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Share Name | Share Symbol | Market | Type |
---|---|---|---|
(MM) | NASDAQ:TAYC | NASDAQ | Ordinary Share |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 21.05 | 0.00 | 01:00:00 |
Delaware
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36-4108550
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(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification Number)
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Large accelerated filer
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¨
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Accelerated filer
|
ý
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|
|
|
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Non-accelerated filer
|
¨
(Do not check if smaller reporting company)
|
Smaller reporting company
|
¨
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|
Page
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PART I. FINANCIAL INFORMATION
|
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Item 1.
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Financial Statements
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Item 2.
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Item 3.
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Item 4.
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PART II. OTHER INFORMATION
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Item 1.
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Item 1A.
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Item 2.
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Item 3.
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Item 4.
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Item 5.
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Item 6.
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June 30,
2013 |
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December 31,
2012 |
||||
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(Unaudited)
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|
|||||
ASSETS
|
|
|
|
||||
Cash and cash equivalents:
|
|
|
|
||||
Cash and due from banks
|
$
|
97,764
|
|
|
$
|
165,921
|
|
Short-term investments
|
68
|
|
|
464
|
|
||
Total cash and cash equivalents
|
97,832
|
|
|
166,385
|
|
||
Investment securities:
|
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|
||||
Available for sale, at fair value
|
1,013,635
|
|
|
936,938
|
|
||
Held to maturity, at amortized cost (fair value of $410,828 at June 30, 2013 and $342,231 at December 31, 2012)
|
420,691
|
|
|
330,819
|
|
||
Loans held for sale
|
693,937
|
|
|
938,379
|
|
||
Loans, net of allowance for loan losses of $83,576 at June 30, 2013 and $82,191 at December 31, 2012
|
3,218,972
|
|
|
3,086,112
|
|
||
Premises, leasehold improvements and equipment, net
|
23,941
|
|
|
16,062
|
|
||
Investments in Federal Home Loan Bank and Federal Reserve Bank stock, at cost
|
79,726
|
|
|
74,950
|
|
||
Mortgage servicing rights, at fair value
|
145,729
|
|
|
78,917
|
|
||
Other real estate and repossessed assets, net
|
19,794
|
|
|
24,259
|
|
||
Other assets
|
187,113
|
|
|
149,589
|
|
||
Total assets
|
$
|
5,901,370
|
|
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$
|
5,802,410
|
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LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
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|
||||
Deposits:
|
|
|
|
||||
Noninterest-bearing
|
$
|
1,138,839
|
|
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$
|
1,179,724
|
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Interest-bearing
|
2,553,587
|
|
|
2,348,618
|
|
||
Total deposits
|
3,692,426
|
|
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3,528,342
|
|
||
Accrued interest, taxes and other liabilities
|
133,208
|
|
|
131,473
|
|
||
Short-term borrowings
|
1,428,855
|
|
|
1,463,019
|
|
||
Long-term borrowings
|
—
|
|
|
—
|
|
||
Junior subordinated debentures
|
86,607
|
|
|
86,607
|
|
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Subordinated notes, net
|
—
|
|
|
33,366
|
|
||
Total liabilities
|
5,341,096
|
|
|
5,242,807
|
|
||
Stockholders’ equity:
|
|
|
|
||||
Preferred stock, $0.01 par value, 10,000,000 shares authorized:
|
|
|
|
||||
Series A, 8% perpetual non-cumulative; 4,000,000 shares authorized, 4,000,000 shares issued and outstanding at June 30, 2013 and December 31, 2012, $25 liquidation value
|
100,000
|
|
|
100,000
|
|
||
Series B, 5% fixed rate cumulative perpetual; 104,823 shares authorized, 104,823 shares issued and outstanding at June 30, 2013 and December 31, 2012, $1,000 liquidation value
|
104,745
|
|
|
103,813
|
|
||
Nonvoting convertible; 1,350,000 shares authorized, 1,282,674 shares issued and outstanding at June 30, 2013 and at December 31, 2012
|
13
|
|
|
13
|
|
||
Common stock, $0.01 par value; 45,000,000 shares authorized; 30,456,637 shares issued at June 30, 2013 and 30,150,040 shares issued at December 31, 2012; 29,098,639 shares outstanding at June 30, 2013 and 28,792,042 shares outstanding at December 31, 2012
|
305
|
|
|
302
|
|
||
Surplus
|
416,420
|
|
|
412,391
|
|
||
Accumulated deficit
|
(38,104
|
)
|
|
(63,537
|
)
|
||
Accumulated other comprehensive income, net
|
6,480
|
|
|
36,206
|
|
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Treasury stock, at cost, 1,357,998 shares at June 30, 2013 and December 31, 2012
|
(29,585
|
)
|
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(29,585
|
)
|
||
Total stockholders’ equity
|
560,274
|
|
|
559,603
|
|
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Total liabilities and stockholders’ equity
|
$
|
5,901,370
|
|
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$
|
5,802,410
|
|
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For the Three Months
|
|
For the Six Months
|
||||||||||||
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Ended June 30,
|
|
Ended June 30,
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Interest income:
|
|
|
|
|
|
|
|
||||||||
Interest and fees on loans
|
$
|
37,499
|
|
|
$
|
35,422
|
|
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$
|
75,128
|
|
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$
|
70,705
|
|
Interest and dividends on investment securities:
|
|
|
|
|
|
|
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||||||||
Taxable
|
8,398
|
|
|
9,889
|
|
|
17,015
|
|
|
20,207
|
|
||||
Tax-exempt
|
2,077
|
|
|
691
|
|
|
3,504
|
|
|
1,354
|
|
||||
Interest on cash equivalents
|
1
|
|
|
3
|
|
|
2
|
|
|
6
|
|
||||
Total interest income
|
47,975
|
|
|
46,005
|
|
|
95,649
|
|
|
92,272
|
|
||||
Interest expense:
|
|
|
|
|
|
|
|
||||||||
Deposits
|
4,213
|
|
|
4,938
|
|
|
8,477
|
|
|
10,349
|
|
||||
Short-term borrowings
|
473
|
|
|
629
|
|
|
893
|
|
|
1,192
|
|
||||
Long-term borrowings
|
—
|
|
|
69
|
|
|
—
|
|
|
569
|
|
||||
Junior subordinated debentures
|
1,444
|
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|
1,464
|
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2,887
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|
|
2,936
|
|
||||
Subordinated notes
|
763
|
|
|
2,527
|
|
|
1,627
|
|
|
5,046
|
|
||||
Total interest expense
|
6,893
|
|
|
9,627
|
|
|
13,884
|
|
|
20,092
|
|
||||
Net interest income
|
41,082
|
|
|
36,378
|
|
|
81,765
|
|
|
72,180
|
|
||||
Provision for loan losses
|
700
|
|
|
100
|
|
|
1,000
|
|
|
7,450
|
|
||||
Net interest income after provision for loan losses
|
40,382
|
|
|
36,278
|
|
|
80,765
|
|
|
64,730
|
|
||||
Noninterest income:
|
|
|
|
|
|
|
|
||||||||
Service charges
|
3,505
|
|
|
3,355
|
|
|
6,996
|
|
|
6,646
|
|
||||
Mortgage banking revenue
|
38,533
|
|
|
23,014
|
|
|
70,563
|
|
|
40,544
|
|
||||
Gains on sales of investment securities, net
|
6
|
|
|
3,020
|
|
|
7
|
|
|
3,976
|
|
||||
Other derivative income
|
1,704
|
|
|
815
|
|
|
3,264
|
|
|
1,376
|
|
||||
Other noninterest income
|
2,353
|
|
|
1,685
|
|
|
4,990
|
|
|
3,293
|
|
||||
Total noninterest income
|
46,101
|
|
|
31,889
|
|
|
85,820
|
|
|
55,835
|
|
||||
Noninterest expense:
|
|
|
|
|
|
|
|
||||||||
Salaries and employee benefits
|
37,322
|
|
|
28,278
|
|
|
71,350
|
|
|
51,915
|
|
||||
Occupancy of premises
|
2,625
|
|
|
2,136
|
|
|
5,193
|
|
|
4,311
|
|
||||
Furniture and equipment
|
894
|
|
|
786
|
|
|
1,631
|
|
|
1,401
|
|
||||
Nonperforming asset expense, net
|
(1,198
|
)
|
|
828
|
|
|
(639
|
)
|
|
1,522
|
|
||||
Early extinguishment of debt
|
5,380
|
|
|
2,987
|
|
|
5,380
|
|
|
3,988
|
|
||||
FDIC assessment
|
1,759
|
|
|
1,497
|
|
|
3,783
|
|
|
3,199
|
|
||||
Legal fees, net
|
1,117
|
|
|
757
|
|
|
1,975
|
|
|
1,613
|
|
||||
Loan expense, net
|
2,895
|
|
|
1,425
|
|
|
5,266
|
|
|
2,543
|
|
||||
Outside services
|
2,818
|
|
|
708
|
|
|
5,314
|
|
|
1,287
|
|
||||
Other noninterest expense
|
6,659
|
|
|
4,584
|
|
|
12,773
|
|
|
8,775
|
|
||||
Total noninterest expense
|
60,271
|
|
|
43,986
|
|
|
112,026
|
|
|
80,554
|
|
||||
Income before income taxes
|
26,212
|
|
|
24,181
|
|
|
54,559
|
|
|
40,011
|
|
||||
Income tax expense
|
10,595
|
|
|
9,956
|
|
|
21,685
|
|
|
16,317
|
|
||||
Net income
|
15,617
|
|
|
14,225
|
|
|
32,874
|
|
|
23,694
|
|
||||
Preferred dividends and discounts
|
(3,780
|
)
|
|
(1,748
|
)
|
|
(7,441
|
)
|
|
(3,490
|
)
|
||||
Net income applicable to common stockholders
|
$
|
11,837
|
|
|
$
|
12,477
|
|
|
$
|
25,433
|
|
|
$
|
20,204
|
|
Basic income per common share
|
$
|
0.39
|
|
|
$
|
0.42
|
|
|
$
|
0.84
|
|
|
$
|
0.68
|
|
Diluted income per common share
|
0.39
|
|
|
0.41
|
|
|
0.83
|
|
|
0.66
|
|
|
For the Three Months
|
|
For the Six Months
|
||||||||||||
|
Ended June 30,
|
|
Ended June 30,
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Net income
|
$
|
15,617
|
|
|
$
|
14,225
|
|
|
$
|
32,874
|
|
|
$
|
23,694
|
|
Other comprehensive income (loss), net of income tax:
|
|
|
|
|
|
|
|
||||||||
Change in unrealized gains and losses on available for sale securities, net of reclassification adjustment
|
(26,317
|
)
|
|
1,069
|
|
|
(30,161
|
)
|
|
(517
|
)
|
||||
Change in deferred gains and losses on investments transferred to held to maturity from available for sale
|
(235
|
)
|
|
4,878
|
|
|
(547
|
)
|
|
4,906
|
|
||||
Change in unrealized loss from cash flow hedging instruments
|
741
|
|
|
212
|
|
|
982
|
|
|
388
|
|
||||
Total other comprehensive income (loss), net of income tax
|
(25,811
|
)
|
|
6,159
|
|
|
(29,726
|
)
|
|
4,777
|
|
||||
Total comprehensive income (loss), net of income tax
|
$
|
(10,194
|
)
|
|
$
|
20,384
|
|
|
$
|
3,148
|
|
|
$
|
28,471
|
|
TAYLOR CAPITAL GROUP, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (unaudited)
(dollars in thousands, except per share data)
|
|||||||||||||||||||||||||||||||||||||||||||
|
Preferred Stock, Series A
|
|
Preferred
Stock,
Series B
|
|
Preferred
Stock,
Series D
|
|
Preferred
Stock,
Series G
|
|
Nonvoting
Convertible
Preferred
Stock
|
|
Common
Stock
|
|
Surplus
|
|
Accumulated
Deficit
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Treasury
Stock
|
|
Total
|
||||||||||||||||||||||
Balance at December 31, 2012
|
$
|
100,000
|
|
|
$
|
103,813
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
13
|
|
|
$
|
302
|
|
|
$
|
412,391
|
|
|
$
|
(63,537
|
)
|
|
$
|
36,206
|
|
|
$
|
(29,585
|
)
|
|
$
|
559,603
|
|
Issuance of restricted stock grants, net of forfeitures
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
2
|
|
||||||||||||
Exercise of stock options
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
35
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
35
|
|
|||||||||||
Amortization of stock-based compensation awards
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
3,915
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,915
|
|
||||||||||||
Tax expense on options, dividends and vesting
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(27
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(27
|
)
|
|||||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
32,874
|
|
|
—
|
|
|
—
|
|
|
32,874
|
|
|||||||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(29,726
|
)
|
|
—
|
|
|
(29,726
|
)
|
|||||||||||
Issuance of common stock for warrant exercise
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
153
|
|
|
—
|
|
|
—
|
|
|
|
|
|
154
|
|
|||||||||||
Series A Preferred issuance costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(47
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(47
|
)
|
|||||||||||
Series A Preferred dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,889
|
)
|
|
—
|
|
|
—
|
|
|
(3,889
|
)
|
|||||||||||
Preferred stock dividends and discounts accumulated, Series B
|
—
|
|
|
932
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,552
|
)
|
|
—
|
|
|
—
|
|
|
(2,620
|
)
|
|||||||||||
Balance as of June 30, 2013
|
$
|
100,000
|
|
|
$
|
104,745
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
13
|
|
|
$
|
305
|
|
|
$
|
416,420
|
|
|
$
|
(38,104
|
)
|
|
$
|
6,480
|
|
|
$
|
(29,585
|
)
|
|
$
|
560,274
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Balance at December 31, 2011
|
$
|
—
|
|
|
$
|
102,042
|
|
|
$
|
4
|
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
297
|
|
|
$
|
423,674
|
|
|
$
|
(118,426
|
)
|
|
$
|
31,513
|
|
|
$
|
(29,585
|
)
|
|
$
|
409,528
|
|
Issuance of restricted stock grants, net of forfeitures
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||||||||
Amortization of stock-based compensation awards
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
972
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
972
|
|
|||||||||||
Exercise of stock options
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27
|
|
|||||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,694
|
|
|
—
|
|
|
—
|
|
|
23,694
|
|
|||||||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,777
|
|
|
—
|
|
|
4,777
|
|
|||||||||||
Issuance of common stock for warrant exercise
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
123
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
124
|
|
|||||||||||
Exchange of Series D and G for Nonvoting Preferred
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
(9
|
)
|
|
13
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||||
Rights offering and Series C and E conversion costs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(96
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(96
|
)
|
|||||||||||
Preferred stock dividends and discounts accumulated, Series B
|
—
|
|
|
871
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,490
|
)
|
|
—
|
|
|
—
|
|
|
(2,619
|
)
|
|||||||||||
Balance as of June 30, 2012
|
$
|
—
|
|
|
$
|
102,913
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
13
|
|
|
$
|
299
|
|
|
$
|
424,700
|
|
|
$
|
(98,222
|
)
|
|
$
|
36,290
|
|
|
$
|
(29,585
|
)
|
|
$
|
436,408
|
|
TAYLOR CAPITAL GROUP INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (Continued)
(dollars in thousands)
|
|||||||
|
For the Six Months Ended
|
||||||
|
June 30,
|
||||||
|
2013
|
|
2012
|
||||
Cash flows from financing activities:
|
|
|
|
||||
Net increase in deposits
|
165,816
|
|
|
60,965
|
|
||
Net increase (decrease) in short-term borrowings
|
(34,164
|
)
|
|
133,005
|
|
||
Repayments of long-term borrowings
|
—
|
|
|
(127,500
|
)
|
||
Repayment of subordinated notes
|
(37,500
|
)
|
|
—
|
|
||
Net proceeds from preferred stock issuance
|
(47
|
)
|
|
—
|
|
||
Common stock issuance costs
|
—
|
|
|
28
|
|
||
Common stock issued in cashless warrant conversion
|
154
|
|
|
—
|
|
||
Restricted stock grant
|
2
|
|
|
—
|
|
||
Excess tax benefit (shortfall) on stock options exercised and stock awards
|
16
|
|
|
(102
|
)
|
||
Exercise of stock options
|
35
|
|
|
27
|
|
||
Preferred stock dividends paid and discounts accumulated
|
(6,509
|
)
|
|
(2,619
|
)
|
||
Net cash provided by financing activities
|
87,803
|
|
|
63,804
|
|
||
Net decrease in cash and cash equivalents
|
(68,553
|
)
|
|
(15,778
|
)
|
||
Cash and cash equivalents, beginning of period
|
166,385
|
|
|
121,164
|
|
||
Cash and cash equivalents, end of period
|
$
|
97,832
|
|
|
$
|
105,386
|
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Estimated
Fair Value
|
||||||||
|
(in thousands)
|
||||||||||||||
Available For Sale:
|
|
||||||||||||||
June 30, 2013:
|
|
|
|
|
|
|
|
||||||||
U.S. government sponsored agency securities
|
$
|
14,977
|
|
|
$
|
384
|
|
|
$
|
—
|
|
|
$
|
15,361
|
|
Residential mortgage-backed securities
|
538,236
|
|
|
7,913
|
|
|
(10,100
|
)
|
|
536,049
|
|
||||
Commercial mortgage-backed securities
|
128,397
|
|
|
8,045
|
|
|
—
|
|
|
136,442
|
|
||||
Collateralized mortgage obligations
|
14,953
|
|
|
391
|
|
|
—
|
|
|
15,344
|
|
||||
State and municipal obligations
|
323,888
|
|
|
2,313
|
|
|
(15,762
|
)
|
|
310,439
|
|
||||
Total at June 30, 2013
|
$
|
1,020,451
|
|
|
$
|
19,046
|
|
|
$
|
(25,862
|
)
|
|
$
|
1,013,635
|
|
December 31, 2012:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
$
|
9,998
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9,998
|
|
U.S. government sponsored agency securities
|
15,073
|
|
|
983
|
|
|
—
|
|
|
16,056
|
|
||||
Residential mortgage-backed securities
|
549,735
|
|
|
27,385
|
|
|
(406
|
)
|
|
576,714
|
|
||||
Commercial mortgage-backed securities
|
134,774
|
|
|
11,926
|
|
|
—
|
|
|
146,700
|
|
||||
Collateralized mortgage obligations
|
21,106
|
|
|
340
|
|
|
—
|
|
|
21,446
|
|
||||
State and municipal obligations
|
162,702
|
|
|
4,182
|
|
|
(860
|
)
|
|
166,024
|
|
||||
Total at December 31, 2012
|
$
|
893,388
|
|
|
$
|
44,816
|
|
|
$
|
(1,266
|
)
|
|
$
|
936,938
|
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Estimated
Fair Value
|
||||||||
|
(in thousands)
|
||||||||||||||
Held To Maturity:
|
|
||||||||||||||
June 30, 2013:
|
|
|
|
|
|
|
|
||||||||
U.S. government sponsored agency securities
|
$
|
9,992
|
|
|
$
|
—
|
|
|
$
|
(620
|
)
|
|
$
|
9,372
|
|
Residential mortgage-backed securities
|
253,547
|
|
|
3,284
|
|
|
(8,358
|
)
|
|
248,473
|
|
||||
Collateralized mortgage obligations
|
68,421
|
|
|
—
|
|
|
(2,463
|
)
|
|
65,958
|
|
||||
State and municipal obligations
|
88,731
|
|
|
77
|
|
|
(1,783
|
)
|
|
87,025
|
|
||||
Total at June 30, 2013
|
$
|
420,691
|
|
|
$
|
3,361
|
|
|
$
|
(13,224
|
)
|
|
$
|
410,828
|
|
December 31, 2012:
|
|
|
|
|
|
|
|
||||||||
Residential mortgage-backed securities
|
$
|
220,762
|
|
|
$
|
9,150
|
|
|
$
|
(189
|
)
|
|
$
|
229,723
|
|
Collateralized mortgage obligations
|
57,853
|
|
|
2,346
|
|
|
(81
|
)
|
|
60,118
|
|
||||
State and municipal obligations
|
52,204
|
|
|
186
|
|
|
—
|
|
|
52,390
|
|
||||
Total at December 31, 2012
|
$
|
330,819
|
|
|
$
|
11,682
|
|
|
$
|
(270
|
)
|
|
$
|
342,231
|
|
|
For the Quarter Ended
|
|
For the Six Months Ended
|
||||||||||||
|
June 30,
2013 |
|
June 30,
2012 |
|
June 30,
2013 |
|
June 30,
2012 |
||||||||
|
(in thousands)
|
||||||||||||||
Gross realized gains
|
$
|
6
|
|
|
$
|
3,909
|
|
|
$
|
7
|
|
|
$
|
4,865
|
|
Gross realized losses
|
—
|
|
|
(889
|
)
|
|
—
|
|
|
(889
|
)
|
||||
Net realized gains
|
$
|
6
|
|
|
$
|
3,020
|
|
|
$
|
7
|
|
|
$
|
3,976
|
|
|
Length of Continuous Unrealized Loss Position
|
||||||||||||||||||||||
|
Less than 12 months
|
|
12 months or more
|
|
Total
|
||||||||||||||||||
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
Available For Sale:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
June 30, 2013:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage-backed securities
|
$
|
179,520
|
|
|
$
|
(9,717
|
)
|
|
$
|
3,524
|
|
|
$
|
(383
|
)
|
|
$
|
183,044
|
|
|
$
|
(10,100
|
)
|
State and municipal obligations
|
247,475
|
|
|
(15,762
|
)
|
|
—
|
|
|
—
|
|
|
247,475
|
|
|
(15,762
|
)
|
||||||
Total temporarily impaired available for sale securities
|
$
|
426,995
|
|
|
$
|
(25,479
|
)
|
|
$
|
3,524
|
|
|
$
|
(383
|
)
|
|
$
|
430,519
|
|
|
$
|
(25,862
|
)
|
December 31, 2012:
|
|
|
|
|
|
|
|
|
|
||||||||||||||
U.S. government sponsored agency securities
|
$
|
9,998
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9,998
|
|
|
$
|
—
|
|
Residential mortgage-backed securities
|
24,802
|
|
|
(57
|
)
|
|
3,888
|
|
|
(349
|
)
|
|
28,690
|
|
|
(406
|
)
|
||||||
State and municipal obligations
|
52,400
|
|
|
(860
|
)
|
|
—
|
|
|
—
|
|
|
52,400
|
|
|
(860
|
)
|
||||||
Total temporarily impaired available for sale securities
|
$
|
87,200
|
|
|
$
|
(917
|
)
|
|
$
|
3,888
|
|
|
$
|
(349
|
)
|
|
$
|
91,088
|
|
|
$
|
(1,266
|
)
|
|
Length of Continuous Unrealized Loss Position
|
||||||||||||||||||||||
|
Less than 12 months
|
|
12 months or more
|
|
Total
|
||||||||||||||||||
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
|
Fair Value
|
|
Unrealized
Losses
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
Held To Maturity:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
June 30, 2013:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. government sponsored agency securities
|
$
|
9,372
|
|
|
$
|
(620
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9,372
|
|
|
$
|
(620
|
)
|
Residential mortgage-backed securities
|
165,950
|
|
|
(8,086
|
)
|
|
12,035
|
|
|
(272
|
)
|
|
177,985
|
|
|
(8,358
|
)
|
||||||
Collateralized mortgage obligations
|
65,958
|
|
|
(2,463
|
)
|
|
—
|
|
|
—
|
|
|
65,958
|
|
|
(2,463
|
)
|
||||||
State and municipal obligations
|
38,481
|
|
|
(1,783
|
)
|
|
—
|
|
|
—
|
|
|
38,481
|
|
|
(1,783
|
)
|
||||||
Total temporarily impaired held to maturity securities
|
$
|
279,761
|
|
|
$
|
(12,952
|
)
|
|
$
|
12,035
|
|
|
$
|
(272
|
)
|
|
$
|
291,796
|
|
|
$
|
(13,224
|
)
|
December 31, 2012:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage-backed securities
|
$
|
26,728
|
|
|
$
|
(189
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
26,728
|
|
|
$
|
(189
|
)
|
Collateralized mortgage obligations
|
4,659
|
|
|
(81
|
)
|
|
—
|
|
|
—
|
|
|
4,659
|
|
|
(81
|
)
|
||||||
Total temporarily impaired held to maturity securities
|
$
|
31,387
|
|
|
$
|
(270
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
31,387
|
|
|
$
|
(270
|
)
|
|
Amortized
Cost
|
|
Estimated
Fair Value
|
||||
|
(in thousands)
|
||||||
Available For Sale:
|
|
|
|
||||
Due in one year or less
|
$
|
—
|
|
|
$
|
—
|
|
Due after one year through five years
|
5,101
|
|
|
5,361
|
|
||
Due after five years through ten years
|
55,370
|
|
|
57,167
|
|
||
Due after ten years
|
278,394
|
|
|
263,272
|
|
||
Residential mortgage-backed securities
|
538,236
|
|
|
536,049
|
|
||
Commercial mortgage-backed securities
|
128,397
|
|
|
136,442
|
|
||
Collateralized mortgage obligations
|
14,953
|
|
|
15,344
|
|
||
Total available for sale
|
$
|
1,020,451
|
|
|
$
|
1,013,635
|
|
|
Amortized
Cost
|
|
Estimated
Fair Value
|
||||
|
(in thousands)
|
||||||
Held To Maturity:
|
|
|
|
||||
Due after five years through ten years
|
$
|
9,992
|
|
|
$
|
9,372
|
|
Due after ten years
|
88,731
|
|
|
87,025
|
|
||
Residential mortgage-backed securities
|
253,547
|
|
|
248,473
|
|
||
Collateralized mortgage obligations
|
68,421
|
|
|
65,958
|
|
||
Total held to maturity
|
$
|
420,691
|
|
|
$
|
410,828
|
|
|
June 30,
2013 |
|
December 31,
2012 |
||||
|
(in thousands)
|
||||||
Loans:
|
|
|
|
||||
Commercial and industrial
|
$
|
1,707,502
|
|
|
$
|
1,590,587
|
|
Commercial real estate secured
|
1,036,303
|
|
|
965,978
|
|
||
Residential construction and land
|
42,606
|
|
|
45,903
|
|
||
Commercial construction and land
|
119,839
|
|
|
103,715
|
|
||
Lease receivables
|
93,999
|
|
|
50,803
|
|
||
Consumer
|
311,115
|
|
|
416,635
|
|
||
Gross loans
|
3,311,364
|
|
|
3,173,621
|
|
||
Less: Unearned discount
|
(8,816
|
)
|
|
(5,318
|
)
|
||
Loans
|
3,302,548
|
|
|
3,168,303
|
|
||
Less: Allowance for loan losses
|
(83,576
|
)
|
|
(82,191
|
)
|
||
Loans, net
|
$
|
3,218,972
|
|
|
$
|
3,086,112
|
|
Loans Held for Sale:
|
|
|
|
||||
Total Loans Held for Sale
|
$
|
693,937
|
|
|
$
|
938,379
|
|
|
30-59
Days Past
Due
|
|
60-89
Days Past
Due
|
|
Greater
Than 90
Days Past
Due
|
|
Total Past
Due
|
|
Loans Not Past
Due
|
|
Total
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
June 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
16,577
|
|
|
$
|
16,577
|
|
|
$
|
1,690,925
|
|
|
$
|
1,707,502
|
|
Commercial real estate secured
|
—
|
|
|
—
|
|
|
20,900
|
|
|
20,900
|
|
|
1,015,403
|
|
|
1,036,303
|
|
||||||
Residential construction and land
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
42,606
|
|
|
42,606
|
|
||||||
Commercial construction and land
|
—
|
|
|
—
|
|
|
26,272
|
|
|
26,272
|
|
|
93,567
|
|
|
119,839
|
|
||||||
Lease receivables, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
85,183
|
|
|
85,183
|
|
||||||
Consumer
|
4,294
|
|
|
228
|
|
|
5,790
|
|
|
10,312
|
|
|
300,803
|
|
|
311,115
|
|
||||||
Loans
|
$
|
4,294
|
|
|
$
|
228
|
|
|
$
|
69,539
|
|
|
$
|
74,061
|
|
|
$
|
3,228,487
|
|
|
$
|
3,302,548
|
|
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
16,705
|
|
|
$
|
16,705
|
|
|
$
|
1,573,882
|
|
|
$
|
1,590,587
|
|
Commercial real estate secured
|
—
|
|
|
—
|
|
|
14,530
|
|
|
14,530
|
|
|
951,448
|
|
|
965,978
|
|
||||||
Residential construction and land
|
—
|
|
|
—
|
|
|
4,495
|
|
|
4,495
|
|
|
41,408
|
|
|
45,903
|
|
||||||
Commercial construction and land
|
—
|
|
|
—
|
|
|
15,220
|
|
|
15,220
|
|
|
88,495
|
|
|
103,715
|
|
||||||
Lease receivables, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
45,485
|
|
|
45,485
|
|
||||||
Consumer
|
4,137
|
|
|
1,974
|
|
|
8,587
|
|
|
14,698
|
|
|
401,937
|
|
|
416,635
|
|
||||||
Loans
|
$
|
4,137
|
|
|
$
|
1,974
|
|
|
$
|
59,537
|
|
|
$
|
65,648
|
|
|
$
|
3,102,655
|
|
|
$
|
3,168,303
|
|
|
Pass
|
|
Special Mention
|
|
Substandard
|
|
Nonaccrual
|
|
Total Loans
|
||||||||||
|
(in thousands)
|
||||||||||||||||||
June 30, 2013
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
1,672,673
|
|
|
$
|
16,086
|
|
|
$
|
2,166
|
|
|
$
|
16,577
|
|
|
$
|
1,707,502
|
|
Commercial real estate secured
|
971,984
|
|
|
19,071
|
|
|
24,348
|
|
|
20,900
|
|
|
1,036,303
|
|
|||||
Residential construction and land
|
39,046
|
|
|
3,560
|
|
|
—
|
|
|
—
|
|
|
42,606
|
|
|||||
Commercial construction and land
|
88,345
|
|
|
5,222
|
|
|
—
|
|
|
26,272
|
|
|
119,839
|
|
|||||
Lease receivables, net
|
85,183
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
85,183
|
|
|||||
Consumer
|
305,325
|
|
|
—
|
|
|
—
|
|
|
5,790
|
|
|
311,115
|
|
|||||
Loans
|
$
|
3,162,556
|
|
|
$
|
43,939
|
|
|
$
|
26,514
|
|
|
$
|
69,539
|
|
|
$
|
3,302,548
|
|
December 31, 2012
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
1,540,041
|
|
|
$
|
28,298
|
|
|
$
|
5,543
|
|
|
$
|
16,705
|
|
|
$
|
1,590,587
|
|
Commercial real estate secured
|
914,250
|
|
|
20,194
|
|
|
17,004
|
|
|
14,530
|
|
|
965,978
|
|
|||||
Residential construction and land
|
37,150
|
|
|
4,258
|
|
|
—
|
|
|
4,495
|
|
|
45,903
|
|
|||||
Commercial construction and land
|
83,159
|
|
|
5,276
|
|
|
60
|
|
|
15,220
|
|
|
103,715
|
|
|||||
Lease receivables, net
|
45,485
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
45,485
|
|
|||||
Consumer
|
408,048
|
|
|
—
|
|
|
—
|
|
|
8,587
|
|
|
416,635
|
|
|||||
Loans
|
$
|
3,028,133
|
|
|
$
|
58,026
|
|
|
$
|
22,607
|
|
|
$
|
59,537
|
|
|
$
|
3,168,303
|
|
|
June 30, 2013
|
|
December 31, 2012
|
||||||||||||||||||||
|
Unpaid
Principal
Balance
|
|
Recorded
Balance
|
|
Allowance
for Loan
Losses
Allocated
|
|
Unpaid
Principal
Balance
|
|
Recorded
Balance
|
|
Allowance
for Loan
Losses
Allocated
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
$
|
4,534
|
|
|
$
|
2,437
|
|
|
$
|
—
|
|
|
$
|
4,998
|
|
|
$
|
3,006
|
|
|
$
|
—
|
|
Commercial real estate secured
|
27,322
|
|
|
19,438
|
|
|
—
|
|
|
31,073
|
|
|
21,442
|
|
|
—
|
|
||||||
Residential construction and land
|
—
|
|
|
—
|
|
|
—
|
|
|
16,378
|
|
|
4,495
|
|
|
—
|
|
||||||
Commercial construction and land
|
2,395
|
|
|
1,008
|
|
|
—
|
|
|
5,402
|
|
|
4,194
|
|
|
—
|
|
||||||
Consumer
|
6,348
|
|
|
5,946
|
|
|
—
|
|
|
6,684
|
|
|
6,462
|
|
|
—
|
|
||||||
Subtotal
|
40,599
|
|
|
28,829
|
|
|
—
|
|
|
64,535
|
|
|
39,599
|
|
|
—
|
|
||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
33,377
|
|
|
15,611
|
|
|
8,486
|
|
|
20,595
|
|
|
15,235
|
|
|
8,006
|
|
||||||
Commercial real estate secured
|
21,119
|
|
|
16,714
|
|
|
1,820
|
|
|
8,117
|
|
|
4,483
|
|
|
1,121
|
|
||||||
Commercial construction and land
|
25,430
|
|
|
25,264
|
|
|
6,024
|
|
|
11,038
|
|
|
11,026
|
|
|
2,930
|
|
||||||
Subtotal
|
79,926
|
|
|
57,589
|
|
|
16,330
|
|
|
39,750
|
|
|
30,744
|
|
|
12,057
|
|
||||||
Total impaired loans
|
$
|
120,525
|
|
|
$
|
86,418
|
|
|
$
|
16,330
|
|
|
$
|
104,285
|
|
|
$
|
70,343
|
|
|
$
|
12,057
|
|
|
June 30, 2013
|
|
June 30, 2012
|
||||||||||||||||||||||||||||
|
QTD
Average
Recorded
Balance
|
|
YTD
Average
Recorded
Balance
|
|
QTD
Interest
Income
Recognized
|
|
YTD
Interest
Income
Recognized
|
|
QTD
Average
Recorded
Balance
|
|
YTD
Average
Recorded
Balance
|
|
QTD
Interest
Income
Recognized
|
|
YTD
Interest
Income
Recognized
|
||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||||||
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial and industrial
|
$
|
2,456
|
|
|
$
|
2,640
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,517
|
|
|
$
|
8,758
|
|
|
$
|
17
|
|
|
$
|
17
|
|
Commercial real estate secured
|
24,323
|
|
|
23,363
|
|
|
164
|
|
|
321
|
|
|
19,784
|
|
|
15,984
|
|
|
—
|
|
|
—
|
|
||||||||
Residential construction and land
|
371
|
|
|
1,746
|
|
|
—
|
|
|
—
|
|
|
2,841
|
|
|
2,923
|
|
|
—
|
|
|
—
|
|
||||||||
Commercial construction and land
|
1,008
|
|
|
2,070
|
|
|
—
|
|
|
—
|
|
|
2,924
|
|
|
4,174
|
|
|
—
|
|
|
—
|
|
||||||||
Consumer
|
6,220
|
|
|
6,301
|
|
|
37
|
|
|
69
|
|
|
5,836
|
|
|
5,637
|
|
|
27
|
|
|
49
|
|
||||||||
Subtotal
|
34,378
|
|
|
36,120
|
|
|
201
|
|
|
390
|
|
|
37,902
|
|
|
37,476
|
|
|
44
|
|
|
66
|
|
||||||||
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial and industrial
|
16,668
|
|
|
16,190
|
|
|
48
|
|
|
84
|
|
|
19,020
|
|
|
24,565
|
|
|
46
|
|
|
115
|
|
||||||||
Commercial real estate secured
|
11,906
|
|
|
9,431
|
|
|
43
|
|
|
80
|
|
|
15,011
|
|
|
20,345
|
|
|
64
|
|
|
125
|
|
||||||||
Residential construction and land
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,218
|
|
|
4,387
|
|
|
—
|
|
|
—
|
|
||||||||
Commercial construction and land
|
25,315
|
|
|
20,552
|
|
|
—
|
|
|
—
|
|
|
13,438
|
|
|
8,998
|
|
|
—
|
|
|
—
|
|
||||||||
Subtotal
|
53,889
|
|
|
46,173
|
|
|
91
|
|
|
164
|
|
|
51,687
|
|
|
58,295
|
|
|
110
|
|
|
240
|
|
||||||||
Total impaired loans
|
$
|
88,267
|
|
|
$
|
82,293
|
|
|
$
|
292
|
|
|
$
|
554
|
|
|
$
|
89,589
|
|
|
$
|
95,771
|
|
|
$
|
154
|
|
|
$
|
306
|
|
|
For the quarter ended
|
|
For the quarter ended
|
||||||||||||||||||
|
June 30, 2013
|
|
June 30, 2012
|
||||||||||||||||||
|
Number of
Loans
|
|
Pre-Modification
Outstanding
Recorded
Balance
|
|
Post-Modification
Outstanding
Recorded
Balance
|
|
Number
of Loans
|
|
Pre-Modification
Outstanding
Recorded
Balance
|
|
Post-Modification
Outstanding
Recorded
Balance
|
||||||||||
|
(dollars in thousands)
|
||||||||||||||||||||
Commercial and industrial
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
1
|
|
|
$
|
380
|
|
|
$
|
380
|
|
Commercial real estate secured
|
1
|
|
|
842
|
|
|
842
|
|
|
1
|
|
|
718
|
|
|
718
|
|
||||
Consumer
|
6
|
|
|
578
|
|
|
578
|
|
|
11
|
|
|
988
|
|
|
981
|
|
||||
Total
|
7
|
|
|
$
|
1,420
|
|
|
$
|
1,420
|
|
|
13
|
|
|
$
|
2,086
|
|
|
$
|
2,079
|
|
|
For the six months ended
|
|
For the six months ended
|
||||||||||||||||||
|
June 30, 2013
|
|
June 30, 2012
|
||||||||||||||||||
|
Number of
Loans
|
|
Pre-Modification
Outstanding
Recorded
Balance
|
|
Post-Modification
Outstanding
Recorded
Balance
|
|
Number
of Loans
|
|
Pre-Modification
Outstanding
Recorded
Balance
|
|
Post-Modification
Outstanding
Recorded
Balance
|
||||||||||
|
(dollars in thousands)
|
||||||||||||||||||||
Commercial and industrial
|
1
|
|
|
$
|
2,659
|
|
|
$
|
2,659
|
|
|
4
|
|
|
$
|
6,117
|
|
|
$
|
6,117
|
|
Commercial real estate secured
|
3
|
|
|
2,147
|
|
|
2,147
|
|
|
2
|
|
|
1,284
|
|
|
1,284
|
|
||||
Commercial construction and land
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
20,260
|
|
|
20,260
|
|
||||
Consumer
|
17
|
|
|
1,271
|
|
|
1,271
|
|
|
23
|
|
|
2,005
|
|
|
1,989
|
|
||||
Total
|
21
|
|
|
$
|
6,077
|
|
|
$
|
6,077
|
|
|
33
|
|
|
$
|
29,666
|
|
|
$
|
29,650
|
|
|
For the quarter ended
|
|
For the quarter ended
|
||||||||||
|
June 30, 2013
|
|
June 30, 2012
|
||||||||||
|
Number
of Loans
|
|
Recorded
Investment at Period End
|
|
Number of
Loans
|
|
Recorded
Investment at Period End
|
||||||
|
(dollars in thousands)
|
||||||||||||
|
|
|
|
|
|
|
|
||||||
Consumer
|
1
|
|
|
$
|
86
|
|
|
1
|
|
|
$
|
224
|
|
Total
|
1
|
|
|
$
|
86
|
|
|
1
|
|
|
$
|
224
|
|
|
For the six months ended
|
|
For the six months ended
|
||||||||||
|
June 30, 2013
|
|
June 30, 2012
|
||||||||||
|
Number
of Loans
|
|
Recorded
Investment at Period End
|
|
Number of
Loans
|
|
Recorded
Investment at Period End
|
||||||
|
(dollars in thousands)
|
||||||||||||
|
|
|
|
|
|
|
|
||||||
Residential construction and land
|
—
|
|
|
$
|
—
|
|
|
1
|
|
|
$
|
529
|
|
Consumer
|
1
|
|
|
86
|
|
|
4
|
|
|
642
|
|
||
Total
|
1
|
|
|
$
|
86
|
|
|
5
|
|
|
$
|
1,171
|
|
|
June 30,
2013 |
|
December 31,
2012 |
||||
|
(in thousands)
|
||||||
Commercial interest checking
|
$
|
336,903
|
|
|
$
|
—
|
|
NOW accounts
|
537,103
|
|
|
573,133
|
|
||
Savings accounts
|
41,576
|
|
|
39,915
|
|
||
Money market deposits
|
771,382
|
|
|
744,791
|
|
||
Brokered money market deposits
|
—
|
|
|
27,840
|
|
||
Time deposits:
|
|
|
|
||||
Certificates of deposit
|
557,656
|
|
|
561,998
|
|
||
Brokered certificates of deposit
|
160,408
|
|
|
199,604
|
|
||
CDARS time deposits
|
132,552
|
|
|
186,187
|
|
||
Public time deposits
|
16,007
|
|
|
15,150
|
|
||
Total time deposits
|
866,623
|
|
|
962,939
|
|
||
Total
|
$
|
2,553,587
|
|
|
$
|
2,348,618
|
|
|
June 30, 2013
|
|
December 31, 2012
|
||||||||||
|
Amount
Borrowed
|
|
Weighted-
Average
Rate
|
|
Amount
Borrowed
|
|
Weighted-
Average
Rate
|
||||||
|
(dollars in thousands)
|
||||||||||||
Customer repurchase agreements
|
$
|
6,790
|
|
|
0.05
|
%
|
|
$
|
24,663
|
|
|
0.09
|
%
|
Federal funds purchased
|
60,375
|
|
|
0.48
|
|
|
173,356
|
|
|
0.64
|
|
||
FHLB advances
|
1,360,000
|
|
|
0.13
|
|
|
1,265,000
|
|
|
0.12
|
|
||
Cash flow hedge interest rate swap collateral
|
1,690
|
|
|
0.09
|
|
|
—
|
|
|
—
|
|
||
Total
|
$
|
1,428,855
|
|
|
0.15
|
%
|
|
$
|
1,463,019
|
|
|
0.19
|
%
|
|
Interest Rate
|
|
Due Date
|
|
Earliest Call
Date
(if applicable)
|
|
June 30, 2013
|
|
December 31,
2012 |
|||||
|
(dollars in thousands)
|
|||||||||||||
FHLB overnight advance
|
0.130
|
%
|
|
January 2, 2013
|
|
n/a
|
|
$
|
—
|
|
|
$
|
665,000
|
|
FHLB advance
|
0.130
|
|
|
January 2, 2013
|
|
n/a
|
|
—
|
|
|
200,000
|
|
||
FHLB advance
|
0.070
|
|
|
January 16, 2013
|
|
n/a
|
|
—
|
|
|
200,000
|
|
||
FHLB advance
|
0.150
|
|
|
January 23, 2013
|
|
n/a
|
|
—
|
|
|
200,000
|
|
||
FHLB overnight advance
|
0.130
|
|
|
July 1, 2013
|
|
n/a
|
|
460,000
|
|
|
—
|
|
||
FHLB advance
|
0.150
|
|
|
July 3, 2013
|
|
n/a
|
|
100,000
|
|
|
—
|
|
||
FHLB advance
|
0.115
|
|
|
July 26, 2013
|
|
n/a
|
|
250,000
|
|
|
—
|
|
||
FHLB advance
|
0.130
|
|
|
July 31, 2013
|
|
n/a
|
|
200,000
|
|
|
—
|
|
||
FHLB advance
|
0.130
|
|
|
July 31, 2013
|
|
n/a
|
|
50,000
|
|
|
—
|
|
||
FHLB advance
|
0.150
|
|
|
August 2, 2013
|
|
n/a
|
|
100,000
|
|
|
—
|
|
||
FHLB advance
|
0.130
|
|
|
August 28, 2013
|
|
n/a
|
|
100,000
|
|
|
—
|
|
||
FHLB advance
|
0.150
|
|
|
September 4, 2013
|
|
n/a
|
|
100,000
|
|
|
—
|
|
||
Total short-term FHLB advances
|
|
|
|
|
|
|
$
|
1,360,000
|
|
|
$
|
1,265,000
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
For the Three Months Ended
|
||||||||||||||||||||
|
June 30, 2013
|
|
June 30, 2012
|
||||||||||||||||||||
|
Before
Tax
Amount
|
|
Tax
Effect
|
|
Net of
Tax
|
|
Before
Tax
Amount
|
|
Tax
Effect
|
|
Net of
Tax
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
Unrealized gains from securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Change in unrealized gains and losses on available for sale securities
|
$
|
(43,308
|
)
|
|
$
|
16,994
|
|
|
$
|
(26,314
|
)
|
|
$
|
5,721
|
|
|
$
|
(2,345
|
)
|
|
$
|
3,376
|
|
Less: reclassification adjustment for gains included in net income
|
(6
|
)
|
|
3
|
|
|
(3
|
)
|
|
(3,909
|
)
|
|
1,602
|
|
|
(2,307
|
)
|
||||||
Change in unrealized gains and losses on available for sale securities, net of reclassification adjustment
|
(43,314
|
)
|
|
16,997
|
|
|
(26,317
|
)
|
|
1,812
|
|
|
(743
|
)
|
|
1,069
|
|
||||||
Change in deferred gains and losses on investments transferred to held to maturity from available for sale
|
(490
|
)
|
|
255
|
|
|
(235
|
)
|
|
8,267
|
|
|
(3,389
|
)
|
|
4,878
|
|
||||||
Cash flow hedging:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Change in net unrealized loss from cash flow hedging instruments
|
1,240
|
|
|
(499
|
)
|
|
741
|
|
|
124
|
|
|
2
|
|
|
126
|
|
||||||
Less: reclassification adjustment for gains included in net income
|
—
|
|
|
—
|
|
|
—
|
|
|
175
|
|
|
(89
|
)
|
|
86
|
|
||||||
Change in unrealized loss from cash flow hedging, net of reclassification adjustment
|
1,240
|
|
|
(499
|
)
|
|
741
|
|
|
299
|
|
|
(87
|
)
|
|
212
|
|
||||||
Other comprehensive income (loss)
|
$
|
(42,564
|
)
|
|
$
|
16,753
|
|
|
$
|
(25,811
|
)
|
|
$
|
10,378
|
|
|
$
|
(4,219
|
)
|
|
$
|
6,159
|
|
|
For the Six Months Ended
|
|
For the Six Months Ended
|
||||||||||||||||||||
|
June 30, 2013
|
|
June 30, 2012
|
||||||||||||||||||||
|
Before
Tax
Amount
|
|
Tax
Effect
|
|
Net of
Tax
|
|
Before
Tax
Amount
|
|
Tax
Effect
|
|
Net of
Tax
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
Unrealized gains from securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Change in unrealized gains and losses on available for sale securities
|
$
|
(50,357
|
)
|
|
$
|
20,200
|
|
|
$
|
(30,157
|
)
|
|
$
|
3,989
|
|
|
$
|
(1,635
|
)
|
|
$
|
2,354
|
|
Less: reclassification adjustment for gains included in net income
|
(7
|
)
|
|
3
|
|
|
(4
|
)
|
|
(4,865
|
)
|
|
1,994
|
|
|
(2,871
|
)
|
||||||
Change in unrealized gains and losses on available for sale securities, net of reclassification adjustment
|
(50,364
|
)
|
|
20,203
|
|
|
(30,161
|
)
|
|
(876
|
)
|
|
359
|
|
|
(517
|
)
|
||||||
Change in deferred gains and losses on investments transferred to held to maturity from available for sale
|
(1,012
|
)
|
|
465
|
|
|
(547
|
)
|
|
8,314
|
|
|
(3,408
|
)
|
|
4,906
|
|
||||||
Cash flow hedging:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Change in net unrealized loss from cash flow hedging
|
1,644
|
|
|
(662
|
)
|
|
982
|
|
|
20
|
|
|
44
|
|
|
64
|
|
||||||
Less: reclassification adjustment for gains included in net income
|
—
|
|
|
—
|
|
|
—
|
|
|
523
|
|
|
(199
|
)
|
|
324
|
|
||||||
Change in unrealized loss from cash flow hedging, net of reclassification adjustment
|
1,644
|
|
|
(662
|
)
|
|
982
|
|
|
543
|
|
|
(155
|
)
|
|
388
|
|
||||||
Other comprehensive income
|
$
|
(49,732
|
)
|
|
$
|
20,006
|
|
|
$
|
(29,726
|
)
|
|
$
|
7,981
|
|
|
$
|
(3,204
|
)
|
|
$
|
4,777
|
|
|
|
Net unrealized gains and losses on available for sale securities
|
|
Net deferred gains and losses on investment transfer to held to maturity from available for sale
|
|
Net unrealized loss from cash flow hedging instruments
|
|
Total
|
||||||||
|
|
(in thousands)
|
||||||||||||||
Balance at March 31, 2013
|
|
$
|
28,390
|
|
|
$
|
3,692
|
|
|
$
|
209
|
|
|
$
|
32,291
|
|
OCI before reclassification
|
|
(26,314
|
)
|
|
—
|
|
|
741
|
|
|
(25,573
|
)
|
||||
Amounts reclassified from OCI
|
|
(3
|
)
|
|
(235
|
)
|
|
—
|
|
|
(238
|
)
|
||||
Net current period other comprehensive income
|
|
(26,317
|
)
|
|
(235
|
)
|
|
741
|
|
|
(25,811
|
)
|
||||
Balance as of June 30, 2013
|
|
$
|
2,073
|
|
|
$
|
3,457
|
|
|
$
|
950
|
|
|
$
|
6,480
|
|
|
|
Net unrealized gains and losses on available for sale securities
|
|
Net deferred gains and losses on investment transfer to held to maturity from available for sale
|
|
Net unrealized loss from cash flow hedging instruments
|
|
Total
|
||||||||
|
|
(in thousands)
|
||||||||||||||
Balance at December 31, 2012
|
|
$
|
32,234
|
|
|
$
|
4,004
|
|
|
$
|
(32
|
)
|
|
$
|
36,206
|
|
OCI before reclassification
|
|
(30,157
|
)
|
|
—
|
|
|
982
|
|
|
(29,175
|
)
|
||||
Amounts reclassified from OCI
|
|
(4
|
)
|
|
(547
|
)
|
|
—
|
|
|
(551
|
)
|
||||
Net current period other comprehensive income
|
|
(30,161
|
)
|
|
(547
|
)
|
|
982
|
|
|
(29,726
|
)
|
||||
Balance as of June 30, 2013
|
|
$
|
2,073
|
|
|
$
|
3,457
|
|
|
$
|
950
|
|
|
$
|
6,480
|
|
|
For the Quarter
|
|
For the Six Months
|
||||||||||||
|
Ended June 30,
|
|
Ended June 30,
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
|
(dollars in thousands, except per share amounts)
|
||||||||||||||
Net income
|
$
|
15,617
|
|
|
$
|
14,225
|
|
|
$
|
32,874
|
|
|
$
|
23,694
|
|
Preferred dividends and discounts
|
(3,780
|
)
|
|
(1,748
|
)
|
|
(7,441
|
)
|
|
(3,490
|
)
|
||||
Net income available to common stockholders
|
$
|
11,837
|
|
|
$
|
12,477
|
|
|
$
|
25,433
|
|
|
$
|
20,204
|
|
Undistributed earnings allocated to common shares
|
$
|
11,183
|
|
|
$
|
11,815
|
|
|
$
|
24,042
|
|
|
$
|
19,124
|
|
Undistributed earnings allocated to unvested restricted participating shares
|
154
|
|
|
123
|
|
|
314
|
|
|
208
|
|
||||
Undistributed earnings allocated to preferred participating shares
|
500
|
|
|
539
|
|
|
1,077
|
|
|
872
|
|
||||
Total undistributed earnings
|
$
|
11,837
|
|
|
$
|
12,477
|
|
|
$
|
25,433
|
|
|
$
|
20,204
|
|
Basic weighted-average common shares outstanding
|
28,687,406
|
|
|
28,158,304
|
|
|
28,641,738
|
|
|
28,114,855
|
|
||||
Dilutive effect of stock options
|
120,840
|
|
|
100,626
|
|
|
122,561
|
|
|
89,984
|
|
||||
Dilutive effect of warrants
|
187,507
|
|
|
835,149
|
|
|
212,943
|
|
|
665,267
|
|
||||
Diluted weighted-average common shares outstanding
|
28,995,753
|
|
|
29,094,079
|
|
|
28,977,242
|
|
|
28,870,106
|
|
||||
Basic income per common share
|
$
|
0.39
|
|
|
$
|
0.42
|
|
|
$
|
0.84
|
|
|
$
|
0.68
|
|
Diluted income per common share
|
0.39
|
|
|
0.41
|
|
|
0.83
|
|
|
0.66
|
|
Antidilutive shares not included in diluted earnings per common share calculation:
|
|
|
|
|
|
|
|
||||
Stock options
|
312,327
|
|
|
446,024
|
|
|
312,327
|
|
|
446,024
|
|
Warrants
|
505,479
|
|
|
500,000
|
|
|
505,479
|
|
|
500,000
|
|
|
Shares
|
|
Weighted-
Average
Exercise Price
|
|||
Outstanding at January 1, 2013
|
763,506
|
|
|
$
|
16.64
|
|
Granted
|
—
|
|
|
—
|
|
|
Exercised
|
(4,376
|
)
|
|
8.03
|
|
|
Forfeited
|
—
|
|
|
—
|
|
|
Expired
|
(74,792
|
)
|
|
20.51
|
|
|
Outstanding at June 30, 2013
|
684,338
|
|
|
16.27
|
|
|
Exercisable at June 30, 2013
|
588,859
|
|
|
17.75
|
|
|
Shares
|
|
Weighted-
Average
Grant-Date
Fair Value
|
|||
Nonvested at January 1, 2013
|
245,627
|
|
|
$
|
13.81
|
|
Granted
|
309,468
|
|
|
17.11
|
|
|
Vested
|
(179,753
|
)
|
|
15.86
|
|
|
Forfeited or canceled
|
(1,313
|
)
|
|
17.11
|
|
|
Nonvested at June 30, 2013
|
374,029
|
|
|
15.54
|
|
|
June 30, 2013
|
||||||||||
Product
|
Notional
Amount
|
|
Average Strike
Rates
|
|
Average Maturity
|
|
Fair
Value
|
||||
|
(dollars in thousands)
|
||||||||||
Fair value hedging derivative instruments:
|
|
|
|
|
|||||||
Brokered CD interest rate swaps—pay variable/receive fixed
|
$
|
106,920
|
|
|
Receive 2.27%
Pay 0.243% |
|
1.9 yrs
|
|
$
|
3,553
|
|
Callable brokered CD interest rate swaps—pay variable/receive fixed
|
15,000
|
|
|
Receive 3.55%
Pay (0.075)% |
|
13.1 yrs
|
|
102
|
|
||
Total fair value hedging derivative instruments
|
121,920
|
|
|
|
|
|
|
|
|||
Cash flow hedging derivative instruments:
|
|
|
|
|
|
|
|
||||
Interest rate swap - receive fixed/pay variable
|
20,000
|
|
|
Receive 2.56% Pay 0.31%
|
|
12.0 yrs
|
|
1,592
|
|
||
Total cash flow hedging derivative instruments
|
20,000
|
|
|
|
|
|
|
|
|||
Total hedging derivative instruments
|
141,920
|
|
|
|
|
|
|
|
|||
Non-hedging derivative instruments:
|
|
|
|
|
|
|
|
||||
Customer interest rate swap —pay fixed/receive variable
|
426,874
|
|
|
Pay 2.39%
Receive 0.223 |
|
3.2 yrs
|
|
(13,317
|
)
|
||
Customer interest rate swap —receive fixed/pay variable
|
426,874
|
|
|
Receive 2.39%
Pay 0.223% |
|
3.2 yrs
|
|
13,050
|
|
||
Interest rate swaps—mortgage servicing rights
|
227,000
|
|
|
Receive 1.65%
Pay 0.247% |
|
7.7 yrs
|
|
(8,585
|
)
|
||
Interest rate swaptions—mortgage servicing rights
|
40,000
|
|
|
n/a
|
|
10.1 yrs
|
|
1,513
|
|
||
Mortgage TBAs
|
30,000
|
|
|
n/a
|
|
0.04 yrs
|
|
(1,913
|
)
|
||
Interest rate lock commitments
|
871,678
|
|
|
n/a
|
|
0.6 yrs
|
|
(6,897
|
)
|
||
Forward loan sale commitments
|
1,192,500
|
|
|
n/a
|
|
0.1 yrs
|
|
51,897
|
|
||
Total non-hedging derivative instruments
|
3,214,926
|
|
|
|
|
|
|
|
|||
Total derivative instruments
|
$
|
3,356,846
|
|
|
|
|
|
|
|
|
December 31, 2012
|
||||||||||
Product
|
Notional
Amount
|
|
Average
Strike Rates
|
|
Average Maturity
|
|
Fair
Value
|
||||
|
(dollars in thousands)
|
||||||||||
Fair value hedging derivative instruments:
|
|
|
|
|
|||||||
Brokered CD interest rate swaps—pay variable/receive fixed
|
$
|
106,920
|
|
|
Receive 2.27%
Pay 0.290% |
|
2.4 yrs
|
|
$
|
4,854
|
|
Callable brokered CD interest rate swaps—pay variable/receive fixed
|
30,000
|
|
|
Receive 3.43%
Pay (0.039)% |
|
12.1 yrs
|
|
415
|
|
||
Total fair value hedging derivative instruments
|
136,920
|
|
|
|
|
|
|
|
|||
Cash flow hedging derivative instruments:
|
|
|
|
|
|
|
|
||||
Interest rate swap - receive fixed/pay variable
|
20,000
|
|
|
Receive 2.56% Pay 0.31%
|
|
12.5 yrs
|
|
(53
|
)
|
||
Total cash flow hedging derivative instruments
|
20,000
|
|
|
|
|
|
|
|
|||
Total hedging derivative instruments
|
156,920
|
|
|
|
|
|
|
|
|||
Non-hedging derivative instruments:
|
|
|
|
|
|
|
|
||||
Customer interest rate swap—pay fixed/receive variable
|
387,171
|
|
|
Pay 2.54%
Receive 0.263% |
|
3.2 yrs
|
|
(19,640
|
)
|
||
Customer interest rate swap—receive fixed/pay variable
|
387,171
|
|
|
Receive 2.54%
Pay 0.263% |
|
3.2 yrs
|
|
18,999
|
|
||
Interest rate swaps—mortgage servicing rights
|
192,500
|
|
|
Receive 1.62%
Pay 0.274% |
|
7.8 yrs
|
|
3,786
|
|
||
Interest rate lock commitments
|
1,097,825
|
|
|
n/a
|
|
0.1 yrs
|
|
15,318
|
|
||
Forward loan sale commitments
|
1,501,495
|
|
|
n/a
|
|
0.1 yrs
|
|
(985
|
)
|
||
Total non-hedging derivative instruments
|
3,566,162
|
|
|
|
|
|
|
|
|||
Total derivative instruments
|
$
|
3,723,082
|
|
|
|
|
|
|
|
|
Consolidated Statement of Income Location
|
|
For the Quarter Ended
|
|
For the Six Months Ended
|
|||||||||||||
|
|
June 30, 2013
|
|
June 30, 2012
|
|
June 30, 2013
|
|
June 30, 2012
|
|
|||||||||
|
|
|
(in thousands)
|
|||||||||||||||
Change in fair value of brokered CD interest rate swaps
|
Other derivative income
|
|
$
|
(797
|
)
|
|
$
|
233
|
|
|
$
|
(1,301
|
)
|
|
$
|
150
|
|
|
Change in fair value of hedged brokered CDs
|
Other derivative income
|
|
803
|
|
(222
|
)
|
|
1,335
|
|
|
(126
|
)
|
|
|||||
Ineffectiveness
|
|
|
$
|
6
|
|
|
$
|
11
|
|
|
34
|
|
|
$
|
24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Change in fair value of callable brokered CD interest rate swaps
|
Other derivative income
|
|
$
|
(147
|
)
|
|
$
|
154
|
|
|
(313
|
)
|
|
$
|
(80
|
)
|
|
|
Change in fair value of hedged callable brokered CDs
|
Other derivative income
|
|
199
|
|
(332
|
)
|
|
584
|
|
|
49
|
|
|
|||||
Ineffectiveness
|
|
|
$
|
52
|
|
|
$
|
(178
|
)
|
|
$
|
271
|
|
|
$
|
(31
|
)
|
|
|
For the Quarter Ended
|
|
For the Six Months Ended
|
||||||||||||
|
June 30, 2013
|
|
June 30, 2012
|
|
June 30, 2013
|
|
June 30, 2012
|
||||||||
|
|
|
|
|
|
||||||||||
Derivatives - effective portion recorded in OCI
|
|
|
|
|
|
|
|
||||||||
Interest rate corridors
|
$
|
—
|
|
|
$
|
299
|
|
|
$
|
—
|
|
|
$
|
543
|
|
Interest rate swap
|
1,240
|
|
|
—
|
|
|
1,644
|
|
|
—
|
|
||||
Total
|
$
|
1,240
|
|
|
$
|
299
|
|
|
$
|
1,644
|
|
|
$
|
543
|
|
|
|
|
|
|
|
|
|
||||||||
Derivatives - effective portion reclassified from OCI to income
|
|
|
|
|
|
|
|
||||||||
Interest rate corridors
|
$
|
—
|
|
|
$
|
(175
|
)
|
|
$
|
—
|
|
|
$
|
(523
|
)
|
Interest rate swap
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total
|
$
|
—
|
|
|
$
|
(175
|
)
|
|
$
|
—
|
|
|
$
|
(523
|
)
|
|
|
|
|
|
|
|
|
||||||||
Hedge ineffectiveness recorded directly in income
|
|
|
|
|
|
|
|
||||||||
Interest rate corridors
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
|
|
$
|
(1
|
)
|
||
Interest rate swap
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
(1
|
)
|
|
|
|
For the Quarter Ended
|
|
For the Six Months Ended
|
||||||||||||
|
Consolidated Statements of Income Location
|
|
June 30, 2013
|
|
June 30, 2012
|
|
June 30, 2013
|
|
June 30, 2012
|
||||||||
|
|
|
(in thousands)
|
|
|
||||||||||||
Customer interest rate swaps - pay fixed/receive variable
|
Other derivative income
|
|
$
|
5,225
|
|
|
$
|
(2,249
|
)
|
|
$
|
6,323
|
|
|
$
|
(1,427
|
)
|
Customer interest rate swaps - pay variable/receive fixed
|
Other derivative income
|
|
(4,908
|
)
|
|
2,095
|
|
|
(5,949
|
)
|
|
1,249
|
|
||||
Interest rate swaps - MSRs
|
Mortgage banking revenue
|
|
(9,385
|
)
|
|
2,532
|
|
|
(11,212
|
)
|
|
2,098
|
|
||||
Interest rate swaptions - MSRs
|
Mortgage banking revenue
|
|
2,605
|
|
|
15
|
|
|
2,605
|
|
|
15
|
|
||||
Mortgage TBA
|
Mortgage banking revenue
|
|
(1,913
|
)
|
|
—
|
|
|
(1,913
|
)
|
|
—
|
|
||||
Interest rate lock commitments
|
Mortgage banking revenue
|
|
(16,497
|
)
|
|
9,408
|
|
|
(22,215
|
)
|
|
9,691
|
|
||||
Forward loan sale commitments
|
Mortgage banking revenue
|
|
54,978
|
|
|
(10,734
|
)
|
|
52,882
|
|
|
(3,397
|
)
|
|
|
|
|
|
|
|
|
Gross Amounts Not Offset in the Consolidated Balance Sheets
|
||||||||||||||||
|
|
Gross Amounts Recognized
|
|
Gross Amounts Offset in the Consolidated Balance Sheets
|
|
Net Amounts Presented in the Consolidated Balance Sheets
|
|
Financial Instruments
|
|
Collateral
|
|
Net Amount
|
||||||||||||
|
|
(in thousands)
|
||||||||||||||||||||||
As of June 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative assets
|
|
$
|
58,918
|
|
|
$
|
(260
|
)
|
|
$
|
58,658
|
|
|
$
|
(6,519
|
)
|
|
$
|
—
|
|
|
$
|
52,139
|
|
Derivative liabilities
|
|
22,163
|
|
|
(260
|
)
|
|
21,903
|
|
|
(6,519
|
)
|
|
(15,281
|
)
|
|
103
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
As of December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative assets
|
|
10,923
|
|
|
(1,869
|
)
|
|
9,054
|
|
|
(8,449
|
)
|
|
—
|
|
|
605
|
|
||||||
Derivative liabilities
|
|
22,546
|
|
|
(1,869
|
)
|
|
20,677
|
|
|
(8,449
|
)
|
|
(11,660
|
)
|
|
568
|
|
|
As of June 30, 2013
|
||||||||||||||
|
Total Fair
Value
|
|
Quoted
Prices in
Active
Markets
(Level 1)
|
|
Significant
Other
Observable
Inputs (Level
2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
|
(in thousands)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Available for sale investment securities
|
|
|
|
|
|
|
|
||||||||
U.S. government sponsored agency securities
|
$
|
15,361
|
|
|
$
|
—
|
|
|
$
|
15,361
|
|
|
$
|
—
|
|
Residential mortgage-backed securities
|
536,049
|
|
|
—
|
|
|
536,049
|
|
|
—
|
|
||||
Commercial mortgage-backed securities
|
136,442
|
|
|
—
|
|
|
136,442
|
|
|
—
|
|
||||
Collateralized mortgage obligations
|
15,344
|
|
|
—
|
|
|
15,344
|
|
|
—
|
|
||||
State and municipal obligations
|
310,439
|
|
|
—
|
|
|
309,888
|
|
|
551
|
|
||||
Total available for sale investment securities
|
1,013,635
|
|
|
—
|
|
|
1,013,084
|
|
|
551
|
|
||||
Loans
|
4,418
|
|
|
—
|
|
|
4,418
|
|
|
—
|
|
||||
Loans held for sale
|
580,683
|
|
|
—
|
|
|
580,683
|
|
|
—
|
|
||||
Assets held in employee deferred compensation plans
|
3,831
|
|
|
3,831
|
|
|
—
|
|
|
—
|
|
||||
Derivative instruments
|
18,297
|
|
|
—
|
|
|
18,297
|
|
|
—
|
|
||||
MSRs
|
145,729
|
|
|
—
|
|
|
—
|
|
|
145,729
|
|
||||
Mortgage derivative instruments
|
54,986
|
|
|
—
|
|
|
53,410
|
|
|
1,576
|
|
||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative instruments
|
13,317
|
|
|
—
|
|
|
13,317
|
|
|
—
|
|
||||
Mortgage derivative instruments
|
18,971
|
|
|
—
|
|
|
10,498
|
|
|
8,473
|
|
||||
|
|
|
|
|
|
|
|
||||||||
|
As of December 31, 2012
|
||||||||||||||
|
(in thousands)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Available for sale investment securities
|
|
|
|
|
|
|
|
|
|||||||
U.S. Treasury securities
|
$
|
9,998
|
|
|
$
|
—
|
|
|
$
|
9,998
|
|
|
$
|
—
|
|
U.S. government sponsored agency securities
|
16,056
|
|
|
—
|
|
|
16,056
|
|
|
—
|
|
||||
Residential mortgage-backed securities
|
576,714
|
|
|
—
|
|
|
576,714
|
|
|
—
|
|
||||
Commercial mortgage-backed securities
|
146,700
|
|
|
—
|
|
|
146,700
|
|
|
—
|
|
||||
Collateralized mortgage obligations
|
21,446
|
|
|
—
|
|
|
21,446
|
|
|
—
|
|
||||
State and municipal obligations
|
166,024
|
|
|
—
|
|
|
165,473
|
|
|
551
|
|
||||
Total available for sale investment securities
|
936,938
|
|
|
—
|
|
|
936,387
|
|
|
551
|
|
||||
Loans
|
5,308
|
|
|
—
|
|
|
5,308
|
|
|
—
|
|
||||
Loans held for sale
|
938,379
|
|
|
—
|
|
|
938,379
|
|
|
—
|
|
||||
Assets held in employee deferred compensation plans
|
3,085
|
|
|
3,085
|
|
|
—
|
|
|
—
|
|
||||
Derivative instruments
|
24,268
|
|
|
—
|
|
|
24,268
|
|
|
—
|
|
||||
MSRs
|
78,917
|
|
|
—
|
|
|
—
|
|
|
78,917
|
|
||||
Mortgage derivative instruments
|
19,104
|
|
|
—
|
|
|
3,786
|
|
|
15,318
|
|
||||
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Derivative instruments
|
19,693
|
|
|
—
|
|
|
19,693
|
|
|
—
|
|
||||
Mortgage derivative instruments
|
985
|
|
|
—
|
|
|
985
|
|
|
—
|
|
|
For the Three Months Ended June 30,
|
||||||||||||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||||||
|
Investment Securities
|
|
Mortgage Servicing Rights
|
|
Mortgage Derivatives
|
||||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
Beginning balance
|
$
|
551
|
|
|
$
|
4,569
|
|
|
$
|
106,576
|
|
|
$
|
22,394
|
|
|
$
|
9,600
|
|
|
$
|
4,989
|
|
Total net gains (losses) recorded in:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income
|
—
|
|
|
—
|
|
|
10,842
|
|
|
(1,702
|
)
|
|
(16,497
|
)
|
|
9,409
|
|
||||||
Purchases
|
—
|
|
|
—
|
|
|
8,318
|
|
|
6,424
|
|
|
—
|
|
|
—
|
|
||||||
Originations
|
—
|
|
|
—
|
|
|
19,993
|
|
|
7,727
|
|
|
—
|
|
|
—
|
|
||||||
Maturities
|
—
|
|
|
(190
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Transfers
|
—
|
|
|
(3,750
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Fair value at period end
|
$
|
551
|
|
|
$
|
629
|
|
|
$
|
145,729
|
|
|
$
|
34,843
|
|
|
$
|
(6,897
|
)
|
|
$
|
14,398
|
|
|
For the Six Months Ended June 30,
|
||||||||||||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||||||
|
Investment Securities
|
|
Mortgage Servicing Rights
|
|
Mortgage Derivatives
|
||||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
Beginning balance
|
$
|
551
|
|
|
$
|
819
|
|
|
$
|
78,917
|
|
|
$
|
8,742
|
|
|
$
|
15,318
|
|
|
$
|
4,706
|
|
Total net gains (losses) recorded in:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income
|
—
|
|
|
—
|
|
|
12,205
|
|
|
(756
|
)
|
|
(22,215
|
)
|
|
9,692
|
|
||||||
Purchases
|
—
|
|
|
—
|
|
|
12,551
|
|
|
12,056
|
|
|
—
|
|
|
—
|
|
||||||
Originations
|
—
|
|
|
—
|
|
|
42,056
|
|
|
14,801
|
|
|
—
|
|
|
—
|
|
||||||
Maturities
|
—
|
|
|
(190
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Fair value at period end
|
$
|
551
|
|
|
$
|
629
|
|
|
$
|
145,729
|
|
|
$
|
34,843
|
|
|
$
|
(6,897
|
)
|
|
$
|
14,398
|
|
|
As of June 30, 2013
|
||||||||||||||
|
Total Fair
Value
|
|
Quoted
Prices in
Active
Markets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
|
(in thousands)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Loans
|
$
|
30,879
|
|
|
$
|
—
|
|
|
$
|
2,704
|
|
|
$
|
28,175
|
|
OREO and repossessed assets
|
11,980
|
|
|
—
|
|
|
—
|
|
|
11,980
|
|
|
As of December 31, 2012
|
||||||||||||||
|
Total Fair
Value
|
|
Quoted
Prices in
Active
Markets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
|
(in thousands)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Loans
|
$
|
25,766
|
|
|
$
|
—
|
|
|
$
|
15,427
|
|
|
$
|
10,339
|
|
OREO and repossessed assets
|
18,672
|
|
|
—
|
|
|
—
|
|
|
18,672
|
|
|
Fair Value
(in
thousands)
|
|
Valuation
Techniques
|
|
Unobservable Inputs
|
|
Range of Qualitative Information
(Weighted Average)
|
||
MEASURED ON A RECURRING BASIS:
|
|
|
|
|
|
|
|
||
Available for sale securities
|
$
|
551
|
|
|
See (1) below
|
|
See (1) below
|
|
See (1) below
|
Mortgage interest rate lock commitments (Mortgage derivative instruments)
|
(6,897
|
)
|
|
Sales cash flow
|
|
Expected closing ratio
|
|
48.10% -96.00% (84.15%)
|
|
|
|
|
|
|
Expected delivery price
|
|
90.58 bps –107.19 bps (100.80 bps)
|
||
Mortgage servicing rights
|
145,729
|
|
|
Discounted cash flow
|
|
Weighted average prepayment speed
(CPR) (2) |
|
4.5% – 32.6% (8.5%)
|
|
|
|
|
|
|
Weighted average discount rate
|
|
0.00% - 16.25% (10.06%)
|
||
|
|
|
|
|
Weighted average maturity, in months
|
|
54 – 447 (308)
|
||
|
|
|
|
|
Delinquencies
|
|
0% - 100% (0.71%)
|
||
|
|
|
|
|
Costs to service
|
|
$63 - $250 ($69)
|
||
MEASURED ON A
NON-RECURRING BASIS
:
|
|
|
|
|
|
|
|
||
Loans
|
28,175
|
|
|
Management’s assessment of liquidation value of collateral
|
|
Discount to reflect realizable value
See (3) below |
|
0% - 100%
|
|
OREO and repossessed assets
|
11,980
|
|
|
Management’s assessment of liquidation value of collateral
|
|
Discount to reflect realizable value
See (4) below |
|
5% - 20%
|
(1)
|
Fair value can be based on discounted cash flow, offer prices or par. Each available for sale security is evaluated on an individual basis.
|
(2)
|
CPR or conditional prepayment rate is the proportion of the principal of a pool of loans that is assumed to be paid off prematurely each period.
|
(3)
|
Management’s assessment of the liquidation value of collateral is based on third party information including current appraisals, current financial statements and bank statements, inventory reports, and accounts receivable aging and may be further reduced by a management determined rate. Each loan is evaluated on an individual basis.
|
(4)
|
Management’s assessment of the liquidation value of collateral is based on a third party appraised value. The value is further reduced by a management determined rate and estimated costs to sell. Each loan is evaluated on an individual basis.
|
|
June 30, 2013
|
||
(dollars in thousands except weighted average costs to service)
|
|
||
|
|
||
Weighted average prepayment speed (CPR)
|
8.50
|
%
|
|
Impact on fair value of 10% adverse change
|
$
|
(4,827
|
)
|
Impact on fair value of 20% adverse change
|
(9,373
|
)
|
|
|
|
||
Weighted average discount rate
|
10.06
|
%
|
|
Impact on fair value of 10% adverse change
|
$
|
(6,093
|
)
|
Impact on fair value of 20% adverse change
|
(11,713
|
)
|
|
|
|
||
Weighted average delinquency rate
|
0.71
|
%
|
|
Impact on fair value of 10% adverse change
|
$
|
(672
|
)
|
Impact on fair value of 20% adverse change
|
(1,344
|
)
|
|
|
|
||
Weighted average costs to service
|
$
|
69
|
|
Impact on fair value of 10% adverse change
|
$
|
(1,967
|
)
|
Impact on fair value of 20% adverse change
|
(3,935
|
)
|
|
June 30, 2013
|
||||||||||||||||||
|
Carrying
Value
|
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
|
(in thousands)
|
||||||||||||||||||
Financial Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
97,832
|
|
|
$
|
97,832
|
|
|
$
|
97,832
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Available for sale investments
|
1,013,635
|
|
|
1,013,635
|
|
|
—
|
|
|
1,013,084
|
|
|
551
|
|
|||||
Held to maturity investments
|
420,691
|
|
|
410,828
|
|
|
—
|
|
|
410,828
|
|
|
—
|
|
|||||
Loans held for sale
|
693,937
|
|
|
694,394
|
|
|
—
|
|
|
694,394
|
|
|
—
|
|
|||||
Loans, net of allowance
|
3,218,972
|
|
|
3,277,777
|
|
|
—
|
|
|
7,122
|
|
|
3,270,655
|
|
|||||
Investment in FHLB and FRB stock
|
79,726
|
|
|
79,726
|
|
|
—
|
|
|
79,726
|
|
|
—
|
|
|||||
Accrued interest receivable
|
16,502
|
|
|
16,502
|
|
|
16,502
|
|
|
—
|
|
|
—
|
|
|||||
Derivative financial instruments
|
73,283
|
|
|
73,283
|
|
|
—
|
|
|
71,707
|
|
|
1,576
|
|
|||||
Other assets
|
3,831
|
|
|
3,831
|
|
|
3,831
|
|
|
—
|
|
|
—
|
|
|||||
Total financial assets
|
$
|
5,618,409
|
|
|
$
|
5,667,808
|
|
|
$
|
118,165
|
|
|
$
|
2,276,861
|
|
|
$
|
3,272,782
|
|
Financial Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits without stated maturities
|
$
|
2,825,803
|
|
|
$
|
2,825,803
|
|
|
$
|
2,825,803
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Deposits with stated maturities
|
866,623
|
|
|
867,858
|
|
|
—
|
|
|
867,858
|
|
|
—
|
|
|||||
Short-term borrowings
|
1,428,855
|
|
|
1,428,794
|
|
|
—
|
|
|
1,428,794
|
|
|
—
|
|
|||||
Accrued interest payable
|
2,549
|
|
|
2,549
|
|
|
2,549
|
|
|
—
|
|
|
—
|
|
|||||
Derivative financial instruments
|
32,288
|
|
|
32,288
|
|
|
—
|
|
|
23,815
|
|
|
8,473
|
|
|||||
Junior subordinated debentures
|
86,607
|
|
|
79,843
|
|
|
46,440
|
|
|
33,403
|
|
|
—
|
|
|||||
Total financial liabilities
|
$
|
5,242,725
|
|
|
$
|
5,237,135
|
|
|
$
|
2,874,792
|
|
|
$
|
2,353,870
|
|
|
$
|
8,473
|
|
Off-Balance-Sheet Financial Instruments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Unfunded commitments to extend credit
|
$
|
1,501
|
|
|
$
|
1,501
|
|
|
$
|
—
|
|
|
$
|
1,501
|
|
|
$
|
—
|
|
Standby letters of credit
|
287
|
|
|
287
|
|
|
—
|
|
|
287
|
|
|
—
|
|
|||||
Total off-balance-sheet financial instruments
|
$
|
1,788
|
|
|
$
|
1,788
|
|
|
$
|
—
|
|
|
$
|
1,788
|
|
|
$
|
—
|
|
|
December 31, 2012
|
||||||||||||||||||
|
Carrying
Value
|
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
|
(in thousands)
|
||||||||||||||||||
Financial Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
166,385
|
|
|
$
|
166,385
|
|
|
$
|
166,385
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Available for sale investments
|
936,938
|
|
|
936,938
|
|
|
—
|
|
|
936,387
|
|
|
551
|
|
|||||
Held to maturity investments
|
330,819
|
|
|
342,231
|
|
|
—
|
|
|
342,231
|
|
|
—
|
|
|||||
Loans held for sale
|
938,379
|
|
|
938,379
|
|
|
—
|
|
|
938,379
|
|
|
—
|
|
|||||
Loans, net of allowance
|
3,086,112
|
|
|
3,139,173
|
|
|
—
|
|
|
20,735
|
|
|
3,118,438
|
|
|||||
Investment in FHLB and FRB stock
|
74,950
|
|
|
74,950
|
|
|
—
|
|
|
74,950
|
|
|
—
|
|
|||||
Accrued interest receivable
|
15,506
|
|
|
15,506
|
|
|
15,506
|
|
|
—
|
|
|
—
|
|
|||||
Derivative financial instruments
|
43,372
|
|
|
43,372
|
|
|
—
|
|
|
28,054
|
|
|
15,318
|
|
|||||
Other assets
|
3,085
|
|
|
3,085
|
|
|
3,085
|
|
|
—
|
|
|
—
|
|
|||||
Total financial assets
|
$
|
5,595,546
|
|
|
$
|
5,660,019
|
|
|
$
|
184,976
|
|
|
$
|
2,340,736
|
|
|
$
|
3,134,307
|
|
Financial Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits without stated maturities
|
$
|
2,565,403
|
|
|
$
|
2,565,403
|
|
|
$
|
2,565,403
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Deposits with stated maturities
|
962,939
|
|
|
964,947
|
|
|
—
|
|
|
964,947
|
|
|
—
|
|
|||||
Short-term borrowings
|
1,463,019
|
|
|
1,463,002
|
|
|
—
|
|
|
1,463,002
|
|
|
—
|
|
|||||
Accrued interest payable
|
3,191
|
|
|
3,191
|
|
|
3,191
|
|
|
—
|
|
|
—
|
|
|||||
Derivative financial instruments
|
20,678
|
|
|
20,678
|
|
|
—
|
|
|
20,678
|
|
|
—
|
|
|||||
Junior subordinated debentures
|
86,607
|
|
|
70,982
|
|
|
46,367
|
|
|
24,615
|
|
|
—
|
|
|||||
Subordinated notes, net
|
33,366
|
|
|
37,549
|
|
|
—
|
|
|
37,549
|
|
|
—
|
|
|||||
Total financial liabilities
|
$
|
5,135,203
|
|
|
$
|
5,125,752
|
|
|
$
|
2,614,961
|
|
|
$
|
2,510,791
|
|
|
$
|
—
|
|
Off-Balance-Sheet Financial Instruments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Unfunded commitments to extend credit
|
$
|
3,572
|
|
|
$
|
3,572
|
|
|
$
|
—
|
|
|
$
|
3,572
|
|
|
$
|
—
|
|
Standby letters of credit
|
437
|
|
|
437
|
|
|
—
|
|
|
437
|
|
|
—
|
|
|||||
Total off-balance-sheet financial instruments
|
$
|
4,009
|
|
|
$
|
4,009
|
|
|
$
|
—
|
|
|
$
|
4,009
|
|
|
$
|
—
|
|
|
Banking
|
|
Mortgage Banking
|
|
Other*
|
|
Consolidated
Total
|
||||||||||||||||||||||||
|
For the Quarter Ended
|
|
For the Quarter Ended
|
|
For the Quarter Ended
|
|
For the Quarter Ended
|
||||||||||||||||||||||||
|
June 30,
2013 |
|
June 30,
2012 |
|
June 30,
2013 |
|
June 30,
2012 |
|
June 30,
2013 |
|
June 30,
2012 |
|
June 30,
2013 |
|
June 30,
2012 |
||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||||||
Net interest income (loss)
|
$
|
37,175
|
|
|
$
|
36,735
|
|
|
$
|
5,742
|
|
|
$
|
3,503
|
|
|
$
|
(1,835
|
)
|
|
$
|
(3,860
|
)
|
|
$
|
41,082
|
|
|
$
|
36,378
|
|
Provision for loan losses
|
946
|
|
|
2
|
|
|
(246
|
)
|
|
98
|
|
|
—
|
|
|
—
|
|
|
700
|
|
|
100
|
|
||||||||
Total noninterest income
|
7,528
|
|
|
8,831
|
|
|
38,530
|
|
|
23,015
|
|
|
43
|
|
|
43
|
|
|
46,101
|
|
|
31,889
|
|
||||||||
Total noninterest expense
|
25,805
|
|
|
28,169
|
|
|
29,086
|
|
|
15,817
|
|
|
5,380
|
|
|
—
|
|
|
60,271
|
|
|
43,986
|
|
||||||||
Income (loss) before income taxes
|
17,952
|
|
|
17,395
|
|
|
15,432
|
|
|
10,603
|
|
|
(7,172
|
)
|
|
(3,817
|
)
|
|
26,212
|
|
|
24,181
|
|
||||||||
Income tax expense (benefit)
|
7,091
|
|
|
6,871
|
|
|
4,928
|
|
|
3,782
|
|
|
(1,424
|
)
|
|
(697
|
)
|
|
10,595
|
|
|
9,956
|
|
||||||||
Net income (loss)
|
$
|
10,861
|
|
|
$
|
10,524
|
|
|
$
|
10,504
|
|
|
$
|
6,821
|
|
|
$
|
(5,748
|
)
|
|
$
|
(3,120
|
)
|
|
$
|
15,617
|
|
|
$
|
14,225
|
|
Total average assets
|
$
|
4,652,059
|
|
|
$
|
4,256,252
|
|
|
$
|
1,090,917
|
|
|
$
|
607,794
|
|
|
$
|
4,243
|
|
|
$
|
3,764
|
|
|
$
|
5,747,219
|
|
|
$
|
4,867,810
|
|
Average loans
|
2,983,777
|
|
|
2,716,230
|
|
|
271,141
|
|
|
230,926
|
|
|
—
|
|
|
—
|
|
|
3,254,918
|
|
|
2,947,156
|
|
||||||||
Average held for sale loans
|
—
|
|
|
—
|
|
|
634,327
|
|
|
324,245
|
|
|
—
|
|
|
—
|
|
|
634,327
|
|
|
324,245
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
The Other category includes subordinated note expense, certain parent company activities and residual income tax expense (benefit).
|
|
|
|
Banking
|
|
Mortgage Banking
|
|
Other*
|
|
Consolidated
Total
|
||||||||||||||||||||||||
|
For the Six Months Ended
|
|
For the Six Months Ended
|
|
For the Six Months Ended
|
|
For the Six Months Ended
|
||||||||||||||||||||||||
|
June 30,
2013 |
|
June 30,
2012 |
|
June 30,
2013 |
|
June 30,
2012 |
|
June 30,
2013 |
|
June 30,
2012 |
|
June 30,
2013 |
|
June 30,
2012 |
||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||||||
Net interest income (loss)
|
$
|
73,356
|
|
|
$
|
74,102
|
|
|
$
|
12,156
|
|
|
$
|
5,785
|
|
|
$
|
(3,747
|
)
|
|
$
|
(7,707
|
)
|
|
$
|
81,765
|
|
|
$
|
72,180
|
|
Provision for loan losses
|
1,238
|
|
|
7,226
|
|
|
(238
|
)
|
|
224
|
|
|
—
|
|
|
—
|
|
|
1,000
|
|
|
7,450
|
|
||||||||
Total noninterest income
|
15,175
|
|
|
15,202
|
|
|
70,560
|
|
|
40,546
|
|
|
85
|
|
|
87
|
|
|
85,820
|
|
|
55,835
|
|
||||||||
Total noninterest expense
|
51,273
|
|
|
52,844
|
|
|
55,373
|
|
|
27,710
|
|
|
5,380
|
|
|
—
|
|
|
112,026
|
|
|
80,554
|
|
||||||||
Income (loss) before income taxes
|
36,020
|
|
|
29,234
|
|
|
27,581
|
|
|
18,397
|
|
|
(9,042
|
)
|
|
(7,620
|
)
|
|
54,559
|
|
|
40,011
|
|
||||||||
Income tax expense (benefit)
|
14,228
|
|
|
11,547
|
|
|
8,303
|
|
|
6,428
|
|
|
(846
|
)
|
|
(1,658
|
)
|
|
21,685
|
|
|
16,317
|
|
||||||||
Net income (loss)
|
$
|
21,792
|
|
|
$
|
17,687
|
|
|
$
|
19,278
|
|
|
$
|
11,969
|
|
|
$
|
(8,196
|
)
|
|
$
|
(5,962
|
)
|
|
$
|
32,874
|
|
|
$
|
23,694
|
|
Total average assets
|
$
|
4,570,122
|
|
|
$
|
4,244,943
|
|
|
$
|
1,120,735
|
|
|
$
|
515,291
|
|
|
$
|
4,138
|
|
|
$
|
3,682
|
|
|
$
|
5,694,995
|
|
|
$
|
4,763,916
|
|
Average loans
|
2,935,140
|
|
|
2,727,711
|
|
|
281,340
|
|
|
214,451
|
|
|
—
|
|
|
—
|
|
|
3,216,480
|
|
|
2,942,162
|
|
||||||||
Average held for sale loans
|
—
|
|
|
—
|
|
|
662,573
|
|
|
257,878
|
|
|
—
|
|
|
—
|
|
|
662,573
|
|
|
257,878
|
|
*
|
The Other category includes subordinated note expense, certain parent company activities and residual income tax expense (benefit).
|
•
|
We may be materially and adversely affected by the highly regulated environment in which we operate.
|
•
|
Increasing dependence on our mortgage business may increase volatility in our consolidated revenues and earnings and our residential mortgage lending profitability could be significantly reduced if we are not able to originate and sell mortgage loans at profitable margins.
|
•
|
Changes in interest rates may change the value of our mortgage servicing rights ("MSRs") portfolio which may increase the volatility of our earnings.
|
•
|
Certain hedging strategies that we use to manage investment in MSRs, mortgage loans held for sale and interest rate lock commitments may be ineffective to offset any adverse changes in the fair value of these assets due to changes in interest rates and market liquidity.
|
•
|
Our mortgage loan repurchase reserve for losses could be insufficient.
|
•
|
A significant increase in certain loan balances associated with our mortgage business may result in liquidity risk related to the funding of these loans.
|
•
|
We are subject to interest rate risk, including interest rate fluctuations, that could have a material adverse effect on us.
|
•
|
Competition from financial institutions and other financial services providers may adversely affect our growth and profitability and have a material adverse effect on us.
|
•
|
Our business is subject to the conditions of the economies in which we operate and continued weakness in those economies and the real estate markets may materially and adversely affect us.
|
•
|
Our business is subject to domestic and to a lesser extent, international economic conditions and other factors, many of which are beyond our control and could materially and adversely affect us.
|
•
|
The preparation of our consolidated financial statements requires us to make estimates and judgments, including the use of models, which are subject to an inherent degree of uncertainty and which may differ from actual results.
|
•
|
We must manage credit risk and if we are unable to do so, our allowance for loan losses may prove to be insufficient to absorb losses in our loan portfolio, which could have a material adverse effect on us.
|
•
|
We may not be able to access sufficient and cost-effective sources of liquidity.
|
•
|
We are subject to liquidity risk, including unanticipated deposit volatility.
|
•
|
The repeal of federal prohibitions on payment of interest on business demand deposits could increase our interest expense and have a material adverse effect on us.
|
•
|
Changes in certain credit ratings related to us or our credit could increase our financing costs or make it more difficult for us to obtain funding or capital on commercially acceptable terms.
|
•
|
As a bank holding company, our sources of funds are limited.
|
•
|
We are subject to certain operational risks, including, but not limited to, data processing system failures and errors and customer or employee fraud. Our controls and procedures may fail or be circumvented.
|
•
|
We are dependent on outside third parties for processing and handling of our records and data.
|
•
|
System failure or breaches of our network security, including with respect to our Internet banking activities, could subject us to increased operating costs as well as litigation and other liabilities.
|
•
|
We have counterparty risk and, therefore, we may be materially and adversely affected by the soundness of other financial institutions.
|
•
|
We are subject to lending concentration risks.
|
•
|
We are subject to mortgage asset concentration risks.
|
•
|
Our business strategy is dependent on our continued ability to attract, develop and retain highly qualified and experienced personnel in senior management and customer relationship positions.
|
•
|
Our reputation could be damaged by negative publicity.
|
•
|
New lines of business, new products and services or new customer relationships may subject us to certain additional risks.
|
•
|
We may experience difficulties in managing our future growth.
|
•
|
We and our subsidiaries are subject to changes in federal and state tax laws and changes in interpretation of existing laws.
|
•
|
Regulatory requirements including rules recently adopted by the U.S. federal bank regulatory agencies to implement Basel III, growth plans or operating results may require us to raise additional capital, which may not be available on favorable terms or at all.
|
•
|
We have not paid a dividend on our common stock since the second quarter of 2008. In addition, regulatory restrictions and liquidity constraints at the holding company level could impair our ability to make distributions on our outstanding securities.
|
•
|
The Agreement and Plan of Merger (the "Merger Agreement") with MB Financial, Inc. ("MB") may be terminated in accordance with its terms, and the merger may not be completed.
|
•
|
Termination of the Merger Agreement could negatively impact us.
|
•
|
We will be subject to business uncertainties and contractual restrictions while the merger is pending.
|
•
|
Lawsuits may be filed against us, our Board of Directors and MB challenging the merger, and an adverse judgment in any such lawsuit may prevent the merger from being completed or from being completed within the expected timeframe.
|
•
|
The Merger Agreement limits our ability to pursue an alternative acquisition proposal and requires us to pay a termination fee of $20 million under limited circumstances relating to alternative acquisition proposals.
|
•
|
Pre-tax, pre-provision operating earnings (a non-GAAP financial measure defined below) increased 23.9% to $31.1 million for the quarter ended
June 30, 2013
, as compared to $25.1 million for the quarter ended
June 30, 2012
. During the six months ended
June 30, 2013
, pre-tax, pre-provision operating earnings increased by 22.8% to $60.3 million from $49.1 million as compared to the six months ended
June 30, 2012
.
|
•
|
In the
second quarter of 2013
, total revenue (a non-GAAP financial measure defined below) was $87.2 million, a 33.7% increase from $65.2 million for the
second quarter of 2012
. For the six months ended
June 30, 2013
, total revenue was $167.6 million, a 34.9% increase from $124.2 million for the same period in 2012.
|
•
|
Total commercial loans increased to $3.00 billion at
June 30, 2013
, up $397.6 million, or 15.3%, from
June 30, 2012
.
|
•
|
At
June 30, 2013
, total nonperforming assets were $89.3 million, down from $106.7 million at
June 30, 2012
.
|
•
|
Mortgage origination volume was $1.87 billion for the
second quarter of 2013
, up $914.2 million or 95.2% from the
second quarter of 2012
.
|
•
|
The Company prepaid $37.5 million principal amount of the 8% subordinated notes originally due in 2020, which resulted in a non-recurring, pre-tax charge of $5.4 million associated with the unamortized discount, original issuance costs and prepayment premium.
|
•
|
We completed the purchase of MSRs as well as certain office space, furniture and equipment from Liberty Savings Bank, FSB of Wilmington, Ohio.
|
|
For the Quarter Ended
|
|
For the Six Months Ended
|
||||||||||||
|
June 30, 2013
|
|
June 30, 2012
|
|
June 30, 2013
|
|
June 30, 2012
|
||||||||
|
(in thousands)
|
||||||||||||||
Income before income taxes
|
$
|
26,212
|
|
|
$
|
24,181
|
|
|
$
|
54,559
|
|
|
$
|
40,011
|
|
Add back (subtract):
|
|
|
|
|
|
|
|
||||||||
Credit costs:
|
|
|
|
|
|
|
|
||||||||
Provision for loan losses
|
700
|
|
|
100
|
|
|
1,000
|
|
|
7,450
|
|
||||
Nonperforming asset expense, net
|
(1,198
|
)
|
|
828
|
|
|
(639
|
)
|
|
1,522
|
|
||||
Credit costs subtotal
|
(498
|
)
|
|
928
|
|
|
361
|
|
|
8,972
|
|
||||
Other:
|
|
|
|
|
|
|
|
||||||||
Gains on sales of investment securities, net
|
(6
|
)
|
|
(3,020
|
)
|
|
(7
|
)
|
|
(3,976
|
)
|
||||
Early extinguishment of debt
|
5,380
|
|
|
2,987
|
|
|
5,380
|
|
|
3,988
|
|
||||
Impairment of investment securities
|
—
|
|
|
—
|
|
|
—
|
|
|
125
|
|
||||
Other subtotal
|
5,374
|
|
|
(33
|
)
|
|
5,373
|
|
|
137
|
|
||||
Pre-tax, pre-provision operating earnings
|
$
|
31,088
|
|
|
$
|
25,076
|
|
|
$
|
60,293
|
|
|
$
|
49,120
|
|
|
|
|
|
|
|
|
|
||||||||
The following table details the components of revenue for the periods indicated:
|
|||||||||||||||
|
For the Quarter Ended
|
|
For the Six Months Ended
|
||||||||||||
|
June 30, 2013
|
|
June 30, 2012
|
|
June 30, 2013
|
|
June 30, 2012
|
||||||||
|
(in thousands)
|
||||||||||||||
Net interest income
|
$
|
41,082
|
|
|
$
|
36,378
|
|
|
$
|
81,765
|
|
|
$
|
72,180
|
|
Noninterest income
|
46,101
|
|
|
31,889
|
|
|
85,820
|
|
|
55,835
|
|
||||
Add back (subtract):
|
|
|
|
|
|
|
|
||||||||
Gains on sales of investment securities, net
|
(6
|
)
|
|
(3,020
|
)
|
|
(7
|
)
|
|
(3,976
|
)
|
||||
Impairment of investment securities
|
—
|
|
|
—
|
|
|
—
|
|
|
125
|
|
||||
Revenue
|
$
|
87,177
|
|
|
$
|
65,247
|
|
|
$
|
167,578
|
|
|
$
|
124,164
|
|
|
Quarter Ended June 30, 2013
Versus Quarter Ended
June 30, 2012 Increase/(Decrease)
|
|
Six Months Ended June 30, 2013
Versus Six Months Ended
June 30, 2012 Increase/(Decrease)
|
||||||||||||||||||||||||
|
VOLUME
|
|
RATE
|
|
NET
|
|
VOLUME
|
|
RATE
|
|
DAYS*
|
|
NET
|
||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||
INTEREST EARNED ON:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Investment securities
|
$
|
1,454
|
|
|
$
|
(812
|
)
|
|
$
|
642
|
|
|
$
|
2,190
|
|
|
$
|
(1,951
|
)
|
|
$
|
(122
|
)
|
|
$
|
117
|
|
Cash equivalents
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
|
(1
|
)
|
|
—
|
|
|
(3
|
)
|
|||||||
Loans held for sale
|
2,664
|
|
|
(469
|
)
|
|
2,195
|
|
|
6,911
|
|
|
(769
|
)
|
|
(28
|
)
|
|
6,114
|
|
|||||||
Loans
|
3,274
|
|
|
(3,396
|
)
|
|
(122
|
)
|
|
5,932
|
|
|
(7,268
|
)
|
|
(361
|
)
|
|
(1,697
|
)
|
|||||||
Total interest-earning assets
|
|
|
|
|
2,713
|
|
|
|
|
|
|
|
|
4,531
|
|
||||||||||||
INTEREST PAID ON:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest-bearing deposits
|
486
|
|
|
(1,212
|
)
|
|
(726
|
)
|
|
829
|
|
|
(2,643
|
)
|
|
(57
|
)
|
|
(1,871
|
)
|
|||||||
Total borrowings
|
619
|
|
|
(2,628
|
)
|
|
(2,009
|
)
|
|
963
|
|
|
(5,245
|
)
|
|
(54
|
)
|
|
(4,336
|
)
|
|||||||
Total interest-bearing liabilities
|
|
|
|
|
(2,735
|
)
|
|
|
|
|
|
|
|
(6,207
|
)
|
||||||||||||
Net interest income, tax-equivalent
|
|
|
|
|
$
|
5,448
|
|
|
|
|
|
|
|
|
$
|
10,738
|
|
*
|
Represents variance due to one less day in the six months ended June 30, 2013 versus the six months ended June 30, 2012.
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
|
(dollars in thousands)
|
||||||||||||||
Net interest income as stated
|
$
|
41,082
|
|
|
$
|
36,378
|
|
|
$
|
81,765
|
|
|
$
|
72,180
|
|
Tax-equivalent adjustment-investments
|
1,119
|
|
|
372
|
|
|
1,888
|
|
|
729
|
|
||||
Tax-equivalent adjustment-loans
|
29
|
|
|
32
|
|
|
58
|
|
|
64
|
|
||||
Tax-equivalent net interest income
|
$
|
42,230
|
|
|
$
|
36,782
|
|
|
$
|
83,711
|
|
|
$
|
72,973
|
|
Yield on earning assets without tax adjustment
|
3.59
|
%
|
|
4.05
|
%
|
|
3.63
|
%
|
|
4.13
|
%
|
||||
Yield on earning assets – tax-equivalent
|
3.67
|
%
|
|
4.08
|
%
|
|
3.70
|
%
|
|
4.16
|
%
|
||||
Net interest margin without tax adjustment
|
3.07
|
%
|
|
3.20
|
%
|
|
3.10
|
%
|
|
3.23
|
%
|
||||
Net interest margin – tax-equivalent
|
3.16
|
%
|
|
3.24
|
%
|
|
3.18
|
%
|
|
3.26
|
%
|
||||
Net interest spread without tax adjustment
|
2.88
|
%
|
|
2.93
|
%
|
|
2.89
|
%
|
|
2.96
|
%
|
||||
Net interest spread – tax-equivalent
|
2.96
|
%
|
|
2.97
|
%
|
|
2.96
|
%
|
|
2.99
|
%
|
|
For the Three Months Ended
|
|
For the Six Months Ended
|
||||||||||||
|
June 30, 2013
|
|
June 30, 2012
|
|
June 30, 2013
|
|
June 30, 2012
|
||||||||
|
(in thousands)
|
||||||||||||||
Service charges
|
$
|
3,505
|
|
|
$
|
3,355
|
|
|
$
|
6,996
|
|
|
$
|
6,646
|
|
Mortgage banking revenue
|
38,533
|
|
|
23,014
|
|
|
70,563
|
|
|
40,544
|
|
||||
Gains on sales of investment securities, net
|
6
|
|
|
3,020
|
|
|
7
|
|
|
3,976
|
|
||||
Letter of credit and other loan fees
|
1,074
|
|
|
935
|
|
|
2,165
|
|
|
1,880
|
|
||||
Change in market value of employee deferred compensation plan
|
100
|
|
|
(91
|
)
|
|
218
|
|
|
76
|
|
||||
Other derivative income
|
1,704
|
|
|
815
|
|
|
3,264
|
|
|
1,376
|
|
||||
Other noninterest income
|
1,179
|
|
|
841
|
|
|
2,607
|
|
|
1,337
|
|
||||
Total noninterest income
|
$
|
46,101
|
|
|
$
|
31,889
|
|
|
$
|
85,820
|
|
|
$
|
55,835
|
|
|
For the Three Months
Ended
|
|
For the Six Months Ended
|
||||||||||||
|
June 30, 2013
|
|
June 30, 2012
|
|
June 30, 2013
|
|
June 30, 2012
|
||||||||
|
(dollars in thousands)
|
||||||||||||||
Salaries and employee benefits:
|
|
|
|
|
|
|
|
||||||||
Salaries, employment taxes and medical insurance
|
$
|
22,703
|
|
|
$
|
15,342
|
|
|
$
|
46,443
|
|
|
$
|
30,830
|
|
Incentives, commissions and retirement benefits
|
14,619
|
|
|
12,936
|
|
|
24,907
|
|
|
21,085
|
|
||||
Total salaries and employee benefits
|
37,322
|
|
|
28,278
|
|
|
71,350
|
|
|
51,915
|
|
||||
Occupancy of premises
|
2,625
|
|
|
2,136
|
|
|
5,193
|
|
|
4,311
|
|
||||
Furniture and equipment
|
894
|
|
|
786
|
|
|
1,631
|
|
|
1,401
|
|
||||
Nonperforming asset expense
|
(1,198
|
)
|
|
828
|
|
|
(639
|
)
|
|
1,522
|
|
||||
FDIC assessment
|
1,759
|
|
|
1,497
|
|
|
3,783
|
|
|
3,199
|
|
||||
Early extinguishment of debt
|
5,380
|
|
|
2,987
|
|
|
5,380
|
|
|
3,988
|
|
||||
Legal fees, net
|
1,117
|
|
|
757
|
|
|
1,975
|
|
|
1,613
|
|
||||
Loan expense, net
|
2,895
|
|
|
1,425
|
|
|
5,266
|
|
|
2,543
|
|
||||
Outside services
|
2,818
|
|
|
708
|
|
|
5,314
|
|
|
1,287
|
|
||||
Computer processing
|
1,047
|
|
|
627
|
|
|
2,013
|
|
|
1,213
|
|
||||
Other noninterest expense
|
5,612
|
|
|
3,957
|
|
|
10,760
|
|
|
7,562
|
|
||||
Total noninterest expense
|
$
|
60,271
|
|
|
$
|
43,986
|
|
|
$
|
112,026
|
|
|
$
|
80,554
|
|
Efficiency ratio
|
69.14
|
%
|
|
67.41
|
%
|
|
66.85
|
%
|
|
64.88
|
%
|
|
For the Quarter
Ended
|
||||||
|
June 30, 2013
|
|
June 30, 2012
|
||||
|
(in thousands)
|
||||||
Held for sale
|
$
|
(1,354
|
)
|
|
$
|
815
|
|
Held for investment
|
156
|
|
|
13
|
|
||
Total
|
$
|
(1,198
|
)
|
|
$
|
828
|
|
|
For the Six Months Ended
|
||||||
|
June 30, 2013
|
|
June 30, 2012
|
||||
|
(in thousands)
|
||||||
Held for sale
|
$
|
(1,324
|
)
|
|
$
|
1,327
|
|
Held for investment
|
685
|
|
|
195
|
|
||
Total
|
$
|
(639
|
)
|
|
$
|
1,522
|
|
|
June 30, 2013
|
|
December 31, 2012
|
||||||||||
|
Amount
|
|
Percentage
of Gross
Loans
|
|
Amount
|
|
Percentage
of Gross
Loans
|
||||||
|
(dollars in thousands)
|
||||||||||||
Loans:
|
|
|
|
|
|
|
|
||||||
Commercial and industrial
|
$
|
1,707,502
|
|
|
52
|
%
|
|
$
|
1,590,587
|
|
|
50
|
%
|
Commercial real estate secured
|
1,036,303
|
|
|
31
|
|
|
965,978
|
|
|
30
|
|
||
Residential construction and land
|
42,606
|
|
|
1
|
|
|
45,903
|
|
|
2
|
|
||
Commercial construction and land
|
119,839
|
|
|
4
|
|
|
103,715
|
|
|
3
|
|
||
Lease receivables
|
93,999
|
|
|
3
|
|
|
50,803
|
|
|
2
|
|
||
Total commercial loans
|
3,000,249
|
|
|
91
|
|
|
2,756,986
|
|
|
87
|
|
||
Consumer
|
311,115
|
|
|
9
|
|
|
416,635
|
|
|
13
|
|
||
Gross loans
|
3,311,364
|
|
|
100
|
%
|
|
3,173,621
|
|
|
100
|
%
|
||
Less: Unearned discount
|
(8,816
|
)
|
|
|
|
(5,318
|
)
|
|
|
||||
Loans
|
3,302,548
|
|
|
|
|
3,168,303
|
|
|
|
||||
Less: Allowance for loan losses
|
(83,576
|
)
|
|
|
|
(82,191
|
)
|
|
|
||||
Loans, net
|
$
|
3,218,972
|
|
|
|
|
$
|
3,086,112
|
|
|
|
||
|
|
|
|
|
|
|
|
||||||
Loans Held for Sale
|
$
|
693,937
|
|
|
|
|
$
|
938,379
|
|
|
|
|
June 30, 2013
|
|
December 31, 2012
|
||||||||||
|
Balance
|
|
Percentage
of Total
Commercial
Real Estate
Loans
|
|
Balance
|
|
Percentage
of Total
Commercial
Real Estate
Loans
|
||||||
|
(dollars in thousands)
|
||||||||||||
Commercial non-owner occupied:
|
|
|
|
|
|
|
|
||||||
Retail strip centers or malls
|
$
|
105,305
|
|
|
10
|
%
|
|
$
|
109,266
|
|
|
11
|
%
|
Office/mix use property
|
110,174
|
|
|
11
|
|
|
113,216
|
|
|
12
|
|
||
Commercial properties
|
99,855
|
|
|
10
|
|
|
111,852
|
|
|
12
|
|
||
Specialized – other
|
73,133
|
|
|
7
|
|
|
69,827
|
|
|
7
|
|
||
Other commercial properties
|
24,806
|
|
|
2
|
|
|
28,870
|
|
|
3
|
|
||
Farmland
|
2,314
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Subtotal commercial non-owner occupied
|
415,587
|
|
|
40
|
|
|
433,031
|
|
|
45
|
|
||
Commercial owner occupied
|
498,057
|
|
|
48
|
|
|
425,723
|
|
|
44
|
|
||
Multi-family properties
|
122,659
|
|
|
12
|
|
|
107,224
|
|
|
11
|
|
||
Total commercial real estate secured
|
$
|
1,036,303
|
|
|
100
|
%
|
|
$
|
965,978
|
|
|
100
|
%
|
|
June 30, 2013
|
|
December 31, 2012
|
|
June 30, 2012
|
||||||
|
(dollars in thousands)
|
||||||||||
Loans contractually past due 90 days or more but still accruing interest
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Nonaccrual loans:
|
|
|
|
|
|
||||||
Commercial and industrial
|
16,577
|
|
|
16,705
|
|
|
20,193
|
|
|||
Commercial real estate secured
|
20,900
|
|
|
14,530
|
|
|
30,264
|
|
|||
Residential construction and land
|
—
|
|
|
4,495
|
|
|
7,003
|
|
|||
Commercial construction and land
|
26,272
|
|
|
15,220
|
|
|
6,679
|
|
|||
Consumer
|
5,790
|
|
|
8,587
|
|
|
9,965
|
|
|||
Total nonaccrual loans
|
69,539
|
|
|
59,537
|
|
|
74,104
|
|
|||
Total nonperforming loans
|
69,539
|
|
|
59,537
|
|
|
74,104
|
|
|||
OREO and repossessed assets
|
19,794
|
|
|
24,259
|
|
|
32,627
|
|
|||
Total nonperforming assets
|
$
|
89,333
|
|
|
$
|
83,796
|
|
|
$
|
106,731
|
|
Performing restructured loans not included in nonperforming assets
|
21,928
|
|
|
$
|
17,456
|
|
|
13,937
|
|
||
Nonperforming loans to total loans*
|
2.11
|
%
|
|
1.88
|
%
|
|
2.49
|
%
|
|||
Nonperforming assets to total loans plus OREO and repossessed property*
|
2.69
|
%
|
|
2.62
|
%
|
|
3.54
|
%
|
|||
Nonperforming assets to total assets
|
1.51
|
%
|
|
1.44
|
%
|
|
2.22
|
%
|
|
For the Quarter Ended
|
|
For the Six Months Ended
|
||||||||||||
|
June 30, 2013
|
|
June 30, 2012
|
|
June 30, 2013
|
|
June 30, 2012
|
||||||||
|
(in thousands)
|
||||||||||||||
Balance at beginning of period
|
$
|
27,218
|
|
|
$
|
36,941
|
|
|
$
|
24,259
|
|
|
$
|
35,622
|
|
Transfers from loans
|
—
|
|
|
2,060
|
|
|
5,040
|
|
|
7,660
|
|
||||
Dispositions
|
(6,860
|
)
|
|
(5,432
|
)
|
|
(8,941
|
)
|
|
(9,417
|
)
|
||||
Change in impairment
|
(564
|
)
|
|
(942
|
)
|
|
(564
|
)
|
|
(1,238
|
)
|
||||
Balance at end of period
|
$
|
19,794
|
|
|
$
|
32,627
|
|
|
$
|
19,794
|
|
|
$
|
32,627
|
|
|
June 30, 2013
|
|
December 31, 2012
|
|
June 30, 2012
|
||||||
|
(in thousands)
|
||||||||||
Impaired loans:
|
|
|
|
|
|
||||||
Commercial and industrial
|
$
|
18,048
|
|
|
$
|
18,241
|
|
|
$
|
24,406
|
|
Commercial real estate secured
|
36,152
|
|
|
25,925
|
|
|
35,185
|
|
|||
Residential construction and land
|
—
|
|
|
4,495
|
|
|
7,003
|
|
|||
Commercial construction and land
|
26,272
|
|
|
15,220
|
|
|
6,679
|
|
|||
Consumer
|
5,946
|
|
|
6,462
|
|
|
6,217
|
|
|||
Total impaired loans
|
$
|
86,418
|
|
|
$
|
70,343
|
|
|
$
|
79,490
|
|
Recorded balance of impaired loans:
|
|
|
|
|
|
||||||
With related allowance for loan losses
|
$
|
57,589
|
|
|
$
|
30,744
|
|
|
$
|
37,930
|
|
With no related allowance for loan losses
|
28,829
|
|
|
39,599
|
|
|
41,560
|
|
|||
Total impaired loans
|
$
|
86,418
|
|
|
$
|
70,343
|
|
|
$
|
79,490
|
|
Allowance for losses on impaired loans:
|
|
|
|
|
|
||||||
Commercial and industrial
|
$
|
8,486
|
|
|
$
|
8,006
|
|
|
$
|
9,196
|
|
Commercial real estate secured
|
1,820
|
|
|
1,121
|
|
|
6,232
|
|
|||
Residential construction and land
|
—
|
|
|
—
|
|
|
845
|
|
|||
Commercial construction and land
|
6,024
|
|
|
2,930
|
|
|
1,189
|
|
|||
Total allowance for losses on impaired loans
|
$
|
16,330
|
|
|
$
|
12,057
|
|
|
$
|
17,462
|
|
|
Nonaccrual
Loans
|
|
Impaired
Loans
|
||||
|
(dollars in thousands)
|
||||||
Commercial nonaccrual loans
|
$
|
63,749
|
|
|
$
|
63,749
|
|
Commercial loans on accrual but impaired
|
n/a
|
|
|
16,723
|
|
||
Consumer loans
|
5,790
|
|
|
5,946
|
|
||
|
$
|
69,539
|
|
|
$
|
86,418
|
|
|
Quarter ended
|
|
Six months ended
|
||||||||||||
|
June 30, 2013
|
|
June 30, 2012
|
|
June 30, 2013
|
|
June 30, 2012
|
||||||||
|
(dollars in thousands)
|
||||||||||||||
Average loans*
|
$
|
3,254,918
|
|
|
$
|
2,947,156
|
|
|
$
|
3,216,480
|
|
|
$
|
2,942,162
|
|
Loans at end of period*
|
$
|
3,302,548
|
|
|
$
|
2,981,827
|
|
|
$
|
3,302,548
|
|
|
$
|
2,981,827
|
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
||||||||
Allowance at beginning of period
|
$
|
82,150
|
|
|
$
|
93,509
|
|
|
$
|
82,191
|
|
|
$
|
103,744
|
|
Charge-offs, net of recoveries:
|
|
|
|
|
|
|
|
||||||||
Commercial and commercial real estate
|
870
|
|
|
(2,584
|
)
|
|
984
|
|
|
(17,930
|
)
|
||||
Real estate construction
|
48
|
|
|
(3,184
|
)
|
|
222
|
|
|
(4,382
|
)
|
||||
Residential real estate mortgages and consumer
|
(192
|
)
|
|
(849
|
)
|
|
(821
|
)
|
|
(1,890
|
)
|
||||
Total net (charge-offs)/recoveries
|
726
|
|
|
(6,617
|
)
|
|
385
|
|
|
(24,202
|
)
|
||||
Provision for loan losses
|
700
|
|
|
100
|
|
|
1,000
|
|
|
7,450
|
|
||||
Allowance at end of period
|
$
|
83,576
|
|
|
$
|
86,992
|
|
|
$
|
83,576
|
|
|
$
|
86,992
|
|
Annualized net charge-offs to average total loans*
|
(0.09
|
)%
|
|
0.90
|
%
|
|
(0.02
|
)%
|
|
1.65
|
%
|
||||
Allowance to total loans at end of period (excluding loans held for sale)
|
2.53
|
%
|
|
2.92
|
%
|
|
2.53
|
%
|
|
2.92
|
%
|
||||
Allowance to nonperforming loans
|
120.19
|
%
|
|
117.39
|
%
|
|
120.19
|
%
|
|
117.39
|
%
|
|
June 30,
2013 |
|
December 31, 2012
|
||||
|
(in thousands)
|
||||||
Noninterest-bearing deposits
|
$
|
1,138,839
|
|
|
$
|
1,179,724
|
|
Interest-bearing deposits
|
|
|
|
||||
Commercial interest checking
|
336,903
|
|
|
—
|
|
||
NOW accounts
|
537,103
|
|
|
573,133
|
|
||
Savings accounts
|
41,576
|
|
|
39,915
|
|
||
Money market accounts
|
771,382
|
|
|
744,791
|
|
||
Brokered money market deposits
|
—
|
|
|
27,840
|
|
||
Certificates of deposit
|
557,656
|
|
|
561,998
|
|
||
Brokered certificates of deposit
|
160,408
|
|
|
199,604
|
|
||
CDARS time deposits
|
132,552
|
|
|
186,187
|
|
||
Public time deposits
|
16,007
|
|
|
15,150
|
|
||
Total interest-bearing deposits
|
2,553,587
|
|
|
2,348,618
|
|
||
Total deposits
|
$
|
3,692,426
|
|
|
$
|
3,528,342
|
|
|
Six months ended June 30, 2013
|
|
Six months ended June 30, 2012
|
||||||||||||||||
|
Average
Balance
|
|
Percent Of
Deposits
|
|
Rate
|
|
Average
Balance
|
|
Percent Of
Deposits
|
|
Rate
|
||||||||
|
(dollars in thousands)
|
||||||||||||||||||
Noninterest-bearing demand deposits
|
$
|
1,264,451
|
|
|
34.0
|
%
|
|
—
|
%
|
|
$
|
823,470
|
|
|
26.6
|
%
|
|
—
|
%
|
Commercial interest checking
|
80,255
|
|
|
2.1
|
|
|
0.47
|
%
|
|
—
|
|
|
—
|
|
|
—
|
%
|
||
NOW accounts
|
695,772
|
|
|
18.7
|
|
|
0.58
|
%
|
|
359,956
|
|
|
11.6
|
|
|
0.67
|
%
|
||
Money market accounts
|
763,482
|
|
|
20.5
|
|
|
0.45
|
%
|
|
686,635
|
|
|
22.2
|
|
|
0.57
|
%
|
||
Brokered money market accounts
|
—
|
|
|
—
|
|
|
—
|
%
|
|
9,193
|
|
|
0.3
|
|
|
0.33
|
%
|
||
Savings deposits
|
40,590
|
|
|
1.1
|
|
|
0.07
|
%
|
|
39,355
|
|
|
1.3
|
|
|
0.07
|
%
|
||
Time deposits:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Certificates of deposit
|
550,442
|
|
|
14.8
|
|
|
1.15
|
%
|
|
635,073
|
|
|
20.5
|
|
|
1.27
|
%
|
||
Brokered certificates of deposit
|
171,966
|
|
|
4.6
|
|
|
1.36
|
%
|
|
349,393
|
|
|
11.3
|
|
|
1.56
|
%
|
||
CDARS time deposits
|
145,136
|
|
|
3.9
|
|
|
0.37
|
%
|
|
154,241
|
|
|
4.9
|
|
|
0.48
|
%
|
||
Public time deposits
|
12,204
|
|
|
0.3
|
|
|
0.28
|
%
|
|
39,498
|
|
|
1.3
|
|
|
0.39
|
%
|
||
Total time deposits
|
879,748
|
|
|
23.6
|
|
|
1.05
|
%
|
|
1,178,205
|
|
|
38.0
|
|
|
1.22
|
%
|
||
Total deposits
|
$
|
3,724,298
|
|
|
100.0
|
%
|
|
0.45
|
%
|
|
$
|
3,096,814
|
|
|
100.0
|
%
|
|
|
|
June 30, 2013
|
|
December 31, 2012
|
||||
|
(in thousands)
|
||||||
Taylor Capital Group, Inc.:
|
|
|
|
||||
8% subordinated notes issued May 2010, due May 28, 2020
|
$
|
—
|
|
|
$
|
33,938
|
|
Unamortized discount
|
—
|
|
|
(3,737
|
)
|
||
8% subordinated notes issued October 2010, due May 28, 2020
|
—
|
|
|
3,562
|
|
||
Unamortized discount
|
—
|
|
|
(397
|
)
|
||
Total subordinated notes, net
|
$
|
—
|
|
|
$
|
33,366
|
|
|
ACTUAL
|
|
FOR CAPITAL
ADEQUACY
PURPOSES
|
|
TO BE WELL
CAPITALIZED UNDER
PROMPT
CORRECTIVE ACTION
PROVISIONS
|
|||||||||
|
AMOUNT
|
|
RATIO
|
|
AMOUNT
|
|
RATIO
|
|
AMOUNT
|
|
RATIO
|
|||
|
(dollars in thousands)
|
|||||||||||||
As of June 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|||
Total Capital (to Risk Weighted Assets)
|
|
|
|
|
|
|
|
|
|
|
|
|||
Taylor Capital Group, Inc.
|
$679,379
|
|
15.22
|
%
|
|
>$357,099
|
|
>8.00
|
%
|
|
>$446,373
|
|
>10.00
|
%
|
Cole Taylor Bank
|
$578,759
|
|
13.02
|
%
|
|
>$355,616
|
|
>8.00
|
%
|
|
>$444,520
|
|
>10.00
|
%
|
Tier I Capital (to Risk Weighted Assets)
|
|
|
|
|
|
|
|
|
|
|
|
|||
Taylor Capital Group, Inc.
|
$623,221
|
|
13.96
|
%
|
|
>$178,549
|
|
>4.00
|
%
|
|
>$267,824
|
|
>6.00
|
%
|
Cole Taylor Bank
|
$522,830
|
|
11.76
|
%
|
|
>$177,808
|
|
>4.00
|
%
|
|
>$266,712
|
|
>6.00
|
%
|
Leverage (to average assets)
|
|
|
|
|
|
|
|
|
|
|
|
|||
Taylor Capital Group, Inc.
|
$623,221
|
|
10.87
|
%
|
|
>$229,306
|
|
>4.00
|
%
|
|
>$286,632
|
|
>5.00
|
%
|
Cole Taylor Bank
|
$522,830
|
|
9.15
|
%
|
|
>$228,543
|
|
>4.00
|
%
|
|
>$285,679
|
|
>5.00
|
%
|
As of December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|||
Total Capital (to Risk Weighted Assets)
|
|
|
|
|
|
|
|
|
|
|
|
|||
Taylor Capital Group, Inc.
|
$685,998
|
|
16.27
|
%
|
|
>$337,408
|
|
>8.00
|
%
|
|
>$421,761
|
|
>10.00
|
%
|
Cole Taylor Bank
|
$548,513
|
|
13.05
|
%
|
|
>$336,172
|
|
>8.00
|
%
|
|
>$420,215
|
|
>10.00
|
%
|
Tier I Capital (to Risk Weighted Assets)
|
|
|
|
|
|
|
|
|
|
|
|
|||
Taylor Capital Group, Inc.
|
$599,504
|
|
14.21
|
%
|
|
>$168,704
|
|
>4.00
|
%
|
|
>$253,056
|
|
>6.00
|
%
|
Cole Taylor Bank
|
$495,575
|
|
11.79
|
%
|
|
>$168,086
|
|
>4.00
|
%
|
|
>$252,129
|
|
>6.00
|
%
|
Leverage (to average assets)
|
|
|
|
|
|
|
|
|
|
|
|
|||
Taylor Capital Group, Inc.
|
$599,504
|
|
11.14
|
%
|
|
>$215,267
|
|
>4.00
|
%
|
|
>$269,084
|
|
>5.00
|
%
|
Cole Taylor Bank
|
$495,575
|
|
9.24
|
%
|
|
>$214,436
|
|
>4.00
|
%
|
|
>$268,045
|
|
>5.00
|
%
|
|
Change in Future Net Interest Income
from Rates Unchanged Simulation
|
||||||||||||
|
June 30, 2013
|
|
December 31, 2012
|
||||||||||
|
(dollars in thousands)
|
||||||||||||
Change in interest rates
|
Dollar
Change
|
|
Percentage
Change
|
|
Dollar
Change
|
|
Percentage
Change
|
||||||
+200 basis points over one year
|
$
|
1,027
|
|
|
0.6
|
%
|
|
$
|
6,312
|
|
|
4.2
|
%
|
-200 basis points over one year
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
2013 Quarter Ended
|
|
2012 Quarter Ended
|
|
2011 Quarter Ended
|
||||||||||||||||||||||||||
|
Jun. 30
|
|
Mar. 31
|
|
Dec. 31
|
|
Sep. 30
|
|
Jun. 30
|
|
Mar. 31
|
|
Dec. 31
|
|
Sep. 30
|
||||||||||||||||
|
|
|
(in thousands, except per share data)
|
||||||||||||||||||||||||||||
Interest income
|
$
|
47,975
|
|
|
$
|
47,674
|
|
|
$
|
47,684
|
|
|
$
|
46,192
|
|
|
$
|
46,005
|
|
|
$
|
46,267
|
|
|
$
|
46,345
|
|
|
$
|
47,299
|
|
Interest expense
|
6,893
|
|
|
6,991
|
|
|
7,174
|
|
|
8,996
|
|
|
9,627
|
|
|
10,465
|
|
|
11,079
|
|
|
12,581
|
|
||||||||
Net interest income
|
41,082
|
|
|
40,683
|
|
|
40,510
|
|
|
37,196
|
|
|
36,378
|
|
|
35,802
|
|
|
35,266
|
|
|
34,718
|
|
||||||||
Provision for loan losses
|
700
|
|
|
300
|
|
|
1,200
|
|
|
900
|
|
|
100
|
|
|
7,350
|
|
|
10,955
|
|
|
16,240
|
|
||||||||
Noninterest income
|
46,101
|
|
|
39,719
|
|
|
51,962
|
|
|
47,250
|
|
|
31,889
|
|
|
23,946
|
|
|
16,538
|
|
|
19,432
|
|
||||||||
Noninterest expense
|
60,271
|
|
|
51,755
|
|
|
55,284
|
|
|
55,899
|
|
|
43,986
|
|
|
36,568
|
|
|
31,846
|
|
|
28,152
|
|
||||||||
Income before income taxes
|
26,212
|
|
|
28,347
|
|
|
35,988
|
|
|
27,647
|
|
|
24,181
|
|
|
15,830
|
|
|
9,003
|
|
|
9,758
|
|
||||||||
Income taxes (benefit)
|
10,595
|
|
|
11,090
|
|
|
14,530
|
|
|
10,898
|
|
|
9,956
|
|
|
6,361
|
|
|
(73,317
|
)
|
|
(42
|
)
|
||||||||
Net income
|
15,617
|
|
|
17,257
|
|
|
21,458
|
|
|
16,749
|
|
|
14,225
|
|
|
9,469
|
|
|
82,320
|
|
|
9,800
|
|
||||||||
Preferred dividends and discounts
|
(3,780
|
)
|
|
(3,661
|
)
|
|
(1,765
|
)
|
|
(1,757
|
)
|
|
(1,748
|
)
|
|
(1,742
|
)
|
|
(12,235
|
)
|
|
(2,477
|
)
|
||||||||
Net income available to common stockholders
|
$
|
11,837
|
|
|
$
|
13,596
|
|
|
$
|
19,693
|
|
|
$
|
14,992
|
|
|
$
|
12,477
|
|
|
$
|
7,727
|
|
|
$
|
70,085
|
|
|
$
|
7,323
|
|
Income per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Basic
|
$
|
0.39
|
|
|
$
|
0.45
|
|
|
$
|
0.66
|
|
|
$
|
0.50
|
|
|
$
|
0.42
|
|
|
$
|
0.26
|
|
|
$
|
3.20
|
|
|
$
|
0.35
|
|
Diluted
|
0.39
|
|
|
0.44
|
|
|
0.65
|
|
|
0.49
|
|
|
0.41
|
|
|
0.26
|
|
|
3.20
|
|
|
0.35
|
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
Item 4.
|
Controls and Procedures
|
Item 1.
|
Legal Proceedings
|
Item 1A.
|
Risk Factors
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
Period
|
|
Total Number of Shares Purchased
(1)
|
|
Average Price Paid per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
|
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
|
||||||
April 1, 2013 - April 30, 2013
|
|
3,937
|
|
|
$
|
13.59
|
|
|
—
|
|
|
$
|
—
|
|
May 1, 2013 - May 31, 2013
|
|
2,099
|
|
|
15.39
|
|
|
—
|
|
|
—
|
|
||
June 1, 2013 - June 30, 2013
|
|
1,211
|
|
|
16.66
|
|
|
—
|
|
|
—
|
|
||
Total
|
|
7,247
|
|
|
$
|
14.62
|
|
|
—
|
|
|
$
|
—
|
|
(1) The shares in this column represent the shares that were withheld by us to satisfy income tax withholding obligations in connection with the vesting of restricted stock awards.
|
Item 3.
|
Defaults Upon Senior Securities
|
Item 4.
|
Mine Safety Disclosures
|
Item 5.
|
Other Information
|
Item 6.
|
Exhibits
|
Exhibit
Number
|
|
Description of Exhibits
|
|
|
|
2.1
|
|
Agreement and Plan of Merger, dated July 14, 2013, between MB Financial, Inc. and Taylor Capital Group, Inc. (incorporated by reference to Exhibit 2.1 of the Company's Current Report on Form 8-K filed on July 18, 2013).
|
|
|
|
3.1
|
|
Form of Fourth Amended and Restated Certificate of Incorporation of Taylor Capital Group, Inc. (incorporated by reference to Exhibit 3.1 of the Company's Current Report on Form 8-K filed June 6, 2012).
|
|
|
|
3.2
|
|
Certificate of Designations of Perpetual Non-cumulative Preferred Stock, Series A, of Taylor Capital Group, Inc. dated November 19, 2012 (incorporated by reference to Exhibit 3.1 of the Company's Current Report on Form 8-K filed November 20, 2012).
|
|
|
|
3.3
|
|
Fourth Amended and Restated Bylaws of Taylor Capital Group, Inc., as amended (incorporated by reference to Exhibit 3.1 of the Company's Current Report on Form 8-K filed June 4, 2013).
|
|
|
|
31.1
|
|
Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) under the Security Exchange Act of 1934.*
|
|
|
|
31.2
|
|
Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) under the Security Exchange Act of 1934.*
|
|
|
|
32.1
|
|
Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
|
|
|
|
101
|
|
Interactive data files pursuant to Rule 405 of Regulation S-T: (i) Consolidated Balance Sheets at June 30, 2013 and December 31, 2012; (ii) Consolidated Statements of Income for the three and six months ended June 30, 2013 and June 30, 2012; (iii) Consolidated Statement of Comprehensive Income for the three and six months ended June 30, 2013 and June 30, 2012; (iv) Consolidated Statements of Changes in Stockholders’ Equity for the six months ended June 30, 2013 and June 30, 2012; (v) Consolidated Statements of Cash Flows for the six months ended June 30, 2013 and June 30, 2012; and (vi) Notes to Consolidated Financial Statements.*
|
*
|
As provided in Rule 406T of Regulation S-T, this information shall not be deemed “filed” for purposes of Section 11 and 12 of the Securities Act and Section 18 of the Exchange Act, or otherwise be subject to liability under those sections.
|
|
TAYLOR CAPITAL GROUP, INC.
|
Date: August 2, 2013
|
|
|
/s/ MARK A. HOPPE
|
|
Mark A. Hoppe
|
|
President and Chief Executive Officer
|
|
(Principal Executive Officer)
|
|
|
|
/s/ RANDALL T. CONTE
|
|
Randall T. Conte
|
|
Chief Financial Officer
|
|
(Principal Financial and Accounting Officer)
|
1 Year (MM) Chart |
1 Month (MM) Chart |
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