MB Financial, Inc. | ||||
800 West Madison Street | ||||
Chicago, Illinois 60607 | ||||
(888) 422-6562 | ||||
NASDAQ: MBFI |
3Q13 | 2Q13 | Change from 2Q13 to 3Q13 | 3Q12 | Change from 3Q12 to 3Q13 | ||||||||||||||
(dollars in thousands, except per share data) | ||||||||||||||||||
Net income | $ | 24,400 | $ | 25,293 | -3.5 | % | $ | 23,133 | +5.5 | % | ||||||||
Fully diluted earnings per share | 0.44 | 0.46 | -4.3 | 0.42 | +4.8 |
Nine Months Ended | Change | ||||||||||
September 30, | from 2012 | ||||||||||
2013 | 2012 | to 2013 | |||||||||
(dollars in thousands, except per share data) | |||||||||||
Net income | $ | 74,599 | $ | 66,362 | +12.4 | % | |||||
Net income available to common stockholders | 74,599 | 63,093 | +18.2 | ||||||||
Fully diluted earnings per share | 1.36 | 1.16 | +17.2 |
3Q13 | 2Q13 | Change from 2Q13 to 3Q13 | 3Q12 | Change from 3Q12 to 3Q13 | ||||||||||||||
Core non-interest income: | ||||||||||||||||||
Key fee initiatives: | ||||||||||||||||||
Capital markets and international banking service fees | $ | 972 | $ | 939 | +4 | % | $ | 1,400 | -31 | % | ||||||||
Commercial deposit and treasury management fees | 6,327 | 6,029 | +5 | % | 5,860 | +8 | % | |||||||||||
Lease financing, net | 14,070 | 15,102 | -7 | % | 9,671 | +45 | % | |||||||||||
Trust and asset management fees | 4,799 | 4,874 | -2 | % | 4,428 | +8 | % | |||||||||||
Card fees | 2,745 | 2,735 | — | % | 2,388 | +15 | % | |||||||||||
Total key fee initiatives | 28,913 | 29,679 | -3 | % | 23,747 | +22 | % | |||||||||||
Other non-interest income | 8,334 | 9,225 | -10 | % | 8,120 | +3 | % | |||||||||||
Total core non-interest income | 37,247 | 38,904 | -4 | % | 31,867 | +17 | % | |||||||||||
Total non-core non-interest income | (331 | ) | 2,050 | -116 | % | (3,314 | ) | -90 | % | |||||||||
Total non-interest income | $ | 36,916 | $ | 40,954 | -10 | % | $ | 28,553 | +29 | % |
• | Revenues from key fee initiatives decreased 3% compared to the second quarter of 2013, as leasing revenues can vary from quarter-to-quarter, and declined from high levels in the first half of 2013. Excluding leasing, revenues from key fee initiatives increased approximately 2% from the prior quarter. |
• | Revenues from key fee initiatives increased 22% compared to the third quarter of 2012, primarily as a result of an increase in leasing revenues. This increase was driven by the addition of Celtic Leasing Corp. ("Celtic"), a leasing subsidiary we acquired in December 2012, which contributed $6 million in leasing revenues during the third quarter of 2013. In addition, there was meaningful growth in commercial deposit and treasury management fees, trust and asset management fees and card fees from the third quarter of 2012. |
• | Core non-interest income to total revenues ratio was 33.5% in the third quarter compared to 35.0% in the prior quarter and 29.5% in the third quarter of 2012. |
• | Fully taxable equivalent net interest margin was 3.66% for the third quarter of 2013 compared to 3.61% for the prior quarter and 3.67% for the third quarter of 2012. The increase from the second quarter of 2013 was primarily due to an increase in the yield on loans and taxable investment securities, and a reduction in cost of funds. |
• | Net interest income increased compared to the prior quarter as a result of an extra day in the quarter and a higher net interest margin. Compared to the third quarter of 2012, net interest income declined due to lower average interest earning asset balances, primarily as a result of a decrease in covered loans. |
3Q13 | 2Q13 | Change from 2Q13 to 3Q13 | 3Q12 | Change from 3Q12 to 3Q13 | ||||||||||||||
Non-performing loans | $ | 102,452 | $ | 115,248 | -11.10 | % | $ | 105,283 | -2.69 | % | ||||||||
Potential problem loans (1) | 96,405 | 131,746 | -26.83 | % | 134,289 | -28.21 | % | |||||||||||
Non-performing loans to total loans | 1.83 | % | 2.03 | % | -0.20 | % | 1.87 | % | -0.04 | % | ||||||||
Non-performing assets to total assets | 1.45 | 1.59 | -0.14 | 1.56 | -0.11 | |||||||||||||
Net loan charge-offs (recoveries) to average loans - annualized | 0.18 | (0.02 | ) | +0.20 | (0.64 | ) | +0.82 | |||||||||||
Credit costs: | ||||||||||||||||||
Provision for credit losses | $ | (3,304 | ) | $ | 500 | $ | (13,000 | ) | ||||||||||
Net loss (gain) recognized on other real estate owned | 791 | (2,015 | ) | 3,938 | ||||||||||||||
Net credit costs | $ | (2,513 | ) | $ | (1,515 | ) | $ | (9,062 | ) | |||||||||
3Q13 | 2Q13 | Change from 2Q13 to 3Q13 | 3Q12 | Change from 3Q12 to 3Q13 | |||||||||||
Annualized return on average assets | 1.05 | % | 1.09 | % | -0.04 | % | 0.97 | % | +0.08 | % | |||||
Annualized return on average common equity | 7.46 | 7.82 | -0.36 | 7.38 | +0.08 | ||||||||||
Annualized cash return on average tangible common equity | 11.74 | 12.31 | -0.57 | 11.29 | +0.45 |
Nine Months Ended | Change | ||||||||
September 30, | from 2012 | ||||||||
2013 | 2012 | to 2013 | |||||||
Annualized return on average assets | 1.07 | % | 0.93 | % | +0.14 | % | |||
Annualized return on average common equity | 7.72 | 6.87 | +0.85 | ||||||
Annualized cash return on average tangible common equity | 12.19 | 10.66 | +1.53 |
• | Regulatory applications have been filed with the Federal Reserve and OCC. |
• | Form S-4 registration statement has been filed with the SEC. |
• | Transition and integration planning is progressing as expected. |
• | Merger related costs of approximately $1.8 million were included in the third quarter statement of income primarily related to fairness opinion, legal and consulting expenses. |
• | On August 28, 2013, our Board of Directors approved a quarterly cash dividend of $0.12 per share, an increase from $0.10 per share paid in recent prior quarters. |
Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||||||
3Q13 | 2Q13 | 1Q13 | 4Q12 | 3Q12 | 2013 | 2012 | ||||||||||||||||||||||
Core non-interest income: | ||||||||||||||||||||||||||||
Key fee initiatives: | ||||||||||||||||||||||||||||
Capital markets and international banking service fees | $ | 972 | $ | 939 | $ | 808 | $ | 2,386 | $ | 1,400 | $ | 2,719 | $ | 2,700 | ||||||||||||||
Commercial deposit and treasury management fees | 6,327 | 6,029 | 5,966 | 6,095 | 5,860 | 18,322 | 17,541 | |||||||||||||||||||||
Lease financing, net | 14,070 | 15,102 | 16,263 | 12,419 | 9,671 | 45,435 | 23,963 | |||||||||||||||||||||
Trust and asset management fees | 4,799 | 4,874 | 4,494 | 4,623 | 4,428 | 14,167 | 13,367 | |||||||||||||||||||||
Card fees | 2,745 | 2,735 | 2,695 | 2,505 | 2,388 | 8,175 | 6,863 | |||||||||||||||||||||
Total key fee initiatives | 28,913 | 29,679 | 30,226 | 28,028 | 23,747 | 88,818 | 64,434 | |||||||||||||||||||||
Loan service fees | 1,427 | 1,911 | 1,011 | 2,436 | 1,075 | 4,349 | 3,409 | |||||||||||||||||||||
Consumer and other deposit service fees | 3,648 | 3,593 | 3,246 | 3,655 | 3,786 | 10,487 | 10,773 | |||||||||||||||||||||
Brokerage fees | 1,289 | 1,234 | 1,157 | 1,088 | 1,185 | 3,680 | 3,704 | |||||||||||||||||||||
Increase in cash surrender value of life insurance | 851 | 842 | 844 | 893 | 890 | 2,537 | 2,677 | |||||||||||||||||||||
Accretion of FDIC indemnification asset | 64 | 100 | 143 | 154 | 204 | 307 | 901 | |||||||||||||||||||||
Net gain on sale of loans | 177 | 506 | 639 | 822 | 575 | 1,322 | 1,503 | |||||||||||||||||||||
Other operating income | 878 | 1,039 | 955 | 1,325 | 405 | 2,872 | 2,967 | |||||||||||||||||||||
Total core non-interest income | 37,247 | 38,904 | 38,221 | 38,401 | 31,867 | 114,372 | 90,368 | |||||||||||||||||||||
Non-core non-interest income: (1) | ||||||||||||||||||||||||||||
Net gain (loss) on investment securities | 1 | 14 | (1 | ) | 311 | 281 | 14 | 244 | ||||||||||||||||||||
Net loss on sale of other assets | — | — | — | (905 | ) | (12 | ) | — | (37 | ) | ||||||||||||||||||
Net gain (loss) recognized on other real estate owned (A) | (754 | ) | 2,130 | (319 | ) | (1,848 | ) | (4,151 | ) | 1,057 | (12,655 | ) | ||||||||||||||||
Net (loss) gain recognized on other real estate owned related to FDIC transactions (A) | (37 | ) | (115 | ) | (11 | ) | 222 | 213 | (163 | ) | (3,313 | ) | ||||||||||||||||
Increase in market value of assets held in trust for deferred compensation (B) | 459 | 21 | 483 | 104 | 355 | 963 | 707 | |||||||||||||||||||||
Total non-core non-interest income | (331 | ) | 2,050 | 152 | (2,116 | ) | (3,314 | ) | 1,871 | (15,054 | ) | |||||||||||||||||
Total non-interest income | $ | 36,916 | $ | 40,954 | $ | 38,373 | $ | 36,285 | $ | 28,553 | $ | 116,243 | $ | 75,314 |
(1) | Letter denotes the corresponding line item where this non-core non-interest income item resides in the consolidated statements of income as follows: A – Net loss recognized on other real estate owned, B – Other operating income. |
• | Net lease financing revenue decreased during the third quarter primarily due to a decrease in fees related to equipment maintenance contracts. As noted in prior quarters, remarketing gains and fees from the sale of equipment maintenance contracts can fluctuate from quarter to quarter. |
• | Net lease financing income increased as a result of increased remarketing gains and fees from the sale of equipment maintenance contracts as well as the impact of leasing revenues attributable to Celtic (approximately $19 million). |
• | Card fee income increased due to fees earned on prepaid, debit and credit cards. |
Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||||||
3Q13 | 2Q13 | 1Q13 | 4Q12 | 3Q12 | 2013 | 2012 | ||||||||||||||||||||||
Core non-interest expense: | ||||||||||||||||||||||||||||
Salaries and employee benefits | $ | 44,459 | $ | 43,888 | $ | 43,031 | $ | 42,934 | $ | 41,728 | $ | 131,378 | $ | 121,951 | ||||||||||||||
Occupancy and equipment expense | 8,797 | 9,408 | 9,404 | 8,774 | 8,274 | 27,609 | 27,032 | |||||||||||||||||||||
Computer services and telecommunication expense | 4,870 | 4,617 | 3,887 | 4,160 | 3,777 | 13,374 | 11,339 | |||||||||||||||||||||
Advertising and marketing expense | 1,917 | 2,167 | 2,103 | 2,335 | 1,936 | 6,187 | 5,848 | |||||||||||||||||||||
Professional and legal expense | 1,408 | 1,353 | 1,295 | 1,640 | 1,554 | 4,056 | 4,470 | |||||||||||||||||||||
Other intangible amortization expense | 1,513 | 1,538 | 1,544 | 1,251 | 1,251 | 4,595 | 3,759 | |||||||||||||||||||||
Other real estate expense, net | 240 | 193 | 139 | 449 | 874 | 572 | 2,541 | |||||||||||||||||||||
Other operating expenses | 10,052 | 9,083 | 9,213 | 8,027 | 7,976 | 28,348 | 24,243 | |||||||||||||||||||||
Total core non-interest expense | 73,256 | 72,247 | 70,616 | 69,570 | 67,370 | 216,119 | 201,183 | |||||||||||||||||||||
Non-core non-interest expense: (1) | ||||||||||||||||||||||||||||
Merger related expenses (A) | 1,759 | — | — | — | — | 1,759 | — | |||||||||||||||||||||
Branch impairment charges | — | — | — | 1,432 | 758 | — | 758 | |||||||||||||||||||||
Prepayment fees on interest bearing liabilities | — | — | — | — | 12,682 | — | 12,682 | |||||||||||||||||||||
Increase in market value of assets held in trust for deferred compensation (B) | 459 | 21 | 483 | 104 | 355 | 963 | 707 | |||||||||||||||||||||
Total non-core non-interest expense | 2,218 | 21 | 483 | 1,536 | 13,795 | 2,722 | 14,147 | |||||||||||||||||||||
Total non-interest expense | $ | 75,474 | $ | 72,268 | $ | 71,099 | $ | 71,106 | $ | 81,165 | $ | 218,841 | $ | 215,330 |
(1) | Letters denote the corresponding line items where these non-core non-interest expense items reside in the consolidated statements of income as follows: A – Professional and legal and other operating expenses, B – Salaries and employee benefits. |
• | Salaries and employee benefits increased due to one additional day in the third quarter. |
• | Occupancy and equipment expense decreased due to lower real estate taxes. |
• | Salaries and employee benefits increased due to annual salary increases and the impact of Celtic. |
• | Other operating expenses were higher as a result of an increase in the clawback liability related to our loss share agreements with the FDIC recorded during the first nine months of 2013. |
• | Computer services and telecommunication expenses increased due primarily to an increase in spending on storage, security and investment in our key fee initiatives. |
• | Other real estate expense decreased due to fewer OREO properties in 2013. |
• | Other intangible amortization expense increased due to the impact of Celtic. |
9/30/2013 | 6/30/2013 | 3/31/2013 | 12/31/2012 | 9/30/2012 | |||||||||||||||||||||||||||||||
Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||||||
Commercial related credits: | |||||||||||||||||||||||||||||||||||
Commercial loans | $ | 1,169,009 | 21 | % | $ | 1,198,862 | 21 | % | $ | 1,207,638 | 21 | % | $ | 1,220,472 | 21 | % | $ | 1,073,981 | 19 | % | |||||||||||||||
Commercial loans collateralized by assignment of lease payments (lease loans) | 1,468,814 | 26 | % | 1,422,901 | 25 | % | 1,347,666 | 24 | % | 1,303,020 | 23 | % | 1,219,361 | 22 | % | ||||||||||||||||||||
Commercial real estate | 1,638,368 | 29 | % | 1,710,964 | 30 | % | 1,743,329 | 30 | % | 1,761,832 | 30 | % | 1,770,261 | 31 | % | ||||||||||||||||||||
Construction real estate | 136,146 | 2 | % | 121,420 | 2 | % | 101,581 | 2 | % | 110,261 | 2 | % | 149,872 | 3 | % | ||||||||||||||||||||
Total commercial related credits | 4,412,337 | 78 | % | 4,454,147 | 79 | % | 4,400,214 | 77 | % | 4,395,585 | 76 | % | 4,213,475 | 75 | % | ||||||||||||||||||||
Other loans: | |||||||||||||||||||||||||||||||||||
Residential real estate | 311,256 | 6 | % | 305,710 | 5 | % | 312,804 | 5 | % | 314,359 | 5 | % | 308,866 | 5 | % | ||||||||||||||||||||
Indirect vehicle | 257,740 | 5 | % | 242,964 | 4 | % | 220,739 | 4 | % | 208,633 | 4 | % | 206,973 | 3 | % | ||||||||||||||||||||
Home equity | 274,484 | 5 | % | 281,334 | 5 | % | 291,190 | 5 | % | 305,186 | 5 | % | 314,718 | 6 | % | ||||||||||||||||||||
Consumer loans | 57,418 | 1 | % | 75,476 | 1 | % | 81,932 | 2 | % | 93,317 | 2 | % | 84,651 | 2 | % | ||||||||||||||||||||
Total other loans | 900,898 | 17 | % | 905,484 | 16 | % | 906,665 | 16 | % | 921,495 | 16 | % | 915,208 | 16 | % | ||||||||||||||||||||
Gross loans excluding covered loans | 5,313,235 | 95 | % | 5,359,631 | 95 | % | 5,306,879 | 93 | % | 5,317,080 | 92 | % | 5,128,683 | 91 | % | ||||||||||||||||||||
Covered loans (1) | 273,497 | 5 | % | 308,556 | 5 | % | 400,789 | 7 | % | 449,850 | 8 | % | 496,162 | 9 | % | ||||||||||||||||||||
Total loans | $ | 5,586,732 | 100 | % | $ | 5,668,187 | 100 | % | $ | 5,707,668 | 100 | % | $ | 5,766,930 | 100 | % | $ | 5,624,845 | 100 | % |
(1) | Covered loans refer to loans we acquired in FDIC-assisted transactions that are subject to loss-sharing agreements with the FDIC. |
9/30/2013 | 6/30/2013 | 3/31/2013 | 12/31/2012 | 9/30/2012 | ||||||||||||||||
Non-performing loans: | ||||||||||||||||||||
Non-accrual loans (1) | $ | 102,042 | $ | 112,926 | $ | 108,765 | $ | 115,387 | $ | 104,813 | ||||||||||
Loans 90 days or more past due, still accruing interest | 410 | 2,322 | 5,193 | 1,599 | 470 | |||||||||||||||
Total non-performing loans | 102,452 | 115,248 | 113,958 | 116,986 | 105,283 | |||||||||||||||
OREO | 31,356 | 32,993 | 31,462 | 36,977 | 42,427 | |||||||||||||||
Repossessed assets | 861 | 749 | 757 | 773 | 113 | |||||||||||||||
Total non-performing assets | 134,669 | 148,990 | 146,177 | 154,736 | 147,823 | |||||||||||||||
Potential problem loans (2) | 96,405 | 131,746 | 115,451 | 111,553 | 134,289 | |||||||||||||||
Total classified assets | $ | 231,074 | $ | 280,736 | $ | 261,628 | $ | 266,289 | $ | 282,112 | ||||||||||
Total allowance for loan losses | $ | 118,031 | $ | 123,685 | $ | 121,802 | $ | 124,204 | $ | 121,182 | ||||||||||
Accruing restructured loans (3) | 29,911 | 28,270 | 21,630 | 21,256 | 17,929 | |||||||||||||||
Total non-performing loans to total loans | 1.83 | % | 2.03 | % | 2.00 | % | 2.03 | % | 1.87 | % | ||||||||||
Total non-performing assets to total assets | 1.45 | 1.59 | 1.56 | 1.62 | 1.56 | |||||||||||||||
Allowance for loan losses to non-performing loans | 115.21 | 107.32 | 106.88 | 106.17 | 115.10 |
(1) | Includes $18.5 million, $20.9 million, $26.3 million, $28.4 million and $27.1 million of restructured loans on non-accrual status at September 30, 2013, June 30, 2013, March 31, 2013, December 31, 2012 and September 30, 2012, respectively. |
(2) | We define potential problem loans as loans rated substandard that do not meet the definition of a non-performing loan. Potential problem loans carry a higher probability of default and require additional attention by management. The decrease in potential problem loans in the third quarter of 2013 related primarily to payments on several loans. |
(3) | Accruing restructured loans consists primarily of residential real estate and home equity loans that have been modified and are performing in accordance with those modified terms as of the dates indicated. The increase in accruing restructured loans in the second quarter of 2013 was primarily a result of non-accrual loans upgraded to accrual status due to continued performance. |
9/30/2013 | 6/30/2013 | 3/31/2013 | 12/31/2012 | 9/30/2012 | ||||||||||||||||
Commercial and lease | $ | 22,293 | $ | 25,968 | $ | 22,247 | $ | 25,517 | $ | 22,648 | ||||||||||
Commercial real estate | 54,276 | 62,335 | 57,604 | 59,508 | 55,387 | |||||||||||||||
Construction real estate | 496 | 519 | 1,025 | 1,028 | 1,225 | |||||||||||||||
Consumer related | 25,387 | 26,426 | 33,082 | 30,933 | 26,023 | |||||||||||||||
Total non-performing loans | $ | 102,452 | $ | 115,248 | $ | 113,958 | $ | 116,986 | $ | 105,283 |
9/30/2013 | 6/30/2013 | 3/31/2013 | 12/31/2012 | 9/30/2012 | ||||||||||||||||
Balance at the beginning of quarter | $ | 32,993 | $ | 31,462 | $ | 36,977 | $ | 42,427 | $ | 49,690 | ||||||||||
Transfers in at fair value less estimated costs to sell | 1,846 | 3,503 | 711 | 1,811 | 63 | |||||||||||||||
Capitalized OREO costs | 45 | 8 | — | 505 | 978 | |||||||||||||||
Fair value adjustments | (741 | ) | 1,170 | (349 | ) | (1,982 | ) | (4,648 | ) | |||||||||||
Net (losses) gains on sales of OREO | (13 | ) | 960 | 30 | 134 | 497 | ||||||||||||||
Cash received upon disposition | (2,774 | ) | (4,110 | ) | (5,907 | ) | (5,918 | ) | (4,153 | ) | ||||||||||
Balance at the end of quarter | $ | 31,356 | $ | 32,993 | $ | 31,462 | $ | 36,977 | $ | 42,427 |
Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||||||
3Q13 | 2Q13 | 1Q13 | 4Q12 | 3Q12 | 2013 | 2012 | ||||||||||||||||||||||
Allowance for credit losses, balance at the beginning of period | $ | 125,497 | $ | 124,733 | $ | 128,279 | $ | 124,926 | $ | 128,840 | $ | 128,279 | $ | 135,975 | ||||||||||||||
Provision for credit losses | (3,304 | ) | 500 | — | 1,000 | (13,000 | ) | (2,804 | ) | (9,900 | ) | |||||||||||||||||
Charge-offs: | ||||||||||||||||||||||||||||
Commercial loans | 1,686 | 433 | 911 | 343 | 75 | 3,030 | 2,065 | |||||||||||||||||||||
Commercial loans collateralized by assignment of lease payments (lease loans) | — | — | — | 1 | — | — | 1,720 | |||||||||||||||||||||
Commercial real estate loans | 1,236 | 1,978 | 1,917 | 2,965 | 2,994 | 5,131 | 8,412 | |||||||||||||||||||||
Construction real estate | 26 | 747 | 82 | 56 | 71 | 855 | 3,951 | |||||||||||||||||||||
Residential real estate | 713 | 399 | 962 | 1,068 | 474 | 2,074 | 1,876 | |||||||||||||||||||||
Home equity | 437 | 1,323 | 787 | 1,394 | 1,209 | 2,547 | 3,157 | |||||||||||||||||||||
Indirect vehicle | 572 | 629 | 729 | 623 | 433 | 1,930 | 1,636 | |||||||||||||||||||||
Consumer loans | 485 | 451 | 565 | 485 | 332 | 1,501 | 864 | |||||||||||||||||||||
Total charge-offs | 5,155 | 5,960 | 5,953 | 6,935 | 5,588 | 17,068 | 23,681 | |||||||||||||||||||||
Recoveries: | ||||||||||||||||||||||||||||
Commercial loans | 579 | 777 | 452 | 745 | 306 | 1,808 | 2,730 | |||||||||||||||||||||
Commercial loans collateralized by assignment of lease payments (lease loans) | — | 987 | 144 | 6,260 | 111 | 1,131 | 460 | |||||||||||||||||||||
Commercial real estate loans | 966 | 3,647 | 740 | 871 | 12,893 | 5,353 | 16,116 | |||||||||||||||||||||
Construction real estate | 420 | 131 | 276 | 561 | 752 | 827 | 1,458 | |||||||||||||||||||||
Residential real estate | 48 | 199 | 214 | 271 | 8 | 461 | 230 | |||||||||||||||||||||
Home equity | 228 | 100 | 114 | 248 | 303 | 442 | 423 | |||||||||||||||||||||
Indirect vehicle | 372 | 324 | 415 | 261 | 224 | 1,111 | 835 | |||||||||||||||||||||
Consumer loans | 74 | 59 | 52 | 71 | 77 | 185 | 280 | |||||||||||||||||||||
Total recoveries | 2,687 | 6,224 | 2,407 | 9,288 | 14,674 | 11,318 | 22,532 | |||||||||||||||||||||
Total net charge-offs (recoveries) | 2,468 | (264 | ) | 3,546 | (2,353 | ) | (9,086 | ) | 5,750 | 1,149 | ||||||||||||||||||
Allowance for credit losses | 119,725 | 125,497 | 124,733 | 128,279 | 124,926 | 119,725 | 124,926 | |||||||||||||||||||||
Allowance for unfunded credit commitments | (1,694 | ) | (1,812 | ) | (2,931 | ) | (4,075 | ) | (3,744 | ) | (1,694 | ) | (3,744 | ) | ||||||||||||||
Allowance for loan losses | $ | 118,031 | $ | 123,685 | $ | 121,802 | $ | 124,204 | $ | 121,182 | $ | 118,031 | $ | 121,182 | ||||||||||||||
Total loans, excluding loans held for sale | $ | 5,586,732 | $ | 5,668,187 | $ | 5,707,668 | $ | 5,766,930 | $ | 5,624,845 | $ | 5,586,732 | $ | 5,624,845 | ||||||||||||||
Average loans, excluding loans held for sale | 5,555,036 | 5,628,415 | 5,668,359 | 5,604,837 | 5,630,232 | 5,616,855 | 5,714,657 | |||||||||||||||||||||
Ratio of allowance for loan losses to total loans, excluding loans held for sale | 2.11 | % | 2.18 | % | 2.13 | % | 2.15 | % | 2.15 | % | 2.11 | % | 2.15 | % | ||||||||||||||
Net loan charge-offs (recoveries) to average loans, excluding loans held for sale (annualized) | 0.18 | (0.02 | ) | 0.25 | (0.17 | ) | (0.64 | ) | 0.14 | 0.03 |
9/30/2013 | 6/30/2013 | 3/31/2013 | 12/31/2012 | 9/30/2012 | ||||||||||||||||
Commercial related loans: | ||||||||||||||||||||
General reserve | $ | 87,112 | $ | 87,836 | $ | 92,433 | $ | 91,745 | $ | 95,586 | ||||||||||
Specific reserve | 12,378 | 16,679 | 12,137 | 13,231 | 11,300 | |||||||||||||||
Consumer related reserve | 18,541 | 19,170 | 17,232 | 19,228 | 14,296 | |||||||||||||||
Total allowance for loan losses | $ | 118,031 | $ | 123,685 | $ | 121,802 | $ | 124,204 | $ | 121,182 |
9/30/2013 | 6/30/2013 | 3/31/2013 | 12/31/2012 | 9/30/2012 | ||||||||||||||||
Securities available for sale: | ||||||||||||||||||||
Fair value | ||||||||||||||||||||
Government sponsored agencies and enterprises | $ | 52,527 | $ | 33,935 | $ | 40,949 | $ | 41,315 | $ | 42,187 | ||||||||||
States and political subdivisions | 19,312 | 684,710 | 719,761 | 725,019 | 668,966 | |||||||||||||||
Mortgage-backed securities | 744,722 | 701,201 | 842,605 | 993,328 | 1,075,962 | |||||||||||||||
Corporate bonds | 263,021 | 215,256 | 197,675 | 96,674 | 16,626 | |||||||||||||||
Equity securities | 10,541 | 10,570 | 11,179 | 11,835 | 11,231 | |||||||||||||||
Total fair value | $ | 1,090,123 | $ | 1,645,672 | $ | 1,812,169 | $ | 1,868,171 | $ | 1,814,972 | ||||||||||
Amortized cost | ||||||||||||||||||||
Government sponsored agencies and enterprises | $ | 50,678 | $ | 32,050 | $ | 38,478 | $ | 38,605 | $ | 39,233 | ||||||||||
States and political subdivisions | 19,461 | 669,791 | 680,978 | 679,991 | 620,489 | |||||||||||||||
Mortgage-backed securities | 736,070 | 690,681 | 827,384 | 981,513 | 1,060,665 | |||||||||||||||
Corporate bonds | 265,293 | 219,362 | 197,162 | 97,014 | 16,617 | |||||||||||||||
Equity securities | 10,574 | 10,560 | 10,820 | 11,398 | 10,644 | |||||||||||||||
Total amortized cost | $ | 1,082,076 | $ | 1,622,444 | $ | 1,754,822 | $ | 1,808,521 | $ | 1,747,648 | ||||||||||
Unrealized gain | ||||||||||||||||||||
Government sponsored agencies and enterprises | $ | 1,849 | $ | 1,885 | $ | 2,471 | $ | 2,710 | $ | 2,954 | ||||||||||
States and political subdivisions | (149 | ) | 14,919 | 38,783 | 45,028 | 48,477 | ||||||||||||||
Mortgage-backed securities | 8,652 | 10,520 | 15,221 | 11,815 | 15,297 | |||||||||||||||
Corporate bonds | (2,272 | ) | (4,106 | ) | 513 | (340 | ) | 9 | ||||||||||||
Equity securities | (33 | ) | 10 | 359 | 437 | 587 | ||||||||||||||
Total unrealized gain | $ | 8,047 | $ | 23,228 | $ | 57,347 | $ | 59,650 | $ | 67,324 | ||||||||||
Securities held to maturity, at cost: | ||||||||||||||||||||
States and political subdivisions | $ | 941,273 | $ | 282,655 | $ | 262,310 | $ | 237,563 | $ | 238,211 | ||||||||||
Mortgage-backed securities | 252,271 | 253,779 | 255,475 | 255,858 | 257,640 | |||||||||||||||
Total amortized cost | $ | 1,193,544 | $ | 536,434 | $ | 517,785 | $ | 493,421 | $ | 495,851 |
9/30/2013 | 6/30/2013 | 3/31/2013 | 12/31/2012 | 9/30/2012 | |||||||||||||||||||||||||||||||
Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||||||
Low cost deposits: | |||||||||||||||||||||||||||||||||||
Noninterest bearing deposits | $ | 2,269,367 | 31 | % | $ | 2,230,384 | 30 | % | $ | 2,067,310 | 28 | % | $ | 2,164,547 | 29 | % | $ | 2,011,542 | 27 | % | |||||||||||||||
Money market and NOW accounts | 2,680,127 | 37 | % | 2,718,989 | 37 | % | 2,778,916 | 37 | % | 2,747,273 | 36 | % | 2,682,608 | 36 | % | ||||||||||||||||||||
Savings accounts | 843,671 | 12 | % | 845,742 | 11 | % | 833,251 | 11 | % | 811,333 | 11 | % | 797,741 | 10 | % | ||||||||||||||||||||
Total low cost deposits | 5,793,165 | 80 | % | 5,795,115 | 78 | % | 5,679,477 | 76 | % | 5,723,153 | 76 | % | 5,491,891 | 73 | % | ||||||||||||||||||||
Certificates of deposit: | |||||||||||||||||||||||||||||||||||
Certificates of deposit | 1,266,989 | 17 | % | 1,357,777 | 18 | % | 1,478,039 | 20 | % | 1,525,366 | 20 | % | 1,632,370 | 22 | % | ||||||||||||||||||||
Brokered deposit accounts | 238,532 | 3 | % | 292,504 | 4 | % | 294,390 | 4 | % | 294,178 | 4 | % | 355,086 | 5 | % | ||||||||||||||||||||
Total certificates of deposit | 1,505,521 | 20 | % | 1,650,281 | 22 | % | 1,772,429 | 24 | % | 1,819,544 | 24 | % | 1,987,456 | 27 | % | ||||||||||||||||||||
Total deposits | $ | 7,298,686 | 100 | % | $ | 7,445,396 | 100 | % | $ | 7,451,906 | 100 | % | $ | 7,542,697 | 100 | % | $ | 7,479,347 | 100 | % |
9/30/2013 | 6/30/2013 | 3/31/2013 | 12/31/2012 | 9/30/2012 | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and due from banks | $ | 215,017 | $ | 152,302 | $ | 131,146 | $ | 176,010 | $ | 129,326 | ||||||||||
Interest earning deposits with banks | 41,700 | 280,618 | 108,885 | 111,533 | 327,301 | |||||||||||||||
Total cash and cash equivalents | 256,717 | 432,920 | 240,031 | 287,543 | 456,627 | |||||||||||||||
Federal funds sold | 47,500 | 7,500 | — | — | — | |||||||||||||||
Investment securities: | ||||||||||||||||||||
Securities available for sale, at fair value | 1,090,123 | 1,645,672 | 1,812,169 | 1,868,171 | 1,814,972 | |||||||||||||||
Securities held to maturity, at amortized cost | 1,193,544 | 536,434 | 517,785 | 493,421 | 495,851 | |||||||||||||||
Non-marketable securities - FHLB and FRB Stock | 50,870 | 50,870 | 52,434 | 55,385 | 57,653 | |||||||||||||||
Total investment securities | 2,334,537 | 2,232,976 | 2,382,388 | 2,416,977 | 2,368,476 | |||||||||||||||
Loans held for sale | 1,120 | 2,528 | 3,030 | 7,492 | 7,221 | |||||||||||||||
Loans: | ||||||||||||||||||||
Total loans, excluding covered loans | 5,313,235 | 5,359,631 | 5,306,879 | 5,317,080 | 5,128,683 | |||||||||||||||
Covered loans | 273,497 | 308,556 | 400,789 | 449,850 | 496,162 | |||||||||||||||
Total loans | 5,586,732 | 5,668,187 | 5,707,668 | 5,766,930 | 5,624,845 | |||||||||||||||
Less: Allowance for loan losses | 118,031 | 123,685 | 121,802 | 124,204 | 121,182 | |||||||||||||||
Net loans | 5,468,701 | 5,544,502 | 5,585,866 | 5,642,726 | 5,503,663 | |||||||||||||||
Lease investments, net | 112,491 | 113,958 | 117,744 | 129,823 | 113,180 | |||||||||||||||
Premises and equipment, net | 220,574 | 219,783 | 219,662 | 221,533 | 214,301 | |||||||||||||||
Cash surrender value of life insurance | 129,332 | 130,565 | 129,723 | 128,879 | 127,985 | |||||||||||||||
Goodwill | 423,369 | 423,369 | 423,369 | 423,369 | 387,069 | |||||||||||||||
Other intangibles | 24,917 | 26,430 | 27,968 | 29,512 | 25,735 | |||||||||||||||
Other real estate owned, net | 31,356 | 32,993 | 31,462 | 36,977 | 42,427 | |||||||||||||||
Other real estate owned related to FDIC transactions | 24,792 | 19,014 | 20,011 | 22,478 | 32,607 | |||||||||||||||
FDIC indemnification asset | 11,074 | 16,337 | 29,197 | 39,345 | 36,311 | |||||||||||||||
Other assets | 171,138 | 166,784 | 175,379 | 185,151 | 147,943 | |||||||||||||||
Total assets | $ | 9,257,618 | $ | 9,369,659 | $ | 9,385,830 | $ | 9,571,805 | $ | 9,463,545 | ||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
Liabilities | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Noninterest bearing | $ | 2,269,367 | $ | 2,230,384 | $ | 2,067,310 | $ | 2,164,547 | $ | 2,011,542 | ||||||||||
Interest bearing | 5,029,319 | 5,215,012 | 5,384,596 | 5,378,150 | 5,467,805 | |||||||||||||||
Total deposits | 7,298,686 | 7,445,396 | 7,451,906 | 7,542,697 | 7,479,347 | |||||||||||||||
Short-term borrowings | 240,600 | 230,547 | 224,379 | 220,602 | 289,613 | |||||||||||||||
Long-term borrowings | 62,428 | 62,786 | 64,019 | 116,050 | 118,798 | |||||||||||||||
Junior subordinated notes issued to capital trusts | 152,065 | 152,065 | 152,065 | 152,065 | 152,065 | |||||||||||||||
Accrued expenses and other liabilities | 194,371 | 182,784 | 198,658 | 264,621 | 162,892 | |||||||||||||||
Total liabilities | 7,948,150 | 8,073,578 | 8,091,027 | 8,296,035 | 8,202,715 | |||||||||||||||
Stockholders' Equity | ||||||||||||||||||||
Common stock | 551 | 550 | 550 | 550 | 550 | |||||||||||||||
Additional paid-in capital | 736,294 | 736,281 | 734,057 | 732,771 | 731,679 | |||||||||||||||
Retained earnings | 564,779 | 547,116 | 527,332 | 507,933 | 489,426 | |||||||||||||||
Accumulated other comprehensive income | 9,918 | 14,231 | 34,928 | 36,326 | 40,985 | |||||||||||||||
Treasury stock | (3,525 | ) | (3,558 | ) | (3,529 | ) | (3,293 | ) | (3,304 | ) | ||||||||||
Controlling interest stockholders' equity | 1,308,017 | 1,294,620 | 1,293,338 | 1,274,287 | 1,259,336 | |||||||||||||||
Noncontrolling interest | 1,451 | 1,461 | 1,465 | 1,483 | 1,494 | |||||||||||||||
Total stockholders' equity | 1,309,468 | 1,296,081 | 1,294,803 | 1,275,770 | 1,260,830 | |||||||||||||||
Total liabilities and stockholders' equity | $ | 9,257,618 | $ | 9,369,659 | $ | 9,385,830 | $ | 9,571,805 | $ | 9,463,545 |
Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||||||
3Q13 | 2Q13 | 1Q13 | 4Q12 | 3Q12 | 2013 | 2012 | ||||||||||||||||||||||
Interest income: | ||||||||||||||||||||||||||||
Loans | $ | 60,115 | $ | 59,581 | $ | 60,793 | $ | 63,328 | $ | 67,482 | $ | 180,489 | $ | 208,380 | ||||||||||||||
Investment securities: | ||||||||||||||||||||||||||||
Taxable | 6,330 | 6,280 | 6,140 | 6,371 | 7,287 | 18,749 | 27,053 | |||||||||||||||||||||
Nontaxable | 8,175 | 8,163 | 8,060 | 7,687 | 7,582 | 24,399 | 21,624 | |||||||||||||||||||||
Federal funds sold | 7 | 2 | — | — | — | 9 | — | |||||||||||||||||||||
Other interest earning accounts | 193 | 92 | 135 | 228 | 312 | 420 | 639 | |||||||||||||||||||||
Total interest income | 74,820 | 74,118 | 75,128 | 77,614 | 82,663 | 224,066 | 257,696 | |||||||||||||||||||||
Interest expense: | ||||||||||||||||||||||||||||
Deposits | 4,433 | 5,132 | 5,709 | 6,066 | 7,374 | 15,274 | 24,192 | |||||||||||||||||||||
Short-term borrowings | 112 | 116 | 167 | 294 | 342 | 395 | 910 | |||||||||||||||||||||
Long-term borrowings and junior subordinated notes | 1,367 | 1,390 | 1,567 | 1,738 | 2,872 | 4,324 | 9,322 | |||||||||||||||||||||
Total interest expense | 5,912 | 6,638 | 7,443 | 8,098 | 10,588 | 19,993 | 34,424 | |||||||||||||||||||||
Net interest income | 68,908 | 67,480 | 67,685 | 69,516 | 72,075 | 204,073 | 223,272 | |||||||||||||||||||||
Provision for credit losses | (3,304 | ) | 500 | — | 1,000 | (13,000 | ) | (2,804 | ) | (9,900 | ) | |||||||||||||||||
Net interest income after provision for credit losses | 72,212 | 66,980 | 67,685 | 68,516 | 85,075 | 206,877 | 233,172 | |||||||||||||||||||||
Non-interest income: | ||||||||||||||||||||||||||||
Capital markets and international banking service fees | 972 | 939 | 808 | 2,386 | 1,400 | 2,719 | 2,700 | |||||||||||||||||||||
Commercial deposit and treasury management fees | 6,327 | 6,029 | 5,966 | 6,095 | 5,860 | 18,322 | 17,541 | |||||||||||||||||||||
Lease financing, net | 14,070 | 15,102 | 16,263 | 12,419 | 9,671 | 45,435 | 23,963 | |||||||||||||||||||||
Trust and asset management fees | 4,799 | 4,874 | 4,494 | 4,623 | 4,428 | 14,167 | 13,367 | |||||||||||||||||||||
Card fees | 2,745 | 2,735 | 2,695 | 2,505 | 2,388 | 8,175 | 6,863 | |||||||||||||||||||||
Loan service fees | 1,427 | 1,911 | 1,011 | 2,436 | 1,075 | 4,349 | 3,409 | |||||||||||||||||||||
Consumer and other deposit service fees | 3,648 | 3,593 | 3,246 | 3,655 | 3,786 | 10,487 | 10,773 | |||||||||||||||||||||
Brokerage fees | 1,289 | 1,234 | 1,157 | 1,088 | 1,185 | 3,680 | 3,704 | |||||||||||||||||||||
Net gain (loss) on securities available for sale | 1 | 14 | (1 | ) | 311 | 281 | 14 | 244 | ||||||||||||||||||||
Increase in cash surrender value of life insurance | 851 | 842 | 844 | 893 | 890 | 2,537 | 2,677 | |||||||||||||||||||||
Net loss on sale of other assets | — | — | — | (905 | ) | (12 | ) | — | (37 | ) | ||||||||||||||||||
Accretion of FDIC indemnification asset | 64 | 100 | 143 | 154 | 204 | 307 | 901 | |||||||||||||||||||||
Net gain (loss) recognized on other real estate owned | (791 | ) | 2,015 | (330 | ) | (1,626 | ) | (3,938 | ) | 894 | (15,968 | ) | ||||||||||||||||
Net gain on sale of loans | 177 | 506 | 639 | 822 | 575 | 1,322 | 1,503 | |||||||||||||||||||||
Other operating income | 1,337 | 1,060 | 1,438 | 1,429 | 760 | 3,835 | 3,674 | |||||||||||||||||||||
Total non-interest income | 36,916 | 40,954 | 38,373 | 36,285 | 28,553 | 116,243 | 75,314 | |||||||||||||||||||||
Non-interest expense: | ||||||||||||||||||||||||||||
Salaries and employee benefits | 44,918 | 43,909 | 43,514 | 43,038 | 42,083 | 132,341 | 122,658 | |||||||||||||||||||||
Occupancy and equipment expense | 8,797 | 9,408 | 9,404 | 8,774 | 8,274 | 27,609 | 27,032 | |||||||||||||||||||||
Computer services and telecommunication expense | 4,870 | 4,617 | 3,887 | 4,160 | 3,777 | 13,374 | 11,339 | |||||||||||||||||||||
Advertising and marketing expense | 1,917 | 2,167 | 2,103 | 2,335 | 1,936 | 6,187 | 5,848 | |||||||||||||||||||||
Professional and legal expense | 3,102 | 1,353 | 1,295 | 1,640 | 1,554 | 5,750 | 4,470 | |||||||||||||||||||||
Other intangible amortization expense | 1,513 | 1,538 | 1,544 | 1,251 | 1,251 | 4,595 | 3,759 | |||||||||||||||||||||
Branch impairment charges | — | — | — | 1,432 | 758 | — | 758 | |||||||||||||||||||||
Other real estate expense, net | 240 | 193 | 139 | 449 | 874 | 572 | 2,541 | |||||||||||||||||||||
Prepayment fees on interest bearing liabilities | — | — | — | — | 12,682 | — | 12,682 | |||||||||||||||||||||
Other operating expenses | 10,117 | 9,083 | 9,213 | 8,027 | 7,976 | 28,413 | 24,243 | |||||||||||||||||||||
Total non-interest expense | 75,474 | 72,268 | 71,099 | 71,106 | 81,165 | 218,841 | 215,330 | |||||||||||||||||||||
Income before income taxes | 33,654 | 35,666 | 34,959 | 33,695 | 32,463 | 104,279 | 93,156 | |||||||||||||||||||||
Income tax expense | 9,254 | 10,373 | 10,053 | 9,683 | 9,330 | 29,680 | 26,794 | |||||||||||||||||||||
Net income | 24,400 | 25,293 | 24,906 | 24,012 | 23,133 | 74,599 | 66,362 | |||||||||||||||||||||
Dividends and discount accretion on preferred shares | — | — | — | — | — | — | 3,269 | |||||||||||||||||||||
Net income available to common stockholders | $ | 24,400 | $ | 25,293 | $ | 24,906 | $ | 24,012 | $ | 23,133 | $ | 74,599 | $ | 63,093 |
Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||||||
3Q13 | 2Q13 | 1Q13 | 4Q12 | 3Q12 | 2013 | 2012 | ||||||||||||||||||||||
Common share data: | ||||||||||||||||||||||||||||
Basic earnings per common share | $ | 0.45 | $ | 0.46 | $ | 0.46 | $ | 0.44 | $ | 0.43 | $ | 1.37 | $ | 1.16 | ||||||||||||||
Diluted earnings per common share | 0.44 | 0.46 | 0.46 | 0.44 | 0.42 | 1.36 | 1.16 | |||||||||||||||||||||
Weighted average common shares outstanding for basic earnings per common share | 54,565,089 | 54,436,043 | 54,411,806 | 54,401,504 | 54,346,827 | 54,471,541 | 54,226,241 | |||||||||||||||||||||
Weighted average common shares outstanding for diluted earnings per common share | 55,130,653 | 54,868,075 | 54,736,644 | 54,597,737 | 54,556,517 | 54,912,352 | 54,472,617 |
Selected Financial Data: | ||||||||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||||||
3Q13 | 2Q13 | 1Q13 | 4Q12 | 3Q12 | 2013 | 2012 | ||||||||||||||||||||||
Performance Ratios: | ||||||||||||||||||||||||||||
Annualized return on average assets | 1.05 | % | 1.09 | % | 1.07 | % | 1.01 | % | 0.97 | % | 1.07 | % | 0.93 | % | ||||||||||||||
Annualized return on average equity | 7.46 | 7.82 | 7.89 | 7.55 | 7.38 | 7.72 | 6.87 | |||||||||||||||||||||
Annualized cash return on average tangible equity(1) | 11.74 | 12.31 | 12.53 | 11.47 | 11.29 | 12.19 | 10.66 | |||||||||||||||||||||
Net interest rate spread | 3.52 | 3.46 | 3.44 | 3.41 | 3.48 | 3.48 | 3.60 | |||||||||||||||||||||
Cost of funds(2) | 0.30 | 0.34 | 0.38 | 0.40 | 0.52 | 0.34 | 0.56 | |||||||||||||||||||||
Efficiency ratio(3) | 65.11 | 64.26 | 63.10 | 61.16 | 61.43 | 64.16 | 60.94 | |||||||||||||||||||||
Annualized net non-interest expense to average assets(4) | 1.52 | 1.42 | 1.37 | 1.29 | 1.46 | 1.44 | 1.53 | |||||||||||||||||||||
Core non-interest income to revenues (5) | 33.51 | 35.01 | 34.56 | 34.18 | 29.49 | 34.36 | 27.81 | |||||||||||||||||||||
Net interest margin | 3.37 | 3.33 | 3.32 | 3.31 | 3.42 | 3.34 | 3.55 | |||||||||||||||||||||
Tax equivalent effect | 0.29 | 0.28 | 0.27 | 0.26 | 0.25 | 0.28 | 0.24 | |||||||||||||||||||||
Net interest margin - fully tax equivalent basis(6) | 3.66 | 3.61 | 3.59 | 3.57 | 3.67 | 3.62 | 3.79 | |||||||||||||||||||||
Asset Quality Ratios: | ||||||||||||||||||||||||||||
Non-performing loans(7) to total loans | 1.83 | % | 2.03 | % | 2.00 | % | 2.03 | % | 1.87 | % | 1.83 | % | 1.87 | % | ||||||||||||||
Non-performing assets(7) to total assets | 1.45 | 1.59 | 1.56 | 1.62 | 1.56 | 1.45 | 1.56 | |||||||||||||||||||||
Allowance for loan losses to non-performing loans(7) | 115.21 | 107.32 | 106.88 | 106.17 | 115.10 | 115.21 | 115.10 | |||||||||||||||||||||
Allowance for loan losses to total loans | 2.11 | 2.18 | 2.13 | 2.15 | 2.15 | 2.11 | 2.15 | |||||||||||||||||||||
Net loan charge-offs (recoveries) to average loans (annualized) | 0.18 | (0.02 | ) | 0.25 | (0.17 | ) | (0.64 | ) | 0.14 | 0.03 | ||||||||||||||||||
Capital Ratios: | ||||||||||||||||||||||||||||
Tangible equity to tangible assets(8) | 9.87 | % | 9.58 | % | 9.54 | % | 9.13 | % | 9.46 | % | 9.87 | % | 9.46 | % | ||||||||||||||
Tangible common equity to risk weighted assets(9) | 13.40 | 13.23 | 13.29 | 13.07 | 14.16 | 13.40 | 14.16 | |||||||||||||||||||||
Book value per common share(10) | $ | 23.82 | $ | 23.63 | $ | 23.63 | $ | 23.29 | $ | 23.01 | $ | 23.82 | $ | 23.01 | ||||||||||||||
Less: goodwill and other intangible assets, net of benefit, per common share | 7.99 | 8.03 | 8.06 | 8.08 | 7.37 | 7.99 | 7.37 | |||||||||||||||||||||
Tangible book value per common share(11) | $ | 15.83 | $ | 15.60 | $ | 15.57 | $ | 15.21 | $ | 15.64 | $ | 15.83 | $ | 15.64 | ||||||||||||||
Total capital (to risk-weighted assets) | 16.70 | % | 16.48 | % | 16.22 | % | 16.62 | % | 17.91 | % | 16.70 | % | 17.91 | % | ||||||||||||||
Tier 1 capital (to risk-weighted assets) | 15.44 | 15.22 | 14.96 | 14.73 | 15.83 | 15.44 | 15.83 | |||||||||||||||||||||
Tier 1 capital (to average assets) | 11.39 | 11.19 | 10.74 | 10.50 | 10.60 | 11.39 | 10.60 | |||||||||||||||||||||
Tier 1 common capital (to risk-weighted assets) | 13.17 | 12.94 | 12.66 | 12.42 | 13.39 | 13.17 | 13.39 |
(1) | Net cash flow available to common stockholders (net income available to common stockholders, plus other intangibles amortization expense, net of tax benefit) divided by average tangible equity (average equity less average goodwill and average other intangibles, net of tax benefit). |
(2) | Equals total interest expense divided by the sum of average interest bearing liabilities and noninterest bearing deposits. |
(3) | Equals total non-interest expense excluding non-core items divided by the sum of net interest income on a fully tax equivalent basis, total non-interest income less non-core items, and tax equivalent adjustment on the increase in cash surrender value of life insurance. |
(4) | Equals total non-interest expense excluding non-core items less total non-interest income excluding non-core items, and including tax equivalent adjustment on the increase in cash surrender value of life insurance divided by average assets. |
(5) | Equals total non-interest income excluding non-core items and tax equivalent adjustment on the increase in cash surrender value of life insurance divided by the sum of net interest income on a fully tax equivalent basis, total non-interest income less non-core items, and tax equivalent adjustment on the increase in cash surrender value of life insurance. |
(6) | Represents net interest income on a fully tax equivalent basis assuming a 35% tax rate, as a percentage of average interest earning assets. |
(7) | Non-performing loans excludes purchased credit-impaired loans and loans held for sale. Non-performing assets excludes purchased credit-impaired loans, loans held for sale, and other real estate owned related to FDIC transactions. |
(8) | Equals total ending stockholders’ equity less goodwill and other intangibles, net of tax benefit, divided by total assets less goodwill and other intangibles, net of tax benefit. |
(9) | Equals total ending common stockholders’ equity less goodwill and other intangibles, net of tax benefit, divided by total risk-weighted assets. |
(10) | Equals total ending stockholders’ equity divided by common shares outstanding. |
(11) | Equals total ending stockholders’ equity less goodwill and other intangibles, net of tax benefit, divided by common shares outstanding. |
9/30/2013 | 6/30/2013 | 3/31/2013 | 12/31/2012 | 9/30/2012 | ||||||||||||||||
Stockholders' equity - as reported | $ | 1,309,468 | $ | 1,296,081 | $ | 1,294,803 | $ | 1,275,770 | $ | 1,260,830 | ||||||||||
Less: goodwill | 423,369 | 423,369 | 423,369 | 423,369 | 387,069 | |||||||||||||||
Less: other intangible assets, net of tax benefit | 16,196 | 17,180 | 18,179 | 19,183 | 16,728 | |||||||||||||||
Tangible equity | $ | 869,903 | $ | 855,532 | $ | 853,255 | $ | 833,218 | $ | 857,033 |
9/30/2013 | 6/30/2013 | 3/31/2013 | 12/31/2012 | 9/30/2012 | ||||||||||||||||
Total assets - as reported | $ | 9,257,618 | $ | 9,369,659 | $ | 9,385,830 | $ | 9,571,805 | $ | 9,463,545 | ||||||||||
Less: goodwill | 423,369 | 423,369 | 423,369 | 423,369 | 387,069 | |||||||||||||||
Less: other intangible assets, net of tax benefit | 16,196 | 17,180 | 18,179 | 19,183 | 16,728 | |||||||||||||||
Tangible assets | $ | 8,818,053 | $ | 8,929,110 | $ | 8,944,282 | $ | 9,129,253 | $ | 9,059,748 |
Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||||||
3Q13 | 2Q13 | 1Q13 | 4Q12 | 3Q12 | 2013 | 2012 | ||||||||||||||||||||||
Average common stockholders' equity - as reported | $ | 1,297,498 | $ | 1,297,364 | $ | 1,280,921 | $ | 1,264,772 | $ | 1,247,846 | $ | 1,291,988 | $ | 1,226,046 | ||||||||||||||
Less: average goodwill | 423,369 | 423,369 | 423,369 | 387,464 | 387,069 | 423,369 | 387,069 | |||||||||||||||||||||
Less: average other intangible assets, net of tax benefit | 16,620 | 17,605 | 18,611 | 16,238 | 17,018 | 17,605 | 17,878 | |||||||||||||||||||||
Average tangible common equity | $ | 857,509 | $ | 856,390 | $ | 838,941 | $ | 861,070 | $ | 843,759 | $ | 851,014 | $ | 821,099 |
Nine Months Ended | ||||||||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||||||||
3Q13 | 2Q13 | 1Q13 | 4Q12 | 3Q12 | 2013 | 2012 | ||||||||||||||||||||||||
Net income available to common stockholders - as reported | $ | 24,400 | $ | 25,293 | $ | 24,906 | $ | 24,012 | $ | 23,133 | $ | 74,599 | $ | 63,093 | ||||||||||||||||
Add: other intangible amortization expense, net of tax benefit | 983 | 1,000 | 1,004 | 813 | 813 | 2,987 | 2,443 | |||||||||||||||||||||||
Net cash flow available to common stockholders | $ | 25,383 | $ | 26,293 | $ | 25,910 | $ | 24,825 | $ | 23,946 | $ | 77,586 | $ | 65,536 |
9/30/2013 | 6/30/2013 | 3/31/2013 | 12/31/2012 | 9/30/2012 | ||||||||||||||||
Tier 1 capital - as reported | $ | 1,002,904 | $ | 983,997 | $ | 960,803 | $ | 939,087 | $ | 958,123 | ||||||||||
Less: qualifying trust preferred securities | 147,500 | 147,500 | 147,500 | 147,500 | 147,500 | |||||||||||||||
Tier 1 common capital | $ | 855,404 | $ | 836,497 | $ | 813,303 | $ | 791,587 | $ | 810,623 |
Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||||||
3Q13 | 2Q13 | 1Q13 | 4Q12 | 3Q12 | 2013 | 2012 | ||||||||||||||||||||||
Non-interest expense | $ | 75,474 | $ | 72,268 | $ | 71,099 | $ | 71,106 | $ | 81,165 | $ | 218,841 | $ | 215,330 | ||||||||||||||
Less merger related expenses | 1,759 | — | — | — | — | 1,759 | — | |||||||||||||||||||||
Less prepayment fees on interest bearing liabilities | — | — | — | — | 12,682 | — | 12,682 | |||||||||||||||||||||
Less impairment charges | — | — | — | 1,432 | 758 | — | 758 | |||||||||||||||||||||
Less increase in market value of assets held in trust for deferred compensation | 459 | 21 | 483 | 104 | 355 | 963 | 707 | |||||||||||||||||||||
Non-interest expense - as adjusted | $ | 73,256 | $ | 72,247 | $ | 70,616 | $ | 69,570 | $ | 67,370 | $ | 216,119 | $ | 201,183 | ||||||||||||||
Net interest income | $ | 68,908 | $ | 67,480 | $ | 67,685 | $ | 69,516 | $ | 72,075 | $ | 204,073 | $ | 223,272 | ||||||||||||||
Tax equivalent adjustment | 5,905 | 5,594 | 5,555 | 5,360 | 5,256 | 17,054 | 15,069 | |||||||||||||||||||||
Net interest income on a fully tax equivalent basis | 74,813 | 73,074 | 73,240 | 74,876 | 77,331 | 221,127 | 238,341 | |||||||||||||||||||||
Plus non-interest income | 36,916 | 40,954 | 38,373 | 36,285 | 28,553 | 116,243 | 75,314 | |||||||||||||||||||||
Plus tax equivalent adjustment on the increase in cash surrender value of life insurance | 458 | 454 | 454 | 481 | 479 | 1,366 | 1,441 | |||||||||||||||||||||
Less net gain (loss) on other real estate owned | (791 | ) | 2,015 | (330 | ) | (1,626 | ) | (3,938 | ) | 894 | (15,968 | ) | ||||||||||||||||
Less net (loss) gain on investment securities | 1 | 14 | (1 | ) | 311 | 281 | 14 | 244 | ||||||||||||||||||||
Less net loss on sale of other assets | — | — | — | (905 | ) | (12 | ) | — | (37 | ) | ||||||||||||||||||
Less increase (decrease) in market value of assets held in trust for deferred compensation | 459 | 21 | 483 | 104 | 355 | 963 | 707 | |||||||||||||||||||||
Net interest income plus non-interest income - as adjusted | $ | 112,518 | $ | 112,432 | $ | 111,915 | $ | 113,758 | $ | 109,677 | $ | 336,865 | $ | 330,150 | ||||||||||||||
Efficiency ratio | 65.11 | % | 64.26 | % | 63.10 | % | 61.16 | % | 61.43 | % | 64.16 | % | 60.94 | % | ||||||||||||||
Efficiency ratio (without adjustments) | 71.32 | % | 66.65 | % | 67.04 | % | 67.21 | % | 80.66 | % | 68.32 | % | 72.12 | % |
Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||||||
3Q13 | 2Q13 | 1Q13 | 4Q12 | 3Q12 | 2013 | 2012 | ||||||||||||||||||||||
Non-interest expense | $ | 75,474 | $ | 72,268 | $ | 71,099 | $ | 71,106 | $ | 81,165 | $ | 218,841 | $ | 215,330 | ||||||||||||||
Less merger related expenses | 1,759 | — | — | — | — | 1,759 | — | |||||||||||||||||||||
Less prepayment fees on interest bearing liabilities | — | — | — | — | 12,682 | — | 12,682 | |||||||||||||||||||||
Less impairment charges | — | — | — | 1,432 | 758 | — | 758 | |||||||||||||||||||||
Less increase in market value of assets held in trust for deferred compensation | 459 | 21 | 483 | 104 | 355 | 963 | 707 | |||||||||||||||||||||
Non-interest expense - as adjusted | 73,256 | 72,247 | 70,616 | 69,570 | 67,370 | 216,119 | 201,183 | |||||||||||||||||||||
Non-interest income | 36,916 | 40,954 | 38,373 | 36,285 | 28,553 | 116,243 | 75,314 | |||||||||||||||||||||
Less net gain (loss) on other real estate owned | (791 | ) | 2,015 | (330 | ) | (1,626 | ) | (3,938 | ) | 894 | (15,968 | ) | ||||||||||||||||
Less net gain (loss) on investment securities | 1 | 14 | (1 | ) | 311 | 281 | 14 | 244 | ||||||||||||||||||||
Less net loss on sale of other assets | — | — | — | (905 | ) | (12 | ) | — | (37 | ) | ||||||||||||||||||
Less increase (decrease) in market value of assets held in trust for deferred compensation | 459 | 21 | 483 | 104 | 355 | 963 | 707 | |||||||||||||||||||||
Non-interest income - as adjusted | 37,247 | 38,904 | 38,221 | 38,401 | 31,867 | 114,372 | 90,368 | |||||||||||||||||||||
Less tax equivalent adjustment on the increase in cash surrender value of life insurance | 458 | 454 | 454 | 481 | 479 | 1,366 | 1,441 | |||||||||||||||||||||
Net non-interest expense | $ | 35,551 | $ | 32,889 | $ | 31,941 | $ | 30,688 | $ | 35,024 | $ | 100,381 | $ | 109,374 | ||||||||||||||
Average assets | $ | 9,261,291 | $ | 9,289,382 | $ | 9,449,588 | $ | 9,461,895 | $ | 9,516,159 | $ | 9,332,730 | $ | 9,576,892 | ||||||||||||||
Annualized net non-interest expense to average assets | 1.52 | % | 1.42 | % | 1.37 | % | 1.29 | % | 1.46 | % | 1.44 | % | 1.53 | % | ||||||||||||||
Annualized net non-interest expense to average assets (without adjustments) | 1.65 | % | 1.35 | % | 1.40 | % | 1.46 | % | 2.20 | % | 1.47 | % | 1.95 | % |
Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||||||
3Q13 | 2Q13 | 1Q13 | 4Q12 | 3Q12 | 2013 | 2012 | ||||||||||||||||||||||
Non-interest income | $ | 36,916 | $ | 40,954 | $ | 38,373 | $ | 36,285 | $ | 28,553 | $ | 116,243 | $ | 75,314 | ||||||||||||||
Plus tax equivalent adjustment on the increase in cash surrender value of life insurance | 458 | 454 | 454 | 481 | 479 | 1,366 | 1,441 | |||||||||||||||||||||
Less net gain (loss) on other real estate owned | (791 | ) | 2,015 | (330 | ) | (1,626 | ) | (3,938 | ) | 894 | (15,968 | ) | ||||||||||||||||
Less net gain (loss) on investment securities | 1 | 14 | (1 | ) | 311 | 281 | 14 | 244 | ||||||||||||||||||||
Less net loss on sale of other assets | — | — | — | (905 | ) | (12 | ) | — | (37 | ) | ||||||||||||||||||
Less increase (decrease) in market value of assets held in trust for deferred compensation | 459 | 21 | 483 | 104 | 355 | 963 | 707 | |||||||||||||||||||||
Non-interest income - as adjusted | $ | 37,705 | $ | 39,358 | $ | 38,675 | $ | 38,882 | $ | 32,346 | $ | 115,738 | $ | 91,809 | ||||||||||||||
Net interest income | $ | 68,908 | $ | 67,480 | $ | 67,685 | $ | 69,516 | $ | 72,075 | $ | 204,073 | $ | 223,272 | ||||||||||||||
Tax equivalent adjustment | 5,905 | 5,594 | 5,555 | 5,360 | 5,256 | 17,054 | 15,069 | |||||||||||||||||||||
Net interest income on a fully tax equivalent basis | 74,813 | 73,074 | 73,240 | 74,876 | 77,331 | 221,127 | 238,341 | |||||||||||||||||||||
Plus non-interest income | 36,916 | 40,954 | 38,373 | 36,285 | 28,553 | 116,243 | 75,314 | |||||||||||||||||||||
Plus tax equivalent adjustment on the increase in cash surrender value of life insurance | 458 | 454 | 454 | 481 | 479 | 1,366 | 1,441 | |||||||||||||||||||||
Less net gain (loss) on other real estate owned | (791 | ) | 2,015 | (330 | ) | (1,626 | ) | (3,938 | ) | 894 | (15,968 | ) | ||||||||||||||||
Less net gain (loss) on investment securities | 1 | 14 | (1 | ) | 311 | 281 | 14 | 244 | ||||||||||||||||||||
Less net loss on sale of other assets | — | — | — | (905 | ) | (12 | ) | — | (37 | ) | ||||||||||||||||||
Less increase (decrease) in market value of assets held in trust for deferred compensation | 459 | 21 | 483 | 104 | 355 | 963 | 707 | |||||||||||||||||||||
Total revenue - as adjusted and on a fully tax equivalent basis | $ | 112,518 | $ | 112,432 | $ | 111,915 | $ | 113,758 | $ | 109,677 | $ | 336,865 | $ | 330,150 | ||||||||||||||
Total revenue - unadjusted | $ | 105,824 | $ | 108,434 | $ | 106,058 | $ | 105,801 | $ | 100,628 | $ | 320,316 | $ | 298,586 | ||||||||||||||
Core non-interest income to revenues ratio | 33.51 | % | 35.01 | % | 34.56 | % | 34.18 | % | 29.49 | % | 34.36 | % | 27.81 | % | ||||||||||||||
Core non-interest income to revenues ratio (without adjustments) | 34.88 | % | 37.77 | % | 36.18 | % | 34.30 | % | 28.37 | % | 36.29 | % | 25.22 | % |
3Q13 | 3Q12 | 2Q13 | |||||||||||||||||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||||||||||||||
Interest Earning Assets: | |||||||||||||||||||||||||||||||||
Loans (1) (2) (3): | |||||||||||||||||||||||||||||||||
Commercial related credits | |||||||||||||||||||||||||||||||||
Commercial | $ | 1,166,887 | $ | 12,263 | 4.11 | % | $ | 1,071,538 | 12,640 | 4.62 | % | $ | 1,206,740 | $ | 12,613 | 4.18 | % | ||||||||||||||||
Commercial loans collateralized by assignment of lease payments | 1,429,169 | 13,726 | 3.84 | 1,193,462 | 13,119 | 4.40 | 1,340,854 | 12,987 | 3.87 | ||||||||||||||||||||||||
Real estate commercial | 1,654,311 | 19,995 | 4.73 | 1,778,414 | 22,836 | 5.02 | 1,718,979 | 19,736 | 4.54 | ||||||||||||||||||||||||
Real estate construction | 128,115 | 1,324 | 4.04 | 154,622 | 1,618 | 4.09 | 133,705 | 1,270 | 3.76 | ||||||||||||||||||||||||
Total commercial related credits | 4,378,482 | 47,308 | 4.23 | 4,198,036 | 50,213 | 4.68 | 4,400,278 | 46,606 | 4.19 | ||||||||||||||||||||||||
Other loans | |||||||||||||||||||||||||||||||||
Real estate residential | 307,555 | 2,961 | 3.85 | 310,374 | 3,425 | 4.41 | 306,978 | 3,042 | 3.96 | ||||||||||||||||||||||||
Home equity | 277,122 | 2,993 | 4.28 | 317,854 | 3,488 | 4.37 | 286,640 | 3,076 | 4.30 | ||||||||||||||||||||||||
Indirect | 250,003 | 3,365 | 5.34 | 202,583 | 2,984 | 5.86 | 231,577 | 3,176 | 5.50 | ||||||||||||||||||||||||
Consumer loans | 61,950 | 599 | 3.84 | 69,563 | 578 | 3.31 | 70,603 | 624 | 3.54 | ||||||||||||||||||||||||
Total other loans | 896,630 | 9,918 | 4.39 | 900,374 | 10,475 | 4.63 | 895,798 | 9,918 | 4.44 | ||||||||||||||||||||||||
Total loans, excluding covered loans | 5,275,112 | 57,226 | 4.30 | 5,098,410 | 60,688 | 4.74 | 5,296,076 | 56,524 | 4.28 | ||||||||||||||||||||||||
Covered loans | 281,896 | 4,391 | 6.18 | 536,697 | 7,967 | 5.91 | 335,148 | 4,255 | 5.09 | ||||||||||||||||||||||||
Total loans | 5,557,008 | 61,617 | 4.40 | 5,635,107 | 68,655 | 4.85 | 5,631,224 | 60,779 | 4.33 | ||||||||||||||||||||||||
Taxable investment securities | 1,292,366 | 6,330 | 1.96 | 1,418,549 | 7,287 | 2.05 | 1,377,368 | 6,280 | 1.82 | ||||||||||||||||||||||||
Investment securities exempt from federal income taxes (3) | 946,396 | 12,577 | 5.32 | 843,908 | 11,665 | 5.53 | 933,442 | 12,559 | 5.38 | ||||||||||||||||||||||||
Federal funds sold | 6,793 | 7 | 0.40 | — | — | — | 2,879 | 2 | 0.27 | ||||||||||||||||||||||||
Other interest earning deposits | 316,210 | 193 | 0.24 | 483,622 | 312 | 0.26 | 183,010 | 92 | 0.20 | ||||||||||||||||||||||||
Total interest earning assets | $ | 8,118,773 | $ | 80,724 | 3.94 | $ | 8,381,186 | $ | 87,919 | 4.17 | $ | 8,127,923 | $ | 79,712 | 3.93 | ||||||||||||||||||
Non-interest earning assets | 1,142,518 | 1,134,973 | 1,161,459 | ||||||||||||||||||||||||||||||
Total assets | $ | 9,261,291 | $ | 9,516,159 | $ | 9,289,382 | |||||||||||||||||||||||||||
Interest Bearing Liabilities: | |||||||||||||||||||||||||||||||||
Core funding: | |||||||||||||||||||||||||||||||||
Money market and NOW accounts | $ | 2,695,479 | $ | 862 | 0.13 | % | $ | 2,601,181 | $ | 1,026 | 0.16 | % | $ | 2,675,189 | $ | 833 | 0.12 | % | |||||||||||||||
Savings accounts | 844,647 | 137 | 0.06 | 796,229 | 181 | 0.09 | 840,154 | 136 | 0.06 | ||||||||||||||||||||||||
Certificates of deposit | 1,309,539 | 1,443 | 0.44 | 1,676,047 | 2,826 | 0.70 | 1,406,693 | 1,893 | 0.55 | ||||||||||||||||||||||||
Customer repurchase agreements | 205,946 | 113 | 0.22 | 211,966 | 149 | 0.28 | 187,496 | 101 | 0.22 | ||||||||||||||||||||||||
Total core funding | 5,055,611 | 2,555 | 0.20 | 5,285,423 | 4,182 | 0.31 | 5,109,532 | 2,963 | 0.23 | ||||||||||||||||||||||||
Wholesale funding: | |||||||||||||||||||||||||||||||||
Brokered accounts (includes fee expense) | 263,448 | 1,989 | 3.00 | 429,342 | 3,341 | 3.10 | 294,277 | 2,271 | 3.10 | ||||||||||||||||||||||||
Other borrowings | 215,041 | 1,367 | 2.49 | 392,871 | 3,065 | 3.05 | 216,372 | 1,404 | 2.57 | ||||||||||||||||||||||||
Total wholesale funding | 478,489 | 3,356 | 2.47 | 822,213 | 6,406 | 2.73 | 510,649 | 3,675 | 2.55 | ||||||||||||||||||||||||
Total interest bearing liabilities | $ | 5,534,100 | $ | 5,911 | 0.42 | $ | 6,107,636 | $ | 10,588 | 0.69 | $ | 5,620,181 | $ | 6,638 | 0.47 | ||||||||||||||||||
Non-interest bearing deposits | 2,258,357 | 2,020,762 | 2,179,284 | ||||||||||||||||||||||||||||||
Other non-interest bearing liabilities | 171,336 | 139,915 | 192,553 | ||||||||||||||||||||||||||||||
Stockholders' equity | 1,297,498 | 1,247,846 | 1,297,364 | ||||||||||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 9,261,291 | $ | 9,516,159 | $ | 9,289,382 | |||||||||||||||||||||||||||
Net interest income/interest rate spread (4) | $ | 74,813 | 3.52 | % | $ | 77,331 | 3.48 | % | $ | 73,074 | 3.46 | % | |||||||||||||||||||||
Taxable equivalent adjustment | 5,905 | 5,256 | 5,594 | ||||||||||||||||||||||||||||||
Net interest income, as reported | $ | 68,908 | $ | 72,075 | $ | 67,480 | |||||||||||||||||||||||||||
Net interest margin (5) | 3.37 | % | 3.42 | % | 3.33 | % | |||||||||||||||||||||||||||
Tax equivalent effect | 0.29 | % | 0.25 | % | 0.28 | % | |||||||||||||||||||||||||||
Net interest margin on a fully tax equivalent basis (5) | 3.66 | % | 3.67 | % | 3.61 | % |
(1) | Non-accrual loans are included in average loans. |
(2) | Interest income includes amortization of deferred loan origination fees of $839 thousand, $749 thousand, and $817 thousand for the three months ended September 30, 2013, September 30, 2012, and June 30, 2013, respectively. |
(3) | Non-taxable loan and investment income is presented on a fully tax equivalent basis assuming a 35% tax rate. |
(4) | Interest rate spread represents the difference between the average yield on interest earning assets and the average cost of interest bearing liabilities and is presented on a fully tax equivalent basis. |
(5) | Net interest margin represents net interest income as a percentage of average interest earning assets. |
Nine Months Ended September 30, | ||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||||||
Interest Earning Assets: | ||||||||||||||||||||||
Loans (1) (2) (3): | ||||||||||||||||||||||
Commercial related credits | ||||||||||||||||||||||
Commercial | $ | 1,193,034 | $ | 37,436 | 4.14 | % | $ | 1,068,339 | 38,340 | 4.72 | % | |||||||||||
Commercial loans collateralized by assignment of lease payments | 1,357,417 | 39,512 | 3.88 | 1,182,512 | 40,222 | 4.54 | ||||||||||||||||
Real estate commercial | 1,702,494 | 60,475 | 4.68 | 1,829,232 | 70,582 | 5.07 | ||||||||||||||||
Real estate construction | 125,184 | 3,714 | 3.91 | 146,642 | 4,562 | 4.09 | ||||||||||||||||
Total commercial related credits | 4,378,129 | 141,137 | 4.25 | 4,226,725 | 153,706 | 4.78 | ||||||||||||||||
Other loans | ||||||||||||||||||||||
Real estate residential | 309,075 | 9,288 | 4.01 | 311,318 | 10,616 | 4.55 | ||||||||||||||||
Home equity | 287,198 | 9,259 | 4.31 | 325,120 | 10,732 | 4.41 | ||||||||||||||||
Indirect | 231,383 | 9,563 | 5.53 | 194,064 | 8,865 | 6.10 | ||||||||||||||||
Consumer loans | 67,608 | 1,830 | 3.62 | 69,666 | 1,658 | 3.18 | ||||||||||||||||
Total other loans | 895,264 | 29,940 | 4.47 | 900,168 | 31,871 | 4.73 | ||||||||||||||||
Total loans, excluding covered loans | 5,273,393 | 171,077 | 4.34 | 5,126,893 | 185,577 | 4.84 | ||||||||||||||||
Covered loans | 346,721 | 13,328 | 5.14 | 591,086 | 26,228 | 5.93 | ||||||||||||||||
Total loans | 5,620,114 | 184,405 | 4.39 | 5,717,979 | 211,805 | 4.95 | ||||||||||||||||
Taxable investment securities | 1,383,975 | 18,749 | 1.81 | 1,554,243 | 27,053 | 2.32 | ||||||||||||||||
Investment securities exempt from federal income taxes (3) | 930,653 | 37,537 | 5.38 | 798,660 | 33,268 | 5.55 | ||||||||||||||||
Federal funds sold | 3,249 | 9 | 0.37 | — | — | — | ||||||||||||||||
Other interest earning deposits | 232,529 | 420 | 0.24 | 329,252 | 639 | 0.26 | ||||||||||||||||
Total interest earning assets | $ | 8,170,520 | $ | 241,120 | 3.95 | $ | 8,400,134 | $ | 272,765 | 4.34 | ||||||||||||
Non-interest earning assets | 1,162,210 | 1,176,758 | ||||||||||||||||||||
Total assets | $ | 9,332,730 | $ | 9,576,892 | ||||||||||||||||||
Interest Bearing Liabilities: | ||||||||||||||||||||||
Core funding: | ||||||||||||||||||||||
Money market and NOW accounts | $ | 2,702,567 | $ | 2,622 | 0.13 | % | $ | 2,619,297 | $ | 3,278 | 0.17 | % | ||||||||||
Savings accounts | 835,754 | 409 | 0.07 | 784,706 | 642 | 0.11 | ||||||||||||||||
Certificates of deposit | 1,408,866 | 5,734 | 0.56 | 1,777,611 | 9,970 | 0.78 | ||||||||||||||||
Customer repurchase agreements | 191,789 | 312 | 0.22 | 203,289 | 409 | 0.27 | ||||||||||||||||
Total core funding | 5,138,976 | 9,077 | 0.23 | 5,384,903 | 14,299 | 0.35 | ||||||||||||||||
Wholesale funding: | ||||||||||||||||||||||
Brokered accounts (includes fee expense) | 283,894 | 6,509 | 3.07 | 441,943 | 10,302 | 3.11 | ||||||||||||||||
Other borrowings | 230,021 | 4,407 | 2.53 | 415,565 | 9,823 | 3.11 | ||||||||||||||||
Total wholesale funding | 513,915 | 10,916 | 2.51 | 857,508 | 20,125 | 2.75 | ||||||||||||||||
Total interest bearing liabilities | $ | 5,652,891 | $ | 19,993 | 0.47 | $ | 6,242,411 | $ | 34,424 | 0.74 | ||||||||||||
Non-interest bearing deposits | 2,194,648 | 1,924,656 | ||||||||||||||||||||
Other non-interest bearing liabilities | 193,203 | 131,890 | ||||||||||||||||||||
Stockholders' equity | 1,291,988 | 1,277,935 | ||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 9,332,730 | $ | 9,576,892 | ||||||||||||||||||
Net interest income/interest rate spread (4) | $ | 221,127 | 3.48 | % | $ | 238,341 | 3.60 | % | ||||||||||||||
Taxable equivalent adjustment | 17,054 | 15,069 | ||||||||||||||||||||
Net interest income, as reported | $ | 204,073 | $ | 223,272 | ||||||||||||||||||
Net interest margin (5) | 3.34 | % | 3.55 | % | ||||||||||||||||||
Tax equivalent effect | 0.28 | % | 0.24 | % | ||||||||||||||||||
Net interest margin on a fully tax equivalent basis (5) | 3.62 | % | 3.79 | % |
(1) | Non-accrual loans are included in average loans. |
(2) | Interest income includes amortization of deferred loan origination fees of $2.6 million and $2.5 million for the nine months ended September 30, 2013 and 2012, respectively. |
(3) | Non-taxable loan and investment income is presented on a fully tax equivalent basis assuming a 35% tax rate. |
(4) | Interest rate spread represents the difference between the average yield on interest earning assets and the average cost of interest bearing liabilities and is presented on a fully tax equivalent basis. |
(5) | Net interest margin represents net interest income as a percentage of average interest earning assets. |