Exhibit 99.1
| | | | | | | |
| | | Media Contact | | | | Investor Contact |
| | | Clark Finley 203-578-2287 | | | | James Sitro 203-578-2399 |
| | | cfinley@websterbank.com | | | | jsitro@websterbank.com |
WEBSTER REPORTS 2006 FOURTH QUARTER EARNINGS
Fourth Quarter Highlights:
| | • | | Diluted earnings per share of $.67 (includes the effect of charges aggregating $.10 per diluted share, primarily related to previously announced balance sheet repositioning actions) |
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| | • | | Increased tangible capital to 6.46 percent (up from 5.68 percent at September 30, 2006) |
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| | • | | Improved net interest margin to 3.23 percent (up from 3.01 percent in the third quarter) |
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| | • | | Completed the acquisition of NewMil Bancorp, Inc., adding more than $500 million in loans, $600 million in deposits and 14 additional retail branches |
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| | • | | Opened new branches in Waterford, Connecticut and Westerly, Rhode Island |
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| | • | | Completed the sale of $250 million in residential mortgage loans and $1.9 billion in available for sale mortgage-backed securities as part of previously announced balance sheet repositioning actions |
WATERBURY, Conn., January 18, 2007 – Webster Financial Corporation (NYSE: WBS), the holding company for Webster Bank, N.A., today announced net income of $37.8 million or $.67 per diluted share for the fourth quarter of 2006, compared to $45.5 million or $.84 per diluted share for the fourth quarter of 2005. Fourth quarter 2006 net income includes net charges totaling $8.4 million ($5.5 million, net of taxes) or $.10 per diluted share from previously announced balance sheet repositioning charges and acquisition costs of NewMil, and gains on the sale of properties and pension plan curtailment. Net income was $133.8 million or $2.47 per diluted share, for the twelve months ended December 31, 2006, compared to $185.8 million or $3.43 per diluted share for the twelve months ended
December 31, 2005. Net income for the twelve months ended December 31, 2006, includes net charges totaling $58.2 million ($37.8 million, net of taxes) or $.70 per diluted share from the balance sheet repositioning charges, acquisition costs of NewMil, gains on the sale of properties and pension plan curtailment.
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| Earnings Reconciliation |
| | | For the Three Months |
| | | Ended December 31, 2006 |
| | | Pre- | | Tax | | |
| ( in thousands except per share data) | | Tax | | Effected | | EPS |
| | | |
Reported Net Income | | $ | 54,895 | | | $ | 37,798 | | | $ | 0.67 | |
| | | | | | | | | | | | | |
Balance Sheet Repositioning Actions: | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Loss on sale of $250 million of mortgage loans | | | 5,713 | | | | 3,713 | | | | 0.07 | |
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Loss on sale of AFS securities, net | | | 2,400 | | | | 1,560 | | | | 0.03 | |
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Total — balance sheet repositioning actions | | | 8,113 | | | | 5,273 | | | | 0.10 | |
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Other Items: | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Acquisition costs (NewMil) | | | 2,018 | | | | 1,312 | | | | 0.02 | |
| | | | | | | | | | | | | |
Net gain from pension plan curtailment | | | (300 | ) | | | (195 | ) | | | 0.00 | |
| | | | | | | | | | | | | |
Gain on sale of properties | | | (1,400 | ) | | | (910 | ) | | | (0.02 | ) |
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Total Other Items | | | 318 | | | | 207 | | | | 0.00 | |
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Total — balance sheet repositioning actions and other items | | | 8,431 | | | | 5,480 | | | | 0.10 | |
| | | |
Adjusted net income excluding balance sheet repositioning actions and other items | | $ | 63,326 | | | $ | 43,278 | | | $ | 0.77 | |
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Net pre-tax items of $8.4 million in the fourth quarter include a previously announced $5.7 million loss on the sale of $250 million of residential mortgage loans, a $2.4 million loss related to the previously announced sale of $1.9 billion of mortgage-backed securities classified as available for sale and $2.0 million of previously announced acquisition related expenses. Offsetting these charges were a $300,000 net gain from the recently announced pension plan curtailment and $1.4 million of gains on the sale of properties.
The Company announced that it had elected in the fourth quarter to curtail its defined benefit pension and supplemental executive retirement plans and replace them with an enhanced 401(k) retirement savings plan. This change will be effective as of January 1, 2008. Overall retirement program expenses are expected to remain essentially unchanged in future periods. A net gain of $300,000 from the plan curtailment was recognized in the fourth quarter of 2006.
Additionally, as part of its repositioning plans, the Company had previously announced in the fourth quarter its decision to securitize $1.0 billion in residential loans and to hold these securities for collateral needs. As of December 31, 2006, $370 million of these loans had been securitized, with another $633 million in loans scheduled to be securitized by January 31, 2007.
“In the fourth quarter, Webster began to realize the positive results of our repositioning actions,” stated Webster Chairman and Chief Executive Officer James C. Smith. “We are seeing a more reliable and stable earnings stream as the increasingly negative effects that wholesale borrowings have had on prior quarters is no longer a significant factor.”
Commercial loans, including commercial real estate loans, and consumer loans were $8.5 billion at December 31, 2006 up, 14 percent from December 31, 2005. Commercial and consumer loans represent 66 percent of total loans at December 31, 2006 compared to 61 percent a year ago. “Webster has shown consistent growth and contributions from our commercial and consumer lending businesses,” stated Webster President and Chief Operating Officer William T. Bromage. “We continue to gain momentum in our core businesses even in a very competitive market and a challenging interest rate environment.”
The Company opened two new branches, one in Waterford, Connecticut and one in Westerly, Rhode Island in the fourth quarter. In 2006, Webster added sixde novobranches and an additional 14 locations in conjunction with the NewMil Bank acquisition. “As we have previously stated, we are following a ‘build and buy’ strategy to grow our retail presence,” stated Mr. Smith. “It is our intention to continue with this strategy in 2007.”
Revenues
Total revenue, which consists of net interest income plus total noninterest income, was $180.5 million in the fourth quarter, compared to $129.3 million in the third quarter and $187.9 million a year ago.
Net interest income was $129.2 million in the fourth quarter compared to $122.4 million in the third quarter and $129.7 million a year ago. Continued strong growth in the fourth quarter of 2006 in higher yielding commercial and consumer loans more than offset the increase in the cost of deposits and borrowings as well as reduced contributions from the residential mortgage and securities portfolios.
Webster’s net interest margin (annualized tax-equivalent net interest income as a percentage of average earning assets) increased to 3.23 percent compared to 3.01 percent in the third quarter and 3.22 percent a year ago. The net interest margin has been positively impacted by the balance sheet repositioning actions as the proceeds from the sales of securities have been utilized to pay-down high cost borrowings. Slightly offsetting the positive impact of the balance sheet restructuring is continued consumer preference for higher yielding certificates of deposit as well as the impact of the inverted yield curve. The spread between the yield on loans and the cost of deposits decreased to 3.80 percent in the fourth quarter compared to 3.88 percent in the third quarter, primarily from increased deposit costs.
Total non-interest income was $51.4 million in the fourth quarter compared to $6.8 million in the third quarter and $58.2 million a year ago. Non-interest income in the fourth quarter was impacted by charges from losses on sales of securities of $2.4 million and loss on sale of loans of $5.7 million, while in the third quarter non-interest income included a $48.9 million charge for loss on the write-down of the available for sale securities portfolio to fair value. Deposit service fees totaled $25.5 million compared to $25.3 million in the third quarter and $22.9 million a year ago. Insurance revenue was $8.3 million in the quarter compared to $9.8 million in the third quarter and $10.7 million a year ago. The decrease in insurance revenue reflects a reduction in contingent commission income of $1.3 million in the fourth quarter. Loan and loan servicing fees were $9.6 million compared to $7.8 million in the third quarter and $9.3 million a year ago. The increase in loan and loan servicing fees in the quarter reflects higher commercial real estate prepayment fees of $2.4 million. Wealth management fees totaled $7.2 million compared to $6.7 million in the third quarter and $6.2 million a year ago. Other noninterest income, including a $1.4 million gain on the sale of properties, was $3.7 million compared to $1.7 million in the third quarter and $3.5 million a year ago.
Provision For Credit Losses
The provision for credit losses was $3.0 million in the fourth quarter compared to $3.0 million in the third quarter and $2.0 million a year ago. Net loan charge-offs totaled $9.1 million compared to $3.1 million in the third quarter and $1.4 million a year ago. The increase was primarily related to two commercial loans which had been identified and fully reserved prior to the fourth quarter of 2006. The annualized net loan charge-off ratio was 0.27 percent of average loans compared to 0.10 percent in the third quarter and 0.05 percent a year ago. The allowance for credit losses to total loans was 1.20 percent at both December 31, 2006 and September 30, 2006.
Non Interest Expenses
Total noninterest expenses were $122.6 million in the fourth quarter compared to $115.9 million in the third quarter and $119.4 million a year ago. Fourth quarter expenses increased primarily from the acquisition of NewMil Bancorp on October 6, 2006. Expenses include NewMil acquisition costs of $2.0 million and additional costs of approximately $3.4 million for NewMil ongoing operations. Fourth quarter results also include the write-offs of $200,000 in leasehold improvements from the early termination of two leased properties and $440,000 in other lease termination expenses.
Balance Sheet Trends
Total assets were $17.1 billion at December 31, 2006 compared with $17.8 billion a year ago. Total assets have declined due to the balance sheet repositioning actions previously discussed. Total loans were $12.9 billion, an increase of $0.6 billion, or 5 percent, from a year ago while securities totaled $2.0 billion and declined by $1.7 billion, or 47 percent. Deposits were $12.5 billion, an increase of $0.8 billion, or 7 percent, from a year ago with contributions from the branches acquired from the NewMil Bank acquisition,de novobranching and growth in health savings account deposits at HSA Bank.
Certificates of deposit balances grew by 16 percent during 2006 as consumer preference continued for this higher yielding product category. The $1.7 billion reduction in securities compared to a year ago contributed to a $1.7 billion reduction in wholesale borrowings over the past year. Wholesale borrowings declined to 15 percent of total assets at December 31 compared to 25 percent a year ago.
The loan to deposit ratio improved to 104 percent at December 31, 2006 from 106 percent at both September 30, 2006 and December 31, 2005. The Company anticipates that this ratio will further improve in the first quarter of 2007 upon the completion of the previously discussed $633 million mortgage securitization.
“We have previously stated that several of our goals were to improve our tangible capital ratio, significantly reduce our reliance on securities and borrowings and to substantially improve the net interest margin and our loan to deposit ratio,” stated Webster Chief Financial Officer Jerry Plush. “The positive impact of the balance sheet repositioning actions taken in the fourth quarter is evident as we have made significant progress toward each of these goals. Further improvement in the loan to deposit ratio will be seen upon the completion of the mortgage securitization at the end of this month.”
Book value per common share of $33.30 at December 31, 2006 increased from $30.70 a year ago. Tangible book value per share of $19.00 at December 31, 2006 increased from $18.03 last year. The ratio of tangible equity to tangible assets increased to 6.46 percent at December 31, 2006 compared to 5.54 percent a year ago.
Capital
The Company also announced today that, subject to regulatory notices, it intends to call its Capital Trust I and Capital Trust II securities which have a call price of 104.7 percent and 105.0 percent, respectively. The Company will take a pretax charge to income in 2007 of approximately $6.5 million related to the redemption premium and write-off of unamortized issuance costs. The Company is considering the replacement of these legacy trust preferred securities with enhanced trust preferred securities which have greater equity content for rating agency purposes. “Based on the current interest rate environment, we may replace the legacy trust preferred securities at a reduced cost or elect to further boost our capital levels by issuing a higher dollar amount of enhanced trust preferred securities with no impact to earnings per share in future periods,” stated Mr. Plush.
Asset Quality
Nonperforming assets totaled $61.8 million, or 0.48 percent of total loans and other real estate owned, at December 31, 2006 compared to $61.4 million, or 0.47 percent, at September 30 and $66.3 million, or 0.54 percent, a year ago.
The allowance for credit losses, which consists of the allowance for loan losses and the reserve for unfunded commitments, was $155.0 million, or 1.20 percent of total loans, at December 31, 2006 compared to $155.6 million, or 1.27 percent at December 31, 2005. The ratio of the allowance to nonperforming loans was 263 percent at December 31, 2006 compared to 257 percent at December 31, 2005.
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Webster Financial Corporation is the holding company for Webster Bank, National Association and Webster Insurance. With $17.1 billion in assets, Webster provides business and consumer banking, mortgage, insurance, financial planning, trust and investment services through 177 banking offices, 334 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., Center Capital Corporation, an equipment finance company headquartered in Farmington, Connecticut and provides health savings account trustee and administrative services through HSA Bank, a division of Webster Bank.
For more information about Webster, including past press releases and the latest Annual Report, visit the Webster website atwww.websteronline.com.
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Conference Call
A conference call covering Webster’s 2006 fourth quarter earnings announcement will be held today, Thursday, January 18, at 2:00 p.m. Eastern Time and may be heard through Webster’s investor relations website atwww.wbst.com, or in listen-only mode by calling 1-877-407-8293 or 201-689-8349 internationally. The call will be archived on the website and available for future retrieval.
Forward-looking Statements
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 2005. Except as required by law, Webster does not undertake to update any such forward looking information.
Non-GAAP Financial Measures
In addition to results presented in accordance with GAAP, this press release contains certain non-GAAP financial measures. We believe that providing certain non-GAAP financial measures provides investors with information useful in understanding our financial performance, our performance trends and financial position. A reconciliation of net income and other performance ratios, as adjusted is included in the accompanying selected financial highlights table, elsewhere in this report.
We believe that providing certain non-GAAP financial measures provides investors with information useful in understanding our financial performance, our performance trends and financial position. Specifically, we provide measures based on what we believe are our operating earnings on a consistent basis and exclude non-core operating items which affect the GAAP reporting of results of operations. We utilize these measures for internal planning and forecasting purposes. We, as well as securities analysts, investors and other interested parties, also use these measures to compare peer company operating performance. We believe that our presentation and discussion, together with the accompanying reconciliations, provides a complete understanding of factors and trends affecting our business and allows investors to view performance in a manner similar to management. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results and we strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.
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WEBSTER FINANCIAL CORPORATION
Selected Financial Highlights (unaudited)
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| | | At or for the Three | | At or for the Twelve |
| | | Months Ended December 31, | | Months Ended December 31, |
| (In thousands, except per share data) | | 2006 | | 2005 | | 2006 | | 2005 |
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Adjusted net income and performance ratios, net of tax, (annualized): | | | | | | | | | | | | | | | | |
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| Net income | | $ | 37,798 | | | $ | 45,500 | | | $ | 133,790 | | | $ | 185,855 | |
| Recognition of loss on AFS securities | | | 1,560 | | | | — | | | | 33,328 | | | | — | |
| Loss on sale of mortgage loans | | | 3,713 | | | | — | | | | 3,713 | | | | — | |
| NewMil aquistion costs | | | 1,312 | | | | — | | | | 1,918 | | | | — | |
| Net gain from pension plan curtailment | | | (195 | ) | | | — | | | | (195 | ) | | | — | |
| Gain on sale of properties | | | (910 | ) | | | — | | | | (910 | ) | | | — | |
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| Adjusted net income | | | 43,278 | | | | 45,500 | | | | 171,644 | | | | 185,855 | |
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| Net income per diluted common share | | | 0.77 | | | | 0.84 | | | | 3.17 | | | | 3.43 | |
| Return on average shareholders’ equity | | | 9.24 | % | | | 11.04 | % | | | 9.99 | % | | | 11.52 | % |
| Return on average tangible equity | | | 16.09 | | | | 18.81 | | | | 17.02 | | | | 19.95 | |
| Return on average assets | | | 0.97 | | | | 1.02 | | | | 0.96 | | | | 1.06 | |
| Noninterest income as a percentage of total revenue | | | 31.02 | | | | 30.99 | | | | 30.77 | | | | 29.92 | |
| Efficiency ratio (a) | | | 64.57 | | | | 63.53 | | | | 64.29 | | | | 61.71 | |
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Net income and performance ratios (annualized): | | | | | | | | | | | | | | | | |
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| Net income | | $ | 37,798 | | | $ | 45,500 | | | $ | 133,790 | | | $ | 185,855 | |
| Net income per diluted common share | | | 0.67 | | | | 0.84 | | | | 2.47 | | | | 3.43 | |
| Return on average shareholders’ equity | | | 8.07 | % | | | 11.04 | % | | | 7.79 | % | | | 11.52 | % |
| Return on average tangible equity | | | 14.06 | | | | 18.81 | | | | 13.26 | | | | 19.95 | |
| Return on average assets | | | 0.85 | | | | 1.02 | | | | 0.75 | | | | 1.06 | |
| Noninterest income as a percentage of total revenue | | | 28.45 | | | | 30.99 | | | | 25.11 | | | | 29.92 | |
| Efficiency ratio (a) | | | 67.93 | | | | 63.53 | | | | 69.95 | | | | 61.71 | |
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Asset quality: | | | | | | | | | | | | | | | | |
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| Allowance for credit losses | | $ | 154,994 | | | $ | 155,632 | | | $ | 154,994 | | | $ | 155,632 | |
| Nonperforming assets | | | 61,825 | | | | 66,338 | | | | 61,825 | | | | 66,338 | |
| Allowance for credit losses / total loans | | | 1.20 | % | | | 1.27 | % | | | 1.20 | % | | | 1.27 | % |
| Net charge-offs (recoveries) / average loans (annualized) | | | 0.27 | | | | 0.05 | | | | 0.13 | | | | 0.03 | |
| Nonperforming loans / total loans | | | 0.46 | | | | 0.49 | | | | 0.46 | | | | 0.49 | |
| Nonperforming assets / total loans plus OREO | | | 0.48 | | | | 0.54 | | | | 0.48 | | | | 0.54 | |
| Allowance for credit losses / nonperforming loans | | | 263.09 | | | | 257.02 | | | | 263.09 | | | | 257.02 | |
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Other ratios (annualized): | | | | | | | | | | | | | | | | |
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| Tangible capital ratio | | | 6.46 | % | | | 5.54 | % | | | 6.46 | % | | | 5.54 | % |
| Shareholders’ equity / total assets | | | 10.98 | | | | 9.24 | | | | 10.98 | | | | 9.24 | |
| Interest-rate spread | | | 3.14 | | | | 3.18 | | | | 3.09 | | | | 3.25 | |
| Net interest margin | | | 3.23 | | | | 3.22 | | | | 3.16 | | | | 3.29 | |
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Share related: | | | | | | | | | | | | | | | | |
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| | | | | | | | | | | | | | | | | |
| Book value per common share | | $ | 33.30 | | | $ | 30.70 | | | $ | 33.30 | | | | 30.70 | |
| Tangible book value per common share | | | 19.00 | | | | 18.03 | | | | 19.00 | | | | 18.03 | |
| Common stock closing price | | | 48.72 | | | | 46.90 | | | | 48.72 | | | | 46.90 | |
| Dividends declared per common share | | | 0.27 | | | | 0.25 | | | | 1.06 | | | | 0.98 | |
| | | | | | | | | | | | | | | | | |
| Common shares issued and outstanding | | | 56,362 | | | | 53,662 | | | | 56,362 | | | | 53,662 | |
| Basic shares (average) | | | 55,753 | | | | 53,473 | | | | 53,435 | | | | 53,577 | |
| Diluted shares (average) | | | 56,452 | | | | 54,129 | | | | 54,065 | | | | 54,236 | |
Footnotes:
| | (a) | | Noninterest expense as a percentage of net interest income plus noninterest income. |
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| | (b) | | For purposes of this computation, unrealized gains (losses) are excluded from the average balance for rate calculations. |
Consolidated Statements of Condition (unaudited)
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| | | December 31, | | September 30, | | December 31, |
| (In thousands) | | 2006 | | 2006 | | 2005 |
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Assets: | | | | | | | | | | | | |
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| Cash and due from depository institutions | | $ | 311,888 | | | $ | 243,434 | | | $ | 293,706 | |
| Short-term investments | | | 175,648 | | | | 9,562 | | | | 36,302 | |
| | | | | | | | | | | | | |
| Securities: | | | | | | | | | | | | |
| Trading, at fair value | | | 4,842 | | | | 2,848 | | | | 2,257 | |
| Available for sale, at fair value | | | 503,918 | | | | 2,249,935 | | | | 2,555,419 | |
| Held-to-maturity securities | | | 1,453,973 | | | | 1,064,188 | | | | 1,142,909 | |
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Total securities | | | 1,962,733 | | | | 3,316,971 | | | | 3,700,585 | |
| | | | | | | | | | | | | |
| Loans held for sale | | | 354,798 | | | | 309,149 | | | | 267,919 | |
| | | | | | | | | | | | | |
| Loans: | | | | | | | | | | | | |
| Residential mortgages | | | 4,424,634 | | | | 4,845,198 | | | | 4,828,564 | |
| Commercial | | | 3,386,274 | | | | 3,368,164 | | | | 2,876,528 | |
| Commercial real estate | | | 1,904,597 | | | | 1,770,674 | | | | 1,808,494 | |
| Consumer | | | 3,207,986 | | | | 3,037,674 | | | | 2,771,700 | |
| | | | | | | | | | | | | |
Total loans | | | 12,923,491 | | | | 13,021,710 | | | | 12,285,286 | |
| Allowance for loan losses | | | (147,719 | ) | | | (147,446 | ) | | | (146,486 | ) |
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Loans, net | | | 12,775,772 | | | | 12,874,264 | | | | 12,138,800 | |
| | | | | | | | | | | | | |
| Accrued interest receivable | | | 90,565 | | | | 93,844 | | | | 85,779 | |
| Premises and equipment, net | | | 195,909 | | | | 189,562 | | | | 182,856 | |
| Goodwill and intangible assets | | | 825,012 | | | | 692,388 | | | | 698,570 | |
| Cash surrender value of life insurance | | | 259,318 | | | | 245,108 | | | | 237,822 | |
| Prepaid expenses and other assets | | | 145,828 | | | | 164,532 | | | | 194,223 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Total Assets | | $ | 17,097,471 | | | $ | 18,138,814 | | | $ | 17,836,562 | |
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Liabilities and Shareholders’ Equity: | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | |
| Demand deposits | | $ | 1,588,783 | | | $ | 1,453,317 | | | $ | 1,546,096 | |
| NOW accounts | | | 1,671,778 | | | | 1,559,584 | | | | 1,622,403 | |
| Money market deposit accounts | | | 1,908,496 | | | | 2,078,797 | | | | 1,789,781 | |
| Savings accounts | | | 1,985,202 | | | | 1,838,494 | | | | 2,015,045 | |
| Certificates of deposit | | | 4,911,860 | | | | 4,583,508 | | | | 4,249,874 | |
| Treasury deposits | | | 392,277 | | | | 790,353 | | | | 407,946 | |
| | | | | | | | | | | | | |
Total deposits | | | 12,458,396 | | | | 12,304,053 | | | | 11,631,145 | |
| | | | | | | | | | | | | |
| Federal Home Loan Bank advances | | | 1,074,933 | | | | 1,867,393 | | | | 2,214,010 | |
| Securities sold under agreements to repurchase and other short-term debt | | | 893,206 | | | | 1,466,845 | | | | 1,522,381 | |
| Other long-term debt | | | 621,936 | | | | 636,028 | | | | 640,906 | |
| Reserve for unfunded commitments | | | 7,275 | | | | 8,885 | | | | 9,146 | |
| Accrued expenses and other liabilities | | | 155,285 | | | | 162,886 | | | | 162,171 | |
| | | | | | | | | | | | | |
Total liabilities | | | 15,211,031 | | | | 16,446,090 | | | | 16,179,759 | |
| | | | | | | | | | | | | |
| Preferred stock of subsidiary corporation | | | 9,577 | | | | 9,577 | | | | 9,577 | |
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Shareholders’ equity | | | 1,876,863 | | | | 1,683,147 | | | | 1,647,226 | |
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| | | | | | | | | | | | | |
Total Liabilities and Shareholders’ Equity | | $ | 17,097,471 | | | $ | 18,138,814 | | | $ | 17,836,562 | |
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See Selected Financial Highlights for footnotes.
Consolidated Statements of Income (unaudited)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | Twelve Months Ended |
| | | December 31, | | December 31, |
| (In thousands, except per share data) | | 2006 | | 2005 | | 2006 | | 2005 |
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| | | | | | | | | | | | | | | | | |
Interest income: | | | | | | | | | | | | | | | | |
| Loans | | $ | 225,634 | | | $ | 187,607 | | | $ | 843,398 | | | $ | 689,041 | |
| Securities and short-term investments | | | 32,514 | | | | 42,503 | | | | 154,127 | | | | 169,861 | |
| Loans held for sale | | | 6,191 | | | | 3,563 | | | | 17,213 | | | | 12,945 | |
| | | | | | | | | | | | | | | | | |
Total interest income | | | 264,339 | | | | 233,673 | | | | 1,014,738 | | | | 871,847 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Interest expense: | | | | | | | | | | | | | | | | |
| Deposits | | | 90,195 | | | | 57,132 | | | | 310,199 | | | | 188,437 | |
| Borrowings | | | 44,994 | | | | 46,879 | | | | 195,989 | | | | 166,069 | |
| | | | | | | | | | | | | | | | | |
Total interest expense | | | 135,189 | | | | 104,011 | | | | 506,188 | | | | 354,506 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Net interest income | | | 129,150 | | | | 129,662 | | | | 508,550 | | | | 517,341 | |
| Provision for credit losses | | | 3,000 | | | | 2,000 | | | | 11,000 | | | | 9,500 | |
| | | | | | | | | | | | | | | | | |
Net interest income after provision for credit losses | | | 126,150 | | | | 127,662 | | | | 497,550 | | | | 507,841 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Noninterest income: | | | | | | | | | | | | | | | | |
| Deposit service fees | | | 25,494 | | | | 22,909 | | | | 96,765 | | | | 85,967 | |
| Insurance revenue | | | 8,301 | | | | 10,678 | | | | 38,806 | | | | 44,015 | |
| Loan and loan servicing fees | | | 9,643 | | | | 9,290 | | | | 34,389 | | | | 33,232 | |
| Wealth and investment services | | | 7,161 | | | | 6,174 | | | | 27,183 | | | | 23,151 | |
| Gain from mortgage banking activities | | | 2,917 | | | | 2,322 | | | | 8,542 | | | | 11,573 | |
| Increase in cash surrender value of life insurance | | | 2,550 | | | | 2,360 | | | | 9,603 | | | | 9,241 | |
| Other | | | 3,733 | | | | 3,470 | | | | 8,486 | | | | 10,073 | |
| | | | | | | | | | | | | | | | | |
| | | | 59,799 | | | | 57,203 | | | | 223,774 | | | | 217,252 | |
| Loss on write-down of AFS securities to fair value | | | — | | | | — | | | | (48,879 | ) | | | — | |
| Loss on sale of mortgage loans | | | (5,713 | ) | | | — | | | | (5,713 | ) | | | — | |
| (Loss) gain on sale of securities, net | | | (2,732 | ) | | | 1,026 | | | | 1,289 | | | | 3,633 | |
| | | | | | | | | | | | | | | | | |
Total noninterest income | | | 51,354 | | | | 58,229 | | | | 170,471 | | | | 220,885 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Noninterest expenses: | | | | | | | | | | | | | | | | |
| Compensation and benefits | | | 64,142 | | | | 64,905 | | | | 255,780 | | | | 241,469 | |
| Occupancy | | | 13,403 | | | | 11,141 | | | | 49,386 | | | | 43,292 | |
| Furniture and equipment | | | 14,637 | | | | 14,810 | | | | 56,033 | | | | 50,228 | |
| Intangible amortization | | | 3,473 | | | | 5,001 | | | | 14,473 | | | | 19,913 | |
| Marketing | | | 3,350 | | | | 3,981 | | | | 15,477 | | | | 14,267 | |
| Professional services | | | 5,457 | | | | 3,594 | | | | 16,767 | | | | 14,962 | |
| Conversion and infrastructure costs | | | — | | | | 1,281 | | | | — | | | | 8,138 | |
| Acquisition costs | | | 2,018 | | | | — | | | | 2,951 | | | | — | |
| Other | | | 16,129 | | | | 14,646 | | | | 64,081 | | | | 63,301 | |
| | | | | | | | | | | | | | | | | |
Total noninterest expenses | | | 122,609 | | | | 119,359 | | | | 474,948 | | | | 455,570 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Income before income taxes | | | 54,895 | | | | 66,532 | | | | 193,073 | | | | 273,156 | |
| Income taxes | | | 17,097 | | | | 21,032 | | | | 59,283 | | | | 87,301 | |
| | | | | | | | | | | | | | | | | |
Net income | | $ | 37,798 | | | $ | 45,500 | | | $ | 133,790 | | | $ | 185,855 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Diluted shares (average) | | | 56,452 | | | | 54,129 | | | | 54,065 | | | | 54,236 | |
| | | | | | | | | | | | | | | | | |
Net income per common share: | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.68 | | | $ | 0.85 | | | $ | 2.50 | | | $ | 3.47 | |
| Diluted | | | 0.67 | | | | 0.84 | | | | 2.47 | | | | 3.43 | |
See Selected Financial Highlights for footnotes.
Consolidated Statements of Income (unaudited)
| | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | |
| | | Dec. 31, | | | Sept. 30, | | | June 30, | | | March 31, | | | Dec. 31, | |
| (In thousands, except per share data) | | 2006 | | | 2006 | | | 2006 | | | 2006 | | | 2005 | |
| |
| | | | | | | | | | | | | | | | | | | | | |
Interest income: | | | | | | | | | | | | | | | | | | | | |
| Loans | | $ | 225,634 | | | $ | 215,094 | | | $ | 207,097 | | | $ | 195,574 | | | $ | 187,607 | |
| Securities and short-term investments | | | 32,514 | | | | 40,883 | | | | 39,134 | | | | 41,595 | | | | 42,503 | |
| Loans held for sale | | | 6,191 | | | | 4,366 | | | | 3,317 | | | | 3,339 | | | | 3,563 | |
| | | | | | | | | | | | | | | | |
Total interest income | | | 264,339 | | | | 260,343 | | | | 249,548 | | | | 240,508 | | | | 233,673 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Interest expense: | | | | | | | | | | | | | | | | | | | | |
| Deposits | | | 90,195 | | | | 85,058 | | | | 72,593 | | | | 62,354 | | | | 57,132 | |
| Borrowings | | | 44,994 | | | | 52,849 | | | | 50,150 | | | | 47,995 | | | | 46,879 | |
| | | | | | | | | | | | | | | | |
Total interest expense | | | 135,189 | | | | 137,907 | | | | 122,743 | | | | 110,349 | | | | 104,011 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Net interest income | | | 129,150 | | | | 122,436 | | | | 126,805 | | | | 130,159 | | | | 129,662 | |
| Provision for credit losses | | | 3,000 | | | | 3,000 | | | | 3,000 | | | | 2,000 | | | | 2,000 | |
| | | | | | | | | | | | | | | | |
Net interest income after provision for credit losses | | | 126,150 | | | | 119,436 | | | | 123,805 | | | | 128,159 | | | | 127,662 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Noninterest income: | | | | | | | | | | | | | | | | | | | | |
| Deposit service fees | | | 25,494 | | | | 25,252 | | | | 24,150 | | | | 21,869 | | | | 22,909 | |
| Insurance revenue | | | 8,301 | | | | 9,793 | | | | 9,988 | | | | 10,724 | | | | 10,678 | |
| Loan and loan servicing fees | | | 9,643 | | | | 7,760 | | | | 9,162 | | | | 7,824 | | | | 9,290 | |
| Wealth and investment services | | | 7,161 | | | | 6,738 | | | | 6,930 | | | | 6,354 | | | | 6,174 | |
| Gain (loss) from mortgage banking activities | | | 2,917 | | | | (185 | ) | | | 2,538 | | | | 3,273 | | | | 2,322 | |
| Increase in cash surrender value of life insurance | | | 2,550 | | | | 2,368 | | | | 2,314 | | | | 2,371 | | | | 2,360 | |
| Other | | | 3,733 | | | | 1,693 | | | | 1,284 | | | | 1,775 | | | | 3,470 | |
| | | | | | | | | | | | | | | | |
| | | | 59,799 | | | | 53,419 | | | | 56,366 | | | | 54,190 | | | | 57,203 | |
| Loss on write-down of AFS securities to fair value | | | — | | | | (48,879 | ) | | | — | | | | — | | | | — | |
| Loss on sale of mortgage loans | | | (5,713 | ) | | | — | | | | — | | | | — | | | | — | |
| (Loss) gain on sale of securities, net | | | (2,732 | ) | | | 2,307 | | | | 702 | | | | 1,012 | | | | 1,026 | |
| | | | | | | | | | | | | | | | |
Total noninterest income | | | 51,354 | | | | 6,847 | | | | 57,068 | | | | 55,202 | | | | 58,229 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Noninterest expenses: | | | | | | | | | | | | | | | | | | | | |
| Compensation and benefits | | | 64,142 | | | | 62,050 | | | | 64,585 | | | | 65,003 | | | | 64,905 | |
| Occupancy | | | 13,403 | | | | 11,977 | | | | 11,824 | | | | 12,182 | | | | 11,141 | |
| Furniture and equipment | | | 14,637 | | | | 13,840 | | | | 13,962 | | | | 13,595 | | | | 14,810 | |
| Intangible amortization | | | 3,473 | | | | 3,079 | | | | 3,544 | | | | 4,377 | | | | 5,001 | |
| Marketing | | | 3,350 | | | | 4,211 | | | | 4,292 | | | | 3,624 | | | | 3,981 | |
| Professional services | | | 5,457 | | | | 4,302 | | | | 3,464 | | | | 3,544 | | | | 3,594 | |
| Conversion and infrastructure costs | | | — | | | | — | | | | — | | | | — | | | | 1,281 | |
| Acquistion costs | | | 2,018 | | | | 868 | | | | 65 | | | | — | | | | — | |
| Other | | | 16,129 | | | | 15,523 | | | | 15,582 | | | | 16,846 | | | | 14,646 | |
| | | | | | | | | | | | | | | | |
Total noninterest expenses | | | 122,609 | | | | 115,850 | | | | 117,318 | | | | 119,171 | | | | 119,359 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Income before income taxes | | | 54,895 | | | | 10,433 | | | | 63,555 | | | | 64,190 | | | | 66,532 | |
| Income taxes | | | 17,097 | | | | 1,436 | | | | 20,412 | | | | 20,338 | | | | 21,032 | |
| | | | | | | | | | | | | | | | |
Net income | | $ | 37,798 | | | $ | 8,997 | | | $ | 43,143 | | | $ | 43,852 | | | $ | 45,500 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Diluted shares (average) | | | 56,452 | | | | 52,871 | | | | 53,252 | | | | 53,703 | | | | 54,129 | |
| | | | | | | | | | | | | | | | | | | | | |
Net income per common share: | | | | | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.68 | | | $ | 0.17 | | | $ | 0.82 | | | $ | 0.83 | | | $ | 0.85 | |
| Diluted | | | 0.67 | | | | 0.17 | | | | 0.81 | | | | 0.82 | | | | 0.84 | |
See Selected Financial Highlights for footnotes.
Interest-Rate Spread (unaudited)
| | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | |
| | | December | | | September | | | June | | | March | | | December | |
| | | 2006 | | | 2006 | | | 2006 | | | 2006 | | | 2005 | |
| |
| | | | | | | | | | | | | | | | | | | | | |
Interest-rate spread | | | | | | | | | | | | | | | | | | | | |
| Yield on interest-earning assets | | | 6.52 | % | | | 6.31 | % | | | 6.11 | % | | | 5.97 | % | | | 5.73 | % |
| Cost of interest-bearing liabilities | | | 3.38 | | | | 3.38 | | | | 3.05 | | | | 2.78 | | | | 2.55 | |
| | | | | | | | | | | | | | | | |
| Interest-rate spread | | | 3.14 | % | | | 2.93 | % | | | 3.06 | % | | | 3.19 | % | | | 3.18 | % |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Net interest margin | | | 3.23 | % | | | 3.01 | % | | | 3.13 | % | | | 3.24 | % | | | 3.22 | % |
| | | | | | | | | | | | | | | | |
Consolidated Average Statements of Condition (unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended December 31, | | 2006 | | | 2005 | |
| | | | | | | | | | | Fully tax- | | | | | | | | | | | Fully tax- | |
| | | Average | | | | | | | equivalent | | | Average | | | | | | | equivalent | |
| (Dollars in thousands) | | balance | | | Interest | | | yield/rate | | | balance | | | Interest | | | yield/rate | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-earning assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Loans | | $ | 13,362,185 | | | $ | 225,634 | | | | 6.69 | % | | $ | 12,328,141 | | | $ | 187,608 | | | | 6.03 | % |
| Securities | | | 2,435,986 | | | | 34,695 | | | | 5.72 | (b) | | | 3,715,720 | | | | 44,733 | | | | 4.76 | (b) |
| Loans held for sale | | | 417,479 | | | | 6,191 | | | | 5.93 | | | | 251,169 | | | | 3,563 | | | | 5.67 | |
| Short-term investments | | | 29,896 | | | | 368 | | | | 4.82 | | | | 19,846 | | | | 147 | | | | 2.90 | |
| | | | | | | | | | | | | | | | | | | |
Total interest-earning assets | | | 16,245,546 | | | | 266,888 | | | | 6.52 | | | | 16,314,876 | | | | 236,051 | | | | 5.73 | |
| | | | | | | | | | | | | | | | | | | | | |
| Noninterest-earning assets | | | 1,617,888 | | | | | | | | | | | | 1,537,062 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 17,863,434 | | | | | | | | | | | $ | 17,851,938 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities and Shareholders’ Equity: | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
| Demand deposits | | $ | 1,522,571 | | | $ | — | | | | — | % | | $ | 1,522,306 | | | $ | — | | | | — | % |
| Savings, NOW and money market deposit accounts | | | 5,582,187 | | | | 29,609 | | | | 2.10 | | | | 5,502,733 | | | | 19,065 | | | | 1.37 | |
| Time deposits | | | 5,405,010 | | | | 60,586 | | | | 4.44 | | | | 4,665,580 | | | | 38,067 | | | | 3.24 | |
| | | | | | | | | | | | | | | | | | | |
Total deposits | | | 12,509,768 | | | | 90,195 | | | | 2.86 | | | | 11,690,619 | | | | 57,132 | | | | 1.94 | |
| | | | | | | | | | | | | | | | | | | |
| Federal Home Loan Bank advances | | | 1,444,155 | | | | 18,169 | | | | 4.92 | | | | 2,280,934 | | | | 22,742 | | | | 3.90 | |
| Repurchase agreements and other short-term debt | | | 1,239,065 | | | | 14,100 | | | | 4.45 | | | | 1,454,730 | | | | 12,568 | | | | 3.38 | |
| Other long-term debt | | | 637,853 | | | | 12,725 | | | | 7.98 | | | | 665,062 | | | | 11,569 | | | | 6.96 | |
| | | | | | | | | | | | | | | | | | | |
Total borrowings | | | 3,321,073 | | | | 44,994 | | | | 5.33 | | | | 4,400,726 | | | | 46,879 | | | | 4.19 | |
| | | | | | | | | | | | | | | | | | | |
Total interest-bearing liabilities | | | 15,830,841 | | | | 135,189 | | | | 3.38 | | | | 16,091,345 | | | | 104,011 | | | | 2.55 | |
| | | | | | | | | | | | | | | | | | | | | |
| Noninterest-bearing liabilities | | | 149,623 | | | | | | | | | | | | 101,994 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities | | | 15,980,464 | | | | | | | | | | | | 16,193,339 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Preferred stock of subsidiary corporation | | | 9,577 | | | | | | | | | | | | 9,577 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Shareholders’ equity | | | 1,873,393 | | | | | | | | | | | | 1,649,022 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 17,863,434 | | | | | | | | | | | $ | 17,851,938 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | 131,699 | | | | | | | | | | | | 132,040 | | | | | |
Less: tax-equivalent adjustment | | | | | | | (2,549 | ) | | | | | | | | | | | (2,378 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net interest income | | | | | | $ | 129,150 | | | | | | | | | | | $ | 129,662 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-rate spread | | | | | | | | | | | 3.14 | % | | | | | | | | | | | 3.18 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
Net interest margin | | | | | | | | | | | 3.23 | % | | | | | | | | | | | 3.22 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
See Selected Financial Highlights for footnotes.
Consolidated Average Statements of Condition (unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Twelve Months Ended December 31, | | 2006 | | | 2005 | |
| | | | | | | | | | | Fully tax- | | | | | | | | | | | Fully tax- | |
| | | Average | | | | | | | equivalent | | | Average | | | | | | | equivalent | |
| (Dollars in thousands) | | balance | | | Interest | | | yield/rate | | | balance | | | Interest | | | yield/rate | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-earning assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Loans | | $ | 12,800,864 | | | $ | 843,398 | | | | 6.59 | % | | $ | 11,930,776 | | | $ | 689,048 | | | | 5.78 | % |
| Securities | | | 3,224,776 | | | | 162,504 | | | | 4.98 | (b) | | | 3,806,289 | | | | 178,106 | | | | 4.68 | (b) |
| Loans held for sale | | | 288,892 | | | | 17,213 | | | | 5.96 | | | | 232,695 | | | | 12,945 | | | | 5.56 | |
| Short-term investments | | | 25,514 | | | | 1,079 | | | | 4.23 | | | | 19,982 | | | | 537 | | | | 2.69 | |
| | | | | | | | | | | | | | | |
Total interest-earning assets | | | 16,340,046 | | | | 1,024,194 | | | | 6.25 | | | | 15,989,742 | | | | 880,636 | | | | 5.50 | |
| | | | | | | | | | | | | | | | | | | |
| Noninterest-earning assets | | | 1,531,421 | | | | | | | | | | | | 1,484,723 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 17,871,467 | | | | | | | | | | | $ | 17,474,465 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities and Shareholders’ Equity: | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
| Demand deposits | | $ | 1,470,861 | | | $ | — | | | | — | % | | $ | 1,449,596 | | | $ | — | | | | — | % |
| Savings, NOW and money market deposit accounts | | | 5,427,812 | | | | 100,165 | | | | 1.85 | | | | 5,633,897 | | | | 66,226 | | | | 1.18 | |
| Time deposits | | | 5,193,608 | | | | 210,034 | | | | 4.04 | | | | 4,215,801 | | | | 122,211 | | | | 2.90 | |
| | | | | | | | | | | | | | | | | | | |
Total deposits | | | 12,092,281 | | | | 310,199 | | | | 2.57 | | | | 11,299,294 | | | | 188,437 | | | | 1.67 | |
| | | | | | | | | | | | | | | | | | | |
| Federal Home Loan Bank advances | | | 2,035,786 | | | | 94,322 | | | | 4.63 | | | | 2,256,216 | | | | 78,623 | | | | 3.48 | |
| Repurchase agreements and other short-term debt | | | 1,243,269 | | | | 52,301 | | | | 4.21 | | | | 1,520,086 | | | | 43,842 | | | | 2.88 | |
| Other long-term debt | | | 633,667 | | | | 49,366 | | | | 7.79 | | | | 673,562 | | | | 43,604 | | | | 6.47 | |
| | | | | | | | | | | | | | | | | | | |
Total borrowings | | | 3,912,722 | | | | 195,989 | | | | 5.01 | | | | 4,449,864 | | | | 166,069 | | | | 3.73 | |
| | | | | | | | | | | | | | | | | | | |
Total interest-bearing liabilities | | | 16,005,003 | | | | 506,188 | | | | 3.16 | | | | 15,749,158 | | | | 354,506 | | | | 2.25 | |
| | | | | | | | | | | | | | | | | | | | | |
| Noninterest-bearing liabilities | | | 139,057 | | | | | | | | | | | | 102,732 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities | | | 16,144,060 | | | | | | | | | | | | 15,851,890 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Preferred stock of subsidiary corporation | | | 9,577 | | | | | | | | | | | | 9,577 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Shareholders’ equity | | | 1,717,830 | | | | | | | | | | | | 1,612,998 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 17,871,467 | | | | | | | | | | | $ | 17,474,465 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | 518,006 | | | | | | | | | | | | 526,130 | | | | | |
Less: tax-equivalent adjustment | | | | | | | (9,456 | ) | | | | | | | | | | | (8,789 | ) | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net interest income | | | | | | $ | 508,550 | | | | | | | | | | | $ | 517,341 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-rate spread | | | | | | | | | | | 3.09 | % | | | | | | | | | | | 3.25 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
Net interest margin | | | | | | | | | | | 3.16 | % | | | | | | | | | | | 3.29 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
See Selected Financial Highlights for footnotes.
| | | | | | | | | | | | | | | | | | | | | |
| | | At or for the Three Months Ended | |
| (Unaudited) | | Dec. 31, | | | Sept. 30, | | | June 30, | | | March 31, | | | Dec. 31, | |
| (Dollars in thousands) | | 2006 | | | 2006 | | | 2006 | | | 2006 | | | 2005 | |
| |
Asset Quality | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Nonperforming loans: | | | | | | | | | | | | | | | | | | | | |
| Commercial: | | | | | | | | | | | | | | | | | | | | |
| Commercial | | $ | 21,105 | | | $ | 29,321 | | | $ | 22,930 | | | $ | 19,719 | | | $ | 26,002 | |
| Equipment financing | | | 2,616 | | | | 2,450 | | | | 2,693 | | | | 2,864 | | | | 3,065 | |
| | | |
| Total commercial | | | 23,721 | | | | 31,771 | | | | 25,623 | | | | 22,583 | | | | 29,067 | |
| | | | | | | | | | | | | | | | | | | | | |
| Commercial real estate | | | 17,618 | | | | 16,811 | | | | 23,291 | | | | 24,012 | | | | 22,678 | |
| Residential | | | 11,307 | | | | 7,032 | | | | 7,218 | | | | 8,891 | | | | 6,979 | |
| Consumer | | | 6,266 | | | | 3,496 | | | | 3,065 | | | | 2,875 | | | | 1,829 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| Total nonperforming loans | | | 58,912 | | | | 59,110 | | | | 59,197 | | | | 58,361 | | | | 60,553 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Other real estate owned and repossessed assets: | | | | | | | | | | | | | | | | | | | | |
| Commercial | | | 1,922 | | | | 1,573 | | | | 2,254 | | | | 1,712 | | | | 5,126 | |
| Residential | | | 383 | | | | 607 | | | | 316 | | | | 456 | | | | 232 | |
| Consumer | | | 608 | | | | 126 | | | | 10 | | | | 361 | | | | 427 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| Total other real estate owned and repossessed assets | | | 2,913 | | | | 2,306 | | | | 2,580 | | | | 2,529 | | | | 5,785 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Total nonperforming assets | | $ | 61,825 | | | $ | 61,416 | | | $ | 61,777 | | | $ | 60,890 | | | $ | 66,338 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| Accruing loans 90 or more days past due | | $ | 1,490 | | | | 4,609 | | | | 2,542 | | | | 1,002 | | | | 6,676 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Allowance for Credit Losses | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 156,331 | | | $ | 156,471 | | | $ | 155,957 | | | $ | 155,632 | | | $ | 155,052 | |
| Provision | | | 3,000 | | | | 3,000 | | | | 3,000 | | | | 2,000 | | | | 2,000 | |
| Allowance for acquired loans | | | 4,724 | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | |
| Charge-offs: | | | | | | | | | | | | | | | | | | | | |
| Commercial | | | 9,352 | | | | 3,369 | | | | 2,775 | | | | 1,629 | | | | 3,272 | |
| Residential | | | 199 | | | | 46 | | | | 65 | | | | 75 | | | | 110 | |
| Consumer | | | 454 | | | | 265 | | | | 239 | | | | 362 | | | | 153 | |
| | | |
| Total charge-offs | | | 10,005 | | | | 3,680 | | | | 3,079 | | | | 2,066 | | | | 3,535 | |
| Recoveries | | | (944 | ) | | | (540 | ) | | | (593 | ) | | | (391 | ) | | | (2,115 | ) |
| | | |
| Net loan charge-offs (recoveries) | | | 9,061 | | | | 3,140 | | | | 2,486 | | | | 1,675 | | | | 1,420 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
Ending balance | | $ | 154,994 | | | $ | 156,331 | | | $ | 156,471 | | | $ | 155,957 | | | $ | 155,632 | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| Components: | | | | | | | | | | | | | | | | | | | | |
| Allowance for loan losses | | $ | 147,719 | | | $ | 147,446 | | | $ | 147,401 | | | $ | 146,383 | | | $ | 146,486 | |
| Reserve for unfunded credit commitments | | | 7,275 | | | | 8,885 | | | | 9,070 | | | | 9,574 | | | | 9,146 | |
| | | | | | | | | | | | | | | | |
| Allowance for credit losses | | $ | 154,994 | | | $ | 156,331 | | | $ | 156,471 | | | $ | 155,957 | | | $ | 155,632 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Asset Quality Ratios: | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Allowance for loan losses / total loans | | | 1.14 | % | | | 1.13 | % | | | 1.16 | % | | | 1.16 | % | | | 1.19 | % |
| Allowance for credit losses / total loans | | | 1.20 | | | | 1.20 | | | | 1.23 | | | | 1.24 | | | | 1.27 | |
| Net charge-offs (recoveries)/ average loans (annualized) | | | 0.27 | | | | 0.10 | | | | 0.08 | | | | 0.05 | | | | 0.05 | |
| Nonperforming loans / total loans | | | 0.46 | | | | 0.45 | | | | 0.47 | | | | 0.46 | | | | 0.49 | |
| Nonperforming assets / total loans plus OREO | | | 0.48 | | | | 0.47 | | | | 0.49 | | | | 0.48 | | | | 0.54 | |
| Allowance for credit losses / nonperforming loans | | | 263.09 | | | | 264.47 | | | | 264.32 | | | | 267.23 | | | | 257.02 | |
See Selected Financial Highlights for footnotes.
