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)
|
Page
|
||
Item 1.
|
||
1
|
||
2
|
||
3
|
||
4
|
||
5
|
||
Item 2.
|
17
|
|
Item 3.
|
35
|
|
Item 4.
|
35
|
|
Item 1.
|
36
|
|
Item 1A.
|
36
|
|
Item 2.
|
39
|
|
Item 3.
|
39
|
|
Item 4.
|
39
|
|
Item 5.
|
40
|
|
Item 6.
|
41
|
|
42
|
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June
30,
|
June
30,
|
|||||||||||||||
(in
thousands except per share)
|
2009
|
2008
|
2009
|
2008
|
||||||||||||
Interest
Income
|
||||||||||||||||
Loans
|
$ | 29,250 | $ | 37,334 | $ | 59,051 | $ | 78,637 | ||||||||
Taxable
securities
|
4,195 | 4,895 | 8,403 | 9,875 | ||||||||||||
Tax-exempt
securities
|
2,076 | 1,999 | 4,089 | 4,000 | ||||||||||||
Federal
funds sold and deposits in banks
|
9 | 95 | 16 | 244 | ||||||||||||
Total
interest income
|
35,530 | 44,323 | 71,559 | 92,756 | ||||||||||||
Interest
Expense
|
||||||||||||||||
Deposits
|
5,874 | 11,461 | 12,766 | 26,296 | ||||||||||||
Federal
Home Loan Bank and Federal Reserve Bank borrowings
|
700 | 1,995 | 1,465 | 4,577 | ||||||||||||
Long-term
obligations
|
306 | 429 | 657 | 916 | ||||||||||||
Other
borrowings
|
119 | 164 | 237 | 366 | ||||||||||||
Total
interest expense
|
6,999 | 14,049 | 15,125 | 32,155 | ||||||||||||
Net
Interest Income
|
28,531 | 30,274 | 56,434 | 60,601 | ||||||||||||
Provision
for loan and lease losses
|
21,000 | 15,350 | 32,000 | 17,426 | ||||||||||||
Net
interest income after provision for loan and lease losses
|
7,531 | 14,924 | 24,434 | 43,175 | ||||||||||||
Noninterest
Income
|
||||||||||||||||
Service
charges and other fees
|
3,562 | 3,738 | 7,176 | 7,306 | ||||||||||||
Merchant
services fees
|
1,880 | 2,162 | 3,650 | 4,078 | ||||||||||||
Redemption
of Visa and Mastercard shares
|
49 | 1,066 | 49 | 3,028 | ||||||||||||
Gain
on sale of investment securities, net
|
- - | - - | - - | 882 | ||||||||||||
Bank
owned life insurance ("BOLI")
|
516 | 549 | 1,017 | 1,054 | ||||||||||||
Other
|
993 | 1,790 | 2,082 | 3,114 | ||||||||||||
Total
noninterest income
|
7,000 | 9,305 | 13,974 | 19,462 | ||||||||||||
Noninterest
Expense
|
||||||||||||||||
Compensation
and employee benefits
|
12,296 | 12,348 | 24,148 | 25,744 | ||||||||||||
Occupancy
|
2,937 | 3,199 | 5,982 | 6,458 | ||||||||||||
Merchant
processing
|
879 | 904 | 1,693 | 1,770 | ||||||||||||
Advertising
and promotion
|
687 | 637 | 1,379 | 1,218 | ||||||||||||
Data
processing
|
1,003 | 783 | 1,964 | 1,598 | ||||||||||||
Legal
and professional fees
|
1,019 | 765 | 1,986 | 714 | ||||||||||||
Taxes,
licenses and fees
|
597 | 796 | 1,393 | 1,547 | ||||||||||||
Regulatory
premiums
|
2,492 | 394 | 3,499 | 836 | ||||||||||||
Net
cost of operation of other real estate
|
225 | - - | 272 | (23 | ) | |||||||||||
Other
|
3,179 | 3,541 | 6,179 | 7,059 | ||||||||||||
Total
noninterest expense
|
25,314 | 23,367 | 48,495 | 46,921 | ||||||||||||
Income
(loss) before income taxes
|
(10,783 | ) | 862 | (10,087 | ) | 15,716 | ||||||||||
Provision
(benefit) for income taxes
|
(5,253 | ) | (1,074 | ) | (6,069 | ) | 2,803 | |||||||||
Net
Income (Loss)
|
$ | (5,530 | ) | $ | 1,936 | $ | (4,018 | ) | $ | 12,913 | ||||||
Net
Income (Loss) Applicable to Common Shareholders
|
$ | (6,634 | ) | $ | 1,903 | $ | (6,222 | ) | $ | 12,787 | ||||||
Earnings
(loss) per common share
|
||||||||||||||||
Basic
|
$ | (0.37 | ) | $ | 0.11 | $ | (0.35 | ) | $ | 0.72 | ||||||
Diluted
|
$ | (0.37 | ) | $ | 0.11 | $ | (0.35 | ) | $ | 0.71 | ||||||
Dividends
paid per common share
|
$ | 0.01 | $ | 0.17 | $ | 0.05 | $ | 0.34 | ||||||||
Weighted
average number of common shares outstanding
|
18,002 | 17,898 | 17,991 | 17,874 | ||||||||||||
Weighted
average number of diluted common shares outstanding
|
18,002 | 18,021 | 17,991 | 17,998 |
June
30,
|
December
31,
|
|||||||||||||||
(in
thousands)
|
2009
|
2008
|
||||||||||||||
ASSETS
|
||||||||||||||||
Cash
and due from banks
|
$ | 106,507 | $ | 84,787 | ||||||||||||
Interest-earning
deposits with banks
|
226 | 3,943 | ||||||||||||||
Total
cash and cash equivalents
|
106,733 | 88,730 | ||||||||||||||
Securities
available for sale at fair value (amortized cost of $536,298 and $525,110,
respectively)
|
546,404 | 528,918 | ||||||||||||||
Federal
Home Loan Bank stock at cost
|
11,607 | 11,607 | ||||||||||||||
Loans
held for sale
|
2,272 | 1,964 | ||||||||||||||
Loans,
net of deferred loan fees of ($4,278) and ($4,033),
respectively
|
2,119,443 | 2,232,332 | ||||||||||||||
Less:
allowance for loan and lease losses
|
48,880 | 42,747 | ||||||||||||||
Loans,
net
|
2,070,563 | 2,189,585 | ||||||||||||||
Interest
receivable
|
10,474 | 11,646 | ||||||||||||||
Premises
and equipment, net
|
63,445 | 61,139 | ||||||||||||||
Other
real estate owned
|
8,369 | 2,874 | ||||||||||||||
Goodwill
|
95,519 | 95,519 | ||||||||||||||
Core
deposit intangible, net
|
5,368 | 5,908 | ||||||||||||||
Other
assets
|
101,103 | 99,189 | ||||||||||||||
Total
Assets
|
$ | 3,021,857 | $ | 3,097,079 | ||||||||||||
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
||||||||||||||||
Deposits:
|
||||||||||||||||
Non-interest
bearing
|
$ | 491,617 | $ | 466,078 | ||||||||||||
Interest-bearing
|
1,861,709 | 1,916,073 | ||||||||||||||
Total
deposits
|
2,353,326 | 2,382,151 | ||||||||||||||
Federal
Home Loan Bank and Federal Reserve Bank borrowings
|
161,000 | 200,000 | ||||||||||||||
Securities
sold under agreements to repurchase
|
25,000 | 25,000 | ||||||||||||||
Other
borrowings
|
- - | 201 | ||||||||||||||
Long-term
subordinated debt
|
25,636 | 25,603 | ||||||||||||||
Other
liabilities
|
45,024 | 48,739 | ||||||||||||||
Total
liabilities
|
2,609,986 | 2,681,694 | ||||||||||||||
Commitments
and contingent liabilities
|
||||||||||||||||
Shareholders'
equity:
|
||||||||||||||||
June
30,
|
December
31,
|
|||||||||||||||
2009
|
2008
|
|||||||||||||||
Preferred
stock (no par value, 76,898 aggregate liquidation
preference)
|
||||||||||||||||
Authorized
shares
|
2,000 | 2,000 | ||||||||||||||
Issued
and outstanding
|
77 | 77 | 74,015 | 73,743 | ||||||||||||
Common
Stock (no par value)
|
||||||||||||||||
Authorized
shares
|
63,033 | 63,033 | ||||||||||||||
Issued
and outstanding
|
18,264 | 18,151 | 234,016 | 233,192 | ||||||||||||
Retained
earnings
|
95,939 | 103,061 | ||||||||||||||
Accumulated
other comprehensive income
|
7,901 | 5,389 | ||||||||||||||
Total
shareholders' equity
|
411,871 | 415,385 | ||||||||||||||
Total
Liabilities and Shareholders' Equity
|
$ | 3,021,857 | $ | 3,097,079 |
|
See
accompanying notes to unaudited consolidated condensed financial
statements.
|
Preferred
Stock
|
Common
Stock
|
Accumulated
|
||||||||||||||||||||||||||
Other
|
Total
|
|||||||||||||||||||||||||||
Number
of
|
Number
of
|
Retained
|
Comprehensive
|
Shareholders'
|
||||||||||||||||||||||||
(in
thousands)
|
Shares
|
Amount
|
Shares
|
Amount
|
Earnings
|
Income
|
Equity
|
|||||||||||||||||||||
Balance
at January 1, 2008
|
- - | $ | - - | 17,953 | $ | 226,550 | $ | 110,169 | $ | 5,012 | $ | 341,731 | ||||||||||||||||
Cumulative
effect of applying EITF 06-4 consensus
|
- - | - - | - - | - - | (2,137 | ) | - - | (2,137 | ) | |||||||||||||||||||
Adjusted
balance
|
- - | - - | 17,953 | 226,550 | 108,032 | 5,012 | 339,594 | |||||||||||||||||||||
Comprehensive
income
|
||||||||||||||||||||||||||||
Net
income
|
- - | - - | - - | - - | 12,913 | - - | 12,913 | |||||||||||||||||||||
Other
comprehensive loss, net of tax:
|
||||||||||||||||||||||||||||
Net
unrealized loss from securities, net of reclassification
adjustments
|
- - | - - | - - | - - | - - | (4,816 | ) | (4,816 | ) | |||||||||||||||||||
Net
change in cash flow hedging instruments
|
- - | - - | - - | - - | - - | 438 | 438 | |||||||||||||||||||||
Other
comprehensive loss
|
(4,378 | ) | ||||||||||||||||||||||||||
Comprehensive
income
|
8,535 | |||||||||||||||||||||||||||
Common
stock issued - stock option and other plans
|
- - | - - | 93 | 1,399 | - - | - - | 1,399 | |||||||||||||||||||||
Common
stock issued - restricted stock awards, net of cancelled
awards
|
- - | - - | 65 | - - | - - | - - | - - | |||||||||||||||||||||
Share-based
payment
|
- - | - - | - - | 739 | - - | - - | 739 | |||||||||||||||||||||
Tax
benefit associated with share-based compensation
|
- - | - - | - - | 138 | - - | - - | 138 | |||||||||||||||||||||
Cash
dividends paid on common stock
|
- - | - - | - - | - - | (6,135 | ) | - - | (6,135 | ) | |||||||||||||||||||
Balance
at June 30, 2008
|
- - | $ | - - | 18,111 | $ | 228,826 | $ | 114,810 | $ | 634 | $ | 344,270 | ||||||||||||||||
Balance
at January 1, 2009
|
77 | $ | 73,743 | 18,151 | $ | 233,192 | $ | 103,061 | $ | 5,389 | $ | 415,385 | ||||||||||||||||
Comprehensive
loss:
|
||||||||||||||||||||||||||||
Net
loss
|
- - | - - | - - | - - | (4,018 | ) | - - | (4,018 | ) | |||||||||||||||||||
Other
comprehensive income, net of tax:
|
||||||||||||||||||||||||||||
Net
unrealized gain from securities, net of reclassification
adjustments
|
- - | - - | - - | - - | - - | 4,061 | 4,061 | |||||||||||||||||||||
Net
change in cash flow hedging instruments
|
- - | - - | - - | - - | - - | (879 | ) | (879 | ) | |||||||||||||||||||
Pension
plan plan liability adjustment, net
|
- - | - - | - - | - - | - - | (670 | ) | (670 | ) | |||||||||||||||||||
Other
comprehensive income
|
2,512 | |||||||||||||||||||||||||||
Comprehensive
loss
|
(1,506 | ) | ||||||||||||||||||||||||||
Accretion
of preferred stock discount
|
- - | 272 | - - | - - | (272 | ) | - - | - - | ||||||||||||||||||||
Common
stock issued - stock option and other plans
|
- - | 35 | 345 | - - | - - | 345 | ||||||||||||||||||||||
Common
stock issued - restricted stock awards, net of cancelled
awards
|
- - | - - | 78 | - - | - - | - - | - - | |||||||||||||||||||||
Share-based
payment
|
- - | - - | - - | 575 | - - | - - | 575 | |||||||||||||||||||||
Tax
benefit deficiency associated with share-based
compensation
|
- - | - - | - - | (96 | ) | - - | - - | (96 | ) | |||||||||||||||||||
Preferred
dividends
|
- - | - - | - - | - - | (1,922 | ) | - - | (1,922 | ) | |||||||||||||||||||
Cash
dividends paid on common stock
|
- - | - - | - - | - - | (910 | ) | - - | (910 | ) | |||||||||||||||||||
Balance
at June 30, 2009
|
77 | $ | 74,015 | 18,264 | $ | 234,016 | $ | 95,939 | $ | 7,901 | $ | 411,871 |
|
See
accompanying notes to unaudited consolidated condensed financial
statements.
|
Six
Months Ended June 30,
|
||||||||
(in
thousands)
|
2009
|
2008
|
||||||
Cash
Flows From Operating Activities
|
||||||||
Net
Income (Loss)
|
$ | (4,018 | ) | $ | 12,913 | |||
Adjustments
to reconcile net income to net cash provided by operating
activities
|
||||||||
Provision
for loan and lease losses
|
32,000 | 17,426 | ||||||
Deferred
income tax benefit
|
(2,925 | ) | (429 | ) | ||||
Excess
tax benefit from stock-based compensation
|
- - | (138 | ) | |||||
Stock-based
compensation expense
|
575 | 739 | ||||||
Depreciation,
amortization and accretion
|
3,435 | 3,664 | ||||||
Net
realized gain on sale of securities
|
- - | (882 | ) | |||||
Net
realized gain (loss) on sale of other assets
|
154 | (119 | ) | |||||
Gain
on termination of cash flow hedging instruments
|
(1,364 | ) | (467 | ) | ||||
Net
change in:
|
||||||||
Loans
held for sale
|
(308 | ) | 1,159 | |||||
Interest
receivable
|
1,172 | 2,333 | ||||||
Interest
payable
|
(1,558 | ) | (2,184 | ) | ||||
Other
assets
|
(857 | ) | (1,431 | ) | ||||
Other
liabilities
|
(2,559 | ) | (7,584 | ) | ||||
Net
cash provided by operating activities
|
23,747 | 25,000 | ||||||
Cash
Flows From Investing Activities
|
||||||||
Purchases
of securities available for sale
|
(43,951 | ) | (76,907 | ) | ||||
Proceeds
from sales of securities available for sale
|
- - | 51,358 | ||||||
Proceeds
from principal repayments and maturities of securities available for
sale
|
32,311 | 30,105 | ||||||
Loans
originated and acquired, net of principal collected
|
77,529 | 3,717 | ||||||
Purchases
of premises and equipment
|
(4,663 | ) | (7,019 | ) | ||||
Proceeds
from disposal of premises and equipment
|
10 | 114 | ||||||
Purchase
of FHLB stock
|
- - | (5,653 | ) | |||||
Proceeds
from termination of cash flow hedging instruments
|
- - | 8,093 | ||||||
Improvements
and other changes to other real estate owned
|
(6 | ) | - - | |||||
Proceeds
from sales of other real estate and other personal property
owned
|
3,571 | 204 | ||||||
Net
cash provided by investing activities
|
64,801 | 4,012 | ||||||
Cash
Flows From Financing Activities
|
||||||||
Net
decrease in deposits
|
(28,825 | ) | (99,137 | ) | ||||
Proceeds
from Federal Home Loan Bank and Federal Reserve Bank
borrowings
|
709,000 | 1,491,268 | ||||||
Repayment
from Federal Home Loan Bank and Federal Reserve Bank
borrowings
|
(748,000 | ) | (1,419,938 | ) | ||||
Proceeds
from repurchase agreement borrowings
|
- - | 25,000 | ||||||
Net
increase (decrease) in other borrowings
|
(201 | ) | 46 | |||||
Cash
dividends paid
|
(2,768 | ) | (6,135 | ) | ||||
Proceeds
from issuance of common stock
|
249 | 1,399 | ||||||
Excess
tax benefit from stock-based compensation
|
- - | 138 | ||||||
Net
cash used in financing activities
|
(70,545 | ) | (7,359 | ) | ||||
Increase
in cash and cash equivalents
|
18,003 | 21,653 | ||||||
Cash
and cash equivalents at beginning of period
|
88,730 | 93,975 | ||||||
Cash
and cash equivalents at end of period
|
$ | 106,733 | $ | 115,628 | ||||
Supplemental
Information:
|
||||||||
Cash
paid for interest
|
$ | 16,683 | $ | 34,339 | ||||
Cash
paid for income tax
|
$ | 500 | $ | 8,652 | ||||
Loans
transferred to other real estate owned
|
$ | 9,248 | $ | - - |
|
See
accompanying notes to unaudited consolidated condensed financial
statements.
|
NOTES
TO UNAUDITED CONSOLIDATED CONDENSED FINANCIAL
STATEMENTS
|
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
|||||||||||||||
(in
thousands except per share)
|
2009
|
2008
(1)
|
2009
|
2008
(1)
|
||||||||||||
Net
income (loss)
|
$ | (5,530 | ) | $ | 1,936 | $ | (4,018 | ) | $ | 12,913 | ||||||
Preferred
dividends
|
(961 | ) | - - | (1,922 | ) | - - | ||||||||||
Accretion
of issuance discount for preferred stock
|
(140 | ) | - - | (272 | ) | - - | ||||||||||
Dividends
and undistributed earnings allocated to unvested share-based payment
awards
|
(3 | ) | (33 | ) | (10 | ) | (126 | ) | ||||||||
Net
income (loss) applicable to common shareholders
|
$ | (6,634 | ) | $ | 1,903 | $ | (6,222 | ) | $ | 12,787 | ||||||
Basic
weighted average common shares outstanding
|
18,002 | 17,898 | 17,991 | 17,874 | ||||||||||||
Dilutive
effect of potential common shares from:
|
||||||||||||||||
Awards
granted under equity incentive program
|
- - | 123 | - - | 124 | ||||||||||||
Diluted
weighted average common shares outstanding (2)
|
18,002 | 18,021 | 17,991 | 17,998 | ||||||||||||
Earnings
(loss) per common share:
|
||||||||||||||||
Basic
|
$ | (0.37 | ) | $ | 0.11 | $ | (0.35 | ) | $ | 0.72 | ||||||
Diluted
(2)
|
$ | (0.37 | ) | $ | 0.11 | $ | (0.35 | ) | $ | 0.71 | ||||||
Potentially
dilutive securities that were not included in the computation of diluted
EPS because to do so would be anti-dilutive.
|
957 | 37 | 958 | 37 |
(1)
|
The
Company adopted FSP EITF 03-6-1 on January 1, 2009. All prior
periods have been restated to the current period’s
presentation.
|
(2)
|
Due
to the net loss applicable to common shareholders in the second quarter
and first six months of 2009, basic shares were used to calculate diluted
earnings per share. Adding dilutive securities to the
denominator would result in
anti-dilution.
|
Three
Months Ended June 30, 2009
|
||||||||||||||||
(in
thousands)
|
Commercial
Banking
|
Retail
Banking |
Other
|
Total
|
||||||||||||
Net
interest income
|
$ | 11,409 | $ | 11,930 | $ | 5,192 | $ | 28,531 | ||||||||
Provision
for loan and lease losses
|
(15,356 | ) | (5,644 | ) | - - | (21,000 | ) | |||||||||
Net
interest income after provision for loan and lease losses
|
(3,947 | ) | 6,286 | 5,192 | 7,531 | |||||||||||
Noninterest
income
|
642 | 2,213 | 4,145 | 7,000 | ||||||||||||
Noninterest
expense
|
(3,401 | ) | (6,309 | ) | (15,604 | ) | (25,314 | ) | ||||||||
Income
(loss) before income taxes
|
(6,706 | ) | 2,190 | (6,267 | ) | (10,783 | ) | |||||||||
Income
tax benefit
|
5,253 | |||||||||||||||
Net
loss
|
$ | (5,530 | ) | |||||||||||||
Total
assets
|
$ | 1,411,255 | $ | 872,534 | $ | 738,068 | $ | 3,021,857 | ||||||||
Three
Months Ended June 30, 2008
|
||||||||||||||||
(in
thousands)
|
Commercial
Banking
|
Retail
Banking |
Other
|
Total
|
||||||||||||
Net
interest income
|
$ | 11,391 | $ | 14,418 | $ | 4,465 | $ | 30,274 | ||||||||
Provision
for loan and lease losses
|
(10,240 | ) | (5,110 | ) | - - | (15,350 | ) | |||||||||
Net
interest income after provision for loan and lease losses
|
1,151 | 9,308 | 4,465 | 14,924 | ||||||||||||
Noninterest
income
|
1,140 | 5,399 | 2,766 | 9,305 | ||||||||||||
Noninterest
expense
|
(2,854 | ) | (10,028 | ) | (10,485 | ) | (23,367 | ) | ||||||||
Income
(loss) before income taxes
|
(563 | ) | 4,679 | (3,254 | ) | 862 | ||||||||||
Income
tax benefit
|
1,074 | |||||||||||||||
Net
income
|
$ | 1,936 | ||||||||||||||
Total
assets
|
$ | 1,388,252 | $ | 1,138,968 | $ | 642,387 | $ | 3,169,607 |
Six
Months Ended June 30, 2009
|
||||||||||||||||
(in
thousands)
|
Commercial
Banking
|
Retail
Banking |
Other
|
Total
|
||||||||||||
Net
interest income
|
$ | 21,682 | $ | 24,247 | $ | 10,505 | $ | 56,434 | ||||||||
Provision
for loan and lease losses
|
(21,786 | ) | (10,214 | ) | - - | (32,000 | ) | |||||||||
Net
interest income after provision for loan and lease losses
|
(104 | ) | 14,033 | 10,505 | 24,434 | |||||||||||
Noninterest
income
|
1,584 | 4,463 | 7,927 | 13,974 | ||||||||||||
Noninterest
expense
|
(7,797 | ) | (11,703 | ) | (28,995 | ) | (48,495 | ) | ||||||||
Income
(loss) before income taxes
|
(6,317 | ) | 6,793 | (10,563 | ) | (10,087 | ) | |||||||||
Income
tax benefit
|
6,069 | |||||||||||||||
Net
loss
|
$ | (4,018 | ) | |||||||||||||
Total
assets
|
$ | 1,411,255 | $ | 872,534 | $ | 738,068 | $ | 3,021,857 | ||||||||
Six
Months Ended June 30, 2008
|
||||||||||||||||
(in
thousands)
|
Commercial
Banking
|
Retail
Banking |
Other
|
Total
|
||||||||||||
Net
interest income
|
$ | 22,724 | $ | 29,843 | $ | 8,034 | $ | 60,601 | ||||||||
Provision
for loan and lease losses
|
(11,767 | ) | (5,659 | ) | - - | (17,426 | ) | |||||||||
Net
interest income after provision for loan and lease losses
|
10,957 | 24,184 | 8,034 | 43,175 | ||||||||||||
Noninterest
income
|
2,623 | 10,330 | 6,509 | 19,462 | ||||||||||||
Noninterest
expense
|
(5,834 | ) | (20,022 | ) | (21,065 | ) | (46,921 | ) | ||||||||
Income
(loss) before income taxes
|
7,746 | 14,492 | (6,522 | ) | 15,716 | |||||||||||
Income
tax provision
|
(2,803 | ) | ||||||||||||||
Net
income
|
$ | 12,913 | ||||||||||||||
Total
assets
|
$ | 1,388,252 | $ | 1,138,968 | $ | 642,387 | $ | 3,169,607 |
Fair
value at
|
Fair
Value Measurements at Reporting Date Using
|
|||||||||||||||
(in
thousands)
|
June
30, 2009
|
Level
1
|
Level
2
|
Level
3
|
||||||||||||
Assets
|
||||||||||||||||
Securities
Available for Sale
|
||||||||||||||||
U.S.
government-sponsored enterprise preferred stock
|
$ | 496 | $ | 496 | $ | - - | $ | - - | ||||||||
U.S.
government agency and government-sponsored enterprise mortgage-backed
securities and collateralized mortgage obligations
|
346,344 | - - | 346,344 | - - | ||||||||||||
State
and municipal debt securities
|
198,602 | - - | 198,602 | - - | ||||||||||||
Other
securities
|
962 | - - | 962 | - - | ||||||||||||
Total
securities available for sale
|
$ | 546,404 | $ | 496 | $ | 545,908 | $ | - - | ||||||||
Other
assets (Interest rate contracts)
|
$ | 9,489 | $ | - - | $ | 9,489 | $ | - - | ||||||||
Liabilities
|
||||||||||||||||
Other
liabilities (Interest rate contracts)
|
$ | 9,489 | $ | - - | $ | 9,489 | $ | - - |
Fair
value at
|
Fair
Value Measurements at Reporting Date Using
|
|||||||||||||||
(in
thousands)
|
June
30, 2009
|
Level
1
|
Level
2
|
Level
3
|
||||||||||||
Impaired
loans (1)
|
$ | 29,743 | $ | - - | $ | - - | $ | 29,743 | ||||||||
Other
real estate owned (2)
|
1,690 | - - | - - | 1,690 | ||||||||||||
$ | 31,433 | $ | - - | $ | - - | $ | 31,433 |
(1)
|
In
accordance with SFAS No. 114, Accounting by Creditors for
Impairment of a Loan, impaired loans totaling $44.2 million were
subject to specific valuation allowances and/or partial charge-offs
totaling $14.5 million during the quarter ended June 30,
2009.
|
(2)
|
Loans
receivable transferred to other real estate owned during the quarter ended
June 30, 2009 with a carrying amount of $1.9 million were written down to
their fair value of $1.7 million, less cost to sell of $169 thousand (or
$1.5 million), resulting in a loss of $399 thousand, which was charged to
the allowance for loan and lease losses during the
period.
|
Three
Months Ended
|
||||||||
June
30,
|
||||||||
(in
thousands)
|
2009
|
2008
|
||||||
Net
unrealized gain(loss) from available for sale securities arising during
the period, net of tax of ($1,625) and $3,712
|
$ | 2,949 | $ | (6,737 | ) | |||
Net
change in cash flow hedging instruments, net of tax of $249 and
$124
|
(452 | ) | (225 | ) | ||||
Pension
plan liability adjustment, net of tax of ($10) and $0
|
19 | - - | ||||||
Other
comprehensive income (loss)
|
$ | 2,516 | $ | (6,962 | ) | |||
Six
Months Ended
|
||||||||
June
30,
|
||||||||
(in
thousands)
|
2009
|
2008
|
||||||
Unrealized
gain(loss) from securities:
|
||||||||
Net
unrealized holding gain(loss) from available for sale securities arising
during the period, net of tax of $(2,237) and $2,345
|
$ | 4,061 | $ | (4,245 | ) | |||
Reclassification
adjustment of net gain from sale of available for sale securities included
in income, net of tax of $0 and $311
|
- - | (571 | ) | |||||
Net
unrealized gain (loss) from securities, net of reclassification
adjustment
|
4,061 | (4,816 | ) | |||||
Cash
flow hedging instruments:
|
||||||||
Net
unrealized gain from cash flow hedging instruments arising during the
period, net of tax of $0 and $(425)
|
- - | 739 | ||||||
Reclassification
adjustment of net gain included in income, net of tax of $485 and
$166
|
(879 | ) | (301 | ) | ||||
Net
change in cash flow hedging instruments
|
(879 | ) | 438 | |||||
Pension
plan liability adjustment:
|
||||||||
Unrecognized
net actuarial loss during period, net of tax of $379 and
$0
|
(689 | ) | - - | |||||
Less:
amortization of unrecognized net actuarial loss included in net periodic
pension cost, net of tax of ($10) and $0
|
19 | - - | ||||||
Pension
plan liability adjustment, net
|
(670 | ) | - - | |||||
Other
comprehensive income (loss)
|
$ | 2,512 | $ | (4,378 | ) |
Gross
|
Gross
|
|||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
||||||||||||||
(in
thousands)
|
Cost
|
Gains
|
Losses
|
Fair
Value
|
||||||||||||
June
30, 2009:
|
||||||||||||||||
U.S.
government-sponsored enterprise preferred stock
|
$ | 488 | $ | 76 | $ | (68 | ) | $ | 496 | |||||||
U.S.
government agency and government-sponsored enterprise mortgage-backed
securities and collateralized mortgage obligations
|
337,650 | 8,882 | (188 | ) | 346,344 | |||||||||||
State
and municipal securities
|
197,160 | 5,064 | (3,622 | ) | 198,602 | |||||||||||
Other
securities
|
1,000 | - - | (38 | ) | 962 | |||||||||||
Total
|
$ | 536,298 | $ | 14,022 | $ | (3,916 | ) | $ | 546,404 | |||||||
December
31, 2008:
|
||||||||||||||||
U.S.
government-sponsored enterprise
|
$ | 488 | $ | - - | $ | - - | $ | 488 | ||||||||
U.S.
government agency and government-sponsored enterprise mortgage-backed
securities and collateralized mortgage obligations
|
335,207 | 6,889 | (258 | ) | 341,838 | |||||||||||
State
and municipal securities
|
188,415 | 2,547 | (5,309 | ) | 185,653 | |||||||||||
Other
securities
|
1,000 | - - | (61 | ) | 939 | |||||||||||
Total
|
$ | 525,110 | $ | 9,436 | $ | (5,628 | ) | $ | 528,918 |
Less
than 12 Months
|
12
Months or More
|
Total
|
||||||||||||||||||||||
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
|||||||||||||||||||
(in
thousands)
|
Value
|
Losses
|
Value
|
Losses
|
Value
|
Losses
|
||||||||||||||||||
June
30, 2009:
|