MB FINANCIAL, INC. | ||||
(Exact name of registrant as specified in its charter) | ||||
Maryland | 0-24566-01 | 36-4460265 | ||
(State or other jurisdiction of incorporation) | (Commission File No.) | (IRS Employer Identification No.) | ||
800 West Madison Street, Chicago, Illinois 60607 | ||||
(Address of principal executive offices) (Zip Code) | ||||
Registrant’s telephone number, including area code: (888) 422-6562 | ||||
N/A | ||||
(Former name or former address, if changed since last report) | ||||
MB Financial, Inc. | ||||
800 West Madison Street | ||||
Chicago, Illinois 60607 | ||||
(888) 422-6562 | ||||
NASDAQ: MBFI |
• | Fully taxable equivalent net interest margin was 3.64% for the first quarter of 2014 compared to 3.50% for the prior quarter and 3.59% for the first quarter of 2013. |
• | The increase from the fourth quarter of 2013 was due to lower cash balances held during the first quarter of 2014 (approximately ten basis points of net interest margin improvement) as well as higher yields on taxable investment securities (approximately five basis points of net interest margin improvement). |
• | The increase from the first quarter of 2013 was due to a lower cost of funds and improved taxable investment securities yields, partially offset by lower loan yields. |
• | Capital markets and international banking fees, treasury management fees and trust and asset management fees all increased from the prior quarter. |
• | Leasing revenues declined due to lower equipment remarketing gains and lower fees from the sale of third-party equipment maintenance contracts. |
• | Core non-interest expense improved from the prior quarter due to lower salaries and employee benefits expense, lower computer services expense, lower professional and legal expense and a reduction in expenses related to the clawback liability under loss sharing agreements with the FDIC. |
• | Our provision for credit losses remained low at approximately $1.2 million for the quarter, but increased from a negative provision of $3.0 million in the prior quarter. |
• | Non-performing loans increased during the quarter compared to the first and fourth quarters of 2013 due to a $22.7 million relationship being placed on non-accrual status during the first quarter of 2014. |
• | Potential problem loan balances improved from year end and a year ago by $10.8 million and $46.7 million, respectively. |
• | Other real estate owned balances improved from year end and a year ago by $2.4 million and $10.5 million, respectively. |
• | Included in other operating expenses was a $2.0 million write-off of an investment in low-income housing funds that invested in real estate projects. We view this write-off as a credit cost due to the nature of the investment. See below for additional details. |
• | Average loans, excluding covered loans, increased approximately $71 million (+1.3%) from the fourth quarter and approximately $142 million (+2.7%) from the first quarter one year ago. Loans, excluding covered loans, at the end of the quarter increased $88 million (+1.7%) from a year ago but decreased $82 million (-1.5%) from year end. |
• | Average low cost deposit flows were strong, increasing approximately $76 million (+1.3%) during the first quarter. Low cost deposits at the end of the first quarter increased $161 million (+2.7%) from year end. We typically see low cost deposit outflows during the first quarter. Stable low cost deposits decrease our reliance on wholesale funding sources and allow us to maintain a lower cost of funds. |
• | We continue to maintain robust capital and liquidity ratios and are positioned well for completion of our pending merger with Taylor Capital Group, Inc. Cash and interest bearing deposits at our holding company totaled approximately $140 million as of March 31, 2014. |
1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q13 | ||||||||||||||||
Core non-interest income: | ||||||||||||||||||||
Key fee initiatives: | ||||||||||||||||||||
Capital markets and international banking service fees | $ | 978 | $ | 841 | $ | 972 | $ | 939 | $ | 808 | ||||||||||
Commercial deposit and treasury management fees | 7,144 | 6,545 | 6,327 | 6,029 | 5,966 | |||||||||||||||
Lease financing, net | 13,196 | 15,808 | 14,070 | 15,102 | 16,263 | |||||||||||||||
Trust and asset management fees | 5,207 | 4,975 | 4,799 | 4,874 | 4,494 | |||||||||||||||
Card fees | 2,701 | 2,838 | 2,745 | 2,735 | 2,695 | |||||||||||||||
Total key fee initiatives | 29,226 | 31,007 | 28,913 | 29,679 | 30,226 | |||||||||||||||
Loan service fees | 965 | 1,214 | 1,427 | 1,911 | 1,011 | |||||||||||||||
Consumer and other deposit service fees | 2,935 | 3,481 | 3,648 | 3,593 | 3,246 | |||||||||||||||
Brokerage fees | 1,325 | 1,227 | 1,289 | 1,234 | 1,157 | |||||||||||||||
Increase in cash surrender value of life insurance | 827 | 848 | 851 | 842 | 844 | |||||||||||||||
Accretion of FDIC indemnification asset | 31 | 35 | 64 | 100 | 143 | |||||||||||||||
Net gain on sale of loans | 59 | 342 | 177 | 506 | 639 | |||||||||||||||
Other operating income | 768 | 641 | 878 | 1,039 | 955 | |||||||||||||||
Total core non-interest income | 36,136 | 38,795 | 37,247 | 38,904 | 38,221 | |||||||||||||||
Non-core non-interest income: (1) | ||||||||||||||||||||
Net gain (loss) on investment securities | 317 | (15 | ) | 1 | 14 | (1 | ) | |||||||||||||
Net gain (loss) on sale of other assets | 7 | (323 | ) | — | — | — | ||||||||||||||
Increase in market value of assets held in trust for deferred compensation (A) | 152 | 588 | 459 | 21 | 483 | |||||||||||||||
Total non-core non-interest income | 476 | 250 | 460 | 35 | 482 | |||||||||||||||
Total non-interest income | $ | 36,612 | $ | 39,045 | $ | 37,707 | $ | 38,939 | $ | 38,703 |
(1) | Letter denotes the corresponding line item where this non-core non-interest income item resides in the consolidated statements of income as follows: A – Other operating income. |
• | Leasing revenues declined due to lower equipment remarketing gains and lower fees from the sale of third-party equipment maintenance contracts. |
• | Commercial deposit and treasury management fees increased during the first quarter due to robust new customer activity. |
• | Trust and asset management fees increased due to the growth in investment management fees as a result of new customers added and the impact of higher equity values on assets under management and related fee revenue. |
• | Leasing revenues declined due to lower equipment remarketing gains and lower fees from the sale of third-party equipment maintenance contracts. |
• | Commercial deposit and treasury management fees increased in the first quarter due to robust new customer activity. |
• | Trust and asset management fees increased due to the growth in investment management fees as a result of new customers added and the impact of higher equity values on assets under management and related fee revenue. |
1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q13 | ||||||||||||||||
Core non-interest expense: | ||||||||||||||||||||
Salaries and employee benefits | $ | 44,121 | $ | 44,929 | $ | 44,459 | $ | 43,888 | $ | 43,031 | ||||||||||
Occupancy and equipment expense | 9,592 | 9,269 | 8,797 | 9,408 | 9,404 | |||||||||||||||
Computer services and telecommunication expense | 5,071 | 5,509 | 4,870 | 4,617 | 3,887 | |||||||||||||||
Advertising and marketing expense | 1,991 | 2,081 | 1,917 | 2,167 | 2,103 | |||||||||||||||
Professional and legal expense | 1,369 | 2,340 | 1,408 | 1,353 | 1,295 | |||||||||||||||
Other intangible amortization expense | 1,240 | 1,489 | 1,513 | 1,538 | 1,544 | |||||||||||||||
Other real estate expense, net | 396 | 175 | 240 | 193 | 139 | |||||||||||||||
Other operating expenses | 9,220 | 10,171 | 10,052 | 9,083 | 9,213 | |||||||||||||||
Total core non-interest expense | 73,000 | 75,963 | 73,256 | 72,247 | 70,616 | |||||||||||||||
Non-core non-interest expense: (1) | ||||||||||||||||||||
Merger related expenses (A) | 680 | 724 | 1,759 | — | — | |||||||||||||||
Net loss (gain) recognized on other real estate owned (B) | 122 | (831 | ) | 754 | (2,130 | ) | 319 | |||||||||||||
Net loss recognized on other real estate owned related to FDIC transactions (B) | 65 | 197 | 37 | 115 | 11 | |||||||||||||||
Loss on low-income housing investment (C) | 2,028 | — | — | — | — | |||||||||||||||
Increase in market value of assets held in trust for deferred compensation (D) | 152 | 588 | 459 | 21 | 483 | |||||||||||||||
Total non-core non-interest expense | 3,047 | 678 | 3,009 | (1,994 | ) | 813 | ||||||||||||||
Total non-interest expense | $ | 76,047 | $ | 76,641 | $ | 76,265 | $ | 70,253 | $ | 71,429 |
(1) | Letters denote the corresponding line items where these non-core non-interest expense items reside in the consolidated statements of income as follows: A – Salaries and employee benefits, computer services and telecommunication expense, advertising and marketing expense, professional and legal expense and other operating expenses, B – Net (gain) loss recognized on other real estate owned, C – Other operating expenses, D – Salaries and employee benefits. |
• | Professional and legal expense decreased due to lower consulting and legal costs. |
• | Other operating expense decreased as a result of a decrease in the clawback liability related to our loss share agreements with the FDIC. |
• | Salaries and employee benefits decreased primarily due to a decrease in leasing commissions as a result of lower leasing revenues. |
• | Computer services and telecommunication expenses increased due primarily to an increase in spending on IT security, data warehouse, investments in our key fee initiatives, as well as higher transaction volumes in leasing, treasury management and card areas. |
• | Salaries and employee benefits increased due to annual salary increases, long-term incentive expense, taxes and temporary staffing needs. |
1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q13 | |||||||||||||||||||||||||||||||
Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||||||
Commercial related credits: | |||||||||||||||||||||||||||||||||||
Commercial loans | $ | 1,232,562 | 22 | % | $ | 1,167,924 | 21 | % | $ | 1,166,887 | 21 | % | $ | 1,206,740 | 21 | % | $ | 1,205,903 | 21 | % | |||||||||||||||
Commercial loans collateralized by assignment of lease payments (lease loans) | 1,479,998 | 26 | 1,468,257 | 26 | 1,429,169 | 26 | 1,340,854 | 25 | 1,300,818 | 23 | |||||||||||||||||||||||||
Commercial real estate | 1,631,041 | 29 | 1,629,270 | 29 | 1,652,339 | 30 | 1,716,170 | 30 | 1,730,051 | 31 | |||||||||||||||||||||||||
Construction real estate | 140,920 | 3 | 141,041 | 3 | 128,115 | 2 | 133,705 | 2 | 113,573 | 2 | |||||||||||||||||||||||||
Total commercial related credits | 4,484,521 | 80 | 4,406,492 | 79 | 4,376,510 | 79 | 4,397,469 | 78 | 4,350,345 | 77 | |||||||||||||||||||||||||
Other loans: | |||||||||||||||||||||||||||||||||||
Residential real estate | 311,466 | 5 | 315,303 | 5 | 307,555 | 5 | 306,978 | 5 | 312,748 | 6 | |||||||||||||||||||||||||
Indirect vehicle | 263,510 | 5 | 260,918 | 5 | 250,003 | 5 | 231,577 | 5 | 212,153 | 4 | |||||||||||||||||||||||||
Home equity | 263,283 | 5 | 271,898 | 5 | 277,122 | 5 | 286,640 | 5 | 298,061 | 5 | |||||||||||||||||||||||||
Consumer loans | 62,616 | 1 | 60,054 | 1 | 61,950 | 1 | 70,603 | 1 | 70,364 | 1 | |||||||||||||||||||||||||
Total other loans | 900,875 | 16 | 908,173 | 16 | 896,630 | 16 | 895,798 | 16 | 893,326 | 16 | |||||||||||||||||||||||||
Gross loans excluding covered loans | 5,385,396 | 96 | 5,314,665 | 95 | 5,273,140 | 95 | 5,293,267 | 94 | 5,243,671 | 93 | |||||||||||||||||||||||||
Covered loans (1) | 221,481 | 4 | 258,094 | 5 | 281,896 | 5 | 335,148 | 6 | 424,688 | 7 | |||||||||||||||||||||||||
Total loans | $ | 5,606,877 | 100 | % | $ | 5,572,759 | 100 | % | $ | 5,555,036 | 100 | % | $ | 5,628,415 | 100 | % | $ | 5,668,359 | 100 | % |
(1) | Covered loans refer to loans we acquired in FDIC-assisted transactions that are subject to loss-sharing agreements with the FDIC. |
3/31/2014 | 12/31/2013 | 9/30/2013 | 6/30/2013 | 3/31/2013 | |||||||||||||||||||||||||||||||
Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||||||
Commercial related credits: | |||||||||||||||||||||||||||||||||||
Commercial loans | $ | 1,267,398 | 23 | % | $ | 1,281,377 | 22 | % | $ | 1,169,009 | 21 | % | $ | 1,198,862 | 22 | % | $ | 1,207,638 | 21 | % | |||||||||||||||
Commercial loans collateralized by assignment of lease payments (lease loans) | 1,472,621 | 27 | 1,494,188 | 26 | 1,468,814 | 26 | 1,422,901 | 25 | 1,347,666 | 24 | |||||||||||||||||||||||||
Commercial real estate | 1,623,509 | 29 | 1,647,700 | 29 | 1,638,368 | 29 | 1,710,964 | 30 | 1,743,329 | 30 | |||||||||||||||||||||||||
Construction real estate | 132,997 | 2 | 141,253 | 3 | 136,146 | 2 | 121,420 | 2 | 101,581 | 2 | |||||||||||||||||||||||||
Total commercial related credits | 4,496,525 | 81 | 4,564,518 | 80 | 4,412,337 | 78 | 4,454,147 | 79 | 4,400,214 | 77 | |||||||||||||||||||||||||
Other loans: | |||||||||||||||||||||||||||||||||||
Residential real estate | 309,137 | 5 | 314,440 | 5 | 311,256 | 6 | 305,710 | 5 | 312,804 | 5 | |||||||||||||||||||||||||
Indirect vehicle | 266,044 | 5 | 262,632 | 5 | 257,740 | 5 | 242,964 | 5 | 220,739 | 4 | |||||||||||||||||||||||||
Home equity | 258,120 | 5 | 268,289 | 5 | 274,484 | 5 | 281,334 | 5 | 291,190 | 5 | |||||||||||||||||||||||||
Consumer loans | 64,812 | 1 | 66,952 | 1 | 57,418 | 1 | 75,476 | 1 | 81,932 | 2 | |||||||||||||||||||||||||
Total other loans | 898,113 | 16 | 912,313 | 16 | 900,898 | 17 | 905,484 | 16 | 906,665 | 16 | |||||||||||||||||||||||||
Gross loans excluding covered loans | 5,394,638 | 97 | 5,476,831 | 96 | 5,313,235 | 95 | 5,359,631 | 95 | 5,306,879 | 93 | |||||||||||||||||||||||||
Covered loans (1) | 173,677 | 3 | 235,720 | 4 | 273,497 | 5 | 308,556 | 5 | 400,789 | 7 | |||||||||||||||||||||||||
Total loans | $ | 5,568,315 | 100 | % | $ | 5,712,551 | 100 | % | $ | 5,586,732 | 100 | % | $ | 5,668,187 | 100 | % | $ | 5,707,668 | 100 | % |
(1) | Covered loans refer to loans we acquired in FDIC-assisted transactions that are subject to loss-sharing agreements with the FDIC. |
3/31/2014 | 12/31/2013 | 9/30/2013 | 6/30/2013 | 3/31/2013 | ||||||||||||||||
Non-performing loans: | ||||||||||||||||||||
Non-accrual loans (1) | $ | 118,023 | $ | 106,115 | $ | 102,042 | $ | 112,926 | $ | 108,765 | ||||||||||
Loans 90 days or more past due, still accruing interest | 747 | 446 | 410 | 2,322 | 5,193 | |||||||||||||||
Total non-performing loans | 118,770 | 106,561 | 102,452 | 115,248 | 113,958 | |||||||||||||||
Other real estate owned | 20,928 | 23,289 | 31,356 | 32,993 | 31,462 | |||||||||||||||
Repossessed assets | 772 | 840 | 861 | 749 | 757 | |||||||||||||||
Total non-performing assets | 140,470 | 130,690 | 134,669 | 148,990 | 146,177 | |||||||||||||||
Potential problem loans (2) | 68,785 | 79,589 | 96,405 | 131,746 | 115,451 | |||||||||||||||
Total classified assets | $ | 209,255 | $ | 210,279 | $ | 231,074 | $ | 280,736 | $ | 261,628 | ||||||||||
Total allowance for loan losses | $ | 106,752 | $ | 111,746 | $ | 118,031 | $ | 123,685 | $ | 121,802 | ||||||||||
Accruing restructured loans (3) | 25,797 | 29,430 | 29,911 | 28,270 | 21,630 | |||||||||||||||
Total non-performing loans to total loans | 2.13 | % | 1.87 | % | 1.83 | % | 2.03 | % | 2.00 | % | ||||||||||
Total non-performing assets to total assets | 1.49 | 1.36 | 1.45 | 1.59 | 1.56 | |||||||||||||||
Allowance for loan losses to non-performing loans | 89.88 | 104.87 | 115.21 | 107.32 | 106.88 |
(1) | Includes $15.6 million, $25.0 million, $22.3 million, $20.9 million and $26.3 million of restructured loans on non-accrual status at March 31, 2014, December 31, 2013, September 30, 2013, June 30, 2013 and March 31, 2013, respectively. |
(2) | We define potential problem loans as loans rated substandard that do not meet the definition of a non-performing loan. Potential problem loans carry a higher probability of default and require additional attention by management. |
(3) | Accruing restructured loans consists primarily of residential real estate and home equity loans that have been modified and are performing in accordance with those modified terms as of the dates indicated. The increase in accruing restructured loans in the second quarter of 2013 was primarily a result of non-accrual loans upgraded to accrual status due to continued performance. |
3/31/2014 | 12/31/2013 | 9/30/2013 | 6/30/2013 | 3/31/2013 | ||||||||||||||||
Commercial and lease | $ | 42,532 | $ | 22,348 | $ | 22,293 | $ | 25,968 | $ | 22,247 | ||||||||||
Commercial real estate | 49,541 | 58,292 | 54,276 | 62,335 | 57,604 | |||||||||||||||
Construction real estate | 782 | 475 | 496 | 519 | 1,025 | |||||||||||||||
Consumer related | 25,915 | 25,446 | 25,387 | 26,426 | 33,082 | |||||||||||||||
Total non-performing loans | $ | 118,770 | $ | 106,561 | $ | 102,452 | $ | 115,248 | $ | 113,958 |
3/31/2014 | 12/31/2013 | 9/30/2013 | 6/30/2013 | 3/31/2013 | ||||||||||||||||
Balance at the beginning of quarter | $ | 23,289 | $ | 31,356 | $ | 32,993 | $ | 31,462 | $ | 36,977 | ||||||||||
Transfers in at fair value less estimated costs to sell | 539 | 104 | 1,846 | 3,503 | 711 | |||||||||||||||
Capitalized other real estate owned costs | — | 21 | 45 | 8 | — | |||||||||||||||
Fair value adjustments | (140 | ) | (176 | ) | (741 | ) | 1,170 | (349 | ) | |||||||||||
Net gains (losses) on sales of other real estate owned | 18 | 1,007 | (13 | ) | 960 | 30 | ||||||||||||||
Cash received upon disposition | (2,778 | ) | (9,023 | ) | (2,774 | ) | (4,110 | ) | (5,907 | ) | ||||||||||
Balance at the end of quarter | $ | 20,928 | $ | 23,289 | $ | 31,356 | $ | 32,993 | $ | 31,462 |
1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q13 | ||||||||||||||||
Allowance for credit losses, balance at the beginning of period | $ | 113,462 | $ | 119,725 | $ | 125,497 | $ | 124,733 | $ | 128,279 | ||||||||||
Provision for credit losses | 1,150 | (3,000 | ) | (3,304 | ) | 500 | — | |||||||||||||
Charge-offs: | ||||||||||||||||||||
Commercial loans | 90 | 676 | 1,686 | 433 | 911 | |||||||||||||||
Commercial loans collateralized by assignment of lease payments (lease loans) | — | — | — | — | — | |||||||||||||||
Commercial real estate loans | 7,156 | 2,386 | 1,236 | 1,978 | 1,917 | |||||||||||||||
Construction real estate | 56 | 125 | 26 | 747 | 82 | |||||||||||||||
Residential real estate | 265 | 722 | 713 | 399 | 962 | |||||||||||||||
Home equity | 619 | 1,145 | 437 | 1,323 | 787 | |||||||||||||||
Indirect vehicle | 920 | 981 | 572 | 629 | 729 | |||||||||||||||
Consumer loans | 495 | 572 | 485 | 451 | 565 | |||||||||||||||
Total charge-offs | 9,601 | 6,607 | 5,155 | 5,960 | 5,953 | |||||||||||||||
Recoveries: | ||||||||||||||||||||
Commercial loans | 1,628 | 1,348 | 579 | 777 | 452 | |||||||||||||||
Commercial loans collateralized by assignment of lease payments (lease loans) | — | — | — | 987 | 144 | |||||||||||||||
Commercial real estate loans | 485 | 672 | 966 | 3,647 | 740 | |||||||||||||||
Construction real estate | 99 | 789 | 420 | 131 | 276 | |||||||||||||||
Residential real estate | 519 | 18 | 48 | 199 | 214 | |||||||||||||||
Home equity | 133 | 152 | 228 | 100 | 114 | |||||||||||||||
Indirect vehicle | 442 | 300 | 372 | 324 | 415 | |||||||||||||||
Consumer loans | 78 | 65 | 74 | 59 | 52 | |||||||||||||||
Total recoveries | 3,384 | 3,344 | 2,687 | 6,224 | 2,407 | |||||||||||||||
Total net charge-offs (recoveries) | 6,217 | 3,263 | 2,468 | (264 | ) | 3,546 | ||||||||||||||
Allowance for credit losses | 108,395 | 113,462 | 119,725 | 125,497 | 124,733 | |||||||||||||||
Allowance for unfunded credit commitments | (1,643 | ) | (1,716 | ) | (1,694 | ) | (1,812 | ) | (2,931 | ) | ||||||||||
Allowance for loan losses | $ | 106,752 | $ | 111,746 | $ | 118,031 | $ | 123,685 | $ | 121,802 | ||||||||||
Total loans, excluding loans held for sale | $ | 5,568,315 | $ | 5,712,551 | $ | 5,586,732 | $ | 5,668,187 | $ | 5,707,668 | ||||||||||
Average loans, excluding loans held for sale | 5,606,877 | 5,572,759 | 5,555,036 | 5,628,415 | 5,668,359 | |||||||||||||||
Ratio of allowance for loan losses to total loans, excluding loans held for sale | 1.92 | % | 1.96 | % | 2.11 | % | 2.18 | % | 2.13 | % | ||||||||||
Net loan charge-offs (recoveries) to average loans, excluding loans held for sale (annualized) | 0.45 | 0.23 | 0.18 | (0.02 | ) | 0.25 |
3/31/2014 | 12/31/2013 | 9/30/2013 | 6/30/2013 | 3/31/2013 | ||||||||||||||||
Commercial related loans: | ||||||||||||||||||||
General reserve | $ | 75,695 | $ | 78,270 | $ | 87,112 | $ | 87,836 | $ | 92,433 | ||||||||||
Specific reserve | 11,325 | 12,834 | 12,378 | 16,679 | 12,137 | |||||||||||||||
Consumer related reserve | 19,732 | 20,642 | 18,541 | 19,170 | 17,232 | |||||||||||||||
Total allowance for loan losses | $ | 106,752 | $ | 111,746 | $ | 118,031 | $ | 123,685 | $ | 121,802 |
3/31/2014 | 12/31/2013 | 9/30/2013 | 6/30/2013 | 3/31/2013 | ||||||||||||||||
Securities available for sale: | ||||||||||||||||||||
Fair value | ||||||||||||||||||||
Government sponsored agencies and enterprises | $ | 51,836 | $ | 52,068 | $ | 52,527 | $ | 33,935 | $ | 40,949 | ||||||||||
States and political subdivisions | 19,350 | 19,143 | 19,312 | 684,710 | 719,761 | |||||||||||||||
Mortgage-backed securities | 726,439 | 754,174 | 744,722 | 701,201 | 842,605 | |||||||||||||||
Corporate bonds | 273,853 | 283,070 | 263,021 | 215,256 | 197,675 | |||||||||||||||
Equity securities | 10,572 | 10,457 | 10,541 | 10,570 | 11,179 | |||||||||||||||
Total fair value | $ | 1,082,050 | $ | 1,118,912 | $ | 1,090,123 | $ | 1,645,672 | $ | 1,812,169 | ||||||||||
Amortized cost | ||||||||||||||||||||
Government sponsored agencies and enterprises | $ | 50,291 | $ | 50,486 | $ | 50,678 | $ | 32,050 | $ | 38,478 | ||||||||||
States and political subdivisions | 19,285 | 19,398 | 19,461 | 669,791 | 680,978 | |||||||||||||||
Mortgage-backed securities | 717,548 | 747,306 | 736,070 | 690,681 | 827,384 | |||||||||||||||
Corporate bonds | 272,490 | 284,083 | 265,293 | 219,362 | 197,162 | |||||||||||||||
Equity securities | 10,703 | 10,649 | 10,574 | 10,560 | 10,820 | |||||||||||||||
Total amortized cost | $ | 1,070,317 | $ | 1,111,922 | $ | 1,082,076 | $ | 1,622,444 | $ | 1,754,822 | ||||||||||
Unrealized gain | ||||||||||||||||||||
Government sponsored agencies and enterprises | $ | 1,545 | $ | 1,582 | $ | 1,849 | $ | 1,885 | $ | 2,471 | ||||||||||
States and political subdivisions | 65 | (255 | ) | (149 | ) | 14,919 | 38,783 | |||||||||||||
Mortgage-backed securities | 8,891 | 6,868 | 8,652 | 10,520 | 15,221 | |||||||||||||||
Corporate bonds | 1,363 | (1,013 | ) | (2,272 | ) | (4,106 | ) | 513 | ||||||||||||
Equity securities | (131 | ) | (192 | ) | (33 | ) | 10 | 359 | ||||||||||||
Total unrealized gain | $ | 11,733 | $ | 6,990 | $ | 8,047 | $ | 23,228 | $ | 57,347 | ||||||||||
Securities held to maturity, at cost: | ||||||||||||||||||||
States and political subdivisions | $ | 940,610 | $ | 932,955 | $ | 941,273 | $ | 282,655 | $ | 262,310 | ||||||||||
Mortgage-backed securities | 248,082 | 249,578 | 252,271 | 253,779 | 255,475 | |||||||||||||||
Total amortized cost | $ | 1,188,692 | $ | 1,182,533 | $ | 1,193,544 | $ | 536,434 | $ | 517,785 |
1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q13 | |||||||||||||||||||||||||||||||
Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||||||
Low cost deposits: | |||||||||||||||||||||||||||||||||||
Noninterest bearing deposits | $ | 2,372,866 | 32 | % | $ | 2,352,901 | 32 | % | $ | 2,258,357 | 31 | % | $ | 2,179,284 | 30 | % | $ | 2,145,058 | 29 | % | |||||||||||||||
Money market and NOW accounts | 2,727,620 | 37 | 2,685,343 | 36 | 2,695,479 | 37 | 2,675,189 | 36 | 2,737,494 | 36 | |||||||||||||||||||||||||
Savings accounts | 862,197 | 12 | 848,734 | 12 | 844,647 | 11 | 840,154 | 11 | 822,214 | 11 | |||||||||||||||||||||||||
Total low cost deposits | 5,962,683 | 81 | 5,886,978 | 80 | 5,798,483 | 79 | 5,694,627 | 77 | 5,704,766 | 76 | |||||||||||||||||||||||||
Certificates of deposit: | |||||||||||||||||||||||||||||||||||
Certificates of deposit | 1,210,189 | 16 | 1,250,049 | 17 | 1,309,539 | 17 | 1,406,693 | 19 | 1,512,600 | 20 | |||||||||||||||||||||||||
Brokered deposit accounts | 223,926 | 3 | 229,635 | 3 | 263,448 | 4 | 294,277 | 4 | 294,295 | 4 | |||||||||||||||||||||||||
Total certificates of deposit | 1,434,115 | 19 | 1,479,684 | 20 | 1,572,987 | 21 | 1,700,970 | 23 | 1,806,895 | 24 | |||||||||||||||||||||||||
Total deposits | $ | 7,396,798 | 100 | % | $ | 7,366,662 | 100 | % | $ | 7,371,470 | 100 | % | $ | 7,395,597 | 100 | % | $ | 7,511,661 | 100 | % |
3/31/2014 | 12/31/2013 | 9/30/2013 | 6/30/2013 | 3/31/2013 | |||||||||||||||||||||||||||||||
Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||||||
Low cost deposits: | |||||||||||||||||||||||||||||||||||
Noninterest bearing deposits | $ | 2,435,868 | 32 | % | $ | 2,375,863 | 32 | % | $ | 2,269,367 | 31 | % | $ | 2,230,384 | 30 | % | $ | 2,067,310 | 28 | % | |||||||||||||||
Money market and NOW accounts | 2,772,766 | 37 | 2,682,419 | 36 | 2,680,127 | 37 | 2,718,989 | 37 | 2,778,916 | 37 | |||||||||||||||||||||||||
Savings accounts | 865,910 | 12 | 855,394 | 12 | 843,671 | 12 | 845,742 | 11 | 833,251 | 11 | |||||||||||||||||||||||||
Total low cost deposits | 6,074,544 | 81 | 5,913,676 | 80 | 5,793,165 | 80 | 5,795,115 | 78 | 5,679,477 | 76 | |||||||||||||||||||||||||
Certificates of deposit: | |||||||||||||||||||||||||||||||||||
Certificates of deposit | 1,188,896 | 16 | 1,243,433 | 17 | 1,266,989 | 17 | 1,357,777 | 18 | 1,478,039 | 20 | |||||||||||||||||||||||||
Brokered deposit accounts | 222,307 | 3 | 224,150 | 3 | 238,532 | 3 | 292,504 | 4 | 294,390 | 4 | |||||||||||||||||||||||||
Total certificates of deposit | 1,411,203 | 19 | 1,467,583 | 20 | 1,505,521 | 20 | 1,650,281 | 22 | 1,772,429 | 24 | |||||||||||||||||||||||||
Total deposits | $ | 7,485,747 | 100 | % | $ | 7,381,259 | 100 | % | $ | 7,298,686 | 100 | % | $ | 7,445,396 | 100 | % | $ | 7,451,906 | 100 | % |
3/31/2014 | 12/31/2013 | 9/30/2013 | 6/30/2013 | 3/31/2013 | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and due from banks | $ | 268,803 | $ | 205,193 | $ | 215,017 | $ | 152,302 | $ | 131,146 | ||||||||||
Interest earning deposits with banks | 244,819 | 268,266 | 41,700 | 280,618 | 108,885 | |||||||||||||||
Total cash and cash equivalents | 513,622 | 473,459 | 256,717 | 432,920 | 240,031 | |||||||||||||||
Federal funds sold | 7,500 | 42,950 | 47,500 | 7,500 | — | |||||||||||||||
Investment securities: | ||||||||||||||||||||
Securities available for sale, at fair value | 1,082,050 | 1,118,912 | 1,090,123 | 1,645,672 | 1,812,169 | |||||||||||||||
Securities held to maturity, at amortized cost | 1,188,692 | 1,182,533 | 1,193,544 | 536,434 | 517,785 | |||||||||||||||
Non-marketable securities - FHLB and FRB Stock | 51,432 | 51,417 | 50,870 | 50,870 | 52,434 | |||||||||||||||
Total investment securities | 2,322,174 | 2,352,862 | 2,334,537 | 2,232,976 | 2,382,388 | |||||||||||||||
Loans held for sale | 802 | 629 | 1,120 | 2,528 | 3,030 | |||||||||||||||
Loans: | ||||||||||||||||||||
Total loans, excluding covered loans | 5,394,638 | 5,476,831 | 5,313,235 | 5,359,631 | 5,306,879 | |||||||||||||||
Covered loans | 173,677 | 235,720 | 273,497 | 308,556 | 400,789 | |||||||||||||||
Total loans | 5,568,315 | 5,712,551 | 5,586,732 | 5,668,187 | 5,707,668 | |||||||||||||||
Less: Allowance for loan losses | 106,752 | 111,746 | 118,031 | 123,685 | 121,802 | |||||||||||||||
Net loans | 5,461,563 | 5,600,805 | 5,468,701 | 5,544,502 | 5,585,866 | |||||||||||||||
Lease investments, net | 122,589 | 131,089 | 112,491 | 113,958 | 117,744 | |||||||||||||||
Premises and equipment, net | 221,711 | 221,065 | 220,574 | 219,783 | 219,662 | |||||||||||||||
Cash surrender value of life insurance | 131,008 | 130,181 | 129,332 | 130,565 | 129,723 | |||||||||||||||
Goodwill | 423,369 | 423,369 | 423,369 | 423,369 | 423,369 | |||||||||||||||
Other intangibles | 22,188 | 23,428 | 24,917 | 26,430 | 27,968 | |||||||||||||||
Other real estate owned, net | 20,928 | 23,289 | 31,356 | 32,993 | 31,462 | |||||||||||||||
Other real estate owned related to FDIC transactions | 22,682 | 20,472 | 24,792 | 19,014 | 20,011 | |||||||||||||||
FDIC indemnification asset | 8,055 | 11,675 | 11,074 | 16,337 | 29,197 | |||||||||||||||
Other assets | 159,112 | 186,154 | 171,138 | 166,784 | 175,379 | |||||||||||||||
Total assets | $ | 9,437,303 | $ | 9,641,427 | $ | 9,257,618 | $ | 9,369,659 | $ | 9,385,830 | ||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
Liabilities | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Noninterest bearing | $ | 2,435,868 | $ | 2,375,863 | $ | 2,269,367 | $ | 2,230,384 | $ | 2,067,310 | ||||||||||
Interest bearing | 5,049,879 | 5,005,396 | 5,029,319 | 5,215,012 | 5,384,596 | |||||||||||||||
Total deposits | 7,485,747 | 7,381,259 | 7,298,686 | 7,445,396 | 7,451,906 | |||||||||||||||
Short-term borrowings | 189,872 | 493,389 | 240,600 | 230,547 | 224,379 | |||||||||||||||
Long-term borrowings | 65,664 | 62,159 | 62,428 | 62,786 | 64,019 | |||||||||||||||
Junior subordinated notes issued to capital trusts | 152,065 | 152,065 | 152,065 | 152,065 | 152,065 | |||||||||||||||
Accrued expenses and other liabilities | 200,175 | 225,873 | 194,371 | 182,784 | 198,658 | |||||||||||||||
Total liabilities | 8,093,523 | 8,314,745 | 7,948,150 | 8,073,578 | 8,091,027 | |||||||||||||||
Stockholders' Equity | ||||||||||||||||||||
Common stock | 553 | 551 | 551 | 550 | 550 | |||||||||||||||
Additional paid-in capital | 740,245 | 738,053 | 736,294 | 736,281 | 734,057 | |||||||||||||||
Retained earnings | 595,301 | 581,998 | 564,779 | 547,116 | 527,332 | |||||||||||||||
Accumulated other comprehensive income | 10,362 | 8,383 | 9,918 | 14,231 | 34,928 | |||||||||||||||
Treasury stock | (4,132 | ) | (3,747 | ) | (3,525 | ) | (3,558 | ) | (3,529 | ) | ||||||||||
Controlling interest stockholders' equity | 1,342,329 | 1,325,238 | 1,308,017 | 1,294,620 | 1,293,338 | |||||||||||||||
Noncontrolling interest | 1,451 | 1,444 | 1,451 | 1,461 | 1,465 | |||||||||||||||
Total stockholders' equity | 1,343,780 | 1,326,682 | 1,309,468 | 1,296,081 | 1,294,803 | |||||||||||||||
Total liabilities and stockholders' equity | $ | 9,437,303 | $ | 9,641,427 | $ | 9,257,618 | $ | 9,369,659 | $ | 9,385,830 |
1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q13 | ||||||||||||||||
Interest income: | ||||||||||||||||||||
Loans | $ | 56,244 | $ | 58,053 | $ | 60,115 | $ | 59,581 | $ | 60,793 | ||||||||||
Investment securities: | ||||||||||||||||||||
Taxable | 8,146 | 7,334 | 6,330 | 6,280 | 6,140 | |||||||||||||||
Nontaxable | 8,067 | 8,166 | 8,175 | 8,163 | 8,060 | |||||||||||||||
Federal funds sold | 5 | 6 | 7 | 2 | — | |||||||||||||||
Other interest earning accounts | 113 | 270 | 193 | 92 | 135 | |||||||||||||||
Total interest income | 72,575 | 73,829 | 74,820 | 74,118 | 75,128 | |||||||||||||||
Interest expense: | ||||||||||||||||||||
Deposits | 3,769 | 3,966 | 4,433 | 5,132 | 5,709 | |||||||||||||||
Short-term borrowings | 100 | 227 | 112 | 116 | 167 | |||||||||||||||
Long-term borrowings and junior subordinated notes | 1,378 | 1,373 | 1,367 | 1,390 | 1,567 | |||||||||||||||
Total interest expense | 5,247 | 5,566 | 5,912 | 6,638 | 7,443 | |||||||||||||||
Net interest income | 67,328 | 68,263 | 68,908 | 67,480 | 67,685 | |||||||||||||||
Provision for credit losses | 1,150 | (3,000 | ) | (3,304 | ) | 500 | — | |||||||||||||
Net interest income after provision for credit losses | 66,178 | 71,263 | 72,212 | 66,980 | 67,685 | |||||||||||||||
Non-interest income: | ||||||||||||||||||||
Capital markets and international banking service fees | 978 | 841 | 972 | 939 | 808 | |||||||||||||||
Commercial deposit and treasury management fees | 7,144 | 6,545 | 6,327 | 6,029 | 5,966 | |||||||||||||||
Lease financing, net | 13,196 | 15,808 | 14,070 | 15,102 | 16,263 | |||||||||||||||
Trust and asset management fees | 5,207 | 4,975 | 4,799 | 4,874 | 4,494 | |||||||||||||||
Card fees | 2,701 | 2,838 | 2,745 | 2,735 | 2,695 | |||||||||||||||
Loan service fees | 965 | 1,214 | 1,427 | 1,911 | 1,011 | |||||||||||||||
Consumer and other deposit service fees | 2,935 | 3,481 | 3,648 | 3,593 | 3,246 | |||||||||||||||
Brokerage fees | 1,325 | 1,227 | 1,289 | 1,234 | 1,157 | |||||||||||||||
Net gain (loss) on securities available for sale | 317 | (15 | ) | 1 | 14 | (1 | ) | |||||||||||||
Increase in cash surrender value of life insurance | 827 | 848 | 851 | 842 | 844 | |||||||||||||||
Net gain (loss) on sale of other assets | 7 | (323 | ) | — | — | — | ||||||||||||||
Accretion of FDIC indemnification asset | 31 | 35 | 64 | 100 | 143 | |||||||||||||||
Net gain on sale of loans | 59 | 342 | 177 | 506 | 639 | |||||||||||||||
Other operating income | 920 | 1,229 | 1,337 | 1,060 | 1,438 | |||||||||||||||
Total non-interest income | 36,612 | 39,045 | 37,707 | 38,939 | 38,703 | |||||||||||||||
Non-interest expense: | ||||||||||||||||||||
Salaries and employee benefits | 44,377 | 45,517 | 44,918 | 43,909 | 43,514 | |||||||||||||||
Occupancy and equipment expense | 9,592 | 9,269 | 8,797 | 9,408 | 9,404 | |||||||||||||||
Computer services and telecommunication expense | 5,084 | 5,509 | 4,870 | 4,617 | 3,887 | |||||||||||||||
Advertising and marketing expense | 2,081 | 2,085 | 1,917 | 2,167 | 2,103 | |||||||||||||||
Professional and legal expense | 1,779 | 3,057 | 3,102 | 1,353 | 1,295 | |||||||||||||||
Other intangible amortization expense | 1,240 | 1,489 | 1,513 | 1,538 | 1,544 | |||||||||||||||
Net loss (gain) recognized on other real estate owned | 187 | (634 | ) | 791 | (2,015 | ) | 330 | |||||||||||||
Other real estate expense, net | 396 | 175 | 240 | 193 | 139 | |||||||||||||||
Other operating expenses | 11,311 | 10,174 | 10,117 | 9,083 | 9,213 | |||||||||||||||
Total non-interest expense | 76,047 | 76,641 | 76,265 | 70,253 | 71,429 | |||||||||||||||
Income before income taxes | 26,743 | 33,667 | 33,654 | 35,666 | 34,959 | |||||||||||||||
Income tax expense | 6,774 | 9,811 | 9,254 | 10,373 | 10,053 | |||||||||||||||
Net income | $ | 19,969 | $ | 23,856 | $ | 24,400 | $ | 25,293 | $ | 24,906 |
1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q13 | ||||||||||||||||
Common share data: | ||||||||||||||||||||
Basic earnings per common share | $ | 0.37 | $ | 0.44 | $ | 0.45 | $ | 0.46 | $ | 0.46 | ||||||||||
Diluted earnings per common share | 0.36 | 0.43 | 0.44 | 0.46 | 0.46 | |||||||||||||||
Weighted average common shares outstanding for basic earnings per common share | 54,639,951 | 54,622,584 | 54,565,089 | 54,436,043 | 54,411,806 | |||||||||||||||
Weighted average common shares outstanding for diluted earnings per common share | 55,265,188 | 55,237,160 | 55,130,653 | 54,868,075 | 54,736,644 |
Selected Financial Data: | ||||||||||||||||||||
1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q13 | ||||||||||||||||
Performance Ratios: | ||||||||||||||||||||
Annualized return on average assets | 0.86 | % | 0.99 | % | 1.05 | % | 1.09 | % | 1.07 | % | ||||||||||
Annualized return on average equity | 6.07 | 7.19 | 7.46 | 7.82 | 7.89 | |||||||||||||||
Annualized cash return on average tangible equity(1) | 9.39 | 11.23 | 11.74 | 12.31 | 12.53 | |||||||||||||||
Net interest rate spread | 3.51 | 3.37 | 3.52 | 3.46 | 3.44 | |||||||||||||||
Cost of funds(2) | 0.27 | 0.27 | 0.30 | 0.34 | 0.38 | |||||||||||||||
Efficiency ratio(3) | 66.67 | 67.12 | 65.11 | 64.26 | 63.10 | |||||||||||||||
Annualized net non-interest expense to average assets(4) | 1.58 | 1.52 | 1.52 | 1.42 | 1.37 | |||||||||||||||
Core non-interest income to revenues (5) | 33.41 | 34.68 | 33.51 | 35.01 | 34.56 | |||||||||||||||
Net interest margin | 3.36 | 3.23 | 3.37 | 3.33 | 3.32 | |||||||||||||||
Tax equivalent effect | 0.28 | 0.27 | 0.29 | 0.28 | 0.27 | |||||||||||||||
Net interest margin - fully tax equivalent basis(6) | 3.64 | 3.50 | 3.66 | 3.61 | 3.59 | |||||||||||||||
Loans to deposits | 74.39 | 77.39 | 76.54 | 76.13 | 76.59 | |||||||||||||||
Asset Quality Ratios: | ||||||||||||||||||||
Non-performing loans(7) to total loans | 2.13 | % | 1.87 | % | 1.83 | % | 2.03 | % | 2.00 | % | ||||||||||
Non-performing assets(7) to total assets | 1.49 | 1.36 | 1.45 | 1.59 | 1.56 | |||||||||||||||
Allowance for loan losses to non-performing loans(7) | 89.88 | 104.87 | 115.21 | 107.32 | 106.88 | |||||||||||||||
Allowance for loan losses to total loans | 1.92 | 1.96 | 2.11 | 2.18 | 2.13 | |||||||||||||||
Net loan charge-offs (recoveries) to average loans (annualized) | 0.45 | 0.23 | 0.18 | (0.02 | ) | 0.25 | ||||||||||||||
Capital Ratios: | ||||||||||||||||||||
Tangible equity to tangible assets(8) | 10.07 | % | 9.65 | % | 9.87 | % | 9.58 | % | 9.54 | % | ||||||||||
Tangible common equity to risk weighted assets(9) | 13.82 | 13.27 | 13.40 | 13.23 | 13.29 | |||||||||||||||
Book value per common share(10) | $ | 24.37 | $ | 24.14 | $ | 23.82 | $ | 23.63 | $ | 23.63 | ||||||||||
Less: goodwill and other intangible assets, net of benefit, per common share | 7.94 | 7.98 | 7.99 | 8.03 | 8.06 | |||||||||||||||
Tangible book value per common share(11) | $ | 16.43 | $ | 16.16 | $ | 15.83 | $ | 15.60 | $ | 15.57 | ||||||||||
Total capital (to risk-weighted assets) | 17.09 | % | 16.53 | % | 16.70 | % | 16.48 | % | 16.22 | % | ||||||||||
Tier 1 capital (to risk-weighted assets) | 15.84 | 15.28 | 15.44 | 15.22 | 14.96 | |||||||||||||||
Tier 1 capital (to average assets) | 11.65 | 11.22 | 11.39 | 11.19 | 10.74 | |||||||||||||||
Tier 1 common capital (to risk-weighted assets) | 13.59 | 13.07 | 13.17 | 12.94 | 12.66 |
(1) | Net cash flow available to common stockholders (net income available to common stockholders, plus other intangibles amortization expense, net of tax benefit) divided by average tangible equity (average equity less average goodwill and average other intangibles, net of tax benefit). |
(2) | Equals total interest expense divided by the sum of average interest bearing liabilities and noninterest bearing deposits. |
(3) | Equals total non-interest expense excluding non-core items divided by the sum of net interest income on a fully tax equivalent basis, total non-interest income less non-core items, and tax equivalent adjustment on the increase in cash surrender value of life insurance. |
(4) | Equals total non-interest expense excluding non-core items less total non-interest income excluding non-core items, and including tax equivalent adjustment on the increase in cash surrender value of life insurance divided by average assets. |
(5) | Equals total non-interest income excluding non-core items and tax equivalent adjustment on the increase in cash surrender value of life insurance divided by the sum of net interest income on a fully tax equivalent basis, total non-interest income less non-core items, and tax equivalent adjustment on the increase in cash surrender value of life insurance. |
(6) | Represents net interest income on a fully tax equivalent basis assuming a 35% tax rate, as a percentage of average interest earning assets. |
(7) | Non-performing loans excludes purchased credit-impaired loans and loans held for sale. Non-performing assets excludes purchased credit-impaired loans, loans held for sale, and other real estate owned related to FDIC transactions. |
(8) | Equals total ending stockholders’ equity less goodwill and other intangibles, net of tax benefit, divided by total assets less goodwill and other intangibles, net of tax benefit. |
(9) | Equals total ending common stockholders’ equity less goodwill and other intangibles, net of tax benefit, divided by total risk-weighted assets. |
(10) | Equals total ending stockholders’ equity divided by common shares outstanding. |
(11) | Equals total ending stockholders’ equity less goodwill and other intangibles, net of tax benefit, divided by common shares outstanding. |
3/31/2014 | 12/31/2013 | 9/30/2013 | 6/30/2013 | 3/31/2013 | ||||||||||||||||
Stockholders' equity - as reported | $ | 1,343,780 | $ | 1,326,682 | $ | 1,309,468 | $ | 1,296,081 | $ | 1,294,803 | ||||||||||
Less: goodwill | 423,369 | 423,369 | 423,369 | 423,369 | 423,369 | |||||||||||||||
Less: other intangible assets, net of tax benefit | 14,422 | 15,228 | 16,196 | 17,180 | 18,179 | |||||||||||||||
Tangible equity | $ | 905,989 | $ | 888,085 | $ | 869,903 | $ | 855,532 | $ | 853,255 |
3/31/2014 | 12/31/2013 | 9/30/2013 | 6/30/2013 | 3/31/2013 | ||||||||||||||||
Total assets - as reported | $ | 9,437,303 | $ | 9,641,427 | $ | 9,257,618 | $ | 9,369,659 | $ | 9,385,830 | ||||||||||
Less: goodwill | 423,369 | 423,369 | 423,369 | 423,369 | 423,369 | |||||||||||||||
Less: other intangible assets, net of tax benefit | 14,422 | 15,228 | 16,196 | 17,180 | 18,179 | |||||||||||||||
Tangible assets | $ | 8,999,512 | $ | 9,202,830 | $ | 8,818,053 | $ | 8,929,110 | $ | 8,944,282 |
1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q13 | ||||||||||||||||
Average common stockholders' equity - as reported | $ | 1,335,223 | $ | 1,315,804 | $ | 1,297,498 | $ | 1,297,364 | $ | 1,280,921 | ||||||||||
Less: average goodwill | 423,369 | 423,369 | 423,369 | 423,369 | 423,369 | |||||||||||||||
Less: average other intangible assets, net of tax benefit | 14,758 | 15,647 | 16,620 | 17,605 | 18,611 | |||||||||||||||
Average tangible common equity | $ | 897,096 | $ | 876,788 | $ | 857,509 | $ | 856,390 | $ | 838,941 |
1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q13 | ||||||||||||||||
Net income available to common stockholders - as reported | $ | 19,969 | $ | 23,856 | $ | 24,400 | $ | 25,293 | $ | 24,906 | ||||||||||
Add: other intangible amortization expense, net of tax benefit | 806 | 968 | 983 | 1,000 | 1,004 | |||||||||||||||
Net cash flow available to common stockholders | $ | 20,775 | $ | 24,824 | $ | 25,383 | $ | 26,293 | $ | 25,910 |
3/31/2014 | 12/31/2013 | 9/30/2013 | 6/30/2013 | 3/31/2013 | ||||||||||||||||
Tier 1 capital - as reported | $ | 1,038,600 | $ | 1,022,512 | $ | 1,002,883 | $ | 983,997 | $ | 960,803 | ||||||||||
Less: qualifying trust preferred securities | 147,500 | 147,500 | 147,500 | 147,500 | 147,500 | |||||||||||||||
Tier 1 common capital | $ | 891,100 | $ | 875,012 | $ | 855,383 | $ | 836,497 | $ | 813,303 |
1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q13 | ||||||||||||||||
Non-interest expense | $ | 76,047 | $ | 76,641 | $ | 76,265 | $ | 70,253 | $ | 71,429 | ||||||||||
Less net loss (gain) on other real estate owned | 187 | (634 | ) | 791 | (2,015 | ) | 330 | |||||||||||||
Less merger related expenses | 680 | 724 | 1,759 | — | — | |||||||||||||||
Less loss on low-income housing investment | 2,028 | — | — | — | — | |||||||||||||||
Less increase in market value of assets held in trust for deferred compensation | 152 | 588 | 459 | 21 | 483 | |||||||||||||||
Non-interest expense - as adjusted | $ | 73,000 | $ | 75,963 | $ | 73,256 | $ | 72,247 | $ | 70,616 | ||||||||||
Net interest income | $ | 67,328 | $ | 68,263 | $ | 68,908 | $ | 67,480 | $ | 67,685 | ||||||||||
Tax equivalent adjustment | 5,581 | 5,655 | 5,905 | 5,594 | 5,555 | |||||||||||||||
Net interest income on a fully tax equivalent basis | 72,909 | 73,918 | 74,813 | 73,074 | 73,240 | |||||||||||||||
Plus non-interest income | 36,612 | 39,045 | 37,707 | 38,939 | 38,703 | |||||||||||||||
Plus tax equivalent adjustment on the increase in cash surrender value of life insurance | 445 | 457 | 458 | 454 | 454 | |||||||||||||||
Less net gain (loss) on investment securities | 317 | (15 | ) | 1 | 14 | (1 | ) | |||||||||||||
Less net gain (loss) on sale of other assets | 7 | (323 | ) | — | — | — | ||||||||||||||
Less increase in market value of assets held in trust for deferred compensation | 152 | 588 | 459 | 21 | 483 | |||||||||||||||
Net interest income plus non-interest income - as adjusted | $ | 109,490 | $ | 113,170 | $ | 112,518 | $ | 112,432 | $ | 111,915 | ||||||||||
Efficiency ratio | 66.67 | % | 67.12 | % | 65.11 | % | 64.26 | % | 63.10 | % | ||||||||||
Efficiency ratio (without adjustments) | 73.16 | % | 71.42 | % | 71.53 | % | 66.02 | % | 67.14 | % |
1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q13 | ||||||||||||||||
Non-interest expense | $ | 76,047 | $ | 76,641 | $ | 76,265 | $ | 70,253 | $ | 71,429 | ||||||||||
Less net loss (gain) on other real estate owned | 187 | (634 | ) | 791 | (2,015 | ) | 330 | |||||||||||||
Less merger related expenses | 680 | 724 | 1,759 | — | — | |||||||||||||||
Less loss on low-income housing investment | 2,028 | — | — | — | — | |||||||||||||||
Less increase in market value of assets held in trust for deferred compensation | 152 | 588 | 459 | 21 | 483 | |||||||||||||||
Non-interest expense - as adjusted | 73,000 | 75,963 | 73,256 | 72,247 | 70,616 | |||||||||||||||
Non-interest income | 36,612 | 39,045 | 37,707 | 38,939 | 38,703 | |||||||||||||||
Less net gain (loss) on investment securities | 317 | (15 | ) | 1 | 14 | (1 | ) | |||||||||||||
Less net gain (loss) on sale of other assets | 7 | (323 | ) | — | — | — | ||||||||||||||
Less increase in market value of assets held in trust for deferred compensation | 152 | 588 | 459 | 21 | 483 | |||||||||||||||
Non-interest income - as adjusted | 36,136 | 38,795 | 37,247 | 38,904 | 38,221 | |||||||||||||||
Less tax equivalent adjustment on the increase in cash surrender value of life insurance | 445 | 457 | 458 | 454 | 454 | |||||||||||||||
Net non-interest expense | $ | 36,419 | $ | 36,711 | $ | 35,551 | $ | 32,889 | $ | 31,941 | ||||||||||
Average assets | $ | 9,367,942 | $ | 9,567,388 | $ | 9,261,291 | $ | 9,289,382 | $ | 9,449,588 | ||||||||||
Annualized net non-interest expense to average assets | 1.58 | % | 1.52 | % | 1.52 | % | 1.42 | % | 1.37 | % | ||||||||||
Annualized net non-interest expense to average assets (without adjustments) | 1.71 | % | 1.56 | % | 1.65 | % | 1.35 | % | 1.40 | % |
1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q13 | ||||||||||||||||
Non-interest income | $ | 36,612 | $ | 39,045 | $ | 37,707 | $ | 38,939 | $ | 38,703 | ||||||||||
Plus tax equivalent adjustment on the increase in cash surrender value of life insurance | 445 | 457 | 458 | 454 | 454 | |||||||||||||||
Less net gain (loss) on investment securities | 317 | (15 | ) | 1 | 14 | (1 | ) | |||||||||||||
Less net gain (loss) on sale of other assets | 7 | (323 | ) | — | — | — | ||||||||||||||
Less increase in market value of assets held in trust for deferred compensation | 152 | 588 | 459 | 21 | 483 | |||||||||||||||
Non-interest income - as adjusted | $ | 36,581 | $ | 39,252 | $ | 37,705 | $ | 39,358 | $ | 38,675 | ||||||||||
Net interest income | $ | 67,328 | $ | 68,263 | $ | 68,908 | $ | 67,480 | $ | 67,685 | ||||||||||
Tax equivalent adjustment | 5,581 | 5,655 | 5,905 | 5,594 | 5,555 | |||||||||||||||
Net interest income on a fully tax equivalent basis | 72,909 | 73,918 | 74,813 | 73,074 | 73,240 | |||||||||||||||
Plus non-interest income | 36,612 | 39,045 | 37,707 | 38,939 | 38,703 | |||||||||||||||
Plus tax equivalent adjustment on the increase in cash surrender value of life insurance | 445 | 457 | 458 | 454 | 454 | |||||||||||||||
Less net gain (loss) on investment securities | 317 | (15 | ) | 1 | 14 | (1 | ) | |||||||||||||
Less net gain (loss) on sale of other assets | 7 | (323 | ) | — | — | — | ||||||||||||||
Less increase in market value of assets held in trust for deferred compensation | 152 | 588 | 459 | 21 | 483 | |||||||||||||||
Total revenue - as adjusted and on a fully tax equivalent basis | $ | 109,490 | $ | 113,170 | $ | 112,518 | $ | 112,432 | $ | 111,915 | ||||||||||
Total revenue - unadjusted | $ | 103,940 | $ | 107,308 | $ | 106,615 | $ | 106,419 | $ | 106,388 | ||||||||||
Core non-interest income to revenues ratio | 33.41 | % | 34.68 | % | 33.51 | % | 35.01 | % | 34.56 | % | ||||||||||
Core non-interest income to revenues ratio (without adjustments) | 35.22 | % | 36.39 | % | 35.37 | % | 36.59 | % | 36.38 | % |
1Q14 | 1Q13 | 4Q13 | ||||||||||||||||||||||||||||||||
Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | ||||||||||||||||||||||||||
Interest Earning Assets: | ||||||||||||||||||||||||||||||||||
Loans (1) (2) (3): | ||||||||||||||||||||||||||||||||||
Commercial related credits | ||||||||||||||||||||||||||||||||||
Commercial | $ | 1,232,562 | $ | 12,312 | 4.00 | % | $ | 1,205,903 | 12,559 | 4.17 | % | $ | 1,167,924 | $ | 12,080 | 4.05 | % | |||||||||||||||||
Commercial loans collateralized by assignment of lease payments | 1,479,998 | 14,319 | 3.87 | 1,300,818 | 12,799 | 3.94 | 1,468,257 | 14,087 | 3.84 | |||||||||||||||||||||||||
Real estate commercial | 1,631,041 | 17,332 | 4.25 | 1,730,051 | 20,744 | 4.80 | 1,629,270 | 17,908 | 4.30 | |||||||||||||||||||||||||
Real estate construction | 140,920 | 1,278 | 3.63 | 113,573 | 1,120 | 3.94 | 141,041 | 1,402 | 3.89 | |||||||||||||||||||||||||
Total commercial related credits | 4,484,521 | 45,241 | 4.04 | 4,350,345 | 47,222 | 4.34 | 4,406,492 | 45,477 | 4.04 | |||||||||||||||||||||||||
Other loans | ||||||||||||||||||||||||||||||||||
Real estate residential | 311,760 | 2,992 | 3.84 | 317,779 | 3,285 | 4.13 | 316,573 | 3,018 | 3.81 | |||||||||||||||||||||||||
Home equity | 263,283 | 2,712 | 4.18 | 298,061 | 3,190 | 4.34 | 271,898 | 2,925 | 4.27 | |||||||||||||||||||||||||
Indirect | 263,510 | 3,391 | 5.22 | 212,153 | 3,022 | 5.78 | 260,918 | 3,455 | 5.25 | |||||||||||||||||||||||||
Consumer loans | 62,616 | 676 | 4.38 | 70,364 | 607 | 3.50 | 60,054 | 629 | 4.16 | |||||||||||||||||||||||||
Total other loans | 901,169 | 9,771 | 4.40 | 898,357 | 10,104 | 4.56 | 909,443 | 10,027 | 4.37 | |||||||||||||||||||||||||
Total loans, excluding covered loans | 5,385,690 | 55,012 | 4.14 | 5,248,702 | 57,326 | 4.43 | 5,315,935 | 55,504 | 4.14 | |||||||||||||||||||||||||
Covered loans | 221,481 | 2,470 | 4.52 | 424,688 | 4,682 | 4.47 | 258,094 | 3,808 | 5.85 | |||||||||||||||||||||||||
Total loans | 5,607,171 | 57,482 | 4.16 | 5,673,390 | 62,008 | 4.43 | 5,574,029 | 59,312 | 4.22 | |||||||||||||||||||||||||
Taxable investment securities | 1,384,371 | 8,146 | 2.35 | 1,484,300 | 6,140 | 1.65 | 1,421,135 | 7,335 | 2.06 | |||||||||||||||||||||||||
Investment securities exempt from federal income taxes (3) | 935,863 | 12,410 | 5.30 | 911,742 | 12,400 | 5.44 | 943,298 | 12,561 | 5.33 | |||||||||||||||||||||||||
Federal funds sold | 5,889 | 5 | 0.34 | — | — | — | 8,251 | 6 | 0.28 | |||||||||||||||||||||||||
Other interest earning deposits | 187,049 | 113 | 0.25 | 197,057 | 135 | 0.28 | 436,158 | 270 | 0.25 | |||||||||||||||||||||||||
Total interest earning assets | $ | 8,120,343 | $ | 78,156 | 3.90 | $ | 8,266,489 | $ | 80,683 | 3.96 | $ | 8,382,871 | $ | 79,484 | 3.76 | |||||||||||||||||||
Non-interest earning assets | 1,247,599 | 1,183,099 | 1,184,517 | |||||||||||||||||||||||||||||||
Total assets | $ | 9,367,942 | $ | 9,449,588 | $ | 9,567,388 | ||||||||||||||||||||||||||||
Interest Bearing Liabilities: | ||||||||||||||||||||||||||||||||||
Core funding: | ||||||||||||||||||||||||||||||||||
Money market and NOW accounts | $ | 2,727,620 | $ | 848 | 0.13 | % | $ | 2,737,494 | $ | 927 | 0.14 | % | $ | 2,685,343 | $ | 861 | 0.13 | % | ||||||||||||||||
Savings accounts | 862,197 | 109 | 0.05 | 822,214 | 136 | 0.07 | 848,734 | 137 | 0.06 | |||||||||||||||||||||||||
Certificates of deposit | 1,210,189 | 1,174 | 0.40 | 1,512,600 | 2,397 | 0.66 | 1,250,049 | 1,256 | 0.40 | |||||||||||||||||||||||||
Customer repurchase agreements | 190,466 | 96 | 0.20 | 181,658 | 98 | 0.22 | 216,504 | 114 | 0.21 | |||||||||||||||||||||||||
Total core funding | 4,990,472 | 2,227 | 0.18 | 5,253,966 | 3,558 | 0.27 | 5,000,630 | 2,368 | 0.19 | |||||||||||||||||||||||||
Wholesale funding: | ||||||||||||||||||||||||||||||||||
Brokered accounts (includes fee expense) | 223,926 | 1,638 | 2.97 | 294,295 | 2,249 | 3.10 | 229,635 | 1,712 | 2.96 | |||||||||||||||||||||||||
Other borrowings | 231,805 | 1,382 | 2.38 | 259,135 | 1,636 | 2.53 | 466,508 | 1,486 | 1.25 | |||||||||||||||||||||||||
Total wholesale funding | 455,731 | 3,020 | 2.38 | 553,430 | 3,885 | 2.52 | 696,143 | 3,198 | 1.68 | |||||||||||||||||||||||||
Total interest bearing liabilities | $ | 5,446,203 | $ | 5,247 | 0.39 | $ | 5,807,396 | $ | 7,443 | 0.52 | $ | 5,696,773 | $ | 5,566 | 0.39 | |||||||||||||||||||
Non-interest bearing deposits | 2,372,866 | 2,145,058 | 2,352,901 | |||||||||||||||||||||||||||||||
Other non-interest bearing liabilities | 213,650 | 216,213 | 201,910 | |||||||||||||||||||||||||||||||
Stockholders' equity | 1,335,223 | 1,280,921 | 1,315,804 | |||||||||||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 9,367,942 | $ | 9,449,588 | $ | 9,567,388 | ||||||||||||||||||||||||||||
Net interest income/interest rate spread (4) | $ | 72,909 | 3.51 | % | $ | 73,240 | 3.44 | % | $ | 73,918 | 3.37 | % | ||||||||||||||||||||||
Taxable equivalent adjustment | 5,581 | 5,555 | 5,655 | |||||||||||||||||||||||||||||||
Net interest income, as reported | $ | 67,328 | $ | 67,685 | $ | 68,263 | ||||||||||||||||||||||||||||
Net interest margin (5) | 3.36 | % | 3.32 | % | 3.23 | % | ||||||||||||||||||||||||||||
Tax equivalent effect | 0.28 | % | 0.27 | % | 0.27 | % | ||||||||||||||||||||||||||||
Net interest margin on a fully tax equivalent basis (5) | 3.64 | % | 3.59 | % | 3.50 | % |
(1) | Non-accrual loans are included in average loans. |
(2) | Interest income includes amortization of deferred loan origination costs of $55 thousand for the three months ended March 31, 2014 and deferred loan origination fees of $981 thousand and $956 thousand for the three months ended March 31, 2013 and December 31, 2013, respectively. |
(3) | Non-taxable loan and investment income is presented on a fully tax equivalent basis assuming a 35% tax rate. |
(4) | Interest rate spread represents the difference between the average yield on interest earning assets and the average cost of interest bearing liabilities and is presented on a fully tax equivalent basis. |
(5) | Net interest margin represents net interest income as a percentage of average interest earning assets. |