ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
PENNSYLVANIA | 23-2195389 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
One Penn Square, P.O. Box 4887, Lancaster, Pennsylvania | 17604 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | ý | Accelerated filer | ¨ | |||
Non-accelerated filer | ¨ | Smaller reporting company | ¨ |
Description | Page | ||
PART I. FINANCIAL INFORMATION | |||
(a) | |||
(b) | |||
(c) | |||
(d) | |||
(e) | |||
(f) | |||
June 30, 2012 | December 31, 2011 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Cash and due from banks | $ | 242,811 | $ | 292,598 | |||
Interest-bearing deposits with other banks | 118,468 | 175,336 | |||||
Loans held for sale | 71,406 | 47,009 | |||||
Investment securities: | |||||||
Held to maturity (estimated fair value of $6,571 in 2012 and $6,669 in 2011) | 6,562 | 6,669 | |||||
Available for sale | 2,864,270 | 2,673,298 | |||||
Loans, net of unearned income | 11,982,833 | 11,968,970 | |||||
Less: Allowance for loan losses | (235,737 | ) | (256,471 | ) | |||
Net Loans | 11,747,096 | 11,712,499 | |||||
Premises and equipment | 222,083 | 212,274 | |||||
Accrued interest receivable | 48,283 | 51,098 | |||||
Goodwill | 535,980 | 536,005 | |||||
Intangible assets | 6,642 | 8,204 | |||||
Other assets | 474,149 | 655,518 | |||||
Total Assets | $ | 16,337,750 | $ | 16,370,508 | |||
LIABILITIES | |||||||
Deposits: | |||||||
Noninterest-bearing | $ | 2,748,269 | $ | 2,588,034 | |||
Interest-bearing | 9,484,215 | 9,937,705 | |||||
Total Deposits | 12,232,484 | 12,525,739 | |||||
Short-term borrowings: | |||||||
Federal funds purchased | 566,167 | 253,470 | |||||
Other short-term borrowings | 365,514 | 343,563 | |||||
Total Short-Term Borrowings | 931,681 | 597,033 | |||||
Accrued interest payable | 23,725 | 25,686 | |||||
Other liabilities | 199,867 | 189,362 | |||||
Federal Home Loan Bank advances and long-term debt | 908,809 | 1,040,149 | |||||
Total Liabilities | 14,296,566 | 14,377,969 | |||||
SHAREHOLDERS’ EQUITY | |||||||
Common stock, $2.50 par value, 600 million shares authorized, 216.6 million shares issued in 2012 and 216.2 million shares issued in 2011 | 541,587 | 540,386 | |||||
Additional paid-in capital | 1,425,037 | 1,423,727 | |||||
Retained earnings | 313,970 | 264,059 | |||||
Accumulated other comprehensive income | 482 | 7,955 | |||||
Treasury stock, at cost, 15.8 million shares in 2012 and 16.0 million shares in 2011 | (239,892 | ) | (243,588 | ) | |||
Total Shareholders’ Equity | 2,041,184 | 1,992,539 | |||||
Total Liabilities and Shareholders’ Equity | $ | 16,337,750 | $ | 16,370,508 | |||
See Notes to Consolidated Financial Statements |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
INTEREST INCOME | |||||||||||||||
Loans, including fees | $ | 141,541 | $ | 149,751 | $ | 285,887 | $ | 299,247 | |||||||
Investment securities: | |||||||||||||||
Taxable | 18,624 | 20,749 | 37,285 | 42,556 | |||||||||||
Tax-exempt | 2,596 | 3,146 | 5,297 | 6,321 | |||||||||||
Dividends | 641 | 696 | 1,340 | 1,379 | |||||||||||
Loans held for sale | 538 | 492 | 969 | 992 | |||||||||||
Other interest income | 45 | 101 | 98 | 134 | |||||||||||
Total Interest Income | 163,985 | 174,935 | 330,876 | 350,629 | |||||||||||
INTEREST EXPENSE | |||||||||||||||
Deposits | 14,743 | 21,775 | 30,993 | 45,061 | |||||||||||
Short-term borrowings | 411 | 168 | 692 | 422 | |||||||||||
Long-term debt | 11,301 | 12,347 | 22,966 | 24,938 | |||||||||||
Total Interest Expense | 26,455 | 34,290 | 54,651 | 70,421 | |||||||||||
Net Interest Income | 137,530 | 140,645 | 276,225 | 280,208 | |||||||||||
Provision for credit losses | 25,500 | 36,000 | 53,500 | 74,000 | |||||||||||
Net Interest Income After Provision for Credit Losses | 112,030 | 104,645 | 222,725 | 206,208 | |||||||||||
NON-INTEREST INCOME | |||||||||||||||
Service charges on deposit accounts | 15,367 | 14,332 | 30,209 | 27,637 | |||||||||||
Other service charges and fees | 11,507 | 12,709 | 22,062 | 24,191 | |||||||||||
Mortgage banking income | 11,143 | 6,049 | 21,193 | 11,512 | |||||||||||
Investment management and trust services | 9,822 | 9,638 | 19,199 | 18,842 | |||||||||||
Other | 3,987 | 3,386 | 9,592 | 7,108 | |||||||||||
Investment securities gains (losses), net: | |||||||||||||||
Other-than-temporary impairment losses | (57 | ) | (71 | ) | (57 | ) | (1,092 | ) | |||||||
Less: Portion of gain recognized in other comprehensive income (before taxes) | — | (322 | ) | — | (592 | ) | |||||||||
Net other-than-temporary impairment losses | (57 | ) | (393 | ) | (57 | ) | (1,684 | ) | |||||||
Net gains on sales of investment securities | 1,595 | 58 | 2,846 | 3,634 | |||||||||||
Investment securities gains (losses), net | 1,538 | (335 | ) | 2,789 | 1,950 | ||||||||||
Total Non-Interest Income | 53,364 | 45,779 | 105,044 | 91,240 | |||||||||||
NON-INTEREST EXPENSES | |||||||||||||||
Salaries and employee benefits | 60,091 | 56,070 | 120,451 | 110,378 | |||||||||||
Net occupancy expense | 11,205 | 10,874 | 22,140 | 22,240 | |||||||||||
Data processing | 3,759 | 3,214 | 7,447 | 6,586 | |||||||||||
Equipment expense | 3,185 | 3,377 | 6,554 | 6,509 | |||||||||||
FDIC insurance expense | 3,002 | 3,264 | 6,023 | 8,018 | |||||||||||
Professional fees | 2,984 | 3,102 | 5,566 | 5,951 | |||||||||||
Other real estate owned and repossession expense | 2,823 | 982 | 5,751 | 2,253 | |||||||||||
Marketing | 2,583 | 1,863 | 5,055 | 4,699 | |||||||||||
Software | 2,272 | 1,973 | 4,447 | 4,004 | |||||||||||
Operating risk loss | 2,055 | (8 | ) | 5,423 | (470 | ) | |||||||||
Intangible amortization | 761 | 1,172 | 1,562 | 2,350 | |||||||||||
Other | 17,423 | 15,002 | 32,435 | 29,231 | |||||||||||
Total Non-Interest Expenses | 112,143 | 100,885 | 222,854 | 201,749 | |||||||||||
Income Before Income Taxes | 53,251 | 49,539 | 104,915 | 95,699 | |||||||||||
Income taxes | 13,360 | 13,154 | 26,892 | 25,529 | |||||||||||
Net Income | $ | 39,891 | $ | 36,385 | $ | 78,023 | $ | 70,170 | |||||||
PER SHARE: | |||||||||||||||
Net Income (Basic) | $ | 0.20 | $ | 0.18 | $ | 0.39 | $ | 0.35 | |||||||
Net Income (Diluted) | 0.20 | 0.18 | 0.39 | 0.35 | |||||||||||
Cash Dividends | 0.07 | 0.05 | 0.14 | 0.09 | |||||||||||
See Notes to Consolidated Financial Statements |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Net Income | $ | 39,891 | $ | 36,385 | $ | 78,023 | $ | 70,170 | |||||||
Other Comprehensive Income (Loss), net of tax: | |||||||||||||||
Unrealized (loss) gain on securities | (10,704 | ) | 13,451 | (6,120 | ) | 17,019 | |||||||||
Reclassification adjustment for securities (gains) losses included in net income | (999 | ) | 218 | (1,812 | ) | (1,267 | ) | ||||||||
Non-credit related unrealized gain (loss) on other-than-temporarily impaired debt securities | (172 | ) | 480 | (37 | ) | 729 | |||||||||
Unrealized gain on derivative financial instruments | 34 | 34 | 68 | 68 | |||||||||||
Amortization (accretion) of net unrecognized pension and postretirement items | 214 | (12 | ) | 428 | (24 | ) | |||||||||
Other Comprehensive Income (Loss) | (11,627 | ) | 14,171 | (7,473 | ) | 16,525 | |||||||||
Total Comprehensive Income | $ | 28,264 | $ | 50,556 | $ | 70,550 | $ | 86,695 | |||||||
See Notes to Consolidated Financial Statements |
Common Stock | Retained Earnings | Treasury Stock | Total | |||||||||||||||||||||||
Shares Outstanding | Amount | Additional Paid-in Capital | Accumulated Other Comprehensive Income | |||||||||||||||||||||||
Balance at December 31, 2011 | 200,164 | $ | 540,386 | $ | 1,423,727 | $ | 264,059 | $ | 7,955 | $ | (243,588 | ) | $ | 1,992,539 | ||||||||||||
Net income | 78,023 | 78,023 | ||||||||||||||||||||||||
Other comprehensive loss | (7,473 | ) | (7,473 | ) | ||||||||||||||||||||||
Stock issued, including related tax benefits | 716 | 1,201 | (1,740 | ) | 3,696 | 3,157 | ||||||||||||||||||||
Stock-based compensation awards | 3,050 | 3,050 | ||||||||||||||||||||||||
Common stock cash dividends - $0.14 per share | (28,112 | ) | (28,112 | ) | ||||||||||||||||||||||
Balance at June 30, 2012 | 200,880 | $ | 541,587 | $ | 1,425,037 | $ | 313,970 | $ | 482 | $ | (239,892 | ) | $ | 2,041,184 | ||||||||||||
Balance at December 31, 2010 | 199,050 | $ | 538,492 | $ | 1,420,127 | $ | 158,453 | $ | 12,495 | $ | (249,178 | ) | $ | 1,880,389 | ||||||||||||
Net income | 70,170 | 70,170 | ||||||||||||||||||||||||
Other comprehensive income | 16,525 | 16,525 | ||||||||||||||||||||||||
Stock issued, including related tax benefits | 320 | 431 | 398 | 2,247 | 3,076 | |||||||||||||||||||||
Stock-based compensation awards | 1,101 | 1,101 | ||||||||||||||||||||||||
Common stock cash dividends - $0.09 per share | (17,952 | ) | (17,952 | ) | ||||||||||||||||||||||
Balance at June 30, 2011 | 199,370 | $ | 538,923 | $ | 1,421,626 | $ | 210,671 | $ | 29,020 | $ | (246,931 | ) | $ | 1,953,309 | ||||||||||||
See Notes to Consolidated Financial Statements |
Six Months Ended June 30 | |||||||
2012 | 2011 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net Income | $ | 78,023 | $ | 70,170 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Provision for credit losses | 53,500 | 74,000 | |||||
Depreciation and amortization of premises and equipment | 10,845 | 10,462 | |||||
Net amortization of investment securities premiums | 5,251 | 1,999 | |||||
Investment securities gains, net | (2,789 | ) | (1,950 | ) | |||
Net (increase) decrease in loans held for sale | (24,397 | ) | 36,807 | ||||
Amortization of intangible assets | 1,562 | 2,350 | |||||
Stock-based compensation | 3,050 | 1,101 | |||||
Excess tax benefits from stock-based compensation | (14 | ) | — | ||||
Decrease in accrued interest receivable | 2,815 | 2,454 | |||||
Decrease in other assets | 3,829 | 22,955 | |||||
Decrease in accrued interest payable | (1,961 | ) | (3,889 | ) | |||
Increase (decrease) in other liabilities | 5,910 | (11,566 | ) | ||||
Total adjustments | 57,601 | 134,723 | |||||
Net cash provided by operating activities | 135,624 | 204,893 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Proceeds from sales of securities available for sale | 210,804 | 416,480 | |||||
Proceeds from maturities of securities held to maturity | 121 | 160 | |||||
Proceeds from maturities of securities available for sale | 371,176 | 279,841 | |||||
Purchase of securities held to maturity | (14 | ) | (14 | ) | |||
Purchase of securities available for sale | (602,642 | ) | (356,323 | ) | |||
Decrease (increase) in short-term investments | 56,868 | (91,670 | ) | ||||
Net increase in loans | (88,224 | ) | (49 | ) | |||
Net purchases of premises and equipment | (20,654 | ) | (9,623 | ) | |||
Net cash (used in) provided by investing activities | (72,565 | ) | 238,802 | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Net (decrease) increase in demand and savings deposits | (13,950 | ) | 229,071 | ||||
Net decrease in time deposits | (279,305 | ) | (354,757 | ) | |||
Increase (decrease) in short-term borrowings | 334,648 | (127,496 | ) | ||||
Repayments of long-term debt | (131,340 | ) | (93,913 | ) | |||
Net proceeds from issuance of stock | 3,143 | 3,076 | |||||
Excess tax benefits from stock-based compensation | 14 | — | |||||
Dividends paid | (26,056 | ) | (13,939 | ) | |||
Net cash used in financing activities | (112,846 | ) | (357,958 | ) | |||
Net (Decrease) Increase in Cash and Due From Banks | (49,787 | ) | 85,737 | ||||
Cash and Due From Banks at Beginning of Period | 292,598 | 198,954 | |||||
Cash and Due From Banks at End of Period | $ | 242,811 | $ | 284,691 | |||
Supplemental Disclosures of Cash Flow Information: | |||||||
Cash paid during the period for: | |||||||
Interest | $ | 56,612 | $ | 74,310 | |||
Income taxes | 22,646 | 7,469 | |||||
See Notes to Consolidated Financial Statements |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||
(in thousands) | |||||||||||
Weighted average shares outstanding (basic) | 199,671 | 198,772 | 199,581 | 198,686 | |||||||
Effect of dilutive securities | 1,135 | 755 | 994 | 721 | |||||||
Weighted average shares outstanding (diluted) | 200,806 | 199,527 | 200,575 | 199,407 |
Before-Tax Amount | Tax Effect | Net of Tax Amount | |||||||||
(in thousands) | |||||||||||
Three Months Ended June 30, 2012 | |||||||||||
Unrealized gain (loss) on securities | $ | (16,468 | ) | $ | 5,764 | $ | (10,704 | ) | |||
Reclassification adjustment for securities (gains) losses included in net income | (1,537 | ) | 538 | (999 | ) | ||||||
Non-credit related unrealized gain (loss) on other-than-temporarily impaired debt securities | (264 | ) | 92 | (172 | ) | ||||||
Unrealized gain on derivative financial instruments | 52 | (18 | ) | 34 | |||||||
Amortization (accretion) of net unrecognized pension and postretirement items | 329 | (115 | ) | 214 | |||||||
Total Other Comprehensive Income (Loss) | $ | (17,888 | ) | $ | 6,261 | $ | (11,627 | ) | |||
Three Months Ended June 30, 2011 | |||||||||||
Unrealized gain (loss) on securities | $ | 20,694 | $ | (7,243 | ) | $ | 13,451 | ||||
Reclassification adjustment for securities (gains) losses included in net income | 335 | (117 | ) | 218 | |||||||
Non-credit related unrealized gain (loss) on other-than-temporarily impaired debt securities | 738 | (258 | ) | 480 | |||||||
Unrealized gain on derivative financial instruments | 52 | (18 | ) | 34 | |||||||
Amortization (accretion) of net unrecognized pension and postretirement items | (19 | ) | 7 | (12 | ) | ||||||
Total Other Comprehensive Income (Loss) | $ | 21,800 | $ | (7,629 | ) | $ | 14,171 | ||||
Six Months Ended June 30, 2012 | |||||||||||
Unrealized gain (loss) on securities | $ | (9,415 | ) | $ | 3,295 | $ | (6,120 | ) | |||
Reclassification adjustment for securities (gains) losses included in net income | (2,788 | ) | 976 | (1,812 | ) | ||||||
Non-credit related unrealized gain (loss) on other-than-temporarily impaired debt securities | (57 | ) | 20 | (37 | ) | ||||||
Unrealized gain on derivative financial instruments | 104 | (36 | ) | 68 | |||||||
Amortization (accretion) of net unrecognized pension and postretirement items | 659 | (231 | ) | 428 | |||||||
Total Other Comprehensive Income (Loss) | $ | (11,497 | ) | $ | 4,024 | $ | (7,473 | ) | |||
Six Months Ended June 30, 2011 | |||||||||||
Unrealized gain (loss) on securities | $ | 26,183 | $ | (9,164 | ) | $ | 17,019 | ||||
Reclassification adjustment for securities (gains) losses included in net income | (1,949 | ) | 682 | (1,267 | ) | ||||||
Non-credit related unrealized gain (loss) on other-than-temporarily impaired debt securities | 1,121 | (392 | ) | 729 | |||||||
Unrealized gain on derivative financial instruments | 104 | (36 | ) | 68 | |||||||
Amortization (accretion) of net unrecognized pension and postretirement items | (37 | ) | 13 | (24 | ) | ||||||
Total Other Comprehensive Income (Loss) | $ | 25,422 | $ | (8,897 | ) | $ | 16,525 |
Unrealized Gains on Investment Securities Not Other-Than-Temporarily Impaired | Unrealized Non-Credit Losses on Other-Than-Temporarily Impaired Debt Securities | Unrecognized Pension and Postretirement Plan Items | Unrealized Effective Portions of Losses on Forward-Starting Interest Rate Swaps | Total | |||||||||||||||
(in thousands) | |||||||||||||||||||
Three months ended June 30, 2012 | |||||||||||||||||||
Balance at March 31, 2012 | $ | 30,825 | $ | (876 | ) | $ | (14,920 | ) | $ | (2,920 | ) | $ | 12,109 | ||||||
Current-period other comprehensive income (loss) | (11,703 | ) | (172 | ) | 214 | 34 | (11,627 | ) | |||||||||||
Balance at June 30, 2012 | $ | 19,122 | $ | (1,048 | ) | $ | (14,706 | ) | $ | (2,886 | ) | $ | 482 | ||||||
Three months ended June 30, 2011 | |||||||||||||||||||
Balance at March 31, 2011 | $ | 23,791 | $ | (1,460 | ) | $ | (4,426 | ) | $ | (3,056 | ) | $ | 14,849 | ||||||
Current-period other comprehensive income (loss) | 13,436 | 713 | (12 | ) | 34 | 14,171 | |||||||||||||
Balance at June 30, 2011 | $ | 37,227 | $ | (747 | ) | $ | (4,438 | ) | $ | (3,022 | ) | $ | 29,020 | ||||||
Six months ended June 30, 2012 | |||||||||||||||||||
Balance at December 31, 2011 | $ | 27,054 | $ | (1,011 | ) | $ | (15,134 | ) | $ | (2,954 | ) | $ | 7,955 | ||||||
Current-period other comprehensive income (loss) | (7,932 | ) | (37 | ) | 428 | 68 | (7,473 | ) | |||||||||||
Balance at June 30, 2012 | $ | 19,122 | $ | (1,048 | ) | $ | (14,706 | ) | $ | (2,886 | ) | $ | 482 | ||||||
Six months ended June 30, 2011 | |||||||||||||||||||
Balance at December 31, 2010 | $ | 22,354 | $ | (2,355 | ) | $ | (4,414 | ) | $ | (3,090 | ) | $ | 12,495 | ||||||
Current-period other comprehensive income (loss) | 14,873 | 1,608 | (24 | ) | 68 | 16,525 | |||||||||||||
Balance at June 30, 2011 | $ | 37,227 | $ | (747 | ) | $ | (4,438 | ) | $ | (3,022 | ) | $ | 29,020 |
Held to Maturity at June 30, 2012 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||
(in thousands) | |||||||||||||||
U.S. Government sponsored agency securities | $ | 6,001 | $ | — | $ | (27 | ) | $ | 5,974 | ||||||
State and municipal securities | 179 | — | — | 179 | |||||||||||
Mortgage-backed securities | 382 | 36 | — | 418 | |||||||||||
$ | 6,562 | $ | 36 | $ | (27 | ) | $ | 6,571 | |||||||
Available for Sale at June 30, 2012 | |||||||||||||||
Equity securities | $ | 104,086 | $ | 2,738 | $ | (1,413 | ) | $ | 105,411 | ||||||
U.S. Government securities | 327 | — | — | 327 | |||||||||||
U.S. Government sponsored agency securities | 3,939 | 54 | (1 | ) | 3,992 | ||||||||||
State and municipal securities | 289,364 | 14,153 | (37 | ) | 303,480 | ||||||||||
Corporate debt securities | 135,886 | 5,991 | (11,502 | ) | 130,375 | ||||||||||
Collateralized mortgage obligations | 965,499 | 16,441 | (283 | ) | 981,657 | ||||||||||
Mortgage-backed securities | 1,098,949 | 36,797 | — | 1,135,746 | |||||||||||
Auction rate securities | 238,408 | — | (35,126 | ) | 203,282 | ||||||||||
$ | 2,836,458 | $ | 76,174 | $ | (48,362 | ) | $ | 2,864,270 |
Held to Maturity at December 31, 2011 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||
(in thousands) | |||||||||||||||
U.S. Government sponsored agency securities | $ | 5,987 | $ | — | $ | (14 | ) | $ | 5,973 | ||||||
State and municipal securities | 179 | — | — | 179 | |||||||||||
Mortgage-backed securities | 503 | 44 | — | 547 | |||||||||||
$ | 6,669 | $ | 44 | $ | (14 | ) | $ | 6,699 | |||||||
Available for Sale at December 31, 2011 | |||||||||||||||
Equity securities | $ | 117,486 | $ | 2,383 | $ | (2,819 | ) | $ | 117,050 | ||||||
U.S. Government securities | 334 | — | — | 334 | |||||||||||
U.S. Government sponsored agency securities | 3,987 | 87 | (1 | ) | 4,073 | ||||||||||
State and municipal securities | 306,186 | 15,832 | — | 322,018 | |||||||||||
Corporate debt securities | 132,855 | 4,979 | (14,528 | ) | 123,306 | ||||||||||
Collateralized mortgage obligations | 982,851 | 19,186 | (828 | ) | 1,001,209 | ||||||||||
Mortgage-backed securities | 848,675 | 31,837 | (415 | ) | 880,097 | ||||||||||
Auction rate securities | 240,852 | 120 | (15,761 | ) | 225,211 | ||||||||||
$ | 2,633,226 | $ | 74,424 | $ | (34,352 | ) | $ | 2,673,298 |
Held to Maturity | Available for Sale | ||||||||||||||
Amortized Cost | Estimated Fair Value | Amortized Cost | Estimated Fair Value | ||||||||||||
(in thousands) | |||||||||||||||
Due in one year or less | $ | 179 | $ | 179 | $ | 53,656 | $ | 54,119 | |||||||
Due from one year to five years | 6,001 | 5,974 | 61,264 | 64,298 | |||||||||||
Due from five years to ten years | — | — | 142,646 | 152,850 | |||||||||||
Due after ten years | — | — | 410,358 | 370,189 | |||||||||||
6,180 | 6,153 | 667,924 | 641,456 | ||||||||||||
Collateralized mortgage obligations | — | — | 965,499 | 981,657 | |||||||||||
Mortgage-backed securities | 382 | 418 | 1,098,949 | 1,135,746 | |||||||||||
$ | 6,562 | $ | 6,571 | $ | 2,732,372 | $ | 2,758,859 |
Gross Realized Gains | Gross Realized Losses | Other-than- temporary Impairment Losses | Net Gains (Losses) | ||||||||||||
(in thousands) | |||||||||||||||
Three months ended June 30, 2012 | |||||||||||||||
Equity securities | $ | 1,517 | $ | — | $ | (57 | ) | $ | 1,460 | ||||||
Debt securities | 78 | — | — | 78 | |||||||||||
Total | $ | 1,595 | $ | — | $ | (57 | ) | $ | 1,538 | ||||||
Three months ended June 30, 2011: | |||||||||||||||
Equity securities | $ | 43 | $ | — | $ | (34 | ) | $ | 9 | ||||||
Debt securities | 16 | (1 | ) | (359 | ) | (344 | ) | ||||||||
Total | $ | 59 | $ | (1 | ) | $ | (393 | ) | $ | (335 | ) | ||||
Six months ended June 30, 2012 | |||||||||||||||
Equity securities | $ | 2,603 | $ | — | $ | (57 | ) | $ | 2,546 | ||||||
Debt securities | 243 | — | — | 243 | |||||||||||
Total | $ | 2,846 | $ | — | $ | (57 | ) | $ | 2,789 | ||||||
Six months ended June 30, 2011: | |||||||||||||||
Equity securities | $ | 48 | $ | — | $ | (331 | ) | $ | (283 | ) | |||||
Debt securities | 3,605 | (19 | ) | (1,353 | ) | 2,233 | |||||||||
Total | $ | 3,653 | $ | (19 | ) | $ | (1,684 | ) | $ | 1,950 |
Three Months ended June 30 | Six Months ended June 30 | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(in thousands) | |||||||||||||||
Balance of cumulative credit losses on debt securities, beginning of period | $ | (22,692 | ) | $ | (28,517 | ) | $ | (22,781 | ) | $ | (27,560 | ) | |||
Additions for credit losses recorded which were not previously recognized as components of earnings | — | (359 | ) | — | (1,353 | ) | |||||||||
Reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security | — | — | 89 | 37 | |||||||||||
Balance of cumulative credit losses on debt securities, end of period | $ | (22,692 | ) | $ | (28,876 | ) | $ | (22,692 | ) | $ | (28,876 | ) |
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||
Estimated Fair Value | Unrealized Losses | Estimated Fair Value | Unrealized Losses | Estimated Fair Value | Unrealized Losses | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
U.S. Government sponsored agency securities | $ | 112 | $ | (1 | ) | $ | 5,344 | $ | (27 | ) | $ | 5,456 | $ | (28 | ) | ||||||||
State and municipal securities | 8,356 | (37 | ) | — | — | 8,356 | (37 | ) | |||||||||||||||
Corporate debt securities | 6,942 | (1,678 | ) | 37,562 | (9,824 | ) | 44,504 | (11,502 | ) | ||||||||||||||
Collateralized mortgage obligations | 95,032 | (283 | ) | — | — | 95,032 | (283 | ) | |||||||||||||||
Auction rate securities | 21,868 | (2,064 | ) | 181,414 | (33,062 | ) | 203,282 | (35,126 | ) | ||||||||||||||
Total debt securities | 132,310 | (4,063 | ) | 224,320 | (42,913 | ) | 356,630 | (46,976 | ) | ||||||||||||||
Equity securities | 6,221 | (613 | ) | 4,287 | (800 | ) | 10,508 | (1,413 | ) | ||||||||||||||
$ | 138,531 | $ | (4,676 | ) | $ | 228,607 | $ | (43,713 | ) | $ | 367,138 | $ | (48,389 | ) |
June 30, 2012 | December 31, 2011 | ||||||||||||||
Amortized cost | Estimated fair value | Amortized cost | Estimated fair value | ||||||||||||
(in thousands) | |||||||||||||||
Single-issuer trust preferred securities | $ | 84,321 | $ | 76,823 | $ | 83,899 | $ | 74,365 | |||||||
Subordinated debt | 43,233 | 46,012 | 40,184 | 41,296 | |||||||||||
Pooled trust preferred securities | 5,810 | 5,018 | 6,236 | 5,109 | |||||||||||
Corporate debt securities issued by financial institutions | 133,364 | 127,853 | 130,319 | 120,770 | |||||||||||
Other corporate debt securities | 2,522 | 2,522 | 2,536 | 2,536 | |||||||||||
Available for sale corporate debt securities | $ | 135,886 | $ | 130,375 | $ | 132,855 | $ | 123,306 |
June 30, 2012 | December 31, 2011 | ||||||
(in thousands) | |||||||
Real-estate - commercial mortgage | $ | 4,653,097 | $ | 4,602,596 | |||
Commercial - industrial, financial and agricultural | 3,538,188 | 3,639,368 | |||||
Real-estate - home equity | 1,599,468 | 1,624,562 | |||||
Real-estate - residential mortgage | 1,183,613 | 1,097,192 | |||||
Real-estate - construction | 619,060 | 615,445 | |||||
Consumer | 308,469 | 318,101 | |||||
Leasing and other | 69,872 | 63,254 | |||||
Overdrafts | 18,332 | 15,446 | |||||
Loans, gross of unearned income | 11,990,099 | 11,975,964 | |||||
Unearned income | (7,266 | ) | (6,994 | ) | |||
Loans, net of unearned income | $ | 11,982,833 | $ | 11,968,970 |
June 30, 2012 | December 31, 2011 | ||||||
(in thousands) | |||||||
Allowance for loan losses | $ | 235,737 | $ | 256,471 | |||
Reserve for unfunded lending commitments | 1,579 | 1,706 | |||||
Allowance for credit losses | $ | 237,316 | $ | 258,177 |
Three months ended June 30 | Six months ended June 30 | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(in thousands) | |||||||||||||||
Balance at beginning of period | $ | 258,137 | $ | 271,156 | $ | 258,177 | $ | 275,498 | |||||||
Loans charged off | (50,540 | ) | (40,675 | ) | (80,799 | ) | (86,204 | ) | |||||||
Recoveries of loans previously charged off | 4,219 | 2,152 | 6,438 | 5,339 | |||||||||||
Net loans charged off | (46,321 | ) | (38,523 | ) | (74,361 | ) | (80,865 | ) | |||||||
Provision for credit losses | 25,500 | 36,000 | 53,500 | 74,000 | |||||||||||
Balance at end of period | $ | 237,316 | $ | 268,633 | $ | 237,316 | $ | 268,633 |
Real Estate - Commercial Mortgage | Commercial - Industrial, Financial and Agricultural | Real Estate - Home Equity | Real Estate - Residential Mortgage | Real Estate - Construction | Consumer | Leasing and other and overdrafts | Unallocated | Total | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
Three months ended June 30, 2012 | |||||||||||||||||||||||||||||||||||
Balance at March 31, 2012 | $ | 81,652 | $ | 79,756 | $ | 13,083 | $ | 24,851 | $ | 31,186 | $ | 1,643 | $ | 3,274 | $ | 21,051 | $ | 256,496 | |||||||||||||||||
Loans charged off | (23,699 | ) | (13,017 | ) | (2,789 | ) | (1,492 | ) | (8,442 | ) | (471 | ) | (630 | ) | — | (50,540 | ) | ||||||||||||||||||
Recoveries of loans previously charged off | 1,153 | 717 | 278 | 71 | 1,539 | 281 | 180 | — | 4,219 | ||||||||||||||||||||||||||
Net loans charged off | (22,546 | ) | (12,300 | ) | (2,511 | ) | (1,421 | ) | (6,903 | ) | (190 | ) | (450 | ) | — | (46,321 | ) | ||||||||||||||||||
Provision for loan losses (1) | 10,763 | 4,475 | 3,872 | 3,281 | 1,276 | 363 | 419 | 1,113 | 25,562 | ||||||||||||||||||||||||||
Balance at June 30, 2012 | $ | 69,869 | $ | 71,931 | $ | 14,444 | $ | 26,711 | $ | 25,559 | $ | 1,816 | $ | 3,243 | $ | 22,164 | $ | 235,737 | |||||||||||||||||
Three months ended June 30, 2011 | |||||||||||||||||||||||||||||||||||
Balance at March 31, 2011 | 48,558 | 100,180 | 5,656 | 19,575 | 55,491 | 4,736 | 2,576 | 33,500 | 270,272 | ||||||||||||||||||||||||||
Loans charged off | (7,074 | ) | (15,406 | ) | (1,650 | ) | (7,707 | ) | (7,468 | ) | (681 | ) | (689 | ) | — | (40,675 | ) | ||||||||||||||||||
Recoveries of loans previously charged off | 191 | 1,003 | 2 | 190 | 79 | 433 | 254 | — | 2,152 | ||||||||||||||||||||||||||
Net loans charged off | (6,883 | ) | (14,403 | ) | (1,648 | ) | (7,517 | ) | (7,389 | ) | (248 | ) | (435 | ) | — | (38,523 | ) | ||||||||||||||||||
Provision for loan losses | 9,040 | 10,224 | 1,862 | 11,958 | 7,239 | 343 | 590 | (6,322 | ) | 34,934 | |||||||||||||||||||||||||
Impact of change in allowance methodology | 22,883 | (13,388 | ) | 3,690 | 7,896 | (24,771 | ) | (3,076 | ) | (944 | ) | 7,710 | — | ||||||||||||||||||||||
Provision for loan losses, including impact of change in allowance methodology (1) | 31,923 | (3,164 | ) | 5,552 | 19,854 | (17,532 | ) | (2,733 | ) | (354 | ) | 1,388 | 34,934 | ||||||||||||||||||||||
Balance at June 30, 2011 | 73,598 | 82,613 | 9,560 | 31,912 | 30,570 | 1,755 | 1,787 | 34,888 | 266,683 | ||||||||||||||||||||||||||
Six months ended June 30, 2012 | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2011 | $ | 85,112 | $ | 74,896 | $ | 12,841 | $ | 22,986 | $ | 30,066 | $ | 2,083 | $ | 2,397 | $ | 26,090 | $ | 256,471 | |||||||||||||||||
Loans charged off | (35,590 | ) | (18,686 | ) | (4,995 | ) | (2,339 | ) | (17,013 | ) | (1,105 | ) | (1,071 | ) | — | (80,799 | ) | ||||||||||||||||||
Recoveries of loans previously charged off | 1,969 | 1,353 | 298 | 144 | 1,603 | 631 | 440 | — | 6,438 | ||||||||||||||||||||||||||
Net loans charged off | (33,621 | ) | (17,333 | ) | (4,697 | ) | (2,195 | ) | (15,410 | ) | (474 | ) | (631 | ) | — | (74,361 | ) | ||||||||||||||||||
Provision for loan losses (1) | 18,378 | 14,368 | 6,300 | 5,920 | 10,903 | 207 | 1,477 | (3,926 | ) | 53,627 | |||||||||||||||||||||||||
Balance at June 30, 2012 | $ | 69,869 | $ | 71,931 | $ | 14,444 | $ | 26,711 | $ | 25,559 | $ | 1,816 | $ | 3,243 | $ | 22,164 | $ | 235,737 | |||||||||||||||||
Six months ended June 30, 2011 | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2010 | $ | 40,831 | $ | 101,436 | $ | 6,454 | $ | 17,425 | $ | 58,117 | $ | 4,669 | $ | 3,840 | $ | 41,499 | $ | 274,271 | |||||||||||||||||
Loans charged off | (17,121 | ) | (28,742 | ) | (3,118 | ) | (12,703 | ) | (21,362 | ) | (1,972 | ) | (1,186 | ) | — | (86,204 | ) | ||||||||||||||||||
Recoveries of loans previously charged off | 1,726 | 1,394 | 3 | 234 | 642 | 742 | 598 | — | 5,339 | ||||||||||||||||||||||||||
Net loans charged off | (15,395 | ) | (27,348 | ) | (3,115 | ) | (12,469 | ) | (20,720 | ) | (1,230 | ) | (588 | ) | — | (80,865 | ) | ||||||||||||||||||
Provision for loan losses | 25,279 | 21,913 | 2,531 | 19,060 | 17,944 | 1,392 | (521 | ) | (14,321 | ) | 73,277 | ||||||||||||||||||||||||
Impact of change in allowance methodology | 22,883 | (13,388 | ) | 3,690 | 7,896 | (24,771 | ) | (3,076 | ) | (944 | ) | 7,710 | — | ||||||||||||||||||||||
Provision for loan losses, including impact of change in allowance methodology (1) | 48,162 | 8,525 | 6,221 | 26,956 | (6,827 | ) | (1,684 | ) | (1,465 | ) | (6,611 | ) | 73,277 | ||||||||||||||||||||||
Balance at June 30, 2011 | $ | 73,598 | $ | 82,613 | $ | 9,560 | $ | 31,912 | $ | 30,570 | $ | 1,755 | $ | 1,787 | $ | 34,888 | $ | 266,683 | |||||||||||||||||
(1) | Provision for loan losses is gross of a $62,000 and $127,000 decrease, respectively, in provision applied to unfunded commitments for the three and six months ended June 30, 2012. The total provision for credit losses, comprised of allocations for both funded and unfunded loans, was $25.5 million and $53.5 million for the three and six months ended June 30, 2012, respectively. Provision for loan losses is net of a $1.1 million and $723,000 increase, respectively, in provision applied to unfunded commitments for the three and six months ended June 30, 2011.The total provision for credit losses, comprised of allocations for both funded and unfunded loans, was $36.0 million and $74.0 million for the three and six months ended June 30, 2011, respectively. |
Real Estate - Commercial Mortgage | Commercial - Industrial, Financial and Agricultural | Real Estate - Home Equity | Real Estate - Residential Mortgage | Real Estate - Construction | Consumer | Leasing and other and overdrafts | Unallocated (1) | Total | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
Allowance for loan losses at June 30, 2012 | |||||||||||||||||||||||||||||||||||
Measured for impairment under FASB ASC Subtopic 450-20 | $ | 47,532 | $ | 46,650 | $ | 9,619 | $ | 7,781 | $ | 15,359 | $ | 1,811 | $ | 3,052 | $ | 22,164 | $ | 153,968 | |||||||||||||||||
Evaluated for impairment under FASB ASC Section 310-10-35 | 22,337 | 25,281 | 4,825 | 18,930 | 10,200 | 5 | 191 | N/A | 81,769 | ||||||||||||||||||||||||||
$ | 69,869 | $ | 71,931 | $ | 14,444 | $ | 26,711 | $ | 25,559 | $ | 1,816 | $ | 3,243 | $ | 22,164 | $ | 235,737 | ||||||||||||||||||
Loans, net of unearned income at June 30, 2012 | |||||||||||||||||||||||||||||||||||
Measured for impairment under FASB ASC Subtopic 450-20 | $ | 4,541,364 | $ | 3,471,260 | $ | 1,591,117 | $ | 1,138,420 | $ | 566,163 | $ | 308,462 | $ | 80,643 | N/A | $ | 11,697,429 | ||||||||||||||||||
Evaluated for impairment under FASB ASC Section 310-10-35 | 111,733 | 66,928 | 8,351 | 45,193 | 52,897 | 7 | 295 | N/A | 285,404 | ||||||||||||||||||||||||||
$ | 4,653,097 | $ | 3,538,188 | $ | 1,599,468 | $ | 1,183,613 | $ | 619,060 | $ | 308,469 | $ | 80,938 | N/A | $ | 11,982,833 | |||||||||||||||||||
Allowance for loan losses at June 30, 2011 | |||||||||||||||||||||||||||||||||||
Measured for impairment under FASB ASC Subtopic 450-20 | $ | 44,600 | $ | 53,373 | $ | 9,560 | $ | 5,953 | $ | 18,794 | $ | 1,597 | $ | 1,727 | $ | 34,888 | $ | 170,492 | |||||||||||||||||
Evaluated for impairment under FASB ASC Section 310-10-35 | 28,998 | 29,240 | — | 25,959 | 11,776 | 158 | 60 | N/A | 96,191 | ||||||||||||||||||||||||||
$ | 73,598 | $ | 82,613 | $ | 9,560 | $ | 31,912 | $ | 30,570 | $ | 1,755 | $ | 1,787 | $ | 34,888 | $ | 266,683 | ||||||||||||||||||
Loans, net of unearned income at June 30, 2011 | |||||||||||||||||||||||||||||||||||
Measured for impairment under FASB ASC Subtopic 450-20 | $ | 4,329,750 | $ | 3,587,702 | $ | 1,626,545 | $ | 955,863 | $ | 623,734 | $ | 330,754 | $ | 67,773 | N/A | $ | 11,522,121 | ||||||||||||||||||
Evaluated for impairment under FASB ASC Section 310-10-35 | 113,275 | 91,156 | — | 67,783 | 57,854 | 211 | 91 | N/A | 330,370 | ||||||||||||||||||||||||||
$ | 4,443,025 | $ | 3,678,858 | $ | 1,626,545 | $ | 1,023,646 | $ | 681,588 | $ | 330,965 | $ | 67,864 | N/A | $ | 11,852,491 |
(1) | The Corporation’s unallocated allowance, which was approximately 9% and 13% as of June 30, 2012 and June 30, 2011, respectively, was reasonable and appropriate as the estimates used in the allocation process are inherently imprecise. |
Real Estate - Commercial mortgage | Commercial - industrial, financial and agricultural | Real Estate - Construction | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Unpaid principal balance of loans sold | $ | 38,450 | $ | 15,270 | $ | 6,280 | $ | 60,000 | ||||||||
Charge-offs prior to sale | (8,600 | ) | (3,750 | ) | (3,540 | ) | (15,890 | ) | ||||||||
Net recorded investment in loans sold | 29,850 | 11,520 | 2,740 | 44,110 | ||||||||||||
Proceeds from sale, net of selling expenses | 15,910 | 5,170 | 1,850 | 22,930 | ||||||||||||
Total charge-off upon sale | $ | (13,940 | ) | $ | (6,350 | ) | $ | (890 | ) | $ | (21,180 | ) | ||||
Existing allocation for credit losses on sold loans | $ | (15,090 | ) | $ | (7,510 | ) | $ | (1,520 | ) | $ | (24,120 | ) |
• | Original appraisal – if the original appraisal indicated a very strong loan to value position and, in the opinion of the Corporation’s internal loan evaluation staff, there has not been a significant deterioration in the collateral value, the original appraisal may be used to support the value of the collateral. Original appraisals are typically used only when the estimated collateral value, as adjusted, results in a current loan to value ratio that is lower than the Corporation’s policy for new loans, generally 80%. |
• | Broker price opinions – in lieu of obtaining an updated certified appraisal, a less formal indication of value, such as a broker price opinion, may be obtained. These opinions are generally used to validate internal estimates of collateral value and are not relied upon as the sole determinant of fair value. |
• | Discounted cash flows – while substantially all of the Corporation’s impaired loans are measured based on the estimated fair value of collateral, discounted cash flows analyses may be used to validate estimates of collateral value derived from other approaches. |
June 30, 2012 | December 31, 2011 | ||||||||||||||||||||||
Unpaid Principal Balance | Recorded Investment | Related Allowance | Unpaid Principal Balance | Recorded Investment | Related Allowance | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||
Real estate - commercial mortgage | $ | 68,523 | $ | 52,478 | $ | — | $ | 54,445 | $ | 46,768 | $ | — | |||||||||||
Commercial - secured | 27,642 | 21,916 | — | 35,529 | 28,440 | — | |||||||||||||||||
Commercial - unsecured | 13 | 13 | — | — | — | — | |||||||||||||||||
Real estate - home equity | 584 | 584 | — | 199 | 199 | — | |||||||||||||||||
Real estate - residential mortgage | 1,988 | 1,988 | — | — | — | — | |||||||||||||||||
Construction - commercial residential | 49,881 | 26,975 | — | 62,822 | 31,233 | — | |||||||||||||||||
Construction - commercial | 2,953 | 2,386 | — | 3,604 | 3,298 | — | |||||||||||||||||
151,584 | 106,340 | 156,599 | 109,938 | ||||||||||||||||||||
With a related allowance recorded: | |||||||||||||||||||||||
Real estate - commercial mortgage | 75,818 | 59,255 | 22,337 | 100,529 | 79,566 | 36,060 | |||||||||||||||||
Commercial - secured | 53,775 | 42,395 | 23,205 | 61,970 | 47,652 | 26,248 | |||||||||||||||||
Commercial - unsecured | 2,769 | 2,604 | 2,076 | 3,139 | 2,789 | 2,177 | |||||||||||||||||
Real estate - home equity | 7,767 | 7,767 | 4,825 | 5,294 | 5,294 | 3,076 | |||||||||||||||||
Real estate - residential mortgage | 43,205 | 43,205 | 18,930 | 39,918 | 39,918 | 16,295 | |||||||||||||||||
Construction - commercial residential | 25,869 | 19,928 | 8,191 | 41,176 | 25,632 | 11,287 | |||||||||||||||||
Construction - commercial | 3,380 | 2,687 | 1,470 | 3,221 | 1,049 | 506 | |||||||||||||||||
Construction - other | 921 | 921 | 539 | 1,127 | 1,127 | 663 | |||||||||||||||||
Consumer - direct | 7 | 7 | 5 | 368 | 368 | 228 | |||||||||||||||||
Leasing and other and overdrafts | 295 | 295 | 191 | 56 | 56 | 37 | |||||||||||||||||
213,806 | 179,064 | 81,769 | 256,798 | 203,451 | 96,577 | ||||||||||||||||||
Total | $ | 365,390 | $ | 285,404 | $ | 81,769 | $ | 413,397 | $ | 313,389 | $ | 96,577 |
Three months ended June 30, 2012 | Three months ended June 30, 2011 | Six Months Ended June 30, 2012 | Six Months Ended June 30, 2011 | ||||||||||||||||||||||||||||
Average Recorded Investment | Interest Income Recognized (1) | Average Recorded Investment | Interest Income Recognized (1) | Average Recorded Investment | Interest Income Recognized (1) | Average Recorded Investment | Interest Income Recognized (1) | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||
Real estate - commercial mortgage | $ | 46,502 | $ | 127 | $ | 41,139 | $ | 87 | $ | 46,591 | $ | 198 | $ | 45,510 | $ | 490 | |||||||||||||||
Commercial - secured | 21,798 | 10 | 32,313 | 15 | 24,012 | 17 | 30,790 | 161 | |||||||||||||||||||||||
Commercial - unsecured | 13 | — | — | — | 9 | — | 196 | 3 | |||||||||||||||||||||||
Real estate - home equity | 542 | — | — | — | 428 | — | — | — | |||||||||||||||||||||||
Real estate - residential mortgage | 1,240 | 11 | — | — | 826 | 13 | 7,071 | 43 | |||||||||||||||||||||||
Construction - commercial residential | 28,734 | 43 | 20,322 | 6 | 29,567 | 68 | 24,333 | 184 | |||||||||||||||||||||||
Construction - commercial | 2,765 | 4 | 3,601 | 1 | 2,942 | 6 | 3,109 | 21 | |||||||||||||||||||||||
101,594 | 195 | 97,375 | 109 | 104,375 | 302 | 111,009 | 902 | ||||||||||||||||||||||||
With a related allowance recorded: | |||||||||||||||||||||||||||||||
Real estate - commercial mortgage | 64,733 | 161 | 70,441 | 150 | 69,677 | 283 | 81,650 | 989 | |||||||||||||||||||||||
Commercial - secured | 47,437 | 20 | 47,747 | 22 | 47,508 | 33 | 97,723 | 1,199 | |||||||||||||||||||||||
Commercial - unsecured | 2,822 | 1 | 3,193 | 2 | 2,811 | 2 | 4,996 | 33 | |||||||||||||||||||||||
Real estate - home equity | 6,813 | 4 | — | — | 6,306 | 4 | — | — | |||||||||||||||||||||||
Real estate - residential mortgage | 41,731 | 370 | 71,807 | 487 | 41,127 | 760 | 54,044 | 577 | |||||||||||||||||||||||
Construction - commercial residential | 24,210 | 35 | 40,219 | 13 | 24,684 | 57 | 61,421 | 448 | |||||||||||||||||||||||
Construction - commercial | 2,854 | 4 | 313 | — | 2,252 | 6 | 1,089 | 17 | |||||||||||||||||||||||
Construction - other | 1,047 | 1 | 1,687 | — | 1,073 | 2 | 1,124 | — | |||||||||||||||||||||||
Consumer - direct | 8 | — | 150 | 2 | 128 | — | 100 | 2 | |||||||||||||||||||||||
Leasing and other and overdrafts | 164 | — | 77 | — | 128 | — | 51 | — | |||||||||||||||||||||||
191,819 | 596 | 235,634 | 676 | 195,694 | 1,147 | 302,198 | 3,265 | ||||||||||||||||||||||||
Total | $ | 293,413 | $ | 791 | $ | 333,009 | $ | 785 | $ | 300,069 | $ | 1,449 | $ | 413,207 | $ | 4,167 |
(1) | All impaired loans, excluding accruing troubled debt restructurings, were non-accrual loans. Interest income recognized for the three and six months ended June 30, 2012 and 2011 represent amounts earned on accruing troubled debt restructurings. |
Pass | Special Mention | Substandard or Lower | Total | ||||||||||||||||||||||||||||
June 30, 2012 | December 31, 2011 | June 30, 2012 | December 31, 2011 | June 30, 2012 | December 31, 2011 | June 30, 2012 | December 31, 2011 | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||
Real estate - commercial mortgage | $ | 4,195,679 | $ | 4,099,103 | $ | 153,931 | $ | 160,935 | $ | 303,487 | $ | 342,558 | $ | 4,653,097 | $ | 4,602,596 | |||||||||||||||
Commercial - secured | 2,943,780 | 2,977,957 | 151,545 | 166,588 | 222,268 | 249,014 | 3,317,593 | 3,393,559 | |||||||||||||||||||||||
Commercial -unsecured | 207,026 | 230,962 | 5,777 | 6,066 | 7,792 | 8,781 | 220,595 | 245,809 | |||||||||||||||||||||||
Total commercial - industrial, financial and agricultural | 3,150,806 | 3,208,919 | 157,322 | 172,654 | 230,060 | 257,795 | 3,538,188 | 3,639,368 | |||||||||||||||||||||||
Construction - commercial residential | 165,191 | 175,706 | 57,524 | 50,854 | 108,287 | 126,378 | 331,002 | 352,938 | |||||||||||||||||||||||
Construction - commercial | 212,631 | 186,049 | 4,016 | 7,022 | 12,877 | 16,309 | 229,524 | 209,380 | |||||||||||||||||||||||
Total construction (excluding Construction - other) | 377,822 | 361,755 | 61,540 | 57,876 | 121,164 | 142,687 | 560,526 | 562,318 | |||||||||||||||||||||||
$ | 7,724,307 | $ | 7,669,777 | $ | 372,793 | $ | 391,465 | $ | 654,711 | $ | 743,040 | $ | 8,751,811 | $ | 8,804,282 | ||||||||||||||||
% of Total | 88.2 | % | 87.1 | % | 4.3 | % | 4.5 | % | 7.5 | % | 8.4 | % | 100.0 | % | 100.0 | % |
Performing | Delinquent (1) | Non-performing (2) | Total | ||||||||||||||||||||||||||||
June 30, 2012 | December 31, 2011 | June 30, 2012 | December 31, 2011 | June 30, 2012 | December 31, 2011 | June 30, 2012 | December 31, 2011 | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||
Real estate - home equity | $ | 1,574,781 | $ | 1,601,722 | $ | 13,215 | $ | 11,633 | $ | 11,472 | $ | 11,207 | $ | 1,599,468 | $ | 1,624,562 | |||||||||||||||
Real estate - residential mortgage | 1,123,426 | 1,043,733 | 34,814 | 37,123 | 25,373 | 16,336 | 1,183,613 | 1,097,192 | |||||||||||||||||||||||
Construction - other | 56,631 | 49,593 | 982 | 2,341 | 921 | 1,193 | 58,534 | 53,127 | |||||||||||||||||||||||
Consumer - direct | 153,624 | 157,157 | 3,810 | 4,011 | 3,300 | 3,201 | 160,734 | 164,369 | |||||||||||||||||||||||
Consumer - indirect | 145,554 | 151,112 | 2,021 | 2,437 | 160 | 183 | 147,735 | 153,732 | |||||||||||||||||||||||
Total consumer | 299,178 | 308,269 | 5,831 | 6,448 | 3,460 | 3,384 | 308,469 | 318,101 | |||||||||||||||||||||||
Leasing and other and overdrafts | 80,114 | 70,550 | 428 | 1,049 | 396 | 107 | 80,938 | 71,706 | |||||||||||||||||||||||
$ | 3,134,130 | $ | 3,073,867 | $ | 55,270 | $ | 58,594 | $ | 41,622 | $ | 32,227 | $ | 3,231,022 | $ | 3,164,688 | ||||||||||||||||
% of Total | 97.0 | % | 97.1 | % | 1.7 | % | 1.9 | % | 1.3 | % | 1.0 | % | 100.0 | % | 100.0 | % |
(1) | Includes all accruing loans 31 days to 89 days past due. |
(2) | Includes all accruing loans 90 days or more past due and all non-accrual loans. |
June 30, 2012 | December 31, 2011 | ||||||
(in thousands) | |||||||
Non-accrual loans | $ | 203,539 | $ | 257,761 | |||
Accruing loans greater than 90 days past due | 30,434 | 28,767 | |||||
Total non-performing loans | 233,973 | 286,528 | |||||
Other real estate owned (OREO) | 32,338 | 30,803 | |||||
Total non-performing assets | $ | 266,311 | $ | 317,331 |
June 30, 2012 | December 31, 2011 | ||||||
(in thousands) | |||||||
Real-estate - residential mortgage | $ | 33,516 | $ | 32,331 | |||
Real-estate - commercial mortgage | 32,481 | 22,425 | |||||
Construction - commercial residential | 10,030 | 7,645 | |||||
Commercial - secured | 4,679 | 3,449 | |||||
Real estate - home equity | 620 | 183 | |||||
Commercial -unsecured | 127 | 132 | |||||
Consumer - direct | — | 10 | |||||
Total accruing TDRs | 81,453 | 66,175 | |||||
Non-accrual TDRs (1) | 27,576 | 32,587 | |||||
Total TDRs | $ | 109,029 | $ | 98,762 |
(1) | Included within non-accrual loans in table detailing non-performing assets above. |
Three Months Ended June 30, 2012 | Six Months Ended June 30, 2012 | ||||||||||
Number of Loans | Recorded Investment | Number of Loans | Recorded Investment | ||||||||
(dollars in thousands) | |||||||||||
Real estate - commercial mortgage | 9 | $ | 10,931 | 13 | $ | 16,600 | |||||
Real estate - residential mortgage | 11 | 3,436 | 24 | 8,115 | |||||||
Construction - commercial residential | 3 | 4,072 | 6 | 10,437 | |||||||
Real estate - home equity | 4 | 389 | 6 | 560 | |||||||
Commercial - secured | 2 | 167 | 7 | 3,207 | |||||||
29 | $ | 18,995 | 56 | $ | 38,919 |
Three Months Ended June 30, 2012 | Six Months Ended June 30, 2012 | ||||||||||
Number of Loans | Recorded Investment | Number of Loans | Recorded Investment | ||||||||
( dollars in thousands) | |||||||||||
Real estate - commercial mortgage | 12 | $ | 8,160 | 21 | $ | 12,248 | |||||
Construction - commercial residential | 2 | 5,670 | 5 | 13,220 | |||||||
Real estate - residential mortgage | 16 | 5,217 | 24 | 6,931 | |||||||
Real estate - home equity | 4 | 444 | 6 | 683 | |||||||
Commercial - secured | 3 | 167 | 5 | 282 | |||||||
37 | $ | 19,658 | 61 | $ | 33,364 |
June 30, 2012 | |||||||||||||||||||||||||||||||
31-59 Days Past Due | 60-89 Days Past Due | ≥ 90 Days Past Due and Accruing | Non- accrual | Total ≥ 90 Days | Total Past Due | Current | Total | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||
Real estate - commercial mortgage | $ | 11,981 | $ | 7,208 | $ | 2,927 | $ | 79,252 | $ | 82,179 | $ | 101,368 | $ | 4,551,729 | $ | 4,653,097 | |||||||||||||||
Commercial - secured | 10,525 | 11,791 | 5,529 | 59,632 | 65,161 | 87,477 | 3,230,117 | 3,317,594 | |||||||||||||||||||||||
Commercial - unsecured | 570 | 455 | 318 | 2,490 | 2,808 | 3,833 | 216,761 | 220,594 | |||||||||||||||||||||||
Total commercial - industrial, financial and agricultural | 11,095 | 12,246 | 5,847 | 62,122 | 67,969 | 91,310 | 3,446,878 | 3,538,188 | |||||||||||||||||||||||
Real estate - home equity | 9,835 | 3,380 | 4,528 | 6,944 | 11,472 | 24,687 | 1,574,781 | 1,599,468 | |||||||||||||||||||||||
Real estate - residential mortgage | 24,400 | 10,414 | 14,109 | 11,264 | 25,373 | 60,187 | 1,123,426 | 1,183,613 | |||||||||||||||||||||||
Construction - commercial residential | 2,068 | — | 129 | 36,873 | 37,002 | 39,070 | 291,932 | 331,002 | |||||||||||||||||||||||
Construction - commercial | 2,820 | — | 128 | 5,073 | 5,201 | 8,021 | 221,503 | 229,524 | |||||||||||||||||||||||
Construction - other | 982 | — | — | 921 | 921 | 1,903 | 56,631 | 58,534 | |||||||||||||||||||||||
Total real estate - construction | 5,870 | — | 257 | 42,867 | 43,124 | 48,994 | 570,066 | 619,060 | |||||||||||||||||||||||
Consumer - direct | 2,668 | 1,142 | 2,505 | 795 | 3,300 | 7,110 | 153,624 | 160,734 | |||||||||||||||||||||||
Consumer - indirect | 1,688 | 333 | 160 | — | 160 | 2,181 | 145,554 | 147,735 | |||||||||||||||||||||||
Total consumer | 4,356 | 1,475 | 2,665 | 795 | 3,460 | 9,291 | 299,178 | 308,469 | |||||||||||||||||||||||
Leasing and other and overdrafts | 312 | 116 | 101 | 295 | 396 | 824 | 80,114 | 80,938 | |||||||||||||||||||||||
$ | 67,849 | $ | 34,839 | $ | 30,434 | $ | 203,539 | $ | 233,973 | $ | 336,661 | $ | 11,646,172 | $ | 11,982,833 | ||||||||||||||||
December 31, 2011 | |||||||||||||||||||||||||||||||
31-59 Days Past Due | 60-89 Days Past Due | ≥ 90 Days Past Due and Accruing | Non- accrual | Total ≥ 90 Days | Total Past Due | Current | Total | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||
Real estate - commercial mortgage | $ | 11,167 | $ | 14,437 | $ | 4,394 | $ | 109,412 | $ | 113,806 | $ | 139,410 | $ | 4,463,186 | $ | 4,602,596 | |||||||||||||||
Commercial - secured | 9,284 | 4,498 | 4,831 | 73,048 | 77,879 | 91,661 | 3,301,899 | 3,393,560 | |||||||||||||||||||||||
Commercial - unsecured | 671 | 515 | 409 | 2,656 | 3,065 | 4,251 | 241,557 | 245,808 | |||||||||||||||||||||||
Total commercial - industrial, financial and agricultural | 9,955 | 5,013 | 5,240 | 75,704 | 80,944 | 95,912 | 3,543,456 | 3,639,368 | |||||||||||||||||||||||
Real estate - home equity | 7,439 | 4,194 | 5,714 | 5,493 | 11,207 | 22,840 | 1,601,722 | 1,624,562 | |||||||||||||||||||||||
Real estate - residential mortgage | 23,877 | 13,246 | 8,502 | 7,834 | 16,336 | 53,459 | 1,043,733 | 1,097,192 | |||||||||||||||||||||||
Construction - commercial residential | 2,372 | 4,824 | 1,656 | 53,420 | 55,076 | 62,272 | 290,665 | 352,937 | |||||||||||||||||||||||
Construction - commercial | 31 | — | 128 | 4,347 | 4,475 | 4,506 | 204,875 | 209,381 | |||||||||||||||||||||||
Construction - other | 2,341 | — | 66 | 1,127 | 1,193 | 3,534 | 49,593 | 53,127 | |||||||||||||||||||||||
Total real estate - construction | 4,744 | 4,824 | 1,850 | 58,894 | 60,744 | 70,312 | 545,133 | 615,445 | |||||||||||||||||||||||
Consumer - direct | 2,706 | 1,305 | 2,833 | 368 | 3,201 | 7,212 | 157,157 | 164,369 | |||||||||||||||||||||||
Consumer - indirect | 1,997 | 440 | 183 | — | 183 | 2,620 | 151,112 | 153,732 | |||||||||||||||||||||||
Total consumer | 4,703 | 1,745 | 3,016 | 368 | 3,384 | 9,832 | 308,269 | 318,101 | |||||||||||||||||||||||
Leasing and other and overdrafts | 925 | 124 | 51 | 56 | 107 | 1,156 | 70,550 | 71,706 | |||||||||||||||||||||||
$ | 62,810 | $ | 43,583 | $ | 28,767 | $ | 257,761 | $ | 286,528 | $ | 392,921 | $ | 11,576,049 | $ | 11,968,970 |
Three months ended June 30 | Six months ended June 30 | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(in thousands) | |||||||||||||||
Amortized cost: | |||||||||||||||
Balance at beginning of period | $ | 35,259 | $ | 32,060 | $ | 34,666 | $ | 30,700 | |||||||
Originations of mortgage servicing rights | 4,058 | 2,010 | 6,836 | 4,668 | |||||||||||
Amortization | (2,314 | ) | (1,261 | ) | (4,499 | ) | (2,559 | ) | |||||||
Balance at end of period | $ | 37,003 | $ | 32,809 | $ | 37,003 | $ | 32,809 | |||||||
Valuation allowance | $ | (1,550 | ) | $ | (1,550 | ) | $ | (1,550 | ) | $ | (1,550 | ) | |||
Net MSRs at end of period | $ | 35,453 | 31,259 | $ | 35,453 | $ | 31,259 |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(in thousands) | |||||||||||||||
Stock-based compensation expense | $ | 2,337 | $ | 554 | $ | 3,050 | $ | 1,101 | |||||||
Tax benefit | (657 | ) | (119 | ) | (816 | ) | (255 | ) | |||||||
Stock-based compensation expense, net of tax | $ | 1,680 | $ | 435 | $ | 2,234 | $ | 846 |
Pension Plan | |||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(in thousands) | |||||||||||||||
Service cost (1) | $ | 39 | $ | 15 | $ | 78 | $ | 30 | |||||||
Interest cost | 806 | 853 | 1,612 | 1,706 | |||||||||||
Expected return on plan assets | (808 | ) | (837 | ) | (1,616 | ) | (1,674 | ) | |||||||
Net amortization and deferral | 420 | 72 | 840 | 144 | |||||||||||
Net periodic benefit cost | $ | 457 | $ | 103 | $ | 914 | $ | 206 |
(1) | The Pension Plan service cost recorded for the three and six months ended June 30, 2012 and 2011, respectively, was related to administrative costs associated with the plan and not due to the accrual of additional participant benefits. |
Postretirement Plan | |||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(in thousands) | |||||||||||||||
Service cost | $ | 53 | $ | 50 | $ | 106 | $ | 101 | |||||||
Interest cost | 87 | 107 | 174 | 214 | |||||||||||
Expected return on plan assets | (1 | ) | (1 | ) | (2 | ) | (2 | ) | |||||||
Net accretion and deferral | (91 | ) | (91 | ) | (182 | ) | (182 | ) | |||||||
Net periodic benefit cost | $ | 48 | $ | 65 | $ | 96 | $ | 131 |
June 30, 2012 | December 31, 2011 | ||||||||||||||
Notional Amount | Asset (Liability) Fair Value | Notional Amount | Asset (Liability) Fair Value | ||||||||||||
(in thousands) | |||||||||||||||
Interest Rate Locks with Customers: | |||||||||||||||
Positive fair values | $ | 387,362 | $ | 8,970 | $ | 181,583 | $ | 3,888 | |||||||
Negative fair values | 2,049 | (40 | ) | 1,593 | (10 | ) | |||||||||
Net interest rate locks with customers | 8,930 | 3,878 | |||||||||||||
Forward Commitments: | |||||||||||||||
Positive fair values | 4,626 | 29 | 3,178 | 13 | |||||||||||
Negative fair values | 365,114 | (4,553 | ) | 173,208 | (2,724 | ) | |||||||||
Net forward commitments | (4,524 | ) | (2,711 | ) | |||||||||||
Net derivative fair value asset | $ | 4,406 | $ | 1,167 |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(in thousands) | |||||||||||||||
Interest rate locks with customers | $ | 4,243 | $ | 82 | $ | 5,052 | $ | 2,002 | |||||||
Forward commitments | (5,159 | ) | (38 | ) | (1,813 | ) | (9,323 | ) | |||||||
Fair value gains (losses) on derivative financial instruments | $ | (916 | ) | $ | 44 | $ | 3,239 | $ | (7,321 | ) |
June 30, 2012 | December 31, 2011 | ||||||
(in thousands) | |||||||
Commitments to extend credit | $ | 3,992,822 | $ | 3,803,532 | |||
Standby letters of credit | 424,588 | 444,019 | |||||
Commercial letters of credit | 27,663 | 31,557 |
June 30, 2012 | December 31, 2011 | ||||||
(in thousands) | |||||||
Cost | $ | 68,779 | $ | 45,324 | |||
Fair value | 71,406 | 47,009 |
• | Level 1 – Inputs that represent quoted prices for identical instruments in active markets. |
• | Level 2 – Inputs that represent quoted prices for similar instruments in active markets, or quoted prices for identical instruments in non-active markets. Also includes valuation techniques whose inputs are derived principally from observable market data other than quoted prices, such as interest rates or other market-corroborated means. |
• | Level 3 – Inputs that are largely unobservable, as little or no market data exists for the instrument being valued. |
June 30, 2012 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(in thousands) | |||||||||||||||
Mortgage loans held for sale | $ | — | $ | 71,406 | $ | — | $ | 71,406 | |||||||
Available for sale investment securities: | |||||||||||||||
Equity securities | 29,300 | — | — | 29,300 | |||||||||||
U.S. Government securities | — | 327 | — | 327 | |||||||||||
U.S. Government sponsored agency securities | — | 3,992 | — | 3,992 | |||||||||||
State and municipal securities | — | 303,480 | — | 303,480 | |||||||||||
Corporate debt securities | — | 121,257 | 9,118 | 130,375 | |||||||||||
Collateralized mortgage obligations | — | 981,657 | — | 981,657 | |||||||||||
Mortgage-backed securities | — | 1,135,746 | — | 1,135,746 | |||||||||||
Auction rate securities | — | — | 203,282 | 203,282 | |||||||||||
Total available for sale investments | 29,300 | 2,546,459 | 212,400 | 2,788,159 | |||||||||||
Other financial assets | 13,746 | 8,999 | — | 22,745 | |||||||||||
Total assets | $ | 43,046 | $ | 2,626,864 | $ | 212,400 | $ | 2,882,310 | |||||||
Other financial liabilities | $ | 13,746 | $ | 4,593 | $ | — | $ | 18,339 |
December 31, 2011 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(in thousands) | |||||||||||||||
Mortgage loans held for sale | $ | — | $ | 47,009 | $ | — | $ | 47,009 | |||||||
Available for sale investment securities: | |||||||||||||||
Equity securities | 34,586 | — | — | 34,586 | |||||||||||
U.S. Government securities | — | 334 | — | 334 | |||||||||||
U.S. Government sponsored agency securities | — | 4,073 | — | 4,073 | |||||||||||
State and municipal securities | — | 322,018 | — | 322,018 | |||||||||||
Corporate debt securities | — | 114,017 | 9,289 | 123,306 | |||||||||||
Collateralized mortgage obligations | — | 1,001,209 | — | 1,001,209 | |||||||||||
Mortgage-backed securities | — | 880,097 | — | 880,097 | |||||||||||
Auction rate securities | — | — | 225,211 | 225,211 | |||||||||||
Total available for sale investments | 34,586 | 2,321,748 | 234,500 | 2,590,834 | |||||||||||
Other financial assets | 13,130 | 3,901 | — | 17,031 | |||||||||||
Total assets | $ | 47,716 | $ | 2,372,658 | $ | 234,500 | $ | 2,654,874 | |||||||
Other financial liabilities | $ | 13,130 | $ | 2,734 | $ | — | $ | 15,864 |
• | Mortgage loans held for sale – This category consists of mortgage loans held for sale that the Corporation has elected to measure at fair value. Fair values as of June 30, 2012 and December 31, 2011 were measured as the price that secondary market investors were offering for loans with similar characteristics. |
• | Available for sale investment securities – Included within this asset category are both equity and debt securities. Level 2 available for sale debt securities are valued by a third-party pricing service commonly used in the banking industry. The pricing service uses evaluated pricing models that vary based on asset class and incorporate available market information including quoted prices of investment securities with similar characteristics. Because many fixed income securities do not trade on a daily basis, evaluated pricing models use available information, as applicable, through processes such as benchmark yield curves, benchmarking of like securities, sector groupings, and matrix pricing. |
▪ | Equity securities – Equity securities consist of stocks of financial institutions ($22.6 million at June 30, 2012 and $27.9 million at December 31, 2011) and other equity investments ($6.6 million at June 30, 2012 and $6.7 million at December 31, 2011). These Level 1 investments are measured at fair value based on quoted prices for identical securities in active markets. Restricted equity securities issued by the FHLB and Federal Reserve Bank ($76.1 million at June 30, 2012 and $82.5 million at December 31, 2011) have been excluded from the preceding tables. |
▪ | U.S. Government securities/U.S. Government sponsored agency securities/State and municipal securities/Collateralized mortgage obligations/Mortgage-backed securities – These debt securities are classified as Level 2 investments. Fair values are determined by a third-party pricing service, as detailed above. |
▪ | Corporate debt securities – This category consists of subordinated debt issued by financial institutions ($46.0 million at June 30, 2012 and $41.3 million at December 31, 2011), single-issuer trust preferred securities issued by financial institutions ($76.8 million at June 30, 2012 and $74.4 million at December 31, 2011), pooled trust preferred securities issued by financial institutions ($5.0 million at June 30, 2012 and $5.1 million at December 31, 2011) and other corporate debt issued by non-financial institutions ($2.5 million at June 30, 2012 and December 31, 2011). |
• | Auction rate securities – Due to their illiquidity, ARCs are classified as Level 3 investments and are valued through the use of an expected cash flows model prepared by a third-party valuation expert. The assumptions used in preparing the expected cash flows model include estimates for coupon rates, time to maturity and market rates of return. The most significant unobservable input to the expected cash flows model is an assumed return to market liquidity sometime within the next five years. If the assumed return to market liquidity was lengthened beyond the next five years, this would result in a decrease in the fair value of these ARCs. Expected cash flows models performed prior to June 30, 2012 assumed a return to market liquidity sometime within the next three years. The three year expected term was based on the Corporation's assumption that market liquidity would resume, in some form, within a relatively short period of time. Although there has been a material reduction in the Corporation's outstanding ARCs, a more protracted period of sporadic trust refinancing and periodic tenders of bonds is expected. The Corporation believes that the trusts underlying the ARCs will self-liquidate as student loans are paid down. Based on this historical experience, the Corporation elected to increase the expected term as of June 30, 2012. |
• | Other financial assets – Included within this asset category are: Level 1 assets, consisting of mutual funds that are held in trust for employee deferred compensation plans and measured at fair value based on quoted prices for identical securities in active markets; and Level 2 assets, representing the fair value of mortgage banking derivatives in the form of interest rate locks and forward commitments with secondary market investors. The fair value of the Corporation’s interest rate locks and forward commitments are determined as the amounts that would be required to settle the derivative financial instruments at the balance sheet date. See Note I, "Derivative Financial Instruments," for additional information. |
• | Other financial liabilities – Included within this category are: Level 1 employee deferred compensation liabilities which represent amounts due to employees under the deferred compensation plans, described under the heading “Other financial assets” above and Level 2 mortgage banking derivatives, described under the heading "Other financial assets" above. |
Three months ended June 30, 2012 | |||||||||||
Available for Sale Investment Securities | |||||||||||
Pooled Trust Preferred Securities | Single-issuer Trust Preferred Securities | ARC Investments | |||||||||
(in thousands) | |||||||||||
Balance at March 31, 2012 | $ | 5,062 | $ | 4,360 | $ | 223,877 | |||||
Unrealized adjustment to fair value (1) | 137 | (262 | ) | (17,322 | ) | ||||||
Settlements - calls | (180 | ) | — | (4,193 | ) | ||||||
(Premium amortization) discount accretion (2) | (1 | ) | 2 | 920 | |||||||
Balance at June 30, 2012 | $ | 5,018 | $ | 4,100 | $ | 203,282 | |||||
Three months ended June 30, 2011 | |||||||||||
Balance at March 31, 2011 | $ | 4,816 | $ | 8,094 | $ | 256,413 | |||||
Realized adjustment to fair value (3) | (359 | ) | — | — | |||||||
Unrealized adjustment to fair value (1) | 1,110 | 280 | (1,308 | ) | |||||||
Settlements - calls | (133 | ) | (555 | ) | (976 | ) | |||||
(Premium amortization) discount accretion (2) | (1 | ) | — | 1,013 | |||||||
Balance at June 30, 2011 | $ | 5,433 | $ | 7,819 | $ | 255,142 | |||||
Six months ended June 30, 2012 | |||||||||||
Available for Sale Investment Securities | |||||||||||
Pooled Trust Preferred Securities | Single-issuer Trust Preferred Securities | ARC Investments | |||||||||
(in thousands) | |||||||||||
Balance at December 31, 2011 | $ | 5,109 | $ | 4,180 | $ | 225,211 | |||||
Unrealized adjustment to fair value (1) | 314 | (84 | ) | (19,486 | ) | ||||||
Settlements - calls | (403 | ) | — | (4,510 | ) | ||||||
(Premium amortization) discount accretion (2) | (2 | ) | 4 | 2,067 | |||||||
Balance at June 30, 2012 | $ | 5,018 | $ | 4,100 | $ | 203,282 | |||||
Six months ended June 30, 2011 | |||||||||||
Balance, December 31, 2010 | $ | 4,528 | $ | 8,583 | $ | 260,679 | |||||
Transfer to Level 3 from Level 2 (4) | — | (800 | ) | — | |||||||
Realized adjustment to fair value (3) | (1,353 | ) | — | — | |||||||
Unrealized adjustment to fair value (1) | 2,478 | 591 | (1,231 | ) | |||||||
Settlements - calls | (218 | ) | (555 | ) | (6,499 | ) | |||||
(Premium amortization) discount accretion (2) | (2 | ) | — | 2,193 | |||||||
Balance at June 30, 2011 | $ | 5,433 | $ | 7,819 | $ | 255,142 |
(1) | Pooled trust preferred securities, single-issuer trust preferred securities and ARCs are classified as available for sale investment securities; as such, the unrealized adjustment to fair value was recorded as an unrealized holding gain (loss) and included as a component of available for sale investment securities on the consolidated balance sheet. |
(2) | Included as a component of net interest income on the consolidated statements of income. |
(3) | Realized adjustments to fair value represent credit related other-than-temporary impairment charges that were recorded as a reduction to investment securities gains on the consolidated statements of income. |
(4) | During the six months ended June 30, 2011, one single-issuer trust preferred security with a fair value of $800,000 was reclassified as a Level 2 asset. |
June 30, 2012 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(in thousands) | |||||||||||||||
Net loans | $ | — | $ | — | $ | 203,635 | $ | 203,635 | |||||||
Other financial assets | — | — | 67,791 | 67,791 | |||||||||||
Total assets | $ | — | $ | — | $ | 271,426 | $ | 271,426 |
December 31, 2011 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(in thousands) | |||||||||||||||
Net loans | $ | — | $ | — | $ | 216,812 | $ | 216,812 | |||||||
Other financial assets | — | — | 63,919 | 63,919 | |||||||||||
Total assets | $ | — | $ | — | $ | 280,731 | $ | 280,731 |
• | Net loans – This category consists of loans that were evaluated for impairment under FASB ASC Section 310-10-35 and have been classified as Level 3 assets. The amount shown is the balance of impaired loans, net of the related allowance for loan losses. See Note E, "Loans and Allowance for Credit Losses," for additional details. |
• | Other financial assets – This category includes OREO ($32.3 million at June 30, 2012 and $30.8 million at December 31, 2011) and MSRs, net of the MSR valuation reserve ($35.5 million at June 30, 2012 and $33.1 million at December 31, 2011), both classified as Level 3 assets. |
June 30, 2012 | December 31, 2011 | ||||||||||||||
Book Value | Estimated Fair Value | Book Value | Estimated Fair Value | ||||||||||||
(in thousands) | |||||||||||||||
FINANCIAL ASSETS | |||||||||||||||
Cash and due from banks | $ | 242,811 | $ | 242,811 | $ | 292,598 | $ | 292,598 | |||||||
Interest-bearing deposits with other banks | 118,468 | 118,468 | 175,336 | 175,336 | |||||||||||
Loans held for sale (1) | 71,406 | 71,406 | 47,009 | 47,009 | |||||||||||
Securities held to maturity | 6,562 | 6,571 | 6,669 | 6,699 | |||||||||||
Securities available for sale (1) | 2,864,270 | 2,864,270 | 2,673,298 | 2,673,298 | |||||||||||
Loans, net of unearned income (1) | 11,982,833 | 11,943,390 | 11,968,970 | 11,992,586 | |||||||||||
Accrued interest receivable | 48,283 | 48,283 | 51,098 | 51,098 | |||||||||||
Other financial assets (1) | 144,910 | 144,910 | 315,952 | 315,952 | |||||||||||
FINANCIAL LIABILITIES | |||||||||||||||
Demand and savings deposits | $ | 8,497,839 | $ | 8,497,839 | $ | 8,511,789 | $ | 8,511,789 | |||||||
Time deposits | 3,734,645 | 3,771,367 | 4,013,950 | 4,056,247 | |||||||||||
Short-term borrowings | 931,681 | 931,681 | 597,033 | 597,033 | |||||||||||
Accrued interest payable | 23,725 | 23,725 | 25,686 | 25,686 | |||||||||||
Other financial liabilities (1) | 85,440 | 85,440 | 69,816 | 69,816 | |||||||||||
Federal Home Loan Bank advances and long-term debt | 908,809 | 864,733 | 1,040,149 | 982,010 |
(1) | Description of fair value determinations for these financial instruments, or certain financial instruments within these categories, measured at fair value on the Corporation’s consolidated balance sheets, are disclosed above. |
Assets | Liabilities | |
Cash and due from banks | Demand and savings deposits | |
Interest bearing deposits | Short-term borrowings | |
Accrued interest receivable | Accrued interest payable | |
Other financial liabilities |
As of or for the Three months ended June 30 | As of or for the Six months ended June 30 | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Income before income taxes (in thousands) | $ | 53,251 | $ | 49,539 | $ | 104,915 | $ | 95,699 | |||||||
Net income (in thousands) | $ | 39,891 | $ | 36,385 | $ | 78,023 | $ | 70,170 | |||||||
Diluted net income per share | $ | 0.20 | $ | 0.18 | $ | 0.39 | $ | 0.35 | |||||||
Return on average assets | 0.98 | % | 0.91 | % | 0.96 | % | 0.88 | % | |||||||
Return on average equity | 7.84 | % | 7.53 | % | 7.72 | % | 7.38 | % | |||||||
Net interest margin (1) | 3.78 | % | 3.95 | % | 3.81 | % | 3.93 | % | |||||||
Non-performing assets to total assets | 1.63 | % | 2.18 | % | 1.63 | % | 2.18 | % | |||||||
Net charge-offs to average loans | 1.55 | % | 1.30 | % | 1.24 | % | 1.36 | % |
(1) | Presented on an FTE basis, using a 35% Federal tax rate and statutory interest expense disallowances. See also the “Net Interest Income” section of Management’s Discussion. |
Three months ended June 30 | |||||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||
ASSETS | Average Balance | Interest (1) | Yield/ Rate | Average Balance | Interest (1) | Yield/ Rate | |||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Loans, net of unearned income (2) | $ | 11,965,704 | $ | 144,263 | 4.85 | % | $ | 11,883,019 | $ | 151,974 | 5.13 | % | |||||||||
Taxable investment securities (3) | 2,533,060 | 18,624 | 2.94 | 2,141,307 | 20,749 | 3.88 | |||||||||||||||
Tax-exempt investment securities (3) | 283,736 | 3,992 | 5.63 | 343,214 | 4,840 | 5.64 | |||||||||||||||
Equity securities (3) | 106,954 | 707 | 2.65 | 128,258 | 775 | 2.42 | |||||||||||||||
Total investment securities | 2,923,750 | 23,323 | 3.19 | 2,612,779 | 26,364 | 4.04 | |||||||||||||||
Loans held for sale | 55,813 | 538 | 3.85 | 36,793 | 492 | 5.34 | |||||||||||||||
Other interest-earning assets | 129,272 | 45 | 0.14 | 163,548 | 101 | 0.25 | |||||||||||||||
Total interest-earning assets | 15,074,539 | 168,169 | 4.48 | % | 14,696,139 | 178,931 | 4.88 | % | |||||||||||||
Noninterest-earning assets: | |||||||||||||||||||||
Cash and due from banks | 233,427 | 278,393 | |||||||||||||||||||
Premises and equipment | 216,881 | 207,141 | |||||||||||||||||||
Other assets | 1,093,673 | 1,098,116 | |||||||||||||||||||
Less: Allowance for loan losses | (259,327 | ) | (273,593 | ) | |||||||||||||||||
Total Assets | $ | 16,359,193 | $ | 16,006,196 | |||||||||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Demand deposits | $ | 2,484,730 | $ | 1,025 | 0.17 | % | $ | 2,352,961 | $ | 1,371 | 0.23 | % | |||||||||
Savings deposits | 3,292,620 | 1,510 | 0.18 | 3,356,361 | 3,258 | 0.39 | |||||||||||||||
Time deposits | 3,791,362 | 12,208 | 1.30 | 4,353,352 | 17,146 | 1.58 | |||||||||||||||
Total interest-bearing deposits | 9,568,712 | 14,743 | 0.62 | 10,062,674 | 21,775 | 0.87 | |||||||||||||||
Short-term borrowings | 961,900 | 411 | 0.17 | 455,831 | 168 | 0.15 | |||||||||||||||
FHLB advances and long-term debt | 929,318 | 11,301 | 4.88 | 1,025,637 | 12,347 | 4.82 | |||||||||||||||
Total interest-bearing liabilities | 11,459,930 | 26,455 | 0.93 | % | 11,544,142 | 34,290 | 1.19 | % | |||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||
Demand deposits | 2,669,152 | 2,362,614 | |||||||||||||||||||
Other | 183,794 | 162,202 | |||||||||||||||||||
Total Liabilities | 14,312,876 | 14,068,958 | |||||||||||||||||||
Shareholders’ equity | 2,046,317 | 1,937,238 | |||||||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 16,359,193 | $ | 16,006,196 | |||||||||||||||||
Net interest income/net interest margin (FTE) | 141,714 | 3.78 | % | 144,641 | 3.95 | % | |||||||||||||||
Tax equivalent adjustment | (4,184 | ) | (3,996 | ) | |||||||||||||||||
Net interest income | $ | 137,530 | $ | 140,645 |
(1) | Includes dividends earned on equity securities. |
(2) | Includes non-performing loans. |
(3) | Balances include amortized historical cost for available for sale securities; the related unrealized holding gains (losses) are included in other assets. |
2012 vs. 2011 Increase (decrease) due to change in | |||||||||||
Volume | Rate | Net | |||||||||
(in thousands) | |||||||||||
Interest income on: | |||||||||||
Loans, net of unearned income | $ | 1,002 | $ | (8,713 | ) | $ | (7,711 | ) | |||
Taxable investment securities | 3,389 | (5,514 | ) | (2,125 | ) | ||||||
Tax-exempt investment securities | (842 | ) | (6 | ) | (848 | ) | |||||
Equity securities | (135 | ) | 67 | (68 | ) | ||||||
Loans held for sale | 208 | (162 | ) | 46 | |||||||
Other interest-earning assets | (18 | ) | (38 | ) | (56 | ) | |||||
Total interest income | $ | 3,604 | $ | (14,366 | ) | $ | (10,762 | ) | |||
Interest expense on: | |||||||||||
Demand deposits | $ | 73 | $ | (419 | ) | $ | (346 | ) | |||
Savings deposits | (61 | ) | (1,687 | ) | (1,748 | ) | |||||
Time deposits | (2,061 | ) | (2,877 | ) | (4,938 | ) | |||||
Short-term borrowings | 212 | 31 | 243 | ||||||||
FHLB advances and long-term debt | (1,199 | ) | 153 | (1,046 | ) | ||||||
Total interest expense | $ | (3,036 | ) | $ | (4,799 | ) | $ | (7,835 | ) |
Three months ended June 30 | Increase (decrease) | |||||||||||||
2012 | 2011 | $ | % | |||||||||||
(dollars in thousands) | ||||||||||||||
Real estate – commercial mortgage | $ | 4,634,436 | $ | 4,430,046 | $ | 204,390 | 4.6 | % | ||||||
Commercial – industrial, financial and agricultural | 3,529,947 | 3,689,877 | (159,930 | ) | (4.3 | ) | ||||||||
Real estate – home equity | 1,599,702 | 1,623,438 | (23,736 | ) | (1.5 | ) | ||||||||
Real estate – residential mortgage | 1,179,513 | 1,023,471 | 156,042 | 15.2 | ||||||||||
Real estate – construction | 640,282 | 712,638 | (72,356 | ) | (10.2 | ) | ||||||||
Consumer | 307,071 | 332,960 | (25,889 | ) | (7.8 | ) | ||||||||
Leasing and other | 74,753 | 70,589 | 4,164 | 5.9 | ||||||||||
Total | $ | 11,965,704 | $ | 11,883,019 | $ | 82,685 | 0.7 | % |
Three months ended June 30 | Increase (decrease) | |||||||||||||
2012 | 2011 | $ | % | |||||||||||
(dollars in thousands) | ||||||||||||||
Noninterest-bearing demand | $ | 2,669,152 | $ | 2,362,614 | $ | 306,538 | 13.0 | % | ||||||
Interest-bearing demand | 2,484,730 | 2,352,961 | 131,769 | 5.6 | ||||||||||
Savings | 3,292,620 | 3,356,361 | (63,741 | ) | (1.9 | ) | ||||||||
Total demand and savings | 8,446,502 | 8,071,936 | 374,566 | 4.6 | ||||||||||
Time deposits | 3,791,362 | 4,353,352 | (561,990 | ) | (12.9 | ) | ||||||||
Total deposits | $ | 12,237,864 | $ | 12,425,288 | $ | (187,424 | ) | (1.5 | )% |
Three months ended June 30 | Increase (decrease) | |||||||||||||
2012 | 2011 | $ | % | |||||||||||
(dollars in thousands) | ||||||||||||||
Short-term borrowings: | ||||||||||||||
Customer repurchase agreements | $ | 226,216 | $ | 217,657 | $ | 8,559 | 3.9 | % | ||||||
Customer short-term promissory notes | 146,307 | 171,958 | (25,651 | ) | (14.9 | ) | ||||||||
Total short-term customer funding | 372,523 | 389,615 | (17,092 | ) | (4.4 | ) | ||||||||
Federal funds purchased and other | 589,377 | 66,216 | 523,161 | 790.1 | ||||||||||
Total short-term borrowings | 961,900 | 455,831 | 506,069 | 111.0 | ||||||||||
Long-term debt: | ||||||||||||||
FHLB advances | 559,780 | 641,851 | (82,071 | ) | (12.8 | ) | ||||||||
Other long-term debt | 369,538 | 383,786 | (14,248 | ) | (3.7 | ) | ||||||||
Total long-term debt | 929,318 | 1,025,637 | (96,319 | ) | (9.4 | ) | ||||||||
Total | $ | 1,891,218 | $ | 1,481,468 | $ | 409,750 | 27.7 | % |
Three months ended June 30 | |||||||
2012 | 2011 | ||||||
(dollars in thousands) | |||||||
Loans, net of unearned income, outstanding at end of period | $ | 11,982,833 | $ | 11,852,491 | |||
Daily average balance of loans, net of unearned income | $ | 11,965,704 | $ | 11,883,019 | |||
Balance of allowance for credit losses at beginning of period | $ | 258,137 | $ | 271,156 | |||
Loans charged off: | |||||||
Real estate – commercial mortgage | 23,699 | 7,074 | |||||
Commercial – industrial, financial and agricultural | 13,017 | 15,406 | |||||
Real estate – construction | 8,442 | 7,468 | |||||
Real estate – home equity | 2,789 | 1,650 | |||||
Real estate – residential mortgage | 1,492 | 7,707 | |||||
Consumer | 471 | 681 | |||||
Leasing and other | 630 | 689 | |||||
Total loans charged off | 50,540 | 40,675 | |||||
Recoveries of loans previously charged off: | |||||||
Real estate – commercial mortgage | 1,153 | 191 | |||||
Commercial – industrial, financial and agricultural | 717 | 1,003 | |||||
Real estate – construction | 1,539 | 79 | |||||
Real estate – home equity | 278 | 2 | |||||
Real estate – residential mortgage | 71 | 190 | |||||
Consumer | 281 | 433 | |||||
Leasing and other | 180 | 254 | |||||
Total recoveries | 4,219 | 2,152 | |||||
Net loans charged off | 46,321 | 38,523 | |||||
Provision for credit losses | 25,500 | 36,000 | |||||
Balance of allowance for credit losses at end of period | $ | 237,316 | $ | 268,633 | |||
Components of the Allowance for Credit Losses: | |||||||
Allowance for loan losses | $ | 235,737 | $ | 266,683 | |||
Reserve for unfunded lending commitments | 1,579 | 1,950 | |||||
Allowance for credit losses | $ | 237,316 | $ | 268,633 | |||
Selected Ratios: | |||||||
Net charge-offs to average loans (annualized) | 1.55 | % | 1.30 | % | |||
Allowance for credit losses to loans outstanding | 1.98 | % | 2.27 | % |
Real Estate - Commercial mortgage | Commercial - industrial, financial and agricultural | Real Estate - Construction | Total | ||||||||||||
(in thousands) | |||||||||||||||
Unpaid principal balance of loans sold | $ | 38,450 | $ | 15,270 | $ | 6,280 | $ | 60,000 | |||||||
Charge-offs prior to sale | (8,600 | ) | (3,750 | ) | (3,540 | ) | (15,890 | ) | |||||||
Net recorded investment in loans sold | 29,850 | 11,520 | 2,740 | 44,110 | |||||||||||
Proceeds from sale, net of selling expenses | 15,910 | 5,170 | 1,850 | 22,930 | |||||||||||
Total charge-off upon sale | $ | (13,940 | ) | $ | (6,350 | ) | $ | (890 | ) | $ | (21,180 | ) | |||
Existing allocation for credit losses on sold loans | $ | (15,090 | ) | $ | (7,510 | ) | $ | (1,520 | ) | $ | (24,120 | ) |
June 30, 2012 | December 31, 2011 | June 30, 2011 | |||||||||
(dollars in thousands) | |||||||||||
Non-accrual loans | $ | 203,539 | $ | 257,761 | $ | 274,973 | |||||
Loans 90 days past due and accruing | 30,434 | 28,767 | 35,869 | ||||||||
Total non-performing loans | 233,973 | 286,528 | 310,842 | ||||||||
Other real estate owned (OREO) | 32,338 | 30,803 | 37,493 | ||||||||
Total non-performing assets | $ | 266,311 | $ | 317,331 | $ | 348,335 | |||||
Non-accrual loans to total loans | 1.70 | % | 2.15 | % | 2.32 | % | |||||
Non-performing assets to total assets | 1.63 | % | 1.94 | % | 2.18 | % | |||||
Allowance for credit losses to non-performing loans | 101.43 | % | 90.11 | % | 86.42 | % | |||||
Non-performing assets to tangible common shareholders’ equity and allowance for credit losses | 15.34 | % | 18.60 | % | 20.78 | % |
June 30, 2012 | December 31, 2011 | June 30, 2011 | |||||||||
(in thousands) | |||||||||||
Real estate – commercial mortgage | $ | 82,179 | $ | 113,806 | $ | 102,724 | |||||
Commercial – industrial, financial and agricultural | 67,969 | 80,944 | 94,855 | ||||||||
Real estate – construction | 43,124 | 60,744 | 58,381 | ||||||||
Real estate – residential mortgage | 25,373 | 16,336 | 43,200 | ||||||||
Real estate – home equity | 11,472 | 11,207 | 9,440 | ||||||||
Consumer | 3,460 | 3,384 | 2,090 | ||||||||
Leasing | 396 | 107 | 152 | ||||||||
Total non-performing loans | $ | 233,973 | $ | 286,528 | $ | 310,842 |
June 30, 2012 | December 31, 2011 | June 30, 2011 | |||||||||
(in thousands) | |||||||||||
Real estate – residential mortgage | $ | 33,516 | $ | 32,331 | $ | 37,006 | |||||
Real estate – commercial mortgage | 32,481 | 22,425 | 30,735 | ||||||||
Real estate – construction | 10,030 | 7,645 | 5,589 | ||||||||
Commercial – industrial, financial and agricultural | 4,806 | 3,581 | 3,055 | ||||||||
Consumer and home equity | 620 | 193 | 258 | ||||||||
Total accruing TDRs | $ | 81,453 | $ | 66,175 | $ | 76,643 |
June 30, 2012 | December 31, 2011 | June 30, 2011 | |||||||||
(in thousands) | |||||||||||
Commercial properties | $ | 16,730 | $ | 15,184 | $ | 17,033 | |||||
Residential properties | 9,680 | 10,499 | 15,881 | ||||||||
Undeveloped land | 5,928 | 5,120 | 4,579 | ||||||||
Total OREO | $ | 32,338 | $ | 30,803 | $ | 37,493 |
2012 | 2011 | ||||||||||||||||||||||
31-89 Days | > 90 Days (1) | Total | 31-89 Days | > 90 Days (1) | Total | ||||||||||||||||||
Real estate – commercial mortgage | 0.41 | % | 1.78 | % | 2.19 | % | 0.57 | % | 2.32 | % | 2.89 | % | |||||||||||
Commercial – industrial, financial and agricultural | 0.66 | % | 1.91 | % | 2.57 | % | 0.54 | % | 2.58 | % | 3.12 | % | |||||||||||
Real estate – construction | 0.95 | % | 6.96 | % | 7.91 | % | 0.62 | % | 8.56 | % | 9.18 | % | |||||||||||
Real estate – residential mortgage | 2.94 | % | 2.15 | % | 5.09 | % | 3.37 | % | 4.22 | % | 7.59 | % | |||||||||||
Real estate – home equity | 0.83 | % | 0.71 | % | 1.54 | % | 0.74 | % | 0.58 | % | 1.32 | % | |||||||||||
Consumer, leasing and other | 1.61 | % | 0.99 | % | 2.60 | % | 1.22 | % | 0.56 | % | 1.78 | % | |||||||||||
Total | 0.86 | % | 1.95 | % | 2.81 | % | 0.85 | % | 2.63 | % | 3.48 | % | |||||||||||
Total dollars (in thousands) | $ | 102,688 | $ | 233,973 | $ | 336,661 | $ | 101,213 | $ | 310,842 | $ | 412,055 |
(1) | Includes non-accrual loans. |
Three months ended June 30 | Increase (decrease) | |||||||||||||
2012 | 2011 | $ | % | |||||||||||
(dollars in thousands) | ||||||||||||||
Overdraft fees | $ | 8,095 | $ | 8,029 | $ | 66 | 0.8 | % | ||||||
Cash management fees | 2,816 | 2,677 | 139 | 5.2 | ||||||||||
Other | 4,456 | 3,626 | 830 | 22.9 | ||||||||||
Service charges on deposit accounts | 15,367 | 14,332 | 1,035 | 7.2 | ||||||||||
Merchant fees | 3,376 | 2,516 | 860 | 34.2 | ||||||||||
Foreign currency processing income | 2,672 | 2,374 | 298 | 12.6 | ||||||||||
Debit card income | 2,209 | 4,610 | (2,401 | ) | (52.1 | ) | ||||||||
Letter of credit fees | 1,255 | 1,271 | (16 | ) | (1.3 | ) | ||||||||
Other | 1,995 | 1,938 | 57 | 2.9 | ||||||||||
Other service charges and fees | 11,507 | 12,709 | (1,202 | ) | (9.5 | ) | ||||||||
Mortgage banking income | 11,143 | 6,049 | 5,094 | 84.2 | ||||||||||
Investment management and trust services | 9,822 | 9,638 | 184 | 1.9 | ||||||||||
Credit card income | 2,018 | 1,826 | 192 | 10.5 | ||||||||||
Other | 1,969 | 1,560 | 409 | 26.2 | ||||||||||
Total, excluding investment securities gains (losses) | 51,826 | 46,114 | 5,712 | 12.4 | ||||||||||
Investment securities gains (losses) | 1,538 | (335 | ) | 1,873 | N/M | |||||||||
Total | $ | 53,364 | $ | 45,779 | $ | 7,585 | 16.6 | % |
Three months ended June 30 | Increase (decrease) | |||||||||||||
2012 | 2011 | $ | % | |||||||||||
(dollars in thousands) | ||||||||||||||
Salaries and employee benefits | $ | 60,091 | $ | 56,070 | $ | 4,021 | 7.2 | % | ||||||
Net occupancy expense | 11,205 | 10,874 | 331 | 3.0 | ||||||||||
Other outside services | 4,476 | 1,786 | 2,690 | 150.6 | ||||||||||
Data processing | 3,759 | 3,214 | 545 | 17.0 | ||||||||||
Equipment expense | 3,185 | 3,377 | (192 | ) | (5.7 | ) | ||||||||
FDIC insurance expense | 3,002 | 3,264 | (262 | ) | (8.0 | ) | ||||||||
Professional fees | 2,984 | 3,102 | (118 | ) | (3.8 | ) | ||||||||
OREO and repossession expense | 2,823 | 982 | 1,841 | 187.5 | ||||||||||
Marketing | 2,583 | 1,863 | 720 | 38.6 | ||||||||||
Software | 2,272 | 1,973 | 299 | 15.2 | ||||||||||
Operating risk loss | 2,055 | (8 | ) | 2,063 | N/M | |||||||||
Telecommunications | 1,478 | 2,020 | (542 | ) | (26.8 | ) | ||||||||
Supplies | 1,213 | 1,416 | (203 | ) | (14.3 | ) | ||||||||
Postage | 1,186 | 1,288 | (102 | ) | (7.9 | ) | ||||||||
Intangible amortization | 761 | 1,172 | (411 | ) | (35.1 | ) | ||||||||
Other | 9,070 | 8,492 | 578 | 6.8 | ||||||||||
Total | $ | 112,143 | $ | 100,885 | $ | 11,258 | 11.2 | % |
Six months ended June 30 | |||||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||
ASSETS | Average Balance | Interest (1) | Yield/ Rate | Average Balance | Interest (1) | Yield/ Rate | |||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Loans, net of unearned income (2) | $ | 11,972,338 | $ | 291,309 | 4.89 | % | $ | 11,902,124 | $ | 303,660 | 5.14 | % | |||||||||
Taxable investment securities (3) | 2,467,609 | 37,285 | 3.02 | 2,235,789 | 42,556 | 3.81 | |||||||||||||||
Tax-exempt investment securities (3) | 289,230 | 8,149 | 5.63 | 343,832 | 9,725 | 5.66 | |||||||||||||||
Equity securities (3) | 111,274 | 1,487 | 2.68 | 130,537 | 1,527 | 2.35 | |||||||||||||||
Total investment securities | 2,868,113 | 46,921 | 3.27 | 2,710,158 | 53,808 | 3.97 | |||||||||||||||
Loans held for sale | 48,145 | 969 | 4.02 | 41,082 | 992 | 4.83 | |||||||||||||||
Other interest-earning assets | 115,421 | 98 | 0.17 | 115,233 | 134 | 0.23 | |||||||||||||||
Total interest-earning assets | 15,004,017 | 339,297 | 4.55 | % | 14,768,597 | 358,594 | 4.89 | % | |||||||||||||
Noninterest-earning assets: | |||||||||||||||||||||
Cash and due from banks | 248,278 | 269,444 | |||||||||||||||||||
Premises and equipment | 214,725 | 207,263 | |||||||||||||||||||
Other assets | 1,098,269 | 1,100,319 | |||||||||||||||||||
Less: Allowance for loan losses | (262,709 | ) | (277,782 | ) | |||||||||||||||||
Total Assets | $ | 16,302,580 | $ | 16,067,841 | |||||||||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Demand deposits | $ | 2,474,591 | $ | 2,061 | 0.17 | % | $ | 2,337,615 | $ | 2,807 | 0.24 | % | |||||||||
Savings deposits | 3,316,827 | 3,320 | 0.20 | 3,319,778 | 6,616 | 0.40 | |||||||||||||||
Time deposits | 3,871,636 | 25,612 | 1.33 | 4,442,446 | 35,638 | 1.62 | |||||||||||||||
Total interest-bearing deposits | 9,663,054 | 30,993 | 0.64 | 10,099,839 | 45,061 | 0.90 | |||||||||||||||
Short-term borrowings | 845,001 | 692 | 0.16 | 538,786 | 422 | 0.16 | |||||||||||||||
FHLB advances and long-term debt | 956,310 | 22,966 | 4.82 | 1,043,481 | 24,938 | 4.80 | |||||||||||||||
Total interest-bearing liabilities | 11,464,365 | 54,651 | 0.96 | % | 11,682,106 | 70,421 | 1.21 | % | |||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||
Demand deposits | 2,617,120 | 2,300,750 | |||||||||||||||||||
Other | 189,631 | 166,541 | |||||||||||||||||||
Total Liabilities | 14,271,116 | 14,149,397 | |||||||||||||||||||
Shareholders’ equity | 2,031,464 | 1,918,444 | |||||||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 16,302,580 | $ | 16,067,841 | |||||||||||||||||
Net interest income/net interest margin (FTE) | 284,646 | 3.81 | % | 288,173 | 3.93 | % | |||||||||||||||
Tax equivalent adjustment | (8,421 | ) | (7,965 | ) | |||||||||||||||||
Net interest income | $ | 276,225 | $ | 280,208 |
(1) | Includes dividends earned on equity securities. |
(2) | Includes non-performing loans. |
(3) | Balances include amortized historical cost for available for sale securities. The related unrealized holding gains (losses) are included in other assets. |
2012 vs. 2011 Increase (decrease) due to change in | |||||||||||
Volume | Rate | Net | |||||||||
(in thousands) | |||||||||||
Interest income on: | |||||||||||
Loans, net of unearned income | $ | 1,877 | $ | (14,228 | ) | $ | (12,351 | ) | |||
Taxable investment securities | 4,097 | (9,368 | ) | (5,271 | ) | ||||||
Tax-exempt investment securities | (1,512 | ) | (64 | ) | (1,576 | ) | |||||
Equity securities | (239 | ) | 199 | (40 | ) | ||||||
Loans held for sale | 156 | (179 | ) | (23 | ) | ||||||
Other interest-earning assets | — | (36 | ) | (36 | ) | ||||||
Total interest income | $ | 4,379 | $ | (23,676 | ) | $ | (19,297 | ) | |||
Interest expense on: | |||||||||||
Demand deposits | $ | 158 | $ | (904 | ) | $ | (746 | ) | |||
Savings deposits | (6 | ) | (3,290 | ) | (3,296 | ) | |||||
Time deposits | (4,208 | ) | (5,817 | ) | (10,025 | ) | |||||
Short-term borrowings | 251 | 20 | 271 | ||||||||
FHLB advances and long-term debt | (2,076 | ) | 104 | (1,972 | ) | ||||||
Total interest expense | $ | (5,881 | ) | $ | (9,887 | ) | $ | (15,768 | ) |
Six months ended June 30 | Increase (decrease) | |||||||||||||
2012 | 2011 | $ | % | |||||||||||
(dollars in thousands) | ||||||||||||||
Real estate – commercial mortgage | $ | 4,625,969 | $ | 4,407,683 | $ | 218,286 | 5.0 | % | ||||||
Commercial – industrial, financial and agricultural | 3,557,731 | 3,698,430 | (140,699 | ) | (3.8 | ) | ||||||||
Real estate – home equity | 1,605,633 | 1,625,980 | (20,347 | ) | (1.3 | ) | ||||||||
Real estate – residential mortgage | 1,158,569 | 1,020,471 | 138,098 | 13.5 | ||||||||||
Real estate – construction | 640,928 | 745,912 | (104,984 | ) | (14.1 | ) | ||||||||
Consumer | 309,331 | 337,080 | (27,749 | ) | (8.2 | ) | ||||||||
Leasing and other | 74,177 | 66,568 | 7,609 | 11.4 | ||||||||||
Total | $ | 11,972,338 | $ | 11,902,124 | $ | 70,214 | 0.6 | % |
Six months ended June 30 | Increase (decrease) | |||||||||||||
2012 | 2011 | $ | % | |||||||||||
(dollars in thousands) | ||||||||||||||
Noninterest-bearing demand | $ | 2,617,120 | $ | 2,300,750 | $ | 316,370 | 13.8 | % | ||||||
Interest-bearing demand | 2,474,591 | 2,337,615 | 136,976 | 5.9 | ||||||||||
Savings | 3,316,827 | 3,319,778 | (2,951 | ) | (0.1 | ) | ||||||||
Total demand and savings | 8,408,538 | 7,958,143 | 450,395 | 5.7 | ||||||||||
Time deposits | 3,871,636 | 4,442,446 | (570,810 | ) | (12.8 | ) | ||||||||
Total deposits | $ | 12,280,174 | $ | 12,400,589 | $ | (120,415 | ) | (1.0 | )% |
Six months ended June 30 | Increase (decrease) | |||||||||||||
2012 | 2011 | $ | % | |||||||||||
(dollars in thousands) | ||||||||||||||
Short-term borrowings: | ||||||||||||||
Customer repurchase agreements | $ | 213,379 | $ | 215,307 | $ | (1,928 | ) | (0.9 | )% | |||||
Customer short-term promissory notes | 150,689 | 181,121 | (30,432 | ) | (16.8 | ) | ||||||||
Total short-term customer funding | 364,068 | 396,428 | (32,360 | ) | (8.2 | ) | ||||||||
Federal funds purchased and other | 480,933 | 142,358 | 338,575 | 237.8 | ||||||||||
Total short-term borrowings | 845,001 | 538,786 | 306,215 | 56.8 | ||||||||||
Long-term debt: | ||||||||||||||
FHLB advances | 586,115 | 659,781 | (73,666 | ) | (11.2 | ) | ||||||||
Other long-term debt | 370,195 | 383,700 | (13,505 | ) | (3.5 | ) | ||||||||
Total long-term debt | 956,310 | 1,043,481 | (87,171 | ) | (8.4 | ) | ||||||||
Total | $ | 1,801,311 | $ | 1,582,267 | $ | 219,044 | 13.8 | % |
Six months ended June 30 | |||||||
2012 | 2011 | ||||||
(dollars in thousands) | |||||||
Loans, net of unearned income outstanding at end of period | $ | 11,982,833 | $ | 11,852,491 | |||
Daily average balance of loans, net of unearned income | $ | 11,972,338 | $ | 11,902,124 | |||
Balance of allowance for credit losses at beginning of period | $ | 258,177 | $ | 275,498 | |||
Loans charged off: | |||||||
Real estate – commercial mortgage | 35,590 | 17,121 | |||||
Commercial – industrial, financial and agricultural | 18,686 | 28,742 | |||||
Real estate – construction | 17,013 | 21,362 | |||||
Real estate – home equity | 4,995 | 3,118 | |||||
Real estate – residential mortgage | 2,339 | 12,703 | |||||
Consumer | 1,105 | 1,972 | |||||
Leasing and other | 1,071 | 1,186 | |||||
Total loans charged off | 80,799 | 86,204 | |||||
Recoveries of loans previously charged off: | |||||||
Real estate – commercial mortgage | 1,969 | 1,726 | |||||
Commercial – industrial, financial and agricultural | 1,353 | 1,394 | |||||
Real estate – construction | 1,603 | 642 | |||||
Real estate – home equity | 298 | 3 | |||||
Real estate – residential mortgage | 144 | 234 | |||||
Consumer | 631 | 742 | |||||
Leasing and other | 440 | 598 | |||||
Total recoveries | 6,438 | 5,339 | |||||
Net loans charged off | 74,361 | 80,865 | |||||
Provision for credit losses | 53,500 | 74,000 | |||||
Balance of allowance for credit losses at end of period | $ | 237,316 | $ | 268,633 | |||
Net charge-offs to average loans (annualized) | 1.24 | % | 1.36 | % |
Six months ended June 30 | Increase (decrease) | |||||||||||||
2012 | 2011 | $ | % | |||||||||||
(dollars in thousands) | ||||||||||||||
Overdraft fees | $ | 16,060 | $ | 15,600 | $ | 460 | 2.9 | % | ||||||
Cash management fees | 5,429 | 5,127 | 302 | 5.9 | ||||||||||
Other | 8,720 | 6,910 | 1,810 | 26.2 | ||||||||||
Service charges on deposit accounts | 30,209 | 27,637 | 2,572 | 9.3 | ||||||||||
Merchant fees | 6,235 | 4,663 | 1,572 | 33.7 | ||||||||||
Foreign currency processing income | 5,064 | 4,572 | 492 | 10.8 | ||||||||||
Debit card income | 4,310 | 8,814 | (4,504 | ) | (51.1 | ) | ||||||||
Letter of credit fees | 2,572 | 2,527 | 45 | 1.8 | ||||||||||
Other | 3,881 | 3,615 | 266 | 7.4 | ||||||||||
Other service charges and fees | 22,062 | 24,191 | (2,129 | ) | (8.8 | ) | ||||||||
Mortgage banking income | 21,193 | 11,512 | 9,681 | 84.1 | ||||||||||
Investment management and trust services | 19,199 | 18,842 | 357 | 1.9 | ||||||||||
Credit card income | 3,916 | 3,422 | 494 | 14.4 | ||||||||||
Other | 5,676 | 3,686 | 1,990 | 54.0 | ||||||||||
Total, excluding investment securities gains | 102,255 | 89,290 | 12,965 | 14.5 | ||||||||||
Investment securities gains | 2,789 | 1,950 | 839 | 43.0 | ||||||||||
Total | $ | 105,044 | $ | 91,240 | $ | 13,804 | 15.1 | % |
Six months ended June 30 | Increase (decrease) | |||||||||||||
2012 | 2011 | $ | % | |||||||||||
(dollars in thousands) | ||||||||||||||
Salaries and employee benefits | $ | 120,451 | $ | 110,378 | $ | 10,073 | 9.1 | % | ||||||
Net occupancy expense | 22,140 | 22,240 | (100 | ) | (0.4 | ) | ||||||||
Data processing | 7,447 | 6,586 | 861 | 13.1 | ||||||||||
Other outside services | 6,786 | 3,410 | 3,376 | 99.0 | ||||||||||
Equipment expense | 6,554 | 6,509 | 45 | 0.7 | ||||||||||
FDIC insurance expense | 6,023 | 8,018 | (1,995 | ) | (24.9 | ) | ||||||||
OREO and repossession expense | 5,751 | 2,253 | 3,498 | 155.3 | ||||||||||
Professional fees | 5,566 | 5,951 | (385 | ) | (6.5 | ) | ||||||||
Operating risk loss | 5,423 | (470 | ) | 5,893 | N/M | |||||||||
Marketing | 5,055 | 4,699 | 356 | 7.6 | ||||||||||
Software | 4,447 | 4,004 | 443 | 11.1 | ||||||||||
Telecommunications | 3,379 | 4,192 | (813 | ) | (19.4 | ) | ||||||||
Postage | 2,471 | 2,694 | (223 | ) | (8.3 | ) | ||||||||
Supplies | 2,437 | 2,791 | (354 | ) | (12.7 | ) | ||||||||
Intangible amortization | 1,562 | 2,350 | (788 | ) | (33.5 | ) | ||||||||
Other | 17,362 | 16,144 | 1,218 | 7.5 | ||||||||||
Total | $ | 222,854 | $ | 201,749 | $ | 21,105 | 10.5 | % |
June 30, 2012 | December 31, 2011 | ||||||
(in thousands) | |||||||
Real-estate – commercial mortgage | $ | 4,653,097 | $ | 4,602,596 | |||
Commercial – industrial, financial and agricultural | 3,538,188 | 3,639,368 | |||||
Real-estate – home equity | 1,599,468 | 1,624,562 | |||||
Real-estate – residential mortgage | 1,183,613 | 1,097,192 | |||||
Real-estate – construction | 619,060 | 615,445 | |||||
Consumer | 308,469 | 318,101 | |||||
Leasing and other | 80,938 | 71,706 | |||||
Loans, net of unearned income | $ | 11,982,833 | $ | 11,968,970 |
June 30, 2012 | December 31, 2011 | Regulatory Minimum Capital Adequacy | ||||||
Total Capital (to Risk-Weighted Assets) | 15.4 | % | 15.2 | % | 8.0 | % | ||
Tier I Capital (to Risk-Weighted Assets) | 13.2 | % | 12.7 | % | 4.0 | % | ||
Tier I Capital (to Average Assets) | 10.6 | % | 10.3 | % | 4.0 | % | ||
Tangible Common Equity (to Risk-Weighted Assets) (1) | 11.8 | % | 11.4 | % | N/A |
(1) | Ending shareholders’ equity, net of goodwill and intangible assets, divided by risk-weighted assets. |
• | Increase the quantity and quality of capital required by proposing a new minimum Common Equity Tier 1 capital ratio of 4.50% of risk-weighted assets and raising the minimum Tier 1 capital ratio from 4.00% to 6.00% of risk-weighted assets; |
• | Retain the current minimum Total capital ratio of 8.00% of risk-weighted assets and the minimum Tier 1 leverage capital ratio at 4.00% of average assets; |
• | Introduce a “capital conservation buffer” of 2.50% above the minimum risk-based capital requirements, which must be maintained to avoid restrictions on capital distributions and certain discretionary bonus payments; and |
• | Revise the definition of capital to improve the ability of regulatory capital instruments to absorb losses. |
June 30, 2012 | |||||||
Amortized cost | Estimated fair value | ||||||
(in thousands) | |||||||
Single-issuer trust preferred securities | $ | 84,321 | $ | 76,823 | |||
Subordinated debt | 43,233 | 46,012 | |||||
Pooled trust preferred securities | 5,810 | 5,018 | |||||
Corporate debt securities issued by financial institutions | $ | 133,364 | $ | 127,853 |
Expected Maturity Period | Estimated | ||||||||||||||||||||||||||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Beyond | Total | Fair Value | ||||||||||||||||||||||||
Fixed rate loans (1) | $ | 1,007,715 | $ | 466,517 | $ | 370,120 | $ | 299,657 | $ | 227,684 | $ | 389,894 | $ | 2,761,587 | $ | 2,796,010 | |||||||||||||||
Average rate | 3.92 | % | 5.66 | % | 5.51 | % | 5.39 | % | 5.66 | % | 5.38 | % | 4.93 | % | |||||||||||||||||
Floating rate loans (1) (2) | 2,004,038 | 1,299,342 | 1,088,672 | 957,410 | 1,370,567 | 2,482,885 | 9,202,914 | 9,129,048 | |||||||||||||||||||||||
Average rate | 4.20 | % | 4.28 | % | 4.37 | % | 4.42 | % | 4.32 | % | 5.00 | % | 4.49 | % | |||||||||||||||||
Fixed rate investments (3) | 634,575 | 444,434 | 277,845 | 241,578 | 183,674 | 656,094 | 2,438,200 | 2,509,280 | |||||||||||||||||||||||
Average rate | 3.45 | % | 3.50 | % | 3.58 | % | 3.54 | % | 3.67 | % | 3.20 | % | 3.43 | % | |||||||||||||||||
Floating rate investments (3) | — | — | 238,521 | 4,915 | 4,910 | 52,388 | 300,734 | 256,141 | |||||||||||||||||||||||
Average rate | — | % | — | % | 2.74 | % | 1.17 | % | 1.14 | % | 2.84 | % | 2.71 | % | |||||||||||||||||
Other interest-earning assets | 189,874 | — | — | — | — | — | 189,874 | 189,874 | |||||||||||||||||||||||
Average rate | 1.93 | % | — | % | — | % | — | % | — | % | — | % | 1.93 | % | |||||||||||||||||
Total | $ | 3,836,202 | $ | 2,210,293 | $ | 1,975,158 | $ | 1,503,560 | $ | 1,786,835 | $ | 3,581,261 | $ | 14,893,309 | $ | 14,880,353 | |||||||||||||||
Average rate | 3.89 | % | 4.41 | % | 4.27 | % | 4.46 | % | 4.42 | % | 4.68 | % | 4.33 | % | |||||||||||||||||
Fixed rate deposits (4) | $ | 1,967,770 | $ | 719,306 | $ | 257,601 | $ | 153,721 | $ | 75,649 | $ | 36,735 | $ | 3,210,782 | $ | 3,247,504 | |||||||||||||||
Average rate | 1.16 | % | 1.63 | % | 1.99 | % | 2.32 | % | 1.82 | % | 2.11 | % | 1.41 | % | |||||||||||||||||
Floating rate deposits (5) | 4,425,895 | 656,282 | 456,829 | 360,890 | 258,975 | 114,562 | 6,273,433 | 6,273,433 | |||||||||||||||||||||||
Average rate | 0.21 | % | 0.14 | % | 0.13 | % | 0.11 | % | 0.11 | % | 0.18 | % | 0.19 | % | |||||||||||||||||
Fixed rate borrowings (6) | 29,049 | 6,028 | 151,197 | 549 | 571,445 | 158,787 | 917,055 | 884,987 | |||||||||||||||||||||||
Average rate | 0.46 | % | 5.50 | % | 4.57 | % | 4.49 | % | 4.48 | % | 6.23 | % | 4.68 | % | |||||||||||||||||
Floating rate borrowings (7) | 906,939 | — | — | — | — | 16,496 | 923,435 | 911,427 | |||||||||||||||||||||||
Average rate | 0.18 | % | — | % | — | % | — | % | — | % | 2.59 | % | 0.22 | % | |||||||||||||||||
Total | $ | 7,329,653 | $ | 1,381,616 | $ | 865,627 | $ | 515,160 | $ | 906,069 | $ | 326,580 | $ | 11,324,705 | $ | 11,317,351 | |||||||||||||||
Average rate | 0.46 | % | 0.94 | % | 1.46 | % | 0.77 | % | 3.01 | % | 3.46 | % | 0.90 | % |
(1) | Amounts are based on contractual payments and maturities, adjusted for expected prepayments. Excludes $18.3 million of overdraft deposit balances. |
(2) | Line of credit amounts are based on historical cash flow assumptions, with an average life of approximately 5 years. |
(3) | Amounts are based on contractual maturities; adjusted for expected prepayments on mortgage-backed securities and collateralized mortgage obligations and expected calls on agency and municipal securities. Excludes equity securities as such investments do not have maturity dates. |
(4) | Amounts are based on contractual maturities of time deposits. |
(5) | Estimated based on history of deposit flows. |
(6) | Amounts are based on contractual maturities of debt instruments, adjusted for possible calls. Amounts also include junior subordinated deferrable interest debentures. |
(7) | Amounts include Federal Funds purchased, short-term promissory notes and securities sold under agreements to repurchase, which mature in less than 90 days, in addition to junior subordinated deferrable interest debentures. |
Percent of Total Adjustable Rate Loans | |
One year | 29.5% |
Two years | 21.1 |
Three years | 16.8 |
Four years | 14.7 |
Five years | 11.7 |
Greater than five years | 6.2 |
Rate Shock | Annual change in net interest income | % Change | ||
+300 bp | + $ 49.6 million | +9.1% | ||
+200 bp | + $ 28.2 million | +5.2 | ||
+100 bp | + $ 8.2 million | +1.5 | ||
–100 bp (1) | – $ 17.1 million | –3.1 |
(1) | Because certain current short-term interest rates are at or below 1.00%, the 100 basis point downward shock assumes that corresponding interest rates approach an implied floor that, in effect, reflects a decrease of less than the full 100 basis points downward shock. |
FULTON FINANCIAL CORPORATION | ||||
Date: | August 9, 2012 | /s/ R. Scott Smith, Jr. | ||
R. Scott Smith, Jr. | ||||
Chairman and Chief Executive Officer | ||||
Date: | August 9, 2012 | /s/ Charles J. Nugent | ||
Charles J. Nugent | ||||
Senior Executive Vice President and | ||||
Chief Financial Officer |
3.1 | Articles of Incorporation, as amended and restated, of Fulton Financial Corporation– Incorporated by reference to Exhibit 3.1 of the Fulton Financial Corporation Current Report on Form 8-K dated June 24, 2011. | ||
3.2 | Bylaws of Fulton Financial Corporation as amended – Incorporated by reference to Exhibit 3.1 of the Fulton Financial Corporation Current Report on Form 8-K dated September 18, 2008. | ||
31.1 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||
31.2 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||
32.1 | Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||
32.2 | Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||
101 | Financial statements from the Quarterly Report on Form 10-Q of Fulton Financial Corporation for the quarter ended June 30, 2012, filed on August 9, 2012, formatted in XBRL: (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income (iv) the Consolidated Statements of Shareholders' in Equity, (v) the Consolidated Statement of Cash Flows and (vi) the Notes to Consolidated Financial Statements - filed herewith. | ||
1. | I have reviewed this quarterly report on Form 10-Q of Fulton Financial Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | August 9, 2012 | |
/s/ R. Scott Smith, Jr. | ||
R. Scott Smith, Jr. | ||
Chairman and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Fulton Financial Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | August 9, 2012 | |
/s/ Charles J. Nugent | ||
Charles J. Nugent | ||
Senior Executive Vice President and Chief Financial Officer |
Date: | August 9, 2012 | |
/s/ R. Scott Smith, Jr. | ||
R. Scott Smith, Jr. | ||
Chairman and Chief Executive Officer |
Date: | August 9, 2012 | |
/s/ Charles J. Nugent | ||
Charles J. Nugent | ||
Senior Executive Vice President and | ||
Chief Financial Officer |
Loans and Allowance for Credit Losses Summary of Delinquency and Non-Performing Status by Portfolio Segment (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2012
|
Dec. 31, 2011
|
||||||
---|---|---|---|---|---|---|---|---|
Loans, gross of unearned income | $ 11,990,099 | $ 11,975,964 | ||||||
Real Estate, Home Equity, Construction, Other, Consumer and Leasing [Member]
|
||||||||
Loans, gross of unearned income | 3,231,022 | 3,164,688 | ||||||
Percentage Of Total | 100.00% | 100.00% | ||||||
Real Estate, Home Equity, Construction, Other, Consumer and Leasing [Member] | Performing [Member]
|
||||||||
Loans, gross of unearned income | 3,134,130 | 3,073,867 | ||||||
Percentage Of Total | 97.00% | 97.10% | ||||||
Real Estate, Home Equity, Construction, Other, Consumer and Leasing [Member] | Delinquent [Member]
|
||||||||
Loans, gross of unearned income | 55,270 | [1] | 58,594 | [1] | ||||
Percentage Of Total | 1.70% | [1] | 1.90% | [1] | ||||
Real Estate, Home Equity, Construction, Other, Consumer and Leasing [Member] | Non-performing [Member]
|
||||||||
Loans, gross of unearned income | 41,622 | [2] | 32,227 | [2] | ||||
Percentage Of Total | 1.30% | [2] | 1.00% | [2] | ||||
Real-estate - home equity [Member]
|
||||||||
Loans, gross of unearned income | 1,599,468 | 1,624,562 | ||||||
Real-estate - home equity [Member] | Performing [Member]
|
||||||||
Loans, gross of unearned income | 1,574,781 | 1,601,722 | ||||||
Real-estate - home equity [Member] | Delinquent [Member]
|
||||||||
Loans, gross of unearned income | 13,215 | [1] | 11,633 | [1] | ||||
Real-estate - home equity [Member] | Non-performing [Member]
|
||||||||
Loans, gross of unearned income | 11,472 | [2] | 11,207 | [2] | ||||
Real-estate - residential mortgage [Member]
|
||||||||
Loans, gross of unearned income | 1,183,613 | 1,097,192 | ||||||
Real-estate - residential mortgage [Member] | Performing [Member]
|
||||||||
Loans, gross of unearned income | 1,123,426 | 1,043,733 | ||||||
Real-estate - residential mortgage [Member] | Delinquent [Member]
|
||||||||
Loans, gross of unearned income | 34,814 | [1] | 37,123 | [1] | ||||
Real-estate - residential mortgage [Member] | Non-performing [Member]
|
||||||||
Loans, gross of unearned income | 25,373 | [2] | 16,336 | [2] | ||||
Construction other [Member]
|
||||||||
Loans, gross of unearned income | 58,534 | 53,127 | ||||||
Construction other [Member] | Performing [Member]
|
||||||||
Loans, gross of unearned income | 56,631 | 49,593 | ||||||
Construction other [Member] | Delinquent [Member]
|
||||||||
Loans, gross of unearned income | 982 | [1] | 2,341 | [1] | ||||
Construction other [Member] | Non-performing [Member]
|
||||||||
Loans, gross of unearned income | 921 | [2] | 1,193 | [2] | ||||
Total Consumer
|
||||||||
Loans, gross of unearned income | 308,469 | 318,101 | ||||||
Total Consumer | Performing [Member]
|
||||||||
Loans, gross of unearned income | 299,178 | 308,269 | ||||||
Total Consumer | Delinquent [Member]
|
||||||||
Loans, gross of unearned income | 5,831 | [1] | 6,448 | [1] | ||||
Total Consumer | Non-performing [Member]
|
||||||||
Loans, gross of unearned income | 3,460 | [2] | 3,384 | [2] | ||||
Consumer - direct [Member]
|
||||||||
Loans, gross of unearned income | 160,734 | 164,369 | ||||||
Consumer - direct [Member] | Performing [Member]
|
||||||||
Loans, gross of unearned income | 153,624 | 157,157 | ||||||
Consumer - direct [Member] | Delinquent [Member]
|
||||||||
Loans, gross of unearned income | 3,810 | [1] | 4,011 | [1] | ||||
Consumer - direct [Member] | Non-performing [Member]
|
||||||||
Loans, gross of unearned income | 3,300 | [2] | 3,201 | [2] | ||||
Consumer - Indirect [Member]
|
||||||||
Loans, gross of unearned income | 147,735 | 153,732 | ||||||
Consumer - Indirect [Member] | Performing [Member]
|
||||||||
Loans, gross of unearned income | 145,554 | 151,112 | ||||||
Consumer - Indirect [Member] | Delinquent [Member]
|
||||||||
Loans, gross of unearned income | 2,021 | [1] | 2,437 | [1] | ||||
Consumer - Indirect [Member] | Non-performing [Member]
|
||||||||
Loans, gross of unearned income | 160 | [2] | 183 | [2] | ||||
Leasing and other and overdrafts [Member]
|
||||||||
Loans, gross of unearned income | 80,938 | 71,706 | ||||||
Leasing and other and overdrafts [Member] | Performing [Member]
|
||||||||
Loans, gross of unearned income | 80,114 | 70,550 | ||||||
Leasing and other and overdrafts [Member] | Delinquent [Member]
|
||||||||
Loans, gross of unearned income | 428 | [1] | 1,049 | [1] | ||||
Leasing and other and overdrafts [Member] | Non-performing [Member]
|
||||||||
Loans, gross of unearned income | $ 396 | [2] | $ 107 | [2] | ||||
|
Loans and Allowance for Credit Losses Allowance for Loan Losses by Portfolio Segment (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
|
|||||||||
Beginning Balance | $ 256,496 | $ 270,272 | $ 256,471 | $ 274,271 | ||||||||
Loans charged off | (50,540) | (40,675) | (80,799) | (86,204) | ||||||||
Recoveries of loans previously charged off | 4,219 | 2,152 | 6,438 | 5,339 | ||||||||
Net loans charged off | (46,321) | (38,523) | (74,361) | (80,865) | ||||||||
Provision for loan losses | 25,562 | [1] | 34,934 | 53,627 | [1] | 73,277 | ||||||
Allowance for Loan and Lease Losses, Impact of Change in Allowance Methodoloty | 0 | 0 | ||||||||||
Provision for Loan Losses, Including Impact of Change in Allowance Methodology | 34,934 | [1] | 73,277 | [1] | ||||||||
Ending Balance | 235,737 | 266,683 | 235,737 | 266,683 | ||||||||
Real-estate commercial mortage [Member]
|
||||||||||||
Beginning Balance | 81,652 | 48,558 | 85,112 | 40,831 | ||||||||
Loans charged off | (23,699) | (7,074) | (35,590) | (17,121) | ||||||||
Recoveries of loans previously charged off | 1,153 | 191 | 1,969 | 1,726 | ||||||||
Net loans charged off | (22,546) | (6,883) | (33,621) | (15,395) | ||||||||
Provision for loan losses | 10,763 | [1] | 9,040 | 18,378 | [1] | 25,279 | ||||||
Allowance for Loan and Lease Losses, Impact of Change in Allowance Methodoloty | 22,883 | 22,883 | ||||||||||
Provision for Loan Losses, Including Impact of Change in Allowance Methodology | 31,923 | [1] | 48,162 | [1] | ||||||||
Ending Balance | 69,869 | 73,598 | 69,869 | 73,598 | ||||||||
Commercial - industrial, financial, and agricultural
|
||||||||||||
Beginning Balance | 79,756 | 100,180 | 74,896 | 101,436 | ||||||||
Loans charged off | (13,017) | (15,406) | (18,686) | (28,742) | ||||||||
Recoveries of loans previously charged off | 717 | 1,003 | 1,353 | 1,394 | ||||||||
Net loans charged off | (12,300) | (14,403) | (17,333) | (27,348) | ||||||||
Provision for loan losses | 4,475 | [1] | 10,224 | 14,368 | [1] | 21,913 | ||||||
Allowance for Loan and Lease Losses, Impact of Change in Allowance Methodoloty | (13,388) | (13,388) | ||||||||||
Provision for Loan Losses, Including Impact of Change in Allowance Methodology | (3,164) | [1] | 8,525 | [1] | ||||||||
Ending Balance | 71,931 | 82,613 | 71,931 | 82,613 | ||||||||
Real-estate - home equity [Member]
|
||||||||||||
Beginning Balance | 13,083 | 5,656 | 12,841 | 6,454 | ||||||||
Loans charged off | (2,789) | (1,650) | (4,995) | (3,118) | ||||||||
Recoveries of loans previously charged off | 278 | 2 | 298 | 3 | ||||||||
Net loans charged off | (2,511) | (1,648) | (4,697) | (3,115) | ||||||||
Provision for loan losses | 3,872 | [1] | 1,862 | 6,300 | [1] | 2,531 | ||||||
Allowance for Loan and Lease Losses, Impact of Change in Allowance Methodoloty | 3,690 | 3,690 | ||||||||||
Provision for Loan Losses, Including Impact of Change in Allowance Methodology | 5,552 | [1] | 6,221 | [1] | ||||||||
Ending Balance | 14,444 | 9,560 | 14,444 | 9,560 | ||||||||
Real-estate - residential mortgage [Member]
|
||||||||||||
Beginning Balance | 24,851 | 19,575 | 22,986 | 17,425 | ||||||||
Loans charged off | (1,492) | (7,707) | (2,339) | (12,703) | ||||||||
Recoveries of loans previously charged off | 71 | 190 | 144 | 234 | ||||||||
Net loans charged off | (1,421) | (7,517) | (2,195) | (12,469) | ||||||||
Provision for loan losses | 3,281 | [1] | 11,958 | 5,920 | [1] | 19,060 | ||||||
Allowance for Loan and Lease Losses, Impact of Change in Allowance Methodoloty | 7,896 | 7,896 | ||||||||||
Provision for Loan Losses, Including Impact of Change in Allowance Methodology | 19,854 | [1] | 26,956 | [1] | ||||||||
Ending Balance | 26,711 | 31,912 | 26,711 | 31,912 | ||||||||
Real-estate - construction
|
||||||||||||
Beginning Balance | 31,186 | 55,491 | 30,066 | 58,117 | ||||||||
Loans charged off | (8,442) | (7,468) | (17,013) | (21,362) | ||||||||
Recoveries of loans previously charged off | 1,539 | 79 | 1,603 | 642 | ||||||||
Net loans charged off | (6,903) | (7,389) | (15,410) | (20,720) | ||||||||
Provision for loan losses | 1,276 | [1] | 7,239 | 10,903 | [1] | 17,944 | ||||||
Allowance for Loan and Lease Losses, Impact of Change in Allowance Methodoloty | (24,771) | (24,771) | ||||||||||
Provision for Loan Losses, Including Impact of Change in Allowance Methodology | (17,532) | [1] | (6,827) | [1] | ||||||||
Ending Balance | 25,559 | 30,570 | 25,559 | 30,570 | ||||||||
Consumer
|
||||||||||||
Beginning Balance | 1,643 | 4,736 | 2,083 | 4,669 | ||||||||
Loans charged off | (471) | (681) | (1,105) | (1,972) | ||||||||
Recoveries of loans previously charged off | 281 | 433 | 631 | 742 | ||||||||
Net loans charged off | (190) | (248) | (474) | (1,230) | ||||||||
Provision for loan losses | 363 | [1] | 343 | 207 | [1] | 1,392 | ||||||
Allowance for Loan and Lease Losses, Impact of Change in Allowance Methodoloty | (3,076) | (3,076) | ||||||||||
Provision for Loan Losses, Including Impact of Change in Allowance Methodology | (2,733) | [1] | (1,684) | [1] | ||||||||
Ending Balance | 1,816 | 1,755 | 1,816 | 1,755 | ||||||||
Leasing and other and overdrafts [Member]
|
||||||||||||
Beginning Balance | 3,274 | 2,576 | 2,397 | 3,840 | ||||||||
Loans charged off | (630) | (689) | (1,071) | (1,186) | ||||||||
Recoveries of loans previously charged off | 180 | 254 | 440 | 598 | ||||||||
Net loans charged off | (450) | (435) | (631) | (588) | ||||||||
Provision for loan losses | 419 | [1] | 590 | 1,477 | [1] | (521) | ||||||
Allowance for Loan and Lease Losses, Impact of Change in Allowance Methodoloty | (944) | (944) | ||||||||||
Provision for Loan Losses, Including Impact of Change in Allowance Methodology | (354) | [1] | (1,465) | [1] | ||||||||
Ending Balance | 3,243 | 1,787 | 3,243 | 1,787 | ||||||||
Unallocated
|
||||||||||||
Beginning Balance | 21,051 | 33,500 | 26,090 | 41,499 | ||||||||
Loans charged off | 0 | 0 | 0 | 0 | ||||||||
Recoveries of loans previously charged off | 0 | 0 | 0 | 0 | ||||||||
Net loans charged off | 0 | 0 | 0 | 0 | ||||||||
Provision for loan losses | 1,113 | [1] | (6,322) | (3,926) | [1] | (14,321) | ||||||
Allowance for Loan and Lease Losses, Impact of Change in Allowance Methodoloty | 7,710 | 7,710 | ||||||||||
Provision for Loan Losses, Including Impact of Change in Allowance Methodology | 1,388 | [1] | (6,611) | [1] | ||||||||
Ending Balance | $ 22,164 | [2] | $ 34,888 | [2] | $ 22,164 | [2] | $ 34,888 | [2] | ||||
|
Fair Value Measurements Assets Measured at Fair Value on a Nonrecurring Basis (Details) (Fair Value, Measurements, Nonrecurring [Member], USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Level 1 [Member]
|
||
Net loans | $ 0 | $ 0 |
Assets, Fair Value Disclosure | 0 | 0 |
Level 1 [Member] | Other Assets [Member]
|
||
Other Finanical Assets, Fair Value Disclosure | 0 | 0 |
Level 2 [Member]
|
||
Net loans | 0 | 0 |
Assets, Fair Value Disclosure | 0 | 0 |
Level 2 [Member] | Other Assets [Member]
|
||
Other Finanical Assets, Fair Value Disclosure | 0 | 0 |
Level 3 [Member]
|
||
Net loans | 203,635 | 216,812 |
Assets, Fair Value Disclosure | 271,426 | 280,731 |
Level 3 [Member] | Other Assets [Member]
|
||
Other Finanical Assets, Fair Value Disclosure | 67,791 | 63,919 |
Total [Member]
|
||
Net loans | 203,635 | 216,812 |
Assets, Fair Value Disclosure | 271,426 | 280,731 |
Total [Member] | Other Assets [Member]
|
||
Other Finanical Assets, Fair Value Disclosure | $ 67,791 | $ 63,919 |
Loans and Allowance for Credit Losses Non-Performing Assets (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Receivables [Abstract] | ||
Non-accrual loans | $ 203,539 | $ 257,761 |
Accruing loans greater than 90 days past due | 30,434 | 28,767 |
Total non-performing loans | 233,973 | 286,528 |
Other real estate owned (OREO) | 32,338 | 30,803 |
Total non-performing assets | $ 266,311 | $ 317,331 |
Loans and Allowance for Credit Losses Allowance for Credit Losses (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2012
|
Mar. 31, 2012
|
Dec. 31, 2011
|
Jun. 30, 2011
|
Mar. 31, 2011
|
Dec. 31, 2010
|
---|---|---|---|---|---|---|
Loans and Leases Receivable, Allowance [Abstract] | ||||||
Loans and Leases Receivable, Allowance | $ 235,737 | $ 256,496 | $ 256,471 | $ 266,683 | $ 270,272 | $ 274,271 |
Reserve For Unfunded Lending Commitments | 1,579 | 1,706 | ||||
Financing Receivable, Allowance for Credit Losses | $ 237,316 | $ 258,137 | $ 258,177 | $ 268,633 | $ 271,156 | $ 275,498 |
Fair Value Measurements (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2012
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Following is a summary of the Corporation’s assets and liabilities measured at fair value on a recurring basis and reported on the consolidated balance sheets:
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Schedule of Changes in Assets and Liabilities Measured at Fair Value on a Recurring Basis using Level 3 Inputs | above. The following table presents the changes in the Corporation’s assets and liabilities measured at fair value on a recurring basis using unobservable inputs (Level 3) for the three and six months ended June 30, 2012 and 2011:
|
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Fair Value, Assets and Liabilities Measured on Nonrecurring Basis | Certain financial assets are not measured at fair value on an ongoing basis but are subject to fair value measurement in certain circumstances, such as upon their acquisition or when there is evidence of impairment. The following table presents the Corporation’s financial assets measured at fair value on a nonrecurring basis and reported on the Corporation’s consolidated balance sheets:
|
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Details of Book Value and Fair Value of Financial Instruments | As required by FASB ASC Section 825-10-50, the following table details the book values and estimated fair values of the Corporation’s financial instruments as of June 30, 2012 and December 31, 2011. In addition, a general description of the methods and assumptions used to estimate such fair values is also provided. Fair values of financial instruments are significantly affected by assumptions used, principally the timing of future cash flows and discount rates. Because assumptions are inherently subjective in nature, the estimated fair values cannot be substantiated by comparison to independent market quotes and, in many cases, the estimated fair values could not necessarily be realized in an immediate sale or settlement of the instrument. The aggregate fair value amounts presented do not necessarily represent management’s estimate of the underlying value of the Corporation.
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Schedule of Financial Instruments Classified as Predominantly Short-Term Instruments | The following instruments are predominantly short-term:
|
Common Stock Repurchase Plan (Details)
In Millions, unless otherwise specified |
Jun. 30, 2012
|
---|---|
Common Stock Share Repurchase Plan [Abstract] | |
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 5 |
AuthorizedShareRepurchasePlanPercentOfCommonSharesOutstanding | 2.50% |
Investment Securities (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2012
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Amortized Cost and Fair Values of Investment Securities | The following table presents the amortized cost and estimated fair values of investment securities:
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Schedule of Amortized Cost and Fair Values of Debt Securities by Contractual Maturities | The amortized cost and estimated fair values of debt securities as of June 30, 2012, by contractual maturity, are shown in the following table. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
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Summary of Gains and Losses from Equity and Debt Securities, and Losses Recognized from Other-than-Temporary Impairment | The following table presents information related to the gains and losses on the sales of equity and debt securities, and losses recognized for the other-than-temporary impairment of investments:
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Summary of Cumulative Other-than-Temporary Impairment Charges Recognized in Earnings for Pooled Trust Preferred Securities Held | The following table presents a summary of the cumulative credit related other-than-temporary impairment charges, recognized as components of earnings, for debt securities still held by the Corporation at June 30, 2012 and 2011:
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Gross Unrealized Losses and Fair Values of Investments by Category and Length of Time in Continuous Unrealized Loss Position | The following table presents the gross unrealized losses and estimated fair values of investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at June 30, 2012:
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||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Amortized Cost and Fair Values of Corporate Debt Securities | The following table presents the amortized cost and estimated fair values of corporate debt securities:
|
Loans and Allowance for Credit Losses Allowance on Sold Loans (Details) (USD $)
In Thousands, unless otherwise specified |
1 Months Ended |
---|---|
Jun. 30, 2012
|
|
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Unpaid Principal Balance, Loans Sold | $ 60,000 |
Loan Charge-offs Prior to Sale, Loans Sold | (15,890) |
Recorded Investment, Loans Sold | 44,110 |
Proceeds From Sale Of Loans Receivable, Net of Selling Expenses | 22,930 |
Charge-offs Upon Sale, Loan Sold | (21,180) |
Allowance for Loan and Lease Losses, Loans Sold | (24,120) |
Real-estate commercial mortage [Member]
|
|
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Unpaid Principal Balance, Loans Sold | 38,450 |
Loan Charge-offs Prior to Sale, Loans Sold | (8,600) |
Recorded Investment, Loans Sold | 29,850 |
Proceeds From Sale Of Loans Receivable, Net of Selling Expenses | 15,910 |
Charge-offs Upon Sale, Loan Sold | (13,940) |
Allowance for Loan and Lease Losses, Loans Sold | (15,090) |
Commercial - industrial, financial, and agricultural
|
|
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Unpaid Principal Balance, Loans Sold | 15,270 |
Loan Charge-offs Prior to Sale, Loans Sold | (3,750) |
Recorded Investment, Loans Sold | 11,520 |
Proceeds From Sale Of Loans Receivable, Net of Selling Expenses | 5,170 |
Charge-offs Upon Sale, Loan Sold | (6,350) |
Allowance for Loan and Lease Losses, Loans Sold | (7,510) |
Real-estate - construction
|
|
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Unpaid Principal Balance, Loans Sold | 6,280 |
Loan Charge-offs Prior to Sale, Loans Sold | (3,540) |
Recorded Investment, Loans Sold | 2,740 |
Proceeds From Sale Of Loans Receivable, Net of Selling Expenses | 1,850 |
Charge-offs Upon Sale, Loan Sold | (890) |
Allowance for Loan and Lease Losses, Loans Sold | $ (1,520) |
Investment Securities Gross Unrealized Losses and Fair Values of Investments by Category and Length of Time in a Continuous Unrealized Loss Position (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2012
|
---|---|
Estimated Fair Value, Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 138,531 |
Unrealized Losses, Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | (4,676) |
Estimated Fair Value, Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 228,607 |
Unrealized Losses, Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses, | (43,713) |
Estimated Fair Value, Total | 367,138 |
Unrealized Losses, Total | (48,389) |
U.S. Government-Sponsored Agency Securities [Member]
|
|
Estimated Fair Value, Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 112 |
Unrealized Losses, Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | (1) |
Estimated Fair Value, Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 5,344 |
Unrealized Losses, Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses, | (27) |
Estimated Fair Value, Total | 5,456 |
Unrealized Losses, Total | (28) |
State and Municipal Securities [Member]
|
|
Estimated Fair Value, Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 8,356 |
Unrealized Losses, Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | (37) |
Estimated Fair Value, Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 |
Unrealized Losses, Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses, | 0 |
Estimated Fair Value, Total | 8,356 |
Unrealized Losses, Total | (37) |
Corporate Debt Securities [Member]
|
|
Estimated Fair Value, Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 6,942 |
Unrealized Losses, Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | (1,678) |
Estimated Fair Value, Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 37,562 |
Unrealized Losses, Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses, | (9,824) |
Estimated Fair Value, Total | 44,504 |
Unrealized Losses, Total | (11,502) |
Collateralized Mortgage Obligations [Member]
|
|
Estimated Fair Value, Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 95,032 |
Unrealized Losses, Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | (283) |
Estimated Fair Value, Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 |
Unrealized Losses, Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses, | 0 |
Estimated Fair Value, Total | 95,032 |
Unrealized Losses, Total | (283) |
Auction Rate Securities [Member]
|
|
Estimated Fair Value, Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 21,868 |
Unrealized Losses, Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | (2,064) |
Estimated Fair Value, Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 181,414 |
Unrealized Losses, Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses, | (33,062) |
Estimated Fair Value, Total | 203,282 |
Unrealized Losses, Total | (35,126) |
Debt Securities [Member]
|
|
Estimated Fair Value, Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 132,310 |
Unrealized Losses, Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | (4,063) |
Estimated Fair Value, Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 224,320 |
Unrealized Losses, Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses, | (42,913) |
Estimated Fair Value, Total | 356,630 |
Unrealized Losses, Total | (46,976) |
Equity Securities [Member]
|
|
Estimated Fair Value, Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 6,221 |
Unrealized Losses, Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Losses | (613) |
Estimated Fair Value, Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 4,287 |
Unrealized Losses, Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Losses, | (800) |
Estimated Fair Value, Total | 10,508 |
Unrealized Losses, Total | $ (1,413) |
Investment Securities Schedule of Amortized Cost and Fair Values of Investment Securities (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Statement [Line Items] | ||
Held-to-maturity Securities | $ 6,562 | $ 6,669 |
Held-to-maturity Securities, Unrecognized Holding Gain | 36 | 44 |
Held-to-maturity Securities, Unrecognized Holding Loss | (27) | (14) |
Held-to-maturity Securities, Fair Value | 6,571 | 6,699 |
Available-for-sale Securities, Amortized Cost Basis | 2,836,458 | 2,633,226 |
Available-for-sale Securities, Gross Unrealized Gains | 76,174 | 74,424 |
Available-for-sale Securities, Gross Unrealized Losses | (48,362) | (34,352) |
Available-for-sale Securities | 2,864,270 | 2,673,298 |
Equity Securities [Member]
|
||
Statement [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 104,086 | 117,486 |
Available-for-sale Securities, Gross Unrealized Gains | 2,738 | 2,383 |
Available-for-sale Securities, Gross Unrealized Losses | (1,413) | (2,819) |
Available-for-sale Securities | 105,411 | 117,050 |
U.S. Government Securities [Member]
|
||
Statement [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 327 | 334 |
Available-for-sale Securities, Gross Unrealized Gains | 0 | 0 |
Available-for-sale Securities, Gross Unrealized Losses | 0 | 0 |
Available-for-sale Securities | 327 | 334 |
U.S. Government-Sponsored Agency Securities [Member]
|
||
Statement [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 3,939 | 3,987 |
Available-for-sale Securities, Gross Unrealized Gains | 54 | 87 |
Available-for-sale Securities, Gross Unrealized Losses | (1) | (1) |
Available-for-sale Securities | 3,992 | 4,073 |
State and Municipal Securities [Member]
|
||
Statement [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 289,364 | 306,186 |
Available-for-sale Securities, Gross Unrealized Gains | 14,153 | 15,832 |
Available-for-sale Securities, Gross Unrealized Losses | (37) | 0 |
Available-for-sale Securities | 303,480 | 322,018 |
Corporate Debt Securities [Member]
|
||
Statement [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 135,886 | 132,855 |
Available-for-sale Securities, Gross Unrealized Gains | 5,991 | 4,979 |
Available-for-sale Securities, Gross Unrealized Losses | (11,502) | (14,528) |
Available-for-sale Securities | 130,375 | 123,306 |
Collateralized Mortgage Obligations [Member]
|
||
Statement [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 965,499 | 982,851 |
Available-for-sale Securities, Gross Unrealized Gains | 16,441 | 19,186 |
Available-for-sale Securities, Gross Unrealized Losses | (283) | (828) |
Available-for-sale Securities | 981,657 | 1,001,209 |
Mortgage-Backed Securities [Member]
|
||
Statement [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 1,098,949 | 848,675 |
Available-for-sale Securities, Gross Unrealized Gains | 36,797 | 31,837 |
Available-for-sale Securities, Gross Unrealized Losses | 0 | (415) |
Available-for-sale Securities | 1,135,746 | 880,097 |
Auction Rate Securities [Member]
|
||
Statement [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 238,408 | 240,852 |
Available-for-sale Securities, Gross Unrealized Gains | 0 | 120 |
Available-for-sale Securities, Gross Unrealized Losses | (35,126) | (15,761) |
Available-for-sale Securities | 203,282 | 225,211 |
U.S. Government-Sponsored Agency Securities [Member]
|
||
Statement [Line Items] | ||
Held-to-maturity Securities | 6,001 | 5,987 |
Held-to-maturity Securities, Unrecognized Holding Gain | 0 | 0 |
Held-to-maturity Securities, Unrecognized Holding Loss | (27) | (14) |
Held-to-maturity Securities, Fair Value | 5,974 | 5,973 |
State and Municipal Securities [Member]
|
||
Statement [Line Items] | ||
Held-to-maturity Securities | 179 | 179 |
Held-to-maturity Securities, Unrecognized Holding Gain | 0 | 0 |
Held-to-maturity Securities, Unrecognized Holding Loss | 0 | 0 |
Held-to-maturity Securities, Fair Value | 179 | 179 |
Mortgage-Backed Securities [Member]
|
||
Statement [Line Items] | ||
Held-to-maturity Securities | 382 | 503 |
Held-to-maturity Securities, Unrecognized Holding Gain | 36 | 44 |
Held-to-maturity Securities, Unrecognized Holding Loss | 0 | 0 |
Held-to-maturity Securities, Fair Value | $ 418 | $ 547 |
Loans and Allowance for Credit Losses Average Impaired Loans by Class Segment (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
|
|||||||
Financing Receivable, Impaired [Line Items] | ||||||||||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | $ 101,594 | $ 97,375 | $ 104,375 | $ 111,009 | ||||||
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 195 | [1] | 109 | [1] | 302 | [1] | 902 | [1] | ||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 191,819 | 235,634 | 195,694 | 302,198 | ||||||
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 596 | [1] | 676 | [1] | 1,147 | [1] | 3,265 | [1] | ||
Impaired Financing Receivable, Average Recorded Investment | 293,413 | 333,009 | 300,069 | 413,207 | ||||||
Impaired Financing Receivable, Interest Income, Accrual Method | 791 | [1] | 785 | [1] | 1,449 | [1] | 4,167 | [1] | ||
Real-estate commercial mortage [Member]
|
||||||||||
Financing Receivable, Impaired [Line Items] | ||||||||||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 46,502 | 41,139 | 46,591 | 45,510 | ||||||
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 127 | [1] | 87 | [1] | 198 | [1] | 490 | [1] | ||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 64,733 | 70,441 | 69,677 | 81,650 | ||||||
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 161 | [1] | 150 | [1] | 283 | [1] | 989 | [1] | ||
Commercial - Secured [Member]
|
||||||||||
Financing Receivable, Impaired [Line Items] | ||||||||||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 21,798 | 32,313 | 24,012 | 30,790 | ||||||
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 10 | [1] | 15 | [1] | 17 | [1] | 161 | [1] | ||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 47,437 | 47,747 | 47,508 | 97,723 | ||||||
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 20 | [1] | 22 | [1] | 33 | [1] | 1,199 | [1] | ||
Commercial - unsecured [Member]
|
||||||||||
Financing Receivable, Impaired [Line Items] | ||||||||||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 13 | 0 | 9 | 196 | ||||||
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 0 | [1] | 0 | [1] | 0 | [1] | 3 | [1] | ||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 2,822 | 3,193 | 2,811 | 4,996 | ||||||
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 1 | [1] | 2 | [1] | 2 | [1] | 33 | [1] | ||
Real-estate - home equity [Member]
|
||||||||||
Financing Receivable, Impaired [Line Items] | ||||||||||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 542 | 0 | 428 | 0 | ||||||
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | ||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 6,813 | 0 | 6,306 | 0 | ||||||
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 4 | [1] | 0 | [1] | 4 | [1] | 0 | [1] | ||
Real-estate - residential mortgage [Member]
|
||||||||||
Financing Receivable, Impaired [Line Items] | ||||||||||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 1,240 | 0 | 826 | 7,071 | ||||||
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 11 | [1] | 0 | [1] | 13 | [1] | 43 | [1] | ||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 41,731 | 71,807 | 41,127 | 54,044 | ||||||
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 370 | [1] | 487 | [1] | 760 | [1] | 577 | [1] | ||
Construction - Commercial Residential [Member]
|
||||||||||
Financing Receivable, Impaired [Line Items] | ||||||||||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 28,734 | 20,322 | 29,567 | 24,333 | ||||||
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 43 | [1] | 6 | [1] | 68 | [1] | 184 | [1] | ||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 24,210 | 40,219 | 24,684 | 61,421 | ||||||
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 35 | [1] | 13 | [1] | 57 | [1] | 448 | [1] | ||
Construction - Commercial [Member]
|
||||||||||
Financing Receivable, Impaired [Line Items] | ||||||||||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 2,765 | 3,601 | 2,942 | 3,109 | ||||||
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 4 | [1] | 1 | [1] | 6 | [1] | 21 | [1] | ||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 2,854 | 313 | 2,252 | 1,089 | ||||||
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 4 | [1] | 0 | [1] | 6 | [1] | 17 | [1] | ||
Construction other [Member]
|
||||||||||
Financing Receivable, Impaired [Line Items] | ||||||||||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 1,047 | 1,687 | 1,073 | 1,124 | ||||||
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 1 | [1] | 0 | [1] | 2 | [1] | 0 | [1] | ||
Consumer - direct [Member]
|
||||||||||
Financing Receivable, Impaired [Line Items] | ||||||||||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 8 | 150 | 128 | 100 | ||||||
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 0 | [1] | 2 | [1] | 0 | [1] | 2 | [1] | ||
Leasing and other and overdrafts [Member]
|
||||||||||
Financing Receivable, Impaired [Line Items] | ||||||||||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 164 | 77 | 128 | 51 | ||||||
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | $ 0 | [1] | $ 0 | [1] | $ 0 | [1] | $ 0 | [1] | ||
|
Fair Value Option Summary of Corporation's Mortgage Loans Held for Sale (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
|
Dec. 31, 2011
|
Jun. 30, 2012
Mortgage Loans Held For Sale [Member]
|
Jun. 30, 2011
Mortgage Loans Held For Sale [Member]
|
Jun. 30, 2012
Mortgage Loans Held For Sale [Member]
|
Jun. 30, 2011
Mortgage Loans Held For Sale [Member]
|
Jun. 30, 2012
Mortgage Loans Held For Sale [Member]
Cost [Member]
|
Dec. 31, 2011
Mortgage Loans Held For Sale [Member]
Cost [Member]
|
Jun. 30, 2012
Mortgage Loans Held For Sale [Member]
Fair Value
|
Dec. 31, 2011
Mortgage Loans Held For Sale [Member]
Fair Value
|
|
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||||||
Loans Held-for-sale, Mortgages | $ 71,406 | $ 47,009 | $ 68,779 | $ 45,324 | $ 71,406 | $ 47,009 | ||||
Gain (loss) in fair values of mortgage loans held for sale | $ 1,100 | $ 533 | $ 941 | $ 1,800 |
Stock-Based Compensation Compensation Expense and Related Tax Benefits (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
|
|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Stock-based compensation expense | $ 2,337 | $ 554 | $ 3,050 | $ 1,101 |
Tax benefit | (657) | (119) | (816) | (255) |
Stock-based compensation expense, net of tax | $ 1,680 | $ 435 | $ 2,234 | $ 846 |
Loans and Allowance for Credit Losses Activity in the Allowance for Credit Losses (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
|
|
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | $ 258,137 | $ 271,156 | $ 258,177 | $ 275,498 |
Loans charged off | (50,540) | (40,675) | (80,799) | (86,204) |
Recoveries of loans previously charged off | 4,219 | 2,152 | 6,438 | 5,339 |
Net loans charged off | (46,321) | (38,523) | (74,361) | (80,865) |
Provision for credit losses | 25,500 | 36,000 | 53,500 | 74,000 |
Balance at end of period | $ 237,316 | $ 268,633 | $ 237,316 | $ 268,633 |
Basis of Presentation
|
6 Months Ended |
---|---|
Jun. 30, 2012
|
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements of Fulton Financial Corporation (the Corporation) have been prepared in conformity with U.S. generally accepted accounting principles (U.S. GAAP) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities as of the date of the financial statements as well as revenues and expenses during the period. Actual results could differ from those estimates. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six-month periods ended June 30, 2012 are not necessarily indicative of the results that may be expected for the year ending December 31, 2012. The Corporation evaluates subsequent events through the date of filing with the Securities and Exchange Commission (SEC). |
Stock-Based Compensation Narrative (Details)
|
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2012
|
Jun. 30, 2012
|
|
Statement [Line Items] | ||
Share Based Compensation Arrangement By Share Based Payment Award Options Expiration Term | 10 years | |
Directors' Plan [Member]
|
||
Statement [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period 1 | 1 year | |
Shares reserved for future grants under the stock option and compensation plan | 469,000 | 469,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 21,000 | |
Employee Stock Option [Member]
|
||
Statement [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period 1 | 3 years | |
Shares reserved for future grants under the stock option and compensation plan | 11,900,000 | 11,900,000 |
Stock Options [Member]
|
||
Statement [Line Items] | ||
Stock options granted under the stock option and compensation plan | 471,000 | |
Restricted Stock [Member]
|
||
Statement [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 320,000 |
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