ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
PENNSYLVANIA | 23-2195389 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
One Penn Square, P.O. Box 4887, Lancaster, Pennsylvania | 17604 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | ý | Accelerated filer | ¨ | |||
Non-accelerated filer | ¨ | Smaller reporting company | ¨ |
Description | Page | ||
PART I. FINANCIAL INFORMATION | |||
(a) | |||
(b) | |||
(c) | |||
(d) | |||
(e) | |||
(f) | |||
September 30, 2012 | December 31, 2011 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Cash and due from banks | $ | 217,207 | $ | 292,598 | |||
Interest-bearing deposits with other banks | 202,305 | 175,336 | |||||
Loans held for sale | 85,477 | 47,009 | |||||
Investment securities: | |||||||
Held to maturity (estimated fair value of $487 in 2012 and $6,699 in 2011) | 454 | 6,669 | |||||
Available for sale | 2,789,684 | 2,673,298 | |||||
Loans, net of unearned income | 11,933,001 | 11,968,970 | |||||
Less: Allowance for loan losses | (233,864 | ) | (256,471 | ) | |||
Net Loans | 11,699,137 | 11,712,499 | |||||
Premises and equipment | 225,771 | 212,274 | |||||
Accrued interest receivable | 49,784 | 51,098 | |||||
Goodwill | 535,959 | 536,005 | |||||
Intangible assets | 5,886 | 8,204 | |||||
Other assets | 461,465 | 655,518 | |||||
Total Assets | $ | 16,273,129 | $ | 16,370,508 | |||
LIABILITIES | |||||||
Deposits: | |||||||
Noninterest-bearing | $ | 2,903,591 | $ | 2,588,034 | |||
Interest-bearing | 9,697,719 | 9,937,705 | |||||
Total Deposits | 12,601,310 | 12,525,739 | |||||
Short-term borrowings: | |||||||
Federal funds purchased | 170,261 | 253,470 | |||||
Other short-term borrowings | 316,710 | 343,563 | |||||
Total Short-Term Borrowings | 486,971 | 597,033 | |||||
Accrued interest payable | 21,818 | 25,686 | |||||
Other liabilities | 193,724 | 189,362 | |||||
Federal Home Loan Bank advances and long-term debt | 908,623 | 1,040,149 | |||||
Total Liabilities | 14,212,446 | 14,377,969 | |||||
SHAREHOLDERS’ EQUITY | |||||||
Common stock, $2.50 par value, 600 million shares authorized, 216.7 million shares issued in 2012 and 216.2 million shares issued in 2011 | 541,820 | 540,386 | |||||
Additional paid-in capital | 1,425,801 | 1,423,727 | |||||
Retained earnings | 339,638 | 264,059 | |||||
Accumulated other comprehensive income | 11,807 | 7,955 | |||||
Treasury stock, at cost, 17.8 million shares in 2012 and 16.0 million shares in 2011 | (258,383 | ) | (243,588 | ) | |||
Total Shareholders’ Equity | 2,060,683 | 1,992,539 | |||||
Total Liabilities and Shareholders’ Equity | $ | 16,273,129 | $ | 16,370,508 | |||
See Notes to Consolidated Financial Statements |
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
INTEREST INCOME | |||||||||||||||
Loans, including fees | $ | 140,511 | $ | 149,460 | $ | 426,398 | $ | 448,707 | |||||||
Investment securities: | |||||||||||||||
Taxable | 16,658 | 20,166 | 53,943 | 62,722 | |||||||||||
Tax-exempt | 2,558 | 2,896 | 7,855 | 9,217 | |||||||||||
Dividends | 720 | 698 | 2,060 | 2,077 | |||||||||||
Loans held for sale | 578 | 425 | 1,547 | 1,417 | |||||||||||
Other interest income | 35 | 91 | 133 | 225 | |||||||||||
Total Interest Income | 161,060 | 173,736 | 491,936 | 524,365 | |||||||||||
INTEREST EXPENSE | |||||||||||||||
Deposits | 13,848 | 19,684 | 44,841 | 64,745 | |||||||||||
Short-term borrowings | 220 | 151 | 912 | 573 | |||||||||||
Long-term debt | 11,111 | 12,408 | 34,077 | 37,346 | |||||||||||
Total Interest Expense | 25,179 | 32,243 | 79,830 | 102,664 | |||||||||||
Net Interest Income | 135,881 | 141,493 | 412,106 | 421,701 | |||||||||||
Provision for credit losses | 23,000 | 31,000 | 76,500 | 105,000 | |||||||||||
Net Interest Income After Provision for Credit Losses | 112,881 | 110,493 | 335,606 | 316,701 | |||||||||||
NON-INTEREST INCOME | |||||||||||||||
Service charges on deposit accounts | 15,651 | 15,164 | 45,860 | 42,801 | |||||||||||
Other service charges and fees | 11,119 | 12,507 | 33,181 | 36,698 | |||||||||||
Mortgage banking income | 10,594 | 7,942 | 31,787 | 19,454 | |||||||||||
Investment management and trust services | 9,429 | 8,914 | 28,628 | 27,756 | |||||||||||
Other | 5,169 | 4,055 | 14,761 | 11,163 | |||||||||||
Investment securities gains (losses), net: | |||||||||||||||
Other-than-temporary impairment losses | (43 | ) | (509 | ) | (100 | ) | (1,601 | ) | |||||||
Less: Portion of gain recognized in other comprehensive income (before taxes) | — | (80 | ) | — | (672 | ) | |||||||||
Net other-than-temporary impairment losses | (43 | ) | (589 | ) | (100 | ) | (2,273 | ) | |||||||
Net gains on sales of investment securities | 85 | 146 | 2,931 | 3,780 | |||||||||||
Investment securities gains (losses), net | 42 | (443 | ) | 2,831 | 1,507 | ||||||||||
Total Non-Interest Income | 52,004 | 48,139 | 157,048 | 139,379 | |||||||||||
NON-INTEREST EXPENSE | |||||||||||||||
Salaries and employee benefits | 62,161 | 58,948 | 182,612 | 169,326 | |||||||||||
Net occupancy expense | 11,161 | 10,790 | 33,301 | 33,030 | |||||||||||
Other outside services | 4,996 | 1,846 | 11,782 | 5,256 | |||||||||||
Equipment expense | 3,816 | 3,032 | 10,370 | 9,541 | |||||||||||
Data processing | 3,776 | 3,473 | 11,223 | 10,059 | |||||||||||
FDIC insurance expense | 3,029 | 3,732 | 9,052 | 11,750 | |||||||||||
Professional fees | 2,728 | 3,247 | 8,294 | 9,198 | |||||||||||
Software | 2,511 | 2,142 | 6,958 | 6,146 | |||||||||||
Other real estate owned and repossession expense | 2,096 | 2,548 | 7,847 | 4,801 | |||||||||||
Operating risk loss | 1,404 | 776 | 6,827 | 306 | |||||||||||
Intangible amortization | 756 | 953 | 2,318 | 3,303 | |||||||||||
Marketing | 648 | 1,923 | 5,703 | 6,622 | |||||||||||
Other | 10,961 | 12,457 | 36,610 | 38,278 | |||||||||||
Total Non-Interest Expense | 110,043 | 105,867 | 332,897 | 307,616 | |||||||||||
Income Before Income Taxes | 54,842 | 52,765 | 159,757 | 148,464 | |||||||||||
Income taxes | 13,260 | 13,441 | 40,152 | 38,970 | |||||||||||
Net Income | $ | 41,582 | $ | 39,324 | $ | 119,605 | $ | 109,494 | |||||||
PER SHARE: | |||||||||||||||
Net Income (Basic) | $ | 0.21 | $ | 0.20 | $ | 0.60 | $ | 0.55 | |||||||
Net Income (Diluted) | 0.21 | 0.20 | 0.60 | 0.55 | |||||||||||
Cash Dividends | 0.08 | 0.05 | 0.22 | 0.14 | |||||||||||
See Notes to Consolidated Financial Statements |
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Net Income | $ | 41,582 | $ | 39,324 | $ | 119,605 | $ | 109,494 | |||||||
Other Comprehensive Income (Loss), net of tax: | |||||||||||||||
Unrealized gain (loss) on securities | 10,834 | (1,876 | ) | 4,714 | 15,143 | ||||||||||
Reclassification adjustment for securities (gains) losses included in net income | (28 | ) | 288 | (1,840 | ) | (979 | ) | ||||||||
Non-credit related unrealized gain (loss) on other-than-temporarily impaired debt securities | 271 | (542 | ) | 234 | 187 | ||||||||||
Unrealized gain on derivative financial instruments | 34 | 34 | 102 | 102 | |||||||||||
Amortization (accretion) of net unrecognized pension and postretirement items | 214 | (13 | ) | 642 | (37 | ) | |||||||||
Other Comprehensive Income (Loss) | 11,325 | (2,109 | ) | 3,852 | 14,416 | ||||||||||
Total Comprehensive Income | $ | 52,907 | $ | 37,215 | $ | 123,457 | $ | 123,910 | |||||||
See Notes to Consolidated Financial Statements |
Common Stock | Retained Earnings | Treasury Stock | Total | |||||||||||||||||||||||
Shares Outstanding | Amount | Additional Paid-in Capital | Accumulated Other Comprehensive Income | |||||||||||||||||||||||
Balance at December 31, 2011 | 200,164 | $ | 540,386 | $ | 1,423,727 | $ | 264,059 | $ | 7,955 | $ | (243,588 | ) | $ | 1,992,539 | ||||||||||||
Net income | 119,605 | 119,605 | ||||||||||||||||||||||||
Other comprehensive income | 3,852 | 3,852 | ||||||||||||||||||||||||
Stock issued, including related tax benefits | 926 | 1,434 | (1,889 | ) | 5,565 | 5,110 | ||||||||||||||||||||
Stock-based compensation awards | 3,963 | 3,963 | ||||||||||||||||||||||||
Acquisition of treasury stock | (2,115 | ) | (20,360 | ) | (20,360 | ) | ||||||||||||||||||||
Common stock cash dividends - $0.22 per share | (44,026 | ) | (44,026 | ) | ||||||||||||||||||||||
Balance at September 30, 2012 | 198,975 | $ | 541,820 | $ | 1,425,801 | $ | 339,638 | $ | 11,807 | $ | (258,383 | ) | $ | 2,060,683 | ||||||||||||
Balance at December 31, 2010 | 199,050 | $ | 538,492 | $ | 1,420,127 | $ | 158,453 | $ | 12,495 | $ | (249,178 | ) | $ | 1,880,389 | ||||||||||||
Net income | 109,494 | 109,494 | ||||||||||||||||||||||||
Other comprehensive income | 14,416 | 14,416 | ||||||||||||||||||||||||
Stock issued, including related tax benefits | 841 | 1,508 | (451 | ) | 3,791 | 4,848 | ||||||||||||||||||||
Stock-based compensation awards | 3,473 | 3,473 | ||||||||||||||||||||||||
Common stock cash dividends - $0.14 per share | (27,961 | ) | (27,961 | ) | ||||||||||||||||||||||
Balance at September 30, 2011 | 199,891 | $ | 540,000 | $ | 1,423,149 | $ | 239,986 | $ | 26,911 | $ | (245,387 | ) | $ | 1,984,659 | ||||||||||||
See Notes to Consolidated Financial Statements |
Nine months ended September 30 | |||||||
2012 | 2011 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net Income | $ | 119,605 | $ | 109,494 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Provision for credit losses | 76,500 | 105,000 | |||||
Depreciation and amortization of premises and equipment | 16,735 | 15,824 | |||||
Net amortization of investment securities premiums | 8,039 | 2,596 | |||||
Investment securities gains, net | (2,831 | ) | (1,507 | ) | |||
Net (increase) decrease in loans held for sale | (38,468 | ) | 20,386 | ||||
Amortization of intangible assets | 2,318 | 3,303 | |||||
Stock-based compensation | 3,963 | 3,473 | |||||
Excess tax benefits from stock-based compensation | (25 | ) | — | ||||
Decrease in accrued interest receivable | 1,314 | 1,381 | |||||
Decrease in other assets | 12,498 | 13,599 | |||||
Decrease in accrued interest payable | (3,868 | ) | (5,655 | ) | |||
Decrease in other liabilities | (1,966 | ) | (18,862 | ) | |||
Total adjustments | 74,209 | 139,538 | |||||
Net cash provided by operating activities | 193,814 | 249,032 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Proceeds from sales of securities available for sale | 225,539 | 419,803 | |||||
Proceeds from maturities of securities held to maturity | 228 | 388 | |||||
Proceeds from maturities of securities available for sale | 644,055 | 440,475 | |||||
Purchase of securities held to maturity | (346 | ) | (28 | ) | |||
Purchase of securities available for sale | (796,656 | ) | (616,586 | ) | |||
Decrease in short-term investments | (26,969 | ) | (223,063 | ) | |||
Net increase in loans | (63,440 | ) | (74,029 | ) | |||
Net purchases of premises and equipment | (30,232 | ) | (13,978 | ) | |||
Net cash used in investing activities | (47,821 | ) | (67,018 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Net increase in demand and savings deposits | 510,523 | 728,652 | |||||
Net decrease in time deposits | (434,952 | ) | (479,609 | ) | |||
Decrease in short-term borrowings | (110,062 | ) | (225,122 | ) | |||
Repayments of long-term debt | (131,526 | ) | (93,945 | ) | |||
Net proceeds from issuance of stock | 5,085 | 4,848 | |||||
Excess tax benefits from stock-based compensation | 25 | — | |||||
Dividends paid | (40,117 | ) | (23,922 | ) | |||
Acquisition of treasury stock | (20,360 | ) | — | ||||
Net cash used in financing activities | (221,384 | ) | (89,098 | ) | |||
Net (Decrease) Increase in Cash and Due From Banks | (75,391 | ) | 92,916 | ||||
Cash and Due From Banks at Beginning of Period | 292,598 | 198,954 | |||||
Cash and Due From Banks at End of Period | $ | 217,207 | $ | 291,870 | |||
Supplemental Disclosures of Cash Flow Information: | |||||||
Cash paid during the period for: | |||||||
Interest | $ | 83,698 | $ | 108,319 | |||
Income taxes | 22,747 | 21,216 | |||||
See Notes to Consolidated Financial Statements |
Three months ended September 30 | Nine months ended September 30 | ||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||
(in thousands) | |||||||||||
Weighted average shares outstanding (basic) | 198,956 | 199,028 | 199,371 | 198,801 | |||||||
Effect of dilutive securities | 852 | 786 | 950 | 743 | |||||||
Weighted average shares outstanding (diluted) | 199,808 | 199,814 | 200,321 | 199,544 |
Before-Tax Amount | Tax Effect | Net of Tax Amount | |||||||||
(in thousands) | |||||||||||
Three months ended September 30, 2012 | |||||||||||
Unrealized gain (loss) on securities | $ | 16,668 | $ | (5,834 | ) | $ | 10,834 | ||||
Reclassification adjustment for securities (gains) losses included in net income | (43 | ) | 15 | (28 | ) | ||||||
Non-credit related unrealized gain (loss) on other-than-temporarily impaired debt securities | 417 | (146 | ) | 271 | |||||||
Unrealized gain on derivative financial instruments | 52 | (18 | ) | 34 | |||||||
Amortization (accretion) of net unrecognized pension and postretirement items | 329 | (115 | ) | 214 | |||||||
Total Other Comprehensive Income (Loss) | $ | 17,423 | $ | (6,098 | ) | $ | 11,325 | ||||
Three months ended September 30, 2011 | |||||||||||
Unrealized gain (loss) on securities | $ | (2,886 | ) | $ | 1,010 | $ | (1,876 | ) | |||
Reclassification adjustment for securities (gains) losses included in net income | 443 | (155 | ) | 288 | |||||||
Non-credit related unrealized gain (loss) on other-than-temporarily impaired debt securities | (834 | ) | 292 | (542 | ) | ||||||
Unrealized gain on derivative financial instruments | 52 | (18 | ) | 34 | |||||||
Amortization (accretion) of net unrecognized pension and postretirement items | (20 | ) | 7 | (13 | ) | ||||||
Total Other Comprehensive Income (Loss) | $ | (3,245 | ) | $ | 1,136 | $ | (2,109 | ) | |||
Nine months ended September 30, 2012 | |||||||||||
Unrealized gain (loss) on securities | $ | 7,252 | $ | (2,538 | ) | $ | 4,714 | ||||
Reclassification adjustment for securities (gains) losses included in net income | (2,831 | ) | 991 | (1,840 | ) | ||||||
Non-credit related unrealized gain (loss) on other-than-temporarily impaired debt securities | 360 | (126 | ) | 234 | |||||||
Unrealized gain on derivative financial instruments | 157 | (55 | ) | 102 | |||||||
Amortization (accretion) of net unrecognized pension and postretirement items | 988 | (346 | ) | 642 | |||||||
Total Other Comprehensive Income (Loss) | $ | 5,926 | $ | (2,074 | ) | $ | 3,852 | ||||
Nine months ended September 30, 2011 | |||||||||||
Unrealized gain (loss) on securities | $ | 23,297 | $ | (8,154 | ) | $ | 15,143 | ||||
Reclassification adjustment for securities (gains) losses included in net income | (1,506 | ) | 527 | (979 | ) | ||||||
Non-credit related unrealized gain (loss) on other-than-temporarily impaired debt securities | 288 | (101 | ) | 187 | |||||||
Unrealized gain on derivative financial instruments | 157 | (55 | ) | 102 | |||||||
Amortization (accretion) of net unrecognized pension and postretirement items | (57 | ) | 20 | (37 | ) | ||||||
Total Other Comprehensive Income (Loss) | $ | 22,179 | $ | (7,763 | ) | $ | 14,416 |
Unrealized Gains on Investment Securities Not Other-Than-Temporarily Impaired | Unrealized Non-Credit Losses on Other-Than-Temporarily Impaired Debt Securities | Unrecognized Pension and Postretirement Plan Items | Unrealized Effective Portions of Losses on Forward-Starting Interest Rate Swaps | Total | |||||||||||||||
(in thousands) | |||||||||||||||||||
Three months ended September 30, 2012 | |||||||||||||||||||
Balance at June 30, 2012 | $ | 19,122 | $ | (1,048 | ) | $ | (14,706 | ) | $ | (2,886 | ) | $ | 482 | ||||||
Current-period other comprehensive income | 10,793 | 284 | 214 | 34 | 11,325 | ||||||||||||||
Balance at September 30, 2012 | $ | 29,915 | $ | (764 | ) | $ | (14,492 | ) | $ | (2,852 | ) | $ | 11,807 | ||||||
Three months ended September 30, 2011 | |||||||||||||||||||
Balance at June 30, 2011 | $ | 37,227 | $ | (747 | ) | $ | (4,438 | ) | $ | (3,022 | ) | $ | 29,020 | ||||||
Current-period other comprehensive income (loss) | (1,813 | ) | (317 | ) | (13 | ) | 34 | (2,109 | ) | ||||||||||
Balance at September 30, 2011 | $ | 35,414 | $ | (1,064 | ) | $ | (4,451 | ) | $ | (2,988 | ) | $ | 26,911 | ||||||
Nine months ended September 30, 2012 | |||||||||||||||||||
Balance at December 31, 2011 | $ | 27,054 | $ | (1,011 | ) | $ | (15,134 | ) | $ | (2,954 | ) | $ | 7,955 | ||||||
Current-period other comprehensive income | 2,861 | 247 | 642 | 102 | 3,852 | ||||||||||||||
Balance at September 30, 2012 | $ | 29,915 | $ | (764 | ) | $ | (14,492 | ) | $ | (2,852 | ) | $ | 11,807 | ||||||
Nine months ended September 30, 2011 | |||||||||||||||||||
Balance at December 31, 2010 | $ | 22,354 | $ | (2,355 | ) | $ | (4,414 | ) | $ | (3,090 | ) | $ | 12,495 | ||||||
Current-period other comprehensive income (loss) | 13,060 | 1,291 | (37 | ) | 102 | 14,416 | |||||||||||||
Balance at September 30, 2011 | $ | 35,414 | $ | (1,064 | ) | $ | (4,451 | ) | $ | (2,988 | ) | $ | 26,911 |
Held to Maturity at September 30, 2012 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||
(in thousands) | |||||||||||||||
State and municipal securities | $ | 114 | $ | — | $ | — | $ | 114 | |||||||
Mortgage-backed securities | 340 | 33 | — | 373 | |||||||||||
$ | 454 | $ | 33 | $ | — | $ | 487 | ||||||||
Available for Sale at September 30, 2012 | |||||||||||||||
Equity securities | $ | 113,838 | $ | 4,569 | $ | (1,089 | ) | $ | 117,318 | ||||||
U.S. Government securities | 326 | — | — | 326 | |||||||||||
U.S. Government sponsored agency securities | 2,401 | 39 | — | 2,440 | |||||||||||
State and municipal securities | 293,056 | 14,978 | (2 | ) | 308,032 | ||||||||||
Corporate debt securities | 110,111 | 6,376 | (10,361 | ) | 106,126 | ||||||||||
Collateralized mortgage obligations | 1,014,837 | 15,733 | (380 | ) | 1,030,190 | ||||||||||
Mortgage-backed securities | 1,021,882 | 43,308 | — | 1,065,190 | |||||||||||
Auction rate securities | 188,378 | — | (28,316 | ) | 160,062 | ||||||||||
$ | 2,744,829 | $ | 85,003 | $ | (40,148 | ) | $ | 2,789,684 |
Held to Maturity at December 31, 2011 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||
(in thousands) | |||||||||||||||
U.S. Government sponsored agency securities | $ | 5,987 | $ | — | $ | (14 | ) | $ | 5,973 | ||||||
State and municipal securities | 179 | — | — | 179 | |||||||||||
Mortgage-backed securities | 503 | 44 | — | 547 | |||||||||||
$ | 6,669 | $ | 44 | $ | (14 | ) | $ | 6,699 | |||||||
Available for Sale at December 31, 2011 | |||||||||||||||
Equity securities | $ | 117,486 | $ | 2,383 | $ | (2,819 | ) | $ | 117,050 | ||||||
U.S. Government securities | 334 | — | — | 334 | |||||||||||
U.S. Government sponsored agency securities | 3,987 | 87 | (1 | ) | 4,073 | ||||||||||
State and municipal securities | 306,186 | 15,832 | — | 322,018 | |||||||||||
Corporate debt securities | 132,855 | 4,979 | (14,528 | ) | 123,306 | ||||||||||
Collateralized mortgage obligations | 982,851 | 19,186 | (828 | ) | 1,001,209 | ||||||||||
Mortgage-backed securities | 848,675 | 31,837 | (415 | ) | 880,097 | ||||||||||
Auction rate securities | 240,852 | 120 | (15,761 | ) | 225,211 | ||||||||||
$ | 2,633,226 | $ | 74,424 | $ | (34,352 | ) | $ | 2,673,298 |
Held to Maturity | Available for Sale | ||||||||||||||
Amortized Cost | Estimated Fair Value | Amortized Cost | Estimated Fair Value | ||||||||||||
(in thousands) | |||||||||||||||
Due in one year or less | $ | 114 | $ | 114 | $ | 36,622 | $ | 36,707 | |||||||
Due from one year to five years | — | — | 60,067 | 63,879 | |||||||||||
Due from five years to ten years | — | — | 162,239 | 174,060 | |||||||||||
Due after ten years | — | — | 335,344 | 302,340 | |||||||||||
114 | 114 | 594,272 | 576,986 | ||||||||||||
Collateralized mortgage obligations | — | — | 1,014,837 | 1,030,190 | |||||||||||
Mortgage-backed securities | 340 | 373 | 1,021,882 | 1,065,190 | |||||||||||
$ | 454 | $ | 487 | $ | 2,630,991 | $ | 2,672,366 |
Gross Realized Gains | Gross Realized Losses | Other-than- temporary Impairment Losses | Net Gains (Losses) | ||||||||||||
(in thousands) | |||||||||||||||
Three months ended September 30, 2012 | |||||||||||||||
Equity securities | $ | — | $ | — | $ | (24 | ) | $ | (24 | ) | |||||
Debt securities | 85 | — | (19 | ) | 66 | ||||||||||
Total | $ | 85 | $ | — | $ | (43 | ) | $ | 42 | ||||||
Three months ended September 30, 2011 | |||||||||||||||
Equity securities | $ | 146 | $ | — | $ | (244 | ) | $ | (98 | ) | |||||
Debt securities | — | — | (345 | ) | (345 | ) | |||||||||
Total | $ | 146 | $ | — | $ | (589 | ) | $ | (443 | ) | |||||
Nine months ended September 30, 2012 | |||||||||||||||
Equity securities | $ | 2,603 | $ | — | $ | (81 | ) | $ | 2,522 | ||||||
Debt securities | 328 | — | (19 | ) | 309 | ||||||||||
Total | $ | 2,931 | $ | — | $ | (100 | ) | $ | 2,831 | ||||||
Nine months ended September 30, 2011 | |||||||||||||||
Equity securities | $ | 194 | $ | — | $ | (575 | ) | $ | (381 | ) | |||||
Debt securities | 3,605 | (19 | ) | (1,698 | ) | 1,888 | |||||||||
Total | $ | 3,799 | $ | (19 | ) | $ | (2,273 | ) | $ | 1,507 |
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(in thousands) | |||||||||||||||
Balance of cumulative credit losses on debt securities, beginning of period | $ | (22,692 | ) | $ | (28,876 | ) | $ | (22,781 | ) | $ | (27,560 | ) | |||
Additions for credit losses recorded which were not previously recognized as components of earnings | (19 | ) | (345 | ) | (19 | ) | (1,698 | ) | |||||||
Reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security | 66 | 40 | 155 | 77 | |||||||||||
Balance of cumulative credit losses on debt securities, end of period | $ | (22,645 | ) | $ | (29,181 | ) | $ | (22,645 | ) | $ | (29,181 | ) |
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||
Estimated Fair Value | Unrealized Losses | Estimated Fair Value | Unrealized Losses | Estimated Fair Value | Unrealized Losses | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
State and municipal securities | $ | 567 | $ | (2 | ) | $ | — | $ | — | $ | 567 | $ | (2 | ) | |||||||||
Corporate debt securities | 6,649 | (1,082 | ) | 38,816 | (9,279 | ) | 45,465 | (10,361 | ) | ||||||||||||||
Collateralized mortgage obligations | 137,520 | (211 | ) | 15,618 | (169 | ) | 153,138 | (380 | ) | ||||||||||||||
Auction rate securities | 18,258 | (1,274 | ) | 141,804 | (27,042 | ) | 160,062 | (28,316 | ) | ||||||||||||||
Total debt securities | 162,994 | (2,569 | ) | 196,238 | (36,490 | ) | 359,232 | (39,059 | ) | ||||||||||||||
Equity securities | 2,099 | (145 | ) | 6,247 | (944 | ) | 8,346 | (1,089 | ) | ||||||||||||||
$ | 165,093 | $ | (2,714 | ) | $ | 202,485 | $ | (37,434 | ) | $ | 367,578 | $ | (40,148 | ) |
September 30, 2012 | December 31, 2011 | ||||||||||||||
Amortized cost | Estimated fair value | Amortized cost | Estimated fair value | ||||||||||||
(in thousands) | |||||||||||||||
Single-issuer trust preferred securities | $ | 57,726 | $ | 50,426 | $ | 83,899 | $ | 74,365 | |||||||
Subordinated debt | 44,262 | 48,037 | 40,184 | 41,296 | |||||||||||
Pooled trust preferred securities | 5,601 | 5,141 | 6,236 | 5,109 | |||||||||||
Corporate debt securities issued by financial institutions | 107,589 | 103,604 | 130,319 | 120,770 | |||||||||||
Other corporate debt securities | 2,522 | 2,522 | 2,536 | 2,536 | |||||||||||
Available for sale corporate debt securities | $ | 110,111 | $ | 106,126 | $ | 132,855 | $ | 123,306 |
September 30, 2012 | December 31, 2011 | ||||||
(in thousands) | |||||||
Real-estate - commercial mortgage | $ | 4,632,509 | $ | 4,602,596 | |||
Commercial - industrial, financial and agricultural | 3,507,846 | 3,639,368 | |||||
Real-estate - home equity | 1,603,456 | 1,624,562 | |||||
Real-estate - residential mortgage | 1,213,831 | 1,097,192 | |||||
Real-estate - construction | 597,358 | 615,445 | |||||
Consumer | 301,182 | 318,101 | |||||
Leasing and other | 71,343 | 63,254 | |||||
Overdrafts | 12,480 | 15,446 | |||||
Loans, gross of unearned income | 11,940,005 | 11,975,964 | |||||
Unearned income | (7,004 | ) | (6,994 | ) | |||
Loans, net of unearned income | $ | 11,933,001 | $ | 11,968,970 |
September 30, 2012 | December 31, 2011 | ||||||
(in thousands) | |||||||
Allowance for loan losses | $ | 233,864 | $ | 256,471 | |||
Reserve for unfunded lending commitments | 1,404 | 1,706 | |||||
Allowance for credit losses | $ | 235,268 | $ | 258,177 |
Three months ended September 30 | Nine months ended September 30 | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(in thousands) | |||||||||||||||
Balance at beginning of period | $ | 237,316 | $ | 268,633 | $ | 258,177 | $ | 275,498 | |||||||
Loans charged off | (29,966 | ) | (32,897 | ) | (110,765 | ) | (119,101 | ) | |||||||
Recoveries of loans previously charged off | 4,918 | 2,081 | 11,356 | 7,420 | |||||||||||
Net loans charged off | (25,048 | ) | (30,816 | ) | (99,409 | ) | (111,681 | ) | |||||||
Provision for credit losses | 23,000 | 31,000 | 76,500 | 105,000 | |||||||||||
Balance at end of period | $ | 235,268 | $ | 268,817 | $ | 235,268 | $ | 268,817 |
Real Estate - Commercial Mortgage | Commercial - Industrial, Financial and Agricultural | Real Estate - Home Equity | Real Estate - Residential Mortgage | Real Estate - Construction | Consumer | Leasing and other and overdrafts | Unallocated | Total | |||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
Three months ended September 30, 2012 | |||||||||||||||||||||||||||||||||||
Balance at June 30, 2012 | $ | 69,868 | $ | 71,931 | $ | 14,444 | $ | 26,711 | $ | 25,559 | $ | 1,816 | $ | 3,243 | $ | 22,164 | $ | 235,736 | |||||||||||||||||
Loans charged off | (7,463 | ) | (10,471 | ) | (1,688 | ) | (670 | ) | (8,364 | ) | (685 | ) | (625 | ) | — | (29,966 | ) | ||||||||||||||||||
Recoveries of loans previously charged off | 1,317 | 1,693 | 343 | 25 | 1,040 | 202 | 298 | — | 4,918 | ||||||||||||||||||||||||||
Net loans charged off | (6,146 | ) | (8,778 | ) | (1,345 | ) | (645 | ) | (7,324 | ) | (483 | ) | (327 | ) | — | (25,048 | ) | ||||||||||||||||||
Provision for loan losses (1) | 8,447 | 4,721 | 2,337 | 2,790 | 3,893 | 530 | 77 | 381 | 23,176 | ||||||||||||||||||||||||||
Balance at September 30, 2012 | $ | 72,169 | $ | 67,874 | $ | 15,436 | $ | 28,856 | $ | 22,128 | $ | 1,863 | $ | 2,993 | $ | 22,545 | $ | 233,864 | |||||||||||||||||
Three months ended September 30, 2011 | |||||||||||||||||||||||||||||||||||
Balance at June 30, 2011 | $ | 73,598 | $ | 82,613 | $ | 9,560 | $ | 31,912 | $ | 30,570 | $ | 1,755 | $ | 1,787 | $ | 34,888 | $ | 266,683 | |||||||||||||||||
Loans charged off | (5,730 | ) | (14,840 | ) | (1,158 | ) | (1,514 | ) | (8,535 | ) | (634 | ) | (486 | ) | — | (32,897 | ) | ||||||||||||||||||
Recoveries of loans previously charged off | 249 | 695 | 23 | 36 | 595 | 291 | 192 | — | 2,081 | ||||||||||||||||||||||||||
Net loans charged off | (5,481 | ) | (14,145 | ) | (1,135 | ) | (1,478 | ) | (7,940 | ) | (343 | ) | (294 | ) | — | (30,816 | ) | ||||||||||||||||||
Provision for loan losses (1) | 13,066 | 11,669 | 1,418 | 2,902 | 10,415 | 2,990 | 768 | (12,117 | ) | 31,111 | |||||||||||||||||||||||||
Balance at September 30, 2011 | $ | 81,183 | $ | 80,137 | $ | 9,843 | $ | 33,336 | $ | 33,045 | $ | 4,402 | $ | 2,261 | $ | 22,771 | $ | 266,978 | |||||||||||||||||
Nine months ended September 30, 2012 | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2011 | $ | 85,112 | $ | 74,896 | $ | 12,841 | $ | 22,986 | $ | 30,066 | $ | 2,083 | $ | 2,397 | $ | 26,090 | $ |