[x]
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2013
|
[ ]
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________.
|
CALIFORNIA |
94-2156203
|
(State or Other Jurisdiction of
Incorporation or Organization)
|
(I.R.S. Employer
Identification No.)
|
Yes [x] | No [ ] |
Yes [x] | No [ ] |
Large accelerated filer [x]
|
Accelerated filer [ ]
|
Non-accelerated filer [ ]
|
Smaller reporting company [ ]
|
(Do not check if a smaller reporting company)
|
Yes [ ] | No [x] |
Title of Class
|
Shares outstanding as of July 23, 2013
|
Common Stock,
No Par Value
|
26,771,525
|
|
Page
|
|
|
||
4 | ||
Exhibit 31.1 - Certification of Chief Executive Officer pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a)
|
55
|
|
Exhibit 31.2 - Certification of Chief Financial Officer pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a)
|
56
|
|
Exhibit 32.1 - Certification of Chief Executive Officer Required by 18 U.S.C. Section 1350
|
57
|
|
Exhibit 32.2 - Certification of Chief Financial Officer Required by 18 U.S.C. Section 1350
|
58
|
At June 30,
|
At December 31,
|
|||||||
2013
|
2012
|
|||||||
(In thousands)
|
||||||||
Assets:
|
||||||||
Cash and due from banks
|
$ | 384,276 | $ | 491,382 | ||||
Investment securities available for sale
|
1,004,888 | 825,636 | ||||||
Investment securities held to maturity, with fair values of: $1,124,946 at June 30, 2013 and $1,184,557 at December 31, 2012
|
1,134,615 | 1,156,041 | ||||||
Purchased covered loans
|
324,976 | 372,283 | ||||||
Purchased non-covered loans
|
61,062 | 74,891 | ||||||
Originated loans
|
1,553,303 | 1,664,183 | ||||||
Allowance for loan losses
|
(30,926 | ) | (30,234 | ) | ||||
Total loans
|
1,908,415 | 2,081,123 | ||||||
Non-covered other real estate owned
|
8,957 | 12,661 | ||||||
Covered other real estate owned
|
10,480 | 13,691 | ||||||
Premises and equipment, net
|
38,267 | 38,639 | ||||||
Identifiable intangibles, net
|
20,877 | 23,261 | ||||||
Goodwill
|
121,673 | 121,673 | ||||||
Other assets
|
181,460 | 188,086 | ||||||
Total Assets
|
$ | 4,813,908 | $ | 4,952,193 | ||||
Liabilities:
|
||||||||
Noninterest bearing deposits
|
$ | 1,644,151 | $ | 1,676,071 | ||||
Interest bearing deposits
|
2,457,243 | 2,556,421 | ||||||
Total deposits
|
4,101,394 | 4,232,492 | ||||||
Short-term borrowed funds
|
66,640 | 53,687 | ||||||
Federal Home Loan Bank advances
|
25,687 | 25,799 | ||||||
Term repurchase agreement
|
10,000 | 10,000 | ||||||
Debt financing
|
15,000 | 15,000 | ||||||
Other liabilities
|
50,565 | 55,113 | ||||||
Total Liabilities
|
4,269,286 | 4,392,091 | ||||||
Shareholders' Equity:
|
||||||||
Common stock (no par value), authorized - 150,000 shares Issued and outstanding: 26,769 at June 30, 2013 and 27,213 at December 31, 2012
|
371,498 | 372,012 | ||||||
Deferred compensation
|
2,711 | 3,101 | ||||||
Accumulated other comprehensive income
|
4,524 | 14,625 | ||||||
Retained earnings
|
165,889 | 170,364 | ||||||
Total Shareholders' Equity
|
544,622 | 560,102 | ||||||
Total Liabilities and Shareholders' Equity
|
$ | 4,813,908 | $ | 4,952,193 |
For the Three Months
|
For the Six Months
|
|||||||||||||||
Ended June 30,
|
||||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
(In thousands, except per share data)
|
||||||||||||||||
Interest and Fee Income:
|
||||||||||||||||
Loans
|
$ | 26,180 | $ | 33,745 | $ | 53,579 | $ | 69,401 | ||||||||
Investment securities available for sale
|
5,532 | 4,938 | 10,868 | 9,726 | ||||||||||||
Investment securities held to maturity
|
7,557 | 8,218 | 15,287 | 16,072 | ||||||||||||
Total Interest and Fee Income
|
39,269 | 46,901 | 79,734 | 95,199 | ||||||||||||
Interest Expense:
|
||||||||||||||||
Deposits
|
847 | 1,107 | 1,746 | 2,294 | ||||||||||||
Short-term borrowed funds
|
26 | 21 | 37 | 48 | ||||||||||||
Term repurchase agreement
|
25 | 24 | 49 | 49 | ||||||||||||
Federal Home Loan Bank advances
|
120 | 119 | 238 | 239 | ||||||||||||
Debt financing
|
201 | 201 | 401 | 401 | ||||||||||||
Total Interest Expense
|
1,219 | 1,472 | 2,471 | 3,031 | ||||||||||||
Net Interest Income
|
38,050 | 45,429 | 77,263 | 92,168 | ||||||||||||
Provision for Loan Losses
|
1,800 | 2,800 | 4,600 | 5,600 | ||||||||||||
Net Interest Income After Provision For Loan Losses
|
36,250 | 42,629 | 72,663 | 86,568 | ||||||||||||
Noninterest Income:
|
||||||||||||||||
Service charges on deposit accounts
|
6,452 | 7,027 | 12,994 | 14,122 | ||||||||||||
Merchant processing services
|
2,413 | 2,529 | 4,822 | 4,922 | ||||||||||||
Debit card fees
|
1,478 | 1,345 | 2,836 | 2,508 | ||||||||||||
ATM processing fees
|
721 | 932 | 1,426 | 1,865 | ||||||||||||
Trust fees
|
585 | 497 | 1,153 | 986 | ||||||||||||
Financial services commissions
|
284 | 194 | 464 | 365 | ||||||||||||
Loss on sale of securities
|
- | (1,287 | ) | - | (1,287 | ) | ||||||||||
Other
|
2,351 | 2,296 | 4,867 | 4,721 | ||||||||||||
Total Noninterest Income
|
14,284 | 13,533 | 28,562 | 28,202 | ||||||||||||
Noninterest Expense:
|
||||||||||||||||
Salaries and related benefits
|
14,064 | 14,494 | 28,467 | 29,540 | ||||||||||||
Occupancy
|
3,638 | 3,775 | 7,524 | 7,709 | ||||||||||||
Outsourced data processing services
|
2,140 | 2,078 | 4,297 | 4,161 | ||||||||||||
Amortization of identifiable intangibles
|
1,165 | 1,339 | 2,384 | 2,741 | ||||||||||||
Furniture and equipment
|
1,021 | 1,041 | 1,901 | 1,892 | ||||||||||||
Professional fees
|
745 | 902 | 1,380 | 1,669 | ||||||||||||
Courier service
|
737 | 793 | 1,478 | 1,578 | ||||||||||||
Other real estate owned
|
278 | 3 | 612 | 233 | ||||||||||||
Other
|
4,404 | 4,924 | 8,826 | 9,860 | ||||||||||||
Total Noninterest Expense
|
28,192 | 29,349 | 56,869 | 59,383 | ||||||||||||
Income Before Income Taxes
|
22,342 | 26,813 | 44,356 | 55,387 | ||||||||||||
Provision for income taxes
|
5,230 | 5,849 | 9,973 | 13,418 | ||||||||||||
Net Income
|
$ | 17,112 | $ | 20,964 | $ | 34,383 | $ | 41,969 | ||||||||
Average Common Shares Outstanding
|
26,890 | 27,744 | 27,017 | 27,897 | ||||||||||||
Diluted Average Common Shares Outstanding
|
26,898 | 27,790 | 27,027 | 27,951 | ||||||||||||
Per Common Share Data:
|
||||||||||||||||
Basic earnings
|
$ | 0.64 | $ | 0.76 | $ | 1.27 | $ | 1.50 | ||||||||
Diluted earnings
|
0.64 | 0.75 | 1.27 | 1.50 | ||||||||||||
Dividends paid
|
0.37 | 0.37 | 0.74 | 0.74 |
For the Three Months
|
For the Six Months
|
|||||||||||||||
Ended June 30,
|
||||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Net Income
|
$ | 17,112 | $ | 20,964 | $ | 34,383 | $ | 41,969 | ||||||||
Other comprehensive (loss) income:
|
||||||||||||||||
(Decrease) increase in net unrealized gains on securities available for sale
|
(18,733 | ) | 1,451 | (17,461 | ) | 2,835 | ||||||||||
Deferred tax benefit (expense)
|
7,876 | (610 | ) | 7,342 | (1,192 | ) | ||||||||||
(Decrease) increase in net unrealized gains on securities available for sale, net of tax
|
(10,857 | ) | 841 | (10,119 | ) | 1,643 | ||||||||||
Post-retirement benefit transition obligation amortization
|
15 | 15 | 30 | 30 | ||||||||||||
Deferred tax expense
|
(6 | ) | (6 | ) | (12 | ) | (12 | ) | ||||||||
Post-retirement benefit transition obligation amortization, net of tax
|
9 | 9 | 18 | 18 | ||||||||||||
Total Other Comprehensive (Loss) Income
|
(10,848 | ) | 850 | (10,101 | ) | 1,661 | ||||||||||
Total Comprehensive Income
|
$ | 6,264 | $ | 21,814 | $ | 24,282 | $ | 43,630 |
Common
Shares |
Common
Stock |
Accumulated
Deferred |
Accumulated
Other |
Retained
Earnings |
Total
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Balance, December 31, 2011
|
28,150 | $ | 377,775 | $ | 3,060 | $ | 11,369 | $ | 166,437 | $ | 558,641 | |||||||||||||
Net income for the period
|
41,969 | 41,969 | ||||||||||||||||||||||
Other comprehensive income
|
1,661 | 1,661 | ||||||||||||||||||||||
Exercise of stock options
|
25 | 1,030 | 1,030 | |||||||||||||||||||||
Tax benefit increase upon exercise of stock options
|
2 | 2 | ||||||||||||||||||||||
Restricted stock activity
|
11 | 482 | 41 | 523 | ||||||||||||||||||||
Stock based compensation
|
805 | 805 | ||||||||||||||||||||||
Stock awarded to employees
|
1 | 63 | 63 | |||||||||||||||||||||
Purchase and retirement of stock
|
(566 | ) | (7,526 | ) | (18,555 | ) | (26,081 | ) | ||||||||||||||||
Dividends
|
(20,687 | ) | (20,687 | ) | ||||||||||||||||||||
Balance, June 30, 2012
|
27,621 | $ | 372,631 | $ | 3,101 | $ | 13,030 | $ | 169,164 | $ | 557,926 | |||||||||||||
Balance, December 31, 2012
|
27,213 | $ | 372,012 | $ | 3,101 | $ | 14,625 | $ | 170,364 | $ | 560,102 | |||||||||||||
Net income for the period
|
34,383 | 34,383 | ||||||||||||||||||||||
Other comprehensive loss
|
(10,101 | ) | (10,101 | ) | ||||||||||||||||||||
Exercise of stock options
|
157 | 6,414 | 6,414 | |||||||||||||||||||||
Tax benefit decrease upon exercise of stock options
|
(201 | ) | (201 | ) | ||||||||||||||||||||
Restricted stock activity
|
15 | 1,068 | (390 | ) | 678 | |||||||||||||||||||
Stock based compensation
|
730 | 730 | ||||||||||||||||||||||
Stock awarded to employees
|
1 | 61 | 61 | |||||||||||||||||||||
Purchase and retirement of stock
|
(617 | ) | (8,586 | ) | (18,807 | ) | (27,393 | ) | ||||||||||||||||
Dividends
|
(20,051 | ) | (20,051 | ) | ||||||||||||||||||||
Balance, June 30, 2013
|
26,769 | $ | 371,498 | $ | 2,711 | $ | 4,524 | $ | 165,889 | $ | 544,622 |
For the Six Months
Ended June 30,
|
||||||||
2013
|
2012
|
|||||||
(In thousands)
|
||||||||
Operating Activities:
|
||||||||
Net income
|
$ | 34,383 | $ | 41,969 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
9,032 | 7,037 | ||||||
Loan loss provision
|
4,600 | 5,600 | ||||||
Net amortization of deferred loan fees
|
(202 | ) | (303 | ) | ||||
Decrease in interest income receivable
|
88 | 1,004 | ||||||
Increase in net deferred tax asset
|
(2,644 | ) | (6,275 | ) | ||||
Decrease (increase) in other assets
|
8,174 | (3,386 | ) | |||||
Stock option compensation expense
|
730 | 805 | ||||||
Tax benefit decrease (increase) upon exercise of stock options
|
201 | (2 | ) | |||||
Increase (decrease) in income taxes payable
|
30 | (1,186 | ) | |||||
Increase (decrease) in interest expense payable
|
9 | (129 | ) | |||||
(Decrease) increase in other liabilities
|
(5,482 | ) | 2,160 | |||||
Loss on sale of securities available for sale
|
- | 1,287 | ||||||
Gain on sale of other assets
|
(548 | ) | (256 | ) | ||||
Net loss on sale of premises and equipment
|
9 | 1 | ||||||
Originations of mortgage loans for resale
|
(240 | ) | (27 | ) | ||||
Proceeds from sale of mortgage loans originated for resale
|
241 | 28 | ||||||
Net gain on sale of foreclosed assets
|
(556 | ) | (2,041 | ) | ||||
Writedown of foreclosed assets
|
1,062 | 1,925 | ||||||
Net Cash Provided by Operating Activities
|
48,887 | 48,211 | ||||||
Investing Activities:
|
||||||||
Net repayments of loans
|
167,500 | 194,740 | ||||||
Proceeds from FDIC1 loss-sharing indemnification
|
4,039 | 20,259 | ||||||
Purchases of investment securities available for sale
|
(275,460 | ) | (137,378 | ) | ||||
Proceeds from sale/maturity/calls of securities available for sale
|
77,558 | 70,249 | ||||||
Purchases of investment securities held to maturity
|
(87,643 | ) | (405,281 | ) | ||||
Proceeds from maturity/calls of securities held to maturity
|
107,428 | 106,080 | ||||||
Purchases of premises and equipment
|
(1,110 | ) | (2,637 | ) | ||||
Net change in FRB2/FHLB3 securities
|
1,488 | 895 | ||||||
Proceeds from sale of foreclosed assets
|
9,401 | 16,632 | ||||||
Net Cash Provided by (Used in) Investing Activities
|
3,201 | (136,441 | ) | |||||
Financing Activities:
|
||||||||
Net change in deposits
|
(130,915 | ) | (41,048 | ) | ||||
Net change in short-term borrowings and FHLB3 advances
|
12,952 | (34,106 | ) | |||||
Exercise of stock options
|
6,414 | 1,030 | ||||||
Tax benefit (decrease) increase upon exercise of stock options
|
(201 | ) | 2 | |||||
Retirement of common stock including repurchases
|
(27,393 | ) | (26,081 | ) | ||||
Common stock dividends paid
|
(20,051 | ) | (20,687 | ) | ||||
Net Cash Used in Financing Activities
|
(159,194 | ) | (120,890 | ) | ||||
Net Change In Cash and Due from Banks
|
(107,106 | ) | (209,120 | ) | ||||
Cash and Due from Banks at Beginning of Period
|
491,382 | 530,045 | ||||||
Cash and Due from Banks at End of Period
|
$ | 384,276 | $ | 320,925 | ||||
Supplemental Cash Flow Disclosures:
|
||||||||
Supplemental disclosure of non cash activities:
|
||||||||
Loan collateral transferred to other real estate owned
|
$ | 3,932 | $ | 4,108 | ||||
Supplemental disclosure of cash flow activities:
|
||||||||
Interest paid for the period
|
2,722 | 3,602 | ||||||
Income tax payments for the period
|
12,779 | 21,631 |
Investment Securities Available for Sale
At June 30, 2013
|
||||||||||||||||
Amortized
Cost |
Gross
Unrealized |
Gross
Unrealized |
Fair
Value |
|||||||||||||
(In thousands)
|
||||||||||||||||
U.S. Treasury securities
|
$ | 3,511 | $ | 23 | $ | - | $ | 3,534 | ||||||||
Securities of U.S. Government sponsored entities
|
38,699 | 49 | (367 | ) | 38,381 | |||||||||||
Residential mortgage-backed securities
|
39,532 | 2,089 | (11 | ) | 41,610 | |||||||||||
Commercial mortgage-backed securities
|
3,716 | 73 | - | 3,789 | ||||||||||||
Obligations of States and political subdivisions
|
191,367 | 7,338 | (278 | ) | 198,427 | |||||||||||
Residential collateralized mortgage obligations
|
285,670 | 918 | (8,790 | ) | 277,798 | |||||||||||
Asset-backed securities
|
15,328 | - | (125 | ) | 15,203 | |||||||||||
FHLMC (1) and FNMA (2) stock
|
824 | 7,204 | - | 8,028 | ||||||||||||
Corporate securities
|
416,108 | 2,279 | (3,074 | ) | 415,313 | |||||||||||
Other securities
|
2,049 | 888 | (132 | ) | 2,805 | |||||||||||
Total
|
$ | 996,804 | $ | 20,861 | $ | (12,777 | ) | $ | 1,004,888 |
Investment Securities Held to Maturity
At June 30, 2013
|
||||||||||||||||
Amortized
Cost |
Gross
Unrealized |
Gross
Unrealized |
Fair
Value |
|||||||||||||
(In thousands)
|
||||||||||||||||
Securities of U.S. Government sponsored entities
|
$ | 2,256 | $ | 10 | $ | - | $ | 2,266 | ||||||||
Residential mortgage-backed securities
|
64,404 | 986 | (488 | ) | 64,902 | |||||||||||
Obligations of States and political subdivisions
|
723,096 | 9,146 | (18,155 | ) | 714,087 | |||||||||||
Residential collateralized mortgage obligations
|
344,859 | 1,459 | (2,627 | ) | 343,691 | |||||||||||
Total
|
$ | 1,134,615 | $ | 11,601 | $ | (21,270 | ) | $ | 1,124,946 |
Investment Securities Available for Sale
At December 31, 2012
|
||||||||||||||||
Amortized
Cost |
Gross
Unrealized |
Gross
Unrealized |
Fair
Value |
|||||||||||||
(In thousands)
|
||||||||||||||||
U.S. Treasury securities
|
$ | 3,520 | $ | 38 | $ | - | $ | 3,558 | ||||||||
Securities of U.S. Government sponsored entities
|
49,335 | 207 | (17 | ) | 49,525 | |||||||||||
Residential mortgage-backed securities
|
53,078 | 3,855 | (1 | ) | 56,932 | |||||||||||
Commercial mortgage-backed securities
|
4,076 | 69 | - | 4,145 | ||||||||||||
Obligations of States and political subdivisions
|
200,769 | 14,730 | (252 | ) | 215,247 | |||||||||||
Residential collateralized mortgage obligations
|
219,613 | 1,786 | (294 | ) | 221,105 | |||||||||||
Asset-backed securities
|
16,130 | 18 | (143 | ) | 16,005 | |||||||||||
FHLMC and FNMA stock
|
824 | 2,061 | (5 | ) | 2,880 | |||||||||||
Corporate securities
|
250,655 | 3,009 | (826 | ) | 252,838 | |||||||||||
Other securities
|
2,091 | 1,370 | (60 | ) | 3,401 | |||||||||||
Total
|
$ | 800,091 | $ | 27,143 | $ | (1,598 | ) | $ | 825,636 |
Investment Securities Held to Maturity
At December 31, 2012
|
||||||||||||||||
Amortized
Cost |
Gross
Unrealized |
Gross
Unrealized |
Fair
Value |
|||||||||||||
(In thousands)
|
||||||||||||||||
Securities of U.S. Government sponsored entities
|
$ | 3,232 | $ | 43 | $ | - | $ | 3,275 | ||||||||
Residential mortgage-backed securities
|
72,807 | 2,090 | (10 | ) | 74,887 | |||||||||||
Obligations of States and political subdivisions
|
680,802 | 23,004 | (1,235 | ) | 702,571 | |||||||||||
Residential collateralized mortgage obligations
|
399,200 | 5,185 | (561 | ) | 403,824 | |||||||||||
Total
|
$ | 1,156,041 | $ | 30,322 | $ | (1,806 | ) | $ | 1,184,557 |
At June 30, 2013
|
||||||||||||||||
Securities Available
for Sale |
Securities Held
to Maturity |
|||||||||||||||
Amortized
Cost |
Fair
Value |
Amortized
Cost |
Fair
Value |
|||||||||||||
(In thousands)
|
||||||||||||||||
Maturity in years:
|
||||||||||||||||
1 year or less
|
$ | 69,203 | $ | 69,604 | $ | 11,182 | $ | 11,441 | ||||||||
Over 1 to 5 years
|
426,099 | 425,485 | 162,937 | 166,079 | ||||||||||||
Over 5 to 10 years
|
71,015 | 72,718 | 282,150 | 281,073 | ||||||||||||
Over 10 years
|
98,696 | 103,051 | 269,083 | 257,760 | ||||||||||||
Subtotal
|
665,013 | 670,858 | 725,352 | 716,353 | ||||||||||||
Mortgage-backed securities and residential collateralized mortgage obligations
|
328,918 | 323,197 | 409,263 | 408,593 | ||||||||||||
Other securities
|
2,873 | 10,833 | - | - | ||||||||||||
Total
|
$ | 996,804 | $ | 1,004,888 | $ | 1,134,615 | $ | 1,124,946 |
At December 31, 2012
|
||||||||||||||||
Securities Available
for Sale |
Securities Held
to Maturity |
|||||||||||||||
Amortized
Cost |
Fair
Value |
Amortized
Cost |
Fair
Value |
|||||||||||||
(In thousands)
|
||||||||||||||||
Maturity in years:
|
||||||||||||||||
1 year or less
|
$ | 40,380 | $ | 40,686 | $ | 10,265 | $ | 10,496 | ||||||||
Over 1 to 5 years
|
309,293 | 312,480 | 167,162 | 171,769 | ||||||||||||
Over 5 to 10 years
|
59,817 | 63,540 | 227,603 | 236,608 | ||||||||||||
Over 10 years
|
110,919 | 120,467 | 279,004 | 286,973 | ||||||||||||
Subtotal
|
520,409 | 537,173 | 684,034 | 705,846 | ||||||||||||
Mortgage-backed securities and residential collateralized mortgage obligations
|
276,767 | 282,182 | 472,007 | 478,711 | ||||||||||||
Other securities
|
2,915 | 6,281 | - | - | ||||||||||||
Total
|
$ | 800,091 | $ | 825,636 | $ | 1,156,041 | $ | 1,184,557 |
Investment Securities Available for Sale
At June 30, 2013 |
||||||||||||||||||||||||
Less than 12 months
|
12 months or longer
|
Total
|
||||||||||||||||||||||
Fair Value
|
Unrealized
Losses |
Fair Value
|
Unrealized
Losses |
Fair Value
|
Unrealized
Losses |
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Securities of U.S. Government sponsored entities
|
$ | 24,507 | $ | (367 | ) | $ | - | $ | - | $ | 24,507 | $ | (367 | ) | ||||||||||
Residential mortgage-backed securities
|
18 | - | 868 | (11 | ) | 886 | (11 | ) | ||||||||||||||||
Obligations of States and political subdivisions
|
9,893 | (141 | ) | 5,756 | (137 | ) | 15,649 | (278 | ) | |||||||||||||||
Residential collateralized mortgage obligations
|
250,865 | (8,790 | ) | 1 | - | 250,866 | (8,790 | ) | ||||||||||||||||
Asset-backed securities
|
10,108 | (10 | ) | 5,095 | (115 | ) | 15,203 | (125 | ) | |||||||||||||||
Corporate securities
|
218,697 | (2,715 | ) | 32,548 | (359 | ) | 251,245 | (3,074 | ) | |||||||||||||||
Other securities
|
- | - | 1,868 | (132 | ) | 1,868 | (132 | ) | ||||||||||||||||
Total
|
$ | 514,088 | $ | (12,023 | ) | $ | 46,136 | $ | (754 | ) | $ | 560,224 | $ | (12,777 | ) |
Investment Securities Held to Maturity
At June 30, 2013 |
||||||||||||||||||||||||
Less than 12 months
|
12 months or longer
|
Total
|
||||||||||||||||||||||
Fair Value
|
Unrealized
Losses |
Fair Value
|
Unrealized
Losses |
Fair Value
|
Unrealized
Losses |
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Residential mortgage-backed securities
|
$ | 33,116 | $ | (360 | ) | $ | 7,561 | $ | (128 | ) | $ | 40,677 | $ | (488 | ) | |||||||||
Obligations of States and political subdivisions
|
338,807 | (17,765 | ) | 9,307 | (390 | ) | 348,114 | (18,155 | ) | |||||||||||||||
Residential collateralized mortgage obligations
|
208,216 | (2,360 | ) | 16,418 | (267 | ) | 224,634 | (2,627 | ) | |||||||||||||||
Total
|
$ | 580,139 | $ | (20,485 | ) | $ | 33,286 | $ | (785 | ) | $ | 613,425 | $ | (21,270 | ) |
Investment Securities Available for Sale
At December 31, 2012 |
||||||||||||||||||||||||
Less than 12 months
|
12 months or longer
|
Total
|
||||||||||||||||||||||
Fair Value
|
Unrealized
Losses |
Fair Value
|
Unrealized
Losses |
Fair Value
|
Unrealized
Losses |
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Securities of U.S. Government sponsored entities
|
$ | 9,983 | $ | (17 | ) | $ | - | $ | - | $ | 9,983 | $ | (17 | ) | ||||||||||
Residential mortgage-backed securities
|
103 | (1 | ) | 11 | - | 114 | (1 | ) | ||||||||||||||||
Residential collateralized mortgage obligations
|
72,803 | (294 | ) | - | - | 72,803 | (294 | ) | ||||||||||||||||
Obligations of States and political subdivisions
|
2,080 | (23 | ) | 8,928 | (229 | ) | 11,008 | (252 | ) | |||||||||||||||
Asset-backed securities
|
- | - | 5,828 | (143 | ) | 5,828 | (143 | ) | ||||||||||||||||
FHLMC and FNMA stock
|
- | - | 1 | (5 | ) | 1 | (5 | ) | ||||||||||||||||
Corporate securities
|
53,570 | (423 | ) | 24,597 | (403 | ) | 78,167 | (826 | ) | |||||||||||||||
Other securities
|
- | - | 1,940 | (60 | ) | 1,940 | (60 | ) | ||||||||||||||||
Total
|
$ | 138,539 | $ | (758 | ) | $ | 41,305 | $ | (840 | ) | $ | 179,844 | $ | (1,598 | ) |
Investment Securities Held to Maturity
At December 31, 2012 |
||||||||||||||||||||||||
Less than 12 months
|
12 months or longer
|
Total
|
||||||||||||||||||||||
Fair Value
|
Unrealized
Losses |
Fair Value
|
Unrealized
Losses |
Fair Value
|
Unrealized
Losses |
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Residential mortgage-backed securities
|
$ | 113 | $ | - | $ | 664 | $ | (10 | ) | $ | 777 | $ | (10 | ) | ||||||||||
Residential collateralized mortgage obligations
|
26,683 | (386 | ) | 9,353 | (175 | ) | 36,036 | (561 | ) | |||||||||||||||
Obligations of States and political subdivisions
|
69,839 | (1,205 | ) | 4,275 | (30 | ) | 74,114 | (1,235 | ) | |||||||||||||||
Total
|
$ | 96,635 | $ | (1,591 | ) | $ | 14,292 | $ | (215 | ) | $ | 110,927 | $ | (1,806 | ) |
For the Three Months
|
For the Six Months
|
|||||||||||||||
Ended June 30,
|
||||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Taxable:
|
||||||||||||||||
Mortgage related securities
|
$ | 3,371 | $ | 3,713 | $ | 6,933 | $ | 7,076 | ||||||||
Other
|
2,220 | 1,635 | 4,192 | 2,962 | ||||||||||||
Total taxable
|
5,591 | 5,348 | 11,125 | 10,038 | ||||||||||||
Tax-exempt
|
7,498 | 7,808 | 15,030 | 15,760 | ||||||||||||
Total interest income from investment securities
|
$ | 13,089 | $ | 13,156 | $ | 26,155 | $ | 25,798 |
At June 30, 2013
|
||||||||||||||||||||||||
Commercial
|
Commercial
Real Estate |
Construction
|
Residential
Real Estate |
Consumer
Installment |
Total
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Originated loans
|
$ | 309,621 | $ | 614,005 | $ | 8,015 | $ | 195,322 | $ | 426,340 | $ | 1,553,303 | ||||||||||||
Purchased covered loans:
|
||||||||||||||||||||||||
Impaired
|
284 | 6,211 | 1,649 | - | 254 | 8,398 | ||||||||||||||||||
Non impaired
|
42,386 | 220,054 | 4,805 | 9,280 | 58,567 | 335,092 | ||||||||||||||||||
Purchase discount
|
(5,058 | ) | (11,597 | ) | (99 | ) | (434 | ) | (1,326 | ) | (18,514 | ) | ||||||||||||
Purchased non-covered loans:
|
||||||||||||||||||||||||
Impaired
|
660 | 2,621 | - | - | 198 | 3,479 | ||||||||||||||||||
Non impaired
|
8,170 | 34,758 | 1,330 | 1,015 | 15,919 | 61,192 | ||||||||||||||||||
Purchase discount
|
(876 | ) | (1,002 | ) | - | (262 | ) | (1,469 | ) | (3,609 | ) | |||||||||||||
Total
|
$ | 355,187 | $ | 865,050 | $ | 15,700 | $ | 204,921 | $ | 498,483 | $ | 1,939,341 |
At December 31, 2012
|
||||||||||||||||||||||||
Commercial
|
Commercial
Real Estate |
Construction
|
Residential
Real Estate |
Consumer
Installment |
Total
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Originated loans
|
$ | 340,116 | $ | 632,927 | $ | 7,984 | $ | 222,458 | $ | 460,698 | $ | 1,664,183 | ||||||||||||
Purchased covered loans:
|
||||||||||||||||||||||||
Impaired
|
308 | 7,585 | 1,824 | - | 257 | 9,974 | ||||||||||||||||||
Non impaired
|
59,135 | 247,534 | 5,462 | 9,374 | 66,932 | 388,437 | ||||||||||||||||||
Purchase discount
|
(8,459 | ) | (15,140 | ) | (279 | ) | (433 | ) | (1,817 | ) | (26,128 | ) | ||||||||||||
Purchased non-covered loans:
|
||||||||||||||||||||||||
Impaired
|
1,261 | 6,763 | - | - | 297 | 8,321 | ||||||||||||||||||
Non impaired
|
9,840 | 38,673 | 1,619 | 3,110 | 18,554 | 71,796 | ||||||||||||||||||
Purchase discount
|
(870 | ) | (1,748 | ) | (95 | ) | (474 | ) | (2,039 | ) | (5,226 | ) | ||||||||||||
Total
|
$ | 401,331 | $ | 916,594 | $ | 16,515 | $ | 234,035 | $ | 542,882 | $ | 2,111,357 |
For the
Six Months Ended |
For the Year Ended
December 31, 2012 |
|||||||
Impaired purchased covered loans
|
(In thousands)
|
|||||||
Carrying amount at the beginning of the period
|
$ | 7,865 | $ | 18,591 | ||||
Reductions during the period
|
(605 | ) | (10,726 | ) | ||||
Carrying amount at the end of the period
|
$ | 7,260 | $ | 7,865 |
For the
Six Months Ended |
For the Year Ended
December 31, 2012 |
|||||||
Impaired purchased non-covered loans
|
(In thousands)
|
|||||||
Carrying amount at the beginning of the period
|
$ | 6,764 | $ | 15,572 | ||||
Reductions during the period
|
(4,166 | ) | (8,808 | ) | ||||
Carrying amount at the end of the period
|
$ | 2,598 | $ | 6,764 |
For the
Six Months Ended |
For the
Year Ended |
|||||||
Accretable yield:
|
(In thousands)
|
|||||||
Balance at the beginning of the period
|
$ | 4,948 | $ | 9,990 | ||||
Reclassification from nonaccretable difference
|
8,864 | 12,121 | ||||||
Accretion
|
(7,363 | ) | (17,163 | ) | ||||
Disposals and other
|
- | - | ||||||
Balance at the end of the period
|
$ | 6,449 | $ | 4,948 | ||||
Accretion
|
$ | (7,363 | ) | $ | (17,163 | ) | ||
Reduction in FDIC indemnification asset
|
5,759 | 13,207 | ||||||
(Increase) in interest income
|
$ | (1,604 | ) | $ | (3,956 | ) |
Allowance for Credit Losses
For the Three Months Ended June 30, 2013 |
||||||||||||||||||||||||||||||||||||
Commercial
|
Commercial
Real Estate |
Construction
|
Residential
Real Estate |
Consumer
Installment |
Purchased
Non-covered |
Purchased
Covered |
Unallocated
|
Total
|
||||||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||||||
Balance at beginning of period
|
$ | 5,536 | $ | 10,965 | $ | 480 | $ | 539 | $ | 2,768 | $ | - | $ | 738 | $ | 9,328 | $ | 30,354 | ||||||||||||||||||
Additions:
|
||||||||||||||||||||||||||||||||||||
Provision
|
(1,301 | ) | 660 | (2 | ) | 15 | 225 | 116 | 46 | 2,041 | 1,800 | |||||||||||||||||||||||||
Deductions:
|
||||||||||||||||||||||||||||||||||||
Chargeoffs
|
(148 | ) | (427 | ) | - | (22 | ) | (896 | ) | (116 | ) | (517 | ) | - | (2,126 | ) | ||||||||||||||||||||
Recoveries
|
297 | 77 | - | - | 506 | - | 18 | - | 898 | |||||||||||||||||||||||||||
Net loan recoveries (losses)
|
149 | (350 | ) | - | (22 | ) | (390 | ) | (116 | ) | (499 | ) | - | (1,228 | ) | |||||||||||||||||||||
Balance at end of period
|
4,384 | 11,275 | 478 | 532 | 2,603 | - | 285 | 11,369 | 30,926 | |||||||||||||||||||||||||||
Liability for off-balance sheet credit exposure
|
1,698 | 1 | 127 | - | 473 | - | - | 394 | 2,693 | |||||||||||||||||||||||||||
Total allowance for credit losses
|
$ | 6,082 | $ | 11,276 | $ | 605 | $ | 532 | $ | 3,076 | $ | - | $ | 285 | $ | 11,763 | $ | 33,619 |
Allowance for Credit Losses
For the Six Months Ended June 30, 2013 |
||||||||||||||||||||||||||||||||||||
Commercial
|
Commercial
Real Estate |
Construction
|
Residential
Real Estate |
Consumer
Installment |
Purchased
Non-covered |
Purchased
Covered |
Unallocated
|
Total
|
||||||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||||||
Balance at beginning of period
|
$ | 6,445 | $ | 10,063 | $ | 484 | $ | 380 | $ | 3,194 | $ | - | $ | 1,005 | $ | 8,663 | $ | 30,234 | ||||||||||||||||||
Additions:
|
||||||||||||||||||||||||||||||||||||
Provision
|
(770 | ) | 1,653 | (6 | ) | 261 | 507 | 116 | 133 | 2,706 | 4,600 | |||||||||||||||||||||||||
Deductions:
|
||||||||||||||||||||||||||||||||||||
Chargeoffs
|
(2,050 | ) | (539 | ) | - | (109 | ) | (2,205 | ) | (116 | ) | (876 | ) | - | (5,895 | ) | ||||||||||||||||||||
Recoveries
|
759 | 98 | - | - | 1,107 | - | 23 | - | 1,987 | |||||||||||||||||||||||||||
Net loan losses
|
(1,291 | ) | (441 | ) | - | (109 | ) | (1,098 | ) | (116 | ) | (853 | ) | - | (3,908 | ) | ||||||||||||||||||||
Balance at end of period
|
4,384 | 11,275 | 478 | 532 | 2,603 | - | 285 | 11,369 | 30,926 | |||||||||||||||||||||||||||
Liability for off-balance sheet credit exposure
|
1,698 | 1 | 127 | - | 473 | - | - | 394 | 2,693 | |||||||||||||||||||||||||||
Total allowance for credit losses
|
$ | 6,082 | $ | 11,276 | $ | 605 | $ | 532 | $ | 3,076 | $ | - | $ | 285 | $ | 11,763 | $ | 33,619 |
Allowance for Credit Losses
For the Three Months Ended June 30, 2012 |
||||||||||||||||||||||||||||||||||||
Commercial
|
Commercial
Real Estate |
Construction
|
Residential
Real Estate |
Consumer
Installment |
Purchased
Non-covered |
Purchased
Covered |
Unallocated
|
Total
|
||||||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||||||
Balance at beginning of period
|
$ | 6,814 | $ | 11,427 | $ | 2,755 | $ | 645 | $ | 2,825 | $ | - | $ | 139 | $ | 7,278 | $ | 31,883 | ||||||||||||||||||
Additions:
|
||||||||||||||||||||||||||||||||||||
Provision
|
1,984 | (1,561 | ) | (270 | ) | 19 | 817 | 25 | 324 | 1,462 | 2,800 | |||||||||||||||||||||||||
Deductions:
|
||||||||||||||||||||||||||||||||||||
Chargeoffs
|
(2,696 | ) | - | - | (62 | ) | (1,211 | ) | (25 | ) | (247 | ) | - | (4,241 | ) | |||||||||||||||||||||
Recoveries
|
228 | 33 | 196 | - | 600 | - | 24 | - | 1,081 | |||||||||||||||||||||||||||
Net loan (losses) recoveries
|
(2,468 | ) | 33 | 196 | (62 | ) | (611 | ) | (25 | ) | (223 | ) | - | (3,160 | ) | |||||||||||||||||||||
Balance at end of period
|
6,330 | 9,899 | 2,681 | 602 | 3,031 | - | 240 | 8,740 | 31,523 | |||||||||||||||||||||||||||
Liability for off-balance sheet credit exposure
|
1,644 | 16 | 12 | - | 384 | - | - | 637 | 2,693 | |||||||||||||||||||||||||||
Total allowance for credit losses
|
$ | 7,974 | $ | 9,915 | $ | 2,693 | $ | 602 | $ | 3,415 | $ | - | $ | 240 | $ | 9,377 | $ | 34,216 |
Allowance for Credit Losses
For the Six Months Ended June 30, 2012 |
||||||||||||||||||||||||||||||||||||
Commercial
|
Commercial
Real Estate |
Construction
|
Residential
Real Estate |
Consumer
Installment |
Purchased
Non-covered |
Purchased
Covered |
Unallocated
|
Total
|
||||||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||||||
Balance at beginning of period
|
$ | 6,012 | $ | 10,611 | $ | 2,342 | $ | 781 | $ | 3,072 | $ | - | $ | - | $ | 9,779 | $ | 32,597 | ||||||||||||||||||
Additions:
|
||||||||||||||||||||||||||||||||||||
Provision
|
3,259 | 203 | 141 | 753 | 1,444 | 25 | 814 | (1,039 | ) | 5,600 | ||||||||||||||||||||||||||
Deductions:
|
||||||||||||||||||||||||||||||||||||
Chargeoffs
|
(3,558 | ) | (948 | ) | - | (932 | ) | (2,864 | ) | (25 | ) | (612 | ) | - | (8,939 | ) | ||||||||||||||||||||
Recoveries
|
617 | 33 | 198 | - | 1,379 | - | 38 | - | 2,265 | |||||||||||||||||||||||||||
Net loan (losses) recoveries
|
(2,941 | ) | (915 | ) | 198 | (932 | ) | (1,485 | ) | (25 | ) | (574 | ) | - | (6,674 | ) | ||||||||||||||||||||
Balance at end of period
|
6,330 | 9,899 | 2,681 | 602 | 3,031 | - | 240 | 8,740 | 31,523 | |||||||||||||||||||||||||||
Liability for off-balance sheet credit exposure
|
1,644 | 16 | 12 | - | 384 | - | - | 637 | 2,693 | |||||||||||||||||||||||||||
Total allowance for credit losses
|
$ | 7,974 | $ | 9,915 | $ | 2,693 | $ | 602 | $ | 3,415 | $ | - | $ | 240 | $ | 9,377 | $ | 34,216 |
Allowance for Credit Losses and
Recorded Investment in Loans Evaluated for ImpairmentAt June 30, 2013
|
||||||||||||||||||||||||||||||||||||
Commercial
|
Commercial
Real Estate
|
Construction
|
Residential
Real Estate
|
Consumer
Installment
and Other
|
Purchased
Non-covered
Loans
|
Purchased
Covered
Loans
|
Unallocated
|
Total
|
||||||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||||||
Allowance for credit losses:
|
||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 100 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 147 | $ | - | $ | 247 | ||||||||||||||||||
Collectively evaluated for impairment
|
5,982 | 11,276 | 605 | 532 | 3,076 | - | 138 | 11,763 | 33,372 | |||||||||||||||||||||||||||
Purchased loans with evidence of credit deterioration
|
- | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Total
|
$ | 6,082 | $ | 11,276 | $ | 605 | $ | 532 | $ | 3,076 | $ | - | $ | 285 | $ | 11,763 | $ | 33,619 | ||||||||||||||||||
Carrying value of loans:
|
||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 2,496 | $ | 4,421 | $ | - | $ | - | $ | - | $ | 3,990 | $ | 15,169 | $ | - | $ | 26,076 | ||||||||||||||||||
Collectively evaluated for impairment
|
307,125 | 609,584 | 8,015 | 195,322 | 426,340 | 54,474 | 302,547 | - | 1,903,407 | |||||||||||||||||||||||||||
Purchased loans with evidence of credit deterioration
|
- | - | - | - | - | 2,598 | 7,260 | - | 9,858 | |||||||||||||||||||||||||||
Total
|
$ | 309,621 | $ | 614,005 | $ | 8,015 | $ | 195,322 | $ | 426,340 | $ | 61,062 | $ | 324,976 | $ | - | $ | 1,939,341 |
Allowance for Credit Losses and
Recorded Investment in Loans Evaluated for ImpairmentAt December 31, 2012
|
||||||||||||||||||||||||||||||||||||
Commercial
|
Commercial
Real Estate
|
Construction
|
Residential
Real Estate
|
Consumer
Installment
and Other
|
Purchased
Non-covered
Loans
|
Purchased
Covered
Loans
|
Unallocated
|
Total
|
||||||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||||||
Allowance for credit losses:
|
||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 1,865 | $ | 134 | $ | - | $ | - | $ | - | $ | - | $ | 753 | $ | - | $ | 2,752 | ||||||||||||||||||
Collectively evaluated for impairment
|
6,314 | 9,938 | 484 | 380 | 3,613 | - | 252 | 9,194 | 30,175 | |||||||||||||||||||||||||||
Purchased loans with evidence of credit deterioration
|
- | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Total
|
$ | 8,179 | $ | 10,072 | $ | 484 | $ | 380 | $ | 3,613 | $ | - | $ | 1,005 | $ | 9,194 | $ | 32,927 | ||||||||||||||||||
Carrying value of loans:
|
||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 5,153 | $ | 4,161 | $ | - | $ | - | $ | - | $ | 3,029 | $ | 16,680 | $ | - | $ | 29,023 | ||||||||||||||||||
Collectively evaluated for impairment
|
334,963 | 628,766 | 7,984 | 222,458 | 460,698 | 65,098 | 347,738 | - | 2,067,705 | |||||||||||||||||||||||||||
Purchased loans with evidence of credit deterioration
|
- | - | - | - | - | 6,764 | 7,865 | - | 14,629 | |||||||||||||||||||||||||||
Total
|
$ | 340,116 | $ | 632,927 | $ | 7,984 | $ | 222,458 | $ | 460,698 | $ | 74,891 | $ | 372,283 | $ | - | $ | 2,111,357 |
Credit Risk Profile by Internally Assigned Grade
At June 30, 2013 |
||||||||||||||||||||||||||||||||
Commercial
|
Commercial
Real Estate
|
Construction
|
Residential
Real Estate
|
Consumer
Installment
and Other
|
Purchased
Non-covered
Loans
|
Purchased
Covered
Loans (1)
|
Total
|
|||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||
Grade:
|
||||||||||||||||||||||||||||||||
Pass
|
$ | 297,214 | $ | 568,854 | $ | 7,557 | $ | 192,790 | $ | 424,989 | $ | 44,635 | $ | 227,835 | $ | 1,763,874 | ||||||||||||||||
Substandard
|
10,271 | 45,151 | 458 | 2,532 | 1,137 | 19,049 | 115,255 | 193,853 | ||||||||||||||||||||||||
Doubtful
|
2,136 | - | - | - | 8 | 987 | 350 | 3,481 | ||||||||||||||||||||||||
Loss
|
- | - | - | - | 206 | - | 50 | 256 | ||||||||||||||||||||||||
Default risk purchase discount
|
- | - | - | - | - | (3,609 | ) | (18,514 | ) | (22,123 | ) | |||||||||||||||||||||
Total
|
$ | 309,621 | $ | 614,005 | $ | 8,015 | $ | 195,322 | $ | 426,340 | $ | 61,062 | $ | 324,976 | $ | 1,939,341 |
Credit Risk Profile by Internally Assigned Grade
At December 31, 2012 |
||||||||||||||||||||||||||||||||
Commercial
|
Commercial
Real Estate
|
Construction
|
Residential
Real Estate
|
Consumer
Installment
and Other
|
Purchased
Non-covered
Loans
|
Purchased
Covered
Loans (1)
|
Total
|
|||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||
Grade:
|
||||||||||||||||||||||||||||||||
Pass
|
$ | 324,452 | $ | 599,472 | $ | 7,518 | $ | 219,655 | $ | 459,076 | $ | 51,901 | $ | 274,976 | $ | 1,937,050 | ||||||||||||||||
Substandard
|
11,413 | 33,455 | 466 | 2,803 | 1,158 | 27,066 | 122,815 | 199,176 | ||||||||||||||||||||||||
Doubtful
|
4,251 | - | - | - | 46 | 1,145 | 470 | 5,912 | ||||||||||||||||||||||||
Loss
|
- | - | - | - | 418 | 5 | 150 | 573 | ||||||||||||||||||||||||
Default risk purchase discount
|
- | - | - | - | - | (5,226 | ) | (26,128 | ) | (31,354 | ) | |||||||||||||||||||||
Total
|
$ | 340,116 | $ | 632,927 | $ | 7,984 | $ | 222,458 | $ | 460,698 | $ | 74,891 | $ | 372,283 | $ | 2,111,357 |
Summary of Loans by Delinquency and Nonaccrual Status
At June 30, 2013 |
||||||||||||||||||||
Current and
Accruing
|
30-89 Days Past
Due and
Accruing
|
Past Due 90
days or More
and Accruing
|
Nonaccrual
|
Total Loans
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Commercial
|
$ | 304,644 | $ | 2,302 | $ | - | $ | 2,675 | $ | 309,621 | ||||||||||
Commercial real estate
|
593,883 | 14,275 | - | 5,847 | 614,005 | |||||||||||||||
Construction
|
8,015 | - | - | - | 8,015 | |||||||||||||||
Residential real estate
|
194,348 | 560 | - | 414 | 195,322 | |||||||||||||||
Consumer installment & other
|
422,702 | 3,397 | 241 | - | 426,340 | |||||||||||||||
Total originated loans
|
1,523,592 | 20,534 | 241 | 8,936 | 1,553,303 | |||||||||||||||
Purchased non-covered loans
|
54,447 | 1,712 | - | 4,903 | 61,062 | |||||||||||||||
Purchased covered loans
|
300,332 | 7,747 | 74 | 16,823 | 324,976 | |||||||||||||||
Total
|
$ | 1,878,371 | $ | 29,993 | $ | 315 | $ | 30,662 | $ | 1,939,341 |
Summary of Loans by Delinquency and Nonaccrual Status
At December 31, 2012 |
||||||||||||||||||||
Current and
Accruing
|
30-89 Days Past
Due and
Accruing
|
Past Due 90
days or More
and Accruing
|
Nonaccrual
|
Total Loans
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Commercial
|
$ | 333,474 | $ | 1,032 | $ | - | $ | 5,610 | $ | 340,116 | ||||||||||
Commercial real estate
|
616,276 | 10,750 | - | 5,901 | 632,927 | |||||||||||||||
Construction
|
7,984 | - | - | - | 7,984 | |||||||||||||||
Residential real estate
|
220,032 | 2,193 | - | 233 | 222,458 | |||||||||||||||
Consumer installment & other
|
455,007 | 5,205 | 455 | 31 | 460,698 | |||||||||||||||
Total originated loans
|
1,632,773 | 19,180 | 455 | 11,775 | 1,664,183 | |||||||||||||||
Purchased non-covered loans
|
65,567 | 1,821 | 4 | 7,499 | 74,891 | |||||||||||||||
Purchased covered loans
|
352,619 | 6,488 | 155 | 13,021 | 372,283 | |||||||||||||||
Total
|
$ | 2,050,959 | $ | 27,489 | $ | 614 | $ | 32,295 | $ | 2,111,357 |
For the Three Months
|
For the Six Months
|
|||||||||||||||
Ended June 30,
|
||||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Interest income that would have been recognized had the loans performed in accordance with their original terms
|
$ | 634 | $ | 1,104 | $ | 1,388 | $ | 2,168 | ||||||||
Less: Interest income recognized on nonaccrual loans
|
(203 | ) | (494 | ) | (578 | ) | (1,336 | ) | ||||||||
Total reduction of interest income
|
$ | 431 | $ | 610 | $ | 810 | $ | 832 |
Impaired Loans
At June 30, 2013 |
||||||||||||
Recorded
Investment |
Unpaid
Principal |
Related
Allowance |
||||||||||
(In thousands)
|
||||||||||||
Impaired loans with no related allowance recorded:
|
||||||||||||
Commercial
|
$ | 9,717 | $ | 17,846 | $ | - | ||||||
Commercial real estate
|
21,536 | 24,652 | - | |||||||||
Construction
|
2,935 | 3,369 | - | |||||||||
Residential real estate
|
414 | 414 | - | |||||||||
Consumer installment and other
|
521 | 627 | - | |||||||||
Impaired loans with an allowance recorded:
|
||||||||||||
Commercial
|
1,000 | 2,173 | 100 | |||||||||
Commercial real estate
|
3,954 | 3,954 | 147 | |||||||||
Total:
|
||||||||||||
Commercial
|
$ | 10,717 | $ | 20,019 | $ | 100 | ||||||
Commercial real estate
|
25,490 | 28,606 | 147 | |||||||||
Construction
|
2,935 | 3,369 | - | |||||||||
Residential real estate
|
414 | 414 | - | |||||||||
Consumer installment and other
|
521 | 627 | - |
Impaired Loans
At December 31, 2012 |
||||||||||||
Recorded
Investment |
Unpaid
Principal |
Related
Allowance |
||||||||||
(In thousands)
|
||||||||||||
Impaired loans with no related allowance recorded:
|
||||||||||||
Commercial
|
$ | 3,100 | $ | 9,506 | $ | - | ||||||
Commercial real estate
|
24,135 | 27,972 | - | |||||||||
Construction
|
2,363 | 2,992 | - | |||||||||
Residential real estate
|
668 | 668 | - | |||||||||
Consumer installment and other
|
2,328 | 2,616 | - | |||||||||
Impaired loans with an allowance recorded:
|
||||||||||||
Commercial
|
12,129 | 13,739 | 2,588 | |||||||||
Commercial real estate
|
4,038 | 4,038 | 164 | |||||||||
Total:
|
||||||||||||
Commercial
|
$ | 15,229 | $ | 23,245 | $ | 2,588 | ||||||
Commercial real estate
|
28,173 | 32,010 | 164 | |||||||||
Construction
|
2,363 | 2,992 | - | |||||||||
Residential real estate
|
668 | 668 | - | |||||||||
Consumer installment and other
|
2,328 | 2,616 | - |
Impaired Loans
|
||||||||||||||||||||||||||||||||
For the Three Months Ended June 30,
|
For the Six Months Ended June 30,
|
|||||||||||||||||||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||||||||||||||||||
Average
Recorded
Investment
|
Recognized
Interest
Income
|
Average
Recorded
Investment
|
Recognized
Interest
Income
|
Average
Recorded
Investment
|
Recognized
Interest
Income
|
Average
Recorded
Investment
|
Recognized
Interest
Income
|
|||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||
Commercial
|
$ | 11,473 | $ | 52 | $ | 9,888 | $ | 67 | $ | 12,601 | $ | 106 | $ | 9,342 | $ | 117 | ||||||||||||||||
Commercial real estate
|
27,166 | 205 | 30,228 | 349 | 27,836 | 505 | 31,416 | 727 | ||||||||||||||||||||||||
Construction
|
2,397 | 25 | 7,552 | 59 | 2,254 | 51 | 7,981 | 159 | ||||||||||||||||||||||||
Residential real estate
|
558 | - | 1,112 | - | 621 | - | 957 | - | ||||||||||||||||||||||||
Consumer installment and other
|
1,059 | 8 | 2,825 | 8 | 1,511 | 15 | 2,873 | 26 | ||||||||||||||||||||||||
Total
|
$ | 42,653 | $ | 290 | $ | 51,605 | $ | 483 | $ | 44,823 | $ | 677 | $ | 52,569 | $ | 1,029 |
Troubled Debt Restructurings
At June 30, 2013
|
||||||||||||||||
Number of
Contracts
|
Pre-Modification
Carrying Value
|
Period-End
Carrying Value
|
Period-End
Individual
Impairment
Allowance
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Commercial
|
4 | $ | 1,991 | $ | 1,759 | $ | - | |||||||||
Commercial real estate
|
3 | 6,295 | 6,255 | 147 | ||||||||||||
Total
|
7 | $ | 8,286 | $ | 8,014 | $ | 147 |
Troubled Debt Restructurings
At December 31, 2012
|
||||||||||||||||
Number of
Contracts
|
Pre-Modification
Carrying Value
|
Period-End
Carrying Value
|
Period-End
Individual
Impairment
Allowance
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Commercial
|
3 | $ | 1,318 | $ | 1,196 | $ | 797 | |||||||||
Commercial real estate
|
2 | 5,391 | 5,482 | - | ||||||||||||
Total
|
5 | $ | 6,709 | $ | 6,678 | $ | 797 |
At June 30,
2013
|
At December 31,
2012
|
|||||||
(In thousands)
|
||||||||
Cost method equity investments:
|
||||||||
Federal Reserve Bank stock (1)
|
$ | 14,069 | $ | 14,069 | ||||
Federal Home Loan Bank stock (2)
|
5,865 | 7,353 | ||||||
Other investments
|
376 | 376 | ||||||
Total cost method equity investments
|
20,310 | 21,798 | ||||||
Life insurance cash surrender value
|
46,056 | 45,579 | ||||||
Deferred taxes receivable
|
52,486 | 42,449 | ||||||
Limited partnership investments
|
19,219 | 20,631 | ||||||
Interest receivable
|
20,186 | 20,274 | ||||||
FDIC indemnification receivable
|
8,758 | 13,847 | ||||||
Prepaid assets
|
3,180 | 11,679 | ||||||
Other assets
|
11,265 | 11,829 | ||||||
Total other assets
|
$ | 181,460 | $ | 188,086 |
June 30, 2013 | $ | 121,673 | |||
December 31, 2012 | $ | 121,673 |
At June 30, 2013
|
At December 31, 2012
|
|||||||||||||||
Gross
Carrying
Amount
|
Accumulated
Amortization
|
Gross
Carrying
Amount
|
Accumulated
Amortization
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Core Deposit Intangibles
|
$ | 56,808 | $ | (37,114 | ) | $ | 56,808 | $ | (34,938 | ) | ||||||
Merchant Draft Processing Intangible
|
10,300 | (9,117 | ) | 10,300 | (8,909 | ) | ||||||||||
Total Identifiable Intangible Assets
|
$ | 67,108 | $ | (46,231 | ) | $ | 67,108 | $ | (43,847 | ) |
Core
Deposit
Intangibles
|
Merchant
Draft
Processing
Intangible
|
Total
|
||||||||||
(In thousands)
|
||||||||||||
Six months ended June 30, 2013 (actual)
|
$ | 2,176 | $ | 208 | $ | 2,384 | ||||||
Estimate for year ended December 31, 2013
|
4,304 | 400 | 4,704 | |||||||||
2014
|
3,946 | 324 | 4,270 | |||||||||
2015
|
3,594 | 262 | 3,856 | |||||||||
2016
|
3,292 | 212 | 3,504 | |||||||||
2017
|
2,913 | 164 | 3,077 | |||||||||
2018
|
1,892 | 29 | 1,921 |
Deposits
|
||||||||
At June 30, 2013
|
At December 31, 2012
|
|||||||
(In thousands)
|
||||||||
Noninterest-bearing
|
$ | 1,644,151 | $ | 1,676,071 | ||||
Interest-bearing:
|
||||||||
Transaction
|
725,852 | 748,818 | ||||||
Savings
|
1,139,110 | 1,165,032 | ||||||
Time
|
592,281 | 642,571 | ||||||
Total deposits
|
$ | 4,101,394 | $ | 4,232,492 |
Fair Value
|
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2 )
|
Significant
Unobservable
Inputs
(Level 3 )
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Investment securities available for sale:
|
||||||||||||||||
At June 30, 2013
|
$ | 1,004,888 | $ | 50,880 | $ | 954,008 | $ | - | ||||||||
At December 31, 2012
|
$ | 825,636 | $ | 57,424 | $ | 768,212 | $ | - |
At June 30, 2013
|
||||||||||||||||||||
Fair Value
|
Level 1
|
Level 2
|
Level 3
|
Total Losses
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Non-covered other real estate owned
|
$ | 4,909 | $ | - | $ | 4,909 | $ | - | $ | (822 | ) | |||||||||
Covered other real estate owned
|
6,035 | - | 6,035 | - | (133 | ) | ||||||||||||||
Originated impaired loans
|
4,278 | - | 2,537 | 1,741 | (2,093 | ) | ||||||||||||||
Purchased covered impaired loans
|
8,911 | - | 3,421 | 5,490 | (517 | ) | ||||||||||||||
Total assets measured at fair value on a nonrecurring basis
|
$ | 24,133 | $ | - | $ | 16,902 | $ | 7,231 | $ | (3,565 | ) |
At December 31, 2012
|
||||||||||||||||||||
Fair Value
|
Level 1
|
Level 2
|
Level 3
|
Total Losses
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Non-covered other real estate owned
|
$ | 6,618 | $ | - | $ | 6,618 | $ | - | $ | (1,360 | ) | |||||||||
Covered other real estate owned
|
7,929 | - | 7,929 | - | (371 | ) | ||||||||||||||
Originated impaired loans
|
5,197 | - | 3,097 | 2,100 | (3,158 | ) | ||||||||||||||
Purchased covered impaired loans
|
6,684 | - | 2,224 | 4,460 | (83 | ) | ||||||||||||||
Total assets measured at fair value on a nonrecurring basis
|
$ | 26,428 | $ | - | $ | 19,868 | $ | 6,560 | $ | (4,972 | ) |
At June 30, 2013
|
||||||||||||||||||||
Carrying
Amount
|
Estimated Fair
Value
|
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2 )
|
Significant
Unobservable
Inputs
(Level 3 )
|
||||||||||||||||
Financial Assets:
|
(In thousands)
|
|||||||||||||||||||
Cash and due from banks
|
$ | 384,276 | $ | 384,276 | $ | 384,276 | $ | - | $ | - | ||||||||||
Investment securities held to maturity
|
1,134,615 | 1,124,946 | 2,266 | 1,122,680 | - | |||||||||||||||
Loans
|
1,908,415 | 1,922,777 | - | - | 1,922,777 | |||||||||||||||
Other assets - FDIC indemnification receivable
|
8,758 | 8,756 | - | - | 8,756 | |||||||||||||||
Financial Liabilities:
|
||||||||||||||||||||
Deposits
|
$ | 4,101,394 | $ | 4,100,948 | $ | - | $ | 3,509,113 | $ | 591,835 | ||||||||||
Short-term borrowed funds
|
66,640 | 66,640 | - | 66,640 | - | |||||||||||||||
Federal Home Loan Bank advances
|
25,687 | 25,834 | 25,834 | - | - | |||||||||||||||
Term repurchase agreement
|
10,000 | 10,096 | - | 10,096 | - | |||||||||||||||
Debt financing
|
15,000 | 15,201 | - | 15,201 | - |
At December 31, 2012
|
||||||||||||||||||||
Carrying
Amount
|
Estimated Fair
Value
|
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2 )
|
Significant
Unobservable
Inputs
(Level 3 )
|
||||||||||||||||
Financial Assets:
|
(In thousands)
|
|||||||||||||||||||
Cash and due from banks
|
$ | 491,382 | $ | 491,382 | $ | 491,382 | $ | - | $ | - | ||||||||||
Investment securities held to maturity
|
1,156,041 | 1,184,557 | 3,275 | 1,181,282 | - | |||||||||||||||
Loans
|
2,081,123 | 2,090,712 | - | - | 2,090,712 | |||||||||||||||
Other assets - FDIC indemnification receivable
|
13,847 | 13,834 | - | - | 13,834 | |||||||||||||||
Financial Liabilities:
|
||||||||||||||||||||
Deposits
|
$ | 4,232,492 | $ | 4,232,239 | $ | - | $ | 3,589,921 | $ | 642,318 | ||||||||||
Short-term borrowed funds
|
53,687 | 53,687 | - | 53,687 | - | |||||||||||||||
Federal Home Loan Bank advances
|
25,799 | 26,150 | 26,150 | - | - | |||||||||||||||
Term repurchase agreement
|
10,000 | 10,135 | - | 10,135 | - | |||||||||||||||
Debt financing
|
15,000 | 15,645 | - | 15,645 | - |
For the Three Months
|
For the Six Months
|
|||||||||||||||
Ended June 30,
|
||||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
(In thousands, except per share data)
|
||||||||||||||||
Net income applicable to common equity (numerator)
|
$ | 17,112 | $ | 20,964 | $ | 34,383 | $ | 41,969 | ||||||||
Basic earnings per common share
|
||||||||||||||||
Weighted average number of common shares outstanding - basic (denominator)
|
26,890 | 27,744 | 27,017 | 27,897 | ||||||||||||
Basic earnings per common share
|
$ | 0.64 | $ | 0.76 | $ | 1.27 | $ | 1.50 | ||||||||
Diluted earnings per common share
|
||||||||||||||||
Weighted average number of common shares outstanding - basic
|
26,890 | 27,744 | 27,017 | 27,897 | ||||||||||||
Add exercise of options reduced by the number of shares that could have been purchased with the proceeds of such exercise
|
8 | 46 | 10 | 54 | ||||||||||||
Weighted average number of common shares outstanding - diluted (denominator)
|
26,898 | 27,790 | 27,027 | 27,951 | ||||||||||||
Diluted earnings per common share
|
$ | 0.64 | $ | 0.75 | $ | 1.27 | $ | 1.50 |
For the Three Months
|
For the Six Months
|
|||||||||||||||
Ended June 30,
|
||||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
(In thousands, except per share data)
|
||||||||||||||||
Net Interest and Fee Income (FTE)1
|
$ | 42,628 | $ | 50,333 | $ | 86,463 | $ | 102,032 | ||||||||
Provision for Loan Losses
|
1,800 | 2,800 | 4,600 | 5,600 | ||||||||||||
Noninterest Income
|
||||||||||||||||
Loss on Sale of Securities
|
- | (1,287 | ) | - | (1,287 | ) | ||||||||||
Other
|
14,284 | 14,820 | 28,562 | 29,489 | ||||||||||||
Total Noninterest Income
|
14,284 | 13,533 | 28,562 | 28,202 | ||||||||||||
Noninterest Expense
|
28,192 | 29,349 | 56,869 | 59,383 | ||||||||||||
Income Before Income Taxes (FTE)1
|
26,920 | 31,717 | 53,556 | 65,251 | ||||||||||||
Income Tax Provision (FTE)1
|
9,808 | 10,753 | 19,173 | 23,282 | ||||||||||||
Net Income
|
$ | 17,112 | $ | 20,964 | $ | 34,383 | $ | 41,969 | ||||||||
Average Common Shares Outstanding
|
26,890 | 27,744 | 27,017 | 27,897 | ||||||||||||
Diluted Average Common Shares Outstanding
|
26,898 | 27,790 | 27,027 | 27,951 | ||||||||||||
Common Shares Outstanding at Period End
|
26,769 | 27,621 | 26,769 | 27,621 | ||||||||||||
Per Common Share:
|
||||||||||||||||
Basic Earnings
|
$ | 0.64 | $ | 0.76 | $ | 1.27 | $ | 1.50 | ||||||||
Diluted Earnings
|
0.64 | 0.75 | 1.27 | 1.50 | ||||||||||||
Book Value Per Common Share
|
$ | 20.34 | $ | 20.20 | ||||||||||||
Financial Ratios:
|
||||||||||||||||
Return on Assets
|
1.42 | % | 1.69 | % | 1.42 | % | 1.69 | % | ||||||||
Return on Common Equity
|
12.74 | % | 15.55 | % | 12.84 | % | 15.50 | % | ||||||||
Net Interest Margin (FTE)1
|
4.12 | % | 4.89 | % | 4.19 | % | 5.00 | % | ||||||||
Net Loan Losses to Average Loans:
|
||||||||||||||||
Originated Loans
|
0.15 | % | 0.65 | % | 0.37 | % | 0.67 | % | ||||||||
Purchased Covered Loans
|
0.59 | % | 0.19 | % | 0.49 | % | 0.23 | % | ||||||||
Purchased Non-covered Loans
|
0.71 | % | 0.09 | % | 0.34 | % | 0.04 | % | ||||||||
Efficiency Ratio2
|
49.5 | % | 46.0 | % | 49.4 | % | 45.6 | % | ||||||||
Average Balances:
|
||||||||||||||||
Assets
|
$ | 4,840,319 | $ | 4,974,619 | $ | 4,874,212 | $ | 5,002,777 | ||||||||
Earning Assets
|
4,147,096 | 4,127,699 | 4,141,510 | 4,093,985 | ||||||||||||
Originated Loans
|
1,586,435 | 1,789,221 | 1,613,769 | 1,812,296 | ||||||||||||
Purchased Covered Loans
|
341,896 | 478,965 | 352,802 | 495,965 | ||||||||||||
Purchased Non-covered Loans
|
66,030 | 107,483 | 69,373 | 113,493 | ||||||||||||
Deposits
|
4,132,509 | 4,227,752 | 4,165,685 | 4,240,758 | ||||||||||||
Shareholders' Equity
|
538,529 | 542,192 | 540,192 | 544,434 | ||||||||||||
Period End Balances:
|
||||||||||||||||
Assets
|
$ | 4,813,908 | $ | 4,953,130 | ||||||||||||
Earning Assets
|
4,078,844 | 4,232,582 | ||||||||||||||
Originated Loans
|
1,553,303 | 1,751,578 | ||||||||||||||
Purchased Covered Loans
|
324,976 | 463,251 | ||||||||||||||
Purchased Non-covered Loans
|
61,062 | 102,390 | ||||||||||||||
Deposits
|
4,101,394 | 4,208,499 | ||||||||||||||
Shareholders' Equity
|
544,622 | 557,926 | ||||||||||||||
Capital Ratios at Period End:
|
||||||||||||||||
Total Risk Based Capital
|
15.98 | % | 15.74 | % | ||||||||||||
Tangible Equity to Tangible Assets
|
8.61 | % | 8.54 | % | ||||||||||||
Dividends Paid Per Common Share
|
$ | 0.37 | $ | 0.37 | $ | 0.74 | $ | 0.74 | ||||||||
Common Dividend Payout Ratio
|
58 | % | 49 | % | 58 | % | 49 | % |
For the Three Months
|
For the Six Months
|
|||||||||||||||
Ended June 30,
|
||||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
(In thousands, except per share data)
|
||||||||||||||||
Net interest income (FTE)
|
$ | 42,628 | $ | 50,333 | $ | 86,463 | $ | 102,032 | ||||||||
Provision for loan losses
|
(1,800 | ) | (2,800 | ) | (4,600 | ) | (5,600 | ) | ||||||||
Noninterest income
|
14,284 | 13,533 | 28,562 | 28,202 | ||||||||||||
Noninterest expense
|
(28,192 | ) | (29,349 | ) | (56,869 | ) | (59,383 | ) | ||||||||
Income before taxes (FTE)
|
26,920 | 31,717 | 53,556 | 65,251 | ||||||||||||
Income tax provision (FTE)
|
(9,808 | ) | (10,753 | ) | (19,173 | ) | (23,282 | ) | ||||||||
Net income
|
$ | 17,112 | $ | 20,964 | $ | 34,383 | $ | 41,969 | ||||||||
Average diluted common shares
|
26,898 | 27,790 | 27,027 | 27,951 | ||||||||||||
Diluted earnings per common share
|
$ | 0.64 | $ | 0.75 | $ | 1.27 | $ | 1.50 | ||||||||
Average total assets
|
$ | 4,840,319 | $ | 4,974,619 | $ | 4,874,212 | $ | 5,002,777 | ||||||||
Net income to average total assets (annualized)
|
1.42 | % | 1.69 | % | 1.42 | % | 1.69 | % | ||||||||
Net income to average common stockholders' equity (annualized)
|
12.74 | % | 15.55 | % | 12.84 | % | 15.50 | % |
For the Three Months
|
For the Six Months
|
|||||||||||||||
Ended June 30,
|
||||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Interest and fee income
|
$ | 39,269 | $ | 46,901 | $ | 79,734 | $ | 95,199 | ||||||||
Interest expense
|
(1,219 | ) | (1,472 | ) | (2,471 | ) | (3,031 | ) | ||||||||
FTE adjustment
|
4,578 | 4,904 | 9,200 | 9,864 | ||||||||||||
Net interest income (FTE)
|
$ | 42,628 | $ | 50,333 | $ | 86,463 | $ | 102,032 | ||||||||
Average earning assets
|
$ | 4,147,096 | $ | 4,127,699 | $ | 4,141,510 | $ | 4,093,985 | ||||||||
Net interest margin (FTE) (annualized)
|
4.12 | % | 4.89 | % | 4.19 | % | 5.00 | % |
For the Three Months
|
For the Six Months
|
|||||||||||||||
Ended June 30,
|
||||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
Yield on earning assets (FTE)
|
4.24 | % | 5.04 | % | 4.31 | % | 5.15 | % | ||||||||
Rate paid on interest-bearing liabilities
|
0.19 | % | 0.21 | % | 0.19 | % | 0.22 | % | ||||||||
Net interest spread (FTE)
|
4.05 | % | 4.83 | % | 4.12 | % | 4.93 | % | ||||||||
Impact of noninterest bearing demand deposits
|
0.07 | % | 0.06 | % | 0.07 | % | 0.07 | % | ||||||||
Net interest margin (FTE)
|
4.12 | % | 4.89 | % | 4.19 | % | 5.00 | % |
For the Three Months Ended
|
||||||||||||
June 30, 2013
|
||||||||||||
Interest
|
||||||||||||
Average
|
Income/
|
Yields/
|
||||||||||
Balance
|
Expense
|
Rates
|
||||||||||
(In thousands)
|
||||||||||||
Assets
|
||||||||||||
Investment securities:
|
||||||||||||
Available for sale
|
||||||||||||
Taxable
|
$ | 812,920 | $ | 3,715 | 1.83 | % | ||||||
Tax-exempt (1)
|
188,231 | 2,632 | 5.59 | % | ||||||||
Held to maturity
|
||||||||||||
Taxable
|
441,285 | 1,875 | 1.70 | % | ||||||||
Tax-exempt (1)
|
710,299 | 8,880 | 5.00 | % | ||||||||
Loans:
|
||||||||||||
Commercial:
|
||||||||||||
Taxable
|
257,516 | 3,834 | 5.97 | % | ||||||||
Tax-exempt (1)
|
109,410 | 1,620 | 5.94 | % | ||||||||
Commercial real estate
|
881,108 | 13,725 | 6.25 | % | ||||||||
Real estate construction
|
15,706 | 340 | 8.68 | % | ||||||||
Real estate residential
|
218,926 | 1,915 | 3.50 | % | ||||||||
Consumer
|
511,695 | 5,311 | 4.16 | % | ||||||||
Total loans (1)
|
1,994,361 | 26,745 | 5.38 | % | ||||||||
Total Interest-earning assets (1)
|
4,147,096 | $ | 43,847 | 4.24 | % | |||||||
Other assets
|
693,223 | |||||||||||
Total assets
|
$ | 4,840,319 | ||||||||||
Liabilities and shareholders' equity
|
||||||||||||
Deposits:
|
||||||||||||
Noninterest-bearing demand
|
$ | 1,630,326 | $ | - | - | % | ||||||
Savings and interest-bearing transaction
|
1,901,341 | 292 | 0.06 | % | ||||||||
Time less than $100,000
|
231,567 | 272 | 0.47 | % | ||||||||
Time $100,000 or more
|
369,275 | 283 | 0.31 | % | ||||||||
Total interest-bearing deposits
|
2,502,183 | 847 | 0.14 | % | ||||||||
Short-term borrowed funds
|
61,076 | 26 | 0.17 | % | ||||||||
Term repurchase agreement
|
10,000 | 25 | 0.99 | % | ||||||||
Federal Home Loan Bank advances
|
25,719 | 120 | 1.87 | % | ||||||||
Debt financing
|
15,000 | 201 | 5.35 | % | ||||||||
Total interest-bearing liabilities
|
2,613,978 | $ | 1,219 | 0.19 | % | |||||||
Other liabilities
|
57,486 | |||||||||||
Shareholders' equity
|
538,529 | |||||||||||
Total liabilities and shareholders' equity
|
$ | 4,840,319 | ||||||||||
Net interest spread (1) (2)
|
4.05 | % | ||||||||||
Net interest and fee income and interest margin (1) (3)
|
$ | 42,628 | 4.12 | % |
(1)
|
Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate.
|
(2)
|
Net interest spread represents the average yield earned on interest-earning assets less the average rate incurred on interest-bearing liabilities.
|
(3)
|
Net interest margin is computed by calculating the difference between interest income and expense (annualized), divided by the average balance of interest-earning assets.
|
For the Three Months Ended
|
||||||||||||
June 30, 2012
|
||||||||||||
Yields
|
||||||||||||
Interest
|
Earned/
|
|||||||||||
Average
|
Income/
|
Rates
|
||||||||||
Balance
|
Expense
|
Paid
|
||||||||||
(In thousands)
|
||||||||||||
Assets
|
||||||||||||
Investment securities:
|
||||||||||||
Available for sale
|
||||||||||||
Taxable
|
$ | 449,977 | $ | 2,774 | 2.47 | % | ||||||
Tax-exempt (1)
|
220,724 | 3,254 | 5.90 | % | ||||||||
Held to maturity
|
||||||||||||
Taxable
|
451,988 | 2,574 | 2.28 | % | ||||||||
Tax-exempt (1)
|
629,341 | 8,731 | 5.55 | % | ||||||||
Loans:
|
||||||||||||
Commercial:
|
||||||||||||
Taxable
|
330,485 | 5,490 | 6.68 | % | ||||||||
Tax-exempt (1)
|
133,591 | 2,085 | 6.28 | % | ||||||||
Commercial real estate
|
1,046,878 | 17,531 | 6.74 | % | ||||||||
Real estate construction
|
28,627 | 300 | 4.21 | % | ||||||||
Real estate residential
|
271,196 | 2,496 | 3.68 | % | ||||||||
Consumer
|
564,892 | 6,570 | 4.68 | % | ||||||||
Total loans (1)
|
2,375,669 | 34,472 | 5.84 | % | ||||||||
Total interest-earning assets (1)
|
4,127,699 | $ | 51,805 | 5.04 | % | |||||||
Other assets
|
846,920 | |||||||||||
Total assets
|
$ | 4,974,619 | ||||||||||
Liabilities and shareholders' equity
|
||||||||||||
Deposits:
|
||||||||||||
Noninterest bearing demand
|
$ | 1,579,359 | $ | - | - | % | ||||||
Savings and interest-bearing transaction
|
1,876,734 | 308 | 0.07 | % | ||||||||
Time less than $100,000
|
270,549 | 385 | 0.57 | % | ||||||||
Time $100,000 or more
|
501,110 | 414 | 0.33 | % | ||||||||
Total interest-bearing deposits
|
2,648,393 | 1,107 | 0.17 | % | ||||||||
Short-term borrowed funds
|
93,568 | 21 | 0.09 | % | ||||||||
Term repurchase agreement
|
10,000 | 24 | 0.97 | % | ||||||||
Federal Home Loan Bank advances
|
25,944 | 119 | 1.86 | % | ||||||||
Debt financing
|
15,000 | 201 | 5.35 | % | ||||||||
Total interest-bearing liabilities
|
2,792,905 | $ | 1,472 | 0.21 | % | |||||||
Other liabilities
|
60,163 | |||||||||||
Shareholders' equity
|
542,192 | |||||||||||
Total liabilities and shareholders' equity
|
$ | 4,974,619 | ||||||||||
Net interest spread (1) (2)
|
4.83 | % | ||||||||||
Net interest income and interest margin (1) (3)
|
$ | 50,333 | 4.89 | % |
(1)
|
Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate.
|
(2)
|
Net interest spread represents the average yield earned on interest-earning assets less the average rate incurred on interest-bearing liabilities.
|
(3)
|
Net interest margin is computed by calculating the difference between interest income and expense (annualized), divided by the average balance of interest-earning assets.
|
For the Six Months Ended
|
||||||||||||
June 30, 2013
|
||||||||||||
Interest
|
||||||||||||
Average
|
Income/
|
Yields/
|
||||||||||
Balance
|
Expense
|
Rates
|
||||||||||
(In thousands)
|
||||||||||||
Assets
|
||||||||||||
Investment securities:
|
||||||||||||
Available for sale
|
||||||||||||
Taxable
|
$ | 761,994 | $ | 7,158 | 1.88 | % | ||||||
Tax-exempt (1)
|
190,170 | 5,845 | 6.15 | % | ||||||||
Held to maturity
|
||||||||||||
Taxable
|
457,052 | 3,967 | 1.74 | % | ||||||||
Tax-exempt (1)
|
696,350 | 17,230 | 4.95 | % | ||||||||
Loans:
|
||||||||||||
Commercial:
|
||||||||||||
Taxable
|
265,961 | 8,110 | 6.15 | % | ||||||||
Tax-exempt (1)
|
111,750 | 3,312 | 5.98 | % | ||||||||
Commercial real estate
|
892,908 | 27,853 | 6.29 | % | ||||||||
Real estate construction
|
15,990 | 625 | 7.88 | % | ||||||||
Real estate residential
|
225,412 | 3,975 | 3.53 | % | ||||||||
Consumer
|
523,923 | 10,859 | 4.18 | % | ||||||||
Total loans (1)
|
2,035,944 | 54,734 | 5.42 | % | ||||||||
Total Interest-earning assets (1)
|
4,141,510 | $ | 88,934 | 4.31 | % | |||||||
Other assets
|
732,702 | |||||||||||
Total assets
|
$ | 4,874,212 | ||||||||||
Liabilities and shareholders' equity
|
||||||||||||
Deposits:
|
||||||||||||
Noninterest-bearing demand
|
$ | 1,636,801 | $ | - | - | % | ||||||
Savings and interest-bearing transaction
|
1,913,236 | 588 | 0.06 | % | ||||||||
Time less than $100,000
|
235,810 | 571 | 0.49 | % | ||||||||
Time $100,000 or more
|
379,838 | 587 | 0.31 | % | ||||||||
Total interest-bearing deposits
|
2,528,884 | 1,746 | 0.14 | % | ||||||||
Short-term borrowed funds
|
59,414 | 37 | 0.13 | % | ||||||||
Term repurchase agreement
|
10,000 | 49 | 0.99 | % | ||||||||
Federal Home Loan Bank advances
|
25,748 | 238 | 1.87 | % | ||||||||
Debt financing
|
15,000 | 401 | 5.35 | % | ||||||||
Total interest-bearing liabilities
|
2,639,046 | $ | 2,471 | 0.19 | % | |||||||
Other liabilities
|
58,173 | |||||||||||
Shareholders' equity
|
540,192 | |||||||||||
Total liabilities and shareholders' equity
|
$ | 4,874,212 | ||||||||||
Net interest spread (1) (2)
|
4.12 | % | ||||||||||
Net interest and fee income and interest margin (1) (3)
|
$ | 86,463 | 4.19 | % |
(1)
|
Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate.
|
(2)
|
Net interest spread represents the average yield earned on interest-earning assets less the average rate incurred on interest-bearing liabilities.
|
(3)
|
Net interest margin is computed by calculating the difference between interest income and expense (annualized), divided by the average balance of interest-earning assets.
|
For the Six Months Ended
|
||||||||||||
June 30, 2012
|
||||||||||||
Yields
|
||||||||||||
Interest
|
Earned/
|
|||||||||||
Average
|
Income/
|
Rates
|
||||||||||
Balance
|
Expense
|
Paid
|
||||||||||
(In thousands)
|
||||||||||||
Assets
|
||||||||||||
Investment securities:
|
||||||||||||
Available for sale
|
||||||||||||
Taxable
|
$ | 430,935 | $ | 5,338 | 2.48 | % | ||||||
Tax-exempt (1)
|
223,032 | 6,613 | 5.93 | % | ||||||||
Held to maturity
|
||||||||||||
Taxable
|
396,547 | 4,700 | 2.37 | % | ||||||||
Tax-exempt (1)
|
621,717 | 17,568 | 5.65 | % | ||||||||
Loans:
|
||||||||||||
Commercial:
|
||||||||||||
Taxable
|
341,280 | 11,273 | 6.64 | % | ||||||||
Tax-exempt (1)
|
135,669 | 4,139 | 6.14 | % | ||||||||
Commercial real estate
|
1,068,951 | 35,780 | 6.73 | % | ||||||||
Real estate construction
|
30,947 | 852 | 5.54 | % | ||||||||
Real estate residential
|
277,167 | 5,099 | 3.68 | % | ||||||||
Consumer
|
567,740 | 13,701 | 4.85 | % | ||||||||
Total loans (1)
|
2,421,754 | 70,844 | 5.88 | % | ||||||||
Total interest-earning assets (1)
|
4,093,985 | $ | 105,063 | 5.15 | % | |||||||
Other assets
|
908,792 | |||||||||||
Total assets
|
$ | 5,002,777 | ||||||||||
Liabilities and shareholders' equity
|
||||||||||||
Deposits:
|
||||||||||||
Noninterest bearing demand
|
$ | 1,577,708 | $ | - | - | % | ||||||
Savings and interest-bearing transaction
|
1,880,640 | 634 | 0.07 | % | ||||||||
Time less than $100,000
|
275,642 | 824 | 0.60 | % | ||||||||
Time $100,000 or more
|
506,768 | 836 | 0.33 | % | ||||||||
Total interest-bearing deposits
|
2,663,050 | 2,294 | 0.17 | % | ||||||||
Short-term borrowed funds
|
104,237 | 48 | 0.09 | % | ||||||||
Term repurchase agreement
|
10,000 | 49 | 0.98 | % | ||||||||
Federal Home Loan Bank advances
|
25,972 | 239 | 1.85 | % | ||||||||
Debt financing
|
15,000 | 401 | 5.35 | % | ||||||||
Total interest-bearing liabilities
|
2,818,259 | $ | 3,031 | 0.22 | % | |||||||
Other liabilities
|
62,376 | |||||||||||
Shareholders' equity
|
544,434 | |||||||||||
Total liabilities and shareholders' equity
|
$ | 5,002,777 | ||||||||||
Net interest spread (1) (2)
|
4.93 | % | ||||||||||
Net interest income and interest margin (1) (3)
|
$ | 102,032 | 5.00 | % |
(1)
|
Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate.
|
(2)
|
Net interest spread represents the average yield earned on interest-earning assets less the average rate incurred on interest-bearing liabilities.
|
(3)
|
Net interest margin is computed by calculating the difference between interest income and expense (annualized), divided by the average balance of interest-earning assets.
|
Three Months Ended June 30, 2013
|
||||||||||||
Compared with
|
||||||||||||
Three Months Ended June 30, 2012
|
||||||||||||
Volume
|
Yield/Rate
|
Total
|
||||||||||
(In thousands)
|
||||||||||||
Increase (decrease) in interest and fee income:
|
||||||||||||
Investment securities:
|
||||||||||||
Available for sale
|
||||||||||||
Taxable
|
$ | 1,796 | $ | (855 | ) | $ | 941 | |||||
Tax-exempt (1)
|
(463 | ) | (159 | ) | (622 | ) | ||||||
Held to maturity
|
||||||||||||
Taxable
|
(59 | ) | (640 | ) | (699 | ) | ||||||
Tax-exempt (1)
|
1,056 | (907 | ) | 149 | ||||||||
Loans:
|
||||||||||||
Commercial:
|
||||||||||||
Taxable
|
(1,117 | ) | (539 | ) | (1,656 | ) | ||||||
Tax-exempt (1)
|
(358 | ) | (107 | ) | (465 | ) | ||||||
Commercial real estate
|
(2,610 | ) | (1,196 | ) | (3,806 | ) | ||||||
Real estate construction
|
(178 | ) | 218 | 40 | ||||||||
Real estate residential
|
(462 | ) | (119 | ) | (581 | ) | ||||||
Consumer
|
(580 | ) | (679 | ) | (1,259 | ) | ||||||
Total loans (1)
|
(5,305 | ) | (2,422 | ) | (7,727 | ) | ||||||
Total decrease in interest and fee income (1)
|
(2,975 | ) | (4,983 | ) | (7,958 | ) | ||||||
Increase (decrease) in interest expense:
|
||||||||||||
Deposits:
|
||||||||||||
Savings and interest-bearing transaction
|
4 | (20 | ) | (16 | ) | |||||||
Time less than $100,000
|
(51 | ) | (62 | ) | (113 | ) | ||||||
Time $100,000 or more
|
(102 | ) | (29 | ) | (131 | ) | ||||||
Total interest-bearing deposits
|
(149 | ) | (111 | ) | (260 | ) | ||||||
Short-term borrowed funds
|
(9 | ) | 14 | 5 | ||||||||
Term repurchase agreement
|
- | 1 | 1 | |||||||||
Federal Home Loan Bank advances
|
(1 | ) | 2 | 1 | ||||||||
Debt financing
|
- | - | - | |||||||||
Total decrease in interest expense
|
(159 | ) | (94 | ) | (253 | ) | ||||||
Decrease in net interest and fee income (1)
|
$ | (2,816 | ) | $ | (4,889 | ) | $ | (7,705 | ) |
(1)
|
Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate.
|
Six Months Ended June 30, 2013
|
||||||||||||
Compared with
|
||||||||||||
Six Months Ended June 30, 2012
|
||||||||||||
Volume
|
Yield/Rate
|
Total
|
||||||||||
(In thousands)
|
||||||||||||
Increase (decrease) in interest and fee income:
|
||||||||||||
Investment securities:
|
||||||||||||
Available for sale
|
||||||||||||
Taxable
|
$ | 3,322 | $ | (1,502 | ) | $ | 1,820 | |||||
Tax-exempt (1)
|
(1,007 | ) | 239 | (768 | ) | |||||||
Held to maturity
|
||||||||||||
Taxable
|
626 | (1,359 | ) | (733 | ) | |||||||
Tax-exempt (1)
|
1,915 | (2,253 | ) | (338 | ) | |||||||
Loans:
|
||||||||||||
Commercial:
|
||||||||||||
Taxable
|
(2,379 | ) | (784 | ) | (3,163 | ) | ||||||
Tax-exempt (1)
|
(724 | ) | (103 | ) | (827 | ) | ||||||
Commercial real estate
|
(5,718 | ) | (2,209 | ) | (7,927 | ) | ||||||
Real estate construction
|
(507 | ) | 280 | (227 | ) | |||||||
Real estate residential
|
(924 | ) | (200 | ) | (1,124 | ) | ||||||
Consumer
|
(1,054 | ) | (1,788 | ) | (2,842 | ) | ||||||
Total loans (1)
|
(11,306 | ) | (4,804 | ) | (16,110 | ) | ||||||
Total decrease in interest and fee income (1)
|
(6,450 | ) | (9,679 | ) | (16,129 | ) | ||||||
Increase (decrease) in interest expense:
|
||||||||||||
Deposits:
|
||||||||||||
Savings and interest-bearing transaction
|
8 | (54 | ) | (46 | ) | |||||||
Time less than $100,000
|
(112 | ) | (141 | ) | (253 | ) | ||||||
Time $100,000 or more
|
(201 | ) | (48 | ) | (249 | ) | ||||||
Total interest-bearing deposits
|
(305 | ) | (243 | ) | (548 | ) | ||||||
Short-term borrowed funds
|
(25 | ) | 14 | (11 | ) | |||||||
Term repurchase agreement
|
- | - | - | |||||||||
Federal Home Loan Bank advances
|
(1 | ) | - | (1 | ) | |||||||
Debt financing
|
(1 | ) | 1 | - | ||||||||
Total decrease in interest expense
|
(332 | ) | (228 | ) | (560 | ) | ||||||
Decrease in net interest and fee income (1)
|
$ | (6,118 | ) | $ | (9,451 | ) | $ | (15,569 | ) |
(1)
|
Amounts calculated on a fully taxable equivalent basis using the current statutory federal tax rate.
|
For the Three Months
|
For the Six Months
|
|||||||||||||||
Ended June 30,
|
||||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Service charges on deposit accounts
|
$ | 6,452 | $ | 7,027 | $ | 12,994 | $ | 14,122 | ||||||||
Merchant processing services
|
2,413 | 2,529 | 4,822 | 4,922 | ||||||||||||
Debit card fees
|
1,478 | 1,345 | 2,836 | 2,508 | ||||||||||||
ATM processing fees
|
721 | 932 | 1,426 | 1,865 | ||||||||||||
Other service fees
|
696 | 697 | 1,458 | 1,393 | ||||||||||||
Trust fees
|
585 | 497 | 1,153 | 986 | ||||||||||||
Financial services commissions
|
284 | 194 | 464 | 365 | ||||||||||||
Check sale income
|
203 | 208 | 386 | 420 | ||||||||||||
Safe deposit rental
|
182 | 193 | 377 | 390 | ||||||||||||
Loss on sale of securities
|
- | (1,287 | ) | - | (1,287 | ) | ||||||||||
Other
|
1,270 | 1,198 | 2,646 | 2,518 | ||||||||||||
Total
|
$ | 14,284 | $ | 13,533 | $ | 28,562 | $ | 28,202 |
For the Three Months
|
For the Six Months
|
|||||||||||||||
Ended June 30,
|
||||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Salaries and related benefits
|
$ | 14,064 | $ | 14,494 | $ | 28,467 | $ | 29,540 | ||||||||
Occupancy
|
3,638 | 3,775 | 7,524 | 7,709 | ||||||||||||
Outsourced data processing services
|
2,140 | 2,078 | 4,297 | 4,161 | ||||||||||||
Amortization of identifiable intangibles
|
1,165 | 1,339 | 2,384 | 2,741 | ||||||||||||
Furniture and equipment
|
1,021 | 1,041 | 1,901 | 1,892 | ||||||||||||
Professional fees
|
745 | 902 | 1,380 | 1,669 | ||||||||||||
Courier service
|
737 | 793 | 1,478 | 1,578 | ||||||||||||
Telephone
|
462 | 418 | 910 | 794 | ||||||||||||
Loan expense
|
414 | 390 | 831 | 1,017 | ||||||||||||
Postage
|
293 | 344 | 593 | 716 | ||||||||||||
Other real estate owned
|
278 | 3 | 612 | 233 | ||||||||||||
Stationery and supplies
|
235 | 247 | 516 | 490 | ||||||||||||
Advertising and public relations
|
170 | 151 | 315 | 303 | ||||||||||||
Operational losses
|
86 | 149 | 214 | 322 | ||||||||||||
Other noninterest expense
|
2,744 | 3,225 | 5,447 | 6,218 | ||||||||||||
Total
|
$ | 28,192 | $ | 29,349 | $ | 56,869 | $ | 59,383 |
·
|
Net interest income on loans funding economic activity within enterprise zones has been a deduction in determining California taxable income.
|
·
|
California tax credits have been realized by hiring employees within enterprise zones; however, the economic value of the tax credits is partially offset by a reduction in deductible compensation expense by the amount of the tax credits.
|
·
|
The Bank maintains a Loan Review Department which reports directly to the Board of Directors. The Loan Review Department performs independent evaluations of loans and assigns credit risk grades to evaluated loans using grading standards employed by bank regulatory agencies. Those loans judged to carry higher risk attributes are referred to as “classified loans.” Classified loans receive elevated management attention to maximize collection.
|
·
|
The Bank maintains two loan administration offices whose sole responsibility is to manage and collect classified loans.
|
Nonperforming Assets
|
||||||||||||
At June 30,
|
At December 31,
|
|||||||||||
2013
|
2012
|
2012
|
||||||||||
(In thousands)
|
||||||||||||
Originated:
|
||||||||||||
Nonperforming nonaccrual loans
|
$ | 7,664 | $ | 15,445 | $ | 10,016 | ||||||
Performing nonaccrual loans
|
1,272 | 1,101 | 1,759 | |||||||||
Total nonaccrual loans
|
8,936 | 16,546 | 11,775 | |||||||||
Accruing loans 90 or more days past due
|
241 | 525 | 455 | |||||||||
Total nonperforming loans
|
9,177 | 17,071 | 12,230 | |||||||||
Other real estate owned
|
5,414 | 10,551 | 9,295 | |||||||||
Total nonperforming assets
|
$ | 14,591 | $ | 27,622 | $ | 21,525 | ||||||
Purchased covered:
|
||||||||||||
Nonperforming nonaccrual loans
|
$ | 14,619 | $ | 8,627 | $ | 11,698 | ||||||
Performing nonaccrual loans
|
2,204 | 1,409 | 1,323 | |||||||||
Total nonaccrual loans
|
16,823 | 10,036 | 13,021 | |||||||||
Accruing loans 90 or more days past due
|
74 | 140 | 155 | |||||||||
Total nonperforming loans
|
16,897 | 10,176 | 13,176 | |||||||||
Other real estate owned
|
10,480 | 14,608 | 13,691 | |||||||||
Total nonperforming assets
|
$ | 27,377 | $ | 24,784 | $ | 26,867 | ||||||
Purchased non-covered:
|
||||||||||||
Nonperforming nonaccrual loans
|
$ | 1,890 | $ | 12,822 | $ | 7,038 | ||||||
Performing nonaccrual loans
|
3,013 | 7,050 | 461 | |||||||||
Total nonaccrual loans
|
4,903 | 19,872 | 7,499 | |||||||||
Accruing loans 90 or more days past due
|
- | - | 4 | |||||||||
Total nonperforming loans
|
4,903 | 19,872 | 7,503 | |||||||||
Other real estate owned
|
3,543 | 7,034 | 3,366 | |||||||||
Total nonperforming assets
|
$ | 8,446 | $ | 26,906 | $ | 10,869 |
Purchased Covered Assets
|
||||||||||||||||
At June 30,
|
At December 31,
|
February 6,
|
||||||||||||||
2013
|
2012
|
2012
|
2009
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Non-residential assets
|
$ | 330,090 | $ | 476,415 | $ | 384,285 | $ | 1,298,526 | ||||||||
Residential assets
|
22,394 | 30,100 | 25,570 | 40,955 | ||||||||||||
Total indemnified assets
|
352,484 | 506,515 | 409,855 | 1,339,481 | ||||||||||||
Credit risk discount
|
(18,514 | ) | (30,366 | ) | (26,128 | ) | (161,203 | ) | ||||||||
Other adjustments
|
1,486 | 1,710 | 2,247 | 5,407 | ||||||||||||
Carrying value of covered assets
|
$ | 335,456 | $ | 477,859 | $ | 385,974 | $ | 1,183,685 | ||||||||
Comprised of:
|
||||||||||||||||
Purchased covered loans
|
$ | 324,976 | $ | 463,251 | $ | 372,283 | $ | 1,174,353 | ||||||||
Covered other real estate owned
|
10,480 | 14,608 | 13,691 | 9,332 | ||||||||||||
Carrying value of covered assets
|
$ | 335,456 | $ | 477,859 | $ | 385,974 | $ | 1,183,685 |
For the Three Months
|
For the Six Months
|
|||||||||||||||
Ended June 30,
|
||||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Analysis of the Allowance for Credit Losses
|
||||||||||||||||
Balance, beginning of period
|
$ | 33,047 | $ | 34,576 | $ | 32,927 | $ | 35,290 | ||||||||
Provision for loan losses
|
1,800 | 2,800 | 4,600 | 5,600 | ||||||||||||
Provision for unfunded commitments
|
- | - | - | - | ||||||||||||
Loans charged off
|
||||||||||||||||
Commercial
|
(148 | ) | (2,696 | ) | (2,050 | ) | (3,558 | ) | ||||||||
Commercial real estate
|
(427 | ) | - | (539 | ) | (948 | ) | |||||||||
Real estate construction
|
- | - | - | - | ||||||||||||
Real estate residential
|
(22 | ) | (62 | ) | (109 | ) | (932 | ) | ||||||||
Consumer
|
(896 | ) | (1,211 | ) | (2,205 | ) | (2,864 | ) | ||||||||
Purchased covered loans
|
(517 | ) | (247 | ) | (876 | ) | (612 | ) | ||||||||
Purchased non-covered loans
|
(116 | ) | (25 | ) | (116 | ) | (25 | ) | ||||||||
Total chargeoffs
|
(2,126 | ) | (4,241 | ) | (5,895 | ) | (8,939 | ) | ||||||||
Recoveries of loans previously charged off
|
||||||||||||||||
Commercial
|
297 | 228 | 759 | 617 | ||||||||||||
Commercial real estate
|
77 | 33 | 98 | 33 | ||||||||||||
Real estate construction
|
- | 196 | - | 198 | ||||||||||||
Real estate residential
|
- | - | - | - | ||||||||||||
Consumer
|
506 | 600 | 1,107 | 1,379 | ||||||||||||
Purchased covered loans
|
18 | 24 | 23 | 38 | ||||||||||||
Total recoveries
|
898 | 1,081 | 1,987 | 2,265 | ||||||||||||
Net loan losses
|
(1,228 | ) | (3,160 | ) | (3,908 | ) | (6,674 | ) | ||||||||
Balance, end of period
|
$ | 33,619 | $ | 34,216 | $ | 33,619 | $ | 34,216 | ||||||||
Components:
|
||||||||||||||||
Allowance for loan losses
|
$ | 30,926 | $ | 31,523 | ||||||||||||
Liability for off-balance sheet credit exposure
|
2,693 | 2,693 | ||||||||||||||
Allowance for credit losses
|
$ | 33,619 | $ | 34,216 | ||||||||||||
Net loan losses:
|
||||||||||||||||
Originated loans
|
$ | (613 | ) | $ | (2,912 | ) | $ | (2,939 | ) | $ | (6,075 | ) | ||||
Purchased covered loans
|
(499 | ) | (223 | ) | (853 | ) | (574 | ) | ||||||||
Purchased non-covered loans
|
(116 | ) | (25 | ) | (116 | ) | (25 | ) | ||||||||
Net loan losses as a percentage of average loans (annualized):
|
||||||||||||||||
Originated loans
|
0.15 | % | 0.65 | % | 0.37 | % | 0.67 | % | ||||||||
Purchased covered loans
|
0.59 | % | 0.19 | % | 0.49 | % | 0.23 | % | ||||||||
Purchased non-covered loans
|
0.71 | % | 0.09 | % | 0.34 | % | 0.04 | % |
Allowance for Credit Losses
|
||||||||||||||||||||||||||||||||||||
For the Three Months Ended June 30, 2013
|
||||||||||||||||||||||||||||||||||||
Consumer
|
Purchased
|
Purchased
|
||||||||||||||||||||||||||||||||||
Commercial
|
Residential
|
Installment
|
Non-covered
|
Covered
|
||||||||||||||||||||||||||||||||
Commercial
|
Real Estate
|
Construction
|
Real Estate
|
and Other
|
Loans
|
Loans
|
Unallocated
|
Total
|
||||||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||||||
Balance at beginning of period
|
$ | 5,536 | $ | 10,965 | $ | 480 | $ | 539 | $ | 2,768 | $ | - | $ | 738 | $ | 9,328 | $ | 30,354 | ||||||||||||||||||
Additions:
|
||||||||||||||||||||||||||||||||||||
Provision
|
(1,301 | ) | 660 | (2 | ) | 15 | 225 | 116 | 46 | 2,041 | 1,800 | |||||||||||||||||||||||||
Deductions:
|
||||||||||||||||||||||||||||||||||||
Chargeoffs
|
(148 | ) | (427 | ) | - | (22 | ) | (896 | ) | (116 | ) | (517 | ) | - | (2,126 | ) | ||||||||||||||||||||
Recoveries
|
297 | 77 | - | - | 506 | - | 18 | - | 898 | |||||||||||||||||||||||||||
Net loan recoveries (losses)
|
149 | (350 | ) | - | (22 | ) | (390 | ) | (116 | ) | (499 | ) | - | (1,228 | ) | |||||||||||||||||||||
Balance at end of period
|
4,384 | 11,275 | 478 | 532 | 2,603 | - | 285 | 11,369 | 30,926 | |||||||||||||||||||||||||||
Liability for off-balance sheet credit exposure
|
1,698 | 1 | 127 | - | 473 | - | - | 394 | 2,693 | |||||||||||||||||||||||||||
Total allowance for credit losses
|
$ | 6,082 | $ | 11,276 | $ | 605 | $ | 532 | $ | 3,076 | $ | - | $ | 285 | $ | 11,763 | $ | 33,619 |
Allowance for Credit Losses
|
||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2013
|
||||||||||||||||||||||||||||||||||||
Consumer
|
Purchased
|
Purchased
|
||||||||||||||||||||||||||||||||||
Commercial
|
Residential
|
Installment
|
Non-covered
|
Covered
|
||||||||||||||||||||||||||||||||
Commercial
|
Real Estate
|
Construction
|
Real Estate
|
and Other
|
Loans
|
Loans
|
Unallocated
|
Total
|
||||||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||||||
Balance at beginning of period
|
$ | 6,445 | $ | 10,063 | $ | 484 | $ | 380 | $ | 3,194 | $ | - | $ | 1,005 | $ | 8,663 | $ | 30,234 | ||||||||||||||||||
Additions:
|
||||||||||||||||||||||||||||||||||||
Provision
|
(770 | ) | 1,653 | (6 | ) | 261 | 507 | 116 | 133 | 2,706 | 4,600 | |||||||||||||||||||||||||
Deductions:
|
||||||||||||||||||||||||||||||||||||
Chargeoffs
|
(2,050 | ) | (539 | ) | - | (109 | ) | (2,205 | ) | (116 | ) | (876 | ) | - | (5,895 | ) | ||||||||||||||||||||
Recoveries
|
759 | 98 | - | - | 1,107 | - | 23 | - | 1,987 | |||||||||||||||||||||||||||
Net loan losses
|
(1,291 | ) | (441 | ) | - | (109 | ) | (1,098 | ) | (116 | ) | (853 | ) | - | (3,908 | ) | ||||||||||||||||||||
Balance at end of period
|
4,384 | 11,275 | 478 | 532 | 2,603 | - | 285 | 11,369 | 30,926 | |||||||||||||||||||||||||||
Liability for off-balance sheet credit exposure
|
1,698 | 1 | 127 | - | 473 | - | - | 394 | 2,693 | |||||||||||||||||||||||||||
Total allowance for credit losses
|
$ | 6,082 | $ | 11,276 | $ | 605 | $ | 532 | $ | 3,076 | $ | - | $ | 285 | $ | 11,763 | $ | 33,619 |
Allowance for Credit Losses and
|
||||||||||||||||||||||||||||||||||||
Recorded Investment in Loans Evaluated for Impairment
|
||||||||||||||||||||||||||||||||||||
At June 30, 2013
|
||||||||||||||||||||||||||||||||||||
Commercial
|
Commercial
Real Estate
|
Construction
|
Residential Real
Estate
|
Consumer
Installment and
Other
|
Purchased Non-
covered Loans
|
Purchased
Covered Loans
|
Unallocated
|
Total
|
||||||||||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||||||||||||||
Allowance for credit losses:
|
||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 100 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 147 | $ | - | $ | 247 | ||||||||||||||||||
Collectively evaluated for impairment
|
5,982 | 11,276 | 605 | 532 | 3,076 | - | 138 | 11,763 | 33,372 | |||||||||||||||||||||||||||
Purchased loans with evidence of credit deterioration
|
- | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Total
|
$ | 6,082 | $ | 11,276 | $ | 605 | $ | 532 | $ | 3,076 | $ | - | $ | 285 | $ | 11,763 | $ | 33,619 | ||||||||||||||||||
Carrying value of loans:
|
||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 2,496 | $ | 4,421 | $ | - | $ | - | $ | - | $ | 3,990 | $ | 15,169 | $ | - | $ | 26,076 | ||||||||||||||||||
Collectively evaluated for impairment
|
307,125 | 609,584 | 8,015 | 195,322 | 426,340 | 54,474 | 302,547 | - | 1,903,407 | |||||||||||||||||||||||||||
Purchased loans with evidence of credit deterioration
|
- | - | - | - | - | 2,598 | 7,260 | - | 9,858 | |||||||||||||||||||||||||||
Total
|
$ | 309,621 | $ | 614,005 | $ | 8,015 | $ | 195,322 | $ | 426,340 | $ | 61,062 | $ | 324,976 | $ | - | $ | 1,939,341 |
Minimum
|
Well-capitalized
|
|||||||||||||||||||
At June 30,
|
At December 31,
|
Regulatory
|
by Regulatory
|
|||||||||||||||||
2013
|
2012
|
2012
|
Requirement
|
Definition
|
||||||||||||||||
Tier I Capital
|
14.64 | % | 14.46 | % | 15.06 | % | 4.00 | % | 6.00 | % | ||||||||||
Total Capital
|
15.98 | % | 15.74 | % | 16.33 | % | 8.00 | % | 10.00 | % | ||||||||||
Leverage ratio
|
8.62 | % | 8.43 | % | 8.56 | % | 4.00 | % | 5.00 | % |
Minimum
|
Well-capitalized
|
|||||||||||||||||||
At June 30,
|
At December 31,
|
Regulatory
|
by Regulatory
|
|||||||||||||||||
2013
|
2012
|
2012
|
Requirement
|
Definition
|
||||||||||||||||
Tier I Capital
|
13.47 | % | 13.85 | % | 14.14 | % | 4.00 | % | 6.00 | % | ||||||||||
Total Capital
|
15.04 | % | 15.32 | % | 15.62 | % | 8.00 | % | 10.00 | % | ||||||||||
Leverage ratio
|
7.89 | % | 8.02 | % | 7.99 | % | 4.00 | % | 5.00 | % |
·
|
Introduce a new “Common Equity Tier 1” capital measurement,
|
·
|
Establish higher minimum levels of capital,
|
·
|
Introduce a “capital conservation buffer” and “counter cyclical buffer,” and
|
·
|
Increase the risk-weighting of certain assets, in particular construction loans, loans on nonaccrual status, loans 90 days or more past due, and deferred tax assets.
|
Final Rule
|
Proforma Measurements as of
|
|||||||||||||||||||
Final Rule
|
Minimum
|
June 30, 2013 Assuming Final
|
||||||||||||||||||
Minimum
|
"Well-capitalized"
|
Plus "Capital
|
Rule Fully Phased-in and
|
|||||||||||||||||
Capital
|
Under PCA
|
Conservation
|
Covered Asset Indemnification
|
|||||||||||||||||
Requirement
|
Proposal
|
Buffer"
|
Expired
|
|||||||||||||||||
Company
|
Bank
|
|||||||||||||||||||
Capital Measurement:
|
||||||||||||||||||||
Leverage
|
4.00 | % | 5.00 | % | 4.00 | % | 8.62 | % | 7.89 | % | ||||||||||
Common Equity Tier 1
|
4.50 | % | 6.50 | % | 7.00 | % | 13.36 | % | 12.28 | % | ||||||||||
Tier I Capital
|
6.00 | % | 8.00 | % | 8.50 | % | 13.36 | % | 12.28 | % | ||||||||||
Total Capital
|
8.00 | % | 10.00 | % | 10.50 | % | 14.46 | % | 13.40 | % |
(c)
|
(d)
|
|||||||||||||||
Total Number
|
Maximum Number
|
|||||||||||||||
of Shares
|
of Shares that May
|
|||||||||||||||
(a)
|
(b)
|
Purchased as Part of
|
Yet Be Purchased
|
|||||||||||||
Total Number of
|
Average Price
|
Publicly Announced
|
Under the Plans
|
|||||||||||||
Period
|
Shares Purchased
|
Paid per Share
|
Plans or Programs*
|
or Programs
|
||||||||||||
(In thousands, except per share data)
|
||||||||||||||||
April 1
|
||||||||||||||||
through
|
84 | $ | 43.54 | 84 | 1,057 | |||||||||||
April 30
|
||||||||||||||||
May 1
|
||||||||||||||||
through
|
124 | 44.29 | 124 | 933 | ||||||||||||
May 31
|
||||||||||||||||
June 1
|
||||||||||||||||
through
|
62 | 45.31 | 62 | 871 | ||||||||||||
June 30
|
||||||||||||||||
Total
|
270 | $ | 44.29 | 270 | 871 |
/s/ JOHN "ROBERT" THORSON
|
|
John "Robert" Thorson
Senior Vice President and Chief Financial Officer
(Chief Financial and Accounting Officer)
|
/s/ David L. Payne
|
|
David L. Payne
Chairman, President and Chief Executive Officer
Date: August 1, 2013
|
/s/ John "Robert" Thorson
|
|
John “Robert” Thorson
Senior Vice President and Chief Financial Officer
Date: August 1, 2013
|
/s/ David L. Payne
|
|
David L. Payne
Chairman, President and Chief Executive Officer
Date: August 1, 2013
|
/s/ John "Robert" Thorson
|
|
John “Robert” Thorson
Senior Vice President and Chief Financial Officer
Date: August 1, 2013
|
Note 10 - Commitments and Contingent Liabilities
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Commitments and Contingencies Disclosure [Text Block] | |
Commitments and Contingencies Disclosure [Text Block] |
Note
10: Commitments and Contingent Liabilities
Loan
commitments are agreements to lend to a customer provided
there is no violation of any condition established in the
agreement. Commitments generally have fixed expiration dates
or other termination clauses. Since many of the commitments
are expected to expire without being drawn upon, the total
commitment amounts do not necessarily represent future
funding requirements. Loan commitments are subject to the
Company’s normal credit policies and collateral
requirements. Unfunded loan commitments were $334,136
thousand and $339,651 thousand at June 30, 2013 and December
31, 2012, respectively. Standby letters of credit commit the
Company to make payments on behalf of customers when certain
specified future events occur. Standby letters of credit are
primarily issued to support customers’ short-term
financing requirements and must meet the Company’s
normal credit policies and collateral requirements. Standby
letters of credit outstanding totaled $32,293 thousand and
$32,347 thousand at June 30, 2013 and December 31, 2012,
respectively. The Company also had commitments for commercial
and similar letters of credit of $344 thousand and $344
thousand at June 30, 2013 and December 31, 2012,
respectively.
Due
to the nature of its business, the Company is subject to
various threatened or filed legal cases. Based on the advice
of legal counsel, the Company does not expect such cases will
have a material, adverse effect on its financial position or
results of operations. Legal liabilities are accrued when
obligations become probable and the amount is reasonably
estimable. Legal costs related to covered assets are eighty
percent indemnified under loss-sharing agreements with the
FDIC if certain conditions are met.
|
Note 9 - Fair Value Measurements (Details) (USD $)
In Thousands, unless otherwise specified |
6 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
Mar. 31, 2013
|
Dec. 31, 2012
|
Jun. 30, 2012
|
Mar. 31, 2012
|
Dec. 31, 2011
|
Jun. 30, 2013
Purchased Covered Loans [Member]
|
Mar. 31, 2013
Purchased Covered Loans [Member]
|
Dec. 31, 2012
Purchased Covered Loans [Member]
|
Jun. 30, 2012
Purchased Covered Loans [Member]
|
Mar. 31, 2012
Purchased Covered Loans [Member]
|
Jun. 30, 2013
Purchased Non-Covered Loans [Member]
|
Dec. 31, 2012
Purchased Non-Covered Loans [Member]
|
Jun. 30, 2013
Fair Value, Inputs, Level 2 [Member]
|
|
Note 9 - Fair Value Measurements (Details) [Line Items] | ||||||||||||||
Fair Value Inputs, Discount Rate | 10.00% | |||||||||||||
Loans and Leases Receivable, Allowance | $ 30,926 | $ 30,354 | $ 30,234 | $ 31,523 | $ 31,883 | $ 32,597 | $ 285 | $ 738 | $ 1,005 | $ 240 | $ 139 | |||
Fair Value Discount, Credit Default Risk, Purchased Loans | $ 18,514 | $ 26,128 | $ 3,609 | $ 5,226 |
Consolidated Statements of Income (Unaudited) (USD $)
In Thousands, except Per Share data, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Interest and Fee Income: | ||||
Loans | $ 26,180 | $ 33,745 | $ 53,579 | $ 69,401 |
Investment securities available for sale | 5,532 | 4,938 | 10,868 | 9,726 |
Investment securities held to maturity | 7,557 | 8,218 | 15,287 | 16,072 |
Total Interest and Fee Income | 39,269 | 46,901 | 79,734 | 95,199 |
Interest Expense: | ||||
Deposits | 847 | 1,107 | 1,746 | 2,294 |
Short-term borrowed funds | 26 | 21 | 37 | 48 |
Term repurchase agreement | 25 | 24 | 49 | 49 |
Federal Home Loan Bank advances | 120 | 119 | 238 | 239 |
Debt financing | 201 | 201 | 401 | 401 |
Total Interest Expense | 1,219 | 1,472 | 2,471 | 3,031 |
Net Interest Income | 38,050 | 45,429 | 77,263 | 92,168 |
Provision for Loan Losses | 1,800 | 2,800 | 4,600 | 5,600 |
Net Interest Income After Provision For Loan Losses | 36,250 | 42,629 | 72,663 | 86,568 |
Noninterest Income: | ||||
Service charges on deposit accounts | 6,452 | 7,027 | 12,994 | 14,122 |
Merchant processing services | 2,413 | 2,529 | 4,822 | 4,922 |
Debit card fees | 1,478 | 1,345 | 2,836 | 2,508 |
ATM processing fees | 721 | 932 | 1,426 | 1,865 |
Trust fees | 585 | 497 | 1,153 | 986 |
Financial services commissions | 284 | 194 | 464 | 365 |
Loss on sale of securities | (1,287) | (1,287) | ||
Other | 2,351 | 2,296 | 4,867 | 4,721 |
Total Noninterest Income | 14,284 | 13,533 | 28,562 | 28,202 |
Noninterest Expense: | ||||
Salaries and related benefits | 14,064 | 14,494 | 28,467 | 29,540 |
Occupancy | 3,638 | 3,775 | 7,524 | 7,709 |
Outsourced data processing services | 2,140 | 2,078 | 4,297 | 4,161 |
Amortization of identifiable intangibles | 1,165 | 1,339 | 2,384 | 2,741 |
Furniture and equipment | 1,021 | 1,041 | 1,901 | 1,892 |
Professional fees | 745 | 902 | 1,380 | 1,669 |
Courier service | 737 | 793 | 1,478 | 1,578 |
Other real estate owned | 278 | 3 | 612 | 233 |
Other | 4,404 | 4,924 | 8,826 | 9,860 |
Total Noninterest Expense | 28,192 | 29,349 | 56,869 | 59,383 |
Income Before Income Taxes | 22,342 | 26,813 | 44,356 | 55,387 |
Provision for income taxes | 5,230 | 5,849 | 9,973 | 13,418 |
Net Income | $ 17,112 | $ 20,964 | $ 34,383 | $ 41,969 |
Average Common Shares Outstanding (in Shares) | 26,890 | 27,744 | 27,017 | 27,897 |
Diluted Average Common Shares Outstanding (in Shares) | 26,898 | 27,790 | 27,027 | 27,951 |
Per Common Share Data: | ||||
Basic earnings (in Dollars per share) | $ 0.64 | $ 0.76 | $ 1.27 | $ 1.50 |
Diluted earnings (in Dollars per share) | $ 0.64 | $ 0.75 | $ 1.27 | $ 1.50 |
Dividends paid (in Dollars per share) | $ 0.37 | $ 0.37 | $ 0.74 | $ 0.74 |
Note 3 - Investment Securities
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
|
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Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] |
Note
3: Investment Securities
The
amortized cost, unrealized gains and losses accumulated in
other comprehensive income, and fair value of investment
securities available for sale follows:
(1)
Federal Home Loan Mortgage Corporation
(2)
Federal National Mortgage Association
The
amortized cost, unrealized gains and losses, and fair value
of investment securities held to maturity follows:
The
amortized cost, unrealized gains and losses accumulated in
other comprehensive income, and fair value of investment
securities available for sale follows:
The
amortized cost, unrealized gains and losses, and fair value
of investment securities held to maturity follows:
The
amortized cost and fair value of investment securities by
contractual maturity are shown in the following tables at the
dates indicated:
Expected
maturities of mortgage-backed securities can differ from
contractual maturities because borrowers have the right to
call or prepay obligations with or without call or prepayment
penalties. In addition, such factors as prepayments and
interest rates may affect the yield on the carrying value of
mortgage-backed securities. At June 30, 2013 and December 31,
2012, the Company had no high-risk collateralized mortgage
obligations as defined by regulatory guidelines.
An
analysis of gross unrealized losses of investment securities
available for sale follows:
An
analysis of gross unrealized losses of investment securities
held to maturity follows:
The
unrealized losses on the Company’s investment
securities were caused by market conditions for these types
of investments particularly interest rates which rose between
December 31, 2012 and June 30, 2013, causing bond prices to
decline. The Company evaluates securities on a quarterly
basis including changes in security ratings issued by ratings
agencies, changes in the financial condition of the issuer,
and, for mortgage-related and asset-backed securities,
delinquency and loss information with respect to the
underlying collateral, changes in the levels of subordination
for the Company’s particular position within the
repayment structure, and remaining credit enhancement as
compared to expected credit losses of the security.
Substantially all of these securities continue to be
investment grade rated by one or more major rating agencies.
In addition to monitoring credit rating agency evaluations,
Management performs its own evaluations regarding the credit
worthiness of the issuer or the securitized assets underlying
asset backed securities.
The
Company does not intend to sell any investments and has
concluded that it is more likely than not that it will not be
required to sell the investments prior to recovery of the
amortized cost basis. Therefore, the Company does not
consider these investments to be other-than-temporarily
impaired as of June 30, 2013.
The
fair values of the investment securities could decline in the
future if the general economy deteriorates, credit ratings
decline, the issuer’s financial condition deteriorates,
or the liquidity for securities declines. As a result, other
than temporary impairments may occur in the future.
As
of June 30, 2013, $815,646 thousand of investment securities
were pledged to secure public deposits, short-term borrowed
funds, and term repurchase agreements, compared to $850,421
thousand at December 31, 2012.
An
analysis of gross unrealized losses of investment securities
available for sale follows:
An
analysis of gross unrealized losses of investment securities
held to maturity follows:
During
the second quarter 2012, the Company transferred one
residential collateralized mortgage obligation with a
carrying value of $9,077 thousand from the held to maturity
portfolio to the available for sale portfolio. The
residential collateralized mortgage obligation was
subsequently sold due to a decline in the credit worthiness
from increased losses on subordinate tranches resulting in
proceeds of $7,790 thousand and a realized loss on sale of
$1,287 thousand during the quarter.
The
following table provides information about the amount of
interest income from taxable and non-taxable investment
securities:
|
Note 8 - Deposits and Borrowed Funds (Tables)
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits And Borrowed Funds [Text Block] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits Table [Text Block] |
|
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