Ohio | 0-10161 | 34-1339938 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
( IRS Employer Identification No.) |
III Cascade Plaza, 7th Floor Akron, Ohio | 44308 | |
(Address of principal executive offices) | (Zip Code) |
ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION. | ||||||||
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS. | ||||||||
SIGNATURES | ||||||||
EX-99.1 |
Exhibit Number | Description | |||
99.1 | Press Release, dated April 26, 2011. |
FirstMerit Corporation |
||||
By: | /s/ Terrence E. Bichsel | |||
Terrence E. Bichsel | ||||
Executive Vice President and Chief Financial Officer |
||||
| 48th consecutive quarter of profitability | ||
| Solid linked-quarter credit trends supported by $10.7 million, or 8.70%, decline in non-performing assets and $4.6 million, or 21.41%, decline in net charge-offs, to 0.99% of average loans. | ||
| Annualized average commercial loan growth of 9.86% | ||
| Core deposit growth of $458.8 million | ||
| Strong tangible common equity ratio at 7.50% |
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Quarters | ||||||||||||||||||||
2011 | 2010 | 2010 | 2010 | 2010 | ||||||||||||||||
1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | ||||||||||||||||
EARNINGS |
||||||||||||||||||||
Net interest income FTE (a) |
$ | 123,940 | $ | 129,971 | $ | 125,514 | $ | 118,817 | $ | 92,348 | ||||||||||
Provision for noncovered loan losses |
17,018 | 19,816 | 18,108 | 20,366 | 25,493 | |||||||||||||||
Provision for covered loan losses |
5,331 | 3,572 | 593 | 267 | | |||||||||||||||
Other income |
52,756 | 54,311 | 55,135 | 53,209 | 49,900 | |||||||||||||||
Other expenses |
114,445 | 122,452 | 120,670 | 105,723 | 94,013 | |||||||||||||||
FTE adjustment (a) |
2,116 | 2,107 | 2,021 | 2,050 | 1,954 | |||||||||||||||
Net income |
27,560 | 27,030 | 28,996 | 31,493 | 15,390 | |||||||||||||||
Diluted EPS |
0.25 | 0.25 | 0.27 | 0.32 | 0.18 | |||||||||||||||
PERFORMANCE RATIOS |
||||||||||||||||||||
Return on average assets (ROA) |
0.78 | % | 0.74 | % | 0.79 | % | 0.94 | % | 0.55 | % | ||||||||||
Return on average common equity (ROE) |
7.37 | % | 7.04 | % | 7.60 | % | 11.21 | % | 5.71 | % | ||||||||||
Net interest margin FTE (a) |
4.00 | % | 4.14 | % | 3.96 | % | 4.02 | % | 3.72 | % | ||||||||||
Efficiency ratio |
64.46 | % | 65.95 | % | 66.26 | % | 61.30 | % | 65.93 | % | ||||||||||
Number of full-time equivalent employees |
3,056 | 3,058 | 3,093 | 3,095 | 2,723 | |||||||||||||||
MARKET DATA |
||||||||||||||||||||
Book value/common share |
$ | 13.98 | $ | 13.86 | $ | 13.95 | $ | 13.87 | $ | 12.69 | ||||||||||
Period-end common share mkt value |
17.07 | 19.79 | 18.32 | 17.13 | 21.57 | |||||||||||||||
Market as a % of book |
122 | % | 143 | % | 131 | % | 124 | % | 170 | % | ||||||||||
Cash dividends/common share |
$ | 0.16 | $ | 0.16 | $ | 0.16 | $ | 0.16 | $ | 0.16 | ||||||||||
Common stock dividend payout ratio |
64.00 | % | 64.41 | % | 60.03 | % | 50.00 | % | 88.89 | % | ||||||||||
Average basic common shares |
108,769 | 108,807 | 108,793 | 98,968 | 87,771 | |||||||||||||||
Average diluted common shares |
108,770 | 108,808 | 108,794 | 98,969 | 87,777 | |||||||||||||||
Period end common shares |
108,734 | 108,817 | 108,803 | 108,786 | 90,810 | |||||||||||||||
Common shares repurchased |
91 | 9 | 4 | 46 | 115 | |||||||||||||||
Common stock market capitalization |
$ | 1,856,089 | $ | 2,153,479 | $ | 1,993,276 | $ | 1,863,504 | $ | 1,958,772 | ||||||||||
ASSET QUALITY (excluding acquired loans) |
||||||||||||||||||||
Gross charge-offs |
$ | 22,812 | $ | 27,553 | $ | 25,817 | $ | 24,967 | $ | 26,195 | ||||||||||
Net charge-offs |
17,018 | 21,654 | 19,923 | 19,829 | 22,779 | |||||||||||||||
Allowance for loan losses noncovered |
114,690 | 114,690 | 116,528 | 118,343 | 117,806 | |||||||||||||||
Reserve for unfunded lending commitments |
7,202 | 8,849 | 7,864 | 6,812 | 6,337 | |||||||||||||||
Nonperforming assets (NPAs) (b) |
112,759 | 123,502 | 115,267 | 109,781 | 123,320 | |||||||||||||||
Net charge-offs/average loans ratio (b) |
0.99 | % | 1.25 | % | 1.17 | % | 1.15 | % | 1.36 | % | ||||||||||
Allowance for noncovered loan losses/period-end loans (b) |
1.64 | % | 1.65 | % | 1.72 | % | 1.75 | % | 1.72 | % | ||||||||||
Allowance for credit losses/period-end loans (b) |
1.74 | % | 1.78 | % | 1.84 | % | 1.85 | % | 1.82 | % | ||||||||||
NPAs/loans and other real estate (b) |
1.61 | % | 1.78 | % | 1.70 | % | 1.62 | % | 1.80 | % | ||||||||||
Allowance for noncovered loan losses/nonperforming loans |
138.67 | % | 109.56 | % | 111.00 | % | 119.62 | % | 105.14 | % | ||||||||||
Allowance for credit losses/nonperforming loans |
147.38 | % | 118.01 | % | 118.49 | % | 126.51 | % | 110.80 | % | ||||||||||
CAPITAL & LIQUIDITY |
||||||||||||||||||||
Period-end tangible common equity to assets |
7.50 | % | 7.59 | % | 7.54 | % | 7.35 | % | 7.91 | % | ||||||||||
Average equity to assets |
10.62 | % | 10.51 | % | 10.38 | % | 8.39 | % | 9.63 | % | ||||||||||
Average equity to total loans (c) |
17.14 | % | 17.15 | % | 16.93 | % | 13.68 | % | 15.39 | % | ||||||||||
Average total loans to deposits (c) |
78.14 | % | 78.00 | % | 78.25 | % | 77.73 | % | 85.18 | % | ||||||||||
AVERAGE BALANCES |
||||||||||||||||||||
Assets |
$ | 14,270,871 | $ | 14,493,060 | $ | 14,587,126 | $ | 13,426,271 | $ | 11,357,110 | ||||||||||
Deposits |
11,319,809 | 11,388,423 | 11,425,741 | 10,600,401 | 8,340,796 | |||||||||||||||
Loans, excluding acquired loans (c) |
6,963,389 | 6,868,222 | 6,781,123 | 6,810,582 | 6,812,647 | |||||||||||||||
Acquired loans, including covered loans (c) |
1,881,540 | 2,014,361 | 2,160,075 | 1,429,388 | 291,651 | |||||||||||||||
Earning assets |
12,560,913 | 12,466,629 | 12,579,486 | 11,860,439 | 10,076,565 | |||||||||||||||
Shareholders equity |
1,516,227 | 1,523,078 | 1,513,527 | 1,127,017 | 1,093,568 | |||||||||||||||
ENDING BALANCES |
||||||||||||||||||||
Assets |
$ | 14,466,509 | $ | 14,134,714 | $ | 14,354,086 | $ | 14,521,473 | $ | 12,324,589 | ||||||||||
Deposits |
11,395,946 | 11,268,006 | 11,271,416 | 11,515,171 | 9,370,009 | |||||||||||||||
Loans, excluding acquired loans (c) |
6,989,973 | 6,937,142 | 6,776,098 | 6,779,941 | 6,836,451 | |||||||||||||||
Acquired loans, including covered loans (c) |
1,800,525 | 1,953,093 | 2,119,504 | 2,244,737 | 533,888 | |||||||||||||||
Goodwill |
460,044 | 460,044 | 460,044 | 460,044 | 187,945 | |||||||||||||||
Intangible assets |
9,868 | 10,411 | 11,416 | 12,422 | 5,659 | |||||||||||||||
Earning assets |
12,659,414 | 12,427,936 | 12,507,979 | 12,680,627 | 10,775,434 | |||||||||||||||
Total shareholders equity |
1,519,957 | 1,507,715 | 1,517,892 | 1,505,345 | 1,152,721 |
(a) | | Net interest income on a fully tax-equivalent (FTE) basis restates interest on tax-exempt securities and loans as if such interest were subject to federal income tax at the statutory rate. Net interest income on an FTE basis is not an accounting principle generally accepted in the United States of America. |
(b) | | As required by current accounting guidance, the acquired loans and other real estate from First Bank, George Washington Savings Bank and Midwest Bank & Trust Company were recorded at fair value with no carryover of the related allowances. The ratio of our allowance for loan and credit losses and NPAs do not include these loans and other real estate. |
(c) | | Excludes loss share receivable of $266 million, $289 million, $318.4 million, $319.8 million and $88.0 million as of March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively. |
Page 6
March 31, | December 31, | March 31, | ||||||||||
2011 | 2010 | 2010 | ||||||||||
ASSETS |
||||||||||||
Cash and due from banks |
$ | 168,528 | $ | 157,415 | $ | 171,793 | ||||||
Interest-bearing deposits in banks |
470,253 | 365,698 | 550,145 | |||||||||
Total cash and cash equivalents |
638,781 | 523,113 | 721,938 | |||||||||
Investment securities |
||||||||||||
Held-to-maturity |
65,923 | 59,962 | 67,256 | |||||||||
Available-for-sale |
3,362,751 | 2,987,040 | 3,101,740 | |||||||||
Other investments |
160,818 | 160,752 | 132,043 | |||||||||
Loans held for sale |
13,443 | 41,340 | 16,009 | |||||||||
Noncovered loans: |
||||||||||||
Commercial loans |
4,565,376 | 4,527,497 | 4,389,859 | |||||||||
Mortgage loans |
399,380 | 403,843 | 447,575 | |||||||||
Installment loans |
1,282,170 | 1,308,860 | 1,382,522 | |||||||||
Home equity loans |
736,947 | 749,378 | 766,073 | |||||||||
Credit card loans |
141,864 | 149,506 | 145,029 | |||||||||
Leases |
60,487 | 63,004 | 59,464 | |||||||||
Total noncovered loans |
7,186,224 | 7,202,088 | 7,190,522 | |||||||||
Allowance for noncovered loan losses |
(114,690 | ) | (114,690 | ) | (117,806 | ) | ||||||
Net noncovered loans |
7,071,534 | 7,087,398 | 7,072,716 | |||||||||
Covered loans (includes loss share receivable of $266 million) |
1,870,255 | 1,976,754 | 267,864 | |||||||||
Allowance for covered loan losses |
(28,405 | ) | (13,733 | ) | | |||||||
Net covered loans |
1,841,850 | 1,963,021 | 267,864 | |||||||||
Net loans |
8,913,384 | 9,050,419 | 7,340,580 | |||||||||
Premises and equipment, net |
192,630 | 197,866 | 164,408 | |||||||||
Goodwill |
460,044 | 460,044 | 187,945 | |||||||||
Intangible assets |
9,868 | 10,411 | 5,659 | |||||||||
Other real estate covered by FDIC loss share |
58,688 | 54,710 | 22,754 | |||||||||
Accrued interest receivable and other assets |
590,179 | 589,057 | 564,257 | |||||||||
Total assets |
$ | 14,466,509 | $ | 14,134,714 | $ | 12,324,589 | ||||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||||||
Deposits: |
||||||||||||
Demand-non-interest bearing |
$ | 2,925,088 | $ | 2,790,550 | $ | 2,217,714 | ||||||
Demand-interest bearing |
815,593 | 868,404 | 686,503 | |||||||||
Savings and money market accounts |
5,188,815 | 4,811,784 | 4,103,657 | |||||||||
Certificates and other time deposits |
2,466,450 | 2,797,268 | 2,362,135 | |||||||||
Total deposits |
11,395,946 | 11,268,006 | 9,370,009 | |||||||||
Federal funds purchased and securities sold under agreements to repurchase |
952,995 | 777,585 | 896,330 | |||||||||
Wholesale borrowings |
325,046 | 326,007 | 677,715 | |||||||||
Accrued taxes, expenses, and other liabilities |
272,565 | 255,401 | 227,814 | |||||||||
Total liabilities |
12,946,552 | 12,626,999 | 11,171,868 | |||||||||
Commitments and contingencies |
||||||||||||
Shareholders equity: |
||||||||||||
Preferred stock, without par value: |
||||||||||||
Preferred stock, Series A, without par value: |
||||||||||||
Convertible preferred stock, Series B, without par value: |
||||||||||||
Common stock, without par value: |
||||||||||||
authorized 300,000,000 shares; issued 115,121,731, 115,121,731 and
97,521,571 at March 31, 2011, December 31, 2010 and
March 31, 2010, respectively |
127,937 | 127,937 | 127,937 | |||||||||
Capital surplus |
488,770 | 485,567 | 171,330 | |||||||||
Accumulated other comprehensive loss |
(25,765 | ) | (26,103 | ) | (20,983 | ) | ||||||
Retained earnings |
1,091,160 | 1,080,900 | 1,045,195 | |||||||||
Treasury stock, at cost, 6,387,924, 6,305,218 and 6,711,936
shares at March 31, 2011, December 31, 2010 and March 31, 2010,
respectively |
(162,145 | ) | (160,586 | ) | (170,758 | ) | ||||||
Total shareholders equity |
1,519,957 | 1,507,715 | 1,152,721 | |||||||||
Total liabilities and shareholders equity |
$ | 14,466,509 | $ | 14,134,714 | $ | 12,324,589 | ||||||
Page 7
Quarterly Periods | ||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
2011 | 2010 | 2010 | 2010 | 2010 | ||||||||||||||||
ASSETS |
||||||||||||||||||||
Cash and cash equivalents |
$ | 520,602 | $ | 809,828 | $ | 821,713 | $ | 762,781 | $ | 521,666 | ||||||||||
Investment securities |
||||||||||||||||||||
Held-to-maturity |
64,212 | 64,287 | 63,364 | 64,650 | 56,322 | |||||||||||||||
Available-for-sale |
3,194,751 | 3,012,983 | 3,049,056 | 3,131,787 | 2,731,639 | |||||||||||||||
Other investments |
160,752 | 160,756 | 158,591 | 179,735 | 129,658 | |||||||||||||||
Loans held for sale |
22,574 | 39,174 | 21,659 | 18,827 | 14,538 | |||||||||||||||
Noncovered loans: |
||||||||||||||||||||
Commercial loans |
4,553,777 | 4,445,691 | 4,336,631 | 4,376,274 | 4,197,663 | |||||||||||||||
Mortgage loans |
403,758 | 403,334 | 421,087 | 438,243 | 454,525 | |||||||||||||||
Installment loans |
1,294,156 | 1,331,130 | 1,363,248 | 1,377,748 | 1,402,552 | |||||||||||||||
Home equity loans |
741,596 | 754,270 | 762,626 | 763,943 | 757,094 | |||||||||||||||
Credit card loans |
146,526 | 146,744 | 146,863 | 145,880 | 150,117 | |||||||||||||||
Leases |
61,768 | 62,115 | 58,223 | 59,049 | 60,430 | |||||||||||||||
Total noncovered loans |
7,201,581 | 7,143,284 | 7,088,678 | 7,161,137 | 7,022,381 | |||||||||||||||
Covered loans and loss share receivable |
1,917,043 | 2,046,145 | 2,198,138 | 1,304,303 | 122,027 | |||||||||||||||
Total loans |
9,118,624 | 9,189,429 | 9,286,816 | 8,465,440 | 7,144,408 | |||||||||||||||
Less: total allowance for loan losses |
134,064 | 119,924 | 113,062 | 116,436 | 115,031 | |||||||||||||||
Net loans |
8,984,560 | 9,069,505 | 9,173,754 | 8,349,004 | 7,029,377 | |||||||||||||||
Total earning assets |
12,560,913 | 12,466,629 | 12,579,486 | 11,860,439 | 10,076,565 | |||||||||||||||
Premises and equipment, net |
195,296 | 195,915 | 172,712 | 167,009 | 141,405 | |||||||||||||||
Accrued interest receivable and other assets |
1,128,124 | 1,140,612 | 1,126,277 | 752,478 | 732,505 | |||||||||||||||
TOTAL ASSETS |
$ | 14,270,871 | $ | 14,493,060 | $ | 14,587,126 | $ | 13,426,271 | $ | 11,357,110 | ||||||||||
LIABILITIES |
||||||||||||||||||||
Deposits: |
||||||||||||||||||||
Demand-non-interest bearing |
$ | 2,874,884 | $ | 2,816,850 | $ | 2,730,483 | $ | 2,496,826 | $ | 2,146,969 | ||||||||||
Demand-interest bearing |
841,545 | 857,960 | 858,168 | 775,031 | 687,233 | |||||||||||||||
Savings and money market accounts |
4,978,773 | 4,710,682 | 4,502,779 | 4,278,756 | 3,709,246 | |||||||||||||||
Certificates and other time deposits |
2,624,607 | 3,002,931 | 3,334,311 | 3,049,788 | 1,797,348 | |||||||||||||||
Total deposits |
11,319,809 | 11,388,423 | 11,425,741 | 10,600,401 | 8,340,796 | |||||||||||||||
Federal funds purchased and securities sold under
agreements to repurchase |
848,169 | 904,163 | 928,607 | 843,652 | 951,927 | |||||||||||||||
Wholesale borrowings |
325,296 | 368,397 | 443,890 | 526,963 | 708,414 | |||||||||||||||
Total funds |
12,493,274 | 12,660,983 | 12,798,238 | 11,971,016 | 10,001,137 | |||||||||||||||
Accrued taxes, expenses and other liabilities |
261,370 | 308,999 | 275,361 | 328,238 | 262,405 | |||||||||||||||
Total liabilities |
12,754,644 | 12,969,982 | 13,073,599 | 12,299,254 | 10,263,542 | |||||||||||||||
SHAREHOLDERS EQUITY |
||||||||||||||||||||
Common stock |
127,937 | 127,937 | 127,937 | 127,937 | 127,937 | |||||||||||||||
Capital surplus |
486,907 | 485,126 | 484,197 | 127,143 | 106,350 | |||||||||||||||
Accumulated other comprehensive loss |
(26,703 | ) | (9,867 | ) | (2,332 | ) | (15,913 | ) | (20,593 | ) | ||||||||||
Retained earnings |
1,089,554 | 1,080,809 | 1,065,001 | 1,051,308 | 1,049,774 | |||||||||||||||
Treasury stock |
(161,468 | ) | (160,927 | ) | (161,276 | ) | (163,458 | ) | (169,900 | ) | ||||||||||
Total shareholders equity |
1,516,227 | 1,523,078 | 1,513,527 | 1,127,017 | 1,093,568 | |||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY |
$ | 14,270,871 | $ | 14,493,060 | $ | 14,587,126 | $ | 13,426,271 | $ | 11,357,110 | ||||||||||
Page 8
Three months ended | Year ended | Three months ended | ||||||||||||||||||||||||||||||||||
March 31, 2011 | December 31, 2010 | March 31, 2010 | ||||||||||||||||||||||||||||||||||
Average | Average | Average | Average | Average | Average | |||||||||||||||||||||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||||||||||||
ASSETS |
||||||||||||||||||||||||||||||||||||
Cash and cash equivalents |
$ | 520,602 | $ | 728,723 | $ | 521,666 | ||||||||||||||||||||||||||||||
Investment securities and federal funds sold: |
||||||||||||||||||||||||||||||||||||
U.S. Treasury securities and U.S. Government
agency obligations (taxable) |
2,783,053 | 19,368 | 2.82 | % | 2,554,538 | 87,019 | 3.41 | % | 2,377,729 | 22,909 | 3.91 | % | ||||||||||||||||||||||||
Obligations of states and political
subdivisions (tax
exempt) |
357,511 | 5,030 | 5.71 | % | 348,832 | 20,505 | 5.88 | % | 344,899 | 5,139 | 6.04 | % | ||||||||||||||||||||||||
Other securities and federal funds sold |
279,151 | 2,117 | 3.08 | % | 300,700 | 8,508 | 2.83 | % | 194,991 | 1,986 | 4.13 | % | ||||||||||||||||||||||||
Total investment securities and federal
funds sold |
3,419,715 | 26,515 | 3.14 | % | 3,204,070 | 116,032 | 3.62 | % | 2,917,619 | 30,034 | 4.17 | % | ||||||||||||||||||||||||
Loans held for sale |
22,574 | 274 | 4.92 | % | 23,612 | 1,162 | 4.92 | % | 14,538 | 184 | 5.13 | % | ||||||||||||||||||||||||
Noncovered loans, covered loans and loss share
receivable |
9,118,624 | 114,562 | 5.10 | % | 8,529,303 | 433,308 | 5.08 | % | 7,144,408 | 83,590 | 4.75 | % | ||||||||||||||||||||||||
Total earning assets |
12,560,913 | 141,351 | 4.56 | % | 11,756,985 | 550,502 | 4.68 | % | 10,076,565 | 113,808 | 4.58 | % | ||||||||||||||||||||||||
Total allowance for loan losses |
(134,064 | ) | (116,118 | ) | (115,031 | ) | ||||||||||||||||||||||||||||||
Other assets |
1,323,420 | 1,154,761 | 869,604 | |||||||||||||||||||||||||||||||||
Total assets |
$ | 14,270,871 | $ | 13,524,351 | $ | 11,352,804 | ||||||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||||||||||||||||||||||||||||||
Deposits: |
||||||||||||||||||||||||||||||||||||
Demand non-interest bearing |
$ | 2,874,884 | | | $ | 2,550,849 | | | $ | 2,146,969 | | | ||||||||||||||||||||||||
Demand interest bearing |
841,545 | 184 | 0.09 | % | 794,497 | 751 | 0.09 | % | 687,233 | 152 | 0.09 | % | ||||||||||||||||||||||||
Savings and money market accounts |
4,978,773 | 7,845 | 0.64 | % | 4,303,815 | 31,912 | 0.74 | % | 3,709,246 | 7,601 | 0.83 | % | ||||||||||||||||||||||||
Certificates and other time deposits |
2,624,607 | 6,827 | 1.05 | % | 2,801,270 | 32,713 | 1.17 | % | 1,797,348 | 6,406 | 1.45 | % | ||||||||||||||||||||||||
Total deposits |
11,319,809 | 14,856 | 0.53 | % | 10,450,431 | 65,376 | 0.63 | % | 8,340,796 | 14,159 | 0.69 | % | ||||||||||||||||||||||||
Securities sold under agreements to repurchase |
848,169 | 915 | 0.44 | % | 907,015 | 4,477 | 0.49 | % | 951,927 | 1,127 | 0.48 | % | ||||||||||||||||||||||||
Wholesale borrowings |
325,296 | 1,640 | 2.04 | % | 510,799 | 13,998 | 2.74 | % | 708,414 | 6,174 | 3.53 | % | ||||||||||||||||||||||||
Total interest bearing liabilities |
9,618,390 | 17,411 | 0.73 | % | 9,317,396 | 83,851 | 0.90 | % | 7,854,168 | 21,460 | 1.11 | % | ||||||||||||||||||||||||
Other liabilities |
261,370 | 340,485 | 262,405 | |||||||||||||||||||||||||||||||||
Shareholders equity |
1,516,227 | 1,315,621 | 1,093,568 | |||||||||||||||||||||||||||||||||
Total liabilities and shareholders equity |
$ | 14,270,871 | $ | 13,524,351 | $ | 11,357,110 | ||||||||||||||||||||||||||||||
Net yield on earning assets |
$ | 12,560,913 | 123,940 | 4.00 | % | $ | 11,756,985 | 466,651 | 3.97 | % | $ | 10,076,565 | 92,348 | 3.72 | % | |||||||||||||||||||||
Interest rate spread |
3.83 | % | 3.78 | % | 3.47 | % | ||||||||||||||||||||||||||||||
Page 9
Quarters ended | ||||||||
March 31, | ||||||||
2011 | 2010 | |||||||
Interest income: |
||||||||
Interest and fees on loans, including held for sale |
$ | 114,555 | $ | 83,645 | ||||
Investment securities |
||||||||
Taxable |
21,485 | 24,870 | ||||||
Tax-exempt |
3,195 | 3,339 | ||||||
Total investment securities interest |
24,680 | 28,209 | ||||||
Total interest income |
139,235 | 111,854 | ||||||
Interest expense: |
||||||||
Interest on deposits: |
||||||||
Demand-interest bearing |
184 | 152 | ||||||
Savings and money market accounts |
7,845 | 7,601 | ||||||
Certificates and other time deposits |
6,827 | 6,406 | ||||||
Interest on securities sold under agreements to repurchase |
915 | 1,127 | ||||||
Interest on wholesale borrowings |
1,640 | 6,174 | ||||||
Total interest expense |
17,411 | 21,460 | ||||||
Net interest income |
121,824 | 90,394 | ||||||
Provision for noncovered loan losses |
17,018 | 25,493 | ||||||
Provision for covered loan losses |
5,331 | | ||||||
Net interest income after provision for loan losses |
99,475 | 64,901 | ||||||
Other income: |
||||||||
Trust department income |
5,514 | 5,281 | ||||||
Service charges on deposits |
14,910 | 15,366 | ||||||
Credit card fees |
12,207 | 11,558 | ||||||
ATM and other service fees |
2,917 | 2,509 | ||||||
Bank owned life insurance income |
5,241 | 5,652 | ||||||
Investment services and insurance |
2,447 | 1,928 | ||||||
Loan sales and servicing income |
5,012 | 3,237 | ||||||
Gain on George Washington acquistion |
| 1,041 | ||||||
Other operating income |
4,508 | 3,328 | ||||||
Total other income |
52,756 | 49,900 | ||||||
Other expenses: |
||||||||
Salaries, wages, pension and employee benefits |
59,871 | 48,156 | ||||||
Net occupancy expense |
8,594 | 7,140 | ||||||
Equipment expense |
6,836 | 6,050 | ||||||
Stationery, supplies and postage |
2,705 | 2,693 | ||||||
Bankcard, loan processing and other costs |
7,562 | 7,818 | ||||||
Professional services |
5,793 | 5,237 | ||||||
Amortization of intangibles |
543 | 234 | ||||||
FDIC expense |
4,366 | 3,765 | ||||||
Other operating expense |
18,175 | 12,920 | ||||||
Total other expenses |
114,445 | 94,013 | ||||||
Income before federal income tax expense |
37,786 | 20,788 | ||||||
Federal income tax expense |
10,226 | 5,398 | ||||||
Net income |
$ | 27,560 | $ | 15,390 | ||||
Other comprehensive income, net of taxes |
||||||||
Unrealized securities holding gain, net of taxes |
$ | 338 | $ | 4,476 | ||||
Unrealized hedging loss, net of taxes |
| | ||||||
Less: reclassification adjustment for securities gain realized in
income, net of taxes |
| | ||||||
Minimum pension liability adjustment, net of taxes |
| | ||||||
Total other comprehensive gain, net of taxes |
338 | 4,476 | ||||||
Comprehensive income |
$ | 27,898 | $ | 19,866 | ||||
Net income applicable to common shares |
$ | 27,560 | $ | 15,390 | ||||
Net income used in diluted EPS calculation |
$ | 27,560 | $ | 15,390 | ||||
Weighted average number of common shares outstanding basic |
108,769 | 87,771 | ||||||
Weighted average number of common shares outstanding diluted |
108,770 | 87,777 | ||||||
Basic earnings per share |
$ | 0.25 | $ | 0.18 | ||||
Diluted earnings per share |
$ | 0.25 | $ | 0.18 | ||||
Dividend per share |
$ | 0.16 | $ | 0.16 | ||||
Page 10
Quarterly Results | ||||||||||||||||||||
2011 | 2010 | 2010 | 2010 | 2010 | ||||||||||||||||
1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | ||||||||||||||||
Interest and fees on loans, including held for sale |
$ | 114,555 | $ | 121,651 | $ | 118,543 | $ | 109,924 | $ | 83,645 | ||||||||||
Interest and dividends securities and federal funds sold |
24,680 | 24,714 | 26,794 | 28,890 | 28,209 | |||||||||||||||
Total interest income |
139,235 | 146,365 | 145,337 | 138,814 | 111,854 | |||||||||||||||
Interest on deposits: |
||||||||||||||||||||
Demand-interest bearing |
184 | 198 | 252 | 149 | 152 | |||||||||||||||
Savings and money market accounts |
7,845 | 8,145 | 8,294 | 7,873 | 7,601 | |||||||||||||||
Certificates and other time deposits |
6,827 | 7,209 | 9,588 | 9,510 | 6,406 | |||||||||||||||
Securities sold under agreements to repurchase |
915 | 960 | 986 | 1,404 | 1,127 | |||||||||||||||
Wholesale borrowings |
1,640 | 1,989 | 2,724 | 3,111 | 6,174 | |||||||||||||||
Total interest expense |
17,411 | 18,501 | 21,844 | 22,047 | 21,460 | |||||||||||||||
Net interest income |
121,824 | 127,864 | 123,493 | 116,767 | 90,394 | |||||||||||||||
Provision for noncovered loan losses |
17,018 | 19,816 | 18,108 | 20,366 | 25,493 | |||||||||||||||
Provision for covered loan losses |
5,331 | 3,572 | 593 | 267 | | |||||||||||||||
Net interest income after provision for loan losses |
99,475 | 104,476 | 104,792 | 96,134 | 64,901 | |||||||||||||||
Other income: |
||||||||||||||||||||
Trust department income |
5,514 | 5,627 | 5,469 | 5,574 | 5,281 | |||||||||||||||
Service charges on deposits |
14,910 | 15,938 | 16,859 | 17,737 | 15,366 | |||||||||||||||
Credit card fees |
12,207 | 12,678 | 12,532 | 12,242 | 11,558 | |||||||||||||||
ATM and other service fees |
2,917 | 2,910 | 2,996 | 2,844 | 2,509 | |||||||||||||||
Bank owned life insurance income |
5,241 | 3,192 | 3,219 | 2,886 | 5,652 | |||||||||||||||
Investment services and insurance |
2,447 | 2,300 | 2,688 | 2,535 | 1,928 | |||||||||||||||
Investment securities gains, net |
| 146 | 58 | 651 | | |||||||||||||||
Loan sales and servicing income |
5,012 | 9,221 | 4,006 | 2,975 | 3,237 | |||||||||||||||
Gain on George Washington acquisition |
| | | | 1,041 | |||||||||||||||
Other operating income |
4,508 | 2,299 | 7,308 | 5,765 | 3,328 | |||||||||||||||
Total other income |
52,756 | 54,311 | 55,135 | 53,209 | 49,900 | |||||||||||||||
Other expenses: |
||||||||||||||||||||
Salaries, wages, pension and employee benefits |
59,871 | 62,331 | 58,930 | 51,899 | 48,156 | |||||||||||||||
Net occupancy expense |
8,594 | 9,236 | 8,608 | 7,680 | 7,140 | |||||||||||||||
Equipment expense |
6,836 | 7,549 | 7,330 | 6,735 | 6,050 | |||||||||||||||
Stationery, supplies and postage |
2,705 | 3,183 | 2,865 | 2,696 | 2,693 | |||||||||||||||
Bankcard, loan processing and other costs |
7,562 | 7,810 | 8,281 | 7,663 | 7,818 | |||||||||||||||
Professional services |
5,793 | 7,731 | 8,544 | 7,845 | 5,237 | |||||||||||||||
Amortization of intangibles |
543 | 1,006 | 1,006 | 669 | 234 | |||||||||||||||
FDIC expense |
4,366 | 4,342 | 5,267 | 4,416 | 3,765 | |||||||||||||||
Other operating expense |
18,175 | 19,264 | 19,839 | 16,120 | 12,920 | |||||||||||||||
Total other expenses |
114,445 | 122,452 | 120,670 | 105,723 | 94,013 | |||||||||||||||
Income before income tax expense |
37,786 | 36,335 | 39,257 | 43,620 | 20,788 | |||||||||||||||
Federal income taxes |
10,226 | 9,305 | 10,261 | 12,127 | 5,398 | |||||||||||||||
Net income |
$ | 27,560 | $ | 27,030 | $ | 28,996 | $ | 31,493 | $ | 15,390 | ||||||||||
Other comprehensive income (loss), net of taxes |
338 | (21,188 | ) | (398 | ) | 16,466 | 4,476 | |||||||||||||
Comprehensive income |
$ | 27,898 | $ | 5,842 | $ | 28,598 | $ | 47,959 | $ | 19,866 | ||||||||||
Net income applicable to common shares |
$ | 27,560 | $ | 27,030 | $ | 28,996 | $ | 31,493 | $ | 15,390 | ||||||||||
Adjusted net income used in diluted EPS calculation |
$ | 27,560 | $ | 27,030 | $ | 28,996 | $ | 31,493 | $ | 15,390 | ||||||||||
Weighted-average common shares basic |
108,769 | 108,807 | 108,793 | 98,968 | 87,771 | |||||||||||||||
Weighted-average common shares diluted |
108,770 | 108,808 | 108,794 | 98,969 | 87,777 | |||||||||||||||
Basic net income per share |
$ | 0.25 | $ | 0.25 | $ | 0.27 | $ | 0.32 | $ | 0.18 | ||||||||||
Diluted net income per share |
$ | 0.25 | $ | 0.25 | $ | 0.27 | $ | 0.32 | $ | 0.18 | ||||||||||
Page 11
Quarterly Periods | Annual Period | |||||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||||||
2011 | 2010 | 2010 | 2010 | 2010 | 2010 | |||||||||||||||||||
Allowance for Credit Losses |
||||||||||||||||||||||||
Allowance for noncovered loan losses, beginning of period |
$ | 114,690 | $ | 116,528 | $ | 118,343 | $ | 117,806 | $ | 115,092 | $ | 115,092 | ||||||||||||
Provision for noncovered loan losses |
17,018 | 19,816 | 18,108 | 20,366 | 25,493 | 83,783 | ||||||||||||||||||
Charge-offs |
22,812 | 27,553 | 25,817 | 24,967 | 26,195 | 104,532 | ||||||||||||||||||
Recoveries |
5,794 | 5,899 | 5,894 | 5,138 | 3,416 | 20,347 | ||||||||||||||||||
Net charge-offs |
17,018 | 21,654 | 19,923 | 19,829 | 22,779 | 84,185 | ||||||||||||||||||
Allowance for noncovered loan losses, end of period |
$ | 114,690 | $ | 114,690 | $ | 116,528 | $ | 118,343 | $ | 117,806 | $ | 114,690 | ||||||||||||
Reserve for unfunded lending commitments,
beginning of period |
$ | 8,849 | $ | 7,864 | $ | 6,812 | $ | 6,337 | $ | 5,751 | $ | 5,751 | ||||||||||||
Provision for credit losses |
(1,647 | ) | 985 | 1,052 | 475 | 586 | 3,098 | |||||||||||||||||
Reserve for unfunded lending commitments,
end of period |
$ | 7,202 | $ | 8,849 | $ | 7,864 | $ | 6,812 | $ | 6,337 | $ | 8,849 | ||||||||||||
Allowance for Credit Losses |
$ | 121,892 | $ | 123,539 | $ | 124,392 | $ | 125,155 | $ | 124,143 | $ | 123,539 | ||||||||||||
Ratios (a) |
||||||||||||||||||||||||
Provision for loan losses as a % of average loans |
0.99 | % | 1.14 | % | 1.06 | % | 1.20 | % | 1.52 | % | 1.23 | % | ||||||||||||
Provision for credit losses as a % of average loans |
-0.10 | % | 0.06 | % | 0.06 | % | 0.03 | % | 0.03 | % | 0.05 | % | ||||||||||||
Net charge-offs as a % of average loans |
0.99 | % | 1.25 | % | 1.17 | % | 1.15 | % | 1.36 | % | 1.23 | % | ||||||||||||
Allowance for loan losses as a % of period-end loans |
1.64 | % | 1.65 | % | 1.72 | % | 1.75 | % | 1.72 | % | 1.65 | % | ||||||||||||
Allowance for credit losses as a % of period-end loans |
1.74 | % | 1.78 | % | 1.84 | % | 1.85 | % | 1.82 | % | 1.78 | % | ||||||||||||
Allowance for loan losses as a % of nonperforming loans |
138.67 | % | 109.56 | % | 111.00 | % | 119.62 | % | 105.14 | % | 109.56 | % | ||||||||||||
Allowance for credit losses as a % of nonperforming loans |
147.38 | % | 118.01 | % | 118.49 | % | 126.51 | % | 110.80 | % | 118.01 | % | ||||||||||||
Asset Quality (a) |
||||||||||||||||||||||||
Impaired loans: |
||||||||||||||||||||||||
Nonaccrual |
$ | 71,246 | $ | 89,828 | $ | 91,646 | $ | 84,535 | $ | 94,798 | $ | 89,828 | ||||||||||||
Other nonperforming loans: |
||||||||||||||||||||||||
Nonaccrual |
11,460 | 14,859 | 13,331 | 14,394 | 17,245 | 14,859 | ||||||||||||||||||
Total nonperforming loans |
82,706 | 104,687 | 104,977 | 98,929 | 112,043 | 104,687 | ||||||||||||||||||
Other real estate (ORE) |
30,053 | 18,815 | 10,290 | 10,852 | 11,277 | 18,815 | ||||||||||||||||||
Total nonperforming assets (NPAs) |
$ | 112,759 | $ | 123,502 | $ | 115,267 | $ | 109,781 | $ | 123,320 | $ | 123,502 | ||||||||||||
NPAs as % of period-end loans + ORE |
1.61 | % | 1.78 | % | 1.70 | % | 1.62 | % | 1.80 | % | 1.78 | % | ||||||||||||
Past due 90 days or more & accruing interest |
$ | 5,652 | $ | 22,017 | $ | 36,895 | $ | 36,932 | $ | 21,099 | $ | 22,017 | ||||||||||||
(a) | Excludes acquired loans and loss share receivable with a period end balance of $2.1 billion, $2.3 billion, $2.5 billion, $2.6 billion and $.6 million at March 31, 2011, December 31, 2010, September 30, 2010, June 30,2010 and March 31, 2010, respectively, and ORE covered by an FDIC loss share with a period end balance of $58.7 million, $54.7 million, $53.5 million, $50.5 million and $22.8 million at March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively, which, as required by current accounting guidance, were recorded at fair value on the date of acquisition. |
Page 12
2011 | 2010 | 2010 | 2010 | 2010 | ||||||||||||||||
QUARTERLY OTHER INCOME DETAIL | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | |||||||||||||||
Trust department income |
$ | 5,514 | $ | 5,627 | $ | 5,469 | $ | 5,574 | $ | 5,281 | ||||||||||
Service charges on deposits |
14,910 | 15,938 | 16,859 | 17,737 | 15,366 | |||||||||||||||
Credit card fees |
12,207 | 12,678 | 12,532 | 12,242 | 11,558 | |||||||||||||||
ATM and other service fees |
2,917 | 2,910 | 2,996 | 2,844 | 2,509 | |||||||||||||||
Bank owned life insurance income |
5,241 | 3,192 | 3,219 | 2,886 | 5,652 | |||||||||||||||
Investment services and insurance |
2,447 | 2,300 | 2,688 | 2,535 | 1,928 | |||||||||||||||
Investment securities gains, net |
| 146 | 58 | 651 | | |||||||||||||||
Loan sales and servicing income |
5,012 | 9,221 | 4,006 | 2,975 | 3,237 | |||||||||||||||
Gain on George Washington acquisition |
| | | | 1,041 | |||||||||||||||
Other operating income |
4,508 | 2,299 | 7,308 | 5,765 | 3,328 | |||||||||||||||
Total Other Income |
$ | 52,756 | $ | 54,311 | $ | 55,135 | $ | 53,209 | $ | 49,900 | ||||||||||
2011 | 2010 | 2010 | 2010 | 2010 | ||||||||||||||||
QUARTERLY OTHER EXPENSES DETAIL | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | |||||||||||||||
Salaries, wages, pension and employee benefits |
$ | 59,871 | $ | 62,331 | $ | 58,930 | $ | 51,899 | $ | 48,156 | ||||||||||
Net occupancy expense |
8,594 | 9,236 | 8,608 | 7,680 | 7,140 | |||||||||||||||
Equipment expense |
6,836 | 7,549 | 7,330 | 6,735 | 6,050 | |||||||||||||||
Taxes, other than federal income taxes |
1,960 | 2,021 | 1,680 | 2,236 | 1,938 | |||||||||||||||
Stationery, supplies and postage |
2,705 | 3,183 | 2,865 | 2,696 | 2,693 | |||||||||||||||
Bankcard, loan processing and other costs |
7,562 | 7,810 | 8,281 | 7,663 | 7,818 | |||||||||||||||
Advertising |
2,384 | 3,094 | 2,488 | 2,407 | 1,592 | |||||||||||||||
Professional services |
5,793 | 7,731 | 8,544 | 7,845 | 5,237 | |||||||||||||||
Telephone |
1,486 | 1,579 | 1,561 | 1,267 | 1,133 | |||||||||||||||
Amortization of intangibles |
543 | 1,006 | 1,006 | 669 | 234 | |||||||||||||||
FDIC expense |
4,366 | 4,342 | 5,267 | 4,416 | 3,765 | |||||||||||||||
Other operating expense |
12,345 | 12,570 | 14,110 | 10,210 | 8,257 | |||||||||||||||
Total Other Expenses |
$ | 114,445 | $ | 122,452 | $ | 120,670 | $ | 105,723 | $ | 94,013 | ||||||||||
Page 13
Quarters ended | Year ended | |||||||||||
March 31, | December 31, | |||||||||||
2011 | 2010 | 2010 | ||||||||||
Allowance for noncovered loan losses beginning of period |
$ | 114,690 | $ | 115,092 | $ | 115,092 | ||||||
Loans charged off: |
||||||||||||
Commercial |
7,924 | 8,895 | 39,766 | |||||||||
Mortgage |
1,664 | 1,646 | 5,156 | |||||||||
Installment |
8,091 | 8,805 | 34,054 | |||||||||
Home equity |
2,156 | 2,070 | 7,912 | |||||||||
Credit cards |
2,318 | 4,168 | 13,577 | |||||||||
Leases |
| 20 | 896 | |||||||||
Overdrafts |
659 | 591 | 3,171 | |||||||||
Total |
22,812 | 26,195 | 104,532 | |||||||||
Recoveries: |
||||||||||||
Commercial |
608 | 372 | 1,952 | |||||||||
Mortgage |
89 | 25 | 263 | |||||||||
Installment |
3,688 | 2,017 | 13,047 | |||||||||
Home equity |
467 | 257 | 1,599 | |||||||||
Credit cards |
647 | 473 | 2,199 | |||||||||
Manufactured housing |
31 | 31 | 156 | |||||||||
Leases |
32 | 9 | 267 | |||||||||
Overdrafts |
232 | 232 | 864 | |||||||||
Total |
5,794 | 3,416 | 20,347 | |||||||||
Net charge-offs |
17,018 | 22,779 | 84,185 | |||||||||
Provision for noncovered loan losses |
17,018 | 25,493 | 83,783 | |||||||||
Allowance for noncovered loan losses end of period |
$ | 114,690 | $ | 117,806 | $ | 114,690 | ||||||
Average loans (a) |
$ | 6,963,389 | $ | 6,812,647 | $ | 6,818,962 | ||||||
Ratio to average loans (a): |
||||||||||||
(Annualized) net noncovered charge-offs |
0.99 | % | 1.36 | % | 1.23 | % | ||||||
Provision for noncovered loan losses |
0.99 | % | 1.52 | % | 1.23 | % | ||||||
Noncovered Loans, period-end (excluding acquired loans) (a) |
$ | 6,989,973 | $ | 6,836,451 | $ | 6,937,142 | ||||||
Allowance for credit losses (a): |
$ | 121,892 | $ | 124,143 | $ | 123,539 | ||||||
As a multiple of (annualized) net noncovered charge-offs |
1.77 | 1.34 | 1.47 | |||||||||
Allowance for noncovered loan losses (a): |
||||||||||||
As a percent of period-end loans |
1.64 | % | 1.72 | % | 1.65 | % | ||||||
As a multiple of (annualized) net noncovered charge-offs |
1.66 | 1.28 | 1.36 | |||||||||
(a) | Excludes acquired loans and loss share receivable. |
Page 14
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