Exhibit 99.1
ALABAMA NATIONAL BANCORPORATION
ANNOUNCES SECOND QUARTER 2006 EARNINGS
FOR IMMEDIATE RELEASE - Birmingham, Alabama (July 19, 2006) -Alabama National
BanCorporation ("ANB") (NASDAQ: ALAB) today announced earnings for the quarter
ended June 30, 2006.
For the 2006 second quarter, ANB reported earnings of $19.3 million, up 19.3%
from the 2005 second quarter. Diluted earnings per share of $1.02 were up 9.3%
from the year ago quarter. Diluted cash earnings per share were $1.06, up 10.7%
from the 2005 second quarter. Total revenue grew to $77.8 million in the 2006
second quarter, up 15.5% from $67.3 million in the year ago second quarter.
ANB's taxable equivalent net interest margin was 3.97% for the 2006 second
quarter, up 4 basis points from the 2005 second quarter and up 1 basis point
from the first quarter of 2006.
"The second quarter continued our focus on the fundamentals of asset quality and
growth," said John H. Holcomb, III, Chairman and CEO. "Credit quality continued
to meet our standards, with minimal net charge-offs and continued low levels of
non-performing assets. Loan growth during the second quarter was surprisingly
strong and exceeded our expectations. The current flat yield curve will continue
to pose challenges for our industry, but I am confident in our employees'
ability to get our fair share of business in any environment."
The 2006 second quarter includes results from Florida Choice Bank, which was
acquired at the beginning of April 2006. Its results are not included in prior
periods. Florida Choice's information systems were converted to the ANB
information technology platform during June 2006.
"I am proud of the successful system conversion for Florida Choice Bank
completed during the second quarter," said Holcomb. "The conversion was the
result of a lot of hard work by a great group of employees. Florida Choice's
ability to continue excellent growth during the quarter while going through the
completion of the merger and system conversion is a testament to the quality of
our employees at this bank. We are also excited about the announcement in May of
ANB's pending acquisition of The Peachtree Bank."
The acquisition of The Peachtree Bank is subject to certain conditions,
including regulatory approvals and approval of the shareholders of the holding
company of The Peachtree Bank.
Year-to-date earnings for the first six months of 2006 were $37.2 million, an
increase of 17.4% over the $31.7 million in earnings reported for the same
period in 2005. Diluted earnings per share for the first six months of 2006 were
$2.04, up 11.9% from the $1.82 earned in the first half of 2005. Six months'
2006 cash earnings per diluted share of $2.12 were up 12.3% over 2005 levels.
Total assets at June 30, 2006 were $6.8 billion. Loans (excluding loans held for
sale) grew to $4.81 billion, with ending deposits growing to $4.86 billion.
Quarter-end share owners' equity was $687 million, or $36.86 per share, and
tangible book value per share was $24.48.
During the 2006 second quarter, ANB recognized $108 thousand in net charge-offs,
or an annualized rate of 0.01% of average loans. Combined with first quarter net
charge-offs, ANB's year-to-date loss of $318 thousand represents a rate of 0.01%
in net losses to average loans and leases. Quarter-end nonperforming assets were
0.13% of period end loans and other real estate. The allowance for loan losses
covered nonperforming loans 1,080%.
ANB is a bank holding company operating 94 banking locations through eleven bank
subsidiaries in Alabama, Florida and Georgia. Alabama subsidiaries include:
First American Bank in north central Alabama; Alabama Exchange Bank in Tuskegee;
and Bank of Dadeville. Florida subsidiaries are: Indian River National Bank in
Vero Beach; First Gulf Bank, N.A. in Escambia County, Florida and Baldwin
County, AL; Florida Choice Bank in central Florida; Community Bank of Naples,
N.A.; Public Bank in metropolitan Orlando; CypressCoquina Bank in Ormond Beach;
and Millennium Bank in Gainesville. ANB has one subsidiary in Georgia, Georgia
State Bank in metropolitan Atlanta. ANB provides full banking services to
individuals and businesses. Commercial Mortgage Services including the
origination of permanent commercial real estate mortgage loans for various
lenders is provided by Byars and Company, a Division of First American Bank.
Brokerage services are provided to customers through First American Bank's
wholly owned subsidiary, NBC Securities, Inc. Investments are not bank
guaranteed, not FDIC insured and may lose value. Insurance services are provided
through ANB Insurance Services, Inc., a wholly owned subsidiary of First
American Bank.
Alabama National BanCorporation common stock is traded on the NASDAQ Global
Select Market under the symbol "ALAB."
CONFERENCE CALL INSTRUCTIONS:
Alabama National will discuss financial results for the second quarter completed
June 30, 2006 as well as its goals and general outlook for the remainder of 2006
in a conference call to be held Thursday, July 20, 2006 at 9:00 a.m. Central
Time. A listen-only simulcast and replay of Alabama National's conference call
will be available on-line at the following Internet links:
www.alabamanational.com, under "In The News,"
or
www.viavid.net,
on July 20, beginning at 9:00 a.m. Central Time. The on-line replay will follow
immediately and continue for 30 days.
For live interactive access to the teleconference, please dial 1-800-967-7187 at
9:00 a.m. Central Time on July 20 enter Conference ID number 9549243. For those
without Internet access, a telephonic replay will be available through August 19
by dialing 1-800-203-1112 and entering Conference ID number 9549243.
Many of the comparisons of financial data from period to period presented in the
narrative of this release have been rounded from actual values reported in the
attached selected unaudited financial tables. The percentage changes presented
above are based on a comparison of the actual values recorded in the attached
tables, not the rounded values.
This press release, including the attached selected unaudited financial tables
which are a part of this release, contains financial information determined by
methods other than in accordance with generally accepted accounting principles
("GAAP"). These "non-GAAP" financial measures are "cash earnings" (cash earnings
per share), "tangible book value" (tangible book value per share), "return on
average tangible equity" and "return on average tangible assets." ANB's
management uses these non-GAAP measures in its analysis of ANB's performance.
Cash earnings is defined as net income plus amortization expense (net of tax)
applicable to intangible assets that do not qualify as regulatory capital. Cash
earnings per basic and diluted share is defined as cash earnings divided by
basic and diluted common shares outstanding. ANB's management includes cash
earnings measures to compare the company's earnings exclusive of non-cash
amortization expense and because it is a measure used by many investors as part
of their analysis of ANB's performance. Tangible book value is defined as total
equity reduced by recorded intangible assets. Tangible book value per share is
defined as tangible book value divided by total common shares outstanding. This
measure is important to many investors in the marketplace that are interested in
changes from period to period in book value per share exclusive of changes in
intangible assets. Goodwill, an intangible asset that is recorded in a purchase
business combination, has the effect of increasing total book value while not
increasing the tangible assets of the company. For companies such as Alabama
National that have engaged in multiple business combinations, purchase
accounting requires the recording of significant amounts of goodwill related to
such transactions. Return on average tangible equity is defined as earnings for
the period (annualized for the quarterly or year-to-date period, as applicable)
divided by average equity reduced by average goodwill and other intangible
assets. Return on average tangible assets is defined as earnings for the period
(annualized for the quarterly or year-to-date period, as applicable) divided by
average assets reduced by average goodwill and other intangible assets. ANB's
management includes these measures because it believes that they are important
when measuring the company's performance exclusive of the effects of goodwill
and other intangibles recorded in recent acquisitions, and these measures are
used by many investors as part of their analysis of ANB. These disclosures
should not be viewed as a substitute for results determined in accordance with
GAAP, nor are they necessarily comparable to non-GAAP performance measures which
may be presented by other companies. Refer to the "Reconciliation Table" in the
attached unaudited financial tables for a more detailed analysis of these
non-GAAP performance measures and the most directly comparable GAAP measures.
This press release contains forward-looking statements as defined by federal
securities laws. Statements contained in this press release which are not
historical facts are forward-looking statements. These statements may address
issues that involve significant risks, uncertainties, estimates and assumptions
made by management. ANB undertakes no obligation to update these statements
following the date of this press release. In addition, ANB, through its senior
management, may make from time to time forward-looking public statements
concerning the matters described herein. Such forward-looking statements are
necessarily estimates reflecting the best judgment of ANB's senior management
based upon current information and involve a number of risks and uncertainties.
Certain factors which could affect the accuracy of such forward-looking
statements are identified in the public filings made by ANB with the Securities
and Exchange Commission, and forward looking statements contained in this press
release or in other public statements of ANB or its senior management should be
considered in light of those factors. There can be no assurance that such
factors or other factors will not affect the accuracy of such forward-looking
statements.
Contacts:
Alabama National BanCorporation
John H. Holcomb III William E. Matthews, V
Chairman of the Board and Executive Vice President and
Chief Executive Officer Chief Financial Officer
(205) 583-3648 (205) 583-3650
ALABAMA NATIONAL BANCORPORATION
(Unaudited Financial Highlights)
(in thousands, except per share amounts and percentages)
Three Months Ended
June 30,
----------------------------- Percentage
2006 2005 Change (b)
------------- ------------- -------------
Net interest income $ 58,943 $ 49,087 20.1%
Noninterest income 18,810 18,229 3.2
Total revenue 77,753 67,316 15.5
Provision for loan and lease losses 1,920 1,991 (3.6)
Noninterest expense 46,275 40,715 13.7
Net income before income taxes 29,558 24,610 20.1
Income taxes 10,241 8,415 21.7
Net income $ 19,317 $ 16,195 19.3
Weighted average common and common
equivalent shares outstanding
Basic 18,806 17,184 9.4%
Diluted 18,984 17,394 9.1
Net income per common share
Basic $ 1.03 $ .94 9.0%
Diluted 1.02 .93 9.3
Cash earnings (a)
Total $ 20,203 $ 16,717 20.9%
Basic 1.07 .97 10.4
Diluted 1.06 .96 10.7
Cash dividends declared on
common stock $ .375 $ .3375
Return on average assets 1.16% 1.17%
Return on average tangible assets 1.20 1.20
Return on average equity 11.33 11.93
Return on average tangible equity 17.06 16.66
Noninterest Income
Service charge income $ 4,011 $ 4,154 (3.4)%
Investment services income 966 858 12.6
Wealth management income 5,364 4,920 9.0
Gain on sale of mortgages 2,661 3,417 (22.1)
Commercial mortgage banking income 284 - NM
Gain on disposal of assets 32 283 (88.7)
Securities losses (516) - NM
Bank owned life insurance 798 745 7.1
Insurance commissions 928 833 11.4
Other 4,282 3,019 41.8
------------- -------------
Total noninterest income $ 18,810 $ 18,229 3.2
============= =============
(a) Cash basis earnings exclude the effect on earnings of amortization expense
applicable to intangible assets that do not qualify as regulatory capital.
(b) Percentage change based on actual not rounded values.
NM - Not meaningful
Six Months Ended
June 30,
----------------------------- Percentage
2006 2005 Change (b)
------------- ------------- -------------
Net interest income $ 111,518 $ 95,992 16.2%
Noninterest income 37,739 35,012 7.8
Total revenue 149,257 131,004 13.9
Provision for loan and lease losses 3,163 3,535 (10.5)
Noninterest expense 89,248 79,376 12.4
Income before taxes and cumulative effect
of accounting change 56,846 48,093 18.2
Income taxes 19,704 16,418 20.0
Net income before cumulative effect of accounting change 37,142 31,675 17.3
Cumulative effect of accounting change (net of tax) 48 - NM
Net income 37,190 $ 31,675 17.4
Weighted average common and common
equivalent shares outstanding
Basic 18,074 17,178 5.2%
Diluted 18,252 17,391 5.0
Net income per common share
Basic $ 2.06 $ 1.84 11.6%
Diluted 2.04 1.82 11.9
Cash earnings (a)
Total $ 38,616 $ 32,756 17.9%
Basic 2.14 1.91 12.0
Diluted 2.12 1.88 12.3
Cash dividends declared on
common stock $ .75 $ .675
Return on average assets 1.19% 1.17%
Return on average tangible assets 1.22 1.20
Return on average equity 11.88 11.83
Return on average tangible equity 17.13 16.59
Noninterest Income
Service charge income $ 7,711 $ 8,084 (4.6)%
Investment services income 1,830 2,003 (8.6)
Wealth management income 10,731 9,441 13.7
Gain on sale of mortgages 5,272 6,087 (13.4)
Commercial mortgage banking income 1,016 - NM
Gain on disposal of assets 539 711 (24.2)
Securities (losses) gains (1,250) 72 NM
Bank owned life insurance 1,540 1,399 10.1
Insurance commissions 1,910 1,628 17.3
Other 8,440 5,587 51.1
------------- -------------
Total noninterest income $ 37,739 $ 35,012 7.8
============= =============
(a) Cash basis earnings exclude the effect on earnings of amortization expense
applicable to intangible assets that do not qualify as regulatory capital.
(b) Percentage change based on actual not rounded values.
NM - Not meaningful
June 30, December 31, Percentage
2006 2005 Change
------------- ------------- -------------
Total assets $ 6,794,456 $ 5,931,673 14.5%
Earning assets 6,116,523 5,385,824 13.6
Securities (a) 1,172,586 1,136,487 3.2
Loans held for sale 17,517 14,940 17.2
Loans and leases, net of unearned income 4,812,387 4,144,095 16.1
Allowance for loan and lease losses 60,739 52,815 15.0
Deposits 4,855,970 4,343,264 11.8
Short-term borrowings 87,800 34,700 153.0
Long-term debt 445,576 369,246 20.7
Stockholders' equity 687,091 571,879 20.1
(a) Excludes trading securities
ASSET QUALITY ANALYSIS
(in thousands, except percentages)
As of / For the Three Months Ended
---------------------------------------------
June 30, March 31, June 30,
2006 2006 2005
------------- ------------- -------------
Nonaccrual loans $ 5,625 $ 3,524 $ 6,949
Restructured loans - - -
Loans past due 90 days or more and
still accruing -0- -0- -0-
Total nonperforming loans 5,625 3,524 6,949
Other real estate owned 401 487 450
Total nonperforming assets 6,026 4,011 7,399
Total non performing assets as a
percentage of period-end loans
and other real estate (a) 0.13% 0.09% 0.19%
Allowance for loan and lease losses 60,739 53,848 49,687
Provision for loan and lease losses 1,920 1,243 1,991
Loans charged off 513 505 529
Loan recoveries 405 295 349
Net loan and lease losses 108 210 180
Allowance for loan and lease losses as a
percentage of period-end loans and leases (a) 1.26% 1.27% 1.29%
Allowance for loan and lease losses as a
percentage of period-end
nonperforming loans 1,079.80 1,528.04 714.30
Net losses to average loans and leases (annualized) 0.01 0.02 0.02
For the Six Months Ended
June 30,
----------------------------- Percentage
2006 2005 Change (b)
------------- ------------- -------------
Provision for loan and lease losses $ 3,163 $ 3,535 (10.5)%
Loans charged off 1,018 1,018 -
Loan recoveries 700 536 30.6
Net loan and lease losses 318 482 (34.0)
Net losses to average loans and leases (annualized) 0.01% 0.03%
(a) Excludes loans held for sale
TAXABLE EQUIVALENT YIELDS/RATES
Three Months Ended
---------------------------------------------
June 30, March 31, June 30,
2006 2006 2005
------------- ------------- -------------
Interest income:
Interest and fees on loans 7.75% 7.42% 6.48%
Interest on securities:
Taxable 4.45 4.38 4.17
Non-taxable 6.41 6.55 6.54
Total interest earning assets 7.10 6.78 5.91
Interest expense:
Interest on deposits 3.38% 3.02% 2.11%
Interest on short-term borrowing 4.63 4.77 3.53
Interest on long-term debt 5.00 4.71 4.12
Total interest bearing liabilities 3.67 3.30 2.36
Net interest spread 3.43 3.48 3.55
Net interest margin 3.97 3.96 3.93
Six Months Ended
June 30,
-----------------------------
2006 2005
------------- -------------
Interest income:
Interest and fees on loans 7.60% 6.36%
Interest on securities:
Taxable 4.41 4.17
Non-taxable 6.47 6.39
Total interest earning assets 6.95 5.80
Interest expense:
Interest on deposits 3.21% 1.98%
Interest on short-term borrowing 4.68 3.54
Interest on long-term debt 4.86 3.86
Total interest bearing liabilities 3.49 2.22
Net interest spread 3.46 3.58
Net interest margin 3.97 3.93
STOCKHOLDERS' EQUITY AND CAPITAL RATIOS
June 30, December 31,
2006 2005
------------- -------------
Stockholders' Equity:
Equity to assets 10.11% 9.64%
Leverage ratio 8.09 8.29
Book value per common share (a) $ 36.86 $ 33.40
Tangible book value per common share (a)(b) 24.48 24.20
Ending shares outstanding 18,641 17,124
(a) Includes a cumulative mark to market adjustment to equity of $(0.71) and
$(0.52) per share at June 30, 2006 and December 31, 2005, respectively.
(b) Total equity reduced by intangible assets divided by common shares
outstanding.
RECONCILIATION TABLE
(in thousands, except per share amounts and percentages)
Three Months Ended Six Months Ended
June 30, June 30,
----------------------------- -----------------------------
2006 2005 2006 2005
------------- ------------- ------------- -------------
Net income $ 19,317 $ 16,195 $ 37,190 $ 31,675
Amortization of intangibles, net of tax 886 522 1,426 1,081
Cash earnings $ 20,203 $ 16,717 $ 38,616 $ 32,756
Net income per common share - basic $ 1.03 $ 0.94 $ 2.06 $ 1.84
Effect of amortization of intangibles per share 0.04 0.03 0.08 0.07
Cash earnings per common share - basic $ 1.07 $ 0.97 $ 2.14 $ 1.91
Net income per common share - diluted $ 1.02 $ 0.93 $ 2.04 $ 1.82
Effect of amortization of intangibles per share 0.04 0.03 0.08 0.06
Cash earnings per diluted share $ 1.06 $ 0.96 $ 2.12 $ 1.88
Average assets $ 6,678,659 $ 5,569,778 $ 6,326,862 $ 5,468,305
Average intangible assets (229,375) (154,708) (193,489) (155,058)
Average tangible assets $ 6,449,284 $ 5,415,070 $ 6,133,373 $ 5,313,247
Return on average assets 1.16% 1.17% 1.19% 1.17%
Effect of average intangible assets 0.04 0.03 0.03 0.03
Return on average tangible assets 1.20% 1.20% 1.22% 1.20%
Average equity $ 683,649 $ 544,665 $ 631,380 $ 540,026
Average intangible assets (229,375) (154,708) (193,489) (155,058)
Average tangible equity $ 454,274 $ 389,957 $ 437,891 $ 384,968
Return on average equity 11.33% 11.93% 11.88% 11.83%
Effect of average intangible assets 5.73 4.73 5.25 4.76
Return on average tangible equity 17.06% 16.66% 17.13% 16.59%
As of
-----------------------------
June 30, December 31,
2006 2005
------------- -------------
Book value $ 687,091 $ 571,879
Intangible assets (230,675) (157,429)
Tangible book value $ 456,416 $ 414,450
Book value per common share $ 36.86 $ 33.40
Effect of intangible assets per share (12.38) (9.20)
Tangible book value per common share $ 24.48 $ 24.20
ALABAMA NATIONAL BANCORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited)
(In thousands, except share amounts)
June 30, December 31,
2006 2005
------------ ------------
ASSETS
Cash and due from banks ....................................................... $ 210,442 $ 189,256
Interest-bearing deposits in other banks ...................................... 22,616 19,428
Federal funds sold and securities purchased under resell agreements ........... 90,430 70,472
Trading securities, at fair value ............................................. 987 402
Investment securities (fair values of $624,923 and $576,424) .................. 651,789 591,153
Securities available for sale, at fair value .................................. 520,797 545,334
Loans held for sale ........................................................... 17,517 14,940
Loans and leases .............................................................. 4,817,025 4,147,739
Unearned income ............................................................... (4,638) (3,644)
------------ ------------
Loans and leases, net of unearned income ...................................... 4,812,387 4,144,095
Allowance for loan and lease losses ........................................... (60,739) (52,815)
------------ ------------
Net loans and leases .......................................................... 4,751,648 4,091,280
Property, equipment and leasehold improvements, net ........................... 134,498 114,159
Goodwill ...................................................................... 214,151 148,071
Other intangible assets, net .................................................. 16,524 9,358
Cash surrender value of life insurance ........................................ 80,162 74,593
Receivable from investment division customers ................................. 14,751 7,166
Other assets .................................................................. 68,144 56,061
------------ ------------
Totals ........................................................................ $ 6,794,456 $ 5,931,673
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Noninterest bearing ......................................................... $ 795,701 $ 729,045
Interest bearing ............................................................ 4,060,269 3,614,219
------------ ------------
Total deposits ................................................................ 4,855,970 4,343,264
Federal funds purchased and securities sold under repurchase agreements ....... 651,519 545,337
Accrued expenses and other liabilities ........................................ 51,749 61,361
Payable for securities purchased for investment division customers ............ 14,751 5,886
Short-term borrowings ......................................................... 87,800 34,700
Long-term debt ................................................................ 445,576 369,246
------------ ------------
Total liabilities ............................................................. 6,107,365 5,359,794
Common stock, $1 par; 50,000,000 shares authorized; 18,640,742
and 17,124,316 shares issued at June 30, 2006 and
December 31, 2005, respectively .............................................. 18,641 17,124
Additional paid-in capital .................................................... 442,046 347,434
Retained earnings ............................................................. 239,655 216,144
Accumulated other comprehensive loss, net of tax .............................. (13,251) (8,823)
------------ ------------
Total stockholders' equity .................................................... 687,091 571,879
------------ ------------
Totals ........................................................................ $ 6,794,456 $ 5,931,673
============ ============
ALABAMA NATIONAL BANCORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(In thousands, except per share data)
For the three months For the six months
ended June 30, ended June 30,
------------------------- -------------------------
2006 2005 2006 2005
----------- ----------- ----------- -----------
INTEREST INCOME:
Interest and fees on loans and leases ......................... $ 91,857 $ 61,054 $ 169,095 $ 116,220
Interest on securities ........................................ 12,924 12,224 25,054 24,326
Interest on deposits in other banks ........................... 146 77 225 125
Interest on trading securities ................................ 8 5 19 9
Interest on federal funds sold and securities purchased
under resell agreements ...................................... 993 713 1,725 1,237
----------- ----------- ----------- -----------
Total interest income ........................................... 105,928 74,073 196,118 141,917
INTEREST EXPENSE:
Interest on deposits .......................................... 33,943 17,537 61,040 32,395
Interest on federal funds purchased and securities sold
under repurchase agreements .................................. 7,255 3,261 13,065 5,629
Interest on short-term borrowings ............................. 724 870 1,121 1,276
Interest on long-term debt .................................... 5,063 3,318 9,374 6,625
................................................................ ----------- ----------- ----------- -----------
Total interest expense .......................................... 46,985 24,986 84,600 45,925
................................................................ ----------- ----------- ----------- -----------
Net interest income ............................................. 58,943 49,087 111,518 95,992
Provision for loan and lease losses ............................. 1,920 1,991 3,163 3,535
----------- ----------- ----------- -----------
Net interest income after provision for loan and lease losses ... 57,023 47,096 108,355 92,457
NONINTEREST INCOME:
Securities (losses) gains ..................................... (516) - (1,250) 72
Gain on disposition of assets ................................. 32 283 539 711
Service charges on deposit accounts ........................... 4,011 4,154 7,711 8,084
Investment services income .................................... 966 858 1,830 2,003
Wealth management income ...................................... 5,364 4,920 10,731 9,441
Gain on sale of mortgages ..................................... 2,661 3,417 5,272 6,087
Commercial mortgage banking income ............................ 284 - 1,016 -
Bank owned life insurance ..................................... 798 745 1,540 1,399
Insurance commissions ......................................... 928 833 1,910 1,628
Other ......................................................... 4,282 3,019 8,440 5,587
----------- ----------- ----------- -----------
Total noninterest income ........................................ 18,810 18,229 37,739 35,012
NONINTEREST EXPENSE:
Salaries and employee benefits ................................ 23,478 20,953 46,776 41,406
Commission based compensation ................................. 4,423 4,011 8,557 7,505
Occupancy and equipment expenses .............................. 5,133 4,342 9,890 8,481
Amortization of intangibles ................................... 1,320 769 2,116 1,594
Other ......................................................... 11,921 10,640 21,909 20,390
----------- ----------- ----------- -----------
Total noninterest expense ....................................... 46,275 40,715 89,248 79,376
----------- ----------- ----------- -----------
Income before provision for income taxes and cumulative effect
of accounting change ........................................... 29,558 24,610 56,846 48,093
Provision for income taxes ...................................... 10,241 8,415 19,704 16,418
----------- ----------- ----------- -----------
Net income before cumulative effect of accounting change ........ 19,317 16,195 37,142 31,675
Cumulative effect of accounting change (net of tax) ............. - - 48 -
----------- ----------- ----------- -----------
Net income ...................................................... $ 19,317 $ 16,195 $ 37,190 $ 31,675
=========== =========== =========== ===========
Weighted average common shares outstanding:
Basic ......................................................... 18,806 17,184 18,074 17,178
=========== =========== =========== ===========
Diluted ....................................................... 18,984 17,394 18,252 17,391
=========== =========== =========== ===========
Earnings per common share before cumulative effect of
accounting change:
Basic ......................................................... $ 1.03 $ 0.94 $ 2.05 $ 1.84
=========== =========== =========== ===========
Diluted ....................................................... $ 1.02 $ 0.93 $ 2.03 $ 1.82
=========== =========== =========== ===========
Earnings per common share:
Basic ......................................................... $ 1.03 $ 0.94 $ 2.06 $ 1.84
=========== =========== =========== ===========
Diluted ....................................................... $ 1.02 $ 0.93 $ 2.04 $ 1.82
=========== =========== =========== ===========
AVERAGE BALANCES, INCOME AND EXPENSES AND RATES
(Amounts in thousands, except yields and rates)
Three Months 06/30/06 Three Months 06/30/05
------------------------------------ ------------------------------------
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Cost Balance Expense Cost
----------- ----------- -------- ----------- ----------- --------
ASSETS:
Earning assets:
Loans and leases (1) ........................... $ 4,758,596 $ 91,978 7.75% $ 3,787,893 $ 61,184 6.48%
Securities:
Taxable ...................................... 1,089,534 12,087 4.45 1,119,105 11,639 4.17
Tax exempt ................................... 79,355 1,268 6.41 54,335 886 6.54
Cash balances in other banks ................... 12,555 146 4.66 9,836 77 3.14
Funds sold ..................................... 73,930 993 5.39 82,579 713 3.46
Trading account securities ..................... 814 8 3.94 379 5 5.29
----------- ----------- ----------- -----------
Total earning assets (2) ................... 6,014,784 106,480 7.10 5,054,127 74,504 5.91
----------- ----------- ----------- -----------
Cash and due from banks .......................... 189,785 169,650
Premises and equipment ........................... 131,942 108,542
Other assets ..................................... 402,259 285,830
Allowance for loan and lease losses .............. (60,111) (48,371)
----------- -----------
Total assets ............................... $ 6,678,659 $ 5,569,778
=========== ===========
LIABILITIES:
Interest-bearing liabilities:
Interest-bearing transaction accounts .......... $ 1,145,632 $ 7,651 2.68% $ 915,333 $ 3,247 1.42%
Savings deposits ............................... 936,041 6,061 2.60 896,612 3,167 1.42
Time deposits .................................. 1,950,926 20,231 4.16 1,527,293 11,123 2.92
Funds purchased ................................ 634,029 7,255 4.59 483,536 3,261 2.71
Other short-term borrowings .................... 62,783 724 4.63 98,924 870 3.53
Long-term debt ................................. 406,217 5,063 5.00 323,410 3,318 4.12
----------- ----------- ----------- -----------
Total interest-bearing liabilities ......... 5,135,628 46,985 3.67 4,245,108 24,986 2.36
----------- ----------- ----------- -----------
Demand deposits .................................. 773,744 720,769
Accrued interest and other liabilities ........... 85,638 59,236
Stockholders' equity ............................. 683,649 544,665
----------- -----------
Total liabilities and stockholders' equity . $ 6,678,659 $ 5,569,778
=========== ===========
Net interest spread .............................. 3.43% 3.55%
======== ========
Net interest income/margin on
a taxable equivalent basis ..................... 59,495 3.97% 49,518 3.93%
======== ========
Tax equivalent adjustment (2) .................... 552 431
----------- -----------
Net interest income/margin ....................... $ 58,943 3.93% $ 49,087 3.90%
=========== ======== =========== ========
(1) Average loans include nonaccrual loans. All loans and deposits are
domestic.
(2) Tax equivalent adjustments are based on the assumed rate of 34%, and do not
give effect to the disallowance for Federal income tax purposes of interest
expense related to certain tax-exempt assets.
AVERAGE BALANCES, INCOME AND EXPENSES AND RATES
(Amounts in thousands, except yields and rates)
Six Months 06/30/06 Six Months 06/30/05
------------------------------------ ------------------------------------
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Cost Balance Expense Cost
----------- ----------- -------- ----------- ----------- --------
ASSETS:
Earning assets:
Loans and leases (1) ........................... $ 4,493,694 $ 169,344 7.60% $ 3,690,992 $ 116,481 6.36%
Securities:
Taxable ...................................... 1,079,285 23,627 4.41 1,120,771 23,180 4.17
Tax exempt ................................... 67,408 2,162 6.47 54,782 1,736 6.39
Cash balances in other banks ................... 10,137 225 4.48 9,629 125 2.62
Funds sold ..................................... 69,894 1,725 4.98 87,703 1,237 2.84
Trading account securities ..................... 904 19 4.24 345 9 5.26
----------- ----------- ----------- -----------
Total earning assets (2) ................... 5,721,322 197,102 6.95 4,964,222 142,768 5.80
----------- ----------- ----------- -----------
Cash and due from banks .......................... 185,844 166,102
Premises and equipment ........................... 123,415 104,582
Other assets ..................................... 353,164 281,246
Allowance for loan and lease losses .............. (56,883) (47,847)
----------- ----------
Total assets ............................... $ 6,326,862 $ 5,468,305
=========== ===========
LIABILITIES:
Interest-bearing liabilities:
Interest-bearing transaction accounts .......... $ 1,087,705 $ 13,445 2.49% $ 895,591 $ 5,791 1.30%
Savings deposits ............................... 917,604 11,174 2.46 893,916 5,805 1.31
Time deposits .................................. 1,833,611 36,421 4.01 1,512,993 20,799 2.77
Funds purchased ................................ 608,120 13,065 4.33 454,708 5,629 2.50
Other short-term borrowings .................... 48,349 1,121 4.68 72,671 1,276 3.54
Long-term debt ................................. 388,676 9,374 4.86 346,208 6,625 3.86
----------- ----------- ----------- -----------
Total interest-bearing liabilities ......... 4,884,065 84,600 3.49 4,176,087 45,925 2.22
----------- ----------- ----------- -----------
Demand deposits .................................. 730,340 697,697
Accrued interest and other liabilities ........... 81,077 54,495
Stockholders' equity ............................. 631,380 540,026
----------- -----------
Total liabilities and stockholders' equity . $ 6,326,862 $ 5,468,305
=========== ===========
Net interest spread .............................. 3.46% 3.58%
======== ========
Net interest income/margin on
a taxable equivalent basis ...................... 112,502 3.97% 96,843 3.93%
======== ========
Tax equivalent adjustment (2) .................... 984 851
----------- -----------
Net interest income/margin ....................... $ 111,518 3.93% $ 95,992 3.90%
=========== ======== =========== ========
(1) Average loans include nonaccrual loans. All loans and deposits are
domestic.
(2) Tax equivalent adjustments are based on the assumed rate of 34%, and do not
give effect to the disallowance for Federal income tax purposes of interest
expense related to certain tax-exempt assets.