þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Illinois | 36-3873352 | |
(State of incorporation or organization) | (I.R.S. Employer Identification No.) |
Large accelerated filer þ | Accelerated filer o | Non-accelerated filer o (Do not check if a smaller reporting company) |
Smaller reporting company o |
Page | ||||||||
PART I. FINANCIAL INFORMATION | ||||||||
Financial Statements | 1 | |||||||
Managements Discussion and Analysis of Financial Condition and Results of Operations | 42 | |||||||
Quantitative and Qualitative Disclosures About Market Risk | 85 | |||||||
Controls and Procedures | 86 | |||||||
PART II. OTHER INFORMATION | ||||||||
ITEM 1. |
Legal Proceedings | NA | ||||||
Risk Factors | 86 | |||||||
Unregistered Sales of Equity Securities and Use of Proceeds | 86 | |||||||
ITEM 3. |
Defaults Upon Senior Securities | NA | ||||||
ITEM 4. |
Removed and Reserved | NA | ||||||
ITEM 5. |
Other Information | NA | ||||||
Exhibits | 87 | |||||||
Signatures | 88 | |||||||
EX-31.1 | ||||||||
EX-31.2 | ||||||||
EX-32.1 | ||||||||
EX-101 INSTANCE DOCUMENT | ||||||||
EX-101 SCHEMA DOCUMENT | ||||||||
EX-101 CALCULATION LINKBASE DOCUMENT | ||||||||
EX-101 LABELS LINKBASE DOCUMENT | ||||||||
EX-101 PRESENTATION LINKBASE DOCUMENT | ||||||||
EX-101 DEFINITION LINKBASE DOCUMENT |
(Unaudited) | (Unaudited) | |||||||||||
June 30, | December 31, | June 30, | ||||||||||
(In thousands, except share data) | 2011 | 2010 | 2010 | |||||||||
Assets |
||||||||||||
Cash and due from banks |
$ | 140,434 | $ | 153,690 | $ | 123,712 | ||||||
Federal funds sold and securities purchased under resale agreements |
43,634 | 18,890 | 28,664 | |||||||||
Interest-bearing deposits with other banks (balance restricted
for securitization investors of $23,276 at June 30, 2011, $36,620
at December 31, 2010, and $83,501 at June 30, 2010) |
990,308 | 865,575 | 1,110,123 | |||||||||
Available-for-sale securities, at fair value |
1,456,426 | 1,496,302 | 1,418,035 | |||||||||
Trading account securities |
509 | 4,879 | 38,261 | |||||||||
Federal Home Loan Bank and Federal Reserve Bank stock |
86,761 | 82,407 | 79,300 | |||||||||
Brokerage customer receivables |
29,736 | 24,549 | 24,291 | |||||||||
Mortgage loans held-for-sale, at fair value |
133,083 | 356,662 | 222,703 | |||||||||
Mortgage loans held-for-sale, at lower of cost or market |
5,881 | 14,785 | 15,278 | |||||||||
Loans, net of unearned income, excluding covered loans |
9,925,077 | 9,599,886 | 9,324,163 | |||||||||
Covered loans |
408,669 | 334,353 | 275,563 | |||||||||
Total loans |
10,333,746 | 9,934,239 | 9,599,726 | |||||||||
Less: Allowance for loan losses |
117,362 | 113,903 | 106,547 | |||||||||
Less: Allowance for covered loan losses |
7,443 | | | |||||||||
Net Loans (balance restricted for securitization investors of
$660,294 at June 30, 2011, $646,268 at December 31,
2010, and $598,857 at June 30, 2010) |
10,208,941 | 9,820,336 | 9,493,179 | |||||||||
Premises and equipment, net |
403,577 | 363,696 | 346,806 | |||||||||
FDIC indemnification asset |
110,049 | 118,182 | 114,102 | |||||||||
Accrued interest receivable and other assets |
389,634 | 366,438 | 374,172 | |||||||||
Trade date securities receivable |
322,091 | | 28,634 | |||||||||
Goodwill |
283,301 | 281,190 | 278,025 | |||||||||
Other intangible assets |
11,532 | 12,575 | 13,275 | |||||||||
Total assets |
$ | 14,615,897 | $ | 13,980,156 | $ | 13,708,560 | ||||||
Liabilities and Shareholders Equity |
||||||||||||
Deposits: |
||||||||||||
Non-interest bearing |
$ | 1,397,433 | $ | 1,201,194 | $ | 953,814 | ||||||
Interest bearing |
9,861,827 | 9,602,479 | 9,670,928 | |||||||||
Total deposits |
11,259,260 | 10,803,673 | 10,624,742 | |||||||||
Notes payable |
1,000 | 1,000 | 1,000 | |||||||||
Federal Home Loan Bank advances |
423,500 | 423,500 | 415,571 | |||||||||
Other borrowings |
432,706 | 260,620 | 218,424 | |||||||||
Secured borrowings owed to securitization investors |
600,000 | 600,000 | 600,000 | |||||||||
Subordinated notes |
40,000 | 50,000 | 55,000 | |||||||||
Junior subordinated debentures |
249,493 | 249,493 | 249,493 | |||||||||
Trade date securities payable |
2,243 | | 200 | |||||||||
Accrued interest payable and other liabilities |
134,309 | 155,321 | 159,394 | |||||||||
Total liabilities |
13,142,511 | 12,543,607 | 12,323,824 | |||||||||
Shareholders Equity: |
||||||||||||
Preferred stock, no par value; 20,000,000 shares authorized: |
||||||||||||
Series A $1,000 liquidation value; 50,000 shares issued
and outstanding at June 30, 2011, December 31,
2010 and June 30, 2010 |
49,704 | 49,640 | 49,379 | |||||||||
Series B $1,000 liquidation value; no shares issued and
outstanding at June 30, 2011 and December 31, 2010, and
250,000 shares issued and outstanding at June 30, 2010 |
| | 237,081 | |||||||||
Common stock, no par value; $1.00 stated value; 60,000,000
shares authorized; 34,988,497 shares issued at June
30, 2011, 34,864,068 shares issued at December 31, 2010,
and 31,084,417 shares issued at June 30, 2010 |
34,988 | 34,864 | 31,084 | |||||||||
Surplus |
969,315 | 965,203 | 680,261 | |||||||||
Treasury stock, at cost, 1,441 shares at June 30, 2011, no
shares at December 31, 2010, and 119 shares at June 30,
2010, respectively. |
(50 | ) | | (4 | ) | |||||||
Retained earnings |
415,297 | 392,354 | 381,969 | |||||||||
Accumulated other comprehensive income (loss) |
4,132 | (5,512 | ) | 4,966 | ||||||||
Total shareholders equity |
1,473,386 | 1,436,549 | 1,384,736 | |||||||||
Total liabilities and shareholders equity |
$ | 14,615,897 | $ | 13,980,156 | $ | 13,708,560 | ||||||
1
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
(In thousands, except per share data) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Interest income |
||||||||||||||||
Interest and fees on loans |
$ | 132,338 | $ | 135,800 | $ | 268,881 | $ | 265,342 | ||||||||
Interest bearing deposits with banks |
870 | 1,215 | 1,806 | 2,489 | ||||||||||||
Federal funds sold and securities purchased under resale agreements |
23 | 34 | 55 | 83 | ||||||||||||
Securities |
11,438 | 11,218 | 20,978 | 22,230 | ||||||||||||
Trading account securities |
10 | 343 | 23 | 364 | ||||||||||||
Federal Home Loan Bank and Federal Reserve Bank stock |
572 | 472 | 1,122 | 931 | ||||||||||||
Brokerage customer receivables |
194 | 166 | 360 | 304 | ||||||||||||
Total interest income |
145,445 | 149,248 | 293,225 | 291,743 | ||||||||||||
Interest expense |
||||||||||||||||
Interest on deposits |
22,404 | 31,626 | 46,360 | 64,838 | ||||||||||||
Interest on Federal Home Loan Bank advances |
4,010 | 4,094 | 7,968 | 8,440 | ||||||||||||
Interest on notes payable and other borrowings |
2,715 | 1,439 | 5,345 | 2,901 | ||||||||||||
Interest on secured borrowings owed to securitization investors |
2,994 | 3,115 | 6,034 | 6,109 | ||||||||||||
Interest on subordinated notes |
194 | 256 | 406 | 497 | ||||||||||||
Interest on junior subordinated debentures |
4,422 | 4,404 | 8,792 | 8,779 | ||||||||||||
Total interest expense |
36,739 | 44,934 | 74,905 | 91,564 | ||||||||||||
Net interest income |
108,706 | 104,314 | 218,320 | 200,179 | ||||||||||||
Provision for credit losses |
29,187 | 41,297 | 54,531 | 70,342 | ||||||||||||
Net interest income after provision for credit losses |
79,519 | 63,017 | 163,789 | 129,837 | ||||||||||||
Non-interest income |
||||||||||||||||
Wealth management |
10,601 | 9,193 | 20,837 | 17,860 | ||||||||||||
Mortgage banking |
12,817 | 7,985 | 24,448 | 17,713 | ||||||||||||
Service charges on deposit accounts |
3,594 | 3,371 | 6,905 | 6,703 | ||||||||||||
Gains on available-for-sale securities, net |
1,152 | 46 | 1,258 | 438 | ||||||||||||
Gain on bargain purchases |
746 | 26,494 | 10,584 | 37,388 | ||||||||||||
Trading (losses) gains |
(30 | ) | (1,617 | ) | (470 | ) | 4,344 | |||||||||
Other |
7,772 | 4,964 | 13,977 | 8,598 | ||||||||||||
Total non-interest income |
36,652 | 50,436 | 77,539 | 93,044 | ||||||||||||
Non-interest expense |
||||||||||||||||
Salaries and employee benefits |
53,079 | 50,649 | 109,178 | 99,721 | ||||||||||||
Equipment |
4,409 | 4,046 | 8,673 | 7,941 | ||||||||||||
Occupancy, net |
6,772 | 6,033 | 13,277 | 12,263 | ||||||||||||
Data processing |
3,147 | 3,669 | 6,670 | 7,076 | ||||||||||||
Advertising and marketing |
1,440 | 1,470 | 3,054 | 2,784 | ||||||||||||
Professional fees |
4,533 | 3,957 | 8,079 | 7,064 | ||||||||||||
Amortization of other intangible assets |
704 | 674 | 1,393 | 1,319 | ||||||||||||
FDIC insurance |
3,281 | 5,005 | 7,799 | 8,814 | ||||||||||||
OREO expenses, net |
6,577 | 5,843 | 12,385 | 7,181 | ||||||||||||
Other |
13,264 | 11,317 | 24,807 | 22,438 | ||||||||||||
Total non-interest expense |
97,206 | 92,663 | 195,315 | 176,601 | ||||||||||||
Income before taxes |
18,965 | 20,790 | 46,013 | 46,280 | ||||||||||||
Income tax expense |
7,215 | 7,781 | 17,861 | 17,253 | ||||||||||||
Net income |
$ | 11,750 | $ | 13,009 | $ | 28,152 | $ | 29,027 | ||||||||
Preferred stock dividends and discount accretion |
$ | 1,033 | $ | 4,943 | $ | 2,064 | $ | 9,887 | ||||||||
Net income applicable to common shares |
$ | 10,717 | $ | 8,066 | $ | 26,088 | $ | 19,140 | ||||||||
Net income per common share Basic |
$ | 0.31 | $ | 0.26 | $ | 0.75 | $ | 0.67 | ||||||||
Net income per common share Diluted |
$ | 0.25 | $ | 0.25 | $ | 0.60 | $ | 0.64 | ||||||||
Cash dividends declared per common share |
$ | | $ | | $ | 0.09 | $ | 0.09 | ||||||||
Weighted average common shares outstanding |
34,971 | 31,074 | 34,950 | 28,522 | ||||||||||||
Dilutive potential common shares |
8,438 | 1,267 | 8,437 | 1,203 | ||||||||||||
Average common shares and dilutive common shares |
43,409 | 32,341 | 43,387 | 29,725 | ||||||||||||
2
Accumulated | ||||||||||||||||||||||||||||
other | Total | |||||||||||||||||||||||||||
Preferred | Common | Treasury | Retained | comprehensive | shareholders | |||||||||||||||||||||||
(In thousands) | stock | stock | Surplus | stock | earnings | income (loss) | equity | |||||||||||||||||||||
Balance at December 31, 2009 |
$ | 284,824 | $ | 27,079 | $ | 589,939 | $ | (122,733 | ) | $ | 366,152 | $ | (6,622 | ) | $ | 1,138,639 | ||||||||||||
Comprehensive income: |
||||||||||||||||||||||||||||
Net income |
| | | | 29,027 | | 29,027 | |||||||||||||||||||||
Other comprehensive income,
net of tax: |
||||||||||||||||||||||||||||
Unrealized gains on
securities, net of
reclassification
adjustment |
| | | | | 12,040 | 12,040 | |||||||||||||||||||||
Unrealized losses on
derivative instruments |
| | | | | (296 | ) | (296 | ) | |||||||||||||||||||
Comprehensive income |
40,771 | |||||||||||||||||||||||||||
Cash dividends declared on common
stock |
| | | | (2,191 | ) | | (2,191 | ) | |||||||||||||||||||
Dividends on preferred stock |
| | | | (8,251 | ) | | (8,251 | ) | |||||||||||||||||||
Accretion on preferred stock |
1,636 | | | | (1,636 | ) | | | ||||||||||||||||||||
Common stock repurchases |
| | | (102 | ) | | | (102 | ) | |||||||||||||||||||
Stock-based compensation |
| | 2,505 | | | | 2,505 | |||||||||||||||||||||
Cumulative effect of change in
accounting for loan
securitizations |
| | | | (1,132 | ) | (156 | ) | (1,288 | ) | ||||||||||||||||||
Common stock issued for: |
||||||||||||||||||||||||||||
New issuance, net of costs |
| 3,795 | 83,791 | 122,831 | | | 210,417 | |||||||||||||||||||||
Exercise of stock options and
warrants |
| 108 | 2,198 | | | | 2,306 | |||||||||||||||||||||
Restricted stock awards |
| 41 | (91 | ) | | | | (50 | ) | |||||||||||||||||||
Employee stock purchase plan |
| 13 | 482 | | | | 495 | |||||||||||||||||||||
Director compensation plan |
| 48 | 1,437 | | | | 1,485 | |||||||||||||||||||||
Balance at June 30, 2010 |
$ | 286,460 | $ | 31,084 | $ | 680,261 | $ | (4 | ) | $ | 381,969 | $ | 4,966 | $ | 1,384,736 | |||||||||||||
Balance at December 31, 2010 |
$ | 49,640 | $ | 34,864 | $ | 965,203 | $ | | $ | 392,354 | $ | (5,512 | ) | $ | 1,436,549 | |||||||||||||
Comprehensive income: |
||||||||||||||||||||||||||||
Net income |
| | | | 28,152 | | 28,152 | |||||||||||||||||||||
Other comprehensive
income, net of tax: |
||||||||||||||||||||||||||||
Unrealized gains on
securities, net of
reclassification
adjustment |
| | | | | 7,690 | 7,690 | |||||||||||||||||||||
Unrealized gains on
derivative instruments |
| | | | | 1,954 | 1,954 | |||||||||||||||||||||
Comprehensive income |
37,796 | |||||||||||||||||||||||||||
Cash dividends declared on
common stock |
| | | | (3,145 | ) | | (3,145 | ) | |||||||||||||||||||
Dividends on preferred stock |
| | | | (2,000 | ) | | (2,000 | ) | |||||||||||||||||||
Accretion on preferred stock |
64 | | | | (64 | ) | | | ||||||||||||||||||||
Common stock repurchases |
| | | (50 | ) | | | (50 | ) | |||||||||||||||||||
Stock-based compensation |
| | 2,034 | | | | 2,034 | |||||||||||||||||||||
Common stock issued for: |
||||||||||||||||||||||||||||
Exercise of stock options and
warrants |
| 45 | 567 | | | | 612 | |||||||||||||||||||||
Restricted stock awards |
| 25 | (28 | ) | | | | (3 | ) | |||||||||||||||||||
Employee stock purchase plan |
| 29 | 868 | | | | 897 | |||||||||||||||||||||
Director compensation plan |
| 25 | 671 | | | | 696 | |||||||||||||||||||||
Balance at June 30, 2011 |
$ | 49,704 | $ | 34,988 | $ | 969,315 | $ | (50 | ) | $ | 415,297 | $ | 4,132 | $ | 1,473,386 | |||||||||||||
Six Months Ended June 30, | ||||||||
2011 | 2010 | |||||||
Other comprehensive income (loss) |
||||||||
Unrealized gains on available-for-sale securities arising during the period, net |
$ | 14,013 | $ | 20,023 | ||||
Unrealized gains (losses) on derivative instruments arising during the period, net |
3,203 | (482 | ) | |||||
Less: Reclassification adjustment for gains included in net income, net |
1,258 | 438 | ||||||
Less: Income tax expense |
6,314 | 7,359 | ||||||
Other comprehensive income |
$ | 9,644 | $ | 11,744 | ||||
3
Six Months Ended June 30, | ||||||||
(In thousands) | 2011 | 2010 | ||||||
Operating Activities: |
||||||||
Net income |
$ | 28,152 | $ | 29,027 | ||||
Adjustments to reconcile net income to net cash provided by operating activities |
||||||||
Provision for credit losses |
54,531 | 70,342 | ||||||
Depreciation and amortization |
9,772 | 9,060 | ||||||
Stock-based compensation expense |
2,034 | 2,505 | ||||||
Tax benefit from stock-based compensation arrangements |
169 | 562 | ||||||
Excess tax benefits from stock-based compensation arrangements |
(238 | ) | (760 | ) | ||||
Net amortization of premium on securities |
5,496 | 1,159 | ||||||
Mortgage servicing rights fair value change and amortization, net |
1,136 | 2,242 | ||||||
Originations and purchases of mortgage loans held-for-sale |
(1,020,626 | ) | (1,419,144 | ) | ||||
Proceeds from sales of mortgage loans held-for-sale |
1,257,619 | 1,480,862 | ||||||
Bank owned life insurance income, net of claims |
(1,537 | ) | (1,042 | ) | ||||
Decrease (increase) in trading securities, net |
4,370 | (4,487 | ) | |||||
Net increase in brokerage customer receivables |
(5,187 | ) | (3,420 | ) | ||||
Gain on mortgage loans sold |
(4,510 | ) | (23,984 | ) | ||||
Gain on available-for-sale securities, net |
(1,258 | ) | (438 | ) | ||||
Gain on bargain purchases |
(10,584 | ) | (37,388 | ) | ||||
Loss on sales of premises and equipment, net |
| 8 | ||||||
Decrease in accrued interest receivable and other assets, net |
85,641 | 97,626 | ||||||
Decrease in accrued interest payable and other liabilities, net |
(29,341 | ) | (14,350 | ) | ||||
Net Cash Provided by Operating Activities |
375,639 | 188,380 | ||||||
Investing Activities: |
||||||||
Proceeds from maturities of available-for-sale securities |
746,324 | 675,419 | ||||||
Proceeds from sales of available-for-sale securities |
53,511 | 270,654 | ||||||
Purchases of available-for-sale securities |
(1,072,299 | ) | (1,148,417 | ) | ||||
Net cash received for acquisitions |
19,925 | 133,952 | ||||||
Net (increase) decrease in interest-bearing deposits with banks |
(100,337 | ) | 36,909 | |||||
Net increase in loans |
(364,474 | ) | (421,140 | ) | ||||
Purchases of premises and equipment, net |
(48,741 | ) | (5,067 | ) | ||||
Net Cash Used for Investing Activities |
(766,091 | ) | (457,690 | ) | ||||
Financing Activities: |
||||||||
Increase in deposit accounts |
243,605 | 137,276 | ||||||
Increase (decrease) in other borrowings, net |
171,673 | (29,013 | ) | |||||
Decrease in Federal Home Loan Bank advances, net |
| (43,069 | ) | |||||
Repayment of subordinated note |
(10,000 | ) | (5,000 | ) | ||||
Excess tax benefits from stock-based compensation arrangements |
238 | 760 | ||||||
Issuance of common stock, net of issuance costs |
| 210,417 | ||||||
Issuance of common shares resulting from exercise of stock options, employee stock
purchase plan and conversion of common stock warrants |
1,619 | 2,242 | ||||||
Common stock repurchases |
(50 | ) | (102 | ) | ||||
Dividends paid |
(5,145 | ) | (10,441 | ) | ||||
Net Cash Provided by Financing Activities |
401,940 | 263,070 | ||||||
Net Increase (Decrease) in Cash and Cash Equivalents |
11,488 | (6,240 | ) | |||||
Cash and Cash Equivalents at Beginning of Period |
172,580 | 158,616 | ||||||
Cash and Cash Equivalents at End of Period |
$ | 184,068 | $ | 152,376 | ||||
4
5
Community First | The Bank of | |||||||||||||||||||
(Dollars in thousands) | Lincoln Park | Wheatland | Ravenswood | Bank Chicago | Commerce | |||||||||||||||
Date of acquisition |
April 23, 2010 | April 23, 2010 | August 6, 2010 | February 4, 2011 | March 25, 2011 | |||||||||||||||
Fair value of assets acquired, at the acquisition date |
$ | 157,078 | $ | 343,870 | $ | 173,919 | $ | 50,891 | $ | 173,986 | ||||||||||
Fair value of loans acquired, at the acquisition date |
103,420 | 175,277 | 97,956 | 27,332 | 77,887 | |||||||||||||||
Fair value of liabilities assumed, at the acquisition date |
192,018 | 415,560 | 122,943 | 49,779 | 168,472 |
6
7
June 30, 2011 | ||||||||||||||||
Gross | Gross | |||||||||||||||
Amortized | unrealized | unrealized | Fair | |||||||||||||
(Dollars in thousands) | Cost | gains | losses | Value | ||||||||||||
U.S. Treasury |
$ | 104,300 | $ | 3 | $ | (3,566 | ) | $ | 100,737 | |||||||
U.S. Government agencies |
679,261 | 4,445 | (16 | ) | 683,690 | |||||||||||
Municipal |
48,710 | 775 | (28 | ) | 49,457 | |||||||||||
Corporate notes and other: |
||||||||||||||||
Financial issuers |
165,908 | 3,348 | (1,988 | ) | 167,268 | |||||||||||
Other |
46,549 | 456 | (21 | ) | 46,984 | |||||||||||
Mortgage-backed: (1) |
||||||||||||||||
Agency |
351,246 | 13,706 | | 364,952 | ||||||||||||
Non-agency CMOs |
362 | 9 | | 371 | ||||||||||||
Other equity securities |
42,945 | 50 | (28 | ) | 42,967 | |||||||||||
Total available-for-sale securities |
$ | 1,439,281 | $ | 22,792 | $ | (5,647 | ) | $ | 1,456,426 | |||||||
December 31, 2010 | ||||||||||||||||
Gross | Gross | |||||||||||||||
Amortized | unrealized | unrealized | Fair | |||||||||||||
(Dollars in thousands) | Cost | gains | losses | Value | ||||||||||||
U.S. Treasury |
$ | 104,418 | $ | | $ | (8,321 | ) | $ | 96,097 | |||||||
U.S. Government agencies |
882,095 | 2,682 | (722 | ) | 884,055 | |||||||||||
Municipal |
51,493 | 896 | (86 | ) | 52,303 | |||||||||||
Corporate notes and other: |
||||||||||||||||
Financial issuers |
186,931 | 3,048 | (2,972 | ) | 187,007 | |||||||||||
Other |
74,629 | 330 | (51 | ) | 74,908 | |||||||||||
Mortgage-backed: (1) |
||||||||||||||||
Agency |
148,693 | 9,963 | (3 | ) | 158,653 | |||||||||||
Non-agency CMOs |
3,018 | 10 | | 3,028 | ||||||||||||
Other equity securities |
40,636 | 96 | (481 | ) | 40,251 | |||||||||||
Total available-for-sale securities |
$ | 1,491,913 | $ | 17,025 | $ | (12,636 | ) | $ | 1,496,302 | |||||||
(1) | Consisting entirely of residential mortgage-backed securities, none of which are subprime. |
Continuous unrealized | Continuous unrealized | |||||||||||||||||||||||
losses existing for | losses existing for | |||||||||||||||||||||||
less than 12 months | greater than 12 months | Total | ||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
(Dollars in thousands) | value | losses | value | losses | value | losses | ||||||||||||||||||
U.S. Treasury |
$ | 98,727 | $ | (3,566 | ) | $ | | $ | | $ | 98,727 | $ | (3,566 | ) | ||||||||||
U.S. Government agencies |
59,539 | (16 | ) | | | 59,539 | (16 | ) | ||||||||||||||||
Municipal |
2,463 | (28 | ) | | | 2,463 | (28 | ) | ||||||||||||||||
Corporate notes and other: |
||||||||||||||||||||||||
Financial issuers |
61,994 | (1,052 | ) | 5,007 | (936 | ) | 67,001 | (1,988 | ) | |||||||||||||||
Other |
1,012 | (21 | ) | | | 1,012 | (21 | ) | ||||||||||||||||
Other equity securities |
2,228 | (28 | ) | | | 2,228 | (28 | ) | ||||||||||||||||
Total |
$ | 225,963 | $ | (4,711 | ) | $ | 5,007 | $ | (936 | ) | $ | 230,970 | $ | (5,647 | ) | |||||||||
8
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(Dollars in thousands) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Realized gains |
$ | 1,152 | $ | 46 | $ | 1,258 | $ | 549 | ||||||||
Realized losses |
| | | (111 | ) | |||||||||||
Net realized gains |
$ | 1,152 | $ | 46 | $ | 1,258 | $ | 438 | ||||||||
Other than temporary impairment charges |
| | | | ||||||||||||
Gains on available- for-sale securities, net |
$ | 1,152 | $ | 46 | $ | 1,258 | $ | 438 | ||||||||
Proceeds from sales of available-for-sale securities |
$ | 3,369 | $ | 86,139 | $ | 53,511 | $ | 270,654 | ||||||||
June 30, 2011 | December 31, 2010 | |||||||||||||||
Amortized | Fair | Amortized | Fair | |||||||||||||
(Dollars in thousands) | Cost | Value | Cost | Value | ||||||||||||
Due in one year or less |
$ | 246,118 | $ | 246,435 | $ | 647,494 | $ | 647,987 | ||||||||
Due in one to five years |
495,758 | 497,409 | 309,795 | 310,663 | ||||||||||||
Due in five to ten years |
210,106 | 209,120 | 194,442 | 185,938 | ||||||||||||
Due after ten years |
92,746 | 95,172 | 147,835 | 149,782 | ||||||||||||
Mortgage-backed |
351,608 | 365,323 | 151,711 | 161,681 | ||||||||||||
Other equity securities |
42,945 | 42,967 | 40,636 | 40,251 | ||||||||||||
Total available-for-sale securities |
$ | 1,439,281 | $ | 1,456,426 | $ | 1,491,913 | $ | 1,496,302 | ||||||||
9
June 30, | December 31, | June 30, | ||||||||||
(Dollars in thousands) | 2011 | 2010 | 2010 | |||||||||
Balance: |
||||||||||||
Commercial |
$ | 2,132,436 | $ | 2,049,326 | $ | 1,827,618 | ||||||
Commercial real-estate |
3,374,668 | 3,338,007 | 3,347,823 | |||||||||
Home equity |
880,702 | 914,412 | 922,305 | |||||||||
Residential real-estate |
329,381 | 353,336 | 332,673 | |||||||||
Premium finance receivables commercial |
1,429,436 | 1,265,500 | 1,346,985 | |||||||||
Premium finance receivables life insurance |
1,619,668 | 1,521,886 | 1,378,657 | |||||||||
Indirect consumer |
57,718 | 51,147 | 69,011 | |||||||||
Consumer and other |
101,068 | 106,272 | 99,091 | |||||||||
Total loans, net of unearned income, excluding covered loans |
$ | 9,925,077 | $ | 9,599,886 | $ | 9,324,163 | ||||||
Covered loans |
408,669 | 334,353 | 275,563 | |||||||||
Total loans |
$ | 10,333,746 | $ | 9,934,239 | $ | 9,599,726 | ||||||
Mix: |
||||||||||||
Commercial |
20 | % | 21 | % | 19 | % | ||||||
Commercial real-estate |
33 | 34 | 35 | |||||||||
Home equity |
8 | 9 | 10 | |||||||||
Residential real-estate |
3 | 3 | 3 | |||||||||
Premium finance receivables commercial |
14 | 13 | 14 | |||||||||
Premium finance receivables life insurance |
16 | 15 | 14 | |||||||||
Indirect consumer |
1 | 1 | 1 | |||||||||
Consumer and other |
1 | 1 | 1 | |||||||||
Total loans, net of unearned income, excluding covered loans |
96 | % | 97 | % | 97 | % | ||||||
Covered loans |
4 | 3 | 3 | |||||||||
Total loans |
100 | % | 100 | % | 100 | % | ||||||
10
June 30, 2011 | December 31, 2010 | |||||||||||||||
Unpaid | Unpaid | |||||||||||||||
Principal | Carrying | Principal | Carrying | |||||||||||||
(Dollars in thousands) | Balance | Value | Balance | Value | ||||||||||||
Acquisitions during 2011: |
||||||||||||||||
The Bank of Commerce |
$ | 119,273 | $ | 64,097 | $ | | $ | | ||||||||
Community First Bank Chicago |
17,701 | 13,425 | | | ||||||||||||
Acquisitions during prior periods: |
||||||||||||||||
Covered loans from FDIC-assisted acquistions |
358,726 | 310,452 | 432,566 | 331,295 | ||||||||||||
Life insurance premium finance loans |
695,088 | 652,739 | 752,129 | 695,587 |
The Bank of | Community First | |||||||
(Dollars in thousands) | Commerce | Bank Chicago | ||||||
Contractually required payments including interest |
$ | 127,122 | $ | 22,178 | ||||
Less: Nonaccretable difference |
56,257 | 6,313 | ||||||
Cash flows expected to be collected (1) |
70,865 | 15,865 | ||||||
Less: Accretable yield |
4,414 | 688 | ||||||
Fair value of loans acquired with evidence of credit quality
deterioration since origination |
$ | 66,451 | $ | 15,177 | ||||
(1) | Represents undiscounted expected principal and interest cash flows at acquisition. |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, 2011 | June 30, 2011 | |||||||||||||||
Life Insurance | Life Insurance | |||||||||||||||
FDICAssisted | Premium | FDICAssisted | Premium | |||||||||||||
(Dollars in thousands) | Acquisitions | Finance Loans | Acquisitions | Finance Loans | ||||||||||||
Accretable yield, beginning balance |
$ | 91,332 | $ | 25,543 | $ | 39,809 | $ | 33,315 | ||||||||
Acquisitions |
| | 7,107 | | ||||||||||||
Accretable yield amortized to interest income |
(13,568 | ) | (5,122 | ) | (27,727 | ) | (14,174 | ) | ||||||||
Increase in expected cash flows (1) |
2,984 | 4,470 | 61,559 | 5,750 | ||||||||||||
Accretable yield, ending balance |
$ | 80,748 | $ | 24,891 | $ | 80,748 | $ | 24,891 | ||||||||
(1) | Represents reclassifications to/from non-accretable difference, increases/decreases in interest cash flows due to prepayments and/or changes in interest rates. |
11
90+ days | 60-89 | 30-59 | ||||||||||||||||||||||
As of June 30, 2011 | and still | days past | days past | |||||||||||||||||||||
(Dollars in thousands) | Nonaccrual | accruing | due | due | Current | Total Loans | ||||||||||||||||||
Loan Balances: |
||||||||||||||||||||||||
Commercial |
||||||||||||||||||||||||
Commercial and industrial |
$ | 22,289 | $ | | $ | 7,164 | $ | 23,754 | $ | 1,309,455 | $ | 1,362,662 | ||||||||||||
Franchise |
1,792 | | | | 112,342 | 114,134 | ||||||||||||||||||
Mortgage warehouse lines of credit |
| | | | 68,477 | 68,477 | ||||||||||||||||||
Community Advanatage homeowners association |
| | | | 73,929 | 73,929 | ||||||||||||||||||
Aircraft |
| | | | 21,231 | 21,231 | ||||||||||||||||||
Asset-based lending |
2,087 | | | 2,415 | 361,594 | 366,096 | ||||||||||||||||||
Municipal |
| | | | 63,296 | 63,296 | ||||||||||||||||||
Leases |
| | | 763 | 61,772 | 62,535 | ||||||||||||||||||
Other |
| | | | 76 | 76 | ||||||||||||||||||
Total commercial |
26,168 | | 7,164 | 26,932 | 2,072,172 | 2,132,436 | ||||||||||||||||||
Commercial real-estate |
||||||||||||||||||||||||
Residential construction |
3,011 | | 938 | 5,245 | 81,561 | 90,755 | ||||||||||||||||||
Commercial construction |
2,453 | | 7,579 | 7,075 | 120,540 | 137,647 | ||||||||||||||||||
Land |
33,980 | | 10,281 | 8,076 | 160,597 | 212,934 | ||||||||||||||||||
Office |
17,503 | | 1,648 | 3,846 | 509,385 | 532,382 | ||||||||||||||||||
Industrial |
2,470 | | 2,689 | 2,480 | 506,895 | 514,534 | ||||||||||||||||||
Retail |
8,164 | | 3,778 | 14,806 | 498,040 | 524,788 | ||||||||||||||||||
Multi-family |
4,947 | | 4,628 | 3,836 | 302,740 | 316,151 | ||||||||||||||||||
Mixed use and other |
17,265 | | 9,350 | 4,201 | 1,014,661 | 1,045,477 | ||||||||||||||||||
Total commercial real-estate |
89,793 | | 40,891 | 49,565 | 3,194,419 | 3,374,668 | ||||||||||||||||||
Home equity |
15,853 | | 1,502 | 4,081 | 859,266 | 880,702 | ||||||||||||||||||
Residential real estate |
7,379 | | 1,272 | 949 | 319,781 | 329,381 | ||||||||||||||||||
Premium finance receivables |
||||||||||||||||||||||||
Commercial insurance loans |
10,309 | 4,446 | 5,089 | 7,897 | 1,401,695 | 1,429,436 | ||||||||||||||||||
Life insurance loans |
670 | 324 | 4,873 | 3,254 | 957,808 | 966,929 | ||||||||||||||||||
Purchased life insurance loans |
| | | | 652,739 | 652,739 | ||||||||||||||||||
Indirect consumer |
89 | 284 | 98 | 531 | 56,716 | 57,718 | ||||||||||||||||||
Consumer and other |
757 | | 123 | 418 | 99,770 | 101,068 | ||||||||||||||||||
Total loans, net of unearned income,
excluding covered
loans |
$ | 151,018 | $ | 5,054 | $ | 61,012 | $ | 93,627 | $ | 9,614,366 | $ | 9,925,077 | ||||||||||||
Covered loans |
| 121,271 | 5,643 | 11,899 | 269,856 | 408,669 | ||||||||||||||||||
Total loans, net of unearned income |
$ | 151,018 | $ | 126,325 | $ | 66,655 | $ | 105,526 | $ | 9,884,222 | $ | 10,333,746 | ||||||||||||
12
90+ days | 60-89 | 30-59 | ||||||||||||||||||||||
As of December 31, 2010 | and still | days past | days past | |||||||||||||||||||||
(Dollars in thousands) | Nonaccrual | accruing | due | due | Current | Total Loans | ||||||||||||||||||
Loan Balances: |
||||||||||||||||||||||||
Commercial |
||||||||||||||||||||||||
Commercial and industrial |
$ | 15,922 | $ | 478 | $ | 4,416 | $ | 9,928 | $ | 1,280,009 | $ | 1,310,753 | ||||||||||||
Franchise |
| | | 2,250 | 117,238 | 119,488 | ||||||||||||||||||
Mortgage warehouse lines of credit |
| | | | 131,306 | 131,306 | ||||||||||||||||||
Community Advanatage homeowners association |
| | | | 75,542 | 75,542 | ||||||||||||||||||
Aircraft |
| | 178 | 1,000 | 23,440 | 24,618 | ||||||||||||||||||
Asset-based lending |
417 | | 161 | 2,846 | 285,555 | 288,979 | ||||||||||||||||||
Municipal |
| | | | 56,343 | 56,343 | ||||||||||||||||||
Leases |
43 | | | | 41,498 | 41,541 | ||||||||||||||||||
Other |
| | | | 756 | 756 | ||||||||||||||||||
Total commercial |
16,382 | 478 | 4,755 | 16,024 | 2,011,687 | 2,049,326 | ||||||||||||||||||
Commercial real-estate |
||||||||||||||||||||||||
Residential construction |
10,010 | | 96 | 1,801 | 84,040 | 95,947 | ||||||||||||||||||
Commercial construction |
1,820 | | | 1,481 | 128,371 | 131,672 | ||||||||||||||||||
Land |
37,602 | | 6,815 | 11,915 | 203,857 | 260,189 | ||||||||||||||||||
Office |
12,718 | | 9,121 | 3,202 | 510,290 | 535,331 | ||||||||||||||||||
Industrial |
3,480 | | 686 | 2,276 | 493,859 | 500,301 | ||||||||||||||||||
Retail |
3,265 | | 4,088 | 3,839 | 499,335 | 510,527 | ||||||||||||||||||
Multi-family |
4,794 | | 1,573 | 3,062 | 281,525 | 290,954 | ||||||||||||||||||
Mixed use and other |
20,274 | | 8,481 | 15,059 | 969,272 | 1,013,086 | ||||||||||||||||||
Total commercial real-estate |
93,963 | | 30,860 | 42,635 | 3,170,549 | 3,338,007 | ||||||||||||||||||
Home equity |
7,425 | | 2,181 | 7,098 | 897,708 | 914,412 | ||||||||||||||||||
Residential real estate |
6,085 | | 1,836 | 8,224 | 337,191 | 353,336 | ||||||||||||||||||
Premium finance receivables |
||||||||||||||||||||||||
Commercial insurance loans |
8,587 | 8,096 | 6,076 | 16,584 | 1,226,157 | 1,265,500 | ||||||||||||||||||
Life insurance loans |
180 | | | | 826,119 | 826,299 | ||||||||||||||||||
Purchased life insurance loans |
174 | | | | 695,413 | 695,587 | ||||||||||||||||||
Indirect consumer |
191 | 318 | 301 | 918 | 49,419 | 51,147 | ||||||||||||||||||
Consumer and other |
252 | 1 | 109 | 379 | 105,531 | 106,272 | ||||||||||||||||||
Total loans, net of unearned income,
excluding covered
loans |
$ | 133,239 | $ | 8,893 | $ | 46,118 | $ | 91,862 | $ | 9,319,774 | $ | 9,599,886 | ||||||||||||
Covered loans |
| 117,161 | 7,352 | 22,744 | 187,096 | 334,353 | ||||||||||||||||||
Total loans, net of unearned income |
$ | 133,239 | $ | 126,054 | $ | 53,470 | $ | 114,606 | $ | 9,506,870 | $ | 9,934,239 | ||||||||||||
13
90+ days | 60-89 | 30-59 | ||||||||||||||||||||||
As of June 30, 2010 | and still | days past | days past | |||||||||||||||||||||
(Dollars in thousands) | Nonaccrual | accruing | due | due | Current | Total Loans | ||||||||||||||||||
Loan Balances: |
||||||||||||||||||||||||
Commercial |
||||||||||||||||||||||||
Commercial and industrial |
$ | 16,456 | $ | 99 | $ | 7,211 | $ | 5,781 | $ | 1,200,955 | $ | 1,230,502 | ||||||||||||
Franchise |
| | | | 138,687 | 138,687 | ||||||||||||||||||
Mortgage warehouse lines of credit |
| | | | 118,823 | 118,823 | ||||||||||||||||||
Community Advanatage homeowners association |
| | | | 62,452 | 62,452 | ||||||||||||||||||
Aircraft |
| | 178 | | 38,396 | 38,574 | ||||||||||||||||||
Asset-based lending |
1,219 | | 270 | | 178,997 | 180,486 | ||||||||||||||||||
Municipal |
| | | | 35,797 | 35,797 | ||||||||||||||||||
Leases |
66 | | 891 | | 21,338 | 22,295 | ||||||||||||||||||
Other |
| | | | 2 | 2 | ||||||||||||||||||
Total commercial |
17,741 | 99 | 8,550 | 5,781 | 1,795,447 | 1,827,618 | ||||||||||||||||||
Commercial real-estate |
||||||||||||||||||||||||
Residential construction |
15,468 | | 6,166 | 3,035 | 104,793 | 129,462 | ||||||||||||||||||
Commercial construction |
6,140 | | | 2,117 | 179,919 | 188,176 | ||||||||||||||||||
Land |
21,699 | | 5,313 | 8,721 | 233,823 | 269,556 | ||||||||||||||||||
Office |
2,991 | 1,194 | 193 | 8,423 | 522,740 | 535,541 | ||||||||||||||||||
Industrial |
5,540 | | 5,612 | 3,530 | 458,033 | 472,715 | ||||||||||||||||||
Retail |
5,174 | | 1,906 | 4,712 | 472,745 | 484,537 | ||||||||||||||||||
Multi-family |
11,074 | | 421 | 1,498 | 263,888 | 276,881 | ||||||||||||||||||
Mixed use and other |
14,898 | 1,054 | 11,156 | 10,476 | 953,371 | 990,955 | ||||||||||||||||||
Total commercial real-estate |
82,984 | 2,248 | 30,767 | 42,512 | 3,189,312 | 3,347,823 | ||||||||||||||||||
Home equity |
7,149 | | 1,063 | 4,253 | 909,840 | 922,305 | ||||||||||||||||||
Residential real estate |
4,436 | | 1,379 | 2,489 | 324,369 | 332,673 | ||||||||||||||||||
Premium finance receivables |
||||||||||||||||||||||||
Commercial insurance loans |
11,389 | 6,350 | 3,938 | 9,944 | 1,315,364 | 1,346,985 | ||||||||||||||||||
Life insurance loans |
| 1,923 | 3,960 | 7,712 | 576,793 | 590,388 | ||||||||||||||||||
Purchased life insurance loans |
| | | | 788,269 | 788,269 | ||||||||||||||||||
Indirect consumer |
438 | 579 | 204 | 1,453 | 66,337 | 69,011 | ||||||||||||||||||
Consumer and other |
62 | 3 | 438 | 1,021 | 97,567 | 99,091 | ||||||||||||||||||
Total loans, net of unearned income,
excluding covered
loans |
$ | 124,199 | $ | 11,202 | $ | 50,299 | $ | 75,165 | $ | 9,063,298 | $ | 9,324,163 | ||||||||||||
Covered loans |
| 101,333 | 10,963 | 9,180 | 154,087 | 275,563 | ||||||||||||||||||
Total loans, net of unearned income |
$ | 124,199 | $ | 112,535 | $ | 61,262 | $ | 84,345 | $ | 9,217,385 | $ | 9,599,726 | ||||||||||||
14
Performing | Non-performing | Total | ||||||||||||||||||||||||||||||||||
June 30, | December 31, | June 30, | June 30, | December 31, | June 30, | June 30, | December 31, | June 30, | ||||||||||||||||||||||||||||
(Dollars in thousands) | 2011 | 2010 | 2010 | 2011 | 2010 | 2010 | 2011 | 2010 | 2010 | |||||||||||||||||||||||||||
Loan Balances: |
||||||||||||||||||||||||||||||||||||
Commercial |
||||||||||||||||||||||||||||||||||||
Commercial and industrial |
$ | 1,340,373 | $ | 1,294,353 | $ | 1,213,947 | $ | 22,289 | $ | 16,400 | $ | 16,555 | $ | 1,362,662 | $ | 1,310,753 | $ | 1,230,502 | ||||||||||||||||||
Franchise |
112,342 | 119,488 | 138,687 | 1,792 | | | 114,134 | 119,488 | 138,687 | |||||||||||||||||||||||||||
Mortgage warehouse lines of credit |
68,477 | 131,306 | 118,823 | | | | 68,477 | 131,306 | 118,823 | |||||||||||||||||||||||||||
Community Advanatage homeowners association |
73,929 | 75,542 | 62,452 | | | | 73,929 | 75,542 | 62,452 | |||||||||||||||||||||||||||
Aircraft |
21,231 | 24,618 | 38,574 | | | | 21,231 | 24,618 | 38,574 | |||||||||||||||||||||||||||
Asset-based lending |
364,009 | 288,562 | 179,267 | 2,087 | 417 | 1,219 | 366,096 | 288,979 | 180,486 | |||||||||||||||||||||||||||
Municipal |
63,296 | 56,343 | 35,797 | | | | 63,296 | 56,343 | 35,797 | |||||||||||||||||||||||||||
Leases |
62,535 | 41,498 | 22,229 | | 43 | 66 | 62,535 | 41,541 | 22,295 | |||||||||||||||||||||||||||
Other |
76 | 756 | 2 | | | | 76 | 756 | 2 | |||||||||||||||||||||||||||
Total commercial |
2,106,268 | 2,032,466 | 1,809,778 | 26,168 | 16,860 | 17,840 | 2,132,436 | 2,049,326 | 1,827,618 | |||||||||||||||||||||||||||
Commercial real-estate |
||||||||||||||||||||||||||||||||||||
Residential construction |
87,744 | 85,937 | 113,994 | 3,011 | 10,010 | 15,468 | 90,755 | 95,947 | 129,462 | |||||||||||||||||||||||||||
Commercial construction |
135,194 | 129,852 | 182,036 | 2,453 | 1,820 | 6,140 | 137,647 | 131,672 | 188,176 | |||||||||||||||||||||||||||
Land |
178,954 | 222,587 | 247,857 | 33,980 | 37,602 | 21,699 | 212,934 | 260,189 | 269,556 | |||||||||||||||||||||||||||
Office |
514,879 | 522,613 | 531,356 | 17,503 | 12,718 | 4,185 | 532,382 | 535,331 | 535,541 | |||||||||||||||||||||||||||
Industrial |
512,064 | 496,821 | 467,175 | 2,470 | 3,480 | 5,540 | 514,534 | 500,301 | 472,715 | |||||||||||||||||||||||||||
Retail |
516,624 | 507,262 | 479,363 | 8,164 | 3,265 | 5,174 | 524,788 | 510,527 | 484,537 | |||||||||||||||||||||||||||
Multi-family |
311,204 | 286,160 | 265,807 | 4,947 | 4,794 | 11,074 | 316,151 | 290,954 | 276,881 | |||||||||||||||||||||||||||
Mixed use and other |
1,028,212 | 992,812 | 975,003 | 17,265 | 20,274 | 15,952 | 1,045,477 | 1,013,086 | 990,955 | |||||||||||||||||||||||||||
Total commercial real-estate |
3,284,875 | 3,244,044 | 3,262,591 | 89,793 | 93,963 | 85,232 | 3,374,668 | 3,338,007 | 3,347,823 | |||||||||||||||||||||||||||
Home equity |
864,849 | 906,987 | 915,156 | 15,853 | 7,425 | 7,149 | 880,702 | 914,412 | 922,305 | |||||||||||||||||||||||||||
Residential real estate |
322,002 | 347,251 | 328,237 | 7,379 | 6,085 | 4,436 | 329,381 | 353,336 | 332,673 | |||||||||||||||||||||||||||
Premium finance receivables |
||||||||||||||||||||||||||||||||||||
Commercial insurance loans |
1,414,681 | 1,248,817 | 1,329,246 | 14,755 | 16,683 | 17,739 | 1,429,436 | 1,265,500 | 1,346,985 | |||||||||||||||||||||||||||
Life insurance loans |
965,935 | 826,119 | 588,465 | 994 | 180 | 1,923 | 966,929 | 826,299 | 590,388 | |||||||||||||||||||||||||||
Purchased life insurance loans |
652,739 | 695,413 | 788,269 | | 174 | | 652,739 | 695,587 | 788,269 | |||||||||||||||||||||||||||
Indirect consumer |
57,345 | 50,638 | 67,994 | 373 | 509 | 1,017 | 57,718 | 51,147 | 69,011 | |||||||||||||||||||||||||||
Consumer and other |
100,311 | 106,019 | 99,026 | 757 | 253 | 65 | 101,068 | 106,272 | 99,091 | |||||||||||||||||||||||||||
Total loans, net of unearned income, excluding covered
loans |
$ | 9,769,005 | $ | 9,457,754 | $ | 9,188,762 | $ | 156,072 | $ | 142,132 | $ | 135,401 | $ | 9,925,077 | $ | 9,599,886 | $ | 9,324,163 | ||||||||||||||||||
15
June 30, | December 31, | June 30, | ||||||||||
(Dollars in thousands) | 2011 | 2010 | 2010 | |||||||||
Impaired loans (included in non-performing and restructured loans): |
||||||||||||
Impaired loans with an allowance for loan loss required (2) |
$ | 94,056 | $ | 115,381 | $ | 85,312 | ||||||
Impaired loans with no allowance for loan loss required |
131,797 | 86,893 | 77,792 | |||||||||
Total impaired loans (1): |
$ | 225,853 | $ | 202,274 | $ | 163,104 | ||||||
Allowance for loan losses related to impaired loans |
$ | 27,305 | $ | 30,626 | $ | 24,018 | ||||||
Restructured loans |
$ | 103,044 | $ | 101,190 | $ | 64,683 | ||||||
(1) | Impaired loans are considered by the Company to be non-accrual loans, restructured loans or loans with principal and/or interest at risk, even if the loan is current with all payments of principal and interest. | |
(2) | These impaired loans require an allowance for loan losses because the estimated fair value of the loans or related collateral is less than the recorded investment in the loans. |
16
As of | For the Six Months Ended | |||||||||||||||||||
Recorded | Unpaid Principal | Related | Average Recorded | Interest Income | ||||||||||||||||
June 30, 2011 (dollars in thousands) | Investment | Balance | Allowance | Investment | Recognized | |||||||||||||||
Impaired loans with a related ASC 310 allowance recorded |
||||||||||||||||||||
Commercial |
||||||||||||||||||||
Commercial and industrial |
$ | 17,620 | $ | 29,123 | $ | 5,937 | $ | 15,843 | $ | 742 | ||||||||||
Franchise |
| | | | | |||||||||||||||
Mortgage warehouse lines of credit |
| | | | | |||||||||||||||
Community Advantage homeowners association |
| | | | | |||||||||||||||
Aircraft |
| | | | | |||||||||||||||
Asset-based lending |
2,087 | 2,087 | 1,595 | 2,108 | 55 | |||||||||||||||
Municipal |
| | | | | |||||||||||||||
Leases |
| | | | | |||||||||||||||
Other |
| | | | | |||||||||||||||
Commercial real-estate |
||||||||||||||||||||
Residential construction |
1,116 | 1,118 | 293 | 1,118 | 28 | |||||||||||||||
Commercial construction |
2,076 | 2,501 | 326 | 2,258 | 69 | |||||||||||||||
Land |
20,427 | 22,644 | 5,841 | 21,127 | 557 | |||||||||||||||
Office |
14,427 | 16,527 | 4,551 | 16,090 | 501 | |||||||||||||||
Industrial |
159 | 162 | 32 | 160 | 6 | |||||||||||||||
Retail |
3,407 | 4,495 | 979 | 3,913 | 115 | |||||||||||||||
Multi-family |
2,452 | 2,458 | 744 | 2,465 | 64 | |||||||||||||||
Mixed use and other |
11,161 | 11,352 | 2,906 | 11,238 | 329 | |||||||||||||||
Home equity |
12,898 | 13,251 | 2,143 | 13,000 | 333 | |||||||||||||||
Residential real estate |
5,791 | 5,921 | 1,619 | 5,798 | 119 | |||||||||||||||
Premium finance receivables |
||||||||||||||||||||
Commercial insurance |
| | | | | |||||||||||||||
Life insurance |
| | | | | |||||||||||||||
Purchased life insurance |
| | | | | |||||||||||||||
Indirect consumer |
49 | 50 | 9 | 50 | 2 | |||||||||||||||
Consumer and other |
386 | 386 | 330 | 368 | 9 | |||||||||||||||
Impaired loans with no related ASC 310 allowance recorded |
||||||||||||||||||||
Commercial |
||||||||||||||||||||
Commercial and industrial |
$ | 17,065 | $ | 23,716 | $ | | $ | 19,943 | $ | 544 | ||||||||||
Franchise |
1,792 | 1,792 | | 1,792 | 60 | |||||||||||||||
Mortgage warehouse lines of credit |
| | | | | |||||||||||||||
Community Advanatage homeowners association |
| | | | | |||||||||||||||
Aircraft |
| | | | | |||||||||||||||
Asset-based lending |
| | | | | |||||||||||||||
Municipal |
| | | | | |||||||||||||||
Leases |
| | | | | |||||||||||||||
Other |
| | | | | |||||||||||||||
Commercial real-estate |
||||||||||||||||||||
Residential construction |
4,522 | 5,268 | | 6,511 | 257 | |||||||||||||||
Commercial construction |
11,151 | 11,151 | | 11,428 | 261 | |||||||||||||||
Land |
21,486 | 30,975 | | 22,172 | 959 | |||||||||||||||
Office |
12,579 | 12,613 | | 12,627 | 299 | |||||||||||||||
Industrial |
6,844 | 7,385 | | 7,315 | 193 | |||||||||||||||
Retail |
12,373 | 14,833 | | 15,153 | 458 | |||||||||||||||
Multi-family |
2,718 | 6,877 | | 5,563 | 173 | |||||||||||||||
Mixed use and other |
35,258 | 39,189 | | 37,421 | 941 | |||||||||||||||
Home equity |
2,954 | 3,412 | | 3,208 | 65 | |||||||||||||||
Residential real estate |
2,667 | 3,142 | | 3,109 | 87 | |||||||||||||||
Premium finance receivables |
||||||||||||||||||||
Commercial insurance |
| | | | | |||||||||||||||
Life insurance |
| | | | | |||||||||||||||
Purchased life insurance |
| | | | | |||||||||||||||
Indirect consumer |
17 | 24 | | 19 | 1 | |||||||||||||||
Consumer and other |
371 | 656 | | 566 | 15 | |||||||||||||||
Total loans, net of unearned income, excluding covered loans |
$ | 225,853 | $ | 273,108 | $ | 27,305 | $ | 242,363 | $ | 7,242 | ||||||||||
17
As of | For the Twelve Months Ended | |||||||||||||||||||
Recorded | Unpaid Principal | Related | Average Recorded | Interest Income | ||||||||||||||||
December 31, 2010 (dollars in thousands) | Investment | Balance | Allowance | Investment | Recognized | |||||||||||||||
Impaired loans with a related ASC 310 allowance recorded |
||||||||||||||||||||
Commercial |
||||||||||||||||||||
Commercial and industrial |
$ | 17,678 | $ | 19,789 | $ | 5,939 | $ | 19,574 | $ | 982 | ||||||||||
Franchise |
| | | | | |||||||||||||||
Mortgage warehouse lines of credit |
| | | | | |||||||||||||||
Community Advanatage homeowners association |
| | | | | |||||||||||||||
Aircraft |
| | | | | |||||||||||||||
Asset-based lending |
407 | 976 | 140 | 876 | 60 | |||||||||||||||
Municipal |
| | | | | |||||||||||||||
Leases |
| | | | | |||||||||||||||
Other |
| | | | | |||||||||||||||
Commercial real-estate |
||||||||||||||||||||
Residential construction |
7,978 | 8,941 | 710 | 9,067 | 621 | |||||||||||||||
Commercial construction |
719 | 719 | 631 | 722 | 37 | |||||||||||||||
Land |
26,671 | 27,424 | 5,598 | 28,443 | 1,611 | |||||||||||||||
Office |
13,186 | 13,723 | 3,718 | 13,448 | 917 | |||||||||||||||
Industrial |
2,761 | 2,761 | 301 | 893 | 31 | |||||||||||||||
Retail |
8,635 | 9,171 | 1,271 | 9,150 | 465 | |||||||||||||||
Multi-family |
5,939 | 6,767 | 2,062 | 6,691 | 327 | |||||||||||||||
Mixed use and other |
21,755 | 22,885 | 7,104 | 23,310 | 1,466 | |||||||||||||||
Home equity |
6,356 | 6,553 | 961 | 6,494 | 365 | |||||||||||||||
Residential real estate |
3,283 | 3,283 | 461 | 3,288 | 170 | |||||||||||||||
Premium finance receivables |
||||||||||||||||||||
Commercial insurance |
| | | | | |||||||||||||||
Life insurance |
| | | | | |||||||||||||||
Purchased life insurance |
| | | | | |||||||||||||||
Indirect consumer |
| | | | | |||||||||||||||
Consumer and other |
13 | 13 | 4 | 15 | 1 | |||||||||||||||
Impaired loans with no related ASC 310 allowance recorded |
||||||||||||||||||||
Commercial |
||||||||||||||||||||
Commercial and industrial |
$ | 12,407 | $ | 16,368 | $ | 157 | $ | 13,210 | $ | 971 | ||||||||||
Franchise |
| | | | | |||||||||||||||
Mortgage warehouse lines of credit |
| | | | | |||||||||||||||
Community Advanatage homeowners association |
| | | | | |||||||||||||||
Aircraft |
| | | | | |||||||||||||||
Asset-based lending |
10 | 130 | | 121 | 9 | |||||||||||||||
Municipal |
| | | | | |||||||||||||||
Leases |
43 | 336 | | 491 | 36 | |||||||||||||||
Other |
| | | | | |||||||||||||||
Commercial real-estate |
||||||||||||||||||||
Residential construction |
6,063 | 6,138 | 127 | 5,927 | 268 | |||||||||||||||
Commercial construction |
1,713 | 1,713 | 5 | 1,715 | 97 | |||||||||||||||
Land |
31,598 | 43,319 | 1,035 | 34,258 | 2,361 | |||||||||||||||
Office |
6,365 | 6,563 | 78 | 6,370 | 358 | |||||||||||||||
Industrial |
3,869 | 3,868 | 49 | 4,086 | 286 | |||||||||||||||
Retail |
6,155 | 6,155 | 75 | 6,153 | 346 | |||||||||||||||
Multi-family |
2,238 | 4,479 | 27 | 2,584 | 150 | |||||||||||||||
Mixed use and other |
13,738 | 15,569 | 124 | 14,343 | 919 | |||||||||||||||
Home equity |
1,069 | 1,142 | 13 | 1,119 | 39 | |||||||||||||||
Residential real estate |
1,485 | 1,486 | 34 | 1,478 | 93 | |||||||||||||||
Premium finance receivables |
||||||||||||||||||||
Commercial insurance |
| | | | | |||||||||||||||
Life insurance |
| | | | | |||||||||||||||
Purchased life insurance |
| | | | | |||||||||||||||
Indirect consumer |
59 | 67 | 1 | 68 | 7 | |||||||||||||||
Consumer and other |
81 | 81 | 1 | 88 | 6 | |||||||||||||||
Total loans, net of unearned income, excluding covered
loans |
$ | 202,274 | $ | 230,419 | $ | 30,626 | $ | 213,982 | $ | 12,999 | ||||||||||
18
As of | For the Six Months Ended | |||||||||||||||||||
Recorded | Unpaid Principal | Related | Average Recorded | Interest Income | ||||||||||||||||
June 30, 2010 (dollars in thousands) | Investment | Balance | Allowance | Investment | Recognized | |||||||||||||||
Impaired loans with a related ASC 310 allowance recorded |
||||||||||||||||||||
Commercial |
||||||||||||||||||||
Commercial and industrial |
$ | 11,962 | $ | 14,664 | $ | 5,013 | $ | 12,218 | $ | 330 | ||||||||||
Franchise |
| | | | | |||||||||||||||
Mortgage warehouse lines of credit |
| | | | | |||||||||||||||
Community Advanatage homeowners association |
| | | | | |||||||||||||||
Aircraft |
| | | | | |||||||||||||||
Asset-based lending |
922 | 922 | 583 | 922 | 25 | |||||||||||||||
Municipal |
| | | | | |||||||||||||||
Leases |
| | | | | |||||||||||||||
Other |
| | | | | |||||||||||||||
Commercial real-estate |
||||||||||||||||||||
Residential construction |
10,802 | 11,239 | 2,622 | 11,426 | 340 | |||||||||||||||
Commercial construction |
12,855 | 14,059 | 3,669 | 12,989 | 530 | |||||||||||||||
Land |
13,926 | 20,923 | 2,560 | 14,668 | 688 | |||||||||||||||
Office |
1,876 | 2,380 | 584 | 2,094 | 47 | |||||||||||||||
Industrial |
1,360 | 1,360 | 271 | 1,361 | 54 | |||||||||||||||
Retail |
4,211 | 4,274 | 521 | 4,266 | 100 | |||||||||||||||
Multi-family |
9,626 | 11,641 | 1,587 | 10,921 | 276 | |||||||||||||||
Mixed use and other |
10,584 | 11,010 | 2,824 | 10,758 | 337 | |||||||||||||||
Home equity |
5,549 | 6,143 | 1,401 | 6,054 | 161 | |||||||||||||||
Residential real estate |
1,608 | 1,608 | 217 | 1,607 | 43 | |||||||||||||||
Premium finance receivables |
||||||||||||||||||||
Commercial insurance |
| | | | | |||||||||||||||
Life insurance |
| | | | | |||||||||||||||
Purchased life insurance |
| | | | | |||||||||||||||
Indirect consumer |
31 | 31 | 9 | 31 | 1 | |||||||||||||||
Consumer and other |
| | | | | |||||||||||||||
Impaired loans with no related ASC 310 allowance recorded |
||||||||||||||||||||
Commercial |
||||||||||||||||||||
Commercial and industrial |
$ | 8,920 | $ | 12,353 | $ | 173 | $ | 9,573 | $ | 375 | ||||||||||
Franchise |
| | | | | |||||||||||||||
Mortgage warehouse lines of credit |
| | | | | |||||||||||||||
Community Advanatage homeowners association |
| | | | | |||||||||||||||
Aircraft |
| | | | | |||||||||||||||
Asset-based lending |
297 | 391 | | 412 | 12 | |||||||||||||||
Municipal |
| | | | | |||||||||||||||
Leases |
66 | 70 | 3 | 67 | 3 | |||||||||||||||
Other |
| | | | | |||||||||||||||
Commercial real-estate |
||||||||||||||||||||
Residential construction |
11,536 | 11,991 | 225 | 11,396 | 297 | |||||||||||||||
Commercial construction |
1,635 | 1,635 | 39 | 1,823 | 47 | |||||||||||||||
Land |
22,977 | 29,052 | 932 | 24,296 | 759 | |||||||||||||||
Office |
4,345 | 4,404 | 111 | 4,370 | 162 | |||||||||||||||
Industrial |
4,180 | 4,181 | 178 | 4,214 | 133 | |||||||||||||||
Retail |
5,266 | 5,266 | 94 | 5,274 | 153 | |||||||||||||||
Multi-family |
4,658 | 4,658 | 81 | 4,758 | 115 | |||||||||||||||
Mixed use and other |
9,199 | 9,444 | 203 | 8,990 | 281 | |||||||||||||||
Home equity |
1,600 | 1,901 | 54 | 1,738 | 37 | |||||||||||||||
Residential real estate |
2,998 | 2,998 | 60 | 2,985 | 97 | |||||||||||||||
Premium finance receivables |
||||||||||||||||||||
Commercial insurance |
| | | | | |||||||||||||||
Life insurance |
| | | | | |||||||||||||||
Purchased life insurance |
| | | | | |||||||||||||||
Indirect consumer |
54 | 61 | 2 | 57 | 3 | |||||||||||||||
Consumer and other |
61 | 66 | 2 | 67 | 3 | |||||||||||||||
Total impaired loans, net of unearned
income, excluding
covered loans |
$ | 163,104 | $ | 188,725 | $ | 24,018 | $ | 169,335 | $ | 5,409 | ||||||||||
19
Three Months Ended June 30, 2011 | Premium | Total, | ||||||||||||||||||||||||||||||
Commercial | Residential | Finance | Indirect | Consumer | Excluding | |||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Real-estate | Home Equity | Real-estate | Receivable | Consumer | and Other | Covered Loans | ||||||||||||||||||||||||
Allowance for credit losses |
||||||||||||||||||||||||||||||||
Allowance for loan losses at beginning
of period |
$ | 28,106 | $ | 66,120 | $ | 6,466 | $ | 5,718 | $ | 6,690 | $ | 557 | $ | 1,392 | $ | 115,049 | ||||||||||||||||
Reclassification to/from allowance for
unfunded
lending-related commitments |
(120 | ) | (197 | ) | | | | | | (317 | ) | |||||||||||||||||||||
Charge-offs |
(7,583 | ) | (20,691 | ) | (1,300 | ) | (282 | ) | (2,107 | ) | (44 | ) | (266 | ) | (32,273 | ) | ||||||||||||||||
Recoveries |
301 | 463 | 19 | 3 | 5,387 | 42 | 22 | 6,237 | ||||||||||||||||||||||||
Provision for credit losses |
12,143 | 16,008 | 1,892 | 439 | (2,534 | ) | 58 | 660 | 28,666 | |||||||||||||||||||||||
Allowance for loan losses at period end |
$ | 32,847 | $ | 61,703 | $ | 7,077 | $ | 5,878 | $ | 7,436 | $ | 613 | $ | 1,808 | $ | 117,362 | ||||||||||||||||
Allowance for unfunded lending-related
commitments at period end |
$ | 120 | $ | 2,215 | $ | | $ | | $ | | $ | | $ | | $ | 2,335 | ||||||||||||||||
Allowance for credit losses at period
end |
$ | 32,967 | $ | 63,918 | $ | 7,077 | $ | 5,878 | $ | 7,436 | $ | 613 | $ | 1,808 | $ | 119,697 | ||||||||||||||||
Individually evaluated for impairment |
7,652 | 17,404 | 2,143 | 1,619 | | 9 | 330 | 29,157 | ||||||||||||||||||||||||
Collectively evaluated for impairment |
25,315 | 46,514 | 4,934 | 4,259 | 7,436 | 604 | 1,478 | 90,540 | ||||||||||||||||||||||||
Loans acquired with deteriorated
credit quality |
| | | | | | | | ||||||||||||||||||||||||
Loans at period end |
||||||||||||||||||||||||||||||||
Individually evaluated for impairment |
$ | 38,564 | $ | 162,156 | $ | 15,852 | $ | 8,458 | $ | | $ | 66 | $ | 757 | $ | 225,853 | ||||||||||||||||
Collectively evaluated for impairment |
2,093,872 | 3,212,512 | 864,850 | 320,923 | 2,396,365 | 57,652 | 100,311 | 9,046,485 | ||||||||||||||||||||||||
Loans acquired with deteriorated
credit quality |
| | | | 652,739 | | | 652,739 |
Three Months Ended June 30, 2010 | Premium | Total, | ||||||||||||||||||||||||||||||
Commercial | Residential | Finance | Indirect | Consumer | Excluding | |||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Real-estate | Home Equity | Real-estate | Receivable | Consumer | and Other | Covered Loans | ||||||||||||||||||||||||
Allowance for credit losses |
||||||||||||||||||||||||||||||||
Allowance for loan losses at beginning
of period |
$ | 28,772 | $ | 52,587 | $ | 9,952 | $ | 3,457 | $ | 5,754 | $ | 1,063 | $ | 812 | $ | 102,397 | ||||||||||||||||
Other adjustments |
| | | | | | | | ||||||||||||||||||||||||
Reclassification to/from allowance for
unfunded
lending-related commitments |
1,439 | (825 | ) | 171 | | | | | 785 | |||||||||||||||||||||||
Charge-offs |
(4,781 | ) | (12,311 | ) | (3,089 | ) | (310 | ) | (17,747 | ) | (256 | ) | (109 | ) | (38,603 | ) | ||||||||||||||||
Recoveries |
143 | 218 | 6 | 2 | 188 | 81 | 33 | 671 | ||||||||||||||||||||||||
Provision for credit losses |
5,143 | 15,795 | 1,326 | 424 | 18,425 | (70 | ) | 254 | 41,297 | |||||||||||||||||||||||
Allowance for loan losses at period end |
$ | 30,716 | $ | 55,464 | $ | 8,366 | $ | 3,573 | $ | 6,620 | $ | 818 | $ | 990 | $ | 106,547 | ||||||||||||||||
Allowance for unfunded lending-related
commitments at period end |
$ | | $ | 2,169 | $ | | $ | | $ | | $ | | $ | | $ | 2,169 | ||||||||||||||||
Allowance for credit losses at period
end |
$ | 30,716 | $ | 57,633 | $ | 8,366 | $ | 3,573 | $ | 6,620 | $ | 818 | $ | 990 | $ | 108,716 | ||||||||||||||||
Individually evaluated for impairment |
$ | 5,597 | $ | 16,356 | $ | 1,401 | $ | 217 | $ | | $ | 9 | $ | | $ | 23,580 | ||||||||||||||||
Collectively evaluated for impairment |
$ | 25,119 | $ | 41,277 | $ | 6,965 | $ | 3,356 | $ | 6,620 | $ | 809 | $ | 990 | $ | 85,136 | ||||||||||||||||
Loans acquired with deteriorated
credit quality |
$ | | $ | | $ | | $ | | $ | | $ | | $ | | $ | | ||||||||||||||||
Loans at period end |
||||||||||||||||||||||||||||||||
Individually evaluated for impairment |
$ | 14,515 | $ | 71,686 | $ | 5,751 | $ | 1,626 | $ | | $ | 41 | $ | 15 | $ | 93,634 | ||||||||||||||||
Collectively evaluated for impairment |
1,813,103 | 3,276,137 | 916,554 | 331,047 | 1,937,373 | 68,970 | 99,076 | 8,442,260 | ||||||||||||||||||||||||
Loans acquired with deteriorated
credit quality |
| | | | 788,269 | | | 788,269 |
20
Six Months Ended June 30, 2011 | Premium | Total, | ||||||||||||||||||||||||||||||
Commercial | Residential | Finance | Indirect | Consumer | Excluding | |||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Real-estate | Home Equity | Real-estate | Receivable | Consumer | and Other | Covered Loans | ||||||||||||||||||||||||
Allowance for credit losses |
||||||||||||||||||||||||||||||||
Allowance for loan losses at beginning of period |
$ | 31,777 | $ | 62,618 | $ | 6,213 | $ | 5,107 | $ | 6,319 | $ | 526 | $ | 1,343 | $ | 113,903 | ||||||||||||||||
Reclassification to/from allowance for unfunded
lending-related commitments |
1,530 | 269 | | | | | | 1,799 | ||||||||||||||||||||||||
Charge-offs |
(16,723 | ) | (34,033 | ) | (2,073 | ) | (1,557 | ) | (3,644 | ) | (164 | ) | (426 | ) | (58,620 | ) | ||||||||||||||||
Recoveries |
567 | 801 | 27 | 5 | 5,655 | 108 | 75 | 7,238 | ||||||||||||||||||||||||
Provision for credit losses |
15,696 | 32,048 | 2,910 | 2,323 | (894 | ) | 143 | 816 | 53,042 | |||||||||||||||||||||||
Allowance for loan losses at period end |
$ | 32,847 | $ | 61,703 | $ | 7,077 | $ | 5,878 | $ | 7,436 | $ | 613 | $ | 1,808 | $ | 117,362 | ||||||||||||||||
Allowance for unfunded lending-related
commitments at period end |
$ | 120 | $ | 2,215 | $ | | $ | | $ | | $ | | $ | | $ | 2,335 | ||||||||||||||||
Allowance for credit losses at period end |
$ | 32,967 | $ | 63,918 | $ | 7,077 | $ | 5,878 | $ | 7,436 | $ | 613 | $ | 1,808 | $ | 119,697 | ||||||||||||||||
Six Months Ended June 30, 2010 | Premium | Total, | ||||||||||||||||||||||||||||||
Commercial | Residential | Finance | Indirect | Consumer | Excluding | |||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Real-estate | Home Equity | Real-estate | Receivable | Consumer | and Other | Covered Loans | ||||||||||||||||||||||||
Allowance for credit losses |
||||||||||||||||||||||||||||||||
Allowance for loan losses at beginning of period |
$ | 28,012 | $ | 50,952 | $ | 9,013 | $ | 3,139 | $ | 3,816 | $ | 1,368 | $ | 1,977 | $ | 98,277 | ||||||||||||||||
Other adjustments |
| | | | 1,943 | | | 1,943 | ||||||||||||||||||||||||
Reclassification to/from allowance for unfunded
lending-related commitments |
| 684 | | | | | | 684 | ||||||||||||||||||||||||
Charge-offs |
(9,456 | ) | (32,554 | ) | (3,370 | ) | (717 | ) | (19,680 | ) | (529 | ) | (288 | ) | (66,594 | ) | ||||||||||||||||
Recoveries |
586 | 660 | 13 | 7 | 417 | 132 | 80 | 1,895 | ||||||||||||||||||||||||
Provision for credit losses |
11,574 | 35,722 | 2,710 | 1,144 | 20,124 | (153 | ) | (779 | ) | 70,342 | ||||||||||||||||||||||
Allowance for loan losses at period end |
$ | 30,716 | $ | 55,464 | $ | 8,366 | $ | 3,573 | $ | 6,620 | $ | 818 | $ | 990 | $ | 106,547 | ||||||||||||||||
Allowance for unfunded lending-related
commitments at period end |
$ | | $ | 2,169 | $ | | $ | | $ | | $ | | $ | | $ | 2,169 | ||||||||||||||||
Allowance for credit losses at period end |
$ | 30,716 | $ | 57,633 | $ | 8,366 | $ | 3,573 | $ | 6,620 | $ | 818 | $ | 990 | $ | 108,716 | ||||||||||||||||
21
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||
(Dollars in thousands) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Balance at beginning of period |
$ | 4,844 | $ | | $ | | $ | | ||||||||
Provision for covered loan losses before benefit attributable to
FDIC loss share agreements |
2,599 | | 7,443 | | ||||||||||||
Benefit attributable to FDIC loss share agreements |
(2,078 | ) | | (5,954 | ) | | ||||||||||
Net provision for covered loan losses |
521 | | 1,489 | | ||||||||||||
Increase in FDIC indemnification asset |
2,076 | | 5,952 | | ||||||||||||
Loans charged-off |
| | | | ||||||||||||
Recoveries of loans charged-off |
2 | | 2 | | ||||||||||||
Net charge-offs |
2 | | 2 | | ||||||||||||
Balance at end of period |
$ | 7,443 | $ | | $ | 7,443 | $ | | ||||||||
22
June 30, | December 31, | June 30, | ||||||||||
(Dollars in thousands) | 2011 | 2010 | 2010 | |||||||||
Cash collateral accounts |
$ | 1,759 | $ | 1,759 | $ | 1,759 | ||||||
Collections and interest funding accounts |
21,517 | 34,861 | 81,742 | |||||||||
Interest-bearing deposits with banks restricted for securitization investors |
$ | 23,276 | $ | 36,620 | $ | 83,501 | ||||||
Loans, net of unearned income restricted for securitization investors |
$ | 662,528 | $ | 648,439 | $ | 600,834 | ||||||
Allowance for loan losses |
(2,234 | ) | (2,171 | ) | (1,977 | ) | ||||||
Net loans restricted for securitization investors |
$ | 660,294 | $ | 646,268 | $ | 598,857 | ||||||
Other assets |
2,557 | 2,289 | 1,949 | |||||||||
Total assets |
$ | 686,127 | $ | 685,177 | $ | 684,307 | ||||||
Secured borrowings owed to securitization investors |
$ | 600,000 | $ | 600,000 | $ | 600,000 | ||||||
Other liabilities |
4,750 | 4,458 | 3,914 | |||||||||
Total liabilities |
$ | 604,750 | $ | 604,458 | $ | 603,914 | ||||||
January 1, | Goodwill | Impairment | June 30, | |||||||||||||
(Dollars in thousands) | 2011 | Acquired | Loss | 2011 | ||||||||||||
Community banking |
$ | 250,766 | $ | 2,111 | $ | | $ | 252,877 | ||||||||
Specialty finance |
16,095 | | | 16,095 | ||||||||||||
Wealth management |
14,329 | | | 14,329 | ||||||||||||
Total |
$ | 281,190 | $ | 2,111 | $ | | $ | 283,301 | ||||||||
23
June 30, | December 31, | June 30, | ||||||||||
(Dollars in thousands) | 2011 | 2010 | 2010 | |||||||||
Specialty finance segment: |
||||||||||||
Customer list intangibles: |
||||||||||||
Gross carrying amount |
$ | 1,800 | $ | 1,800 | $ | 5,052 | ||||||
Accumulated amortization |
(361 | ) | (253 | ) | (3,401 | ) | ||||||
Net carrying amount |
$ | 1,439 | $ | 1,547 | $ | 1,651 | ||||||
Community banking segment: |
||||||||||||
Core deposit intangibles: |
||||||||||||
Gross carrying amount |
$ | 29,808 | $ | 29,608 | $ | 28,888 | ||||||
Accumulated amortization |
(19,715 | ) | (18,580 | ) | (17,264 | ) | ||||||
Net carrying amount |
$ | 10,093 | $ | 11,028 | $ | 11,624 | ||||||
Total other intangible assets, net |
$ | 11,532 | $ | 12,575 | $ | 13,275 | ||||||
Estimated amortization | ||||
Actual in six months ended June 30, 2011 |
$ | 1,393 | ||
Estimated remaining in 2011 |
1,392 | |||
Estimated 2012 |
2,728 | |||
Estimated 2013 |
2,639 | |||
Estimated 2014 |
2,293 | |||
Estimated 2015 |
915 |
June 30, | December 31, | June 30, | ||||||||||
(Dollars in thousands) | 2011 | 2010 | 2010 | |||||||||
Balance: |
||||||||||||
Non-interest bearing |
$ | 1,397,433 | $ | 1,201,194 | $ | 953,814 | ||||||
NOW |
1,530,068 | 1,561,507 | 1,560,733 | |||||||||
Wealth management deposits |
737,428 | 658,660 | 694,830 | |||||||||
Money market |
1,985,661 | 1,759,866 | 1,722,729 | |||||||||
Savings |
736,974 | 744,534 | 594,753 | |||||||||
Time certificates of deposit |
4,871,696 | 4,877,912 | 5,097,883 | |||||||||
Total deposits |
$ | 11,259,260 | $ | 10,803,673 | $ | 10,624,742 | ||||||
Mix: |
||||||||||||
Non-interest bearing |
12 | % | 11 | % | 9 | % | ||||||
NOW |
14 | 15 | 15 | |||||||||
Wealth management deposits |
6 | 6 | 6 | |||||||||
Money market |
18 | 16 | 16 | |||||||||
Savings |
7 | 7 | 6 | |||||||||
Time certificates of deposit |
43 | 45 | 48 | |||||||||
Total deposits |
100 | % | 100 | % | 100 | % | ||||||
24
June 30, | December 31, | June 30, | ||||||||||
(Dollars in thousands) | 2011 | 2010 | 2010 | |||||||||
Notes payable |
$ | 1,000 | $ | 1,000 | $ | 1,000 | ||||||
Federal Home Loan Bank advances |
423,500 | 423,500 | 415,571 | |||||||||
Other borrowings: |
||||||||||||
Securities sold under repurchase agreements |
395,724 | 217,289 | 218,424 | |||||||||
Other |
36,982 | 43,331 | | |||||||||
Total other borrowings |
432,706 | 260,620 | 218,424 | |||||||||
Secured borrowings owed to securitization investors |
600,000 | 600,000 | 600,000 | |||||||||
Subordinated notes |
40,000 | 50,000 | 55,000 | |||||||||
Total notes payable, Federal Home Loan Bank advances, other borrowings,
secured borrowings, and subordinated notes |
$ | 1,497,206 | $ | 1,335,120 | $ | 1,289,995 | ||||||
25
Junior | Earliest | |||||||||||||||||||||||||||||||
Common | Trust Preferred | Subordinated | Rate | Contractual rate | Issue | Maturity | Redemption | |||||||||||||||||||||||||
(Dollars in thousands) | Securities | Securities | Debentures | Structure | at 6/30/11 | Date | Date | Date | ||||||||||||||||||||||||
Wintrust Capital Trust III |
$ | 774 | $ | 25,000 | $ | 25,774 | L+3.25 | 3.53 | % | 04/2003 | 04/2033 | 04/2008 | ||||||||||||||||||||
Wintrust Statutory Trust IV |
619 | 20,000 | 20,619 | L+2.80 | 3.05 | % | 12/2003 | 12/2033 | 12/2008 | |||||||||||||||||||||||
Wintrust Statutory Trust V |
1,238 | 40,000 | 41,238 | L+2.60 | 2.85 | % | 05/2004 | 05/2034 | 06/2009 | |||||||||||||||||||||||
Wintrust Capital Trust VII |
1,550 | 50,000 | 51,550 | L+1.95 | 2.20 | % | 12/2004 | 03/2035 | 03/2010 | |||||||||||||||||||||||
Wintrust Capital Trust VIII |
1,238 | 40,000 | 41,238 | L+1.45 | 1.70 | % | 08/2005 | 09/2035 | 09/2010 | |||||||||||||||||||||||
Wintrust Captial Trust IX |
1,547 | 50,000 | 51,547 | Fixed | 6.84 | % | 09/2006 | 09/2036 | 09/2011 | |||||||||||||||||||||||
Northview Capital Trust I |
186 | 6,000 | 6,186 | L+3.00 | 3.27 | % | 08/2003 | 11/2033 | 08/2008 | |||||||||||||||||||||||
Town Bankshares Capital Trust I |
186 | 6,000 | 6,186 | L+3.00 | 3.27 | % | 08/2003 | 11/2033 | 08/2008 | |||||||||||||||||||||||
First Northwest Capital Trust I |
155 | 5,000 | 5,155 | L+3.00 | 3.25 | % | 05/2004 | 05/2034 | 05/2009 | |||||||||||||||||||||||
Total |
$ | 249,493 | 3.46 | % | ||||||||||||||||||||||||||||
26
27
Three Months Ended | ||||||||||||||||
June 30, | $ Change in | % Change in | ||||||||||||||
(Dollars in thousands) | 2011 | 2010 | Contribution | Contribution | ||||||||||||
Net interest income: |
||||||||||||||||
Community banking |
$ | 101,580 | $ | 97,437 | $ | 4,143 | 4 | % | ||||||||
Specialty finance |
27,974 | 22,378 | 5,596 | 25 | ||||||||||||
Wealth management |
886 | 2,437 | (1,551 | ) | (64 | ) | ||||||||||
Parent and inter-segment eliminations |
(21,734 | ) | (17,938 | ) | (3,796 | ) | (21 | ) | ||||||||
Total net interest income |
$ | 108,706 | $ | 104,314 | 4,392 | 4 | % | |||||||||
Non-interest income: |
||||||||||||||||
Community banking |
$ | 24,967 | $ | 41,618 | $ | (16,651 | ) | (40 | )% | |||||||
Specialty finance |
781 | 707 | 74 | 10 | ||||||||||||
Wealth management |
13,432 | 11,069 | 2,363 | 21 | ||||||||||||
Parent and inter-segment eliminations |
(2,528 | ) | (2,958 | ) | 430 | 15 | ||||||||||
Total non-interest income |
$ | 36,652 | $ | 50,436 | (13,784 | ) | (27 | )% | ||||||||
Net revenue: |
||||||||||||||||
Community banking |
$ | 126,547 | $ | 139,055 | $ | (12,508 | ) | (9 | )% | |||||||
Specialty finance |
28,755 | 23,085 | 5,670 | 25 | ||||||||||||
Wealth management |
14,318 | 13,506 | 812 | 6 | ||||||||||||
Parent and inter-segment eliminations |
(24,262 | ) | (20,896 | ) | (3,366 | ) | (16 | ) | ||||||||
Total net revenue |
$ | 145,358 | $ | 154,750 | (9,392 | ) | (6 | )% | ||||||||
Segment profit (loss): |
||||||||||||||||
Community banking |
$ | 10,630 | $ | 24,604 | $ | (13,974 | ) | (57 | )% | |||||||
Specialty finance |
15,413 | (493 | ) | 15,906 | NM | |||||||||||
Wealth management |
980 | 1,316 | (336 | ) | (26 | ) | ||||||||||
Parent and inter-segment eliminations |
(15,273 | ) | (12,418 | ) | (2,855 | ) | (23 | ) | ||||||||
Total segment profit (loss) |
$ | 11,750 | $ | 13,009 | (1,259 | ) | (10 | )% | ||||||||
Segment assets: |
||||||||||||||||
Community banking |
$ | 13,768,237 | $ | 12,875,801 | $ | 892,436 | 7 | % | ||||||||
Specialty finance |
3,211,599 | 2,886,020 | 325,579 | 11 | ||||||||||||
Wealth management |
67,262 | 66,123 | 1,139 | 2 | ||||||||||||
Parent and inter-segment eliminations |
(2,431,201 | ) | (2,119,384 | ) | (311,817 | ) | (15 | ) | ||||||||
Total segment assets |
$ | 14,615,897 | $ | 13,708,560 | 907,337 | 7 | % | |||||||||
Six Months Ended | ||||||||||||||||
June 30, | $ Change in | % Change in | ||||||||||||||
(Dollars in thousands) | 2011 | 2010 | Contribution | Contribution | ||||||||||||
Net interest income: |
||||||||||||||||
Community banking |
$ | 202,811 | $ | 185,461 | $ | 17,350 | 9 | % | ||||||||
Specialty finance |
56,006 | 45,411 | 10,595 | 23 | ||||||||||||
Wealth management |
3,439 | 4,979 | (1,540 | ) | (31 | ) | ||||||||||
Parent and inter-segment eliminations |
(43,936 | ) | (35,672 | ) | (8,264 | ) | (23 | ) | ||||||||
Total net interest income |
$ | 218,320 | $ | 200,179 | 18,141 | 9 | % | |||||||||
Non-interest income: |
||||||||||||||||
Community banking |
$ | 53,458 | $ | 56,814 | $ | (3,356 | ) | (6 | )% | |||||||
Specialty finance |
1,498 | 12,183 | (10,685 | ) | (88 | ) | ||||||||||
Wealth management |
26,430 | 21,757 | 4,673 | 21 | ||||||||||||
Parent and inter-segment eliminations |
(3,847 | ) | 2,290 | (6,137 | ) | NM | ||||||||||
Total non-interest income |
$ | 77,539 | $ | 93,044 | (15,505 | ) | (17 | )% | ||||||||
Net revenue: |
||||||||||||||||
Community banking |
$ | 256,269 | $ | 242,275 | $ | 13,994 | 6 | % | ||||||||
Specialty finance |
57,504 | 57,594 | (90 | ) | | |||||||||||
Wealth management |
29,869 | 26,736 | 3,133 | 12 | ||||||||||||
Parent and inter-segment eliminations |
(47,783 | ) | (33,382 | ) | (14,401 | ) | (43 | ) | ||||||||
Total net revenue |
$ | 295,859 | $ | 293,223 | 2,636 | 1 | % | |||||||||
Segment profit: |
||||||||||||||||
Community banking |
$ | 28,271 | $ | 30,627 | $ | (2,356 | ) | (8 | )% | |||||||
Specialty finance |
27,965 | 15,414 | 12,551 | 81 | ||||||||||||
Wealth management |
2,703 | 2,373 | 330 | 14 | ||||||||||||
Parent and inter-segment eliminations |
(30,787 | ) | (19,387 | ) | (11,400 | ) | (59 | ) | ||||||||
Total segment profit |
$ | 28,152 | $ | 29,027 | (875 | ) | (3 | )% | ||||||||
28
Derivative Assets | Derivative Liabilties | |||||||||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||||||||
Balance | Balance | |||||||||||||||||||||||
Sheet | June 30, | June 30, | Sheet | June 30, | June 30, | |||||||||||||||||||
(Dollars in thousands) | Location | 2011 | 2010 | Location | 2011 | 2010 | ||||||||||||||||||
Derivatives designated as
hedging instruments under
ASC 815: |
||||||||||||||||||||||||
Interest rate derivatives designated
as Cash Flow Hedges |
Other assets | $ | 547 | $ | | Other liabilities | $ | 10,555 | $ | 15,408 | ||||||||||||||
Derivatives not designed as
hedging instruments under
ASC 815: |
||||||||||||||||||||||||
Interest rate derivatives |
Other assets | 17,515 | 11,677 | Other liabilities | 18,075 | 12,297 | ||||||||||||||||||
Interest rate lock
commitments |
Other assets | 2,243 | 4,651 | Other liabilities | 539 | 166 | ||||||||||||||||||
Forward commitments to sell
mortgage loans |
Other assets | 691 | 122 | Other liabilities | 1,420 | 7,785 | ||||||||||||||||||
Total derivatives not
designated as hedging
instruments under ASC 815 |
$ | 20,449 | $ | 16,450 | $ | 20,034 | $ | 20,248 | ||||||||||||||||
Total derivatives |
$ | 20,996 | $ | 16,450 | $ | 30,589 | $ | 35,656 | ||||||||||||||||
29
June 30, 2011 | ||||||||
(Dollars in thousands) | Notional | Fair Value | ||||||
Maturity Date | Amount | Gain (Loss) | ||||||
Interest Rate Swaps: |
||||||||
September 2011 |
$ | 20,000 | $ | (252 | ) | |||
September 2011 |
40,000 | (506 | ) | |||||
October 2011 |
25,000 | (230 | ) | |||||
September 2013 |
50,000 | (5,019 | ) | |||||
September 2013 |
40,000 | (4,072 | ) | |||||
September 2016* |
50,000 | (330 | ) | |||||
October 2016* |
25,000 | (146 | ) | |||||
Total Interest Rate Swaps |
250,000 | (10,555 | ) | |||||
Interest Rate Caps: |
||||||||
September 2014* |
20,000 | 182 | ||||||
September 2014* |
40,000 | 365 | ||||||
Total Interest Rate Caps |
60,000 | 547 | ||||||
Total Cash Flow Hedges |
$ | 310,000 | $ | (10,008 | ) | |||
* | Forward starting in the third and fourth quarters of 2011 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
(Dollars in thousands) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Unrealized loss at beginning of period |
$ | (11,202 | ) | $ | (15,754 | ) | $ | (13,323 | ) | $ | (15,487 | ) | ||||
Amount reclassified from accumulated other comprehensive income to
interest expense on junior subordinated debentures |
2,197 | 2,199 | 4,369 | 4,392 | ||||||||||||
Amount of loss recognized in other comprehensive income |
(1,115 | ) | (2,414 | ) | (1,166 | ) | (4,874 | ) | ||||||||
Unrealized loss at end of period |
$ | (10,120 | ) | $ | (15,969 | ) | $ | (10,120 | ) | $ | (15,969 | ) | ||||
30
Three Months Ended | Six Months Ended | |||||||||||||||||||
(Dollars in thousands) | June 30, | June 30, | ||||||||||||||||||
Derivative | Location in income statement | 2011 | 2010 | 2011 | 2010 | |||||||||||||||
Interest rate swaps and floors |
Trading gains/losses | $ | (94 | ) | $ | (227 | ) | $ | (628 | ) | $ | (303 | ) | |||||||
Mortgage banking derivatives |
Mortgage banking revenue | (165 | ) | (6,458 | ) | (1,508 | ) | (8,601 | ) | |||||||||||
Covered call options |
Other income | 2,287 | 169 | 4,757 | 459 |
31
| Level 1 unadjusted quoted prices in active markets for identical assets or liabilities. | ||
| Level 2 inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability or inputs that are derived principally from or corroborated by observable market data by correlation or other means. | ||
| Level 3 significant unobservable inputs that reflect the Companys own assumptions that market participants would use in pricing the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. |
32
June 30, 2011 | ||||||||||||||||
(Dollars in thousands) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Available-for-sale securities |
||||||||||||||||
U.S. Treasury |
$ | 100,737 | $ | | $ | 100,737 | $ | | ||||||||
U.S. Government agencies |
683,690 | | 683,690 | | ||||||||||||
Municipal |
49,457 | | 24,932 | 24,525 | ||||||||||||
Corporate notes and other |
214,252 | | 197,939 | 16,313 | ||||||||||||
Mortgage-backed |
365,323 | | 362,639 | 2,684 | ||||||||||||
Equity securities (1) |
42,967 | | 12,076 | 30,891 | ||||||||||||
Trading account securities |
509 | | 337 | 172 | ||||||||||||
Mortgage loans held-for-sale |
133,083 | | 133,083 | | ||||||||||||
Mortgage servicing rights |
8,762 | | | 8,762 | ||||||||||||
Nonqualified deferred compensations assets |
4,564 | | 4,564 | | ||||||||||||
Derivative assets |
20,996 | | 20,996 | | ||||||||||||
Total |
$ | 1,624,340 | $ | | $ | 1,540,993 | $ | 83,347 | ||||||||
Derivative liabilities |
$ | 30,589 | $ | | $ | 30,589 | $ | | ||||||||
June 30, 2010 | ||||||||||||||||
(Dollars in thousands) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Available-for-sale securities |
||||||||||||||||
U.S. Treasury |
$ | 117,013 | $ | | $ | 117,013 | $ | | ||||||||
U.S. Government agencies |
796,937 | | 796,937 | | ||||||||||||
Municipal |
51,892 | | 37,864 | 14,028 | ||||||||||||
Corporate notes and other |
74,995 | | 63,643 | 11,352 | ||||||||||||
Mortgage-backed |
341,550 | | 196,219 | 145,331 | ||||||||||||
Equity securities (1) |
35,648 | | 8,757 | 26,891 | ||||||||||||
Trading account securities |
38,261 | 53 | 1,399 | 36,809 | ||||||||||||
Mortgage loans held-for-sale |
222,703 | | 222,703 | | ||||||||||||
Mortgage servicing rights |
5,347 | | | 5,347 | ||||||||||||
Nonqualified deferred compensations assets |
3,135 | | 3,135 | | ||||||||||||
Derivative assets |
16,450 | | 16,450 | | ||||||||||||
Total |
$ | 1,703,931 | $ | 53 | $ | 1,464,120 | $ | 239,758 | ||||||||
Derivative liabilities |
$ | 35,656 | $ | | $ | 35,656 | $ | | ||||||||
(1) | Excludes the common securities issued by trusts formed by the Company in conjunction with Trust Preferred Securities offerings. |
33
Corporate | Trading | Mortgage | ||||||||||||||||||||||
notes and | Mortgage- | Equity | Account | servicing | ||||||||||||||||||||
(Dollars in thousands) | Municipal | other debt | backed | securities | Securities | rights | ||||||||||||||||||
Balance at March 31, 2011 |
$ | 15,594 | $ | 9,713 | $ | 2,723 | $ | 28,745 | $ | 640 | $ | 9,448 | ||||||||||||
Total net gains (losses) included in: |
||||||||||||||||||||||||
Net income (1) |
| (146 | ) | (39 | ) | | | (686 | ) | |||||||||||||||
Other comprehensive income |
(748 | ) | | | 346 | | | |||||||||||||||||
Purchases |
5,181 | 6,746 | | 1,800 | | | ||||||||||||||||||
Issuances |
| | | | | | ||||||||||||||||||
Sales |
(5 | ) | | | | (468 | ) | | ||||||||||||||||
Settlements |
| | | | | | ||||||||||||||||||
Net transfers into Level 3 (2) |
4,503 | | | | | | ||||||||||||||||||
Balance at June 30, 2011 |
$ | 24,525 | $ | 16,313 | $ | 2,684 | $ | 30,891 | $ | 172 | $ | 8,762 | ||||||||||||
Balance at January 1, 2011 |
$ | 16,416 | $ | 9,841 | $ | 2,460 | $ | 28,672 | $ | 4,372 | $ | 8,762 | ||||||||||||
Total net gains (losses) included in: |
||||||||||||||||||||||||
Net income (1) |
| (274 | ) | (53 | ) | | | | ||||||||||||||||
Other comprehensive income |
(748 | ) | | | 419 | | | |||||||||||||||||
Purchases |
9,138 | 6,746 | 277 | 1,800 | | | ||||||||||||||||||
Issuances |
| | | | | | ||||||||||||||||||
Sales |
(4,784 | ) | | | | (4,200 | ) | | ||||||||||||||||
Settlements |
| | | | | | ||||||||||||||||||
Net transfers into Level 3 (2) |
4,503 | | | | | | ||||||||||||||||||
Balance at June 30, 2011 |
$ | 24,525 | $ | 16,313 | $ | 2,684 | $ | 30,891 | $ | 172 | $ | 8,762 | ||||||||||||
(1) | Income for Corporate notes and other debt, and mortgage-backed are recognized as a component of interest income on securities. Additionally, changes in the balance of mortgage servicing rights are recorded as a component of mortgage banking revenue in non-interest income. | |
(2) | The transfer of Municipal securities into Level 3 is the result of the use of unobservable inputs that reflect the Companys own assumptions that market participants would use in pricing these securities. |
Corporate | Trading | Mortgage | ||||||||||||||||||||||||||
notes and | Mortgage- | Equity | Account | servicing | Retained | |||||||||||||||||||||||
(Dollars in thousands) | Municipal | other debt | backed | securities | Securities | rights | interests | |||||||||||||||||||||
Balance at March 31, 2010 |
$ | 15,134 | $ | 11,582 | $ | 154,469 | $ | 26,800 | $ | 37,895 | $ | 6,602 | $ | | ||||||||||||||
Total net gains (losses) included in: |
||||||||||||||||||||||||||||
Net income (1) |
| (38 | ) | | | (1,086 | ) | (1,255 | ) | | ||||||||||||||||||
Other comprehensive income |
| (192 | ) | 6,500 | | | | | ||||||||||||||||||||
Purchases, issuances, sales and settlements, net |
(1,106 | ) | | (16,372 | ) | 91 | | | | |||||||||||||||||||
Net transfers into Level 3 |
| | 734 | | | | | |||||||||||||||||||||
Balance at June 30, 2010 |
$ | 14,028 | $ | 11,352 | $ | 145,331 | $ | 26,891 | $ | 36,809 | $ | 5,347 | $ | | ||||||||||||||
Balance at January 1, 2010 |
$ | 17,152 | $ | 51,194 | $ | 158,449 | $ | 26,800 | $ | 31,924 | $ | 6,745 | $ | 43,541 | ||||||||||||||
Total net gains (losses) included in: |
||||||||||||||||||||||||||||
Net income (1) |
| (33 | ) | | | 4,885 | (1,398 | ) | | |||||||||||||||||||
Other comprehensive income |
| 835 | 2,520 | | | | | |||||||||||||||||||||
Purchases, issuances, sales and settlements, net |
(3,124 | ) | (40,644 | ) | (16,372 | ) | 91 | | | (43,541 | ) | |||||||||||||||||
Net transfers into Level 3 |
| | 734 | | | | | |||||||||||||||||||||
Balance at June 30, 2010 |
$ | 14,028 | $ | 11,352 | $ | 145,331 | $ | 26,891 | $ | 36,809 | $ | 5,347 | $ | | ||||||||||||||
(1) | Income for Corporate notes and other debt is recognized as a component of interest income on securities. Additionally, income for trading account securities is recognized as a component of trading income in non-interest income and trading account securities interest income. Changes in the balance of mortgage servicing rights are recorded as a component of mortgage banking revenue in non-interest income. |
34
Three Months | Six Months | |||||||||||||||||||||||
Ended | Ended | |||||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||||
2011 | 2011 | |||||||||||||||||||||||
Fair Value | Fair Value | |||||||||||||||||||||||
June 30, 2011 | Losses | Losses | ||||||||||||||||||||||
(Dollars in thousands) | Total | Level 1 | Level 2 | Level 3 | Recognized | Recognized | ||||||||||||||||||
Impaired loans |
$ | 225,853 | $ | | $ | | $ | 225,853 | $ | 18,466 | $ | 30,584 | ||||||||||||
Other real estate owned |
82,772 | | | 82,772 | 7,422 | 13,615 | ||||||||||||||||||
Mortgage loans
held-for-sale, at
lower of cost or
market |
5,881 | | 5,881 | | | (358 | ) | |||||||||||||||||
Total |
$ | 314,506 | $ | | $ | 5,881 | $ | 308,625 | $ | 25,888 | $ | 43,841 | ||||||||||||
35
At June 30, 2011 | At December 31, 2010 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
(Dollars in thousands) | Value | Value | Value | Value | ||||||||||||
Financial Assets: |
||||||||||||||||
Cash and cash equivalents |
$ | 184,068 | $ | 184,068 | $ | 172,580 | $ | 172,580 | ||||||||
Interest bearing deposits with banks |
990,308 | 990,308 | 865,575 | 865,575 | ||||||||||||
Available-for-sale securities |
1,456,426 | 1,456,426 | 1,496,302 | 1,496,302 | ||||||||||||
Trading account securities |
509 | 509 | 4,879 | 4,879 | ||||||||||||
Brokerage customer receivables |
29,736 | 29,736 | 24,549 | 24,549 | ||||||||||||
Federal Home Loan Bank and Federal
Reserve Bank stock, at cost |
86,761 | 86,761 | 82,407 | 82,407 | ||||||||||||
Mortgage loans held-for-sale, at fair value |
133,083 | 133,083 | 356,662 | 356,662 | ||||||||||||
Mortgage loans held-for-sale, at lower of cost
or market |
5,881 | 5,946 | 14,785 | 14,841 | ||||||||||||
Total loans |
10,333,746 | 10,715,086 | 9,934,239 | 10,088,429 | ||||||||||||
Mortgage servicing rights |
8,762 | 8,762 | 8,762 | 8,762 | ||||||||||||
Nonqualified deferred compensation assets |
4,564 | 4,564 | 3,613 | 3,613 | ||||||||||||
Derivative assets |
20,996 | 20,996 | 18,670 | 18,670 | ||||||||||||
FDIC indemnification asset |
110,049 | 110,049 | 118,182 | 118,182 | ||||||||||||
Accrued interest receivable and other |
138,435 | 138,435 | 137,744 | 137,744 | ||||||||||||
Total financial assets |
$ | 13,503,324 | $ | 13,884,729 | $ | 13,238,949 | $ | 13,393,195 | ||||||||
Financial Liabilities |
||||||||||||||||
Non-maturity deposits |
$ | 6,387,564 | 6,387,564 | $ | 5,925,761 | $ | 5,925,761 | |||||||||
Deposits with stated maturities |
4,871,696 | 4,914,025 | 4,877,912 | 4,925,403 | ||||||||||||
Notes payable |
1,000 | 1,000 | 1,000 | 1,000 | ||||||||||||
Federal Home Loan Bank advances |
423,500 | 451,861 | 423,500 | 440,644 | ||||||||||||
Subordinated notes |
40,000 | 40,000 | 50,000 | 50,000 | ||||||||||||
Other borrowings |
432,706 | 432,706 | 260,620 | 260,620 | ||||||||||||
Secured borrowings owed to
securitization investors |
600,000 | 605,792 | 600,000 | 600,333 | ||||||||||||
Junior subordinated debentures |
249,493 | 181,914 | 249,493 | 183,818 | ||||||||||||
Derivative liabilities |
30,589 | 30,589 | 29,974 | 29,974 | ||||||||||||
Accrued interest payable and other |
13,555 | 13,555 | 15,518 | 15,518 | ||||||||||||
Total financial liabilities |
$ | 13,050,103 | $ | 13,059,006 | $ | 12,433,778 | $ | 12,433,071 | ||||||||
36
37
Six Months Ended | ||||||||
June 30, | ||||||||
2011 | 2010 | |||||||
Expected dividend yield |
* | 0.5 | % | |||||
Expected volatility |
* | 48.2 | % | |||||
Risk-free rate |
* | 2.8 | % | |||||
Expected option life (in years) |
* | 6.2 |
* | No options were granted in the six months ending June 30, 2011. |
Weighted | Remaining | Intrinsic | ||||||||||||||
Common | Average | Contractual | Value(2) | |||||||||||||
Stock Options | Shares | Strike Price | Term(1) | ($000) | ||||||||||||
Outstanding at January 1,
2011 |
2,040,701 | $ | 38.92 | |||||||||||||
Granted |
| |||||||||||||||
Exercised |
(45,233 | ) | 15.66 | |||||||||||||
Forfeited or canceled |
(95,049 | ) | 46.59 | |||||||||||||
Outstanding at June 30, 2011 |
1,900,419 | $ | 39.09 | 2.8 | $ | 6,589 | ||||||||||
Exercisable at June 30, 2011 |
1,723,012 | $ | 39.86 | 2.6 | $ | 6,099 | ||||||||||
Weighted | Remaining | Intrinsic | ||||||||||||||
Common | Average | Contractual | Value(2) | |||||||||||||
Stock Options | Shares | Strike Price | Term(1) | ($000) | ||||||||||||
Outstanding at January 1,
2010 |
2,156,209 | $ | 37.61 | |||||||||||||
Granted |
57,865 | 35.05 | ||||||||||||||
Exercised |
(108,451 | ) | 16.11 | |||||||||||||
Forfeited or canceled |
(39,236 | ) | 51.48 | |||||||||||||
Outstanding at June 30, 2010 |
2,066,387 | $ | 38.40 | 3.6 | $ | 9,268 | ||||||||||
Exercisable at June 30, 2010 |
1,789,954 | $ | 38.69 | 3.4 | $ | 8,566 | ||||||||||
(1) | Represents the weighted average contractual life remaining in years. | |
(2) | Aggregate intrinsic value represents the total pre-tax intrinsic value (i.e., the difference between the Companys average of the high and low stock price on the last trading day of the quarter and the option exercise price, multiplied by the number of shares) that would have been received by the option holders if they had exercised their options on the last day of the quarter. This amount will change based on the fair market value of the Companys stock. |
38
Six Months Ended | Six Months Ended | |||||||||||||||
June 30, 2011 | June 30, 2010 | |||||||||||||||
Weighted | Weighted | |||||||||||||||
Average | Average | |||||||||||||||
Common | Grant-Date | Common | Grant-Date | |||||||||||||
Restricted Shares | Shares | Fair Value | Shares | Fair Value | ||||||||||||
Outstanding at January 1 |
299,040 | $ | 39.44 | 208,430 | $ | 43.24 | ||||||||||
Granted |
75,785 | 33.57 | 131,656 | 35.84 | ||||||||||||
Vested and issued |
(25,014 | ) | 34.02 | (40,816 | ) | 47.49 | ||||||||||
Forfeited |
(1,500 | ) | 35.48 | (301 | ) | 33.18 | ||||||||||
Outstanding at June 30 |
348,311 | $ | 38.57 | 298,969 | $ | 39.42 | ||||||||||
Vested, but not
issuable at June 30 |
85,000 | $ | 51.88 | 85,000 | $ | 51.88 | ||||||||||
Equity | Debt | TEU | ||||||||||
(Dollars in thousands, except per unit amounts) | Component | Component | Total | |||||||||
Units issued (1) |
4,600 | 4,600 | 4,600 | |||||||||
Unit price |
$ | 40.271818 | $ | 9.728182 | $ | 50.00 | ||||||
Gross proceeds |
185,250 | 44,750 | 230,000 | |||||||||
Issuance costs, including discount |
5,934 | 1,419 | 7,353 | |||||||||
Net proceeds |
$ | 179,316 | $ | 43,331 | $ | 222,647 | ||||||
Balance sheet impact |
||||||||||||
Other borrowings |
| 43,331 | 43,331 | |||||||||
Surplus |
179,316 | | 179,316 |
(1) | Each TEU consists of two components: 4 .6 million units of the equity component and 4 .6 million units of the debt component. |
39
Applicable market value | ||
of Company common stock | Settlement Rate | |
Less than or equal to $30.00
|
1.6666 | |
Greater than $30.00 but less than $37.50
|
$50.00, divided by the applicable market value | |
Greater than or equal to $37.50
|
1.3333 |
40
For the Three Months | For the Six Months | |||||||||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||||||||
(In thousands, except per share data) | 2011 | 2010 | 2011 | 2010 | ||||||||||||||||
Net income |
$ | 11,750 | $ | 13,009 | $ | 28,152 | $ | 29,027 | ||||||||||||
Less: Preferred stock dividends and discount accretion |
1,033 | 4,943 | 2,064 | 9,887 | ||||||||||||||||
Net income applicable to common shares Basic |
(A | ) | 10,717 | 8,066 | 26,088 | 19,140 | ||||||||||||||
Add: Dividends on convertible preferred stock |
| | | | ||||||||||||||||
Net income applicable to common shares Diluted |
(B | ) | 10,717 | 8,066 | 26,088 | 19,140 | ||||||||||||||
Weighted average common shares outstanding |
(C | ) | 34,971 | 31,074 | 34,950 | 28,522 | ||||||||||||||
Effect of dilutive potential common shares |
8,438 | 1,267 | 8,437 | 1,203 | ||||||||||||||||
Weighted average common shares and effect of dilutive
potential common
shares |
(D | ) | 43,409 | 32,341 | 43,387 | 29,725 | ||||||||||||||
Net income per common share: |
||||||||||||||||||||
Basic |
(A/C | ) | $ | 0.31 | $ | 0.26 | $ | 0.75 | $ | 0.67 | ||||||||||
Diluted |
(B/D | ) | $ | 0.25 | $ | 0.25 | $ | 0.60 | $ | 0.64 | ||||||||||
41
42
| The Companys provision for credit losses in the second quarter of 2011 totaled $29.2 million, a decrease of $12.1 million when compared to the second quarter of 2010. The provision for credit losses in the first six months of 2011 totaled $54.5 million, a decrease of $15.8 million compared to the first six months of 2010. Net charge-offs decreased to $26.0 million in the second quarter of 2011 (of which $27.5 million related to commercial and commercial real estate loans), compared to $37.9 million for the same period in 2010 (of which $16.7 million related to commercial and commercial real estate loans). Net charge-offs decreased to $51.4 million in the first six months of 2011 (of which $49.4 million related to commercial and commercial real estate loans), compared to $64.7 million for the same period in 2010 (of which $40.8 million related to commercial and commercial real estate loans). | ||
| The Company increased its allowance for loan losses, excluding covered loans, to $117.4 million at June 30, 2011, reflecting an increase of $10.9 million, or 10%, when compared to the same period in 2010 and an increase of $3.5 million, or 3%, when compared to December 31, 2010. At June 30, 2011, approximately $61.7 million, or 53%, of the allowance for loan losses was associated with commercial real estate loans and another $32.8 million, or 28%, was associated with commercial loans. The increase in the allowance for loan losses, excluding covered loans, in the current period is primarily related to loan growth. | ||
| The Company has significant exposure to commercial real estate. At June 30, 2011, $3.4 billion, or 33%, of our loan portfolio, excluding covered loans, was commercial real estate, with more than 91% located in the greater Chicago metropolitan and southeastern Wisconsin market areas. The commercial real estate loan portfolio was comprised of $441.3 million related to land, residential and commercial construction, $532.4 million related to office buildings, $524.8 million related to retail, $514.5 million related to industrial use, $316.2 million related to multi-family and $1.0 billion related to mixed use and other use types. In analyzing the commercial real estate market, the Company does not rely upon the assessment of broad market statistical data, in large part because the Companys market area is diverse and covers many communities, each of which is impacted differently by economic forces affecting the Companys general market area. As such, the extent of the decline in real estate valuations can vary meaningfully among the different types of commercial and other real estate loans made by the Company. The Company uses its multi-chartered structure and local management knowledge to analyze and manage the local market conditions at each of its banks. Despite these efforts, as of June 30, 2011, the Company had approximately $89.8 million of non-performing commercial real estate loans representing approximately 3% of the total commercial real estate loan portfolio. $39.4 million, or 44%, of the total non-performing commercial real estate loan portfolio related to the land, residential and commercial construction sector which remains under stress due to the significant oversupply of new homes in certain portions of our market area. | ||
| Total non-performing loans (loans on non-accrual status and loans more than 90 days past due and still accruing interest), excluding covered loans, were $156.1 million (of which $89.8 million, or 58%, was related to commercial real estate) at June 30, 2011, an increase of $20.7 million compared to June 30, 2010. Non-performing loans increased as a result of deteriorating real estate conditions and stress in the overall economy. | ||
| The Companys other real estate owned, excluding covered other real estate owned, decreased by $3.6 million, to $82.8 million during the second quarter of 2011, from $86.4 million at June 30, 2010. This change was largely caused by disposal and resolution of properties. Specifically, the $82.8 million of other real estate owned as of June 30, 2011 was comprised of $16.6 million of residential real estate development property, $59.0 million of commercial real estate property and $7.2 million of residential real estate property. |
43
44
45
Three Months | Three Months | Percentage (%) or | ||||||||||
Ended | Ended | Basis Point (bp) | ||||||||||
(Dollars in thousands, except per share data) | June 30, 2011 | June 30, 2010 | Change | |||||||||
Net income |
$ | 11,750 | $ | 13,009 | (10 | )% | ||||||
Net income per common share Diluted |
0.25 | 0.25 | | |||||||||
Net revenue (1) |
145,358 | 154,750 | (6 | ) | ||||||||
Net interest income |
108,706 | 104,314 | 4 | |||||||||
Core pre-tax earnings (2) (6) |
52,751 | 47,912 | 10 | |||||||||
Net interest margin (2) |
3.40 | % | 3.43 | % | (3 | )bp | ||||||
Net overhead ratio (3) |
1.72 | 1.26 | 46 | |||||||||
Efficiency ratio (2) (4) |
67.22 | 59.72 | 750 | |||||||||
Return on average assets |
0.33 | 0.39 | (6 | ) | ||||||||
Return on average common equity |
3.05 | 2.98 | 7 |
Six Months | Six Months | Percentage (%) or | ||||||||||
Ended | Ended | Basis Point (bp) | ||||||||||
(Dollars in thousands, except per share data) | June 30, 2011 | June 30, 2010 | Change | |||||||||
Net income |
$ | 28,152 | $ | 29,027 | (3 | )% | ||||||
Net income per common share Diluted |
0.60 | 0.64 | (6 | ) | ||||||||
Net revenue (1) |
295,859 | 293,223 | 1 | |||||||||
Net interest income |
218,320 | 200,179 | 9 | |||||||||
Core pre-tax earnings (2) (6) |
102,295 | 89,990 | 14 | |||||||||
Net interest margin (2) |
3.44 | % | 3.41 | % | 3 | bp | ||||||
Net overhead ratio (3) |
1.69 | 1.30 | 39 | |||||||||
Efficiency ratio (2) (4) |
66.11 | 60.13 | 598 | |||||||||
Return on average assets |
0.40 | 0.45 | (5 | ) | ||||||||
Return on average common equity |
3.76 | 3.86 | (10 | ) | ||||||||
At end of period |
||||||||||||
Total assets |
$ | 14,615,897 | $ | 13,708,560 | 7 | % | ||||||
Total loans, excluding loans held-for-sale, excluding covered loans |
9,925,077 | 9,324,163 | 6 | |||||||||
Total loans, including loans held-for-sale, excluding covered loans |
10,064,041 | 9,562,144 | 5 | |||||||||
Total deposits |
11,259,260 | 10,624,742 | 6 | |||||||||
Junior subordinated debentures |
249,493 | 249,493 | | |||||||||
Total shareholders equity |
1,473,385 | 1,384,736 | 6 | |||||||||
Tangible common equity ratio (TCE) (2) |
7.9 | % | 6.0 | % | 190 | bp | ||||||
Book value per common share |
33.63 | 35.33 | (5 | )% | ||||||||
Tangible common book value per share |
26.67 | 25.96 | 3 | |||||||||
Market price per common share |
32.18 | 33.34 | (3 | ) | ||||||||
Excluding covered loans: |
||||||||||||
Allowance for loan losses to total loans (5) |
1.18 | % | 1.14 | % | 4 | bp | ||||||
Allowance for credit losses to total loans (5) |
1.21 | 1.17 | 4 | |||||||||
Non-performing loans to total loans |
1.57 | 1.45 | 12 |
(1) | Net revenue is net interest income plus non-interest income. | |
(2) | See following section titled, Supplementary Financial Measures/Ratios for additional information on this performance measure/ratio. | |
(3) | The net overhead ratio is calculated by netting total non-interest expense and total non-interest income, annualizing this amount, and dividing by that periods total average assets. A lower ratio indicates a higher degree of efficiency. | |
(4) | The efficiency ratio is calculated by dividing total non-interest expense by tax-equivalent net revenues (less securities gains or losses). A lower ratio indicates more efficient revenue generation. | |
(5) | The allowance for credit losses includes both the allowance for loan losses and the allowance for lending-related commitments. | |
(6) | Core pre-tax earnings is adjusted to exclude the provision for credit losses and certain significant items. |
46
47
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
(Dollars in thousands) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Calculation of Net Interest Margin and Efficiency Ratio |
||||||||||||||||
(A) Interest Income (GAAP) |
$ | 145,445 | $ | 149,248 | $ | 293,225 | $ | 291,743 | ||||||||
Taxable-equivalent adjustment: |
||||||||||||||||
- Loans |
110 | 90 | 226 | 169 | ||||||||||||
- Liquidity management assets |
296 | 366 | 591 | 727 | ||||||||||||
- Other earning assets |
2 | 5 | 5 | 10 | ||||||||||||
Interest Income FTE |
$ | 145,853 | $ | 149,709 | $ | 294,047 | $ | 292,649 | ||||||||
(B) Interest Expense (GAAP) |
36,739 | 44,934 | 74,905 | 91,564 | ||||||||||||
Net interest income FTE |
109,114 | 104,775 | 219,142 | 201,085 | ||||||||||||
(C) Net Interest Income (GAAP) (A minus B) |
$ | 108,706 | $ | 104,314 | $ | 218,320 | $ | 200,179 | ||||||||
(D) Net interest margin (GAAP) |
3.38 | % | 3.42 | % | 3.42 | % | 3.39 | % | ||||||||
Net interest margin FTE |
3.40 | % | 3.43 | % | 3.44 | % | 3.41 | % | ||||||||
(E) Efficiency ratio (GAAP) |
67.41 | % | 59.90 | % | 66.30 | % | 60.32 | % | ||||||||
Efficiency ratio FTE |
67.22 | % | 59.72 | % | 66.11 | % | 60.13 | % | ||||||||
Calculation of Tangible Common Equity ratio (at period end) |
||||||||||||||||
Total shareholders equity |
$ | 1,473,386 | $ | 1,384,736 | ||||||||||||
Less: Preferred stock |
(49,704 | ) | (286,460 | ) | ||||||||||||
Less: Intangible assets |
(294,833 | ) | (291,300 | ) | ||||||||||||
(F) Total tangible shareholders equity |
$ | 1,128,849 | $ | 806,976 | ||||||||||||
Total assets |
$ | 14,615,897 | $ | 13,708,560 | ||||||||||||
Less: Intangible assets |
(294,833 | ) | (291,300 | ) | ||||||||||||
(G) Total tangible assets |
$ | 14,321,064 | $ | 13,417,260 | ||||||||||||
Tangible common equity ratio (F/G) |
7.9 | % | 6.0 | % | ||||||||||||
Calculation of Core Pre-Tax Earnings |
||||||||||||||||
Income before taxes |
$ | 18,965 | $ | 20,790 | $ | 46,013 | $ | 46,280 | ||||||||
Add: Provision for credit losses |
29,187 | 41,297 | 54,531 | 70,342 | ||||||||||||
Add: OREO expenses, net |
6,577 | 5,843 | 12,385 | 7,181 | ||||||||||||
Add: Recourse obligation on loans previously sold |
(916 | ) | 4,721 | (813 | ) | 8,173 | ||||||||||
Add: Covered loan expense |
806 | 184 | 1,551 | 184 | ||||||||||||
Less: Gain on bargain purchases |
(746 | ) | (26,494 | ) | (10,584 | ) | (37,388 | ) | ||||||||
Less: Trading losses (gains) |
30 | 1,617 | 470 | (4,344 | ) | |||||||||||
Less: (Gains) on available-for-sale securities, net |
(1,152 | ) | (46 | ) | (1,258 | ) | (438 | ) | ||||||||
Core pre-tax earnings |
$ | 52,751 | $ | 47,912 | $ | 102,295 | $ | 89,990 | ||||||||
Calculation of book value per share |
||||||||||||||||
Total shareholders equity |
$ | 1,473,386 | $ | 1,384,736 | ||||||||||||
Less: Preferred stock |
(49,704 | ) | (286,460 | ) | ||||||||||||
(H) Total common equity |
$ | 1,423,682 | $ | 1,098,276 | ||||||||||||
Actual common shares outstanding |
34,988 | 31,084 | ||||||||||||||
Add: TEU conversion shares |
7,342 | | ||||||||||||||
(I) Common shares used for book value calculation |
42,330 | 31,084 | ||||||||||||||
Book value per share (H/I) |
$ | 33.63 | $ | 35.33 | ||||||||||||
Tangible common book value per share (F/I) |
$ | 26.67 | $ | 25.96 |
48
49
For the Three Months Ended | For the Three Months Ended | |||||||||||||||||||||||
June 30, 2011 | June 30, 2010 | |||||||||||||||||||||||
(Dollars in thousands) | Average | Interest | Rate | Average | Interest | Rate | ||||||||||||||||||
Liquidity management assets (1) (2) (7) |
$ | 2,591,398 | $ | 13,198 | 2.04 | % | $ | 2,613,179 | $ | 13,305 | 2.04 | % | ||||||||||||
Other earning assets (2) (3) (7) |
28,886 | 208 | 2.89 | 62,874 | 515 | 3.28 | ||||||||||||||||||
Loans, net of unearned income (2) (4) (7) |
9,859,789 | 124,047 | 5.05 | 9,356,033 | 133,207 | 5.71 | ||||||||||||||||||
Covered loans |
418,129 | 8,400 | 8.06 | 210,030 | 2,682 | 5.12 | ||||||||||||||||||
Total earning assets (7) |
$ | 12,898,202 | $ | 145,853 | 4.54 | % | $ | 12,242,116 | $ | 149,709 | 4.91 | % | ||||||||||||
Allowance for loan losses |
(125,537 | ) | (108,764 | ) | ||||||||||||||||||||
Cash and due from banks |
135,670 | 137,531 | ||||||||||||||||||||||
Other assets |
1,196,801 | 1,119,654 | ||||||||||||||||||||||
Total assets |
$ | 14,105,136 | $ | 13,390,537 | ||||||||||||||||||||
Interest-bearing deposits |
$ | 9,491,778 | $ | 22,404 | 0.95 | % | $ | 9,348,541 | $ | 31,626 | 1.36 | % | ||||||||||||
Federal Home Loan Bank advances |
421,502 | 4,010 | 3.82 | 417,835 | 4,094 | 3.93 | ||||||||||||||||||
Notes payable and other borrowings |
338,304 | 2,715 | 3.22 | 217,751 | 1,439 | 2.65 | ||||||||||||||||||
Secured borrowings owed to securitization investors |
600,000 | 2,994 | 2.00 | 600,000 | 3,115 | 2.08 | ||||||||||||||||||
Subordinated notes |
45,440 | 194 | 1.69 | 57,198 | 256 | 1.77 | ||||||||||||||||||
Junior subordinated notes |
249,493 | 4,422 | 7.01 | 249,493 | 4,404 | 6.98 | ||||||||||||||||||
Total interest-bearing liabilities |
$ | 11,146,517 | $ | 36,739 | 1.32 | % | $ | 10,890,818 | $ | 44,934 | 1.65 | % | ||||||||||||
Non-interest bearing deposits |
1,349,549 | 932,046 | ||||||||||||||||||||||
Other liabilities |
148,999 | 195,984 | ||||||||||||||||||||||
Equity |
1,460,071 | 1,371,689 | ||||||||||||||||||||||
Total liabilities and shareholders equity |
$ | 14,105,136 | $ | 13,390,537 | ||||||||||||||||||||
Interest rate spread (5) (7) |
3.22 | % | 3.26 | % | ||||||||||||||||||||
Net free funds/contribution (6) |
$ | 1,751,685 | 0.18 | % | $ | 1,351,298 | 0.17 | % | ||||||||||||||||
Net interest income/Net interest margin (7) |
$ | 109,114 | 3.40 | % | $ | 104,775 | 3.43 | % | ||||||||||||||||
(1) | Liquidity management assets include available-for-sale securities, interest earning deposits with banks, federal funds sold and securities purchased under resale agreements. | |
(2) | Interest income on tax-advantaged loans, trading securities and securities reflects a tax-equivalent adjustment based on a marginal federal corporate tax rate of 35%. The total adjustments for the three months ended June 30, 2011 and 2010 were $408,000 and $461,000, respectively. | |
(3) | Other earning assets include brokerage customer receivables and trading account securities. | |
(4) | Loans, net of unearned income, include loans held-for-sale and non-accrual loans. | |
(5) | Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities. | |
(6) | Net free funds are the difference between total average earning assets and total average interest-bearing liabilities. The estimated contribution to net interest margin from net free funds is calculated using the rate paid for total interest-bearing liabilities. | |
(7) | See Supplemental Financial Measures/Ratios for additional information on this performance ratio. |
50
For the Three Months Ended | For the Three Months Ended | |||||||||||||||||||||||
June 30, 2011 | March 31, 2011 | |||||||||||||||||||||||
(Dollars in thousands) | Average | Interest | Rate | Average | Interest | Rate | ||||||||||||||||||
Liquidity management assets (1) (2) (7) |
$ | 2,591,398 | $ | 13,198 | 2.04 | % | $ | 2,632,012 | $ | 11,354 | 1.75 | % | ||||||||||||
Other earning assets (2) (3) (7) |
28,886 | 208 | 2.89 | 27,718 | 181 | 2.65 | ||||||||||||||||||
Loans, net of unearned income (2) (4) (7) |
9,859,789 | 124,047 | 5.05 | 9,849,309 | 129,587 | 5.34 | ||||||||||||||||||
Covered loans |
418,129 | 8,400 | 8.06 | 326,571 | 7,072 | 8.78 | ||||||||||||||||||
Total earning assets (7) |
$ | 12,898,202 | $ | 145,853 | 4.54 | % | $ | 12,835,610 | $ | 148,194 | 4.68 | % | ||||||||||||
Allowance for loan losses |
(125,537 | ) | (118,610 | ) | ||||||||||||||||||||
Cash and due from banks |
135,670 | 152,264 | ||||||||||||||||||||||
Other assets |
1,196,801 | 1,149,261 | ||||||||||||||||||||||
Total assets |
$ | 14,105,136 | $ | 14,018,525 | ||||||||||||||||||||
Interest-bearing deposits |
$ | 9,491,778 | $ | 22,404 | 0.95 | % | $ | 9,542,637 | $ | 23,956 | 1.02 | % | ||||||||||||
Federal Home Loan Bank advances |
421,502 | 4,010 | 3.82 | 416,021 | 3,958 | 3.86 | ||||||||||||||||||
Notes payable and other borrowings |
338,304 | 2,715 | 3.22 | 266,379 | 2,630 | 4.00 | ||||||||||||||||||
Secured borrowings owed to securitization investors |
600,000 | 2,994 | 2.00 | 600,000 | 3,040 | 2.05 | ||||||||||||||||||
Subordinated notes |
45,440 | 194 | 1.69 | 50,000 | 212 | 1.69 | ||||||||||||||||||
Junior subordinated notes |
249,493 | 4,422 | 7.01 | 249,493 | 4,370 | 7.01 | ||||||||||||||||||
Total interest-bearing liabilities |
$ | 11,146,517 | $ | 36,739 | 1.32 | % | $ | 11,124,530 | $ | 38,166 | 1.39 | % | ||||||||||||
Non-interest bearing deposits |
1,349,549 | 1,261,374 | ||||||||||||||||||||||
Other liabilities |
148,999 | 194,752 | ||||||||||||||||||||||
Equity |
1,460,071 | 1,437,869 | ||||||||||||||||||||||
Total liabilities and shareholders equity |
$ | 14,105,136 | $ | 14,018,525 | ||||||||||||||||||||
Interest rate spread (5) (7) |
3.22 | % | 3.29 | % | ||||||||||||||||||||
Net free funds/contribution (6) |
$ | 1,751,685 | 0.18 | % | $ | 1,711,080 | 0.19 | % | ||||||||||||||||
Net interest income/Net interest margin (7) |
$ | 109,114 | 3.40 | % | $ | 110,028 | 3.48 | % | ||||||||||||||||
(1) | Liquidity management assets include available-for-sale securities, interest earning deposits with banks, federal funds sold and securities purchased under resale agreements. | |
(2) | Interest income on tax-advantaged loans, trading securities and securities reflects a tax-equivalent adjustment based on a marginal federal corporate tax rate of 35%. The total adjustments for the three months ended June 30, 2011 and March 31, 2011 were $408,000 and $414,000, respectively. | |
(3) | Other earning assets include brokerage customer receivables and trading account securities. | |
(4) | Loans, net of unearned income, include loans held-for-sale and non-accrual loans. | |
(5) | Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities. | |
(6) | Net free funds are the difference between total average earning assets and total average interest-bearing liabilities. The estimated contribution to net interest margin from net free funds is calculated using the rate paid for total interest-bearing liabilities. | |
(7) | See Supplemental Financial Measures/Ratios for additional information on this performance ratio. |
51
For the Six Months Ended | For the Six Months Ended | |||||||||||||||||||||||
June 30, 2011 | June 30, 2010 | |||||||||||||||||||||||
(Dollars in thousands) | Average | Interest | Rate | Average | Interest | Rate | ||||||||||||||||||
Liquidity management assets (1) (2) (7) |
$ | 2,608,863 | $ | 24,552 | 1.90 | % | $ | 2,485,713 | $ | 26,459 | 2.15 | % | ||||||||||||
Other earning assets (2) (3) (7) |
28,305 | 389 | 2.77 | 58,291 | 679 | 2.35 | ||||||||||||||||||
Loans, net of unearned income (2) (4) (7) |
9,854,578 | 253,634 | 5.19 | 9,253,693 | 262,829 | 5.73 | ||||||||||||||||||
Covered loans |
372,608 | 15,472 | 8.37 | 105,595 | 2,682 | 5.12 | ||||||||||||||||||
Total earning assets (7) |
$ | 12,864,354 | $ | 294,047 | 4.61 | % | $ | 11,903,292 | $ | 292,649 | 4.96 | % | ||||||||||||
Allowance for loan losses |
(122,093 | ) | (108,019 | ) | ||||||||||||||||||||
Cash and due from banks |
143,921 | 125,589 | ||||||||||||||||||||||
Other assets |
1,173,157 | 1,072,194 | ||||||||||||||||||||||
Total assets |
$ | 14,059,339 | $ | 12,993,056 | ||||||||||||||||||||
Interest-bearing deposits |
$ | 9,514,337 | $ | 46,360 | 0.98 | % | $ | 9,084,587 | $ | 64,838 | 1.44 | % | ||||||||||||
Federal Home Loan Bank advances |
418,777 | 7,968 | 3.84 | 423,484 | 8,440 | 4.02 | ||||||||||||||||||
Notes payable and other borrowings |
302,540 | 5,345 | 3.56 | 221,812 | 2,901 | 2.64 | ||||||||||||||||||
Secured borrowings owed to securitization investors |
600,000 | 6,034 | 2.03 | 600,000 | 6,109 | 2.05 | ||||||||||||||||||
Subordinated notes |
47,707 | 406 | 1.69 | 58,591 | 497 | 1.69 | ||||||||||||||||||
Junior subordinated notes |
249,493 | 8,792 | 7.01 | 249,493 | 8,779 | 7.00 | ||||||||||||||||||
Total interest-bearing liabilities |
$ | 11,132,854 | $ | 74,905 | 1.35 | % | $ | 10,637,967 | $ | 91,564 | 1.73 | % | ||||||||||||
Non-interest bearing liabilities |
1,305,705 | 895,650 | ||||||||||||||||||||||
Other liabilities |
171,749 | 174,979 | ||||||||||||||||||||||
Equity |
1,449,031 | 1,284,460 | ||||||||||||||||||||||
Total liabilities and shareholders equity |
$ | 14,059,339 | $ | 12,993,056 | ||||||||||||||||||||
Interest rate spread (5) (7) |
3.26 | % | 3.23 | % | ||||||||||||||||||||
Net free funds/contribution (6) |
$ | 1,731,500 | 0.18 | % | $ | 1,265,325 | 0.18 | % | ||||||||||||||||
Net interest income/Net interest margin (7) |
$ | 219,142 | 3.44 | % | $ | 201,085 | 3.41 | % | ||||||||||||||||
(1) | Liquidity management assets include available-for-sale securities, interest earning deposits with banks, federal funds sold and securities purchased under resale agreements. | |
(2) | Interest income on tax-advantaged loans, trading securities and securities reflects a tax-equivalent adjustment based on a marginal federal corporate tax rate of 35%. The total adjustments for the six months ended June 30, 2011 and 2010 were $822,000 and $906,000, respectively. | |
(3) | Other earning assets include brokerage customer receivables and trading account securities. | |
(4) | Loans, net of unearned income, include loans held-for-sale and non-accrual loans. | |
(5) | Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities. | |
(6) | Net free funds are the difference between total average earning assets and total average interest-bearing liabilities. The estimated contribution to net interest margin from net free funds is calculated using the rate paid for total interest-bearing liabilities. | |
(7) | See Supplemental Financial Measures/Ratios for additional information on this performance ratio. |
52
Second Quarter | First Six Months | Second Quarter | ||||||||||
of 2011 | of 2011 | of 2011 | ||||||||||
Compared to | Compared to | Compared to | ||||||||||
First Quarter | First Six Months | Second Quarter | ||||||||||
(Dollars in thousands) | of 2011 | of 2010 | of 2010 | |||||||||
Tax-equivalent net interest income for comparative period |
$ | 110,028 | $ | 201,085 | $ | 104,775 | ||||||
Change due to mix and growth of earning assets and
interest-bearing liabilities (volume) |
1,326 | 23,479 | 8,707 | |||||||||
Change due to interest rate fluctuations (rate) |
(3,449 | ) | (5,422 | ) | (4,368 | ) | ||||||
Change due to number of days in each period |
1,209 | | | |||||||||
Tax-equivalent net interest income for the period ended June 30, 2011 |
$ | 109,114 | $ | 219,142 | $ | 109,114 | ||||||
53
Three Months Ended | ||||||||||||||||
June 30, | $ | % | ||||||||||||||
(Dollars in thousands) | 2011 | 2010 | Change | Change | ||||||||||||
Brokerage |
$ | 6,208 | $ | 5,712 | $ | 496 | 9 | |||||||||
Trust and asset management |
4,393 | 3,481 | 912 | 26 | ||||||||||||
Total wealth management |
10,601 | 9,193 | 1,408 | 15 | ||||||||||||
Mortgage banking |
12,817 | 7,985 | 4,832 | 61 | ||||||||||||
Service charges on deposit accounts |
3,594 | 3,371 | 223 | 7 | ||||||||||||
Gains on available-for-sale securities |
1,152 | 46 | 1,106 | NM | ||||||||||||
Gain on bargain purchases |
746 | 26,494 | (25,748 | ) | (97 | ) | ||||||||||
Trading losses |
(30 | ) | (1,617 | ) | 1,587 | 98 | ||||||||||
Other: |
||||||||||||||||
Fees from covered call options |
2,287 | 169 | 2,118 | NM | ||||||||||||
Bank Owned Life Insurance |
661 | 418 | 243 | 58 | ||||||||||||
Administrative services |
781 | 708 | 73 | 10 | ||||||||||||
Miscellaneous |
4,043 | 3,669 | 374 | 10 | ||||||||||||
Total Other |
7,772 | 4,964 | 2,808 | 57 | ||||||||||||
Total Non-Interest Income |
$ | 36,652 | $ | 50,436 | $ | (13,784 | ) | (27 | ) | |||||||
Six Months Ended | ||||||||||||||||
June 30 | $ | % | ||||||||||||||
(Dollars in thousands) | 2011 | 2010 | Change | Change | ||||||||||||
Brokerage |
$ | 12,533 | $ | 11,266 | $ | 1,267 | 11 | |||||||||
Trust and asset management |
8,304 | 6,594 | 1,710 | 26 | ||||||||||||
Total wealth management |
20,837 | 17,860 | 2,977 | 17 | ||||||||||||
Mortgage banking |
24,448 | 17,713 | 6,735 | 38 | ||||||||||||
Service charges on deposit accounts |
6,905 | 6,703 | 202 | 3 | ||||||||||||
Gains on available-for-sale securities |
1,258 | 438 | 820 | NM | ||||||||||||
Gain on bargain purchases |
10,584 | 37,388 | (26,804 | ) | (72 | ) | ||||||||||
Trading (losses) gains |
(470 | ) | 4,344 | (4,814 | ) | NM | ||||||||||
Other: |
||||||||||||||||
Fees from covered call options |
4,757 | 459 | 4,298 | NM | ||||||||||||
Bank Owned Life Insurance |
1,537 | 1,041 | 496 | 48 | ||||||||||||
Administrative services |
1,498 | 1,289 | 209 | 16 | ||||||||||||
Miscellaneous |
6,185 | 5,809 | 376 | 6 | ||||||||||||
Total Other |
13,977 | 8,598 | 5,379 | 63 | ||||||||||||
Total Non-Interest Income |
$ | 77,539 | $ | 93,044 | $ | (15,505 | ) | (17 | ) | |||||||
54
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
(Dollars in thousands) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Mortgage loans originated and sold |
$ | 458,538 | $ | 732,464 | $ | 1,020,626 | $ | 1,419,144 | ||||||||
Mortgage loans serviced |
943,542 | 756,451 | ||||||||||||||
Fair value of mortgage servicing rights (MSRs) |
8,762 | 5,347 | ||||||||||||||
MSRs as a percentage of loans serviced |
0.93 | % | 0.71 | % | ||||||||||||
Gain on sales of loans and other fees |
$ | 13,037 | $ | 14,485 | $ | 24,630 | $ | 28,203 | ||||||||
Mortgage servicing rights fair value adjustments |
(1,136 | ) | (1,779 | ) | (995 | ) | (2,317 | ) | ||||||||
Recourse obligation on loans previously sold |
916 | (4,721 | ) | 813 | (8,173 | ) | ||||||||||
Total mortgage banking revenue |
$ | 12,817 | $ | 7,985 | $ | 24,448 | $ | 17,713 | ||||||||
Gain on sales of loans and other fees
as a percentage of loans sold |
2.84 | % | 1.98 | % | 2.41 | % | 1.99 | % |
55
Three Months Ended | ||||||||||||||||
June 30, | $ | % | ||||||||||||||
(Dollars in thousands) | 2011 | 2010 | Change | Change | ||||||||||||
Salaries and employee benefits: |
||||||||||||||||
Salaries |
$ | 32,008 | $ | 28,714 | 3,294 | 11 | ||||||||||
Commissions and bonus |
10,760 | 12,967 | (2,207 | ) | (17 | ) | ||||||||||
Benefits |
10,311 | 8,968 | 1,343 | 15 | ||||||||||||
Total salaries and employee benefits |
53,079 | 50,649 | 2,430 | 5 | ||||||||||||
Equipment |
4,409 | 4,046 | 363 | 9 | ||||||||||||
Occupancy, net |
6,772 | 6,033 | 739 | 12 | ||||||||||||
Data processing |
3,147 | 3,669 | (522 | ) | (14 | ) | ||||||||||
Advertising and marketing |
1,440 | 1,470 | (30 | ) | (2 | ) | ||||||||||
Professional fees |
4,533 | 3,957 | 576 | 15 | ||||||||||||
Amortization of other intangible assets |
704 | 674 | 30 | 4 | ||||||||||||
FDIC insurance |
3,281 | 5,005 | (1,724 | ) | (34 | ) | ||||||||||
OREO expenses, net |
6,577 | 5,843 | 734 | 13 | ||||||||||||
Other: |
||||||||||||||||
Commissions - 3rd party brokers |
991 | 1,097 | (106 | ) | (10 | ) | ||||||||||
Postage |
1,170 | 1,229 | (59 | ) | (5 | ) | ||||||||||
Stationery and supplies |
888 | 761 | 127 | 17 | ||||||||||||
Miscellaneous |
10,215 | 8,230 | 1,985 | 24 | ||||||||||||
Total other |
13,264 | 11,317 | 1,947 | 17 | ||||||||||||
Total Non-Interest Expense |
$ | 97,206 | $ | 92,663 | $ | 4,543 | 5 | |||||||||
Six Months Ended | ||||||||||||||||
June 30 | $ | % | ||||||||||||||
(Dollars in thousands) | 2011 | 2010 | Change | Change | ||||||||||||
Salaries and employee benefits: |
||||||||||||||||
Salaries |
$ | 65,143 | $ | 57,797 | 7,346 | 13 | ||||||||||
Commissions and bonus |
21,474 | 22,698 | (1,224 | ) | (5 | ) | ||||||||||
Benefits |
22,561 | 19,226 | 3,335 | 17 | ||||||||||||
Total salaries and employee benefits |
109,178 | 99,721 | 9,457 | 9 | ||||||||||||
Equipment |
8,673 | 7,941 | 732 | 9 | ||||||||||||
Occupancy, net |
13,277 | 12,263 | 1,014 | 8 | ||||||||||||
Data processing |
6,670 | 7,076 | (406 | ) | (6 | ) | ||||||||||
Advertising and marketing |
3,054 | 2,784 | 270 | 10 | ||||||||||||
Professional fees |
8,079 | 7,064 | 1,015 | 14 | ||||||||||||
Amortization of other intangible assets |
1,393 | 1,319 | 74 | 6 | ||||||||||||
FDIC insurance |
7,799 | 8,814 | (1,015 | ) | (12 | ) | ||||||||||
OREO expenses, net |
12,385 | 7,181 | 5,204 | 72 | ||||||||||||
Other: |
||||||||||||||||
Commissions - 3rd party brokers |
2,021 | 2,058 | (37 | ) | (2 | ) | ||||||||||
Postage |
2,248 | 2,339 | (91 | ) | (4 | ) | ||||||||||
Stationery and supplies |
1,728 | 1,493 | 235 | 16 | ||||||||||||
Miscellaneous |
18,810 | 16,548 | 2,262 | 14 | ||||||||||||
Total other |
24,807 | 22,438 | 2,369 | 11 | ||||||||||||
Total Non-Interest Expense |
$ | 195,315 | $ | 176,601 | $ | 18,714 | 11 | |||||||||
56
57
58
Three Months Ended | ||||||||||||||||||||||||
June 30, 2011 | March 31, 2011 | June 30, 2010 | ||||||||||||||||||||||
(Dollars in thousands) | Balance | Percent | Balance | Percent | Balance | Percent | ||||||||||||||||||
Loans: |
||||||||||||||||||||||||
Commercial |
$ | 2,009,392 | 16 | % | $ | 1,950,599 | 15 | % | $ | 1,792,307 | 15 | % | ||||||||||||
Commercial real estate |
3,378,164 | 26 | 3,359,042 | 26 | 3,341,735 | 27 | ||||||||||||||||||
Home equity |
888,703 | 7 | 906,073 | 7 | 924,307 | 8 | ||||||||||||||||||
Residential real estate (1) |
441,655 | 3 | 570,250 | 4 | 528,540 | 4 | ||||||||||||||||||
Premium finance receivables |
2,987,197 | 23 | 2,906,513 | 23 | 2,580,778 | 21 | ||||||||||||||||||
Indirect consumer loans |
55,018 | 1 | 52,310 | | 75,709 | 1 | ||||||||||||||||||
Other loans |
99,660 | 1 | 104,522 | 1 | 112,657 | 1 | ||||||||||||||||||
Total loans, net of
unearned income (2)
excluding covered
loans |
$ | 9,859,789 | 77 | % | $ | 9,849,309 | 76 | % | $ | 9,356,033 | 77 | % | ||||||||||||
Covered loans |
418,129 | 3 | 326,571 | 3 | 210,030 | 2 | ||||||||||||||||||
Total average loans (2) |
$ | 10,277,918 | 80 | % | $ | 10,175,880 | 79 | % | $ | 9,566,063 | 79 | % | ||||||||||||
Liquidity management assets (3) |
$ | 2,591,398 | 20 | 2,632,012 | 21 | 2,613,179 | 20 | |||||||||||||||||
Other earning assets (4) |
28,886 | | 27,718 | | 62,874 | 1 | ||||||||||||||||||
Total average earning
assets |
$ | 12,898,202 | 100 | % | $ | 12,835,610 | 100 | % | $ | 12,242,116 | 100 | % | ||||||||||||
Total average assets |
$ | 14,105,136 | $ | 14,018,525 | $ | 13,390,537 | ||||||||||||||||||
Total average earning
assets to total average
assets |
91 | % | 92 | % | 91 | % | ||||||||||||||||||
(1) | Includes mortgage loans held-for-sale | |
(2) | Includes loans held-for-sale and non-accrual loans | |
(3) | Liquidity management assets include available-for-sale securities, other securities, interest earning deposits with banks, federal funds sold and securities purchased under resale agreements | |
(4) | Other earning assets include brokerage customer receivables and trading account securities |
59
60
Average Balances for the | ||||||||||||||||
Six Months Ended | ||||||||||||||||
June 30, 2011 | June 30, 2010 | |||||||||||||||
(Dollars in thousands) | Balance | Percent | Balance | Percent | ||||||||||||
Loans: |
||||||||||||||||
Commercial |
$ | 1,980,158 | 15 | % | $ | 1,741,424 | 15 | % | ||||||||
Commercial real estate |
3,368,656 | 26 | 3,333,400 | 28 | ||||||||||||
Home equity |
897,340 | 7 | 926,636 | 8 | ||||||||||||
Residential real estate (1) |
505,597 | 4 | 516,275 | 4 | ||||||||||||
Premium finance receivables |
2,947,078 | 23 | 2,540,608 | 21 | ||||||||||||
Indirect consumer loans |
53,672 | 1 | 83,199 | 1 | ||||||||||||
Other loans |
102,077 | 1 | 112,151 | 1 | ||||||||||||
Total loans, net of
unearned income (2)
excluding covered
loans |
$ | 9,854,578 | 77 | % | $ | 9,253,693 | 78 | % | ||||||||
Covered loans |
372,608 | 3 | 105,595 | 1 | ||||||||||||
Total average loans (2) |
$ | 10,227,186 | 80 | % | $ | 9,359,288 | 79 | % | ||||||||
Liquidity management assets (3) |
$ | 2,608,863 | 20 | 2,485,713 | 21 | |||||||||||
Other earning assets (4) |
28,305 | | 58,291 | | ||||||||||||
Total average earning
assets |
$ | 12,864,354 | 100 | % | $ | 11,903,292 | 100 | % | ||||||||
Total average assets |
$ | 14,059,339 | $ | 12,993,056 | ||||||||||||
Total average earning
assets to total average
assets |
92 | % | 92 | % | ||||||||||||
(1) | Includes mortgage loans held-for-sale | |
(2) | Includes loans held-for-sale and non-accrual loans | |
(3) | Liquidity management assets include available-for-sale securities, other securities, interest earning deposits with banks, federal funds sold and securities purchased under resale agreements | |
(4) | Other earning assets include brokerage customer receivables and trading account securities |
Weighted- | ||||||||||||||||||||||||
Non- | Average | |||||||||||||||||||||||
Interest | Savings | Interest Rate of | ||||||||||||||||||||||
Bearing | and | Time | Maturing Time | |||||||||||||||||||||
and | Money | Wealth | Certificates | Total | Certificates | |||||||||||||||||||
(Dollars in thousands) | NOW (1) | Market (1) | Management (1) | of Deposit | Deposits | of Deposit | ||||||||||||||||||
1-3 months |
$ | 2,927,501 | $ | 2,722,635 | $ | 737,428 | $ | 1,022,882 | $ | 7,410,446 | 1.23 | % | ||||||||||||
4-6 months |
843,694 | $ | 843,694 | 1.23 | ||||||||||||||||||||
7-9 months |
665,411 | $ | 665,411 | 1.24 | ||||||||||||||||||||
10-12 months |
666,345 | $ | 666,345 | 1.21 | ||||||||||||||||||||
13-18 months |
653,088 | $ | 653,088 | 1.59 | ||||||||||||||||||||
19-24 months |
346,255 | $ | 346,255 | 1.68 | ||||||||||||||||||||
24+ months |
674,021 | $ | 674,021 | 2.27 | ||||||||||||||||||||
Total deposits |
$ | 2,927,501 | $ | 2,722,635 | $ | 737,428 | $ | 4,871,696 | $ | 11,259,260 | 1.46 | % | ||||||||||||
(1) | Balances of non-contractual maturity deposits are shown as maturing in the earliest time frame. These deposits re-price in varying degrees to changes in interest rates. |
61
Three Months Ended | ||||||||||||||||||||||||
June 30, 2011 | March 31, 2011 | June 30, 2010 | ||||||||||||||||||||||
(Dollars in thousands) | Balance | Percent | Balance | Percent | Balance | Percent | ||||||||||||||||||
Non-interest bearing |
$ | 1,349,549 | 13 | % | $ | 1,261,374 | 12 | % | $ | 932,046 | 9 | % | ||||||||||||
NOW |
1,542,323 | 14 | 1,509,964 | 14 | 1,519,225 | 15 | ||||||||||||||||||
Wealth Management
deposits |
657,725 | 6 | 673,535 | 6 | 700,883 | 7 | ||||||||||||||||||
Money Market |
1,871,668 | 17 | 1,815,048 | 17 | 1,648,649 | 16 | ||||||||||||||||||
Savings |
741,719 | 7 | 745,854 | 7 | 569,870 | 5 | ||||||||||||||||||
Time certificates of deposits |
4,678,343 | 43 | 4,798,236 | 44 | 4,909,914 | 48 | ||||||||||||||||||
Total average deposits |
$ | 10,841,327 | 100 | % | $ | 10,804,011 | 100 | % | $ | 10,280,587 | 100 | % | ||||||||||||
June 30, | December 31, | |||||||||||||||||||
(Dollars in thousands) | 2011 | 2010 | 2010 | 2009 | 2008 | |||||||||||||||
Total deposits |
$ | 11,259,260 | $ | 10,624,742 | $ | 10,803,673 | $ | 9,917,074 | $ | 8,376,750 | ||||||||||
Brokered deposits |
786,588 | 811,011 | 639,687 | 927,722 | 800,042 | |||||||||||||||
Brokered deposits as a percentage
of total deposits |
7.0 | % | 7.6 | % | 5.9 | % | 9.4 | % | 9.6 | % |
62
Three Months Ended | ||||||||||||
June 30, | March 31, | June 30, | ||||||||||
(Dollars in thousands) | 2011 | 2011 | 2010 | |||||||||
Notes payable |
$ | 1,000 | $ | 1,000 | $ | 1,000 | ||||||
Federal Home Loan Bank advances |
421,502 | 416,021 | 417,835 | |||||||||
Other borrowings: |
||||||||||||
Federal funds purchased |
348 | 503 | 138 | |||||||||
Securities sold under repurchase agreements |
297,354 | 222,028 | 215,720 | |||||||||
Other |
39,602 | 42,848 | 893 | |||||||||
Total other borrowings |
$ | 337,304 | $ | 265,379 | $ | 216,751 | ||||||
Secured borrowings owed to securitization investors |
600,000 | 600,000 | 600,000 | |||||||||
Subordinated notes |
45,440 | 50,000 | 57,198 | |||||||||
Junior subordinated debentures |
249,493 | 249,493 | 249,493 | |||||||||
Total other borrowings |
$ | 1,654,739 | $ | 1,581,893 | $ | 1,542,277 | ||||||
63
June 30, | March 31, | June 30, | ||||||||||
2011 | 2011 | 2010 | ||||||||||
Leverage ratio |
10.3 | % | 10.3 | % | 10.2 | % | ||||||
Tier 1 capital to risk-weighted assets |
12.3 | 12.7 | 13.0 | |||||||||
Total capital to risk-weighted assets |
13.5 | 14.1 | 14.3 | |||||||||
Total average equity-to-total average
assets(1) |
10.4 | 10.3 | 10.2 |
(1) | Based on quarterly average balances. |
Minimum | ||||||||
Capital | Well | |||||||
Requirements | Capitalized | |||||||
Leverage ratio |
4.0 | % | 5.0 | % | ||||
Tier 1 capital to risk-weighted assets |
4.0 | 6.0 | ||||||
Total capital to risk-weighted assets |
8.0 | 10.0 |
64
June 30, 2011 | December 31, 2010 | June 30, 2010 | ||||||||||||||||||||||
% of | % of | % of | ||||||||||||||||||||||
(Dollars in thousands) | Amount | Total | Amount | Total | Amount | Total | ||||||||||||||||||
Commercial |
$ | 2,132,436 | 20 | % | $ | 2,049,326 | 21 | % | $ | 1,827,618 | 19 | % | ||||||||||||
Commercial real-estate |
3,374,668 | 33 | 3,338,007 | 34 | 3,347,823 | 35 | ||||||||||||||||||
Home equity |
880,702 | 8 | 914,412 | 9 | 922,305 | 10 | ||||||||||||||||||
Residential real-estate |
329,381 | 3 | 353,336 | 3 | 332,673 | 3 | ||||||||||||||||||
Premium finance receivables commercial |
1,429,436 | 14 | 1,265,500 | 13 | 1,346,985 | 14 | ||||||||||||||||||
Premium finance receivables life insurance |
1,619,668 | 16 | 1,521,886 | 15 | 1,378,657 | 14 | ||||||||||||||||||
Indirect consumer |
57,718 | 1 | 51,147 | 1 | 69,011 | 1 | ||||||||||||||||||
Other loans |
101,068 | 1 | 106,272 | 1 | 99,091 | 1 | ||||||||||||||||||
Total loans, net of unearned income, excluding covered loans |
$ | 9,925,077 | 96 | % | $ | 9,599,886 | 97 | % | $ | 9,324,163 | 97 | % | ||||||||||||
Covered loans |
408,669 | 4 | 334,353 | 3 | 275,563 | 3 | ||||||||||||||||||
Total loans |
$ | 10,333,746 | 100 | % | $ | 9,934,239 | 100 | % | $ | 9,599,726 | 100 | % | ||||||||||||
> 90 Days | Allowance | |||||||||||||||||||
% of | Past Due | For Loan | ||||||||||||||||||
As of June 30, 2011 | Total | and Still | Losses | |||||||||||||||||
(Dollars in thousands) | Balance | Balance | Nonaccrual | Accruing | Allocation | |||||||||||||||
Commercial: |
||||||||||||||||||||
Commercial and industrial |
$ | 1,362,662 | 24.7 | % | $ | 22,289 | $ | | $ | 22,111 | ||||||||||
Franchise |
114,134 | 2.1 | 1,792 | | 978 | |||||||||||||||
Mortgage warehouse lines of credit |
68,477 | 1.2 | | | 559 | |||||||||||||||
Community Advantage homeowner associations |
73,929 | 1.3 | | | 185 | |||||||||||||||
Aircraft |
21,231 | 0.4 | | | 53 | |||||||||||||||
Asset-based lending |
366,096 | 6.6 | 2,087 | | 7,444 | |||||||||||||||
Municipal |
63,296 | 1.1 | | | 1,099 | |||||||||||||||
Leases |
62,535 | 1.1 | | | 417 | |||||||||||||||
Other |
76 | | | | 1 | |||||||||||||||
Total commercial |
$ | 2,132,436 | 38.5 | % | $ | 26,168 | $ | | $ | 32,847 | ||||||||||
Commercial Real-Estate: |
||||||||||||||||||||
Residential construction |
$ | 90,755 | 1.6 | % | $ | 3,011 | $ | | $ | 2,751 | ||||||||||
Commercial construction |
137,647 | 2.5 | 2,453 | | 3,849 | |||||||||||||||
Land |
212,934 | 3.9 | 33,980 | | 15,104 | |||||||||||||||
Office |
532,382 | 9.7 | 17,503 | | 8,287 | |||||||||||||||
Industrial |
514,534 | 9.3 | 2,470 | | 4,735 | |||||||||||||||
Retail |
524,788 | 9.5 | 8,164 | | 5,589 | |||||||||||||||
Multi-family |
316,151 | 5.7 | 4,947 | | 8,488 | |||||||||||||||
Mixed use and other |
1,045,477 | 19.3 | 17,265 | | 12,900 | |||||||||||||||
Total commercial real-estate |
$ | 3,374,668 | 61.5 | % | $ | 89,793 | $ | | $ | 61,703 | ||||||||||
Total commercial and commercial
real-estate |
$ | 5,507,104 | 100.0 | % | $ | 115,961 | $ | | $ | 94,550 | ||||||||||
Commercial real-estate collateral location
by state: |
||||||||||||||||||||
Illinois |
$ | 2,735,375 | 81.1 | % | ||||||||||||||||
Wisconsin |
349,436 | 10.4 | ||||||||||||||||||
Total primary markets |
$ | 3,084,811 | 91.5 | % | ||||||||||||||||
Florida |
57,993 | 1.7 | ||||||||||||||||||
Arizona |
41,295 | 1.2 | ||||||||||||||||||
Indiana |
48,870 | 1.4 | ||||||||||||||||||
Other (no individual state greater than 0.5%) |
141,699 | 4.2 | ||||||||||||||||||
Total |
$ | 3,374,668 | 100.0 | % | ||||||||||||||||
65
> 90 Days | Allowance | |||||||||||||||||||
% of | Past Due | For Loan | ||||||||||||||||||
As of June 30, 2010 | Total | and Still | Losses | |||||||||||||||||
(Dollars in thousands) | Balance | Balance | Nonaccrual | Accruing | Allocation | |||||||||||||||
Commercial: |
||||||||||||||||||||
Commercial and industrial |
$ | 1,230,502 | 23.8 | % | $ | 16,456 | $ | 99 | $ | 21,986 | ||||||||||
Franchise |
138,687 | 2.7 | | | 2,100 | |||||||||||||||
Mortgage warehouse lines of credit |
118,823 | 2.3 | | | 1,588 | |||||||||||||||
Community Advantage homeowner associations |
62,452 | 1.2 | | | 167 | |||||||||||||||
Aircraft |
38,574 | 0.7 | | | 487 | |||||||||||||||
Asset-based lending |
180,486 | 3.5 | 1,219 | | 3,723 | |||||||||||||||
Municipal |
35,797 | 0.7 | | | 365 | |||||||||||||||
Leases |
22,295 | 0.4 | 66 | | 300 | |||||||||||||||
Other |
2 | | | | | |||||||||||||||
Total commercial |
$ | 1,827,618 | 35.3 | % | $ | 17,741 | $ | 99 | $ | 30,716 | ||||||||||
Commercial Real-Estate: |
||||||||||||||||||||
Residential construction |
$ | 129,462 | 2.5 | % | $ | 15,468 | $ | | $ | 4,954 | ||||||||||
Commercial construction |
188,176 | 3.6 | 6,140 | | 6,780 | |||||||||||||||
Land |
269,556 | 5.2 | 21,699 | | 9,002 | |||||||||||||||
Office |
535,541 | 10.3 | 2,991 | 1,194 | 6,390 | |||||||||||||||
Industrial |
472,715 | 9.1 | 5,540 | | 5,525 | |||||||||||||||
Retail |
484,537 | 9.4 | 5,174 | | 5,869 | |||||||||||||||
Multi-family |
276,881 | 5.3 | 11,074 | | 3,235 | |||||||||||||||
Mixed use and other |
990,955 | 19.3 | 14,898 | 1,054 | 13,709 | |||||||||||||||
Total commercial real-estate |
$ | 3,347,823 | 64.7 | % | $ | 82,984 | $ | 2,248 | $ | 55,464 | ||||||||||
Total commercial and commercial
real-estate |
$ | 5,175,441 | 100.0 | % | $ | 100,725 | $ | 2,347 | $ | 86,180 | ||||||||||
Commercial real-estate collateral location
by state: |
||||||||||||||||||||
Illinois |
$ | 2,702,471 | 80.7 | % | ||||||||||||||||
Wisconsin |
360,362 | 10.8 | ||||||||||||||||||
Total primary markets |
$ | 3,062,833 | 91.5 | % | ||||||||||||||||
Florida |
67,322 | 2.0 | ||||||||||||||||||
Arizona |
48,533 | 1.4 | ||||||||||||||||||
Indiana |
42,607 | 1.3 | ||||||||||||||||||
Other (no individual state greater than 0.7%) |
126,528 | 3.8 | ||||||||||||||||||
Total |
$ | 3,347,823 | 100.0 | % | ||||||||||||||||
66
67
Variable Rate | ||||||||||||||||||||
As of June 30, 2011 | One year or | From one to | Over | |||||||||||||||||
(Dollars in thousands) | Fixed Rate | less | five years | five years | Total | |||||||||||||||
Commercial |
||||||||||||||||||||
Fixed rate |
$ | 534,699 | $ | | $ | | $ | | $ | 534,699 | ||||||||||
Variable rate |
||||||||||||||||||||
With floor feature |
| 851,409 | 5,303 | 6,025 | 862,737 | |||||||||||||||
Without floor feature |
| 694,234 | 39,166 | 1,600 | 735,000 | |||||||||||||||
Total commercial |
534,699 | 1,545,643 | 44,469 | 7,625 | 2,132,436 | |||||||||||||||
Commercial real-estate |
||||||||||||||||||||
Fixed rate |
1,572,504 | | | | 1,572,504 | |||||||||||||||
Variable rate |
||||||||||||||||||||
With floor feature |
| 595,877 | 583,240 | 23,055 | 1,202,172 | |||||||||||||||
Without floor feature |
| 496,848 | 95,790 | 7,354 | 599,992 | |||||||||||||||
Total commercial
real-estate |
1,572,504 | 1,092,725 | 679,030 | 30,409 | 3,374,668 | |||||||||||||||
68
1 Rating
|
Minimal Risk (Loss Potential none or extremely low) (Superior asset quality, excellent liquidity, minimal leverage) | |
2 Rating
|
Modest Risk (Loss Potential demonstrably low) (Very good asset quality and liquidity, strong leverage capacity) | |
3 Rating
|
Average Risk (Loss Potential low but no longer refutable) (Mostly satisfactory asset quality and liquidity, good leverage capacity) | |
4 Rating
|
Above Average Risk (Loss Potential variable, but some potential for deterioration) (Acceptable asset quality, little excess liquidity, modest leverage capacity) | |
5 Rating
|
Management Attention Risk (Loss Potential moderate if corrective action not taken)
(Generally acceptable asset quality, somewhat strained liquidity, minimal leverage capacity) |
|
6 Rating
|
Special Mention (Loss Potential moderate if corrective action not taken) (Assets in this category are currently protected, potentially weak, but not to the point of substandard classification) | |
7 Rating
|
Substandard Accrual (Loss Potential distinct possibility that the bank may sustain some loss, but no discernable impairment) (Must have well defined weaknesses that jeopardize the liquidation of the debt) | |
8 Rating
|
Substandard Non-accrual (Loss Potential well documented probability of loss, including potential impairment) (Must have well defined weaknesses that jeopardize the liquidation of the debt) | |
9 Rating
|
Doubtful (Loss Potential extremely high) (These assets have all the weaknesses in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of current existing facts, conditions, and values, highly improbable) | |
10 Rating
|
Loss (fully charged-off) (Loans in this category are considered fully uncollectible.) |
69
70
June 30, | March 31, | December 31, | June 30, | |||||||||||||
(Dollars in thousands) | 2011 | 2011 | 2010 | 2010 | ||||||||||||
Loans past due greater than 90 days and still accruing: |
||||||||||||||||
Commercial |
$ | | $ | 150 | $ | 478 | $ | 99 | ||||||||
Commercial real-estate |
| 1,997 | | 2,248 | ||||||||||||
Home equity |
| | | | ||||||||||||
Residential real-estate |
| | | | ||||||||||||
Premium finance receivables commercial |
4,446 | 6,319 | 8,096 | 6,350 | ||||||||||||
Premium finance receivables life insurance |
324 | | | 1,923 | ||||||||||||
Indirect consumer |
284 | 310 | 318 | 579 | ||||||||||||
Consumer and other |
| 1 | 1 | 3 | ||||||||||||
Total loans past due greater than 90 days and still
accruing |
5,054 | 8,777 | 8,893 | 11,202 | ||||||||||||
Non-accrual loans: |
||||||||||||||||
Commercial |
26,168 | 26,157 | 16,382 | 17,741 | ||||||||||||
Commercial real-estate |
89,793 | 94,001 | 93,963 | 82,984 | ||||||||||||
Home equity |
15,853 | 11,184 | 7,425 | 7,149 | ||||||||||||
Residential real-estate |
7,379 | 4,909 | 6,085 | 4,436 | ||||||||||||
Premium finance receivables commercial |
10,309 | 9,550 | 8,587 | 11,389 | ||||||||||||
Premium finance receivables life insurance |
670 | 342 | 354 | | ||||||||||||
Indirect consumer |
89 | 320 | 191 | 438 | ||||||||||||
Consumer and other |
757 | 147 | 252 | 62 | ||||||||||||
Total non-accrual loans |
151,018 | 146,610 | 133,239 | 124,199 | ||||||||||||
Total non-performing loans: |
||||||||||||||||
Commercial |
26,168 | 26,307 | 16,860 | 17,840 | ||||||||||||
Commercial real-estate |
89,793 | 95,998 | 93,963 | 85,232 | ||||||||||||
Home equity |
15,853 | 11,184 | 7,425 | 7,149 | ||||||||||||
Residential real-estate |
7,379 | 4,909 | 6,085 | 4,436 | ||||||||||||
Premium finance receivables commercial |
14,755 | 15,869 | 16,683 | 17,739 | ||||||||||||
Premium finance receivables life insurance |
994 | 342 | 354 | 1,923 | ||||||||||||
Indirect consumer |
373 | 630 | 509 | 1,017 | ||||||||||||
Consumer and other |
757 | 148 | 253 | 65 | ||||||||||||
Total non-performing loans |
$ | 156,072 | $ | 155,387 | $ | 142,132 | $ | 135,401 | ||||||||
Other real estate owned |
82,772 | 85,290 | 71,214 | 86,420 | ||||||||||||
Total non-performing assets |
$ | 238,844 | $ | 240,677 | $ | 213,346 | $ | 221,821 | ||||||||
Total non-performing loans by category as a percent of
its own respective categorys period-end balance: |
||||||||||||||||
Commercial |
1.23 | % | 1.36 | % | 0.82 | % | 0.98 | % | ||||||||
Commercial real-estate |
2.66 | 2.86 | 2.81 | 2.55 | ||||||||||||
Home equity |
1.80 | 1.25 | 0.81 | 0.78 | ||||||||||||
Residential real-estate |
2.24 | 1.42 | 1.72 | 1.33 | ||||||||||||
Premium finance receivables commercial |
1.03 | 1.19 | 1.32 | 1.32 | ||||||||||||
Premium finance receivables life insurance |
0.06 | 0.02 | 0.02 | 0.14 | ||||||||||||
Indirect consumer |
0.65 | 1.20 | 0.99 | 1.47 | ||||||||||||
Consumer and other |
0.75 | 0.15 | 0.24 | 0.07 | ||||||||||||
Total non-performing loans |
1.57 | % | 1.63 | % | 1.48 | % | 1.45 | % | ||||||||
Total non-performing assets, as a percentage
of total assets |
1.63 | % | 1.71 | % | 1.53 | % | 1.62 | % | ||||||||
Allowance for loan losses as a percentage of
total non-performing loans |
75.20 | % | 74.04 | % | 80.14 | % | 78.69 | % | ||||||||
71
June 30, | June 30, | |||||||
(Dollars in thousands) | 2011 | 2010 | ||||||
Non-performing premium finance receivables commercial |
$ | 14,755 | $ | 17,739 | ||||
- as a percent of premium finance receivables commercial outstanding |
1.03 | % | 1.32 | % | ||||
Net (recoveries) charge-offs of premium finance receivables commercial |
$ | (3,482 | ) | $ | 17,559 | |||
- annualized as a percent of average premium finance receivables
commercial |
(0.99) | % | 5.46 | % |
72
90+ days | 60-89 | 30-59 | ||||||||||||||||||||||
As of June 30, 2011 | and still | days past | days past | |||||||||||||||||||||
(Dollars in thousands) | Nonaccrual | accruing | due | due | Current | Total Loans | ||||||||||||||||||
Loan Balances: |
||||||||||||||||||||||||
Commercial |
||||||||||||||||||||||||
Commercial and industrial |
$ | 22,289 | $ | | $ | 7,164 | $ | 23,754 | $ | 1,309,455 | $ | 1,362,662 | ||||||||||||
Franchise |
1,792 | | | | 112,342 | 114,134 | ||||||||||||||||||
Mortgage warehouse lines of credit |
| | | | 68,477 | 68,477 | ||||||||||||||||||
Community Advanatage homeowners association |
| | | | 73,929 | 73,929 | ||||||||||||||||||
Aircraft |
| | | | 21,231 | 21,231 | ||||||||||||||||||
Asset-based lending |
2,087 | | | 2,415 | 361,594 | 366,096 | ||||||||||||||||||
Municipal |
| | | | 63,296 | 63,296 | ||||||||||||||||||
Leases |
| | | 763 | 61,772 | 62,535 | ||||||||||||||||||
Other |
| | | | 76 | 76 | ||||||||||||||||||
Total commercial and commercial real-estate |
26,168 | | 7,164 | 26,932 | 2,072,172 | 2,132,436 | ||||||||||||||||||
Commercial real-estate |
||||||||||||||||||||||||
Residential construction |
3,011 | | 938 | 5,245 | 81,561 | 90,755 | ||||||||||||||||||
Commercial construction |
2,453 | | 7,579 | 7,075 | 120,540 | 137,647 | ||||||||||||||||||
Land |
33,980 | | 10,281 | 8,076 | 160,597 | 212,934 | ||||||||||||||||||
Office |
17,503 | | 1,648 | 3,846 | 509,385 | 532,382 | ||||||||||||||||||
Industrial |
2,470 | | 2,689 | 2,480 | 506,895 | 514,534 | ||||||||||||||||||
Retail |
8,164 | | 3,778 | 14,806 | 498,040 | 524,788 | ||||||||||||||||||
Multi-family |
4,947 | | 4,628 | 3,836 | 302,740 | 316,151 | ||||||||||||||||||
Mixed use and other |
17,265 | | 9,350 | 4,201 | 1,014,661 | 1,045,477 | ||||||||||||||||||
Total commercial real-estate |
89,793 | | 40,891 | 49,565 | 3,194,419 | 3,374,668 | ||||||||||||||||||
Home equity |
15,853 | | 1,502 | 4,081 | 859,266 | 880,702 | ||||||||||||||||||
Residential real estate |
7,379 | | 1,272 | 949 | 319,781 | 329,381 | ||||||||||||||||||
Premium finance receivables commercial |
10,309 | 4,446 | 5,089 | 7,897 | 1,401,695 | 1,429,436 | ||||||||||||||||||
Premium finance receivables life insurance |
670 | 324 | 4,873 | 3,254 | 1,610,547 | 1,619,668 | ||||||||||||||||||
Indirect consumer |
89 | 284 | 98 | 531 | 56,716 | 57,718 | ||||||||||||||||||
Consumer and other |
757 | | 123 | 418 | 99,770 | 101,068 | ||||||||||||||||||
Total loans, net of unearned income, excluding covered loans |
$ | 151,018 | $ | 5,054 | $ | 61,012 | $ | 93,627 | $ | 9,614,366 | $ | 9,925,077 | ||||||||||||
Covered loans |
| 121,271 | 5,643 | 11,899 | 269,856 | 408,669 | ||||||||||||||||||
Total loans, net of unearned income |
$ | 151,018 | $ | 126,325 | $ | 66,655 | $ | 105,526 | $ | 9,884,222 | $ | 10,333,746 | ||||||||||||
73
90+ days | 60-89 | 30-59 | ||||||||||||||||||||||
and still | days past | days past | ||||||||||||||||||||||
Aging as a % of Loan Balance: | Nonaccrual | accruing | due | due | Current | Total Loans | ||||||||||||||||||
Commercial |
||||||||||||||||||||||||
Commercial and industrial |
1.6 | % | | % | 0.5 | % | 1.7 | % | 96.2 | % | 100.0 | % | ||||||||||||
Franchise |
1.6 | | | | 98.4 | 100.0 | ||||||||||||||||||
Mortgage warehouse lines of credit |
| | | | 100.0 | 100.0 | ||||||||||||||||||
Community Advanatage homeowners association |
| | | | 100.0 | 100.0 | ||||||||||||||||||
Aircraft |
| | | | 100.0 | 100.0 | ||||||||||||||||||
Asset-based lending |
0.6 | | | 0.7 | 98.7 | 100.0 | ||||||||||||||||||
Municipal |
| | | | 100.0 | 100.0 | ||||||||||||||||||
Leases |
| | | 1.2 | 98.8 | 100.0 | ||||||||||||||||||
Other |
| | | | 100.0 | 100.0 | ||||||||||||||||||
Total commercial |
1.2 | | 0.3 | 1.3 | 97.2 | 100.0 | ||||||||||||||||||
Commercial real-estate |
||||||||||||||||||||||||
Residential construction |
3.3 | | 1.0 | 5.8 | 89.9 | 100.0 | ||||||||||||||||||
Commercial construction |
1.8 | | 5.5 | 5.1 | 87.6 | 100.0 | ||||||||||||||||||
Land |
16.0 | | 4.8 | 3.8 | 75.4 | 100.0 | ||||||||||||||||||
Office |
3.3 | | 0.3 | 0.7 | 95.7 | 100.0 | ||||||||||||||||||
Industrial |
0.5 | | 0.5 | 0.5 | 98.5 | 100.0 | ||||||||||||||||||
Retail |
1.6 | | 0.7 | 2.8 | 94.9 | 100.0 | ||||||||||||||||||
Multi-family |
1.6 | | 1.5 | 1.2 | 95.7 | 100.0 | ||||||||||||||||||
Mixed use and other |
1.7 | | 0.9 | 0.4 | 97.0 | 100.0 | ||||||||||||||||||
Total commercial real-estate |
2.7 | | 1.2 | 1.5 | 94.6 | 100.0 | ||||||||||||||||||
Home equity |
1.8 | | 0.2 | 0.5 | 97.5 | 100.0 | ||||||||||||||||||
Residential real estate |
2.2 | | 0.4 | 0.3 | 97.1 | 100.0 | ||||||||||||||||||
Premium finance receivables commercial |
0.7 | 0.3 | 0.4 | 0.6 | 98.0 | 100.0 | ||||||||||||||||||
Premium finance receivables life insurance |
| | 0.3 | 0.2 | 99.5 | 100.0 | ||||||||||||||||||
Indirect consumer |
0.2 | 0.5 | 0.2 | 0.9 | 98.2 | 100.0 | ||||||||||||||||||
Consumer and other |
0.7 | | 0.1 | 0.4 | 98.8 | 100.0 | ||||||||||||||||||
Total loans, net of unearned income, excluding
covered loans |
1.5 | % | 0.1 | % | 0.6 | % | 0.9 | % | 96.9 | % | 100.0 | % | ||||||||||||
Covered loans |
| 29.7 | 1.4 | 2.9 | 66.0 | 100.0 | ||||||||||||||||||
Total loans, net of unearned income |
1.5 | % | 1.2 | % | 0.6 | % | 1.0 | % | 95.7 | % | 100.0 | % | ||||||||||||
74
90+ days | 60-89 | 30-59 | ||||||||||||||||||||||
As of March 31, 2011 | and still | days past | days past | |||||||||||||||||||||
(Dollars in thousands) | Nonaccrual | accruing | due | due | Current | Total Loans | ||||||||||||||||||
Loan Balances: |
||||||||||||||||||||||||
Commercial |
||||||||||||||||||||||||
Commercial and industrial |
$ | 24,277 | $ | 150 | $ | 3,233 | $ | 9,201 | $ | 1,240,796 | $ | 1,277,657 | ||||||||||||
Franchise |
1,792 | | | | 112,584 | 114,376 | ||||||||||||||||||
Mortgage warehouse lines of credit |
| | | | 33,482 | 33,482 | ||||||||||||||||||
Community Advanatage homeowners association |
| | | | 75,948 | 75,948 | ||||||||||||||||||
Aircraft |
74 | | | | 22,243 | 22,317 | ||||||||||||||||||
Asset-based lending |
| | 216 | 2,355 | 299,328 | 301,899 | ||||||||||||||||||
Municipal |
| | | | 60,376 | 60,376 | ||||||||||||||||||
Leases |
14 | | | 88 | 51,404 | 51,506 | ||||||||||||||||||
Other |
| | | | | | ||||||||||||||||||
Total commercial |
26,157 | 150 | 3,449 | 11,644 | 1,896,161 | 1,937,561 | ||||||||||||||||||
Commercial real-estate |
||||||||||||||||||||||||
Residential construction |
7,891 | | 1,057 | 3,587 | 78,832 | 91,367 | ||||||||||||||||||
Commercial construction |
1,396 | 692 | 2,469 | 680 | 116,311 | 121,548 | ||||||||||||||||||
Land |
26,974 | | 7,366 | 12,455 | 183,419 | 230,214 | ||||||||||||||||||
Office |
17,945 | | 1,705 | 3,059 | 534,558 | 557,267 | ||||||||||||||||||
Industrial |
1,251 | 524 | 1,672 | 8,499 | 483,690 | 495,636 | ||||||||||||||||||
Retail |
12,824 | | 4,994 | 5,810 | 499,486 | 523,114 | ||||||||||||||||||
Multi-family |
5,968 | | 1,107 | 5,059 | 281,729 | 293,863 | ||||||||||||||||||
Mixed use and other |
19,752 | 781 | 7,187 | 19,835 | 995,998 | 1,043,553 | ||||||||||||||||||
Total commercial real-estate |
94,001 | 1,997 | 27,557 | 58,984 | 3,174,023 | 3,356,562 | ||||||||||||||||||
Home equity |
11,184 | | 3,366 | 6,603 | 870,179 | 891,332 | ||||||||||||||||||
Residential real estate |
4,909 | | 918 | 5,174 | 333,908 | 344,909 | ||||||||||||||||||
Premium finance receivables commercial |
9,550 | 6,319 | 4,433 | 14,428 | 1,303,121 | 1,337,851 | ||||||||||||||||||
Premium finance receivables life insurance |
342 | | 1,130 | 5,580 | 1,532,469 | 1,539,521 | ||||||||||||||||||
Indirect consumer |
320 | 310 | 182 | 657 | 50,910 | 52,379 | ||||||||||||||||||
Consumer and other |
147 | 1 | 185 | 394 | 100,960 | 101,687 | ||||||||||||||||||
Total loans, net of unearned income, excluding covered loans |
$ | 146,610 | $ | 8,777 | $ | 41,220 | $ | 103,464 | $ | 9,261,731 | $ | 9,561,802 | ||||||||||||
Covered loans |
| 116,298 | 5,288 | 24,855 | 284,858 | 431,299 | ||||||||||||||||||
Total loans, net of unearned income |
$ | 146,610 | $ | 125,075 | $ | 46,508 | $ | 128,319 | $ | 9,546,589 | $ | 9,993,101 | ||||||||||||
75
90+ days | 60-89 | 30-59 | ||||||||||||||||||||||
and still | days past | days past | ||||||||||||||||||||||
Aging as a % of Loan Balance: | Nonaccrual | accruing | due | due | Current | Total Loans | ||||||||||||||||||
Commercial |
||||||||||||||||||||||||
Commercial and industrial |
1.9 | % | | % | 0.3 | % | 0.7 | % | 97.1 | % | 100.0 | % | ||||||||||||
Franchise |
1.6 | | | | 98.4 | 100.0 | ||||||||||||||||||
Mortgage warehouse lines of credit |
| | | | 100.0 | 100.0 | ||||||||||||||||||
Community Advanatage homeowners association |
| | | | 100.0 | 100.0 | ||||||||||||||||||
Aircraft |
0.3 | | | | 99.7 | 100.0 | ||||||||||||||||||
Asset-based lending |
| | 0.1 | 0.8 | 99.1 | 100.0 | ||||||||||||||||||
Municipal |
| | | | 100.0 | 100.0 | ||||||||||||||||||
Leases |
| | | 0.2 | 99.8 | 100.0 | ||||||||||||||||||
Other |
| | | | | | ||||||||||||||||||
Total commercial |
1.3 | | 0.2 | 0.6 | 97.9 | 100.0 | ||||||||||||||||||
Commercial real-estate |
||||||||||||||||||||||||
Residential construction |
8.6 | | 1.2 | 3.9 | 86.3 | 100.0 | ||||||||||||||||||
Commercial construction |
1.1 | 0.6 | 2.0 | 0.6 | 95.7 | 100.0 | ||||||||||||||||||
Land |
11.7 | | 3.2 | 5.4 | 79.7 | 100.0 | ||||||||||||||||||
Office |
3.2 | | 0.3 | 0.5 | 96.0 | 100.0 | ||||||||||||||||||
Industrial |
0.3 | 0.1 | 0.3 | 1.7 | 97.6 | 100.0 | ||||||||||||||||||
Retail |
2.5 | | 1.0 | 1.1 | 95.4 | 100.0 | ||||||||||||||||||
Multi-family |
2.0 | | 0.4 | 1.7 | 95.9 | 100.0 | ||||||||||||||||||
Mixed use and other |
1.9 | 0.1 | 0.7 | 1.9 | 95.4 | 100.0 | ||||||||||||||||||
Total commercial real-estate |
2.8 | 0.1 | 0.8 | 1.8 | 94.5 | 100.0 | ||||||||||||||||||
Home equity |
1.3 | | 0.4 | 0.7 | 97.6 | 100.0 | ||||||||||||||||||
Residential real estate |
1.4 | | 0.3 | 1.5 | 96.8 | 100.0 | ||||||||||||||||||
Premium finance receivables commercial |
0.7 | 0.5 | 0.3 | 1.1 | 97.4 | 100.0 | ||||||||||||||||||
Premium finance receivables life insurance |
| | 0.1 | 0.4 | 99.5 | 100.0 | ||||||||||||||||||
Indirect consumer |
0.6 | 0.6 | 0.3 | 1.3 | 97.2 | 100.0 | ||||||||||||||||||
Consumer and other |
0.1 | | 0.2 | 0.4 | 99.3 | 100.0 | ||||||||||||||||||
Total loans, net of unearned income, excluding covered loans |
1.5 | % | 0.1 | % | 0.4 | % | 1.1 | % | 96.9 | % | 100.0 | % | ||||||||||||
Covered loans |
| 27.0 | 1.2 | 5.8 | 66.0 | 100.0 | ||||||||||||||||||
Total loans, net of unearned income |
1.5 | % | 1.3 | % | 0.5 | % | 1.3 | % | 95.4 | % | 100.0 | % | ||||||||||||
76
Non-performing | ||||
(Dollars in thousands) | Loans | |||
Balance at March 31, 2011 |
$ | 155,387 | ||
Additions, net |
45,742 | |||
Return to performing status |
(2,193 | ) | ||
Payments received |
(12,553 | ) | ||
Transfers to OREO |
(12,926 | ) | ||
Charge-offs |
(17,611 | ) | ||
Net change for niche loans (1) |
226 | |||
Balance at June 30, 2011 |
$ | 156,072 | ||
(1) | This includes activity for premium finance receivables, mortgages held for investment by Wintrust Mortgage and indirect consumer loans |
77
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
(Dollars in thousands) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Allowance for loan losses at beginning of period |
$ | 115,049 | $ | 102,397 | $ | 113,903 | $ | 98,277 | ||||||||
Provision for credit losses |
28,666 | 41,297 | 53,042 | 70,342 | ||||||||||||
Other adjustments |
| | | 1,943 | ||||||||||||
Reclassification to/from allowance for unfunded
lending-related commitments |
(317 | ) | 785 | 1,799 | 684 | |||||||||||
Charge-offs: |
||||||||||||||||
Commercial |
7,583 | 4,781 | 16,723 | 9,456 | ||||||||||||
Commercial real estate |
20,691 | 12,311 | 34,033 | 32,554 | ||||||||||||
Home equity |
1,300 | 3,089 | 2,073 | 3,370 | ||||||||||||
Residential real estate |
282 | 310 | 1,557 | 717 | ||||||||||||
Premium finance receivables commercial |
1,893 | 17,747 | 3,400 | 19,680 | ||||||||||||
Premium finance receivables life insurance |
214 | | 244 | | ||||||||||||
Indirect consumer |
44 | 256 | 164 | 529 | ||||||||||||
Consumer and other |
266 | 109 | 426 | 288 | ||||||||||||
Total charge-offs |
32,273 | 38,603 | 58,620 | 66,594 | ||||||||||||
Recoveries: |
||||||||||||||||
Commercial |
301 | 143 | 567 | 586 | ||||||||||||
Commercial real estate |
463 | 218 | 801 | 660 | ||||||||||||
Home equity |
19 | 6 | 27 | 13 | ||||||||||||
Residential real estate |
3 | 2 | 5 | 7 | ||||||||||||
Premium finance receivables commercial |
5,375 | 188 | 5,643 | 417 | ||||||||||||
Premium finance receivables life insurance |
12 | | 12 | | ||||||||||||
Indirect consumer |
42 | 81 | 108 | 132 | ||||||||||||
Consumer and other |
22 | 33 | 75 | 80 | ||||||||||||
Total recoveries |
6,237 | 671 | 7,238 | 1,895 | ||||||||||||
Net charge-offs, excluding covered loans |
(26,036 | ) | (37,932 | ) | (51,382 | ) | (64,699 | ) | ||||||||
Allowance for loan losses at period end |
$ | 117,362 | $ | 106,547 | $ | 117,362 | $ | 106,547 | ||||||||
Allowance for unfunded lending-related
commitments at period end |
$ | 2,335 | $ | 2,169 | $ | 2,335 | $ | 2,169 | ||||||||
Allowance for credit losses at period end |
$ | 119,697 | $ | 108,716 | $ | 119,697 | $ | 108,716 | ||||||||
Annualized net charge-offs by category as a
percentage of its own respective categorys
average: |
||||||||||||||||
Commercial |
1.45 | % | 1.04 | 1.65 | % | 1.03 | % | |||||||||
Commercial real estate |
2.40 | 1.45 | 1.99 | 1.93 | ||||||||||||
Home equity |
0.58 | 1.34 | 0.46 | 0.73 | ||||||||||||
Residential real estate |
0.25 | 0.23 | 0.62 | 0.28 | ||||||||||||
Premium finance receivables commercial |
(0.99 | ) | 5.46 | (0.33 | ) | 3.03 | ||||||||||
Premium finance receivables life insurance |
0.05 | | 0.03 | | ||||||||||||
Indirect consumer |
0.02 | 0.92 | 0.21 | 0.96 | ||||||||||||
Consumer and other |
0.98 | 0.27 | 0.69 | 0.37 | ||||||||||||
Total loans, net of unearned income, excluding covered loans |
1.06 | % | 1.63 | 1.05 | % | 1.41 | % | |||||||||
Net charge-offs as a percentage of the
provision for credit losses |
90.83 | % | 91.85 | 96.87 | % | 91.98 | % | |||||||||
Loans at period-end |
$ | 9,925,077 | $ | 9,324,163 | ||||||||||||
Allowance for loan losses as a percentage of loans at period end |
1.18 | % | 1.14 | % | ||||||||||||
Allowance for credit losses as a percentage of loans at period end |
1.21 | % | 1.17 | % |
78
| historical underwriting loss factor; | ||
| changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off, and recovery practices not considered elsewhere in estimating credit losses; | ||
| changes in national, regional, and local economic and business conditions and developments that affect the collectibility of the portfolio; | ||
| changes in the nature and volume of the portfolio and in the terms of the loans; | ||
| changes in the experience, ability, and depth of lending management and other relevant staff; | ||
| changes in the volume and severity of past due loans, the volume of non-accrual loans, and the volume and severity of adversely classified or graded loans; | ||
| changes in the quality of the banks loan review system; | ||
| changes in the underlying collateral for collateral dependent loans; | ||
| the existence and effect of any concentrations of credit, and changes in the level of such concentrations; and | ||
| the effect of other external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the banks existing portfolio. |
79
80
June 30, | March 31, | June 30, | ||||||||||
(Dollars in thousands) | 2011 | 2011 | 2010 | |||||||||
Accruing: |
||||||||||||
Commercial |
$ | 12,396 | $ | 12,620 | $ | 5,110 | ||||||
Commercial real estate |
72,363 | 55,202 | 46,052 | |||||||||
Residential real estate |
1,079 | 1,560 | 2,591 | |||||||||
Total accrual |
$ | 85,838 | $ | 69,382 | $ | 53,753 | ||||||
Non-accrual: (1) |
||||||||||||
Commercial |
$ | 3,587 | $ | 5,582 | $ | 3,865 | ||||||
Commercial real estate |
12,308 | 21,174 | 6,827 | |||||||||
Residential real estate |
1,311 | 431 | 238 | |||||||||
Total non-accrual |
$ | 17,206 | $ | 27,187 | $ | 10,930 | ||||||
Total restructured loans: |
||||||||||||
Commercial |
$ | 15,983 | $ | 18,202 | $ | 8,975 | ||||||
Commercial real estate |
84,671 | 76,376 | 52,879 | |||||||||
Residential real estate |
2,390 | 1,991 | 2,829 | |||||||||
Total restructured loans |
$ | 103,044 | $ | 96,569 | $ | 64,683 | ||||||
(1) | Included in total non-performing loans. |
81
Three Months Ended | ||||||||||||
June 30, | March 31, | June 30, | ||||||||||
(Dollars in thousands) | 2011 | 2011 | 2010 | |||||||||
Balance at beginning of period |
$ | 85,290 | $ | 71,214 | $ | 89,009 | ||||||
Disposal/resolved |
(8,253 | ) | (11,515 | ) | (15,201 | ) | ||||||
Transfers in at fair value, less costs to sell |
10,190 | 28,865 | 16,348 | |||||||||
Fair value adjustments |
(4,455 | ) | (3,274 | ) | (3,736 | ) | ||||||
Balance at end of period |
$ | 82,772 | $ | 85,290 | $ | 86,420 | ||||||
Period End | ||||||||||||
June 30, | March 31, | June 30, | ||||||||||
(Dollars in thousands) | 2011 | 2011 | 2010 | |||||||||
Residential real estate |
$ | 7,196 | $ | 10,570 | $ | 5,457 | ||||||
Residential real estate development |
16,591 | 17,808 | 27,161 | |||||||||
Commercial real estate |
58,985 | 56,912 | 53,802 | |||||||||
Total |
$ | 82,772 | $ | 85,290 | $ | 86,420 | ||||||
82
| negative economic conditions that adversely affect the economy, housing prices, the job market and other factors that may affect the Companys liquidity and the performance of its loan portfolios, particularly in the markets in which it operates; | |
| the extent of defaults and losses on the Companys loan portfolio, which may require further increases in its allowance for credit losses; | |
| estimates of fair value of certain of the Companys assets and liabilities, which could change in value significantly from period to period; | |
| changes in the level and volatility of interest rates, the capital markets and other market indices that may affect, among other things, the Companys liquidity and the value of its assets and liabilities; | |
| a decrease in the Companys regulatory capital ratios, including as a result of further declines in the value of its loan portfolios, or otherwise; | |
| legislative or regulatory changes, particularly changes in regulation of financial services companies and/or the products and services offered by financial services companies, including those resulting from the Dodd-Frank Act; | |
| restrictions upon our ability to market our products to consumers and limitations on our ability to profitably operate our mortgage business resulting from the Dodd-Frank Act; | |
| increased costs of compliance, heightened regulatory capital requirements and other risks associated with changes in regulation and the current regulatory environment, including the Dodd-Frank Act; | |
| changes in capital requirements resulting from Basel II and III initiatives; | |
| increases in the Companys FDIC insurance premiums, or the collection of special assessments by the FDIC; | |
| losses incurred in connection with repurchases and indemnification payments related to mortgages; | |
| competitive pressures in the financial services business which may affect the pricing of the Companys loan and deposit products as well as its services (including wealth management services); | |
| delinquencies or fraud with respect to the Companys premium finance business; | |
| failure to identify and complete favorable acquisitions in the future or unexpected difficulties or developments related to the integration of recent or future acquisitions; | |
| unexpected difficulties and losses related to FDIC-assisted acquisitions, including those resulting from our loss-sharing arrangements with the FDIC; | |
| credit downgrades among commercial and life insurance providers that could negatively affect the value of collateral securing the Companys premium finance loans; | |
| any negative perception of the Companys reputation or financial strength; | |
| the loss of customers as a result of technological changes allowing consumers to complete their financial transactions without the use of a bank; | |
| the ability of the Company to attract and retain senior management experienced in the banking and financial services industries; | |
| the Companys ability to comply with covenants under its securitization facility and credit facility; |
83
| unexpected difficulties or unanticipated developments related to the Companys strategy of de novo bank formations and openings, which typically require over 13 months of operations before becoming profitable due to the impact of organizational and overhead expenses, the startup phase of generating deposits and the time lag typically involved in redeploying deposits into attractively priced loans and other higher yielding earning assets; | |
| changes in accounting standards, rules and interpretations and the impact on the Companys financial statements; | |
| adverse effects on our operational systems resulting from failures, human error or tampering; | |
| significant litigation involving the Company; and | |
| the ability of the Company to receive dividends from its subsidiaries. |
84
+200 | +100 | -100 | -200 | |||||||||||||
Basis | Basis | Basis | Basis | |||||||||||||
Points | Points | Points | Points | |||||||||||||
Percentage change
in net interest income
due to a ramped 100 and 200
basis point shift
in the yield curve: |
||||||||||||||||
June 30, 2011 |
8.1 | % | 3.6 | % | (4.6 | )% | (10.1 | )% | ||||||||
December 31, 2010 |
5.3 | % | 2.4 | % | (2.9 | )% | (7.0 | )% | ||||||||
June 30, 2010 |
4.1 | % | 1.8 | % | (2.6 | )% | (6.8 | )% |
85
86
3.1
|
Amended and Restated By-laws of Wintrust Financial Corporation (incorporated by reference to Exhibit 3.2 to the Companys Current Report on Form 8-K filed with the Securities and Exchange Commission on April 15, 2011). | |
10.1
|
Wintrust Financial Corporation 2007 Stock Incentive Plan, as amended (incorporated by reference to Annex A of the Companys Definitive Proxy Statement filed with the Securities and Exchange Commission on April 28, 2011). | |
31.1
|
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
31.2
|
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
32.1
|
Certification of President and Chief Executive Officer and Executive Vice President and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
99.1
|
First Amendment to the Wintrust Financial Corporation 2005 Directors Deferred Fee and Stock Plan (incorporated by reference to Exhibit 3.1 to the Companys Current Report on Form 8-K filed with the Securities and Exchange Commission on April 15, 2011). | |
101.INS
|
XBRL Instance Document * | |
101.SCH
|
XBRL Taxonomy Extension Schema Document | |
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document | |
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document | |
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document |
* | Includes the following financial information included in the Companys Quarterly Report on Form 10-Q for the quarter ended June 30, 2011, formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Statements of Condition, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Changes in Shareholders Equity, (iv) the Consolidated Statements of Cash Flows, and (v) Notes to Consolidated Financial Statements |
87
WINTRUST FINANCIAL CORPORATION (Registrant) |
||||
Date: August 9, 2011 | /s/ DAVID L. STOEHR | |||
David L. Stoehr | ||||
Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) |
||||
88
1. | I have reviewed this quarterly report on Form 10-Q of Wintrust Financial Corporation; | |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |
4. | The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | ||
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounted principles; | ||
c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and | ||
d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of registrants board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and | ||
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
/s/ EDWARD J. WEHMER | ||||
Name: | Edward J. Wehmer | |||
Title: | President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Wintrust Financial Corporation; | |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; | |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; | |
4. | The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | ||
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounted principles; | ||
c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and | ||
d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of registrants board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and | ||
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
/s/ DAVID L. STOEHR | ||||
Name: | David L. Stoehr | |||
Title: | Executive Vice President and Chief Financial Officer |
(1) | The Quarterly Report of the Company on Form 10-Q for the period ended June 30, 2011, as filed with the Securities and Exchange Commission on August 9, 2011, (the Report) fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and | ||
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ EDWARD J. WEHMER | ||||
Name: | Edward J. Wehmer | |||
Title: | President and Chief Executive Officer | |||
Date: | August 9, 2011 |
/s/ DAVID L. STOEHR | ||||
Name: | David L. Stoehr | |||
Title: | Executive Vice President and Chief Financial Officer |
|||
Date: | August 9, 2011 | |||
Shareholders' Equity And Earnings Per Share (Narrative) (Details) (USD $)
|
0 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Feb. 15, 2011
|
Jun. 30, 2011
|
Jun. 30, 2010
|
Dec. 31, 2010
|
Jun. 30, 2011
Equity Component [Member]
|
Mar. 31, 2010
Common Stock [Member]
|
Dec. 31, 2010
Common Stock Offering Additional Series [Member]
|
Jun. 30, 2011
Series A Preferred Stock [Member]
|
Dec. 31, 2010
Series A Preferred Stock [Member]
|
Jun. 30, 2010
Series A Preferred Stock [Member]
|
Jun. 30, 2011
Series B Preferred Stock [Member]
|
Dec. 31, 2010
Series B Preferred Stock [Member]
|
Jun. 30, 2010
Series B Preferred Stock [Member]
|
||||
Common stock, shares issued | Â | $ 34,988,000 | $ 31,084,000 | $ 34,864,000 | Â | $ 6,700,000 | $ 3,700,000 | Â | Â | Â | Â | Â | Â | |||
Sale of Stock, Price Per Share | Â | Â | Â | Â | Â | $ 33.25 | $ 30.00 | Â | Â | Â | Â | Â | Â | |||
Net proceeds from issuance of common stock | Â | Â | 210,417,000 | Â | Â | 210,300,000 | 104,800,000 | Â | Â | Â | Â | Â | Â | |||
Tangible equity units sold | Â | Â | Â | 4,600,000 | Â | Â | Â | Â | Â | Â | Â | Â | Â | |||
Percentage of tangible equity units sold | Â | Â | Â | 7.50% | Â | Â | Â | Â | Â | Â | Â | Â | Â | |||
Tangible equity unit public offering price per unit | Â | 50.000000 | Â | 50.00 | 40.271818 | Â | Â | Â | Â | Â | Â | Â | Â | |||
Tangible equity unit, quarterly cash payments in percentage | Â | Â | Â | 222,700,000 | Â | Â | Â | Â | Â | Â | Â | Â | Â | |||
Percentage of fair value of debt component quarterly cash payments | Â | 7.50% | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | |||
Debt component marurity date | Dec. 15, 2013 | |||||||||||||||
Discount rate on debt component | Â | 9.50% | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | |||
Risk-free rate | Â | [1] | 2.80% | Â | 0.95% | Â | Â | Â | Â | Â | Â | Â | Â | |||
Expected stock price volatility minimum | Â | Â | Â | Â | 35.00% | Â | Â | Â | Â | Â | Â | Â | Â | |||
Expected stock price volatility maximum | Â | Â | Â | Â | (45.00%) | Â | Â | Â | Â | Â | Â | Â | Â | |||
Percent of dividend yield plus stock borrow cost | Â | Â | Â | Â | 0.85% | Â | Â | Â | Â | Â | Â | Â | Â | |||
Equity term | Â | [1] | 6.2 | Â | 3.02 | Â | Â | Â | Â | Â | Â | Â | Â | |||
Junior subordinated amortizing note, initial principal amount | Â | 9.728182 | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | |||
Junior subordinated amortizing note, bearing interest | Â | 9.50% | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | |||
Junior subordinated amortizing note, scheduled final installment payment date | Dec. 15, 2013 | |||||||||||||||
Quarterly installments on amortizing note | 0.989583 | (0.9375) | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | |||
Extended installment period on amortizing note | Dec. 15, 2015 | |||||||||||||||
Non-cumulative perpetual convertible preferred stock, issued | Â | 50,000 | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | |||
Preferred stock, liquidation value | Â | Â | Â | Â | Â | Â | Â | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | |||
Liquidation of preference shares, private transactions | Â | 50,000,000 | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | |||
Preferred stock, dividend rate, percentage | Â | 8.00% | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | |||
Preferred Stock is convertible into common stock, option of holder at a conversion rate | Â | $ 38.88 | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | |||
Treasury issued under capital purchase program | Â | $ 250,000,000 | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | |||
Cumulative perpetual convertible preferred stock, issued | Â | 250,000 | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | |||
Warrant to purchase of shares | Â | 1,643,295 | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | |||
Exercise price of common stock | Â | $ 22.82 | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | |||
Warrant termination period | Â | 10 | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | |||
Preferred stock, cumulative dividend at a coupon rate | Â | 5.00% | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | |||
Warrants holders common stock purchase price per share | Â | $ 30.50 | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | |||
Warrants outstanding | Â | 19,000 | Â | 19,000 | Â | Â | Â | Â | Â | Â | Â | Â | Â | |||
Warrants expiration date | Feb. 01, 2013 | |||||||||||||||
|
Loans (Estimated Details On Loans Acquisition) (Details) (USD $)
In Thousands |
Jun. 30, 2011
|
|||
---|---|---|---|---|
The Bank Of Commerce [Member]
|
 | |||
Contractually required payments including interest | $ 127,122 | |||
Less: Nonaccretable difference | 56,257 | |||
Cash flows expected to be collected | 70,865 | [1] | ||
Less: Accretable yield | 4,414 | |||
Fair value of loans acquired with evidence of credit quality deterioration since origination | 66,451 | |||
Community First Bank - Chicago [Member]
|
 | |||
Contractually required payments including interest | 22,178 | |||
Less: Nonaccretable difference | 6,313 | |||
Cash flows expected to be collected | 15,865 | [1] | ||
Less: Accretable yield | 688 | |||
Fair value of loans acquired with evidence of credit quality deterioration since origination | $ 15,177 | |||
|
Consolidated Statements of Condition (Parenthetical) (USD $)
In Thousands, except Share data |
Jun. 30, 2011
|
Dec. 31, 2010
|
Jun. 30, 2010
|
---|---|---|---|
Interest-bearing deposits with banks, restricted for securitization investors | $ 23,276 | $ 36,620 | $ 83,501 |
Net loans, restricted for securitization investors | $ 660,294 | $ 646,268 | $ 598,857 |
Preferred stock, no par value | |||
Preferred stock, shares authorized | 20,000,000 | 20,000,000 | 20,000,000 |
Common stock, no par value | |||
Common stock, stated value | $ 1 | $ 1 | $ 1 |
Common stock, shares authorized | 60,000,000 | 60,000,000 | 60,000,000 |
Common stock, shares issued | 34,988,497 | 34,864,068 | 31,084,417 |
Treasury stock, shares | 1,441 | 0 | 119 |
Series A Preferred Stock [Member]
|
 |  |  |
Preferred stock, liquidation value | $ 1,000 | $ 1,000 | $ 1,000 |
Preferred stock, shares issued | 50,000 | 50,000 | 50,000 |
Preferred stock, shares outstanding | 50,000 | 50,000 | 50,000 |
Series B Preferred Stock [Member]
|
 |  |  |
Preferred stock, liquidation value | $ 1,000 | $ 1,000 | $ 1,000 |
Preferred stock, shares issued | 0 | 0 | 250,000 |
Preferred stock, shares outstanding | 0 | 0 | 250,000 |
Derivatives Financial Instruments (Schedule Of Interest Rate Swaps) (Details) (USD $)
In Thousands |
Jun. 30, 2011
|
|||
---|---|---|---|---|
Notional Amount | $ 310,000 | |||
Fair Value Gain (Loss) | (10,008) | |||
Cash Flow [Member] | Total Interest Rate Caps [Member]
|
 | |||
Notional Amount | 60,000 | |||
Fair Value Gain (Loss) | 547 | |||
Cash Flow [Member] | Total Interest Rate Swap [Member]
|
 | |||
Notional Amount | 250,000 | |||
Fair Value Gain (Loss) | (10,555) | |||
Cash Flow [Member] | Interest Rate Swap 1 [Member]
|
 | |||
Notional Amount | 20,000 | |||
Fair Value Gain (Loss) | (252) | |||
Cash Flow [Member] | Interest Rate Swap 2 [Member]
|
 | |||
Notional Amount | 40,000 | |||
Fair Value Gain (Loss) | (506) | |||
Cash Flow [Member] | Interest Rate Swap 3 [Member]
|
 | |||
Notional Amount | 25,000 | |||
Fair Value Gain (Loss) | (230) | |||
Cash Flow [Member] | Interest Rate Swap 4 [Member]
|
 | |||
Notional Amount | 50,000 | |||
Fair Value Gain (Loss) | (5,019) | |||
Cash Flow [Member] | Interest Rate Swap 5 [Member]
|
 | |||
Notional Amount | 40,000 | |||
Fair Value Gain (Loss) | (4,072) | |||
Cash Flow [Member] | Interest Rate Swap 6 [Member]
|
 | |||
Notional Amount | 50,000 | [1] | ||
Fair Value Gain (Loss) | (330) | [1] | ||
Cash Flow [Member] | Interest Rate Swap 7 [Member]
|
 | |||
Notional Amount | 25,000 | [1] | ||
Fair Value Gain (Loss) | (146) | [1] | ||
Interest Rate Caps 1 [Member]
|
 | |||
Notional Amount | 20,000 | [1] | ||
Fair Value Gain (Loss) | 182 | [1] | ||
Interest Rate Caps 2 [Member]
|
 | |||
Notional Amount | 40,000 | [1] | ||
Fair Value Gain (Loss) | $ 365 | [1] | ||
|
Allowance For Loan Losses, Allowance For Losses On Lending-Related Commitments And Impaired Loans (Summary Of Recorded Investment Based On Performance Of Loans By Class, Excluding Covered Loans) (Details) (USD $)
In Thousands |
Jun. 30, 2011
|
Dec. 31, 2010
|
Jun. 30, 2010
|
---|---|---|---|
Loans, net of unearned income, excluding covered loans | $ 9,925,077 | $ 9,599,886 | $ 9,324,163 |
Commercial Loans [Member] | Commercial and Industrial [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 1,362,662 | 1,310,753 | 1,230,502 |
Commercial Loans [Member] | Commercial and Industrial [Member] | Performing Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 1,340,373 | 1,294,353 | 1,213,947 |
Commercial Loans [Member] | Commercial and Industrial [Member] | Nonperforming Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 22,289 | 16,400 | 16,555 |
Commercial Loans [Member] | Franchise [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 114,134 | 119,488 | 138,687 |
Commercial Loans [Member] | Franchise [Member] | Performing Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 112,342 | 119,488 | 138,687 |
Commercial Loans [Member] | Franchise [Member] | Nonperforming Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 1,792 | Â | Â |
Commercial Loans [Member] | Mortgage Warehouse Lines of Credit [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 68,477 | 131,306 | 118,823 |
Commercial Loans [Member] | Mortgage Warehouse Lines of Credit [Member] | Performing Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 68,477 | 131,306 | 118,823 |
Commercial Loans [Member] | Community Advanatage - Homeowners Association [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 73,929 | 75,542 | 62,452 |
Commercial Loans [Member] | Community Advanatage - Homeowners Association [Member] | Performing Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 73,929 | 75,542 | 62,452 |
Commercial Loans [Member] | Aircraft [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 21,231 | 24,618 | 38,574 |
Commercial Loans [Member] | Aircraft [Member] | Performing Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 21,231 | 24,618 | 38,574 |
Commercial Loans [Member] | Asset-Based Lending [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 366,096 | 288,979 | 180,486 |
Commercial Loans [Member] | Asset-Based Lending [Member] | Performing Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 364,009 | 288,562 | 179,267 |
Commercial Loans [Member] | Asset-Based Lending [Member] | Nonperforming Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 2,087 | 417 | 1,219 |
Commercial Loans [Member] | Municipal [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 63,296 | 56,343 | 35,797 |
Commercial Loans [Member] | Municipal [Member] | Performing Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 63,296 | 56,343 | 35,797 |
Commercial Loans [Member] | Leases [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 62,535 | 41,541 | 22,295 |
Commercial Loans [Member] | Leases [Member] | Performing Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 62,535 | 41,498 | 22,229 |
Commercial Loans [Member] | Leases [Member] | Nonperforming Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | Â | 43 | 66 |
Commercial Loans [Member] | Other [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 76 | 756 | 2 |
Commercial Loans [Member] | Other [Member] | Performing Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 76 | 756 | 2 |
Commercial Real-Estate Loans [Member] | Residential Construction [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 90,755 | 95,947 | 129,462 |
Commercial Real-Estate Loans [Member] | Residential Construction [Member] | Performing Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 87,744 | 85,937 | 113,994 |
Commercial Real-Estate Loans [Member] | Residential Construction [Member] | Nonperforming Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 3,011 | 10,010 | 15,468 |
Commercial Real-Estate Loans [Member] | Commercial Construction [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 137,647 | 131,672 | 188,176 |
Commercial Real-Estate Loans [Member] | Commercial Construction [Member] | Performing Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 135,194 | 129,852 | 182,036 |
Commercial Real-Estate Loans [Member] | Commercial Construction [Member] | Nonperforming Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 2,453 | 1,820 | 6,140 |
Commercial Real-Estate Loans [Member] | Land [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 212,934 | 260,189 | 269,556 |
Commercial Real-Estate Loans [Member] | Land [Member] | Performing Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 178,954 | 222,587 | 247,857 |
Commercial Real-Estate Loans [Member] | Land [Member] | Nonperforming Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 33,980 | 37,602 | 21,699 |
Commercial Real-Estate Loans [Member] | Office [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 532,382 | 535,331 | 535,541 |
Commercial Real-Estate Loans [Member] | Office [Member] | Performing Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 514,879 | 522,613 | 531,356 |
Commercial Real-Estate Loans [Member] | Office [Member] | Nonperforming Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 17,503 | 12,718 | 4,185 |
Commercial Real-Estate Loans [Member] | Industrial [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 514,534 | 500,301 | 472,715 |
Commercial Real-Estate Loans [Member] | Industrial [Member] | Performing Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 512,064 | 496,821 | 467,175 |
Commercial Real-Estate Loans [Member] | Industrial [Member] | Nonperforming Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 2,470 | 3,480 | 5,540 |
Commercial Real-Estate Loans [Member] | Retail [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 524,788 | 510,527 | 484,537 |
Commercial Real-Estate Loans [Member] | Retail [Member] | Performing Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 516,624 | 507,262 | 479,363 |
Commercial Real-Estate Loans [Member] | Retail [Member] | Nonperforming Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 8,164 | 3,265 | 5,174 |
Commercial Real-Estate Loans [Member] | Multi-Family [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 316,151 | 290,954 | 276,881 |
Commercial Real-Estate Loans [Member] | Multi-Family [Member] | Performing Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 311,204 | 286,160 | 265,807 |
Commercial Real-Estate Loans [Member] | Multi-Family [Member] | Nonperforming Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 4,947 | 4,794 | 11,074 |
Commercial Real-Estate Loans [Member] | Mixed Use and Other [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 1,045,477 | 1,013,086 | 990,955 |
Commercial Real-Estate Loans [Member] | Mixed Use and Other [Member] | Performing Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 1,028,212 | 992,812 | 975,003 |
Commercial Real-Estate Loans [Member] | Mixed Use and Other [Member] | Nonperforming Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 17,265 | 20,274 | 15,952 |
Commercial Loans [Member] | Performing Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 2,106,268 | 2,032,466 | 1,809,778 |
Commercial Real-Estate Loans [Member] | Performing Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 3,284,875 | 3,244,044 | 3,262,591 |
Home Equity [Member] | Performing Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 864,849 | 906,987 | 915,156 |
Residential Real Estate [Member] | Performing Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 322,002 | 347,251 | 328,237 |
Commercial Insurance [Member] | Performing Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 1,414,681 | 1,248,817 | 1,329,246 |
Life Insurance [Member] | Performing Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 965,935 | 826,119 | 588,465 |
Indirect Consumer [Member] | Performing Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 57,345 | 50,638 | 67,994 |
Consumer and Other [Member] | Performing Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 100,311 | 106,019 | 99,026 |
Purchased Life Insurance [Member] | Performing Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 652,739 | 695,413 | 788,269 |
Performing Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 9,769,005 | 9,457,754 | 9,188,762 |
Commercial Loans [Member] | Nonperforming Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 26,168 | 16,860 | 17,840 |
Commercial Real-Estate Loans [Member] | Nonperforming Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 89,793 | 93,963 | 85,232 |
Home Equity [Member] | Nonperforming Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 15,853 | 7,425 | 7,149 |
Residential Real Estate [Member] | Nonperforming Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 7,379 | 6,085 | 4,436 |
Commercial Insurance [Member] | Nonperforming Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 14,755 | 16,683 | 17,739 |
Life Insurance [Member] | Nonperforming Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 994 | 180 | 1,923 |
Indirect Consumer [Member] | Nonperforming Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 373 | 509 | 1,017 |
Consumer and Other [Member] | Nonperforming Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 757 | 253 | 65 |
Purchased Life Insurance [Member] | Nonperforming Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | Â | 174 | Â |
Nonperforming Financing Receivable [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 156,072 | 142,132 | 135,401 |
Commercial Loans [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 2,132,436 | 2,049,326 | 1,827,618 |
Commercial Real-Estate Loans [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 3,374,668 | 3,338,007 | 3,347,823 |
Home Equity [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 880,702 | 914,412 | 922,305 |
Residential Real Estate [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 329,381 | 353,336 | 332,673 |
Commercial Insurance [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 1,429,436 | 1,265,500 | 1,346,985 |
Life Insurance [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 966,929 | 826,299 | 590,388 |
Purchased Life Insurance [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 652,739 | 695,587 | 788,269 |
Indirect Consumer [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | 57,718 | 51,147 | 69,011 |
Consumer and Other [Member]
|
 |  |  |
Loans, net of unearned income, excluding covered loans | $ 101,068 | $ 106,272 | $ 99,091 |
Shareholders' Equity And Earnings Per Share (Market Value Of Company Common Stock And Settlement Rate) (Details) (USD $)
|
6 Months Ended |
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Jun. 30, 2011
|
|
Market Value of Common Stock Less than or Equal to 30 Dollars [Member]
|
 |
Settlement Rate | $ 1.6666 |
Market Value of Common Stock Greater than 30 Dollars but Less than Thirty 37.50 Dollars [Member]
|
 |
Settlement Rate, Market Value | 50.00 |
Market Value of Common Stock Greater than or equal to 37.50 Dollars [Member]
|
 |
Settlement Rate | $ 1.3333 |
Shareholders' Equity And Earnings Per Share
|
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Jun. 30, 2011
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Shareholders' Equity And Earnings Per Share | Â | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' Equity And Earnings Per Share | (17) Shareholders' Equity and Earnings Per Share Common Stock Offering In March 2010, the Company issued through a public offering a total of 6.7 million shares of its common stock at $33.25 per share. Net proceeds to the Company totaled $210.3 million. Additionally, in December 2010, the Company issued through a public offering a total of 3.7 million shares of common stock at $30.00 per share. Net proceeds to the Company totaled $104.8 million. Tangible Equity Units In December 2010, the Company sold 4.6 million 7.50% tangible equity units ("TEU") at a public offering price of $50.00 per unit. The Company received net proceeds of $222.7 million after deducting underwriting discounts and commissions and estimated offering expenses. Each tangible equity unit is composed of a prepaid common stock purchase contract and a junior subordinated amortizing note due December 15, 2013. The prepaid stock purchase contracts have been recorded as surplus (a component of shareholders' equity), net of issuance costs, and the junior subordinated amortizing notes have been recorded as debt within other borrowings. Issuance costs associated with the debt component are recorded as a discount within other borrowings and will be amortized over the term of the instrument to December 15, 2013. The Company allocated the proceeds from the issuance of the TEU to equity and debt based on the relative fair values of the respective components of each unit. The aggregate fair values assigned to each component of the TEU offering are as follows:
The fair value of the debt component was determined using a discounted cash flow model using the following assumptions: (1) quarterly cash payments of 7.5%; (2) a maturity date of December 15, 2013; and (3) an assumed discount rate of 9.5%. The discount rate used for estimating the fair value was determined by obtaining yields for comparably-rated issuers trading in the market. The debt component was recorded at fair value, and the discount is being amortized using the level yield method over the term of the instrument to the settlement date of December 15, 2013. The fair value of the equity component was determined using Black-Scholes valuation models applied to the range of stock prices contemplated by the terms of the TEU and using the following assumptions: (1) risk-free interest rate of 0.95%; (2) expected stock price volatility in the range of 35%-45%; (c) dividend yield plus stock borrow cost of 0.85%; and (4) term of 3.02 years. Each junior subordinated amortizing note, which had an initial principal amount of $9.728182, is bearing interest at 9.50% per annum, and has a scheduled final installment payment date of December 15, 2013. On each March 15, June 15, September 15 and December 15, the Company will pay equal quarterly installments of $0.9375 on each amortizing note. The quarterly installment payable at March 15, 2011, however, was $0.989583. Each payment will constitute a payment of interest and a partial repayment of principal. The Company may defer installment payments at any time and from time to time, under certain circumstances and subject to certain conditions, by extending the installment period so long as such period of time does not extend beyond December 15, 2015. Each prepaid common stock purchase contract will automatically settle on December 15, 2013 and the Company will deliver not more than 1.6666 shares and not less than 1.3333 shares of its common stock based on the applicable market value (the average of the volume weighted average price of Company common stock for the twenty (20) consecutive trading days ending on the third trading day immediately preceding December 15, 2013) as follows:
At any time prior to the third business day immediately preceding December 15, 2013, the holder may settle the purchase contract early and receive 1.3333 shares of Company common stock, subject to anti-dilution adjustments. Upon settlement, an amount equal to $1.00 per common share issued will be reclassified from additional paid-in capital to common stock. Series A Preferred Stock In August 2008, the Company issued and sold 50,000 shares of non-cumulative perpetual convertible preferred stock, Series A, liquidation preference $1,000 per share (the "Series A Preferred Stock") for $50 million in a private transaction. If declared, dividends on the Series A Preferred Stock are payable quarterly in arrears at a rate of 8.00% per annum. The Series A Preferred Stock is convertible into common stock at the option of the holder at a conversion rate of 38.88 shares of common stock per share of Series A Preferred Stock. On and after August 26, 2010, the Series A Preferred Stock are subject to mandatory conversion into common stock in connection with a fundamental transaction, or on and after August 26, 2013 if the closing price of the Company's common stock exceeds a certain amount. Series B Preferred Stock Pursuant to the U.S. Department of the Treasury's (the "U.S. Treasury") Capital Purchase Program, on December 19, 2008, the Company issued to the U.S. Treasury, in exchange for aggregate consideration of $250 million, (i) 250,000 shares of the Company's fixed rate cumulative perpetual preferred Stock, Series B, liquidation preference $1,000 per share (the "Series B Preferred Stock"), and (ii) a warrant to purchase 1,643,295 shares of Wintrust common stock at a per share exercise price of $22.82 and with a term of 10 years. The Series B Preferred Stock paid a cumulative dividend at a coupon rate of 5%. In December 2010, the Company repurchased all 250,000 shares of its Series B Preferred Stock. The Series B Preferred Stock was repurchased at a price of $251.3 million, which included accrued and unpaid dividends of $1.3 million. The repurchase of the Series B Preferred Stock resulted in a non-cash deemed preferred stock dividend that reduced net income applicable to common shares in the fourth quarter of 2010 by approximately $11.4 million. This amount represents the difference between the repurchase price and the carrying amount of the Series B Preferred Stock, or the accelerated accretion of the applicable discount on the preferred shares. In February 2011, the Treasury sold all of its interest in the warrant issued to it in a secondary underwritten public offering.
Other The Company has also issued other warrants to acquire common stock. These warrants entitle the holders to purchase one share of the Company's common stock at a purchase price of $30.50 per share. Warrants outstanding at June 30, 2011 and 2010 totaled 19,000. The expiration date on these remaining outstanding warrants is February 2013. Earnings per Share The following table shows the computation of basic and diluted earnings per share for the periods indicated:
Potentially dilutive common shares can result from stock options, restricted stock unit awards, stock warrants, the Company's convertible preferred stock, tangible equity unit shares and shares to be issued under the Employee Stock Purchase Plan and the Directors Deferred Fee and Stock Plan, being treated as if they had been either exercised or issued, computed by application of the treasury stock method. While potentially dilutive common shares are typically included in the computation of diluted earnings per share, potentially dilutive common shares are excluded from this computation in periods in which the effect would reduce the loss per share or increase the income per share. For diluted earnings per share, net income applicable to common shares can be affected by the conversion of the Company's convertible preferred stock. Where the effect of this conversion would reduce the loss per share or increase the income per share, net income applicable to common shares is adjusted by the associated preferred dividends. |
Stock-Based Compensation Plans (Summary Of Stock Option Activity) (USD $)
In Thousands, except Share data, unless otherwise specified |
6 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2011
|
Jun. 30, 2010
|
|||||||
Stock-Based Compensation Plans | Â | Â | ||||||
Outstanding at beginning of the period | 2,040,701 | 2,156,209 | ||||||
Stock Options, Granted | Â | 57,865 | ||||||
Stock Options, Exercised | (45,233) | (108,451) | ||||||
Stock Options, Forfeited or canceled | (95,049) | (39,236) | ||||||
Outstanding at end of the period | 1,900,419 | 2,066,387 | ||||||
Stock Options, Exercisable | 1,723,012 | 1,789,954 | ||||||
Stock Options, Weighted Average Strike Price, Beginning of the period | $ 38.92 | $ 37.61 | ||||||
Stock Options, Weighted Average Strike Price, Granted | Â | $ 35.05 | ||||||
Stock Options, Weighted Average Strike Price, Exercised | $ 15.66 | $ 16.11 | ||||||
Stock Options, Weighted Average Strike Price, Forfeited or canceled | $ 46.59 | $ 51.48 | ||||||
Stock Options, Weighted Average Strike Price, End of the period | $ 39.09 | $ 38.40 | ||||||
Stock Options, Weighted Average Strike Price, Exercisable | $ 39.86 | $ 38.69 | ||||||
Stock Options, Remaining Contractual Term, End of the Period, years | 2.8 | [1] | 3.6 | [1] | ||||
Stock Options, Remaining Contractual Term, Exercisable, years | 2.6 | [1] | 3.4 | [1] | ||||
Stock Options, Intrinsic Value, End of the Period | $ 6,589 | [2] | $ 9,268 | [2] | ||||
Stock Options, Intrinsic Value, Exercisable | $ 6,099 | [2] | $ 8,566 | [2] | ||||
|
Document And Entity Information
|
6 Months Ended | |
---|---|---|
Jun. 30, 2011
|
Jul. 29, 2011
|
|
Document And Entity Information | Â | Â |
Document Type | 10-Q | Â |
Amendment Flag | false | Â |
Document Period End Date | Jun. 30, 2011 | |
Document Fiscal Period Focus | Q2 | Â |
Document Fiscal Year Focus | 2011 | Â |
Entity Registrant Name | WINTRUST FINANCIAL CORP | Â |
Entity Central Index Key | 0001015328 | Â |
Current Fiscal Year End Date | --12-31 | Â |
Entity Filer Category | Large Accelerated Filer | Â |
Entity Common Stock, Shares Outstanding | Â | 35,536,596 |
Business Combinations (Tables)
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Jun. 30, 2011
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Summary Of Acquisitions |
|
Loans (Narrative) (Details) (USD $)
In Millions |
Jun. 30, 2011
|
Dec. 31, 2010
|
Jun. 30, 2010
|
---|---|---|---|
Loans | Â | Â | Â |
Unearned income on premium finance receivables | $ 37.3 | $ 32.3 | $ 36.9 |
Deferred loan costs and fees net, including fair value purchase accounting adjustments | $ 12.9 | $ 12.5 | $ 11.7 |
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Jun. 30, 2011
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Loans | Â | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | (6) Loans The following table shows the Company's loan portfolio by category as of the dates shown:
Certain premium finance receivables are recorded net of unearned income. The unearned income portions of such premium finance receivables were $37.3 million at June 30, 2011, $32.3 million at December 31, 2010 and $36.9 million at June 30, 2010. Certain life insurance premium finance receivables attributable to the life insurance premium finance loan acquisition in 2009 as well as the covered loans acquired in the FDIC-assisted acquisitions during 2010 and 2011 are recorded net of credit discounts. See "Acquired Loan Information at Acquisition" below. Indirect consumer loans include auto, boat and other indirect consumer loans. Total loans, excluding loans acquired with evidence of credit quality deterioration since origination, include net deferred loan fees and costs and fair value purchase accounting adjustments totaling $12.9 million at June 30, 2011, $12.5 million at December 31, 2010 and $11.7 million at June 30, 2010. The Company's loan portfolio is generally comprised of loans to consumers and small to medium-sized businesses located within the geographic market areas that the Company serves. The premium finance receivables portfolios are made to customers on a national basis and the majority of the indirect consumer loans were generated through a network of local automobile dealers. As a result, the Company strives to maintain a loan portfolio that is diverse in terms of loan type, industry, borrower and geographic concentrations. Such diversification reduces the exposure to economic downturns that may occur in different segments of the economy or in different industries. It is the policy of the Company to review each prospective credit in order to determine the appropriateness and, when required, the adequacy of security or collateral necessary to obtain when making a loan. The type of collateral, when required, will vary from liquid assets to real estate. The Company seeks to ensure access to collateral, in the event of default, through adherence to state lending laws and the Company's credit monitoring procedures. Acquired Loan Information at Acquisition — Loans with evidence of credit quality deterioration since origination As part of our acquisition of a portfolio of life insurance premium finance loans in 2009 as well as the FDIC-assisted bank acquisitions in 2010 and 2011, we acquired loans for which there was evidence of credit quality deterioration since origination and we determined that it was probable that the Company would be unable to collect all contractually required principal and interest payments.
The following table presents the unpaid principal balance and carrying value for these acquired loans:
For the loans acquired as a result of acquisitions during the six months ended June 30, 2011, the following table provides estimated details on these loans at the date of each acquisition:
See Note 7 — Allowance for Loan Losses, Allowance for Losses on Lending-Related Commitments and Impaired Loans for further discussion regarding the allowance for loan losses associated with the covered loan portfolio at June 30, 2011. Accretable Yield Activity The following table provides activity for the accretable yield of loans acquired with evidence of credit quality deterioration since origination:
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Available-For-Sale Securities (Tables)
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Jun. 30, 2011
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Available-For-Sale Securities | Â | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of The Available-For-Sale Securities Portfolio |
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Schedule Of Available-For-Sale Securities Portfolio Continuous Unrealized Loss Position |
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Schedule Of Available-For-Sale Investment Securities Gross Gains And Gross Losses Realized |
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Contractual Maturities of Available-For-Sale Securities |
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Available-For-Sale Securities (Summary Of The Available-For-Sale Securities Portfolio) (Details) (USD $)
In Thousands |
Jun. 30, 2011
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Dec. 31, 2010
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Jun. 30, 2010
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---|---|---|---|
Amortized Cost | $ 1,439,281 | $ 1,491,913 | Â |
Gross unrealized gains | 22,792 | 17,025 | Â |
Gross unrealized losses | (5,647) | (12,636) | Â |
Available-for-sale securities | 1,456,426 | 1,496,302 | 1,418,035 |
US Treasury [Member]
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 |  |  |
Amortized Cost | 104,300 | 104,418 | Â |
Gross unrealized gains | 3 | Â | Â |
Gross unrealized losses | (3,566) | (8,321) | Â |
Available-for-sale securities | 100,737 | 96,097 | Â |
US Government Agencies [Member]
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 |  |  |
Amortized Cost | 679,261 | 882,095 | Â |
Gross unrealized gains | 4,445 | 2,682 | Â |
Gross unrealized losses | (16) | (722) | Â |
Available-for-sale securities | 683,690 | 884,055 | Â |
Municipal Securities [Member]
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 |  |  |
Amortized Cost | 48,710 | 51,493 | Â |
Gross unrealized gains | 775 | 896 | Â |
Gross unrealized losses | (28) | (86) | Â |
Available-for-sale securities | 49,457 | 52,303 | Â |
Corporate Notes and Other, Financial Issuers [Member]
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 |  |  |
Amortized Cost | 165,908 | 186,931 | Â |
Gross unrealized gains | 3,348 | 3,048 | Â |
Gross unrealized losses | (1,988) | (2,972) | Â |
Available-for-sale securities | 167,268 | 187,007 | Â |
Corporate Notes And Other, Other [Member]
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 |  |  |
Amortized Cost | 46,549 | 74,629 | Â |
Gross unrealized gains | 456 | 330 | Â |
Gross unrealized losses | (21) | (51) | Â |
Available-for-sale securities | 46,984 | 74,908 | Â |
Agency [Member]
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 |  |  |
Amortized Cost | 351,246 | 148,693 | Â |
Gross unrealized gains | 13,706 | 9,963 | Â |
Gross unrealized losses | Â | (3) | Â |
Available-for-sale securities | 364,952 | 158,653 | Â |
Non Agency CMOs [Member]
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 |  |  |
Amortized Cost | 362 | 3,018 | Â |
Gross unrealized gains | 9 | 10 | Â |
Available-for-sale securities | 371 | 3,028 | Â |
Other Equity Securities [Member]
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 |  |  |
Amortized Cost | 42,945 | 40,636 | Â |
Gross unrealized gains | 50 | 96 | Â |
Gross unrealized losses | (28) | (481) | Â |
Available-for-sale securities | $ 42,967 | $ 40,251 | Â |
Stock-Based Compensation Plans (Tables)
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Jun. 30, 2011
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Stock-Based Compensation Plans | Â | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Option Pricing Assumptions |
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Summary Of Stock Option Activity |
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Summary Of Vested and Unvested RSU |
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Recent Accounting Developments (Policy)
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6 Months Ended |
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Jun. 30, 2011
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Recent Accounting Developments | Â |
Presentation of Comprehensive Income | Presentation of Comprehensive Income In June 2011, the FASB issued ASU No. 2011-05, "Comprehensive Income (Topic 220): Presentation of Comprehensive Income," which amends the presentation formats permitted for reporting other comprehensive income. This ASU no longer allows other comprehensive income to be presented as part of the statement of changes in stockholder's equity. Entities must present other comprehensive income and its components in a single statement along with net income or in a separate, consecutive statement of other comprehensive income. This guidance is effective for fiscal and interim periods beginning after December 15, 2011. Other than changing the format of the comprehensive income disclosure, the Company does not expect adoption of this new guidance to have a material impact on our consolidated financial statements. |
Amended Guidance for Fair Value Measurement and Disclosure | Amended Guidance for Fair Value Measurement and Disclosure In May 2011, the FASB issued ASU No. 2011-04, "Fair Value Measurements (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS," which amends the language used to describe U.S. GAAP requirements for measuring fair value and for disclosing information about fair value measurements. The amended language seeks to clarify the application of existing guidance as well as change the measurement and disclosure of a few specific items. The principles changed include measurement of financial instruments that are managed within a portfolio and application of premiums and discounts in fair value measurement. The new guidance will also require additional disclosures including expanded disclosures for measurements categorized within level three, disclosures for nonfinancial assets at fair value and disclosure displaying the fair value hierarchy by level for items in the statement of financial position that are not measured at fair value but for which a fair value is required to be disclosed. The guidance is effective during interim and annual periods beginning after December 15, 2011. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements. |
Changes to the Effective Control Assessment in Accounting for Transfers | Changes to the Effective Control Assessment in Accounting for Transfers In April 2011, the FASB issued ASU No. 2011-03, "Transfers and Servicing (Topic 860); Reconsideration of Effective Control for Repurchase Agreements," which amends the criteria used to determine when an entity may or may not recognize a sale upon the transfer of financial assets subject to repurchase agreements. The changes presented in this ASU are intended to improve the accounting for these transactions by removing the criterion requiring the transferor to have the ability to repurchase or redeem the transferred financial assets from the assessment of effective control. The guidance in this update is effective for the first interim or annual period beginning on or after December 15, 2011 and should be applied prospectively. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements. |
Credit Quality Disclosures Of Financing Receivables And Allowance For Credit Losses | Credit Quality Disclosures of Financing Receivables and Allowance for Credit Losses In July 2010, the FASB issued ASU No. 2010-20, "Receivables (Topic 310): Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses," which required more information in disclosures related to the credit quality of financing receivables and the credit reserves held against them. This guidance required the Company to provide a greater level of disaggregated information about the credit quality of the Company's loans and the allowance for loan losses as well as to disclose additional information related to credit quality indicators, past due information, and impaired loans. This ASU also included disclosure requirements for information related to loans modified in a troubled debt restructuring, however these disclosures were deferred in January 2011 upon FASB's issuance of ASU No. 2011-01 "Receivables (Topic 310): Deferral of the Effective Date of Disclosures about Troubled Debt Restructurings in update No. 2010-20" to become effective for reporting periods beginning on or after June 15, 2011. All other provisions of ASU 2010-20, except for the summary of activity in the allowance for credit losses by loan portfolio, were effective for the Company's reporting period ending on or after December 15, 2010. Although not required, the Company disclosed the summary of activity in the allowance for credit losses for the year ending December 31, 2010. Additional credit quality disclosures are included in our consolidated financial statements to provide disaggregated information with respect to the Company's loan portfolio and the allowance for loan losses. Other than requiring additional disclosures, the adoption of this new guidance did not have a material impact on our consolidated financial statements. See Item 2 — Loan Portfolio and Asset Quality for further detail. |
Determination Of A Troubled Debt Restructuring | Determination of a Troubled Debt Restructuring
In April 2011, the FASB issued ASU No. 2011-02, "Receivables (Topic 310): A Creditor's Determination of Whether a Restructuring is a Troubled Debt Restructuring," which sought to clarify guidance used to evaluate troubled debt restructurings resulting in consistent application of U.S. GAAP. The update provided guidance to evaluate what is considered to be an economic concession as well as circumstances which indicate that a debtor is experiencing financial difficulties. The effective periods for application of the amendments in this update were interim and annual periods beginning on or after June 15, 2011, and should be applied retrospectively to the beginning of the annual period of adoption. The Company does not expect adoption of this new guidance to significantly change the Company's troubled debt restructuring determination process or have a material impact on its consolidated financial statements. |
Notes Payable, Federal Home Loan Bank Advances, Other Borrowings, Secured Borrowings And Subordinated Notes
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Jun. 30, 2011
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Notes Payable, Federal Home Loan Bank Advances, Other Borrowings, Secured Borrowings And Subordinated Notes | Â | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes Payable, Federal Home Loan Bank Advances, Other Borrowings, Secured Borrowings and Subordinated Notes | (11) Notes Payable, Federal Home Loan Bank Advances, Other Borrowings, Secured Borrowings and Subordinated Notes The following table is a summary of notes payable, Federal Home Loan Bank advances, other borrowings, secured borrowings and subordinated notes as of the dates shown:
At June 30, 2011, the Company had notes payable with a $1.0 million outstanding balance, with an interest rate of 4.50%, under a $51.0 million loan agreement ("Agreement") with unaffiliated banks. The Agreement consists of a $50.0 million revolving note, maturing on October 28, 2011, and a $1.0 million note maturing on June 1, 2015. At June 30, 2011, there was no outstanding balance on the $50.0 million revolving note. Borrowings under the Agreement that are considered "Base Rate Loans" will bear interest at a rate equal to the higher of (1) 450 basis points and (2) for the applicable period, the highest of (a) the federal funds rate plus 100 basis points, (b) the lender's prime rate plus 50 basis points, and (c) the Eurodollar Rate (as defined below) that would be applicable for an interest period of one month plus 150 basis points. Borrowings under the Agreement that are considered "Eurodollar Rate Loans" will bear interest at a rate equal to the higher of (1) the British Bankers Association's LIBOR rate for the applicable period plus 350 basis points (the "Eurodollar Rate") and (2) 450 basis points. Commencing August 2009, a commitment fee is payable quarterly equal to 0.50% of the actual daily amount by which the lenders' commitment under the revolving note exceeds the amount outstanding under such facility. The Agreement is secured by the stock of some of the banks and contains several restrictive covenants, including the maintenance of various capital adequacy levels, asset quality and profitability ratios, and certain restrictions on dividends and other indebtedness. At June 30, 2011, the Company was in compliance with all debt covenants. The Agreement is available to be utilized, as needed, to provide capital to fund continued growth at the Company's banks and to serve as an interim source of funds for acquisitions, common stock repurchases or other general corporate purposes. Federal Home Loan Bank advances consist of fixed rate obligations of the banks and are collateralized by qualifying residential real estate and home equity loans and certain securities. FHLB advances are stated at par value of the debt adjusted for unamortized fair value adjustments recorded in connection with advances acquired through acquisitions. The Company did not restructure any FHLB advances in 2011, but restructured $146 million of FHLB advances, paying $6.8 million in prepayment fees, in the second quarter of 2010. Total restructurings in 2010 were $220.0 million, requiring $10.1 million in prepayment fees. These prepayment fees are classified in other assets on the Consolidated Statements of Condition and are amortized as an adjustment to interest expense using the effective interest method. The restructurings in 2010 were done in order to achieve lower interest rates and extend maturities. At June 30, 2011 securities sold under repurchase agreements represent $77.3 million of customer balances in sweep accounts in connection with master repurchase agreements at the banks and $318.4 million of short-term borrowings from brokers. Securities pledged for customer balances in sweep accounts are maintained under the Company's control and consist of U.S. Government agency, mortgage-backed and corporate securities. These securities are included in the available-for-sale securities portfolio as reflected on the Company's Consolidated Statements of Condition. Other borrowings at June 30, 2011 represent the junior subordinated amortizing notes issued by the Company in connection with the issuance of the Tangible Equity Units (TEUs) in December 2010. These junior subordinated notes were recorded at their initial principal balance of $44.7 million, net of issuance costs. These notes have a stated interest rate of 9.5% and require quarterly principal and interest payments of $4.3 million, with an initial payment of $4.6 million that was paid on March 15, 2011. The issuance costs are being amortized to interest expense using the effective-interest method. The scheduled final installment payment on the notes is December 15, 2013, subject to extension. See Note 17 — Shareholders' Equity and Earnings Per Share for further discussion of the TEUs. During the third quarter of 2009, the Company entered into an off-balance sheet securitization transaction sponsored by FIFC. In connection with the securitization, premium finance receivables—commercial were transferred to FIFC Premium Funding, LLC, a qualifying special purpose entity (the "QSPE"). The QSPE issued $600 million Class A notes that bear an annual interest rate of one-month LIBOR plus 1.45% (the "Notes") and have an expected average term of 2.93 years with any unpaid balance due and payable in full on February 17, 2014. At the time of issuance, the Notes were eligible collateral under TALF. These notes are reflected on the Company's Consolidated Statements of Condition as secured borrowings owed to securitization investors. See Note 8 — Loan Securitization, for more information on the QSPE. The subordinated notes represent three notes, issued in October 2002, April 2003 and October 2005 (funded in May 2006). The balances of the notes as of June 30, 2011 were $10.0 million, $10.0 million and $20.0 million, respectively. Each subordinated note requires annual principal payments of $5.0 million beginning in the sixth year, with final maturities in the tenth year. The Company may redeem the subordinated notes at any time prior to maturity. Interest on each note is calculated at a rate equal to three-month LIBOR plus 130 basis points. |
Recent Accounting Developments
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Jun. 30, 2011
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Recent Accounting Developments | Â |
Recent Accounting Developments | (2) Recent Accounting Developments Presentation of Comprehensive Income In June 2011, the FASB issued ASU No. 2011-05, "Comprehensive Income (Topic 220): Presentation of Comprehensive Income," which amends the presentation formats permitted for reporting other comprehensive income. This ASU no longer allows other comprehensive income to be presented as part of the statement of changes in stockholder's equity. Entities must present other comprehensive income and its components in a single statement along with net income or in a separate, consecutive statement of other comprehensive income. This guidance is effective for fiscal and interim periods beginning after December 15, 2011. Other than changing the format of the comprehensive income disclosure, the Company does not expect adoption of this new guidance to have a material impact on our consolidated financial statements. Amended Guidance for Fair Value Measurement and Disclosure In May 2011, the FASB issued ASU No. 2011-04, "Fair Value Measurements (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS," which amends the language used to describe U.S. GAAP requirements for measuring fair value and for disclosing information about fair value measurements. The amended language seeks to clarify the application of existing guidance as well as change the measurement and disclosure of a few specific items. The principles changed include measurement of financial instruments that are managed within a portfolio and application of premiums and discounts in fair value measurement. The new guidance will also require additional disclosures including expanded disclosures for measurements categorized within level three, disclosures for nonfinancial assets at fair value and disclosure displaying the fair value hierarchy by level for items in the statement of financial position that are not measured at fair value but for which a fair value is required to be disclosed. The guidance is effective during interim and annual periods beginning after December 15, 2011. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements. Changes to the Effective Control Assessment in Accounting for Transfers In April 2011, the FASB issued ASU No. 2011-03, "Transfers and Servicing (Topic 860); Reconsideration of Effective Control for Repurchase Agreements," which amends the criteria used to determine when an entity may or may not recognize a sale upon the transfer of financial assets subject to repurchase agreements. The changes presented in this ASU are intended to improve the accounting for these transactions by removing the criterion requiring the transferor to have the ability to repurchase or redeem the transferred financial assets from the assessment of effective control. The guidance in this update is effective for the first interim or annual period beginning on or after December 15, 2011 and should be applied prospectively. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements. Credit Quality Disclosures of Financing Receivables and Allowance for Credit Losses In July 2010, the FASB issued ASU No. 2010-20, "Receivables (Topic 310): Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses," which required more information in disclosures related to the credit quality of financing receivables and the credit reserves held against them. This guidance required the Company to provide a greater level of disaggregated information about the credit quality of the Company's loans and the allowance for loan losses as well as to disclose additional information related to credit quality indicators, past due information, and impaired loans. This ASU also included disclosure requirements for information related to loans modified in a troubled debt restructuring, however these disclosures were deferred in January 2011 upon FASB's issuance of ASU No. 2011-01 "Receivables (Topic 310): Deferral of the Effective Date of Disclosures about Troubled Debt Restructurings in update No. 2010-20" to become effective for reporting periods beginning on or after June 15, 2011. All other provisions of ASU 2010-20, except for the summary of activity in the allowance for credit losses by loan portfolio, were effective for the Company's reporting period ending on or after December 15, 2010. Although not required, the Company disclosed the summary of activity in the allowance for credit losses for the year ending December 31, 2010. Additional credit quality disclosures are included in our consolidated financial statements to provide disaggregated information with respect to the Company's loan portfolio and the allowance for loan losses. Other than requiring additional disclosures, the adoption of this new guidance did not have a material impact on our consolidated financial statements. See Item 2 — Loan Portfolio and Asset Quality for further detail. Determination of a Troubled Debt Restructuring
In April 2011, the FASB issued ASU No. 2011-02, "Receivables (Topic 310): A Creditor's Determination of Whether a Restructuring is a Troubled Debt Restructuring," which sought to clarify guidance used to evaluate troubled debt restructurings resulting in consistent application of U.S. GAAP. The update provided guidance to evaluate what is considered to be an economic concession as well as circumstances which indicate that a debtor is experiencing financial difficulties. The effective periods for application of the amendments in this update were interim and annual periods beginning on or after June 15, 2011, and should be applied retrospectively to the beginning of the annual period of adoption. The Company does not expect adoption of this new guidance to significantly change the Company's troubled debt restructuring determination process or have a material impact on its consolidated financial statements.
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Segment Information (Tables)
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Summary Of Certain Operating Information For Reportable Segments |
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Loan Securitization
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Loan Securitization | (8) Loan Securitization During the third quarter of 2009, the Company entered into a revolving period securitization transaction sponsored by FIFC. In connection with the securitization, premium finance receivables — commercial were transferred to FIFC Premium Funding, LLC (the "securitization entity"). Provided that certain coverage test criteria continue to be met, principal collections on loans in the securitization entity are used to subsequently acquire and transfer additional loans into the securitization entity during the stated revolving period. Additionally, upon the occurrence of certain events established in the representations and warranties, FIFC may be required to repurchase ineligible loans that were transferred to the entity. The Company's primary continuing involvement includes servicing the loans, retaining an undivided interest (the "seller's interest") in the loans, and holding certain retained interests. Instruments issued by the securitization entity included $600 million Class A notes that bear an annual interest rate of one-month LIBOR plus 1.45% (the "Notes") and have an expected average term of 2.93 years with any unpaid balance due and payable in full on February 17, 2014. At the time of issuance, the Notes were eligible collateral under the Federal Reserve Bank of New York's Term Asset-Backed Securities Loan Facility ("TALF"). Class B and Class C notes ("Subordinated securities"), which are recorded in the form of zero coupon bonds, were also issued and were retained by the Company. This securitization transaction is accounted for as a secured borrowing and the securitization entity is treated as a consolidated subsidiary of the Company under ASC 810, "Consolidation". The securitization entity's receivables underlying third-party investors' interests are recorded in loans, net of unearned income, excluding covered loans, an allowance for loan losses was established and the related debt issued is reported in secured borrowings — owed to securitization investors. Additionally, the Company's retained interests in the transaction, principally consisting of subordinated securities, cash collateral, and overcollateralization of loans, constitute intercompany positions, which are eliminated in the preparation of the Company's Consolidated Statements of Condition. Upon transfer of premium finance receivables — commercial to the securitization entity, the receivables and certain cash flows derived from them become restricted for use in meeting obligations to the securitization entity's creditors. The securitization entity has ownership of interest-bearing deposit balances that also have restrictions, the amounts of which are reported in interest-bearing deposits with other banks. Investment of the interest-bearing deposit balances is limited to investments that are permitted under the governing documents of the transaction. With the exception of the seller's interest in the transferred receivables, the Company's interests in the securitization entity's assets are generally subordinate to the interests of third-party investors and, as such, may not be realized by the Company if needed to absorb deficiencies in cash flows that are allocated to the investors in the securitization entity's debt.
The carrying values and classification of the restricted assets and liabilities relating to the securitization activities are shown in the table below.
The assets of the consolidated securitization entity are subject to credit, payment and interest rate risks on the transferred premium finance receivables—commercial. To protect investors, the securitization structure includes certain features that could result in earlier-than-expected repayment of the securities. Investors are allocated cash flows derived from activities related to the accounts comprising the securitized pool of receivables, the amounts of which reflect finance charges collected net of agent fees, certain fee assessments, and recoveries on charged-off accounts. From these cash flows, investors are reimbursed for charge-offs occurring within the securitized pool of receivables and receive the contractual rate of return and FIFC is paid a servicing fee as servicer. Any cash flows remaining in excess of these requirements are reported to investors as net yield and remitted to the Company. A net yield rate of less than 0% for a three month period would trigger an economic early amortization event. In addition to this performance measurement associated with the transferred loans, there are additional performance measurements and other events or conditions which could trigger an early amortization event. As of June 30, 2011, no economic or other early amortization events have occurred. Apart from the restricted assets related to securitization activities, the investors and the securitization entity have no recourse to the Company's other assets or credit for a shortage in cash flows. The Company continues to service the loan receivables held by the securitization entity. FIFC receives a monthly servicing fee from the securitization entity based on a percentage of the monthly investor principal balance outstanding. Although the fee income to FIFC offsets the fee expense to the securitization entity and thus is eliminated in consolidation, failure to service the transferred loan receivables in accordance with contractual requirements could lead to a termination of the servicing rights and the loss of future servicing income. |
Segment Information
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Jun. 30, 2011
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Segment Information | Â | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | (13) Segment Information The Company's operations consist of three primary segments: community banking, specialty finance and wealth management. The three reportable segments are strategic business units that are separately managed as they offer different products and services and have different marketing strategies. In addition, each segment's customer base has varying characteristics. The community banking segment has a different regulatory environment than the specialty finance and wealth management segments. While the Company's management monitors each of the fifteen bank subsidiaries' operations and profitability separately, these subsidiaries have been aggregated into one reportable operating segment due to the similarities in products and services, customer base, operations, profitability measures, and economic characteristics. The net interest income, net revenue and segment profit of the community banking segment includes income and related interest costs from portfolio loans that were purchased from the specialty finance segment. For purposes of internal segment profitability analysis, management reviews the results of its specialty finance segment as if all loans originated and sold to the community banking segment were retained within that segment's operations, thereby causing inter-segment eliminations. Similarly, for purposes of analyzing the contribution from the wealth management segment, management allocates a portion of the net interest income earned by the community banking segment on deposit balances of customers of the wealth management segment to the wealth management segment. See Note 10 — Deposits, for more information on these deposits. The segment financial information provided in the following tables has been derived from the internal profitability reporting system used by management to monitor and manage the financial performance of the Company. The accounting policies of the segments are generally the same as those described in "Summary of Significant Accounting Policies" in Note 1 of the Company's 2010 Form 10-K. The Company evaluates segment performance based on after-tax profit or loss and other appropriate profitability measures common to each segment. Certain indirect expenses have been allocated based on actual volume measurements and other criteria, as appropriate. Intersegment revenue and transfers are generally accounted for at current market prices. The parent and intersegment eliminations reflected parent company information and intersegment eliminations.
The following is a summary of certain operating information for reportable segments:
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Derivatives Financial Instruments (Summary Amounts Included In Consolidated Statement Of Income Related To Derivatives) (Details) (USD $)
In Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2011
|
Jun. 30, 2010
|
Jun. 30, 2011
|
Jun. 30, 2010
|
|
Interest Rate Swaps and Floors [Member] | Other Income [Member]
|
 |  |  |  |
Income related to derivative instruments not designated in hedge relationships | $ (94) | $ (227) | $ (628) | $ (303) |
Mortgage Banking Derivatives [Member] | Mortgage Banking Revenue [Member]
|
 |  |  |  |
Income related to derivative instruments not designated in hedge relationships | (165) | (6,458) | (1,508) | (8,601) |
Covered Call Options [Member] | Other Expense [Member]
|
 |  |  |  |
Income related to derivative instruments not designated in hedge relationships | $ 2,287 | $ 169 | $ 4,757 | $ 459 |
Goodwill And Other Intangible Assets
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2011
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Goodwill And Other Intangible Assets | Â | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | (9) Goodwill and Other Intangible Assets A summary of the Company's goodwill assets by business segment is presented in the following table:
The Community banking segment's goodwill increased $2.1 million in 2011 as a result of the acquisition of certain assets and the assumption of certain liabilities of the mortgage banking businesses of Woodfield and River City. The acquisition of Woodfield and River City increased goodwill $750,000 and $1.4 million, respectively. Pursuant to the acquisition of Professional Mortgage Partners ("PMP") in December 2008, Wintrust may be required to pay contingent consideration to the former owner of PMP as a result of attaining certain performance measures through December 2011. Any contingent payments made pursuant to this transaction would be reflected as increases in the Community banking segment's goodwill.
A summary of finite-lived intangible assets as of the dates shown and the expected amortization as of June 30, 2011, December 31, 2010, and June 30, 2010 is as follows:
The customer list intangibles recognized in connection with the purchase of life insurance premium finance assets in 2009 are being amortized over an 18-year period on an accelerated basis. The increase in core deposit intangibles from 2010 was related to the FDIC-assisted acquisition of CFBC and TBOC during the first quarter of 2011. Core deposit intangibles recognized in connection with the Company's bank acquisitions are being amortized over ten-year periods on an accelerated basis. Total amortization expense associated with finite-lived intangibles totaled approximately $1.4 million and $1.3 million for the six months ended June 30, 2011 and 2010, respectively. |
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