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) | Consolidated Balance Sheets - June 30, 2013 and December 31, 2012 | ||
(b) | Consolidated Statements of Income - Three and six months ended June 30, 2013 and 2012 | ||
(c) | Consolidated Statements of Comprehensive Income - Three and six months ended June 30, 2013 and 2012 | ||
(d) | Consolidated Statements of Shareholders’ Equity - Six months ended June 30, 2013 and 2012 | ||
(e) | Consolidated Statements of Cash Flows - Six months ended June 30, 2013 and 2012 | ||
(f) | |||
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations | |||
June 30, 2013 | December 31, 2012 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Cash and due from banks | $ | 219,944 | $ | 256,300 | |||
Interest-bearing deposits with other banks | 130,065 | 173,257 | |||||
Loans held for sale | 60,909 | 67,899 | |||||
Investment securities: | |||||||
Held to maturity (estimated fair value of $246 in 2013 and $319 in 2012) | 227 | 292 | |||||
Available for sale | 2,915,652 | 2,793,725 | |||||
Loans, net of unearned income | 12,645,418 | 12,146,971 | |||||
Less: Allowance for loan losses | (216,431 | ) | (223,903 | ) | |||
Net Loans | 12,428,987 | 11,923,068 | |||||
Premises and equipment | 224,418 | 227,723 | |||||
Accrued interest receivable | 45,713 | 45,786 | |||||
Goodwill | 530,614 | 530,656 | |||||
Intangible assets | 3,838 | 4,907 | |||||
Other assets | 462,043 | 509,484 | |||||
Total Assets | $ | 17,022,410 | $ | 16,533,097 | |||
LIABILITIES | |||||||
Deposits: | |||||||
Noninterest-bearing | $ | 3,168,781 | $ | 3,009,966 | |||
Interest-bearing | 9,089,028 | 9,474,197 | |||||
Total Deposits | 12,257,809 | 12,484,163 | |||||
Short-term borrowings: | |||||||
Federal funds purchased | 780,459 | 592,470 | |||||
Other short-term borrowings | 839,859 | 275,929 | |||||
Total Short-Term Borrowings | 1,620,318 | 868,399 | |||||
Accrued interest payable | 17,708 | 19,330 | |||||
Other liabilities | 208,676 | 185,296 | |||||
Federal Home Loan Bank advances and long-term debt | 889,167 | 894,253 | |||||
Total Liabilities | 14,993,678 | 14,451,441 | |||||
SHAREHOLDERS’ EQUITY | |||||||
Common stock, $2.50 par value, 600 million shares authorized, 217.5 million shares issued in 2013 and 216.8 million shares issued in 2012 | 543,637 | 542,093 | |||||
Additional paid-in capital | 1,429,019 | 1,426,267 | |||||
Retained earnings | 412,609 | 363,937 | |||||
Accumulated other comprehensive income (loss) | (32,466 | ) | 5,675 | ||||
Treasury stock, at cost, 23.8 million shares in 2013 and 17.6 million shares in 2012 | (324,067 | ) | (256,316 | ) | |||
Total Shareholders’ Equity | 2,028,732 | 2,081,656 | |||||
Total Liabilities and Shareholders’ Equity | $ | 17,022,410 | $ | 16,533,097 | |||
See Notes to Consolidated Financial Statements |
Three months ended June 30 | Six months ended June 30 | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
INTEREST INCOME | |||||||||||||||
Loans, including fees | $ | 135,032 | $ | 141,541 | $ | 269,162 | $ | 285,887 | |||||||
Investment securities: | |||||||||||||||
Taxable | 14,516 | 18,624 | 27,913 | 37,285 | |||||||||||
Tax-exempt | 2,345 | 2,596 | 4,824 | 5,297 | |||||||||||
Dividends | 766 | 641 | 1,565 | 1,340 | |||||||||||
Loans held for sale | 384 | 538 | 879 | 969 | |||||||||||
Other interest income | 35 | 45 | 57 | 98 | |||||||||||
Total Interest Income | 153,078 | 163,985 | 304,400 | 330,876 | |||||||||||
INTEREST EXPENSE | |||||||||||||||
Deposits | 9,498 | 14,743 | 19,899 | 30,993 | |||||||||||
Short-term borrowings | 700 | 411 | 1,209 | 692 | |||||||||||
Long-term debt | 10,815 | 11,301 | 21,583 | 22,966 | |||||||||||
Total Interest Expense | 21,013 | 26,455 | 42,691 | 54,651 | |||||||||||
Net Interest Income | 132,065 | 137,530 | 261,709 | 276,225 | |||||||||||
Provision for credit losses | 13,500 | 25,500 | 28,500 | 53,500 | |||||||||||
Net Interest Income After Provision for Credit Losses | 118,565 | 112,030 | 233,209 | 222,725 | |||||||||||
NON-INTEREST INCOME | |||||||||||||||
Service charges on deposit accounts | 14,651 | 15,367 | 28,762 | 30,209 | |||||||||||
Mortgage banking income | 10,997 | 11,143 | 19,170 | 21,193 | |||||||||||
Investment management and trust services | 10,601 | 9,822 | 20,697 | 19,199 | |||||||||||
Other service charges and fees | 9,508 | 11,507 | 18,018 | 22,062 | |||||||||||
Other | 3,694 | 3,931 | 7,590 | 9,494 | |||||||||||
Investment securities gains, net: | |||||||||||||||
Net gains on sales of investment securities | 2,892 | 1,595 | 5,365 | 2,846 | |||||||||||
Other-than-temporary impairment losses | (27 | ) | (57 | ) | (27 | ) | (57 | ) | |||||||
Investment securities gains, net | 2,865 | 1,538 | 5,338 | 2,789 | |||||||||||
Total Non-Interest Income | 52,316 | 53,308 | 99,575 | 104,946 | |||||||||||
NON-INTEREST EXPENSE | |||||||||||||||
Salaries and employee benefits | 63,490 | 60,091 | 124,702 | 120,451 | |||||||||||
Net occupancy expense | 11,447 | 11,205 | 23,291 | 22,140 | |||||||||||
Other outside services | 5,315 | 5,101 | 8,175 | 8,014 | |||||||||||
Data processing | 4,509 | 3,759 | 8,412 | 7,447 | |||||||||||
Equipment expense | 3,893 | 3,185 | 7,801 | 6,554 | |||||||||||
Professional fees | 3,395 | 2,984 | 6,442 | 5,566 | |||||||||||
Software | 3,094 | 2,272 | 5,842 | 4,447 | |||||||||||
FDIC insurance expense | 3,001 | 3,002 | 5,848 | 6,023 | |||||||||||
Other real estate owned and repossession expense | 1,941 | 3,165 | 4,795 | 6,460 | |||||||||||
Marketing | 1,922 | 2,583 | 3,794 | 5,055 | |||||||||||
Operating risk loss | 1,860 | 2,055 | 3,626 | 5,423 | |||||||||||
Intangible amortization | 535 | 761 | 1,069 | 1,562 | |||||||||||
Other | 12,728 | 11,924 | 24,269 | 23,614 | |||||||||||
Total Non-Interest Expense | 117,130 | 112,087 | 228,066 | 222,756 | |||||||||||
Income Before Income Taxes | 53,751 | 53,251 | 104,718 | 104,915 | |||||||||||
Income taxes | 13,169 | 13,360 | 24,909 | 26,892 | |||||||||||
Net Income | $ | 40,582 | $ | 39,891 | $ | 79,809 | $ | 78,023 | |||||||
PER SHARE: | |||||||||||||||
Net Income (Basic) | $ | 0.21 | $ | 0.20 | $ | 0.41 | $ | 0.39 | |||||||
Net Income (Diluted) | 0.21 | 0.20 | 0.41 | 0.39 | |||||||||||
Cash Dividends | 0.08 | 0.07 | 0.16 | 0.14 | |||||||||||
See Notes to Consolidated Financial Statements |
Three months ended June 30 | Six months ended June 30 | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Net Income | $ | 40,582 | $ | 39,891 | $ | 79,809 | $ | 78,023 | |||||||
Other Comprehensive Income (Loss), net of tax: | |||||||||||||||
Unrealized loss on securities | (36,958 | ) | (10,704 | ) | (36,833 | ) | (6,120 | ) | |||||||
Reclassification adjustment for securities gains included in net income | (1,862 | ) | (999 | ) | (3,470 | ) | (1,812 | ) | |||||||
Non-credit related unrealized gain (loss) on other-than-temporarily impaired debt securities | 355 | (172 | ) | 1,438 | (37 | ) | |||||||||
Unrealized gain on derivative financial instruments | 34 | 34 | 68 | 68 | |||||||||||
Amortization of net unrecognized pension and postretirement items | 328 | 214 | 656 | 428 | |||||||||||
Other Comprehensive Loss | (38,103 | ) | (11,627 | ) | (38,141 | ) | (7,473 | ) | |||||||
Total Comprehensive Income | $ | 2,479 | $ | 28,264 | $ | 41,668 | $ | 70,550 | |||||||
See Notes to Consolidated Financial Statements |
Common Stock | Retained Earnings | Treasury Stock | Total | |||||||||||||||||||||||
Shares Outstanding | Amount | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||
Balance at December 31, 2012 | 199,225 | $ | 542,093 | $ | 1,426,267 | $ | 363,937 | $ | 5,675 | $ | (256,316 | ) | $ | 2,081,656 | ||||||||||||
Net income | 79,809 | 79,809 | ||||||||||||||||||||||||
Other comprehensive loss | (38,141 | ) | (38,141 | ) | ||||||||||||||||||||||
Stock issued, including related tax benefits | 854 | 1,544 | (455 | ) | 3,586 | 4,675 | ||||||||||||||||||||
Stock-based compensation awards | 3,207 | 3,207 | ||||||||||||||||||||||||
Acquisition of treasury stock | (6,421 | ) | (71,337 | ) | (71,337 | ) | ||||||||||||||||||||
Common stock cash dividends - $0.16 per share | (31,137 | ) | (31,137 | ) | ||||||||||||||||||||||
Balance at June 30, 2013 | 193,658 | $ | 543,637 | $ | 1,429,019 | $ | 412,609 | $ | (32,466 | ) | $ | (324,067 | ) | $ | 2,028,732 | |||||||||||
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 | ||||||||||||
See Notes to Consolidated Financial Statements |
Six months ended June 30 | |||||||
2013 | 2012 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net Income | $ | 79,809 | $ | 78,023 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Provision for credit losses | 28,500 | 53,500 | |||||
Depreciation and amortization of premises and equipment | 12,577 | 10,845 | |||||
Net amortization of investment securities premiums | 6,099 | 5,251 | |||||
Investment securities gains, net | (5,338 | ) | (2,789 | ) | |||
Net decrease (increase) in loans held for sale | 6,990 | (24,397 | ) | ||||
Amortization of intangible assets | 1,069 | 1,562 | |||||
Stock-based compensation | 3,207 | 3,050 | |||||
Excess tax benefits from stock-based compensation | (148 | ) | (14 | ) | |||
Decrease in accrued interest receivable | 73 | 2,815 | |||||
Decrease in other assets | 21,968 | 3,486 | |||||
Decrease in accrued interest payable | (1,622 | ) | (1,961 | ) | |||
(Decrease) increase in other liabilities | (10,782 | ) | 2,550 | ||||
Total adjustments | 62,593 | 53,898 | |||||
Net cash provided by operating activities | 142,402 | 131,921 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Proceeds from sales of securities available for sale | 176,266 | 210,804 | |||||
Proceeds from maturities of securities held to maturity | 65 | 121 | |||||
Proceeds from maturities of securities available for sale | 381,807 | 371,176 | |||||
Purchase of securities held to maturity | — | (14 | ) | ||||
Purchase of securities available for sale | (674,228 | ) | (602,642 | ) | |||
Decrease in short-term investments | 43,192 | 56,868 | |||||
Net increase in loans | (534,760 | ) | (88,253 | ) | |||
Net purchases of premises and equipment | (9,272 | ) | (20,654 | ) | |||
Net cash used in investing activities | (616,930 | ) | (72,594 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Net increase (decrease) in demand and savings deposits | 55,058 | (10,218 | ) | ||||
Net decrease in time deposits | (281,412 | ) | (279,305 | ) | |||
Increase in short-term borrowings | 751,919 | 334,648 | |||||
Repayments of long-term debt | (5,086 | ) | (131,340 | ) | |||
Net proceeds from issuance of common stock | 4,527 | 3,143 | |||||
Excess tax benefits from stock-based compensation | 148 | 14 | |||||
Dividends paid | (15,645 | ) | (26,056 | ) | |||
Acquisition of treasury stock | (71,337 | ) | — | ||||
Net cash provided by (used in) financing activities | 438,172 | (109,114 | ) | ||||
Net Decrease in Cash and Due From Banks | (36,356 | ) | (49,787 | ) | |||
Cash and Due From Banks at Beginning of Period | 256,300 | 292,598 | |||||
Cash and Due From Banks at End of Period | $ | 219,944 | $ | 242,811 | |||
Supplemental Disclosures of Cash Flow Information: | |||||||
Cash paid during the period for: | |||||||
Interest | $ | 44,313 | $ | 56,612 | |||
Income taxes | 24,336 | 22,646 | |||||
See Notes to Consolidated Financial Statements |
Three months ended June 30 | Six months ended June 30 | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||
(in thousands) | |||||||||||
Weighted average shares outstanding (basic) | 193,273 | 199,671 | 194,777 | 199,581 | |||||||
Effect of dilutive securities | 1,073 | 1,135 | 996 | 994 | |||||||
Weighted average shares outstanding (diluted) | 194,346 | 200,806 | 195,773 | 200,575 |
Before-Tax Amount | Tax Effect | Net of Tax Amount | |||||||||
(in thousands) | |||||||||||
Three months ended June 30, 2013 | |||||||||||
Unrealized loss on securities | $ | (56,858 | ) | $ | 19,900 | $ | (36,958 | ) | |||
Reclassification adjustment for securities gains included in net income (1) | (2,865 | ) | 1,003 | (1,862 | ) | ||||||
Non-credit related unrealized gains (losses) on other-than-temporarily impaired debt securities | 546 | (191 | ) | 355 | |||||||
Unrealized gain on derivative financial instruments | 51 | (17 | ) | 34 | |||||||
Amortization of net unrecognized pension and postretirement items (2) | 504 | (176 | ) | 328 | |||||||
Total Other Comprehensive Income (Loss) | $ | (58,622 | ) | $ | 20,519 | $ | (38,103 | ) | |||
Three months ended June 30, 2012 | |||||||||||
Unrealized loss on securities | $ | (16,467 | ) | $ | 5,763 | $ | (10,704 | ) | |||
Reclassification adjustment for securities gains included in net income (1) | (1,538 | ) | 539 | (999 | ) | ||||||
Non-credit related unrealized gains (losses) on other-than-temporarily impaired debt securities | (265 | ) | 93 | (172 | ) | ||||||
Unrealized gain on derivative financial instruments | 52 | (18 | ) | 34 | |||||||
Amortization of net unrecognized pension and postretirement items (2) | 330 | (116 | ) | 214 | |||||||
Total Other Comprehensive Income (Loss) | $ | (17,888 | ) | $ | 6,261 | $ | (11,627 | ) | |||
Six months ended June 30, 2013 | |||||||||||
Unrealized loss on securities | $ | (56,666 | ) | $ | 19,833 | $ | (36,833 | ) | |||
Reclassification adjustment for securities gains included in net income (1) | (5,338 | ) | 1,868 | (3,470 | ) | ||||||
Non-credit related unrealized gains (losses) on other-than-temporarily impaired debt securities | 2,212 | (774 | ) | 1,438 | |||||||
Unrealized gain on derivative financial instruments | 105 | (37 | ) | 68 | |||||||
Amortization of net unrecognized pension and postretirement items (2) | 1,009 | (353 | ) | 656 | |||||||
Total Other Comprehensive Income (Loss) | $ | (58,678 | ) | $ | 20,537 | $ | (38,141 | ) | |||
Six months ended June 30, 2012 | |||||||||||
Unrealized loss on securities | $ | (9,415 | ) | $ | 3,295 | $ | (6,120 | ) | |||
Reclassification adjustment for securities gains included in net income (1) | (2,789 | ) | 977 | (1,812 | ) | ||||||
Non-credit related unrealized gains (losses) on other-than-temporarily impaired debt securities | (57 | ) | 20 | (37 | ) | ||||||
Unrealized gain on derivative financial instruments | 104 | (36 | ) | 68 | |||||||
Amortization of net unrecognized pension and postretirement items (2) | 659 | (231 | ) | 428 | |||||||
Total Other Comprehensive Income (Loss) | $ | (11,498 | ) | $ | 4,025 | $ | (7,473 | ) |
(1) | Amounts reclassified out of accumulated other comprehensive income. Before-tax amounts included within "Investment securities gains, net" on the consolidated statements of income. See Note D, "Investment Securities," for additional details. |
(2) | Amounts reclassified out of accumulated other comprehensive income. Before-tax amounts included within "Salaries and employee benefits" on the consolidated statements of income. See Note H, "Employee Benefit Plans," for additional details. |
Unrealized Gains (Losses) on Investment Securities Not Other-Than-Temporarily Impaired | Unrealized Non-Credit Gains (Losses) on Other-Than-Temporarily Impaired Debt Securities | Unrealized Effective Portions of Losses on Forward-Starting Interest Rate Swaps | Unrecognized Pension and Postretirement Plan Income (Costs) | Total | |||||||||||||||
(in thousands) | |||||||||||||||||||
Three months ended June 30, 2013 | |||||||||||||||||||
Balance at March 31, 2013 | $ | 24,878 | $ | 1,696 | $ | (2,784 | ) | $ | (18,153 | ) | $ | 5,637 | |||||||
Other comprehensive income (loss) before reclassifications | (36,958 | ) | 355 | — | — | (36,603 | ) | ||||||||||||
Amounts reclassified from accumulated other comprehensive loss | (861 | ) | (1,001 | ) | 34 | 328 | (1,500 | ) | |||||||||||
Balance at June 30, 2013 | $ | (12,941 | ) | $ | 1,050 | $ | (2,750 | ) | $ | (17,825 | ) | $ | (32,466 | ) | |||||
Three months ended June 30, 2012 | |||||||||||||||||||
Balance at March 31, 2012 | $ | 30,825 | $ | (876 | ) | $ | (2,920 | ) | $ | (14,920 | ) | $ | 12,109 | ||||||
Other comprehensive income (loss) before reclassifications | (10,704 | ) | (172 | ) | — | — | (10,876 | ) | |||||||||||
Amounts reclassified from accumulated other comprehensive loss | (999 | ) | — | 34 | 214 | (751 | ) | ||||||||||||
Balance at June 30, 2012 | $ | 19,122 | $ | (1,048 | ) | $ | (2,886 | ) | $ | (14,706 | ) | $ | 482 | ||||||
Six months ended June 30, 2013 | |||||||||||||||||||
Balance at December 31, 2012 | $ | 26,361 | $ | 613 | $ | (2,818 | ) | $ | (18,481 | ) | $ | 5,675 | |||||||
Other comprehensive income (loss) before reclassifications | (36,833 | ) | 1,438 | — | — | (35,395 | ) | ||||||||||||
Amounts reclassified from accumulated other comprehensive loss | (2,469 | ) | (1,001 | ) | 68 | 656 | (2,746 | ) | |||||||||||
Balance at June 30, 2013 | $ | (12,941 | ) | $ | 1,050 | $ | (2,750 | ) | $ | (17,825 | ) | $ | (32,466 | ) | |||||
Six months ended June 30, 2012 | |||||||||||||||||||
Balance at December 31, 2011 | $ | 27,054 | $ | (1,011 | ) | $ | (2,954 | ) | $ | (15,134 | ) | $ | 7,955 | ||||||
Other comprehensive income (loss) before reclassifications | (6,120 | ) | — | — | — | (6,120 | ) | ||||||||||||
Amounts reclassified from accumulated other comprehensive loss | (1,812 | ) | (37 | ) | 68 | 428 | (1,353 | ) | |||||||||||
Balance at June 30, 2012 | $ | 19,122 | $ | (1,048 | ) | $ | (2,886 | ) | $ | (14,706 | ) | $ | 482 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
Held to Maturity at June 30, 2013 | (in thousands) | ||||||||||||||
Mortgage-backed securities | $ | 227 | $ | 19 | $ | — | $ | 246 | |||||||
Available for Sale at June 30, 2013 | |||||||||||||||
Equity securities | $ | 136,364 | $ | 6,903 | $ | (148 | ) | $ | 143,119 | ||||||
U.S. Government securities | 2,251 | — | — | 2,251 | |||||||||||
U.S. Government sponsored agency securities | 809 | 11 | (1 | ) | 819 | ||||||||||
State and municipal securities | 290,351 | 8,140 | (2,758 | ) | 295,733 | ||||||||||
Corporate debt securities | 108,315 | 5,424 | (6,262 | ) | 107,477 | ||||||||||
Collateralized mortgage obligations | 1,253,484 | 10,186 | (23,108 | ) | 1,240,562 | ||||||||||
Mortgage-backed securities | 970,273 | 14,519 | (11,693 | ) | 973,099 | ||||||||||
Auction rate securities | 172,092 | 15 | (19,515 | ) | 152,592 | ||||||||||
$ | 2,933,939 | $ | 45,198 | $ | (63,485 | ) | $ | 2,915,652 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
Held to Maturity at December 31, 2012 | (in thousands) | ||||||||||||||
Mortgage-backed securities | $ | 292 | $ | 27 | $ | — | $ | 319 | |||||||
Available for Sale at December 31, 2012 | |||||||||||||||
Equity securities | $ | 118,465 | $ | 5,016 | $ | (918 | ) | $ | 122,563 | ||||||
U.S. Government securities | 325 | — | — | 325 | |||||||||||
U.S. Government sponsored agency securities | 2,376 | 21 | — | 2,397 | |||||||||||
State and municipal securities | 301,842 | 13,763 | (86 | ) | 315,519 | ||||||||||
Corporate debt securities | 112,162 | 7,858 | (7,178 | ) | 112,842 | ||||||||||
Collateralized mortgage obligations | 1,195,234 | 16,008 | (123 | ) | 1,211,119 | ||||||||||
Mortgage-backed securities | 847,790 | 31,831 | — | 879,621 | |||||||||||
Auction rate securities | 174,026 | — | (24,687 | ) | 149,339 | ||||||||||
$ | 2,752,220 | $ | 74,497 | $ | (32,992 | ) | $ | 2,793,725 |
Held to Maturity | Available for Sale | ||||||||||||||
Amortized Cost | Estimated Fair Value | Amortized Cost | Estimated Fair Value | ||||||||||||
(in thousands) | |||||||||||||||
Due in one year or less | $ | — | $ | — | $ | 44,411 | $ | 44,491 | |||||||
Due from one year to five years | — | — | 66,739 | 70,642 | |||||||||||
Due from five years to ten years | — | — | 190,392 | 194,234 | |||||||||||
Due after ten years | — | — | 272,276 | 249,505 | |||||||||||
— | — | 573,818 | 558,872 | ||||||||||||
Collateralized mortgage obligations | — | — | 1,253,484 | 1,240,562 | |||||||||||
Mortgage-backed securities | 227 | 246 | 970,273 | 973,099 | |||||||||||
$ | 227 | $ | 246 | $ | 2,797,575 | $ | 2,772,533 |
Gross Realized Gains | Gross Realized Losses | Other-than- temporary Impairment Losses | Net Gains | ||||||||||||
Three months ended June 30, 2013 | (in thousands) | ||||||||||||||
Equity securities | $ | 1,083 | $ | (28 | ) | $ | (27 | ) | $ | 1,028 | |||||
Debt securities | 1,837 | — | — | 1,837 | |||||||||||
Total | $ | 2,920 | $ | (28 | ) | $ | (27 | ) | $ | 2,865 | |||||
Three months ended June 30, 2012 | |||||||||||||||
Equity securities | $ | 1,517 | $ | — | $ | (57 | ) | $ | 1,460 | ||||||
Debt securities | 78 | — | — | 78 | |||||||||||
Total | $ | 1,595 | $ | — | $ | (57 | ) | $ | 1,538 | ||||||
Six months ended June 30, 2013 | |||||||||||||||
Equity securities | $ | 2,222 | $ | (28 | ) | $ | (27 | ) | $ | 2,167 | |||||
Debt securities | 3,171 | — | — | 3,171 | |||||||||||
Total | $ | 5,393 | $ | (28 | ) | $ | (27 | ) | $ | 5,338 | |||||
Six months ended June 30, 2012 | |||||||||||||||
Equity securities | $ | 2,603 | $ | — | $ | (57 | ) | $ | 2,546 | ||||||
Debt securities | 243 | — | — | 243 | |||||||||||
Total | $ | 2,846 | $ | — | $ | (57 | ) | $ | 2,789 |
Three Months ended June 30 | Six Months ended June 30 | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(in thousands) | |||||||||||||||
Balance of cumulative credit losses on debt securities, beginning of period | $ | (23,079 | ) | $ | (22,692 | ) | $ | (23,079 | ) | $ | (22,781 | ) | |||
Reductions for securities sold during the period | 2,468 | — | 2,468 | — | |||||||||||
Reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security | 4 | — | 4 | 89 | |||||||||||
Balance of cumulative credit losses on debt securities, end of period | $ | (20,607 | ) | $ | (22,692 | ) | $ | (20,607 | ) | $ | (22,692 | ) |
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 | $ | — | $ | — | $ | 69 | $ | (1 | ) | $ | 69 | $ | (1 | ) | |||||||||
State and municipal securities | 53,135 | (2,758 | ) | — | — | 53,135 | (2,758 | ) | |||||||||||||||
Corporate debt securities | 6,877 | (115 | ) | 44,348 | (6,147 | ) | 51,225 | (6,262 | ) | ||||||||||||||
Collateralized mortgage obligations | 805,728 | (23,108 | ) | — | — | 805,728 | (23,108 | ) | |||||||||||||||
Mortgage-backed securities | 635,582 | (11,693 | ) | — | — | 635,582 | (11,693 | ) | |||||||||||||||
Auction rate securities | 87 | (2 | ) | 151,934 | (19,513 | ) | 152,021 | (19,515 | ) | ||||||||||||||
Total debt securities | 1,501,409 | (37,676 | ) | 196,351 | (25,661 | ) | 1,697,760 | (63,337 | ) | ||||||||||||||
Equity securities | 332 | (17 | ) | 848 | (131 | ) | 1,180 | (148 | ) | ||||||||||||||
$ | 1,501,741 | $ | (37,693 | ) | $ | 197,199 | $ | (25,792 | ) | $ | 1,698,940 | $ | (63,485 | ) |
June 30, 2013 | December 31, 2012 | ||||||||||||||
Amortized cost | Estimated fair value | Amortized cost | Estimated fair value | ||||||||||||
(in thousands) | |||||||||||||||
Single-issuer trust preferred securities | $ | 54,699 | $ | 49,222 | $ | 56,834 | $ | 51,656 | |||||||
Subordinated debt | 47,344 | 50,365 | 47,286 | 51,747 | |||||||||||
Pooled trust preferred securities | 3,773 | 5,391 | 5,530 | 6,927 | |||||||||||
Corporate debt securities issued by financial institutions | 105,816 | 104,978 | 109,650 | 110,330 | |||||||||||
Other corporate debt securities | 2,499 | 2,499 | 2,512 | 2,512 | |||||||||||
Available for sale corporate debt securities | $ | 108,315 | $ | 107,477 | $ | 112,162 | $ | 112,842 |
June 30, 2013 | December 31, 2012 | ||||||
(in thousands) | |||||||
Real-estate - commercial mortgage | $ | 4,856,916 | $ | 4,664,426 | |||
Commercial - industrial, financial and agricultural | 3,712,974 | 3,612,065 | |||||
Real-estate - home equity | 1,760,268 | 1,632,390 | |||||
Real-estate - residential mortgage | 1,313,345 | 1,257,432 | |||||
Real-estate - construction | 610,280 | 584,118 | |||||
Consumer | 300,233 | 309,864 | |||||
Leasing and other | 83,855 | 75,521 | |||||
Overdrafts | 15,224 | 18,393 | |||||
Loans, gross of unearned income | 12,653,095 | 12,154,209 | |||||
Unearned income | (7,677 | ) | (7,238 | ) | |||
Loans, net of unearned income | $ | 12,645,418 | $ | 12,146,971 |
June 30, 2013 | December 31, 2012 | ||||||
(in thousands) | |||||||
Allowance for loan losses | $ | 216,431 | $ | 223,903 | |||
Reserve for unfunded lending commitments | 1,195 | 1,536 | |||||
Allowance for credit losses | $ | 217,626 | $ | 225,439 |
Three months ended June 30 | Six months ended June 30 | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(in thousands) | |||||||||||||||
Balance at beginning of period | $ | 221,527 | $ | 258,137 | $ | 225,439 | $ | 258,177 | |||||||
Loans charged off | (21,383 | ) | (50,540 | ) | (43,489 | ) | (80,799 | ) | |||||||
Recoveries of loans previously charged off | 3,982 | 4,219 | 7,176 | 6,438 | |||||||||||
Net loans charged off | (17,401 | ) | (46,321 | ) | (36,313 | ) | (74,361 | ) | |||||||
Provision for credit losses | 13,500 | 25,500 | 28,500 | 53,500 | |||||||||||
Balance at end of period | $ | 217,626 | $ | 237,316 | $ | 217,626 | $ | 237,316 |
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, 2013 | |||||||||||||||||||||||||||||||||||
Balance at March 31, 2013 | $ | 63,985 | $ | 56,672 | $ | 23,701 | $ | 33,484 | $ | 16,004 | $ | 2,286 | $ | 2,787 | $ | 21,122 | $ | 220,041 | |||||||||||||||||
Loans charged off | (5,193 | ) | (5,960 | ) | (1,966 | ) | (4,465 | ) | (2,597 | ) | (433 | ) | (769 | ) | — | (21,383 | ) | ||||||||||||||||||
Recoveries of loans previously charged off | 1,505 | 756 | 192 | 116 | 744 | 406 | 263 | — | 3,982 | ||||||||||||||||||||||||||
Net loans charged off | (3,688 | ) | (5,204 | ) | (1,774 | ) | (4,349 | ) | (1,853 | ) | (27 | ) | (506 | ) | — | (17,401 | ) | ||||||||||||||||||
Provision for loan losses (1) | (1,601 | ) | 6,089 | 3,809 | 3,549 | 320 | 238 | 644 | 743 | 13,791 | |||||||||||||||||||||||||
Balance at June 30, 2013 | $ | 58,696 | $ | 57,557 | $ | 25,736 | $ | 32,684 | $ | 14,471 | $ | 2,497 | $ | 2,925 | $ | 21,865 | $ | 216,431 | |||||||||||||||||
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 | |||||||||||||||||
Six months ended June 30, 2013 | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 62,928 | $ | 60,205 | $ | 22,776 | $ | 34,536 | $ | 17,287 | $ | 2,367 | $ | 2,752 | $ | 21,052 | $ | 223,903 | |||||||||||||||||
Loans charged off | (9,326 | ) | (15,462 | ) | (4,370 | ) | (7,515 |