x
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
¨
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
Washington
|
91-1422237
|
(State
or other jurisdiction of
incorporation
or organization)
|
(I.R.S.
Employer
Identification
Number)
|
1301
“A” Street
Tacoma,
Washington
|
98402-2156
|
(Address
of principal executive offices)
|
(Zip
Code)
|
|
The
number of shares of common stock outstanding at October 31, 2008 was
18,150,965
|
Page
|
||
Item 1.
|
||
1
|
||
2
|
||
3
|
||
4
|
||
5
|
||
Item 2.
|
14
|
|
Item 3.
|
22
|
|
Item 4.
|
23
|
|
Item 1.
|
24
|
|
Item 1A.
|
24
|
|
Item 2.
|
26
|
|
Item 3.
|
26
|
|
Item 4.
|
26
|
|
Item 5.
|
26
|
|
Item 6.
|
27
|
|
28
|
Three Months
Ended
|
Nine
Months
Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
(in
thousands except per share)
|
2008
|
2007
|
2008
|
2007
|
||||||||||||
Interest
Income
|
||||||||||||||||
Loans
|
$ | 35,590 | $ | 42,353 | $ | 114,227 | $ | 112,607 | ||||||||
Taxable
securities
|
4,615 | 4,625 | 14,490 | 14,067 | ||||||||||||
Tax-exempt
securities
|
1,997 | 2,005 | 5,997 | 5,925 | ||||||||||||
Federal
funds sold and deposits in banks
|
135 | 395 | 379 | 1,180 | ||||||||||||
Total
interest income
|
42,337 | 49,378 | 135,093 | 133,779 | ||||||||||||
Interest
Expense
|
||||||||||||||||
Deposits
|
10,148 | 16,841 | 36,444 | 42,617 | ||||||||||||
Federal
Home Loan Bank advances
|
1,887 | 2,454 | 6,464 | 8,117 | ||||||||||||
Long-term
obligations
|
423 | 584 | 1,339 | 1,604 | ||||||||||||
Other
borrowings
|
286 | 639 | 652 | 2,183 | ||||||||||||
Total
interest expense
|
12,744 | 20,518 | 44,899 | 54,521 | ||||||||||||
Net
Interest Income
|
29,593 | 28,860 | 90,194 | 79,258 | ||||||||||||
Provision
for loan and lease losses
|
10,500 | 1,231 | 27,926 | 2,198 | ||||||||||||
Net
interest income after provision for loan and lease losses
|
19,093 | 27,629 | 62,268 | 77,060 | ||||||||||||
Noninterest
Income
|
||||||||||||||||
Service
charges and other fees
|
3,823 | 3,561 | 11,129 | 9,813 | ||||||||||||
Merchant
services fees
|
2,081 | 2,251 | 6,159 | 6,344 | ||||||||||||
Redemption
of Visa and Mastercard shares
|
- | - | 3,028 | - | ||||||||||||
Gain
on sale of investment securities, net
|
- | - | 882 | - | ||||||||||||
Loss
on impairment of equity securities
|
(18,517 | ) | - | (18,517 | ) | - | ||||||||||
Bank
owned life insurance ("BOLI")
|
533 | 502 | 1,587 | 1,379 | ||||||||||||
Other
|
1,134 | 1,317 | 4,248 | 3,013 | ||||||||||||
Total
noninterest income
|
(10,946 | ) | 7,631 | 8,516 | 20,549 | |||||||||||
Noninterest
Expense
|
||||||||||||||||
Compensation
and employee benefits
|
12,173 | 12,159 | 37,917 | 34,365 | ||||||||||||
Occupancy
|
3,248 | 3,241 | 9,706 | 9,023 | ||||||||||||
Merchant
processing
|
961 | 880 | 2,731 | 2,587 | ||||||||||||
Advertising
and promotion
|
579 | 575 | 1,797 | 1,779 | ||||||||||||
Data
processing
|
909 | 743 | 2,507 | 1,863 | ||||||||||||
Legal
and professional fees
|
765 | 695 | 1,479 | 2,205 | ||||||||||||
Taxes,
licenses and fees
|
720 | 773 | 2,267 | 2,089 | ||||||||||||
Net
loss (gain) on sale of other real estate owned
|
4 | - | (19 | ) | - | |||||||||||
Other
|
4,032 | 3,359 | 11,927 | 9,182 | ||||||||||||
Total
noninterest expense
|
23,391 | 22,425 | 70,312 | 63,093 | ||||||||||||
Income
(loss) before income taxes
|
(15,244 | ) | 12,835 | 472 | 34,516 | |||||||||||
Provision
(benefit) for income taxes
|
(6,485 | ) | 3,579 | (3,682 | ) | 9,433 | ||||||||||
Net
Income (Loss)
|
$ | (8,759 | ) | $ | 9,256 | $ | 4,154 | $ | 25,083 | |||||||
Net
income (loss) per common share
|
||||||||||||||||
Basic
|
$ | (0.49 | ) | $ | 0.53 | $ | 0.23 | $ | 1.52 | |||||||
Diluted
|
$ | (0.49 | ) | $ | 0.53 | $ | 0.23 | $ | 1.51 | |||||||
Dividends
paid per common share
|
$ | 0.17 | $ | 0.17 | $ | 0.51 | $ | 0.49 | ||||||||
Weighted
average number of common shares outstanding
|
17,948 | 17,339 | 17,898 | 16,472 | ||||||||||||
Weighted
average number of diluted common shares outstanding
|
17,948 | 17,533 | 17,994 | 16,636 |
September
30,
|
December
31,
|
||||||||||
(in
thousands)
|
2008
|
2007
|
|||||||||
ASSETS
|
|||||||||||
Cash
and due from banks
|
$ | 81,555 | $ | 82,735 | |||||||
Interest-earning
deposits with banks
|
21,849 | 11,240 | |||||||||
Total
cash and cash equivalents
|
103,404 | 93,975 | |||||||||
Securities
available for sale at fair value (amortized cost of $535,620 and $558,685,
respectively)
|
536,277 | 561,366 | |||||||||
Federal
Home Loan Bank stock at cost
|
14,785 | 11,607 | |||||||||
Loans
held for sale
|
2,890 | 4,482 | |||||||||
Loans,
net of deferred loan fees of ($3,852) and ($3,931),
respectively
|
2,216,133 | 2,282,728 | |||||||||
Less:
allowance for loan and lease losses
|
35,814 | 26,599 | |||||||||
Loans,
net
|
2,180,319 | 2,256,129 | |||||||||
Interest
receivable
|
12,980 | 14,622 | |||||||||
Premises
and equipment, net
|
61,153 | 56,122 | |||||||||
Other
real estate owned
|
1,288 | 181 | |||||||||
Goodwill
|
95,519 | 96,011 | |||||||||
Core
deposit intangible, net
|
6,179 | 7,050 | |||||||||
Other
assets
|
90,186 | 77,168 | |||||||||
Total
Assets
|
$ | 3,104,980 | $ | 3,178,713 | |||||||
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|||||||||||
Deposits:
|
|||||||||||
Non-interest
bearing
|
$ | 498,815 | $ | 468,237 | |||||||
Interest-bearing
|
1,857,006 | 2,029,824 | |||||||||
Total
deposits
|
2,355,821 | 2,498,061 | |||||||||
Short-term
borrowings:
|
|||||||||||
Federal
Home Loan Bank advances
|
301,000 | 257,670 | |||||||||
Securities
sold under agreements to repurchase
|
25,000 | - | |||||||||
Other
borrowings
|
20,097 | 5,061 | |||||||||
Total
short-term borrowings
|
346,097 | 262,731 | |||||||||
Long-term
subordinated debt
|
25,582 | 25,519 | |||||||||
Other
liabilities
|
41,045 | 50,671 | |||||||||
Total
liabilities
|
2,768,545 | 2,836,982 | |||||||||
Commitments
and contingent liabilities (note 11)
|
|||||||||||
Shareholders'
equity:
|
|||||||||||
Preferred
stock (no par value)
|
- | - | |||||||||
Authorized,
2 million shares; none outstanding
|
|||||||||||
September
30,
|
December
31,
|
||||||||||
2008
|
2007
|
||||||||||
Common
Stock (no par value)
|
|||||||||||
Authorized
shares
|
63,034
|
63,034
|
|||||||||
Issued
and outstanding
|
18,147
|
17,953
|
229,680 | 226,550 | |||||||
Retained
earnings
|
102,965 | 110,169 | |||||||||
Accumulated
other comprehensive income
|
3,790 | 5,012 | |||||||||
Total
shareholders' equity
|
336,435 | 341,731 | |||||||||
Total
Liabilities and Shareholders' Equity
|
$ | 3,104,980 | $ | 3,178,713 |
See
accompanying notes to unaudited consolidated condensed financial
statements.
|
Common
Stock
|
Accumulated
|
|||||||||||||||||||
Other
|
Total
|
|||||||||||||||||||
Number
of
|
Retained
|
Comprehensive
|
Shareholders'
|
|||||||||||||||||
(in
thousands)
|
Shares
|
Amount
|
Earnings
|
Income
(Loss)
|
Equity
|
|||||||||||||||
Balance
at January 1, 2007
|
16,060 | $ | 166,763 | $ | 89,037 | $ | (3,453 | ) | $ | 252,347 | ||||||||||
Comprehensive
income:
|
||||||||||||||||||||
Net
income
|
- | - | 25,083 | - | 25,083 | |||||||||||||||
Other
comprehensive income, net of tax:
|
||||||||||||||||||||
Net
unrealized gain from securities, net of reclassification
adjustments
|
- | - | - | 1,911 | 1,911 | |||||||||||||||
Net
unrealized gain from cash flow hedging instruments
|
- | - | - | 794 | 794 | |||||||||||||||
Total
comprehensive income
|
27,788 | |||||||||||||||||||
Purchase
and retirement of common stock
|
(65 | ) | (2,121 | ) | - | - | (2,121 | ) | ||||||||||||
Acquisitions:
|
||||||||||||||||||||
Shares
issued to the shareholders of Mountain Bank Holding
Company
|
993 | 30,327 | - | - | 30,327 | |||||||||||||||
Converted
Mountain Bank Holding Company stock options
|
- | 1,325 | - | - | 1,325 | |||||||||||||||
Shares
issued to the shareholders of Town Center Bancorp
|
705 | 23,869 | - | - | 23,869 | |||||||||||||||
Converted
Town Center Bancorp stock options
|
- | 1,598 | - | - | 1,598 | |||||||||||||||
Issuance
of stock under stock option and other plans
|
139 | 2,098 | - | - | 2,098 | |||||||||||||||
Stock
award compensation expense
|
50 | 573 | - | - | 573 | |||||||||||||||
Stock
option compensation expense
|
- | 137 | - | - | 137 | |||||||||||||||
Tax
benefit associated with stock-based compensation
|
- | 235 | - | - | 235 | |||||||||||||||
Cash
dividends paid on common stock
|
- | - | (8,207 | ) | - | (8,207 | ) | |||||||||||||
Balance
at September 30, 2007
|
17,882 | $ | 224,804 | $ | 105,913 | $ | (748 | ) | $ | 329,969 | ||||||||||
Balance
at January 1, 2008
|
17,953 | $ | 226,550 | $ | 110,169 | $ | 5,012 | $ | 341,731 | |||||||||||
Cumulative
effect of change in accounting principle (note 2)
|
- | - | (2,137 | ) | - | (2,137 | ) | |||||||||||||
Comprehensive
income:
|
||||||||||||||||||||
Net
income
|
- | - | 4,154 | - | 4,154 | |||||||||||||||
Other
comprehensive loss, net of tax:
|
||||||||||||||||||||
Net
unrealized loss from securities, net of reclassification
adjustments
|
- | - | - | (1,302 | ) | (1,302 | ) | |||||||||||||
Net
unrealized gain from cash flow hedging instruments
|
- | - | - | 80 | 80 | |||||||||||||||
Total
comprehensive income
|
2,932 | |||||||||||||||||||
Issuance
of stock under stock option and other plans
|
132 | 1,860 | - | - | 1,860 | |||||||||||||||
Stock
award compensation expense
|
62 | 1,040 | - | - | 1,040 | |||||||||||||||
Tax
benefit associated with stock-based compensation
|
- | 230 | - | - | 230 | |||||||||||||||
Cash
dividends paid on common stock
|
- | - | (9,221 | ) | - | (9,221 | ) | |||||||||||||
Balance
at September 30, 2008
|
18,147 | $ | 229,680 | $ | 102,965 | $ | 3,790 | $ | 336,435 |
See
accompanying notes to unaudited consolidated condensed financial
statements.
|
Nine
Months Ended September 30,
|
||||||||
(in
thousands)
|
2008
|
2007
|
||||||
Cash
Flows From Operating Activities
|
||||||||
Net
Income
|
$ | 4,154 | $ | 25,083 | ||||
Adjustments
to reconcile net income to net cash provided by operating
activities
|
||||||||
Provision
for loan and lease losses
|
27,926 | 2,198 | ||||||
Deferred
income tax benefit
|
(12,318 | ) | (1,194 | ) | ||||
Excess
tax benefit from stock-based compensation
|
(230 | ) | (235 | ) | ||||
Stock-based
compensation expense
|
1,040 | 710 | ||||||
Depreciation,
amortization and accretion
|
5,389 | 4,607 | ||||||
Net
realized gain on sale of securities
|
(882 | ) | - | |||||
Net
realized gain on sale of other assets
|
(798 | ) | (8 | ) | ||||
Impairment
charge on investment securities
|
18,517 | - | ||||||
Net
change in:
|
||||||||
Loans
held for sale
|
1,592 | (875 | ) | |||||
Interest
receivable
|
1,642 | (2,074 | ) | |||||
Interest
payable
|
(4,591 | ) | 4,606 | |||||
Other
assets
|
(6,841 | ) | 3,109 | |||||
Other
liabilities
|
(5,951 | ) | (6,994 | ) | ||||
Net
cash provided by operating activities
|
28,649 | 28,933 | ||||||
Cash
Flows From Investing Activities
|
||||||||
Purchases
of securities available for sale
|
(86,902 | ) | (2,888 | ) | ||||
Proceeds
from sales of securities available for sale
|
51,358 | 28,467 | ||||||
Proceeds
from principal repayments and maturities of securities available for
sale
|
40,328 | 39,033 | ||||||
Proceeds
from maturities of securities held to maturity
|
- | 578 | ||||||
Loans
originated and acquired, net of principal collected
|
45,605 | (218,350 | ) | |||||
Purchases
of premises and equipment
|
(8,838 | ) | (4,003 | ) | ||||
Proceeds
from disposal of premises and equipment
|
115 | 212 | ||||||
Acquisition
of Mt. Rainier and Town Center, net of cash acquired
|
- | (32,429 | ) | |||||
Proceeds
from sales of Federal Reserve Bank stock
|
- | 310 | ||||||
Purchase
of FHLB stock
|
(3,178 | ) | - | |||||
Proceeds
from termination of cash flow hedging instruments
|
8,093 | - | ||||||
Proceeds
from sales of other real estate and other personal property
owned
|
204 | - | ||||||
Net
cash provided by(used in) investing activities
|
46,785 | (189,070 | ) | |||||
Cash
Flows From Financing Activities
|
||||||||
Net
increase(decrease) in deposits
|
(142,240 | ) | 149,758 | |||||
Proceeds
from Federal Home Loan Bank advances
|
1,784,268 | 2,353,626 | ||||||
Repayment
from Federal Home Loan Bank advances
|
(1,740,938 | ) | (2,315,151 | ) | ||||
Proceeds
from repurchase agreement borrowings
|
25,000 | - | ||||||
Repayment
of repurchase agreement borrowings
|
- | (20,000 | ) | |||||
Net
increase in other borrowings
|
15,036 | 10 | ||||||
Cash
dividends paid on common stock
|
(9,221 | ) | (8,207 | ) | ||||
Proceeds
from issuance of common stock
|
1,860 | 2,098 | ||||||
Repurchase
of common stock
|
- | (2,121 | ) | |||||
Excess
tax benefit from stock-based compensation
|
230 | 235 | ||||||
Net
cash provided by(used in) financing activities
|
(66,005 | ) | 160,248 | |||||
Increase
in cash and cash equivalents
|
9,429 | 111 | ||||||
Cash
and cash equivalents at beginning of period
|
93,975 | 104,344 | ||||||
Cash
and cash equivalents at end of period
|
$ | 103,404 | $ | 104,455 | ||||
Supplemental
Information:
|
||||||||
Cash
paid for interest
|
$ | 49,490 | $ | 49,915 | ||||
Cash
paid for income tax
|
$ | 9,916 | $ | 10,490 | ||||
Share-based
consideration issued for acquisitions
|
$ | - | $ | 57,119 | ||||
Loans
transferred to other real estate owned
|
$ | 1,288 | $ | - |
See
accompanying notes to unaudited consolidated condensed financial
statements.
|
NOTES TO UNAUDITED CONSOLIDATED CONDENSED FINANCIAL
STATEMENTS
|
(a)
|
Basis
of Presentation
|
(b)
|
Significant
Accounting Policies
|
For
The Three Months Ended
|
For
The Nine Months Ended
|
|||||||||||||||
(in
thousands except per share)
|
9/30/2008
|
9/30/2007
|
9/30/2008
|
9/30/2007
|
||||||||||||
Net
Income (Loss)
|
$ | (8,759 | ) | $ | 9,256 | $ | 4,154 | $ | 25,083 | |||||||
Weighted
average common shares outstanding (for basic calculation)
|
17,948 | 17,339 | 17,898 | 16,472 | ||||||||||||
Dilutive
effect of outstanding common stock options and nonvested restricted
shares
|
- | 194 | 96 | 164 | ||||||||||||
Weighted
average common stock and common equivalent shares outstanding
(for
diluted
calculation)
|
17,948 | 17,533 | 17,994 | 16,636 | ||||||||||||
Earnings
(loss) per common share - basic
|
$ | (0.49 | ) | $ | 0.53 | $ | 0.23 | $ | 1.52 | |||||||
Earnings
(loss) per common share - diluted
|
$ | (0.49 | ) | $ | 0.53 | $ | 0.23 | $ | 1.51 |
Three
Months Ended September 30, 2008
|
||||||||||||||||
(in
thousands)
|
Commercial
Banking
|
Retail
Banking
|
Other
|
Total
|
||||||||||||
Net
interest income
|
$ | 10,563 | $ | 13,198 | $ | 5,832 | $ | 29,593 | ||||||||
Provision
for loan and lease losses
|
- | - | (10,500 | ) | (10,500 | ) | ||||||||||
Net
interest income after provision for loan and lease losses
|
10,563 | 13,198 | (4,668 | ) | 19,093 | |||||||||||
Noninterest
income
|
846 | 2,171 | (13,963 | ) | (10,946 | ) | ||||||||||
Noninterest
expense
|
(10,610 | ) | (14,866 | ) | 2,085 | (23,391 | ) | |||||||||
Income
(loss) before income taxes
|
799 | 503 | (16,546 | ) | (15,244 | ) | ||||||||||
Income
tax benefit
|
6,485 | |||||||||||||||
Net
loss
|
$ | (8,759 | ) | |||||||||||||
Total
assets
|
$ | 1,423,184 | $ | 1,015,412 | $ | 666,384 | $ | 3,104,980 | ||||||||
Three
Months Ended September 30, 2007
|
||||||||||||||||
(in
thousands)
|
Commercial
Banking
|
Retail
Banking
|
Other
|
Total
|
||||||||||||
Net
interest income
|
$ | 11,893 | $ | 17,464 | $ | (497 | ) | $ | 28,860 | |||||||
Provision
for loan and lease losses
|
- | - | (1,231 | ) | (1,231 | ) | ||||||||||
Net
interest income after provision for loan and lease losses
|
11,893 | 17,464 | (1,728 | ) | 27,629 | |||||||||||
Noninterest
income
|
1,067 | 2,353 | 4,211 | 7,631 | ||||||||||||
Noninterest
expense
|
(3,341 | ) | (7,362 | ) | (11,722 | ) | (22,425 | ) | ||||||||
Income
(loss) before income taxes
|
9,619 | 12,455 | (9,239 | ) | 12,835 | |||||||||||
Income
tax provision
|
(3,579 | ) | ||||||||||||||
Net
income
|
$ | 9,256 | ||||||||||||||
Total
assets
|
$ | 1,399,262 | $ | 1,003,947 | $ | 719,535 | $ | 3,122,744 |
Nine
Months Ended September 30, 2008
|
||||||||||||||||
(in
thousands)
|
Commercial
Banking
|
Retail
Banking
|
Other
|
Total
|
||||||||||||
Net
interest income
|
$ | 37,283 | $ | 43,805 | $ | 9,106 | $ | 90,194 | ||||||||
Provision
for loan and lease losses
|
- | - | (27,926 | ) | (27,926 | ) | ||||||||||
Net
interest income after provision for loan and lease losses
|
37,283 | 43,805 | (18,820 | ) | 62,268 | |||||||||||
Noninterest
income
|
2,848 | 6,736 | (1,068 | ) | 8,516 | |||||||||||
Noninterest
expense
|
(16,577 | ) | (31,965 | ) | (21,770 | ) | (70,312 | ) | ||||||||
Income
(loss) before income taxes
|
23,554 | 18,576 | (41,658 | ) | 472 | |||||||||||
Income
tax benefit
|
3,682 | |||||||||||||||
Net
income
|
$ | 4,154 | ||||||||||||||
Total
assets
|
$ | 1,423,184 | $ | 1,015,412 | $ | 666,384 | $ | 3,104,980 | ||||||||
Nine
Months Ended September 30, 2007
|
||||||||||||||||
(in
thousands)
|
Commercial
Banking
|
Retail
Banking
|
Other
|
Total
|
||||||||||||
Net
interest income
|
$ | 21,055 | $ | 59,537 | $ | (1,334 | ) | $ | 79,258 | |||||||
Provision
for loan and lease losses
|
- | - | (2,198 | ) | (2,198 | ) | ||||||||||
Net
interest income after provision for loan and lease losses
|
21,055 | 59,537 | (3,532 | ) | 77,060 | |||||||||||
Noninterest
income
|
2,427 | 6,249 | 11,873 | 20,549 | ||||||||||||
Noninterest
expense
|
(8,719 | ) | (20,058 | ) | (34,316 | ) | (63,093 | ) | ||||||||
Income
(loss) before income taxes
|
14,763 | 45,728 | (25,975 | ) | 34,516 | |||||||||||
Income
tax provision
|
(9,433 | ) | ||||||||||||||
Net
income
|
$ | 25,083 | ||||||||||||||
Total
assets
|
$ | 1,399,262 | $ | 1,003,947 | $ | 719,535 | $ | 3,122,744 |
Fair
value at
|
Fair
Value Measurements at Reporting Date Using
|
|||||||||||||||
(in
thousands)
|
September
30, 2008
|
Level
1
|
Level
2
|
Level
3
|
||||||||||||
Assets
|
||||||||||||||||
Securities
available for sale
|
$ | 536,277 | $ | 1,512 | $ | 534,765 | $ | - | ||||||||
Interest
rate swap agreements
|
$ | 3,703 | $ | - | $ | 3,703 | $ | - | ||||||||
Liabilities
|
||||||||||||||||
Interest
rate swap agreements
|
$ | 3,703 | $ | - | $ | 3,703 | $ | - |
Fair
value at
|
Fair
Value Measurements at Reporting Date Using
|
|||||||||||||||
(in
thousands)
|
September
30, 2008
|
Level
1
|
Level
2
|
Level
3
|
||||||||||||
Impaired
loans
|
$ | 14,453 | $ | - | $ | - | $ | 14,453 | ||||||||
Other
real estate owned
|
1,449 | - | - | 1,449 | ||||||||||||
$ | 15,902 | $ | - | $ | - | $ | 15,902 |
Gross
|
Gross
|
|||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
||||||||||||||
(in
thousands)
|
Cost
|
Gains
|
Losses
|
Fair
Value
|
||||||||||||
September
30, 2008:
|
||||||||||||||||
U.S.
government-sponsored enterprise preferred stock
|
$ | 1,512 | $ | - | $ | - | $ | 1,512 | ||||||||
U.S.
government agency and government-sponsored enterprise mortgage-backed
securities and collateralized mortgage obligations
|
344,123 | 3,803 | (1,268 | ) | 346,658 | |||||||||||
State
and municipal securities
|
188,985 | 2,635 | (4,453 | ) | 187,167 | |||||||||||
Other
securities
|
1,000 | - | (60 | ) | 940 | |||||||||||
Total
|
$ | 535,620 | $ | 6,438 | $ | (5,781 | ) | $ | 536,277 | |||||||
December
31, 2007:
|
||||||||||||||||
U.S.
government-sponsored enterprise
|
$ | 61,137 | $ | 216 | $ | (53 | ) | $ | 61,300 | |||||||
U.S.
government agency and government-sponsored enterprise mortgage-backed
securities and collateralized mortgage obligations
|
304,475 | 1,132 | (1,865 | ) | 303,742 | |||||||||||
State
and municipal securities
|
190,673 | 3,782 | (490 | ) | 193,965 | |||||||||||
Other
securities
|
2,400 | - | (41 | ) | 2,359 | |||||||||||
Total
|
$ | 558,685 | $ | 5,130 | $ | (2,449 | ) | $ | 561,366 |
September
30, 2008
|
||||||||||||||||||||||||
Less
than 12 Months
|
12
Months or More
|
Total
|
||||||||||||||||||||||
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
|||||||||||||||||||
(in
thousands)
|
Value
|
Losses
|
Value
|
Losses
|
Value
|
Losses
|
||||||||||||||||||
U.S.
government agency and government-sponsored enterprise mortgage-backed
securities and collateralized mortgage obligations
|
$ | 11,679 | $ | (78 | ) | $ | 53,728 | $ | (1,190 | ) | $ | 65,407 | $ | (1,268 | ) | |||||||||
State
and municipal securities
|
95,609 | (4,037 | ) | 6,158 | (416 | ) | 101,767 | (4,453 | ) | |||||||||||||||
Other
securities
|
- | - | 940 | (60 | ) | 940 | (60 | ) | ||||||||||||||||
Total
|
$ | 107,288 | $ | (4,115 | ) | $ | 60,826 | $ | (1,666 | ) | $ | 168,114 | $ | (5,781 | ) |
December
31, 2007
|
||||||||||||||||||||||||
Less
than 12 Months
|
12
Months or More
|
Total
|
||||||||||||||||||||||
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
|||||||||||||||||||
(in
thousands)
|
Value
|
Losses
|
Value
|
Losses
|
Value
|
Losses
|
||||||||||||||||||
U.S.
government-sponsored enterprise
|
$ | - | $ | - | $ | 17,678 | $ | (53 | ) | $ | 17,678 | $ | (53 | ) | ||||||||||
U.S.
government agency and government-sponsored enterprise mortgage-backed
securities and collateralized mortgage obligations
|
16,897 | (28 | ) | 170,932 | (1,837 | ) | 187,829 | (1,865 | ) | |||||||||||||||
State
and municipal securities
|
19,725 | (112 | ) | 24,549 | (378 | ) | 44,274 | (490 | ) | |||||||||||||||
Other
securities
|
- | - | 959 | (41 | ) | 959 | (41 | ) | ||||||||||||||||
Total
|
$ | 36,622 | $ | (140 | ) | $ | 214,118 | $ | (2,309 | ) | $ | 250,740 | $ | (2,449 | ) |
Three
Months Ended
|
||||||||
September
30,
|
||||||||
(in
thousands)
|
2008
|
2007
|
||||||
Net
income(loss) as reported
|
$ | (8,759 | ) | $ | 9,256 | |||
Unrealized
gain from securities:
|
||||||||
Net
unrealized holding gain from available for sale securities arising during
the period, net of tax of ($1,935) and $(3,259)
|
3,513 | 5,974 | ||||||
Reclassification
adjustment of net (gain)loss from sale of available for sale securities
included in income, net of tax of $0 and $0
|
- | - | ||||||
Net
unrealized gain from securities, net of reclassification
adjustment
|
3,513 | 5,974 | ||||||
Unrealized
gain(loss) from cash flow hedging instruments:
|
||||||||
Net
unrealized gain from cash flow hedging instruments arising during the
period, net of tax of $0 and $(863)
|
- | 1,583 | ||||||
Reclassification
adjustment of net (gain)loss included in income, net of tax of $197 and
$(13)
|
(357 | ) | 24 | |||||
Net
unrealized gain(loss) from cash flow hedging instruments
|
(357 | ) | 1,607 | |||||
Total
comprehensive income (loss)
|
$ | (5,603 | ) | $ | 16,837 | |||
Nine
Months Ended
|
||||||||
September
30,
|
||||||||
(in
thousands)
|
2008
|
2007
|
||||||
Net
income as reported
|
$ | 4,154 | $ | 25,083 | ||||
Unrealized
gain(loss) from securities:
|
||||||||
Net
unrealized holding gain(loss) from available for sale securities arising
during the period, net of tax of $410 and $(992)
|
(731 | ) | 1,911 | |||||
Reclassification
adjustment of net gain from sale of available for sale securities included
in income, net of tax of $311 and $0
|
(571 | ) | - | |||||
Net
unrealized gain (loss) from securities, net of reclassification
adjustment
|
(1,302 | ) | 1,911 | |||||
Unrealized
gain from cash flow hedging instruments:
|
||||||||
Net
unrealized gain from cash flow hedging instruments arising during the
period, net of tax of $(425) and ($413)
|
739 | 756 | ||||||
Reclassification
adjustment of net (gain)loss included in income, net of tax of $363 and
$(20)
|
(659 | ) | 38 | |||||
Net
unrealized gain from cash flow hedging instruments
|
80 | 794 | ||||||
Total
comprehensive income
|
$ | 2,932 | $ | 27,788 |
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
(in
thousands)
|
2008
|
2007
|
2008
|
2007
|
||||||||||||
Beginning
balance
|
$ | 41,724 | $ | 21,339 | $ | 26,599 | $ | 20,182 | ||||||||
Balance
established through acquisition
|
- | 3,192 | - | 3,192 | ||||||||||||
Provision
charged to expense
|
10,500 | 1,231 | 27,926 | 2,198 | ||||||||||||
Loans
charged off
|
(16,481 | ) | (528 | ) | (19,384 | ) | (854 | ) | ||||||||
Recoveries
|
71 | 146 | 673 | 662 | ||||||||||||
Ending
balance
|
$ | 35,814 | $ | 25,380 | $ | 35,814 | $ | 25,380 |
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
(in
thousands)
|
2008
|
2007
|
2008
|
2007
|
||||||||||||
Beginning
balance
|
$ | 459 | $ | 339 | $ | 349 | $ | 339 | ||||||||
Net
changes in the allowance for unfunded commitments and letters of
credit
|
- | 10 | 110 | 10 | ||||||||||||
Ending
balance
|
$ | 459 | $ | 349 | $ | 459 | $ | 349 |
Three
months ending September 30,
|
Three
months ending September 30,
|
|||||||||||||||||||||||
2008
|
2007
|
|||||||||||||||||||||||
Average
|
Interest
|
Average
|
Average
|
Interest
|
Average
|
|||||||||||||||||||
(in
thousands)
|
Balances
(1)
|
Earned
/ Paid
|
Rate
|
Balances
(1)
|
Earned
/ Paid
|
Rate
|
||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||
Loans,
net (2)
|
$ | 2,241,574 | $ | 35,696 | 6.34 | % | $ | 2,102,281 | $ | 42,353 | 7.99 | % | ||||||||||||
Securities
(2)
|
558,990 | 7,806 | 5.56 | % | 572,124 | 7,727 | 5.36 | % | ||||||||||||||||
Interest-earning
deposits with banks and federal funds sold
|
30,330 | 135 | 1.78 | % | 28,082 | 395 | 5.58 | % | ||||||||||||||||
Total
interest-earning assets
|
2,830,894 | $ | 43,637 | 6.13 | % | 2,702,487 | $ | 50,475 | 7.41 | % | ||||||||||||||
Other
earning assets
|
47,795 | 44,595 | ||||||||||||||||||||||
Noninterest-earning
assets
|
227,867 | 222,115 | ||||||||||||||||||||||
Total
assets
|
$ | 3,106,556 | $ | 2,969,197 | ||||||||||||||||||||
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
||||||||||||||||||||||||
Certificates
of deposit
|
$ | 741,101 | $ | 6,048 | 3.25 | % | $ | 772,358 | $ | 8,976 | 4.61 | % | ||||||||||||
Savings
accounts
|
120,025 | 109 | 0.36 | % | 116,640 | 131 | 0.45 | % | ||||||||||||||||
Interest-bearing
demand and money market accounts
|
1,035,641 | 3,991 | 1.53 | % | 1,038,571 | 7,734 | 2.95 | % | ||||||||||||||||
Total
interest-bearing deposits
|
1,896,767 | 10,148 | 2.13 | % | 1,927,569 | 16,841 | 3.47 | % | ||||||||||||||||
Federal
Home Loan Bank advances
|
293,685 | 1,887 | 2.56 | % | 178,303 | 2,454 | 5.46 | % | ||||||||||||||||
Securities
sold under agreements to repurchase
|
25,000 | 121 | 1.93 | % | 44,457 | 637 | 5.68 | % | ||||||||||||||||
Other
borrowings and interest-bearing liabilities
|
18,634 | 165 | 3.52 | % | 370 | 2 | 2.14 | % | ||||||||||||||||
Long-term
subordinated debt
|
25,569 | 423 | 6.59 | % | 24,771 | 584 |