þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Illinois | 36-3873352 |
(State of incorporation or organization) | (I.R.S. Employer Identification No.) |
Large accelerated filer | þ | Accelerated filer | ¨ | ||||
Non-accelerated filer | ¨ | (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
Page | ||
PART I. — FINANCIAL INFORMATION | ||
ITEM 1. | ||
ITEM 2. | ||
ITEM 3. | ||
ITEM 4. | ||
PART II. — OTHER INFORMATION | ||
ITEM 1. | Legal Proceedings | NA |
ITEM 1A. | ||
ITEM 2. | ||
ITEM 3. | Defaults Upon Senior Securities | NA |
ITEM 4. | Mine Safety Disclosures | NA |
ITEM 5. | Other Information | NA |
ITEM 6. | ||
WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CONDITION | |||||||||||
(Unaudited) | (Unaudited) | ||||||||||
(In thousands, except share data) | September 30, 2012 | December 31, 2011 | September 30, 2011 | ||||||||
Assets | |||||||||||
Cash and due from banks | $ | 186,752 | $ | 148,012 | $ | 147,270 | |||||
Federal funds sold and securities purchased under resale agreements | 26,062 | 21,692 | 13,452 | ||||||||
Interest-bearing deposits with other banks (no balance restricted for securitization investors at September 30, 2012, and a balance restricted for securitization investors of $272,592 at December 31, 2011 and $37,165 at September 30, 2011) | 934,430 | 749,287 | 1,101,353 | ||||||||
Available-for-sale securities, at fair value | 1,256,768 | 1,291,797 | 1,267,682 | ||||||||
Trading account securities | 635 | 2,490 | 297 | ||||||||
Federal Home Loan Bank and Federal Reserve Bank stock | 80,687 | 100,434 | 99,749 | ||||||||
Brokerage customer receivables | 30,633 | 27,925 | 27,935 | ||||||||
Mortgage loans held-for-sale, at fair value | 548,300 | 306,838 | 204,081 | ||||||||
Mortgage loans held-for-sale, at lower of cost or market | 21,685 | 13,686 | 8,955 | ||||||||
Loans, net of unearned income, excluding covered loans | 11,489,900 | 10,521,377 | 10,272,711 | ||||||||
Covered loans | 657,525 | 651,368 | 680,075 | ||||||||
Total loans | 12,147,425 | 11,172,745 | 10,952,786 | ||||||||
Less: Allowance for loan losses | 112,287 | 110,381 | 118,649 | ||||||||
Less: Allowance for covered loan losses | 21,926 | 12,977 | 12,496 | ||||||||
Net loans (no balance restricted for securitization investors at September 30, 2012, and a balance restricted for securitization investors of $411,532 at December 31, 2011 and $643,466 at September 30, 2011) | 12,013,212 | 11,049,387 | 10,821,641 | ||||||||
Premises and equipment, net | 461,905 | 431,512 | 412,478 | ||||||||
FDIC indemnification asset | 238,305 | 344,251 | 379,306 | ||||||||
Accrued interest receivable and other assets | 557,884 | 444,912 | 468,711 | ||||||||
Trade date securities receivable | 307,295 | 634,047 | 637,112 | ||||||||
Goodwill | 331,634 | 305,468 | 302,369 | ||||||||
Other intangible assets | 22,405 | 22,070 | 22,413 | ||||||||
Total assets | $ | 17,018,592 | $ | 15,893,808 | $ | 15,914,804 | |||||
Liabilities and Shareholders’ Equity | |||||||||||
Deposits: | |||||||||||
Non-interest bearing | $ | 2,162,215 | $ | 1,785,433 | $ | 1,631,709 | |||||
Interest bearing | 11,685,750 | 10,521,834 | 10,674,299 | ||||||||
Total deposits | 13,847,965 | 12,307,267 | 12,306,008 | ||||||||
Notes payable | 2,275 | 52,822 | 3,004 | ||||||||
Federal Home Loan Bank advances | 414,211 | 474,481 | 474,570 | ||||||||
Other borrowings | 377,229 | 443,753 | 448,082 | ||||||||
Secured borrowings—owed to securitization investors | — | 600,000 | 600,000 | ||||||||
Subordinated notes | 15,000 | 35,000 | 40,000 | ||||||||
Junior subordinated debentures | 249,493 | 249,493 | 249,493 | ||||||||
Trade date securities payable | 412 | 47 | 73,874 | ||||||||
Accrued interest payable and other liabilities | 350,707 | 187,412 | 191,586 | ||||||||
Total liabilities | 15,257,292 | 14,350,275 | 14,386,617 | ||||||||
Shareholders’ Equity: | |||||||||||
Preferred stock, no par value; 20,000,000 shares authorized: | |||||||||||
Series A - $1,000 liquidation value; 50,000 shares issued and outstanding at September 30, 2012, December 31, 2011 and September 30, 2011 | 49,871 | 49,768 | 49,736 | ||||||||
Series C - $1,000 liquidation value; 126,500 shares issued and outstanding at September 30, 2012, and no shares issued and outstanding at December 31, 2011 and September 30, 2011 | 126,500 | — | — | ||||||||
Common stock, no par value; $1.00 stated value; 100,000,000 shares authorized; 36,647,154 shares issued at September 30, 2012, 35,981,950 shares issued at December 31, 2011, and 35,926,137 shares issued at September 30, 2011 | 36,647 | 35,982 | 35,926 | ||||||||
Surplus | 1,018,417 | 1,001,316 | 997,854 | ||||||||
Treasury stock, at cost, 239,373 shares at September 30, 2012, 3,601 shares at December 31, 2011, and 2,071 shares at September 30, 2011 | (7,490 | ) | (112 | ) | (68 | ) | |||||
Retained earnings | 527,550 | 459,457 | 441,268 | ||||||||
Accumulated other comprehensive income (loss) | 9,805 | (2,878 | ) | 3,471 | |||||||
Total shareholders’ equity | 1,761,300 | 1,543,533 | 1,528,187 | ||||||||
Total liabilities and shareholders’ equity | $ | 17,018,592 | $ | 15,893,808 | $ | 15,914,804 |
WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
(In thousands, except per share data) | 2012 | 2011 | 2012 | 2011 | |||||||||||
Interest income | |||||||||||||||
Interest and fees on loans | $ | 149,271 | $ | 140,543 | $ | 436,926 | $ | 409,424 | |||||||
Interest bearing deposits with banks | 362 | 917 | 813 | 2,723 | |||||||||||
Federal funds sold and securities purchased under resale agreements | 7 | 28 | 25 | 83 | |||||||||||
Securities | 7,691 | 12,667 | 30,048 | 33,645 | |||||||||||
Trading account securities | 3 | 15 | 22 | 38 | |||||||||||
Federal Home Loan Bank and Federal Reserve Bank stock | 649 | 584 | 1,894 | 1,706 | |||||||||||
Brokerage customer receivables | 218 | 197 | 650 | 557 | |||||||||||
Total interest income | 158,201 | 154,951 | 470,378 | 448,176 | |||||||||||
Interest expense | |||||||||||||||
Interest on deposits | 16,794 | 21,893 | 52,097 | 68,253 | |||||||||||
Interest on Federal Home Loan Bank advances | 2,817 | 4,166 | 9,268 | 12,134 | |||||||||||
Interest on notes payable and other borrowings | 2,024 | 2,874 | 7,400 | 8,219 | |||||||||||
Interest on secured borrowings—owed to securitization investors | 795 | 3,003 | 5,087 | 9,037 | |||||||||||
Interest on subordinated notes | 67 | 168 | 362 | 574 | |||||||||||
Interest on junior subordinated debentures | 3,129 | 4,437 | 9,424 | 13,229 | |||||||||||
Total interest expense | 25,626 | 36,541 | 83,638 | 111,446 | |||||||||||
Net interest income | 132,575 | 118,410 | 386,740 | 336,730 | |||||||||||
Provision for credit losses | 18,799 | 29,290 | 56,890 | 83,821 | |||||||||||
Net interest income after provision for credit losses | 113,776 | 89,120 | 329,850 | 252,909 | |||||||||||
Non-interest income | |||||||||||||||
Wealth management | 13,252 | 11,994 | 39,046 | 32,831 | |||||||||||
Mortgage banking | 31,127 | 14,469 | 75,268 | 38,917 | |||||||||||
Service charges on deposit accounts | 4,235 | 4,085 | 12,437 | 10,990 | |||||||||||
Gains on available-for-sale securities, net | 409 | 225 | 2,334 | 1,483 | |||||||||||
Gain on bargain purchases, net | 6,633 | 27,390 | 7,418 | 37,974 | |||||||||||
Trading (losses) gains, net | (998 | ) | 591 | (1,780 | ) | 121 | |||||||||
Other | 8,287 | 8,493 | 26,180 | 22,470 | |||||||||||
Total non-interest income | 62,945 | 67,247 | 160,903 | 144,786 | |||||||||||
Non-interest expense | |||||||||||||||
Salaries and employee benefits | 75,280 | 61,863 | 212,449 | 171,041 | |||||||||||
Equipment | 5,888 | 4,501 | 16,754 | 13,174 | |||||||||||
Occupancy, net | 8,024 | 7,512 | 23,814 | 20,789 | |||||||||||
Data processing | 4,103 | 3,836 | 11,561 | 10,506 | |||||||||||
Advertising and marketing | 2,528 | 2,119 | 6,713 | 5,173 | |||||||||||
Professional fees | 4,653 | 5,085 | 12,104 | 13,164 | |||||||||||
Amortization of other intangible assets | 1,078 | 970 | 3,216 | 2,363 | |||||||||||
FDIC insurance | 3,549 | 3,100 | 10,383 | 10,899 | |||||||||||
OREO expenses, net | 3,808 | 5,134 | 16,834 | 17,519 | |||||||||||
Other | 15,637 | 12,201 | 45,664 | 37,008 | |||||||||||
Total non-interest expense | 124,548 | 106,321 | 359,492 | 301,636 | |||||||||||
Income before taxes | 52,173 | 50,046 | 131,261 | 96,059 | |||||||||||
Income tax expense | 19,871 | 19,844 | 50,154 | 37,705 | |||||||||||
Net income | $ | 32,302 | $ | 30,202 | $ | 81,107 | $ | 58,354 | |||||||
Preferred stock dividends and discount accretion | $ | 2,616 | $ | 1,032 | $ | 6,477 | $ | 3,096 | |||||||
Net income applicable to common shares | $ | 29,686 | $ | 29,170 | $ | 74,630 | $ | 55,258 | |||||||
Net income per common share—Basic | $ | 0.82 | $ | 0.82 | $ | 2.06 | $ | 1.57 | |||||||
Net income per common share—Diluted | $ | 0.66 | $ | 0.65 | $ | 1.70 | $ | 1.26 | |||||||
Cash dividends declared per common share | $ | 0.09 | $ | 0.09 | $ | 0.18 | $ | 0.18 | |||||||
Weighted average common shares outstanding | 36,381 | 35,550 | 36,305 | 35,152 | |||||||||||
Dilutive potential common shares | 12,295 | 10,551 | 11,292 | 8,683 | |||||||||||
Average common shares and dilutive common shares | 48,676 | 46,101 | 47,597 | 43,835 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
(In thousands) | 2012 | 2011 | 2012 | 2011 | |||||||||||
Net income | $ | 32,302 | $ | 30,202 | $ | 81,107 | $ | 58,354 | |||||||
Unrealized gains on securities | |||||||||||||||
Before tax | 3,921 | 1,212 | 8,661 | 15,225 | |||||||||||
Tax effect | (1,563 | ) | (565 | ) | (3,447 | ) | (6,125 | ) | |||||||
Net of tax | 2,358 | 647 | 5,214 | 9,100 | |||||||||||
Less: Reclassification of net gains included in net income | |||||||||||||||
Before tax | 409 | 225 | 2,334 | 1,483 | |||||||||||
Tax effect | (162 | ) | (88 | ) | (934 | ) | (583 | ) | |||||||
Net of tax | 247 | 137 | 1,400 | 900 | |||||||||||
Net unrealized gains on securities | 2,111 | 510 | 3,814 | 8,200 | |||||||||||
Unrealized (losses) gains on derivative instruments | |||||||||||||||
Before tax | (293 | ) | (2,088 | ) | 1,439 | 1,115 | |||||||||
Tax effect | 119 | 917 | (568 | ) | (332 | ) | |||||||||
Net unrealized (losses) gains on derivative instruments | (174 | ) | (1,171 | ) | 871 | 783 | |||||||||
Foreign currency translation adjustment | |||||||||||||||
Before tax | 8,438 | — | 11,139 | — | |||||||||||
Tax effect | (2,541 | ) | — | (3,141 | ) | — | |||||||||
Net foreign currency translation adjustment | 5,897 | — | 7,998 | — | |||||||||||
Total other comprehensive income (loss) | 7,834 | (661 | ) | 12,683 | 8,983 | ||||||||||
Comprehensive income | $ | 40,136 | $ | 29,541 | 93,790 | 67,337 |
WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (UNAUDITED) | |||||||||||||||||||||||||||
(In thousands) | Preferred stock | Common stock | Surplus | Treasury stock | Retained earnings | Accumulated other comprehensive income (loss) | Total shareholders’ equity | ||||||||||||||||||||
Balance at December 31, 2010 | $ | 49,640 | $ | 34,864 | $ | 965,203 | $ | — | $ | 392,354 | $ | (5,512 | ) | $ | 1,436,549 | ||||||||||||
Net income | — | — | — | — | 58,354 | — | 58,354 | ||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | — | 8,983 | 8,983 | ||||||||||||||||||||
Cash dividends declared on common stock | — | — | — | — | (6,344 | ) | — | (6,344 | ) | ||||||||||||||||||
Dividends on preferred stock | — | — | — | — | (3,000 | ) | — | (3,000 | ) | ||||||||||||||||||
Accretion on preferred stock | 96 | — | — | — | (96 | ) | — | — | |||||||||||||||||||
Common stock repurchases | — | — | — | (68 | ) | — | — | (68 | ) | ||||||||||||||||||
Stock-based compensation | — | — | 3,433 | — | — | — | 3,433 | ||||||||||||||||||||
Common stock issued for: | |||||||||||||||||||||||||||
Acquisitions | — | 883 | 25,603 | — | — | — | 26,486 | ||||||||||||||||||||
Exercise of stock options and warrants | — | 49 | 632 | — | — | — | 681 | ||||||||||||||||||||
Restricted stock awards | — | 38 | (41 | ) | — | — | — | (3 | ) | ||||||||||||||||||
Employee stock purchase plan | — | 67 | 1,988 | — | — | — | 2,055 | ||||||||||||||||||||
Director compensation plan | — | 25 | 1,036 | — | — | — | 1,061 | ||||||||||||||||||||
Balance at September 30, 2011 | $ | 49,736 | $ | 35,926 | $ | 997,854 | $ | (68 | ) | $ | 441,268 | $ | 3,471 | $ | 1,528,187 | ||||||||||||
Balance at December 31, 2011 | $ | 49,768 | $ | 35,982 | $ | 1,001,316 | $ | (112 | ) | $ | 459,457 | $ | (2,878 | ) | $ | 1,543,533 | |||||||||||
Net income | — | — | — | — | 81,107 | — | 81,107 | ||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | — | 12,683 | 12,683 | ||||||||||||||||||||
Cash dividends declared on common stock | — | — | — | — | (6,537 | ) | — | (6,537 | ) | ||||||||||||||||||
Dividends on preferred stock | — | — | — | — | (6,374 | ) | — | (6,374 | ) | ||||||||||||||||||
Accretion on preferred stock | 103 | — | — | — | (103 | ) | — | — | |||||||||||||||||||
Stock-based compensation | — | — | 7,260 | — | — | — | 7,260 | ||||||||||||||||||||
Issuance of Series C preferred stock | 126,500 | — | (3,810 | ) | — | — | — | 122,690 | |||||||||||||||||||
Common stock issued for: | |||||||||||||||||||||||||||
Acquisitions | — | 26 | 868 | — | — | — | 894 | ||||||||||||||||||||
Exercise of stock options and warrants | — | 439 | 10,050 | (6,391 | ) | — | — | 4,098 | |||||||||||||||||||
Restricted stock awards | — | 123 | (152 | ) | (987 | ) | — | — | (1,016 | ) | |||||||||||||||||
Employee stock purchase plan | — | 55 | 1,777 | — | — | — | 1,832 | ||||||||||||||||||||
Director compensation plan | — | 22 | 1,108 | — | — | — | 1,130 | ||||||||||||||||||||
Balance at September 30, 2012 | $ | 176,371 | $ | 36,647 | $ | 1,018,417 | $ | (7,490 | ) | $ | 527,550 | $ | 9,805 | $ | 1,761,300 |
Nine Months Ended | |||||||
September 30, | |||||||
(In thousands) | 2012 | 2011 | |||||
Operating Activities: | |||||||
Net income | $ | 81,107 | $ | 58,354 | |||
Adjustments to reconcile net income to net cash (used for) provided by operating activities | |||||||
Provision for credit losses | 56,890 | 83,821 | |||||
Depreciation and amortization | 17,624 | 14,128 | |||||
Stock-based compensation expense | 7,260 | 3,433 | |||||
Tax benefit from stock-based compensation arrangements | 1,279 | 183 | |||||
Excess tax benefits from stock-based compensation arrangements | (868 | ) | (760 | ) | |||
Net amortization of premium on securities | 4,745 | 6,308 | |||||
Mortgage servicing rights fair value change and amortization, net | (3,469 | ) | 3,626 | ||||
Originations and purchases of mortgage loans held-for-sale | (2,688,002 | ) | (1,662,368 | ) | |||
Proceeds from sales of mortgage loans held-for-sale | 2,498,525 | 1,846,396 | |||||
Bank owned life insurance income, net of claims | (2,234 | ) | (1,888 | ) | |||
Decrease in trading securities, net | 1,855 | 4,582 | |||||
Net increase in brokerage customer receivables | (2,708 | ) | (3,386 | ) | |||
Gains on mortgage loans sold | (59,984 | ) | (25,617 | ) | |||
Gains on available-for-sale securities, net | (2,334 | ) | (1,483 | ) | |||
Gain on bargain purchases, net | (7,418 | ) | (37,974 | ) | |||
Loss on sales of premises and equipment, net | 702 | 10 | |||||
Decrease in accrued interest receivable and other assets, net | 30,377 | 7,178 | |||||
Increase (decrease) in accrued interest payable and other liabilities, net | 140,857 | (2,481 | ) | ||||
Net Cash Provided by Operating Activities | 74,204 | 292,062 | |||||
Investing Activities: | |||||||
Proceeds from maturities of available-for-sale securities | 473,331 | 1,189,834 | |||||
Proceeds from sales of available-for-sale securities | 2,059,154 | 605,026 | |||||
Purchases of available-for-sale securities | (2,079,665 | ) | (2,015,888 | ) | |||
Net cash received for acquisitions | 30,220 | 91,073 | |||||
Proceeds received from the FDIC related to reimbursements on covered assets | 152,594 | 65,038 | |||||
Net increase in interest-bearing deposits with banks | (113,963 | ) | (211,382 | ) | |||
Net increase in loans | (739,941 | ) | (520,770 | ) | |||
Purchases of premises and equipment, net | (45,533 | ) | (54,769 | ) | |||
Net Cash Used for Investing Activities | (263,803 | ) | (851,838 | ) | |||
Financing Activities: | |||||||
Increase in deposit accounts | 914,513 | 383,001 | |||||
(Decrease) increase in other borrowings, net | (118,552 | ) | 180,723 | ||||
Decrease in Federal Home Loan Bank advances, net | (60,000 | ) | — | ||||
Repayment of subordinated notes | (20,000 | ) | (10,000 | ) | |||
Payoff of secured borrowing | (600,000 | ) | — | ||||
Excess tax benefits from stock-based compensation arrangements | 868 | 760 | |||||
Net proceeds from issuance of preferred stock | 122,690 | — | |||||
Issuance of common shares resulting from exercise of stock options, employee stock purchase plan and conversion of common stock warrants | 12,143 | 2,846 | |||||
Common stock repurchases | (7,378 | ) | (68 | ) | |||
Dividends paid | (11,575 | ) | (9,344 | ) | |||
Net Cash Provided by Financing Activities | 232,709 | 547,918 | |||||
Net Increase (Decrease) in Cash and Cash Equivalents | 43,110 | (11,858 | ) | ||||
Cash and Cash Equivalents at Beginning of Period | 169,704 | 172,580 | |||||
Cash and Cash Equivalents at End of Period | $ | 212,814 | $ | 160,722 |
(Dollars in thousands) | Lincoln Park | Wheatland | Ravenswood | Community First Bank - Chicago | The Bank of Commerce | First Chicago | Charter National | Second Federal | First United Bank | ||||||||||||||||||||||||||
Date of acquisition | April 23, 2010 | April 23, 2010 | August 6, 2010 | February 4, 2011 | March 25, 2011 | July 8, 2011 | February 10, 2012 | July 20, 2012 | September 28, 2012 | ||||||||||||||||||||||||||
Fair value of assets acquired, at the acquisition date | $ | 157,078 | $ | 343,870 | $ | 173,919 | $ | 50,891 | $ | 173,986 | $ | 768,873 | $ | 92,409 | $ | 171,625 | $ | 328,142 | |||||||||||||||||
Fair value of loans acquired, at the acquisition date | 103,420 | 175,277 | 97,956 | 27,332 | 77,887 | 330,203 | 45,555 | — | 78,832 | ||||||||||||||||||||||||||
Fair value of liabilities assumed, at the acquisition date | 192,018 | 415,560 | 122,943 | 49,779 | 168,472 | 741,508 | 91,570 | 171,582 | 321,552 | ||||||||||||||||||||||||||
Fair value of reimbursable losses, at the acquisition date(1) | 23,289 | 90,478 | 43,996 | 6,672 | 48,853 | 273,311 | 13,164 | — | 65,100 | ||||||||||||||||||||||||||
Gain on bargain purchase recognized | 4,179 | 22,315 | 6,842 | 1,957 | 8,627 | 27,390 | 785 | 43 | 6,590 |
Three Months Ended | Nine Months Ended | ||||||||||||||
(Dollars in thousands) | September 30, 2012 | September 30, 2011 | September 30, 2012 | September 30, 2011 | |||||||||||
Balance at beginning of period | $ | 222,568 | $ | 110,049 | $ | 344,251 | $ | 118,182 | |||||||
Additions from acquisitions | 65,100 | 273,311 | 78,264 | 328,837 | |||||||||||
Additions from reimbursable expenses | 5,669 | 3,707 | 18,646 | 8,778 | |||||||||||
Accretion | (1,139 | ) | 393 | (3,919 | ) | 1,057 | |||||||||
Changes in expected reimbursements from the FDIC for changes in expected credit losses | (16,579 | ) | (344 | ) | (46,343 | ) | (12,510 | ) | |||||||
Payments received from the FDIC | (37,314 | ) | (7,810 | ) | (152,594 | ) | (65,038 | ) | |||||||
Balance at end of period | $ | 238,305 | $ | 379,306 | $ | 238,305 | $ | 379,306 |
September 30, 2012 | |||||||||||||||
(Dollars in thousands) | Amortized Cost | Gross unrealized gains | Gross unrealized losses | Fair Value | |||||||||||
U.S. Treasury | $ | 25,045 | $ | 211 | $ | — | $ | 25,256 | |||||||
U.S. Government agencies | 626,725 | 3,833 | (2,374 | ) | 628,184 | ||||||||||
Municipal | 96,696 | 2,711 | (23 | ) | 99,384 | ||||||||||
Corporate notes and other: | |||||||||||||||
Financial issuers | 142,158 | 2,550 | (5,170 | ) | 139,538 | ||||||||||
Other | 17,200 | 251 | — | 17,451 | |||||||||||
Mortgage-backed: (1) | |||||||||||||||
Agency | 225,393 | 13,733 | — | 239,126 | |||||||||||
Non-agency CMOs | 66,422 | 690 | — | 67,112 | |||||||||||
Other equity securities | 43,737 | 216 | (3,236 | ) | 40,717 | ||||||||||
Total available-for-sale securities | $ | 1,243,376 | $ | 24,195 | $ | (10,803 | ) | $ | 1,256,768 |
December 31, 2011 | |||||||||||||||
Amortized Cost | Gross unrealized gains | Gross unrealized losses | Fair Value | ||||||||||||
(Dollars in thousands) | |||||||||||||||
U.S. Treasury | $ | 16,028 | $ | 145 | $ | — | $ | 16,173 | |||||||
U.S. Government agencies | 760,533 | 5,596 | (213 | ) | 765,916 | ||||||||||
Municipal | 57,962 | 2,159 | (23 | ) | 60,098 | ||||||||||
Corporate notes and other: | |||||||||||||||
Financial issuers | 149,229 | 1,914 | (8,499 | ) | 142,644 | ||||||||||
Other | 27,070 | 287 | (65 | ) | 27,292 | ||||||||||
Mortgage-backed: (1) | |||||||||||||||
Agency | 206,549 | 12,078 | (15 | ) | 218,612 | ||||||||||
Non-agency CMOs | 29,767 | 175 | (3 | ) | 29,939 | ||||||||||
Other equity securities | 37,595 | 48 | (6,520 | ) | 31,123 | ||||||||||
Total available-for-sale securities | $ | 1,284,733 | $ | 22,402 | $ | (15,338 | ) | $ | 1,291,797 |
(1) | Consisting entirely of residential mortgage-backed securities, none of which are subprime. |
Continuous unrealized losses existing for less than 12 months | Continuous unrealized losses existing for greater than 12 months | Total | |||||||||||||||||||||
(Dollars in thousands) | Fair Value | Unrealized losses | Fair Value | Unrealized losses | Fair Value | Unrealized losses | |||||||||||||||||
U.S. Treasury | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
U.S. Government agencies | 216,383 | (2,374 | ) | — | — | 216,383 | (2,374 | ) | |||||||||||||||
Municipal | 14,177 | (22 | ) | 711 | (1 | ) | 14,888 | (23 | ) | ||||||||||||||
Corporate notes and other: | |||||||||||||||||||||||
Financial issuers | 21,248 | (1,095 | ) | 81,838 | (4,075 | ) | 103,086 | (5,170 | ) | ||||||||||||||
Other | — | — | — | — | — | — | |||||||||||||||||
Mortgage-backed: | |||||||||||||||||||||||
Agency | — | — | — | — | — | — | |||||||||||||||||
Non-agency CMOs | — | — | — | — | — | — | |||||||||||||||||
Other equity securities | 22,164 | (3,236 | ) | — | — | 22,164 | (3,236 | ) | |||||||||||||||
Total | $ | 273,972 | $ | (6,727 | ) | $ | 82,549 | $ | (4,076 | ) | $ | 356,521 | $ | (10,803 | ) |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
(Dollars in thousands) | 2012 | 2011 | 2012 | 2011 | |||||||||||
Realized gains | $ | 413 | $ | 292 | $ | 2,350 | $ | 1,550 | |||||||
Realized losses | (4 | ) | (67 | ) | (16 | ) | (67 | ) | |||||||
Net realized gains | $ | 409 | $ | 225 | $ | 2,334 | $ | 1,483 | |||||||
Other than temporary impairment charges | — | — | — | — | |||||||||||
Gains on available-for-sale securities, net | $ | 409 | $ | 225 | $ | 2,334 | $ | 1,483 | |||||||
Proceeds from sales of available-for-sale securities | $ | 694,608 | $ | 551,515 | $ | 2,059,154 | $ | 605,026 |
September 30, 2012 | December 31, 2011 | ||||||||||||||
(Dollars in thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||
Due in one year or less | $ | 83,658 | $ | 83,863 | $ | 121,400 | $ | 121,662 | |||||||
Due in one to five years | 471,863 | 471,747 | 532,828 | 530,632 | |||||||||||
Due in five to ten years | 135,580 | 137,116 | 95,279 | 95,508 | |||||||||||
Due after ten years | 216,723 | 217,087 | 261,315 | 264,321 | |||||||||||
Mortgage-backed | 291,815 | 306,238 | 236,316 | 248,551 | |||||||||||
Other equity securities | 43,737 | 40,717 | 37,595 | 31,123 | |||||||||||
Total available-for-sale securities | $ | 1,243,376 | $ | 1,256,768 | $ | 1,284,733 | $ | 1,291,797 |
September 30, | December 31, | September 30, | |||||||||
(Dollars in thousands) | 2012 | 2011 | 2011 | ||||||||
Balance: | |||||||||||
Commercial | $ | 2,771,053 | $ | 2,498,313 | $ | 2,337,098 | |||||
Commercial real estate | 3,699,712 | 3,514,261 | 3,465,321 | ||||||||
Home equity | 807,592 | 862,345 | 879,180 | ||||||||
Residential real estate | 376,678 | 350,289 | 326,207 | ||||||||
Premium finance receivables—commercial | 1,982,945 | 1,412,454 | 1,417,572 | ||||||||
Premium finance receivables—life insurance | 1,665,620 | 1,695,225 | 1,671,443 | ||||||||
Indirect consumer | 77,378 | 64,545 | 62,452 | ||||||||
Consumer and other | 108,922 | 123,945 | 113,438 | ||||||||
Total loans, net of unearned income, excluding covered loans | $ | 11,489,900 | $ | 10,521,377 | $ | 10,272,711 | |||||
Covered loans | 657,525 | 651,368 | 680,075 | ||||||||
Total loans | $ | 12,147,425 | $ | 11,172,745 | $ | 10,952,786 | |||||
Mix: | |||||||||||
Commercial | 23 | % | 22 | % | 21 | % | |||||
Commercial real estate | 30 | 31 | 32 | ||||||||
Home equity | 7 | 8 | 8 | ||||||||
Residential real estate | 3 | 3 | 3 | ||||||||
Premium finance receivables—commercial | 16 | 13 | 13 | ||||||||
Premium finance receivables—life insurance | 14 | 15 | 15 | ||||||||
Indirect consumer | 1 | 1 | 1 | ||||||||
Consumer and other | 1 | 1 | 1 | ||||||||
Total loans, net of unearned income, excluding covered loans | 95 | % | 94 | % | 94 | % | |||||
Covered loans | 5 | 6 | 6 | ||||||||
Total loans | 100 | % | 100 | % | 100 | % |
September 30, 2012 | December 31, 2011 | ||||||||||||||
Unpaid Principal | Carrying | Unpaid Principal | Carrying | ||||||||||||
(Dollars in thousands) | Balance | Value | Balance | Value | |||||||||||
Bank acquisitions | $ | 812,285 | $ | 607,300 | $ | 866,874 | $ | 596,946 | |||||||
Life insurance premium finance loans acquisition | 561,616 | 537,032 | 632,878 | 598,463 |
(Dollars in thousands) | Charter National | First United Bank | |||||
Contractually required payments including interest | $ | 40,475 | $ | 152,937 | |||
Less: Nonaccretable difference | 11,855 | 79,492 | |||||
Cash flows expected to be collected (1) | 28,620 | 73,445 | |||||
Less: Accretable yield | 2,288 | 6,052 | |||||
Fair value of loans acquired with evidence of credit quality deterioration since origination | $ | 26,332 | $ | 67,393 |
(1) | Represents undiscounted expected principal and interest cash flows at acquisition. |
Three Months Ended September 30, 2012 | Three Months Ended September 30, 2011 | ||||||||||||||
(Dollars in thousands) | Bank Acquisitions | Life Insurance Premium Finance Loans | Bank Acquisitions | Life Insurance Premium Finance Loans | |||||||||||
Accretable yield, beginning balance | $ | 171,801 | $ | 14,626 | $ | 80,748 | $ | 24,891 | |||||||
Acquisitions | 6,052 | — | 24,695 | — | |||||||||||
Accretable yield amortized to interest income | (12,266 | ) | (2,309 | ) | (9,820 | ) | (5,127 | ) | |||||||
Accretable yield amortized to indemnification asset (1) | (16,472 | ) | — | (4,367 | ) | — | |||||||||
Reclassification from non-accretable difference (2) | 4,636 | 2,951 | 2,145 | — | |||||||||||
(Decreases) increases in interest cash flows due to payments and changes in interest rates | (1,951 | ) | 158 | (6,904 | ) | 432 | |||||||||
Accretable yield, ending balance (3) | $ | 151,800 | $ | 15,426 | $ | 86,497 | $ | 20,196 |
(1) | Represents the portion of the current period accreted yield, resulting from lower expected losses, applied to reduce the loss share indemnification asset. |
(2) | Reclassification is the result of subsequent increases in expected principal cash flows. |
(3) | As of September 30, 2012, the Company estimates that the remaining accretable yield balance to be amortized to the indemnification asset for the bank acquisitions is $74.8 million. The remainder of the accretable yield related to bank acquisitions is expected to be amortized to interest income. |
Nine Months Ended September 30, 2012 | Nine Months Ended September 30, 2011 | ||||||||||||||
(Dollars in thousands) | Bank Acquisitions | Life Insurance Premium Finance Loans | Bank Acquisitions | Life Insurance Premium Finance Loans | |||||||||||
Accretable yield, beginning balance | $ | 173,120 | $ | 18,861 | $ | 39,809 | $ | 33,315 | |||||||
Acquisitions | 8,340 | — | 29,797 | — | |||||||||||
Accretable yield amortized to interest income | (40,545 | ) | (8,795 | ) | (24,869 | ) | (19,301 | ) | |||||||
Accretable yield amortized to indemnification asset (1) | (55,912 | ) | — | (17,045 | ) | — | |||||||||
Reclassification from non-accretable difference (2) | 53,827 | 4,096 | 52,820 | 3,857 | |||||||||||
Increases in interest cash flows due to payments and changes in interest rates | 12,970 | 1,264 | 5,985 | 2,325 | |||||||||||
Accretable yield, ending balance (3) | $ | 151,800 | $ | 15,426 | $ | 86,497 | $ | 20,196 |
(1) | Represents the portion of the current period accreted yield, resulting from lower expected losses, applied to reduce the loss share indemnification asset. |
(2) | Reclassification is the result of subsequent increases in expected principal cash flows. |
(3) | As of September 30, 2012, the Company estimates that the remaining accretable yield balance to be amortized to the indemnification asset for the bank acquisitions is $74.8 million. The remainder of the accretable yield related to bank acquisitions is expected to be amortized to interest income. |
As of September 30, 2012 | 90+ days and still accruing | 60-89 days past due | 30-59 days past due | ||||||||||||||||||||
(Dollars in thousands) | Nonaccrual | Current | Total Loans | ||||||||||||||||||||
Loan Balances: | |||||||||||||||||||||||
Commercial | |||||||||||||||||||||||
Commercial and industrial | $ | 15,163 | $ | — | $ | 5,985 | $ | 16,631 | $ | 1,518,596 | $ | 1,556,375 | |||||||||||
Franchise | 1,792 | — | — | — | 177,914 | 179,706 | |||||||||||||||||
Mortgage warehouse lines of credit | — | — | — | — | 225,295 | 225,295 | |||||||||||||||||
Community Advantage—homeowners association | — | — | — | — | 73,881 | 73,881 | |||||||||||||||||
Aircraft | 428 | — | — | 150 | 20,866 | 21,444 | |||||||||||||||||
Asset-based lending | 328 | — | 1,211 | 5,556 | 525,966 | 533,061 | |||||||||||||||||
Municipal | — | — | — | — | 90,404 | 90,404 | |||||||||||||||||
Leases | — | — | — | — | 83,351 | 83,351 | |||||||||||||||||
Other | — | — | — | — | 1,576 | 1,576 | |||||||||||||||||
Purchased non-covered commercial (1) | — | 499 | — | — | 5,461 | 5,960 | |||||||||||||||||
Total commercial | 17,711 | 499 | 7,196 | 22,337 | 2,723,310 | 2,771,053 | |||||||||||||||||
Commercial real-estate: | |||||||||||||||||||||||
Residential construction | 2,141 | — | 3,008 | — | 39,106 | 44,255 | |||||||||||||||||
Commercial construction | 3,315 | — | 163 | 13,072 | 152,993 | 169,543 | |||||||||||||||||
Land | 10,629 | — | 3,033 | 3,017 | 116,807 | 133,486 | |||||||||||||||||
Office | 6,185 | — | 5,717 | 7,237 | 565,182 | 584,321 | |||||||||||||||||
Industrial | 1,885 | — | 645 |