001-33063 | 38-2378932 | |
(Commission File Number) | (IRS Employer Identification No.) |
328 South Saginaw Street, Flint, Michigan | 48502 | |
(Address of Principal Executive Offices) | (Zip Code) |
Exhibit 99.1 | Press Release, dated July 28, 2011. |
CITIZENS REPUBLIC BANCORP, INC. |
||||
By: | /s/ Thomas W. Gallagher | |||
Thomas W. Gallagher | ||||
Its: | General Counsel and Secretary | |||
Exhibit No. | Description | |
Exhibit 99.1 | Press Release, dated July 28, 2011. |
| Net income applicable to common shareholders was $18.5 million, or $0.46 per share for the second quarter, which includes a $10 million income tax benefit | ||
| Pre-tax pre-provision profit was $33 million driven by a strong net interest margin of 3.56%, which increased 21 basis points from the second quarter of last year | ||
| Credit trends remain positive |
| Total 30-89 day delinquencies were $57 million, remaining around 1% of total outstanding loans for the 2nd consecutive quarter | ||
| Nonperforming assets decreased for the 7th consecutive quarter to $152 million. New inflows to commercial nonperforming loans were below $25 million for the quarter | ||
| Provision for loan losses was $18 million, declining 80% from the first quarter |
1
Regulatory | Excess Capital | |||||||||||||||||||
Minimum for | June 30, | March 31, | June 30, | over Minimum | ||||||||||||||||
Capital Ratios | Well-Capitalized | 2011 | 2011 | 2010 | (in millions) | |||||||||||||||
Leverage ratio |
5.00 | % | 7.83 | % | 7.39 | % | 8.72 | % | $ | 262.6 | ||||||||||
Tier 1 capital ratio |
6.00 | 12.43 | 11.90 | 12.79 | 376.1 | |||||||||||||||
Total capital ratio |
10.00 | 13.77 | 13.24 | 14.17 | 220.4 | |||||||||||||||
Tier 1 common equity (non-GAAP) |
6.36 | 5.93 | 8.10 | |||||||||||||||||
Tangible equity to tangible assets (non-GAAP) |
7.12 | 6.57 | 8.45 | |||||||||||||||||
Tangible common equity to tangible assets (non-GAAP) |
4.05 | 3.59 | 5.83 |
| Total delinquencies were $56.7 million at the end of the quarter, an increase of $5.5 million over the end of last quarter and a decrease of $55.0 million from the second quarter of last year. The increase over prior quarter resulted from a seasonal increase in consumer delinquencies. The decrease from last year reflects our emphasis on proactively managing and resolving delinquent commercial and consumer loans. | ||
| Nonperforming assets declined to $152.1 million, representing a 19.1% decrease from the end of last quarter and a decrease of $320.5 million or 67.8% from June 30 of last year. This marks the 7th consecutive quarter of declines in nonperforming assets and reflects our asset quality improvement initiatives over that time frame. | ||
| Net charge-offs decreased significantly to $35.4 million compared to $160.6 million in last quarter, which reflected problem asset resolution initiative related charge-offs. Compared to the second quarter of last year, charge-offs are down 50.3% as a result of that initiative and improved credit trends. | ||
| The provision for loan losses was $17.6 million in the second quarter, compared with $88.7 million last quarter and $70.6 million in the second quarter of last year. The decreases were the result of our focused efforts to improve asset quality and stabilized portfolio credit metrics. |
2
| The allowance for loan losses was $206.3 million or 166.8% of nonperforming portfolio loans, compared with $224.1 million or 165.6% at the end of last quarter and $321.8 million or 83.7% as of June 30 of last year. The decreases in the reserve balance reflect improvement in the risk profile of the portfolios and the continuing stability and steady improvement in portfolio and economic trends. The decline from last year was additionally due to lower loan balances as well as lower reserves identified for specific commercial loans. |
3
4
June 30, | March 31, | June 30, | ||||||||||
(in thousands) | 2011 | 2011 | 2010 | |||||||||
Assets |
||||||||||||
Cash and due from banks |
$ | 145,126 | $ | 136,638 | $ | 148,084 | ||||||
Money market investments |
176,847 | 495,562 | 621,071 | |||||||||
Investment Securities: |
||||||||||||
Securities available for sale, at fair value |
1,368,530 | 2,119,416 | 2,071,208 | |||||||||
Securities held to maturity, at amortized cost
(fair value of $1,489,461, $541,646 and $115,832,
respectively) |
1,482,787 | 547,449 | 112,734 | |||||||||
Total investment securities |
2,851,317 | 2,666,865 | 2,183,942 | |||||||||
FHLB and Federal Reserve stock |
125,635 | 143,873 | 157,304 | |||||||||
Portfolio loans: |
||||||||||||
Commercial and industrial |
1,349,803 | 1,353,167 | 1,686,769 | |||||||||
Commercial real estate |
1,722,242 | 1,794,284 | 2,646,241 | |||||||||
Total commercial |
3,072,045 | 3,147,451 | 4,333,010 | |||||||||
Residential mortgage |
708,164 | 727,304 | 858,920 | |||||||||
Direct consumer |
978,319 | 1,006,424 | 1,132,147 | |||||||||
Indirect consumer |
869,109 | 823,019 | 814,038 | |||||||||
Total portfolio loans |
5,627,637 | 5,704,198 | 7,138,115 | |||||||||
Less: Allowance for loan losses |
(206,292 | ) | (224,117 | ) | (321,841 | ) | ||||||
Net portfolio loans |
5,421,345 | 5,480,081 | 6,816,274 | |||||||||
Loans held for sale |
19,515 | 38,121 | 57,245 | |||||||||
Premises and equipment |
100,596 | 102,162 | 107,405 | |||||||||
Goodwill |
318,150 | 318,150 | 318,150 | |||||||||
Other intangible assets |
8,848 | 9,626 | 12,214 | |||||||||
Bank owned life insurance |
218,854 | 218,016 | 217,113 | |||||||||
Other assets |
109,397 | 115,019 | 195,073 | |||||||||
Total assets |
$ | 9,495,630 | $ | 9,724,113 | $ | 10,833,875 | ||||||
Liabilities |
||||||||||||
Noninterest-bearing deposits |
$ | 1,486,970 | $ | 1,413,920 | $ | 1,269,905 | ||||||
Interest-bearing demand deposits |
917,522 | 956,676 | 998,676 | |||||||||
Savings deposits |
2,592,176 | 2,646,851 | 2,526,972 | |||||||||
Time deposits |
2,448,035 | 2,674,058 | 3,426,769 | |||||||||
Total deposits |
7,444,703 | 7,691,505 | 8,222,322 | |||||||||
Federal funds purchased and securities sold
under agreements to repurchase |
43,244 | 40,069 | 30,082 | |||||||||
Other short-term borrowings |
680 | 690 | 700 | |||||||||
Other liabilities |
146,169 | 139,819 | 151,880 | |||||||||
Long-term debt |
881,112 | 906,629 | 1,211,147 | |||||||||
Total liabilities |
8,515,908 | 8,778,712 | 9,616,131 | |||||||||
Shareholders Equity |
||||||||||||
Preferred stock no par value |
281,642 | 279,955 | 275,084 | |||||||||
Common stock no par value |
1,433,094 | 1,432,271 | 1,430,877 | |||||||||
Retained deficit |
(734,091 | ) | (752,547 | ) | (498,621 | ) | ||||||
Accumulated other comprehensive (loss) income |
(923 | ) | (14,278 | ) | 10,404 | |||||||
Total shareholders equity |
979,722 | 945,401 | 1,217,744 | |||||||||
Total liabilities and shareholders equity |
$ | 9,495,630 | $ | 9,724,113 | $ | 10,833,875 | ||||||
5
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
(in thousands, except per share amounts) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Interest Income |
||||||||||||||||
Interest and fees on loans |
$ | 77,677 | $ | 100,980 | $ | 158,388 | $ | 202,722 | ||||||||
Interest and dividends on investment securities: |
||||||||||||||||
Taxable |
20,546 | 18,600 | 40,156 | 36,861 | ||||||||||||
Tax-exempt |
2,713 | 3,932 | 5,799 | 9,217 | ||||||||||||
Dividends on FHLB and Federal Reserve stock |
1,044 | 1,026 | 2,169 | 2,028 | ||||||||||||
Money market investments |
249 | 407 | 502 | 831 | ||||||||||||
Total interest income |
102,229 | 124,945 | 207,014 | 251,659 | ||||||||||||
Interest Expense |
||||||||||||||||
Deposits |
15,042 | 25,910 | 31,417 | 55,421 | ||||||||||||
Short-term borrowings |
19 | 17 | 37 | 41 | ||||||||||||
Long-term debt |
9,562 | 14,432 | 19,340 | 30,422 | ||||||||||||
Total interest expense |
24,623 | 40,359 | 50,794 | 85,884 | ||||||||||||
Net Interest Income |
77,606 | 84,586 | 156,220 | 165,775 | ||||||||||||
Provision for loan losses |
17,596 | 70,614 | 106,320 | 171,969 | ||||||||||||
Net interest income (loss) after provision for loan losses |
60,010 | 13,972 | 49,900 | (6,194 | ) | |||||||||||
Noninterest Income |
||||||||||||||||
Service charges on deposit accounts |
9,753 | 9,971 | 19,182 | 19,655 | ||||||||||||
Trust fees |
3,811 | 3,836 | 7,734 | 7,631 | ||||||||||||
Mortgage and other loan income |
1,883 | 2,198 | 4,825 | 4,787 | ||||||||||||
Brokerage and investment fees |
1,533 | 1,322 | 2,641 | 2,255 | ||||||||||||
ATM network user fees |
1,926 | 1,771 | 3,681 | 3,368 | ||||||||||||
Bankcard fees |
2,468 | 2,266 | 4,706 | 4,273 | ||||||||||||
Net gains (losses) on loans held for sale |
1,179 | (8,405 | ) | 73 | (16,107 | ) | ||||||||||
Investment securities (losses) gains |
(993 | ) | 8,051 | (1,376 | ) | 14,067 | ||||||||||
Other income |
1,765 | 1,272 | 5,002 | 4,746 | ||||||||||||
Total noninterest income |
23,325 | 22,282 | 46,468 | 44,675 | ||||||||||||
Noninterest Expense |
||||||||||||||||
Salaries and employee benefits |
31,265 | 31,403 | 62,283 | 61,350 | ||||||||||||
Occupancy |
6,047 | 6,139 | 13,609 | 13,600 | ||||||||||||
Professional services |
2,407 | 2,615 | 4,626 | 4,868 | ||||||||||||
Equipment |
2,841 | 2,979 | 5,893 | 6,051 | ||||||||||||
Data processing services |
4,247 | 4,767 | 8,599 | 9,396 | ||||||||||||
Advertising and public relations |
1,802 | 2,116 | 2,371 | 3,413 | ||||||||||||
Postage and delivery |
1,120 | 1,295 | 2,236 | 2,309 | ||||||||||||
Other loan expenses |
3,314 | 4,551 | 8,569 | 10,525 | ||||||||||||
Losses on other real estate (ORE) |
1,355 | 3,778 | 10,477 | 10,541 | ||||||||||||
ORE expenses |
1,029 | 800 | 2,797 | 1,990 | ||||||||||||
Intangible asset amortization |
778 | 1,034 | 1,606 | 2,164 | ||||||||||||
Other expense |
13,239 | 15,533 | 28,034 | 28,906 | ||||||||||||
Total noninterest expense |
69,444 | 77,010 | 151,100 | 155,113 | ||||||||||||
Income (Loss) from Continuing Operations Before Income Taxes |
13,891 | (40,756 | ) | (54,732 | ) | (116,632 | ) | |||||||||
Income tax (benefit) provision from continuing operations |
(10,266 | ) | 3,700 | (10,211 | ) | 3,847 | ||||||||||
Income (Loss) from Continuing Operations |
24,157 | (44,456 | ) | (44,521 | ) | (120,479 | ) | |||||||||
Discontinued operations: |
||||||||||||||||
Income (loss) from discontinued operations (net of income tax) |
| 5,151 | | (3,822 | ) | |||||||||||
Net Income (Loss) |
24,157 | (39,305 | ) | (44,521 | ) | (124,301 | ) | |||||||||
Dividend on redeemable preferred stock |
(5,701 | ) | (5,406 | ) | (11,328 | ) | (10,688 | ) | ||||||||
Net Income (Loss) Attributable to Common Shareholders |
$ | 18,456 | $ | (44,711 | ) | $ | (55,849 | ) | $ | (134,989 | ) | |||||
Income (Loss) Per Share from Continuing Operations |
||||||||||||||||
Basic |
$ | 0.46 | $ | (1.27 | ) | $ | (1.42 | ) | $ | (3.33 | ) | |||||
Diluted |
0.46 | (1.27 | ) | (1.42 | ) | (3.33 | ) | |||||||||
Income (Loss) Per Share from Discontinued Operations |
||||||||||||||||
Basic |
$ | | $ | 0.13 | $ | | $ | (0.10 | ) | |||||||
Diluted |
| 0.13 | | (0.10 | ) | |||||||||||
Net Income (Loss) Per Common Share: |
||||||||||||||||
Basic |
$ | 0.46 | $ | (1.14 | ) | $ | (1.42 | ) | $ | (3.43 | ) | |||||
Diluted |
0.46 | (1.14 | ) | (1.42 | ) | (3.43 | ) | |||||||||
Average Common Shares Outstanding: |
||||||||||||||||
Basic |
39,417 | 39,384 | 39,412 | 39,381 | ||||||||||||
Diluted |
39,417 | 39,384 | 39,412 | 39,381 |
6
Three Months Ended | ||||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
2011 | 2011 | 2010 | 2010 | 2010 | ||||||||||||||||
Summary of Operations (in thousands) |
||||||||||||||||||||
Net interest income |
$ | 77,606 | $ | 78,614 | $ | 81,731 | $ | 81,558 | $ | 84,586 | ||||||||||
Provision for loan losses |
17,596 | 88,724 | 131,296 | 89,617 | 70,614 | |||||||||||||||
Noninterest income (1) |
23,325 | 23,143 | 24,028 | 25,956 | 22,282 | |||||||||||||||
Noninterest expense |
69,444 | 81,656 | 77,234 | 74,740 | 77,010 | |||||||||||||||
Income tax (benefit) provision from continuing operations |
(10,266 | ) | 55 | 3,383 | 5,628 | 3,700 | ||||||||||||||
Income (loss) from continuing operations |
24,157 | (68,678 | ) | (106,154 | ) | (62,471 | ) | (44,456 | ) | |||||||||||
Income from discontinued operations (net of tax) |
| | | | 5,151 | |||||||||||||||
Net income (loss) |
24,157 | (68,678 | ) | (106,154 | ) | (62,471 | ) | (39,305 | ) | |||||||||||
Net income (loss) attributable to common shareholders (2) |
18,456 | (74,305 | ) | (111,699 | ) | (67,922 | ) | (44,711 | ) | |||||||||||
Taxable equivalent adjustment, continuing operations |
1,884 | 2,102 | 2,247 | 2,372 | 2,605 | |||||||||||||||
Per Common Share Data(3) |
||||||||||||||||||||
Income (loss) from continuing operations: |
||||||||||||||||||||
Basic |
$ | 0.46 | $ | (1.89 | ) | $ | (2.83 | ) | $ | (1.72 | ) | $ | (1.27 | ) | ||||||
Diluted |
0.46 | (1.89 | ) | (2.83 | ) | (1.72 | ) | (1.27 | ) | |||||||||||
Income per share from discontinued operations: |
||||||||||||||||||||
Basic |
$ | | $ | | $ | | $ | | $ | 0.13 | ||||||||||
Diluted |
| | | | 0.13 | |||||||||||||||
Net income (loss): |
||||||||||||||||||||
Basic |
$ | 0.46 | $ | (1.89 | ) | $ | (2.83 | ) | $ | (1.72 | ) | $ | (1.14 | ) | ||||||
Diluted |
0.46 | (1.89 | ) | (2.83 | ) | (1.72 | ) | (1.14 | ) | |||||||||||
Common book value |
17.34 | 16.73 | 18.47 | 22.17 | 23.75 | |||||||||||||||
Tangible book value (non-GAAP) |
16.22 | 15.53 | 17.20 | 20.84 | 22.35 | |||||||||||||||
Tangible common book value (non-GAAP) |
9.22 | 8.49 | 10.19 | 13.87 | 15.42 | |||||||||||||||
Shares outstanding, end of period (000)(4) |
40,252 | 39,778 | 39,717 | 39,707 | 39,698 | |||||||||||||||
At Period End (millions) |
||||||||||||||||||||
Assets |
$ | 9,496 | $ | 9,724 | $ | 9,966 | $ | 10,639 | $ | 10,834 | ||||||||||
Earning assets |
8,756 | 9,010 | 9,303 | 9,932 | 10,098 | |||||||||||||||
Portfolio loans |
5,628 | 5,704 | 6,217 | 6,888 | 7,138 | |||||||||||||||
Allowance for loan losses |
206 | 224 | 296 | 324 | 322 | |||||||||||||||
Deposits |
7,445 | 7,692 | 7,727 | 8,101 | 8,222 | |||||||||||||||
Long-term debt |
881 | 907 | 1,033 | 1,185 | 1,211 | |||||||||||||||
Shareholders equity |
980 | 945 | 1,012 | 1,157 | 1,218 | |||||||||||||||
Average for the Quarter (millions) |
||||||||||||||||||||
Assets |
$ | 9,665 | $ | 9,899 | $ | 10,468 | $ | 10,803 | $ | 11,156 | ||||||||||
Earning assets |
8,942 | 9,231 | 9,769 | 10,065 | 10,432 | |||||||||||||||
Portfolio loans |
5,669 | 6,051 | 6,682 | 7,059 | 7,318 | |||||||||||||||
Allowance for loan losses |
224 | 295 | 324 | 322 | 322 | |||||||||||||||
Deposits |
7,606 | 7,730 | 7,965 | 8,198 | 8,431 | |||||||||||||||
Long-term debt |
906 | 971 | 1,160 | 1,203 | 1,315 | |||||||||||||||
Shareholders equity |
964 | 1,002 | 1,145 | 1,215 | 1,239 | |||||||||||||||
Financial Ratios (annualized)(5) |
||||||||||||||||||||
Return on average assets |
1.00 | % | (2.81) | % | (4.02) | % | (2.29) | % | (1.60 | )% | ||||||||||
Return on average shareholders equity |
10.05 | (27.79 | ) | (36.78 | ) | (20.40 | ) | (14.40 | ) | |||||||||||
Average shareholders equity / average assets |
9.97 | 10.13 | 10.94 | 11.25 | 11.10 | |||||||||||||||
Net interest margin (FTE) (6) |
3.56 | 3.53 | 3.42 | 3.32 | 3.35 | |||||||||||||||
Efficiency ratio (non-GAAP) (7) |
66.90 | 78.33 | 71.39 | 68.02 | 75.93 | |||||||||||||||
Allowance for loan losses as a percent of portfolio loans |
3.67 | 3.93 | 4.76 | 4.70 | 4.51 | |||||||||||||||
Allowance for loan losses as a percent of nonperforming loans |
166.83 | 165.56 | 134.39 | 88.98 | 83.67 | |||||||||||||||
Allowance for loan losses as a percent of nonperforming assets |
135.65 | 119.18 | 103.30 | 73.10 | 68.11 | |||||||||||||||
Nonperforming loans as a percent of portfolio loans |
2.20 | 2.37 | 3.54 | 5.29 | 5.39 | |||||||||||||||
Nonperforming assets as a percent of portfolio loans plus
ORAA(8) |
2.68 | 3.26 | 4.55 | 6.35 | 6.53 | |||||||||||||||
Nonperforming assets as a percent of total assets |
1.60 | 1.93 | 2.88 | 4.17 | 4.36 | |||||||||||||||
Net loans charged off as a percent of average portfolio loans
(annualized) |
2.51 | 10.77 | 9.46 | 4.91 | 3.90 | |||||||||||||||
Leverage ratio |
7.83 | 7.39 | 7.71 | 8.50 | 8.72 | |||||||||||||||
Tier 1 capital ratio |
12.43 | 11.90 | 12.11 | 12.41 | 12.79 | |||||||||||||||
Total capital ratio |
13.77 | 13.24 | 13.51 | 13.80 | 14.17 |
(1) | Noninterest income includes a loss on investment securities of $1.0 million in the second quarter of 2011 and a gain of $8.0 million in the second quarter of 2010. | |
(2) | Net income (loss) attributable to common shareholders includes a non-cash dividend to preferred shareholders of $5.7 million and $5.6 million in the second and first quarters of 2011 and $5.5 million, $5.4 million and $5.4 million in the fourth, third, and second quarters of 2010. | |
(3) | Per Common Share Data numbers have been adjusted to reflect the 1 for 10 reverse stock split effective 7/1/11. | |
(4) | Includes participating shares, which are restricted stock units and restricted shares. | |
(5) | Financial ratios are based on continuing operations. | |
(6) | Net interest margin is presented on an annual basis, includes taxable equivalent adjustments to interest income and is based on a tax rate of 35%. | |
(7) | The Efficiency Ratio measures how efficiently a bank spends its revenues. The formula is: (Noninterest expense Goodwill impairment)/(Net interest income + taxable equivalent adjustment + Total noninterest income Investment securities (losses) gains). | |
(8) | Other real estate assets acquired (ORAA) include loans held for sale. |
7
Loan Portfolios | June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
(in millions) | 2011 | 2011 | 2010 | 2010 | 2010 | |||||||||||||||
Land hold |
$ | 7.4 | $ | 17.3 | $ | 28.3 | $ | 37.1 | $ | 37.8 | ||||||||||
Land development |
22.5 | 22.7 | 34.8 | 73.8 | 84.3 | |||||||||||||||
Construction |
8.1 | 23.3 | 103.7 | 155.4 | 156.3 | |||||||||||||||
Income producing |
1,019.6 | 1,038.7 | 1,171.0 | 1,382.3 | 1,481.7 | |||||||||||||||
Owner-occupied |
664.6 | 692.3 | 783.0 | 855.1 | 886.1 | |||||||||||||||
Total commercial real estate |
1,722.2 | 1,794.3 | 2,120.8 | 2,503.7 | 2,646.2 | |||||||||||||||
Commercial and industrial |
1,349.8 | 1,353.2 | 1,474.2 | 1,657.4 | 1,686.8 | |||||||||||||||
Total commercial |
3,072.0 | 3,147.5 | 3,595.0 | 4,161.1 | 4,333.0 | |||||||||||||||
Residential mortgage |
708.2 | 727.3 | 756.2 | 800.5 | 858.9 | |||||||||||||||
Direct consumer |
978.3 | 1,006.4 | 1,045.5 | 1,091.7 | 1,132.2 | |||||||||||||||
Indirect consumer |
869.1 | 823.0 | 819.9 | 834.7 | 814.0 | |||||||||||||||
Total consumer |
2,555.6 | 2,556.7 | 2,621.6 | 2,726.9 | 2,805.1 | |||||||||||||||
Total portfolio loans |
$ | 5,627.6 | $ | 5,704.2 | $ | 6,216.6 | $ | 6,888.0 | $ | 7,138.1 | ||||||||||
Delinquency Rates By Loan Portfolio | June 30, 2011 | March 31, 2011 | December 31,2010 | September 30, 2010 | June 30, 2010 | |||||||||||||||||||||||||||||||||||
30 to 89 days past due | % of | % of | % of | % of | % of | |||||||||||||||||||||||||||||||||||
(in millions) | $ | Portfolio | $ | Portfolio | $ | Portfolio | $ | Portfolio | $ | Portfolio | ||||||||||||||||||||||||||||||
Land hold |
$ | 0.6 | 7.69 | % | $ | 0.5 | 2.95 | % | $ | 2.2 | 7.90 | % | $ | | | % | $ | 1.3 | 3.34 | % | ||||||||||||||||||||
Land development |
| | | | 0.2 | 0.62 | 4.5 | 6.04 | 2.0 | 2.43 | ||||||||||||||||||||||||||||||
Construction |
1.7 | 21.2 | | | 0.5 | 0.45 | 2.4 | 1.53 | 6.4 | 4.07 | ||||||||||||||||||||||||||||||
Income producing |
1.6 | 0.16 | 4.8 | 0.46 | 20.7 | 1.76 | 35.2 | 2.55 | 22.9 | 1.55 | ||||||||||||||||||||||||||||||
Owner-occupied |
6.5 | 0.98 | 2.0 | 0.29 | 14.7 | 1.88 | 18.3 | 2.14 | 16.4 | 1.85 | ||||||||||||||||||||||||||||||
Total commercial real estate |
10.4 | 0.60 | 7.3 | 0.41 | 38.3 | 1.80 | 60.4 | 2.41 | 49.0 | 1.85 | ||||||||||||||||||||||||||||||
Commercial and industrial |
3.7 | 0.27 | 6.2 | 0.46 | 9.0 | 0.61 | 23.8 | 1.43 | 10.3 | 0.61 | ||||||||||||||||||||||||||||||
Total commercial |
14.1 | 0.46 | 13.5 | 0.43 | 47.3 | 1.32 | 84.2 | 2.02 | 59.3 | 1.37 | ||||||||||||||||||||||||||||||
Residential mortgage |
11.5 | 1.63 | 10.3 | 1.41 | 15.4 | 2.03 | 14.6 | 1.82 | 20.8 | 2.42 | ||||||||||||||||||||||||||||||
Direct consumer |
20.4 | 2.08 | 17.2 | 1.71 | 22.4 | 2.14 | 20.5 | 1.88 | 20.2 | 1.79 | ||||||||||||||||||||||||||||||
Indirect consumer |
10.7 | 1.23 | 10.2 | 1.24 | 13.3 | 1.62 | 12.2 | 1.46 | 11.4 | 1.40 | ||||||||||||||||||||||||||||||
Total consumer |
42.6 | 1.67 | 37.7 | 1.47 | 51.1 | 1.95 | 47.3 | 1.73 | 52.4 | 1.87 | ||||||||||||||||||||||||||||||
Total delinquent loans |
$ | 56.7 | 1.01 | $ | 51.2 | 0.90 | $ | 98.4 | 1.58 | $ | 131.5 | 1.91 | $ | 111.7 | 1.57 | |||||||||||||||||||||||||
8
Nonperforming Assets | June 30,2011 | March 31, 2011 | December 31, 2010 | September 30, 2010 | June 30, 2010 | |||||||||||||||||||||||||||||||||||
% of | % of | % of | % of | % of | ||||||||||||||||||||||||||||||||||||
(in millions) | $ | Portfolio | $ | Portfolio | $ | Portfolio | $ | Portfolio | $ | Portfolio | ||||||||||||||||||||||||||||||
Land hold |
$ | 0.2 | 2.25 | % | $ | 1.2 | 6.68 | % | $ | 3.2 | 11.50 | % | $ | 5.6 | 15.13 | % | $ | 5.2 | 13.76 | % | ||||||||||||||||||||
Land development |
0.4 | 1.68 | 0.1 | 0.35 | 3.1 | 8.82 | 16.0 | 21.64 | 22.3 | 26.48 | ||||||||||||||||||||||||||||||
Construction |
0.5 | 6.89 | 0.4 | 1.70 | 7.5 | 7.21 | 27.4 | 17.65 | 25.0 | 15.99 | ||||||||||||||||||||||||||||||
Income producing |
20.2 | 1.98 | 28.2 | 2.72 | 62.0 | 5.30 | 147.7 | 10.69 | 148.4 | 10.02 | ||||||||||||||||||||||||||||||
Owner-occupied |
21.2 | 3.18 | 21.7 | 3.14 | 42.8 | 5.47 | 63.3 | 7.40 | 59.5 | 6.71 | ||||||||||||||||||||||||||||||
Total commercial real estate |
42.5 | 2.47 | 51.6 | 2.88 | 118.6 | 5.59 | 260.0 | 10.39 | 260.4 | 9.84 | ||||||||||||||||||||||||||||||
Commercial and industrial |
21.0 | 1.56 | 25.8 | 1.91 | 57.8 | 3.92 | 61.5 | 3.71 | 67.0 | 3.97 | ||||||||||||||||||||||||||||||
Total nonaccruing commercial |
63.5 | 2.07 | 77.4 | 2.46 | 176.4 | 4.91 | 321.5 | 7.73 | 327.4 | 7.56 | ||||||||||||||||||||||||||||||
Residential mortgage |
30.7 | 4.33 | 30.4 | 4.18 | 22.1 | 2.92 | 16.9 | 2.11 | 31.0 | 3.61 | ||||||||||||||||||||||||||||||
Direct consumer |
13.9 | 1.43 | 13.0 | 1.30 | 12.5 | 1.20 | 15.5 | 1.42 | 18.7 | 1.65 | ||||||||||||||||||||||||||||||
Indirect consumer |
1.3 | 0.15 | 1.2 | 0.14 | 1.3 | 0.16 | 1.7 | 0.20 | 1.5 | 0.18 | ||||||||||||||||||||||||||||||
Total nonaccruing consumer |
45.9 | 1.80 | 44.6 | 1.74 | 35.9 | 1.37 | 34.1 | 1.25 | 51.2 | 1.82 | ||||||||||||||||||||||||||||||
Total nonaccruing loans |
109.4 | 1.94 | 122.0 | 2.14 | 212.3 | 3.42 | 355.6 | 5.16 | 378.6 | 5.30 | ||||||||||||||||||||||||||||||
Loans 90+ days still accruing |
1.6 | 0.03 | 0.7 | 0.01 | 1.6 | 0.03 | 1.6 | 0.02 | 1.5 | 0.02 | ||||||||||||||||||||||||||||||
Restructured loans still accruing |
12.7 | 0.23 | 12.7 | 0.22 | 6.4 | 0.10 | 7.0 | 0.10 | 4.6 | 0.06 | ||||||||||||||||||||||||||||||
Total nonperforming portfolio loans |
123.7 | 2.20 | 135.4 | 2.37 | 220.3 | 3.54 | 364.2 | 5.29 | 384.7 | 5.39 | ||||||||||||||||||||||||||||||
Nonperforming held for sale |
11.4 | 30.4 | 24.1 | 38.4 | 44.0 | |||||||||||||||||||||||||||||||||||
Other repossessed assets acquired |
17.0 | 22.2 | 42.2 | 40.7 | 43.9 | |||||||||||||||||||||||||||||||||||
Total nonperforming assets |
$ | 152.1 | $ | 188.0 | $ | 286.6 | $ | 443.3 | $ | 472.6 | ||||||||||||||||||||||||||||||
Commercial inflows |
$ | 24.3 | $ | 29.5 | $ | 110.9 | $ | 95.6 | $ | 75.9 | ||||||||||||||||||||||||||||||
Commercial outflows |
(38.3 | ) | (128.5 | ) | (256.0 | ) | (101.5 | ) | (118.6 | ) | ||||||||||||||||||||||||||||||
Net change |
$ | (14.0 | ) | $ | (99.0 | ) | $ | (145.1 | ) | $ | (5.9 | ) | $ | (42.7 | ) | |||||||||||||||||||||||||
Net Charge-Offs | Three Months Ended | |||||||||||||||||||||||||||||||||||||||
June 30, 2011 | March 31, 2011 | December 31, 2010 | September 30, 2010 | June 30, 2010 | ||||||||||||||||||||||||||||||||||||
% of | % of | % of | % of | % of | ||||||||||||||||||||||||||||||||||||
(in millions) | $ | Portfolio* | $ | Portfolio* | $ | Portfolio* | $ | Portfolio* | $ | Portfolio* | ||||||||||||||||||||||||||||||
Land hold |
$ | 4.7 | N/M | % | $ | 4.9 | N/M | % | $ | 5.2 | 73.54 | % | $ | 0.3 | 3.30 | % | $ | 0.4 | 3.72 | % | ||||||||||||||||||||
Land development |
| | 4.4 | 79.15 | 19.7 | N/M | 9.0 | 48.29 | 9.8 | 46.68 | ||||||||||||||||||||||||||||||
Construction |
| | 5.6 | 97.09 | 10.0 | 38.44 | 0.4 | 1.10 | 8.7 | 22.23 | ||||||||||||||||||||||||||||||
Income producing |
8.2 | 3.24 | 77.6 | 30.30 | 64.2 | 21.74 | 30.8 | 8.85 | 12.6 | 3.41 | ||||||||||||||||||||||||||||||
Owner-occupied |
3.2 | 1.90 | 25.3 | 14.80 | 18.1 | 9.16 | 4.8 | 2.21 | 18.9 | 8.57 | ||||||||||||||||||||||||||||||
Total commercial real estate |
16.1 | 3.76 | 117.8 | 26.63 | 117.2 | 21.92 | 45.3 | 7.18 | 50.4 | 7.63 | ||||||||||||||||||||||||||||||
Commercial and industrial |
7.2 | 2.13 | 32.0 | 9.59 | 26.0 | 7.01 | 6.8 | 1.62 | 11.4 | 2.71 | ||||||||||||||||||||||||||||||
Total commercial |
23.3 | 3.04 | 149.8 | 19.30 | 143.2 | 15.81 | 52.1 | 4.97 | 61.8 | 5.72 | ||||||||||||||||||||||||||||||
Residential mortgage |
4.4 | 2.51 | 3.4 | 1.90 | 6.1 | 3.20 | 23.3 | 11.57 | 0.6 | 0.29 | ||||||||||||||||||||||||||||||
Direct consumer |
5.6 | 2.30 | 5.5 | 2.21 | 7.1 | 2.70 | 9.8 | 3.56 | 5.5 | 1.96 | ||||||||||||||||||||||||||||||
Indirect consumer |
2.1 | 0.96 | 1.9 | 0.95 | 2.9 | 1.39 | 2.2 | 1.05 | 3.3 | 1.61 | ||||||||||||||||||||||||||||||
Total consumer |
12.1 | 1.90 | 10.8 | 1.72 | 16.1 | 2.43 | 35.3 | 5.14 | 9.4 | 1.35 | ||||||||||||||||||||||||||||||
Total net charge-offs |
$ | 35.4 | 2.51 | $ | 160.6 | 10.77 | $ | 159.3 | 9.46 | $ | 87.4 | 4.91 | $ | 71.2 | 3.90 | |||||||||||||||||||||||||
* | Represents an annualized rate. | |
N/M Not Meaningful |
9
June 30, 2011 | March 31, 2011 | June 30, 2010 | ||||||||||||||||||||||
Related | Related | Related | ||||||||||||||||||||||
(in millions) | ALLL | NPL(2) | ALLL | NPL (2) | ALLL | NPL (2) | ||||||||||||||||||
Specific allocated allowance: |
||||||||||||||||||||||||
Commercial and industrial |
$ | 0.2 | $ | 13.4 | $ | 0.7 | $ | 17.0 | $ | 11.0 | $ | 47.6 | ||||||||||||
Commercial real estate |
3.7 | 33.6 | 6.7 | 37.4 | 60.8 | 230.5 | ||||||||||||||||||
Residential mortgage |
2.4 | 12.1 | 2.0 | 10.2 | 1.5 | 7.4 | ||||||||||||||||||
Direct Consumer |
0.2 | 1.7 | 0.2 | 1.7 | | | ||||||||||||||||||
Total specific allocated allowance |
6.5 | 60.8 | 9.6 | 66.3 | 73.3 | 285.5 | ||||||||||||||||||
Risk allocated allowance: |
||||||||||||||||||||||||
Commercial and industrial |
30.4 | 9.7 | 29.4 | 9.9 | 33.9 | 20.9 | ||||||||||||||||||
Commercial real estate (CRE) |
76.9 | 17.4 | 84.7 | 22.7 | 111.7 | 29.9 | ||||||||||||||||||
Total commercial |
107.3 | 27.1 | 114.1 | 32.6 | 145.6 | 50.8 | ||||||||||||||||||
Residential mortgage |
41.5 | 20.0 | 49.9 | 21.6 | 23.4 | 26.4 | ||||||||||||||||||
Direct Consumer |
32.5 | 14.5 | 31.8 | 13.7 | 36.2 | 20.0 | ||||||||||||||||||
Indirect Consumer |
15.5 | 1.3 | 14.9 | 1.2 | 37.3 | 2.0 | ||||||||||||||||||
Total risk allocated allowance |
196.8 | 62.9 | 210.7 | 69.1 | 242.5 | 99.2 | ||||||||||||||||||
Total allocated allowance |
203.3 | 123.7 | 220.3 | 135.4 | 315.8 | 384.7 | ||||||||||||||||||
General valuation allowances |
3.0 | | 3.8 | | 6.0 | | ||||||||||||||||||
Total allowance |
$ | 206.3 | $ | 123.7 | $ | 224.1 | $ | 135.4 | $ | 321.8 | $ | 384.7 | ||||||||||||
(1) | The allocation of the allowance for loan losses in the above table is based upon ranges of estimates and is not intended to imply either limitations on the usage of the allowance or precision of the specific amounts. Citizens does not view the allowance for loan losses as being divisible among the various categories of loans. The entire allowance is available to absorb any future losses without regard to the category or categories in which the charged-off loans are classified. | |
(2) | Related NPL amounts in risk allocated allowances include restructured loans and still accruing and loans 90+ days past due and still accruing but classified as nonperforming. |
10
Three Months Ended | ||||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
(in thousands) | 2011 | 2011 | 2010 | 2010 | 2010 | |||||||||||||||
Allowance for loan losses beginning of period |
$ | 224,117 | $ | 296,031 | $ | 324,046 | $ | 321,841 | $ | 322,377 | ||||||||||
Provision for loan losses |
17,596 | 88,724 | 131,296 | 89,617 | 70,614 | |||||||||||||||
Charge-offs: |
||||||||||||||||||||
Commercial and industrial |
4,016 | 29,712 | 24,634 | 6,083 | 10,943 | |||||||||||||||
Small business |
3,853 | 4,078 | 2,747 | 2,061 | 1,398 | |||||||||||||||
Commercial real estate |
16,371 | 118,721 | 119,986 | 45,910 | 51,183 | |||||||||||||||
Total commercial |
24,240 | 152,511 | 147,367 | 54,054 | 63,524 | |||||||||||||||
Residential mortgage |
4,659 | 3,403 | 6,141 | 23,353 | 705 | |||||||||||||||
Direct consumer |
6,522 | 6,468 | 7,701 | 10,256 | 5,907 | |||||||||||||||
Indirect consumer |
2,639 | 2,472 | 3,647 | 2,808 | 4,028 | |||||||||||||||
Total charge-offs |
38,060 | 164,854 | 164,856 | 90,471 | 74,164 | |||||||||||||||
Recoveries: |
||||||||||||||||||||
Commercial and industrial |
524 | 1,603 | 1,017 | 1,321 | 899 | |||||||||||||||
Small business |
169 | 174 | 309 | 89 | 38 | |||||||||||||||
Commercial real estate |
238 | 913 | 2,813 | 579 | 829 | |||||||||||||||
Total commercial |
931 | 2,690 | 4,139 | 1,989 | 1,766 | |||||||||||||||
Residential mortgage |
228 | 3 | 42 | 15 | 80 | |||||||||||||||
Direct consumer |
917 | 972 | 587 | 452 | 386 | |||||||||||||||
Indirect consumer |
563 | 551 | 777 | 603 | 782 | |||||||||||||||
Total recoveries |
2,639 | 4,216 | 5,545 | 3,059 | 3,014 | |||||||||||||||
Net charge-offs |
35,421 | 160,638 | 159,311 | 87,412 | 71,150 | |||||||||||||||
Allowance for loan losses end of period |
$ | 206,292 | $ | 224,117 | $ | 296,031 | $ | 324,046 | $ | 321,841 | ||||||||||
11
June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
2011 | 2011 | 2010 | 2010 | 2010 | ||||||||||||||||
Efficiency Ratio (non-GAAP) (in thousands) |
||||||||||||||||||||
Net interest income (A)
|
$ | 77,606 | $ | 78,614 | $ | 81,731 | $ | 81,558 | $ | 84,586 | ||||||||||
Taxable equivalent adjustment (B)
|
1,884 | 2,102 | 2,247 | 2,372 | 2,605 | |||||||||||||||
Investment securities (losses) gain (C)
|
(993 | ) | (383 | ) | (171 | ) | | 8,051 | ||||||||||||
Noninterest income (D)
|
23,325 | 23,143 | 24,028 | 25,956 | 22,282 | |||||||||||||||
Noninterest expense (E)
|
69,444 | 81,656 | 77,234 | 74,740 | 77,010 | |||||||||||||||
Efficiency ratio: E/(A+B-C+D) (non-GAAP)
|
66.90 | % | 78.33 | % | 71.39 | % | 68.02 | % | 75.93 | % | ||||||||||
Tangible Common Equity to Tangible Assets (in millions) |
||||||||||||||||||||
Total assets
|
$ | 9,496 | $ | 9,724 | $ | 9,966 | $ | 10,639 | $ | 10,834 | ||||||||||
Goodwill
|
(318 | ) | (318 | ) | (318 | ) | (318 | ) | (318 | ) | ||||||||||
Other intangible assets
|
(9 | ) | (10 | ) | (11 | ) | (11 | ) | (12 | ) | ||||||||||
Tangible assets (non-GAAP)
|
$ | 9,169 | $ | 9,396 | $ | 9,637 | $ | 10,310 | $ | 10,504 | ||||||||||
Total shareholders equity
|
$ | 980 | $ | 945 | $ | 1,012 | $ | 1,157 | $ | 1,218 | ||||||||||
Goodwill
|
(318 | ) | (318 | ) | (318 | ) | (318 | ) | (318 | ) | ||||||||||
Other intangible assets
|
(9 | ) | (10 | ) | (11 | ) | (11 | ) | (12 | ) | ||||||||||
Tangible equity (non-GAAP)
|
$ | 653 | $ | 617 | $ | 683 | $ | 828 | $ | 888 | ||||||||||
Tangible equity
|
$ | 653 | $ | 617 | $ | 683 | $ | 828 | $ | 888 | ||||||||||
Preferred stock
|
(282 | ) | (280 | ) | (278 | ) | (277 | ) | (275 | ) | ||||||||||
Tangible common equity (non-GAAP)
|
$ | 371 | $ | 337 | $ | 405 | $ | 551 | $ | 613 | ||||||||||
Tier 1 Common Equity (non-GAAP) (in millions) |
||||||||||||||||||||
Total shareholders equity
|
$ | 980 | $ | 945 | $ | 1,012 | $ | 1,157 | $ | 1,218 | ||||||||||
Qualifying capital securities
|
74 | 74 | 74 | 74 | 74 | |||||||||||||||
Goodwill
|
(318 | ) | (318 | ) | (318 | ) | (318 | ) | (318 | ) | ||||||||||
Accumulated other comprehensive loss (income)
|
1 | 14 | 20 | (16 | ) | (10 | ) | |||||||||||||
Other intangible assets
|
(9 | ) | (10 | ) | (11 | ) | (11 | ) | (12 | ) | ||||||||||
Tier 1 capital (regulatory)
|
$ | 728 | $ | 705 | $ | 777 | $ | 886 | $ | 952 | ||||||||||
Tier 1 capital (regulatory)
|
$ | 728 | $ | 705 | $ | 777 | $ | 886 | $ | 952 | ||||||||||
Qualifying capital securities
|
(74 | ) | (74 | ) | (74 | ) | (74 | ) | (74 | ) | ||||||||||
Preferred stock
|
(282 | ) | (280 | ) | (278 | ) | (277 | ) | (275 | ) | ||||||||||
Total Tier 1 common equity (non-GAAP)
|
$ | 372 | $ | 351 | $ | 425 | $ | 535 | $ | 603 | ||||||||||
Net risk-weighted assets (regulatory)(1)
|
$ | 5,850 | $ | 5,930 | $ | 6,417 | $ | 7,133 | $ | 7,432 | ||||||||||
Equity to assets
|
10.32 | % | 9.72 | % | 10.15 | % | 10.88 | % | 11.24 | % | ||||||||||
Tier 1 common equity (non-GAAP)
|
6.36 | 5.93 | 6.62 | 7.50 | 8.10 | |||||||||||||||
Tangible equity to tangible assets (non-GAAP)
|
7.12 | 6.57 | 7.09 | 8.03 | 8.45 | |||||||||||||||
Tangible common equity to tangible assets (non-GAAP)
|
4.05 | 3.59 | 4.20 | 5.34 | 5.83 |
(1) | Net risk-weighted assets (regulatory) for second quarter 2010 were calculated on a combined basis. |
12
Three Months Ended | ||||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
(in thousands) | 2011 | 2011 | 2010 | 2010 | 2010 | |||||||||||||||
Income (loss) from continuing operations |
$ | 24,157 | $ | (68,678 | ) | $ | (106,154 | ) | $ | (62,471 | ) | $ | (44,456 | ) | ||||||
Income tax (benefit) provision from continuing operations |
(10,266 | ) | 55 | 3,383 | 5,628 | 3,700 | ||||||||||||||
Provision for loan losses |
17,596 | 88,724 | 131,296 | 89,617 | 70,614 | |||||||||||||||
Net (gains) losses on loans held for sale |
(1,179 | ) | 1,106 | 3,069 | 1,441 | 8,405 | ||||||||||||||
Investment securities losses (gains) |
993 | 383 | 171 | | (8,051 | ) | ||||||||||||||
Losses on other real estate (ORE) |
1,355 | 9,122 | 930 | 1,967 | 3,778 | |||||||||||||||
Fair-value adjustment on bank owned life insurance (1) |
48 | (100 | ) | (105 | ) | (159 | ) | 280 | ||||||||||||
Fair-value adjustment on swaps (1) |
77 | 114 | (535 | ) | 202 | 279 | ||||||||||||||
Pre-tax pre-provision profit (non-GAAP) |
$ | 32,781 | $ | 30,726 | $ | 32,055 | $ | 36,225 | $ | 34,549 | ||||||||||
(1) | Fair-value adjustment amounts contained in line item Other income on Consolidated Statements of Operations |
Three Months Ended | ||||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
(in thousands) | 2011 | 2011 | 2010 | 2010 | 2010 | |||||||||||||||
Service charges on deposit accounts |
$ | 9,753 | $ | 9,429 | $ | 10,072 | $ | 10,609 | $ | 9,971 | ||||||||||
Trust fees |
3,811 | 3,923 | 4,135 | 3,837 | 3,836 | |||||||||||||||
Mortgage and other loan income |
1,883 | 2,942 | 3,109 | 2,590 | 2,198 | |||||||||||||||
Brokerage and investment fees |
1,533 | 1,108 | 1,264 | 1,060 | 1,322 | |||||||||||||||
ATM network user fees |
1,926 | 1,755 | 1,825 | 1,864 | 1,771 | |||||||||||||||
Bankcard fees |
2,468 | 2,238 | 2,325 | 2,261 | 2,266 | |||||||||||||||
Net gains (losses) on loans held for sale |
1,179 | (1,106 | ) | (3,069 | ) | (1,441 | ) | (8,405 | ) | |||||||||||
Investment securities (losses) gains |
(993 | ) | (383 | ) | (171 | ) | | 8,051 | ||||||||||||
Other income |
1,765 | 3,237 | 4,538 | 5,176 | 1,272 | |||||||||||||||
Total noninterest income |
$ | 23,325 | $ | 23,143 | $ | 24,028 | $ | 25,956 | $ | 22,282 | ||||||||||
Salaries and employee benefits |
$ | 31,265 | $ | 31,018 | $ | 32,294 | $ | 32,740 | $ | 31,403 | ||||||||||
Occupancy |
6,047 | 7,562 | 6,834 | 6,529 | 6,139 | |||||||||||||||
Professional services |
2,407 | 2,219 | 2,945 | 2,737 | 2,615 | |||||||||||||||
Equipment |
2,841 | 3,052 | 3,355 | 3,076 | 2,979 | |||||||||||||||
Data processing services |
4,247 | 4,352 | 4,636 | 4,702 | 4,767 | |||||||||||||||
Advertising and public relations |
1,802 | 569 | 1,512 | 1,605 | 2,116 | |||||||||||||||
Postage and delivery |
1,120 | 1,116 | 1,075 | 1,187 | 1,295 | |||||||||||||||
Other loan expenses |
3,314 | 5,255 | 5,431 | 4,355 | 4,551 | |||||||||||||||
Losses on other real estate (ORE) |
1,355 | 9,122 | 930 | 1,967 | 3,778 | |||||||||||||||
ORE expenses |
1,029 | 1,768 | 1,653 | 1,327 | 800 | |||||||||||||||
Intangible asset amortization |
778 | 828 | 851 | 908 | 1,034 | |||||||||||||||
Other expense |
13,239 | 14,795 | 15,718 | 13,607 | 15,533 | |||||||||||||||
Total noninterest expense |
$ | 69,444 | $ | 81,656 | $ | 77,234 | $ | 74,740 | $ | 77,010 | ||||||||||
13
Three Months Ended | ||||||||||||||||||||||||
June 30, 2011 | March 31, 2011 | June 30, 2010 | ||||||||||||||||||||||
Average | Average | Average | Average | Average | Average | |||||||||||||||||||
(in thousands) | Balance | Rate | Balance | Rate | Balance | Rate | ||||||||||||||||||
Earning Assets |
||||||||||||||||||||||||
Money market investments |
$ | 403,380 | 0.25 | % | $ | 416,756 | 0.25 | % | $ | 654,502 | 0.25 | % | ||||||||||||
Investment securities: |
||||||||||||||||||||||||
Taxable |
2,443,792 | 3.36 | 2,313,467 | 3.39 | 1,856,490 | 4.01 | ||||||||||||||||||
Tax-exempt |
254,797 | 6.55 | 278,679 | 6.81 | 351,717 | 6.88 | ||||||||||||||||||
FHLB and Federal Reserve stock |
137,433 | 3.04 | 143,873 | 3.16 | 156,597 | 2.62 | ||||||||||||||||||
Portfolio loans: |
||||||||||||||||||||||||
Commercial and industrial |
1,348,499 | 5.38 | 1,422,574 | 4.59 | 1,775,054 | 4.93 | ||||||||||||||||||
Commercial real estate |
1,766,070 | 5.04 | 2,045,360 | 5.30 | 2,722,843 | 5.29 | ||||||||||||||||||
Residential mortgage |
719,336 | 4.80 | 741,818 | 4.76 | 865,732 | 5.66 | ||||||||||||||||||
Direct consumer |
990,764 | 6.06 | 1,024,979 | 6.12 | 1,153,278 | 6.09 | ||||||||||||||||||
Indirect consumer |
844,083 | 6.68 | 816,676 | 6.79 | 801,556 | 6.81 | ||||||||||||||||||
Total portfolio loans |
5,668,752 | 5.51 | 6,051,407 | 5.40 | 7,318,463 | 5.54 | ||||||||||||||||||
Loans held for sale |
34,194 | 1.72 | 26,860 | 5.50 | 94,381 | 1.47 | ||||||||||||||||||
Total earning assets |
8,942,348 | 4.67 | 9,231,042 | 4.67 | 10,432,150 | 4.90 | ||||||||||||||||||
Nonearning Assets |
||||||||||||||||||||||||
Cash and due from banks |
138,728 | 143,957 | 143,924 | |||||||||||||||||||||
Bank premises and equipment |
101,352 | 104,399 | 107,874 | |||||||||||||||||||||
Investment security fair value adjustment |
53,822 | 32,229 | 45,580 | |||||||||||||||||||||
Other nonearning assets |
652,611 | 682,526 | 748,626 | |||||||||||||||||||||
Assets of discontinued operations |
| | 110,881 | |||||||||||||||||||||
Allowance for loan losses |
(223,922 | ) | (295,232 | ) | (321,976 | ) | ||||||||||||||||||
Total assets |
$ | 9,664,939 | $ | 9,898,921 | $ | 11,267,059 | ||||||||||||||||||
Interest-Bearing Liabilities |
||||||||||||||||||||||||
Deposits: |
||||||||||||||||||||||||
Interest-bearing demand deposits |
$ | 947,220 | 0.23 | $ | 951,770 | 0.23 | $ | 1,044,580 | 0.28 | |||||||||||||||
Savings deposits |
2,621,616 | 0.37 | 2,629,296 | 0.40 | 2,533,846 | 0.66 | ||||||||||||||||||
Time deposits |
2,562,463 | 1.89 | 2,753,306 | 1.95 | 3,566,321 | 2.36 | ||||||||||||||||||
Short-term borrowings |
41,340 | 0.18 | 41,187 | 0.18 | 31,897 | 0.21 | ||||||||||||||||||
Long-term debt |
905,902 | 4.23 | 971,076 | 4.08 | 1,314,991 | 4.40 | ||||||||||||||||||
Total interest-bearing liabilities |
7,078,541 | 1.40 | 7,346,635 | 1.44 | 8,491,635 | 1.91 | ||||||||||||||||||
Noninterest-Bearing Liabilities and Shareholders
Equity |
||||||||||||||||||||||||
Noninterest-bearing demand |
1,474,408 | 1,395,588 | 1,286,243 | |||||||||||||||||||||
Other liabilities |
148,058 | 154,408 | 144,354 | |||||||||||||||||||||
Liabilities of discontinued operations |
| | 106,227 | |||||||||||||||||||||
Shareholders equity |
963,932 | 1,002,290 | 1,238,600 | |||||||||||||||||||||
Total liabilities and shareholders equity |
$ | 9,664,939 | $ | 9,898,921 | $ | 11,267,059 | ||||||||||||||||||
Interest Spread |
3.27 | 3.23 | 2.99 | |||||||||||||||||||||
Contribution of noninterest bearing sources of funds |
0.29 | 0.30 | 0.36 | |||||||||||||||||||||
Net Interest Margin |
3.56 | % | 3.53 | % | 3.35 | % | ||||||||||||||||||
14
Six Months Ended | ||||||||||||||||
June 30, | ||||||||||||||||
2011 | 2010 | |||||||||||||||
Average | Average | Average | Average | |||||||||||||
(in thousands) | Balance | Rate | Balance | Rate | ||||||||||||
Earning Assets |
||||||||||||||||
Money market investments |
$ | 410,031 | 0.25 | % | $ | 675,144 | 0.25 | % | ||||||||
Investment securities: |
||||||||||||||||
Taxable |
2,378,990 | 3.38 | 1,806,926 | 4.08 | ||||||||||||
Tax-exempt |
266,672 | 6.69 | 421,953 | 6.72 | ||||||||||||
FHLB and Federal Reserve stock |
140,635 | 3.10 | 155,845 | 2.62 | ||||||||||||
Portfolio loans: |
||||||||||||||||
Commercial and industrial |
1,385,331 | 4.98 | 1,824,723 | 4.90 | ||||||||||||
Commercial real estate |
1,904,944 | 5.18 | 2,756,930 | 5.27 | ||||||||||||
Residential mortgage |
730,515 | 4.78 | 926,955 | 5.19 | ||||||||||||
Direct consumer |
1,007,777 | 6.09 | 1,177,404 | 6.07 | ||||||||||||
Indirect consumer |
830,455 | 6.74 | 799,530 | 6.84 | ||||||||||||
Total portfolio loans |
5,859,022 | 5.46 | 7,485,542 | 5.46 | ||||||||||||
Loans held for sale |
30,547 | 3.38 | 89,205 | 1.67 | ||||||||||||
Total earning assets |
9,085,897 | 4.67 | 10,634,615 | 4.87 | ||||||||||||
Nonearning Assets |
||||||||||||||||
Cash and due from banks |
141,328 | 176,345 | ||||||||||||||
Bank premises and equipment |
102,868 | 108,780 | ||||||||||||||
Investment security fair value adjustment |
43,085 | 44,029 | ||||||||||||||
Other nonearning assets |
667,486 | 729,498 | ||||||||||||||
Assets of discontinued operations |
| 219,029 | ||||||||||||||
Allowance for loan losses |
(259,380 | ) | (328,934 | ) | ||||||||||||
Total assets |
$ | 9,781,284 | $ | 11,583,362 | ||||||||||||
Interest-Bearing Liabilities |
||||||||||||||||
Deposits: |
||||||||||||||||
Interest-bearing demand deposits |
$ | 949,482 | 0.23 | $ | 1,060,175 | 0.29 | ||||||||||
Savings deposits |
2,625,435 | 0.39 | 2,512,123 | 0.67 | ||||||||||||
Time deposits |
2,657,357 | 1.92 | 3,637,529 | 2.52 | ||||||||||||
Short-term borrowings |
41,264 | 0.18 | 34,207 | 0.24 | ||||||||||||
Long-term debt |
938,309 | 4.15 | 1,381,997 | 4.44 | ||||||||||||
Total interest-bearing liabilities |
7,211,847 | 1.42 | 8,626,031 | 2.01 | ||||||||||||
Noninterest-Bearing Liabilities and Shareholders
Equity |
||||||||||||||||
Noninterest-bearing demand |
1,435,216 | 1,277,461 | ||||||||||||||
Other liabilities |
151,216 | 139,459 | ||||||||||||||
Liabilities of discontinued operations |
| 259,837 | ||||||||||||||
Shareholders equity |
983,005 | 1,280,574 | ||||||||||||||
Total liabilities and shareholders equity |
$ | 9,781,284 | $ | 11,583,362 | ||||||||||||
Interest Spread |
3.25 | % | 2.86 | % | ||||||||||||
Contribution of noninterest bearing sources of funds |
0.29 | 0.38 | ||||||||||||||
Net Interest Margin |
3.54 | % | 3.24 | % |
15