[X]
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OFTHE SECURITIES EXCHANGE ACT OF 1934
|
[ ]
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OFTHE SECURITIES EXCHANGE ACT OF 1934
|
CATHAY GENERAL BANCORP | ||
(Exact name of registrant as specified in its charter) | ||
Delaware | 95-4274680 | |
(State of other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
777 North Broadway, Los Angeles, California | 90012 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer þ |
Accelerated filer o
|
||
Non-accelerated filer o (Do not check if a smaller reporting company) |
Smaller reporting company o
|
PART I – FINANCIAL INFORMATION | 5 | |||
Item 1.
|
FINANCIAL STATEMENTS (Unaudited) | 5 | ||
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) | 8 | |||
Item 2.
|
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. | 34 | ||
Item 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK | 61 | ||
Item 4.
|
CONTROLS AND PROCEDURES. | 62 | ||
PART II - OTHER INFORMATION | 62 | |||
Item 1.
|
LEGAL PROCEEDINGS. | 62 | ||
Item 1A
|
RISK FACTORS. | 62 | ||
Item 2.
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS. | 62 | ||
Item 3.
|
DEFAULTS UPON SENIOR SECURITIES. | 63 | ||
Item 4.
|
MINE SAFETY DISCLOSURES. | 63 | ||
Item 5.
|
OTHER INFORMATION. | 63 | ||
Item 6.
|
EXHIBITS. | 63 | ||
SIGNATURES
|
65 |
|
·
|
U.S. and international business and economic conditions;
|
|
·
|
credit risks of lending activities and deterioration in asset or credit quality;
|
|
·
|
current and potential future supervisory action by bank supervisory authorities;
|
|
·
|
increased costs of compliance and other risks associated with changes in regulation and the current regulatory environment, including the requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), and the potential for substantial changes in the legal, regulatory, and enforcement framework and oversight applicable to financial institutions in reaction to recent adverse financial market events, including changes pursuant to the Dodd-Frank Act;
|
|
·
|
potential goodwill impairment;
|
|
·
|
liquidity risk;
|
|
·
|
fluctuations in interest rates;
|
|
·
|
inflation and deflation;
|
|
·
|
risks associated with acquisitions and the expansion of our business into new markets;
|
|
·
|
real estate market conditions and the value of real estate collateral;
|
|
·
|
environmental liabilities;
|
|
·
|
our ability to compete with larger competitors;
|
|
·
|
the possibility of higher capital requirements, including implementation of the Basel III capital standards of the Basel Committee;
|
|
·
|
our ability to retain key personnel;
|
|
·
|
successful management of reputational risk;
|
|
·
|
natural disasters and geopolitical events;
|
|
·
|
general economic or business conditions in California, Asia, and other regions where the Bank has operations;
|
|
·
|
restrictions on compensation paid to our executives as a result of our participation in the TARP Capital Purchase Program;
|
|
·
|
failures, interruptions, or security breaches of our information systems;
|
|
·
|
our ability to adapt our systems to technological changes, including successfully implementing our core system conversion;
|
|
·
|
adverse results in legal proceedings;
|
|
·
|
changes in accounting standards or tax laws and regulations;
|
|
·
|
market disruption and volatility;
|
|
·
|
restrictions on dividends and other distributions by laws and regulations and by our regulators and our capital structure;
|
|
·
|
successfully raising additional capital, if needed, and the resulting dilution of interests of holders of our common stock; and
|
|
·
|
the soundness of other financial institutions.
|
March 31, 2013
|
December 31, 2012
|
|||||||
(In thousands, except share and per share data)
|
||||||||
Assets
|
||||||||
Cash and due from banks
|
$ | 155,525 | $ | 144,909 | ||||
Short-term investments and interest bearing deposits
|
215,794 | 411,983 | ||||||
Securities held-to-maturity (market value of $823,906 in 2012)
|
- | 773,768 | ||||||
Securities available-for-sale (amortized cost of $2,149,786 in 2013 and $1,290,676 in 2012)
|
2,190,296 | 1,291,480 | ||||||
Trading securities
|
4,758 | 4,703 | ||||||
Loans
|
7,364,340 | 7,429,147 | ||||||
Less: Allowance for loan losses
|
(178,692 | ) | (183,322 | ) | ||||
Unamortized deferred loan fees, net
|
(10,186 | ) | (10,238 | ) | ||||
Loans, net
|
7,175,462 | 7,235,587 | ||||||
Federal Home Loan Bank stock
|
37,130 | 41,272 | ||||||
Other real estate owned, net
|
45,316 | 46,384 | ||||||
Affordable housing investments, net
|
83,868 | 85,037 | ||||||
Premises and equipment, net
|
102,067 | 102,613 | ||||||
Customers’ liability on acceptances
|
22,334 | 41,271 | ||||||
Accrued interest receivable
|
26,992 | 26,015 | ||||||
Goodwill
|
316,340 | 316,340 | ||||||
Other intangible assets, net
|
4,883 | 6,132 | ||||||
Other assets
|
139,950 | 166,595 | ||||||
Total assets
|
$ | 10,520,715 | $ | 10,694,089 | ||||
Liabilities and Stockholders’ Equity
|
||||||||
Deposits
|
||||||||
Non-interest-bearing demand deposits
|
$ | 1,279,986 | $ | 1,269,455 | ||||
Interest-bearing deposits:
|
||||||||
NOW deposits
|
622,454 | 593,133 | ||||||
Money market deposits
|
1,124,240 | 1,186,771 | ||||||
Savings deposits
|
472,122 | 473,805 | ||||||
Time deposits under $100,000
|
685,758 | 644,191 | ||||||
Time deposits of $100,000 or more
|
3,241,114 | 3,215,870 | ||||||
Total deposits
|
7,425,674 | 7,383,225 | ||||||
Securities sold under agreements to repurchase
|
1,150,000 | 1,250,000 | ||||||
Advances from the Federal Home Loan Bank
|
126,200 | 146,200 | ||||||
Other borrowings for affordable housing investments
|
19,232 | 18,713 | ||||||
Long-term debt
|
171,136 | 171,136 | ||||||
Acceptances outstanding
|
22,334 | 41,271 | ||||||
Other liabilities
|
56,574 | 54,040 | ||||||
Total liabilities
|
8,971,150 | 9,064,585 | ||||||
Commitments and contingencies
|
- | - | ||||||
Stockholders’ equity
|
||||||||
Preferred stock, 10,000,000 shares authorized, 129,000 issued and outstanding at March 31, 2013, and 258,000 issued and outstanding at December 31, 2012
|
127,724 | 254,580 | ||||||
Common stock, $0.01 par value, 100,000,000 shares authorized, 83,066,773 issued and 78,859,208 outstanding at March 31, 2013, and 82,985,853 issued and 78,778,288 outstanding at December 31, 2012
|
831 | 830 | ||||||
Additional paid-in-capital
|
769,955 | 768,925 | ||||||
Accumulated other comprehensive income, net
|
23,477 | 465 | ||||||
Retained earnings
|
744,867 | 721,993 | ||||||
Treasury stock, at cost (4,207,565 shares at March 31, 2013, and at December 31, 2012)
|
(125,736 | ) | (125,736 | ) | ||||
Total Cathay General Bancorp stockholders' equity
|
1,541,118 | 1,621,057 | ||||||
Noncontrolling interest
|
8,447 | 8,447 | ||||||
Total equity
|
1,549,565 | 1,629,504 | ||||||
Total liabilities and equity
|
$ | 10,520,715 | $ | 10,694,089 |
Three months ended March 31,
|
||||||||
|
2013
|
2012
|
||||||
(In thousands, except share and per share data)
|
||||||||
Interest and Dividend Income
|
||||||||
Loans receivable, including loan fees
|
$ | 88,840 | $ | 90,701 | ||||
Investment securities- taxable
|
11,786 | 17,723 | ||||||
Investment securities- nontaxable
|
967 | 1,052 | ||||||
Federal Home Loan Bank stock
|
250 | 66 | ||||||
Federal funds sold and securities purchased under agreements to resell
|
- | 5 | ||||||
Deposits with banks
|
208 | 588 | ||||||
Total interest and dividend income
|
102,051 | 110,135 | ||||||
Interest Expense
|
||||||||
Time deposits of $100,000 or more
|
6,757 | 9,540 | ||||||
Other deposits
|
2,766 | 3,916 | ||||||
Securities sold under agreements to repurchase
|
11,392 | 14,655 | ||||||
Advances from Federal Home Loan Bank
|
80 | 53 | ||||||
Long-term debt
|
924 | 1,320 | ||||||
Short-term borrowings
|
- | - | ||||||
Total interest expense
|
21,919 | 29,484 | ||||||
Net interest income before provision for credit losses
|
80,132 | 80,651 | ||||||
Provision/(credit) for loan losses
|
- | (4,000 | ) | |||||
Net interest income after provision for loan losses
|
80,132 | 84,651 | ||||||
Non-Interest Income
|
||||||||
Securities gains, net
|
6,292 | 2,215 | ||||||
Letters of credit commissions
|
1,461 | 1,526 | ||||||
Depository service fees
|
1,474 | 1,389 | ||||||
Other operating income
|
5,654 | 3,701 | ||||||
Total non-interest income
|
14,881 | 8,831 | ||||||
Non-interest Expense
|
||||||||
Salaries and employee benefits
|
22,853 | 19,878 | ||||||
Occupancy expense
|
3,644 | 3,584 | ||||||
Computer and equipment expense
|
2,676 | 2,463 | ||||||
Professional services expense
|
5,817 | 4,742 | ||||||
FDIC and State assessments
|
1,738 | 2,489 | ||||||
Marketing expense
|
437 | 1,406 | ||||||
Other real estate owned expense
|
623 | 4,693 | ||||||
Operations of affordable housing investments, net
|
1,695 | 1,960 | ||||||
Amortization of core deposit intangibles
|
1,396 | 1,457 | ||||||
Costs associated with debt redemption
|
5,645 | 2,750 | ||||||
Other operating expense
|
2,604 | 2,449 | ||||||
Total non-interest expense
|
49,128 | 47,871 | ||||||
Income before income tax expense
|
45,885 | 45,611 | ||||||
Income tax expense
|
16,887 | 16,547 | ||||||
Net income
|
28,998 | 29,064 | ||||||
Less: net income attributable to noncontrolling interest
|
151 | 151 | ||||||
Net income attributable to Cathay General Bancorp
|
28,847 | 28,913 | ||||||
Dividends on preferred stock and noncash charge from repayment
|
(5,184 | ) | (4,117 | ) | ||||
Net income attributable to common stockholders
|
23,663 | 24,796 | ||||||
Other comprehensive income, net of tax
|
||||||||
Unrealized holding gain arising during the period
|
26,659 | 5,479 | ||||||
Less: reclassification adjustments included in net income
|
3,647 | 1,284 | ||||||
Total other comprehensive gain, net of tax
|
23,012 | 4,195 | ||||||
Total comprehensive income
|
$ | 51,859 | $ | 33,108 | ||||
Net income per common share:
|
||||||||
Basic
|
$ | 0.30 | $ | 0.32 | ||||
Diluted
|
$ | 0.30 | $ | 0.32 | ||||
Cash dividends paid per common share
|
$ | 0.01 | $ | 0.01 | ||||
Average common shares outstanding
|
||||||||
Basic
|
78,795,564 | 78,678,645 | ||||||
Diluted
|
78,815,141 | 78,690,132 |
Three months ended March 31
|
||||||||
2013
|
2012
|
|||||||
(In thousands)
|
||||||||
Cash Flows from Operating Activities
|
||||||||
Net income
|
$ | 28,998 | $ | 29,064 | ||||
Adjustments to reconcile net income to net cash provided by/(used in) operating activities:
|
||||||||
Credit for loan losses
|
- | (4,000 | ) | |||||
Provision/(credit) for losses on other real estate owned
|
(37 | ) | 2,740 | |||||
Deferred tax liability
|
6,227 | 2,356 | ||||||
Depreciation
|
1,527 | 1,471 | ||||||
Net losses on sale and transfer of other real estate owned
|
44 | 712 | ||||||
Net gains on sale of loans
|
(567 | ) | (278 | ) | ||||
Proceeds from sales of loans
|
23,672 | 25,140 | ||||||
Originations of loans held-for-sale
|
(23,105 | ) | (24,836 | ) | ||||
Net change in trading securities
|
(55 | ) | (99,930 | ) | ||||
Write-downs on venture capital investments
|
92 | 137 | ||||||
Gain on sales and calls of securities
|
(6,292 | ) | (2,215 | ) | ||||
Amortization/accretion of security premiums/discounts, net
|
1,114 | 1,314 | ||||||
Amortization of other intangible assets
|
1,428 | 1,491 | ||||||
Excess tax short-fall from share-based payment arrangements
|
69 | 565 | ||||||
Stock based compensation and stock issued to officers as compensation
|
1,037 | 546 | ||||||
Net change in accrued interest receivable and other assets
|
4,081 | 38,156 | ||||||
Net change in other liabilities
|
1,612 | 1,527 | ||||||
Net cash provided by/(used in) operating activities
|
39,845 | (26,040 | ) | |||||
Cash Flows from Investing Activities
|
||||||||
Decrease in short-term investments
|
196,189 | 19,900 | ||||||
Increase in securities purchased under agreements to resell
|
- | (50,000 | ) | |||||
Purchase of investment securities available-for-sale
|
(508,865 | ) | (424,637 | ) | ||||
Proceeds from sale of investment securities available-for-sale
|
320,234 | 148,134 | ||||||
Proceeds from repayments, maturities and calls of investment securities available-for-sale
|
57,495 | 226,173 | ||||||
Proceeds from repayments, maturities and calls of investment securities held-to-maturity
|
50,973 | 67,979 | ||||||
Redemptions of Federal Home Loan Bank stock
|
4,142 | 2,533 | ||||||
Net decrease in loans
|
61,833 | 131,822 | ||||||
Purchase of premises and equipment
|
(1,014 | ) | (905 | ) | ||||
Proceeds from sale of other real estate owned
|
1,351 | 10,186 | ||||||
Net increase in investment in affordable housing
|
(1,614 | ) | (4,902 | ) | ||||
Net cash provided by investing activities
|
180,724 | 126,283 | ||||||
Cash Flows from Financing Activities
|
||||||||
Net increase in deposits
|
42,362 | 130,717 | ||||||
Net decrease in federal funds purchased and securities sold under agreements to repurchase
|
(100,000 | ) | - | |||||
Advances from Federal Home Loan Bank
|
298,020 | 260,000 | ||||||
Repayment of Federal Home Loan Bank borrowings
|
(317,500 | ) | (485,000 | ) | ||||
Cash dividends paid
|
(3,828 | ) | (4,012 | ) | ||||
Redemption of series B preferred stock
|
(129,000 | ) | - | |||||
Repayment of other borrowings
|
- | (879 | ) | |||||
Proceeds from shares issued under Dividend Reinvestment Plan
|
62 | 67 | ||||||
Proceeds from exercise of stock options
|
- | 647 | ||||||
Excess tax short-fall from share-based payment arrangements
|
(69 | ) | (565 | ) | ||||
Net cash used in financing activities
|
(209,953 | ) | (99,025 | ) | ||||
Increase in cash and cash equivalents
|
10,616 | 1,218 | ||||||
Cash and cash equivalents, beginning of the period
|
144,909 | 117,888 | ||||||
Cash and cash equivalents, end of the period
|
$ | 155,525 | $ | 119,106 | ||||
Supplemental disclosure of cash flow information
|
||||||||
Cash paid during the period:
|
||||||||
Interest
|
$ | 22,827 | $ | 30,699 | ||||
Income taxes paid/(refund)
|
$ | 8,562 | $ | (20,424 | ) | |||
Non-cash investing and financing activities:
|
||||||||
Net change in unrealized holding gain on securities available-for-sale, net of tax
|
$ | 23,012 | $ | 4,195 | ||||
Transfers investment securities to available-for-sale from held-to-maturity
|
$ | 722,466 | $ | - | ||||
Transfers to other real estate owned from loans held for investment
|
$ | 366 | $ | 8,338 | ||||
Loans transferred from held for investment to held for sale, net
|
$ | - | $ | 15,986 | ||||
Loans to facilitate the sale of other real estate owned
|
$ | 75 | $ | - |
Three months ended March 31,
|
||||||||
(Dollars in thousands, except share and per share data)
|
2013
|
2012
|
||||||
Net income attributable to Cathay General Bancorp
|
$ | 28,847 | $ | 28,913 | ||||
Dividends on preferred stock and noncash charge from repayment
|
(5,184 | ) | (4,117 | ) | ||||
Net income available to common stockholders
|
$ | 23,663 | $ | 24,796 | ||||
Weighted-average shares:
|
||||||||
Basic weighted-average number of common shares outstanding
|
78,795,564 | 78,678,645 | ||||||
Dilutive effect of weighted-average outstanding common share equivalents
|
||||||||
Stock options
|
19,577 | 11,487 | ||||||
Diluted weighted-average number of common shares outstanding
|
78,815,141 | 78,690,132 | ||||||
Average stock options and warrants with anti-dilutive effect
|
5,630,813 | 6,227,224 | ||||||
Earnings per common share:
|
||||||||
Basic
|
$ | 0.30 | $ | 0.32 | ||||
Diluted
|
$ | 0.30 | $ | 0.32 |
Shares
|
Weighted-average
exercise price |
Weighted-average
remaining contractual |
Aggregate
intrinsic |
|||||||||||||
Balance, December 31, 2012
|
3,996,630 | $ | 29.45 | 2.2 | $ | - | ||||||||||
Exercised
|
- | - | ||||||||||||||
Forfeited
|
(339,340 | ) | 20.45 | |||||||||||||
Balance, March 31, 2013
|
3,657,290 | $ | 30.28 | 2.2 | $ | - | ||||||||||
Exercisable, March 31, 2013
|
3,657,290 | $ | 30.28 | 2.2 | $ | - |
Units
|
||||
Balance at December 31, 2012
|
256,616 | |||
Granted
|
14,416 | |||
Forfeited
|
- | |||
Vested
|
(62,657 | ) | ||
Balance at March 31, 2013
|
208,375 |
Three months ended March 31,
|
||||||||
(Dollars in thousands)
|
2013
|
2012
|
||||||
Short-fall of tax deductions in excess of grant-date fair value
|
$ | (69 | ) | $ | (565 | ) | ||
Benefit of tax deductions on grant-date fair value
|
596 | 663 | ||||||
Total benefit of tax deductions
|
$ | 527 | $ | 98 |
March 31, 2013
|
||||||||||||||||
Amortized
Cost |
Gross
Unrealized |
Gross
Unrealized |
Fair Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Securities Available-for-Sale
|
||||||||||||||||
U.S. treasury securities
|
$ | 359,880 | $ | 234 | $ | - | $ | 360,114 | ||||||||
State and municipal securities
|
59,805 | 3,653 | - | 63,458 | ||||||||||||
Mortgage-backed securities
|
1,449,816 | 42,335 | 1,553 | 1,490,598 | ||||||||||||
Collateralized mortgage obligations
|
8,631 | 369 | 54 | 8,946 | ||||||||||||
Asset-backed securities
|
136 | - | 4 | 132 | ||||||||||||
Corporate debt securities
|
264,949 | 657 | 9,149 | 256,457 | ||||||||||||
Mutual funds
|
6,000 | 48 | 13 | 6,035 | ||||||||||||
Preferred stock of government sponsored entities
|
569 | 3,987 | - | 4,556 | ||||||||||||
Total securities available-for-sale
|
$ | 2,149,786 | $ | 51,283 | $ | 10,773 | $ | 2,190,296 | ||||||||
Total investment securities
|
$ | 2,149,786 | $ | 51,283 | $ | 10,773 | $ | 2,190,296 |
December 31, 2012
|
||||||||||||||||
|
Amortized
Cost |
Gross
Unrealized |
Gross
Unrealized |
Fair Value
|
||||||||||||
(In thousands)
|
||||||||||||||||
Securities Held-to-Maturity
|
||||||||||||||||
State and municipal securities
|
$ | 129,037 | $ | 9,268 | $ | - | $ | 138,305 | ||||||||
Mortgage-backed securities
|
634,757 | 40,801 | - | 675,558 | ||||||||||||
Corporate debt securities
|
9,974 | 69 | - | 10,043 | ||||||||||||
Total securities held-to-maturity
|
$ | 773,768 | $ | 50,138 | $ | - | $ | 823,906 | ||||||||
Securities Available-for-Sale
|
||||||||||||||||
U.S. treasury securities
|
$ | 509,748 | $ | 228 | $ | 5 | $ | 509,971 | ||||||||
Mortgage-backed securities
|
404,505 | 12,194 | 5 | 416,694 | ||||||||||||
Collateralized mortgage obligations
|
9,772 | 430 | 34 | 10,168 | ||||||||||||
Asset-backed securities
|
145 | - | 4 | 141 | ||||||||||||
Corporate debt securities
|
349,973 | 106 | 14,102 | 335,977 | ||||||||||||
Mutual funds
|
6,000 | 79 | - | 6,079 | ||||||||||||
Preferred stock of government sponsored entities
|
569 | 1,766 | - | 2,335 | ||||||||||||
Trust preferred securities
|
9,964 | 151 | - | 10,115 | ||||||||||||
Total securities available-for-sale
|
$ | 1,290,676 | $ | 14,954 | $ | 14,150 | $ | 1,291,480 | ||||||||
Total investment securities
|
$ | 2,064,444 | $ | 65,092 | $ | 14,150 | $ | 2,115,386 |
Securities available-for-sale
|
||||||||
Amortized cost
|
Fair value
|
|||||||
(In thousands)
|
||||||||
Due in one year or less
|
$ | 299,974 | $ | 300,139 | ||||
Due after one year through five years
|
186,517 | 184,546 | ||||||
Due after five years through ten years
|
222,033 | 221,132 | ||||||
Due after ten years (1)
|
1,441,262 | 1,484,479 | ||||||
Total
|
$ | 2,149,786 | $ | 2,190,296 |
March 31, 2013
|
||||||||||||||||||||||||
Temporarily impaired securities
|
||||||||||||||||||||||||
Less than 12 months
|
12 months or longer
|
Total
|
||||||||||||||||||||||
Fair
Value |
Unrealized
Losses |
Fair
Value |
Unrealized
Losses |
Fair
Value |
Unrealized
Losses |
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Securities Available-for-Sale
|
||||||||||||||||||||||||
Mortgage-backed securities
|
$ | 321,604 | $ | 1,551 | $ | 163 | $ | 1 | $ | 321,767 | $ | 1,552 | ||||||||||||
Mortgage-backed securities-Non-agency
|
- | - | 96 | 1 | 96 | 1 | ||||||||||||||||||
Collateralized mortgage obligations
|
- | - | 417 | 54 | 417 | 54 | ||||||||||||||||||
Asset-backed securities
|
- | - | 132 | 4 | 132 | 4 | ||||||||||||||||||
Corporate debt securities
|
9,855 | 145 | 195,996 | 9,004 | 205,851 | 9,149 | ||||||||||||||||||
Mutual funds
|
1,987 | 13 | - | - | 1,987 | 13 | ||||||||||||||||||
Total securities available-for-sale
|
$ | 333,446 | $ | 1,709 | $ | 196,804 | $ | 9,064 | $ | 530,250 | $ | 10,773 | ||||||||||||
Total investment securities
|
$ | 333,446 | $ | 1,709 | $ | 196,804 | $ | 9,064 | $ | 530,250 | $ | 10,773 |
December 31, 2012
|
||||||||||||||||||||||||
Temporarily Impaired Securities
|
||||||||||||||||||||||||
Less than 12 months
|
12 months or longer
|
Total
|
||||||||||||||||||||||
Fair
Value |
Unrealized
Losses |
Fair
Value |
Unrealized
Losses |
Fair
Value |
Unrealized
Losses |
|||||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||||||
Securities Held-to-Maturity
|
||||||||||||||||||||||||
Total securities held-to-maturity
|
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||
Securities Available-for-Sale
|
||||||||||||||||||||||||
U.S. treasury securities
|
$ | 49,969 | $ | 5 | $ | - | $ | - | $ | 49,969 | $ | 5 | ||||||||||||
Mortgage-backed securities
|
231 | 1 | 170 | 1 | 401 | 2 | ||||||||||||||||||
Mortgage-backed securities-Non-agency
|
- | - | 96 | 2 | 96 | 2 | ||||||||||||||||||
Collateralized mortgage obligations
|
- | - | 439 | 35 | 439 | 35 | ||||||||||||||||||
Asset-backed securities
|
- | - | 141 | 4 | 141 | 4 | ||||||||||||||||||
Corporate debt securities
|
52,468 | 2,532 | 253,430 | 11,570 | 305,898 | 14,102 | ||||||||||||||||||
Total securities available-for-sale
|
$ | 102,668 | $ | 2,538 | $ | 254,276 | $ | 11,612 | $ | 356,944 | $ | 14,150 | ||||||||||||
Total investment securities
|
$ | 102,668 | $ | 2,538 | $ | 254,276 | $ | 11,612 | $ | 356,944 | $ | 14,150 |
March 31, 2013
|
December 31, 2012
|
|||||||
(In thousands)
|
||||||||
Type of Loans:
|
||||||||
Commercial loans
|
$ | 2,031,789 | $ | 2,127,107 | ||||
Residential mortgage loans
|
1,183,460 | 1,146,230 | ||||||
Commercial mortgage loans
|
3,759,580 | 3,768,452 | ||||||
Equity lines
|
191,462 | 193,852 | ||||||
Real estate construction loans
|
184,067 | 180,950 | ||||||
Installment and other loans
|
13,982 | 12,556 | ||||||
Gross loans
|
7,364,340 | 7,429,147 | ||||||
Less:
|
||||||||
Allowance for loan losses
|
(178,692 | ) | (183,322 | ) | ||||
Unamortized deferred loan fees
|
(10,186 | ) | (10,238 | ) | ||||
Total loans, net
|
$ | 7,175,462 | $ | 7,235,587 |
Impaired Loans
|
||||||||||||||||
Average Recorded Investment
|
Interest Income Recognized
|
|||||||||||||||
Three months ended
March 31, |
Three months ended
March 31, |
|||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||
(In thousands) | ||||||||||||||||
Commercial loans
|
$ | 22,126 | $ | 45,142 | $ | 183 | $ | 257 | ||||||||
Real estate construction loans
|
42,068 | 66,455 | 66 | 176 | ||||||||||||
Commercial mortgage loans
|
162,257 | 184,867 | 1,562 | 1,088 | ||||||||||||
Residential mortgage and equity lines
|
17,797 | 17,715 | 84 | 40 | ||||||||||||
Total
|
$ | 244,248 | $ | 314,179 | $ | 1,895 | $ | 1,561 |
Impaired Loans
|
||||||||||||||||||||||||
March 31, 2013
|
December 31, 2012
|
|||||||||||||||||||||||
Unpaid Principal Balance
|
Recorded
Investment
|
Allowance
|
Unpaid Principal Balance
|
Recorded
Investment
|
Allowance
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
With no allocated allowance
|
||||||||||||||||||||||||
Commercial loans
|
$ | 14,437 | $ | 12,294 | $ | - | $ | 29,359 | $ | 18,963 | $ | - | ||||||||||||
Real estate construction loans
|
9,304 | 7,277 | - | 9,304 | 7,277 | - | ||||||||||||||||||
Commercial mortgage loans
|
153,872 | 120,563 | - | 189,871 | 152,957 | - | ||||||||||||||||||
Residential mortgage and equity lines
|
3,643 | 3,633 | - | 4,303 | 4,229 | - | ||||||||||||||||||
Subtotal
|
$ | 181,256 | $ | 143,767 | $ | - | $ | 232,837 | $ | 183,426 | $ | - | ||||||||||||
With allocated allowance
|
||||||||||||||||||||||||
Commercial loans
|
$ | 11,854 | $ | 7,180 | $ | 1,717 | $ | 7,804 | $ | 4,959 | $ | 1,467 | ||||||||||||
Real estate construction loans
|
54,657 | 34,795 | 8,080 | 54,718 | 34,856 | 8,158 | ||||||||||||||||||
Commercial mortgage loans
|
31,407 | 30,187 | 6,242 | 14,163 | 12,928 | 1,336 | ||||||||||||||||||
Residential mortgage and equity lines
|
16,704 | 14,615 | 1,318 | 14,264 | 12,428 | 1,222 | ||||||||||||||||||
Subtotal
|
$ | 114,622 | $ | 86,777 | $ | 17,357 | $ | 90,949 | $ | 65,171 | $ | 12,183 | ||||||||||||
Total impaired loans
|
$ | 295,878 | $ | 230,544 | $ | 17,357 | $ | 323,786 | $ | 248,597 | $ | 12,183 |
March 31, 2013
|
||||||||||||||||||||||
|
30-59 Days
Past Due
|
60-89 Days
Past Due
|
Greater
than 90
Days Past
Due
|
Non-accrual
Loans
|
Total Past Due
|
Loans Not
Past Due
|
Total
|
|||||||||||||||
Type of Loans:
|
(In thousands)
|
|||||||||||||||||||||
Commercial loans
|
$ | 15,766 | $ | - | $ | 333 | $ | 13,192 | $ | 29,291 | $ | 2,002,498 | $ | 2,031,789 | ||||||||
Real estate construction loans
|
634 | - | - | 36,237 | 36,871 | 147,196 | 184,067 | |||||||||||||||
Commercial mortgage loans
|
56,343 | 4,133 | 467 | 39,221 | 100,164 | 3,659,416 | 3,759,580 | |||||||||||||||
Residential mortgage loans
|
11,189 | 1,134 | - | 11,679 | 24,002 | 1,350,920 | 1,374,922 | |||||||||||||||
Installment and other loans
|
- | - | - | - | - | 13,982 | 13,982 | |||||||||||||||
Total loans
|
$ | 83,932 | $ | 5,267 | $ | 800 | $ | 100,329 | $ | 190,328 | $ | 7,174,012 | $ | 7,364,340 |
December 31, 2012
|
||||||||||||||||||||||
30-59 Days
Past Due
|
60-89 Days
Past Due
|
Greater
than 90
Days Past
Due
|
Non-accrual
Loans
|
Total Past Due
|
Loans Not
Past Due
|
Total
|
||||||||||||||||
Type of Loans:
|
(In thousands)
|
|||||||||||||||||||||
Commercial loans
|
$ | 16,832 | $ | 1,610 | $ | 630 | $ | 19,958 | $ | 39,030 | $ | 2,088,077 | $ | 2,127,107 | ||||||||
Real estate construction loans
|
- | 1,471 | - | 36,299 | 37,770 | 143,180 | 180,950 | |||||||||||||||
Commercial mortgage loans
|
21,570 | 3,627 | - | 35,704 | 60,901 | 3,707,551 | 3,768,452 | |||||||||||||||
Residential mortgage loans
|
5,324 | 1,972 | - | 11,941 | 19,237 | 1,320,845 | 1,340,082 | |||||||||||||||
Installment and other loans
|
- | - | - | - | - | 12,556 | 12,556 | |||||||||||||||
Total loans
|
$ | 43,726 | $ | 8,680 | $ | 630 | $ | 103,902 | $ | 156,938 | $ | 7,272,209 | $ | 7,429,147 |
Three months ended March 31, 2013
|
March 31, 2013
|
|||||||||||||||||||
No. of Contracts
|
Pre-Modification Outstanding Recorded Investment
|
Post-Modification Outstanding Recorded Investment
|
Charge-offs
|
Specific Reserve
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Commercial loans
|
4 | 4,007 | 4,007 | $ | - | $ | 61 | |||||||||||||
Commercial mortgage loans
|
2 | 1,175 | 1,175 | - | 10 | |||||||||||||||
Residential mortgage and equity lines
|
6 | 1,696 | 1,696 | - | 265 | |||||||||||||||
Total
|
12 | $ | 6,878 | $ | 6,878 | $ | - | $ | 336 |
Three months ended March 31, 2012
|
March 31, 2012
|
|||||||||||||||||||
No. of Contracts
|
Pre-Modification Outstanding Recorded Investment
|
Post-Modification Outstanding Recorded Investment
|
Charge-offs
|
Specific Reserve
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||||||
Commercial loans
|
5 | $ | 1,988 | $ | 1,988 | $ | - | $ | 68 | |||||||||||
Commercial mortgage loans
|
9 | 26,693 | 23,375 | 3,318 | 268 | |||||||||||||||
Residential mortgage and equity lines
|
2 | 1,587 | 1,587 | - | - | |||||||||||||||
Total
|
16 | $ | 30,268 | $ | 26,950 | $ | 3,318 | $ | 336 |
March 31, 2013
|
||||||||||||||||
Accruing TDRs
|
Principal
Deferral
|
Rate
Reduction
|
Rate
Reduction and
Payment
Deferral
|
Total
|
||||||||||||
(In thousands) | ||||||||||||||||
Commercial loans
|
$ | 491 | $ | 2,994 | $ | 2,797 | $ | 6,282 | ||||||||
Real estate construction loans
|
- | - | 5,834 | 5,834 | ||||||||||||
Commercial mortgage loans
|
27,565 | 16,153 | 67,812 | 111,530 | ||||||||||||
Residential mortgage loans
|
1,455 | 1,604 | 3,510 | 6,569 | ||||||||||||
Total accruing TDRs
|
$ | 29,511 | $ | 20,751 | $ | 79,953 | $ | 130,215 |
March 31, 2013
|
||||||||||||||||||||||||
Non-accrual TDRs
|
Interest
Deferral
|
Principal
Deferral
|
Rate
Reduction
|
Rate Reduction
and Forgiveness
of Principal
|
Rate Reduction
and Payment
Deferral
|
Total
|
||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Commercial loans
|
$ | - | $ | 2,425 | $ | - | $ | 1,475 | $ | - | $ | 3,900 | ||||||||||||
Real estate construction loans
|
- | 16,577 | 9,449 | - | - | 26,026 | ||||||||||||||||||
Commercial mortgage loans
|
1,606 | 2,777 | 5,067 | - | 7,088 | 16,538 | ||||||||||||||||||
Residential mortgage loans
|
267 | 2,146 | 295 | - | 706 | 3,414 | ||||||||||||||||||
Total non-accrual TDRs
|
$ | 1,873 | $ | 23,925 | $ | 14,811 | $ | 1,475 | $ | 7,794 | $ | 49,878 |
December 31, 2012
|
||||||||||||||||||||
Accruing TDRs
|
Principal
Deferral
|
Rate
Reduction
|
Rate Reduction
and Forgiveness
of Principal
|
Rate Reduction
and Payment
Deferral
|
Total
|
|||||||||||||||
(In thousands) | ||||||||||||||||||||
Commercial loans
|
$ | 531 | $ | 3,020 | $ | - | $ | 413 | $ | 3,964 | ||||||||||
Real estate construction loans
|
- | - | - | 5,834 | 5,834 | |||||||||||||||
Commercial mortgage loans
|
27,003 | 16,656 | 739 | 85,783 | 130,181 | |||||||||||||||
Residential mortgage loans
|
1,461 | 1,024 | - | 2,231 | 4,716 | |||||||||||||||
Total accruing TDRs
|
$ | 28,995 | $ | 20,700 | $ | 739 | $ | 94,261 | $ | 144,695 |
December 31, 2012
|
||||||||||||||||||||||||
Non-accrual TDRs
|
Interest
Deferral
|
Principal
Deferral
|
Rate
Reduction
|
Rate Reduction
and Forgiveness
of Principal
|
Rate Reduction
and Payment
Deferral
|
Total
|
||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
Commercial loans
|
$ | - | $ | 912 | $ | - | $ | 1,518 | $ | - | $ | 2,430 | ||||||||||||
Real estate construction loans
|
- | 16,767 | 9,579 | - | - | 26,346 | ||||||||||||||||||
Commercial mortgage loans
|
1,685 | 2,817 | 5,746 | - | 5,076 | 15,324 | ||||||||||||||||||
Residential mortgage loans
|
275 | 2,010 | 586 | - | 760 | 3,631 | ||||||||||||||||||
Total non-accrual TDRs
|
$ | 1,960 | $ | 22,506 | $ | 15,911 | $ | 1,518 | $ | 5,836 | $ | 47,731 |
Three months ended March 31,
|
||||||||
Accruing TDRs
|
2013
|
2012
|
||||||
(In thousands)
|
||||||||
Beginning balance
|
$ | 144,695 | $ | 120,016 | ||||
New restructurings
|
4,816 | 21,712 | ||||||
Restructured loans restored to accrual status
|
630 | 2,853 | ||||||
Payments
|
(17,892 | ) | (1,348 | ) | ||||
Restructured loans placed on nonaccrual
|
(2,034 | ) | - | |||||
Ending balance
|
$ | 130,215 | $ | 143,233 |
Three months ended March 31,
|
||||||||
Non-accrual TDRs
|
2013
|
2012
|
||||||
(In thousands)
|
||||||||
Beginning balance
|
$ | 47,731 | $ | 50,870 | ||||
New restructurings
|
2,062 | 5,238 | ||||||
Restructured loans placed on nonaccrual
|
2,034 | - | ||||||
Charge-offs
|
(679 | ) | (4,018 | ) | ||||
Payments
|
(640 | ) | (27,694 | ) | ||||
Restructured loans restored to accrual status
|
(630 | ) | (2,853 | ) | ||||
Ending balance
|
$ | 49,878 | $ | 21,543 |
● | Pass/Watch – These loans range from minimal credit risk to lower than average, but still acceptable, credit risk. | ||
● | Special Mention – Borrower is fundamentally sound and loan is currently protected but adverse trends are apparent that, if not corrected, may affect ability to repay. Primary source of loan repayment remains viable but there is increasing reliance on collateral or guarantor support. | ||
● | Substandard – These loans are inadequately protected by current sound net worth, paying capacity or pledged collateral. Well-defined weaknesses exist that could jeopardize repayment of debt. Loss may not be imminent, but if weaknesses are not corrected, there is a good possibility of some loss. | ||
● | Doubtful – The possibility of loss is extremely high, but due to identifiable and important pending events (which may strengthen the loan) a loss classification is deferred until the situation is better defined. | ||
● | Loss – These loans are considered uncollectible and of such little value that to continue to carry the loan as an active asset is no longer warranted. |
March 31, 2013
|
||||||||||||||||||||
Pass/Watch
|
Special Mention
|
Substandard
|
Doubtful
|
Total
|
||||||||||||||||
(In thousands) | ||||||||||||||||||||
Commercial loans
|
$ | 1,870,832 | $ | 72,872 | $ | 82,957 | $ | 5,128 | $ | 2,031,789 | ||||||||||
Real estate construction loans
|
120,395 | 17,692 | 37,212 | 8,768 | 184,067 | |||||||||||||||
Commercial mortgage loans
|
3,360,744 | 148,987 | 249,608 | 241 | 3,759,580 | |||||||||||||||
Residential mortgage and equity lines
|
1,358,500 | 1,915 | 14,106 | 401 | 1,374,922 | |||||||||||||||
Installment and other loans
|
13,982 | - | - | - | 13,982 | |||||||||||||||
Total gross loans
|
$ | 6,724,453 | $ | 241,466 | $ | 383,883 | $ | 14,538 | $ | 7,364,340 |
December 31, 2012
|
||||||||||||||||||||
Pass/Watch
|
Special Mention
|
Substandard
|
Doubtful
|
Total
|
||||||||||||||||
(In thousands) | ||||||||||||||||||||
Commercial loans
|
$ | 1,944,989 | $ | 76,776 | $ | 94,077 | $ | 11,265 | $ | 2,127,107 | ||||||||||
Real estate construction loans
|
109,269 | 18,000 | 45,171 | 8,510 | 180,950 | |||||||||||||||
Commercial mortgage loans
|
3,344,783 | 162,455 | 261,214 | - | 3,768,452 | |||||||||||||||
Residential mortgage and equity lines
|
1,322,768 | 816 | 16,084 | 414 | 1,340,082 | |||||||||||||||
Installment and other loans
|
12,556 | - | - | - | 12,556 | |||||||||||||||
Total gross loans
|
$ | 6,734,365 | $ | 258,047 | $ | 416,546 | $ | 20,189 | $ | 7,429,147 |
Commercial
Loans |
Real Estate
Construction |
Commercial
Mortgage |
Residential
Mortgage Loans |
Installment and
Other Loans |
Total
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
March 31, 2013
|
||||||||||||||||||||||||
Loans individually evaluated for impairment
|
||||||||||||||||||||||||
Allowance
|
$ | 1,717 | $ | 8,080 | $ | 6,242 | $ | 1,318 | $ | - | $ | 17,357 | ||||||||||||
Balance
|
$ | 19,474 | $ | 42,071 | $ | 150,750 | $ | 18,249 | $ | - | $ | 230,544 | ||||||||||||
Loans collectively evaluated for impairment
|
||||||||||||||||||||||||
Allowance
|
$ | 59,339 | $ | 12,617 | $ | 78,574 | $ | 10,773 | $ | 32 | $ | 161,335 | ||||||||||||
Balance
|
$ | 2,012,315 | $ | 141,996 | $ | 3,608,830 | $ | 1,356,673 | $ | 13,982 | $ | 7,133,796 | ||||||||||||
Total allowance
|
$ | 61,056 | $ | 20,697 | $ | 84,816 | $ | 12,091 | $ | 32 | $ | 178,692 | ||||||||||||
Total balance
|
$ | 2,031,789 | $ | 184,067 | $ | 3,759,580 | $ | 1,374,922 | $ | 13,982 | $ | 7,364,340 | ||||||||||||
December 31, 2012
|
||||||||||||||||||||||||
Loans individually evaluated for impairment
|
||||||||||||||||||||||||
Allowance
|
$ | 1,467 | $ | 8,158 | $ | 1,336 | $ | 1,222 | $ | - | $ | 12,183 | ||||||||||||
Balance
|
$ | 23,922 | $ | 42,133 | $ | 165,885 | $ | 16,657 | $ | - | $ | 248,597 | ||||||||||||
Loans collectively evaluated for impairment
|
||||||||||||||||||||||||
Allowance
|
$ | 64,634 | $ | 14,859 | $ | 81,137 | $ | 10,481 | $ | 28 | $ | 171,139 | ||||||||||||
Balance
|
$ | 2,103,185 | $ | 138,817 | $ | 3,602,567 | $ | 1,323,425 | $ | 12,556 | $ | 7,180,550 | ||||||||||||
Total allowance
|
$ | 66,101 | $ | 23,017 | $ | 82,473 | $ | 11,703 | $ | 28 | $ | 183,322 | ||||||||||||
Total balance
|
$ | 2,127,107 | $ | 180,950 | $ | 3,768,452 | $ | 1,340,082 | $ | 12,556 | $ | 7,429,147 |
Commercial
Loans |
Real Estate
Construction |
Commercial
Mortgage |
Residential
Mortgage |
Installment
and Other |
Total
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
2013 Beginning Balance
|
$ | 66,101 | $ | 23,017 | $ | 82,473 | $ | 11,703 | $ | 28 | $ | 183,322 | ||||||||||||
Provision/(credit) for possible credit losses
|
(3,310 | ) | (2,399 | ) | 2,968 | 795 | 4 | (1,942 | ) | |||||||||||||||
Charge-offs
|
(2,690 | ) | - | (990 | ) | (410 | ) | - | (4,090 | ) | ||||||||||||||
Recoveries
|
955 | 79 | 365 | 3 | - | 1,402 | ||||||||||||||||||
Net (charge-offs)/recoveries
|
(1,735 | ) | 79 | (625 | ) | (407 | ) | - | (2,688 | ) | ||||||||||||||
March 31, 2013 Ending Balance
|
$ | 61,056 | $ | 20,697 | $ | 84,816 | $ | 12,091 | $ | 32 | $ | 178,692 | ||||||||||||
Reserve for impaired loans
|
$ | 1,717 | $ | 8,080 | $ | 6,242 | $ | 1,318 | $ | - | $ | 17,357 | ||||||||||||
Reserve for non-impaired loans
|
$ | 59,339 | $ | 12,617 | $ | 78,574 | $ | 10,773 | $ | 32 | $ | 161,335 | ||||||||||||
Reserve for off-balance sheet credit commitments
|
$ | 837 | $ | 311 | $ | 2,122 | $ | 33 | $ | 2 | $ | 3,305 | ||||||||||||
2012 Beginning Balance
|
$ | 65,658 | $ | 21,749 | $ | 108,021 | $ | 10,795 | $ | 57 | $ | 206,280 | ||||||||||||
Provision/(credit) for possible credit losses
|
(1,041 | ) | (6,439 | ) | 4,318 | (260 | ) | 15 | (3,407 | ) | ||||||||||||||
Charge-offs
|
(4,959 | ) | (875 | ) | (8,222 | ) | (779 | ) | (25 | ) | (14,860 | ) | ||||||||||||
Recoveries
|
746 | 3,557 | 2,058 | 366 | 3 | 6,730 | ||||||||||||||||||
Net (charge-offs)/recoveries
|
(4,213 | ) | 2,682 | (6,164 | ) | (413 | ) | (22 | ) | (8,130 | ) | |||||||||||||
March 31, 2012 Ending Balance
|
$ | 60,404 | $ | 17,992 | $ | 106,175 | $ | 10,122 | $ | 50 | $ | 194,743 | ||||||||||||
Reserve for impaired loans
|
$ | 1,272 | $ | - | $ | 2,529 | $ | 1,806 | $ | - | $ | 5,607 | ||||||||||||
Reserve for non-impaired loans
|
$ | 59,119 | $ | 17,993 | $ | 103,657 | $ | 8,317 | $ | 50 | $ | 189,136 | ||||||||||||
Reserve for off-balance sheet credit commitments
|
$ | 720 | $ | 635 | $ | 84 | $ | 34 | $ | 2 | $ | 1,475 |
(Dollars in millions)
|
Fixed-to-floating
|
Floating-to-fixed
|
Total
|
|||||||||||||||||||||||||||||||||
Rate type
|
Float Rate |
Fixed Rate
|
||||||||||||||||||||||||||||||||||
Rate index
|
8% minus 3 month LIBOR
|
|||||||||||||||||||||||||||||||||||
Maximum rate
|
3.79 | % | 3.53 | % | 3.50 | % | 3.50 | % | 3.53 | % | 3.25 | % | ||||||||||||||||||||||||
Minimum rate
|
0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||||||||||||||||||
No. of agreements
|
3 | 1 | 4 | 3 | 1 | 1 | 1 | 4 | 18 | |||||||||||||||||||||||||||
Amount
|
$ | 150.0 | $ | 50.0 | $ | 200.0 | $ | 150.0 | $ | 50.0 | $ | 50.0 | $ | 100.0 | $ | 200.0 | $ | 950.0 | ||||||||||||||||||
Weighted average rate
|
3.78 | % | 3.53 | % | 3.50 | % | 3.50 | % | 3.53 | % | 3.25 | % | 4.78 | % | 5.00 | % | 3.98 | % | ||||||||||||||||||
Final maturity
|
2014 | 2014 | 2014 | 2015 | 2015 | 2015 | 2014 | 2017 |
Maturity
|
No. of
Agreements |
Amount
(In thousands) |
Weighted Average
Interest Rate |
|||||||||
3 years to 5 years
|
2 | $ | 100,000 | 2.71 | % | |||||||
Over 5 years
|
2 | 100,000 | 2.86 | % | ||||||||
Total
|
4 | $ | 200,000 | 2.78 | % |
|
·
|
Level 1 - Quoted prices in active markets for identical assets or liabilities.
|
|
·
|
Level 2 - Observable prices in active markets for similar assets or liabilities; prices for identical or similar assets or liabilities in markets that are not active; directly observable market inputs for substantially the full term of the asset and liability; market inputs that are not directly observable but are derived from or corroborated by observable market data.
|
|
·
|
Level 3 – Unobservable inputs based on the Company’s own judgments about the assumptions that a market participant would use.
|
March 31, 2013
|
Fair Value Measurements Using
|
Total at
|
||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Fair Value
|
|||||||||||||
(In thousands) | ||||||||||||||||
Assets
|
||||||||||||||||
Securities available-for-sale
|
||||||||||||||||
U.S. Treasury securities
|
$ | 360,114 | $ | - | $ | - | $ | 360,114 | ||||||||
State and municipal securities
|
- | 63,458 | - | 63,458 | ||||||||||||
Mortgage-backed securities
|
- | 1,490,598 | - | 1,490,598 | ||||||||||||
Collateralized mortgage obligations
|
- | 8,946 | - | 8,946 | ||||||||||||
Asset-backed securities
|
- | 132 | - | 132 | ||||||||||||
Corporate debt securities
|
- | 256,457 | - | 256,457 | ||||||||||||
Mutual funds
|
6,035 | - | - | 6,035 | ||||||||||||
Preferred stock of government sponsored entities
|
- | 4,556 | - | 4,556 | ||||||||||||
Total securities available-for-sale
|
366,149 | 1,824,147 | - | 2,190,296 | ||||||||||||
Trading securities
|
- | 4,758 | - | 4,758 | ||||||||||||
Warrants
|
- | - | 98 | 98 | ||||||||||||
Option contracts
|
- | 8 | - | 8 | ||||||||||||
Foreign exchange contracts
|
- | 2,987 | - | 2,987 | ||||||||||||
Total assets
|
$ | 366,149 | $ | 1,831,900 | $ | 98 | $ | 2,198,147 | ||||||||
Liabilities
|
||||||||||||||||
Option contracts
|
$ | - | $ | 2 | $ | - | $ | 2 | ||||||||
Foreign exchange contracts
|
- | 1,850 | - | 1,850 | ||||||||||||
Total liabilities
|
$ | - | $ | 1,852 | $ | - | $ | 1,852 |
December 31, 2012
|
Fair Value Measurements Using
|
Total at
|
||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Fair Value
|
|||||||||||||
(In thousands) | ||||||||||||||||
Assets
|
||||||||||||||||
Securities available-for-sale
|
||||||||||||||||
U.S. Treasury securities
|
$ | 509,971 | $ | - | $ | - | $ | 509,971 | ||||||||
Mortgage-backed securities
|
- | 416,694 | - | 416,694 | ||||||||||||
Collateralized mortgage obligations
|
- | 10,168 | - | 10,168 | ||||||||||||
Asset-backed securities
|
- | 141 | - | 141 | ||||||||||||
Corporate debt securities
|
- | 335,977 | - | 335,977 | ||||||||||||
Mutual funds
|
6,079 | - | - | 6,079 | ||||||||||||
Preferred stock of government sponsored entities
|
- | 2,335 | - | 2,335 | ||||||||||||
Trust preferred securities
|
10,115 | - | - | 10,115 | ||||||||||||
Other equity securities
|
- | - | - | - | ||||||||||||
Total securities available-for-sale
|
526,165 | 765,315 | - | 1,291,480 | ||||||||||||
Trading securities
|
- | 4,703 | - | 4,703 | ||||||||||||
Warrants
|
- | - | 104 | 104 | ||||||||||||
Option contracts
|
- | - | - | - | ||||||||||||
Foreign exchange contracts
|
- | 2,924 | - | 2,924 | ||||||||||||
Total assets
|
$ | 526,165 | $ | 772,942 | $ | 104 | $ | 1,299,211 | ||||||||
Liabilities
|
||||||||||||||||
Option contracts
|
$ | - | $ | 2 | $ | - | $ | 2 | ||||||||
Foreign exchange contracts
|
- | 1,586 | - | 1,586 | ||||||||||||
Total liabilities
|
$ | - | $ | 1,588 | $ | - | $ | 1,588 |
March 31, 2013
|
Total Losses/(gains)
|
|||||||||||||||||||||||
Fair Value Measurements Using
|
Total at
|
Three months ended
|
||||||||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Fair Value
|
March 31, 2013
|
March 31, 2012
|
|||||||||||||||||||
|
(In thousands)
|
|||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Impaired loans by type:
|
||||||||||||||||||||||||
Commercial loans
|
$ | - | $ | - | $ | 5,463 | $ | 5,463 | $ | 463 | $ | 859 | ||||||||||||
Commercial mortgage loans
|
- | - | 23,736 | 23,736 | 41 | - | ||||||||||||||||||
Construction- residential
|
- | - | 500 | 500 | - | - | ||||||||||||||||||
Construction- other
|
- | - | 46,162 | 46,162 | - | - | ||||||||||||||||||
Real estate loans
|
- | - | - | - | - | 1,357 | ||||||||||||||||||
Residential mortgage and equity lines
|
- | - | 13,299 | 13,299 | 189 | 526 | ||||||||||||||||||
Land loans
|
- | - | 208 | 208 | 48 | - | ||||||||||||||||||
Total impaired loans
|
- | - | 89,368 | 89,368 | 741 | 2,742 | ||||||||||||||||||
Other real estate owned (1)
|
- | 24,892 | 4,515 | 29,407 | (66 | ) | 2,824 | |||||||||||||||||
Investments in venture capital
|
- | - | 9,026 | 9,026 | 92 | 137 | ||||||||||||||||||
Equity investments
|
142 | - | - | 142 | - | - | ||||||||||||||||||
Total assets
|
$ | 142 | $ | 24,892 | $ | 102,909 | $ | 127,943 | $ | 767 | $ | 5,703 |
December 31, 2012
|
Total Losses
|
|||||||||||||||||||||
Fair Value Measurements Using
|
Total at
|
Twelve months ended
|
||||||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Fair Value
|
December 31, 2012
|
December 31, 2011
|
|||||||||||||||||
|
(In thousands)
|
|||||||||||||||||||||
Assets | ||||||||||||||||||||||
Impaired loans by type:
|
||||||||||||||||||||||
Commercial loans
|
$ | - | $ | - | $ | 3,492 | $ | 3,492 | $ | - | $ | 877 | ||||||||||
Commercial mortgage loans
|
- | - | 11,295 | 11,295 | 440 | - | ||||||||||||||||
Construction- residential
|
- | - | 500 | 500 | - | - | ||||||||||||||||
Construction- other
|
- | - | 46,153 | 46,153 | 65 | - | ||||||||||||||||
Residential mortgage and equity lines
|
- | - | 11,206 | 11,206 | 605 | 820 | ||||||||||||||||
Land loans
|
- | - | 297 | 297 | 162 | 46 | ||||||||||||||||
Total impaired loans
|
- | - | 72,943 | 72,943 | 1,272 | 1,743 | ||||||||||||||||
Other real estate owned (1)
|
- | 27,149 | 4,841 | 31,990 | 10,904 | 7,003 | ||||||||||||||||
Investments in venture capital
|
- | - | 9,001 | 9,001 | 309 | 379 | ||||||||||||||||
Equity investments
|
142 | - | - | 142 | 181 | 200 | ||||||||||||||||
Total assets
|
$ | 142 | $ | 27,149 | $ | 86,785 | $ | 114,076 | $ | 12,666 | $ | 9,325 |
March 31, 2013
|
December 31, 2012
|
|||||||||||||||
Carrying
Amount |
Fair Value
|
Carrying
Amount |
Fair Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Financial Assets
|
||||||||||||||||
Cash and due from banks
|
$ | 155,525 | $ | 155,525 | $ | 144,909 | $ | 144,909 | ||||||||
Short-term investments
|
215,794 | 215,794 | 411,983 | 411,983 | ||||||||||||
Securities held-to-maturity
|
- | - | 773,768 | 823,906 | ||||||||||||
Securities available-for-sale
|
2,190,296 | 2,190,296 | 1,291,480 | 1,291,480 | ||||||||||||
Trading securities
|
4,758 | 4,758 | 4,703 | 4,703 | ||||||||||||
Loans, net
|
7,175,462 | 7,119,348 | 7,235,587 | 7,169,732 | ||||||||||||
Investment in Federal Home Loan Bank stock
|
37,130 | 37,130 | 41,272 | 41,272 | ||||||||||||
Warrants
|
98 | 98 | 104 | 104 |
Notional
Amount |
Fair Value
|
Notional
Amount |
Fair Value
|
|||||||||||||
Option contracts
|
$ | 1,113 | $ | 8 | $ | 105 | $ | - | ||||||||
Foreign exchange contracts
|
211,674 | 2,987 | 188,145 | 2,924 | ||||||||||||
Carrying
Amount |
Fair Value
|
Carrying
Amount |
Fair Value
|
|||||||||||||
Deposits
|
$ | 7,425,674 | $ | 7,431,517 | $ | 7,383,225 | $ | 7,389,015 | ||||||||
Securities sold under agreements to repurchase
|
1,150,000 | 1,244,735 | 1,250,000 | 1,361,585 | ||||||||||||
Advances from Federal Home Loan Bank
|
126,200 | 126,962 | 146,200 | 146,789 | ||||||||||||
Other borrowings
|
19,232 | 16,232 | 18,713 | 14,573 | ||||||||||||
Long-term debt
|
171,136 | 101,715 | 171,136 | 98,392 |
Notional
Amount |
Fair Value
|
Notional
Amount |
Fair Value
|
|||||||||||||
Option contracts
|
$ | 465 | $ | 2 | $ | 104 | $ | 2 | ||||||||
Foreign exchange contracts
|
165,603 | 1,850 | 133,669 | 1,586 | ||||||||||||
Notional
Amount |
Fair Value
|
Notional
Amount |
Fair Value
|
|||||||||||||
Off-Balance Sheet Financial Instruments
|
||||||||||||||||
Commitments to extend credit
|
$ | 1,762,592 | $ | (1,867 | ) | $ | 1,740,463 | $ | (1,875 | ) | ||||||
Standby letters of credit
|
45,814 | (173 | ) | 44,672 | (204 | ) | ||||||||||
Other letters of credit
|
57,750 | (33 | ) | 71,073 | (34 | ) | ||||||||||
Bill of lading guarantees
|
128 | - | 77 | - |
March 31, 2013
|
||||||||||||||||
Estimated
Fair Value |
Level 1
|
Level 2
|
Level 3
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Financial Assets
|
||||||||||||||||
Cash and due from banks
|
$ | 155,525 | $ | 155,525 | $ | - | $ | - | ||||||||
Short-term investments
|
215,794 | 215,794 | - | - | ||||||||||||
Securities available-for-sale
|
2,190,296 | 366,149 | 1,824,147 | - | ||||||||||||
Trading securities
|
4,758 | - | 4,758 | - | ||||||||||||
Loans, net
|
7,119,348 | - | - | 7,119,348 | ||||||||||||
Investment in Federal Home Loan Bank stock
|
37,130 | - | 37,130 | - | ||||||||||||
Warrants
|
98 | - | - | 98 | ||||||||||||
Financial Liabilities
|
||||||||||||||||
Deposits
|
7,431,517 | - | - | 7,431,517 | ||||||||||||
Securities sold under agreements to repurchase
|
1,244,735 | - | 1,244,735 | - | ||||||||||||
Advances from Federal Home Loan Bank
|
126,962 | - | 126,962 | - | ||||||||||||
Other borrowings
|
16,232 | - | - | 16,232 | ||||||||||||
Long-term debt
|
101,715 | - | 101,715 | - |
December 31, 2012
|
||||||||||||||||
Estimated
Fair Value |
Level 1
|
Level 2
|
Level 3
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Financial Assets
|
||||||||||||||||
Cash and due from banks
|
$ | 144,909 | $ | 144,909 | $ | - | $ | - | ||||||||
Short-term investments
|
411,983 | 411,983 | - | - | ||||||||||||
Securities held-to-maturity
|
823,906 | - | 823,906 | - | ||||||||||||
Securities available-for-sale
|
1,291,480 | 526,165 | 765,315 | - | ||||||||||||
Trading securities
|
4,703 | - | 4,703 | - | ||||||||||||
Loans, net
|
7,169,732 | - | - | 7,169,732 | ||||||||||||
Investment in Federal Home Loan Bank stock
|
41,272 | - | 41,272 | - | ||||||||||||
Warrants
|
104 | - | - | 104 | ||||||||||||
Financial Liabilities
|
||||||||||||||||
Deposits
|
7,389,015 | - | - | 7,389,015 | ||||||||||||
Securities sold under agreements to repurchase
|
1,361,585 | - | 1,361,585 | - | ||||||||||||
Advances from Federal Home Loan Bank
|
146,789 | - | 146,789 | - | ||||||||||||
Other borrowings
|
14,573 | - | - | 14,573 | ||||||||||||
Long-term debt
|
98,392 | - | 98,392 | - |
Gross Amounts Not Offset in the Statement
of Financial Position
|
||||||||||||||||||||||||
(In thousands) |
Gross Amounts of Recognized
Liabilities
|
Gross Amounts
Offset in the
Statement of
Financial Position
|
Net Amounts of Liabilities presented in the Statement of Financial Position
|
Financial
Instruments
|
Collateral
Posted
|
Net
Amount
|
||||||||||||||||||
March 31, 2013 | ||||||||||||||||||||||||
Securities sold under agreements to repurchase | $ | 1,150,000 | - | $ | 1,150,000 | - | $ | (1,150,000 | ) | - | ||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||
Securities sold under agreements to repurchase | $ | 1,250,000 | - | $ | 1,250,000 | - | $ | (1,250,000 | ) | - |
Three months ended
March 31, 2013 |
||||||||||||
Pre-tax
|
Tax expense
|
Net-of-tax
|
||||||||||
(In thousands)
|
||||||||||||
Beginning balance, net of tax
|
$ | 465 | ||||||||||
Net unrealized gains arising during the period
|
$ | 7,947 | $ | 3,343 | $ | 4,604 | ||||||
Reclassification adjustment for net securities gains included in net income
|
(6,292 | ) | (2,645 | ) | (3,647 | ) | ||||||
Net unrealized gains arising from transferring securities held-to-maturity to available-for-sale
|
38,052 | 15,997 | 22,055 | |||||||||
Total other comprehensive income
|
$ | 39,707 | $ | 16,695 | $ | 23,012 | ||||||
Ending balance, net of tax
|
$ | 23,477 |
|
·
|
Redemption on March 20, 2013, of $129 million, or 50%, of the Bancorp’s Series B Preferred Stock issued under the U.S. Treasury's TARP Capital Purchase Program.
|
|
·
|
Memorandum of Understanding of Cathay General Bancorp lifted by the Federal Reserve Bank of San Francisco effective April 5, 2013.
|
|
·
|
Increase in the net interest margin to 3.35% for the first quarter of 2013 compared to 3.28% for the fourth quarter of 2012.
|
Three months ended March 31,
|
||||||||
2013
|
2012
|
|||||||
Net income (in millions)
|
$ | 28.8 | $ | 28.9 | ||||
Net income available to common stockholders (in millions)
|
$ | 23.7 | $ | 24.8 | ||||
Basic earnings per common share
|
$ | 0.30 | $ | 0.32 | ||||
Diluted earnings per common share
|
$ | 0.30 | $ | 0.32 | ||||
Return on average assets
|
1.12 | % | 1.10 | % | ||||
Return on average total stockholders' equity
|
7.20 | % | 7.62 | % | ||||
Efficiency ratio
|
51.71 | % | 53.50 | % |
Interest-Earning Assets and Interest-Bearing Liabilities
|
||||||||||||||||||||||||
Three months ended March 31,
|
||||||||||||||||||||||||
2013
|
2012
|
|||||||||||||||||||||||
(Dollars in thousands)
|
Average
Balance |
Interest
Income/ |
Average
Yield/ |
Average
Balance |
Interest
Income/ |
Average
Yield/ |
||||||||||||||||||
Interest earning assets:
|
||||||||||||||||||||||||
Commercial loans
|
$ | 2,073,827 | $ | 20,768 | 4.06 | % | $ | 1,857,339 | $ | 19,366 | 4.19 | % | ||||||||||||
Residential mortgage loans
|
1,357,346 | 15,942 | 4.70 | 1,183,518 | 15,030 | 5.08 | ||||||||||||||||||
Commercial mortgage loans
|
3,761,187 | 49,706 | 5.36 | 3,701,953 | 53,412 | 5.80 | ||||||||||||||||||
Real estate construction loans
|
181,254 | 2,387 | 5.34 | 235,771 | 2,802 | 4.78 | ||||||||||||||||||
Other loans and leases
|
13,252 | 37 | 1.13 | 19,005 | 91 | 1.93 | ||||||||||||||||||
Total loans and leases (1)
|
7,386,866 | 88,840 | 4.88 | 6,997,586 | 90,701 | 5.21 | ||||||||||||||||||
Taxable securities
|
2,006,091 | 11,786 | 2.38 | 2,323,166 | 17,723 | 3.07 | ||||||||||||||||||
Tax-exempt securities (3)
|
124,182 | 1,488 | 4.86 | 133,094 | 1,619 | 4.89 | ||||||||||||||||||
Federal Home Loan Bank stock
|
41,041 | 250 | 2.47 | 52,627 | 66 | 0.50 | ||||||||||||||||||
Interest bearing deposits
|
196,615 | 208 | 0.43 | 267,157 | 588 | 0.88 | ||||||||||||||||||
Federal funds sold & securities purchased under agreements to resell
|
- | - | - | 22,802 | 5 | 0.09 | ||||||||||||||||||
Total interest-earning assets
|
9,754,795 | 102,572 | 4.26 | 9,796,432 | 110,702 | 4.54 | ||||||||||||||||||
Non-interest earning assets:
|
||||||||||||||||||||||||
Cash and due from banks
|
139,378 | 115,447 | ||||||||||||||||||||||
Other non-earning assets
|
763,909 | 853,392 | ||||||||||||||||||||||
Total non-interest earning assets
|
903,287 | 968,839 | ||||||||||||||||||||||
Less: Allowance for loan losses
|
(183,547 | ) | (206,241 | ) | ||||||||||||||||||||
Deferred loan fees
|
(10,071 | ) | (7,860 | ) | ||||||||||||||||||||
Total assets
|
$ | 10,464,464 | $ | 10,551,170 | ||||||||||||||||||||
Interest bearing liabilities:
|
||||||||||||||||||||||||
Interest bearing demand accounts
|
$ | 600,110 | $ | 235 | 0.16 | $ | 465,921 | $ | 175 | 0.15 | ||||||||||||||
Money market accounts
|
1,164,125 | 1,580 | 0.55 | 976,109 | 1,395 | 0.57 | ||||||||||||||||||
Savings accounts
|
466,952 | 92 | 0.08 | 424,198 | 88 | 0.08 | ||||||||||||||||||
Time deposits
|
3,878,847 | 7,615 | 0.80 | 4,395,102 | 11,798 | 1.08 | ||||||||||||||||||
Total interest-bearing deposits
|
6,110,034 | 9,522 | 0.63 | 6,261,330 | 13,456 | 0.86 | ||||||||||||||||||
Securities sold under agreements to repurchase
|
1,197,222 | 11,393 | 3.86 | 1,400,000 | 14,655 | 4.21 | ||||||||||||||||||
Other borrowings
|
48,807 | 80 | 0.66 | 30,117 | 53 | 0.71 | ||||||||||||||||||
Long-term debt
|
171,136 | 924 | 2.19 | 171,136 | 1,320 | 3.10 | ||||||||||||||||||
Total interest-bearing liabilities
|
7,527,199 | 21,919 | 1.18 | 7,862,583 | 29,484 | 1.51 | ||||||||||||||||||
Non-interest bearing liabilities:
|
||||||||||||||||||||||||
Demand deposits
|
1,221,552 | 1,071,387 | ||||||||||||||||||||||
Other liabilities
|
82,940 | 82,227 | ||||||||||||||||||||||
Total equity
|
1,632,773 | 1,534,973 | ||||||||||||||||||||||
Total liabilities and equity
|
$ | 10,464,464 | $ | 10,551,170 | ||||||||||||||||||||
Net interest spread (4)
|
3.08 | % | 3.03 | % | ||||||||||||||||||||
Net interest income (4)
|
$ | 80,653 | $ | 81,218 | ||||||||||||||||||||
Net interest margin (4)
|
3.35 | % | 3.33 | % |
(1) | Yields and amounts of interest earned include loan fees. Non-accrual loans are included in the average balance. |
(2) | Calculated by dividing net interest income by average outstanding interest-earning assets. |
(3) | The average yield has been adjusted to a fully taxable-equivalent basis for certain securities of states and political subdivisions and other securities held using a statutory Federal income tax rate of 35%. |
(4) | Net interest spread, net interest income, and net interest margin on interest-earning assets have been adjusted to a fully taxable-equivalent basis using a statutory Federal income tax rate of 35%. |
Taxable-Equivalent Net Interest Income — Changes Due to Rate and Volume(1)
|
||||||||||||
Three months ended March 31,
2013-2012
Increase (Decrease) in
Net Interest Income Due to: |
||||||||||||
(Dollars in thousands)
|
Changes in
Volume
|
Changes in
Rate
|
Total Change
|
|||||||||
Interest-earning assets:
|
||||||||||||
Loans and leases
|
4,581 | (6,442 | ) | (1,861 | ) | |||||||
Taxable securities
|
(2,251 | ) | (3,686 | ) | (5,937 | ) | ||||||
Tax-exempt securities (2)
|
(119 | ) | (12 | ) | (131 | ) | ||||||
Federal Home Loan Bank stock
|
(18 | ) | 202 | 184 | ||||||||
Deposits with other banks
|
(129 | ) | (251 | ) | (380 | ) | ||||||
Federal funds sold and securities purchased under agreements to resell
|
(5 | ) | - | (5 | ) | |||||||
Total increase/(decrease) in interest income
|
2,059 | (10,189 | ) | (8,130 | ) | |||||||
Interest-bearing liabilities:
|
||||||||||||
Interest bearing demand accounts
|
51 | 9 | 60 | |||||||||
Money market accounts
|
249 | (64 | ) | 185 | ||||||||
Savings accounts
|
8 | (4 | ) | 4 | ||||||||
Time deposits
|
(1,293 | ) | (2,890 | ) | (4,183 | ) | ||||||
Securities sold under agreements to repurchase
|
(2,071 | ) | (1,191 | ) | (3,262 | ) | ||||||
Other borrowed funds
|
30 | (3 | ) | 27 | ||||||||
Long-term debts
|
- | (396 | ) | (396 | ) | |||||||
Total decrease in interest expense
|
(3,026 | ) | (4,539 | ) | (7,565 | ) | ||||||
Changes in net interest income
|
$ | 5,085 | $ | (5,650 | ) | $ | (565 | ) |
(1) |
Changes in interest income and interest expense attributable to changes in both volume and rate have been allocated proportionately to changes due to volume and changes due to rate.
|
(2) |
The amount of interest earned on certain securities of states and political subdivisions and other securities held has been adjusted to a fully taxable-equivalent basis using a statutory Federal income tax rate of 35%.
|
Three months ended
|
||||||||||||
March 31, 2013
|
December 31, 2012
|
March 31, 2012
|
||||||||||
(In thousands)
|
||||||||||||
Charge-offs:
|
||||||||||||
Commercial loans
|
$ | 2,690 | $ | 3,228 | $ | 4,959 | ||||||
Construction loans- residential
|
- | - | 140 | |||||||||
Construction loans- other
|
- | - | 735 | |||||||||
Real estate loans (1)
|
1,130 | 1,265 | 8,927 | |||||||||
Real estate- land loans
|
270 | 177 | 74 | |||||||||
Installment and other loans
|
- | - | 25 | |||||||||
Total charge-offs
|
4,090 | 4,670 | 14,860 | |||||||||
Recoveries:
|
||||||||||||
Commercial loans
|
955 | 719 | 746 | |||||||||
Construction loans- residential
|
46 | 76 | 1,899 | |||||||||
Construction loans- other
|
33 | 452 | 1,658 | |||||||||
Real estate loans (1)
|
359 | 2,036 | 1,631 | |||||||||
Real estate- land loans
|
9 | 24 | 793 | |||||||||
Installment and other loans
|
- | - | 3 | |||||||||
Total recoveries
|
1,402 | 3,307 | 6,730 | |||||||||
Net charge-offs
|
$ | 2,688 | $ | 1,363 | $ | 8,130 |
(1) Real estate loans include commercial mortgage loans, residential mortgage loans and equity lines.
|
March 31, 2013
|
||||||||||||||||
Amortized
Cost |
Gross
Unrealized |
Gross
Unrealized |
Fair Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Securities Available-for-Sale
|
||||||||||||||||
U.S. treasury securities
|
$ | 359,880 | $ | 234 | $ | - | $ | 360,114 | ||||||||
State and municipal securities
|
59,805 | 3,653 | - | 63,458 | ||||||||||||
Mortgage-backed securities
|
1,449,816 | 42,335 | 1,553 | 1,490,598 | ||||||||||||
Collateralized mortgage obligations
|
8,631 | 369 | 54 | 8,946 | ||||||||||||
Asset-backed securities
|
136 | - | 4 | 132 | ||||||||||||
Corporate debt securities
|
264,949 | 657 | 9,149 | 256,457 | ||||||||||||
Mutual funds
|
6,000 | 48 | 13 | 6,035 | ||||||||||||
Preferred stock of government sponsored entities
|
569 | 3,987 | - | 4,556 | ||||||||||||
Total securities available-for-sale
|
$ | 2,149,786 | $ | 51,283 | $ | 10,773 | $ | 2,190,296 | ||||||||
Total investment securities
|
$ | 2,149,786 | $ | 51,283 | $ | 10,773 | $ | 2,190,296 |
December 31, 2012
|
||||||||||||||||
Amortized
Cost |
Gross
Unrealized |
Gross
Unrealized |
Fair Value
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Securities Held-to-Maturity
|
||||||||||||||||
State and municipal securities
|
$ | 129,037 | $ | 9,268 | $ | - | $ | 138,305 | ||||||||
Mortgage-backed securities
|
634,757 | 40,801 | - | 675,558 | ||||||||||||
Corporate debt securities
|
9,974 | 69 | - | 10,043 | ||||||||||||
Total securities held-to-maturity
|
$ | 773,768 | $ | 50,138 | $ | - | $ | 823,906 | ||||||||
Securities Available-for-Sale
|
||||||||||||||||
U.S. treasury securities
|
$ | 509,748 | $ | 228 | $ | 5 | $ | 509,971 | ||||||||
Mortgage-backed securities
|
404,505 | 12,194 | 5 | 416,694 | ||||||||||||
Collateralized mortgage obligations
|
9,772 | 430 | 34 | 10,168 | ||||||||||||
Asset-backed securities
|
145 | - | 4 | 141 | ||||||||||||
Corporate debt securities
|
349,973 | 106 | 14,102 | 335,977 | ||||||||||||
Mutual funds
|
6,000 | 79 | - | 6,079 | ||||||||||||
Preferred stock of government sponsored entities
|
569 | 1,766 | - | 2,335 | ||||||||||||
Trust preferred securities
|
9,964 | 151 | - | 10,115 | ||||||||||||
Total securities available-for-sale
|
$ | 1,290,676 | $ | 14,954 | $ | 14,150 | $ | 1,291,480 | ||||||||
Total investment securities
|
$ | 2,064,444 | $ | 65,092 | $ | 14,150 | $ | 2,115,386 |
March 31, 2013
|
% of Gross Loans
|
December 31, 2012
|
% of Gross Loans
|
% Change
|
||||||||||||||||
Type of Loans
|
(Dollars in thousands)
|
|||||||||||||||||||
Commercial loans
|
$ | 2,031,789 | 27.6 | % | $ | 2,127,107 | 28.6 | % | -4.5 | % | ||||||||||
Residential mortgage loans
|
1,183,460 | 16.1 | 1,146,230 | 15.4 | 3.2 | |||||||||||||||
Commercial mortgage loans
|
3,759,580 | 51.0 | 3,768,452 | 50.7 | (0.2 | ) | ||||||||||||||
Equity lines
|
191,462 | 2.6 | 193,852 | 2.6 | (1.2 | ) | ||||||||||||||
Real estate construction loans
|
184,067 | 2.5 | 180,950 | 2.5 | 1.7 | |||||||||||||||
Installment and other loans
|
13,982 | 0.2 | 12,556 | 0.2 | 11.4 | |||||||||||||||
Gross loans
|
$ | 7,364,340 | 100 | % | $ | 7,429,147 | 100 | % | -0.9 | % | ||||||||||
Allowance for loan losses
|
(178,692 | ) | (183,322 | ) | (2.5 | ) | ||||||||||||||
Unamortized deferred loan fees
|
(10,186 | ) | (10,238 | ) | (0.5 | ) | ||||||||||||||
Total loans, net
|
$ | 7,175,462 | $ | 7,235,587 | -0.8 | % |
(Dollars in thousands)
|
March 31, 2013
|
December 31, 2012
|
% Change
|
March 31, 2012
|
% Change
|
|||||||||||||
Non-performing assets
|
||||||||||||||||||
Accruing loans past due 90 days or more
|
$ | 800 | $ | 630 | 27 | $ | 1,389 | (42 | ) | |||||||||
Non-accrual loans:
|
||||||||||||||||||
Construction loans- residential
|
3,271 | 2,984 | 10 | 3,593 | (9 | ) | ||||||||||||
Construction loans- non-residential
|
32,966 | 33,315 | (1 | ) | 7,118 | 363 | ||||||||||||
Land loans
|
8,325 | 6,053 | 38 | 9,688 | (14 | ) | ||||||||||||
Commercial real estate loans, excluding land loans
|
30,896 | 29,651 | 4 | 66,931 | (54 | ) | ||||||||||||
Commercial loans
|
13,192 | 19,958 | (34 | ) | 30,329 | (57 | ) | |||||||||||
Residential mortgage loans
|
11,679 | 11,941 | (2 | ) | 13,838 | (16 | ) | |||||||||||
Total non-accrual loans:
|
$ | 100,329 | $ | 103,902 | (3 | ) | $ | 131,497 | (24 | ) | ||||||||
Total non-performing loans
|
101,129 | 104,532 | (3 | ) | 132,886 | (24 | ) | |||||||||||
Other real estate owned
|
45,316 | 46,384 | (2 | ) | 87,806 | (48 | ) | |||||||||||
Total non-performing assets
|
$ | 146,445 | $ | 150,916 | (3 | ) | $ | 220,692 | (34 | ) | ||||||||
Accruing troubled debt restructurings (TDRs)
|
$ | 130,215 | $ | 144,695 | (10 | ) | $ | 143,233 | (9 | ) | ||||||||
Non-accrual TDRs (included in non-accrual loans above)
|
$ | 49,878 | $ | 47,731 | 4 | $ | 21,543 | 132 | ||||||||||
Non-accrual loans held for sale
|
$ | - | $ | - | - | $ | 500 | (100 | ) | |||||||||
Allowance for loan losses
|
$ | 178,692 | $ | 183,322 | (3 | ) | $ | 194,743 | (8 | ) | ||||||||
Allowance for off-balance sheet credit commitments
|
3,304 | 1,362 | 143 | 1,475 | 124 | |||||||||||||
Allowance for credit losses
|
$ | 181,996 | $ | 184,684 | (1 | ) | $ | 196,218 | (7 | ) | ||||||||
Total gross loans outstanding, at period-end (1)
|
$ | 7,364,340 | $ | 7,429,147 | (1 | ) | $ | 6,908,544 | 7 | |||||||||
Allowance for loan losses to non-performing loans, at period-end (2)
|
176.70 | % | 175.37 | % | 146.55 | % | ||||||||||||
Allowance for loan losses to gross loans, at period-end (1)
|
2.43 | % | 2.47 | % | 2.82 | % | ||||||||||||
Allowance for credit losses to gross loans, at period-end (1)
|
2.47 | % | 2.49 | % | 2.84 | % |
(1) Excludes loans held for sale at period-end.
|
||||||||||||||||||||
(2) Excludes non-accrual loans held for sale at period-end.
|
March 31, 2013
|
December 31, 2012
|
|||||||||||||||
Real
Estate (1) |
Commercial
|
Real
Estate (1) |
Commercial
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Type of Collateral
|
||||||||||||||||
Single/multi-family residence
|
$ | 20,674 | $ | 2,062 | $ | 20,996 | $ | 2,073 | ||||||||
Commercial real estate
|
58,138 | 1,399 | 56,895 | 1,433 | ||||||||||||
Land
|
8,325 | - | 6,053 | - | ||||||||||||
Personal property (UCC)
|
- | 9,731 | - | 16,452 | ||||||||||||
Total
|
$ | 87,137 | $ | 13,192 | $ | 83,944 | $ | 19,958 |
(1) Real estate includes commercial mortgage loans, real estate construction loans, residential mortgage loans and equity lines.
|
March 31, 2013
|
December 31, 2012
|
|||||||||||||||
Real
Estate (1) |
Commercial
|
Real
Estate (1) |
Commercial
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Type of Business
|
||||||||||||||||
Real estate development
|
$ | 60,908 | $ | 2,109 | $ | 56,995 | $ | 2,387 | ||||||||
Wholesale/Retail
|
14,943 | 5,993 | 15,398 | 3,908 | ||||||||||||
Food/Restaurant
|
554 | 328 | 562 | 341 | ||||||||||||
Import/Export
|
- | 4,749 | - | 13,309 | ||||||||||||
Other
|
10,731 | 13 | 10,989 | 13 | ||||||||||||
Total
|
$ | 87,136 | $ | 13,192 | $ | 83,944 | $ | 19,958 |
(1) Real estate includes commercial mortgage loans, real estate construction loans, residential mortgage loans and equity lines.
|
Impaired Loans
|
||||||||||||||||||||||||
March 31, 2013
|
December 31, 2012
|
|||||||||||||||||||||||
Unpaid Principal Balance
|
Recorded
Investment
|
Allowance
|
Unpaid Principal Balance
|
Recorded
Investment
|
Allowance
|
|||||||||||||||||||
(In thousands)
|
||||||||||||||||||||||||
With no allocated allowance
|
||||||||||||||||||||||||
Commercial loans
|
$ | 14,437 | $ | 12,294 | $ | - | $ | 29,359 | $ | 18,963 | $ | - | ||||||||||||
Real estate construction loans
|
9,304 | 7,277 | - | 9,304 | 7,277 | - | ||||||||||||||||||
Commercial mortgage loans
|
153,872 | 120,563 | - | 189,871 | 152,957 | - | ||||||||||||||||||
Residential mortgage and equity lines
|
3,643 | 3,633 | - | 4,303 | 4,229 | - | ||||||||||||||||||
Subtotal
|
$ | 181,256 | $ | 143,767 | $ | - | $ | 232,837 | $ | 183,426 | $ | - | ||||||||||||
With allocated allowance
|
||||||||||||||||||||||||
Commercial loans
|
$ | 11,854 | $ | 7,180 | $ | 1,717 | $ | 7,804 | $ | 4,959 | $ | 1,467 | ||||||||||||
Real estate construction loans
|
54,657 | 34,795 | 8,080 | 54,718 | 34,856 | 8,158 | ||||||||||||||||||
Commercial mortgage loans
|
31,407 | 30,187 | 6,242 | 14,163 | 12,928 | 1,336 | ||||||||||||||||||
Residential mortgage and equity lines
|
16,704 | 14,615 | 1,318 | 14,264 | 12,428 | 1,222 | ||||||||||||||||||
Subtotal
|
$ | 114,622 | $ | 86,777 | $ | 17,357 | $ | 90,949 | $ | 65,171 | $ | 12,183 | ||||||||||||
Total impaired loans
|
$ | 295,878 | $ | 230,544 | $ | 17,357 | $ | 323,786 | $ | 248,597 | $ | 12,183 |
For the three months ended
|
||||||||||||
March 31, 2013
|
March 31, 2012
|
December 31, 2012
|
||||||||||
(Dollars in thousands)
|
||||||||||||
Allowance for Loan Losses | ||||||||||||
Balance at beginning of period
|
$ | 183,322 | $ | 206,280 | $ | 184,438 | ||||||
Provision/(reversal) for credit losses
|
- | (4,000 | ) | - | ||||||||
Transfers from/(to) reserve for off-balance sheet credit commitments
|
(1,942 | ) | 593 | 247 | ||||||||
Charge-offs :
|
||||||||||||
Commercial loans
|
(2,690 | ) | (4,959 | ) | (3,228 | ) | ||||||
Construction loans-residential
|
- | (140 | ) | - | ||||||||
Construction loans-other
|
- | (735 | ) | - | ||||||||
Real estate loans
|
(1,130 | ) | (8,927 | ) | (1,265 | ) | ||||||
Land loans
|
(270 | ) | (74 | ) | (177 | ) | ||||||
Installment loans and other loans
|
- | (25 | ) | - | ||||||||
Total charge-offs
|
(4,090 | ) | (14,860 | ) | (4,670 | ) | ||||||
Recoveries:
|
||||||||||||
Commercial loans
|
955 | 746 | 719 | |||||||||
Construction loans-residential
|
46 | 1,899 | 76 | |||||||||
Construction loans-other
|
33 | 1,658 | 452 | |||||||||
Real estate loans
|
359 | 1,631 | 2,036 | |||||||||
Land loans
|
9 | 793 | 24 | |||||||||
Installment loans and other loans
|
- | 3 | - | |||||||||
Total recoveries
|
1,402 | 6,730 | 3,307 | |||||||||
Balance at end of period
|
$ | 178,692 | $ | 194,743 | $ | 183,322 | ||||||
Reserve for off-balance sheet credit commitments
|
||||||||||||
Balance at beginning of period
|
$ | 1,362 | $ | 2,069 | $ | 1,610 | ||||||
Provision/(reversal) for credit losses/transfers
|
1,942 | (594 | ) | (247 | ) | |||||||
Balance at end of period
|
$ | 3,304 | $ | 1,475 | $ | 1,363 | ||||||
Average loans outstanding during the period (1)
|
$ | 7,386,866 | $ | 6,995,821 | $ | 7,318,749 | ||||||
Total gross loans outstanding, at period-end (1)
|
$ | 7,364,340 | $ | 6,908,544 | $ | 7,429,147 | ||||||
Total non-performing loans, at period-end (1)
|
$ | 101,129 | $ | 132,886 | $ | 104,532 | ||||||
Ratio of net charge-offs to average loans outstanding during the period
|
0.15 | % | 0.47 | % | 0.07 | % | ||||||
Provision for loan losses to average loans outstanding during the period
|
$ | - | -0.23 | % | $ | - | ||||||
Allowance for loan losses to non-performing loans at period-end
|
176.70 | % | 146.55 | % | 175.37 | % | ||||||
Allowance for loan losses to gross loans at period-end
|
2.43 | % | 2.82 | % | 2.47 | % |
|
•
|
Specific allowance: For impaired loans, we provide specific allowances for loans that are not collateral dependent based on an evaluation of the present value of the expected future cash flows discounted at the loan’s effective interest rate and for loans that are collateral dependent based on the fair value of the underlying collateral determined by the most recent valuation information received, which may be adjusted based on factors such as changes in market conditions from the time of valuation. If the measure of the impaired loan is less than the recorded investment in the loan, the deficiency will be charged off against the allowance for loan losses or, alternatively, a specific allocation will be established.
|
|
•
|
General allowance: The unclassified portfolio is segmented on a group basis. Segmentation is determined by loan type and common risk characteristics. The non-impaired loans are grouped into 23 segments: two commercial segments, ten commercial real estate segments, three residential construction segments, three non-residential construction segments, one SBA segment, one installment loans segment, one residential mortgage segment, one equity lines of credit segment, and one overdrafts segment. The allowance is provided for each segmented group based on the group’s historical loan loss experience aggregated based on loan risk classifications which takes into account the current financial condition of the borrowers and guarantors, the prevailing value of the underlying collateral if collateral dependent, charge-off history, management’s knowledge of the portfolio, general economic conditions, and environmental factors which include the trends in delinquency and non-accrual, and other significant factors, such as the national and local economy, volume and composition of the portfolio, strength of management and loan staff, underwriting standards, and concentration of credit. In addition, management reviews reports on past-due loans to ensure appropriate classifications. During the second quarter of 2009, in light of the continued deterioration in the economy and the increases in non-accrual loans and charge-offs, and based in part on regulatory considerations, we shortened the period used in the migration analysis from five years to four years to better reflect the impact of the most recent charge-offs, which increased the allowance for loan losses by $3.9 million; we increased the general allowance to reflect the higher loan delinquency trends, the weaker national and local economy and the increased difficulty in assigning loan grades, which increased the allowance for loan losses by $13.2 million, and we also applied the environmental factors described above to loans rated Minimally Acceptable, Special Mention and Substandard, which increased the allowance for loan losses by $11.8 million. During the fourth quarter of 2009, we changed our migration loss analysis to reduce the weighting of the first two years of the four-year migration analysis by half to better reflect the impact of more recent losses, and further segmented the construction loan portfolios into three geographic segments. The changes made during the fourth quarter of 2009 did not have a significant impact on the allowance for loan losses. During the first quarter of 2010, we increased the number of segments for commercial real estate loans from one to ten. In addition, we changed our migration loss analysis for loans rated Pass to use as the reserve factor the total weighted average losses during the last four years for each loan segment as well as the weighting for the four-year migration so that the first two years are weighted one-third and the most recent two years are weighted two-thirds. The changes made during the first quarter of 2010 increased the allowance for loan losses by $10.4 million. During the second quarter of 2010, we further refined our methodology to give greater weighting to the most recent twelve months of charge-offs in the calculation of the loan loss reserve percentage for Pass rated loans, which increased the allowance for loan losses by $10.4 million; we discontinued the weighting in the four-year migration analysis for loans rated lower than Pass, which increased the allowance for loan losses by $7.1 million; and we increased the environmental factors for purchased syndicated loans, which increased the allowance for loan losses by $2.0 million. During the first quarter of 2011, we combined the number of segments for construction loans from nine to two by consolidating the previous three geographic groups of East Coast, Texas and all other regions into one bankwide region in light of the convergence of credit quality for construction loans of the three separate regions, which increased the allowance for loan losses by $4.8 million.
|
(Dollars in thousands)
|
March 31, 2013
|
December 31, 2012
|
||||||||||||||
Type of Loan:
|
Amount
|
Percentage of
Loans in Each |
Amount
|
Percentage of
Loans in Each |
||||||||||||
Commercial loans
|
$ | 61,056 | 28.1 | % | $ | 66,101 | 27.4 | % | ||||||||
Residential mortgage loans (1)
|
12,091 | 18.4 | 11,703 | 17.4 | ||||||||||||
Commercial mortgage loans
|
84,816 | 50.9 | 82,473 | 52.2 | ||||||||||||
Real estate construction loans
|
20,697 | 2.4 | 23,017 | 2.8 | ||||||||||||
Installment and other loans
|
32 | 0.2 | 28 | 0.2 | ||||||||||||
Total
|
$ | 178,692 | 100 | % | $ | 183,322 | 100 | % |
March 31, 2013
|
% of Total
|
December 31, 2012
|
% of Total
|
|||||||||||||
Deposits
|
(Dollars in thousands)
|
|||||||||||||||
Non-interest-bearing demand
|
$ | 1,279,986 | 17.2 | % | $ | 1,269,455 | 17.2 | % | ||||||||
NOW
|
622,454 | 8.4 | 593,133 | 8.0 | ||||||||||||
Money market
|
1,124,240 | 15.1 | 1,186,771 | 16.1 | ||||||||||||
Savings
|
472,122 | 6.4 | 473,805 | 6.4 | ||||||||||||
Time deposits under $100,000
|
685,758 | 9.2 | 644,191 | 8.7 | ||||||||||||
Time deposits of $100,000 or more
|
3,241,114 | 43.7 | 3,215,870 | 43.6 | ||||||||||||
Total deposits
|
$ | 7,425,674 | 100.0 | % | $ | 7,383,225 | 100.0 | % |
(Dollars in millions)
|
Fixed-to-floating
|
Floating-to-fixed
|
Total
|
|||||||||||||||||||||||||||||||||
Rate type
|
Float Rate
|
Fixed Rate
|
||||||||||||||||||||||||||||||||||
Rate index
|
8% minus 3 month LIBOR
|
|||||||||||||||||||||||||||||||||||
Maximum rate
|
3.79 | % | 3.53 | % | 3.50 | % | 3.50 | % | 3.53 | % | 3.25 | % | ||||||||||||||||||||||||
Minimum rate
|
0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||||||||||||||||||
No. of agreements
|
3 | 1 | 4 | 3 | 1 | 1 | 1 | 4 | 18 | |||||||||||||||||||||||||||
Amount
|
$ | 150.0 | $ | 50.0 | $ | 200.0 | $ | 150.0 | $ | 50.0 | $ | 50.0 | $ | 100.0 | $ | 200.0 | $ | 950.0 | ||||||||||||||||||
Weighted average rate
|
3.78 | % | 3.53 | % | 3.50 | % | 3.50 | % | 3.53 | % | 3.25 | % | 4.78 | % | 5.00 | % | 3.98 | % | ||||||||||||||||||
Final maturity
|
2014 | 2014 | 2014 | 2015 | 2015 | 2015 | 2014 | 2017 |
Maturity
|
No. of
Agreements |
Amount
(In thousands) |
Weighted Average
Interest Rate |
|||||||||
3 years to 5 years
|
2 | $ | 100,000 | 2.71 | % | |||||||
Over 5 years
|
2 | 100,000 | 2.86 | % | ||||||||
Total
|
4 | $ | 200,000 | 2.78 | % |
Payment Due by Period
|
||||||||||||||||||||
1 year
or less |
More than
1 year but |
3 years or
more but |
5 years
or more |
Total
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Contractual obligations:
|
||||||||||||||||||||
Deposits with stated maturity dates
|
$ | 3,519,610 | $ | 345,651 | $ | 61,605 | $ | 6 | $ | 3,926,872 | ||||||||||
Securities sold under agreements to repurchase (1)
|
- | 750,000 | 200,000 | - | 950,000 | |||||||||||||||
Securities sold under agreements to repurchase (2)
|
- | - | 100,000 | 100,000 | 200,000 | |||||||||||||||
Advances from the Federal Home Loan Bank
|
80,000 | - | 46,200 | - | 126,200 | |||||||||||||||
Other borrowings
|
- | - | 19,232 | 19,232 | ||||||||||||||||
Long-term debt
|
- | - | 50,000 | 121,136 | 171,136 | |||||||||||||||
Operating leases
|
6,008 | 7,054 | 2,106 | 620 | 15,788 | |||||||||||||||
Total contractual obligations and other commitments
|
$ | 3,605,618 | $ | 1,102,705 | $ | 459,911 | $ | 240,994 | $ | 5,409,228 |
(1) |
These repurchase agreements have a final maturity of 5-year, 7-year and 10-year from origination date but are callable on a quarterly basis after six months, one year, or 18 months for the 7-year term and one year for the 5-year and 10-year term.
|
|
(2) | These repurchase agreements are non-callable. |
(In thousands)
|
Three months ended
March 31, 2013 |
|||
Net income
|
$ | 28,998 | ||
Stock issued to officers as compensation
|
299 | |||
Proceeds from shares issued through the Dividend Reinvestment Plan
|
62 | |||
Net tax short-fall from stock-based compensation expense
|
(69 | ) | ||
Share-based compensation
|
739 | |||
Other comprehensive income
|
23,012 | |||
Preferred stock dividends and noncash charge from repayment
|
(3,191 | ) | ||
Redemption of series B preferred stock
|
(129,000 | ) | ||
Cash dividends paid to common stockholders
|
(788 | ) | ||
Net increase in total equity
|
$ | (79,938 | ) |
Cathay General Bancorp
|
Cathay Bank
|
|||||||||||||||||||||||||||||||
March 31, 2013
|
December 31, 2012
|
March 31, 2013
|
December 31, 2012
|
|||||||||||||||||||||||||||||
(Dollars in thousands)
|
Balance
|
%
|
Balance
|
%
|
Balance
|
%
|
Balance
|
%
|
||||||||||||||||||||||||
Tier 1 capital (to risk-weighted assets)
|
$ | 1,324,220 | 16.38 | $ | 1,426,566 | 17.36 | $ | 1,289,967 | 15.97 | $ | 1,259,005 | 15.33 | ||||||||||||||||||||
Tier 1 capital minimum requirement
|
323,355 | 4.00 | 328,713 | 4.00 | 323,069 | 4.00 | 328,440 | 4.00 | ||||||||||||||||||||||||
Excess
|
$ | 1,000,865 | 12.38 | $ | 1,097,853 | 13.36 | $ | 966,898 | 11.97 | $ | 930,565 | 11.33 | ||||||||||||||||||||
Total capital (to risk-weighted assets)
|
$ | 1,467,991 | 18.16 | $ | 1,571,060 | 19.12 | $ | 1,431,926 | 17.73 | $ | 1,402,691 | 17.08 | ||||||||||||||||||||
Total capital minimum requirement
|
646,710 | 8.00 | 657,426 | 8.00 | 646,138 | 8.00 | 656,880 | 8.00 | ||||||||||||||||||||||||
Excess
|
$ | 821,281 | 10.16 | $ | 913,634 | 11.12 | $ | 785,788 | 9.73 | $ | 745,811 | 9.08 | ||||||||||||||||||||
Tier 1 capital (to average assets)
|
||||||||||||||||||||||||||||||||
– Leverage ratio
|
$ | 1,324,220 | 13.06 | $ | 1,426,566 | 13.82 | $ | 1,289,967 | 12.73 | $ | 1,259,005 | 12.22 | ||||||||||||||||||||
Minimum leverage requirement
|
405,441 | 4.00 | 412,844 | 4.00 | 405,200 | 4.00 | 412,272 | 4.00 | ||||||||||||||||||||||||
Excess
|
$ | 918,779 | 9.06 | $ | 1,013,722 | 9.82 | $ | 884,767 | 8.73 | $ | 846,733 | 8.22 | ||||||||||||||||||||
Risk-weighted assets
|
$ | 8,083,881 | $ | 8,217,821 | $ | 8,076,719 | $ | 8,211,004 | ||||||||||||||||||||||||
Total average assets (1)
|
$ | 10,136,030 | $ | 10,321,104 | $ | 10,130,000 | $ | 10,306,790 |
(1) | The quarterly total average assets reflect all debt securities at amortized cost, equity security with readily determinable fair values at the lower of cost or fair value, and equity securities without readily determinable fair values at historical cost. |
Change in Interest Rate (Basis Points)
|
Net Interest
Income |
Market Value
of Equity |
|
+200
|
5.7
|
1.7
|
|
+100
|
1.6
|
1.0
|
|
-100
|
2.0
|
-0.5
|
|
-200
|
1.9
|
-0.2
|
|
(1) |
The percentage change in this column represents net interest income of the Company for 12 months in a stable interest rate environment versus the net interest income in the various rate scenarios.
|
(2) |
The percentage change in this column represents net portfolio value of the Company in a stable interest rate environment versus the net portfolio value in the various rate scenarios.
|
ISSUER PURCHASES OF EQUITY SECURITIES
|
||||
Period
|
(a) Total
Number of
Shares (or
Units)
Purchased
|
(b)
Average
Price
Paid per
Share (or
Unit)
|
(c) Total
Number of
Shares (or
Units)
Purchased as
Part of
Publicly
Announced
Plans or
Programs
|
(d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs
|
Month #1 (January 1, 2013 - January 31, 2013)
|
0
|
$0
|
0
|
622,500
|
Month #2 (February 1, 2012 - February 28, 2013)
|
0
|
$0
|
0
|
622,500
|
Month #3 (March 1, 2013 - March 31, 2013)
|
0
|
$0
|
0
|
622,500
|
Total
|
0
|
$0
|
0
|
622,500
|
|
(i)
|
Exhibit 31.1 Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
(ii)
|
Exhibit 31.2 Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
(iii)
|
Exhibit 32.1 Certification of the Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
(iv)
|
Exhibit 32.2 Certification of the Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
(v)
|
Exhibit 101.INS XBRL Instance Document *
|
|
(vi)
|
Exhibit 101.SCH XBRL Taxonomy Extension Schema Document*
|
|
(vii)
|
Exhibit 101.CAL XBRL Taxonomy Extension Calculation Linkbase Document*
|
|
(viii)
|
Exhibit 101.DEF XBRL Taxonomy Extension Definition Linkbase Document*
|
|
(ix)
|
Exhibit 101.LAB XBRL Taxonomy Extension Label Linkbase Document*
|
|
(x)
|
Exhibit 101.PRE XBRL Taxonomy Extension Presentation Linkbase Document*
|
Cathay General Bancorp
(Registrant)
|
||||
Date: May 8, 2013 | ||||
|
/s/ Dunson K. Cheng
|
|||
|
Dunson K. Cheng
|
|||
|
Chairman, President, and
|
|||
Chief Executive Officer
|
||||
Date: May 8, 2013 | ||||
/s/ Heng W. Chen | ||||
Heng W. Chen
Executive Vice President and
Chief Financial Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Cathay General Bancorp; |
2.
|
Based on my knowledge, this quarterly 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 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.
|
/s / Dunson K. Cheng | ||||
|
Dunson K. Cheng
President and
Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Cathay General Bancorp; |
2.
|
Based on my knowledge, this quarterly 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 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.
|
/s / Heng W. Chen
|
||||
|
Heng W. Chen
Executive Vice President and
Chief Financial Officer
|
/s / Dunson K. Cheng | ||||
|
Dunson K. Cheng
President and
Chief Executive Officer
|
/s / Heng W. Chen
|
||||
|
Heng W. Chen
Executive Vice President and
Chief Financial Officer
|
Note 6 - Investment Securities (Detail) - Investments by Contractual Maturity Date (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
Dec. 31, 2012
|
|||
---|---|---|---|---|---|
Due in one year or less | $ 299,974 | ||||
Due in one year or less | 300,139 | ||||
Due after one year through five years | 186,517 | ||||
Due after one year through five years | 184,546 | ||||
Due after five years through ten years | 222,033 | ||||
Due after five years through ten years | 221,132 | ||||
Due after ten years (1) | 1,441,262 | [1] | |||
Due after ten years (1) | 1,484,479 | [1] | |||
Total | 2,149,786 | 1,290,676 | |||
Total | $ 2,190,296 | ||||
|
Note 9 - Securities Sold Under Agreements to Repurchase (Detail) - Callable Securities Sold Under Agreements to Repurchase (Callable [Member], USD $)
In Thousands, unless otherwise specified |
3 Months Ended |
---|---|
Mar. 31, 2013
|
|
No. of agreements | 18 |
Amount (in Dollars) | $ 950,000 |
Weighted average rate | 3.98% |
Fixed to Floating One Hundred and Fifty Million With Three Agreements At Three Point Seven Nine Percent [Member]
|
|
Maximum rate | 3.79% |
Minimum rate | 0.00% |
No. of agreements | 3 |
Amount (in Dollars) | 150,000 |
Weighted average rate | 3.78% |
Final maturity | 2,014 |
Fixed To Floating Fifty Million With One Agreement At Three Point Five Three Percent Member
|
|
Maximum rate | 3.53% |
Minimum rate | 0.00% |
No. of agreements | 1 |
Amount (in Dollars) | 50,000 |
Weighted average rate | 3.53% |
Final maturity | 2,014 |
Fixed to Floating 3.5% With Four Agreements [Member]
|
|
Maximum rate | 3.50% |
Minimum rate | 0.00% |
No. of agreements | 4 |
Amount (in Dollars) | 200,000 |
Weighted average rate | 3.50% |
Final maturity | 2,014 |
Fixed To Floating One Hundred And Fifty Million With Three Agreements At Three Point Five Percent Member
|
|
Maximum rate | 3.50% |
Minimum rate | 0.00% |
No. of agreements | 3 |
Amount (in Dollars) | 150,000 |
Weighted average rate | 3.50% |
Final maturity | 2,015 |
Fixed to Floating Fifty Million at Three Point Five Three Percent Maturing in 2015 [Member]
|
|
Maximum rate | 3.53% |
Minimum rate | 0.00% |
No. of agreements | 1 |
Amount (in Dollars) | 50,000 |
Weighted average rate | 3.53% |
Final maturity | 2,015 |
Fixed to Floating At 3.25% [Member]
|
|
Maximum rate | 3.25% |
Minimum rate | 0.00% |
No. of agreements | 1 |
Amount (in Dollars) | 50,000 |
Weighted average rate | 3.25% |
Final maturity | 2,015 |
Floating to Fixed One Hundred Million [Member]
|
|
No. of agreements | 1 |
Amount (in Dollars) | 100,000 |
Weighted average rate | 4.78% |
Final maturity | 2,014 |
Floating to Fixed Rate Two Hundred Million at 5% [Member]
|
|
No. of agreements | 4 |
Amount (in Dollars) | $ 200,000 |
Weighted average rate | 5.00% |
Final maturity | 2,017 |
Note 7 - Loans (Detail) - Non-accrual Troubled Debt Restructurings (Non Accruing Troubled Debt Restructuring Member, USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
Dec. 31, 2012
|
---|---|---|
Non-accrual TDRs | $ 49,878 | $ 47,731 |
Interest Deferral [Member] | Commercial Mortgage Loans [Member]
|
||
Non-accrual TDRs | 1,606 | 1,685 |
Interest Deferral [Member] | Residential Mortgage Loans [Member]
|
||
Non-accrual TDRs | 267 | 275 |
Interest Deferral [Member]
|
||
Non-accrual TDRs | 1,873 | 1,960 |
Real Estate Construction Loans [Member] | Commercial Loans Member
|
||
Non-accrual TDRs | 2,425 | 912 |
Real Estate Construction Loans [Member] | Real Estate Construction Loans [Member]
|
||
Non-accrual TDRs | 16,577 | 16,767 |
Real Estate Construction Loans [Member] | Commercial Mortgage Loans [Member]
|
||
Non-accrual TDRs | 2,777 | 2,817 |
Real Estate Construction Loans [Member] | Residential Mortgage Loans [Member]
|
||
Non-accrual TDRs | 2,146 | 2,010 |
Real Estate Construction Loans [Member]
|
||
Non-accrual TDRs | 23,925 | 22,506 |
Rate Reduction [Member] | Real Estate Construction Loans [Member]
|
||
Non-accrual TDRs | 9,449 | 9,579 |
Rate Reduction [Member] | Commercial Mortgage Loans [Member]
|
||
Non-accrual TDRs | 5,067 | 5,746 |
Rate Reduction [Member] | Residential Mortgage Loans [Member]
|
||
Non-accrual TDRs | 295 | 586 |
Rate Reduction [Member]
|
||
Non-accrual TDRs | 14,811 | 15,911 |
Rate Reduction and Forgiveness of Principal [Member] | Commercial Loans Member
|
||
Non-accrual TDRs | 1,475 | 1,518 |
Rate Reduction and Forgiveness of Principal [Member]
|
||
Non-accrual TDRs | 1,475 | 1,518 |
Rate Reduction and Payment Deferral [Member] | Commercial Mortgage Loans [Member]
|
||
Non-accrual TDRs | 7,088 | 5,076 |
Rate Reduction and Payment Deferral [Member] | Residential Mortgage Loans [Member]
|
||
Non-accrual TDRs | 706 | 760 |
Rate Reduction and Payment Deferral [Member]
|
||
Non-accrual TDRs | 7,794 | 5,836 |
Commercial Loans Member
|
||
Non-accrual TDRs | 3,900 | 2,430 |
Real Estate Construction Loans [Member]
|
||
Non-accrual TDRs | 26,026 | 26,346 |
Commercial Mortgage Loans [Member]
|
||
Non-accrual TDRs | 16,538 | 15,324 |
Residential Mortgage Loans [Member]
|
||
Non-accrual TDRs | $ 3,414 | $ 3,631 |
Note 9 - Securities Sold Under Agreements to Repurchase (Detail) - Securities Sold Under Agreements to Repurchase (Non-Callable Fixed Rate Securities Sold Under Agreements to Repurchase [Member], USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
---|---|
No. of Agreements | 4 |
Amount (in Dollars) | $ 200,000 |
Weighted Average Interest Rate | 2.78% |
Maturing in Three to Five Years [Member]
|
|
No. of Agreements | 2 |
Amount (in Dollars) | 100,000 |
Weighted Average Interest Rate | 2.71% |
Maturing in More Than Five Years [Member]
|
|
No. of Agreements | 2 |
Amount (in Dollars) | $ 100,000 |
Weighted Average Interest Rate | 2.86% |
Note 7 - Loans (Detail) - Troubled Debt Restructurings Modified (USD $)
|
12 Months Ended | 3 Months Ended | 3 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2013
|
Dec. 31, 2012
|
Mar. 31, 2013
Accruing Troubled Debt Restructuring Member
Commercial Loans Member
|
Mar. 31, 2012
Accruing Troubled Debt Restructuring Member
Commercial Loans Member
|
Mar. 31, 2012
Accruing Troubled Debt Restructuring Member
Commercial Mortgage Loans [Member]
|
Mar. 31, 2013
Accruing Troubled Debt Restructuring Member
Commercial Mortgage Loans [Member]
|
Mar. 31, 2013
Accruing Troubled Debt Restructuring Member
Residential Mortgage Loans [Member]
|
Mar. 31, 2012
Accruing Troubled Debt Restructuring Member
Residential Mortgage Loans [Member]
|
Mar. 31, 2012
Accruing Troubled Debt Restructuring Member
Total [Member]
|
Mar. 31, 2013
Accruing Troubled Debt Restructuring Member
Total [Member]
|
Mar. 31, 2013
Accruing Troubled Debt Restructuring Member
|
Dec. 31, 2012
Accruing Troubled Debt Restructuring Member
|
Mar. 31, 2012
Accruing Troubled Debt Restructuring Member
|
Dec. 31, 2011
Accruing Troubled Debt Restructuring Member
|
|
No. of Loans | 4 | 5 | 9 | 2 | 6 | 2 | 16 | 12 | ||||||
Pre-Modification Recorded Investment | $ 4,007,000 | $ 1,988,000 | $ 26,693,000 | $ 1,175,000 | $ 1,696,000 | $ 1,587,000 | $ 30,268,000 | $ 6,878,000 | ||||||
Post-Modification Recorded Investment | 4,007,000 | 1,988,000 | 23,375,000 | 1,175,000 | 1,696,000 | 1,587,000 | 26,950,000 | 6,878,000 | 130,215,000 | 144,695,000 | 143,233,000 | 120,016,000 | ||
Charge-offs | 0 | 3,318,000 | 3,318,000 | |||||||||||
Specific Reserve | $ 17,357,000 | $ 12,183,000 | $ 61,000 | $ 68,000 | $ 268,000 | $ 10,000 | $ 265,000 | $ 336,000 | $ 336,000 |
Note 11 - Fair Value Measurements (Detail) (USD $)
|
3 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2013
|
Dec. 31, 2012
|
Mar. 31, 2013
Warrants Outstanding [Member]
Minimum [Member]
|
Mar. 31, 2013
Warrants Outstanding [Member]
Maximum [Member]
|
Mar. 31, 2013
Minimum [Member]
|
Mar. 31, 2013
Maximum [Member]
|
Mar. 31, 2012
Estimate of Fair Value, Fair Value Disclosure [Member]
|
Mar. 31, 2013
Accounts Receivable Collateral [Member]
|
Mar. 31, 2013
Inventory Collateral [Member]
|
|
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Warrants (in Dollars) | $ 98,000 | $ 104,000 | |||||||
Other Real Estate, Foreclosed Assets, and Repossessed Assets (in Dollars) | $ 45,316,000 | $ 46,384,000 | $ 45,300,000 | ||||||
Collateral Discount Rates | 45.00% | 65.00% | |||||||
Estimated Sales Cost Applied To Collateral | 3.00% | 6.00% | |||||||
Expected Life of Warrants | 1 year | 4 years | |||||||
Fair Value Assumptions, Risk Free Interest Rate | 0.25% | 0.56% | |||||||
Fair Value Assumptions, Expected Volatility Rate | 12.60% | 17.40% |
Note 7 - Loans (Tables)
|
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2013
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impaired Financing Receivables [Table Text Block] |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Past Due Financing Receivables [Table Text Block] |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Troubled Debt Restructurings on Financing Receivables [Table Text Block] |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity Within The Troubled Debt Resturings [Table Text Block] |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing Receivable Credit Quality Indicators [Table Text Block] |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Credit Losses on Financing Receivables [Table Text Block] |
|
Note 7 - Loans (Detail) - Portfolio by Risk Rating (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
Dec. 31, 2012
|
---|---|---|
Gross Loans | $ 7,364,340 | $ 7,429,147 |
Pass [Member] | Commercial Loans Member
|
||
Gross Loans | 1,870,832 | 1,944,989 |
Pass [Member] | Real Estate Construction Loans [Member]
|
||
Gross Loans | 120,395 | 109,269 |
Pass [Member] | Commercial Mortgage Loans [Member]
|
||
Gross Loans | 3,360,744 | 3,344,783 |
Pass [Member] | Residential Mortgage And Equity Lines Member
|
||
Gross Loans | 1,358,500 | 1,322,768 |
Pass [Member] | Installment And Other Loans Member
|
||
Gross Loans | 13,982 | 12,556 |
Pass [Member] | Total [Member]
|
||
Gross Loans | 6,724,453 | 6,734,365 |
Special Mention [Member] | Commercial Loans Member
|
||
Gross Loans | 72,872 | 76,776 |
Special Mention [Member] | Real Estate Construction Loans [Member]
|
||
Gross Loans | 17,692 | 18,000 |
Special Mention [Member] | Commercial Mortgage Loans [Member]
|
||
Gross Loans | 148,987 | 162,455 |
Special Mention [Member] | Residential Mortgage And Equity Lines Member
|
||
Gross Loans | 1,915 | 816 |
Special Mention [Member] | Installment And Other Loans Member
|
||
Gross Loans | 0 | 0 |
Special Mention [Member] | Total [Member]
|
||
Gross Loans | 241,466 | 258,047 |
Substandard [Member] | Commercial Loans Member
|
||
Gross Loans | 82,957 | 94,077 |
Substandard [Member] | Real Estate Construction Loans [Member]
|
||
Gross Loans | 37,212 | 45,171 |
Substandard [Member] | Commercial Mortgage Loans [Member]
|
||
Gross Loans | 249,608 | 261,214 |
Substandard [Member] | Residential Mortgage And Equity Lines Member
|
||
Gross Loans | 14,106 | 16,084 |
Substandard [Member] | Installment And Other Loans Member
|
||
Gross Loans | 0 | 0 |
Substandard [Member] | Total [Member]
|
||
Gross Loans | 383,883 | 416,546 |
Doubtful [Member] | Commercial Loans Member
|
||
Gross Loans | 5,128 | 11,265 |
Doubtful [Member] | Real Estate Construction Loans [Member]
|
||
Gross Loans | 8,768 | 8,510 |
Doubtful [Member] | Commercial Mortgage Loans [Member]
|
||
Gross Loans | 241 | 0 |
Doubtful [Member] | Residential Mortgage And Equity Lines Member
|
||
Gross Loans | 401 | 414 |
Doubtful [Member] | Installment And Other Loans Member
|
||
Gross Loans | 0 | 0 |
Doubtful [Member] | Total [Member]
|
||
Gross Loans | 14,538 | 20,189 |
Total [Member] | Commercial Loans Member
|
||
Gross Loans | 2,031,789 | 2,127,107 |
Total [Member] | Real Estate Construction Loans [Member]
|
||
Gross Loans | 184,067 | 180,950 |
Total [Member] | Commercial Mortgage Loans [Member]
|
||
Gross Loans | 3,759,580 | 3,768,452 |
Total [Member] | Residential Mortgage And Equity Lines Member
|
||
Gross Loans | 1,374,922 | 1,340,082 |
Total [Member] | Installment And Other Loans Member
|
||
Gross Loans | 13,982 | 12,556 |
Total [Member] | Total [Member]
|
||
Gross Loans | 7,364,340 | 7,429,147 |
Commercial Loans Member
|
||
Gross Loans | 2,031,789 | 2,127,107 |
Real Estate Construction Loans [Member]
|
||
Gross Loans | 184,067 | 180,950 |
Commercial Mortgage Loans [Member]
|
||
Gross Loans | 3,759,580 | 3,768,452 |
Residential Mortgage And Equity Lines Member
|
||
Gross Loans | 1,374,922 | 1,340,082 |
Installment And Other Loans Member
|
||
Gross Loans | 13,982 | 12,556 |
Total [Member]
|
||
Gross Loans | $ 7,364,340 | $ 7,429,147 |
Note 7 - Loans (Detail) - Components of Loans in Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
Dec. 31, 2012
|
---|---|---|
Type of Loans: | ||
Gross Loans | $ 7,364,340 | $ 7,429,147 |
Allowance for loan losses | (178,692) | (183,322) |
Unamortized deferred loan fees | (10,186) | (10,238) |
Total loans, net | 7,175,462 | 7,235,587 |
Commercial Loans Member
|
||
Type of Loans: | ||
Gross Loans | 2,031,789 | 2,127,107 |
Residential Mortgage Loans [Member]
|
||
Type of Loans: | ||
Gross Loans | 1,183,460 | 1,146,230 |
Commercial Mortgage Loans [Member]
|
||
Type of Loans: | ||
Gross Loans | 3,759,580 | 3,768,452 |
Equity Lines [Member]
|
||
Type of Loans: | ||
Gross Loans | 191,462 | 193,852 |
Real Estate Construction Loans [Member]
|
||
Type of Loans: | ||
Gross Loans | 184,067 | 180,950 |
Installment And Other Loans Member
|
||
Type of Loans: | ||
Gross Loans | $ 13,982 | $ 12,556 |
Note 7 - Loans (Detail) - Troubled Debt Restructuring by Type of Concession and Type of Loans (Accruing Troubled Debt Restructuring Member, USD $)
In Thousands, unless otherwise specified |
Mar. 31, 2013
|
Dec. 31, 2012
|
---|---|---|
Accruing TDRs | $ 130,215 | $ 144,695 |
Principal Deferral [Member] | Commercial Loans Member
|
||
Accruing TDRs | 491 | 531 |
Principal Deferral [Member] | Real Estate Construction Loans [Member]
|
||
Accruing TDRs | 0 | 0 |
Principal Deferral [Member] | Commercial Mortgage Loans [Member]
|
||
Accruing TDRs | 27,565 | 27,003 |
Principal Deferral [Member] | Residential Construction [Member]
|
||
Accruing TDRs | 1,455 | 1,461 |
Principal Deferral [Member]
|
||
Accruing TDRs | 29,511 | 28,995 |
Rate Reduction [Member] | Commercial Loans Member
|
||
Accruing TDRs | 2,994 | 3,020 |
Rate Reduction [Member] | Real Estate Construction Loans [Member]
|
||
Accruing TDRs | 0 | 0 |
Rate Reduction [Member] | Commercial Mortgage Loans [Member]
|
||
Accruing TDRs | 16,153 | 16,656 |
Rate Reduction [Member] | Residential Construction [Member]
|
||
Accruing TDRs | 1,604 | 1,024 |
Rate Reduction [Member]
|
||
Accruing TDRs | 20,751 | 20,700 |
Rate Reduction and Payment Deferral [Member] | Commercial Loans Member
|
||
Accruing TDRs | 2,797 | 413 |
Rate Reduction and Payment Deferral [Member] | Real Estate Construction Loans [Member]
|
||
Accruing TDRs | 5,834 | 5,834 |
Rate Reduction and Payment Deferral [Member] | Commercial Mortgage Loans [Member]
|
||
Accruing TDRs | 67,812 | 85,783 |
Rate Reduction and Payment Deferral [Member] | Residential Construction [Member]
|
||
Accruing TDRs | 3,510 | 2,231 |
Rate Reduction and Payment Deferral [Member]
|
||
Accruing TDRs | 79,953 | 94,261 |
Rate Reduction and Forgiveness of Principal [Member] | Commercial Loans Member
|
||
Accruing TDRs | 0 | |
Rate Reduction and Forgiveness of Principal [Member] | Real Estate Construction Loans [Member]
|
||
Accruing TDRs | 0 | |
Rate Reduction and Forgiveness of Principal [Member] | Commercial Mortgage Loans [Member]
|
||
Accruing TDRs | 739 | |
Rate Reduction and Forgiveness of Principal [Member] | Residential Construction [Member]
|
||
Accruing TDRs | 0 | |
Rate Reduction and Forgiveness of Principal [Member]
|
||
Accruing TDRs | 739 | |
Commercial Loans Member
|
||
Accruing TDRs | 6,282 | 3,964 |
Real Estate Construction Loans [Member]
|
||
Accruing TDRs | 5,834 | 5,834 |
Commercial Mortgage Loans [Member]
|
||
Accruing TDRs | 111,530 | 130,181 |
Residential Construction [Member]
|
||
Accruing TDRs | $ 6,569 | $ 4,716 |
Note 4 - Earnings per Share
|
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Text Block] |
4.
Earnings
per Share
Basic
earnings per share exclude dilution and is computed by
dividing net income available to common stockholders by the
weighted-average number of common shares outstanding for the
period. Diluted earnings per share reflects the
potential dilution that could occur if securities or other
contracts to issue common stock were exercised or converted
into common stock and resulted in the issuance of common
stock that then shared in earnings. Potential
dilution is excluded from computation of diluted per-share
amounts when a net loss from operations exists.
Outstanding
stock options with anti-dilutive effect were not included in
the computation of diluted earnings per
share. The following table sets forth
earnings per common share calculations:
|
Note 14 - Financial Derivatives (Detail) (USD $)
|
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2013
|
Dec. 31, 2012
|
|
Positive Fair Value Member
|
||
Notional Amount Of Option Contract | $ 1,600,000 | $ 209,000 |
Open Option Contracts Written, at Fair Value | 5,700 | 2,000 |
Sum of Spot and Forward Contract Notional Amount | 211,700,000 | 188,100,000 |
Increase Decrease in Fair Value | 3,000,000 | 2,900,000 |
Negative Fair Value Member
|
||
Sum of Spot and Forward Contract Notional Amount | 165,600,000 | 133,700,000 |
Increase Decrease in Fair Value | $ 1,900,000 | $ 1,600,000 |