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) | |||
September 30, 2012 | December 31, 2011 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Cash and due from banks | $ | 217,207 | $ | 292,598 | |||
Interest-bearing deposits with other banks | 202,305 | 175,336 | |||||
Loans held for sale | 85,477 | 47,009 | |||||
Investment securities: | |||||||
Held to maturity (estimated fair value of $487 in 2012 and $6,699 in 2011) | 454 | 6,669 | |||||
Available for sale | 2,789,684 | 2,673,298 | |||||
Loans, net of unearned income | 11,933,001 | 11,968,970 | |||||
Less: Allowance for loan losses | (233,864 | ) | (256,471 | ) | |||
Net Loans | 11,699,137 | 11,712,499 | |||||
Premises and equipment | 225,771 | 212,274 | |||||
Accrued interest receivable | 49,784 | 51,098 | |||||
Goodwill | 535,959 | 536,005 | |||||
Intangible assets | 5,886 | 8,204 | |||||
Other assets | 461,465 | 655,518 | |||||
Total Assets | $ | 16,273,129 | $ | 16,370,508 | |||
LIABILITIES | |||||||
Deposits: | |||||||
Noninterest-bearing | $ | 2,903,591 | $ | 2,588,034 | |||
Interest-bearing | 9,697,719 | 9,937,705 | |||||
Total Deposits | 12,601,310 | 12,525,739 | |||||
Short-term borrowings: | |||||||
Federal funds purchased | 170,261 | 253,470 | |||||
Other short-term borrowings | 316,710 | 343,563 | |||||
Total Short-Term Borrowings | 486,971 | 597,033 | |||||
Accrued interest payable | 21,818 | 25,686 | |||||
Other liabilities | 193,724 | 189,362 | |||||
Federal Home Loan Bank advances and long-term debt | 908,623 | 1,040,149 | |||||
Total Liabilities | 14,212,446 | 14,377,969 | |||||
SHAREHOLDERS’ EQUITY | |||||||
Common stock, $2.50 par value, 600 million shares authorized, 216.7 million shares issued in 2012 and 216.2 million shares issued in 2011 | 541,820 | 540,386 | |||||
Additional paid-in capital | 1,425,801 | 1,423,727 | |||||
Retained earnings | 339,638 | 264,059 | |||||
Accumulated other comprehensive income | 11,807 | 7,955 | |||||
Treasury stock, at cost, 17.8 million shares in 2012 and 16.0 million shares in 2011 | (258,383 | ) | (243,588 | ) | |||
Total Shareholders’ Equity | 2,060,683 | 1,992,539 | |||||
Total Liabilities and Shareholders’ Equity | $ | 16,273,129 | $ | 16,370,508 | |||
See Notes to Consolidated Financial Statements |
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
INTEREST INCOME | |||||||||||||||
Loans, including fees | $ | 140,511 | $ | 149,460 | $ | 426,398 | $ | 448,707 | |||||||
Investment securities: | |||||||||||||||
Taxable | 16,658 | 20,166 | 53,943 | 62,722 | |||||||||||
Tax-exempt | 2,558 | 2,896 | 7,855 | 9,217 | |||||||||||
Dividends | 720 | 698 | 2,060 | 2,077 | |||||||||||
Loans held for sale | 578 | 425 | 1,547 | 1,417 | |||||||||||
Other interest income | 35 | 91 | 133 | 225 | |||||||||||
Total Interest Income | 161,060 | 173,736 | 491,936 | 524,365 | |||||||||||
INTEREST EXPENSE | |||||||||||||||
Deposits | 13,848 | 19,684 | 44,841 | 64,745 | |||||||||||
Short-term borrowings | 220 | 151 | 912 | 573 | |||||||||||
Long-term debt | 11,111 | 12,408 | 34,077 | 37,346 | |||||||||||
Total Interest Expense | 25,179 | 32,243 | 79,830 | 102,664 | |||||||||||
Net Interest Income | 135,881 | 141,493 | 412,106 | 421,701 | |||||||||||
Provision for credit losses | 23,000 | 31,000 | 76,500 | 105,000 | |||||||||||
Net Interest Income After Provision for Credit Losses | 112,881 | 110,493 | 335,606 | 316,701 | |||||||||||
NON-INTEREST INCOME | |||||||||||||||
Service charges on deposit accounts | 15,651 | 15,164 | 45,860 | 42,801 | |||||||||||
Other service charges and fees | 11,119 | 12,507 | 33,181 | 36,698 | |||||||||||
Mortgage banking income | 10,594 | 7,942 | 31,787 | 19,454 | |||||||||||
Investment management and trust services | 9,429 | 8,914 | 28,628 | 27,756 | |||||||||||
Other | 5,169 | 4,055 | 14,761 | 11,163 | |||||||||||
Investment securities gains (losses), net: | |||||||||||||||
Other-than-temporary impairment losses | (43 | ) | (509 | ) | (100 | ) | (1,601 | ) | |||||||
Less: Portion of gain recognized in other comprehensive income (before taxes) | — | (80 | ) | — | (672 | ) | |||||||||
Net other-than-temporary impairment losses | (43 | ) | (589 | ) | (100 | ) | (2,273 | ) | |||||||
Net gains on sales of investment securities | 85 | 146 | 2,931 | 3,780 | |||||||||||
Investment securities gains (losses), net | 42 | (443 | ) | 2,831 | 1,507 | ||||||||||
Total Non-Interest Income | 52,004 | 48,139 | 157,048 | 139,379 | |||||||||||
NON-INTEREST EXPENSE | |||||||||||||||
Salaries and employee benefits | 62,161 | 58,948 | 182,612 | 169,326 | |||||||||||
Net occupancy expense | 11,161 | 10,790 | 33,301 | 33,030 | |||||||||||
Other outside services | 4,996 | 1,846 | 11,782 | 5,256 | |||||||||||
Equipment expense | 3,816 | 3,032 | 10,370 | 9,541 | |||||||||||
Data processing | 3,776 | 3,473 | 11,223 | 10,059 | |||||||||||
FDIC insurance expense | 3,029 | 3,732 | 9,052 | 11,750 | |||||||||||
Professional fees | 2,728 | 3,247 | 8,294 | 9,198 | |||||||||||
Software | 2,511 | 2,142 | 6,958 | 6,146 | |||||||||||
Other real estate owned and repossession expense | 2,096 | 2,548 | 7,847 | 4,801 | |||||||||||
Operating risk loss | 1,404 | 776 | 6,827 | 306 | |||||||||||
Intangible amortization | 756 | 953 | 2,318 | 3,303 | |||||||||||
Marketing | 648 | 1,923 | 5,703 | 6,622 | |||||||||||
Other | 10,961 | 12,457 | 36,610 | 38,278 | |||||||||||
Total Non-Interest Expense | 110,043 | 105,867 | 332,897 | 307,616 | |||||||||||
Income Before Income Taxes | 54,842 | 52,765 | 159,757 | 148,464 | |||||||||||
Income taxes | 13,260 | 13,441 | 40,152 | 38,970 | |||||||||||
Net Income | $ | 41,582 | $ | 39,324 | $ | 119,605 | $ | 109,494 | |||||||
PER SHARE: | |||||||||||||||
Net Income (Basic) | $ | 0.21 | $ | 0.20 | $ | 0.60 | $ | 0.55 | |||||||
Net Income (Diluted) | 0.21 | 0.20 | 0.60 | 0.55 | |||||||||||
Cash Dividends | 0.08 | 0.05 | 0.22 | 0.14 | |||||||||||
See Notes to Consolidated Financial Statements |
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Net Income | $ | 41,582 | $ | 39,324 | $ | 119,605 | $ | 109,494 | |||||||
Other Comprehensive Income (Loss), net of tax: | |||||||||||||||
Unrealized gain (loss) on securities | 10,834 | (1,876 | ) | 4,714 | 15,143 | ||||||||||
Reclassification adjustment for securities (gains) losses included in net income | (28 | ) | 288 | (1,840 | ) | (979 | ) | ||||||||
Non-credit related unrealized gain (loss) on other-than-temporarily impaired debt securities | 271 | (542 | ) | 234 | 187 | ||||||||||
Unrealized gain on derivative financial instruments | 34 | 34 | 102 | 102 | |||||||||||
Amortization (accretion) of net unrecognized pension and postretirement items | 214 | (13 | ) | 642 | (37 | ) | |||||||||
Other Comprehensive Income (Loss) | 11,325 | (2,109 | ) | 3,852 | 14,416 | ||||||||||
Total Comprehensive Income | $ | 52,907 | $ | 37,215 | $ | 123,457 | $ | 123,910 | |||||||
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 | 119,605 | 119,605 | ||||||||||||||||||||||||
Other comprehensive income | 3,852 | 3,852 | ||||||||||||||||||||||||
Stock issued, including related tax benefits | 926 | 1,434 | (1,889 | ) | 5,565 | 5,110 | ||||||||||||||||||||
Stock-based compensation awards | 3,963 | 3,963 | ||||||||||||||||||||||||
Acquisition of treasury stock | (2,115 | ) | (20,360 | ) | (20,360 | ) | ||||||||||||||||||||
Common stock cash dividends - $0.22 per share | (44,026 | ) | (44,026 | ) | ||||||||||||||||||||||
Balance at September 30, 2012 | 198,975 | $ | 541,820 | $ | 1,425,801 | $ | 339,638 | $ | 11,807 | $ | (258,383 | ) | $ | 2,060,683 | ||||||||||||
Balance at December 31, 2010 | 199,050 | $ | 538,492 | $ | 1,420,127 | $ | 158,453 | $ | 12,495 | $ | (249,178 | ) | $ | 1,880,389 | ||||||||||||
Net income | 109,494 | 109,494 | ||||||||||||||||||||||||
Other comprehensive income | 14,416 | 14,416 | ||||||||||||||||||||||||
Stock issued, including related tax benefits | 841 | 1,508 | (451 | ) | 3,791 | 4,848 | ||||||||||||||||||||
Stock-based compensation awards | 3,473 | 3,473 | ||||||||||||||||||||||||
Common stock cash dividends - $0.14 per share | (27,961 | ) | (27,961 | ) | ||||||||||||||||||||||
Balance at September 30, 2011 | 199,891 | $ | 540,000 | $ | 1,423,149 | $ | 239,986 | $ | 26,911 | $ | (245,387 | ) | $ | 1,984,659 | ||||||||||||
See Notes to Consolidated Financial Statements |
Nine months ended September 30 | |||||||
2012 | 2011 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net Income | $ | 119,605 | $ | 109,494 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Provision for credit losses | 76,500 | 105,000 | |||||
Depreciation and amortization of premises and equipment | 16,735 | 15,824 | |||||
Net amortization of investment securities premiums | 8,039 | 2,596 | |||||
Investment securities gains, net | (2,831 | ) | (1,507 | ) | |||
Net (increase) decrease in loans held for sale | (38,468 | ) | 20,386 | ||||
Amortization of intangible assets | 2,318 | 3,303 | |||||
Stock-based compensation | 3,963 | 3,473 | |||||
Excess tax benefits from stock-based compensation | (25 | ) | — | ||||
Decrease in accrued interest receivable | 1,314 | 1,381 | |||||
Decrease in other assets | 12,498 | 13,599 | |||||
Decrease in accrued interest payable | (3,868 | ) | (5,655 | ) | |||
Decrease in other liabilities | (1,966 | ) | (18,862 | ) | |||
Total adjustments | 74,209 | 139,538 | |||||
Net cash provided by operating activities | 193,814 | 249,032 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Proceeds from sales of securities available for sale | 225,539 | 419,803 | |||||
Proceeds from maturities of securities held to maturity | 228 | 388 | |||||
Proceeds from maturities of securities available for sale | 644,055 | 440,475 | |||||
Purchase of securities held to maturity | (346 | ) | (28 | ) | |||
Purchase of securities available for sale | (796,656 | ) | (616,586 | ) | |||
Decrease in short-term investments | (26,969 | ) | (223,063 | ) | |||
Net increase in loans | (63,440 | ) | (74,029 | ) | |||
Net purchases of premises and equipment | (30,232 | ) | (13,978 | ) | |||
Net cash used in investing activities | (47,821 | ) | (67,018 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Net increase in demand and savings deposits | 510,523 | 728,652 | |||||
Net decrease in time deposits | (434,952 | ) | (479,609 | ) | |||
Decrease in short-term borrowings | (110,062 | ) | (225,122 | ) | |||
Repayments of long-term debt | (131,526 | ) | (93,945 | ) | |||
Net proceeds from issuance of stock | 5,085 | 4,848 | |||||
Excess tax benefits from stock-based compensation | 25 | — | |||||
Dividends paid | (40,117 | ) | (23,922 | ) | |||
Acquisition of treasury stock | (20,360 | ) | — | ||||
Net cash used in financing activities | (221,384 | ) | (89,098 | ) | |||
Net (Decrease) Increase in Cash and Due From Banks | (75,391 | ) | 92,916 | ||||
Cash and Due From Banks at Beginning of Period | 292,598 | 198,954 | |||||
Cash and Due From Banks at End of Period | $ | 217,207 | $ | 291,870 | |||
Supplemental Disclosures of Cash Flow Information: | |||||||
Cash paid during the period for: | |||||||
Interest | $ | 83,698 | $ | 108,319 | |||
Income taxes | 22,747 | 21,216 | |||||
See Notes to Consolidated Financial Statements |
Three months ended September 30 | Nine months ended September 30 | ||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||
(in thousands) | |||||||||||
Weighted average shares outstanding (basic) | 198,956 | 199,028 | 199,371 | 198,801 | |||||||
Effect of dilutive securities | 852 | 786 | 950 | 743 | |||||||
Weighted average shares outstanding (diluted) | 199,808 | 199,814 | 200,321 | 199,544 |
Before-Tax Amount | Tax Effect | Net of Tax Amount | |||||||||
(in thousands) | |||||||||||
Three months ended September 30, 2012 | |||||||||||
Unrealized gain (loss) on securities | $ | 16,668 | $ | (5,834 | ) | $ | 10,834 | ||||
Reclassification adjustment for securities (gains) losses included in net income | (43 | ) | 15 | (28 | ) | ||||||
Non-credit related unrealized gain (loss) on other-than-temporarily impaired debt securities | 417 | (146 | ) | 271 | |||||||
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) | $ | 17,423 | $ | (6,098 | ) | $ | 11,325 | ||||
Three months ended September 30, 2011 | |||||||||||
Unrealized gain (loss) on securities | $ | (2,886 | ) | $ | 1,010 | $ | (1,876 | ) | |||
Reclassification adjustment for securities (gains) losses included in net income | 443 | (155 | ) | 288 | |||||||
Non-credit related unrealized gain (loss) on other-than-temporarily impaired debt securities | (834 | ) | 292 | (542 | ) | ||||||
Unrealized gain on derivative financial instruments | 52 | (18 | ) | 34 | |||||||
Amortization (accretion) of net unrecognized pension and postretirement items | (20 | ) | 7 | (13 | ) | ||||||
Total Other Comprehensive Income (Loss) | $ | (3,245 | ) | $ | 1,136 | $ | (2,109 | ) | |||
Nine months ended September 30, 2012 | |||||||||||
Unrealized gain (loss) on securities | $ | 7,252 | $ | (2,538 | ) | $ | 4,714 | ||||
Reclassification adjustment for securities (gains) losses included in net income | (2,831 | ) | 991 | (1,840 | ) | ||||||
Non-credit related unrealized gain (loss) on other-than-temporarily impaired debt securities | 360 | (126 | ) | 234 | |||||||
Unrealized gain on derivative financial instruments | 157 | (55 | ) | 102 | |||||||
Amortization (accretion) of net unrecognized pension and postretirement items | 988 | (346 | ) | 642 | |||||||
Total Other Comprehensive Income (Loss) | $ | 5,926 | $ | (2,074 | ) | $ | 3,852 | ||||
Nine months ended September 30, 2011 | |||||||||||
Unrealized gain (loss) on securities | $ | 23,297 | $ | (8,154 | ) | $ | 15,143 | ||||
Reclassification adjustment for securities (gains) losses included in net income | (1,506 | ) | 527 | (979 | ) | ||||||
Non-credit related unrealized gain (loss) on other-than-temporarily impaired debt securities | 288 | (101 | ) | 187 | |||||||
Unrealized gain on derivative financial instruments | 157 | (55 | ) | 102 | |||||||
Amortization (accretion) of net unrecognized pension and postretirement items | (57 | ) | 20 | (37 | ) | ||||||
Total Other Comprehensive Income (Loss) | $ | 22,179 | $ | (7,763 | ) | $ | 14,416 |
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 September 30, 2012 | |||||||||||||||||||
Balance at June 30, 2012 | $ | 19,122 | $ | (1,048 | ) | $ | (14,706 | ) | $ | (2,886 | ) | $ | 482 | ||||||
Current-period other comprehensive income | 10,793 | 284 | 214 | 34 | 11,325 | ||||||||||||||
Balance at September 30, 2012 | $ | 29,915 | $ | (764 | ) | $ | (14,492 | ) | $ | (2,852 | ) | $ | 11,807 | ||||||
Three months ended September 30, 2011 | |||||||||||||||||||
Balance at June 30, 2011 | $ | 37,227 | $ | (747 | ) | $ | (4,438 | ) | $ | (3,022 | ) | $ | 29,020 | ||||||
Current-period other comprehensive income (loss) | (1,813 | ) | (317 | ) | (13 | ) | 34 | (2,109 | ) | ||||||||||
Balance at September 30, 2011 | $ | 35,414 | $ | (1,064 | ) | $ | (4,451 | ) | $ | (2,988 | ) | $ | 26,911 | ||||||
Nine months ended September 30, 2012 | |||||||||||||||||||
Balance at December 31, 2011 | $ | 27,054 | $ | (1,011 | ) | $ | (15,134 | ) | $ | (2,954 | ) | $ | 7,955 | ||||||
Current-period other comprehensive income | 2,861 | 247 | 642 | 102 | 3,852 | ||||||||||||||
Balance at September 30, 2012 | $ | 29,915 | $ | (764 | ) | $ | (14,492 | ) | $ | (2,852 | ) | $ | 11,807 | ||||||
Nine months ended September 30, 2011 | |||||||||||||||||||
Balance at December 31, 2010 | $ | 22,354 | $ | (2,355 | ) | $ | (4,414 | ) | $ | (3,090 | ) | $ | 12,495 | ||||||
Current-period other comprehensive income (loss) | 13,060 | 1,291 | (37 | ) | 102 | 14,416 | |||||||||||||
Balance at September 30, 2011 | $ | 35,414 | $ | (1,064 | ) | $ | (4,451 | ) | $ | (2,988 | ) | $ | 26,911 |
Held to Maturity at September 30, 2012 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||
(in thousands) | |||||||||||||||
State and municipal securities | $ | 114 | $ | — | $ | — | $ | 114 | |||||||
Mortgage-backed securities | 340 | 33 | — | 373 | |||||||||||
$ | 454 | $ | 33 | $ | — | $ | 487 | ||||||||
Available for Sale at September 30, 2012 | |||||||||||||||
Equity securities | $ | 113,838 | $ | 4,569 | $ | (1,089 | ) | $ | 117,318 | ||||||
U.S. Government securities | 326 | — | — | 326 | |||||||||||
U.S. Government sponsored agency securities | 2,401 | 39 | — | 2,440 | |||||||||||
State and municipal securities | 293,056 | 14,978 | (2 | ) | 308,032 | ||||||||||
Corporate debt securities | 110,111 | 6,376 | (10,361 | ) | 106,126 | ||||||||||
Collateralized mortgage obligations | 1,014,837 | 15,733 | (380 | ) | 1,030,190 | ||||||||||
Mortgage-backed securities | 1,021,882 | 43,308 | — | 1,065,190 | |||||||||||
Auction rate securities | 188,378 | — | (28,316 | ) | 160,062 | ||||||||||
$ | 2,744,829 | $ | 85,003 | $ | (40,148 | ) | $ | 2,789,684 |
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 | $ | 114 | $ | 114 | $ | 36,622 | $ | 36,707 | |||||||
Due from one year to five years | — | — | 60,067 | 63,879 | |||||||||||
Due from five years to ten years | — | — | 162,239 | 174,060 | |||||||||||
Due after ten years | — | — | 335,344 | 302,340 | |||||||||||
114 | 114 | 594,272 | 576,986 | ||||||||||||
Collateralized mortgage obligations | — | — | 1,014,837 | 1,030,190 | |||||||||||
Mortgage-backed securities | 340 | 373 | 1,021,882 | 1,065,190 | |||||||||||
$ | 454 | $ | 487 | $ | 2,630,991 | $ | 2,672,366 |
Gross Realized Gains | Gross Realized Losses | Other-than- temporary Impairment Losses | Net Gains (Losses) | ||||||||||||
(in thousands) | |||||||||||||||
Three months ended September 30, 2012 | |||||||||||||||
Equity securities | $ | — | $ | — | $ | (24 | ) | $ | (24 | ) | |||||
Debt securities | 85 | — | (19 | ) | 66 | ||||||||||
Total | $ | 85 | $ | — | $ | (43 | ) | $ | 42 | ||||||
Three months ended September 30, 2011 | |||||||||||||||
Equity securities | $ | 146 | $ | — | $ | (244 | ) | $ | (98 | ) | |||||
Debt securities | — | — | (345 | ) | (345 | ) | |||||||||
Total | $ | 146 | $ | — | $ | (589 | ) | $ | (443 | ) | |||||
Nine months ended September 30, 2012 | |||||||||||||||
Equity securities | $ | 2,603 | $ | — | $ | (81 | ) | $ | 2,522 | ||||||
Debt securities | 328 | — | (19 | ) | 309 | ||||||||||
Total | $ | 2,931 | $ | — | $ | (100 | ) | $ | 2,831 | ||||||
Nine months ended September 30, 2011 | |||||||||||||||
Equity securities | $ | 194 | $ | — | $ | (575 | ) | $ | (381 | ) | |||||
Debt securities | 3,605 | (19 | ) | (1,698 | ) | 1,888 | |||||||||
Total | $ | 3,799 | $ | (19 | ) | $ | (2,273 | ) | $ | 1,507 |
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(in thousands) | |||||||||||||||
Balance of cumulative credit losses on debt securities, beginning of period | $ | (22,692 | ) | $ | (28,876 | ) | $ | (22,781 | ) | $ | (27,560 | ) | |||
Additions for credit losses recorded which were not previously recognized as components of earnings | (19 | ) | (345 | ) | (19 | ) | (1,698 | ) | |||||||
Reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security | 66 | 40 | 155 | 77 | |||||||||||
Balance of cumulative credit losses on debt securities, end of period | $ | (22,645 | ) | $ | (29,181 | ) | $ | (22,645 | ) | $ | (29,181 | ) |
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) | |||||||||||||||||||||||
State and municipal securities | $ | 567 | $ | (2 | ) | $ | — | $ | — | $ | 567 | $ | (2 | ) | |||||||||
Corporate debt securities | 6,649 | (1,082 | ) | 38,816 | (9,279 | ) | 45,465 | (10,361 | ) | ||||||||||||||
Collateralized mortgage obligations | 137,520 | (211 | ) | 15,618 | (169 | ) | 153,138 | (380 | ) | ||||||||||||||
Auction rate securities | 18,258 | (1,274 | ) | 141,804 | (27,042 | ) | 160,062 | (28,316 | ) | ||||||||||||||
Total debt securities | 162,994 | (2,569 | ) | 196,238 | (36,490 | ) | 359,232 | (39,059 | ) | ||||||||||||||
Equity securities | 2,099 | (145 | ) | 6,247 | (944 | ) | 8,346 | (1,089 | ) | ||||||||||||||
$ | 165,093 | $ | (2,714 | ) | $ | 202,485 | $ | (37,434 | ) | $ | 367,578 | $ | (40,148 | ) |
September 30, 2012 | December 31, 2011 | ||||||||||||||
Amortized cost | Estimated fair value | Amortized cost | Estimated fair value | ||||||||||||
(in thousands) | |||||||||||||||
Single-issuer trust preferred securities | $ | 57,726 | $ | 50,426 | $ | 83,899 | $ | 74,365 | |||||||
Subordinated debt | 44,262 | 48,037 | 40,184 | 41,296 | |||||||||||
Pooled trust preferred securities | 5,601 | 5,141 | 6,236 | 5,109 | |||||||||||
Corporate debt securities issued by financial institutions | 107,589 | 103,604 | 130,319 | 120,770 | |||||||||||
Other corporate debt securities | 2,522 | 2,522 | 2,536 | 2,536 | |||||||||||
Available for sale corporate debt securities | $ | 110,111 | $ | 106,126 | $ | 132,855 | $ | 123,306 |
September 30, 2012 | December 31, 2011 | ||||||
(in thousands) | |||||||
Real-estate - commercial mortgage | $ | 4,632,509 | $ | 4,602,596 | |||
Commercial - industrial, financial and agricultural | 3,507,846 | 3,639,368 | |||||
Real-estate - home equity | 1,603,456 | 1,624,562 | |||||
Real-estate - residential mortgage | 1,213,831 | 1,097,192 | |||||
Real-estate - construction | 597,358 | 615,445 | |||||
Consumer | 301,182 | 318,101 | |||||
Leasing and other | 71,343 | 63,254 | |||||
Overdrafts | 12,480 | 15,446 | |||||
Loans, gross of unearned income | 11,940,005 | 11,975,964 | |||||
Unearned income | (7,004 | ) | (6,994 | ) | |||
Loans, net of unearned income | $ | 11,933,001 | $ | 11,968,970 |
September 30, 2012 | December 31, 2011 | ||||||
(in thousands) | |||||||
Allowance for loan losses | $ | 233,864 | $ | 256,471 | |||
Reserve for unfunded lending commitments | 1,404 | 1,706 | |||||
Allowance for credit losses | $ | 235,268 | $ | 258,177 |
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(in thousands) | |||||||||||||||
Balance at beginning of period | $ | 237,316 | $ | 268,633 | $ | 258,177 | $ | 275,498 | |||||||
Loans charged off | (29,966 | ) | (32,897 | ) | (110,765 | ) | (119,101 | ) | |||||||
Recoveries of loans previously charged off | 4,918 | 2,081 | 11,356 | 7,420 | |||||||||||
Net loans charged off | (25,048 | ) | (30,816 | ) | (99,409 | ) | (111,681 | ) | |||||||
Provision for credit losses | 23,000 | 31,000 | 76,500 | 105,000 | |||||||||||
Balance at end of period | $ | 235,268 | $ | 268,817 | $ | 235,268 | $ | 268,817 |
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 September 30, 2012 | |||||||||||||||||||||||||||||||||||
Balance at June 30, 2012 | $ | 69,868 | $ | 71,931 | $ | 14,444 | $ | 26,711 | $ | 25,559 | $ | 1,816 | $ | 3,243 | $ | 22,164 | $ | 235,736 | |||||||||||||||||
Loans charged off | (7,463 | ) | (10,471 | ) | (1,688 | ) | (670 | ) | (8,364 | ) | (685 | ) | (625 | ) | — | (29,966 | ) | ||||||||||||||||||
Recoveries of loans previously charged off | 1,317 | 1,693 | 343 | 25 | 1,040 | 202 | 298 | — | 4,918 | ||||||||||||||||||||||||||
Net loans charged off | (6,146 | ) | (8,778 | ) | (1,345 | ) | (645 | ) | (7,324 | ) | (483 | ) | (327 | ) | — | (25,048 | ) | ||||||||||||||||||
Provision for loan losses (1) | 8,447 | 4,721 | 2,337 | 2,790 | 3,893 | 530 | 77 | 381 | 23,176 | ||||||||||||||||||||||||||
Balance at September 30, 2012 | $ | 72,169 | $ | 67,874 | $ | 15,436 | $ | 28,856 | $ | 22,128 | $ | 1,863 | $ | 2,993 | $ | 22,545 | $ | 233,864 | |||||||||||||||||
Three months ended September 30, 2011 | |||||||||||||||||||||||||||||||||||
Balance at June 30, 2011 | $ | 73,598 | $ | 82,613 | $ | 9,560 | $ | 31,912 | $ | 30,570 | $ | 1,755 | $ | 1,787 | $ | 34,888 | $ | 266,683 | |||||||||||||||||
Loans charged off | (5,730 | ) | (14,840 | ) | (1,158 | ) | (1,514 | ) | (8,535 | ) | (634 | ) | (486 | ) | — | (32,897 | ) | ||||||||||||||||||
Recoveries of loans previously charged off | 249 | 695 | 23 | 36 | 595 | 291 | 192 | — | 2,081 | ||||||||||||||||||||||||||
Net loans charged off | (5,481 | ) | (14,145 | ) | (1,135 | ) | (1,478 | ) | (7,940 | ) | (343 | ) | (294 | ) | — | (30,816 | ) | ||||||||||||||||||
Provision for loan losses (1) | 13,066 | 11,669 | 1,418 | 2,902 | 10,415 | 2,990 | 768 | (12,117 | ) | 31,111 | |||||||||||||||||||||||||
Balance at September 30, 2011 | $ | 81,183 | $ | 80,137 | $ | 9,843 | $ | 33,336 | $ | 33,045 | $ | 4,402 | $ | 2,261 | $ | 22,771 | $ | 266,978 | |||||||||||||||||
Nine months ended September 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 | (43,053 | ) | (29,157 | ) | (6,683 | ) | (3,009 | ) | (25,377 | ) | (1,790 | ) | (1,696 | ) | — | (110,765 | ) | ||||||||||||||||||
Recoveries of loans previously charged off | 3,286 | 3,046 | 641 | 169 | 2,643 | 833 | 738 | — | 11,356 | ||||||||||||||||||||||||||
Net loans charged off | (39,767 | ) | (26,111 | ) | (6,042 | ) | (2,840 | ) | (22,734 | ) | (957 | ) | (958 | ) | — | (99,409 | ) | ||||||||||||||||||
Provision for loan losses (1) | 26,824 | 19,089 | 8,637 | 8,710 | 14,796 | 737 | 1,554 | (3,545 | ) | 76,802 | |||||||||||||||||||||||||
Balance at September 30, 2012 | $ | 72,169 | $ | 67,874 | $ | 15,436 | $ | 28,856 | $ | 22,128 | $ | 1,863 | $ | 2,993 | $ | 22,545 | $ | 233,864 | |||||||||||||||||
Nine months ended September 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 | (22,851 | ) | (43,582 | ) | (4,276 | ) | (14,217 | ) | (29,897 | ) | (2,606 | ) | (1,672 | ) | — | (119,101 | ) | ||||||||||||||||||
Recoveries of loans previously charged off | 1,975 | 2,089 | 26 | 270 | 1,237 | 1,033 | 790 | — | 7,420 | ||||||||||||||||||||||||||
Net loans charged off | (20,876 | ) | (41,493 | ) | (4,250 | ) | (13,947 | ) | (28,660 | ) | (1,573 | ) | (882 | ) | — | (111,681 | ) | ||||||||||||||||||
Provision for loan losses | 38,345 | 33,582 | 3,949 | 21,962 | 28,359 | 4,382 | 247 | (26,438 | ) | 104,388 | |||||||||||||||||||||||||
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) | 61,228 | 20,194 | 7,639 | 29,858 | 3,588 | 1,306 | (697 | ) | (18,728 | ) | 104,388 | ||||||||||||||||||||||||
Balance at September 30, 2011 | $ | 81,183 | $ | 80,137 | $ | 9,843 | $ | 33,336 | $ | 33,045 | $ | 4,402 | $ | 2,261 | $ | 22,771 | $ | 266,978 | |||||||||||||||||
(1) | Provision for loan losses is gross of a $176,000 and $302,000 decrease, respectively, in provision applied to unfunded commitments for the three and nine months ended September 30, 2012. The total provision for credit losses, comprised of allocations for both funded and unfunded loans, was $23.0 million and $76.5 million for the three and nine months ended September 30, 2012, respectively. Provision for loan losses is net of a $111,000 decrease and a$612,000 increase, respectively, in provision applied to unfunded commitments for the three and nine months ended September 30, 2011.The total provision for credit losses, comprised of allocations for both funded and unfunded loans, was $31.0 million and $105.0 million for the three and nine months ended September 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 September 30, 2012 | |||||||||||||||||||||||||||||||||||
Measured for impairment under FASB ASC Subtopic 450-20 | $ | 46,889 | $ | 44,169 | $ | 10,120 | $ | 8,306 | $ | 14,957 | $ | 1,858 | $ | 2,980 | $ | 22,545 | $ | 151,824 | |||||||||||||||||
Evaluated for impairment under FASB ASC Section 310-10-35 | 25,280 | 23,705 | 5,316 | 20,550 | 7,171 | 5 | 13 | N/A | 82,040 | ||||||||||||||||||||||||||
$ | 72,169 | $ | 67,874 | $ | 15,436 | $ | 28,856 | $ | 22,128 | $ | 1,863 | $ | 2,993 | $ | 22,545 | $ | 233,864 | ||||||||||||||||||
Loans, net of unearned income at September 30, 2012 | |||||||||||||||||||||||||||||||||||
Measured for impairment under FASB ASC Subtopic 450-20 | $ | 4,539,370 | $ | 3,430,724 | $ | 1,594,553 | $ | 1,165,013 | $ | 554,185 | $ | 301,175 | $ | 76,798 | N/A | $ | 11,661,818 | ||||||||||||||||||
Evaluated for impairment under FASB ASC Section 310-10-35 | 93,139 | 77,122 | 8,903 | 48,818 | 43,173 | 7 | 21 | N/A | 271,183 | ||||||||||||||||||||||||||
$ | 4,632,509 | $ | 3,507,846 | $ | 1,603,456 | $ | 1,213,831 | $ | 597,358 | $ | 301,182 | $ | 76,819 | N/A | $ | 11,933,001 | |||||||||||||||||||
Allowance for loan losses at September 30, 2011 | |||||||||||||||||||||||||||||||||||
Measured for impairment under FASB ASC Subtopic 450-20 | $ | 47,914 | $ | 51,510 | $ | 9,843 | $ | 7,142 | $ | 20,480 | $ | 1,773 | $ | 2,205 | $ | 22,771 | $ | 163,638 | |||||||||||||||||
Evaluated for impairment under FASB ASC Section 310-10-35 | 33,269 | 28,627 | — | 26,194 | 12,565 | 2,629 | 56 | N/A | 103,340 | ||||||||||||||||||||||||||
$ | 81,183 | $ | 80,137 | $ | 9,843 | $ | 33,336 | $ | 33,045 | $ | 4,402 | $ | 2,261 | $ | 22,771 | $ | 266,978 | ||||||||||||||||||
Loans, net of unearned income at September 30, 2011 | |||||||||||||||||||||||||||||||||||
Measured for impairment under FASB ASC Subtopic 450-20 | $ | 4,377,383 | $ | 3,603,914 | $ | 1,630,880 | $ | 975,463 | $ | 596,581 | $ | 322,113 | $ | 66,455 | N/A | $ | 11,572,789 | ||||||||||||||||||
Evaluated for impairment under FASB ASC Section 310-10-35 | 113,772 | 86,250 | — | 66,000 | 51,817 | 4,941 | 86 | N/A | 322,866 | ||||||||||||||||||||||||||
$ | 4,491,155 | $ | 3,690,164 | $ | 1,630,880 | $ | 1,041,463 | $ | 648,398 | $ | 327,054 | $ | 66,541 | N/A | $ | 11,895,655 |
(1) | The Corporation’s unallocated allowance, which was approximately 10% and 9% as of September 30, 2012 and September 30, 2011, respectively, was, in the opinion of the Corporation's management, reasonable and appropriate given that 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. |
September 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 | $ | 44,225 | $ | 33,917 | $ | — | $ | 54,445 | $ | 46,768 | $ | — | |||||||||||
Commercial - secured | 38,023 | 30,067 | — | 35,529 | 28,440 | — | |||||||||||||||||
Commercial - unsecured | 105 | 105 | — | — | — | — | |||||||||||||||||
Real estate - home equity | 581 | 581 | — | 199 | 199 | — | |||||||||||||||||
Real estate - residential mortgage | 1,980 | 1,980 | — | — | — | — | |||||||||||||||||
Construction - commercial residential | 39,490 | 24,560 | — | 62,822 | 31,233 | — | |||||||||||||||||
Construction - commercial | 3,518 | 2,946 | — | 3,604 | 3,298 | — | |||||||||||||||||
127,922 | 94,156 | 156,599 | 109,938 | ||||||||||||||||||||
With a related allowance recorded: | |||||||||||||||||||||||
Real estate - commercial mortgage | 78,258 | 59,222 | 25,280 | 100,529 | 79,566 | 36,060 | |||||||||||||||||
Commercial - secured | 60,556 | 44,445 | 21,816 | 61,970 | 47,652 | 26,248 | |||||||||||||||||
Commercial - unsecured | 2,725 | 2,505 | 1,889 | 3,139 | 2,789 | 2,177 | |||||||||||||||||
Real estate - home equity | 8,322 | 8,322 | 5,316 | 5,294 | 5,294 | 3,076 | |||||||||||||||||
Real estate - residential mortgage | 35,554 | 46,838 | 20,550 | 39,918 | 39,918 | 16,295 | |||||||||||||||||
Construction - commercial residential | 23,233 | 12,536 | 5,368 | 41,176 | 25,632 | 11,287 | |||||||||||||||||
Construction - commercial | 2,302 | 2,059 | 1,169 | 3,221 | 1,049 | 506 | |||||||||||||||||
Construction - other | 1,072 | 1,072 | 634 | 1,127 | 1,127 | 663 | |||||||||||||||||
Consumer - direct | 7 | 7 | 5 | 368 | 368 | 228 | |||||||||||||||||
Leasing and other and overdrafts | 21 | 21 | 13 | 56 | 56 | 37 | |||||||||||||||||
212,050 | 177,027 | 82,040 | 256,798 | 203,451 | 96,577 | ||||||||||||||||||
Total | $ | 339,972 | $ | 271,183 | $ | 82,040 | $ | 413,397 | $ | 313,389 | $ | 96,577 |
Three months ended September 30, 2012 | Three months ended September 30, 2011 | Nine months ended September 30, 2012 | Nine months ended September 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 | $ | 43,197 | $ | 172 | $ | 40,448 | $ | 78 | $ | 43,422 | $ | 370 | $ | 43,915 | $ | 568 | |||||||||||||||
Commercial - secured | 25,992 | 13 | 34,474 | 10 | 25,526 | 30 | 31,426 | 171 | |||||||||||||||||||||||
Commercial - unsecured | 59 | — | 149 | — | 33 | — | 221 | 3 | |||||||||||||||||||||||
Real estate - home equity | 583 | 1 | — | — | 466 | 1 | — | — | |||||||||||||||||||||||
Real estate - residential mortgage | 1,984 | 17 | — | — | 1,115 | 30 | 5,303 | 43 | |||||||||||||||||||||||
Construction - commercial residential | 25,768 | 60 | 18,528 | 1 | 28,315 | 128 | 23,154 | 185 | |||||||||||||||||||||||
Construction - commercial | 2,666 | 6 | 2,902 | — | 2,943 | 12 | 2,911 | 21 | |||||||||||||||||||||||
Consumer - direct | — | — | 100 | — | — | — | 50 | — | |||||||||||||||||||||||
100,249 | 269 | 96,601 | 89 | 101,820 | 571 | 106,980 | 991 | ||||||||||||||||||||||||
With a related allowance recorded: | |||||||||||||||||||||||||||||||
Real estate - commercial mortgage | 59,239 | 240 | 73,076 | 140 | 67,064 | 523 | 79,898 | 1,129 | |||||||||||||||||||||||
Commercial - secured | 43,420 | 32 | 51,851 | 14 | 46,743 | 65 | 86,061 | 1,213 | |||||||||||||||||||||||
Commercial - unsecured | 2,555 | 2 | 2,231 | 1 | 2,735 | 4 | 4,132 | 34 | |||||||||||||||||||||||
Real estate - home equity | 8,045 | 7 | — | — | 6,810 | 11 | — | — | |||||||||||||||||||||||
Real estate - residential mortgage | 45,022 | 384 | 66,892 | 462 | 42,555 | 1,144 | 57,033 | 1,039 | |||||||||||||||||||||||
Construction - commercial residential | 16,232 | 37 | 31,132 | 1 | 21,647 | 94 | 53,004 | 449 | |||||||||||||||||||||||
Construction - commercial | 2,373 | 5 | 718 | — | 2,204 | 11 | 1,100 | 17 | |||||||||||||||||||||||
Construction - other | 997 | 2 | 1,556 | — | 1,073 | 4 | 1,093 | — | |||||||||||||||||||||||
Consumer - direct | 7 | — | 2,477 | — | 98 | — | 1,260 | 2 | |||||||||||||||||||||||
Leasing and other and overdrafts | 158 | — | 89 | — | 101 | — | 60 | — | |||||||||||||||||||||||
178,048 | 709 | 230,022 | 618 | 191,030 | 1,856 | 283,641 | 3,883 | ||||||||||||||||||||||||
Total | $ | 278,297 | $ | 978 | $ | 326,623 | $ | 707 | $ | 292,850 | $ | 2,427 | $ | 390,621 | $ | 4,874 |
(1) | All impaired loans, excluding accruing troubled debt restructurings, were non-accrual loans. Interest income recognized for the three and nine months ended September 30, 2012 and 2011 represent amounts earned on accruing troubled debt restructurings. |
Pass | Special Mention | Substandard or Lower | Total | ||||||||||||||||||||||||||||
September 30, 2012 | December 31, 2011 | September 30, 2012 | December 31, 2011 | September 30, 2012 | December 31, 2011 | September 30, 2012 | December 31, 2011 | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||
Real estate - commercial mortgage | $ | 4,199,788 | $ | 4,099,103 | $ | 130,340 | $ | 160,935 | $ | 302,381 | $ | 342,558 | $ | 4,632,509 | $ | 4,602,596 | |||||||||||||||
Commercial - secured | 2,926,402 | 2,977,957 | 154,759 | 166,588 | 214,858 | 249,014 | 3,296,019 | 3,393,559 | |||||||||||||||||||||||
Commercial -unsecured | 199,902 | 230,962 | 6,275 | 6,066 | 5,650 | 8,781 | 211,827 | 245,809 | |||||||||||||||||||||||
Total commercial - industrial, financial and agricultural | 3,126,304 | 3,208,919 | 161,034 | 172,654 | 220,508 | 257,795 | 3,507,846 | 3,639,368 | |||||||||||||||||||||||
Construction - commercial residential | 164,247 | 175,706 | 51,452 | 50,854 | 96,958 | 126,378 | 312,657 | 352,938 | |||||||||||||||||||||||
Construction - commercial | 202,979 | 186,049 | 3,429 | 7,022 | 12,421 | 16,309 | 218,829 | 209,380 | |||||||||||||||||||||||
Total construction (excluding Construction - other) | 367,226 | 361,755 | 54,881 | 57,876 | 109,379 | 142,687 | 531,486 | 562,318 | |||||||||||||||||||||||
$ | 7,693,318 | $ | 7,669,777 | $ | 346,255 | $ | 391,465 | $ | 632,268 | $ | 743,040 | $ | 8,671,841 | $ | 8,804,282 | ||||||||||||||||
% of Total | 88.7 | % | 87.1 | % | 4.0 | % | 4.5 | % | 7.3 | % | 8.4 | % | 100.0 | % | 100.0 | % |
Performing | Delinquent (1) | Non-performing (2) | Total | ||||||||||||||||||||||||||||
September 30, 2012 | December 31, 2011 | September 30, 2012 | December 31, 2011 | September 30, 2012 | December 31, 2011 | September 30, 2012 | December 31, 2011 | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||
Real estate - home equity | $ | 1,577,256 | $ | 1,601,722 | $ | 13,557 | $ | 11,633 | $ | 12,643 | $ | 11,207 | $ | 1,603,456 | $ | 1,624,562 | |||||||||||||||
Real estate - residential mortgage | 1,156,610 | 1,043,733 | 32,311 | 37,123 | 24,910 | 16,336 | 1,213,831 | 1,097,192 | |||||||||||||||||||||||
Construction - other | 60,571 | 49,593 | 4,564 | 2,341 | 737 | 1,193 | 65,872 | 53,127 | |||||||||||||||||||||||
Consumer - direct | 146,351 | 157,157 | 3,908 | 4,011 | 3,691 | 3,201 | 153,950 | 164,369 | |||||||||||||||||||||||
Consumer - indirect | 144,670 | 151,112 | 2,310 | 2,437 | 252 | 183 | 147,232 | 153,732 | |||||||||||||||||||||||
Total consumer | 291,021 | 308,269 | 6,218 | 6,448 | 3,943 | 3,384 | 301,182 | 318,101 | |||||||||||||||||||||||
Leasing and other and overdrafts | 75,954 | 70,550 | 765 | 1,049 | 100 | 107 | 76,819 | 71,706 | |||||||||||||||||||||||
$ | 3,161,412 | $ | 3,073,867 | $ | 57,415 | $ | 58,594 | $ | 42,333 | $ | 32,227 | $ | 3,261,160 | $ | 3,164,688 | ||||||||||||||||
% of Total | 96.9 | % | 97.1 | % | 1.8 | % | 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. |
September 30, 2012 | December 31, 2011 | ||||||
(in thousands) | |||||||
Non-accrual loans | $ | 185,791 | $ | 257,761 | |||
Accruing loans greater than 90 days past due | 27,035 | 28,767 | |||||
Total non-performing loans | 212,826 | 286,528 | |||||
Other real estate owned (OREO) | 29,217 | 30,803 | |||||
Total non-performing assets | $ | 242,043 | $ | 317,331 |
September 30, 2012 | December 31, 2011 | ||||||
(in thousands) | |||||||
Real-estate - residential mortgage | $ | 36,946 | $ | 32,331 | |||
Real-estate - commercial mortgage | 32,198 | 22,425 | |||||
Construction - commercial residential | 10,190 | 7,645 | |||||
Commercial - secured | 4,671 | 3,449 | |||||
Real estate - home equity | 755 | 183 | |||||
Construction - other | 335 | — | |||||
Commercial -unsecured | 124 | 132 | |||||
Consumer - direct | — | 10 | |||||
Total accruing TDRs | 85,219 | 66,175 | |||||
Non-accrual TDRs (1) | 21,167 | 32,587 | |||||
Total TDRs | $ | 106,386 | $ | 98,762 |
(1) | Included within non-accrual loans in table detailing non-performing assets above. |
Three months ended September 30, 2012 | Nine months ended September 30, 2012 | ||||||||||
Number of Loans | Recorded Investment | Number of Loans | Recorded Investment | ||||||||
(dollars in thousands) | |||||||||||
Real estate - residential mortgage | 9 | $ | 3,350 | 33 | $ | 11,465 | |||||
Real estate - commercial mortgage | 2 | 1,404 | 15 | 18,004 | |||||||
Construction - commercial | 1 | 957 | 1 | 957 | |||||||
Construction - commercial residential | 2 | 741 | 8 | 11,178 | |||||||
Commercial - secured | 7 | 737 | 14 | 3,944 | |||||||
Construction - other | 1 | 335 | 1 | 335 | |||||||
Real estate - home equity | 1 | 132 | 7 | 692 | |||||||
23 | $ | 7,656 | 79 | $ | 46,575 |
Three months ended September 30, 2012 | Nine months ended September 30, 2012 | ||||||||||
Number of Loans | Recorded Investment | Number of Loans | Recorded Investment | ||||||||
( dollars in thousands) | |||||||||||
Real estate - commercial mortgage | 6 | $ | 6,358 | 7 | $ | 7,442 | |||||
Real estate - residential mortgage | 15 | 2,977 | 26 | 6,763 | |||||||
Commercial - secured | 3 | 1,267 | 4 | 1,294 | |||||||
Construction - commercial | 1 | 957 | 1 | 957 | |||||||
Construction - commercial residential | 3 | 836 | 4 | 2,691 | |||||||
Construction - other | 1 | 335 | 1 | 335 | |||||||
Real estate - home equity | 3 | 273 | 8 | 653 | |||||||
32 | $ | 13,003 | 51 | $ | 20,135 |
September 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 | $ | 17,746 | $ | 3,338 | $ | 3,667 | $ | 60,942 | $ | 64,609 | $ | 85,693 | $ | 4,546,816 | $ | 4,632,509 | |||||||||||||||
Commercial - secured | 11,643 | 2,800 | 1,542 | 69,842 | 71,384 | 85,827 | 3,210,192 | 3,296,019 | |||||||||||||||||||||||
Commercial - unsecured | 1,359 | — | 10 | 2,485 | 2,495 | 3,854 | 207,973 | 211,827 | |||||||||||||||||||||||
Total commercial - industrial, financial and agricultural | 13,002 | 2,800 | 1,552 | 72,327 | 73,879 | 89,681 | 3,418,165 | 3,507,846 | |||||||||||||||||||||||
Real estate - home equity | 9,894 | 3,663 | 5,430 | 7,213 | 12,643 | 26,200 | 1,577,256 | 1,603,456 | |||||||||||||||||||||||
Real estate - residential mortgage | 21,792 | 10,519 | 13,210 | 11,700 | 24,910 | 57,221 | 1,156,610 | 1,213,831 | |||||||||||||||||||||||
Construction - commercial residential | 648 | — | 95 | 26,905 | 27,000 | 27,648 | 285,010 | 312,658 | |||||||||||||||||||||||
Construction - commercial | 468 | — | — | 5,005 | 5,005 | 5,473 | 213,355 | 218,828 | |||||||||||||||||||||||
Construction - other | 3,310 | 1,254 | — | 737 | 737 | 5,301 | 60,571 | 65,872 | |||||||||||||||||||||||
Total real estate - construction | 4,426 | 1,254 | 95 | 32,647 | 32,742 | 38,422 | 558,936 | 597,358 | |||||||||||||||||||||||
Consumer - direct | 2,588 | 1,320 | 2,750 | 941 | 3,691 | 7,599 | 146,351 | 153,950 | |||||||||||||||||||||||
Consumer - indirect | 1,866 | 444 | 252 | — | 252 | 2,562 | 144,670 | 147,232 | |||||||||||||||||||||||
Total consumer | 4,454 | 1,764 | 3,002 | 941 | 3,943 | 10,161 | 291,021 | 301,182 | |||||||||||||||||||||||
Leasing and other and overdrafts | 734 | 31 | 79 | 21 | 100 | 865 | 75,954 | 76,819 | |||||||||||||||||||||||
$ | 72,048 | $ | 23,369 | $ | 27,035 | $ | 185,791 | $ | 212,826 | $ | 308,243 | $ | 11,624,758 | $ | 11,933,001 | ||||||||||||||||
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 September 30 | Nine months ended September 30 | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(in thousands) | |||||||||||||||
Amortized cost: | |||||||||||||||
Balance at beginning of period | $ | 37,003 | $ | 32,809 | $ | 34,666 | $ | 30,700 | |||||||
Originations of mortgage servicing rights | 4,341 | 2,213 | 11,177 | 6,881 | |||||||||||
Amortization | (2,711 | ) | (1,343 | ) | (7,210 | ) | (3,902 | ) | |||||||
Balance at end of period | $ | 38,633 | $ | 33,679 | $ | 38,633 | $ | 33,679 | |||||||
Valuation allowance: | |||||||||||||||
Balance at beginning of period | $ | (1,550 | ) | $ | (1,550 | ) | $ | (1,550 | ) | $ | (1,550 | ) | |||
Additions | (2,130 | ) | — | (2,130 | ) | — | |||||||||
Balance at end of period | $ | (3,680 | ) | $ | (1,550 | ) | $ | (3,680 | ) | $ | (1,550 | ) | |||
Net MSRs at end of period | $ | 34,953 | 32,129 | $ | 34,953 | $ | 32,129 |
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(in thousands) | |||||||||||||||
Stock-based compensation expense | $ | 913 | $ | 2,372 | $ | 3,963 | $ | 3,473 | |||||||
Tax benefit | (245 | ) | (746 | ) | (1,061 | ) | (1,001 | ) | |||||||
Stock-based compensation expense, net of tax | $ | 668 | $ | 1,626 | $ | 2,902 | $ | 2,472 |
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(in thousands) | |||||||||||||||
Service cost (1) | $ | 39 | $ | 15 | $ | 117 | $ | 45 | |||||||
Interest cost | 806 | 853 | 2,418 | 2,559 | |||||||||||
Expected return on plan assets | (808 | ) | (837 | ) | (2,424 | ) | (2,511 | ) | |||||||
Net amortization and deferral | 420 | 72 | 1,260 | 216 | |||||||||||
Net periodic benefit cost | $ | 457 | $ | 103 | $ | 1,371 | $ | 309 |
(1) | The Pension Plan service cost recorded for the three and nine months ended September 30, 2012 and 2011, respectively, was related to administrative costs associated with the plan and was not due to the accrual of additional participant benefits. |
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(in thousands) | |||||||||||||||
Service cost | $ | 53 | $ | 50 | $ | 159 | $ | 151 | |||||||
Interest cost | 87 | 107 | 261 | 321 | |||||||||||
Expected return on plan assets | (1 | ) | (1 | ) | (3 | ) | (3 | ) | |||||||
Net accretion and deferral | (91 | ) | (91 | ) | (273 | ) | (273 | ) | |||||||
Net periodic benefit cost | $ | 48 | $ | 65 | $ | 144 | $ | 196 |
September 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 | $ | 390,800 | $ | 12,949 | $ | 181,583 | $ | 3,888 | |||||||
Negative fair values | 5,055 | (86 | ) | 1,593 | (10 | ) | |||||||||
Net interest rate locks with customers | 12,863 | 3,878 | |||||||||||||
Forward Commitments | |||||||||||||||
Positive fair values | 11,157 | 157 | 3,178 | 13 | |||||||||||
Negative fair values | 372,142 | (7,936 | ) | 173,208 | (2,724 | ) | |||||||||
Net forward commitments | (7,779 | ) | (2,711 | ) | |||||||||||
Interest Rate Swaps | |||||||||||||||
Interest rate swaps with customers | 106,084 | 6,973 | 33,846 | 2,744 | |||||||||||
Interest rate swaps with counterparties | 106,084 | (6,973 | ) | 33,846 | (2,744 | ) | |||||||||
Foreign Exchange Contracts with Customers | |||||||||||||||
Positive fair values | 21,586 | 330 | 45,143 | 1,413 | |||||||||||
Negative fair values | 36,278 | (771 | ) | 13,984 | (137 | ) | |||||||||
Net foreign exchange contracts with customers | (441 | ) | 1,276 | ||||||||||||
Foreign Exchange Contracts with Correspondent Banks | |||||||||||||||
Positive fair values | 57,255 | 1,306 | 37,678 | 749 | |||||||||||
Negative fair values | 30,651 | (488 | ) | 68,081 | (2,454 | ) | |||||||||
Net foreign exchange contracts with correspondent banks | 818 | (1,705 | ) | ||||||||||||
Net derivative fair value asset | $ | 5,461 | $ | 738 |
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(in thousands) | |||||||||||||||
Interest rate locks with customers | $ | 3,933 | $ | 4,902 | $ | 8,985 | $ | 6,904 | |||||||
Forward commitments | (3,255 | ) | (4,794 | ) | (5,068 | ) | (14,117 | ) | |||||||
Interest rate swaps with customers | 1,189 | 1,165 | 4,229 | 1,629 | |||||||||||
Interest rate swaps with counterparties | (1,189 | ) | (1,165 | ) | (4,229 | ) | (1,629 | ) | |||||||
Foreign exchange contracts with correspondent banks | 1,654 | (2,035 | ) | 2,523 | (1,537 | ) | |||||||||
Foreign exchange contracts with customers | (1,331 | ) | 1,970 | (1,717 | ) | 1,663 | |||||||||
Net fair value gains (losses) on derivative financial instruments | $ | 1,001 | $ | 43 | $ | 4,723 | $ | (7,087 | ) |
September 30, 2012 | December 31, 2011 | ||||||
(in thousands) | |||||||
Commitments to extend credit | $ | 4,007,947 | $ | 3,803,532 | |||
Standby letters of credit | 427,697 | 444,019 | |||||
Commercial letters of credit | 27,305 | 31,557 |
September 30, 2012 | December 31, 2011 | ||||||
(in thousands) | |||||||
Cost | $ | 81,304 | $ | 45,324 | |||
Fair value | 85,477 | 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. |
September 30, 2012 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(in thousands) | |||||||||||||||
Mortgage loans held for sale | $ | — | $ | 85,477 | $ | — | $ | 85,477 | |||||||
Available for sale investment securities: | |||||||||||||||
Equity securities | 44,113 | — | — | 44,113 | |||||||||||
U.S. Government securities | — | 326 | — | 326 | |||||||||||
U.S. Government sponsored agency securities | — | 2,440 | — | 2,440 | |||||||||||
State and municipal securities | — | 308,032 | — | 308,032 | |||||||||||
Corporate debt securities | — | 97,875 | 8,251 | 106,126 | |||||||||||
Collateralized mortgage obligations | — | 1,030,190 | — | 1,030,190 | |||||||||||
Mortgage-backed securities | — | 1,065,190 | — | 1,065,190 | |||||||||||
Auction rate securities | — | — | 160,062 | 160,062 | |||||||||||
Total available for sale investments | 44,113 | 2,504,053 | 168,313 | 2,716,479 | |||||||||||
Other financial assets | 15,797 | 20,079 | — | 35,876 | |||||||||||
Total assets | $ | 59,910 | $ | 2,609,609 | $ | 168,313 | $ | 2,837,832 | |||||||
Other financial liabilities | $ | 15,420 | $ | 14,995 | $ | — | $ | 30,415 |
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 | 15,292 | 6,645 | — | 21,937 | |||||||||||
Total assets | $ | 49,878 | $ | 2,375,402 | $ | 234,500 | $ | 2,659,780 | |||||||
Other financial liabilities | $ | 15,721 | $ | 5,478 | $ | — | $ | 21,199 |
• | 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 September 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 ($37.4 million at September 30, 2012 and $27.9 million at December 31, 2011) and other equity investments ($6.7 million at September 30, 2012 and 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 ($73.2 million at September 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 ($48.0 million at September 30, 2012 and $41.3 million at December 31, 2011), single-issuer trust preferred securities issued by financial institutions ($50.4 million at September 30, 2012 and $74.4 million at December 31, 2011), pooled trust preferred securities issued by financial institutions ($5.1 million at September 30, 2012 and December 31, 2011) and other corporate debt issued by non-financial institutions ($2.5 million at September 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 the following: |
• | Level 1 assets, consisting of mutual funds that are held in trust for employee deferred compensation plans ($14.2 million at September 30, 2012 and $13.1 million at December 31, 2011) and the fair value of foreign currency exchange contracts ($1.6 million at September 30, 2012 and $2.2 million at December 31, 2011). |
• | 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 ($13.1 million at September 30, 2012 and $3.9 million at December 31, 2011) and the fair value of interest rate swaps with customers ($7.0 million at September 30, 2012 and $2.7 million at December 31, 2011). |
• | Other financial liabilities – Included within this category are the following: |
• | Level 1 employee deferred compensation liabilities which represent amounts due to employees under deferred compensation plans ($14.2 million at September 30, 2012 and $13.1 million at December 31, 2011) and the fair value of foreign currency exchange contracts ($1.3 million at September 30, 2012 and $2.6 million at December 31, 2011). Fair value determinations for these items are described under the heading “Other financial assets” above. |
• | Level 2 liabilities, representing the fair value of mortgage banking derivatives in the form of interest rate locks and forward commitments with secondary market investors ($8.0 million at September 30, 2012 and $2.7 million |
Three months ended September 30, 2012 | |||||||||||
Pooled Trust Preferred Securities | Single-issuer Trust Preferred Securities | ARC Investments | |||||||||
(in thousands) | |||||||||||
Balance at June 30, 2012 | $ | 5,018 | $ | 4,100 | $ | 203,282 | |||||
Sales | — | (956 | ) | — | |||||||
Realized adjustment to fair value (1) | (19 | ) | 19 | — | |||||||
Unrealized adjustment to fair value (2) | 298 | (55 | ) | 6,809 | |||||||
Settlements - calls | (202 | ) | — | (50,370 | ) | ||||||
(Premium amortization) discount accretion (3) | 46 | 2 | 341 | ||||||||
Balance at September 30, 2012 | $ | 5,141 | $ | 3,110 | $ | 160,062 | |||||
Three months ended September 30, 2011 | |||||||||||
Balance at June 30, 2011 | $ | 5,433 | $ | 7,819 | $ | 255,142 | |||||
Realized adjustment to fair value (1) | (53 | ) | — | (292 | ) | ||||||
Unrealized adjustment to fair value (2) | 12 | (585 | ) | (14,660 | ) | ||||||
Settlements - calls | (117 | ) | (650 | ) | (318 | ) | |||||
(Premium amortization) discount accretion (3) | — | (1 | ) | 830 | |||||||
Balance at September 30, 2011 | $ | 5,275 | $ | 6,583 | $ | 240,702 | |||||
Nine months ended September 30, 2012 | |||||||||||
Pooled Trust Preferred Securities | Single-issuer Trust Preferred Securities | ARC Investments | |||||||||
(in thousands) | |||||||||||
Balance at December 31, 2011 | $ | 5,109 | $ | 4,180 | $ | 225,211 | |||||
Sales | — | (956 | ) | — | |||||||
Realized adjustment to fair value (1) | (19 | ) | 19 | — | |||||||
Unrealized adjustment to fair value (2) | 612 | 111 | (12,677 | ) | |||||||
Settlements - calls | (605 | ) | (250 | ) | (54,880 | ) | |||||
(Premium amortization) discount accretion (3) | 44 | 6 | 2,408 | ||||||||
Balance at September 30, 2012 | $ | 5,141 | $ | 3,110 | $ | 160,062 | |||||
Nine months ended September 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 (1) | (1,406 | ) | — | (292 | ) | ||||||
Unrealized adjustment to fair value (2) | 2,490 | 6 | (15,891 | ) | |||||||
Settlements - calls | (335 | ) | (1,205 | ) | (6,817 | ) | |||||
(Premium amortization) discount accretion (3) | (2 | ) | (1 | ) | 3,023 | ||||||
Balance at September 30, 2011 | $ | 5,275 | $ | 6,583 | $ | 240,702 |
(1) | 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. |
(2) | 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. |
(3) | Included as a component of net interest income on the consolidated statements of income. |
(4) | During the nine months ended September 30, 2011, one single-issuer trust preferred security with a fair value of $800,000 was reclassified as a Level 2 asset. |
September 30, 2012 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(in thousands) | |||||||||||||||
Net loans | $ | — | $ | — | $ | 189,143 | $ | 189,143 | |||||||
Other financial assets | — | — | 64,170 | 64,170 | |||||||||||
Total assets | $ | — | $ | — | $ | 253,313 | $ | 253,313 |
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 ($29.2 million at September 30, 2012 and $30.8 million at December 31, 2011) and MSRs, net of the MSRs valuation reserve ($35.0 million at September 30, 2012 and $33.1 million at December 31, 2011), both classified as Level 3 assets. |
September 30, 2012 | December 31, 2011 | ||||||||||||||
Book Value | Estimated Fair Value | Book Value | Estimated Fair Value | ||||||||||||
(in thousands) | |||||||||||||||
FINANCIAL ASSETS | |||||||||||||||
Cash and due from banks | $ | 217,207 | $ | 217,207 | $ | 292,598 | $ | 292,598 | |||||||
Interest-bearing deposits with other banks | 202,305 | 202,305 | 175,336 | 175,336 | |||||||||||
Loans held for sale (1) | 85,477 | 85,477 | 47,009 | 47,009 | |||||||||||
Securities held to maturity | 454 | 487 | 6,669 | 6,699 | |||||||||||
Securities available for sale (1) | 2,789,684 | 2,789,684 | 2,673,298 | 2,673,298 | |||||||||||
Loans, net of unearned income (1) | 11,933,001 | 11,886,084 | 11,968,970 | 11,992,586 | |||||||||||
Accrued interest receivable | 49,784 | 49,784 | 51,098 | 51,098 | |||||||||||
Other financial assets (1) | 151,274 | 151,274 | 320,858 | 320,858 | |||||||||||
FINANCIAL LIABILITIES | |||||||||||||||
Demand and savings deposits | $ | 9,022,312 | $ | 9,022,312 | $ | 8,511,789 | $ | 8,511,789 | |||||||
Time deposits | 3,578,998 | 3,611,952 | 4,013,950 | 4,056,247 | |||||||||||
Short-term borrowings | 486,971 | 486,971 | 597,033 | 597,033 | |||||||||||
Accrued interest payable | 21,818 | 21,818 | 25,686 | 25,686 | |||||||||||
Other financial liabilities (1) | 84,053 | 84,053 | 75,151 | 75,151 | |||||||||||
Federal Home Loan Bank advances and long-term debt | 908,623 | 871,236 | 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 |
As of or for the Three months ended September 30 | As of or for the Nine months ended September 30 | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Income before income taxes (in thousands) | $ | 54,842 | $ | 52,765 | $ | 159,757 | $ | 148,464 | |||||||
Net income (in thousands) | $ | 41,582 | $ | 39,324 | $ | 119,605 | $ | 109,494 | |||||||
Diluted net income per share | $ | 0.21 | $ | 0.20 | $ | 0.60 | $ | 0.55 | |||||||
Return on average assets | 1.02 | % | 0.97 | % | 0.98 | % | 0.91 | % | |||||||
Return on average equity | 8.03 | % | 7.89 | % | 7.83 | % | 7.55 | % | |||||||
Net interest margin (1) | 3.74 | % | 3.93 | % | 3.79 | % | 3.93 | % | |||||||
Non-performing assets to total assets | 1.49 | % | 2.14 | % | 1.49 | % | 2.14 | % | |||||||
Net charge-offs to average loans | 0.84 | % | 1.04 | % | 1.11 | % | 1.25 | % |
(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 September 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) | $ | 11,920,193 | $ | 143,211 | 4.78 | % | $ | 11,887,544 | $ | 151,816 | 5.07 | % | |||||||||
Taxable investment securities (3) | 2,392,043 | 16,658 | 2.78 | 2,142,670 | 20,166 | 3.76 | |||||||||||||||
Tax-exempt investment securities (3) | 286,225 | 3,936 | 5.50 | 325,420 | 4,456 | 5.48 | |||||||||||||||
Equity securities (3) | 109,884 | 820 | 2.98 | 124,893 | 777 | 2.48 | |||||||||||||||
Total investment securities | 2,788,152 | 21,414 | 3.07 | 2,592,983 | 25,399 | 3.92 | |||||||||||||||
Loans held for sale | 61,001 | 578 | 3.79 | 37,626 | 425 | 4.52 | |||||||||||||||
Other interest-earning assets | 147,432 | 35 | 0.09 | 218,135 | 91 | 0.17 | |||||||||||||||
Total interest-earning assets | 14,916,778 | 165,238 | 4.42 | % | 14,736,288 | 177,731 | 4.80 | % | |||||||||||||
Noninterest-earning assets: | |||||||||||||||||||||
Cash and due from banks | 221,946 | 276,063 | |||||||||||||||||||
Premises and equipment | 222,544 | 206,059 | |||||||||||||||||||
Other assets | 1,088,807 | 1,107,107 | |||||||||||||||||||
Less: Allowance for loan losses | (239,931 | ) | (274,436 | ) | |||||||||||||||||
Total Assets | $ | 16,210,144 | $ | 16,051,081 | |||||||||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Demand deposits | $ | 2,608,202 | $ | 1,071 | 0.16 | % | $ | 2,424,646 | $ | 1,262 | 0.21 | % | |||||||||
Savings deposits | 3,364,109 | 1,431 | 0.17 | 3,329,489 | 2,564 | 0.30 | |||||||||||||||
Time deposits | 3,657,616 | 11,346 | 1.23 | 4,224,001 | 15,858 | 1.49 | |||||||||||||||
Total interest-bearing deposits | 9,629,927 | 13,848 | 0.57 | 9,978,136 | 19,684 | 0.78 | |||||||||||||||
Short-term borrowings | 588,568 | 220 | 0.15 | 443,337 | 151 | 0.14 | |||||||||||||||
FHLB advances and long-term debt | 908,767 | 11,111 | 4.88 | 1,025,546 | 12,408 | 4.84 | |||||||||||||||
Total interest-bearing liabilities | 11,127,262 | 25,179 | 0.90 | % | 11,447,019 | 32,243 | 1.12 | % | |||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||
Demand deposits | 2,836,166 | 2,466,877 | |||||||||||||||||||
Other | 185,441 | 159,430 | |||||||||||||||||||
Total Liabilities | 14,148,869 | 14,073,326 | |||||||||||||||||||
Shareholders’ equity | 2,061,275 | 1,977,755 | |||||||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 16,210,144 | $ | 16,051,081 | |||||||||||||||||
Net interest income/net interest margin (FTE) | 140,059 | 3.74 | % | 145,488 | 3.93 | % | |||||||||||||||
Tax equivalent adjustment | (4,178 | ) | (3,995 | ) | |||||||||||||||||
Net interest income | $ | 135,881 | $ | 141,493 |
(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 | $ | 400 | $ | (9,005 | ) | $ | (8,605 | ) | |||
Taxable investment securities | 2,185 | (5,693 | ) | (3,508 | ) | ||||||
Tax-exempt investment securities | (536 | ) | 16 | (520 | ) | ||||||
Equity securities | (101 | ) | 144 | 43 | |||||||
Loans held for sale | 231 | (78 | ) | 153 | |||||||
Other interest-earning assets | (22 | ) | (34 | ) | (56 | ) | |||||
Total interest income | $ | 2,157 | $ | (14,650 | ) | $ | (12,493 | ) | |||
Interest expense on: | |||||||||||
Demand deposits | $ | 105 | $ | (296 | ) | $ | (191 | ) | |||
Savings deposits | 24 | (1,157 | ) | (1,133 | ) | ||||||
Time deposits | (1,965 | ) | (2,547 | ) | (4,512 | ) | |||||
Short-term borrowings | 53 | 16 | 69 | ||||||||
FHLB advances and long-term debt | (1,388 | ) | 91 | (1,297 | ) | ||||||
Total interest expense | $ | (3,171 | ) | $ | (3,893 | ) | $ | (7,064 | ) |
Three months ended September 30 | Increase (decrease) | |||||||||||||
2012 | 2011 | $ | % | |||||||||||
(dollars in thousands) | ||||||||||||||
Real estate – commercial mortgage | $ | 4,603,388 | $ | 4,461,646 | $ | 141,742 | 3.2 | % | ||||||
Commercial – industrial, financial and agricultural | 3,529,733 | 3,691,516 | (161,783 | ) | (4.4 | ) | ||||||||
Real estate – home equity | 1,597,230 | 1,628,822 | (31,592 | ) | (1.9 | ) | ||||||||
Real estate – residential mortgage | 1,200,752 | 1,037,968 | 162,784 | 15.7 | ||||||||||
Real estate – construction | 605,910 | 668,464 | (62,554 | ) | (9.4 | ) | ||||||||
Consumer | 304,235 | 329,619 | (25,384 | ) | (7.7 | ) | ||||||||
Leasing and other | 78,945 | 69,509 | 9,436 | 13.6 | ||||||||||
Total | $ | 11,920,193 | $ | 11,887,544 | $ | 32,649 | 0.3 | % |
Three months ended September 30 | Increase (decrease) | |||||||||||||
2012 | 2011 | $ | % | |||||||||||
(dollars in thousands) | ||||||||||||||
Noninterest-bearing demand | $ | 2,836,166 | $ | 2,466,877 | $ | 369,289 | 15.0 | % | ||||||
Interest-bearing demand | 2,608,202 | 2,424,646 | 183,556 | 7.6 | ||||||||||
Savings | 3,364,109 | 3,329,489 | 34,620 | 1.0 | ||||||||||
Total demand and savings | 8,808,477 | 8,221,012 | 587,465 | 7.1 | ||||||||||
Time deposits | 3,657,616 | 4,224,001 | (566,385 | ) | (13.4 | ) | ||||||||
Total deposits | $ | 12,466,093 | $ | 12,445,013 | $ | 21,080 | 0.2 | % |
Three months ended September 30 | Increase (decrease) | |||||||||||||
2012 | 2011 | $ | % | |||||||||||
(dollars in thousands) | ||||||||||||||
Short-term borrowings: | ||||||||||||||
Customer repurchase agreements | $ | 210,830 | $ | 206,824 | $ | 4,006 | 1.9 | % | ||||||
Customer short-term promissory notes | 127,479 | 170,790 | (43,311 | ) | (25.4 | ) | ||||||||
Total short-term customer funding | 338,309 | 377,614 | (39,305 | ) | (10.4 | ) | ||||||||
Federal funds purchased and other | 250,259 | 65,723 | 184,536 | 280.8 | ||||||||||
Total short-term borrowings | 588,568 | 443,337 | 145,231 | 32.8 | ||||||||||
Long-term debt: | ||||||||||||||
FHLB advances | 539,283 | 641,726 | (102,443 | ) | (16.0 | ) | ||||||||
Other long-term debt | 369,484 | 383,820 | (14,336 | ) | (3.7 | ) | ||||||||
Total long-term debt | 908,767 | 1,025,546 | (116,779 | ) | (11.4 | ) | ||||||||
Total | $ | 1,497,335 | $ | 1,468,883 | $ | 28,452 | 1.9 | % |
Three months ended September 30 | |||||||
2012 | 2011 | ||||||
(dollars in thousands) | |||||||
Loans, net of unearned income, outstanding at end of period | $ | 11,933,001 | $ | 11,895,655 | |||
Daily average balance of loans, net of unearned income | $ | 11,920,193 | $ | 11,887,544 | |||
Balance of allowance for credit losses at beginning of period | $ | 237,316 | $ | 268,633 | |||
Loans charged off: | |||||||
Commercial – industrial, financial and agricultural | 10,471 | 14,840 | |||||
Real estate – construction | 8,364 | 8,535 | |||||
Real estate – commercial mortgage | 7,463 | 5,730 | |||||
Real estate – home equity | 1,688 | 1,158 | |||||
Consumer | 685 | 634 | |||||
Real estate – residential mortgage | 670 | 1,514 | |||||
Leasing and other | 625 | 486 | |||||
Total loans charged off | 29,966 | 32,897 | |||||
Recoveries of loans previously charged off: | |||||||
Commercial – industrial, financial and agricultural | 1,693 | 695 | |||||
Real estate – construction | 1,040 | 595 | |||||
Real estate – commercial mortgage | 1,317 | 249 | |||||
Real estate – home equity | 343 | 23 | |||||
Consumer | 202 | 291 | |||||
Real estate – residential mortgage | 25 | 36 | |||||
Leasing and other | 298 | 192 | |||||
Total recoveries | 4,918 | 2,081 | |||||
Net loans charged off | 25,048 | 30,816 | |||||
Provision for credit losses | 23,000 | 31,000 | |||||
Balance of allowance for credit losses at end of period | $ | 235,268 | $ | 268,817 | |||
Components of the Allowance for Credit Losses: | |||||||
Allowance for loan losses | $ | 233,864 | $ | 266,978 | |||
Reserve for unfunded lending commitments | 1,404 | 1,839 | |||||
Allowance for credit losses | $ | 235,268 | $ | 268,817 | |||
Selected Ratios: | |||||||
Net charge-offs to average loans (annualized) | 0.84 | % | 1.04 | % | |||
Allowance for credit losses to loans outstanding | 1.97 | % | 2.26 | % |
September 30, 2012 | December 31, 2011 | September 30, 2011 | |||||||||
(dollars in thousands) | |||||||||||
Non-accrual loans | $ | 185,791 | $ | 257,761 | $ | 269,176 | |||||
Loans 90 days past due and accruing | 27,035 | 28,767 | 41,427 | ||||||||
Total non-performing loans | 212,826 | 286,528 | 310,603 | ||||||||
Other real estate owned (OREO) | 29,217 | 30,803 | 37,399 | ||||||||
Total non-performing assets | $ | 242,043 | $ | 317,331 | $ | 348,002 | |||||
Non-accrual loans to total loans | 1.56 | % | 2.15 | % | 2.26 | % | |||||
Non-performing assets to total assets | 1.49 | % | 1.94 | % | 2.14 | % | |||||
Allowance for credit losses to non-performing loans | 110.54 | % | 90.11 | % | 86.55 | % | |||||
Non-performing assets to tangible common shareholders’ equity and allowance for credit losses | 13.80 | % | 18.60 | % | 20.37 | % |
September 30, 2012 | December 31, 2011 | September 30, 2011 | |||||||||
(in thousands) | |||||||||||
Commercial – industrial, financial and agricultural | $ | 73,879 | $ | 80,944 | $ | 92,385 | |||||
Real estate – commercial mortgage | 64,609 | 113,806 | 102,928 | ||||||||
Real estate – construction | 32,742 | 60,744 | 52,381 | ||||||||
Real estate – residential mortgage | 24,910 | 16,336 | 48,086 | ||||||||
Real estate – home equity | 12,644 | 11,207 | 12,097 | ||||||||
Consumer | 3,942 | 3,384 | 2,614 | ||||||||
Leasing | 100 | 107 | 112 | ||||||||
Total non-performing loans | $ | 212,826 | $ | 286,528 | $ | 310,603 |
September 30, 2012 | December 31, 2011 | September 30, 2011 | |||||||||
(in thousands) | |||||||||||
Real estate – residential mortgage | $ | 36,946 | $ | 32,331 | $ | 36,113 | |||||
Real estate – commercial mortgage | 32,198 | 22,425 | 23,419 | ||||||||
Real estate – construction | 10,525 | 7,645 | 5,871 | ||||||||
Commercial – industrial, financial and agricultural | 4,795 | 3,581 | 2,229 | ||||||||
Consumer and home equity | 755 | 193 | 194 | ||||||||
Total accruing TDRs | $ | 85,219 | $ | 66,175 | $ | 67,826 |
September 30, 2012 | December 31, 2011 | September 30, 2011 | |||||||||
(in thousands) | |||||||||||
Commercial properties | $ | 16,218 | $ | 15,184 | $ | 18,353 | |||||
Residential properties | 7,145 | 10,499 | 13,997 | ||||||||
Undeveloped land | 5,854 | 5,120 | 5,049 | ||||||||
Total OREO | $ | 29,217 | $ | 30,803 | $ | 37,399 |
2012 | 2011 | ||||||||||||||||||||||
31-89 Days | > 90 Days (1) | Total | 31-89 Days | > 90 Days (1) | Total | ||||||||||||||||||
Real estate – commercial mortgage | 0.46 | % | 1.39 | % | 1.85 | % | 0.84 | % | 2.29 | % | 3.13 | % | |||||||||||
Commercial – industrial, financial and agricultural | 0.45 | % | 2.11 | % | 2.56 | % | 0.57 | % | 2.50 | % | 3.07 | % | |||||||||||
Real estate – construction | 0.95 | % | 5.48 | % | 6.43 | % | 1.28 | % | 8.08 | % | 9.36 | % | |||||||||||
Real estate – residential mortgage | 2.66 | % | 2.05 | % | 4.71 | % | 3.02 | % | 4.62 | % | 7.64 | % | |||||||||||
Real estate – home equity | 0.85 | % | 0.78 | % | 1.63 | % | 0.74 | % | 0.74 | % | 1.48 | % | |||||||||||
Consumer, leasing and other | 1.85 | % | 1.07 | % | 2.92 | % | 1.71 | % | 0.69 | % | 2.40 | % | |||||||||||
Total | 0.80 | % | 1.78 | % | 2.58 | % | 0.99 | % | 2.61 | % | 3.60 | % | |||||||||||
Total dollars (in thousands) | $ | 95,417 | $ | 212,826 | $ | 308,243 | $ | 117,211 | $ | 310,603 | $ | 427,814 |
(1) | Includes non-accrual loans. |
Three months ended September 30 | Increase (decrease) | |||||||||||||
2012 | 2011 | $ | % | |||||||||||
(dollars in thousands) | ||||||||||||||
Overdraft fees | $ | 8,552 | $ | 8,388 | $ | 164 | 2.0 | % | ||||||
Cash management fees | 2,759 | 2,806 | (47 | ) | (1.7 | ) | ||||||||
Other | 4,340 | 3,970 | 370 | 9.3 | ||||||||||
Service charges on deposit accounts | 15,651 | 15,164 | 487 | 3.2 | ||||||||||
Merchant fees | 3,128 | 2,461 | 667 | 27.1 | ||||||||||
Foreign currency processing income | 2,728 | 2,441 | 287 | 11.8 | ||||||||||
Debit card income | 2,145 | 4,538 | (2,393 | ) | (52.7 | ) | ||||||||
Letter of credit fees | 1,220 | 1,307 | (87 | ) | (6.7 | ) | ||||||||
Other | 1,898 | 1,760 | 138 | 7.8 | ||||||||||
Other service charges and fees | 11,119 | 12,507 | (1,388 | ) | (11.1 | ) | ||||||||
Mortgage banking income | 10,594 | 7,942 | 2,652 | 33.4 | ||||||||||
Investment management and trust services | 9,429 | 8,914 | 515 | 5.8 | ||||||||||
Credit card income | 2,095 | 1,778 | 317 | 17.8 | ||||||||||
Other | 3,074 | 2,277 | 797 | 35.0 | ||||||||||
Total, excluding investment securities gains (losses) | 51,962 | 48,582 | 3,380 | 7.0 | ||||||||||
Investment securities gains (losses) | 42 | (443 | ) | 485 | N/M | |||||||||
Total | $ | 52,004 | $ | 48,139 | $ | 3,865 | 8.0 | % |
Three months ended September 30 | Increase (decrease) | |||||||||||||
2012 | 2011 | $ | % | |||||||||||
(dollars in thousands) | ||||||||||||||
Salaries and employee benefits | $ | 62,161 | $ | 58,948 | $ | 3,213 | 5.5 | % | ||||||
Net occupancy expense | 11,161 | 10,790 | 371 | 3.4 | ||||||||||
Other outside services | 4,996 | 1,846 | 3,150 | 170.6 | ||||||||||
Equipment expense | 3,816 | 3,032 | 784 | 25.9 | ||||||||||
Data processing | 3,776 | 3,473 | 303 | 8.7 | ||||||||||
FDIC insurance expense | 3,029 | 3,732 | (703 | ) | (18.8 | ) | ||||||||
Professional fees | 2,728 | 3,247 | (519 | ) | (16.0 | ) | ||||||||
Software | 2,511 | 2,142 | 369 | 17.2 | ||||||||||
OREO and repossession expense | 2,096 | 2,548 | (452 | ) | (17.7 | ) | ||||||||
Telecommunications | 1,764 | 1,996 | (232 | ) | (11.6 | ) | ||||||||
Operating risk loss | 1,404 | 776 | 628 | 80.9 | ||||||||||
Supplies | 1,188 | 1,262 | (74 | ) | (5.9 | ) | ||||||||
Postage | 1,044 | 1,305 | (261 | ) | (20.0 | ) | ||||||||
Intangible amortization | 756 | 953 | (197 | ) | (20.7 | ) | ||||||||
Marketing | 648 | 1,923 | (1,275 | ) | (66.3 | ) | ||||||||
Other | 6,965 | 7,894 | (929 | ) | (11.8 | ) | ||||||||
Total | $ | 110,043 | $ | 105,867 | $ | 4,176 | 3.9 | % |
Nine months ended September 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) | $ | 11,954,830 | $ | 434,520 | 4.86 | % | $ | 11,897,211 | $ | 455,476 | 5.12 | % | |||||||||
Taxable investment securities (3) | 2,442,237 | 53,943 | 2.95 | 2,204,409 | 62,722 | 3.79 | |||||||||||||||
Tax-exempt investment securities (3) | 288,221 | 12,085 | 5.59 | 337,627 | 14,181 | 5.60 | |||||||||||||||
Equity securities (3) | 110,807 | 2,307 | 2.78 | 128,635 | 2,304 | 2.39 | |||||||||||||||
Total investment securities | 2,841,265 | 68,335 | 3.21 | 2,670,671 | 79,207 | 3.96 | |||||||||||||||
Loans held for sale | 52,462 | 1,547 | 3.93 | 39,917 | 1,417 | 4.73 | |||||||||||||||
Other interest-earning assets | 126,169 | 133 | 0.14 | 149,910 | 225 | 0.20 | |||||||||||||||
Total interest-earning assets | 14,974,726 | 504,535 | 4.50 | % | 14,757,709 | 536,325 | 4.86 | % | |||||||||||||
Noninterest-earning assets: | |||||||||||||||||||||
Cash and due from banks | 239,436 | 271,674 | |||||||||||||||||||
Premises and equipment | 217,351 | 206,856 | |||||||||||||||||||
Other assets | 1,095,091 | 1,102,608 | |||||||||||||||||||
Less: Allowance for loan losses | (255,061 | ) | (276,654 | ) | |||||||||||||||||
Total Assets | $ | 16,271,543 | $ | 16,062,193 | |||||||||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Demand deposits | $ | 2,519,454 | $ | 3,132 | 0.17 | % | $ | 2,366,944 | $ | 4,069 | 0.23 | % | |||||||||
Savings deposits | 3,332,704 | 4,751 | 0.19 | 3,323,050 | 9,180 | 0.37 | |||||||||||||||
Time deposits | 3,799,774 | 36,958 | 1.30 | 4,368,831 | 51,496 | 1.58 | |||||||||||||||
Total interest-bearing deposits | 9,651,932 | 44,841 | 0.62 | 10,058,825 | 64,745 | 0.86 | |||||||||||||||
Short-term borrowings | 758,899 | 912 | 0.16 | 506,620 | 573 | 0.15 | |||||||||||||||
FHLB advances and long-term debt | 940,348 | 34,077 | 4.84 | 1,037,437 | 37,346 | 4.81 | |||||||||||||||
Total interest-bearing liabilities | 11,351,179 | 79,830 | 0.94 | % | 11,602,882 | 102,664 | 1.18 | % | |||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||
Demand deposits | 2,690,668 | 2,356,735 | |||||||||||||||||||
Other | 188,222 | 164,144 | |||||||||||||||||||
Total Liabilities | 14,230,069 | 14,123,761 | |||||||||||||||||||
Shareholders’ equity | 2,041,474 | 1,938,432 | |||||||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 16,271,543 | $ | 16,062,193 | |||||||||||||||||
Net interest income/net interest margin (FTE) | 424,705 | 3.79 | % | 433,661 | 3.93 | % | |||||||||||||||
Tax equivalent adjustment | (12,599 | ) | (11,960 | ) | |||||||||||||||||
Net interest income | $ | 412,106 | $ | 421,701 |
(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 | $ | 2,234 | $ | (23,190 | ) | $ | (20,956 | ) | |||
Taxable investment securities | 6,229 | (15,008 | ) | (8,779 | ) | ||||||
Tax-exempt investment securities | (2,084 | ) | (12 | ) | (2,096 | ) | |||||
Equity securities | (343 | ) | 346 | 3 | |||||||
Loans held for sale | 395 | (265 | ) | 130 | |||||||
Other interest-earning assets | (32 | ) | (60 | ) | (92 | ) | |||||
Total interest income | $ | 6,399 | $ | (38,189 | ) | $ | (31,790 | ) | |||
Interest expense on: | |||||||||||
Demand deposits | $ | 249 | $ | (1,186 | ) | $ | (937 | ) | |||
Savings deposits | 27 | (4,456 | ) | (4,429 | ) | ||||||
Time deposits | (6,191 | ) | (8,347 | ) | (14,538 | ) | |||||
Short-term borrowings | 302 | 37 | 339 | ||||||||
FHLB advances and long-term debt | (3,485 | ) | 216 | (3,269 | ) | ||||||
Total interest expense | $ | (9,098 | ) | $ | (13,736 | ) | $ | (22,834 | ) |
Nine months ended September 30 | Increase (decrease) | |||||||||||||
2012 | 2011 | $ | % | |||||||||||
(dollars in thousands) | ||||||||||||||
Real estate – commercial mortgage | $ | 4,618,389 | $ | 4,425,867 | $ | 192,522 | 4.3 | % | ||||||
Commercial – industrial, financial and agricultural | 3,548,332 | 3,696,101 | (147,769 | ) | (4.0 | ) | ||||||||
Real estate – home equity | 1,602,812 | 1,626,937 | (24,125 | ) | (1.5 | ) | ||||||||
Real estate – residential mortgage | 1,172,732 | 1,026,367 | 146,365 | 14.3 | ||||||||||
Real estate – construction | 629,170 | 719,812 | (90,642 | ) | (12.6 | ) | ||||||||
Consumer | 307,619 | 334,565 | (26,946 | ) | (8.1 | ) | ||||||||
Leasing and other | 75,776 | 67,562 | 8,214 | 12.2 | ||||||||||
Total | $ | 11,954,830 | $ | 11,897,211 | $ | 57,619 | 0.5 | % |
Nine months ended September 30 | Increase (decrease) | |||||||||||||
2012 | 2011 | $ | % | |||||||||||
(dollars in thousands) | ||||||||||||||
Noninterest-bearing demand | $ | 2,690,668 | $ | 2,356,735 | $ | 333,933 | 14.2 | % | ||||||
Interest-bearing demand | 2,519,454 | 2,366,944 | 152,510 | 6.4 | ||||||||||
Savings | 3,332,704 | 3,323,050 | 9,654 | 0.3 | ||||||||||
Total demand and savings | 8,542,826 | 8,046,729 | 496,097 | 6.2 | ||||||||||
Time deposits | 3,799,774 | 4,368,831 | (569,057 | ) | (13.0 | ) | ||||||||
Total deposits | $ | 12,342,600 | $ | 12,415,560 | $ | (72,960 | ) | (0.6 | )% |
Nine months ended September 30 | Increase (decrease) | |||||||||||||
2012 | 2011 | $ | % | |||||||||||
(dollars in thousands) | ||||||||||||||
Short-term borrowings: | ||||||||||||||
Customer repurchase agreements | $ | 212,523 | $ | 212,449 | $ | 74 | — | % | ||||||
Customer short-term promissory notes | 142,896 | 177,639 | (34,743 | ) | (19.6 | ) | ||||||||
Total short-term customer funding | 355,419 | 390,088 | (34,669 | ) | (8.9 | ) | ||||||||
Federal funds purchased and other | 403,480 | 116,532 | 286,948 | 246.2 | ||||||||||
Total short-term borrowings | 758,899 | 506,620 | 252,279 | 49.8 | ||||||||||
Long-term debt: | ||||||||||||||
FHLB advances | 570,391 | 653,696 | (83,305 | ) | (12.7 | ) | ||||||||
Other long-term debt | 369,957 | 383,741 | (13,784 | ) | (3.6 | ) | ||||||||
Total long-term debt | 940,348 | 1,037,437 | (97,089 | ) | (9.4 | ) | ||||||||
Total | $ | 1,699,247 | $ | 1,544,057 | $ | 155,190 | 10.1 | % |
Nine months ended September 30 | |||||||
2012 | 2011 | ||||||
(dollars in thousands) | |||||||
Loans, net of unearned income outstanding at end of period | $ | 11,933,001 | $ | 11,895,655 | |||
Daily average balance of loans, net of unearned income | $ | 11,954,830 | $ | 11,897,211 | |||
Balance of allowance for credit losses at beginning of period | $ | 258,177 | $ | 275,498 | |||
Loans charged off: | |||||||
Real estate – commercial mortgage | 43,053 | 22,851 | |||||
Commercial – industrial, financial and agricultural | 29,157 | 43,582 | |||||
Real estate – construction | 25,377 | 29,897 | |||||
Real estate – home equity | 6,683 | 4,276 | |||||
Real estate – residential mortgage | 3,009 | 14,217 | |||||
Consumer | 1,790 | 2,606 | |||||
Leasing and other | 1,696 | 1,672 | |||||
Total loans charged off | 110,765 | 119,101 | |||||
Recoveries of loans previously charged off: | |||||||
Real estate – commercial mortgage | 3,286 | 1,975 | |||||
Commercial – industrial, financial and agricultural | 3,046 | 2,089 | |||||
Real estate – construction | 2,643 | 1,237 | |||||
Real estate – home equity | 641 | 26 | |||||
Real estate – residential mortgage | 169 | 270 | |||||
Consumer | 833 | 1,033 | |||||
Leasing and other | 738 | 790 | |||||
Total recoveries | 11,356 | 7,420 | |||||
Net loans charged off | 99,409 | 111,681 | |||||
Provision for credit losses | 76,500 | 105,000 | |||||
Balance of allowance for credit losses at end of period | $ | 235,268 | $ | 268,817 | |||
Net charge-offs to average loans (annualized) | 1.11 | % | 1.25 | % |
Nine months ended September 30 | Increase (decrease) | |||||||||||||
2012 | 2011 | $ | % | |||||||||||
(dollars in thousands) | ||||||||||||||
Overdraft fees | $ | 24,612 | $ | 23,988 | $ | 624 | 2.6 | % | ||||||
Cash management fees | 8,188 | 7,933 | 255 | 3.2 | ||||||||||
Other | 13,060 | 10,880 | 2,180 | 20.0 | ||||||||||
Service charges on deposit accounts | 45,860 | 42,801 | 3,059 | 7.1 | ||||||||||
Merchant fees | 9,363 | 7,124 | 2,239 | 31.4 | ||||||||||
Foreign currency processing income | 7,791 | 7,012 | 779 | 11.1 | ||||||||||
Debit card income | 6,454 | 13,352 | (6,898 | ) | (51.7 | ) | ||||||||
Letter of credit fees | 3,792 | 3,833 | (41 | ) | (1.1 | ) | ||||||||
Other | 5,781 | 5,377 | 404 | 7.5 | ||||||||||
Other service charges and fees | 33,181 | 36,698 | (3,517 | ) | (9.6 | ) | ||||||||
Mortgage banking income | 31,787 | 19,454 | 12,333 | 63.4 | ||||||||||
Investment management and trust services | 28,628 | 27,756 | 872 | 3.1 | ||||||||||
Credit card income | 6,012 | 5,200 | 812 | 15.6 | ||||||||||
Other | 8,749 | 5,963 | 2,786 | 46.7 | ||||||||||
Total, excluding investment securities gains | 154,217 | 137,872 | 16,345 | 11.9 | ||||||||||
Investment securities gains | 2,831 | 1,507 | 1,324 | 87.9 | ||||||||||
Total | $ | 157,048 | $ | 139,379 | $ | 17,669 | 12.7 | % |
Nine months ended September 30 | Increase (decrease) | |||||||||||||
2012 | 2011 | $ | % | |||||||||||
(dollars in thousands) | ||||||||||||||
Salaries and employee benefits | $ | 182,612 | $ | 169,326 | $ | 13,286 | 7.8 | % | ||||||
Net occupancy expense | 33,301 | 33,030 | 271 | 0.8 | ||||||||||
Other outside services | 11,782 | 5,256 | 6,526 | 124.2 | ||||||||||
Data processing | 11,223 | 10,059 | 1,164 | 11.6 | ||||||||||
Equipment expense | 10,370 | 9,541 | 829 | 8.7 | ||||||||||
FDIC insurance expense | 9,052 | 11,750 | (2,698 | ) | (23.0 | ) | ||||||||
Professional fees | 8,294 | 9,198 | (904 | ) | (9.8 | ) | ||||||||
OREO and repossession expense | 7,847 | 4,801 | 3,046 | 63.4 | ||||||||||
Software | 6,958 | 6,146 | 812 | 13.2 | ||||||||||
Operating risk loss | 6,827 | 306 | 6,521 | N/M | ||||||||||
Marketing | 5,703 | 6,622 | (919 | ) | (13.9 | ) | ||||||||
Telecommunications | 5,143 | 6,188 | (1,045 | ) | (16.9 | ) | ||||||||
Supplies | 3,625 | 4,053 | (428 | ) | (10.6 | ) | ||||||||
Postage | 3,515 | 3,999 | (484 | ) | (12.1 | ) | ||||||||
Intangible amortization | 2,318 | 3,303 | (985 | ) | (29.8 | ) | ||||||||
Other | 24,327 | 24,038 | 289 | 1.2 | ||||||||||
Total | $ | 332,897 | $ | 307,616 | $ | 25,281 | 8.2 | % |
September 30, | December 31, | Increase (decrease) | ||||||||||||
2012 | 2011 | $ | % | |||||||||||
(in thousands) | ||||||||||||||
Real-estate – commercial mortgage | $ | 4,632,509 | $ | 4,602,596 | $ | 29,913 | 0.6 | % | ||||||
Commercial – industrial, financial and agricultural | 3,507,846 | 3,639,368 | (131,522 | ) | (3.6 | ) | ||||||||
Real-estate – home equity | 1,603,456 | 1,624,562 | (21,106 | ) | (1.3 | ) | ||||||||
Real-estate – residential mortgage | 1,213,831 | 1,097,192 | 116,639 | 10.6 | ||||||||||
Real-estate – construction | 597,358 | 615,445 | (18,087 | ) | (2.9 | ) | ||||||||
Consumer | 301,182 | 318,101 | (16,919 | ) | (5.3 | ) | ||||||||
Leasing and other | 76,819 | 71,706 | 5,113 | 7.1 | ||||||||||
Loans, net of unearned income | $ | 11,933,001 | $ | 11,968,970 | $ | (35,969 | ) | (0.3 | )% |
September 30, | December 31, | Increase (decrease) | ||||||||||||
2012 | 2011 | $ | % | |||||||||||
(in thousands) | ||||||||||||||
Noninterest-bearing demand | $ | 2,903,591 | $ | 2,588,034 | $ | 315,557 | 12.2 | % | ||||||
Interest-bearing demand | 2,702,710 | 2,529,388 | 173,322 | 6.9 | % | |||||||||
Savings | 3,416,011 | 3,394,367 | 21,644 | 0.6 | % | |||||||||
Total demand and savings | 9,022,312 | 8,511,789 | 510,523 | 6.0 | % | |||||||||
Time deposits | 3,578,998 | 4,013,950 | (434,952 | ) | (10.8 | )% | ||||||||
Total deposits | 12,601,310 | 12,525,739 | $ | 75,571 | 0.6 | % |
September 30, 2012 | December 31, 2011 | Regulatory Minimum Capital Adequacy | ||||||
Total Capital (to Risk-Weighted Assets) | 15.7 | % | 15.2 | % | 8.0 | % | ||
Tier I Capital (to Risk-Weighted Assets) | 13.4 | % | 12.7 | % | 4.0 | % | ||
Tier I Capital (to Average Assets) | 10.7 | % | 10.3 | % | 4.0 | % |
• | 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. |
September 30, 2012 | |||||||
Amortized cost | Estimated fair value | ||||||
(in thousands) | |||||||
Single-issuer trust preferred securities | $ | 57,726 | $ | 50,426 | |||
Subordinated debt | 44,262 | 48,037 | |||||
Pooled trust preferred securities | 5,601 | 5,141 | |||||
Corporate debt securities issued by financial institutions | $ | 107,589 | $ | 103,604 |
Expected Maturity Period | Estimated | ||||||||||||||||||||||||||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Beyond | Total | Fair Value | ||||||||||||||||||||||||
Fixed rate loans (1) | $ | 985,408 | $ | 441,273 | $ | 359,133 | $ | 279,453 | $ | 241,036 | $ | 416,351 | $ | 2,722,654 | $ | 2,753,721 | |||||||||||||||
Average rate | 3.96 | % | 5.47 | % | 5.33 | % | 5.30 | % | 5.44 | % | 5.24 | % | 4.85 | % | |||||||||||||||||
Floating rate loans (1) (2) | 2,170,465 | 1,376,262 | 1,141,061 | 971,745 | 1,290,283 | 2,248,051 | 9,197,867 | 9,119,883 | |||||||||||||||||||||||
Average rate | 4.36 | % | 4.43 | % | 4.40 | % | 4.39 | % | 4.19 | % | 4.63 | % | 4.42 | % | |||||||||||||||||
Fixed rate investments (3) | 652,709 | 446,636 | 280,418 | 235,072 | 167,444 | 598,519 | 2,380,798 | 2,458,803 | |||||||||||||||||||||||
Average rate | 3.26 | % | 3.33 | % | 3.47 | % | 3.38 | % | 3.56 | % | 3.39 | % | 3.36 | % | |||||||||||||||||
Floating rate investments (3) | — | — | 188,481 | 4,921 | 4,921 | 52,324 | 250,647 | 214,017 | |||||||||||||||||||||||
Average rate | — | % | — | % | 1.91 | % | 1.11 | % | 1.11 | % | 2.82 | % | 2.07 | % | |||||||||||||||||
Other interest-earning assets | 287,782 | — | — | — | — | — | 287,782 | 287,782 | |||||||||||||||||||||||
Average rate | 1.24 | % | — | % | — | % | — | % | — | % | — | % | 1.24 | % | |||||||||||||||||
Total | $ | 4,096,364 | $ | 2,264,171 | $ | 1,969,093 | $ | 1,491,191 | $ | 1,703,684 | $ | 3,315,245 | $ | 14,839,748 | $ | 14,834,206 | |||||||||||||||
Average rate | 3.87 | % | 4.41 | % | 4.20 | % | 4.39 | % | 4.30 | % | 4.46 | % | 4.23 | % | |||||||||||||||||
Fixed rate deposits (4) | $ | 1,972,657 | $ | 615,253 | $ | 280,193 | $ | 97,733 | $ | 67,631 | $ | 34,870 | $ | 3,068,337 | $ | 3,101,291 | |||||||||||||||
Average rate | 1.15 | % | 1.42 | % | 1.96 | % | 0.20 | % | 1.64 | % | 1.98 | % | 1.33 | % | |||||||||||||||||
Floating rate deposits (5) | 4,764,030 | 726,113 | 484,349 | 344,717 | 236,798 | 73,375 | 6,629,382 | 6,629,382 | |||||||||||||||||||||||
Average rate | 0.20 | % | 0.14 | % | 0.12 | % | 0.11 | % | 0.11 | % | 0.25 | % | 0.18 | % | |||||||||||||||||
Fixed rate borrowings (6) | 3,987 | 6,056 | 151,172 | 532 | 571,429 | 158,698 | 891,874 | 866,440 | |||||||||||||||||||||||
Average rate | 1.78 | % | 5.50 | % | 4.57 | % | 4.54 | % | 4.48 | % | 6.23 | % | 4.80 | % | |||||||||||||||||
Floating rate borrowings (7) | 487,224 | — | — | — | — | 16,496 | 503,720 | 491,767 | |||||||||||||||||||||||
Average rate | 0.13 | % | — | % | — | % | — | % | — | % | 2.59 | % | 0.22 | % | |||||||||||||||||
Total | $ | 7,227,898 | $ | 1,347,422 | $ | 915,714 | $ | 442,982 | $ | 875,858 | $ | 283,439 | $ | 11,093,313 | $ | 11,088,880 | |||||||||||||||
Average rate | 0.45 | % | 0.75 | % | 1.42 | % | 0.53 | % | 3.08 | % | 3.95 | % | 0.87 | % |
(1) | Amounts are based on contractual payments and maturities, adjusted for expected prepayments. Excludes $12.5 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 | 33.6% |
Two years | 19.7 |
Three years | 15.4 |
Four years | 14.7 |
Five years | 10.8 |
Greater than five years | 5.8 |
Rate Shock | Annual change in net interest income | % Change | ||
+300 bp | + $ 57.4 million | +11.0% | ||
+200 bp | + $ 34.5 million | +6.6 | ||
+100 bp | + $ 11.9 million | +2.3 | ||
–100 bp (1) | – $ 20.5 million | –3.9 |
(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. |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs | |||||||
July 1, 2012 to July 31, 2012 | 610,534 | $9.22 | 610,534 | 4,389,466 | |||||||
August 1, 2012 to August 31,2012 | 1,208,093 | $9.78 | 1,208,093 | 3,181,373 | |||||||
September 1, 2012 to September 30, 2012 | 296,369 | $9.82 | 296,369 | 2,885,004 |
FULTON FINANCIAL CORPORATION | ||||
Date: | November 9, 2012 | /s/ R. Scott Smith, Jr. | ||
R. Scott Smith, Jr. | ||||
Chairman and Chief Executive Officer | ||||
Date: | November 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 September 30, 2012, filed on November 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: | November 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: | November 9, 2012 | |
/s/ Charles J. Nugent | ||
Charles J. Nugent | ||
Senior Executive Vice President and Chief Financial Officer |
Date: | November 9, 2012 | |
/s/ R. Scott Smith, Jr. | ||
R. Scott Smith, Jr. | ||
Chairman and Chief Executive Officer |
Date: | November 9, 2012 | |
/s/ Charles J. Nugent | ||
Charles J. Nugent | ||
Senior Executive Vice President and | ||
Chief Financial Officer |
Loans and Allowance for Credit Losses Activity in the Allowance for Credit Losses (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
|
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | $ 237,316 | $ 268,633 | $ 258,177 | $ 275,498 |
Loans charged off | (29,966) | (32,897) | (110,765) | (119,101) |
Recoveries of loans previously charged off | 4,918 | 2,081 | 11,356 | 7,420 |
Net loans charged off | (25,048) | (30,816) | (99,409) | (111,681) |
Provision for credit losses | 23,000 | 31,000 | 76,500 | 105,000 |
Balance at end of period | $ 235,268 | $ 268,817 | $ 235,268 | $ 268,817 |
Fair Value Measurements Changes in Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Level 3 Inputs (Details) (Fair Value, Measurements, Recurring [Member], Fair Value, Inputs, Level 3 [Member], USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
Sep. 30, 2011
|
Sep. 30, 2012
|
Sep. 30, 2011
|
|||||||||||||
Pooled Trust Preferred Securities [Member]
|
||||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||||||||||
Balance, beginning of period | $ 5,018 | $ 5,433 | $ 5,109 | $ 4,528 | ||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 0 | 0 | ||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3 | 0 | [1] | ||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | (19) | (53) | (19) | [2] | (1,406) | [2] | ||||||||||
Unrealized adjustment to fair value | 298 | [3] | 12 | [3] | 612 | [3] | 2,490 | [3] | ||||||||
Settlements - calls | (202) | (117) | (605) | (335) | ||||||||||||
(Premium amortization) discount accretion | 46 | [4] | 0 | [4] | 44 | [4] | (2) | [4] | ||||||||
Balance, end of period | 5,141 | 5,275 | 5,141 | 5,275 | ||||||||||||
Single-issuer Trust Preferred Securities [Member]
|
||||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||||||||||
Balance, beginning of period | 4,100 | 7,819 | 4,180 | 8,583 | ||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | (956) | (956) | ||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3 | (800) | [1] | ||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 19 | 0 | 19 | [2] | 0 | [2] | ||||||||||
Unrealized adjustment to fair value | (55) | [3] | (585) | [3] | 111 | [3] | 6 | [3] | ||||||||
Settlements - calls | 0 | (650) | (250) | (1,205) | ||||||||||||
(Premium amortization) discount accretion | 2 | [4] | (1) | [4] | 6 | [4] | (1) | [4] | ||||||||
Balance, end of period | 3,110 | 6,583 | 3,110 | 6,583 | ||||||||||||
Auction Rate Securities [Member]
|
||||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||||||||||||
Balance, beginning of period | 203,282 | 255,142 | 225,211 | 260,679 | ||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 0 | 0 | ||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers out of Level 3 | 0 | [1] | ||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 0 | (292) | 0 | [2] | (292) | [2] | ||||||||||
Unrealized adjustment to fair value | 6,809 | [3] | (14,660) | [3] | (12,677) | [3] | (15,891) | [3] | ||||||||
Settlements - calls | (50,370) | (318) | (54,880) | (6,817) | ||||||||||||
(Premium amortization) discount accretion | 341 | [4] | 830 | [4] | 2,408 | [4] | 3,023 | [4] | ||||||||
Balance, end of period | $ 160,062 | $ 240,702 | $ 160,062 | $ 240,702 | ||||||||||||
|
Loans and Allowance for Credit Losses Summary of Delinquency and Non-Performing Status by Portfolio Segment (Details) (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
||||||
---|---|---|---|---|---|---|---|---|
Loans, gross of unearned income | $ 11,940,005 | $ 11,975,964 | ||||||
Real Estate, Home Equity, Construction, Other, Consumer and Leasing [Member]
|
||||||||
Loans, gross of unearned income | 3,261,160 | 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 | 3,161,412 | 3,073,867 | ||||||
Percentage Of Total | 96.90% | 97.10% | ||||||
Real Estate, Home Equity, Construction, Other, Consumer and Leasing [Member] | Delinquent [Member]
|
||||||||
Loans, gross of unearned income | 57,415 | [1] | 58,594 | [1] | ||||
Percentage Of Total | 1.80% | [1] | 1.90% | [1] | ||||
Real Estate, Home Equity, Construction, Other, Consumer and Leasing [Member] | Non-performing [Member]
|
||||||||
Loans, gross of unearned income | 42,333 | [2] | 32,227 | [2] | ||||
Percentage Of Total | 1.30% | [2] | 1.00% | [2] | ||||
Real-estate - home equity [Member]
|
||||||||
Loans, gross of unearned income | 1,603,456 | 1,624,562 | ||||||
Real-estate - home equity [Member] | Performing [Member]
|
||||||||
Loans, gross of unearned income | 1,577,256 | 1,601,722 | ||||||
Real-estate - home equity [Member] | Delinquent [Member]
|
||||||||
Loans, gross of unearned income | 13,557 | [1] | 11,633 | [1] | ||||
Real-estate - home equity [Member] | Non-performing [Member]
|
||||||||
Loans, gross of unearned income | 12,643 | [2] | 11,207 | [2] | ||||
Real-estate - residential mortgage [Member]
|
||||||||
Loans, gross of unearned income | 1,213,831 | 1,097,192 | ||||||
Real-estate - residential mortgage [Member] | Performing [Member]
|
||||||||
Loans, gross of unearned income | 1,156,610 | 1,043,733 | ||||||
Real-estate - residential mortgage [Member] | Delinquent [Member]
|
||||||||
Loans, gross of unearned income | 32,311 | [1] | 37,123 | [1] | ||||
Real-estate - residential mortgage [Member] | Non-performing [Member]
|
||||||||
Loans, gross of unearned income | 24,910 | [2] | 16,336 | [2] | ||||
Construction other [Member]
|
||||||||
Loans, gross of unearned income | 65,872 | 53,127 | ||||||
Construction other [Member] | Performing [Member]
|
||||||||
Loans, gross of unearned income | 60,571 | 49,593 | ||||||
Construction other [Member] | Delinquent [Member]
|
||||||||
Loans, gross of unearned income | 4,564 | [1] | 2,341 | [1] | ||||
Construction other [Member] | Non-performing [Member]
|
||||||||
Loans, gross of unearned income | 737 | [2] | 1,193 | [2] | ||||
Total Consumer
|
||||||||
Loans, gross of unearned income | 301,182 | 318,101 | ||||||
Total Consumer | Performing [Member]
|
||||||||
Loans, gross of unearned income | 291,021 | 308,269 | ||||||
Total Consumer | Delinquent [Member]
|
||||||||
Loans, gross of unearned income | 6,218 | [1] | 6,448 | [1] | ||||
Total Consumer | Non-performing [Member]
|
||||||||
Loans, gross of unearned income | 3,943 | [2] | 3,384 | [2] | ||||
Consumer - direct [Member]
|
||||||||
Loans, gross of unearned income | 153,950 | 164,369 | ||||||
Consumer - direct [Member] | Performing [Member]
|
||||||||
Loans, gross of unearned income | 146,351 | 157,157 | ||||||
Consumer - direct [Member] | Delinquent [Member]
|
||||||||
Loans, gross of unearned income | 3,908 | [1] | 4,011 | [1] | ||||
Consumer - direct [Member] | Non-performing [Member]
|
||||||||
Loans, gross of unearned income | 3,691 | [2] | 3,201 | [2] | ||||
Consumer - Indirect [Member]
|
||||||||
Loans, gross of unearned income | 147,232 | 153,732 | ||||||
Consumer - Indirect [Member] | Performing [Member]
|
||||||||
Loans, gross of unearned income | 144,670 | 151,112 | ||||||
Consumer - Indirect [Member] | Delinquent [Member]
|
||||||||
Loans, gross of unearned income | 2,310 | [1] | 2,437 | [1] | ||||
Consumer - Indirect [Member] | Non-performing [Member]
|
||||||||
Loans, gross of unearned income | 252 | [2] | 183 | [2] | ||||
Leasing and other and overdrafts [Member]
|
||||||||
Loans, gross of unearned income | 76,819 | 71,706 | ||||||
Leasing and other and overdrafts [Member] | Performing [Member]
|
||||||||
Loans, gross of unearned income | 75,954 | 70,550 | ||||||
Leasing and other and overdrafts [Member] | Delinquent [Member]
|
||||||||
Loans, gross of unearned income | 765 | [1] | 1,049 | [1] | ||||
Leasing and other and overdrafts [Member] | Non-performing [Member]
|
||||||||
Loans, gross of unearned income | $ 100 | [2] | $ 107 | [2] | ||||
|
Loans and Allowance for Credit Losses Summary Of Gross Loans (Details) (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
Sep. 30, 2011
|
---|---|---|---|
Loans [Line Items] | |||
Loans, gross of unearned income | $ 11,940,005 | $ 11,975,964 | |
Unearned income | (7,004) | (6,994) | |
Loans, net of unearned income | 11,933,001 | 11,968,970 | 11,895,655 |
Real-estate commercial mortage [Member]
|
|||
Loans [Line Items] | |||
Loans, gross of unearned income | 4,632,509 | 4,602,596 | |
Loans, net of unearned income | 4,632,509 | 4,491,155 | |
Commercial - industrial, financial, and agricultural
|
|||
Loans [Line Items] | |||
Loans, gross of unearned income | 3,507,846 | 3,639,368 | |
Loans, net of unearned income | 3,507,846 | 3,690,164 | |
Real-estate - home equity [Member]
|
|||
Loans [Line Items] | |||
Loans, gross of unearned income | 1,603,456 | 1,624,562 | |
Loans, net of unearned income | 1,603,456 | 1,630,880 | |
Real-estate - residential mortgage [Member]
|
|||
Loans [Line Items] | |||
Loans, gross of unearned income | 1,213,831 | 1,097,192 | |
Loans, net of unearned income | 1,213,831 | 1,041,463 | |
Real-estate - construction
|
|||
Loans [Line Items] | |||
Loans, gross of unearned income | 597,358 | 615,445 | |
Loans, net of unearned income | 597,358 | 648,398 | |
Consumer
|
|||
Loans [Line Items] | |||
Loans, gross of unearned income | 301,182 | 318,101 | |
Loans, net of unearned income | 301,182 | 327,054 | |
Leasing and other [Member]
|
|||
Loans [Line Items] | |||
Loans, gross of unearned income | 71,343 | 63,254 | |
Overdrafts [Member]
|
|||
Loans [Line Items] | |||
Loans, gross of unearned income | $ 12,480 | $ 15,446 |
Fair Value Option (Tables)
|
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Corporation's Mortgage Loans Held for Sale | The following table presents a summary of the Corporation’s mortgage loans held for sale:
|
Fair Value Measurements Narrative (Details) (USD $)
|
3 Months Ended | ||
---|---|---|---|
Sep. 30, 2012
|
Mar. 31, 2012
|
Dec. 31, 2011
|
|
Fair Value, Equity Securities, Value Test Coverage, Percent | 80.00% | ||
Fair Value, Equity Securities, Fair Value Price Difference Threshold, Percent | 5.00% | ||
Corporate debt securities | $ 2,672,366,000 | ||
Significant Input, Assumed Market Return to Liquidity, Years | 5 years | 3 years | |
Other real estate owned (OREO) | 29,217,000 | 30,803,000 | |
Short Term Borrowings, Reprice Period, In Days | 90 | ||
Minimum [Member]
|
|||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Prepayment Speed | 15.90% | ||
Maximum [Member]
|
|||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Prepayment Speed | 16.50% | ||
Equity Securities [Member]
|
|||
Restricted equity securities issued by the Federal Home Loan Bank and Federal Reserve Bank | 73,200,000 | 82,500,000 | |
Equity Securities Financial Institution [Member]
|
|||
Available-for-sale Securities, Equity Securities | 37,400,000 | 27,900,000 | |
Equity Securities, Other [Member]
|
|||
Available-for-sale Securities, Equity Securities | 6,700,000 | 6,700,000 | |
Corporate Debt Securities [Member]
|
|||
Corporate debt securities | 106,126,000 | 123,306,000 | |
Single-issuer Trust Preferred Securities [Member]
|
|||
Corporate debt securities | 50,426,000 | 74,365,000 | |
Pooled Trust Preferred Securities [Member]
|
|||
Corporate debt securities | 5,141,000 | 5,109,000 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Equity Securities Financial Institution [Member]
|
|||
Available-for-sale Securities, Equity Securities | 37,400,000 | 27,900,000 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Equity Securities, Other [Member]
|
|||
Available-for-sale Securities, Equity Securities | 6,700,000 | 6,700,000 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Financial Institutions Subordinated Debt [Member]
|
|||
Corporate debt securities | 48,000,000 | 41,300,000 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Single-issuer Trust Preferred Securities [Member]
|
|||
Corporate debt securities | 47,300,000 | 70,200,000 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Other Corporate Debt [Member]
|
|||
Corporate debt securities | 2,500,000 | ||
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Single-issuer Trust Preferred Securities [Member]
|
|||
Corporate debt securities | 50,400,000 | 74,400,000 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Single-issuer Trust Preferred Securities [Member]
|
|||
Corporate debt securities | 3,100,000 | 4,200,000 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Pooled Trust Preferred Securities [Member]
|
|||
Corporate debt securities | 5,100,000 | 5,100,000 | |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member]
|
|||
Other real estate owned (OREO) | 29,200,000 | 30,800,000 | |
Servicing Asset at Amortized Value, Fair Value | 35,000,000 | 33,100,000 | |
Trust for Benefit of Employees [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
|
|||
Other financial assets | 14,200,000 | 13,100,000 | |
Foreign Exchange Contract [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
|
|||
Other financial assets | 1,600,000 | 2,200,000 | |
Forward Contracts [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
|
|||
Other financial assets | 13,100,000 | 3,900,000 | |
Other financial liabilities | 8,000,000 | 2,700,000 | |
Interest Rate Swap [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
|
|||
Other financial assets | 7,000,000 | 2,700,000 | |
Other financial liabilities | 7,000,000 | 2,700,000 | |
Foreign Exchange Contract [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
|
|||
Other financial liabilities | 1,300,000 | 2,600,000 | |
Trust for Benefit of Employees [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
|
|||
Other financial liabilities | $ 14,200,000 | $ 13,100,000 |
Loans and Allowance for Credit Losses Loans Modified Under Troubled Debt Restructurings (Details) (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
||||
---|---|---|---|---|---|---|
Financing Receivable, Modifications [Line Items] | ||||||
Total accruing TDRs | $ 85,219 | $ 66,175 | ||||
Non-accrual TDRs | 21,167 | [1] | 32,587 | [1] | ||
Total TDRs | 106,386 | 98,762 | ||||
Real-estate - residential mortgage [Member]
|
||||||
Financing Receivable, Modifications [Line Items] | ||||||
Total accruing TDRs | 36,946 | 32,331 | ||||
Real-estate commercial mortage [Member]
|
||||||
Financing Receivable, Modifications [Line Items] | ||||||
Total accruing TDRs | 32,198 | 22,425 | ||||
Commercial - Secured [Member]
|
||||||
Financing Receivable, Modifications [Line Items] | ||||||
Total accruing TDRs | 4,671 | 3,449 | ||||
Construction - Commercial Residential [Member]
|
||||||
Financing Receivable, Modifications [Line Items] | ||||||
Total accruing TDRs | 10,190 | 7,645 | ||||
Construction other [Member]
|
||||||
Financing Receivable, Modifications [Line Items] | ||||||
Total accruing TDRs | 335 | 0 | ||||
Home Equity [Member]
|
||||||
Financing Receivable, Modifications [Line Items] | ||||||
Total accruing TDRs | 755 | 183 | ||||
Commercial - unsecured [Member]
|
||||||
Financing Receivable, Modifications [Line Items] | ||||||
Total accruing TDRs | 124 | 132 | ||||
Consumer - direct [Member]
|
||||||
Financing Receivable, Modifications [Line Items] | ||||||
Total accruing TDRs | $ 0 | $ 10 | ||||
|
Fair Value Measurements Assets Measured at Fair Value on a Nonrecurring Basis (Details) (Fair Value, Measurements, Nonrecurring [Member], USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Level 1 [Member]
|
||
Net loans | $ 0 | $ 0 |
Total assets | 0 | 0 |
Level 1 [Member] | Other Assets [Member]
|
||
Other finanical assets | 0 | 0 |
Level 2 [Member]
|
||
Net loans | 0 | 0 |
Total assets | 0 | 0 |
Level 2 [Member] | Other Assets [Member]
|
||
Other finanical assets | 0 | 0 |
Level 3 [Member]
|
||
Net loans | 189,143 | 216,812 |
Total assets | 253,313 | 280,731 |
Level 3 [Member] | Other Assets [Member]
|
||
Other finanical assets | 64,170 | 63,919 |
Total [Member]
|
||
Net loans | 189,143 | 216,812 |
Total assets | 253,313 | 280,731 |
Total [Member] | Other Assets [Member]
|
||
Other finanical assets | $ 64,170 | $ 63,919 |
Accumulated Other Comprehensive Income Accumulated Other Comprehensive Income (Tables)
|
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2012
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Accumulated Other Comprehensive Income [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in other comprehensive income [Table Text Block] | The following table presents changes in other comprehensive income for the three and nine months ended September 30, 2012 and 2011:
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Changes in each component of accumulated other comprehensive income [Table Text Block] | The following table presents changes in each component of accumulated other comprehensive income, net of tax, for the three and nine months ended September 30, 2012 and 2011:
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Investment Securities Summary of Cumulative Other-than-Temporary Impairment Charges Recognized in Earnings for Pooled Trust Preferred Securities Held (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2012
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Sep. 30, 2011
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Sep. 30, 2012
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Sep. 30, 2011
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Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||||
Balance of cumulative credit losses on pooled trust preferred securities, beginning of period | $ (22,692) | $ (28,876) | $ (22,781) | $ (27,560) |
Additions for credit losses recorded which were not previously recognized as components of earnings | (19) | (345) | (19) | (1,698) |
Reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security | 66 | 40 | 155 | 77 |
Balance of cumulative credit losses on pooled trust preferred securities, end of period | $ (22,645) | $ (29,181) | $ (22,645) | $ (29,181) |
Accumulated Other Comprehensive Income Changes in Other Comprehensive Income (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2012
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Sep. 30, 2011
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Sep. 30, 2012
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Sep. 30, 2011
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, before Tax | $ 16,668 | $ (2,886) | $ 7,252 | $ 23,297 |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | (5,834) | 1,010 | (2,538) | (8,154) |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 10,834 | (1,876) | 4,714 | 15,143 |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, before Tax | (43) | 443 | (2,831) | (1,506) |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Tax | 15 | (155) | 991 | 527 |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | (28) | 288 | (1,840) | (979) |
Other than Temporary Impairment Losses, Investments, Portion in Other Comprehensive Income (Loss), before Tax, Including Portion Attributable to Noncontrolling Interest | 417 | (834) | 360 | 288 |
Other than Temporary Impairment Losses, Investments, Portion in Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | (146) | 292 | (126) | (101) |
Other than Temporary Impairment Losses, Investments, Portion in Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 271 | (542) | 234 | 187 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | 52 | 52 | 157 | 157 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | (18) | (18) | (55) | (55) |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | 34 | 34 | 102 | 102 |
Other Comprehensive Income (Loss), Amortization, Pension and Other Postretirement Benefit Plans, Net Prior Service Cost (Credit) Recognized in Net Periodic Benefit Cost, before Tax | 329 | (20) | 988 | (57) |
Other Comprehensive Income (Loss), Amortization, Pension and Other Postretirement Benefit Plans, Net Prior Service Cost Recognized in Net Periodic Pension Cost, Tax Effect | (115) | 7 | (346) | 20 |
Other Comprehensive Income (Loss), Amortization, Pension and Other Postretirement Benefit Plans, Net Prior Service Cost Recognized in Net Periodic Pension Cost, Net of Tax | 214 | (13) | 642 | (37) |
Other Comprehensive Income (Loss), before Tax | 17,423 | (3,245) | 5,926 | 22,179 |
Other Comprehensive Income (Loss), Tax | (6,098) | 1,136 | (2,074) | (7,763) |
Other Comprehensive Income (Loss) | $ 11,325 | $ (2,109) | $ 3,852 | $ 14,416 |
Loans and Allowance for Credit Losses Total Impaired Loans by Class Segments (Details) (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
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Dec. 31, 2011
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Impaired Financing Receivables [Line Items] | ||
Unpaid principal balance, with no related allowance | $ 127,922 | $ 156,599 |
Unpaid principal balance, with related allowance | 212,050 | 256,798 |
Unpaid Principal Balance | 339,972 | 413,397 |
Recorded investment, with no related allowance | 94,156 | 109,938 |
Recorded investment, with related allowance | 177,027 | 203,451 |
Recorded Investment | 271,183 | 313,389 |
Related Allowance | 82,040 | 96,577 |
Real-estate commercial mortage [Member]
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Impaired Financing Receivables [Line Items] | ||
Unpaid principal balance, with no related allowance | 44,225 | 54,445 |
Unpaid principal balance, with related allowance | 78,258 | 100,529 |
Recorded investment, with no related allowance | 33,917 | 46,768 |
Recorded investment, with related allowance | 59,222 | 79,566 |
Related Allowance | 25,280 | 36,060 |
Commercial - Secured [Member]
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Impaired Financing Receivables [Line Items] | ||
Unpaid principal balance, with no related allowance | 38,023 | 35,529 |
Unpaid principal balance, with related allowance | 60,556 | 61,970 |
Recorded investment, with no related allowance | 30,067 | 28,440 |
Recorded investment, with related allowance | 44,445 | 47,652 |
Related Allowance | 21,816 | 26,248 |
Commercial - unsecured [Member]
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Impaired Financing Receivables [Line Items] | ||
Unpaid principal balance, with no related allowance | 105 | 0 |
Unpaid principal balance, with related allowance | 2,725 | 3,139 |
Recorded investment, with no related allowance | 105 | 0 |
Recorded investment, with related allowance | 2,505 | 2,789 |
Related Allowance | 1,889 | 2,177 |
Real-estate - home equity [Member]
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Impaired Financing Receivables [Line Items] | ||
Unpaid principal balance, with no related allowance | 581 | 199 |
Unpaid principal balance, with related allowance | 8,322 | 5,294 |
Recorded investment, with no related allowance | 581 | 199 |
Recorded investment, with related allowance | 8,322 | 5,294 |
Related Allowance | 5,316 | 3,076 |
Real-estate - residential mortgage [Member]
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Impaired Financing Receivables [Line Items] | ||
Unpaid principal balance, with no related allowance | 1,980 | 0 |
Unpaid principal balance, with related allowance | 35,554 | 39,918 |
Recorded investment, with no related allowance | 1,980 | 0 |
Recorded investment, with related allowance | 46,838 | 39,918 |
Related Allowance | 20,550 | 16,295 |
Construction - commercial residential [Member]
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Impaired Financing Receivables [Line Items] | ||
Unpaid principal balance, with no related allowance | 39,490 | 62,822 |
Unpaid principal balance, with related allowance | 23,233 | 41,176 |
Recorded investment, with no related allowance | 24,560 | 31,233 |
Recorded investment, with related allowance | 12,536 | 25,632 |
Related Allowance | 5,368 | 11,287 |
Construction - Commercial [Member]
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Impaired Financing Receivables [Line Items] | ||
Unpaid principal balance, with no related allowance | 3,518 | 3,604 |
Unpaid principal balance, with related allowance | 2,302 | 3,221 |
Recorded investment, with no related allowance | 2,946 | 3,298 |
Recorded investment, with related allowance | 2,059 | 1,049 |
Related Allowance | 1,169 | 506 |
Construction other [Member]
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Impaired Financing Receivables [Line Items] | ||
Unpaid principal balance, with related allowance | 1,072 | 1,127 |
Recorded investment, with related allowance | 1,072 | 1,127 |
Related Allowance | 634 | 663 |
Consumer - direct [Member]
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Impaired Financing Receivables [Line Items] | ||
Unpaid principal balance, with related allowance | 7 | 368 |
Recorded investment, with related allowance | 7 | 368 |
Related Allowance | 5 | 228 |
Leasing and other and overdrafts [Member]
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Impaired Financing Receivables [Line Items] | ||
Unpaid principal balance, with related allowance | 21 | 56 |
Recorded investment, with related allowance | 21 | 56 |
Related Allowance | $ 13 | $ 37 |
Commitments and Contingencies Outstanding Commitments to Extend Credit and Letters of Credit (Details) (USD $)
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3 Months Ended | 9 Months Ended | |||||||||
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Sep. 30, 2012
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Sep. 30, 2012
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Sep. 30, 2011
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Sep. 30, 2012
Commitments to Extend Credit [Member]
Reserve for Off-balance Sheet Activities [Member]
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Dec. 31, 2011
Commitments to Extend Credit [Member]
Reserve for Off-balance Sheet Activities [Member]
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Sep. 30, 2012
Standby Letters of Credit [Member]
Reserve for Off-balance Sheet Activities [Member]
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Dec. 31, 2011
Standby Letters of Credit [Member]
Reserve for Off-balance Sheet Activities [Member]
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Sep. 30, 2012
Commercial Letters of Credit [Member]
Reserve for Off-balance Sheet Activities [Member]
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Dec. 31, 2011
Commercial Letters of Credit [Member]
Reserve for Off-balance Sheet Activities [Member]
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Sep. 30, 2012
Residential Mortgage [Member]
Reserve for Off-balance Sheet Activities [Member]
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Dec. 31, 2011
Residential Mortgage [Member]
Reserve for Off-balance Sheet Activities [Member]
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ResidentialMortgagePrincipalBalanceRepurchaseRequestReceived | $ 5,900,000 | $ 2,700,000 | |||||||||
ResidentialMortgagePrincipalBalanceFHLBCreditEnhancement | 248,000,000 | ||||||||||
ResidentialMortgageRepurchaseReservesFHLBCreditEnhancement | 3,000,000 | ||||||||||
Valuation allowances and Reserves, Balance | $ 4,007,947,000 | $ 3,803,532,000 | $ 427,697,000 | $ 444,019,000 | $ 27,305,000 | $ 31,557,000 | $ 4,600,000 | $ 1,500,000 |
Mortgage Servicing Rights Summary of Changes in Mortgage Servicing Rights (Details) (Residential Mortgage [Member], USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2012
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Sep. 30, 2011
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Sep. 30, 2012
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Sep. 30, 2011
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Residential Mortgage [Member]
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Amortized Cost: | ||||
Balance at beginning of period | $ 37,003 | $ 32,809 | $ 34,666 | $ 30,700 |
Originations of mortgage servicing rights | 4,341 | 2,213 | 11,177 | 6,881 |
Amortization | (2,711) | (1,343) | (7,210) | (3,902) |
Balance at end of period | 38,633 | 33,679 | 38,633 | 33,679 |
Valuation Allowance: | ||||
Valuation Allowance | (1,550) | (1,550) | (1,550) | (1,550) |
Additions | (2,130) | 0 | (2,130) | 0 |
Valuation Allowance | (3,680) | (1,550) | (3,680) | (1,550) |
Net MSRs at end of period | $ 34,953 | $ 32,129 | $ 34,953 | $ 32,129 |
Loans and Allowance for Credit Losses Allowance for Credit Losses (Details) (USD $)
In Thousands, unless otherwise specified |
Sep. 30, 2012
|
Jun. 30, 2012
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Dec. 31, 2011
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Sep. 30, 2011
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Jun. 30, 2011
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Dec. 31, 2010
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Loans and Leases Receivable, Allowance [Abstract] | ||||||
Loans and Leases Receivable, Allowance | $ 233,864 | $ 235,736 | $ 256,471 | $ 266,978 | $ 266,683 | $ 274,271 |
Reserve For Unfunded Lending Commitments | 1,404 | 1,706 | ||||
Financing Receivable, Allowance for Credit Losses | $ 235,268 | $ 237,316 | $ 258,177 | $ 268,817 | $ 268,633 | $ 275,498 |
Basis of Presentation
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9 Months Ended |
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Sep. 30, 2012
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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 nine-month periods ended September 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 Compensation Expense and Related Tax Benefits (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2012
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Sep. 30, 2011
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Sep. 30, 2012
|
Sep. 30, 2011
|
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Stock-based compensation expense | $ 913 | $ 2,372 | $ 3,963 | $ 3,473 |
Tax benefit | (245) | (746) | (1,061) | (1,001) |
Stock-based compensation expense, net of tax | $ 668 | $ 1,626 | $ 2,902 | $ 2,472 |