Exhibit 99.1
| | | |
| Media Contact: | | Investor Contact: |
Meghan Thompson 203-578-2287
mthompson@websterbank.com | | Terry Mangan 203-578-2318
tmangan@websterbank.com |
WEBSTER REPORTS 19 PERCENT INCREASE IN NET INCOME FOR THE
THIRD QUARTER
WATERBURY, Conn., October 21, 2004 — Webster Financial Corporation (NYSE: WBS), the holding company for Webster Bank, N.A., today announced net income of $49.4 million in the third quarter, compared to $41.3 million in the year-ago period, an increase of 19 percent. Net income per diluted share was $.92 in the third quarter, compared to $.89 in the year-ago period, an increase of 3 percent.
For the first nine months of 2004, net income was $137.5 million compared to $121.9 million in the year-ago period, an increase of 13 percent. Net income per diluted share was $2.73 compared to $2.63 the prior year, an increase of 4 percent.
“Webster has grown to be the largest independent bank based in southern New England and is well positioned for future growth. We are pleased to report higher earnings and continuing double-digit growth in loans and deposits in a quarter marked by a higher net interest margin and improved asset quality,” said Webster chairman and chief executive officer James C. Smith. “We also announced in the quarter the strategic acquisition of the leading bank administrator in the fast-growing arena of health savings accounts, which will become a new source of core deposits and fee revenue.”
The third quarter of 2004 results reflect the first full quarter of Webster’s acquisition of FIRSTFED AMERICA BANCORP, INC., which became effective on May 14, 2004. Upon acquisition, FIRSTFED had loans of $1.5 billion and deposits of $1.5 billion with 26 branches and 33 ATMs.
1
Revenues and Expenses
Total revenues (net interest income plus total noninterest income) were $180.4 million in the third quarter, compared to $165.4 million a year ago. Impacting the quarter and the first nine months of this year was the implementation on December 31, 2003 of Financial Accounting Standards Board Interpretation No. (“FIN”) 46 (revised), which required the reclassification of capital trust securities expense as of January 1, 2004 from noninterest expenses to interest expense. Adjusting the third quarter of 2003 for $2.8 million of this expense, total revenues would have grown by $17.7 million, or 11 percent, from a year ago.
Net interest income was $121.3 million in the third quarter of 2004, compared to $100.9 million in the year-ago period and $113.5 million in the second quarter. Adjusting for the effect of FIN 46R, net interest income grew by $23.1 million, or 24 percent, from a year ago and by $7.8 million, or 7 percent, from the second quarter. The increase over the prior year reflects growth in loans funded by core deposit growth, while the increase over the second quarter is mainly due to loan growth plus improvement in the net interest margin.
Webster’s net interest margin (annualized net interest income as a percentage of average earning assets) improved four basis points to 3.06 percent from 3.02 percent in the second quarter. This compares to 2.91 percent in the year-ago period adjusted for FIN 46R. The increases reflect the growth in higher yielding loans and the benefit of rising rates during the quarter.
In the third quarter of 2004, total noninterest income was $59.1 million, compared to $64.5 million in the year-ago period. Excluding securities gains, noninterest income declined in the third quarter to $53.3 million from $60.0 million in the year-ago period. This decline is explained by a one-time gain of $4.2 million from the sale of telecommunication loans that were Held for Sale and proceeds of $1.6 million from an insurance investment in the year-ago quarter and $4.8 million of revenue from Duff & Phelps, which was sold in the first quarter of this year. The core fee categories of deposit services, insurance, loan and loan servicing and wealth management grew by 10 percent, 6 percent excluding FIRSTFED. Gains on sales of loans, excluding the telecommunication loan gains, declined by $1.2 million due to a slowdown in the volume of mortgage originations.
Total noninterest expenses for the 2004 third quarter were $103.8 million, an increase of 11 percent from $93.7 million in the year-ago period. Adjusting the prior year for the effect of FIN 46R, and excluding FIRSTFED and Duff & Phelps, expenses grew by 7 percent in the third quarter. This increase reflects continuing investment in personnel, technology andde novobranches under our strategic plan for growth.
Balance Sheet Trends
2
At September 30, 2004, total assets were $17.8 billion, up 22 percent from $14.6 billion a year ago. Total loans of $11.6 billion at September 30, 2004 increased 27 percent from $9.1 billion the prior year, while deposits were $10.4 billion, up 28 percent from $8.1 billion a year ago. Excluding FIRSTFED, total loans increased by $1.0 billion, or 11 percent, over the past year, while total deposits increased $0.8 billion, or 10 percent.
“Webster continues to achieve strong, double-digit growth in loans and deposits through the execution of our strategic plan,” stated Webster president and chief operating officer William T. Bromage. “We look forward to carrying these strategies into Massachusetts and Rhode Island, creating new growth opportunities through our FIRSTFED acquisition.”
At the end of the third quarter, commercial loans including commercial real estate were $4.2 billion, up 31 percent from $3.2 billion a year ago. Commercial real estate loans were $1.6 billion, up 36 percent. Consumer loans, primarily home equity loans and lines, increased 22 percent to $2.6 billion, compared to $2.1 billion one year ago. Excluding FIRSTFED, commercial loans including commercial real estate were up 16 percent, commercial real estate loans were up 19%, and consumer loans increased 10 percent.
Core deposits (consisting of checking, money market and savings accounts) of $7.0 billion at September 30, 2004 increased by 29 percent from a year ago and represented 67 percent of total deposits. Excluding FIRSTFED, core deposits grew 11 percent. Webster’s overall growth in deposits has been driven in part by its High Performance Checking products and the continuing success of itsde novobranches in Fairfield County, Connecticut and Westchester County, New York.
Book value per common share of $28.54 at September 30, 2004 increased from $24.22 one year ago. Tangible book value per share of $16.30 at September 30, 2004 decreased from $17.73 one year ago, principally reflecting an increase in intangible assets related to the FIRSTFED acquisition.
Asset Quality
Nonperforming assets totaled $40.0 million or 0.22 percent of total assets at September 30, 2004, compared to $46.1 million or 0.32 percent a year ago and $47.7 million or 0.28 percent at June 30, 2004.
“Webster’s asset quality strengthened further in the third quarter” stated Webster chief financial officer William J. Healy. “Nonperforming assets have declined substantially compared to a year ago and June 30, and our allowance for loan losses now exceeds four-times the level of our nonperforming loans.”
The allowance for loan losses was $148.2 million, or 1.28 percent of total loans at September 30, 2004, compared to $117.7 million, or 1.29 percent, a year ago and $146.5
3
million, or 1.30 percent, at June 30, 2004. The ratio of the allowance to nonperforming loans at September 30, 2004 was 401 percent, compared to 284 percent a year ago and 332 percent at June 30, 2004.
The provision for loan losses totaled $4.0 million in the third quarter, $1.7 million more than net loan charge-offs of $2.3 million, compared to a provision of $10.0 million and net loan charge-offs of $11.5 million a year ago. The annualized net charge-off ratio was 0.08 percent of average loans in the third quarter, compared to 0.52 percent a year ago. The prior-year amounts reflect the charge-off of a single commercial nonperforming loan during the third quarter of 2003.
Webster Announces Plans to Complete 2003 Balance Sheet Restructuring Program
In light of the current interest rate environment, Webster plans to implement and complete during the fourth quarter a balance sheet de-leveraging through the sale of approximately $750 million of securities with an effective duration of 2.1 years. This transaction follows an initial de-leveraging of $750 million in securities that occurred during the second quarter in connection with the FIRSTFED acquisition. Proceeds from this de-leveraging will be used to prepay approximately $500 million of Federal Home Loan Bank advances that were swapped to floating rates and approximately $250 million of overnight borrowings. The current yield on the securities being sold is 3.53 percent while the current cost on the borrowings being repaid is 4.27 percent. The de-leveraging is expected to result in an after-tax loss of approximately $34 million ($50 million pre-tax) that will be reflected in Webster’s financial results for the fourth quarter.
On a pro-forma basis over the next twelve months assuming implied levels of forward interest rates, the de-leveraging improves the tangible capital ratio by an additional 22 basis points, significantly reduces sensitivity to interest rate increases and improves the net interest margin, depending upon the movement of interest rates, by approximately 15 — 20 basis points. In addition, the pro-forma ratios of securities and borrowings as a percent of assets each decline by 3 percent immediately.
“Completion of this $750 million balance sheet restructuring at this time strengthens Webster’s capital position and reduces our vulnerability to potential increases in interest rates by moving our balance sheet to a modest asset sensitive position,” stated Mr. Healy. “In addition, the de-leveraging enhances our position as an emerging commercial bank by improving our ongoing net interest margin and reducing our securities and borrowings.”
In a related transaction, Webster announced that it completed earlier this month the transfer of $921 million of 15-year mortgage-backed securities from its Available for Sale portfolio to its Held to Maturity portfolio. These bonds represent the longest duration securities that Webster owns. This transfer further protects Webster’s tangible capital from upward movements in interest rates.
4
Strategic Actions
In July, Webster announced a definitive agreement to acquire First City Bank (Amex: FBK), headquartered in New Britain, Connecticut, with assets totaling $187 million at June 30, 2004. The agreement is a combination cash and stock transaction valued at approximately $33 million or $27 per common share of First City stock, payable 60% in Webster stock and 40% in cash. This acquisition is expected to close in December.
Webster entered the health savings account market in September with the announcement of its definitive agreement to acquire Eastern Wisconsin Bancshares, the holding company for State Bank of Howards Grove, for $26 million in cash. The State Bank of Howards Grove, which operates under the trade name “HSA Bank,” will make Webster the nation’s leading bank administrator of health savings accounts. Health savings accounts, paired with high-deductible health plans, Webster believes, will be a catalyst toward improving the cost, quality and availability of health care in the United States in the future. HSA Bank had $157 million in assets and $138 million in deposits at June 30, 2004. The acquisition is expected to close in the first quarter of 2005.
Also in September, Webster announced a ten-year agreement with Fidelity Information Services, Inc. (FIS), under which FIS will provide information technology and application processing services. Webster will use new software for core data processing services and to support its transition to a commercial bank, enhancing both capacity and speed for customer benefit in consumer, commercial mortgage and small business accounts in Fidelity’s application service provider (ASP) environment. Webster will complete its migration to the new technology platform in the third quarter of 2005.
***
Webster Financial Corporation is the holding company for Webster Bank, National Association and Webster Insurance. With $17.8 billion in assets, Webster provides business and consumer banking, mortgage, insurance, financial planning, trust and investment services through 148 banking offices, 273 ATMs, telephone banking and the Internet. Webster Bank owns the asset-based lending firm Webster Business Credit Corporation, the insurance premium finance company Budget Installment Corp., and Center Capital Corporation, an equipment finance company headquartered in Farmington, Connecticut.
For more information about Webster, including past press releases and the latest Annual Report, visit the Webster website at www.websteronline.com.
***
Conference Call
A conference call covering Webster’s 2004 third quarter earnings announcement will be held today, Thursday, October 21, at 1:00 p.m. Eastern Time and may be heard through Webster’s investor relations website at www.wbst.com, or in listen-only mode by calling 1-800-638-5495 (Access Code: 91089965). The call will be archived on the website and available for future retrieval.
5
Statements in this press release regarding Webster Financial Corporation’s business that are not historical facts are “forward-looking statements” that involve risks and uncertainties. For a discussion of such risks and uncertainties that could cause actual results to differ from those contained in the forward-looking statement, see “Forward Looking Statements” in Webster’s Annual Report for 2003.
---30---
6
Webster Financial Corporation
Selected Financial Highlights (unaudited)
| | | | | | | | | | | | | | | | | |
| | | At or for the Three | | At or for the Nine |
| | | Months Ended September 30, | | Months Ended September 30, |
(In thousands, except per share data)
| | 2004
| | 2003
| | 2004
| | 2003
|
Net income and performance ratios (annualized): | | | | | | | | | | | | | | | | |
| Net income | | $ | 49,361 | | | $ | 41,315 | | | $ | 137,527 | | | $ | 121,862 | |
| Net income per diluted common share | | | 0.92 | | | | 0.89 | | | | 2.73 | | | | 2.63 | |
| Return on average shareholders’ equity | | | 13.25 | % | | | 15.54 | % | | | 13.75 | % | | | 15.25 | % |
| Return on average tangible equity | | | 23.56 | | | | 21.57 | | | | 21.64 | | | | 21.14 | |
| Return on average assets | | | 1.13 | | | | 1.13 | | | | 1.13 | | | | 1.15 | |
| Noninterest income as a percentage of total revenue | | | 32.76 | | | | 38.99 | | | | 33.41 | | | | 36.49 | |
| Efficiency Ratio (a) | | | 57.53 | | | | 56.63 | | | | 57.30 | | | | 58.01 | |
| |
Cash income and performance ratios (annualized) (b): | | | | | | | | | | | | | | | | |
| Net income | | $ | 49,361 | | | $ | 41,315 | | | $ | 137,527 | | | $ | 121,862 | |
| Tax-effected stock-based compensation | | | 1,260 | | | | 971 | | | | 3,242 | | | | 2,855 | |
| Tax-effected intangible amortization | | | 3,138 | | | | 2,601 | | | | 8,776 | | | | 7,755 | |
| | | |
| | | |
| | | |
| | | |
| |
| Cash income | | | 53,759 | | | | 44,887 | | | | 149,545 | | | | 132,472 | |
| |
| Cash income per diluted common share | | | 1.00 | | | | 0.97 | | | | 2.96 | | | | 2.86 | |
| Cash return on average shareholders’ equity | | | 14.43 | % | | | 16.88 | % | | | 14.95 | % | | | 16.58 | % |
| Cash return on average tangible equity | | | 25.65 | | | | 23.43 | | | | 23.53 | | | | 22.98 | |
| Cash return on average assets | | | 1.23 | | | | 1.23 | | | | 1.23 | | | | 1.25 | |
| |
Asset quality: | | | | | | | | | | | | | | | | |
| Allowance for loan losses | | $ | 148,179 | | | $ | 117,707 | | | $ | 148,179 | | | $ | 117,707 | |
| Nonperforming assets | | | 39,993 | | | | 46,063 | | | | 39,993 | | | | 46,063 | |
| Allowance for loan losses / total loans | | | 1.28 | % | | | 1.29 | % | | | 1.28 | % | | | 1.29 | % |
| Net charge-offs/ average loans (annualized) | | | 0.08 | | | | 0.52 | | | | 0.10 | | | | 0.30 | |
| Nonperforming loans / total loans | | | 0.32 | | | | 0.46 | | | | 0.32 | | | | 0.46 | |
| Nonperforming assets / total assets | | | 0.22 | | | | 0.32 | | | | 0.22 | | | | 0.32 | |
| Allowance for loan losses / nonperforming loans | | | 400.87 | | | | 283.61 | | | | 400.87 | | | | 283.61 | |
| |
Other ratios (annualized): | | | | | | | | | | | | | | | | |
| Tangible capital ratio | | | 4.92 | % | | | 5.51 | % | | | 4.92 | % | | | 5.51 | % |
| Shareholders’ equity / total assets | | | 8.53 | | | | 7.55 | | | | 8.53 | | | | 7.55 | |
| Interest-rate spread (c) | | | 3.04 | | | | 2.95 | | | | 3.02 | | | | 3.09 | |
| Net interest margin (c) | | | 3.06 | | | | 2.99 | | | | 3.05 | | | | 3.13 | |
| |
Share related: | | | | | | | | | | | | | | | | |
| Book value per common share | | $ | 28.54 | | | $ | 24.22 | | | $ | 28.54 | | | $ | 24.22 | |
| Tangible book value per common share | | | 16.30 | | | | 17.73 | | | | 16.30 | | | | 17.73 | |
| Common stock closing price | | | 49.39 | | | | 39.88 | | | | 49.39 | | | | 39.88 | |
| Dividends declared per common share | | | 0.23 | | | | 0.21 | | | | 0.67 | | | | 0.61 | |
| Common shares issued and outstanding | | | 53,185 | | | | 45,562 | | | | 53,185 | | | | 45,562 | |
| Basic shares (average) | | | 52,938 | | | | 45,444 | | | | 49,606 | | | | 45,450 | |
| Diluted shares (average) | | | 53,767 | | | | 46,313 | | | | 50,448 | | | | 46,249 | |
Footnotes:
| (a) | | Noninterest expense as a percentage of net interest income plus noninterest income. |
| (b) | | Cash income represents net income excluding the after tax effects of non-cash charges related to the amortization of intangible assets and stock-based compensation, which includes stock options and restricted stock. |
| (c) | | Webster adopted FIN 46R on December 31, 2003, and in accordance with its provisions, deconsolidated the capital trusts and reported the associated liabilities as other long-term debt. Commencing in 2004, the costs have been reclassified from noninterest expenses to interest expense. |
| (d) | | For purposes of this computation, unrealized gains (losses) are excluded from the average balance for rate calculations. |
Consolidated Statements of Condition (unaudited)
| | | | | | | | | | | | | |
| | | September 30, | | June 30, | | September 30, |
(In thousands)
| | 2004
| | 2004
| | 2003
|
Assets: | | | | | | | | | | | | |
| Cash and due from depository institutions | | $ | 234,449 | | | $ | 252,818 | | | $ | 214,566 | |
| Short-term investments | | | 25,783 | | | | 39,887 | | | | 26,196 | |
| Securities: | | | | | | | | | | | | |
| Trading, at fair value | | | 2,635 | | | | 1,944 | | | | 56 | |
| Available for sale, at fair value | | | 4,164,056 | | | | 3,853,154 | | | | 4,284,134 | |
| Held-to-maturity securities | | | 323,378 | | | | 284,392 | | | | — | |
| | | |
| | | |
| | | |
| |
Total securities | | | 4,490,069 | | | | 4,139,490 | | | | 4,284,190 | |
| |
| Loans held for sale | | | 111,175 | | | | 153,396 | | | | 278,402 | |
| |
| Loans: | | | | | | | | | | | | |
| Residential mortgages | | | 4,773,284 | | | | 4,731,950 | | | | 3,758,106 | |
| Commercial | | | 2,586,351 | | | | 2,455,512 | | | | 2,018,279 | |
| Commercial real estate | | | 1,619,968 | | | | 1,572,289 | | | | 1,187,065 | |
| Consumer | | | 2,595,629 | | | | 2,530,443 | | | | 2,131,878 | |
| | | |
| | | |
| | | |
| |
Total loans | | | 11,575,232 | | | | 11,290,194 | | | | 9,095,328 | |
| Allowance for loan losses | | | (148,179 | ) | | | (146,511 | ) | | | (117,707 | ) |
| | | |
| | | |
| | | |
| |
Loans, net | | | 11,427,053 | | | | 11,143,683 | | | | 8,977,621 | |
| |
| Accrued interest receivable | | | 65,812 | | | | 59,737 | | | | 53,091 | |
| Premises and equipment, net | | | 136,385 | | | | 132,842 | | | | 85,521 | |
| Goodwill and intangible assets | | | 676,176 | | | | 681,252 | | | | 315,556 | |
| Cash surrender value of life insurance | | | 226,503 | | | | 224,082 | | | | 178,474 | |
| Prepaid expenses and other assets | | | 408,837 | | | | 198,683 | | | | 195,166 | |
| | | |
| | | |
| | | |
| |
Total Assets | | $ | 17,802,242 | | | $ | 17,025,870 | | | $ | 14,608,783 | |
| | | |
| | | |
| | | |
| |
Liabilities and Shareholders’ Equity: | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | |
| Demand deposits | | $ | 1,356,924 | | | $ | 1,362,339 | | | $ | 1,017,870 | |
| NOW accounts | | | 1,271,553 | | | | 1,423,822 | | | | 1,010,071 | |
| Money market deposit accounts | | | 2,153,852 | | | | 2,013,894 | | | | 1,606,342 | |
| Savings accounts | | | 2,243,949 | | | | 2,281,312 | | | | 1,807,891 | |
| Certificates of deposit | | | 3,204,624 | | | | 3,184,991 | | | | 2,590,513 | |
| | | |
| | | |
| | | |
| |
Total retail deposits | | | 10,230,902 | | | | 10,266,358 | | | | 8,032,687 | |
| Treasury deposits | | | 208,521 | | | | 106,564 | | | | 100,884 | |
| | | |
| | | |
| | | |
| |
Total deposits | | | 10,439,423 | | | | 10,372,922 | | | | 8,133,571 | |
| |
| Federal Home Loan Bank advances | | | 3,021,503 | | | | 2,731,332 | | | | 2,149,762 | |
| Federal funds purchased and securities sold under agreements to repurchase | | | 1,973,478 | | | | 1,670,594 | | | | 2,531,875 | |
| Other long-term debt (c) | | | 695,316 | | | | 695,417 | | | | 326,000 | |
| Accrued expenses and other liabilities | | | 144,963 | | | | 95,112 | | | | 169,301 | |
| | | |
| | | |
| | | |
| |
Total liabilities | | | 16,274,683 | | | | 15,565,377 | | | | 13,310,509 | |
| |
| Corporation-obligated mandatorily redeemable capital securities of subsidiary trusts (c) | | | — | | | | — | | | | 185,255 | |
| |
| Preferred stock of subsidiary corporation | | | 9,577 | | | | 9,577 | | | | 9,577 | |
| |
Shareholders’ equity | | | 1,517,982 | | | | 1,450,916 | | | | 1,103,442 | |
| | | |
| | | |
| | | |
| |
Total Liabilities and Shareholders’ Equity | | $ | 17,802,242 | | | $ | 17,025,870 | | | $ | 14,608,783 | |
| | | |
| | | |
| | | |
| |
See Selected Financial Highlights for footnotes.
Consolidated Statements of Income (unaudited)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | Nine Months Ended |
| | | September 30, | | September 30, |
(In thousands, except per share data)
| | 2004
| | 2003
| | 2004
| | 2003
|
Interest income: | | | | | | | | | | | | | | | | |
| Loans | | $ | 145,456 | | | $ | 114,750 | | | $ | 393,131 | | | $ | 342,695 | |
| Securities and short-term investments | | | 45,541 | | | | 42,050 | | | | 135,311 | | | | 139,567 | |
| Loans held for sale | | | 1,755 | | | | 4,896 | | | | 4,964 | | | | 13,618 | |
| | | |
| | | |
| | | |
| | | |
| |
Total interest income | | | 192,752 | | | | 161,696 | | | | 533,406 | | | | 495,880 | |
| | | |
| | | |
| | | |
| | | |
| |
Interest expense: | | | | | | | | | | | | | | | | |
| Deposits | | | 32,611 | | | | 26,824 | | | | 87,613 | | | | 84,992 | |
| Borrowings | | | 38,853 | | | | 33,943 | | | | 105,232 | | | | 104,664 | |
| | | |
| | | |
| | | |
| | | |
| |
Total interest expense | | | 71,464 | | | | 60,767 | | | | 192,845 | | | | 189,656 | |
| | | |
| | | |
| | | |
| | | |
| |
Net interest income | | | 121,288 | | | | 100,929 | | | | 340,561 | | | | 306,224 | |
| Provision for loan losses | | | 4,000 | | | | 10,000 | | | | 14,000 | | | | 20,000 | |
| | | |
| | | |
| | | |
| | | |
| |
Net interest income after provision for loan losses | | | 117,288 | | | | 90,929 | | | | 326,561 | | | | 286,224 | |
| | | |
| | | |
| | | |
| | | |
| |
Noninterest income: | | | | | | | | | | | | | | | | |
| Deposit service fees | | | 20,596 | | | | 17,868 | | | | 57,031 | | | | 52,287 | |
| Insurance revenue | | | 10,924 | | | | 9,954 | | | | 33,158 | | | | 30,898 | |
| Loan and loan servicing fees | | | 6,893 | | | | 7,755 | | | | 20,847 | | | | 18,383 | |
| Wealth and investment services | | | 6,044 | | | | 4,826 | | | | 17,009 | | | | 13,925 | |
| Financial advisory services | | | — | | | | 4,833 | | | | 3,808 | | | | 15,493 | |
| Gain on sale of loans and loan servicing, net | | | 4,467 | | | | 9,829 | | | | 10,813 | | | | 16,666 | |
| Increase in cash surrender value of life insurance | | | 2,421 | | | | 2,150 | | | | 6,552 | | | | 6,408 | |
| Other | | | 1,912 | | | | 2,737 | | | | 4,724 | | | | 6,021 | |
| | | |
| | | |
| | | |
| | | |
| |
| | | | 53,257 | | | | 59,952 | | | | 153,942 | | | | 160,081 | |
| Gain on sale of securities, net | | | 5,843 | | | | 4,560 | | | | 16,959 | | | | 15,859 | |
| | | |
| | | |
| | | |
| | | |
| |
Total noninterest income | | | 59,100 | | | | 64,512 | | | | 170,901 | | | | 175,940 | |
| | | |
| | | |
| | | |
| | | |
| |
Noninterest expenses: | | | | | | | | | | | | | | | | |
| Compensation and benefits | | | 55,606 | | | | 51,592 | | | | 162,392 | | | | 152,659 | |
| Occupancy | | | 9,144 | | | | 7,457 | | | | 25,911 | | | | 23,228 | |
| Furniture and equipment | | | 10,103 | | | | 8,255 | | | | 26,737 | | | | 23,351 | |
| Intangible amortization | | | 4,827 | | | | 4,001 | | | | 13,501 | | | | 11,931 | |
| Marketing | | | 4,233 | | | | 2,729 | | | | 10,847 | | | | 9,450 | |
| Professional services | | | 4,294 | | | | 2,582 | | | | 10,131 | | | | 8,054 | |
| Acquisition costs | | | — | | | | 142 | | | | 265 | | | | 148 | |
| Capital trust securities (c) | | | — | | | | 2,774 | | | | — | | | | 8,439 | |
| Other | | | 15,562 | | | | 14,165 | | | | 43,305 | | | | 42,442 | |
| | | |
| | | |
| | | |
| | | |
| |
Total noninterest expenses | | | 103,769 | | | | 93,697 | | | | 293,089 | | | | 279,702 | |
| | | |
| | | |
| | | |
| | | |
| |
| Income before income taxes | | | 72,619 | | | | 61,744 | | | | 204,373 | | | | 182,462 | |
| Income taxes | | | 23,258 | | | | 20,429 | | | | 66,846 | | | | 60,600 | |
| | | |
| | | |
| | | |
| | | |
| |
Net income | | $ | 49,361 | | | $ | 41,315 | | | $ | 137,527 | | | $ | 121,862 | |
| | | |
| | | |
| | | |
| | | |
| |
Diluted shares (average) | | | 53,767 | | | | 46,313 | | | | 50,448 | | | | 46,249 | |
| |
Net income per common share: | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.93 | | | $ | 0.91 | | | $ | 2.77 | | | $ | 2.68 | |
| Diluted | | | 0.92 | | | | 0.89 | | | | 2.73 | | | | 2.63 | |
See Selected Financial Highlights for footnotes.
Consolidated Statements of Income (unaudited)
| | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended
|
| | | Sept. 30, | | June 30, | | March 31, | | Dec. 31, | | Sept. 30, |
(In thousands, except per share data)
| | 2004
| | 2004
| | 2004
| | 2003
| | 2003
|
Interest income: | | | | | | | | | | | | | | | | | | | | |
| Loans | | $ | 145,456 | | | $ | 129,084 | | | $ | 118,591 | | | $ | 117,982 | | | $ | 114,750 | |
| Securities and short-term investments | | | 45,541 | | | | 45,162 | | | | 44,608 | | | | 43,065 | | | | 42,050 | |
| Loans held for sale | | | 1,755 | | | | 2,139 | | | | 1,070 | | | | 1,791 | | | | 4,896 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
Total interest income | | | 192,752 | | | | 176,385 | | | | 164,269 | | | | 162,838 | | | | 161,696 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
Interest expense: | | | | | | | | | | | | | | | | | | | | |
| Deposits | | | 32,611 | | | | 29,172 | | | | 25,830 | | | | 26,319 | | | | 26,824 | |
| Borrowings | | | 38,853 | | | | 33,746 | | | | 32,633 | | | | 29,224 | | | | 33,943 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
Total interest expense | | | 71,464 | | | | 62,918 | | | | 58,463 | | | | 55,543 | | | | 60,767 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
Net interest income | | | 121,288 | | | | 113,467 | | | | 105,806 | | | | 107,295 | | | | 100,929 | |
| Provision for loan losses | | | 4,000 | | | | 5,000 | | | | 5,000 | | | | 5,000 | | | | 10,000 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
Net interest income after provision for loan losses | | | 117,288 | | | | 108,467 | | | | 100,806 | | | | 102,295 | | | | 90,929 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
Noninterest income: | | | | | | | | | | | | | | | | | | | | |
| Deposit service fees | | | 20,596 | | | | 19,250 | | | | 17,185 | | | | 17,731 | | | | 17,868 | |
| Insurance revenue | | | 10,924 | | | | 10,596 | | | | 11,638 | | | | 9,077 | | | | 9,954 | |
| Loan and loan servicing fees | | | 6,893 | | | | 7,305 | | | | 6,649 | | | | 8,001 | | | | 7,755 | |
| Wealth and investment services | | | 6,044 | | | | 5,849 | | | | 5,116 | | | | 4,416 | | | | 4,826 | |
| Financial advisory services | | | — | | | | — | | | | 3,808 | | | | 7,265 | | | | 4,833 | |
| Gain on sale of loans and loan servicing, net | | | 4,467 | | | | 5,321 | | | | 1,025 | | | | 2,854 | | | | 9,829 | |
| Increase in cash surrender value of life insurance | | | 2,421 | | | | 2,177 | | | | 1,954 | | | | 2,082 | | | | 2,150 | |
| Other | | | 1,912 | | | | 964 | | | | 1,848 | | | | 2,402 | | | | 2,737 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| | | | 53,257 | | | | 51,462 | | | | 49,223 | | | | 53,828 | | | | 59,952 | |
| Gain on sale of securities, net | | | 5,843 | | | | 5,616 | | | | 5,500 | | | | 2,715 | | | | 4,560 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
Total noninterest income | | | 59,100 | | | | 57,078 | | | | 54,723 | | | | 56,543 | | | | 64,512 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
Noninterest expenses: | | | | | | | | | | | | | | | | | | | | |
| Compensation and benefits | | | 55,606 | | | | 53,659 | | | | 53,127 | | | | 53,722 | | | | 51,592 | |
| Occupancy | | | 9,144 | | | | 8,402 | | | | 8,365 | | | | 7,470 | | | | 7,457 | |
| Furniture and equipment | | | 10,103 | | | | 8,993 | | | | 7,641 | | | | 7,792 | | | | 8,255 | |
| Intangible amortization | | | 4,827 | | | | 4,582 | | | | 4,092 | | | | 4,067 | | | | 4,001 | |
| Marketing | | | 4,233 | | | | 3,630 | | | | 2,984 | | | | 2,058 | | | | 2,729 | |
| Professional services | | | 4,294 | | | | 2,938 | | | | 2,899 | | | | 3,654 | | | | 2,582 | |
| Capital trust securities (c) | | | — | | | | — | | | | — | | | | 3,485 | | | | 2,774 | |
| Acquisition costs | | | — | | | | 265 | | | | — | | | | 1,349 | | | | 142 | |
| Other | | | 15,562 | | | | 14,710 | | | | 13,033 | | | | 14,683 | | | | 14,165 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
Total noninterest expenses | | | 103,769 | | | | 97,179 | | | | 92,141 | | | | 98,280 | | | | 93,697 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Income before income taxes | | | 72,619 | | | | 68,366 | | | | 63,388 | | | | 60,558 | | | | 61,744 | |
| Income taxes | | | 23,258 | | | | 22,523 | | | | 21,065 | | | | 19,172 | | | | 20,429 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
Net income | | $ | 49,361 | | | $ | 45,843 | | | $ | 42,323 | | | $ | 41,386 | | | $ | 41,315 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
Diluted shares (average) | | | 53,767 | | | | 50,475 | | | | 47,059 | | | | 46,699 | | | | 46,313 | |
| |
Net income per common share: | | | | | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.93 | | | $ | 0.92 | | | $ | 0.92 | | | $ | 0.90 | | | $ | 0.91 | |
| Diluted | | | 0.92 | | | | 0.91 | | | | 0.90 | | | | 0.89 | | | | 0.89 | |
See Selected Financial Highlights for footnotes.
Retail and Wholesale Interest-Rate Spreads (unaudited)
| | | | | | | | | | | | | | | | | | | | | |
| | | September | | June | | March | | December | | September |
Three Months Ended,
| | 2004
| | 2004
| | 2004
| | 2003
| | 2003
|
Interest-rate spread | | | | | | | | | | | | | | | | | | | | |
| Total interest-earning assets | | | 4.82 | % | | | 4.68 | % | | | 4.78 | % | | | 4.81 | % | | | 4.75 | % |
| Total interest-bearing liabilities | | | 1.78 | | | | 1.69 | | | | 1.74 | | | | 1.68 | | | | 1.80 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Interest-rate spread | | | 3.04 | % | | | 2.99 | % | | | 3.04 | % | | | 3.13 | % | | | 2.95 | % |
| Net interest margin | | | 3.06 | | | | 3.02 | | | | 3.09 | | | | 3.18 | | | | 2.99 | |
| |
Retail interest-rate spread | | | | | | | | | | | | | | | | | | | | |
| Yield on loans and loans held for sale | | | 5.07 | % | | | 4.93 | % | | | 5.05 | % | | | 5.09 | % | | | 5.09 | % |
| Cost of deposits | | | 1.25 | | | | 1.23 | | | | 1.24 | | | | 1.26 | | | | 1.32 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Spread | | | 3.82 | % | | | 3.70 | % | | | 3.81 | % | | | 3.83 | % | | | 3.77 | % |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
Wholesale interest-rate spread | | | | | | | | | | | | | | | | | | | | |
| Yield on securities and short-term investments | | | 4.18 | % | | | 4.09 | % | | | 4.19 | % | | | 4.17 | % | | | 4.02 | % |
| Cost of borrowings | | | 2.80 | | | | 2.50 | | | | 2.56 | | | | 2.41 | | | | 2.55 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Spread | | | 1.38 | % | | | 1.59 | % | | | 1.63 | % | | | 1.76 | % | | | 1.47 | % |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
Consolidated Average Statements of Condition (unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | |
Three Months Ended September 30,
| | 2004
| | 2003
|
| | | | | | | | | | | Fully tax- | | | | | | | | | | Fully tax- |
| | | Average | | | | | | equivalent | | Average | | | | | | equivalent |
(Dollars in thousands)
| | balance
| | Interest
| | yield/rate
| | balance
| | Interest
| | yield/rate
|
Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-earning assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Loans | | $ | 11,401,076 | | | $ | 145,456 | | | | 5.06 | % | | $ | 8,953,970 | | | $ | 114,792 | | | | 5.09 | % |
| Securities | | | 4,456,849 | | | | 47,095 | | | | 4.20 | (d) | | | 4,201,679 | | | | 42,408 | | | | 4.04 | (d) |
| Loans held for sale | | | 129,157 | | | | 1,755 | | | | 5.44 | | | | 385,059 | | | | 4,854 | | | | 5.04 | |
| Short-term investments | | | 31,231 | | | | 106 | | | | 1.33 | | | | 18,593 | | | | 56 | | | | 1.18 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
Total interest-earning assets | | | 16,018,313 | | | | 194,412 | | | | 4.82 | | | | 13,559,301 | | | | 162,110 | | | | 4.75 | |
| | | | | | | |
| | | | | | | | | | | |
| | | | | |
| Noninterest-earning assets | | | 1,413,030 | | | | | | | | | | | | 1,017,648 | | | | | | | | | |
| | | |
| | | | | | | | | | | |
| | | | | | | | | |
Total assets | | $ | 17,431,343 | | | | | | | | | | | $ | 14,576,949 | | | | | | | | | |
| | | |
| | | | | | | | | | | |
| | | | | | | | | |
Liabilities and Shareholders’ Equity: | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
| Demand deposits | | $ | 1,357,230 | | | $ | — | | | | — | % | | $ | 1,042,556 | | | $ | — | | | | — | % |
| Savings, NOW and money market deposit accounts | | | 5,673,797 | | | | 12,703 | | | | 0.89 | | | | 4,393,262 | | | | 9,851 | | | | 0.89 | |
| Time deposits | | | 3,366,232 | | | | 19,908 | | | | 2.35 | | | | 2,642,488 | | | | 16,973 | | | | 2.55 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
Total deposits | | | 10,397,259 | | | | 32,611 | | | | 1.25 | | | | 8,078,306 | | | | 26,824 | | | | 1.32 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Federal Home Loan Bank advances | | | 3,147,887 | | | | 23,373 | | | | 2.91 | | | | 2,319,927 | | | | 22,127 | | | | 3.73 | |
| Fed funds and repurchase agreements | | | 1,608,818 | | | | 5,919 | | | | 1.44 | | | | 2,576,065 | | | | 7,486 | | | | 1.14 | |
| Other long-term debt (c) | | | 695,365 | | | | 9,561 | | | | 5.50 | | | | 326,000 | | | | 4,330 | | | | 5.31 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
Total borrowings | | | 5,452,070 | | | | 38,853 | | | | 2.80 | | | | 5,221,992 | | | | 33,943 | | | | 2.55 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
Total interest-bearing liabilities | | | 15,849,329 | | | | 71,464 | | | | 1.78 | | | | 13,300,298 | | | | 60,767 | | | | 1.80 | |
| | | | | | | |
| | | | | | | | | | | |
| | | | | |
| Noninterest-bearing liabilities | | | 82,696 | | | | | | | | | | | | 81,836 | | | | | | | | | |
| | | |
| | | | | | | | | | | |
| | | | | | | | | |
Total liabilities | | | 15,932,025 | | | | | | | | | | | | 13,382,134 | | | | | | | | | |
| |
| Capital securities and preferred stock of subsidiary corporation (c) | | | 9,577 | | | | | | | | | | | | 131,220 | | | | | | | | | |
| |
| Shareholders’ equity | | | 1,489,741 | | | | | | | | | | | | 1,063,595 | | | | | | | | | |
| | | |
| | | | | | | | | | | |
| | | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 17,431,343 | | | | | | | | | | | $ | 14,576,949 | | | | | | | | | |
| | | |
| | | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | 122,948 | | | | | | | | | | | | 101,343 | | | | | |
Less: tax-equivalent adjustment | | | | | | | (1,660 | ) | | | | | | | | | | | (414 | ) | | | | |
| | | | | | | |
| | | | | | | | | | | |
| | | | | |
Net interest income | | | | | | $ | 121,288 | | | | | | | | | | | $ | 100,929 | | | | | |
| | | | | | | |
| | | | | | | | | | | |
| | | | | |
Interest-rate spread | | | | | | | | | | | 3.04 | % | | | | | | | | | | | 2.95 | % |
| | | | | | | | | | | |
| | | | | | | | | | | |
| |
Net interest margin | | | | | | | | | | | 3.06 | % | | | | | | | | | | | 2.99 | % |
| | | | | | | | | | | |
| | | | | | | | | | | |
| |
See Selected Financial Highlights for footnotes.
Consolidated Average Statements of Condition (unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Nine Months Ended September 30,
| | 2004
| | | | | | 2003
| |
| | | | | | | | | | | Fully tax- | | | | | | | | | | | | | | Fully tax- | |
| | | Average | | | | | | equivalent | | | | | | Average | | | | | | equivalent | |
(Dollars in thousands)
| | balance
| | Interest
| | yield/rate
| | | | | | balance
| | Interest
| | yield/rate
| |
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-earning assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Loans | | $ | 10,407,028 | | | $ | 393,131 | | | | 5.01 | % | | | | | | $ | 8,605,386 | | | $ | 342,695 | | | | 5.29 | % | |
| Loans held for sale | | | 127,846 | | | | 4,964 | | | | 5.18 | | | | | | | | 345,382 | | | | 13,618 | | | | 5.26 | | |
| Securities | | | 4,424,813 | | | | 138,533 | | | | 4.18 | (d | ) | | | | | | 4,185,538 | | | | 140,521 | | | | 4.54 | (d | ) |
| Short-term investments | | | 32,290 | | | | 256 | | | | 1.04 | | | | | | | | 23,161 | | | | 174 | | | | 0.99 | | |
| | | |
| | | |
| | | |
| | | | | | | |
| | | |
| | | |
| | |
Total interest-earning assets | | | 14,991,977 | | | | 536,884 | | | | 4.76 | | | | | | | | 13,159,467 | | | | 497,008 | | | | 5.05 | | |
| | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | |
| Noninterest-earning assets | | | 1,174,680 | | | | | | | | | | | | | | | | 967,783 | | | | | | | | | | |
| | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | |
Total assets | | $ | 16,166,657 | | | | | | | | | | | | | | | $ | 14,127,250 | | | | | | | | | | |
| | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | |
Liabilities and Shareholders’ Equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Demand deposits | | $ | 1,207,649 | | | $ | — | | | | — | % | | | | | | $ | 994,803 | | | $ | — | | | | — | % | |
| Savings, NOW and money market deposit accounts | | | 5,166,808 | | | | 33,143 | | | | 0.86 | | | | | | | | 4,218,937 | | | | 32,403 | | | | 1.03 | | |
| Time deposits | | | 3,071,795 | | | | 54,470 | | | | 2.37 | | | | | | | | 2,651,806 | | | | 52,589 | | | | 2.65 | | |
| | | |
| | | |
| | | |
| | | | | | | |
| | | |
| | | |
| | |
Total deposits | | | 9,446,252 | | | | 87,613 | | | | 1.24 | | | | | | | | 7,865,546 | | | | 84,992 | | | | 1.44 | | |
| | | |
| | | |
| | | |
| | | | | | | |
| | | |
| | | |
| | |
| Federal Home Loan Bank advances | | | 2,802,588 | | | | 62,282 | | | | 2.92 | | | | | | | | 2,428,287 | | | | 69,204 | | | | 3.76 | | |
| Fed funds and repurchase agreements | | | 1,853,465 | | | | 16,238 | | | | 1.15 | | | | | | | | 2,245,481 | | | | 20,521 | | | | 1.21 | | |
| Other long-term debt (c) | | | 633,343 | | | | 26,712 | | | | 5.62 | | | | | | | | 316,476 | | | | 14,939 | | | | 6.29 | | |
| | | |
| | | |
| | | |
| | | | | | | |
| | | |
| | | |
| | |
Total borrowings | | | 5,289,396 | | | | 105,232 | | | | 2.62 | | | | | | | | 4,990,244 | | | | 104,664 | | | | 2.77 | | |
| | | |
| | | |
| | | |
| | | | | | | |
| | | |
| | | |
| | |
Total interest-bearing liabilities | | | 14,735,648 | | | | 192,845 | | | | 1.74 | | | | | | | | 12,855,790 | | | | 189,656 | | | | 1.96 | | |
| | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | |
| Noninterest-bearing liabilities | | | 88,132 | | | | | | | | | | | | | | | | 77,393 | | | | | | | | | | |
| | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | |
Total liabilities | | | 14,823,780 | | | | | | | | | | | | | | | | 12,933,183 | | | | | | | | | | |
| |
| Capital securities and preferred stock of subsidiary corporation (c) | | | 9,577 | | | | | | | | | | | | | | | | 128,510 | | | | | | | | | | |
| |
| Shareholders’ equity | | | 1,333,300 | | | | | | | | | | | | | | | | 1,065,557 | | | | | | | | | | |
| | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 16,166,657 | | | | | | | | | | | | | | | $ | 14,127,250 | | | | | | | | | | |
| | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | 344,039 | | | | | | | | | | | | | | | | 307,352 | | | | | | |
Less: tax-equivalent adjustment | | | | | | | (3,478 | ) | | | | | | | | | | | | | | | (1,128 | ) | | | | | |
| | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | |
Net interest income | | | | | | $ | 340,561 | | | | | | | | | | | | | | | $ | 306,224 | | | | | | |
| | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | |
Interest-rate spread | | | | | | | | | | | 3.02 | % | | | | | | | | | | | | | | | 3.09 | % | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | |
Net interest margin | | | | | | | | | | | 3.05 | % | | | | | | | | | | | | | | | 3.13 | % | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | |
See Selected Financial Highlights for footnotes.
Asset Quality (unaudited)
| | | | | | | | | | | | | | | | | | | | | |
| | | At or for the Three Months Ended
|
| | | Sept. 30, | | June 30, | | March 31, | | Dec. 31, | | Sept. 30, |
( Dollars in thousands)
| | 2004
| | 2004
| | 2004
| | 2003
| | 2003
|
Nonperforming Assets | | | | | | | | | | | | | | | | | | | | |
| |
Nonperforming loans: | | | | | | | | | | | | | | | | | | | | |
| Commercial: | | | | | | | | | | | | | | | | | | | | |
| Commercial | | $ | 12,407 | | | $ | 15,895 | | | $ | 11,832 | | | $ | 14,266 | | | $ | 17,024 | |
| Specialized industry | | | — | | | | — | | | | 5,019 | | | | 6,427 | | | | 6,493 | |
| Equipment financing | | | 4,501 | | | | 5,021 | | | | 5,561 | | | | 5,583 | | | | 8,241 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Total commercial | | | 16,908 | | | | 20,916 | | | | 22,412 | | | | 26,276 | | | | 31,758 | |
| |
| Commercial real estate | | | 11,157 | | | | 13,757 | | | | 5,583 | | | | 4,281 | | | | 1,940 | |
| Residential | | | 7,695 | | | | 8,599 | | | | 7,941 | | | | 6,128 | | | | 7,087 | |
| Consumer | | | 1,204 | | | | 826 | | | | 604 | | | | 959 | | | | 718 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Total nonperforming loans | | | 36,964 | | | | 44,098 | | | | 36,540 | | | | 37,644 | | | | 41,503 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
Other real estate owned and repossessed assets: | | | | | | | | | | | | | | | | | | | | |
| Commercial | | | 2,482 | | | | 3,192 | | | | 4,273 | | | | 4,296 | | | | 4,019 | |
| Residential | | | 527 | | | | 238 | | | | 325 | | | | 942 | | | | 541 | |
| Consumer | | | 20 | | | | 130 | | | | 124 | | | | — | | | | — | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Total other real estate owned and repossessed assets | | | 3,029 | | | | 3,560 | | | | 4,722 | | | | 5,238 | | | | 4,560 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
Total nonperforming assets | | $ | 39,993 | | | $ | 47,658 | | | $ | 41,262 | | | $ | 42,882 | | | $ | 46,063 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
Summary of Classified Loans | | | | | | | | | | | | | | | | | | | | |
| |
| Substandard: | | | | | | | | | | | | | | | | | | | | |
| Accruing | | $ | 89,463 | | | $ | 90,421 | | | $ | 87,477 | | | $ | 72,638 | | | $ | 69,216 | |
| Nonaccruing | | | 32,234 | | | | 39,600 | | | | 31,595 | | | | 29,403 | | | | 36,365 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Total substandard | | | 121,697 | | | | 130,021 | | | | 119,072 | | | | 102,041 | | | | 105,581 | |
| |
| Doubtful: | | | | | | | | | | | | | | | | | | | | |
| Nonaccruing | | | 3,615 | | | | 3,286 | | | | 4,377 | | | | 6,791 | | | | 3,792 | |
| |
| Loss | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
Total classified loans | | $ | 125,312 | | | $ | 133,307 | | | $ | 123,449 | | | $ | 108,832 | | | $ | 109,373 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
Classified as a percent of total loans | | | 1.1 | % | | | 1.2 | % | | | 1.3 | % | | | 1.2 | % | | | 1.2 | % |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
Allowance for Loan Losses (unaudited)
| | | | | | | | | | | | | | | | | | | | | |
| | | At or for the Three Months Ended
|
| | | Sept. 30, | | June 30, | | March. 31, | | Dec. 31, | | Sept. 30, |
( Dollars in thousands)
| | 2004
| | 2004
| | 2004
| | 2003
| | 2003
|
Allowance for Loan Losses | | | | | | | | | | | | | | | | | | | | |
| |
Beginning balance | | $ | 146,511 | | | $ | 123,613 | | | $ | 121,674 | | | $ | 117,707 | | | $ | 119,239 | |
| |
| Allowance for purchased loans | | | — | | | | 20,081 | | | | — | | | | 1,970 | | | | — | |
| Provision | | | 4,000 | | | | 5,000 | | | | 5,000 | | | | 5,000 | | | | 10,000 | |
| |
| Charge-offs: | | | | | | | | | | | | | | | | | | | | |
| Commercial: | | | | | | | | | | | | | | | | | | | | |
| Specialized industry | | | — | | | | — | | | | 826 | | | | 558 | | | | 3,870 | |
| All other commercial | | | 3,556 | | | | 2,646 | | | | 2,249 | | | | 2,949 | | | | 9,361 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Total commercial | | | 3,556 | | | | 2,646 | | | | 3,075 | | | | 3,507 | | | | 13,231 | |
| Residential | | | 92 | | | | 187 | | | | 983 | | | | 330 | | | | 39 | |
| Consumer | | | 195 | | | | 174 | | | | 97 | | | | 174 | | | | 122 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Total charge-offs | | | 3,843 | | | | 3,007 | | | | 4,155 | | | | 4,011 | | | | 13,392 | |
| Recoveries | | | (1,511 | ) | | | (824 | ) | | | (1,094 | ) | | | (1,008 | ) | | | (1,860 | ) |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Net loan charge-offs | | | 2,332 | | | | 2,183 | | | | 3,061 | | | | 3,003 | | | | 11,532 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
Ending balance | | $ | 148,179 | | | $ | 146,511 | | | $ | 123,613 | | | $ | 121,674 | | | $ | 117,707 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
Asset Quality Ratios: | | | | | | | | | | | | | | | | | | | | |
| |
| Allowance for loan losses / total loans | | | 1.28 | % | | | 1.30 | % | | | 1.30 | % | | | 1.32 | % | | | 1.29 | % |
| Net charge-offs/ average loans (annualized) | | | 0.08 | | | | 0.08 | | | | 0.13 | | | | 0.13 | | | | 0.52 | |
| Nonperforming loans / total loans | | | 0.32 | | | | 0.39 | | | | 0.38 | | | | 0.41 | | | | 0.46 | |
| Nonperforming assets / total assets | | | 0.22 | | | | 0.28 | | | | 0.27 | | | | 0.29 | | | | 0.32 | |
| Allowance for loan losses / nonperforming loans | | | 400.87 | | | | 332.24 | | | | 338.30 | | | | 323.22 | | | | 283.61 | |
