7.76 | % | | 7.69 | % | | 7.53 | % | | 7.41 | % | | | | | | | | | | |
| Total loans (FTE) | | | 7.48 | % | | 7.77 | % | | 7.77 | % | | 7.77 | % | | 7.74 | % | | | | | | | | | | |
| Total interest earning assets (FTE) | | | 6.96 | % | | 7.20 | % | | 7.17 | % | | 7.14 | % | | 7.07 | % | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest bearing deposits | | | 3.23 | % | | 3.44 | % | | 3.30 | % | | 3.25 | % | | 3.18 | % | | | | | | | | | | |
| Time deposits | | | 4.58 | % | | 4.70 | % | | 4.69 | % | | 4.65 | % | | 4.57 | % | | | | | | | | | | |
| Total bank issued deposits | | | 3.72 | % | | 3.92 | % | | 3.85 | % | | 3.82 | % | | 3.75 | % | | | | | | | | | | |
| Wholesale deposits | | | 5.11 | % | | 5.13 | % | | 5.11 | % | | 5.16 | % | | 5.10 | % | | | | | | | | | | |
| Short-term borrowings | | | 4.80 | % | | 5.08 | % | | 5.09 | % | | 4.85 | % | | 5.10 | % | | | | | | | | | | |
| Long-term borrowings | | | 5.63 | % | | 5.61 | % | | 5.62 | % | | 5.85 | % | | 5.86 | % | | | | | | | | | | |
| Total wholesale funding | | | 5.18 | % | | 5.27 | % | | 5.25 | % | | 5.34 | % | | 5.27 | % | | | | | | | | | | |
| Total interest bearing liabilities | | | 4.17 | % | | 4.35 | % | | 4.29 | % | | 4.28 | % | | 4.24 | % | | | | | | | | | | |
| Net interest spread | | | 2.79 | % | | 2.85 | % | | 2.88 | % | | 2.86 | % | | 2.83 | % | | | | | | | | | | |
| Net interest margin (FTE) | | | 3.28 | % | | 3.35 | % | | 3.39 | % | | 3.38 | % | | 3.34 | % | | | | | | | | | | |
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| FTE adjustment (000's) | | $ | 701 | | $ | 657 | | $ | 619 | | $ | 608 | | $ | 974 | | | | | | | | | | | |
