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| Katherine Taylor | Judy Carré Sutfin |
| Investor Relations Manager | Executive Vice President and CFO |
| 815-961-7164 | 815-961-7081 |
AMCORE Financial, Inc. Reports 1st Quarter Loss
ROCKFORD, IL — April 17, 2008
| (Numbers in Thousands, Except Per Share Data) | |
| | |
| | 1st quarter 2008 | | 1st quarter 2007 | | 4th quarter 2007 | |
| Net Revenues | | $ | 54,583 | | $ | 59,776 | | $ | 57,243 | |
| Net Income (Loss) | | | ($27,459 | ) | $ | 8,219 | | $ | 7,530 | |
| Diluted Shares | | | 21,952 | | | 23,804 | | | 22,175 | |
| Diluted EPS | | | ($1.25 | ) | $ | 0.35 | | $ | 0.34 | |
AMCORE Financial, Inc. (Nasdaq: AMFI) announced today a net loss for the first quarter 2008 of $27.5 million, a decrease from net income of $8.2 million in the prior-year period and $7.5 million in the previous quarter. The loss per diluted share for first quarter 2008 was $1.25, a decrease from earnings of $0.35 per diluted share in first quarter 2007, and $0.34 in the previous quarter.
“AMCORE, like most banks with a commercial real estate concentration, experienced rapidly growing non-performing loans in the first quarter. The weakness related primarily to builders and developers, as well as broader commercial real estate,” said William R. McManaman, CEO of AMCORE.
“We clearly recognize this is a very difficult environment for banks. Consequently, we have begun a process of evaluating our disciplines around our lending practices and have already implemented many improvements. We intend to further this process with the advice of independent advisors in order to establish a more disciplined execution environment and to respond to the recommendations of bank regulators. This process has commenced and will be completed before year-end.”
“AMCORE remains well capitalized, with adequate liquidity and has a strong deposit base throughout a solid market footprint,” stated Mr. McManaman.
Headlines
| · | Net interest income was $36.7 million, or 3.12 percent, of average earning assets in first quarter 2008 compared to $40.4 million, or 3.38 percent, in first quarter 2007, and $39.1 million, or 3.28 percent, of average earning assets in fourth quarter 2007. |
| · | Average loan balances decreased one percent, or $33.7 million, to $3.9 billion compared to first quarter 2007, while average investment securities declined three percent, or $22.8 million. Average bank issued deposits decreased five percent, or $178.0 million, to $3.3 billion compared to the first quarter 2007. |
| · | Provision for loan losses was $57.2 million, a $54.1 million increase from $3.2 million in first quarter 2007 and a $50.8 increase from $6.4 million in fourth quarter 2007. |
| - | Net charge-offs were $13.6 million, or 1.40 percent of average loans on an annualized basis, compared to $2.8 million and 0.28 percent in first quarter 2007, and $4.8 million and 0.48 percent in fourth quarter 2007, respectively. |
| - | Non-performing loans were $114 million, compared to $37 million at March 31, 2007 and $71 million at December 31, 2007. Non-performing loans include $113 million of non-accrual loans and $1 million of loans 90 days past due and still accruing. |
| · | Non-interest income decreased $1.5 million compared to first quarter 2007 and $245,000 compared to fourth quarter 2007. |
| · | Operating expenses remained flat compared to first quarter 2007, but increased $4.2 million compared to fourth quarter 2007. |
Revenues
Net revenues decreased $5.2 million to $54.6 million in first quarter 2008 from $59.8 million during the same quarter a year ago and $2.7 million from $57.2 million in the previous quarter. This was primarily due to stagnant net loan growth and a decrease in non-interest income.
Net interest income decreased to $36.7 million in first quarter 2008 from $40.4 million during the same quarter a year ago, and $39.1 million in fourth quarter 2007. The net interest margin decreased 26 basis points to 3.12 percent in first quarter 2008 from 3.38 percent in first quarter 2007, and decreased 16 basis points compared to fourth quarter 2007. Components contributing to the decrease included: the cost of funding the increased pool of non-accrual loans; a write down of nearly $800,000 of interest income from loans that were moved to non-accrual status during the quarter; and a seasonal reduction in bank-issued deposits.
Total non-interest income decreased $1.5 million compared to first quarter 2007 and decreased $245,000 compared to fourth quarter 2007. The first quarter 2008 amount included $1.01 million gain related to a distribution as a member of the VISA, Inc. organization and compares to a $2.4 million gain on the sale of the Originated Mortgage Servicing Rights portfolio in first quarter 2007.
Operating Expenses
Total operating expenses remained flat compared to first quarter 2007, but increased $4.2 million compared to fourth quarter 2007. Expenses in first quarter 2008 included a $3.1 million expense relating to unfunded loan commitments and $1.7 million in charges related to executive retirement and other severance costs.
Operating expenses in first quarter 2007 included personnel costs of $1.4 million relating to separation costs for mortgage servicing employees, an executive officer resignation, and a director’s supplemental retirement plan close out, and $2.3 million debt extinguishment expenses from a trust preferred securities redemption. Net occupancy and equipment expenses increased $526,000 in first quarter 2008 compared to first quarter 2007 primarily due to branch expansion, and were essentially offset by lower advertising and business development costs.
In first quarter 2008, AMCORE opened two branches in the suburban Chicago communities of Mt. Prospect and Wheaton.
Asset Quality & Loan Loss
The percentage of total non-performing assets to total assets was 2.25 percent at March 31, 2008, up from 0.73 percent at March 31, 2007 and 1.45 percent at December 31, 2007. AMCORE’s loan portfolio has been heavily concentrated in commercial real estate, specifically in construction and land development loans and non-residential commercial real estate loans. Construction and land development loans represent about 24 percent of total commercial loans outstanding and 19 percent of total loans. Of the specific allocations made in provision levels, 69 percent are from this portfolio.
Loans 90 days past due and still accruing decreased $5.7 million compared to first quarter 2007, and $28.7 million compared to the previous quarter.
Net charge-offs were $13.6 million, an increase of $10.9 million from first quarter 2007 and an increase of $8.9 million from fourth quarter 2007. Net charge-offs were 140 basis points of average loans on an annualized basis during first quarter 2008, compared to 28 basis points for first quarter 2007 and 48 basis points for fourth quarter 2007. The charged-off amounts during the quarter are primarily residential real estate development loans and commercial investment properties.
Provision for loan losses was $57.2 million, a $54.1 million increase from $3.2 million in first quarter 2007 and a $50.8 increase from $6.4 million in fourth quarter 2007, due to weakening in the residential and commercial real estate market. An additional $3.1 million reserve relating to unfunded loan commitments was recorded during the quarter and is reflected in the other category of operating expenses.
Regulatory and Compliance Update
On March 11, 2008, the Office of the Comptroller of the Currency (OCC) notified the Bank of its intent to enter into a written agreement to formalize the Bank’s commitment to address weaknesses in the Bank's commercial lending area. The terms of such agreement will likely include requirements for the Bank to improve credit underwriting and administration practices, among other things.
On April 14, 2008, the Company was notified by the OCC that the OCC has terminated the Consent Order issued on August 10, 2006, regarding the Bank Secrecy Act compliance program and the Formal Agreement issued on May 31, 2005 regarding the Bank’s consumer compliance program. “This is excellent news and demonstrates our Company’s commitment to compliance,” said Mr. McManaman.
Share Repurchase
The Company did not repurchase any shares during the quarter. The current authorization expires on May 3, 2008.
Additional financial data for the Company’s earnings call will be available in the presentation section of the Investor Relations page on the Company’s website at www.AMCORE.com.
AMCORE Financial, Inc. is headquartered in Northern Illinois and has banking assets of $5.2 billion with 80 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 prepayments; (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 accounting principles generally accepted in the United States of America; (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)
($ in 000's except per share data) SHARE DATA | | 1st Qtr. 2008 | | 4th Qtr. 2007 | | 3rd Qtr. 2007 | | 2nd Qtr. 2007 | | 1st Qtr. 2007 | | 1Q/4Q Inc(Dec) | | 1Q 08/07 Inc(Dec) | |
| Diluted earnings per share: | | $ | (1.25 | ) | $ | 0.34 | | $ | 0.08 | | $ | 0.46 | | $ | 0.35 | | | (468 | %) | | (457 | %) |
| Cash dividends | | $ | 0.185 | | $ | 0.185 | | $ | 0.185 | | $ | 0.185 | | $ | 0.185 | | | 0 | % | | 0 | % |
| Book value | | $ | 15.67 | | $ | 16.80 | | $ | 16.76 | | $ | 16.58 | | $ | 16.89 | | | (7 | %) | | (7 | %) |
| Average diluted shares outstanding | | | 21,952 | | | 22,175 | | | 22,657 | | | 23,098 | | | 23,804 | | | (1 | %) | | (8 | %) |
| Ending shares outstanding | | | 21,953 | | | 21,940 | | | 22,480 | | | 22,922 | | | 23,507 | | | 0 | % | | (7 | %) |
| | | | | | | | | | | | | | | | | | | | | | | |
INCOME STATEMENT | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Total Interest Income | | $ | 75,801 | | $ | 83,865 | | $ | 87,592 | | $ | 86,817 | | $ | 85,742 | | | (10 | %) | | (12 | %) |
| Total Interest Expense | | | 39,117 | | | 44,766 | | | 47,221 | | | 46,099 | | | 45,346 | | | (13 | %) | | (14 | %) |
Net interest income | | | 36,684 | | | 39,099 | | | 40,371 | | | 40,718 | | | 40,396 | | | (6 | %) | | (9 | %) |
| | | | | | | | | | | | | | | | | | | | | | | |
Provision for loan losses | | | 57,229 | | | 6,400 | | | 15,281 | | | 4,227 | | | 3,179 | | | 794 | % | | 1700 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Non-interest income: | | | | | | | | | | | | | | | | | | | | | | |
| Investment management & trust | | | 4,307 | | | 4,495 | | | 4,519 | | | 3,671 | | | 4,080 | | | (4 | %) | | 6 | % |
| Service charges on deposits | | | 7,334 | | | 8,001 | | | 7,852 | | | 7,436 | | | 6,329 | | | (8 | %) | | 16 | % |
| Net mortgage revenues | | | 345 | | | 191 | | | 234 | | | 509 | | | 859 | | | 81 | % | | (60 | %) |
| Company owned life insurance | | | 1,236 | | | 1,481 | | | 1,747 | | | 1,247 | | | 954 | | | (17 | %) | | 30 | % |
| Brokerage commission | | | 1,313 | | | 1,013 | | | 1,107 | | | 1,191 | | | 863 | | | 30 | % | | 52 | % |
| Bankcard fee income | | | 2,005 | | | 2,060 | | | 1,995 | | | 1,947 | | | 1,860 | | | (3 | %) | | 8 | % |
| Gain on sale of loans | | | - | | | 1 | | | - | | | 1 | | | 241 | | | N/M | | | N/M | |
| Net security (losses) gains | | | 1,010 | | | (346 | ) | | (5,574 | ) | | - | | | - | | | (392 | %) | | 0 | % |
| Other | | | 349 | | | 1,248 | | | 2,145 | | | 3,446 | | | 4,194 | | | (72 | %) | | (92 | %) |
Total non-interest income | | | 17,899 | | | 18,144 | | | 14,025 | | | 19,448 | | | 19,380 | | | (1 | %) | | (8 | %) |
| | | | | | | | | | | | | | | | | | | | | | | |
| Operating expenses: | | | | | | | | | | | | | | | | | | | | | | |
| Personnel costs | | | 24,374 | | | 22,278 | | | 22,188 | | | 23,998 | | | 26,460 | | | 9 | % | | (8 | %) |
| Net occupancy & equipment | | | 6,842 | | | 6,280 | | | 6,167 | | | 5,852 | | | 6,316 | | | 9 | % | | 8 | % |
| Data processing | | | 915 | | | 884 | | | 843 | | | 955 | | | 687 | | | 4 | % | | 33 | % |
| Professional fees | | | 2,383 | | | 2,061 | | | 2,503 | | | 1,904 | | | 1,929 | | | 16 | % | | 24 | % |
| Communication | | | 1,259 | | | 1,280 | | | 1,385 | | | 1,270 | | | 1,323 | | | (2 | %) | | (5 | %) |
| Advertising & business development | | | 708 | | | 1,400 | | | 794 | | | 835 | | | 1,137 | | | (49 | %) | | (38 | %) |
| Other | | | 8,418 | | | 6,566 | | | 5,180 | | | 5,734 | | | 7,130 | | | 28 | % | | 18 | % |
Total operating expenses | | | 44,899 | | | 40,749 | | | 39,060 | | | 40,548 | | | 44,982 | | | 10 | % | | (0 | %) |
| | | | | | | | | | | | | | | | | | | | | | | |
| Income before income taxes | | | (47,545 | ) | | 10,094 | | | 55 | | | 15,391 | | | 11,615 | | | N/M | | | (509 | %) |
| Income tax (benefit) expense | | | (20,086 | ) | | 2,564 | | | (1,834 | ) | | 4,788 | | | 3,396 | | | (883 | %) | | (691 | %) |
Net Income | | $ | (27,459 | ) | $ | 7,530 | | $ | 1,889 | | $ | 10,603 | | $ | 8,219 | | | (465 | %) | | (434 | %) |
KEY RATIOS AND DATA | | 1st Qtr. 2008 | | 4th Qtr. 2007 | | 3rd Qtr. 2007 | | 2nd Qtr. 2007 | | 1st Qtr. 2007 | | Basis Point Change | | Basis Point Change | |
| | | | | | | | | | | | | | | | |
| Net interest margin (FTE) | | | 3.12 | % | | 3.28 | % | | 3.35 | % | | 3.39 | % | | 3.38 | % | | (16 | ) | | (26 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
| Return on average assets | | | -2.13 | % | | 0.58 | % | | 0.14 | % | | 0.81 | % | | 0.63 | % | | (271 | ) | | (276 | ) |
| Return on average equity | | | -29.44 | % | | 7.94 | % | | 1.97 | % | | 10.99 | % | | 8.34 | % | | (3738 | ) | | (3778 | ) |
| Efficiency ratio | | | 82.26 | % | | 71.19 | % | | 71.81 | % | | 67.39 | % | | 75.25 | % | | 1107 | | | 701 | |
| Equity/assets (end of period) | | | 6.64 | % | | 7.10 | % | | 7.16 | % | | 7.17 | % | | 7.54 | % | | (46 | ) | | (90 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
| Allowance to loans (end of period) | | | 2.48 | % | | 1.35 | % | | 1.31 | % | | 1.01 | % | | 1.04 | % | | 113 | | | 144 | |
| Allowance to non-accrual loans | | | 86 | % | | 130 | % | | 187 | % | | 133 | % | | 137 | % | | (4405 | ) | | (5094 | ) |
| Allowance to non-performing loans | | | 85 | % | | 75 | % | | 125 | % | | 108 | % | | 112 | % | | 975 | | | (2674 | ) |
| Non-accrual loans to loans | | | 2.89 | % | | 1.04 | % | | 0.70 | % | | 0.76 | % | | 0.76 | % | | 185 | | | 213 | |
| Non-performing assets to total assets | | | 2.25 | % | | 1.45 | % | | 0.89 | % | | 0.78 | % | | 0.73 | % | | 80 | | | 152 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| ($ in millions) | | | | | | | | | | | | | | | | | | | | | | |
| Total assets under administration | | $ | 2,712 | | $ | 2,728 | | $ | 2,789 | | $ | 2,817 | | $ | 2,711 | | | (1 | %) | | 0 | % |
| Mortgage loans closed | | $ | 74 | | $ | 51 | | $ | 64 | | $ | 87 | | $ | 75 | | | 45 | % | | (1 | %) |
| Mortgage servicing rights, net | | $ | 0.1 | | $ | 0.1 | | $ | 0.1 | | $ | 1.2 | | $ | 0.7 | | | 0 | % | | (86 | %) |
AMCORE Financial, Inc.
CONSOLIDATED FINANCIAL SUMMARY (cont.)
(Unaudited)
| ($ in 000's) | | 1st Qtr. | | 4th Qtr. | | 3rd Qtr. | | 2nd Qtr. | | 1st Qtr. | | 1Q/4Q | | 1Q 08/07 | | Ending | |
AVERAGE BALANCE SHEET | | 2008 | | 2007 | | 2007 | | 2007 | | 2007 | | Inc(Dec) | | Inc(Dec) | | Balances | |
Assets: | | | | | | | | | | | | | | | | | |
| Investment securities , at cost | | $ | 874,672 | | $ | 871,626 | | $ | 860,426 | | $ | 868,713 | | $ | 897,511 | | | 0 | % | | (3 | %) | $ | 909,085 | |
| Short-term investments | | | 5,472 | | | 6,856 | | | 4,814 | | | 3,584 | | | 19,127 | | | (20 | %) | | (71 | %) | | 1,517 | |
| Loans held for sale | | | 8,565 | | | 6,653 | | | 8,514 | | | 13,477 | | | 12,305 | | | 29 | % | | (30 | %) | | 9,286 | |
| Loans: Commercial | | | 774,482 | | | 776,557 | | | 803,529 | | | 809,739 | | | 803,570 | | | (0 | %) | | (4 | %) | | 783,176 | |
| Commercial real estate | | | 2,346,154 | | | 2,358,906 | | | 2,382,397 | | | 2,389,201 | | | 2,354,882 | | | (1 | %) | | (0 | %) | | 2,336,499 | |
| Residential real estate | | | 473,545 | | | 488,532 | | | 491,982 | | | 495,046 | | | 498,427 | | | (3 | %) | | (5 | %) | | 447,201 | |
| Consumer | | | 335,272 | | | 319,808 | | | 316,879 | | | 312,404 | | | 306,268 | | | 5 | % | | 9 | % | | 336,166 | |
| Total loans | | $ | 3,929,453 | | $ | 3,943,803 | | $ | 3,994,787 | | $ | 4,006,390 | | $ | 3,963,147 | | | (0 | %) | | (1 | %) | $ | 3,903,042 | |
| Total earning assets | | $ | 4,818,162 | | $ | 4,828,938 | | $ | 4,868,541 | | $ | 4,892,164 | | $ | 4,892,090 | | | (0 | %) | | (2 | %) | $ | 4,822,930 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Allowance for loan losses | | | (53,982 | ) | | (52,499 | ) | | (42,354 | ) | | (43,069 | ) | | (41,653 | ) | | 3 | % | | 30 | % | | (96,732 | ) |
| Goodwill | | | 6,148 | | | 6,148 | | | 6,148 | | | 6,148 | | | 6,148 | | | 0 | % | | 0 | % | | 6,148 | |
| Other non-earning assets | | | 404,324 | | | 412,641 | | | 414,042 | | | 410,019 | | | 399,135 | | | (2 | %) | | 1 | % | | 444,176 | |
| Total assets | | $ | 5,174,652 | | $ | 5,195,228 | | $ | 5,246,377 | | $ | 5,265,262 | | $ | 5,255,720 | | | (0 | %) | | (2 | %) | $ | 5,176,522 | |
Liabilities and Stockholders' Equity: | | | | | | | | | | | | | | | | | | | | �� | | | | | |
| Non-interest bearing deposits | | $ | 479,571 | | $ | 496,301 | | $ | 499,550 | | $ | 502,813 | | $ | 492,766 | | | (3 | %) | | (3 | %) | $ | 489,695 | |
| Interest bearing deposits | | | 1,824,232 | | | 1,873,883 | | | 1,809,846 | | | 1,786,600 | | | 1,784,489 | | | (3 | %) | | 2 | % | | 1,899,839 | |
| Time deposits | | | 994,795 | | | 1,067,981 | | | 1,130,992 | | | 1,161,978 | | | 1,199,365 | | | (7 | %) | | (17 | %) | | 946,201 | |
| Total bank issued deposits | | $ | 3,298,598 | | $ | 3,438,165 | | $ | 3,440,388 | | $ | 3,451,391 | | $ | 3,476,620 | | | (4 | %) | | (5 | %) | $ | 3,335,735 | |
| Wholesale deposits | | | 593,083 | | | 620,500 | | | 649,906 | | | 648,270 | | | 746,629 | | | (4 | %) | | (21 | %) | | 601,946 | |
| Short-term borrowings | | | 485,708 | | | 327,678 | | | 294,584 | | | 323,911 | | | 157,511 | | | 48 | % | | 208 | % | | 495,116 | |
| Long-term borrowings | | | 367,492 | | | 368,657 | | | 421,826 | | | 389,008 | | | 406,936 | | | (0 | %) | | (10 | %) | | 343,872 | |
| Total wholesale funding | | $ | 1,446,283 | | $ | 1,316,835 | | $ | 1,366,316 | | $ | 1,361,189 | | $ | 1,311,076 | | | 10 | % | | 10 | % | $ | 1,440,934 | |
| Total interest bearing liabilities | | | 4,265,310 | | | 4,258,699 | | | 4,307,154 | | | 4,309,767 | | | 4,294,930 | | | 0 | % | | (1 | %) | | 4,286,974 | |
| Other liabilities | | | 54,695 | | | 64,144 | | | 59,949 | | | 65,784 | | | 68,126 | | | (15 | %) | | (20 | %) | | 55,915 | |
| Total liabilities | | $ | 4,799,576 | | $ | 4,819,144 | | $ | 4,866,653 | | $ | 4,878,364 | | $ | 4,855,822 | | | (0 | %) | | (1 | %) | $ | 4,832,584 | |
| Stockholders' equity | | | 373,870 | | | 377,775 | | | 391,731 | | | 396,666 | | | 411,131 | | | (1 | %) | | (9 | %) | | 341,141 | |
| Other comprehensive loss | | | 1,206 | | | (1,691 | ) | | (12,007 | ) | | (9,768 | ) | | (11,233 | ) | | (171 | %) | | (111 | %) | | 2,797 | |
| Total stockholders' equity | | | 375,076 | | | 376,084 | | | 379,724 | | | 386,898 | | | 399,898 | | | (0 | %) | | (6 | %) | | 343,938 | |
| Total liabilities & stockholders' equity | | $ | 5,174,652 | | $ | 5,195,228 | | $ | 5,246,377 | | $ | 5,265,262 | | $ | 5,255,720 | | | (0 | %) | | (2 | %) | $ | 5,176,522 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | �� | | | | | | | | |
CREDIT QUALITY | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ending allowance for loan losses | | $ | 96,732 | | $ | 53,140 | | $ | 51,500 | | $ | 40,714 | | $ | 41,308 | | | 82 | % | | 134 | % | | | |
| Net charge-offs | | | 13,636 | | | 4,760 | | | 4,495 | | | 4,821 | | | 2,784 | | | 186 | % | | 390 | % | | | |
| Net charge-offs to avg loans (annualized) | | | 1.40 | % | | 0.48 | % | | 0.45 | % | | 0.48 | % | | 0.28 | % | | 192 | % | | 400 | % | | | |
| Non-performing assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
| Non-accrual loans | | $ | 112,945 | | $ | 40,972 | | $ | 27,603 | | $ | 30,683 | | $ | 30,242 | | | 176 | % | | 273 | % | | | |
| Loans 90 days past due & still accruing | | | 1,107 | | | 29,826 | | | 13,571 | | | 7,024 | | | 6,790 | | | (96 | %) | | (84 | %) | | | |
| Total non-performing loans | | | 114,052 | | | 70,798 | | | 41,174 | | | 37,707 | | | 37,032 | | | 61 | % | | 208 | % | | | |
| Foreclosed real estate | | | 2,422 | | | 4,108 | | | 5,251 | | | 3,553 | | | 1,205 | | | (41 | %) | | 101 | % | | | |
| Other foreclosed assets | | | 246 | | | 201 | | | 236 | | | 164 | | | 231 | | | 22 | % | | 6 | % | | | |
| Total non-performing assets | | $ | 116,720 | | $ | 75,107 | | $ | 46,661 | | $ | 41,424 | | $ | 38,468 | | | 55 | % | | 203 | % | | | |
YIELD AND RATE ANALYSIS | | | | | | | | | | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investment securities (FTE) | | | 4.71 | % | | 4.61 | % | | 4.56 | % | | 4.42 | % | | 4.43 | % | | | | | | | | | |
| Short-term investments | | | 4.04 | % | | 5.31 | % | | 6.61 | % | | 6.27 | % | | 5.64 | % | | | | | | | | | |
| Loans held for sale | | | 6.54 | % | | 7.61 | % | | 6.51 | % | | 5.68 | % | | 4.86 | % | | | | | | | | | |
| Loans: Commercial | | | 6.78 | % | | 7.80 | % | | 8.24 | % | | 8.27 | % | | 8.23 | % | | | | | | | | | |
| Commercial real estate | | | 6.66 | % | | 7.42 | % | | 7.75 | % | | 7.76 | % | | 7.80 | % | | | | | | | | | |
| Residential real estate | | | 6.40 | % | | 6.94 | % | | 7.13 | % | | 7.03 | % | | 7.05 | % | | | | | | | | | |
| Consumer | | | 7.93 | % | | 7.96 | % | | 7.76 | % | | 7.69 | % | | 7.53 | % | | | | | | | | | |
| Total loans (FTE) | | | 6.76 | % | | 7.48 | % | | 7.77 | % | | 7.77 | % | | 7.77 | % | | | | | | | | | |
| Total interest earning assets (FTE) | | | 6.38 | % | | 6.96 | % | | 7.20 | % | | 7.17 | % | | 7.14 | % | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest bearing deposits | | | 2.42 | % | | 3.23 | % | | 3.44 | % | | 3.30 | % | | 3.25 | % | | | | | | | | | |
| Time deposits | | | 4.36 | % | | 4.58 | % | | 4.70 | % | | 4.69 | % | | 4.65 | % | | | | | | | | | |
| Total bank issued deposits | | | 3.11 | % | | 3.72 | % | | 3.92 | % | | 3.85 | % | | 3.82 | % | | | | | | | | | |
| Wholesale deposits | | | 5.02 | % | | 5.11 | % | | 5.13 | % | | 5.11 | % | | 5.16 | % | | | | | | | | | |
| Short-term borrowings | | | 4.02 | % | | 4.80 | % | | 5.08 | % | | 5.09 | % | | 4.85 | % | | | | | | | | | |
| Long-term borrowings | | | 5.55 | % | | 5.63 | % | | 5.61 | % | | 5.62 | % | | 5.85 | % | | | | | | | | | |
| Total wholesale funding | | | 4.82 | % | | 5.18 | % | | 5.27 | % | | 5.25 | % | | 5.34 | % | | | | | | | | | |
| Total interest bearing liabilities | | | 3.69 | % | | 4.17 | % | | 4.35 | % | | 4.29 | % | | 4.28 | % | | | | | | | | | |
| Net interest spread | | | 2.69 | % | | 2.79 | % | | 2.85 | % | | 2.88 | % | | 2.86 | % | | | | | | | | | |
| Net interest margin (FTE) | | | 3.12 | % | | 3.28 | % | | 3.35 | % | | 3.39 | % | | 3.38 | % | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| FTE adjustment (000's) | | $ | 746 | | $ | 701 | | $ | 657 | | $ | 619 | | $ | 608 | | | | | | | | | | |
