Delaware | 001-16715 | 56-1528994 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
4300 Six Forks Road; Raleigh, North Carolina | 27609 |
(Address of principal executive offices) | (Zip Code) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | ||
[ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
[ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
[ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
[ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit No. | Exhibit Description | |
99.1 | Copy of November 8, 2011 |
Exhibit Index | ||
99.1 | Press release dated November 8, 2011 |
• | Third quarter and year-to-date net interest income equaled $217.2 million and $628.5 million respectively for 2011, down 5.5 percent for the quarter and up 15.2 percent for the year. Both the quarterly and year-to-date amounts for both years are impacted by accreted loan discounts from large unscheduled prepayments. |
• | Average loans and leases for the third quarter of 2011, including those acquired in FDIC-assisted transactions, increased $255.9 million, or 1.8 percent, from the third quarter of 2010. |
• | Average interest-bearing liabilities, including those assumed in FDIC-assisted transactions, decreased $441.8 million, or 2.9 percent, from the third quarter of 2010 to the third quarter of |
• | Third quarter 2011 earnings were influenced by several significant items arising from the FDIC-assisted transactions, including an $87.8 million acquisition gain, $30.3 million in provision for loan and lease losses, $69.8 million in interest income from accretion of fair value discounts and $18.9 million of charges to noninterest income arising from adjustments to the FDIC receivable. |
• | Third quarter 2010 earnings also included various items arising from FDIC-assisted transactions: $42.6 million in provision for loan and lease losses, $88.1 million in interest income from accretion of fair value discounts and $29.5 million of charges to noninterest income arising from adjustments to the FDIC receivable. |
• | Year-to-date 2011 earnings included various items arising from the FDIC-assisted transactions: $151.3 million in acquisition gains, $104.1 million in provision for loan and lease losses, $192.6 million in interest income from accretion of fair value discounts including discounts related to unscheduled repayments and $43.0 million of charges to noninterest income arising from adjustments to the FDIC receivable. |
• | Year-to-date 2010 earnings also included various items arising from FDIC-assisted transactions: $136.0 million in acquisition gains, $62.5 million in provision for loan and lease losses, $100.3 million in interest income from accretion of fair value discounts and $14.0 million of charges to noninterest income arising from adjustments to the FDIC receivable. |
• | Annualized net charge-offs on noncovered loans equaled $15.8 million, or 0.54 percent of average noncovered loans during the third quarter of 2011, up 9.5 percent over the third quarter 2010. Year-to-date 2011 net charge-offs on noncovered loans totaled $36.3 million, or 0.42 percent of average noncovered loans, down 10.5 percent from 2010. |
CONDENSED STATEMENTS OF INCOME | |||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||
(thousands, except share data; unaudited) | 2011 | 2010 | 2011 | 2010 | |||||||||||||
Interest income | $ | 252,179 | $ | 278,628 | $ | 742,983 | $ | 696,763 | |||||||||
Interest expense | 34,992 | 48,688 | 114,434 | 150,925 | |||||||||||||
Net interest income | 217,187 | 229,940 | 628,549 | 545,838 | |||||||||||||
Provision for loan and lease losses | 44,628 | 59,873 | 143,024 | 108,629 | |||||||||||||
Net interest income after provision for loan and lease losses | 172,559 | 170,067 | 485,525 | 437,209 | |||||||||||||
Gain on acquisitions | 87,788 | — | 151,262 | 136,000 | |||||||||||||
Other noninterest income | 75,956 | 49,969 | 208,711 | 218,540 | |||||||||||||
Noninterest expense | 203,832 | 176,851 | 581,342 | 531,577 | |||||||||||||
Income before income taxes | 132,471 | 43,185 | 264,156 | 260,172 | |||||||||||||
Income taxes | 50,536 | 15,439 | 99,161 | 97,213 | |||||||||||||
Net income | $ | 81,935 | $ | 27,746 | $ | 164,995 | $ | 162,959 | |||||||||
Taxable-equivalent net interest income | $ | 218,178 | $ | 231,009 | $ | 631,418 | $ | 549,019 | |||||||||
Net income per share | $ | 7.91 | $ | 2.66 | $ | 15.85 | $ | 15.62 | |||||||||
Cash dividends per share | 0.30 | 0.30 | 0.90 | 0.90 | |||||||||||||
Profitability Information (annualized) | |||||||||||||||||
Return on average assets | 1.55 | % | 0.52 | % | 1.04 | % | 1.05 | % | |||||||||
Return on average equity | 17.95 | 6.46 | 12.34 | 13.17 | |||||||||||||
Taxable-equivalent net yield on interest-earning assets | 4.60 | 4.93 | 4.47 | 4.02 | |||||||||||||
CONDENSED BALANCE SHEETS | |||||||||||||||||
September 30 | December 31 | September 30 | |||||||||||||||
(thousands, except share data; unaudited) | 2011 | 2010 | 2010 | ||||||||||||||
Assets | |||||||||||||||||
Cash and due from banks | $ | 539,337 | $ | 460,178 | $ | 493,786 | |||||||||||
Investment securities | 3,996,768 | 4,512,608 | 3,789,486 | ||||||||||||||
Loans covered by FDIC loss share agreements | 2,557,450 | 2,007,452 | 2,222,660 | ||||||||||||||
Loans and leases not covered by FDIC loss share agreements | 11,603,526 | 11,480,577 | 11,545,309 | ||||||||||||||
Allowance for loan and lease losses | (254,184 | ) | (227,765 | ) | (218,046 | ) | |||||||||||
Receivable from FDIC for loss share agreements | 607,907 | 623,261 | 651,844 | ||||||||||||||
Other assets | 1,964,540 | 1,950,348 | 2,564,252 | ||||||||||||||
Total assets | $ | 21,015,344 | $ | 20,806,659 | $ | 21,049,291 | |||||||||||
Liabilities and shareholders' equity | |||||||||||||||||
Deposits | $ | 17,663,275 | $ | 17,635,266 | $ | 17,743,028 | |||||||||||
Other liabilities | 1,480,139 | 1,438,431 | 1,588,059 | ||||||||||||||
Shareholders' equity | 1,871,930 | 1,732,962 | 1,718,204 | ||||||||||||||
Total liabilities and shareholders' equity | $ | 21,015,344 | $ | 20,806,659 | $ | 21,049,291 | |||||||||||
Book value per share | $ | 181.70 | $ | 166.08 | $ | 164.67 |
SELECTED AVERAGE BALANCES | |||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||
(thousands, except shares outstanding; unaudited) | 2011 | 2010 | 2011 | 2010 | |||||||||||||
Total assets | $ | 21,157,741 | $ | 21,164,235 | $ | 21,194,113 | $ | 20,740,796 | |||||||||
Investment securities | 4,028,574 | 3,810,057 | 4,269,280 | 3,536,952 | |||||||||||||
Loans and leases | 14,173,224 | 13,917,278 | 14,036,103 | 13,941,556 | |||||||||||||
Interest-earning assets | 18,821,838 | 18,605,131 | 18,876,255 | 18,272,392 | |||||||||||||
Deposits | 17,772,429 | 17,823,807 | 17,837,690 | 17,431,667 | |||||||||||||
Interest-bearing liabilities | 14,991,875 | 15,433,653 | 15,182,701 | 15,212,048 | |||||||||||||
Shareholders' equity | $ | 1,830,503 | $ | 1,705,005 | $ | 1,794,474 | $ | 1,654,900 | |||||||||
Shares outstanding | 10,363,964 | 10,434,453 | 10,406,833 | 10,434,453 | |||||||||||||
CAPITAL INFORMATION | |||||||||||||||||
September 30 | December 31 | September 30 | |||||||||||||||
(dollars in thousands; unaudited) | 2011 | 2010 | 2010 | ||||||||||||||
Tier 1 capital | $ | 2,070,217 | $ | 1,935,559 | $ | 1,906,806 | |||||||||||
Total capital | 2,320,056 | 2,206,890 | 2,180,810 | ||||||||||||||
Risk-weighted assets | 13,388,224 | 13,021,521 | 13,258,598 | ||||||||||||||
Tier 1 capital ratio | 15.46 | % | 14.86 | % | 14.38 | % | |||||||||||
Total capital ratio | 17.33 | 16.95 | 16.45 | ||||||||||||||
Leverage capital ratio | 9.82 | 9.18 | 9.04 |
ASSET QUALITY DISCLOSURES | ||||||||||||||||||||||||||||
2011 | 2010 | Nine months ended September 30 | ||||||||||||||||||||||||||
Third | Second | First | Fourth | Third | ||||||||||||||||||||||||
(dollars in thousands; unaudited) | Quarter | Quarter | Quarter | Quarter | Quarter | 2011 | 2010 | |||||||||||||||||||||
Allowance for loan and lease losses at beginning of period | $ | 250,050 | $ | 232,597 | $ | 227,765 | $ | 218,046 | $ | 188,169 | $ | 227,765 | $ | 172,282 | ||||||||||||||
Adjustment resulting from adoption of change in accounting for QSPEs and controlling financial interests effective January 1, 2010 | — | — | — | — | — | — | 681 | |||||||||||||||||||||
Provision for loan and lease losses: | ||||||||||||||||||||||||||||
Covered by loss share agreements | 30,317 | 41,196 | 32,557 | 24,411 | 42,597 | 104,070 | 62,461 | |||||||||||||||||||||
Not covered by loss share agreements | 14,311 | 12,781 | 11,862 | 10,480 | 17,276 | 38,954 | 46,168 | |||||||||||||||||||||
Net charge-offs of loans and leases: | ||||||||||||||||||||||||||||
Charge-offs | (42,314 | ) | (38,222 | ) | (41,606 | ) | (27,134 | ) | (31,172 | ) | (122,142 | ) | (67,774 | ) | ||||||||||||||
Recoveries | 1,820 | 1,698 | 2,019 | 1,962 | 1,176 | 5,537 | 4,228 | |||||||||||||||||||||
Net charge-offs of loans and leases | (40,494 | ) | (36,524 | ) | (39,587 | ) | (25,172 | ) | (29,996 | ) | (116,605 | ) | (63,546 | ) | ||||||||||||||
Allowance for loan and lease losses at end of period | $ | 254,184 | $ | 250,050 | $ | 232,597 | $ | 227,765 | $ | 218,046 | $ | 254,184 | $ | 218,046 | ||||||||||||||
Allowance for loan and lease losses at end of period allocated to loans and leases: | ||||||||||||||||||||||||||||
Covered by loss share agreements | $ | 75,050 | $ | 69,435 | $ | 54,629 | $ | 51,248 | $ | 43,028 | $ | 75,050 | $ | 43,028 | ||||||||||||||
Not covered by loss share agreements | 179,134 | 180,615 | 177,968 | 176,517 | 175,018 | 179,134 | 175,018 | |||||||||||||||||||||
Allowance for loan and lease losses at end of period | $ | 254,184 | $ | 250,050 | $ | 232,597 | $ | 227,765 | $ | 218,046 | $ | 254,184 | $ | 218,046 | ||||||||||||||
Detail of net charge-offs of loans and leases: | ||||||||||||||||||||||||||||
Covered by loss share agreements | $ | 24,702 | $ | 26,390 | $ | 29,176 | $ | 16,192 | $ | 15,575 | $ | 80,268 | $ | 22,933 | ||||||||||||||
Not covered by loss share agreements | 15,792 | 10,134 | 10,411 | 8,980 | 14,421 | 36,337 | 40,613 | |||||||||||||||||||||
Total net charge-offs | $ | 40,494 | $ | 36,524 | $ | 39,587 | $ | 25,172 | $ | 29,996 | $ | 116,605 | $ | 63,546 | ||||||||||||||
Reserve for unfunded commitments | $ | 7,962 | $ | 7,854 | $ | 7,512 | $ | 7,246 | $ | 7,623 | $ | 7,962 | $ | 7,623 | ||||||||||||||
Average loans and leases: | ||||||||||||||||||||||||||||
Covered by loss share agreements | 2,500,807 | 2,490,964 | 2,464,277 | 2,096,312 | 2,257,888 | 2,458,184 | 2,278,198 | |||||||||||||||||||||
Not covered by loss share agreements | 11,672,417 | 11,537,145 | 11,439,777 | 11,544,750 | 11,659,390 | 11,508,223 | 11,675,699 | |||||||||||||||||||||
Loans and leases at period-end: | ||||||||||||||||||||||||||||
Covered by loss share agreements | 2,557,450 | 2,399,738 | 2,628,409 | 2,007,452 | 2,222,660 | 2,557,450 | 2,222,660 | |||||||||||||||||||||
Not covered by loss share agreements | 11,603,526 | 11,528,854 | 11,425,312 | 11,480,577 | 11,545,309 | 11,603,526 | 11,545,309 | |||||||||||||||||||||
Risk Elements | ||||||||||||||||||||||||||||
Nonaccrual loans and leases: | ||||||||||||||||||||||||||||
Covered by loss share agreements | $ | 291,890 | $ | 267,333 | $ | 223,617 | $ | 194,315 | $ | 264,653 | $ | 291,890 | $ | 264,653 | ||||||||||||||
Not covered by loss share agreements | 59,603 | 73,441 | 79,856 | 78,814 | 84,753 | 59,603 | 84,753 | |||||||||||||||||||||
Other real estate: | ||||||||||||||||||||||||||||
Covered by loss share agreements | 160,443 | 150,636 | 137,479 | 112,748 | 99,843 | 160,443 | 99,843 | |||||||||||||||||||||
Not covered by loss share agreements | 48,616 | 49,028 | 49,584 | 52,842 | 47,524 | 48,616 | 47,524 | |||||||||||||||||||||
Troubled debt restructurings: | ||||||||||||||||||||||||||||
Covered by loss share agreements | 92,987 | 61,880 | 44,603 | 56,398 | 65,417 | 92,987 | 65,417 | |||||||||||||||||||||
Not covered by loss share agreements | 86,406 | 86,929 | 77,376 | 64,995 | 53,374 | 86,406 | 53,374 |
Total nonperforming assets | $ | 739,945 | $ | 689,247 | $ | 612,515 | $ | 560,112 | $ | 615,564 | $ | 739,945 | $ | 615,564 | ||||||||||||||
Nonperforming assets covered by loss share agreements | $ | 545,320 | $ | 479,849 | $ | 405,699 | $ | 363,461 | $ | 429,913 | $ | 545,320 | $ | 429,913 | ||||||||||||||
Nonperforming assets not covered by loss share agreements | 194,625 | 209,398 | 206,816 | 196,651 | 185,651 | 194,625 | 185,651 | |||||||||||||||||||||
Total nonperforming assets | $ | 739,945 | $ | 689,247 | $ | 612,515 | $ | 560,112 | $ | 615,564 | $ | 739,945 | $ | 615,564 | ||||||||||||||
Ratios | ||||||||||||||||||||||||||||
Net charge-offs (annualized) to average loans and leases: | ||||||||||||||||||||||||||||
Covered by loss share agreements | 3.92 | % | 4.25 | % | 4.80 | % | 3.13 | % | 2.80 | % | 4.37 | % | 1.35 | % | ||||||||||||||
Not covered by loss share agreements | 0.54 | 0.35 | 0.37 | 0.31 | 0.49 | 0.42 | 0.47 | |||||||||||||||||||||
Allowance for loan and lease losses to total loans and leases: | ||||||||||||||||||||||||||||
Covered by loss share agreements | 2.93 | 2.89 | 2.08 | 2.55 | 1.94 | 2.93 | 1.94 | |||||||||||||||||||||
Not covered by loss share agreements | 1.54 | 1.57 | 1.56 | 1.54 | 1.52 | 1.54 | 1.52 | |||||||||||||||||||||
Nonperforming assets to total loans and leases plus other real estate: | ||||||||||||||||||||||||||||
Covered by loss share agreements | 20.06 | 18.81 | 14.67 | 17.14 | 18.51 | 20.06 | 18.51 | |||||||||||||||||||||
Not covered by loss share agreements | 1.67 | 1.81 | 1.80 | 1.71 | 1.60 | 1.67 | 1.60 | |||||||||||||||||||||
Total | 5.15 | 4.88 | 4.30 | 4.10 | 4.42 | 5.15 | 4.42 |