| For media inquiries: | For financial inquiries: |
| Katherine Taylor | Judy Carré Sutfin |
| Investor Relations Manager | Executive Vice President and CFO |
| 815-961-7164 | 815-961-7081 |
AMCORE FINANCIAL, INC. REPORTS 2ND QUARTER LOSS
| ROCKFORD, Ill., July 17 /PRNewswire-FirstCall/ -- | | | | | |
| | | | | | | | |
| (Numbers in Thousands, Except Per Share Data) |
| | | | | | | | |
| | | 2nd quarter 2008 | | 2nd quarter 2007 | | 1st quarter 2008 | |
| Net Revenues | | $ | 55,559 | | $ | 60,166 | | $ | 54,583 | |
| Net Income (Loss) | | | ($20,234 | ) | $ | 10,603 | | | ($27,459 | ) |
| Diluted Shares | | | 22,246 | | | 23,389 | | | 22,233 | |
| Diluted EPS | | | ($0.91 | ) | $ | 0.46 | | | ($1.25 | ) |
AMCORE Financial, Inc. (Nasdaq: AMFI) announced today a net loss for the second quarter 2008 of ($20.2) million, compared to net income of $10.6 million in the prior-year period and a ($27.5) million loss in the previous quarter. The loss per diluted share for second quarter 2008 was ($0.91), a decrease from earnings of $0.46 per diluted share in second quarter 2007 and an improvement from the loss of ($1.25) in the previous quarter.
“While uncertainty surrounding the general economy and financial services industry has negatively affected our stock price, we remain a well-capitalized bank and have sufficient liquidity. We are confident the actions we have taken to address our credit practices and efficiency issues will help strengthen our financial position,” said William R. McManaman, Chairman and CEO of AMCORE. “AMCORE has been diligent in recognizing and addressing our credit issues and our progress continued in the second quarter.” The following reflects some of the key actions:
| | · | Tightened our credit disciplines and strengthened our commercial credit approval process to provide more consistent controls. |
| | · | Reassessed the risk grading of our commercial loan portfolio to reflect current market conditions. |
| | · | Initiated an experienced, independent third-party review of our lending policies, procedures and practices, which should be completed in the third quarter. |
| | · | Named a new Chief Credit Officer. |
| | · | Named a new manager of Loan and Appraisal Review. |
Headlines
| | · | Net interest income was $36.0 million, or 3.07 percent of average earning assets in second quarter 2008, compared to $40.7 million, or 3.39 percent, in second quarter 2007, and $36.7 million, or 3.12 percent of average earning assets in first quarter 2008. |
| | · | Average loan balances decreased three percent, or $109.5 million, to $3.9 billion compared to second quarter 2007, while average investment securities increased three percent, or $25.0 million. Average bank issued deposits decreased seven percent, or $232.2 million, to $3.2 billion compared to the second quarter 2007. |
| | · | Provision for loan losses was $40 million, a $35.8 million increase from $4.2 million in second quarter 2007 and a $17.2 million decrease from $57.2 million in first quarter 2008. An additional $3.1 million expense relating to unfunded loan commitments was reported in operating expenses in first quarter 2008. |
| | - | Net charge-offs were $3.3 million, or 0.34 percent of average loans on an annualized basis, compared to $4.8 million and 0.48 percent in second quarter 2007, and $13.6 million and 1.40 percent in first quarter 2008, respectively. Provision for loan losses are accrued when losses are probable, whereas chargeoffs occur when the loss is subsequently confirmed. |
| | - | Non-performing loans were $171.8 million, compared to $37.7 million at June 30, 2007 and $114.1 million at March 31, 2008. |
| | · | Non-interest income was flat compared to second quarter 2007 and increased nine percent, or $1.6 million, compared to first quarter 2008. |
| | · | To better utilize capacity and increase efficiencies, AMCORE will consolidate four facilities and recorded $1.5 million in associated property write-downs during the second quarter. AMCORE also recorded a non-cash charge to remove all goodwill from the balance sheet, totaling $6.1 million. This charge was neutral in its effect on regulatory capital levels. |
| | · | AMCORE is moving forward to better meet customer needs and now offers a surcharge-free ATM network for AMCORE cardholders that expands the Company’s channel of ATMs from roughly 350 to more than 800 throughout Illinois and Wisconsin, and more than 14,000 across the country. |
Revenues
Net revenues decreased $4.6 million to $55.6 million in second quarter 2008 from $60.2 million during the same quarter a year ago and increased $976,000 from $54.6 million in the previous quarter. The decrease from a year ago was primarily due to lower loan balances and increased levels of non-accrual loans.
Net interest income decreased to $36.0 million in second quarter 2008 from $40.7 million during the same quarter a year ago and $36.7 million in first quarter 2008. The net interest margin decreased 32 basis points to 3.07 percent in second quarter 2008 from 3.39 percent in second quarter 2007, and decreased five basis points compared to first quarter 2008. Components contributing to the decrease included: increased non-accrual loans, including the reversal of interest income of nearly $1.0 million from loans that were moved to non-accrual status during the quarter; and a decline in average loan balances.
Total non-interest income was essentially flat compared to second quarter 2007 and increased nine percent, or $1.6 million, compared to first quarter 2008 primarily due to increases in deposit service charges and derivative mark-to-market income in the current quarter compared to losses in the previous quarter.
Operating Expenses
Expenses in second quarter 2008 were $48.3 million and included $1.5 million in charges related to the planned consolidation of four facilities in order to better utilize resources; $6.1 million reduction in goodwill and $1.3 million of increased FDIC insurance premiums. 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.
Asset Quality & Loan Loss
The percentage of total non-performing assets to total assets was 3.50 percent at June 30, 2008, up from 0.78 percent at June 30, 2007 and 2.25 percent at March 31, 2008. 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, 61 percent are from this portfolio.
Net charge-offs were $3.3 million, a decrease of $1.5 million from second quarter 2007 and a decrease of $10.3 million from first quarter 2008. Net charge-offs were 34 basis points of average loans on an annualized basis during second quarter 2008, compared to 48 basis points for second quarter 2007 and 140 basis points for first quarter 2008. Provision for loan losses are accrued when losses are probable and estimable, whereas chargeoffs occur when the loss is subsequently confirmed.
Provision for loan losses was $40 million, a $35.8 million increase from $4.2 million in second quarter 2007 and a $17.2 decrease from $57.2 million in first quarter 2008.
Judy Carré Sutfin, Executive Vice President and CFO stated, “A positive indicator is the fact that delinquencies, which include loans more than 30 days past due, are down 12 percent quarter over quarter. While there is no doubt that last quarter’s delinquencies contributed to this quarter’s increase in non-performing loans, the delinquencies that migrated to non-performing were not replaced at the same pace as the previous quarter.”
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.
CONSOLIDATED FINANCIAL SUMMARY
(Unaudited)
| | | | | | | | | | | | | | | | |
| ($ in 000's except per share data) | | 2nd Qtr. | | 1st Qtr. | | 4th Qtr. | | 3rd Qtr. | | 2nd Qtr. | | 2Q/1Q | | 2Q 08/07 | |
SHARE DATA | | 2008 | | 2008 | | 2007 | | 2007 | | 2007 | | Inc(Dec) | | Inc(Dec) | |
| Diluted earnings per share: | | $ | (0.91 | ) | $ | (1.25 | ) | $ | 0.34 | | $ | 0.08 | | $ | 0.46 | | | (27 | %) | | (298 | %) |
| Cash dividends | | $ | 0.05 | | $ | 0.185 | | $ | 0.185 | | $ | 0.185 | | $ | 0.185 | | | (73 | %) | | (73 | %) |
| Book value | | $ | 14.08 | | $ | 15.67 | | $ | 16.80 | | $ | 16.76 | | $ | 16.58 | | | (10 | %) | | (15 | %) |
| Average diluted shares outstanding | | | 22,246 | | | 22,233 | | | 22,466 | | | 22,948 | | | 23,389 | | | 0 | % | | (5 | %) |
| Ending shares outstanding | | | 22,279 | | | 22,244 | | | 22,231 | | | 22,771 | | | 23,213 | | | 0 | % | | (4 | %) |
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INCOME STATEMENT | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Total Interest Income | | $ | 69,088 | | $ | 75,801 | | $ | 83,865 | | $ | 87,592 | | $ | 86,817 | | | (9 | %) | | (20 | %) |
| Total Interest Expense | | | 33,062 | | | 39,117 | | | 44,766 | | | 47,221 | | | 46,099 | | | (15 | %) | | (28 | %) |
Net interest income | | | 36,026 | | | 36,684 | | | 39,099 | | | 40,371 | | | 40,718 | | | (2 | %) | | (12 | %) |
| | | | | | | | | | | | | | | | | | | | | | | |
Provision for loan losses | | | 40,000 | | | 57,229 | | | 6,400 | | | 15,281 | | | 4,227 | | | (30 | %) | | 846 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Non-interest income: | | | | | | | | | | | | | | | | | | | | | | |
| Investment management & trust | | | 4,394 | | | 4,307 | | | 4,495 | | | 4,519 | | | 3,671 | | | 2 | % | | 20 | % |
| Service charges on deposits | | | 8,680 | | | 7,334 | | | 8,001 | | | 7,852 | | | 7,436 | | | 18 | % | | 17 | % |
| Net mortgage revenues | | | (5 | ) | | 345 | | | 202 | | | 230 | | | 513 | | | (101 | %) | | (101 | %) |
| Company owned life insurance | | | 1,106 | | | 1,236 | | | 1,481 | | | 1,747 | | | 1,247 | | | (11 | %) | | (11 | %) |
| Brokerage commission | | | 1,258 | | | 1,313 | | | 1,013 | | | 1,107 | | | 1,191 | | | (4 | %) | | 6 | % |
| Bankcard fee income | | | 2,286 | | | 2,005 | | | 2,060 | | | 1,995 | | | 1,947 | | | 14 | % | | 17 | % |
| Net security (losses) gains | | | - | | | 1,010 | | | (346 | ) | | (5,574 | ) | | - | | | (100 | %) | | 0 | % |
| Other | | | 1,814 | | | 349 | | | 1,238 | | | 2,149 | | | 3,443 | | | 420 | % | | (47 | %) |
Total non-interest income | | | 19,533 | | | 17,899 | | | 18,144 | | | 14,025 | | | 19,448 | | | 9 | % | | 0 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Operating expenses: | | | | | | | | | | | | | | | | | | | | | | |
| Personnel costs | | | 22,039 | | | 24,374 | | | 22,278 | | | 22,188 | | | 23,998 | | | (10 | %) | | (8 | %) |
| Net occupancy & equipment | | | 6,469 | | | 6,842 | | | 6,280 | | | 6,167 | | | 5,852 | | | (5 | %) | | 11 | % |
| Data processing | | | 763 | | | 751 | | | 884 | | | 843 | | | 955 | | | 2 | % | | (20 | %) |
| Professional fees | | | 1,955 | | | 2,547 | | | 2,061 | | | 2,503 | | | 1,904 | | | (23 | %) | | 3 | % |
| Communication | | | 1,301 | | | 1,259 | | | 1,280 | | | 1,385 | | | 1,270 | | | 3 | % | | 2 | % |
| Advertising & business development | | | 616 | | | 708 | | | 1,400 | | | 794 | | | 835 | | | (13 | %) | | (26 | %) |
| Other | | | 15,174 | | | 8,418 | | | 6,566 | | | 5,180 | | | 5,734 | | | 80 | % | | 165 | % |
Total operating expenses | | | 48,317 | | | 44,899 | | | 40,749 | | | 39,060 | | | 40,548 | | | 8 | % | | 19 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Income before income taxes | | | (32,758 | ) | | (47,545 | ) | | 10,094 | | | 55 | | | 15,391 | | | (31 | %) | | (313 | %) |
| Income tax (benefit) expense | | | (12,524 | ) | | (20,086 | ) | | 2,564 | | | (1,834 | ) | | 4,788 | | | (38 | %) | | (362 | %) |
Net Income | | $ | (20,234 | ) | $ | (27,459 | ) | $ | 7,530 | | $ | 1,889 | | $ | 10,603 | | | (26 | %) | | (291 | %) |
| | | | | | | | | | | | | | | | |
| | | 2nd Qtr. | | 1st Qtr. | | 4th Qtr. | | 3rd Qtr. | | 2nd Qtr. | | Basis Point | | Basis Point | |
KEY RATIOS AND DATA | | 2008 | | 2008 | | 2007 | | 2007 | | 2007 | | Change | | Change | |
| | | | | | | | | | | | | | | | |
| Net interest margin (FTE) | | | 3.07 | % | | 3.12 | % | | 3.28 | % | | 3.35 | % | | 3.39 | % | | (5 | ) | | (32 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
| Return on average assets | | | -1.58 | % | | -2.13 | % | | 0.58 | % | | 0.14 | % | | 0.81 | % | | 55 | | | (239 | ) |
| Return on average equity | | | -23.54 | % | | -29.44 | % | | 7.94 | % | | 1.97 | % | | 10.99 | % | | 590 | | | (3453 | ) |
| Efficiency ratio | | | 86.97 | % | | 82.26 | % | | 71.19 | % | | 71.81 | % | | 67.39 | % | | 471 | | | 1958 | |
| Equity/assets (end of period) | | | 6.06 | % | | 6.64 | % | | 7.10 | % | | 7.16 | % | | 7.17 | % | | (58 | ) | | (111 | ) |
| | | | | | | | | | | | | | | | | | | | | | | |
| Allowance to loans (end of period) | | | 3.44 | % | | 2.48 | % | | 1.35 | % | | 1.31 | % | | 1.01 | % | | 96 | | | 243 | |
| Allowance to non-accrual loans | | | 78 | % | | 86 | % | | 130 | % | | 187 | % | | 133 | % | | (760 | ) | | (5464 | ) |
| Allowance to non-performing loans | | | 78 | % | | 85 | % | | 75 | % | | 125 | % | | 108 | % | | (717 | ) | | (3033 | ) |
| Non-accrual loans to loans | | | 4.40 | % | | 2.89 | % | | 1.04 | % | | 0.70 | % | | 0.76 | % | | 151 | | | 364 | |
| Non-performing assets to total assets | | | 3.50 | % | | 2.25 | % | | 1.45 | % | | 0.89 | % | | 0.78 | % | | 125 | | | 272 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| ($ in millions) | | | | | | | | | | | | | | | | | | | | | | |
| Total assets under administration | | $ | 2,458 | | $ | 2,712 | | $ | 2,728 | | $ | 2,789 | | $ | 2,817 | | | (9 | %) | | (13 | %) |
| Mortgage loans closed | | $ | 72 | | $ | 74 | | $ | 51 | | $ | 64 | | $ | 87 | | | (3 | %) | | (17 | %) |
| Mortgage servicing rights, net | | $ | 0.1 | | $ | 0.1 | | $ | 0.1 | | $ | 0.1 | | $ | 1.2 | | | 0 | % | | (92 | %) |
AMCORE Financial, Inc.
CONSOLIDATED FINANCIAL SUMMARY (cont.)
(Unaudited)
| | | | | | | | | | | | | | | | | | |
| ($ in 000's) | | 2nd Qtr. | | 1st Qtr. | | 4th Qtr. | | 3rd Qtr. | | 2nd Qtr. | | 2Q/1Q | | 2Q 08/07 | | Ending | |
AVERAGE BALANCE SHEET | | 2008 | | 2008 | | 2007 | | 2007 | | 2007 | | Inc(Dec) | | Inc(Dec) | | Balances | |
Assets: | | | | | | | | | | | | | | | | | |
| Investment securities , at cost | | $ | 893,769 | | $ | 874,672 | | $ | 871,626 | | $ | 860,426 | | $ | 868,713 | | | 2 | % | | 3 | % | $ | 897,612 | |
| Short-term investments | | | 18,992 | | | 5,472 | | | 6,856 | | | 4,814 | | | 3,584 | | | 247 | % | | 430 | % | | 4,135 | |
| Loans held for sale | | | 7,811 | | | 8,565 | | | 6,653 | | | 8,514 | | | 13,477 | | | (9 | %) | | (42 | %) | | 8,263 | |
| Loans: Commercial | | | 785,912 | | | 774,482 | | | 776,557 | | | 803,529 | | | 809,739 | | | 1 | % | | (3 | %) | | 793,294 | |
| Commercial real estate | | | 2,310,215 | | | 2,346,154 | | | 2,358,906 | | | 2,382,397 | | | 2,389,201 | | | (2 | %) | | (3 | %) | | 2,290,191 | |
| Residential real estate | | | 455,929 | | | 473,545 | | | 488,532 | | | 491,982 | | | 495,046 | | | (4 | %) | | (8 | %) | | 439,368 | |
| Consumer | | | 344,787 | | | 335,272 | | | 319,808 | | | 316,879 | | | 312,404 | | | 3 | % | | 10 | % | | 358,038 | |
| Total loans | | $ | 3,896,843 | | $ | 3,929,453 | | $ | 3,943,803 | | $ | 3,994,787 | | $ | 4,006,390 | | | (1 | %) | | (3 | %) | $ | 3,880,891 | |
| Total earning assets | | $ | 4,817,415 | | $ | 4,818,162 | | $ | 4,828,938 | | $ | 4,868,541 | | $ | 4,892,164 | | | (0 | %) | | (2 | %) | $ | 4,790,901 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Allowance for loan losses | | | (99,197 | ) | | (53,982 | ) | | (52,499 | ) | | (42,354 | ) | | (43,069 | ) | | 84 | % | | 130 | % | | (133,393 | ) |
| Goodwill | | | 6,081 | | | 6,148 | | | 6,148 | | | 6,148 | | | 6,148 | | | (1 | %) | | (1 | %) | | - | |
| Other non-earning assets | | | 424,046 | | | 404,324 | | | 412,641 | | | 414,042 | | | 410,019 | | | 5 | % | | 3 | % | | 517,288 | |
| Total assets | | $ | 5,148,345 | | $ | 5,174,652 | | $ | 5,195,228 | | $ | 5,246,377 | | $ | 5,265,262 | | | (1 | %) | | (2 | %) | $ | 5,174,796 | |
Liabilities and Stockholders' Equity: | | | | | | | | | | | | | | | | | | | | | | | | | |
| Non-interest bearing deposits | | $ | 492,882 | | $ | 479,571 | | $ | 496,301 | | $ | 499,550 | | $ | 502,813 | | | 3 | % | | (2 | %) | $ | 512,316 | |
| Interest bearing deposits | | | 1,781,361 | | | 1,824,232 | | | 1,873,883 | | | 1,809,846 | | | 1,786,600 | | | (2 | %) | | (0 | %) | | 1,669,275 | |
| Time deposits | | | 944,914 | | | 994,795 | | | 1,067,981 | | | 1,130,992 | | | 1,161,978 | | | (5 | %) | | (19 | %) | | 991,233 | |
| Total bank issued deposits | | $ | 3,219,157 | | $ | 3,298,598 | | $ | 3,438,165 | | $ | 3,440,388 | | $ | 3,451,391 | | | (2 | %) | | (7 | %) | $ | 3,172,824 | |
| Wholesale deposits | | | 683,246 | | | 593,083 | | | 620,500 | | | 649,906 | | | 648,270 | | | 15 | % | | 5 | % | | 783,546 | |
| Short-term borrowings | | | 480,092 | | | 485,708 | | | 327,678 | | | 294,584 | | | 323,911 | | | (1 | %) | | 48 | % | | 482,125 | |
| Long-term borrowings | | | 364,277 | | | 367,492 | | | 368,657 | | | 421,826 | | | 389,008 | | | (1 | %) | | (6 | %) | | 364,290 | |
| Total wholesale funding | | $ | 1,527,615 | | $ | 1,446,283 | | $ | 1,316,835 | | $ | 1,366,316 | | $ | 1,361,189 | | | 6 | % | | 12 | % | $ | 1,629,961 | |
| Total interest bearing liabilities | | | 4,253,890 | | | 4,265,310 | | | 4,258,699 | | | 4,307,154 | | | 4,309,767 | | | (0 | %) | | (1 | %) | | 4,290,469 | |
| Other liabilities | | | 55,914 | | | 54,695 | | | 64,144 | | | 59,949 | | | 65,784 | | | 2 | % | | (15 | %) | | 58,245 | |
| Total liabilities | | $ | 4,802,686 | | $ | 4,799,576 | | $ | 4,819,144 | | $ | 4,866,653 | | $ | 4,878,364 | | | 0 | % | | (2 | %) | $ | 4,861,030 | |
| Stockholders' equity | | | 345,498 | | | 373,870 | | | 377,775 | | | 391,731 | | | 396,666 | | | (8 | %) | | (13 | %) | | 320,312 | |
| Other comprehensive loss | | | 161 | | | 1,206 | | | (1,691 | ) | | (12,007 | ) | | (9,768 | ) | | (87 | %) | | (102 | %) | | (6,546 | ) |
| Total stockholders' equity | | | 345,659 | | | 375,076 | | | 376,084 | | | 379,724 | | | 386,898 | | | (8 | %) | | (11 | %) | | 313,766 | |
| Total liabilities & stockholders' equity | | $ | 5,148,345 | | $ | 5,174,652 | | $ | 5,195,228 | | $ | 5,246,377 | | $ | 5,265,262 | | | (1 | %) | | (2 | %) | $ | 5,174,796 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
CREDIT QUALITY | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ending allowance for loan losses | | $ | 133,393 | | $ | 96,732 | | $ | 53,140 | | $ | 51,500 | | $ | 40,714 | | | 38 | % | | 228 | % | | | |
| Net charge-offs | | | 3,339 | | | 13,637 | | | 4,760 | | | 4,495 | | | 4,821 | | | (76 | %) | | (31 | %) | | | |
| Net charge-offs to avg loans (annualized) | | | 0.34 | % | | 1.40 | % | | 0.48 | % | | 0.45 | % | | 0.48 | % | | (76 | %) | | (29 | %) | | | |
| Non-performing assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
| Non-accrual loans | | $ | 170,910 | | $ | 112,945 | | $ | 40,972 | | $ | 27,603 | | $ | 30,683 | | | 51 | % | | 457 | % | | | |
| Loans 90 days past due & still accruing | | | 894 | | | 1,107 | | | 29,826 | | | 13,571 | | | 7,024 | | | (19 | %) | | (87 | %) | | | |
| Total non-performing loans | | | 171,804 | | | 114,052 | | | 70,798 | | | 41,174 | | | 37,707 | | | 51 | % | | 356 | % | | | |
| Foreclosed real estate | | | 8,906 | | | 2,422 | | | 4,108 | | | 5,251 | | | 3,553 | | | 268 | % | | 151 | % | | | |
| Other foreclosed assets | | | 257 | | | 246 | | | 201 | | | 236 | | | 164 | | | 4 | % | | 57 | % | | | |
| Total non-performing assets | | $ | 180,967 | | $ | 116,720 | | $ | 75,107 | | $ | 46,661 | | $ | 41,424 | | | 55 | % | | 337 | % | | | |
YIELD AND RATE ANALYSIS | | | | | | | | | | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investment securities (FTE) | | | 4.70 | % | | 4.71 | % | | 4.61 | % | | 4.56 | % | | 4.42 | % | | | | | | | | | |
| Short-term investments | | | 2.16 | % | | 4.04 | % | | 5.31 | % | | 6.61 | % | | 6.27 | % | | | | | | | | | |
| Loans held for sale | | | 5.96 | % | | 6.54 | % | | 7.61 | % | | 6.51 | % | | 5.68 | % | | | | | | | | | |
| Loans: Commercial | | | 5.92 | % | | 6.78 | % | | 7.80 | % | | 8.24 | % | | 8.27 | % | | | | | | | | | |
| Commercial real estate | | | 5.94 | % | | 6.66 | % | | 7.42 | % | | 7.75 | % | | 7.76 | % | | | | | | | | | |
| Residential real estate | | | 5.94 | % | | 6.40 | % | | 6.94 | % | | 7.13 | % | | 7.03 | % | | | | | | | | | |
| Consumer | | | 7.90 | % | | 7.93 | % | | 7.96 | % | | 7.76 | % | | 7.69 | % | | | | | | | | | |
| Total loans (FTE) | | | 6.11 | % | | 6.76 | % | | 7.48 | % | | 7.77 | % | | 7.77 | % | | | | | | | | | |
| Total interest earning assets (FTE) | | | 5.83 | % | | 6.38 | % | | 6.96 | % | | 7.20 | % | | 7.17 | % | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest bearing deposits | | | 1.63 | % | | 2.42 | % | | 3.23 | % | | 3.44 | % | | 3.30 | % | | | | | | | | | |
| Time deposits | | | 3.98 | % | | 4.36 | % | | 4.58 | % | | 4.70 | % | | 4.69 | % | | | | | | | | | |
| Total bank issued deposits | | | 2.45 | % | | 3.11 | % | | 3.72 | % | | 3.92 | % | | 3.85 | % | | | | | | | | | |
| Wholesale deposits | | | 4.66 | % | | 5.02 | % | | 5.11 | % | | 5.13 | % | | 5.11 | % | | | | | | | | | |
| Short-term borrowings | | | 3.20 | % | | 4.02 | % | | 4.80 | % | | 5.08 | % | | 5.09 | % | | | | | | | | | |
| Long-term borrowings | | | 5.22 | % | | 5.55 | % | | 5.63 | % | | 5.61 | % | | 5.62 | % | | | | | | | | | |
| Total wholesale funding | | | 4.32 | % | | 4.82 | % | | 5.18 | % | | 5.27 | % | | 5.25 | % | | | | | | | | | |
| Total interest bearing liabilities | | | 3.12 | % | | 3.69 | % | | 4.17 | % | | 4.35 | % | | 4.29 | % | | | | | | | | | |
| Net interest spread | | | 2.71 | % | | 2.69 | % | | 2.79 | % | | 2.85 | % | | 2.88 | % | | | | | | | | | |
| Net interest margin (FTE) | | | 3.07 | % | | 3.12 | % | | 3.28 | % | | 3.35 | % | | 3.39 | % | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| FTE adjustment (000's) | | $ | 803 | | $ | 746 | | $ | 701 | | $ | 657 | | $ | 619 | | | | | | | | | | |
