Michigan
(State or other jurisdiction
of incorporation)
|
0-7818
(Commission File Number)
|
38-2032782
(IRS Employer
Identification No.)
|
230 West Main Street
Ionia, Michigan
(Address of principal executive office)
|
48846
(Zip Code)
|
o |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
o |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
o |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
o |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Item 2.02.
|
Results of Operations and Financial Condition
|
Item 9.01.
|
Financial Statements and Exhibits
|
Press release dated October 31, 2011.
|
Supplemental data to the Registrant's press release dated October 31, 2011.
|
INDEPENDENT BANK CORPORATION
|
|||||
(Registrant)
|
|||||
Date
|
October 31, 2011
|
By
|
s/Robert N. Shuster |
|
|
Robert N. Shuster, Principal Financial Officer |
Independent Bank Corporation
|
|
230 West Main Street
|
|
Ionia, MI 48846
|
|
616.527.5820
|
Loan Type
|
9/30/2011
|
12/31/2010
|
9/30/2010
|
|||||||||
(Dollars in millions)
|
||||||||||||
Commercial
|
$ | 22.3 | $ | 29.6 | $ | 29.8 | ||||||
Consumer/installment
|
3.1 | 4.2 | 4.9 | |||||||||
Mortgage
|
24.2 | 30.9 | 32.9 | |||||||||
Payment plan receivables (2)
|
1.3 | 2.9 | 2.5 | |||||||||
Total
|
$ | 50.9 | $ | 67.6 | $ | 70.1 | ||||||
Ratio of non-performing loans to total portfolio loans
|
3.13 | % | 3.73 | % | 3.67 | % | ||||||
Ratio of non-performing assets to total assets
|
3.66 | % | 4.22 | % | 4.20 | % | ||||||
Ratio of the allowance for loan losses to non-performing loans
|
115.56 | % | 100.50 | % | 102.31 | % |
|
(1)
|
Excludes loans that are classified as “troubled debt restructurings” that are still performing.
|
|
(2)
|
Represents payment plans for which no payments have been received for 90 days or more and for which Mepco Finance Corporation (“Mepco”) has not yet completed the process to charge the applicable counterparty for the balance due. These balances exclude receivables due from Mepco counterparties related to the cancellation of payment plan receivables.
|
Regulatory Capital Ratio
|
9/30/11
|
12/31/2010
|
Well
Capitalized
Minimum
|
|||||||||
Tier 1 capital to average total assets
|
7.07 | % | 6.58 | % | 5.00 | % | ||||||
Tier 1 capital to risk-weighted assets
|
10.29 | % | 9.77 | % | 6.00 | % | ||||||
Total capital to risk-weighted assets
|
11.57 | % | 11.06 | % | 10.00 | % |
September 30,
2011
|
December 31,
2010
|
|||||||
(unaudited)
|
||||||||
Assets
|
(In thousands, except share amounts)
|
|||||||
Cash and due from banks
|
$ | 58,119 | $ | 48,933 | ||||
Interest bearing deposits
|
297,685 | 336,441 | ||||||
Cash and Cash Equivalents
|
355,804 | 385,374 | ||||||
Trading securities
|
99 | 32 | ||||||
Securities available for sale
|
94,788 | 67,864 | ||||||
Federal Home Loan Bank and Federal Reserve Bank stock, at cost
|
21,005 | 23,630 | ||||||
Loans held for sale, carried at fair value
|
28,709 | 50,098 | ||||||
Loans
|
||||||||
Commercial
|
656,268 | 707,530 | ||||||
Mortgage
|
609,173 | 658,679 | ||||||
Installment
|
227,059 | 245,644 | ||||||
Payment plan receivables
|
135,042 | 201,263 | ||||||
Total Loans
|
1,627,542 | 1,813,116 | ||||||
Allowance for loan losses
|
(58,820 | ) | (67,915 | ) | ||||
Net Loans
|
1,568,722 | 1,745,201 | ||||||
Other real estate and repossessed assets
|
34,029 | 39,413 | ||||||
Property and equipment, net
|
64,142 | 68,359 | ||||||
Bank-owned life insurance
|
49,309 | 47,922 | ||||||
Other intangibles
|
7,951 | 8,980 | ||||||
Capitalized mortgage loan servicing rights
|
11,549 | 14,661 | ||||||
Prepaid FDIC deposit insurance assessment
|
13,308 | 15,899 | ||||||
Vehicle service contract counterparty receivables, net
|
40,133 | 37,270 | ||||||
Accrued income and other assets
|
27,825 | 30,545 | ||||||
Total Assets
|
$ | 2,317,373 | $ | 2,535,248 | ||||
Liabilities and Shareholders' Equity
|
||||||||
Deposits
|
||||||||
Non-interest bearing
|
$ | 505,621 | $ | 451,856 | ||||
Savings and NOW
|
1,010,939 | 995,662 | ||||||
Retail time
|
527,933 | 530,774 | ||||||
Brokered time
|
34,148 | 273,546 | ||||||
Total Deposits
|
2,078,641 | 2,251,838 | ||||||
Other borrowings
|
35,726 | 71,032 | ||||||
Subordinated debentures
|
50,175 | 50,175 | ||||||
Vehicle service contract counterparty payables
|
9,934 | 11,739 | ||||||
Accrued expenses and other liabilities
|
32,095 | 31,379 | ||||||
Total Liabilities
|
2,206,571 | 2,416,163 | ||||||
Shareholders' Equity
|
||||||||
Preferred stock, no par value, 200,000 shares authorized; 74,426 shares issued and outstanding at September 30, 2011 and December 31, 2010; per share liquidation preference: $1,075 at September 30, 2011 and $1,036 at December 31, 2010
|
78,802 | 75,700 | ||||||
Common stock, no par value, 500,000,000 shares authorized; issued and outstanding: 8,413,333 shares at September 30, 2011 and 7,860,483 shares at December 31, 2010
|
248,505 | 246,407 | ||||||
Accumulated deficit
|
(204,491 | ) | (189,902 | ) | ||||
Accumulated other comprehensive loss
|
(12,014 | ) | (13,120 | ) | ||||
Total Shareholders' Equity
|
110,802 | 119,085 | ||||||
Total Liabilities and Shareholders' Equity
|
$ | 2,317,373 | $ | 2,535,248 |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||||||
September 30,
|
June 30,
|
September 30,
|
September 30,
|
|||||||||||||||||
2011
|
2011
|
2010
|
2011
|
2010
|
||||||||||||||||
(unaudited)
|
||||||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Interest Income
|
||||||||||||||||||||
Interest and fees on loans
|
$ | 27,222 | $ | 28,102 | $ | 34,370 | $ | 84,808 | $ | 110,072 | ||||||||||
Interest on securities
|
||||||||||||||||||||
Taxable
|
297 | 344 | 509 | 1,108 | 2,571 | |||||||||||||||
Tax-exempt
|
301 | 298 | 383 | 931 | 1,594 | |||||||||||||||
Other investments
|
367 | 383 | 425 | 1,185 | 1,186 | |||||||||||||||
Total Interest Income
|
28,187 | 29,127 | 35,687 | 88,032 | 115,423 | |||||||||||||||
Interest Expense
|
||||||||||||||||||||
Deposits
|
3,230 | 4,511 | 6,737 | 12,686 | 22,464 | |||||||||||||||
Other borrowings
|
1,183 | 1,232 | 1,965 | 3,738 | 7,372 | |||||||||||||||
Total Interest Expense
|
4,413 | 5,743 | 8,702 | 16,424 | 29,836 | |||||||||||||||
Net Interest Income
|
23,774 | 23,384 | 26,985 | 71,608 | 85,587 | |||||||||||||||
Provision for loan losses
|
6,171 | 4,156 | 9,543 | 21,029 | 39,237 | |||||||||||||||
Net Interest Income After Provision for Loan Losses
|
17,603 | 19,228 | 17,442 | 50,579 | 46,350 | |||||||||||||||
Non-interest Income
|
||||||||||||||||||||
Service charges on deposit accounts
|
4,623 | 4,784 | 5,516 | 13,689 | 16,624 | |||||||||||||||
Interchange income
|
2,356 | 2,308 | 2,075 | 6,832 | 6,097 | |||||||||||||||
Net gains (losses) on assets
|
||||||||||||||||||||
Mortgage loans
|
2,025 | 1,793 | 3,829 | 5,753 | 8,044 | |||||||||||||||
Securities
|
(57 | ) | 115 | (3 | ) | 271 | 1,625 | |||||||||||||
Other than temporary loss on securities available for sale
|
||||||||||||||||||||
Total impairment loss
|
(4 | ) | 327 | (316 | ) | (146 | ) | (434 | ) | |||||||||||
Loss recognized in other comprehensive income
|
- | (327 | ) | - | - | - | ||||||||||||||
Net impairment loss recognized in earnings
|
(4 | ) | - | (316 | ) | (146 | ) | (434 | ) | |||||||||||
Mortgage loan servicing
|
(2,655 | ) | (126 | ) | (1,377 | ) | (1,885 | ) | (2,988 | ) | ||||||||||
Title insurance fees
|
299 | 318 | 533 | 1,090 | 1,393 | |||||||||||||||
Decrease in fair value of U.S. Treasury warrant
|
29 | 642 | - | 1,025 | - | |||||||||||||||
Gain on extinguishment of debt
|
- | - | (20 | ) | - | 18,066 | ||||||||||||||
Other
|
2,639 | 2,622 | 2,241 | 7,793 | 6,177 | |||||||||||||||
Total Non-interest Income
|
9,255 | 12,456 | 12,478 | 34,422 | 54,604 | |||||||||||||||
Non-interest Expense
|
||||||||||||||||||||
Compensation and employee benefits
|
12,654 | 13,029 | 12,806 | 38,032 | 39,449 | |||||||||||||||
Loan and collection
|
2,658 | 3,580 | 3,805 | 10,105 | 11,376 | |||||||||||||||
Occupancy, net
|
2,651 | 2,663 | 2,721 | 8,415 | 8,225 | |||||||||||||||
Data processing
|
2,502 | 2,415 | 2,248 | 7,227 | 7,187 | |||||||||||||||
Vehicle service contract counterparty contingencies
|
1,345 | 1,311 | 5,968 | 5,002 | 14,247 | |||||||||||||||
Furniture, fixtures and equipment
|
1,308 | 1,502 | 1,591 | 4,228 | 4,958 | |||||||||||||||
Net losses on other real estate and repossessed assets
|
1,931 | 777 | 1,296 | 4,114 | 4,879 | |||||||||||||||
Credit card and bank service fees
|
869 | 1,013 | 1,378 | 2,929 | 4,553 | |||||||||||||||
FDIC deposit insurance
|
885 | 652 | 1,651 | 2,772 | 5,216 | |||||||||||||||
Communications
|
863 | 889 | 1,054 | 2,700 | 3,142 | |||||||||||||||
Legal and professional
|
751 | 801 | 831 | 2,330 | 2,861 | |||||||||||||||
Advertising
|
740 | 670 | 692 | 1,964 | 2,145 | |||||||||||||||
Costs (recoveries) related to unfunded lending commitments
|
(172 | ) | 89 | (807 | ) | 12 | (471 | ) | ||||||||||||
Other
|
2,477 | 2,514 | 2,274 | 7,405 | 6,836 | |||||||||||||||
Total Non-interest Expense
|
31,462 | 31,905 | 37,508 | 97,235 | 114,603 | |||||||||||||||
Loss Before Income Tax
|
(4,604 | ) | (221 | ) | (7,588 | ) | (12,234 | ) | (13,649 | ) | ||||||||||
Income tax benefit
|
(482 | ) | (258 | ) | (978 | ) | (748 | ) | (1,086 | ) | ||||||||||
Net Income (Loss)
|
$ | (4,122 | ) | $ | 37 | $ | (6,610 | ) | (11,486 | ) | $ | (12,563 | ) | |||||||
Preferred stock dividends and discount accretion
|
1,043 | 1,051 | 1,109 | $ | 3,102 | 3,299 | ||||||||||||||
Net Loss Applicable to Common Stock
|
$ | (5,165 | ) | $ | (1,014 | ) | $ | (7,719 | ) | $ | (14,588 | ) | $ | (15,862 | ) |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||||||
September 30,
|
June 30,
|
September 30,
|
September 30,
|
|||||||||||||||||
2011
|
2011
|
2010
|
2011
|
2010
|
||||||||||||||||
(unaudited)
|
||||||||||||||||||||
Per Common Share Data
|
||||||||||||||||||||
Net Loss Per Common Share (A)
|
||||||||||||||||||||
Basic (B)
|
$ | (.61 | ) | $ | (.12 | ) | $ | (1.03 | ) | $ | (1.78 | ) | $ | (3.71 | ) | |||||
Diluted (C)
|
(.61 | ) | (.12 | ) | (1.03 | ) | (1.78 | ) | (3.71 | ) | ||||||||||
Cash dividends declared per common share
|
.00 | .00 | .00 | .00 | .00 | |||||||||||||||
Selected Ratios (D)
|
||||||||||||||||||||
As a Percent of Average Interest-Earning Assets
|
||||||||||||||||||||
Interest income
|
5.44 | % | 5.43 | % | 5.63 | % | 5.45 | % | 5.89 | % | ||||||||||
Interest expense
|
0.85 | 1.07 | 1.37 | 1.02 | 1.52 | |||||||||||||||
Net interest income
|
4.59 | 4.36 | 4.26 | 4.43 | 4.37 | |||||||||||||||
Net Loss to (A)
|
||||||||||||||||||||
Average common shareholders’ equity
|
(56.07 | )% | (11.94 | )% | (60.51 | )% | (52.57 | )% | (58.95 | )% | ||||||||||
Average assets
|
(0.89 | ) | (0.17 | ) | (1.11 | ) | (0.81 | ) | (0.75 | ) | ||||||||||
Average Shares
|
||||||||||||||||||||
Basic (B)
|
8,400,950 | 8,287,012 | 7,512,508 | 8,208,793 | 4,274,752 | |||||||||||||||
Diluted (C)
|
50,999,510 | 49,640,081 | 56,407,159 | 50,783,918 | 34,366,555 |
September 30,
2011
|
December 31,
2010
|
|||||||
(Dollars in thousands) | ||||||||
Non-accrual loans
|
$ | 50,586 | $ | 66,652 | ||||
Loans 90 days or more past due and still accruing interest
|
313 | 928 | ||||||
Total non-performing loans
|
50,899 | 67,580 | ||||||
Other real estate and repossessed assets
|
34,029 | 39,413 | ||||||
Total non-performing assets
|
$ | 84,928 | $ | 106,993 | ||||
As a percent of Portfolio Loans
|
||||||||
Non-performing loans
|
3.13 | % | 3.73 | % | ||||
Allowance for loan losses
|
3.61 | 3.75 | ||||||
Non-performing assets to total assets
|
3.66 | 4.22 | ||||||
Allowance for loan losses as a percent of non-performing loans
|
115.56 | 100.50 |
(1)
|
Excludes loans classified as “troubled debt restructured” that are not past due and vehicle service contract counterparty receivables, net.
|
September 30, 2011
|
|||||||||||||
Commercial
|
Retail
|
Total
|
|||||||||||
(In thousands)
|
|||||||||||||
Performing TDR’s
|
$ | 22,273 | $ | 90,378 | $ | 112,651 | |||||||
Non-performing TDR’s (1)
|
4,552 | 13,753 | (2) | 18,305 | |||||||||
Total
|
$ | 26,825 | $ | 104,131 | $ | 130,956 |
December 31, 2010
|
|||||||||||||
Commercial
|
Retail
|
Total
|
|||||||||||
(In thousands)
|
|||||||||||||
Performing TDR’s
|
$ | 16,957 | $ | 96,855 | $ | 113,812 | |||||||
Non-performing TDR’s (1)
|
7,814 | 16,616 | (2) | 24,430 | |||||||||
Total
|
$ | 24,771 | $ | 113,471 | $ | 138,242 |
(1)
|
Included in non-performing loans table above.
|
(2)
|
Also includes loans on non-accrual at the time of modification until six payments are received on a timely basis.
|
Nine months ended
September 30, |
||||||||||||||||
2011
|
2010
|
|||||||||||||||
Loans
|
Unfunded
Commitments |
Loans
|
Unfunded
Commitments |
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Balance at beginning of period
|
$ | 67,915 | $ | 1,322 | $ | 81,717 | $ | 1,858 | ||||||||
Additions (deduction)
|
||||||||||||||||
Provision for loan losses
|
21,029 | - | 39,237 | - | ||||||||||||
Recoveries credited to allowance
|
3,080 | - | 2,656 | - | ||||||||||||
Loans charged against the allowance
|
(33,204 | ) | - | (51,866 | ) | - | ||||||||||
Additions (deductions) included in non-interest expense
|
- | 12 | - | (471 | ) | |||||||||||
Balance at end of period
|
$ | 58,820 | $ | 1,334 | $ | 71,744 | $ | 1,387 | ||||||||
Net loans charged against the allowance to average Portfolio Loans (annualized)
|
2.35 | % | 3.13 | % |
September 30, 2011 | December 31, 2010 | |||||||||||||||||
Amount
|
Average
Maturity |
Rate
|
Amount
|
Average
Maturity |
Rate
|
|||||||||||||
(Dollars in thousands)
|
||||||||||||||||||
Brokered CDs
|
$ | 34,148 |
1.0 years
|
1.82 | % | $ | 273,546 |
2.4 years
|
2.89 | % | ||||||||
Fixed rate FHLB advances
|
32,719 |
3.3 years
|
4.13 | 21,022 |
5.9 years
|
6.34 | ||||||||||||
Variable rate FHLB advances(1)
|
3,000 |
2.6 years
|
0.35 | 50,000 |
0.8 years
|
0.41 | ||||||||||||
Total
|
$ | 69,867 |
2.1 years
|
2.84 | % | $ | 344,568 |
2.4 years
|
2.74 | % |
(1)
|
Certain of these items have had their average maturity and rate altered through the use of derivative instruments, including pay-fixed interest rate swaps.
|
September 30,
2011
|
December 31,
2010
|
|||||||
(In thousands)
|
||||||||
Subordinated debentures
|
$ | 50,175 | $ | 50,175 | ||||
Amount not qualifying as regulatory capital
|
(1,507 | ) | (1,507 | ) | ||||
Amount qualifying as regulatory capital
|
48,668 | 48,668 | ||||||
Shareholders’ Equity
|
||||||||
Preferred stock
|
78,802 | 75,700 | ||||||
Common stock
|
248,505 | 246,407 | ||||||
Accumulated deficit
|
(204,491 | ) | (189,902 | ) | ||||
Accumulated other comprehensive loss
|
(12,014 | ) | (13,120 | ) | ||||
Total shareholders’ equity
|
110,802 | 119,085 | ||||||
Total capitalization
|
$ | 159,470 | $ | 167,753 |
Three months ended |
Nine months ended
|
|||||||||||||||||||
September 30,
|
June 30,
|
September 30,
|
September 30,
|
|||||||||||||||||
2011
|
2011
|
2010
|
2011
|
2010
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Service charges on deposit accounts
|
$ | 4,623 | $ | 4,784 | $ | 5,516 | $ | 13,689 | $ | 16,624 | ||||||||||
Interchange income
|
2,356 | 2,308 | 2,075 | 6,832 | 6,097 | |||||||||||||||
Net gains (losses) on assets
|
||||||||||||||||||||
Mortgage loans
|
2,025 | 1,793 | 3,829 | 5,753 | 8,044 | |||||||||||||||
Securities
|
(57 | ) | 115 | (3 | ) | 271 | 1,625 | |||||||||||||
Other than temporary loss on securities available for sale
|
||||||||||||||||||||
Total impairment loss
|
(4 | ) | 327 | (316 | ) | (146 | ) | (434 | ) | |||||||||||
Loss recognized in other comprehensive income
|
- | (327 | ) | - | - | - | ||||||||||||||
Net impairment loss recognized in earnings
|
(4 | ) | - | (316 | ) | (146 | ) | (434 | ) | |||||||||||
Mortgage loan servicing
|
(2,655 | ) | (126 | ) | (1,377 | ) | (1,885 | ) | (2,988 | ) | ||||||||||
Investment and insurance commissions
|
534 | 524 | 506 | 1,613 | 1,304 | |||||||||||||||
Bank owned life insurance
|
496 | 464 | 502 | 1,385 | 1,453 | |||||||||||||||
Title insurance fees
|
299 | 318 | 533 | 1,090 | 1,393 | |||||||||||||||
Decrease in fair value of U.S. Treasury warrant
|
29 | 642 | - | 1,025 | - | |||||||||||||||
Gain on extinguishment of debt
|
- | - | (20 | ) | - | 18,066 | ||||||||||||||
Other
|
1,609 | 1,634 | 1,233 | 4,795 | 3,420 | |||||||||||||||
Total non-interest income
|
$ | 9,255 | $ | 12,456 | $ | 12,478 | $ | 34,422 | $ | 54,604 |
Three months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
(In thousands) | ||||||||||||||||
Balance at beginning of period
|
$ | 14,741 | $ | 13,022 | $ | 14,661 | $ | 15,273 | ||||||||
Originated servicing rights capitalized
|
573 | 1,084 | 2,068 | 2,539 | ||||||||||||
Amortization
|
(688 | ) | (1,104 | ) | (2,011 | ) | (2,495 | ) | ||||||||
Change in valuation allowance
|
(3,077 | ) | (1,335 | ) | (3,169 | ) | (3,650 | ) | ||||||||
Balance at end of period
|
$ | 11,549 | $ | 11,667 | $ | 11,549 | $ | 11,667 | ||||||||
Valuation allowance at end of period
|
$ | 6,379 | $ | 5,952 | $ | 6,379 | $ | 5,952 |
Three months ended
|
Nine months ended
|
|||||||||||||||||||
September 30,
|
June 30,
|
September 30,
|
September 30,
|
|||||||||||||||||
2011
|
2011
|
2010
|
2011
|
2010
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Mortgage loans originated
|
$ | 89,526 | $ | 74,612 | $ | 153,920 | $ | 259,711 | $ | 337,827 | ||||||||||
Mortgage loans sold
|
80,993 | 63,369 | 124,383 | 265,850 | 299,674 | |||||||||||||||
Mortgage loans sold with servicing rights released
|
25,179 | 18,428 | 20,411 | 60,179 | 53,022 | |||||||||||||||
Net gains on the sale of mortgage loans
|
2,025 | 1,793 | 3,829 | 5,753 | 8,044 | |||||||||||||||
Net gains as a percent of mortgage
|
||||||||||||||||||||
loans sold (“Loan Sales Margin”)
|
2.50 | % | 2.83 | % | 3.08 | % | 2.16 | % | 2.68 | % | ||||||||||
Fair value adjustments included in the Loan
|
||||||||||||||||||||
Sales Margin
|
0.15 | 0.63 | 0.83 | (0.14 | ) | 0.45 |
Three months ended
|
Nine months ended
|
|||||||||||||||||||
September 30,
|
June 30,
|
September 30,
|
September 30,
|
|||||||||||||||||
2011
|
2011
|
2010
|
2011
|
2010
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Compensation
|
$ | 10,158 | $ | 10,020 | $ | 10,336 | $ | 29,990 | $ | 30,754 | ||||||||||
Performance-based compensation
|
281 | 334 | 357 | 772 | 1,656 | |||||||||||||||
Payroll taxes and employee benefits
|
2,215 | 2,675 | 2,113 | 7,270 | 7,039 | |||||||||||||||
Compensation and employee benefits
|
12,654 | 13,029 | 12,806 | 38,032 | 39,449 | |||||||||||||||
Loan and collection
|
2,658 | 3,580 | 3,805 | 10,105 | 11,376 | |||||||||||||||
Occupancy, net
|
2,651 | 2,663 | 2,721 | 8,415 | 8,225 | |||||||||||||||
Data processing
|
2,502 | 2,415 | 2,248 | 7,227 | 7,187 | |||||||||||||||
Vehicle service contract counterparty contingencies
|
1,345 | 1,311 | 5,968 | 5,002 | 14,247 | |||||||||||||||
Furniture, fixtures and equipment
|
1,308 | 1,502 | 1,591 | 4,228 | 4,958 | |||||||||||||||
Net losses on other real estate and repossessed assets
|
1,931 | 777 | 1,296 | 4,114 | 4,879 | |||||||||||||||
Credit card and bank service fees
|
869 | 1,013 | 1,378 | 2,929 | 4,553 | |||||||||||||||
FDIC deposit insurance
|
885 | 652 | 1,651 | 2,772 | 5,216 | |||||||||||||||
Communications
|
863 | 889 | 1,054 | 2,700 | 3,142 | |||||||||||||||
Legal and professional fees
|
751 | 801 | 831 | 2,330 | 2,861 | |||||||||||||||
Advertising
|
740 | 670 | 692 | 1,964 | 2,145 | |||||||||||||||
Supplies
|
376 | 392 | 429 | 1,170 | 1,237 | |||||||||||||||
Amortization of intangible assets
|
343 | 343 | 320 | 1,029 | 965 | |||||||||||||||
Costs (recoveries) related to unfunded lending commitments
|
(172 | ) | 89 | (807 | ) | 12 | (471 | ) | ||||||||||||
Other
|
1,758 | 1,779 | 1,525 | 5,206 | 4,634 | |||||||||||||||
Total non-interest expense
|
$ | 31,462 | $ | 31,905 | $ | 37,508 | $ | 97,235 | $ | 114,603 |
Three Months Ended
September 30, |
||||||||||||||||||||||||
2011
|
2010
|
|||||||||||||||||||||||
Average
Balance |
Interest
|
Rate(3)
|
Average
Balance |
Interest
|
Rate(3)
|
|||||||||||||||||||
Assets (1)
|
(Dollars in thousands)
|
|||||||||||||||||||||||
Taxable loans
|
$ | 1,668,940 | $ | 27,140 | 6.47 | % | $ | 2,012,966 | $ | 34,269 | 6.77 | % | ||||||||||||
Tax-exempt loans (2)
|
7,728 | 82 | 4.21 | 9,398 | 101 | 4.26 | ||||||||||||||||||
Taxable securities
|
49,911 | 297 | 2.36 | 76,935 | 509 | 2.62 | ||||||||||||||||||
Tax-exempt securities (2)
|
29,259 | 301 | 4.08 | 35,441 | 383 | 4.29 | ||||||||||||||||||
Cash – interest bearing
|
282,170 | 179 | 0.25 | 358,183 | 260 | 0.29 | ||||||||||||||||||
Other investments
|
21,005 | 188 | 3.55 | 26,443 | 165 | 2.48 | ||||||||||||||||||
Interest Earning Assets
|
2,059,013 | 28,187 | 5.44 | 2,519,366 | 35,687 | 5.63 | ||||||||||||||||||
Cash and due from banks
|
56,233 | 53,518 | ||||||||||||||||||||||
Other assets, net
|
192,282 | 173,850 | ||||||||||||||||||||||
Total Assets
|
$ | 2,307,528 | $ | 2,746,734 | ||||||||||||||||||||
Liabilities
|
||||||||||||||||||||||||
Savings and NOW
|
$ | 1,008,525 | 608 | 0.24 | $ | 1,092,202 | 648 | 0.24 | ||||||||||||||||
Time deposits
|
577,723 | 2,622 | 1.80 | 938,930 | 6,089 | 2.57 | ||||||||||||||||||
Other borrowings
|
86,696 | 1,183 | 5.41 | 183,589 | 1,965 | 4.25 | ||||||||||||||||||
Interest Bearing Liabilities
|
1,672,944 | 4,413 | 1.05 | 2,214,721 | 8,702 | 1.56 | ||||||||||||||||||
Demand deposits
|
477,093 | 361,517 | ||||||||||||||||||||||
Other liabilities
|
42,614 | 48,905 | ||||||||||||||||||||||
Shareholders’ equity
|
114,877 | 121,591 | ||||||||||||||||||||||
Total liabilities and shareholders’ equity
|
$ | 2,307,528 | $ | 2,746,734 | ||||||||||||||||||||
Net Interest Income
|
$ | 23,774 | $ | 26,985 | ||||||||||||||||||||
Net Interest Income as a Percent of Earning Assets
|
4.59 | % | 4.26 | % |
(1)
|
All domestic, except for $0.01 million and $0.2 million for the three months ended September 30, 2011 and 2010, respectively, of average payment plan receivables included in taxable loans for customers domiciled in Canada.
|
(2)
|
Interest on tax-exempt loans and securities is not presented on a fully tax equivalent basis due to the current net operating loss carryforward position and the deferred tax asset valuation allowance.
|
(3)
|
Annualized.
|
Nine Months Ended
September 30,
|
||||||||||||||||||||||||
2011
|
2010
|
|||||||||||||||||||||||
Average
Balance |
Interest
|
Rate(3)
|
Average
Balance |
Interest
|
Rate(3)
|
|||||||||||||||||||
Assets (1)
|
(Dollars in thousands)
|
|||||||||||||||||||||||
Taxable loans
|
$ | 1,728,076 | $ | 84,554 | 6.54 | % | $ | 2,126,705 | $ | 109,760 | 6.90 | % | ||||||||||||
Tax-exempt loans (2)
|
8,064 | 254 | 4.21 | 9,795 | 312 | 4.26 | ||||||||||||||||||
Taxable securities
|
51,010 | 1,108 | 2.90 | 86,830 | 2,571 | 3.96 | ||||||||||||||||||
Tax-exempt securities (2)
|
30,087 | 931 | 4.14 | 49,516 | 1,594 | 4.30 | ||||||||||||||||||
Cash – interest bearing
|
319,288 | 605 | 0.25 | 319,548 | 609 | 0.25 | ||||||||||||||||||
Other investments
|
22,486 | 580 | 3.45 | 27,094 | 577 | 2.85 | ||||||||||||||||||
Interest Earning Assets
|
2,159,011 | 88,032 | 5.45 | 2,619,488 | 115,423 | 5.89 | ||||||||||||||||||
Cash and due from banks
|
52,475 | 53,742 | ||||||||||||||||||||||
Other assets, net
|
191,215 | 160,960 | ||||||||||||||||||||||
Total Assets
|
$ | 2,402,701 | $ | 2,834,190 | ||||||||||||||||||||
Liabilities
|
||||||||||||||||||||||||
Savings and NOW
|
$ | 1,005,436 | 1,805 | 0.24 | $ | 1,088,437 | 2,181 | 0.27 | ||||||||||||||||
Time deposits
|
687,043 | 10,881 | 2.12 | 1,028,119 | 20,283 | 2.64 | ||||||||||||||||||
Other borrowings
|
95,337 | 3,738 | 5.24 | 212,901 | 7,372 | 4.63 | ||||||||||||||||||
Interest Bearing Liabilities
|
1,787,816 | 16,424 | 1.23 | 2,329,457 | 29,836 | 1.71 | ||||||||||||||||||
Demand deposits
|
456,514 | 343,340 | ||||||||||||||||||||||
Other liabilities
|
43,977 | 55,486 | ||||||||||||||||||||||
Shareholders’ equity
|
114,394 | 105,907 | ||||||||||||||||||||||
Total liabilities and shareholders’ equity
|
$ | 2,402,701 | $ | 2,834,190 | ||||||||||||||||||||
Net Interest Income
|
$ | 71,608 | $ | 85,587 | ||||||||||||||||||||
Net Interest Income as a Percent of Earning Assets
|
4.43 | % | 4.37 | % |
(1)
|
All domestic, except for $0.02 million and $0.5 million for the nine months ended September 30, 2011 and 2010, respectively, of average payment plan receivables included in taxable loans for customers domiciled in Canada.
|
(2)
|
Interest on tax-exempt loans and securities is not presented on a fully tax equivalent basis due to the current net operating loss carryforward position and the deferred tax asset valuation allowance.
|
(3)
|
Annualized.
|
Total Commercial Loans
|
||||||||||||||||||||
Watch Credits
|
Percent of Loan
|
|||||||||||||||||||
Loan Category
|
All Loans
|
Performing
|
Non- performing
|
Total
|
Category in Watch Credit
|
|||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Land
|
$ | 18,872 | $ | 3,992 | $ | 2,441 | $ | 6,433 | 34.1 | % | ||||||||||
Land Development
|
19,854 | 9,855 | 1,707 | 11,562 | 58.2 | |||||||||||||||
Construction
|
18,422 | 4,058 | 396 | 4,454 | 24.2 | |||||||||||||||
Income Producing
|
278,912 | 57,929 | 10,175 | 68,104 | 24.4 | |||||||||||||||
Owner Occupied
|
174,978 | 27,574 | 4,891 | 32,465 | 18.6 | |||||||||||||||
Total Commercial Real Estate Loans (1)
|
$ | 511,038 | $ | 103,408 | 19,610 | $ | 123,018 | 24.1 | ||||||||||||
Other Commercial Loans(1)
|
$ | 143,284 | $ | 18,585 | 2,717 | $ | 21,302 | 14.9 | ||||||||||||
Total non-performing commercial loans
|
$ | 22,327 |
|
(1)
|
The total of these two categories is different than the September 30, 2011, Consolidated Statement of Financial Condition due primarily to loans in process.
|