ý | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended September 30, 2012 |
o | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from to |
Delaware | 001-35533 | 52-2024090 | ||
(State of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||
501 Riverside Ave., Jacksonville, FL | 32202 | |||
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer o | Accelerated filer o | ||
Non-accelerated filer ý (Do not check if a smaller reporting company) | Smaller reporting company o |
Part I - Financial Information | ||
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Part II - Other Information | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 5. | ||
Item 6. |
September 30, 2012 | December 31, 2011 | ||||||
Assets | |||||||
Cash and due from banks | $ | 53,357 | $ | 31,441 | |||
Interest-bearing deposits in banks | 1,566,612 | 263,540 | |||||
Total cash and cash equivalents | 1,619,969 | 294,981 | |||||
Investment securities: | |||||||
Available for sale, at fair value | 1,722,556 | 1,903,922 | |||||
Held to maturity (fair value of $177,228 and $194,350 as of September 30, 2012 and December 31, 2011, respectively) | 170,804 | 189,518 | |||||
Other investments | 126,151 | 98,392 | |||||
Total investment securities | 2,019,511 | 2,191,832 | |||||
Loans held for sale (includes $1,025,467 and $777,280 carried at fair value as of September 30, 2012 and December 31, 2011, respectively) | 1,403,205 | 2,725,286 | |||||
Loans and leases held for investment: | |||||||
Covered by loss share or indemnification agreements | 671,420 | 841,146 | |||||
Not covered by loss share or indemnification agreements | 9,385,306 | 5,678,135 | |||||
Loans and leases held for investment, net of unearned income | 10,056,726 | 6,519,281 | |||||
Allowance for loan and lease losses | (76,469 | ) | (77,765 | ) | |||
Total loans and leases held for investment, net | 9,980,257 | 6,441,516 | |||||
Equipment under operating leases, net | 55,532 | 56,399 | |||||
Mortgage servicing rights (MSR), net | 381,773 | 489,496 | |||||
Deferred income taxes, net | 183,943 | 151,634 | |||||
Premises and equipment, net | 64,789 | 43,738 | |||||
Other assets | 800,461 | 646,796 | |||||
Total Assets | $ | 16,509,440 | $ | 13,041,678 | |||
Liabilities | |||||||
Deposits: | |||||||
Noninterest-bearing | $ | 1,475,204 | $ | 1,234,615 | |||
Interest-bearing | 10,340,722 | 9,031,148 | |||||
Total deposits | 11,815,926 | 10,265,763 | |||||
Other borrowings | 2,823,927 | 1,257,879 | |||||
Trust preferred securities | 103,750 | 103,750 | |||||
Accounts payable and accrued liabilities | 507,815 | 446,621 | |||||
Total Liabilities | 15,251,418 | 12,074,013 | |||||
Commitments and Contingencies (Note 15) | |||||||
Shareholders’ Equity | |||||||
Series A 6% Cumulative Convertible Preferred Stock, $0.01 par value (1,000,000 shares authorized and 186,744 shares issued and outstanding at December 31, 2011; no shares authorized, issued or outstanding at September 30, 2012) (Note 10) | — | 2 | |||||
Series B 4% Cumulative Convertible Preferred Stock, $0.01 par value (liquidation preference of $1,000 per share; 1,000,000 shares authorized inclusive of Series A Preferred Stock and 136,544 shares issued and outstanding at December 31, 2011; no shares authorized, issued or outstanding at September 30, 2012) (Note 10) | — | 1 | |||||
Common Stock, $0.01 par value (500,000,000 and 150,000,000 shares authorized at September 30, 2012 and December 31, 2011, respectively; 120,624,500 and 75,094,375 issued and outstanding at September 30, 2012 and December 31, 2011, respectively) | 1,206 | 751 | |||||
Additional paid-in capital | 812,823 | 561,247 | |||||
Retained earnings | 550,724 | 513,413 | |||||
Accumulated other comprehensive income (loss) (AOCI) | (106,731 | ) | (107,749 | ) | |||
Total Shareholders’ Equity | 1,258,022 | 967,665 | |||||
Total Liabilities and Shareholders’ Equity | $ | 16,509,440 | $ | 13,041,678 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Interest Income | |||||||||||||||
Interest and fees on loans and leases | $ | 140,230 | $ | 116,899 | $ | 400,824 | $ | 358,419 | |||||||
Interest and dividends on investment securities | 20,879 | 27,201 | 62,127 | 82,778 | |||||||||||
Other interest income | 152 | 197 | 338 | 1,312 | |||||||||||
Total Interest Income | 161,261 | 144,297 | 463,289 | 442,509 | |||||||||||
Interest Expense | |||||||||||||||
Deposits | 22,491 | 23,959 | 63,884 | 75,559 | |||||||||||
Other borrowings | 12,576 | 9,469 | 32,604 | 29,478 | |||||||||||
Total Interest Expense | 35,067 | 33,428 | 96,488 | 105,037 | |||||||||||
Net Interest Income | 126,194 | 110,869 | 366,801 | 337,472 | |||||||||||
Provision for Loan and Lease Losses | 4,359 | 12,258 | 21,471 | 39,292 | |||||||||||
Net Interest Income after Provision for Loan and Lease Losses | 121,835 | 98,611 | 345,330 | 298,180 | |||||||||||
Noninterest Income | |||||||||||||||
Loan servicing fee income | 42,341 | 48,390 | 130,380 | 144,023 | |||||||||||
Amortization and impairment of mortgage servicing rights | (54,521 | ) | (44,053 | ) | (163,281 | ) | (88,270 | ) | |||||||
Net loan servicing income (loss) | (12,180 | ) | 4,337 | (32,901 | ) | 55,753 | |||||||||
Gain on sale of loans | 85,748 | 20,921 | 203,851 | 39,854 | |||||||||||
Loan production revenue | 10,528 | 6,518 | 27,817 | 18,513 | |||||||||||
Deposit fee income | 4,671 | 7,803 | 16,738 | 19,398 | |||||||||||
Other lease income | 7,103 | 7,095 | 24,588 | 22,163 | |||||||||||
Other | 1,429 | 6,683 | 4,522 | 16,461 | |||||||||||
Total Noninterest Income | 97,299 | 53,357 | 244,615 | 172,142 | |||||||||||
Noninterest Expense | |||||||||||||||
Salaries, commissions and other employee benefits expense | 85,399 | 57,757 | 228,266 | 171,451 | |||||||||||
Equipment expense | 17,574 | 13,608 | 50,411 | 36,077 | |||||||||||
Occupancy expense | 6,619 | 5,237 | 17,985 | 14,808 | |||||||||||
General and administrative expense | 74,377 | 62,983 | 221,911 | 184,199 | |||||||||||
Total Noninterest Expense | 183,969 | 139,585 | 518,573 | 406,535 | |||||||||||
Income before Provision for Income Taxes | 35,165 | 12,383 | 71,372 | 63,787 | |||||||||||
Provision for Income Taxes | 12,987 | 4,625 | 26,176 | 24,818 | |||||||||||
Net Income | $ | 22,178 | $ | 7,758 | $ | 45,196 | $ | 38,969 | |||||||
Less: Net Income Allocated to Participating Preferred Stock | — | (1,598 | ) | (8,564 | ) | (8,420 | ) | ||||||||
Net Income Allocated to Common Shareholders | $ | 22,178 | $ | 6,160 | $ | 36,632 | $ | 30,549 | |||||||
Basic Earnings Per Share | $ | 0.19 | $ | 0.08 | $ | 0.37 | $ | 0.41 | |||||||
Diluted Earnings Per Share | $ | 0.19 | $ | 0.08 | $ | 0.37 | $ | 0.40 | |||||||
Dividends Declared Per Share | $ | 0.02 | $ | — | $ | 0.02 | $ | — |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Net Income | $ | 22,178 | $ | 7,758 | $ | 45,196 | $ | 38,969 | |||||||
Unrealized Gains (Losses) on Debt Securities | |||||||||||||||
Reclassification of unrealized gains to earnings | — | (4,662 | ) | — | (7,401 | ) | |||||||||
Unrealized gains (losses) due to changes in fair value | 18,662 | (14,254 | ) | 32,367 | (24,804 | ) | |||||||||
Other-than-temporary impairment (OTTI) (noncredit portion), net of accretion | — | — | — | 502 | |||||||||||
Tax effect | (7,094 | ) | 6,626 | (12,240 | ) | 11,322 | |||||||||
Change in unrealized gains (losses) on debt securities | 11,568 | (12,290 | ) | 20,127 | (20,381 | ) | |||||||||
Interest Rate Swaps | |||||||||||||||
Net unrealized losses due to changes in fair value | (11,509 | ) | (82,910 | ) | (37,813 | ) | (105,739 | ) | |||||||
Reclassification of unrealized losses to earnings | 3,112 | 1,801 | 6,786 | 5,598 | |||||||||||
Tax effect | 3,191 | 30,824 | 11,918 | 38,275 | |||||||||||
Change in interest rate swaps | (5,206 | ) | (50,285 | ) | (19,109 | ) | (61,866 | ) | |||||||
Other Comprehensive Income (Loss) | 6,362 | (62,575 | ) | 1,018 | (82,247 | ) | |||||||||
Comprehensive Income (Loss) | $ | 28,540 | $ | (54,817 | ) | $ | 46,214 | $ | (43,278 | ) |
Shareholders’ Equity | |||||||||||||||||||||||
Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss), Net of Tax | Total Equity | ||||||||||||||||||
Balance, January 1, 2012 | $ | 3 | $ | 751 | $ | 561,247 | $ | 513,413 | $ | (107,749 | ) | $ | 967,665 | ||||||||||
Net income | — | — | — | 45,196 | — | 45,196 | |||||||||||||||||
Other comprehensive income | — | — | — | — | 1,018 | 1,018 | |||||||||||||||||
Conversion of preferred stock | (3 | ) | 188 | (185 | ) | — | — | — | |||||||||||||||
Issuance of common stock, net of issue costs | — | 267 | 247,503 | — | — | 247,770 | |||||||||||||||||
Repurchase of common stock | — | — | (442 | ) | — | — | (442 | ) | |||||||||||||||
Share-based grants (including income tax benefits) | — | — | 4,700 | — | — | 4,700 | |||||||||||||||||
Cash dividends on common stock | — | — | — | (2,330 | ) | — | (2,330 | ) | |||||||||||||||
Cash dividends on preferred stock | — | — | — | (5,555 | ) | — | (5,555 | ) | |||||||||||||||
Balance, September 30, 2012 | $ | — | $ | 1,206 | $ | 812,823 | $ | 550,724 | $ | (106,731 | ) | $ | 1,258,022 | ||||||||||
Balance, January 1, 2011 | $ | 3 | $ | 747 | $ | 556,001 | $ | 461,503 | $ | (5,056 | ) | $ | 1,013,198 | ||||||||||
Net income | — | — | — | 38,969 | — | 38,969 | |||||||||||||||||
Other comprehensive loss | — | — | — | — | (82,247 | ) | (82,247 | ) | |||||||||||||||
Issuance of common stock | — | 4 | 1,089 | — | — | 1,093 | |||||||||||||||||
Repurchase of common stock | — | (1 | ) | (2,312 | ) | — | — | (2,313 | ) | ||||||||||||||
Share-based grants (including income tax benefits) | — | — | 5,178 | — | — | 5,178 | |||||||||||||||||
Cash dividends on preferred stock | — | — | — | (170 | ) | — | (170 | ) | |||||||||||||||
Paid-in-kind dividends on Series B Preferred Stock | — | — | 591 | (591 | ) | — | — | ||||||||||||||||
Balance, September 30, 2011 | $ | 3 | $ | 750 | $ | 560,547 | $ | 499,711 | $ | (87,303 | ) | $ | 973,708 |
Nine Months Ended | |||||||
September 30, | |||||||
2012 | 2011 | ||||||
Operating Activities: | |||||||
Net income | $ | 45,196 | $ | 38,969 | |||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||
Amortization of premiums on investments | 6,390 | 9,024 | |||||
Depreciation and amortization of tangible and intangible assets | 27,011 | 16,373 | |||||
Amortization of loss on settlement of interest rate swaps | 6,786 | 5,598 | |||||
Amortization and impairment of mortgage servicing rights | 163,281 | 88,270 | |||||
Deferred income taxes | (32,631 | ) | 56,670 | ||||
Provision for loan and lease losses | 21,471 | 39,292 | |||||
Loss on other real estate owned (OREO) | 7,910 | 11,942 | |||||
Share-based compensation expense | 3,302 | 2,928 | |||||
Payments for settlement of forward interest rate swaps | (41,386 | ) | (2,796 | ) | |||
Other operating activities | (4,249 | ) | (2,767 | ) | |||
Changes in operating assets and liabilities: | |||||||
Loans held for sale, including proceeds from sales and repayments | (942,081 | ) | 72,307 | ||||
Other assets | 89,245 | (135,379 | ) | ||||
Accounts payable and accrued liabilities | 60,194 | 22,686 | |||||
Net cash provided by (used in) operating activities | (589,561 | ) | 223,117 | ||||
Investing Activities: | |||||||
Investment securities available for sale: | |||||||
Purchases | (210,717 | ) | (1,062,031 | ) | |||
Proceeds from sales | — | 231,842 | |||||
Proceeds from prepayments and maturities | 419,500 | 471,460 | |||||
Investment securities held to maturity: | |||||||
Purchases | (14,917 | ) | (155,885 | ) | |||
Proceeds from prepayments and maturities | 32,810 | 8,958 | |||||
Purchases of other investments | (70,782 | ) | (2,552 | ) | |||
Proceeds from sales of other investments | 43,008 | 50,895 | |||||
Net change in loans and leases held for investment | (1,400,765 | ) | (1,126,555 | ) | |||
Cash paid for acquisition | (351,071 | ) | — | ||||
Purchases of premises and equipment, including equipment under operating leases | (39,453 | ) | (40,398 | ) | |||
Proceeds related to sale or settlement of other real estate owned | 30,311 | 35,549 | |||||
Proceeds from insured foreclosure claims | 115,040 | 164,237 | |||||
Other investing activities | 1,923 | (8,803 | ) | ||||
Net cash used in investing activities | (1,445,113 | ) | (1,433,283 | ) | |||
Financing Activities: | |||||||
Net increase in nonmaturity deposits | 1,085,006 | 520,003 | |||||
Net increase in time deposits | 459,775 | 91,844 | |||||
Net change in repurchase agreements | 484,565 | — | |||||
Decrease in short-term Federal Home Loan Bank (FHLB) advances | (470,000 | ) | (25,000 | ) | |||
Proceeds from long-term FHLB advances | 1,886,000 | 6,158 | |||||
Repayments of long-term FHLB advances | (333,500 | ) | (85,013 | ) | |||
Proceeds from issuance of common stock | 256,522 | 1,093 | |||||
Other financing activities | (8,706 | ) | (8,862 | ) | |||
Net cash provided by financing activities | 3,359,662 | 500,223 | |||||
Net change in cash and cash equivalents | 1,324,988 | (709,943 | ) | ||||
Cash and cash equivalents at beginning of period | 294,981 | 1,169,221 | |||||
Cash and cash equivalents at end of period | $ | 1,619,969 | $ | 459,278 |
• | All of the outstanding shares of common stock of EverBank Florida were converted into approximately 77,994,699 shares of EverBank Delaware common stock; |
• | All of the outstanding shares of Series B Preferred Stock of EverBank Florida were converted into 15,964,644 shares of EverBank Delaware common stock; |
• | As a result of the reincorporation of EverBank Florida in Delaware, the Company is now governed by the laws of the State of Delaware. |
Nine Months Ended | |||||||
September 30, | |||||||
2012 | 2011 | ||||||
Supplemental Schedules of Noncash Investing Activities: | |||||||
Loans transferred to foreclosure claims from loans held for investment | $ | 146,480 | $ | 172,805 | |||
Loans transferred to foreclosure claims from loans held for sale | 203,764 | 13,536 | |||||
Loans transferred to other real estate owned from loans held for investment | 32,100 | 50,251 | |||||
Loans transferred from held for sale to held for investment | 1,928,519 | 11,254 | |||||
Loans transferred from held for investment to held for sale | 94,650 | 779,190 | |||||
Additions of originated mortgage servicing assets for loans sold | 58,061 | 38,194 | |||||
Supplemental Schedules of Noncash Financing Activities: | |||||||
Conversion of preferred stock | $ | 135,585 | $ | — |
Recognized amounts of identifiable assets acquired and liabilities assumed: | |||
Loans | $ | 350,997 | |
Accrued interest and fees | 617 | ||
Total Assets Acquired | 351,614 | ||
Other liabilities | 543 | ||
Total Liabilities Assumed | 543 | ||
Total Identifiable Net Assets | $ | 351,071 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Carrying Amount | |||||||||||||||
September 30, 2012 | |||||||||||||||||||
Available for sale: | |||||||||||||||||||
Residential collateralized mortgage obligations (CMO) securities - agency | $ | 67 | $ | 6 | $ | — | $ | 73 | $ | 73 | |||||||||
Residential CMO securities - nonagency | 1,705,372 | 24,172 | 15,340 | 1,714,204 | 1,714,204 | ||||||||||||||
Residential mortgage-backed securities (MBS) - agency | 246 | 17 | — | 263 | 263 | ||||||||||||||
Asset-backed securities (ABS) | 10,551 | — | 2,775 | 7,776 | 7,776 | ||||||||||||||
Equity securities | 77 | 163 | — | 240 | 240 | ||||||||||||||
Total available for sale securities | $ | 1,716,313 | $ | 24,358 | $ | 18,115 | $ | 1,722,556 | $ | 1,722,556 | |||||||||
Held to maturity: | |||||||||||||||||||
Residential CMO securities - agency | $ | 132,946 | $ | 6,117 | $ | — | $ | 139,063 | $ | 132,946 | |||||||||
Residential MBS - agency | 32,871 | 2,339 | — | 35,210 | 32,871 | ||||||||||||||
Corporate securities | 4,987 | — | 2,032 | 2,955 | 4,987 | ||||||||||||||
Total held to maturity securities | $ | 170,804 | $ | 8,456 | $ | 2,032 | $ | 177,228 | $ | 170,804 | |||||||||
December 31, 2011 | |||||||||||||||||||
Available for sale: | |||||||||||||||||||
Residential CMO securities - agency | $ | 96 | $ | 8 | $ | — | $ | 104 | $ | 104 | |||||||||
Residential CMO securities - nonagency | 1,919,046 | 17,609 | 40,837 | 1,895,818 | 1,895,818 | ||||||||||||||
Residential MBS - agency | 317 | 21 | — | 338 | 338 | ||||||||||||||
Asset-backed securities | 10,573 | — | 3,096 | 7,477 | 7,477 | ||||||||||||||
Equity securities | 77 | 108 | — | 185 | 185 | ||||||||||||||
Total available for sale securities | $ | 1,930,109 | $ | 17,746 | $ | 43,933 | $ | 1,903,922 | $ | 1,903,922 | |||||||||
Held to maturity: | |||||||||||||||||||
Residential CMO securities - agency | $ | 159,882 | $ | 6,029 | $ | 78 | $ | 165,833 | $ | 159,882 | |||||||||
Residential MBS - agency | 19,132 | 1,464 | — | 20,596 | 19,132 | ||||||||||||||
Corporate securities | 10,504 | — | 2,583 | 7,921 | 10,504 | ||||||||||||||
Total held to maturity securities | $ | 189,518 | $ | 7,493 | $ | 2,661 | $ | 194,350 | $ | 189,518 |
Less Than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||
Residential CMO securities - nonagency | $ | 239,470 | $ | 4,422 | $ | 458,717 | $ | 10,918 | $ | 698,187 | $ | 15,340 | |||||||||||
Asset-backed securities | — | — | 7,776 | 2,775 | 7,776 | 2,775 | |||||||||||||||||
Corporate securities | — | — | 2,955 | 2,032 | 2,955 | 2,032 | |||||||||||||||||
Total debt securities | $ | 239,470 | $ | 4,422 | $ | 469,448 | $ | 15,725 | $ | 708,918 | $ | 20,147 | |||||||||||
December 31, 2011 | |||||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||
Residential CMO securities - nonagency | $ | 573,928 | $ | 16,646 | $ | 226,507 | $ | 24,191 | $ | 800,435 | $ | 40,837 | |||||||||||
Residential CMO securities - agency | 6,224 | 78 | — | — | 6,224 | 78 | |||||||||||||||||
Asset-backed securities | — | — | 7,477 | 3,096 | 7,477 | 3,096 | |||||||||||||||||
Corporate securities | — | — | 2,404 | 2,583 | 2,404 | 2,583 | |||||||||||||||||
Total debt securities | $ | 580,152 | $ | 16,724 | $ | 236,388 | $ | 29,870 | $ | 816,540 | $ | 46,594 |
Debt securities: | Impairment Related to Credit Loss | Impairment Related to All Other Factors | Total Impairment | ||||||||
Balance, January 1, 2011 | $ | 3,354 | $ | 502 | $ | 3,856 | |||||
Additional charges on securities for which OTTI was previously recognized | 685 | (499 | ) | 186 | |||||||
Reduction for securities on which a reduction in value was taken against earnings (1) | (4,039 | ) | — | (4,039 | ) | ||||||
Accretion of impairment related to all other factors | — | (3 | ) | (3 | ) | ||||||
Balance, September 30, 2011 | $ | — | $ | — | $ | — |
(1) | The value of these securities for which impairment is related to credit loss was written down to a zero value during 2011 reflecting that the Company does not anticipate the ability to collect cash flows on these investments at any point in the future. This reduction in value was taken through earnings and thus, is reflected in the rollforward as a reduction of the credit loss balance to zero. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Interest income on available for sale securities | $ | 17,875 | $ | 25,498 | $ | 55,474 | $ | 78,583 | |||||||
Interest income on held to maturity securities | 2,504 | 1,552 | 5,313 | 3,561 | |||||||||||
Other interest and dividend income | 500 | 151 | 1,340 | 634 | |||||||||||
$ | 20,879 | $ | 27,201 | $ | 62,127 | $ | 82,778 |
September 30, 2012 | December 31, 2011 | ||||||
Government insured pool buyouts | $ | 68,533 | $ | 1,939,114 | |||
Mortgage warehouse (carried at fair value) | 1,025,467 | 761,818 | |||||
Other | 309,205 | 24,354 | |||||
Total loans held for sale | $ | 1,403,205 | $ | 2,725,286 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Proceeds received from new securitizations | $ | 2,476,812 | $ | 1,218,760 | $ | 6,267,169 | $ | 3,271,796 | |||||||
Net fees paid to agencies | 14,741 | 8,182 | 42,403 | 25,903 | |||||||||||
Servicing fees collected | 4,883 | 2,266 | 8,086 | 4,301 | |||||||||||
Repurchased loans | 2,616 | 4,419 | 6,132 | 7,769 |
September 30, 2012 | December 31, 2011 | ||||||
Residential mortgages | $ | 6,807,399 | $ | 4,556,841 | |||
Commercial and commercial real estate | 2,315,494 | 1,165,384 | |||||
Lease financing receivables | 742,332 | 588,501 | |||||
Home equity lines | 183,692 | 200,112 | |||||
Consumer and credit card | 7,809 | 8,443 | |||||
Total loans and leases held for investment, net of discounts | 10,056,726 | 6,519,281 | |||||
Allowance for loan and lease losses | (76,469 | ) | (77,765 | ) | |||
Total loans and leases held for investment, net | $ | 9,980,257 | $ | 6,441,516 |
September 30, 2012 | December 31, 2011 | ||||||
Net purchased loan and lease discounts | $ | 188,924 | $ | 237,170 | |||
Net deferred loan and lease origination costs | 22,282 | 19,057 |
September 30, 2012 | September 30, 2011 | |||||||
Contractual payments receivable for acquired loans and leases at acquisition | $ | 218,750 | $ | 424,176 | ||||
Expected cash flows for acquired loans and leases at acquisition | 133,627 | 235,795 | ||||||
Basis in acquired loans and leases at acquisition | 117,579 | 218,500 |
Bank of Florida | Other Acquired Loans | Total | |||||||||
September 30, 2012 | |||||||||||
Carrying value, net of allowance | $ | 523,654 | $ | 584,508 | $ | 1,108,162 | |||||
Outstanding unpaid principal balance or contractual net investment | 576,200 | 607,979 | 1,184,179 | ||||||||
Allowance for loan and lease losses, beginning of year | 11,638 | 4,351 | 15,989 | ||||||||
Allowance for loan and lease losses, end of period | 16,006 | 5,175 | 21,181 |
Bank of Florida | Tygris | Other Acquired Loans | Total | ||||||||||||
December 31, 2011 | |||||||||||||||
Carrying value, net of allowance | $ | 621,116 | $ | — | $ | 522,071 | $ | 1,143,187 | |||||||
Outstanding unpaid principal balance or contractual net investment | 685,967 | — | 543,240 | 1,229,207 | |||||||||||
Allowance for loan and lease losses, beginning of year | 6,189 | 97 | 3,695 | 9,981 | |||||||||||
Allowance for loan and lease losses, end of year | 11,638 | — | 4,351 | 15,989 |
September 30, 2012 | Bank of Florida | Other Acquired Loans | Total | ||||||||||||
Balance, beginning of period | $ | 141,750 | $ | 65,973 | $ | 207,723 | |||||||||
Additions | — | 16,048 | 16,048 | ||||||||||||
Accretion | (26,943 | ) | (18,391 | ) | (45,334 | ) | |||||||||
Reclassifications from accretable yield | (9,441 | ) | (620 | ) | (10,061 | ) | |||||||||
Balance, end of period | $ | 105,366 | $ | 63,010 | $ | 168,376 | |||||||||
September 30, 2011 | Bank of Florida | Tygris | Other Acquired Loans | Total | |||||||||||
Balance, beginning of period | $ | 198,633 | $ | 9,745 | $ | 44,603 | $ | 252,981 | |||||||
Additions | — | — | 17,295 | 17,295 | |||||||||||
Accretion | (35,423 | ) | (2,976 | ) | (8,292 | ) | (46,691 | ) | |||||||
Reclassifications (from) to accretable yield | (8,246 | ) | 2,567 | 294 | (5,385 | ) | |||||||||
Transfer from loans held for investment to loans held for sale | — | — | (7,707 | ) | (7,707 | ) | |||||||||
Transfer to cost recovery | — | (6,678 | ) | — | (6,678 | ) | |||||||||
Balance, end of period | $ | 154,964 | $ | 2,658 | $ | 46,193 | $ | 203,815 |
Bank of Florida | Tygris | Total | |||||||||
September 30, 2012 | |||||||||||
Residential mortgages | $ | 65,319 | $ | — | $ | 65,319 | |||||
Commercial and commercial real estate | 485,910 | — | 485,910 | ||||||||
Lease financing receivables | — | 100,399 | 100,399 | ||||||||
Home equity lines | 18,101 | — | 18,101 | ||||||||
Consumer and credit card | 1,691 | — | 1,691 | ||||||||
Total recorded investment of covered loans and leases | $ | 571,021 | $ | 100,399 | $ | 671,420 | |||||
December 31, 2011 | |||||||||||
Residential mortgages | $ | 74,580 | $ | — | $ | 74,580 | |||||
Commercial and commercial real estate | 569,014 | — | 569,014 | ||||||||
Lease financing receivables | — | 176,125 | 176,125 | ||||||||
Home equity lines | 19,082 | — | 19,082 | ||||||||
Consumer and credit card | 2,345 | — | 2,345 | ||||||||
Total recorded investment of covered loans and leases | $ | 665,021 | $ | 176,125 | $ | 841,146 |
Three Months Ended September 30, 2012 | |||||||||||||||||||||||
Residential Mortgages | Commercial and Commercial Real Estate | Lease Financing Receivables | Home Equity Lines | Consumer and Credit Card | Total | ||||||||||||||||||
Balance, beginning of period | $ | 37,719 | $ | 32,050 | $ | 4,160 | $ | 3,288 | $ | 176 | $ | 77,393 | |||||||||||
Provision for loan and lease losses | (1,277 | ) | 3,271 | 917 | 1,400 | 48 | 4,359 | ||||||||||||||||
Charge-offs | (3,868 | ) | (2,636 | ) | (805 | ) | (1,215 | ) | (61 | ) | (8,585 | ) | |||||||||||
Recoveries | 52 | 3,023 | 159 | 52 | 16 | 3,302 | |||||||||||||||||
Balance, end of period | $ | 32,626 | $ | 35,708 | $ | 4,431 | $ | 3,525 | $ | 179 | $ | 76,469 | |||||||||||
Three Months Ended September 30, 2011 | |||||||||||||||||||||||
Residential Mortgages | Commercial and Commercial Real Estate | Lease Financing Receivables | Home Equity Lines | Consumer and Credit Card | Total | ||||||||||||||||||
Balance, beginning of period | $ | 54,472 | $ | 28,295 | $ | 1,806 | $ | 4,612 | $ | 24 | $ | 89,209 | |||||||||||
Transfers to loans held for sale | (387 | ) | — | — | — | — | (387 | ) | |||||||||||||||
Provision for loan and lease losses | 9,538 | 844 | 1,943 | (273 | ) | 206 | 12,258 | ||||||||||||||||
Charge-offs | (9,778 | ) | (6,058 | ) | (1,473 | ) | (763 | ) | (41 | ) | (18,113 | ) | |||||||||||
Recoveries | 12 | 792 | 38 | 2 | 16 | 860 | |||||||||||||||||
Balance, end of period | $ | 53,857 | $ | 23,873 | $ | 2,314 | $ | 3,578 | $ | 205 | $ | 83,827 |
Nine Months Ended September 30, 2012 | |||||||||||||||||||||||
Residential Mortgages | Commercial and Commercial Real Estate | Lease Financing Receivables | Home Equity Lines | Consumer and Credit Card | Total | ||||||||||||||||||
Balance, beginning of period | $ | 43,454 | $ | 28,209 | $ | 3,766 | $ | 2,186 | $ | 150 | $ | 77,765 | |||||||||||
Provision for loan and lease losses | 3,516 | 10,537 | 3,344 | 3,978 | 96 | 21,471 | |||||||||||||||||
Charge-offs | (14,701 | ) | (6,640 | ) | (2,903 | ) | (2,807 | ) | (112 | ) | (27,163 | ) | |||||||||||
Recoveries | 357 | 3,602 | 224 | 168 | 45 | 4,396 | |||||||||||||||||
Balance, end of period | $ | 32,626 | $ | 35,708 | $ | 4,431 | $ | 3,525 | $ | 179 | $ | 76,469 | |||||||||||
Nine Months Ended September 30, 2011 | |||||||||||||||||||||||
Residential Mortgages | Commercial and Commercial Real Estate | Lease Financing Receivables | Home Equity Lines | Consumer and Credit Card | Total | ||||||||||||||||||
Balance, beginning of period | $ | 46,584 | $ | 33,490 | $ | 2,454 | $ | 10,907 | $ | 254 | $ | 93,689 | |||||||||||
Change in estimate | 10,154 | (682 | ) | (802 | ) | (6,323 | ) | (440 | ) | 1,907 | |||||||||||||
Transfers to loans held for sale | (387 | ) | — | — | — | — | (387 | ) | |||||||||||||||
Provision for loan and lease losses | 21,905 | 6,657 | 5,212 | 3,060 | 551 | 37,385 | |||||||||||||||||
Charge-offs | (24,422 | ) | (16,971 | ) | (4,601 | ) | (4,079 | ) | (181 | ) | (50,254 | ) | |||||||||||
Recoveries | 23 | 1,379 | 51 | 13 | 21 | 1,487 | |||||||||||||||||
Balance, end of period | $ | 53,857 | $ | 23,873 | $ | 2,314 | $ | 3,578 | $ | 205 | $ | 83,827 |
Allowance for Loan and Lease Losses | |||||||||||||||
Individually Evaluated for Impairment | Collectively Evaluated for Impairment | ACI Loans | Total | ||||||||||||
September 30, 2012 | |||||||||||||||
Residential mortgages | $ | 8,145 | $ | 19,306 | $ | 5,175 | $ | 32,626 | |||||||
Commercial and commercial real estate | 4,822 | 14,880 | 16,006 | 35,708 | |||||||||||
Lease financing receivables | — | 4,431 | — | 4,431 | |||||||||||
Home equity lines | — | 3,525 | — | 3,525 | |||||||||||
Consumer and credit card | — | 179 | — | 179 | |||||||||||
Total allowance for loan and lease losses | $ | 12,967 | $ | 42,321 | $ | 21,181 | $ | 76,469 |
Loans and Leases Held for Investment at Recorded Investment | |||||||||||||||
Individually Evaluated for Impairment | Collectively Evaluated for Impairment | ACI Loans | Total | ||||||||||||
September 30, 2012 | |||||||||||||||
Residential mortgages | $ | 87,571 | $ | 6,057,996 | $ | 661,832 | $ | 6,807,399 | |||||||
Commercial and commercial real estate | 101,955 | 1,746,028 | 467,511 | 2,315,494 | |||||||||||
Lease financing receivables | — | 742,332 | — | 742,332 | |||||||||||
Home equity lines | — | 183,692 | — | 183,692 | |||||||||||
Consumer and credit card | — | 7,809 | — | 7,809 | |||||||||||
Total loans and leases held for investment | $ | 189,526 | $ | 8,737,857 | $ | 1,129,343 | $ | 10,056,726 | |||||||
Allowance for Loan and Lease Losses | |||||||||||||||
Individually Evaluated for Impairment | Collectively Evaluated for Impairment | ACI Loans | Total | ||||||||||||
December 31, 2011 | |||||||||||||||
Residential mortgages | $ | 7,436 | $ | 30,554 | $ | 5,464 | $ | 43,454 | |||||||
Commercial and commercial real estate | 6,021 | 11,663 | 10,525 | 28,209 | |||||||||||
Lease financing receivables | — | 3,766 | — | 3,766 | |||||||||||
Home equity lines | — | 2,186 | — | 2,186 | |||||||||||
Consumer and credit card | — | 150 | — | 150 | |||||||||||
Total allowance for loan and lease losses | $ | 13,457 | $ | 48,319 | $ | 15,989 | $ | 77,765 | |||||||
Loans and Leases Held for Investment at Recorded Investment | |||||||||||||||
Individually Evaluated for Impairment | Collectively Evaluated for Impairment | ACI Loans | Total | ||||||||||||
December 31, 2011 | |||||||||||||||
Residential mortgages | $ | 90,927 | $ | 3,852,119 | $ | 613,795 | $ | 4,556,841 | |||||||
Commercial and commercial real estate | 142,360 | 477,643 | 545,381 | 1,165,384 | |||||||||||
Lease financing receivables | — | 588,501 | — | 588,501 | |||||||||||
Home equity lines | — | 200,112 | — | 200,112 | |||||||||||
Consumer and credit card | — | 8,443 | — | 8,443 | |||||||||||
Total loans and leases held for investment | $ | 233,287 | $ | 5,126,818 | $ | 1,159,176 | $ | 6,519,281 |
Non-performing | |||||||||||||||||||
Performing | Accrual | Nonaccrual | Total | ||||||||||||||||
September 30, 2012 | |||||||||||||||||||
Residential mortgages: | |||||||||||||||||||
Residential | $ | 4,055,948 | $ | — | $ | 71,073 | $ | 4,127,021 | |||||||||||
Government insured pool buyouts (1) | 1,374,125 | 1,306,253 | — | 2,680,378 | |||||||||||||||
Lease financing receivables | 740,313 | — | 2,019 | 742,332 | |||||||||||||||
Home equity lines | 179,200 | — | 4,492 | 183,692 | |||||||||||||||
Consumer and credit card | 7,329 | — | 480 | 7,809 | |||||||||||||||
Total | $ | 6,356,915 | $ | 1,306,253 | $ | 78,064 | $ | 7,741,232 | |||||||||||
Pass | Special Mention | Substandard | Doubtful | Total | |||||||||||||||
September 30, 2012 | |||||||||||||||||||
Commercial and commercial real estate: | |||||||||||||||||||
Commercial | $ | 1,208,730 | $ | 12 | $ | 9,897 | $ | 4,759 | $ | 1,223,398 | |||||||||
Commercial real estate | 756,554 | 65,327 | 270,215 | — | 1,092,096 | ||||||||||||||
Total commercial and commercial real estate | $ | 1,965,284 | $ | 65,339 | $ | 280,112 | $ | 4,759 | $ | 2,315,494 | |||||||||
Non-performing | |||||||||||||||||||
Performing | Accrual | Nonaccrual | Total | ||||||||||||||||
December 31, 2011 | |||||||||||||||||||
Residential mortgages: | |||||||||||||||||||
Residential | $ | 3,655,884 | $ | — | $ | 71,658 | $ | 3,727,542 | |||||||||||
Government insured pool buyouts (1) | 649,391 | 179,908 | — | 829,299 | |||||||||||||||
Lease financing receivables | 586,116 | — | 2,385 | 588,501 | |||||||||||||||
Home equity lines | 195,861 | — | 4,251 | 200,112 | |||||||||||||||
Consumer and credit card | 8,024 | — | 419 | 8,443 | |||||||||||||||
Total | $ | 5,095,276 | $ | 179,908 | $ | 78,713 | $ | 5,353,897 |
Pass | Special Mention | Substandard | Doubtful | Total | |||||||||||||||
December 31, 2011 | |||||||||||||||||||
Commercial and commercial real estate: | |||||||||||||||||||
Commercial | $ | 151,473 | $ | 1,527 | $ | 18,279 | $ | 4,136 | $ | 175,415 | |||||||||
Commercial real estate | 639,883 | 78,385 | 270,656 | 1,045 | 989,969 | ||||||||||||||
Total commercial and commercial real estate | $ | 791,356 | $ | 79,912 | $ | 288,935 | $ | 5,181 | $ | 1,165,384 |
(1) | Non-performing government insured pool buyouts represent loans that are 90 days or greater past due but remain on accrual status as the interest earned is insured and thus collectible from the insuring governmental agency. |
30-59 Days Past Due | 60-89 Days Past Due | 90 Days and Greater Past Due | Total Past Due | Current | Total Loans Held for Investment Excluding ACI | ||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||
Residential mortgages: | |||||||||||||||||||||||
Residential | $ | 13,769 | $ | 7,258 | $ | 71,073 | $ | 92,100 | $ | 3,917,295 | $ | 4,009,395 | |||||||||||
Government insured pool buyouts (1) (2) | 118,153 | 68,832 | 1,306,253 | 1,493,238 | 642,934 | 2,136,172 | |||||||||||||||||
Commercial and commercial real estate: | |||||||||||||||||||||||
Commercial | — | — | 4,051 | 4,051 | 1,200,624 | 1,204,675 | |||||||||||||||||
Commercial real estate | 2,980 | 6,770 | 23,947 | 33,697 | 609,611 | 643,308 | |||||||||||||||||
Lease financing receivables | 4,017 | 1,060 | 770 | 5,847 | 736,485 | 742,332 | |||||||||||||||||
Home equity lines | 3,634 | 745 | 4,492 | 8,871 | 174,821 | 183,692 | |||||||||||||||||
Consumer and credit card | — | 22 | 173 | 195 | 7,614 | 7,809 | |||||||||||||||||
Total loans and leases held for investment | $ | 142,553 | $ | 84,687 | $ | 1,410,759 | $ | 1,637,999 | $ | 7,289,384 | $ | 8,927,383 | |||||||||||
December 31, 2011 | |||||||||||||||||||||||
Residential mortgages: | |||||||||||||||||||||||
Residential | $ | 16,966 | $ | 12,673 | $ | 71,658 | $ | 101,297 | $ | 3,487,525 | $ | 3,588,822 | |||||||||||
Government insured pool buyouts (1) | 23,396 | 17,909 | 179,908 | 221,213 | 133,011 | 354,224 | |||||||||||||||||
Commercial and commercial real estate: | |||||||||||||||||||||||
Commercial | — | 32 | 10,751 | 10,783 | 137,216 | 147,999 | |||||||||||||||||
Commercial real estate | 2,117 | 4,450 | 48,611 | 55,178 | 416,826 | 472,004 | |||||||||||||||||
Lease financing receivables | 3,394 | 971 | 962 | 5,327 | 583,174 | 588,501 | |||||||||||||||||
Home equity lines | 1,953 | 498 | 4,251 | 6,702 | 193,410 | 200,112 | |||||||||||||||||
Consumer and credit card | 106 | 50 | 233 | 389 | 8,054 | 8,443 | |||||||||||||||||
Total loans and leases held for investment | $ | 47,932 | $ | 36,583 | $ | 316,374 | $ | 400,889 | $ | 4,959,216 | $ | 5,360,105 |
(1) | Government insured pool buyouts remain on accrual status after 90 days as the interest earned is collectible from the insuring governmental agency. |
(2) | Government insured pool buyouts past due increased from December 31, 2011 primarily due to the transfer of loans from held for sale to held for investment categories during the third quarter of 2012. See Note 5 for more information on the transfer performed. |
September 30, 2012 | December 31, 2011 | ||||||||||||||||||||||
Unpaid Principal Balance | Recorded Investment | Related Allowance | Unpaid Principal Balance | Recorded Investment | Related Allowance | ||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||
Residential mortgages: | |||||||||||||||||||||||
Residential | $ | 70,217 | $ | 68,036 | $ | 8,145 | $ | 79,516 | $ | 74,189 | $ | 7,436 | |||||||||||
Commercial and commercial real estate: | |||||||||||||||||||||||
Commercial | — | — | — | 13,787 | 4,697 | 779 | |||||||||||||||||
Commercial real estate | 47,960 | 37,905 | 4,822 | 50,033 | 37,189 | 5,242 | |||||||||||||||||
Total impaired loans with an allowance recorded | $ | 118,177 | $ | 105,941 | $ | 12,967 | $ | 143,336 | $ | 116,075 | $ | 13,457 | |||||||||||
Without a related allowance recorded: | |||||||||||||||||||||||
Residential mortgages: | |||||||||||||||||||||||
Residential | $ | 24,235 | $ | 19,535 | $ | — | $ | 16,738 | $ | 16,738 | $ | — | |||||||||||
Commercial and commercial real estate: | |||||||||||||||||||||||
Commercial | 18,872 | 8,165 | — | 10,650 | 9,814 | — | |||||||||||||||||
Commercial real estate | 73,179 | 55,885 | — | 122,385 | 90,661 | — | |||||||||||||||||
Total impaired loans without an allowance recorded | $ | 116,286 | $ | 83,585 | $ | — | $ | 149,773 | $ | 117,213 | $ | — |
Three Months Ended | |||||||||||||||
September 30, 2012 | September 30, 2011 | ||||||||||||||
Average Investment | Interest Income Recognized | Average Investment | Interest Income Recognized | ||||||||||||
With and without a related allowance recorded: | |||||||||||||||
Residential mortgages: | |||||||||||||||
Residential | $ | 88,681 | $ | 562 | $ | 89,649 | $ | 119 | |||||||
Commercial and commercial real estate: | |||||||||||||||
Commercial | 8,133 | 20 | 7,604 | 215 | |||||||||||
Commercial real estate | 96,579 | 916 | 125,667 | 435 | |||||||||||
Total impaired loans | $ | 193,393 | $ | 1,498 | $ | 222,920 | $ | 769 |
Nine Months Ended | |||||||||||||||
September 30, 2012 | September 30, 2011 | ||||||||||||||
Average Investment | Interest Income Recognized | Average Investment | Interest Income Recognized | ||||||||||||
With and without a related allowance recorded: | |||||||||||||||
Residential mortgages: | |||||||||||||||
Residential | $ | 90,243 | $ | 1,834 | $ | 85,741 | $ | 1,284 | |||||||
Commercial and commercial real estate: | |||||||||||||||
Commercial | 9,909 | 39 | 7,671 | 238 | |||||||||||
Commercial real estate | 109,838 | 1,678 | 153,232 | 1,385 | |||||||||||
Total impaired loans | $ | 209,990 | $ | 3,551 | $ | 246,644 | $ | 2,907 |
September 30, 2012 | December 31, 2011 | ||||||||||||||
Nonaccrual Status | Greater than 90 Days Past Due and Accruing | Nonaccrual Status | Greater than 90 Days Past Due and Accruing | ||||||||||||
Residential mortgages: | |||||||||||||||
Residential | $ | 71,073 | $ | — | $ | 71,658 | $ | — | |||||||
Government insured pool buyouts | — | 1,306,253 | — | 179,908 | |||||||||||
Commercial and commercial real estate: | |||||||||||||||
Commercial | 6,352 | — | 12,294 | — | |||||||||||
Commercial real estate | 79,414 | — | 86,772 | — | |||||||||||
Lease financing receivables | 2,019 | — | 2,385 | — | |||||||||||
Home equity lines | 4,492 | — | 4,251 | — | |||||||||||
Consumer and credit card | 480 | — | 419 | — | |||||||||||
Total nonaccrual loans and leases | $ | 163,830 | $ | 1,306,253 | $ | 177,779 | $ | 179,908 |
Three Months Ended September 30, 2012 | Nine Months Ended September 30, 2012 | ||||||||||||||||||||
Number of Contracts | Pre- modification Recorded Investment | Post- modification Recorded Investment | Number of Contracts | Pre- modification Recorded Investment | Post- modification Recorded Investment | ||||||||||||||||
Residential mortgages: | |||||||||||||||||||||
Residential | 9 | $ | 3,429 | $ | 3,432 | 42 | $ | 17,136 | $ | 17,158 | |||||||||||
Commercial and commercial real estate: | |||||||||||||||||||||
Commercial | 1 | 43 | 43 | 5 | 2,951 | 2,951 | |||||||||||||||
Commercial real estate | 1 | 3,148 | 3,148 | 14 | 23,722 | 23,722 | |||||||||||||||
Total | 11 | $ | 6,620 | $ | 6,623 | 61 | $ | 43,809 | $ | 43,831 | |||||||||||
Three Months Ended September 30, 2011 | Nine Months Ended September 30, 2011 | ||||||||||||||||||||
Number of Contracts | Pre- modification Recorded Investment | Post- modification Recorded Investment | Number of Contracts | Pre- modification Recorded Investment | Post- modification Recorded Investment | ||||||||||||||||
Residential mortgages: | |||||||||||||||||||||
Residential | 36 | $ | 15,761 | $ | 15,802 | 115 | $ | 49,356 | $ | 49,447 | |||||||||||
Commercial and commercial real estate: | |||||||||||||||||||||
Commercial | 1 | 192 | 192 | 3 | 3,034 | 3,034 | |||||||||||||||
Commercial real estate | 2 | 1,199 | 1,199 | 15 | 10,615 | 10,615 | |||||||||||||||
Total | 39 | $ | 17,152 | $ | 17,193 | 133 | $ | 63,005 | $ | 63,096 |
Three Months Ended September 30, 2012 | Nine Months Ended September 30, 2012 | ||||||||||||
Number of Contracts | Recorded Investment | Number of Contracts | Recorded Investment | ||||||||||
Residential mortgages: | |||||||||||||
Residential | 2 | $ | 883 | 6 | $ | 3,107 | |||||||
Total | 2 | $ | 883 | 6 | $ | 3,107 | |||||||
Three Months Ended September 30, 2011 | Nine Months Ended September 30, 2011 | ||||||||||||
Number of Contracts | Recorded Investment | Number of Contracts | Recorded Investment | ||||||||||
Residential mortgages: | |||||||||||||
Residential | 9 | $ | 3,824 | 19 | $ | 8,078 | |||||||
Commercial and commercial real estate: | |||||||||||||
Commercial | 1 | 966 | 2 | 3,584 | |||||||||
Commercial real estate | 5 | 4,861 | 5 | 4,861 | |||||||||
Total | 15 | $ | 9,651 | 26 | $ | 16,523 |
September 30, 2012 | December 31, 2011 | ||||||
Loan Type: | |||||||
Residential mortgages | $ | 87,571 | $ | 90,927 | |||
Commercial and commercial real estate | 68,365 | 61,481 | |||||
Total recorded investment of TDRs | $ | 155,936 | $ | 152,408 | |||
Accrual Status: | |||||||
Current | $ | 75,842 | $ | 85,905 | |||
30-89 days past-due accruing | 6,570 | 6,723 | |||||
90+ days past-due accruing | 246 | — | |||||
Nonaccrual | 73,278 | 59,780 | |||||
Total recorded investment of TDRs | $ | 155,936 | $ | 152,408 | |||
TDRs classified as impaired loans | $ | 155,936 | $ | 152,408 | |||
Valuation allowance on TDRs | 10,949 | 9,743 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Balance, beginning of period | $ | 415,962 | $ | 553,319 | $ | 489,496 | $ | 573,196 | |||||||
Originated servicing rights capitalized upon sale of loans | 21,034 | 11,537 | 58,061 | 38,194 | |||||||||||
Amortization | (36,292 | ) | (23,369 | ) | (99,773 | ) | (67,586 | ) | |||||||
Increase in valuation allowance, net | (18,229 | ) | (20,684 | ) | (63,508 | ) | (20,684 | ) | |||||||
Other | (702 | ) | (975 | ) | (2,503 | ) | (3,292 | ) | |||||||
Balance, end of period | $ | 381,773 | $ | 519,828 | $ | 381,773 | $ | 519,828 | |||||||
Valuation allowance: | |||||||||||||||
Balance, beginning of period | $ | 84,734 | $ | — | $ | 39,455 | $ | — | |||||||
Increase in valuation allowance | 21,735 | 20,684 | 67,014 | 20,684 | |||||||||||
Recoveries | (3,506 | ) | — | (3,506 | ) | — | |||||||||
Balance, end of period | $ | 102,963 | $ | 20,684 | $ | 102,963 | $ | 20,684 |
Three Months Ended September 30, 2012 | Nine Months Ended September 30, 2012 | ||||||||||
Average discount rates | 8.99% | — | 9.75% | 8.60% | — | 9.75% | |||||
Expected prepayment speeds | 13.23% | — | 14.99% | 10.13% | — | 14.99% | |||||
Weighted-average life in years | 5.21 | — | 5.72 | 5.21 | — | 6.70 |
Three Months Ended September 30, 2011 | Nine Months Ended September 30, 2011 | ||||||||||
Average discount rates | 8.52% | — | 9.47% | 8.04% | — | 9.20% | |||||
Expected prepayment speeds | 11.30% | — | 13.69% | 7.33% | — | 15.97% | |||||
Weighted-average life in years | 5.48 | — | 6.03 | 5.05 | — | 8.14 |
September 30, 2012 | December 31, 2011 | ||||||
Unpaid principal balance | $ | 43,825,000 | $ | 47,818,000 | |||
Gross weighted-average coupon | 4.74 | % | 4.98 | % | |||
Weighted-average servicing fee | 0.30 | % | 0.31 | % | |||
Expected prepayment speed (1) | 14.42 | % | 12.74 | % |
September 30, 2012 | December 31, 2011 | ||||||
Prepayment Rate | |||||||
10% adverse rate change | $ | 23,332 | $ | 26,955 | |||
20% adverse rate change | 44,660 | 51,872 | |||||
Discount Rate | |||||||
10% adverse rate change | 13,322 | 18,306 | |||||
20% adverse rate change | 25,741 | 35,336 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Contractually specified service fees, net | $ | 32,255 | $ | 37,973 | $ | 101,326 | $ | 113,586 | |||||||
Other ancillary fees | 9,413 | 9,867 | 27,279 | 28,872 | |||||||||||
Other | 673 | 550 | 1,775 | 1,565 | |||||||||||
$ | 42,341 | $ | 48,390 | $ | 130,380 | $ | 144,023 |
September 30, 2012 | December 31, 2011 | |||||||
FHLB advances, including unamortized premium of $419 and $1,199, respectively | $ | 2,319,205 | $ | 1,237,485 | ||||
Securities sold under agreements to repurchase, including unamortized premium of $157 and $394, respectively | 504,722 | 20,394 | ||||||
$ | 2,823,927 | $ | 1,257,879 |
September 30, 2012 | December 31, 2011 | |||||||
Fixed-rate advances with a weighted-average interest rate of 2.10% and 2.45%, respectively | $ | 2,301,286 | $ | 846,786 | ||||
Convertible advances with a weighted-average fixed interest rate of 4.24% and 4.42%, respectively | 17,000 | 44,000 | ||||||
Overnight advances with a weighted-average floating interest rate of 0.36% and 0.36%, respectively | 500 | 345,500 | ||||||
$ | 2,318,786 | $ | 1,236,286 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Net income | $ | 22,178 | $ | 7,758 | $ | 45,196 | $ | 38,969 | |||||||
Less distributed and undistributed net income allocated to participating preferred stock | — | (1,598 | ) | (8,564 | ) | (8,420 | ) | ||||||||
Net income allocated to common shareholders | $ | 22,178 | $ | 6,160 | $ | 36,632 | $ | 30,549 | |||||||
(Units in Thousands) | |||||||||||||||
Average common shares outstanding | 118,038 | 74,996 | 98,387 | 74,842 | |||||||||||
Common share equivalents: | |||||||||||||||
Stock options | 1,468 | 2,346 | 1,610 | 2,422 | |||||||||||
Nonvested stock | 85 | 367 | 271 | 403 | |||||||||||
Average common shares outstanding, assuming dilution | 119,591 | 77,709 | 100,268 | 77,667 | |||||||||||
Basic earnings per share | $ | 0.19 | $ | 0.08 | $ | 0.37 | $ | 0.41 | |||||||
Diluted earnings per share | $ | 0.19 | $ | 0.08 | $ | 0.37 | $ | 0.40 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||
Stock Options | 5,905,837 | 3,395,377 | 5,905,837 | 3,395,377 |
Fair Value | |||||||||||
Notional Amount | Asset Derivatives | Liability Derivatives | |||||||||
September 30, 2012 | |||||||||||
Qualifying hedge contracts accounted for under ASC 815, Derivatives and Hedging | |||||||||||
Fair value hedges: | |||||||||||
Interest rate swaps | $ | 31,807 | $ | — | $ | 656 | |||||
Cash flow hedges: | |||||||||||
Forward interest rate swaps | 853,000 | — | 130,431 | ||||||||
Derivatives not designated as hedging instruments under ASC 815, Derivatives and Hedging | |||||||||||
Freestanding derivatives: | |||||||||||
Interest rate lock commitments | 2,132,911 | 31,749 | 239 | ||||||||
Forward and optional forward sales commitments | 2,726,095 | 10,716 | 49,730 | ||||||||
Foreign exchange contracts | 978,459 | 12,756 | 1,503 | ||||||||
Equity, foreign currency, commodity and metals indexed options | 194,725 | 16,699 | — | ||||||||
Options embedded in customer deposits | 193,708 | — | 16,460 | ||||||||
Indemnification assets | 319,753 | 9,763 | — | ||||||||
Total freestanding derivatives | 81,683 | 67,932 | |||||||||
Total derivatives | $ | 81,683 | $ | 199,019 |
Fair Value | |||||||||||
Notional Amount | Asset Derivatives | Liability Derivatives | |||||||||
December 31, 2011 | |||||||||||
Qualifying hedge contracts accounted for under ASC 815, Derivatives and Hedging | |||||||||||
Cash flow hedges: | |||||||||||
Forward interest rate swaps | $ | 1,153,000 | $ | — | $ | 133,897 | |||||
Derivatives not designated as hedging instruments under ASC 815, Derivatives and Hedging | |||||||||||
Freestanding derivatives: | |||||||||||
Interest rate lock commitments | 828,866 | 8,059 | 126 | ||||||||
Forward sales commitments | 1,278,899 | 1,140 | 13,340 | ||||||||
Interest rate swaps | 18,000 | — | 831 | ||||||||
Foreign exchange contracts | 1,114,838 | 9,494 | 16,293 | ||||||||
Equity, foreign currency, commodity and metals indexed options | 220,465 | 20,460 | — | ||||||||
Options embedded in customer deposits | 218,514 | — | 20,192 | ||||||||
Indemnification assets | 482,094 | 8,540 | — | ||||||||
Total freestanding derivatives | 47,693 | 50,782 | |||||||||
Total derivatives | $ | 47,693 | $ | 184,679 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Loss on fair value hedge, recognized in interest income | $ | (149 | ) | $ | — | $ | (149 | ) | $ | — | |||||
Gain on hedged items, recognized in interest income | 155 | — | 155 | — | |||||||||||
Ineffectiveness, recognized in interest income | $ | 6 | $ | — | $ | 6 | $ | — |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Gains (losses), net of tax, recognized in AOCI (effective portion) | $ | 9,820 | $ | (51,402 | ) | $ | 2,290 | $ | (63,693 | ) | |||||
Reclassifications to interest expense (effective portion) | (3,112 | ) | (1,801 | ) | (6,786 | ) | (5,598 | ) | |||||||
Pretax losses recognized in interest expense (ineffective portion) | 270 | 277 | — | 267 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Freestanding derivatives (economic hedges) | |||||||||||||||
Gains (losses) on interest rate contracts (1) | $ | (49,733 | ) | $ | (32,887 | ) | $ | (97,921 | ) | $ | (53,569 | ) | |||
Gains (losses) on indemnification assets (2) | 441 | — | 1,285 | (8,680 | ) | ||||||||||
Other | 27 | (16 | ) | 424 | (60 | ) | |||||||||
Total | $ | (49,265 | ) | $ | (32,903 | ) | $ | (96,212 | ) | $ | (62,309 | ) |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
September 30, 2012 | |||||||||||||||
Financial assets: | |||||||||||||||
Available for sale securities: | |||||||||||||||
Residential CMO securities - agency | $ | — | $ | 73 | $ | — | $ | 73 | |||||||
Residential CMO securities - nonagency | — | 1,714,204 | — | 1,714,204 | |||||||||||
Residential MBS - agency | — | 263 | — | 263 | |||||||||||
Asset-backed securities | — | 7,776 | — | 7,776 | |||||||||||
Equity securities | 240 | — | — | 240 | |||||||||||
Total available for sale securities | 240 | 1,722,316 | — | 1,722,556 | |||||||||||
Loans held for sale | — | 1,025,467 | — | 1,025,467 | |||||||||||
Financial liabilities: | |||||||||||||||
FDIC clawback liability | — | — | 49,341 | 49,341 | |||||||||||
Derivative financial instruments: | |||||||||||||||
Fair value hedges (Note 13) | — | (656 | ) | — | (656 | ) | |||||||||
Cash flow hedges (Note 13) | — | (130,431 | ) | — | (130,431 | ) | |||||||||
Freestanding derivatives (Note 13) | 11,253 | (7,265 | ) | 9,763 | 13,751 |
December 31, 2011 | |||||||||||||||
Financial assets: | |||||||||||||||
Available for sale securities: | |||||||||||||||
Residential CMO securities - agency | $ | — | $ | 104 | $ | — | $ | 104 | |||||||
Residential CMO securities - nonagency | — | 1,895,818 | — | 1,895,818 | |||||||||||
Residential MBS - agency | — | 338 | — | 338 | |||||||||||
Asset-backed securities | — | 7,477 | — | 7,477 | |||||||||||
Equity securities | 185 | — | — | 185 | |||||||||||
Total available for sale securities | 185 | 1,903,737 | — | 1,903,922 | |||||||||||
Loans held for sale | — | 761,818 | 15,462 | 777,280 | |||||||||||
Financial liabilities: | |||||||||||||||
FDIC clawback liability | — | — | 43,317 | 43,317 | |||||||||||
Derivative financial instruments: | |||||||||||||||
Cash flow hedges (Note 13) | — | (133,897 | ) | — | (133,897 | ) | |||||||||
Freestanding derivatives (Note 13) | (6,799 | ) | (4,830 | ) | 8,540 | (3,089 | ) |
Loans Held for Sale (1) | FDIC Clawback Liability (2) | Freestanding Derivatives (3) | |||||||||
Three Months Ended September 30, 2012 | |||||||||||
Balance, beginning of period | $ | — | $ | (46,738 | ) | $ | 9,383 | ||||
Settlements | — | — | (61 | ) | |||||||
Gains (losses) included in earnings for the period | — | (2,603 | ) | 441 | |||||||
Balance, end of period | $ | — | $ | (49,341 | ) | $ | 9,763 | ||||
Change in unrealized net gains (losses) included in net income related to assets and liabilities still held as of September 30, 2012 | $ | — | $ | (2,603 | ) | $ | 441 | ||||
Three Months Ended September 30, 2011 | |||||||||||
Balance, beginning of period | $ | 16,106 | $ | (39,628 | ) | $ | 224 | ||||
Purchases | — | — | 1,214 | ||||||||
Issues | — | — | 7,383 | ||||||||
Settlements | (95 | ) | — | — | |||||||
Gains (losses) included in earnings for the period | 165 | (1,476 | ) | (13 | ) | ||||||
Balance, end of period | $ | 16,176 | $ | (41,104 | ) | $ | 8,808 | ||||
Change in unrealized net gains (losses) included in net income related to assets and liabilities still held as of September 30, 2011 | $ | 165 | $ | (1,476 | ) | $ | (12 | ) |
Nine Months Ended September 30, 2012 | |||||||||||
Balance, beginning of period | $ | 15,462 | $ | (43,317 | ) | $ | 8,539 | ||||
Settlements | (623 | ) | — | (61 | ) | ||||||
Transfers out of Level 3 | (14,946 | ) | — | — | |||||||
Gains (losses) included in earnings for the period | 107 | (6,024 | ) | 1,285 | |||||||
Balance, end of period | $ | — | $ | (49,341 | ) | $ | 9,763 | ||||
Change in unrealized net gains (losses) included in net income related to assets and liabilities still held as of September 30, 2012 | $ | 107 | $ | (6,024 | ) | $ | 1,285 | ||||
Nine Months Ended September 30, 2011 | |||||||||||
Balance, beginning of period | $ | 15,136 | $ | (39,311 | ) | $ | 8,949 | ||||
Purchases | — | — | 5,289 | ||||||||
Issues | — | — | 3,269 | ||||||||
Settlements | (232 | ) | — | 38 | |||||||
Gains (losses) included in earnings for the period | 1,272 | (1,793 | ) | (8,737 | ) | ||||||
Balance, end of period | $ | 16,176 | $ | (41,104 | ) | $ | 8,808 | ||||
Change in unrealized net gains (losses) included in net income related to assets and liabilities still held as of September 30, 2011 | $ | 1,272 | $ | (1,793 | ) | $ | (8,451 | ) |
(1) | Net realized and unrealized gains (losses) on loans held for sale are included in gain on sale of loans. |
(2) | Changes in fair value of the FDIC clawback liability are recorded in general and administrative expense. |
(3) | With the exception of changes in the indemnification assets, net realized and unrealized gains (losses) on freestanding derivatives are included in other noninterest income. Changes in the fair value of the indemnification assets are recorded in general and administrative expense. |
Level 3 Assets | Fair Value | Valuation Technique | Unobservable Inputs | Significant Unobservable Input Value | |||||||||
FDIC clawback liability | $ | 49,341 | Discounted cash flow | Servicing cost | $6,725 | - | $14,478 | (1) | |||||
Indemnification asset | $ | 9,763 | Discounted cash flow | Reinstatement rate | 5.59% | - | 70.74% | (2) | |||||
Loss duration (in months) | 8 | - | 47 | (2) | |||||||||
Loss severity (3) | 2.96% | - | 15.91% | (2) |
(1) | The range represents the sum of the highest and lowest servicing cost values for all tranches that we use in our valuation process. The servicing cost represents 1% of projected unpaid principal balance (UPB) of the underlying loans. |
(2) | The range represents the sum of the highest and lowest values for all tranches that we use in our valuation process. |
(3) | Loss severity represents the interest loss severity as a percentage of UPB. |
Total | Nonaccrual | ||||||
September 30, 2012 | |||||||
Fair value carrying amount | $ | 1,025,467 | $ | — | |||
Aggregate unpaid principal balance | 960,222 | — | |||||
Fair value carrying amount less aggregate unpaid principal | $ | 65,245 | $ | — | |||
December 31, 2011 | |||||||
Fair value carrying amount | $ | 777,280 | $ | 2,129 | |||
Aggregate unpaid principal balance | 747,667 | 2,466 | |||||
Fair value carrying amount less aggregate unpaid principal | $ | 29,613 | $ | (337 | ) |
Level 1 | Level 2 | Level 3 | Total | Change in Fair Value | |||||||||||||||
September 30, 2012 | |||||||||||||||||||
Collateral-dependent loans | $ | — | $ | — | $ | 49,712 | $ | 49,712 | $ | 4,776 | |||||||||
Other real estate owned | — | 1,710 | 32,366 | 34,076 | 6,676 | ||||||||||||||
Mortgage servicing rights (1) | — | — | 339,698 | 339,698 | 63,508 | ||||||||||||||
December 31, 2011 | |||||||||||||||||||
Loans held for sale | $ | — | $ | 13,010 | $ | — | $ | 13,010 | $ | 1,385 | |||||||||
Collateral-dependent loans | — | — | 62,183 | 62,183 | 11,831 | ||||||||||||||
Other real estate owned | — | — | 46,578 | 46,578 | 10,389 | ||||||||||||||
Mortgage servicing rights (1) | — | — | 445,195 | 445,195 | 39,455 |
(1) | The fair value for mortgage servicing rights represents the value of the impaired strata. |
Level 3 Assets | Fair Value | Valuation Technique | Unobservable Inputs | Significant Unobservable Input Value | |||||||||
Collateral-dependent loans | $ | 33,250 | Sales comparison approach | Appraisal value adjustment | 0.0% | - | 45.0% | (1) | |||||
Collateral-dependent loans | $ | 16,462 | Discounted appraisals | Collateral discounts | 5.0% | - | 10.0% | (2) | |||||
Other real estate owned | $ | 32,366 | Sales comparison approach | Appraisal value adjustment | 0.0% | - | 82.0% | (1) | |||||
Mortgage servicing rights | $ | 339,698 | Discounted cash flow | Prepayment speed | 16.6% | - | 19.7% | (3) | |||||
Discount rate | 9.2% | - | 9.8% | (4) |
(1) | The range represents the highest and lowest values of adjustments made to market comparable data. Adjustment values are derived from third party appraisals used during the valuation process. |
(2) | The range represents the highest and lowest values of adjustments made to collateral values by EverBank. |
(3) | The prepayment speed assumptions include a blend of prepayment speeds that are influenced by mortgage interest rates, the current macroeconomic environment and borrower behaviors and may vary over the expected life of the asset. The range represents the highest and lowest values for the impaired MSR strata. |
(4) | The discount rate range represents the highest and lowest values for the impaired MSR strata. |
September 30, 2012 | |||||||||||||||||||
Carrying Amount | Estimated Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||
Financial assets: | |||||||||||||||||||
Investment securities: | |||||||||||||||||||
Held to maturity | $ | 170,804 | $ | 177,228 | $ | — | $ | 177,228 | $ | — | |||||||||
Loans held for sale (1) | 377,738 | 395,127 | — | 395,127 | — | ||||||||||||||
Loans held for investment (2) | 9,242,356 | 9,344,311 | — | — | 9,344,311 | ||||||||||||||
Financial liabilities: | |||||||||||||||||||
Time deposits | $ | 3,178,126 | $ | 3,218,049 | $ | — | $ | 3,218,049 | $ | — | |||||||||
Other borrowings (3) | 2,339,362 | 2,389,767 | — | 2,389,767 | — | ||||||||||||||
Trust preferred securities | 103,750 | 78,305 | — | — | 78,305 |
December 31, 2011 | |||||||
Carrying Amount | Estimated Fair Value | ||||||
Financial assets: | |||||||
Investment securities: | |||||||
Held to maturity | $ | 189,518 | $ | 194,350 | |||
Loans held for sale | 2,725,286 | 2,811,917 | |||||
Loans held for investment (2) | 5,856,781 | 5,862,053 | |||||
Financial liabilities: | |||||||
Deposits | $ | 10,265,763 | $ | 10,299,977 | |||
Other borrowings | 1,257,879 | 1,215,209 | |||||
Trust preferred securities | 103,750 | 71,597 |
(1) | The carrying value of loans held for sale excludes $1,025,467 in loans measured at fair value on a recurring basis as of September 30, 2012. |
(2) | The carrying value of loans held for investment is net of the allowance for loan loss of $72,038 and $73,999 as of September 30, 2012 and December 31, 2011, respectively. In addition, the carrying values exclude $737,901 and $584,735 of lease financing receivables as of September 30, 2012 and December 31, 2011, respectively. |
(3) | The carrying value of other borrowings excludes $484,565 in repurchase agreements which have remaining maturities of less than one month. |
September 30, 2012 | December 31, 2011 | ||||||
Loan and lease commitments | $ | 191,695 | $ | 108,631 | |||
Home equity lines of credit | 43,416 | 45,345 | |||||
Credit card lines of credit | 33,053 | 26,807 | |||||
Commercial lines of credit | 762,129 | 68,158 | |||||
Standby letters of credit | 2,063 | 6,428 | |||||
Total unfunded credit extension commitments | $ | 1,032,356 | $ | 255,370 |
As of and for the Three Months Ended September 30, 2012 | |||||||||||||||||||
Banking and Wealth Management | Mortgage Banking | Corporate Services | Eliminations | Consolidated | |||||||||||||||
Net interest income (expense) | $ | 114,587 | $ | 13,105 | $ | (1,498 | ) | $ | — | $ | 126,194 | ||||||||
Total net revenue | 135,195 | 89,798 | (1) | (1,500 | ) | — | 223,493 | ||||||||||||
Intersegment revenue | (1,170 | ) | 1,170 | — | — | — | |||||||||||||
Depreciation and amortization | 6,876 | 432 | 1,612 | — | 8,920 | ||||||||||||||
Income before income taxes | 51,780 | 17,366 | (1) | (33,981 | ) | — | 35,165 | ||||||||||||
Total assets | 14,696,893 | 1,838,964 | 129,141 | (155,558 | ) | 16,509,440 | |||||||||||||
As of and for the Three Months Ended September 30, 2011 | |||||||||||||||||||
Banking and Wealth Management | Mortgage Banking | Corporate Services | Eliminations | Consolidated | |||||||||||||||
Net interest income (expense) | $ | 104,266 | $ | 8,255 | $ | (1,652 | ) | $ | — | $ | 110,869 | ||||||||
Total net revenue | 128,669 | 37,211 | (2) | (1,654 | ) | — | 164,226 | ||||||||||||
Intersegment revenue | (1,947 | ) | 1,947 | — | — | — | |||||||||||||
Depreciation and amortization | 4,619 | 503 | 1,608 | — | 6,730 | ||||||||||||||
Income before income taxes | 64,199 | (20,769 | ) | (2) | (31,047 | ) | — | 12,383 | |||||||||||
Total assets | 11,033,090 | 1,618,689 | 140,260 | (241,275 | ) | 12,550,764 |
As of and for the Nine Months Ended September 30, 2012 | |||||||||||||||||||
Banking and Wealth Management | Mortgage Banking | Corporate Services | Eliminations | Consolidated | |||||||||||||||
Net interest income (expense) | $ | 335,933 | $ | 35,391 | $ | (4,523 | ) | $ | — | $ | 366,801 | ||||||||
Total net revenue | 407,374 | 208,481 | (1) | (4,439 | ) | — | 611,416 | ||||||||||||
Intersegment revenue | (6,071 | ) | 6,071 | — | — | — | |||||||||||||
Depreciation and amortization | 20,345 | 1,429 | 5,237 | — | 27,011 | ||||||||||||||
Income before income taxes | 173,432 | (5,028 | ) | (1) | (97,032 | ) | — | 71,372 | |||||||||||
Total assets | 14,696,893 | 1,838,964 | 129,141 | (155,558 | ) | 16,509,440 | |||||||||||||
As of and for the Nine Months Ended September 30, 2011 | |||||||||||||||||||
Banking and Wealth Management | Mortgage Banking | Corporate Services | Eliminations | Consolidated | |||||||||||||||
Net interest income (expense) | $ | 315,298 | $ | 27,164 | $ | (4,990 | ) | $ | — | $ | 337,472 | ||||||||
Total net revenue | 371,334 | 138,562 | (2) | (282 | ) | — | 509,614 | ||||||||||||
Intersegment revenue | (6,008 | ) | 6,008 | — | — | — | |||||||||||||
Depreciation and amortization | 10,281 | 1,601 | 4,491 | — | 16,373 | ||||||||||||||
Income before income taxes | 175,450 | (3) | (23,157 | ) | (2) | (88,506 | ) | — | 63,787 | ||||||||||
Total assets | 11,033,090 | 1,618,689 | 140,260 | (241,275 | ) | 12,550,764 |
(1) | Segment earnings in the Mortgage Banking segment included a $18,229 charge for MSR impairment for the three months ended September 30, 2012 and a $63,508 charge for MSR impairment, net of recoveries, for the nine months ended September 30, 2012. |
(2) | Segment earnings in the Mortgage Banking segment included a $20,684 charge for MSR impairment for three and nine months ended September 30, 2011. |
(3) | Segment earnings in the Banking and Wealth Management segment included an $8,680 charge for the write off of the remaining Tygris indemnification asset for the nine months ended September 30, 2011. |
• | deterioration of general business and economic conditions, including the real estate and financial markets, in the United States and in the geographic regions and communities we serve; |
• | risks related to liquidity, including the adequacy of our cash flow from operations and borrowings to meet our short-term liquidity needs; |
• | changes in interest rates that affect the pricing of our financial products, the demand for our financial services and the valuation of our financial assets and liabilities, mortgage servicing rights and mortgage loans held for sale; |
• | risk of higher loan and lease charge-offs; |
• | legislative or regulatory actions affecting or concerning mortgage loan modification and refinancing; |
• | our ability to comply with any supervisory actions to which we are or become subject as a result of examination by our regulators; |
• | concentration of our commercial real estate loan portfolio, particularly, those secured by properties located in Florida; |
• | higher than normal delinquency and default rates affecting our mortgage banking business; |
• | limited ability to rely on brokered deposits as a part of our funding strategy; |
• | concentration of mass-affluent customers and jumbo mortgages; |
• | hedging strategies we use to manage our mortgage pipeline; |
• | the effectiveness of our derivatives to manage interest rate risk; |
• | risks related to securities held in our securities portfolio; |
• | delinquencies on our equipment leases and reductions in the resale value of leased equipment; |
• | increases in loan repurchase requests and our reserves for loan repurchases; |
• | customer concerns over deposit insurance; |
• | failure to prevent a breach to our Internet-based system and online commerce security; |
• | soundness of other financial institutions; |
• | changes in currency exchange rates or other political or economic changes in certain foreign countries; |
• | the competitive industry and market areas in which we operate; |
• | historical growth rate and performance may not be a reliable indicator of future results; |
• | loss of key personnel; |
• | fraudulent and negligent acts by loan applicants, mortgage brokers, other vendors and our employees; |
• | compliance with laws and regulations that govern our operations; |
• | failure to establish and maintain effective internal controls and procedures; |
• | impact of recent and future legal and regulatory changes, including the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the Dodd-Frank Act); |
• | effects of changes in existing U.S. government or government-sponsored mortgage programs; |
• | changes in laws and regulations that may restrict our ability to originate or increase our risk of liability with respect to certain mortgage |
• | risks related to the continuing integration of acquired businesses and any future acquisitions; |
• | legislative action regarding foreclosures or bankruptcy laws; |
• | changes to GAAP; |
• | environmental liabilities with respect to properties that we take title to upon foreclosure; and |
• | inability of EverBank, our banking subsidiary, to pay dividends. |
• | GAAP diluted earnings per share was $0.19 in the third quarter of 2012, a 138% increase from $0.08 in the third quarter 2011. Adjusted diluted earnings per share was $0.30 in the third quarter of 2012, an 11% increase from $0.27 in the third quarter 2011.1 |
• | Total loans and leases were $11.4 billion at September 30, 2012, up $0.5 billion, or 5%, for the quarter and up $3.4 billion, or 42%, year over year. |
• | Loans and leases generated were $3.3 billion for the third quarter 2012, an increase of 18% for the quarter and 85% year over year. |
• | Asset quality improved as adjusted nonperforming assets were 1.29% of total assets at September 30, 2012, compared to 1.46% in the second quarter of 2012 and 1.73% for the third quarter of 2011. Annualized net charge-offs to average loans and leases held for investment were 0.25% for the three months ended September 30, 2012, compared to 0.34% in the second quarter of 2012 and 1.03% for the third quarter of 2011.1 |
• | Deposits were $11.8 billion at September 30, 2012, up $1.0 billion, or 9%, from the second quarter 2012 and up $1.6 billion, or 16%, as compared to the third quarter of 2011. |
• | GAAP net income was $22.2 million for the third quarter of 2012, compared to $11.2 million for the second quarter 2012 and $7.8 million in the third quarter of 2011. |
• | Adjusted net income was $36.2 million for the third quarter of 2012, compared to $36.5 million for the second quarter 2012 and $25.6 million for the third quarter of 2011.1 |
• | Tangible book value per common share was $10.29 at September 30, 2012, and excluding accumulated other comprehensive loss was $11.18.1 |
• | On October 1, 2012, we closed our acquisition of Business Property Lending, Inc. (BPL) from GE Capital Corporation with total net assets of approximately $2.4 billion. |
• | Residential loans which increased by 33% to $8.2 billion from the third quarter of 2011. During the quarter, we transferred $1.9 billion of GNMA pool buyout loans from loans held for sale to loans held for investment due to our intention to hold the loans for the foreseeable future; |
• | Commercial and commercial real estate loans which increased by 101% to $2.3 billion, from the third quarter of 2011; |
• | Commercial leases which increased by 43% to $0.7 billion, from the third quarter of 2011; and |
• | Investment securities which decreased by 24% to $2.0 billion, from the third quarter of 2011. |
• | Non-interest bearing accounts were $1.5 billion, or 12%, of total deposits; |
• | Interest-bearing checking accounts were $2.4 billion, or 21%, of total deposits; |
• | Savings and money market accounts were $4.3 billion, or 36%, of total deposits; |
• | Global markets money market and time accounts were $1.2 billion, or 10%, of total deposits; and |
• | Time deposit accounts, excluding global markets, were $2.4 billion, or 20%, of total deposits. |
Financial Highlights | Table 1 | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(dollars in thousands, except per share amounts) | 2012 | 2011 | 2012 | 2011 | |||||||||||
For the Period: | |||||||||||||||
Operating Results: | |||||||||||||||
Net interest income | $ | 126,194 | $ | 110,869 | $ | 366,801 | $ | 337,472 | |||||||
Provision for loan and lease losses | 4,359 | 12,258 | 21,471 | 39,292 | |||||||||||
Noninterest income | 97,299 | 53,357 | 244,615 | 172,142 | |||||||||||
Noninterest expense | 183,969 | 139,585 | 518,573 | 406,535 | |||||||||||
Net income | 22,178 | 7,758 | 45,196 | 38,969 | |||||||||||
Net earnings per common share, basic | 0.19 | 0.08 | 0.37 | 0.41 | |||||||||||
Net earnings per common share, diluted | 0.19 | 0.08 | 0.37 | 0.40 | |||||||||||
Performance Metrics: | |||||||||||||||
Adjusted net income (1) | $ | 36,185 | $ | 25,631 | $ | 99,901 | $ | 75,658 | |||||||
Adjusted net earnings per common share, basic (2) | 0.31 | 0.27 | 0.94 | 0.80 | |||||||||||
Adjusted net earnings per common share, diluted (2) | 0.30 | 0.27 | 0.92 | 0.78 | |||||||||||
Yield on interest-earning assets | 4.69 | % | 5.21 | % | 4.81 | % | 5.45 | % | |||||||
Cost of interest-bearing liabilities | 1.17 | % | 1.34 | % | 1.15 | % | 1.44 | % | |||||||
Net interest spread | 3.52 | % | 3.87 | % | 3.66 | % | 4.01 | % | |||||||
Net interest margin | 3.66 | % | 3.98 | % | 3.82 | % | 4.18 | % | |||||||
Return on average assets | 0.58 | % | 0.25 | % | 0.42 | % | 0.43 | % | |||||||
Return on average equity | 7.28 | % | 3.08 | % | 5.48 | % | 5.10 | % | |||||||
Adjusted return on average assets (3) | 0.95 | % | 0.83 | % | 0.94 | % | 0.83 | % | |||||||
Adjusted return on average equity (3) | 11.89 | % | 10.19 | % | 12.12 | % | 9.91 | % | |||||||
Banking and Wealth Management Metrics: | |||||||||||||||
Efficiency ratio (4) | 59.1 | % | 39.9 | % | 52.8 | % | 42.4 | % | |||||||
Mortgage Banking Metrics: | |||||||||||||||
Unpaid principal balance of loans originated (in millions) | $ | 2,528.6 | $ | 1,580.5 | $ | 6,694.9 | $ | 3,993.0 |
Financial Highlights | Table 1 (cont.) | ||||||
(dollars in thousands, except per share amounts) | September 30, 2012 | December 31, 2011 | |||||
As of Period End: | |||||||
Balance Sheet Data: | |||||||
Cash and cash equivalents | $ | 1,619,969 | $ | 294,981 | |||
Investment securities | 2,019,511 | 2,191,832 | |||||
Loans held for sale | 1,403,205 | 2,725,286 | |||||
Loans and leases held for investment, net | 9,980,257 | 6,441,516 | |||||
Total assets | 16,509,440 | 13,041,678 | |||||
Deposits | 11,815,926 | 10,265,763 | |||||
Total liabilities | 15,251,418 | 12,074,013 | |||||
Total shareholders’ equity | 1,258,022 | 967,665 | |||||
Credit Quality Ratios: | |||||||
Adjusted non-performing assets as a percentage of total assets (see Table 17) | 1.29 | % | 1.86 | % | |||
Allowance for loan and lease losses (ALLL) as a percentage of loans and leases held for investment excluding Acquired Credit Impaired (ACI) (see Table 19) | 0.62 | % | 1.15 | % | |||
Capital Ratios: | |||||||
Tier 1 leverage ratio (bank level) (see Table 28) | 8.0 | % | 8.0 | % | |||
Tier 1 risk-based capital ratio (see Table 28) | 15.2 | % | 14.6 | % | |||
Total risk-based capital ratio (bank level) (see Table 28) | 16.1 | % | 15.7 | % | |||
Tangible equity to tangible assets (see Table 1B) | 7.5 | % | 7.3 | % | |||
Deposit Metrics: | |||||||
Total core deposits as a percentage of total deposits (see Table 1C) | 94.4 | % | 95.1 | % | |||
Deposit growth (trailing 12 months) | 15.8 | % | 6.0 | % | |||
Mortgage Banking Metrics: | |||||||
Unpaid principal balance of loans serviced for the Company and others (in millions) | $ | 52,308.6 | $ | 54,838.1 | |||
Net Tangible Book Value Per as Converted Common Share: | |||||||
Excluding accumulated other comprehensive loss (5) | $ | 11.18 | $ | 11.27 | |||
Including accumulated other comprehensive loss (6) | $ | 10.29 | $ | 10.12 |
(1) | Adjusted net income includes adjustments to our net income for certain material items that we believe are not reflective of our ongoing business or operating performance, including the Tygris and Bank of Florida acquisitions. For a reconciliation of adjusted net income to net income, which is the most directly comparable GAAP measure, see Table 1A. |
(2) | Both basic and diluted adjusted net earnings per common share are calculated using a numerator based on adjusted net income. Adjusted net earnings per common share, basic is a non-GAAP financial measure and its most directly comparable GAAP measure is net earnings per common share, basic. Adjusted net earnings per common share, diluted is a non-GAAP financial measure and its most directly comparable GAAP measure is net earnings per common share, diluted. For 2012, both basic and diluted adjusted net earnings per common share have been adjusted to exclude the impact of the $4.5 million special cash dividend paid in March 2012 to holders of the Series A Preferred Stock and the $1.1 million special cash dividend paid in June 2012 to holders of the Series B Preferred Stock. The special cash dividends were paid in connection with the conversion of all shares of both the Series A Preferred Stock and the Series B Preferred Stock into common stock. |
(3) | Adjusted return on average assets equals adjusted net income divided by average total assets and adjusted return on average equity equals adjusted net income divided by average shareholders’ equity. Adjusted net income is a non-GAAP measure of our financial performance and its most directly comparable GAAP measure is net income. For a reconciliation of net income to adjusted net income, see Table 1A. |
(4) | The efficiency ratio represents noninterest expense from our Banking and Wealth Management segment as a percentage of total revenues from our Banking and Wealth Management segment. We use the efficiency ratio to measure noninterest costs expended to generate a dollar of revenue. Because of the significant costs we incur and fees we generate from activities related to our mortgage production and servicing operations, we believe the efficiency ratio is a more meaningful metric when evaluated within our Banking and Wealth Management segment. |
(5) | Calculated as adjusted tangible shareholders’ equity divided by shares of common stock. Adjusted tangible shareholders’ equity equals shareholders’ equity less goodwill, other intangible assets and accumulated other comprehensive loss (see Table 1B). Net tangible book value per as converted common share is calculated using a denominator that includes actual period end common shares outstanding and additional common shares assuming conversion of all outstanding preferred stock to common stock. Net tangible book value per as converted common share excluding accumulated other comprehensive loss is a non-GAAP financial measure, and its most directly comparable GAAP financial measure is book value per common share. |
(6) | Calculated as tangible shareholders’ equity divided by shares of common stock. Tangible shareholders’ equity equals shareholders’ equity less goodwill and other intangible assets (see Table 1B). Net tangible book value per as converted common share is calculated using a denominator that includes actual period end common shares outstanding and additional common shares assuming conversion of all outstanding preferred stock to common stock. Net tangible book value per as converted common share including accumulated other comprehensive loss is a non-GAAP financial measure, and its most directly comparable GAAP financial measure is book value per common share. |
Adjusted Net Income | Table 1A | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(dollars in thousands) | 2012 | 2011 | 2012 | 2011 | |||||||||||
Net income | $ | 22,178 | $ | 7,758 | $ | 45,196 | $ | 38,969 | |||||||
Gain on repurchase of trust preferred securities, net of tax | — | — | — | (2,910 | ) | ||||||||||
Transaction expense, net of tax | 1,268 | 2,108 | 4,452 | 8,204 | |||||||||||
Non-recurring regulatory related expense, net of tax | 1,326 | 2,643 | 8,169 | 4,296 | |||||||||||
Decrease in fair value of Tygris indemnification asset resulting from a decrease in estimated future credit losses, net of tax | — | — | — | 5,382 | |||||||||||
Increase in Bank of Florida non-accretable discount, net of tax | 111 | 298 | 2,709 | 799 | |||||||||||
Impact of change in ALLL methodology, net of tax | — | — | — | 1,178 | |||||||||||
Early adoption of TDR guidance and policy change, net of tax | — | — | — | 6,225 | |||||||||||
MSR impairment, net of tax | 11,302 | 12,824 | 39,375 | 12,824 | |||||||||||
Tax expense related to revaluation of Tygris net unrealized built-in losses | — | — | — | 691 | |||||||||||
Adjusted net income | $ | 36,185 | $ | 25,631 | $ | 99,901 | $ | 75,658 |
Tangible Equity, Adjusted Tangible Equity and Tangible Assets | Table 1B | ||||||
(dollars in thousands) | September 30, 2012 | December 31, 2011 | |||||
Shareholders’ equity | $ | 1,258,022 | $ | 967,665 | |||
Less: | |||||||
Goodwill | 10,238 | 10,238 | |||||
Intangible assets | 6,348 | 7,404 | |||||
Tangible equity | 1,241,436 | 950,023 | |||||
Less: | |||||||
Accumulated other comprehensive loss | (106,731 | ) | (107,749 | ) | |||
Adjusted tangible equity | $ | 1,348,167 | $ | 1,057,772 | |||
Total assets | $ | 16,509,440 | $ | 13,041,678 | |||
Less: | |||||||
Goodwill | 10,238 | 10,238 | |||||
Intangible assets | 6,348 | 7,404 | |||||
Tangible assets | $ | 16,492,854 | $ | 13,024,036 |
Core Deposits (1) | Table 1C | ||||||
(dollars in thousands) | September 30, 2012 | December 31, 2011 | |||||
Total deposits | $ | 11,815,926 | $ | 10,265,763 | |||
Less: | |||||||
Brokered deposits | 445,926 | 225,122 | |||||
CDARS® One-Way BuySM time deposits | 216,036 | 273,266 | |||||
Core deposits(1) | $ | 11,153,964 | $ | 9,767,375 | |||
Core deposits | $ | 11,153,964 | $ | 9,767,375 | |||
Add: Additional liabilities considered deposits for regulatory purposes | 13,023 | 5,912 | |||||
Less: Additional deposits considered non-core for regulatory purposes: | |||||||
CDARS® reciprocal time deposits | 391,072 | 305,982 | |||||
Time deposits greater than $250,000 | 270,114 | 204,812 | |||||
Other fully insured deposits considered to be brokered deposits for regulatory purposes due to marketing fees paid as a percentage of the deposit | 1,048,519 | 1,564,999 | |||||
Regulatory core deposits | $ | 9,457,282 | $ | 7,697,494 |
(1) | We measure core deposits as a percentage of total deposits to monitor the amount of our deposits that we believe demonstrate characteristics of being long-term, stable sources of funding. We define core deposits as deposits in which we interface directly with our customers. These deposits include demand deposits, negotiable order of withdrawal accounts, other transaction accounts, escrow deposits, money market deposit accounts, savings deposits, and time deposits where we maintain a primary customer relationship. Our definition of core deposits differs from regulatory and industry definitions, which generally exclude time deposits with balances greater than $250,000 and/or deposits generated from sources under which marketing fees are paid as a percentage of the deposit. Because the balances held by our customers and methods by which we pay our marketing sources have not impacted the stability of our funding sources, in our determination of what constitutes a “core” deposit, we have focused on what we believe drives funding stability, i.e., whether we maintain the primary customer relationships. We occasionally participate in Promontory Interfinancial Network, LLC’s CDARS® One-Way BuySM products and bulk orders of master certificates through deposit brokers, including investment banking and brokerage firms, to manage our liquidity needs. Because these deposits do not allow us to maintain the primary customer relationship, we do not characterize such deposits as core deposits. |
Average Balance Sheet, Interest and Yield/Rate Analysis | Table 2A | ||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
September 30, 2012 | September 30, 2011 | ||||||||||||||||||||
(dollars in thousands) | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||||
Assets: | |||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 236,378 | $ | 152 | 0.26 | % | $ | 311,803 | $ | 198 | 0.25 | % | |||||||||
Investment securities | 1,984,778 | 20,379 | 4.10 | % | 2,825,922 | 27,050 | 3.83 | % | |||||||||||||
Other investments | 121,315 | 501 | 1.64 | % | 85,144 | 151 | 0.70 | % | |||||||||||||
Loans held for sale | 2,750,575 | 32,508 | 4.73 | % | 1,127,316 | 12,693 | 4.50 | % | |||||||||||||
Loans and leases held for investment: | |||||||||||||||||||||
Residential mortgages | 5,690,121 | 60,381 | 4.24 | % | 4,860,607 | 55,120 | 4.54 | % | |||||||||||||
Commercial and commercial real estate | 2,045,963 | 23,869 | 4.57 | % | 1,131,431 | 16,667 | 5.76 | % | |||||||||||||
Lease financing receivables | 692,643 | 21,218 | 12.25 | % | 482,816 | 29,803 | 24.69 | % | |||||||||||||
Home equity lines | 186,179 | 2,190 | 4.68 | % | 208,132 | 2,552 | 4.86 | % | |||||||||||||
Consumer and credit card | 8,375 | 63 | 2.99 | % | 8,468 | 63 | 2.95 | % | |||||||||||||
Total loans and leases held for investment | 8,623,281 | 107,721 | 4.97 | % | 6,691,454 | 104,205 | 6.21 | % | |||||||||||||
Total interest-earning assets | 13,716,327 | $ | 161,261 | 4.69 | % | 11,041,639 | $ | 144,297 | 5.21 | % | |||||||||||
Noninterest-earning assets | 1,459,268 | 1,352,254 | |||||||||||||||||||
Total assets | $ | 15,175,595 | $ | 12,393,893 | |||||||||||||||||
Liabilities and Shareholders’ Equity: | |||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Deposits: | |||||||||||||||||||||
Interest-bearing demand | $ | 2,312,731 | $ | 4,456 | 0.77 | % | $ | 2,042,096 | $ | 4,479 | 0.87 | % | |||||||||
Market-based money market accounts | 430,420 | 822 | 0.76 | % | 485,429 | 1,136 | 0.93 | % | |||||||||||||
Savings and money market accounts, excluding market-based | 4,157,713 | 8,115 | 0.78 | % | 3,750,652 | 8,256 | 0.87 | % | |||||||||||||
Market-based time | 815,528 | 2,029 | 0.99 | % | 1,028,829 | 2,303 | 0.89 | % | |||||||||||||
Time, excluding market-based | 2,229,888 | 7,069 | 1.26 | % | 1,722,143 | 7,785 | 1.79 | % | |||||||||||||
Total deposits | 9,946,280 | 22,491 | 0.90 | % | 9,029,149 | 23,959 | 1.05 | % | |||||||||||||
Borrowings: | |||||||||||||||||||||
Trust preferred securities | 103,750 | 1,498 | 5.74 | % | 103,750 | 1,652 | 6.32 | % | |||||||||||||
FHLB advances | 1,803,605 | 10,852 | 2.39 | % | 730,879 | 7,729 | 4.20 | % | |||||||||||||
Repurchase agreements | 53,244 | 220 | 1.64 | % | 20,524 | 88 | 1.70 | % | |||||||||||||
Other | 3 | 6 | N.M. | 2 | — | 0.00 | % | ||||||||||||||
Total interest-bearing liabilities | 11,906,882 | $ | 35,067 | 1.17 | % | 9,884,304 | $ | 33,428 | 1.34 | % | |||||||||||
Noninterest-bearing demand deposits | 1,591,087 | 1,126,875 | |||||||||||||||||||
Other noninterest-bearing liabilities | 459,815 | 362,097 | |||||||||||||||||||
Total liabilities | 13,957,784 | 11,373,276 | |||||||||||||||||||
Total shareholders’ equity | 1,217,811 | 1,020,617 | |||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 15,175,595 | $ | 12,393,893 | |||||||||||||||||
Net interest income/spread | $ | 126,194 | 3.52 | % | $ | 110,869 | 3.87 | % | |||||||||||||
Net interest margin | 3.66 | % | 3.98 | % | |||||||||||||||||
Memo: Total deposits including non-interest bearing | $ | 11,537,367 | $ | 22,491 | 0.78 | % | $ | 10,156,024 | $ | 23,959 | 0.94 | % |
Average Balance Sheet, Interest and Yield/Rate Analysis | Table 2B | ||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||
September 30, 2012 | September 30, 2011 | ||||||||||||||||||||
(dollars in thousands) | Average Balance | Interest | Yield/ Rate | Average Balance | Interest | Yield/ Rate | |||||||||||||||
Assets: | |||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 176,824 | $ | 338 | 0.26 | % | $ | 676,440 | $ | 1,312 | 0.26 | % | |||||||||
Investment securities | 2,058,853 | 60,787 | 3.94 | % | 2,597,617 | 82,144 | 4.22 | % | |||||||||||||
Other investments | 114,281 | 1,340 | 1.57 | % | 107,067 | 634 | 0.79 | % | |||||||||||||
Loans held for sale | 2,810,595 | 103,903 | 4.93 | % | 1,002,723 | 33,197 | 4.41 | % | |||||||||||||
Loans and leases held for investment: | |||||||||||||||||||||
Residential mortgages | 5,201,477 | 161,860 | 4.15 | % | 4,579,086 | 164,021 | 4.78 | % | |||||||||||||
Commercial and commercial real estate | 1,624,465 | 60,639 | 4.90 | % | 1,152,058 | 52,872 | 6.05 | % | |||||||||||||
Lease financing receivables | 632,816 | 66,381 | 13.99 | % | 464,863 | 100,806 | 28.91 | % | |||||||||||||
Home equity lines | 191,869 | 7,858 | 5.47 | % | 214,189 | 7,345 | 4.58 | % | |||||||||||||
Consumer and credit card | 8,094 | 183 | 3.02 | % | 9,147 | 178 | 2.60 | % | |||||||||||||
Total loans and leases held for investment | 7,658,721 | 296,921 | 5.15 | % | 6,419,343 | 325,222 | 6.74 | % | |||||||||||||
Total interest-earning assets | 12,819,274 | $ | 463,289 | 4.81 | % | 10,803,190 | $ | 442,509 | 5.45 | % | |||||||||||
Noninterest-earning assets | 1,416,600 | 1,311,545 | |||||||||||||||||||
Total assets | $ | 14,235,874 | $ | 12,114,735 | |||||||||||||||||
Liabilities and Shareholders’ Equity: | |||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Deposits: | |||||||||||||||||||||
Interest-bearing demand | $ | 2,181,930 | $ | 12,011 | 0.74 | % | $ | 2,042,720 | $ | 14,573 | 0.95 | % | |||||||||
Market-based money market accounts | 438,837 | 2,497 | 0.76 | % | 446,304 | 3,297 | 0.99 | % | |||||||||||||
Savings and money market accounts, excluding market-based | 3,931,439 | 22,429 | 0.76 | % | 3,656,161 | 26,545 | 0.97 | % | |||||||||||||
Market-based time | 856,002 | 6,298 | 0.98 | % | 951,946 | 6,428 | 0.90 | % | |||||||||||||
Time, excluding market-based | 2,026,537 | 20,649 | 1.36 | % | 1,788,752 | 24,716 | 1.85 | % | |||||||||||||
Total deposits | 9,434,745 | 63,884 | 0.90 | % | 8,885,883 | 75,559 | 1.14 | % | |||||||||||||
Borrowings: | |||||||||||||||||||||
Trust preferred securities | 103,750 | 4,523 | 5.82 | % | 104,226 | 4,990 | 6.40 | % | |||||||||||||
FHLB advances | 1,645,424 | 27,681 | 2.25 | % | 738,264 | 24,230 | 4.39 | % | |||||||||||||
Repurchase agreements | 32,019 | 394 | 1.64 | % | 20,599 | 258 | 1.67 | % | |||||||||||||
Other | 13 | 6 | N.M. | 6 | — | 0.00 | % | ||||||||||||||
Total interest-bearing liabilities | 11,215,951 | $ | 96,488 | 1.15 | % | 9,748,978 | $ | 105,037 | 1.44 | % | |||||||||||
Noninterest-bearing demand deposits | 1,453,274 | 1,012,309 | |||||||||||||||||||
Other noninterest-bearing liabilities | 467,515 | 322,466 | |||||||||||||||||||
Total liabilities | 13,136,740 | 11,083,753 | |||||||||||||||||||
Total shareholders’ equity | 1,099,134 | 1,030,982 | |||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 14,235,874 | $ | 12,114,735 | |||||||||||||||||
Net interest income/spread | $ | 366,801 | 3.66 | % | $ | 337,472 | 4.01 | % | |||||||||||||
Net interest margin | 3.82 | % | 4.18 | % | |||||||||||||||||
Memo: Total deposits including non-interest bearing | $ | 10,888,019 | $ | 63,884 | 0.78 | % | $ | 9,898,192 | $ | 75,559 | 1.02 | % |
(1) | The average balances are principally daily averages, and, for loans, include both performing and non-performing balances. |
(2) | Interest income on loans includes the effects of discount accretion and net deferred loan origination costs accounted for as yield adjustments. |
(3) | All interest income was fully taxable for all periods presented. |
(4) | N.M. indicates not meaningful. |
Analysis of Change in Net Interest Income | Table 3 | ||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, 2012 Compared | September 30, 2012 Compared | ||||||||||||||||||||||
to September 30, 2011 | to September 30, 2011 | ||||||||||||||||||||||
Increase (Decrease) Due to | Increase (Decrease) Due to | ||||||||||||||||||||||
(dollars in thousands) | Volume | Rate | Total | Volume | Rate | Total | |||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | (47 | ) | $ | 1 | $ | (46 | ) | $ | (972 | ) | $ | (2 | ) | $ | (974 | ) | ||||||
Investment securities | (8,098 | ) | 1,427 | (6,671 | ) | (17,021 | ) | (4,336 | ) | (21,357 | ) | ||||||||||||
Other investments | 64 | 286 | 350 | 43 | 663 | 706 | |||||||||||||||||
Loans held for sale | 18,361 | 1,454 | 19,815 | 59,686 | 11,020 | 70,706 | |||||||||||||||||
Loans and leases held for investment: | |||||||||||||||||||||||
Residential mortgages | 9,466 | (4,205 | ) | 5,261 | 22,272 | (24,433 | ) | (2,161 | ) | ||||||||||||||
Commercial and commercial real estate | 13,241 | (6,039 | ) | 7,202 | 21,396 | (13,629 | ) | 7,767 | |||||||||||||||
Lease financing receivables | 13,022 | (21,607 | ) | (8,585 | ) | 36,350 | (70,775 | ) | (34,425 | ) | |||||||||||||
Home equity lines | (268 | ) | (94 | ) | (362 | ) | (765 | ) | 1,278 | 513 | |||||||||||||
Consumer and credit card | (1 | ) | 1 | — | (20 | ) | 25 | 5 | |||||||||||||||
Total loans and leases held for investment | 35,460 | (31,944 | ) | 3,516 | 79,233 | (107,534 | ) | (28,301 | ) | ||||||||||||||
Total change in interest income | 45,740 | (28,776 | ) | 16,964 | 120,969 | (100,189 | ) | 20,780 | |||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||
Interest-bearing demand | $ | 592 | $ | (615 | ) | $ | (23 | ) | $ | 990 | $ | (3,552 | ) | $ | (2,562 | ) | |||||||
Market-based money market accounts | (129 | ) | (185 | ) | (314 | ) | (55 | ) | (745 | ) | (800 | ) | |||||||||||
Savings and money market accounts, excluding market-based | 890 | (1,031 | ) | (141 | ) | 1,999 | (6,115 | ) | (4,116 | ) | |||||||||||||
Market-based time | (477 | ) | 203 | (274 | ) | (646 | ) | 516 | (130 | ) | |||||||||||||
Time, excluding market-based | 2,285 | (3,001 | ) | (716 | ) | 3,293 | (7,360 | ) | (4,067 | ) | |||||||||||||
Total deposits | 3,161 | (4,629 | ) | (1,468 | ) | 5,581 | (17,256 | ) | (11,675 | ) | |||||||||||||
Borrowings: | |||||||||||||||||||||||
Trust preferred securities | — | (154 | ) | (154 | ) | (23 | ) | (444 | ) | (467 | ) | ||||||||||||
FHLB advances | 11,325 | (8,202 | ) | 3,123 | 29,814 | (26,363 | ) | 3,451 | |||||||||||||||
Repurchase agreements | 140 | (8 | ) | 132 | 143 | (7 | ) | 136 | |||||||||||||||
Other | — | 6 | 6 | — | 6 | 6 | |||||||||||||||||
Total change in interest expense | 14,626 | (12,987 | ) | 1,639 | 35,515 | (44,064 | ) | (8,549 | ) | ||||||||||||||
Total change in net interest income | $ | 31,114 | $ | (15,789 | ) | $ | 15,325 | $ | 85,454 | $ | (56,125 | ) | $ | 29,329 |
(1) | The effect of changes in volume is determined by multiplying the change in volume by the previous period's average yield/cost. Similarly, the effect of rate changes is calculated by multiplying the change in average yield/cost by the previous period's volume. Changes applicable to both volume and rate have been allocated to rate. |
Noninterest Income | Table 4 | ||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
(dollars in thousands) | 2012 | 2011 | 2012 | 2011 | |||||||||||
Loan servicing fee income | $ | 42,341 | $ | 48,390 | $ | 130,380 | $ | 144,023 | |||||||
Amortization of MSR | (36,292 | ) | (23,369 | ) | (99,773 | ) | (67,586 | ) | |||||||
Impairment of MSR | (18,229 | ) | (20,684 | ) | (63,508 | ) | (20,684 | ) | |||||||
Net loan servicing income (loss) | (12,180 | ) | 4,337 | (32,901 | ) | 55,753 | |||||||||
Gain on sale of loans | 85,748 | 20,921 | 203,851 | 39,854 | |||||||||||
Loan production revenue | 10,528 | 6,518 | 27,817 | 18,513 | |||||||||||
Deposit fee income | 4,671 | 7,803 | 16,738 | 19,398 | |||||||||||
Other lease income | 7,103 | 7,095 | 24,588 | 22,163 | |||||||||||
Other | 1,429 | 6,683 | 4,522 | 16,461 | |||||||||||
Total Noninterest Income | $ | 97,299 | $ | 53,357 | $ | 244,615 | $ | 172,142 |
Noninterest Expense | Table 5 | ||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
(dollars in thousands) | 2012 | 2011 | 2012 | 2011 | |||||||||||
Salaries, commissions and other employee benefits expense | $ | 85,399 | $ | 57,757 | $ | 228,266 | $ | 171,451 | |||||||
Equipment expense | 17,574 | 13,608 | 50,411 | 36,077 | |||||||||||
Occupancy expense | 6,619 | 5,237 | 17,985 | 14,808 | |||||||||||
General and administrative expense: | |||||||||||||||
Professional fees | 14,889 | 16,398 | 49,818 | 45,283 | |||||||||||
Foreclosure and OREO expense | 19,639 | 3,333 | 45,567 | 23,997 | |||||||||||
Other credit-related expenses | 5,425 | 13,883 | 23,041 | 38,959 | |||||||||||
FDIC premium assessment and other agency fees | 10,080 | 12,402 | 28,693 | 22,635 | |||||||||||
Advertising and marketing expense | 10,340 | 4,175 | 24,893 | 12,307 | |||||||||||
Other | 14,004 | 12,792 | 49,899 | 41,018 | |||||||||||
Total general and administrative expense | 74,377 | 62,983 | 221,911 | 184,199 | |||||||||||
Total Noninterest Expense | $ | 183,969 | $ | 139,585 | $ | 518,573 | $ | 406,535 |
Provision for Income Taxes and Effective Tax Rates | Table 6 | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
(dollars in thousands) | 2012 | 2011 | 2012 | 2011 | ||||||||||||
Provision for income taxes | $ | 12,987 | $ | 4,625 | $ | 26,176 | 13,189,000 | $ | 24,818 | |||||||
Effective tax rates | 36.9 | % | 37.3 | % | 36.7 | % | 0.364 | 38.9 | % |
Business Segments Selected Financial Information | Table 7A | ||||||||||||||||||
Banking and Wealth Management | Mortgage Banking | Corporate Services | Eliminations | Consolidated | |||||||||||||||
(dollars in thousands) | |||||||||||||||||||
Three Months Ended September 30, 2012 | |||||||||||||||||||
Net interest income | $ | 114,587 | $ | 13,105 | $ | (1,498 | ) | $ | — | $ | 126,194 | ||||||||
Provision for loan and lease losses | 3,547 | 812 | — | — | 4,359 | ||||||||||||||
Net interest income after provision for loan and lease losses | 111,040 | 12,293 | (1,498 | ) | — | 121,835 | |||||||||||||
Noninterest income | 20,608 | 76,693 | (2 | ) | — | 97,299 | |||||||||||||
Noninterest expense: | |||||||||||||||||||
Foreclosure and OREO expense | 17,463 | 2,176 | — | — | 19,639 | ||||||||||||||
Other credit-related expenses | 1,879 | 3,544 | 2 | — | 5,425 | ||||||||||||||
All other noninterest expense | 60,526 | 65,900 | 32,479 | — | 158,905 | ||||||||||||||
Income (loss) before income tax | 51,780 | 17,366 | (33,981 | ) | — | 35,165 | |||||||||||||
Adjustment items (pre-tax): | |||||||||||||||||||
Increase in Bank of Florida non-accretable discount | 178 | — | — | — | 178 | ||||||||||||||
MSR impairment | — | 18,229 | — | — | 18,229 | ||||||||||||||
Transaction and non-recurring regulatory related expense | — | 1,657 | 2,527 | — | 4,184 | ||||||||||||||
Adjusted income (loss) before income tax | $ | 51,958 | $ | 37,252 | $ | (31,454 | ) | $ | — | $ | 57,756 | ||||||||
Total assets as of September 30, 2012 | $ | 14,696,893 | $ | 1,838,964 | $ | 129,141 | $ | (155,558 | ) | $ | 16,509,440 | ||||||||
Efficiency Ratios: | |||||||||||||||||||
GAAP basis: | |||||||||||||||||||
including foreclosure, OREO and other credit-related expenses | 59.1 | % | 82.3 | % | |||||||||||||||
excluding foreclosure, OREO and other credit-related expenses | 44.8 | % | 71.1 | % | |||||||||||||||
Adjusted basis: | |||||||||||||||||||
including foreclosure, OREO and other credit-related expenses | 59.1 | % | 74.4 | % | |||||||||||||||
excluding foreclosure, OREO and other credit-related expenses | 44.8 | % | 64.0 | % |
Business Segments Selected Financial Information | Table 7B | ||||||||||||||||||
Banking and Wealth Management | Mortgage Banking | Corporate Services | Eliminations | Consolidated | |||||||||||||||
(dollars in thousands) | |||||||||||||||||||
Three Months Ended September 30, 2011 | |||||||||||||||||||
Net interest income | $ | 104,266 | $ | 8,255 | $ | (1,652 | ) | $ | — | $ | 110,869 | ||||||||
Provision for loan and lease losses | 13,119 | (861 | ) | — | — | 12,258 | |||||||||||||
Net interest income after provision for loan and lease losses | 91,147 | 9,116 | (1,652 | ) | — | 98,611 | |||||||||||||
Noninterest income | 24,403 | 28,956 | (2 | ) | — | 53,357 | |||||||||||||
Noninterest expense: | |||||||||||||||||||
Foreclosure and OREO expense | (2,328 | ) | 5,660 | 1 | — | 3,333 | |||||||||||||
Other credit-related expenses | 2,748 | 11,135 | — | — | 13,883 | ||||||||||||||
All other noninterest expense | 50,931 | 42,046 | 29,392 | — | 122,369 | ||||||||||||||
Income (loss) before income tax | 64,199 | (20,769 | ) | (31,047 | ) | — | 12,383 | ||||||||||||
Adjustment items (pre-tax): | |||||||||||||||||||
Increase in Bank of Florida non-accretable discount | 482 | — | — | — | 482 | ||||||||||||||
MSR impairment | — | 20,684 | — | — | 20,684 | ||||||||||||||
Transaction and non-recurring regulatory related expense | — | 2,432 | 5,233 | — | 7,665 | ||||||||||||||
Adjusted income (loss) before income tax | $ | 64,681 | $ | 2,347 | $ | (25,814 | ) | $ | — | $ | 41,214 | ||||||||
Total assets as of September 30, 2011 | $ | 11,033,090 | $ | 1,618,689 | $ | 140,260 | $ | (241,275 | ) | $ | 12,550,764 | ||||||||
Efficiency Ratios: | |||||||||||||||||||
GAAP basis: | |||||||||||||||||||
including foreclosure, OREO and other credit-related expenses | 39.9 | % | 85.0 | % | |||||||||||||||
excluding foreclosure, OREO and other credit-related expenses | 39.6 | % | 74.5 | % | |||||||||||||||
Adjusted basis: | |||||||||||||||||||
including foreclosure, OREO and other credit-related expenses | 39.9 | % | 71.3 | % | |||||||||||||||
excluding foreclosure, OREO and other credit-related expenses | 39.6 | % | 62.0 | % |
Business Segments Selected Financial Information | Table 7C | ||||||||||||||||||
Banking and Wealth Management | Mortgage Banking | Corporate Services | Eliminations | Consolidated | |||||||||||||||
(dollars in thousands) | |||||||||||||||||||
Nine Months Ended September 30, 2012 | |||||||||||||||||||
Net interest income | $ | 335,933 | $ | 35,391 | $ | (4,523 | ) | $ | — | $ | 366,801 | ||||||||
Provision for loan and lease losses | 18,903 | 2,568 | — | — | 21,471 | ||||||||||||||
Net interest income after provision for loan and lease losses | 317,030 | 32,823 | (4,523 | ) | — | 345,330 | |||||||||||||
Noninterest income | 71,441 | 173,090 | 84 | — | 244,615 | ||||||||||||||
Noninterest expense: | |||||||||||||||||||
Foreclosure and OREO expense | 37,803 | 7,764 | — | — | 45,567 | ||||||||||||||
Other credit-related expenses | 3,300 | 19,727 | 14 | — | 23,041 | ||||||||||||||
All other noninterest expense | 173,936 | 183,450 | 92,579 | — | 449,965 | ||||||||||||||
Income (loss) before income tax | 173,432 | (5,028 | ) | (97,032 | ) | — | 71,372 | ||||||||||||
Adjustment items (pre-tax): | |||||||||||||||||||
Increase in Bank of Florida non-accretable discount | 4,369 | — | — | — | 4,369 | ||||||||||||||
MSR impairment | — | 63,508 | — | — | 63,508 | ||||||||||||||
Transaction and non-recurring regulatory related expense | — | 11,840 | 8,517 | — | 20,357 | ||||||||||||||
Adjusted income (loss) before income tax | $ | 177,801 | $ | 70,320 | $ | (88,515 | ) | $ | — | $ | 159,606 | ||||||||
Total assets as of September 30, 2012 | $ | 14,696,893 | $ | 1,838,964 | $ | 129,141 | $ | (155,558 | ) | $ | 16,509,440 | ||||||||
Efficiency Ratios: | |||||||||||||||||||
GAAP basis: | |||||||||||||||||||
including foreclosure, OREO and other credit-related expenses | 52.8 | % | 84.8 | % | |||||||||||||||
excluding foreclosure, OREO and other credit-related expenses | 42.7 | % | 73.6 | % | |||||||||||||||
Adjusted basis: | |||||||||||||||||||
including foreclosure, OREO and other credit-related expenses | 52.8 | % | 73.8 | % | |||||||||||||||
excluding foreclosure, OREO and other credit-related expenses | 42.7 | % | 63.7 | % |
Business Segments Selected Financial Information | Table 7D | ||||||||||||||||||
Banking and Wealth Management | Mortgage Banking | Corporate Services | Eliminations | Consolidated | |||||||||||||||
(dollars in thousands) | |||||||||||||||||||
Nine Months Ended September 30, 2011 | |||||||||||||||||||
Net interest income | $ | 315,298 | $ | 27,164 | $ | (4,990 | ) | $ | — | $ | 337,472 | ||||||||
Provision for loan and lease losses | 38,540 | 752 | — | — | 39,292 | ||||||||||||||
Net interest income after provision for loan and lease losses | 276,758 | 26,412 | (4,990 | ) | — | 298,180 | |||||||||||||
Noninterest income | 56,036 | 111,398 | 4,708 | — | 172,142 | ||||||||||||||
Noninterest expense: | |||||||||||||||||||
Foreclosure and OREO expense | 10,878 | 13,118 | 1 | — | 23,997 | ||||||||||||||
Other credit-related expenses | 6,194 | 32,765 | — | — | 38,959 | ||||||||||||||
All other noninterest expense | 140,272 | 115,084 | 88,223 | — | 343,579 | ||||||||||||||
Income (loss) before income tax | 175,450 | (23,157 | ) | (88,506 | ) | — | 63,787 | ||||||||||||
Adjustment items (pre-tax): | |||||||||||||||||||
Increase in Bank of Florida non-accretable discount | 1,289 | — | — | — | 1,289 | ||||||||||||||
Impact of change in ALLL methodology | 1,900 | — | — | — | 1,900 | ||||||||||||||
Early adoption of TDR guidance and policy change | 10,039 | — | — | — | 10,039 | ||||||||||||||
MSR impairment | — | 20,684 | — | — | 20,684 | ||||||||||||||
Gain on repurchase of trust preferred securities | — | — | (4,693 | ) | — | (4,693 | ) | ||||||||||||
Decrease in fair value of Tygris indemnification asset | 8,680 | — | — | — | 8,680 | ||||||||||||||
Transaction and non-recurring regulatory related expense | — | 3,583 | 16,578 | — | 20,161 | ||||||||||||||
Adjusted income (loss) before income tax | $ | 197,358 | $ | 1,110 | $ | (76,621 | ) | $ | — | $ | 121,847 | ||||||||
Total assets as of September 30, 2011 | $ | 11,033,090 | $ | 1,618,689 | $ | 140,260 | $ | (241,275 | ) | $ | 12,550,764 | ||||||||
Efficiency Ratios: | |||||||||||||||||||
GAAP basis: | |||||||||||||||||||
including foreclosure, OREO and other credit-related expenses | 42.4 | % | 79.8 | % | |||||||||||||||
excluding foreclosure, OREO and other credit-related expenses | 37.8 | % | 67.4 | % | |||||||||||||||
Adjusted basis: | |||||||||||||||||||
including foreclosure, OREO and other credit-related expenses | 40.0 | % | 71.9 | % | |||||||||||||||
excluding foreclosure, OREO and other credit-related expenses | 35.4 | % | 59.9 | % |
Banking and Wealth Management | Table 8 | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(dollars in thousands) | 2012 | 2011 | 2012 | 2011 | |||||||||||
Interest income | |||||||||||||||
Interest and fees on loans and leases | $ | 128,287 | $ | 110,584 | $ | 371,486 | $ | 337,246 | |||||||
Interest and dividends on investment securities | 20,880 | 27,201 | 62,127 | 82,775 | |||||||||||
Other interest income (1) | 8,724 | 7,232 | 24,009 | 23,189 | |||||||||||
Total interest income | 157,891 | 145,017 | 457,622 | 443,210 | |||||||||||
Interest expense | |||||||||||||||
Deposits | 22,484 | 23,953 | 63,865 | 75,539 | |||||||||||
Other borrowings | 11,078 | 7,817 | 28,081 | 24,488 | |||||||||||
Other interest expense (2) | 9,742 | 8,981 | 29,743 | 27,885 | |||||||||||
Total interest expense | 43,304 | 40,751 | 121,689 | 127,912 | |||||||||||
Net interest income | 114,587 | 104,266 | 335,933 | 315,298 | |||||||||||
Provision for loan and lease losses | 3,547 | 13,119 | 18,903 | 38,540 | |||||||||||
Net interest income after provision for loan and lease losses | 111,040 | 91,147 | 317,030 | 276,758 | |||||||||||
Noninterest income | |||||||||||||||
Gain on sale of loans | 8,623 | 2,941 | 30,094 | 3,389 | |||||||||||
Other | 11,985 | 21,462 | 41,347 | 52,647 | |||||||||||
Total noninterest income | 20,608 | 24,403 | 71,441 | 56,036 | |||||||||||
Noninterest expense | |||||||||||||||
Salaries, commissions and employee benefits | 22,028 | 17,950 | 64,739 | 56,656 | |||||||||||
Equipment and occupancy | 12,185 | 10,002 | 35,816 | 24,834 | |||||||||||
Foreclosure and OREO | 17,463 | (2,328 | ) | 37,803 | 10,878 | ||||||||||
Other general and administrative | 28,192 | 25,727 | 76,681 | 64,976 | |||||||||||
Total noninterest expense | 79,868 | 51,351 | 215,039 | 157,344 | |||||||||||
Income before income taxes | $ | 51,780 | $ | 64,199 | $ | 173,432 | $ | 175,450 |
(1) | Other interest income includes interest income from interest-bearing cash and cash equivalents and intersegment interest income. |
(2) | Other interest expense represents intersegment interest expense. |
Mortgage Banking | Table 9 | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(dollars in thousands) | 2012 | 2011 | 2012 | 2011 | |||||||||||
Net interest income | $ | 13,105 | $ | 8,255 | $ | 35,391 | $ | 27,164 | |||||||
Provision for loan and lease losses | 812 | (861 | ) | 2,568 | 752 | ||||||||||
Net interest income after provision for loan and lease losses | 12,293 | 9,116 | 32,823 | 26,412 | |||||||||||
Noninterest income | |||||||||||||||
Gain on sale of loans | 77,123 | 17,979 | 173,754 | 36,465 | |||||||||||
Loan servicing fee income: | |||||||||||||||
Loan servicing fee income | 44,538 | 48,413 | 136,925 | 144,455 | |||||||||||
Amortization and impairment of MSR | (54,520 | ) | (44,052 | ) | (163,281 | ) | (88,270 | ) | |||||||
Net loan servicing income (loss) | (9,982 | ) | 4,361 | (26,356 | ) | 56,185 | |||||||||
Other | 9,552 | 6,616 | 25,692 | 18,748 | |||||||||||
Total noninterest income | 76,693 | 28,956 | 173,090 | 111,398 | |||||||||||
Noninterest expense | |||||||||||||||
Salaries, commissions and employee benefits | 43,648 | 24,348 | 109,261 | 69,817 | |||||||||||
Equipment and occupancy | 5,701 | 3,979 | 14,858 | 12,380 | |||||||||||
Professional fees | 3,131 | 4,044 | 14,058 | 7,045 | |||||||||||
Foreclosure and OREO | 2,176 | 5,660 | 7,764 | 13,118 | |||||||||||
Other credit-related expenses | 3,544 | 11,135 | 19,727 | 32,765 | |||||||||||
Other general and administrative | 13,420 | 9,675 | 45,273 | 25,842 | |||||||||||
Total noninterest expense | 71,620 | 58,841 | 210,941 | 160,967 | |||||||||||
Loss before income taxes | $ | 17,366 | $ | (20,769 | ) | $ | (5,028 | ) | $ | (23,157 | ) |
Corporate Services | Table 10 | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(dollars in thousands) | 2012 | 2011 | 2012 | 2011 | |||||||||||
Net interest income | $ | (1,498 | ) | $ | (1,652 | ) | $ | (4,523 | ) | $ | (4,990 | ) | |||
Noninterest income | (2 | ) | (2 | ) | 84 | 4,708 | |||||||||
Noninterest expense | |||||||||||||||
Salaries, commissions and employee benefits | 19,723 | 15,459 | 54,266 | 44,978 | |||||||||||
Equipment and occupancy | 6,306 | 4,865 | 17,722 | 13,671 | |||||||||||
Other general and administrative | 6,452 | 9,069 | 20,605 | 29,575 | |||||||||||
Total noninterest expense | 32,481 | 29,393 | 92,593 | 88,224 | |||||||||||
Loss before income taxes | $ | (33,981 | ) | $ | (31,047 | ) | $ | (97,032 | ) | $ | (88,506 | ) |
Investment Securities | Table 11 | ||||||||||||||||||
(dollars in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Carrying Amount | ||||||||||||||
September 30, 2012 | |||||||||||||||||||
Available for sale: | |||||||||||||||||||
Residential collateralized mortgage obligations (CMO) securities - agency | $ | 67 | $ | 6 | $ | — | $ | 73 | $ | 73 | |||||||||
Residential CMO securities - nonagency | 1,705,372 | 24,172 | 15,340 | 1,714,204 | 1,714,204 | ||||||||||||||
Residential mortgage-backed securities (MBS) - agency | 246 | 17 | — | 263 | 263 | ||||||||||||||
Asset-backed securities (ABS) | 10,551 | — | 2,775 | 7,776 | 7,776 | ||||||||||||||
Equity securities | 77 | 163 | — | 240 | 240 | ||||||||||||||
Total available for sale securities | 1,716,313 | 24,358 | 18,115 | 1,722,556 | 1,722,556 | ||||||||||||||
Held to maturity: | |||||||||||||||||||
Residential CMO securities - agency | 132,946 | 6,117 | — | 139,063 | 132,946 | ||||||||||||||
Residential MBS - agency | 32,871 | 2,339 | — | 35,210 | 32,871 | ||||||||||||||
Corporate securities | 4,987 | — | 2,032 | 2,955 | 4,987 | ||||||||||||||
Total held to maturity securities | 170,804 | 8,456 | 2,032 | 177,228 | 170,804 | ||||||||||||||
Total investment securities | $ | 1,887,117 | $ | 32,814 | $ | 20,147 | $ | 1,899,784 | $ | 1,893,360 |
December 31, 2011 | |||||||||||||||||||
Available for sale: | |||||||||||||||||||
Residential CMO securities - agency | $ | 96 | $ | 8 | $ | — | $ | 104 | $ | 104 | |||||||||
Residential CMO securities - nonagency | 1,919,046 | 17,609 | 40,837 | 1,895,818 | 1,895,818 | ||||||||||||||
Residential MBS agency | 317 | 21 | — | 338 | 338 | ||||||||||||||
Asset-backed securities | 10,573 | — | 3,096 | 7,477 | 7,477 | ||||||||||||||
Equity securities | 77 | 108 | — | 185 | 185 | ||||||||||||||
Total available for sale securities | 1,930,109 | 17,746 | 43,933 | 1,903,922 | 1,903,922 | ||||||||||||||
Held to maturity: | |||||||||||||||||||
Residential CMO securities - agency | 159,882 | 6,029 | 78 | 165,833 | 159,882 | ||||||||||||||
Residential MBS - agency | 19,132 | 1,464 | — | 20,596 | 19,132 | ||||||||||||||
Corporate securities | 10,504 | — | 2,583 | 7,921 | 10,504 | ||||||||||||||
Total held to maturity securities | 189,518 | 7,493 | 2,661 | 194,350 | 189,518 | ||||||||||||||
Total investment securities | $ | 2,119,627 | $ | 25,239 | $ | 46,594 | $ | 2,098,272 | $ | 2,093,440 |
Loans Held for Sale | Table 12A | ||||||
(dollars in thousands) | September 30, 2012 | December 31, 2011 | |||||
Government insured pool buyouts | $ | 68,533 | $ | 1,939,114 | |||
Mortgage warehouse (carried at fair value) | 1,025,467 | 761,818 | |||||
Other | 309,205 | 24,354 | |||||
$ | 1,403,205 | $ | 2,725,286 |
Mortgage Warehouse | Table 12B | ||||||
(dollars in thousands) | September 30, 2012 | December 31, 2011 | |||||
30 days or less | $ | 542,013 | $ | 431,880 | |||
31- 90 days | 359,532 | 310,326 | |||||
Greater than 90 days | 123,922 | 19,612 | |||||
$ | 1,025,467 | $ | 761,818 |
Loans and Leases Held for Investment | Table 13 | ||||||
(dollars in thousands) | September 30, 2012 | December 31, 2011 | |||||
Residential mortgages: | |||||||
Residential | 4,127,021 | 3,727,542 | |||||
Government insured pool buyouts | 2,680,378 | 829,299 | |||||
Commercial and commercial real estate | 2,315,494 | 1,165,384 | |||||
Lease financing receivables | 742,332 | 588,501 | |||||
Home equity lines | 183,692 | 200,112 | |||||
Consumer and credit card | 7,809 | 8,443 | |||||
Total loans and leases, net of discounts | 10,056,726 | 6,519,281 | |||||
Allowance for loan and lease losses | (76,469 | ) | (77,765 | ) | |||
Total loans and leases, net | $ | 9,980,257 | $ | 6,441,516 | |||
The balances presented above include: | |||||||
Net purchase loan and lease discounts | $ | 188,924 | $ | 237,170 | |||
Net deferred loan and lease origination costs | 22,282 | 19,057 |
Change in Mortgage Servicing Rights | Table 14 | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Balance, beginning of period | $ | 415,962 | $ | 553,319 | $ | 489,496 | $ | 573,196 | |||||||
Originated servicing rights capitalized upon sale of loans | 21,034 | 11,537 | 58,061 | 38,194 | |||||||||||
Amortization | (36,292 | ) | (23,369 | ) | (99,773 | ) | (67,586 | ) | |||||||
Increase in valuation allowance, net | (18,229 | ) | (20,684 | ) | (63,508 | ) | (20,684 | ) | |||||||
Other | (702 | ) | (975 | ) | (2,503 | ) | (3,292 | ) | |||||||
Balance, end of period | $ | 381,773 | $ | 519,828 | $ | 381,773 | $ | 519,828 | |||||||
Valuation allowance: | |||||||||||||||
Balance, beginning of period | $ | 84,734 | $ | — | $ | 39,455 | $ | — | |||||||
Increase in valuation allowance | 21,735 | 20,684 | 67,014 | 20,684 | |||||||||||
Recoveries | (3,506 | ) | — | (3,506 | ) | — | |||||||||
Balance, end of period | $ | 102,963 | $ | 20,684 | $ | 102,963 | $ | 20,684 |
Carrying Value of ACI Loans | Table 15 | ||||||||||
(dollars in thousands) | Bank of Florida | Other | Total | ||||||||
Under ASC 310-30 | |||||||||||
September 30, 2012 | |||||||||||
UPB or contractual net investment | $ | 576,200 | $ | 607,979 | $ | 1,184,179 | |||||
Plus: contractual interest due or unearned income | 229,052 | 466,709 | 695,761 | ||||||||
Contractual cash flows due | 805,252 | 1,074,688 | 1,879,940 | ||||||||
Less: nonaccretable difference | 160,226 | 421,995 | 582,221 | ||||||||
Less: Allowance for loan losses | 16,006 | 5,175 | 21,181 | ||||||||
Expected cash flows | 629,020 | 647,518 | 1,276,538 | ||||||||
Less: accretable yield | 105,366 | 63,010 | 168,376 | ||||||||
Carrying value | $ | 523,654 | $ | 584,508 | $ | 1,108,162 | |||||
Carrying value as a percentage of UPB or contractual net investment | 91 | % | 96 | % | 94 | % | |||||
December 31, 2011 | |||||||||||
UPB or contractual net investment | $ | 685,967 | $ | 543,240 | $ | 1,229,207 | |||||
Plus: contractual interest due or unearned income | 267,879 | 470,601 | 738,480 | ||||||||
Contractual cash flows due | 953,846 | 1,013,841 | 1,967,687 | ||||||||
Less: nonaccretable difference | 179,342 | 421,446 | 600,788 | ||||||||
Less: Allowance for loan losses | 11,638 | 4,351 | 15,989 | ||||||||
Expected cash flows | 762,866 | 588,044 | 1,350,910 | ||||||||
Less: accretable yield | 141,750 | 65,973 | 207,723 | ||||||||
Carrying value | $ | 621,116 | $ | 522,071 | $ | 1,143,187 | |||||
Carrying value as a percentage of UPB or contractual net investment | 91 | % | 95 | % | 93 | % |
Recorded Investment of Non-ACI Loans and Leases | Table 16 | ||||||||||||||
(dollars in thousands) | Bank of Florida | Tygris | Other | Total | |||||||||||
Under ASC 310-20 | |||||||||||||||
September 30, 2012 | |||||||||||||||
UPB or contractual net investment | $ | 44,615 | $ | 124,073 | $ | 3,380,679 | $ | 3,549,367 | |||||||
Less: net purchase discount | 14,945 | 23,674 | 92,295 | 130,914 | |||||||||||
Recorded investment | $ | 29,670 | $ | 100,399 | $ | 3,288,384 | $ | 3,418,453 | |||||||
Recorded investment as a percentage of UPB or contractual net investment | 67 | % | 81 | % | 97 | % | 96 | % | |||||||
December 31, 2011 | |||||||||||||||
UPB or contractual net investment | $ | 58,519 | $ | 225,794 | $ | 2,067,453 | $ | 2,351,766 | |||||||
Less: net purchase discount | 16,959 | 49,708 | 80,720 | 147,387 | |||||||||||
Recorded investment | $ | 41,560 | $ | 176,086 | $ | 1,986,733 | $ | 2,204,379 | |||||||
Recorded investment as a percentage of UPB or contractual net investment | 71 | % | 78 | % | 96 | % | 94 | % |
Non-Performing Assets (1) | Table 17 | ||||||
(dollars in thousands) | September 30, 2012 | December 31, 2011 | |||||
Non-accrual loans and leases: | |||||||
Residential mortgages | $ | 75,355 | $ | 81,594 | |||
Commercial and commercial real estate | 85,306 | 104,829 | |||||
Lease financing receivables | 2,018 | 2,385 | |||||
Home equity lines | 4,492 | 4,251 | |||||
Consumer and credit card | 479 | 419 | |||||
Total non-accrual loans and leases | 167,650 | 193,478 | |||||
Accruing loans 90 days or more past due | 1,973 | 6,673 | |||||
Total non-performing loans (NPL) | 169,623 | 200,151 | |||||
Other real estate owned (OREO) | 43,612 | 42,664 | |||||
Total non-performing assets (NPA) | 213,235 | 242,815 | |||||
Troubled debt restructurings (TDR) less than 90 days past due | 82,030 | 92,628 | |||||
Total NPA and TDR (1) | $ | 295,265 | $ | 335,443 | |||
Total NPA and TDR | $ | 295,265 | $ | 335,443 | |||
Government-insured 90 days or more past due still accruing | 1,684,550 | 1,570,787 | |||||
Bank of Florida ACI loans and OREO: | |||||||
90 days or more past due | 117,506 | 149,743 | |||||
OREO | 18,557 | 19,456 | |||||
Total regulatory NPA and TDR | $ | 2,115,878 | $ | 2,075,429 |
Adjusted credit quality ratios excluding government-insured loans and ACI loans: (1) | |||||
NPL to total loans | 1.49 | % | 2.18 | % | |
NPA to total assets | 1.29 | % | 1.86 | % | |
NPA and TDR to total assets | 1.79 | % | 2.57 | % | |
Credit quality ratios including government-insured loans and ACI loans: | |||||
NPL to total loans | 17.32 | % | 20.95 | % | |
NPA to total assets | 12.32 | % | 15.20 | % | |
NPA and TDR to total assets | 12.82 | % | 15.91 | % |
(1) | We define non-performing assets, or NPA, as nonaccrual loans, accruing loans past due 90 days or more and foreclosed property. Our NPA calculation excludes government-insured pool buyout loans for which payment is insured by the government. We also exclude ACI loans and foreclosed property acquired in the Bank of Florida acquisition because, as of September 30, 2012, we expect to fully collect the carrying value of such loans and foreclosed property. |
Analysis for Loan and Lease Losses | Table 18A | ||||||||||||||||||||||
September 30, 2012 | December 31, 2011 | ||||||||||||||||||||||
(dollars in thousands) | Excluding ACI Loans | ACI Loans | Total | Excluding ACI Loans | ACI Loans | Total | |||||||||||||||||
Residential mortgages | $ | 27,451 | $ | 5,175 | $ | 32,626 | $ | 37,990 | $ | 5,464 | $ | 43,454 | |||||||||||
Commercial and commercial real estate | 19,702 | 16,006 | 35,708 | 17,684 | 10,525 | 28,209 | |||||||||||||||||
Lease financing receivables | 4,431 | — | 4,431 | 3,766 | — | 3,766 | |||||||||||||||||
Home equity lines | 3,525 | — | 3,525 | 2,186 | — | 2,186 | |||||||||||||||||
Consumer and credit card | 179 | — | 179 | 150 | — | 150 | |||||||||||||||||
Total ALLL | $ | 55,288 | $ | 21,181 | $ | 76,469 | $ | 61,776 | $ | 15,989 | $ | 77,765 | |||||||||||
ALLL as a percentage of loans and leases held for investment | 0.62 | % | 1.88 | % | 0.76 | % | 1.15 | % | 1.38 | % | 1.19 | % | |||||||||||
Residential mortgages | $ | 6,145,567 | $ | 661,832 | $ | 6,807,399 | $ | 3,943,046 | $ | 613,795 | $ | 4,556,841 | |||||||||||
Commercial and commercial real estate | 1,847,983 | 467,511 | 2,315,494 | 620,003 | 545,381 | 1,165,384 | |||||||||||||||||
Lease financing receivables | 742,332 | — | 742,332 | 588,501 | — | 588,501 | |||||||||||||||||
Home equity lines | 183,692 | — | 183,692 | 200,112 | — | 200,112 | |||||||||||||||||
Consumer and credit card | 7,809 | — | 7,809 | 8,443 | — | 8,443 | |||||||||||||||||
Total loans and leases held for investment | $ | 8,927,383 | $ | 1,129,343 | $ | 10,056,726 | $ | 5,360,105 | $ | 1,159,176 | $ | 6,519,281 |
Allowance for Loan and Lease Losses Activity | Table 18B | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(dollars in thousands) | 2012 | 2011 | 2012 | 2011 | |||||||||||
ALLL, beginning of period | $ | 77,393 | $ | 89,209 | $ | 77,765 | $ | 93,689 | |||||||
Charge-offs: | |||||||||||||||
Residential mortgages | 3,868 | 9,778 | 14,701 | 24,422 | |||||||||||
Commercial and commercial real estate | 2,636 | 6,058 | 6,640 | 16,971 | |||||||||||
Lease financing receivables | 805 | 1,473 | 2,903 | 4,601 | |||||||||||
Home equity lines | 1,215 | 763 | 2,807 | 4,079 | |||||||||||
Consumer and credit card | 61 | 41 | 112 | 181 | |||||||||||
Total charge-offs | 8,585 | 18,113 | 27,163 | 50,254 | |||||||||||
Recoveries: | |||||||||||||||
Residential mortgages | 52 | 12 | 357 | 23 | |||||||||||
Commercial and commercial real estate | 3,023 | 792 | 3,602 | 1,379 | |||||||||||
Lease financing receivables | 159 | 38 | 224 | 51 | |||||||||||
Home equity lines | 52 | 2 | 168 | 13 | |||||||||||
Consumer and credit card | 16 | 16 | 45 | 21 | |||||||||||
Total recoveries | 3,302 | 860 | 4,396 | 1,487 | |||||||||||
Net charge-offs | 5,283 | 17,253 | 22,767 | 48,767 | |||||||||||
Provision for loan and lease losses | 4,359 | 12,258 | 21,471 | 39,292 | |||||||||||
Other | — | (387 | ) | — | (387 | ) | |||||||||
ALLL, end of period | $ | 76,469 | $ | 83,827 | $ | 76,469 | $ | 83,827 | |||||||
Net charge-offs to average loans held for investment | 0.25 | % | 1.03 | % | 0.40 | % | 1.01 | % |
Allowance for Loan and Lease Losses Ratios | Table 19 | ||||||
(dollars in thousands) | September 30, 2012 | December 31, 2011 | |||||
ALLL | $ | 76,469 | $ | 77,765 | |||
Loans and leases held for investment | 10,056,726 | 6,519,281 | |||||
ALLL as a percentage of loans and leases held for investment | 0.76 | % | 1.19 | % | |||
ALLL excluding ACI | $ | 55,288 | $ | 61,776 | |||
Loans and leases held for investment excluding ACI | 8,927,383 | 5,360,105 | |||||
ALLL as a percentage of loans and leases held for investment excluding ACI | 0.62 | % | 1.15 | % |
Loan Repurchase Activity | Table 20 | ||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
(dollars in thousands) | September 30, 2012 | September 30, 2011 | September 30, 2012 | September 30, 2011 | |||||||||||
Agency | 26 | 68 | 107 | 136 | |||||||||||
Agency Aggregators / Non-GSE (1) | 83 | 102 | 247 | 234 | |||||||||||
Repurchase requests received | 109 | 170 | 354 | 370 | |||||||||||
Agency | 22 | 33 | 79 | 64 | |||||||||||
Agency Aggregators / Non-GSE (1) | 56 | 36 | 138 | 111 | |||||||||||
Requests successfully defended | 78 | 69 | 217 | 175 | |||||||||||
Agency | 16 | 23 | 41 | 40 | |||||||||||
Agency Aggregators / Non-GSE (1) | 25 | 20 | 58 | 59 | |||||||||||
Loans repurchased, indemnified or made whole | 41 | 43 | 99 | 99 | |||||||||||
Agency | $ | 1,595 | $ | 662 | $ | 3,778 | $ | 2,624 | |||||||
Agency Aggregators / Non-GSE (1) | 3,095 | 2,182 | 6,573 | 7,480 | |||||||||||
Net realized losses on loan repurchases | $ | 4,690 | $ | 2,844 | $ | 10,351 | $ | 10,104 | |||||||
Years of origination of loans repurchased | 2004-2011 | 2001-2010 | 2000-2011 | 2001-2010 |
(1) | Includes a majority of agency deliverable products that were sold to large aggregators of agency product who securitized and sold the loans to the agencies. |
Reserves for Loans Sold or Securitized | Table 21 | ||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
(dollars in thousands) | September 30, 2012 | September 30, 2011 | September 30, 2012 | September 30, 2011 | |||||||||||
Balance, beginning of period | $ | 34,000 | $ | 33,209 | $ | 32,000 | $ | 26,798 | |||||||
Provision for new sales/securitizations | (13 | ) | 19 | 677 | 738 | ||||||||||
Provision for changes in estimate of existing reserves | 1,703 | 2,617 | 8,674 | 15,569 | |||||||||||
Net realized losses on repurchases | (4,690 | ) | (2,844 | ) | (10,351 | ) | (10,104 | ) | |||||||
Balance, end of period | $ | 31,000 | $ | 33,001 | $ | 31,000 | $ | 33,001 | |||||||
Quarters of coverage ratio(1) | 10 | 10 |
(1) | Quarters of coverage ratio is calculated as the current reserve for repurchases divided by the average realized losses over the previous four quarters. |
Sensitivity of Repurchase Reserve | Table 22 | ||||||||||||||||||
Frequency and Severity | |||||||||||||||||||
(dollars in thousands) | Up 20% | Up 10% | Base | Down 10% | Down 20% | ||||||||||||||
Reserve for originated loan repurchases | $ | 55,477 | $ | 42,477 | $ | 31,000 | $ | 21,046 | $ | 12,690 |
Reserves for Repurchase Obligations for Loans Serviced | Table 23 | ||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
(dollars in thousands) | September 30, 2012 | September 30, 2011 | September 30, 2012 | September 30, 2011 | |||||||||||
Balance, beginning of period | $ | 27,640 | $ | 25,144 | $ | 30,364 | $ | 30,000 | |||||||
Provision for changes in estimate of existing reserves | 3,032 | 10,122 | 8,931 | 12,306 | |||||||||||
Net realized losses on repurchases | (3,363 | ) | (6,467 | ) | (11,986 | ) | (13,507 | ) | |||||||
Balance, end of period | $ | 27,309 | $ | 28,799 | $ | 27,309 | $ | 28,799 | |||||||
Quarters of coverage ratio (1) | 7 | 7 |
(1) | Quarters of coverage ratio is calculated as the current reserve for repurchases divided by the average realized losses over the previous four quarters. |
Sensitivity of Servicing Repurchase Losses | Table 24 | ||||||||||||||||||
Frequency and Severity | |||||||||||||||||||
(dollars in thousands) | Up 20% | Up 10% | Base | Down 10% | Down 20% | ||||||||||||||
Reserve for servicing repurchase losses | $ | 36,556 | $ | 31,906 | $ | 27,309 | $ | 23,820 | $ | 20,383 |
Deposits | Table 25 | ||||||
(dollars in thousands) | September 30, 2012 | December 31, 2011 | |||||
Noninterest-bearing demand | $ | 1,475,204 | $ | 1,234,615 | |||
Interest-bearing demand | 2,423,689 | 2,124,306 | |||||
Market-based money market accounts | 427,852 | 455,204 | |||||
Savings and money market accounts, excluding market-based | 4,311,055 | 3,759,045 | |||||
Market-based time | 803,463 | 901,053 | |||||
Time, excluding market-based | 2,374,663 | 1,791,540 | |||||
Total deposits | $ | 11,815,926 | $ | 10,265,763 |
FHLB Borrowings | Table 26 | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
(dollars in thousands) | 2012 | 2011 | 2012 | 2011 | |||||||||||
Fixed-rate advances: | |||||||||||||||
Average daily balance | $ | 1,647,438 | $ | 649,738 | $ | 1,392,411 | $ | 678,099 | |||||||
Weighted-average interest rate | 1.85 | % | 3.58 | % | 1.85 | % | 3.60 | % | |||||||
Maximum month-end amount | $ | 2,301,286 | $ | 666,314 | $ | 2,301,286 | $ | 726,325 | |||||||
Convertible advances: | |||||||||||||||
Average daily balance | $ | 18,957 | $ | 44,000 | $ | 31,029 | $ | 44,000 | |||||||
Weighted-average interest rate | 4.30 | % | 4.42 | % | 4.41 | % | 4.42 | % | |||||||
Maximum month-end amount | $ | 17,000 | $ | 44,000 | $ | 44,000 | $ | 44,000 | |||||||
Overnight advances: | |||||||||||||||
Average daily balance | $ | 136,674 | $ | 35,457 | $ | 221,182 | $ | 14,183 | |||||||
Weighted-average interest rate | 0.40 | % | 0.36 | % | 0.39 | % | 0.37 | % | |||||||
Maximum month-end amount | $ | 105,500 | $ | 75,000 | $ | 840,500 | $ | 410,000 |
Regulatory Capital (bank level) | Table 27 | |||||||
(dollars in thousands) | September 30, 2012 | December 31, 2011 | ||||||
Shareholders’ equity | $ | 1,339,669 | $ | 1,070,887 | ||||
Less: | Goodwill and other intangibles | (16,586 | ) | (17,642 | ) | |||
Disallowed servicing asset | (33,366 | ) | (38,925 | ) | ||||
Disallowed deferred tax asset | (69,412 | ) | (71,803 | ) | ||||
Add: | Accumulated losses on securities and cash flow hedges | 103,238 | 105,682 | |||||
Tier 1 Capital | 1,323,543 | 1,048,199 | ||||||
Less: | Low-level recourse and residual interests | — | (21,587 | ) | ||||
Add: | Allowance for loan and lease losses | 76,469 | 77,765 | |||||
Total regulatory capital | $ | 1,400,012 | $ | 1,104,377 | ||||
Adjusted total assets | $ | 16,488,067 | $ | 13,081,401 | ||||
Risk-weighted assets | 8,701,164 | 7,043,371 |
Regulatory Capital Ratios (bank level) | Table 28 | |||||||||||||||||||
Actual | For OCC Capital Adequacy Purposes | To Be Well Capitalized Under Prompt Corrective Action Provisions | ||||||||||||||||||
(dollars in thousands) | Capital | Ratio | Minimum Amount | Ratio | Minimum Amount | Ratio | ||||||||||||||
September 30, 2012 | ||||||||||||||||||||
Tier 1 capital to adjusted tangible assets | $ | 1,323,543 | 8.0 | % | $ | 659,523 | 4.0 | % | $ | 824,403 | 5.0 | % | ||||||||
Total capital to risk-weighted assets | 1,400,012 | 16.1 | 696,093 | 8.0 | 870,116 | 10.0 | ||||||||||||||
Tier 1 capital to risk-weighted assets | 1,323,543 | 15.2 | N/A | N/A | 522,070 | 6.0 | ||||||||||||||
December 31, 2011 | ||||||||||||||||||||
Tier 1 capital to adjusted tangible assets | $ | 1,048,199 | 8.0 | % | $ | 523,256 | 4.0 | % | $ | 654,070 | 5.0 | % | ||||||||
Total capital to risk-weighted assets | 1,104,377 | 15.7 | 563,470 | 8.0 | 704,337 | 10.0 | ||||||||||||||
Tier 1 capital to risk-weighted assets | 1,026,612 | 14.6 | N/A | N/A | 422,602 | 6.0 |
Interest Rate Sensitivity | Table 29 | ||||||||||||
(dollars in thousands) | September 30, 2012 | December 31, 2011 | |||||||||||
NPoV | % of Assets | NPoV | % of Assets | ||||||||||
Up 300 basis points | $ | 2,506,938 | 15.3 | % | $ | 1,838,181 | 14.3 | % | |||||
Up 200 basis points | 2,377,026 | 14.3 | % | 1,860,204 | 14.2 | % | |||||||
Up 100 basis points | 2,152,194 | 12.8 | % | 1,830,916 | 13.7 | % | |||||||
Actual | 1,862,054 | 10.9 | % | 1,694,353 | 12.5 | % | |||||||
Down 100 basis points | 1,494,367 | 8.7 | % | 1,564,919 | 11.5 | % |
December 31, | |||||||||||
2011 | 2010 | 2009 | |||||||||
Net Income | $ | 52,729 | $ | 188,900 | $ | 53,365 | |||||
Unrealized Gains (Losses) on Debt Securities | |||||||||||
Reclassification of unrealized gains to earnings | (15,892 | ) | (21,975 | ) | (3,869 | ) | |||||
Unrealized gains (losses) due to changes in fair value | (40,711 | ) | 4,660 | 33,697 | |||||||
Other-than-temporary impairment loss (noncredit portion), net of accretion | (502 | ) | 1,159 | (1,661 | ) | ||||||
Tax effect | 21,196 | 6,371 | (10,170 | ) | |||||||
Change in unrealized gains (losses) on debt securities | (35,909 | ) | (9,785 | ) | 17,997 | ||||||
Interest Rate Swaps | |||||||||||
Net unrealized losses due to changes in fair value | (115,571 | ) | (29,506 | ) | (1,750 | ) | |||||
Reclassification of unrealized net losses to earnings | 7,515 | 5,388 | 4,079 | ||||||||
Tax effect | 41,272 | 8,784 | (1,041 | ) | |||||||
Change in interest rate swaps | (66,784 | ) | (15,334 | ) | 1,288 | ||||||
Other Comprehensive Income (Loss) | (102,693 | ) | (25,119 | ) | 19,285 | ||||||
Comprehensive Income (Loss) | $ | (49,964 | ) | $ | 163,781 | $ | 72,650 |
EverBank Financial Corp | |||
Date: | November 13, 2012 | /s/ Robert M. Clements | |
Robert M. Clements | |||
Chairman of the Board and Chief Executive Officer | |||
(Principal Executive Officer) | |||
Date: | November 13, 2012 | /s/ Steven J. Fischer | |
Steven J. Fischer | |||
Executive Vice President and Chief Financial Officer | |||
(Principal Financial and Accounting Officer) |
Exhibit No. | Description | |
2.2 | Stock and Asset Purchase Agreement, by and between EverBank Financial Corp and General Electric Capital Corporation, dated June 30, 2012 (filed as Exhibit 2.1 to the Company's Form 8-K filed with the SEC on July 2, 2012 and incorporated herein by reference). | |
2.3 | Amendment to Stock and Asset Purchase Agreement, dated as of October 1, 2012, by and between General Electric Capital Corporation and EverBank (filed as Exhibit 2.1 to the Company’s Form 8-K filed with the SEC on October 1, 2012 and incorporated herein by reference) | |
3.1 | Amended and Restated Certificate of Incorporation of EverBank Financial Corp.** | |
3.2 | Amended and Restated Bylaws of EverBank Financial Corp (filed as Exhibit 3.2 to the Company's Quarterly Report on Form 10-Q filed with the SEC on May 30, 2012 and incorporated herein by reference) | |
10.1 | Registration Rights Agreement, dated August 27, 2012, by and between EverBank Financial Corp and individuals and entities listed on Schedule I thereto (filed as Exhibit 10.33 to the Company's Form S-1/A filed with the SEC on October 29, 2012 and incorporated herein by reference) | |
31.1 | Certification of Chief Executive Officer pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.** | |
31.2 | Certification of Chief Financial Officer pursuant to Rule 13a-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.** | |
32.1 | Certification of Chief Executive Officer pursuant to Rule pursuant to Rule 13a-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.** | |
32.2 | Certification of Chief Financial Officer pursuant to Rule pursuant to Rule 13a-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.** | |
101 | The following materials from the Company’s 10-Q for the period ended September 30, 2012, formatted in Extensible Business Reporting Language (XBRL): (a) Condensed Consolidated Balance Sheets; (b) Condensed Consolidated Statements of Income; (c) Condensed Consolidated Statements of Comprehensive Income (Loss); (d) Condensed Consolidated Statements of Shareholders’ Equity; (e) Condensed Consolidated Statements of Cash Flows; and (f) Notes to Condensed Consolidated Financial Statements.* | |
* | Furnished herewith. Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections. | |
** | Filed herewith |
(i) | The restrictions set forth in this Section (c) shall not apply to a duly authorized employee benefit plan of the Corporation. |
(ii) | Treatment of Excess Securities. |
(1) | No officer, director, employee or agent of the Corporation shall record any Prohibited Transfer, and a purported transferee of a Prohibited Transfer (a “Purported Transferee”) shall not be recognized as a stockholder of the Corporation for any purpose whatsoever in respect of Excess Securities. The Purported Transferee shall not be entitled with respect to Excess Securities to any rights of stockholders of the Corporation, including, without limitation, the right to vote such Excess Securities and to receive dividends or distributions, whether liquidating or otherwise, in respect thereof, if any. Once the Excess Securities have been acquired in a Transfer that is not a Prohibited Transfer, such securities shall cease to be Excess Securities. |
(a) | The Board of Directors shall consist of not less than seven (7) nor more than fifteen (15) members, the exact number of which shall be fixed from time to time by the affirmative vote of a majority of the entire Board of Directors. |
(a) | Unless otherwise required by law, special meetings of stockholders, for any purpose or purposes, (i) may be called by either (A) the Chairman of the Board of Directors, (B) the Chief Executive Officer, or (C) the President, if there be one, or (ii) shall be called by the Secretary or an Assistant Secretary at the request in writing of (A) the Board of Directors, (B) a committee of the Board of Directors that has been duly designated by the Board of Directors and whose powers and authority expressly include the power to call such meetings or (C) the holders of at least twenty five percent (25%) of the voting power of the Corporation's then outstanding Capital Stock entitled to vote generally in the election of directors. Other than as set forth in clause (ii)(C) of the preceding sentence, any power of the stockholders to call a special meeting of stockholders is hereby specifically denied. |
(a) | The Corporation may, to the extent authorized from time to time by the Board of Directors, provide rights to indemnification and to the advancement of expenses to employees and agents of the Corporation similar to those conferred in this Article EIGHTH to directors and officers of the Corporation. |
1. | I have reviewed this Quarterly Report on Form 10-Q of EverBank Financial Corp; |
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 registrant’s 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)) 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. | Evaluated the effectiveness of the registrant’s 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 |
c. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s 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 registrant’s 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 registrant’s internal control over financial reporting. |
/s/ Robert M. Clements |
Robert M. Clements |
Chief Executive Officer |
(Principal Executive Officer) |
Date: November 13, 2012 |
1. | I have reviewed this Quarterly Report on Form 10-Q of EverBank Financial Corp; |
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 registrant’s 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)) 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. | Evaluated the effectiveness of the registrant’s 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 |
c. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s 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 registrant’s 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 registrant’s internal control over financial reporting. |
/s/ Steven J. Fischer |
Steven J. Fischer |
Chief Financial Officer |
(Principal Financial and Accounting Officer) |
Date: November 13, 2012 |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; 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/ Robert M. Clements | |
Robert M. Clements | |
Chief Executive Officer (Principal Executive Officer) | |
EverBank Financial Corp | |
November 13, 2012 |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; 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/ Steven J. Fischer | |
Steven J. Fischer | |
Chief Financial Officer (Principal Financial and Accounting Officer) | |
EverBank Financial Corp | |
November 13, 2012 |
Loans and Leases Held for Investment, Net (Tables)
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Sep. 30, 2012
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Loans and Leases Held for Investment, Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Loans and leases held for investment as of September 30, 2012 and December 31, 2011 are comprised of the following:
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Net Purchase Loan And Lease Premiums (Discounts)/Net Deferred Loan And Lease Origination Costs (Fees) [Table Text Block] | As of September 30, 2012 and December 31, 2011, the carrying values presented above include net purchase loan and lease discounts and net deferred loan and lease origination costs as follows:
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Acquired Portfolio of Loans/Leases with Evidence of Credit Deterioration [Table Text Block] | Information pertaining to the ACI portfolio as of September 30, 2012 and December 31, 2011 is as follows:
Acquisition date details of loans and leases acquired with evidence of credit deterioration during the nine months ended September 30, 2012 and 2011 are as follows:
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Schedule of Changes in Accretable Yields of Acquired Loans [Table Text Block] | The following is a summary of the accretable yield activity for the ACI loans during the nine months ended September 30, 2012 and 2011:
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Covered Loans and Leases Recorded Investment [Table Text Block] | The following is a summary of the recorded investment of major categories of covered loans and leases outstanding as of September 30, 2012 and December 31, 2011:
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Subsequent Events Preferred Stock Offering (Details) (USD $)
In Thousands, except Share data, unless otherwise specified |
0 Months Ended | ||
---|---|---|---|
Sep. 30, 2012
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May 08, 2012
|
Nov. 05, 2012
Preferred Class A [Member]
Subsequent Event [Member]
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Subsequent Event [Line Items] | |||
Proceeds from Issuance of Preferred Stock Gross | $ 150,000 | ||
Proceeds from Issuance of Preferred Stock Net | $ 144,446 | ||
Sale of Stock, Number of Shares Issued in Transaction | 6,000,000 | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.06 | $ 0.01 | |
Sale of Stock, Price Per Share | $ 10.00 | $ 25.00 |
Organization and Basis of Presentation Textual (Details) (Common Stock [Member])
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0 Months Ended | |
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Jan. 25, 2012
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May 02, 2012
EverBank Florida [Member]
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Organization and Basis of Presentation [Line Items] | ||
Conversion of shares | 77,994,699 | |
Series B Preferred Stock converted to common stock | 2,801,160 | 15,964,644 |
Servicing Activities and Mortgage Servicing Rights Loan Servicing Income (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2012
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Sep. 30, 2011
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Sep. 30, 2012
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Sep. 30, 2011
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Servicing Activities and Mortgage Servicing Rights [Abstract] | ||||
Contractually specified servicing fees, net | $ 32,255 | $ 37,973 | $ 101,326 | $ 113,586 |
Other ancillary fees | 9,413 | 9,867 | 27,279 | 28,872 |
Other | 673 | 550 | 1,775 | 1,565 |
Loan servicing fee income | $ 42,341 | $ 48,390 | $ 130,380 | $ 144,023 |
Commitments and Contingencies Guarantees - Textual (Details) (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
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Dec. 31, 2011
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Loss Contingencies [Line Items] | ||
Outstanding Principal Balance On Loans Serviced | $ 50,500,000 | $ 53,066,000 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
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Loss Contingencies [Line Items] | ||
Principal Amount Outstanding on Loans Securitized or Asset-backed Financing Arrangement | 23,255,000 | |
Mortgage-backed Securities, Issued by Private Enterprises [Member]
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Loss Contingencies [Line Items] | ||
Principal Amount Outstanding on Loans Securitized or Asset-backed Financing Arrangement | 25,039,000 | |
Obligation to Repurchase Receivables Sold [Member]
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Loss Contingencies [Line Items] | ||
Loss Contingency, Estimate of Possible Loss | 31,000 | 32,000 |
Recourse Related To Servicing Receivables [Member]
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Loss Contingencies [Line Items] | ||
Loss Contingency, Estimate of Possible Loss | $ 27,309 | $ 30,364 |
Commitments and Contingencies (Tables)
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9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2012
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unfunded Credit Extension Commitments [Table Text Block] | Unfunded credit extension commitments at September 30, 2012 and December 31, 2011 are as follows:
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Commitments and Contingencies (Policies)
|
9 Months Ended |
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Sep. 30, 2012
|
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Commitments and Contingencies Disclosure [Abstract] | |
Derivatives, Policy [Policy Text Block] | Fair Value Hedges - As part of its asset and liability management activities, the Company enters into forward interest rate swaps as a fair value hedge for financial instruments that create fixed cash flows. The fair value of such instruments will appreciate or depreciate as a result of fluctuations within the current interest rate environment. When effectively hedged, this appreciation or depreciation will generally be offset by fluctuations in the fair value of the derivative instruments that are linked to the hedged financial instruments. For derivative instruments that are designated and qualify as fair value hedges, the change in fair value of the derivative instrument, as well as the offsetting change in the fair value of the hedged item attributable to the hedged risk, is recorded in the related interest income or expense, as applicable. Payments and proceeds related to the settlement of these derivatives are included in the operating activities section of the consolidated statements of cash flows. All gains or losses on these derivatives are included in the assessment of hedge effectiveness. For both cash flow hedges and fair value hedges, hedge accounting is discontinued prospectively when (1) a derivative is no longer highly effective in offsetting changes in the fair value or cash flow of a hedged item, (2) a derivative expires or is sold, (3) a derivative is de-designated as a hedge, because it is unlikely that a forecasted transaction will occur, or (4) it is determined that designation of a derivative as a hedge is no longer appropriate. All changes in the value of the derivatives were included in the assessment of hedge effectiveness. The Company is exposed to counterparty credit risk if counterparties to the derivative contracts do not perform as expected. If the counterparty fails to perform, counterparty credit risk equals the amount reported as derivative assets in the balance sheet. The amounts reported as derivative assets are derivative contracts in a gain position, and to the extent subject to master netting arrangements, net of derivatives in a loss position with the same counterparty and cash collateral received. The Company minimizes this risk through obtaining credit approvals, monitoring credit limits, monitoring procedures, and executing master netting arrangements and obtaining collateral, where appropriate. The Company does not offset derivative instruments against the rights to reclaim cash collateral or the obligations to return cash collateral in the balance sheet. Interest rate contracts are predominantly used as economic hedges of interest rate lock commitments and loans held for sale. Other derivatives are predominantly used as economic hedges of foreign exchange, commodity, metals and equity risk. Counterparty credit risk related to derivatives is considered in determining fair value. Certain of the Company’s derivative instruments contain provisions that require the Company to post collateral when derivatives are in a net liability position. The provisions generally are dependent upon the Company’s credit rating based on certain major credit rating agencies or dollar amounts in a liability position at any given time which exceed specified thresholds, as indicated in the relevant contracts. In these circumstances, the counterparties could demand additional collateral or require termination or replacement of derivative instruments in a net liability position. interest rate lock commitments for loans that the Company intends to sell are considered freestanding derivatives and are recorded at fair value at inception. |
Commitments and Contingencies, Policy [Policy Text Block] | Commitments to extend credit are agreements to lend to customers in accordance with predetermined contractual provisions. These commitments, predominantly at variable interest rates, are for specific periods or contain termination clauses and may require the payment of a fee. The total amounts of unused commitments do not necessarily represent future credit exposure or cash requirements, as commitments often expire without being drawn upon. The Company issues standby letters of credit, which are conditional commitments to third parties to provide credit support on behalf of certain of the Company’s customers. The credit risk and potential cash requirements involved in issuing standby letters of credit are essentially the same as those involved in extending loan facilities to customers. |
Guarantees, Indemnifications and Warranties Policies [Policy Text Block] | The Company’s obligations vary based upon the nature of the repurchase demand and the current status of the mortgage loan. The Company establishes reserves for estimated losses inherent in the Company’s origination of mortgage loans. In estimating the accrued liability for loan repurchase and make-whole obligations, the Company estimates probable losses inherent in the population of all loans sold based on trends in claims requests and actual loss severities experienced. The liability includes accruals for probable contingent losses in addition to those identified in the pipeline of repurchase or make-whole requests. There is additional inherent uncertainty in the estimate because the Company historically sold a majority of its loans servicing released and currently does not have servicing performance metrics on a majority of the loans it originated and sold. The estimation process is designed to include amounts based on actual losses experienced from actual repurchase activity. The baseline for the repurchase reserve uses historical loss factors that are applied to loan pools originated in 2003 through September 30, 2012 and sold in years 2004 through September 30, 2012. Loss factors, tracked by year of loss, are calculated using actual losses incurred on repurchase or make-whole arrangements. The historical loss factors experienced are accumulated for each sale vintage (year loan was sold) and are applied to more recent sale vintages to estimate inherent losses not yet realized. |
Other Borrowings Schedule of Advances from the FHLB (Details) (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
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Debt Instrument [Line Items] | ||
Advances from Federal Home Loan Banks, Including Unamortized Premium | $ 2,319,205 | $ 1,237,485 |
Securities Sold under Agreements to Repurchase | 504,722 | 20,394 |
Other Borrowings | 2,823,927 | 1,257,879 |
Federal Home Loan Bank, Advances, Maturities Summary, Fixed Rate | 2,301,286 | 846,786 |
Federal Home Loan Bank, Advances, Maturities Summary, Convertible | 17,000 | 44,000 |
Federal Home Loan Bank, Advances, Maturities Summary, Floating Rate | 500 | 345,500 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Amount of Advances | 2,318,786 | 1,236,286 |
Federal Home Loan Bank Advances, Unamortized Premium | 419 | 1,199 |
Securities Sold Under Agreements to Repurchase, Unamortized Premium | $ 157 | $ 394 |
Convertible Debt [Member]
|
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Debt Instrument [Line Items] | ||
Debt, Weighted Average Interest Rate | 4.24% | 4.42% |
Overnight Advance [Member]
|
||
Debt Instrument [Line Items] | ||
Debt, Weighted Average Interest Rate | 0.36% | 0.36% |
Fixed-rate Advance [Member]
|
||
Debt Instrument [Line Items] | ||
Debt, Weighted Average Interest Rate | 2.10% | 2.45% |
Servicing Activities and Mortgage Servicing Rights Textual (Details) (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Servicing Activities and Mortgage Servicing Rights [Abstract] | ||
Servicing Asset at Fair Value, Amount | $ 381,855 | $ 494,547 |
Unpaid Principal Balance, Loans Originated and Serviced, Without MSR Basis | $ 6,675,000 | $ 5,248,000 |
Derivative Financial Instruments AOCI Gain Loss to Income next 12 months Textual (Details) (USD $)
In Thousands, unless otherwise specified |
9 Months Ended |
---|---|
Sep. 30, 2012
|
|
Derivative Instruments, Gain (Loss) Recognized in Income, Net [Abstract] | |
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | $ (22,716) |
Term of Cash Flow Hedges | 8 years |
Loans Held for Sale Textual (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2012
|
Sep. 30, 2011
|
Dec. 31, 2011
|
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Transfer of Loans Held for Sale to US Government Sponsored Entity | $ 93,043 | $ 94,650 | $ 779,190 | |
Loans held for sale | 1,403,205 | 1,403,205 | 2,725,286 | |
Loans transferred from held for sale to held for investment | 1,899,527 | 1,928,519 | 11,254 | |
Government National Mortgage Association Certificates and Obligations (GNMA) [Member]
|
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Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Transfer of Loans Held for Sale to US Government Sponsored Entity | 440,886 | |||
Loans held for sale | 68,377 | 68,377 | ||
Previously Transferred Loans Sold In Current Period | $ 372,509 |
Segment Information Textual (Details)
|
9 Months Ended |
---|---|
Sep. 30, 2012
|
|
Segment Information [Abstract] | |
Number of Reportable Segments | 3 |
Servicing Activities and Mortgage Servicing Rights Fair Value Portfolio Characteristics (Details) (USD $)
In Thousands, unless otherwise specified |
9 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2012
|
Dec. 31, 2011
|
|||||
Servicing Assets at Fair Value [Line Items] | ||||||
Outstanding Principal Balance On Loans Serviced | $ 50,500,000 | $ 53,066,000 | ||||
Mortgage Servicing Rights [Member]
|
||||||
Servicing Assets at Fair Value [Line Items] | ||||||
Outstanding Principal Balance On Loans Serviced | $ 43,825,000 | $ 47,818,000 | ||||
Gross Weighted-Average Coupon | 4.74% | 4.98% | ||||
Weighted-Average Servicing Fee | 0.30% | 0.31% | ||||
Expected Prepayment Speed | 14.42% | [1] | 12.74% | [1] | ||
|
Earnings Per Share Textual (Details) (USD $)
In Thousands, unless otherwise specified |
0 Months Ended |
---|---|
Jan. 24, 2012
|
|
Series A Preferred Stock [Member]
|
|
Class of Stock [Line Items] | |
Dividends, Preferred Stock | $ 4,482 |
Series B Preferred Stock [Member]
|
|
Class of Stock [Line Items] | |
Dividends, Preferred Stock | $ 1,073 |
Other Borrowings Repurchase Agreements Textual (Details) (USD $)
In Thousands, unless otherwise specified |
9 Months Ended |
---|---|
Sep. 30, 2012
|
|
Other Borrowings [Abstract] | |
Number of New Repurchase Agreements Entered Into | 3 |
Pledged Assets Separately Reported, Securities Pledged as Collateral, at Fair Value | $ 635,376 |
Advances from Federal Home Loan Banks | $ 484,565 |
Repurchase Agreements, Maturities | October 25, 2012 |
Earnings Per Share (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
|
Earnings Per Share [Abstract] | ||||
Net income | $ 22,178 | $ 7,758 | $ 45,196 | $ 38,969 |
Less distributed and undistributed net income allocated to participating preferred stock | 0 | (1,598) | (8,564) | (8,420) |
Net Income Allocated to Common Shareholders | $ 22,178 | $ 6,160 | $ 36,632 | $ 30,549 |
Average common shares outstanding | 118,038 | 74,996 | 98,387 | 74,842 |
Common share equivalents [Abstract] | ||||
Stock options | 1,468 | 2,346 | 1,610 | 2,422 |
Nonvested stock | 85 | 367 | 271 | 403 |
Average common shares outstanding, assuming dilution | 119,591 | 77,709 | 100,268 | 77,667 |
Basic earnings per share | $ 0.19 | $ 0.08 | $ 0.37 | $ 0.41 |
Diluted earnings per share | $ 0.19 | $ 0.08 | $ 0.37 | $ 0.40 |
Servicing Activities and Mortgage Servicing Rights Sensitivity Analysis (Details) (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Prepayment Rate [Abstract] | ||
10% adverse rate change | $ 23,332 | $ 26,955 |
20% adverse rate change | 44,660 | 51,872 |
Discount Rate [Abstract] | ||
10% adverse rate change | 13,322 | 18,306 |
20% adverse rate change | $ 25,741 | $ 35,336 |
Allowance for Loan and Lease Losses Nonaccrual Status (Details) (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | $ 163,830 | $ 177,779 |
Financing Receivable, Recorded Investment, Greater than 90 Days Past Due and Accruing | 1,306,253 | 179,908 |
Residential Portfolio Segment [Member]
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 71,073 | 71,658 |
Financing Receivable, Recorded Investment, Greater than 90 Days Past Due and Accruing | 0 | 0 |
Government insured pool buyouts [Member]
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 0 | 0 |
Financing Receivable, Recorded Investment, Greater than 90 Days Past Due and Accruing | 1,306,253 | 179,908 |
Commercial Loan [Member]
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 6,352 | 12,294 |
Financing Receivable, Recorded Investment, Greater than 90 Days Past Due and Accruing | 0 | 0 |
Commercial Real Estate [Member]
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 79,414 | 86,772 |
Financing Receivable, Recorded Investment, Greater than 90 Days Past Due and Accruing | 0 | 0 |
Lease financing receivables [Member]
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 2,019 | 2,385 |
Financing Receivable, Recorded Investment, Greater than 90 Days Past Due and Accruing | 0 | 0 |
Home equity lines [Member]
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 4,492 | 4,251 |
Financing Receivable, Recorded Investment, Greater than 90 Days Past Due and Accruing | 0 | 0 |
Consumer and credit card [Member]
|
||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 480 | 419 |
Financing Receivable, Recorded Investment, Greater than 90 Days Past Due and Accruing | $ 0 | $ 0 |
Recent Accounting Pronouncements and Updates to Significant Accounting Policies Updates to Significant Accounting Policies (Policies)
|
9 Months Ended |
---|---|
Sep. 30, 2012
|
|
Recent Accounting Pronouncements and Updates to Significant Accounting Policies [Abstract] | |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Intangible Assets - Goodwill, core deposit premiums and other intangible assets are included in other assets in the consolidated balance sheets. Goodwill is not amortized and is evaluated for potential impairment on an annual basis or when events or circumstances indicate a potential impairment at the reporting unit level. Reporting units are first evaluated qualitatively to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If it is believed that it is more likely than not that a reporting unit's fair value is less than its carrying value, the Company will estimate the reporting unit's fair market value to determine whether carrying value exceeds fair market value. If carrying value exceeds fair market value, goodwill is written down. The Company may use judgment in assessing goodwill and intangible assets for impairment. Estimates of fair value are based on projections of revenues, operating costs and cash flows of each reporting unit considering historical and anticipated future results, general economic and market conditions as well as the impact of planned business or operational strategies. The valuations employ a combination of present value techniques to measure fair value and take into consideration relevant market factors. Additionally, judgment is used in determining the useful lives of finite-lived intangible assets. Changes in judgments and projections could result in a significantly different estimate of the fair value of the reporting units and could result in an impairment of goodwill. Core deposit premiums are amortized over the estimated life of the acquired deposits using the straight-line method. Core deposit premiums are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. Other identifiable intangible assets were recognized through business combinations. These intangible assets are amortized over their estimated life. No residual value was assigned to any of these intangible assets. |
Derivatives, Policy [Policy Text Block] | Fair Value Hedges - As part of its asset and liability management activities, the Company enters into forward interest rate swaps as a fair value hedge for financial instruments that create fixed cash flows. The fair value of such instruments will appreciate or depreciate as a result of fluctuations within the current interest rate environment. When effectively hedged, this appreciation or depreciation will generally be offset by fluctuations in the fair value of the derivative instruments that are linked to the hedged financial instruments. For derivative instruments that are designated and qualify as fair value hedges, the change in fair value of the derivative instrument, as well as the offsetting change in the fair value of the hedged item attributable to the hedged risk, is recorded in the related interest income or expense, as applicable. Payments and proceeds related to the settlement of these derivatives are included in the operating activities section of the consolidated statements of cash flows. All gains or losses on these derivatives are included in the assessment of hedge effectiveness. For both cash flow hedges and fair value hedges, hedge accounting is discontinued prospectively when (1) a derivative is no longer highly effective in offsetting changes in the fair value or cash flow of a hedged item, (2) a derivative expires or is sold, (3) a derivative is de-designated as a hedge, because it is unlikely that a forecasted transaction will occur, or (4) it is determined that designation of a derivative as a hedge is no longer appropriate. All changes in the value of the derivatives were included in the assessment of hedge effectiveness. The Company is exposed to counterparty credit risk if counterparties to the derivative contracts do not perform as expected. If the counterparty fails to perform, counterparty credit risk equals the amount reported as derivative assets in the balance sheet. The amounts reported as derivative assets are derivative contracts in a gain position, and to the extent subject to master netting arrangements, net of derivatives in a loss position with the same counterparty and cash collateral received. The Company minimizes this risk through obtaining credit approvals, monitoring credit limits, monitoring procedures, and executing master netting arrangements and obtaining collateral, where appropriate. The Company does not offset derivative instruments against the rights to reclaim cash collateral or the obligations to return cash collateral in the balance sheet. Interest rate contracts are predominantly used as economic hedges of interest rate lock commitments and loans held for sale. Other derivatives are predominantly used as economic hedges of foreign exchange, commodity, metals and equity risk. Counterparty credit risk related to derivatives is considered in determining fair value. Certain of the Company’s derivative instruments contain provisions that require the Company to post collateral when derivatives are in a net liability position. The provisions generally are dependent upon the Company’s credit rating based on certain major credit rating agencies or dollar amounts in a liability position at any given time which exceed specified thresholds, as indicated in the relevant contracts. In these circumstances, the counterparties could demand additional collateral or require termination or replacement of derivative instruments in a net liability position. interest rate lock commitments for loans that the Company intends to sell are considered freestanding derivatives and are recorded at fair value at inception. |
Acquisition Activities Textual (Details) (Warehouse Lending Division, MetLife Bank, N.A. [Member], USD $)
In Thousands, unless otherwise specified |
9 Months Ended |
---|---|
Sep. 30, 2012
|
|
Warehouse Lending Division, MetLife Bank, N.A. [Member]
|
|
Business Acquisition [Line Items] | |
Effective Date of Acquisition | Apr. 02, 2012 |
Percentage of Net Assets Acquired | 100.00% |
Date of Acquisition Agreement | Feb. 08, 2012 |
Goodwill Amount | $ 0 |
Other Borrowings (Tables)
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9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2012
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Other Borrowings [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Borrowings by Type [Table Text Block] | Other borrowings at September 30, 2012 and December 31, 2011 are comprised of the following:
|
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Schedule of Advances from Federal Home Loan Bank [Table Text Block] | Advances from the FHLB at September 30, 2012 and December 31, 2011 are as follows:
|
Servicing Activities and Mortgage Servicing Rights Fair Value Assumptions for Securitized/Sold Loans (Details) (Mortgage Servicing Rights [Member])
|
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
|
Minimum [Member]
|
||||
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement [Line Items] | ||||
Average discount rate | 8.99% | 8.52% | 8.60% | 8.04% |
Expected prepayment speeds | 13.23% | 11.30% | 10.13% | 7.33% |
Average life in years | 5 years 2 months 17 days | 5 years 5 months 24 days | 5 years 2 months 14 days | 5 years 0 months 18 days |
Maximum [Member]
|
||||
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement [Line Items] | ||||
Average discount rate | 9.75% | 9.47% | 9.75% | 9.20% |
Expected prepayment speeds | 14.99% | 13.69% | 14.99% | 15.97% |
Average life in years | 5 years 8 months 20 days | 6 years 0 months 11 days | 6 years 8 months 13 days | 8 years 1 month 20 days |
Fair Value Measurements Fair Value Assets and Liabilities Measured On Recurring Basis Reconciliation (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
Mar. 31, 2012
|
Dec. 31, 2011
|
Mar. 31, 2011
|
Dec. 31, 2010
|
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Loans Held for Sale [Member]
|
||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | $ 0 | [1] | $ 16,176 | [1] | $ 0 | [1] | $ 16,176 | [1] | $ 0 | [1] | $ 15,462 | [1] | $ 16,106 | [1] | $ 15,136 | [1] | ||||||
Purchases | 0 | [1] | 0 | [1] | ||||||||||||||||||
Issues | 0 | [1] | 0 | [1] | ||||||||||||||||||
Settlements | 0 | (95) | [1] | (623) | [1] | (232) | [1] | |||||||||||||||
Transfers out of Level 3 | (14,946) | [1] | ||||||||||||||||||||
Gain (Loss) Included in Earnings | 0 | [1] | 165 | [1] | 107 | [1] | 1,272 | [1] | ||||||||||||||
Change in Unrealized Gain (Loss) Included in Other Income | 0 | [1] | 165 | [1] | 107 | [1] | 1,272 | [1] | ||||||||||||||
Clawback Liability [Member]
|
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Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | (49,341) | [2] | (41,104) | [2] | (49,341) | [2] | (41,104) | [2] | (46,738) | [2] | (43,317) | [2] | (39,628) | [2] | (39,311) | [2] | ||||||
Purchases | 0 | [2] | 0 | [2] | ||||||||||||||||||
Issues | 0 | [2] | 0 | [2] | ||||||||||||||||||
Settlements | 0 | |||||||||||||||||||||
Settlements | 0 | [2] | 0 | [2] | 0 | [2] | ||||||||||||||||
Transfers out of Level 3 | 0 | [2] | ||||||||||||||||||||
Gain (Loss) Included in Earnings | (2,603) | [2] | (1,476) | [2] | (6,024) | [2] | (1,793) | [2] | ||||||||||||||
Change in Unrealized Gain (Loss) Included in Other Income | (2,603) | [2] | (1,476) | [2] | (6,024) | [2] | (1,793) | [2] | ||||||||||||||
Freestanding Derivative [Member]
|
||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 9,763 | [3] | 8,808 | [3] | 9,763 | [3] | 8,808 | [3] | 9,383 | [3] | 8,539 | [3] | 224 | [3] | 8,949 | [3] | ||||||
Purchases | 1,214 | [3] | 5,289 | [3] | ||||||||||||||||||
Issues | 7,383 | [3] | 3,269 | [3] | ||||||||||||||||||
Settlements | (61) | 0 | [3] | (61) | [3] | 38 | [3] | |||||||||||||||
Transfers out of Level 3 | 0 | [3] | ||||||||||||||||||||
Gain (Loss) Included in Earnings | 441 | [3] | (13) | [3] | 1,285 | [3] | (8,737) | [3] | ||||||||||||||
Change in Unrealized Gain (Loss) Included in Other Income | $ 441 | [3] | $ 1,285 | [3] | ||||||||||||||||||
|
Investment Securities (Tables)
|
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2012
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Investment Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Available for Sale and Held to Maturity Securities [Table Text Block] | The amortized cost and fair value of investment securities with gross unrealized gains and losses were as follows as of September 30, 2012 and December 31, 2011:
|
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Schedule of Unrealized Loss on Investments [Table Text Block] | The gross unrealized losses and fair value of the Company’s investments with unrealized losses, aggregated by investment category and the length of time individual securities have been in a continuous unrealized loss position, at September 30, 2012 and December 31, 2011 are as follows:
|
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Schedule of Other Than Temporary Impairment [Table Text Block] | Information regarding impairment related to credit loss recognized on securities in other noninterest income and impairment related to all other factors recognized in AOCI for the nine months ended September 30, 2011 are as follows:
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Investment Income [Table Text Block] | During the three and nine months ended September 30, 2012 and 2011, interest and dividend income on investment securities was comprised of the following:
|
Investment Securities Textual (Details) (USD $)
In Thousands, unless otherwise specified |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Dec. 31, 2011
|
|
Schedule of Available-for-sale and Held-to-maturity Securities [Line Items] | |||
Pledged securities | $ 1,049,695 | $ 543,705 | |
Credit-related other than temporary impairment losses | 685 | ||
Realized Investment Gains (Losses) [Abstract] | |||
Available-for-sale Securities, Gross Realized Gains | 0 | 7,401 | |
Available-for-sale Securities, Gross Realized Losses | $ 0 | $ 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Number of Debt Securities Held Unrealized Losses | 56 | 71 | |
Number of Debt Securities Held Unrealized Losses More Than Twelve Months | 46 | 29 | |
Percentage Securities in Amortized Cost Unrealized Loss More Than Twelve Months with Credit Ratings of A or Better | 72.00% | 68.00% | |
Residential CMO securities - nonagency [Member]
|
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Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Number of Debt Securities Held Unrealized Losses More Than Twelve Months | 42 | 25 | |
Asset-backed securities (ABS) [Member]
|
|||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Number of Debt Securities Held Unrealized Losses More Than Twelve Months | 3 | 3 | |
Corporate securities [Member]
|
|||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Number of Debt Securities Held Unrealized Losses More Than Twelve Months | 1 | 1 | |
Collateralized Mortgage Obligations [Member]
|
|||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Number of Debt Securities Held Unrealized Losses Less Than Twelve Months | 10 | 42 | |
Percentage Securities in Amortized Cost Unrealized Loss Less Than Twelve Months with Credit Ratings of A or Better | 100.00% | 84.00% |
Allowance for Loan and Lease Losses ALLL and Recorded Investment Breakout (Details) (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
Mar. 31, 2012
|
Dec. 31, 2011
|
Sep. 30, 2011
|
Mar. 31, 2011
|
Dec. 31, 2010
|
---|---|---|---|---|---|---|
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance for Loan and Lease Losses, Individually Evaluated for Impairment | $ 12,967 | $ 13,457 | ||||
Allowance for Loan and Lease Losses, Collectively Evaluated for Impairment | 42,321 | 48,319 | ||||
Allowance for Loan and Lease Losses, ACI Loans | 21,181 | 15,989 | ||||
Allowance for Loan and Lease Losses, Total allowance | 76,469 | 77,393 | 77,765 | 83,827 | 89,209 | 93,689 |
Loans and Leases Held for Investment at Recorded Investment, Individually Evaluated for Impairment | 189,526 | 233,287 | ||||
Loans and Leases Held for Investment at Recorded Investment, Collectively Evaluated for Impairment | 8,737,857 | 5,126,818 | ||||
Loans and Leases Held for Investment at Recorded Investment, ACI Loans | 1,129,343 | 1,159,176 | ||||
Loans and Leases Receivable, Net of Deferred Income | 10,056,726 | 6,519,281 | ||||
Residential mortgages [Member]
|
||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance for Loan and Lease Losses, Individually Evaluated for Impairment | 8,145 | 7,436 | ||||
Allowance for Loan and Lease Losses, Collectively Evaluated for Impairment | 19,306 | 30,554 | ||||
Allowance for Loan and Lease Losses, ACI Loans | 5,175 | 5,464 | ||||
Allowance for Loan and Lease Losses, Total allowance | 32,626 | 37,719 | 43,454 | 53,857 | 54,472 | 46,584 |
Loans and Leases Held for Investment at Recorded Investment, Individually Evaluated for Impairment | 87,571 | 90,927 | ||||
Loans and Leases Held for Investment at Recorded Investment, Collectively Evaluated for Impairment | 6,057,996 | 3,852,119 | ||||
Loans and Leases Held for Investment at Recorded Investment, ACI Loans | 661,832 | 613,795 | ||||
Loans and Leases Receivable, Net of Deferred Income | 6,807,399 | 4,556,841 | ||||
Commercial and commercial real estate [Member]
|
||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance for Loan and Lease Losses, Individually Evaluated for Impairment | 4,822 | 6,021 | ||||
Allowance for Loan and Lease Losses, Collectively Evaluated for Impairment | 14,880 | 11,663 | ||||
Allowance for Loan and Lease Losses, ACI Loans | 16,006 | 10,525 | ||||
Allowance for Loan and Lease Losses, Total allowance | 35,708 | 32,050 | 28,209 | 23,873 | 28,295 | 33,490 |
Loans and Leases Held for Investment at Recorded Investment, Individually Evaluated for Impairment | 101,955 | 142,360 | ||||
Loans and Leases Held for Investment at Recorded Investment, Collectively Evaluated for Impairment | 1,746,028 | 477,643 | ||||
Loans and Leases Held for Investment at Recorded Investment, ACI Loans | 467,511 | 545,381 | ||||
Loans and Leases Receivable, Net of Deferred Income | 2,315,494 | 1,165,384 | ||||
Lease financing receivables [Member]
|
||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance for Loan and Lease Losses, Individually Evaluated for Impairment | 0 | 0 | ||||
Allowance for Loan and Lease Losses, Collectively Evaluated for Impairment | 4,431 | 3,766 | ||||
Allowance for Loan and Lease Losses, ACI Loans | 0 | 0 | ||||
Allowance for Loan and Lease Losses, Total allowance | 4,431 | 4,160 | 3,766 | 2,314 | 1,806 | 2,454 |
Loans and Leases Held for Investment at Recorded Investment, Individually Evaluated for Impairment | 0 | 0 | ||||
Loans and Leases Held for Investment at Recorded Investment, Collectively Evaluated for Impairment | 742,332 | 588,501 | ||||
Loans and Leases Held for Investment at Recorded Investment, ACI Loans | 0 | 0 | ||||
Loans and Leases Receivable, Net of Deferred Income | 742,332 | 588,501 | ||||
Home equity lines [Member]
|
||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance for Loan and Lease Losses, Individually Evaluated for Impairment | 0 | 0 | ||||
Allowance for Loan and Lease Losses, Collectively Evaluated for Impairment | 3,525 | 2,186 | ||||
Allowance for Loan and Lease Losses, ACI Loans | 0 | 0 | ||||
Allowance for Loan and Lease Losses, Total allowance | 3,525 | 3,288 | 2,186 | 3,578 | 4,612 | 10,907 |
Loans and Leases Held for Investment at Recorded Investment, Individually Evaluated for Impairment | 0 | 0 | ||||
Loans and Leases Held for Investment at Recorded Investment, Collectively Evaluated for Impairment | 183,692 | 200,112 | ||||
Loans and Leases Held for Investment at Recorded Investment, ACI Loans | 0 | 0 | ||||
Loans and Leases Receivable, Net of Deferred Income | 183,692 | 200,112 | ||||
Consumer and credit card [Member]
|
||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance for Loan and Lease Losses, Individually Evaluated for Impairment | 0 | 0 | ||||
Allowance for Loan and Lease Losses, Collectively Evaluated for Impairment | 179 | 150 | ||||
Allowance for Loan and Lease Losses, ACI Loans | 0 | 0 | ||||
Allowance for Loan and Lease Losses, Total allowance | 179 | 176 | 150 | 205 | 24 | 254 |
Loans and Leases Held for Investment at Recorded Investment, Individually Evaluated for Impairment | 0 | 0 | ||||
Loans and Leases Held for Investment at Recorded Investment, Collectively Evaluated for Impairment | 7,809 | 8,443 | ||||
Loans and Leases Held for Investment at Recorded Investment, ACI Loans | 0 | 0 | ||||
Loans and Leases Receivable, Net of Deferred Income | 7,809 | 8,443 | ||||
Total Residential, Leasing, Home Equity Line of Credit and Consumer and Credit Card [Member]
|
||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans and Leases Receivable, Net of Deferred Income | 7,741,232 | 5,353,897 | ||||
Performing Financing Receivable [Member] | Lease financing receivables [Member]
|
||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans and Leases Receivable, Net of Deferred Income | 740,313 | 586,116 | ||||
Performing Financing Receivable [Member] | Home equity lines [Member]
|
||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans and Leases Receivable, Net of Deferred Income | 179,200 | 195,861 | ||||
Performing Financing Receivable [Member] | Consumer and credit card [Member]
|
||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans and Leases Receivable, Net of Deferred Income | 7,329 | 8,024 | ||||
Performing Financing Receivable [Member] | Total Residential, Leasing, Home Equity Line of Credit and Consumer and Credit Card [Member]
|
||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Loans and Leases Receivable, Net of Deferred Income | $ 6,356,915 | $ 5,095,276 |
Subsequent Events Purchase of Business Property Lending, Inc. (Details) (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
Oct. 01, 2012
Subsequent Event [Member]
Business Property Lending, Inc. [Member]
|
Oct. 01, 2012
Commercial and commercial real estate [Member]
Subsequent Event [Member]
Business Property Lending, Inc. [Member]
|
---|---|---|---|---|
Subsequent Event [Line Items] | ||||
Business Acquisition, Cost of Acquired Entity, Purchase Price | $ 2,406,000 | |||
Loans and Leases Receivable, Gross | 2,320,000 | |||
Mortgage Servicing Rights MSR Net | $ 381,773 | $ 489,496 | $ 2,916,000 |
Loans and Leases Held for Investment, Net (Details) (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
Mar. 31, 2012
|
Dec. 31, 2011
|
Sep. 30, 2011
|
Mar. 31, 2011
|
Dec. 31, 2010
|
---|---|---|---|---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans and leases held for investment, net of discounts | $ 10,056,726 | $ 6,519,281 | ||||
Allowance for loan and lease losses | (76,469) | (77,393) | (77,765) | (83,827) | (89,209) | (93,689) |
Total loans and leases held for investment, net | 9,980,257 | 6,441,516 | ||||
Residential mortgages [Member]
|
||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans and leases held for investment, net of discounts | 6,807,399 | 4,556,841 | ||||
Allowance for loan and lease losses | (32,626) | (37,719) | (43,454) | (53,857) | (54,472) | (46,584) |
Commercial and commercial real estate [Member]
|
||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans and leases held for investment, net of discounts | 2,315,494 | 1,165,384 | ||||
Allowance for loan and lease losses | (35,708) | (32,050) | (28,209) | (23,873) | (28,295) | (33,490) |
Lease financing receivables [Member]
|
||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans and leases held for investment, net of discounts | 742,332 | 588,501 | ||||
Allowance for loan and lease losses | (4,431) | (4,160) | (3,766) | (2,314) | (1,806) | (2,454) |
Total loans and leases held for investment, net | 737,901 | 584,735 | ||||
Home equity lines [Member]
|
||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans and leases held for investment, net of discounts | 183,692 | 200,112 | ||||
Allowance for loan and lease losses | (3,525) | (3,288) | (2,186) | (3,578) | (4,612) | (10,907) |
Consumer and credit card [Member]
|
||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans and leases held for investment, net of discounts | 7,809 | 8,443 | ||||
Allowance for loan and lease losses | $ (179) | $ (176) | $ (150) | $ (205) | $ (24) | $ (254) |
Segment Information (Tables)
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Sep. 30, 2012
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Segment Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The results of each segment are reported on a continuing basis. The following table presents financial information of reportable segments as of and for the three and nine months ended September 30, 2012 and 2011. The eliminations column includes intersegment eliminations required for consolidation purposes.
|
Recent Accounting Pronouncements and Updates to Significant Accounting Policies
|
9 Months Ended |
---|---|
Sep. 30, 2012
|
|
Recent Accounting Pronouncements and Updates to Significant Accounting Policies [Abstract] | |
Recent Accounting Pronouncements and Updates to Significant Accounting Policies | Recent Accounting Pronouncements and Updates to Significant Accounting Policies Recent Accounting Pronouncements Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements — In May 2011, the Financial Accounting Standards Board (FASB) issued ASU 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and International Financial Reporting Standards (Topic 820)—Fair Value Measurement, to provide a consistent definition of fair value and ensure that the fair value measurement and disclosure requirements are similar between U.S. GAAP and International Financial Reporting Standards. ASU 2011-04 changes certain fair value measurement principles and enhances the disclosure requirements particularly for level 3 fair value measurements. ASU 2011-04 was effective for the first quarter of 2012 and was applied prospectively. Adoption of this standard resulted in additional disclosures as presented in Note 14 but did not have any impact on the Company’s results of operations. Presentation of Comprehensive Income — In June 2011, the FASB issued ASU 2011-05, Comprehensive Income (Topic 220)—Presentation of Comprehensive Income, to require an entity to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. ASU 2011-05 eliminates the option to present the components of other comprehensive income as part of the statement of shareholders’ equity. ASU 2011-05 is effective for the first quarter of 2012 and should be applied retrospectively. Adoption of this standard resulted in the presentation of a new statement of comprehensive income separate from the statement of shareholders’ equity but did not have any impact on the Company’s results of operations. In December 2011, the FASB issued ASU 2011-12,Comprehensive Income (Topic 220)- Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05, to allow time to redeliberate whether to present on the face of the financial statements the effects of reclassifications out of accumulated other comprehensive income on the components of net income and other comprehensive income for all periods presented. Adoption of this ASU did not have any impact on the Company’s consolidated financial statements or results of operations. Intangibles - Goodwill & Other — In September 2011, the FASB issued ASU 2011-08, Intangibles - Goodwill and Other (Topic 350) —Testing Goodwill for Impairment, which affects all entities that have goodwill reported in their financial statements. The amendments in ASU 2011-08 permit an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than the carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test described in ASC Topic 350. The more likely than not threshold is defined as having a likelihood of more than 50 percent. If, after assessing the totality of events or circumstances, an entity determines that it is more likely than not that the fair value of a reporting unit is more than its carrying amount, then performing the two-step impairment test is not required. Under the amendments in this update, an entity is no longer permitted to carry forward its detailed calculation of a reporting unit's fair value from a prior year as previously permitted under ASC Topic 350. This guidance was adopted in conjunction with the performance of the Company's annual goodwill impairment test performed during the second quarter of 2012. Adoption of this standard did not have any impact on the Company's consolidated financial statements or results of operations. Updates to Significant Accounting Policies Goodwill and Intangible Assets - Goodwill, core deposit premiums and other intangible assets are included in other assets in the consolidated balance sheets. Goodwill is not amortized and is evaluated for potential impairment on an annual basis or when events or circumstances indicate a potential impairment at the reporting unit level. Reporting units are first evaluated qualitatively to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If it is believed that it is more likely than not that a reporting unit's fair value is less than its carrying value, the Company will estimate the reporting unit's fair market value to determine whether carrying value exceeds fair market value. If carrying value exceeds fair market value, goodwill is written down. The Company may use judgment in assessing goodwill and intangible assets for impairment. Estimates of fair value are based on projections of revenues, operating costs and cash flows of each reporting unit considering historical and anticipated future results, general economic and market conditions as well as the impact of planned business or operational strategies. The valuations employ a combination of present value techniques to measure fair value and take into consideration relevant market factors. Additionally, judgment is used in determining the useful lives of finite-lived intangible assets. Changes in judgments and projections could result in a significantly different estimate of the fair value of the reporting units and could result in an impairment of goodwill. Core deposit premiums are amortized over the estimated life of the acquired deposits using the straight-line method. Core deposit premiums are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. Other identifiable intangible assets were recognized through business combinations. These intangible assets are amortized over their estimated life. No residual value was assigned to any of these intangible assets. Fair Value Hedges - As part of its asset and liability management activities, the Company enters into forward interest rate swaps as a fair value hedge for financial instruments that create fixed cash flows. The fair value of such instruments will appreciate or depreciate as a result of fluctuations within the current interest rate environment. When effectively hedged, this appreciation or depreciation will generally be offset by fluctuations in the fair value of the derivative instruments that are linked to the hedged financial instruments. For derivative instruments that are designated and qualify as fair value hedges, the change in fair value of the derivative instrument, as well as the offsetting change in the fair value of the hedged item attributable to the hedged risk, is recorded in the related interest income or expense, as applicable. Payments and proceeds related to the settlement of these derivatives are included in the operating activities section of the consolidated statements of cash flows. All gains or losses on these derivatives are included in the assessment of hedge effectiveness. For both cash flow hedges and fair value hedges, hedge accounting is discontinued prospectively when (1) a derivative is no longer highly effective in offsetting changes in the fair value or cash flow of a hedged item, (2) a derivative expires or is sold, (3) a derivative is de-designated as a hedge, because it is unlikely that a forecasted transaction will occur, or (4) it is determined that designation of a derivative as a hedge is no longer appropriate. |
Loans and Leases Held for Investment, Net Net Purchase Loan/Lease Fees (Details) (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Loans and Leases Held for Investment, Net [Abstract] | ||
Net purchased loan and leases discounts | $ 188,924 | $ 237,170 |
Net deferred loan and lease origiantaion costs | $ 22,282 | $ 19,057 |