ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
PENNSYLVANIA | 23-2195389 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
One Penn Square, P.O. Box 4887, Lancaster, Pennsylvania | 17604 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | ý | Accelerated filer | ¨ | |||
Non-accelerated filer | ¨ | Smaller reporting company | ¨ |
Description | Page | ||
PART I. FINANCIAL INFORMATION | |||
(a) | |||
(b) | |||
(c) | |||
(d) | |||
(e) | |||
(f) | |||
June 30, 2012 | December 31, 2011 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Cash and due from banks | $ | 242,811 | $ | 292,598 | |||
Interest-bearing deposits with other banks | 118,468 | 175,336 | |||||
Loans held for sale | 71,406 | 47,009 | |||||
Investment securities: | |||||||
Held to maturity (estimated fair value of $6,571 in 2012 and $6,669 in 2011) | 6,562 | 6,669 | |||||
Available for sale | 2,864,270 | 2,673,298 | |||||
Loans, net of unearned income | 11,982,833 | 11,968,970 | |||||
Less: Allowance for loan losses | (235,737 | ) | (256,471 | ) | |||
Net Loans | 11,747,096 | 11,712,499 | |||||
Premises and equipment | 222,083 | 212,274 | |||||
Accrued interest receivable | 48,283 | 51,098 | |||||
Goodwill | 535,980 | 536,005 | |||||
Intangible assets | 6,642 | 8,204 | |||||
Other assets | 474,149 | 655,518 | |||||
Total Assets | $ | 16,337,750 | $ | 16,370,508 | |||
LIABILITIES | |||||||
Deposits: | |||||||
Noninterest-bearing | $ | 2,748,269 | $ | 2,588,034 | |||
Interest-bearing | 9,484,215 | 9,937,705 | |||||
Total Deposits | 12,232,484 | 12,525,739 | |||||
Short-term borrowings: | |||||||
Federal funds purchased | 566,167 | 253,470 | |||||
Other short-term borrowings | 365,514 | 343,563 | |||||
Total Short-Term Borrowings | 931,681 | 597,033 | |||||
Accrued interest payable | 23,725 | 25,686 | |||||
Other liabilities | 199,867 | 189,362 | |||||
Federal Home Loan Bank advances and long-term debt | 908,809 | 1,040,149 | |||||
Total Liabilities | 14,296,566 | 14,377,969 | |||||
SHAREHOLDERS’ EQUITY | |||||||
Common stock, $2.50 par value, 600 million shares authorized, 216.6 million shares issued in 2012 and 216.2 million shares issued in 2011 | 541,587 | 540,386 | |||||
Additional paid-in capital | 1,425,037 | 1,423,727 | |||||
Retained earnings | 313,970 | 264,059 | |||||
Accumulated other comprehensive income | 482 | 7,955 | |||||
Treasury stock, at cost, 15.8 million shares in 2012 and 16.0 million shares in 2011 | (239,892 | ) | (243,588 | ) | |||
Total Shareholders’ Equity | 2,041,184 | 1,992,539 | |||||
Total Liabilities and Shareholders’ Equity | $ | 16,337,750 | $ | 16,370,508 | |||
See Notes to Consolidated Financial Statements |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
INTEREST INCOME | |||||||||||||||
Loans, including fees | $ | 141,541 | $ | 149,751 | $ | 285,887 | $ | 299,247 | |||||||
Investment securities: | |||||||||||||||
Taxable | 18,624 | 20,749 | 37,285 | 42,556 | |||||||||||
Tax-exempt | 2,596 | 3,146 | 5,297 | 6,321 | |||||||||||
Dividends | 641 | 696 | 1,340 | 1,379 | |||||||||||
Loans held for sale | 538 | 492 | 969 | 992 | |||||||||||
Other interest income | 45 | 101 | 98 | 134 | |||||||||||
Total Interest Income | 163,985 | 174,935 | 330,876 | 350,629 | |||||||||||
INTEREST EXPENSE | |||||||||||||||
Deposits | 14,743 | 21,775 | 30,993 | 45,061 | |||||||||||
Short-term borrowings | 411 | 168 | 692 | 422 | |||||||||||
Long-term debt | 11,301 | 12,347 | 22,966 | 24,938 | |||||||||||
Total Interest Expense | 26,455 | 34,290 | 54,651 | 70,421 | |||||||||||
Net Interest Income | 137,530 | 140,645 | 276,225 | 280,208 | |||||||||||
Provision for credit losses | 25,500 | 36,000 | 53,500 | 74,000 | |||||||||||
Net Interest Income After Provision for Credit Losses | 112,030 | 104,645 | 222,725 | 206,208 | |||||||||||
NON-INTEREST INCOME | |||||||||||||||
Service charges on deposit accounts | 15,367 | 14,332 | 30,209 | 27,637 | |||||||||||
Other service charges and fees | 11,507 | 12,709 | 22,062 | 24,191 | |||||||||||
Mortgage banking income | 11,143 | 6,049 | 21,193 | 11,512 | |||||||||||
Investment management and trust services | 9,822 | 9,638 | 19,199 | 18,842 | |||||||||||
Other | 3,987 | 3,386 | 9,592 | 7,108 | |||||||||||
Investment securities gains (losses), net: | |||||||||||||||
Other-than-temporary impairment losses | (57 | ) | (71 | ) | (57 | ) | (1,092 | ) | |||||||
Less: Portion of gain recognized in other comprehensive income (before taxes) | — | (322 | ) | — | (592 | ) | |||||||||
Net other-than-temporary impairment losses | (57 | ) | (393 | ) | (57 | ) | (1,684 | ) | |||||||
Net gains on sales of investment securities | 1,595 | 58 | 2,846 | 3,634 | |||||||||||
Investment securities gains (losses), net | 1,538 | (335 | ) | 2,789 | 1,950 | ||||||||||
Total Non-Interest Income | 53,364 | 45,779 | 105,044 | 91,240 | |||||||||||
NON-INTEREST EXPENSES | |||||||||||||||
Salaries and employee benefits | 60,091 | 56,070 | 120,451 | 110,378 | |||||||||||
Net occupancy expense | 11,205 | 10,874 | 22,140 | 22,240 | |||||||||||
Data processing | 3,759 | 3,214 | 7,447 | 6,586 | |||||||||||
Equipment expense | 3,185 | 3,377 | 6,554 | 6,509 | |||||||||||
FDIC insurance expense | 3,002 | 3,264 | 6,023 | 8,018 | |||||||||||
Professional fees | 2,984 | 3,102 | 5,566 | 5,951 | |||||||||||
Other real estate owned and repossession expense | 2,823 | 982 | 5,751 | 2,253 | |||||||||||
Marketing | 2,583 | 1,863 | 5,055 | 4,699 | |||||||||||
Software | 2,272 | 1,973 | 4,447 | 4,004 | |||||||||||
Operating risk loss | 2,055 | (8 | ) | 5,423 | (470 | ) | |||||||||
Intangible amortization | 761 | 1,172 | 1,562 | 2,350 | |||||||||||
Other | 17,423 | 15,002 | 32,435 | 29,231 | |||||||||||
Total Non-Interest Expenses | 112,143 | 100,885 | 222,854 | 201,749 | |||||||||||
Income Before Income Taxes | 53,251 | 49,539 | 104,915 | 95,699 | |||||||||||
Income taxes | 13,360 | 13,154 | 26,892 | 25,529 | |||||||||||
Net Income | $ | 39,891 | $ | 36,385 | $ | 78,023 | $ | 70,170 | |||||||
PER SHARE: | |||||||||||||||
Net Income (Basic) | $ | 0.20 | $ | 0.18 | $ | 0.39 | $ | 0.35 | |||||||
Net Income (Diluted) | 0.20 | 0.18 | 0.39 | 0.35 | |||||||||||
Cash Dividends | 0.07 | 0.05 | 0.14 | 0.09 | |||||||||||
See Notes to Consolidated Financial Statements |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Net Income | $ | 39,891 | $ | 36,385 | $ | 78,023 | $ | 70,170 | |||||||
Other Comprehensive Income (Loss), net of tax: | |||||||||||||||
Unrealized (loss) gain on securities | (10,704 | ) | 13,451 | (6,120 | ) | 17,019 | |||||||||
Reclassification adjustment for securities (gains) losses included in net income | (999 | ) | 218 | (1,812 | ) | (1,267 | ) | ||||||||
Non-credit related unrealized gain (loss) on other-than-temporarily impaired debt securities | (172 | ) | 480 | (37 | ) | 729 | |||||||||
Unrealized gain on derivative financial instruments | 34 | 34 | 68 | 68 | |||||||||||
Amortization (accretion) of net unrecognized pension and postretirement items | 214 | (12 | ) | 428 | (24 | ) | |||||||||
Other Comprehensive Income (Loss) | (11,627 | ) | 14,171 | (7,473 | ) | 16,525 | |||||||||
Total Comprehensive Income | $ | 28,264 | $ | 50,556 | $ | 70,550 | $ | 86,695 | |||||||
See Notes to Consolidated Financial Statements |
Common Stock | Retained Earnings | Treasury Stock | Total | |||||||||||||||||||||||
Shares Outstanding | Amount | Additional Paid-in Capital | Accumulated Other Comprehensive Income | |||||||||||||||||||||||
Balance at December 31, 2011 | 200,164 | $ | 540,386 | $ | 1,423,727 | $ | 264,059 | $ | 7,955 | $ | (243,588 | ) | $ | 1,992,539 | ||||||||||||
Net income | 78,023 | 78,023 | ||||||||||||||||||||||||
Other comprehensive loss | (7,473 | ) | (7,473 | ) | ||||||||||||||||||||||
Stock issued, including related tax benefits | 716 | 1,201 | (1,740 | ) | 3,696 | 3,157 | ||||||||||||||||||||
Stock-based compensation awards | 3,050 | 3,050 | ||||||||||||||||||||||||
Common stock cash dividends - $0.14 per share | (28,112 | ) | (28,112 | ) | ||||||||||||||||||||||
Balance at June 30, 2012 | 200,880 | $ | 541,587 | $ | 1,425,037 | $ | 313,970 | $ | 482 | $ | (239,892 | ) | $ | 2,041,184 | ||||||||||||
Balance at December 31, 2010 | 199,050 | $ | 538,492 | $ | 1,420,127 | $ | 158,453 | $ | 12,495 | $ | (249,178 | ) | $ | 1,880,389 | ||||||||||||
Net income | 70,170 | 70,170 | ||||||||||||||||||||||||
Other comprehensive income | 16,525 | 16,525 | ||||||||||||||||||||||||
Stock issued, including related tax benefits | 320 | 431 | 398 | 2,247 | 3,076 | |||||||||||||||||||||
Stock-based compensation awards | 1,101 | 1,101 | ||||||||||||||||||||||||
Common stock cash dividends - $0.09 per share | (17,952 | ) | (17,952 | ) | ||||||||||||||||||||||
Balance at June 30, 2011 | 199,370 | $ | 538,923 | $ | 1,421,626 | $ | 210,671 | $ | 29,020 | $ | (246,931 | ) | $ | 1,953,309 | ||||||||||||
See Notes to Consolidated Financial Statements |
Six Months Ended June 30 | |||||||
2012 | 2011 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net Income | $ | 78,023 | $ | 70,170 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Provision for credit losses | 53,500 | 74,000 | |||||
Depreciation and amortization of premises and equipment | 10,845 | 10,462 | |||||
Net amortization of investment securities premiums | 5,251 | 1,999 | |||||
Investment securities gains, net | (2,789 | ) | (1,950 | ) | |||
Net (increase) decrease in loans held for sale | (24,397 | ) | 36,807 | ||||
Amortization of intangible assets | 1,562 | 2,350 | |||||
Stock-based compensation | 3,050 | 1,101 | |||||
Excess tax benefits from stock-based compensation | (14 | ) | — | ||||
Decrease in accrued interest receivable | 2,815 | 2,454 | |||||
Decrease in other assets | 3,829 | 22,955 | |||||
Decrease in accrued interest payable | (1,961 | ) | (3,889 | ) | |||
Increase (decrease) in other liabilities | 5,910 | (11,566 | ) | ||||
Total adjustments | 57,601 | 134,723 | |||||
Net cash provided by operating activities | 135,624 | 204,893 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Proceeds from sales of securities available for sale | 210,804 | 416,480 | |||||
Proceeds from maturities of securities held to maturity | 121 | 160 | |||||
Proceeds from maturities of securities available for sale | 371,176 | 279,841 | |||||
Purchase of securities held to maturity | (14 | ) | (14 | ) | |||
Purchase of securities available for sale | (602,642 | ) | (356,323 | ) | |||
Decrease (increase) in short-term investments | 56,868 | (91,670 | ) | ||||
Net increase in loans | (88,224 | ) | (49 | ) | |||
Net purchases of premises and equipment | (20,654 | ) | (9,623 | ) | |||
Net cash (used in) provided by investing activities | (72,565 | ) | 238,802 | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Net (decrease) increase in demand and savings deposits | (13,950 | ) | 229,071 | ||||
Net decrease in time deposits | (279,305 | ) | (354,757 | ) | |||
Increase (decrease) in short-term borrowings | 334,648 | (127,496 | ) | ||||
Repayments of long-term debt | (131,340 | ) | (93,913 | ) | |||
Net proceeds from issuance of stock | 3,143 | 3,076 | |||||
Excess tax benefits from stock-based compensation | 14 | — | |||||
Dividends paid | (26,056 | ) | (13,939 | ) | |||
Net cash used in financing activities | (112,846 | ) | (357,958 | ) | |||
Net (Decrease) Increase in Cash and Due From Banks | (49,787 | ) | 85,737 | ||||
Cash and Due From Banks at Beginning of Period | 292,598 | 198,954 | |||||
Cash and Due From Banks at End of Period | $ | 242,811 | $ | 284,691 | |||
Supplemental Disclosures of Cash Flow Information: | |||||||
Cash paid during the period for: | |||||||
Interest | $ | 56,612 | $ | 74,310 | |||
Income taxes | 22,646 | 7,469 | |||||
See Notes to Consolidated Financial Statements |
Three Months Ended June 30 | Six Months Ended June 30 | ||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||
(in thousands) | |||||||||||
Weighted average shares outstanding (basic) | 199,671 | 198,772 | 199,581 | 198,686 | |||||||
Effect of dilutive securities | 1,135 | 755 | 994 | 721 | |||||||
Weighted average shares outstanding (diluted) | 200,806 | 199,527 | 200,575 | 199,407 |
Before-Tax Amount | Tax Effect | Net of Tax Amount | |||||||||
(in thousands) | |||||||||||
Three Months Ended June 30, 2012 | |||||||||||
Unrealized gain (loss) on securities | $ | (16,468 | ) | $ | 5,764 | $ | (10,704 | ) | |||
Reclassification adjustment for securities (gains) losses included in net income | (1,537 | ) | 538 | (999 | ) | ||||||
Non-credit related unrealized gain (loss) on other-than-temporarily impaired debt securities | (264 | ) | 92 | (172 | ) | ||||||
Unrealized gain on derivative financial instruments | 52 | (18 | ) | 34 | |||||||
Amortization (accretion) of net unrecognized pension and postretirement items | 329 | (115 | ) | 214 | |||||||
Total Other Comprehensive Income (Loss) | $ | (17,888 | ) | $ | 6,261 | $ | (11,627 | ) | |||
Three Months Ended June 30, 2011 | |||||||||||
Unrealized gain (loss) on securities | $ | 20,694 | $ | (7,243 | ) | $ | 13,451 | ||||
Reclassification adjustment for securities (gains) losses included in net income | 335 | (117 | ) | 218 | |||||||
Non-credit related unrealized gain (loss) on other-than-temporarily impaired debt securities | 738 | (258 | ) | 480 | |||||||
Unrealized gain on derivative financial instruments | 52 | (18 | ) | 34 | |||||||
Amortization (accretion) of net unrecognized pension and postretirement items | (19 | ) | 7 | (12 | ) | ||||||
Total Other Comprehensive Income (Loss) | $ | 21,800 | $ | (7,629 | ) | $ | 14,171 | ||||
Six Months Ended June 30, 2012 | |||||||||||
Unrealized gain (loss) on securities | $ | (9,415 | ) | $ | 3,295 | $ | (6,120 | ) | |||
Reclassification adjustment for securities (gains) losses included in net income | (2,788 | ) | 976 | (1,812 | ) | ||||||
Non-credit related unrealized gain (loss) on other-than-temporarily impaired debt securities | (57 | ) | 20 | (37 | ) | ||||||
Unrealized gain on derivative financial instruments | 104 | (36 | ) | 68 | |||||||
Amortization (accretion) of net unrecognized pension and postretirement items | 659 | (231 | ) | 428 | |||||||
Total Other Comprehensive Income (Loss) | $ | (11,497 | ) | $ | 4,024 | $ | (7,473 | ) | |||
Six Months Ended June 30, 2011 | |||||||||||
Unrealized gain (loss) on securities | $ | 26,183 | $ | (9,164 | ) | $ | 17,019 | ||||
Reclassification adjustment for securities (gains) losses included in net income | (1,949 | ) | 682 | (1,267 | ) | ||||||
Non-credit related unrealized gain (loss) on other-than-temporarily impaired debt securities | 1,121 | (392 | ) | 729 | |||||||
Unrealized gain on derivative financial instruments | 104 | (36 | ) | 68 | |||||||
Amortization (accretion) of net unrecognized pension and postretirement items | (37 | ) | 13 | (24 | ) | ||||||
Total Other Comprehensive Income (Loss) | $ | 25,422 | $ | (8,897 | ) | $ | 16,525 |
Unrealized Gains on Investment Securities Not Other-Than-Temporarily Impaired | Unrealized Non-Credit Losses on Other-Than-Temporarily Impaired Debt Securities | Unrecognized Pension and Postretirement Plan Items | Unrealized Effective Portions of Losses on Forward-Starting Interest Rate Swaps | Total | |||||||||||||||
(in thousands) | |||||||||||||||||||
Three months ended June 30, 2012 | |||||||||||||||||||
Balance at March 31, 2012 | $ | 30,825 | $ | (876 | ) | $ | (14,920 | ) | $ | (2,920 | ) | $ | 12,109 | ||||||
Current-period other comprehensive income (loss) | (11,703 | ) | (172 | ) | 214 | 34 | (11,627 | ) | |||||||||||
Balance at June 30, 2012 | $ | 19,122 | $ | (1,048 | ) | $ | (14,706 | ) | $ | (2,886 | ) | $ | 482 | ||||||
Three months ended June 30, 2011 | |||||||||||||||||||
Balance at March 31, 2011 | $ | 23,791 | $ | (1,460 | ) | $ | (4,426 | ) | $ | (3,056 | ) | $ | 14,849 | ||||||
Current-period other comprehensive income (loss) | 13,436 | 713 | (12 | ) | 34 | 14,171 | |||||||||||||
Balance at June 30, 2011 | $ | 37,227 | $ | (747 | ) | $ | (4,438 | ) | $ | (3,022 | ) | $ | 29,020 | ||||||
Six months ended June 30, 2012 | |||||||||||||||||||
Balance at December 31, 2011 | $ | 27,054 | $ | (1,011 | ) | $ | (15,134 | ) | $ | (2,954 | ) | $ | 7,955 | ||||||
Current-period other comprehensive income (loss) | (7,932 | ) | (37 | ) | 428 | 68 | (7,473 | ) | |||||||||||
Balance at June 30, 2012 | $ | 19,122 | $ | (1,048 | ) | $ | (14,706 | ) | $ | (2,886 | ) | $ | 482 | ||||||
Six months ended June 30, 2011 | |||||||||||||||||||
Balance at December 31, 2010 | $ | 22,354 | $ | (2,355 | ) | $ | (4,414 | ) | $ | (3,090 | ) | $ | 12,495 | ||||||
Current-period other comprehensive income (loss) | 14,873 | 1,608 | (24 | ) | 68 | 16,525 | |||||||||||||
Balance at June 30, 2011 | $ | 37,227 | $ | (747 | ) | $ | (4,438 | ) | $ | (3,022 | ) | $ | 29,020 |
Held to Maturity at June 30, 2012 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||
(in thousands) | |||||||||||||||
U.S. Government sponsored agency securities | $ | 6,001 | $ | — | $ | (27 | ) | $ | 5,974 | ||||||
State and municipal securities | 179 | — | — | 179 | |||||||||||
Mortgage-backed securities | 382 | 36 | — | 418 | |||||||||||
$ | 6,562 | $ | 36 | $ | (27 | ) | $ | 6,571 | |||||||
Available for Sale at June 30, 2012 | |||||||||||||||
Equity securities | $ | 104,086 | $ | 2,738 | $ | (1,413 | ) | $ | 105,411 | ||||||
U.S. Government securities | 327 | — | — | 327 | |||||||||||
U.S. Government sponsored agency securities | 3,939 | 54 | (1 | ) | 3,992 | ||||||||||
State and municipal securities | 289,364 | 14,153 | (37 | ) | 303,480 | ||||||||||
Corporate debt securities | 135,886 | 5,991 | (11,502 | ) | 130,375 | ||||||||||
Collateralized mortgage obligations | 965,499 | 16,441 | (283 | ) | 981,657 | ||||||||||
Mortgage-backed securities | 1,098,949 | 36,797 | — | 1,135,746 | |||||||||||
Auction rate securities | 238,408 | — | (35,126 | ) | 203,282 | ||||||||||
$ | 2,836,458 | $ | 76,174 | $ | (48,362 | ) | $ | 2,864,270 |
Held to Maturity at December 31, 2011 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||
(in thousands) | |||||||||||||||
U.S. Government sponsored agency securities | $ | 5,987 | $ | — | $ | (14 | ) | $ | 5,973 | ||||||
State and municipal securities | 179 | — | — | 179 | |||||||||||
Mortgage-backed securities | 503 | 44 | — | 547 | |||||||||||
$ | 6,669 | $ | 44 | $ | (14 | ) | $ | 6,699 | |||||||
Available for Sale at December 31, 2011 | |||||||||||||||
Equity securities | $ | 117,486 | $ | 2,383 | $ | (2,819 | ) | $ | 117,050 | ||||||
U.S. Government securities | 334 | — | — | 334 | |||||||||||
U.S. Government sponsored agency securities | 3,987 | 87 | (1 | ) | 4,073 | ||||||||||
State and municipal securities | 306,186 | 15,832 | — | 322,018 | |||||||||||
Corporate debt securities | 132,855 | 4,979 | (14,528 | ) | 123,306 | ||||||||||
Collateralized mortgage obligations | 982,851 | 19,186 | (828 | ) | 1,001,209 | ||||||||||
Mortgage-backed securities | 848,675 | 31,837 | (415 | ) | 880,097 | ||||||||||
Auction rate securities | 240,852 | 120 | (15,761 | ) | 225,211 | ||||||||||
$ | 2,633,226 | $ | 74,424 | $ | (34,352 | ) | $ | 2,673,298 |
Held to Maturity | Available for Sale | ||||||||||||||
Amortized Cost | Estimated Fair Value | Amortized Cost | Estimated Fair Value | ||||||||||||
(in thousands) | |||||||||||||||
Due in one year or less | $ | 179 | $ | 179 | $ | 53,656 | $ | 54,119 | |||||||
Due from one year to five years | 6,001 | 5,974 | 61,264 | 64,298 | |||||||||||
Due from five years to ten years | — | — | 142,646 | 152,850 | |||||||||||
Due after ten years | — | — | 410,358 | 370,189 | |||||||||||
6,180 | 6,153 | 667,924 | 641,456 | ||||||||||||
Collateralized mortgage obligations | — | — | 965,499 | 981,657 | |||||||||||
Mortgage-backed securities | 382 | 418 | 1,098,949 | 1,135,746 | |||||||||||
$ | 6,562 | $ | 6,571 | $ | 2,732,372 | $ | 2,758,859 |
Gross Realized Gains | Gross Realized Losses | Other-than- temporary Impairment Losses | Net Gains (Losses) | ||||||||||||
(in thousands) | |||||||||||||||
Three months ended June 30, 2012 | |||||||||||||||
Equity securities | $ | 1,517 | $ | — | $ | (57 | ) | $ | 1,460 | ||||||
Debt securities | 78 | — | — | 78 | |||||||||||
Total | $ | 1,595 | $ | — | $ | (57 | ) | $ | 1,538 | ||||||
Three months ended June 30, 2011: | |||||||||||||||
Equity securities | $ | 43 | $ | — | $ | (34 | ) | $ | 9 | ||||||
Debt securities | 16 | (1 | ) | (359 | ) | (344 | ) | ||||||||
Total | $ | 59 | $ | (1 | ) | $ | (393 | ) | $ | (335 | ) | ||||
Six months ended June 30, 2012 | |||||||||||||||
Equity securities | $ | 2,603 | $ | — | $ | (57 | ) | $ | 2,546 | ||||||
Debt securities | 243 | — | — | 243 | |||||||||||
Total | $ | 2,846 | $ | — | $ | (57 | ) | $ | 2,789 | ||||||
Six months ended June 30, 2011: | |||||||||||||||
Equity securities | $ | 48 | $ | — | $ | (331 | ) | $ | (283 | ) | |||||
Debt securities | 3,605 | (19 | ) | (1,353 | ) | 2,233 | |||||||||
Total | $ | 3,653 | $ | (19 | ) | $ | (1,684 | ) | $ | 1,950 |
Three Months ended June 30 | Six Months ended June 30 | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(in thousands) | |||||||||||||||
Balance of cumulative credit losses on debt securities, beginning of period | $ | (22,692 | ) | $ | (28,517 | ) | $ | (22,781 | ) | $ | (27,560 | ) | |||
Additions for credit losses recorded which were not previously recognized as components of earnings | — | (359 | ) | — | (1,353 | ) | |||||||||
Reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security | — | — | 89 | 37 | |||||||||||
Balance of cumulative credit losses on debt securities, end of period | $ | (22,692 | ) | $ | (28,876 | ) | $ | (22,692 | ) | $ | (28,876 | ) |
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||
Estimated Fair Value | Unrealized Losses | Estimated Fair Value | Unrealized Losses | Estimated Fair Value | Unrealized Losses | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
U.S. Government sponsored agency securities | $ | 112 | $ | (1 | ) | $ | 5,344 | $ | (27 | ) | $ | 5,456 | $ | (28 | ) | ||||||||
State and municipal securities | 8,356 | (37 | ) | — | — | 8,356 | (37 | ) | |||||||||||||||
Corporate debt securities | 6,942 | (1,678 | ) | 37,562 | (9,824 | ) | 44,504 | (11,502 | ) | ||||||||||||||
Collateralized mortgage obligations | 95,032 | (283 | ) | — | — | 95,032 | (283 | ) | |||||||||||||||
Auction rate securities | 21,868 | (2,064 | ) | 181,414 | (33,062 | ) | 203,282 | (35,126 | ) | ||||||||||||||
Total debt securities | 132,310 | (4,063 | ) | 224,320 | (42,913 | ) | 356,630 | (46,976 | ) | ||||||||||||||
Equity securities | 6,221 | (613 | ) | 4,287 | (800 | ) | 10,508 | (1,413 | ) | ||||||||||||||
$ | 138,531 | $ | (4,676 | ) | $ | 228,607 | $ | (43,713 | ) | $ | 367,138 | $ | (48,389 | ) |
June 30, 2012 | December 31, 2011 | ||||||||||||||
Amortized cost | Estimated fair value | Amortized cost | Estimated fair value | ||||||||||||
(in thousands) | |||||||||||||||
Single-issuer trust preferred securities | $ | 84,321 | $ | 76,823 | $ | 83,899 | $ | 74,365 | |||||||
Subordinated debt | 43,233 | 46,012 | 40,184 | 41,296 | |||||||||||
Pooled trust preferred securities | 5,810 | 5,018 | 6,236 | 5,109 | |||||||||||
Corporate debt securities issued by financial institutions | 133,364 | 127,853 | 130,319 | 120,770 | |||||||||||
Other corporate debt securities | 2,522 | 2,522 | 2,536 | 2,536 | |||||||||||
Available for sale corporate debt securities | $ | 135,886 | $ | 130,375 | $ | 132,855 | $ | 123,306 |
June 30, 2012 | December 31, 2011 | ||||||
(in thousands) | |||||||
Real-estate - commercial mortgage | $ | 4,653,097 | $ | 4,602,596 | |||
Commercial - industrial, financial and agricultural | 3,538,188 | 3,639,368 | |||||
Real-estate - home equity | 1,599,468 | 1,624,562 | |||||
Real-estate - residential mortgage | 1,183,613 | 1,097,192 | |||||
Real-estate - construction | 619,060 | 615,445 | |||||
Consumer | 308,469 | 318,101 | |||||
Leasing and other | 69,872 | 63,254 | |||||
Overdrafts | 18,332 | 15,446 | |||||
Loans, gross of unearned income | 11,990,099 | 11,975,964 | |||||
Unearned income | (7,266 | ) | (6,994 | ) | |||
Loans, net of unearned income | $ | 11,982,833 | $ | 11,968,970 |
June 30, 2012 | December 31, 2011 | ||||||
(in thousands) | |||||||
Allowance for loan losses | $ | 235,737 | $ | 256,471 | |||
Reserve for unfunded lending commitments | 1,579 | 1,706 | |||||
Allowance for credit losses | $ | 237,316 | $ | 258,177 |
Three months ended June 30 | Six months ended June 30 | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(in thousands) | |||||||||||||||
Balance at beginning of period | $ | 258,137 | $ | 271,156 | $ | 258,177 | $ | 275,498 | |||||||
Loans charged off | (50,540 | ) | (40,675 | ) | (80,799 | ) | (86,204 | ) | |||||||
Recoveries of loans previously charged off | 4,219 | 2,152 | 6,438 | 5,339 | |||||||||||
Net loans charged off | (46,321 | ) | (38,523 | ) | (74,361 | ) | (80,865 | ) | |||||||
Provision for credit losses | 25,500 | 36,000 | 53,500 | 74,000 | |||||||||||
Balance at end of period | $ | 237,316 | $ | 268,633 | $ | 237,316 | $ | 268,633 |
Real Estate - Commercial Mortgage | Commercial - Industrial, Financial and Agricultural | Real Estate - Home Equity | Real Estate - Residential Mortgage | Real Estate - Construction | Consumer | Leasing and other and overdrafts | Unallocated | Total | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
Three months ended June 30, 2012 | |||||||||||||||||||||||||||||||||||
Balance at March 31, 2012 | $ | 81,652 | $ | 79,756 | $ | 13,083 | $ | 24,851 | $ | 31,186 | $ | 1,643 | $ | 3,274 | $ | 21,051 | $ | 256,496 | |||||||||||||||||
Loans charged off | (23,699 | ) | (13,017 | ) | (2,789 | ) | (1,492 | ) | (8,442 | ) | (471 | ) | (630 | ) | — | (50,540 | ) | ||||||||||||||||||
Recoveries of loans previously charged off | 1,153 | 717 | 278 | 71 | 1,539 | 281 | 180 | — | 4,219 | ||||||||||||||||||||||||||
Net loans charged off | (22,546 | ) | (12,300 | ) | (2,511 | ) | (1,421 | ) | (6,903 | ) | (190 | ) | (450 | ) | — | (46,321 | ) | ||||||||||||||||||
Provision for loan losses (1) | 10,763 | 4,475 | 3,872 | 3,281 | 1,276 | 363 | 419 | 1,113 | 25,562 | ||||||||||||||||||||||||||
Balance at June 30, 2012 | $ | 69,869 | $ | 71,931 | $ | 14,444 | $ | 26,711 | $ | 25,559 | $ | 1,816 | $ | 3,243 | $ | 22,164 | $ | 235,737 | |||||||||||||||||
Three months ended June 30, 2011 | |||||||||||||||||||||||||||||||||||
Balance at March 31, 2011 | 48,558 | 100,180 | 5,656 | 19,575 | 55,491 | 4,736 | 2,576 | 33,500 | 270,272 | ||||||||||||||||||||||||||
Loans charged off | (7,074 | ) | (15,406 | ) | (1,650 | ) | (7,707 | ) | (7,468 | ) | (681 | ) | (689 | ) | — | (40,675 | ) | ||||||||||||||||||
Recoveries of loans previously charged off | 191 | 1,003 | 2 | 190 | 79 | 433 | 254 | — | 2,152 | ||||||||||||||||||||||||||
Net loans charged off | (6,883 | ) | (14,403 | ) | (1,648 | ) | (7,517 | ) | (7,389 | ) | (248 | ) | (435 | ) | — | (38,523 | ) | ||||||||||||||||||
Provision for loan losses | 9,040 | 10,224 | 1,862 | 11,958 | 7,239 | 343 | 590 | (6,322 | ) | 34,934 | |||||||||||||||||||||||||
Impact of change in allowance methodology | 22,883 | (13,388 | ) | 3,690 | 7,896 | (24,771 | ) | (3,076 | ) | (944 | ) | 7,710 | — | ||||||||||||||||||||||
Provision for loan losses, including impact of change in allowance methodology (1) | 31,923 | (3,164 | ) | 5,552 | 19,854 | (17,532 | ) | (2,733 | ) | (354 | ) | 1,388 | 34,934 | ||||||||||||||||||||||
Balance at June 30, 2011 | 73,598 | 82,613 | 9,560 | 31,912 | 30,570 | 1,755 | 1,787 | 34,888 | 266,683 | ||||||||||||||||||||||||||
Six months ended June 30, 2012 | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2011 | $ | 85,112 | $ | 74,896 | $ | 12,841 | $ | 22,986 | $ | 30,066 |