Delaware | 99-0148992 | |
(State of incorporation) | (I.R.S. Employer Identification No.) | |
130 Merchant Street, Honolulu, Hawaii | 96813 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer x | Accelerated filer o |
Non-accelerated filer o (Do not check if a smaller reporting company) | Smaller reporting company o |
Page | ||
Part I - Financial Information | ||
Item 1. | Financial Statements (Unaudited) | |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
(dollars in thousands, except per share amounts) | 2013 | 2012 | 2013 | 2012 | |||||||||||
Interest Income | |||||||||||||||
Interest and Fees on Loans and Leases | $ | 63,918 | $ | 64,668 | $ | 189,467 | $ | 193,269 | |||||||
Income on Investment Securities | |||||||||||||||
Available-for-Sale | 12,038 | 15,922 | 42,962 | 50,623 | |||||||||||
Held-to-Maturity | 24,137 | 23,232 | 63,180 | 74,699 | |||||||||||
Deposits | 3 | 3 | 7 | 6 | |||||||||||
Funds Sold | 177 | 105 | 310 | 353 | |||||||||||
Other | 301 | 283 | 870 | 844 | |||||||||||
Total Interest Income | 100,574 | 104,213 | 296,796 | 319,794 | |||||||||||
Interest Expense | |||||||||||||||
Deposits | 2,500 | 2,931 | 7,725 | 9,623 | |||||||||||
Securities Sold Under Agreements to Repurchase | 6,551 | 7,185 | 20,307 | 21,739 | |||||||||||
Funds Purchased | 4 | 7 | 36 | 17 | |||||||||||
Long-Term Debt | 632 | 458 | 1,941 | 1,454 | |||||||||||
Total Interest Expense | 9,687 | 10,581 | 30,009 | 32,833 | |||||||||||
Net Interest Income | 90,887 | 93,632 | 266,787 | 286,961 | |||||||||||
Provision for Credit Losses | — | — | — | 979 | |||||||||||
Net Interest Income After Provision for Credit Losses | 90,887 | 93,632 | 266,787 | 285,982 | |||||||||||
Noninterest Income | |||||||||||||||
Trust and Asset Management | 11,717 | 11,050 | 35,692 | 33,163 | |||||||||||
Mortgage Banking | 4,132 | 11,745 | 16,363 | 24,376 | |||||||||||
Service Charges on Deposit Accounts | 9,385 | 9,346 | 27,798 | 28,162 | |||||||||||
Fees, Exchange, and Other Service Charges | 12,732 | 11,907 | 37,799 | 36,632 | |||||||||||
Investment Securities Gains (Losses), Net | — | 13 | — | (77 | ) | ||||||||||
Insurance | 2,177 | 2,326 | 6,895 | 7,003 | |||||||||||
Bank-Owned Life Insurance | 1,365 | 2,028 | 3,997 | 5,248 | |||||||||||
Other | 3,618 | 3,959 | 12,401 | 12,797 | |||||||||||
Total Noninterest Income | 45,126 | 52,374 | 140,945 | 147,304 | |||||||||||
Noninterest Expense | |||||||||||||||
Salaries and Benefits | 46,552 | 47,231 | 140,568 | 138,292 | |||||||||||
Net Occupancy | 9,847 | 10,524 | 29,143 | 31,098 | |||||||||||
Net Equipment | 4,572 | 4,523 | 13,529 | 15,018 | |||||||||||
Data Processing | 3,697 | 3,397 | 10,013 | 10,144 | |||||||||||
Professional Fees | 2,119 | 2,494 | 6,736 | 7,012 | |||||||||||
FDIC Insurance | 1,913 | 1,822 | 5,811 | 5,981 | |||||||||||
Other | 14,277 | 14,887 | 42,745 | 43,287 | |||||||||||
Total Noninterest Expense | 82,977 | 84,878 | 248,545 | 250,832 | |||||||||||
Income Before Provision for Income Taxes | 53,036 | 61,128 | 159,187 | 182,454 | |||||||||||
Provision for Income Taxes | 15,332 | 19,896 | 47,740 | 56,665 | |||||||||||
Net Income | $ | 37,704 | $ | 41,232 | $ | 111,447 | $ | 125,789 | |||||||
Basic Earnings Per Share | $ | 0.85 | $ | 0.92 | $ | 2.51 | $ | 2.78 | |||||||
Diluted Earnings Per Share | $ | 0.85 | $ | 0.92 | $ | 2.50 | $ | 2.77 | |||||||
Dividends Declared Per Share | $ | 0.45 | $ | 0.45 | $ | 1.35 | $ | 1.35 | |||||||
Basic Weighted Average Shares | 44,267,356 | 44,913,348 | 44,433,967 | 45,280,541 | |||||||||||
Diluted Weighted Average Shares | 44,479,472 | 45,050,638 | 44,588,777 | 45,421,624 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(dollars in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Net Income | $ | 37,704 | $ | 41,232 | $ | 111,447 | $ | 125,789 | ||||||||
Other Comprehensive Income (Loss), Net of Tax: | ||||||||||||||||
Net Unrealized Gains (Losses) on Investment Securities | (6,986 | ) | 9,770 | (63,199 | ) | 6,703 | ||||||||||
Defined Benefit Plans | 202 | 152 | 481 | 458 | ||||||||||||
Total Other Comprehensive Income (Loss) | (6,784 | ) | 9,922 | (62,718 | ) | 7,161 | ||||||||||
Comprehensive Income | $ | 30,920 | $ | 51,154 | $ | 48,729 | $ | 132,950 |
(dollars in thousands) | September 30, 2013 | December 31, 2012 | |||||
Assets | |||||||
Interest-Bearing Deposits | $ | 3,048 | $ | 3,393 | |||
Funds Sold | 254,940 | 185,682 | |||||
Investment Securities | |||||||
Available-for-Sale | 2,277,136 | 3,367,557 | |||||
Held to Maturity (Fair Value of $4,621,491 and $3,687,676) | 4,633,399 | 3,595,065 | |||||
Loans Held for Sale | 18,795 | 21,374 | |||||
Loans and Leases | 6,006,642 | 5,854,521 | |||||
Allowance for Loan and Lease Losses | (123,680 | ) | (128,857 | ) | |||
Net Loans and Leases | 5,882,962 | 5,725,664 | |||||
Total Earning Assets | 13,070,280 | 12,898,735 | |||||
Cash and Noninterest-Bearing Deposits | 131,228 | 163,786 | |||||
Premises and Equipment | 105,181 | 105,005 | |||||
Accrued Interest Receivable | 46,047 | 43,077 | |||||
Foreclosed Real Estate | 3,036 | 3,887 | |||||
Mortgage Servicing Rights | 28,015 | 25,240 | |||||
Goodwill | 31,517 | 31,517 | |||||
Other Assets | 433,567 | 457,125 | |||||
Total Assets | $ | 13,848,871 | $ | 13,728,372 | |||
Liabilities | |||||||
Deposits | |||||||
Noninterest-Bearing Demand | $ | 3,524,638 | $ | 3,367,185 | |||
Interest-Bearing Demand | 2,320,452 | 2,163,473 | |||||
Savings | 4,503,963 | 4,399,316 | |||||
Time | 1,259,081 | 1,599,508 | |||||
Total Deposits | 11,608,134 | 11,529,482 | |||||
Funds Purchased | 9,983 | 11,296 | |||||
Securities Sold Under Agreements to Repurchase | 847,239 | 758,947 | |||||
Long-Term Debt | 174,717 | 128,055 | |||||
Retirement Benefits Payable | 47,338 | 47,658 | |||||
Accrued Interest Payable | 6,040 | 4,776 | |||||
Taxes Payable and Deferred Taxes | 40,364 | 88,014 | |||||
Other Liabilities | 122,370 | 138,479 | |||||
Total Liabilities | 12,856,185 | 12,706,707 | |||||
Shareholders’ Equity | |||||||
Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: September 30, 2013 - 57,487,855 / 44,539,247 and December 31, 2012 - 57,319,352 / 44,754,835) | 572 | 571 | |||||
Capital Surplus | 520,510 | 515,619 | |||||
Accumulated Other Comprehensive Income (Loss) | (33,510 | ) | 29,208 | ||||
Retained Earnings | 1,132,996 | 1,084,477 | |||||
Treasury Stock, at Cost (Shares: September 30, 2013 - 12,948,608 and December 31, 2012 - 12,564,517) | (627,882 | ) | (608,210 | ) | |||
Total Shareholders’ Equity | 992,686 | 1,021,665 | |||||
Total Liabilities and Shareholders’ Equity | $ | 13,848,871 | $ | 13,728,372 |
(dollars in thousands) | Common Shares Outstanding | Common Stock | Capital Surplus | Accum. Other Compre- hensive Income (Loss) | Retained Earnings | Treasury Stock | Total | |||||||||||||||||||
Balance as of December 31, 2012 | 44,754,835 | $ | 571 | $ | 515,619 | $ | 29,208 | $ | 1,084,477 | $ | (608,210 | ) | $ | 1,021,665 | ||||||||||||
Net Income | — | — | — | — | 111,447 | — | 111,447 | |||||||||||||||||||
Other Comprehensive Loss | — | — | — | (62,718 | ) | — | — | (62,718 | ) | |||||||||||||||||
Share-Based Compensation | — | — | 4,226 | — | — | — | 4,226 | |||||||||||||||||||
Common Stock Issued under Purchase and Equity Compensation Plans and Related Tax Benefits | 444,951 | 1 | 665 | — | (2,458 | ) | 13,521 | 11,729 | ||||||||||||||||||
Common Stock Repurchased | (660,539 | ) | — | — | — | — | (33,193 | ) | (33,193 | ) | ||||||||||||||||
Cash Dividends Paid ($1.35 per share) | — | — | — | — | (60,470 | ) | — | (60,470 | ) | |||||||||||||||||
Balance as of September 30, 2013 | 44,539,247 | $ | 572 | $ | 520,510 | $ | (33,510 | ) | $ | 1,132,996 | $ | (627,882 | ) | $ | 992,686 | |||||||||||
Balance as of December 31, 2011 | 45,947,116 | $ | 571 | $ | 507,558 | $ | 35,263 | $ | 1,003,938 | $ | (544,663 | ) | $ | 1,002,667 | ||||||||||||
Net Income | — | — | — | — | 125,789 | — | 125,789 | |||||||||||||||||||
Other Comprehensive Income | — | — | — | 7,161 | — | — | 7,161 | |||||||||||||||||||
Share-Based Compensation | — | — | 5,687 | — | — | — | 5,687 | |||||||||||||||||||
Common Stock Issued under Purchase and Equity Compensation Plans and Related Tax Benefits | 471,104 | — | 513 | — | (3,023 | ) | 13,472 | 10,962 | ||||||||||||||||||
Common Stock Repurchased | (1,413,407 | ) | — | — | — | — | (66,245 | ) | (66,245 | ) | ||||||||||||||||
Cash Dividends Paid ($1.35 per share) | — | — | — | — | (61,459 | ) | — | (61,459 | ) | |||||||||||||||||
Balance as of September 30, 2012 | 45,004,813 | $ | 571 | $ | 513,758 | $ | 42,424 | $ | 1,065,245 | $ | (597,436 | ) | $ | 1,024,562 |
Nine Months Ended | |||||||
September 30, | |||||||
(dollars in thousands) | 2013 | 2012 | |||||
Operating Activities | |||||||
Net Income | $ | 111,447 | $ | 125,789 | |||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||||||
Provision for Credit Losses | — | 979 | |||||
Depreciation and Amortization | 9,068 | 10,339 | |||||
Amortization of Deferred Loan and Lease Fees | (2,756 | ) | (2,493 | ) | |||
Amortization and Accretion of Premiums/Discounts on Investment Securities, Net | 45,609 | 42,633 | |||||
Share-Based Compensation | 4,226 | 5,687 | |||||
Benefit Plan Contributions | (949 | ) | (5,888 | ) | |||
Deferred Income Taxes | (8,762 | ) | (16,793 | ) | |||
Net Gains on Sales of Loans and Leases | (17,604 | ) | (11,645 | ) | |||
Net Losses on Investment Securities | — | 77 | |||||
Proceeds from Sales of Loans Held for Sale | 594,735 | 369,481 | |||||
Originations of Loans Held for Sale | (577,055 | ) | (367,965 | ) | |||
Tax Benefits from Share-Based Compensation | (592 | ) | (712 | ) | |||
Net Change in Other Assets and Other Liabilities | 11,700 | (24,094 | ) | ||||
Net Cash Provided by Operating Activities | 169,067 | 125,395 | |||||
Investing Activities | |||||||
Investment Securities Available-for-Sale: | |||||||
Proceeds from Prepayments and Maturities | 794,899 | 737,377 | |||||
Proceeds from Sales | — | 44,844 | |||||
Purchases | (403,373 | ) | (452,430 | ) | |||
Investment Securities Held-to-Maturity: | |||||||
Proceeds from Prepayments and Maturities | 804,440 | 689,246 | |||||
Purchases | (1,293,784 | ) | (540,472 | ) | |||
Net Change in Loans and Leases | (159,403 | ) | (253,521 | ) | |||
Premises and Equipment, Net | (9,244 | ) | (13,933 | ) | |||
Net Cash Provided by (Used in) Investing Activities | (266,465 | ) | 211,111 | ||||
Financing Activities | |||||||
Net Change in Deposits | 78,652 | 627,924 | |||||
Net Change in Short-Term Borrowings | 86,979 | (1,107,767 | ) | ||||
Proceeds from Long-Term Debt | 50,000 | — | |||||
Tax Benefits from Share-Based Compensation | 592 | 712 | |||||
Proceeds from Issuance of Common Stock | 11,193 | 10,356 | |||||
Repurchase of Common Stock | (33,193 | ) | (66,245 | ) | |||
Cash Dividends Paid | (60,470 | ) | (61,459 | ) | |||
Net Cash Provided by (Used in) Financing Activities | 133,753 | (596,479 | ) | ||||
Net Change in Cash and Cash Equivalents | 36,355 | (259,973 | ) | ||||
Cash and Cash Equivalents at Beginning of Period | 352,861 | 669,909 | |||||
Cash and Cash Equivalents at End of Period | $ | 389,216 | $ | 409,936 | |||
Supplemental Information | |||||||
Cash Paid for Interest | $ | 28,163 | $ | 31,483 | |||
Cash Paid for Income Taxes | 54,644 | 58,625 | |||||
Non-Cash Investing Activities: | |||||||
Transfer from Investment Securities Available-For-Sale to Investment Securities Held-To-Maturity | 579,888 | — | |||||
Transfer from Loans to Foreclosed Real Estate | 3,829 | 3,230 |
(dollars in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||
September 30, 2013 | |||||||||||||||
Available-for-Sale: | |||||||||||||||
Debt Securities Issued by the U.S. Treasury and Government Agencies | $ | 449,001 | $ | 7,011 | $ | (191 | ) | $ | 455,821 | ||||||
Debt Securities Issued by States and Political Subdivisions | 589,108 | 9,469 | (11,338 | ) | 587,239 | ||||||||||
Debt Securities Issued by Corporations | 280,305 | 1,347 | (6,396 | ) | 275,256 | ||||||||||
Mortgage-Backed Securities: | |||||||||||||||
Residential - Government Agencies | 702,921 | 15,571 | (1,018 | ) | 717,474 | ||||||||||
Residential - U.S. Government-Sponsored Enterprises | 23,829 | 1,434 | — | 25,263 | |||||||||||
Commercial - Government Agencies | 224,711 | — | (8,628 | ) | 216,083 | ||||||||||
Total Mortgage-Backed Securities | 951,461 | 17,005 | (9,646 | ) | 958,820 | ||||||||||
Total | $ | 2,269,875 | $ | 34,832 | $ | (27,571 | ) | $ | 2,277,136 | ||||||
Held-to-Maturity: | |||||||||||||||
Debt Securities Issued by the U.S. Treasury and Government Agencies | $ | 414,558 | $ | 4,082 | $ | (1,947 | ) | $ | 416,693 | ||||||
Debt Securities Issued by States and Political Subdivisions | 253,893 | 2,556 | (22 | ) | 256,427 | ||||||||||
Debt Securities Issued by Corporations | 194,094 | 177 | (3,731 | ) | 190,540 | ||||||||||
Mortgage-Backed Securities: | |||||||||||||||
Residential - Government Agencies | 3,422,851 | 41,365 | (53,289 | ) | 3,410,927 | ||||||||||
Residential - U.S. Government-Sponsored Enterprises | 23,375 | 1,450 | — | 24,825 | |||||||||||
Commercial - Government Agencies | 324,628 | 239 | (2,788 | ) | 322,079 | ||||||||||
Total Mortgage-Backed Securities | 3,770,854 | 43,054 | (56,077 | ) | 3,757,831 | ||||||||||
Total | $ | 4,633,399 | $ | 49,869 | $ | (61,777 | ) | $ | 4,621,491 | ||||||
December 31, 2012 | |||||||||||||||
Available-for-Sale: | |||||||||||||||
Debt Securities Issued by the U.S. Treasury and Government Agencies | $ | 855,070 | $ | 14,936 | $ | (17 | ) | $ | 869,989 | ||||||
Debt Securities Issued by States and Political Subdivisions | 753,207 | 30,159 | (955 | ) | 782,411 | ||||||||||
Debt Securities Issued by Corporations | 82,450 | 1,984 | — | 84,434 | |||||||||||
Mortgage-Backed Securities: | |||||||||||||||
Residential - Government Agencies | 1,041,669 | 27,283 | (292 | ) | 1,068,660 | ||||||||||
Residential - U.S. Government-Sponsored Enterprises | 35,234 | 2,064 | — | 37,298 | |||||||||||
Commercial - Government Agencies | 524,055 | 1,907 | (1,197 | ) | 524,765 | ||||||||||
Total Mortgage-Backed Securities | 1,600,958 | 31,254 | (1,489 | ) | 1,630,723 | ||||||||||
Total | $ | 3,291,685 | $ | 78,333 | $ | (2,461 | ) | $ | 3,367,557 | ||||||
Held-to-Maturity: | |||||||||||||||
Debt Securities Issued by the U.S. Treasury and Government Agencies | $ | 190,168 | $ | 5,198 | $ | — | $ | 195,366 | |||||||
Debt Securities Issued by Corporations | 24,000 | 4 | — | 24,004 | |||||||||||
Mortgage-Backed Securities: | |||||||||||||||
Residential - Government Agencies | 3,349,403 | 86,673 | (1,366 | ) | 3,434,710 | ||||||||||
Residential - U.S. Government-Sponsored Enterprises | 31,494 | 2,102 | — | 33,596 | |||||||||||
Total Mortgage-Backed Securities | 3,380,897 | 88,775 | (1,366 | ) | 3,468,306 | ||||||||||
Total | $ | 3,595,065 | $ | 93,977 | $ | (1,366 | ) | $ | 3,687,676 |
(dollars in thousands) | Amortized Cost | Fair Value | |||||
Available-for-Sale: | |||||||
Due in One Year or Less | $ | 74,862 | $ | 75,212 | |||
Due After One Year Through Five Years | 254,924 | 259,762 | |||||
Due After Five Years Through Ten Years | 644,469 | 635,390 | |||||
Due After Ten Years | 344,159 | 347,952 | |||||
1,318,414 | 1,318,316 | ||||||
Mortgage-Backed Securities: | |||||||
Residential - Government Agencies | 702,921 | 717,474 | |||||
Residential - U.S. Government-Sponsored Enterprises | 23,829 | 25,263 | |||||
Commercial - Government Agencies | 224,711 | 216,083 | |||||
Total Mortgage-Backed Securities | 951,461 | 958,820 | |||||
Total | $ | 2,269,875 | $ | 2,277,136 | |||
Held-to-Maturity: | |||||||
Due in One Year or Less | $ | 80,251 | $ | 80,591 | |||
Due After One Year Through Five Years | 334,307 | 336,102 | |||||
Due After Five Years Through Ten Years | 99,806 | 100,778 | |||||
Due After Ten Years | 348,181 | 346,189 | |||||
862,545 | 863,660 | ||||||
Mortgage-Backed Securities: | |||||||
Residential - Government Agencies | 3,422,851 | 3,410,927 | |||||
Residential - U.S. Government-Sponsored Enterprises | 23,375 | 24,825 | |||||
Commercial - Government Agencies | 324,628 | 322,079 | |||||
Total Mortgage-Backed Securities | 3,770,854 | 3,757,831 | |||||
Total | $ | 4,633,399 | $ | 4,621,491 |
Less Than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||
(dollars in thousands) | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | |||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||
Available-for-Sale: | |||||||||||||||||||||||
Debt Securities Issued by the U.S. Treasury and Government Agencies | $ | 18,693 | $ | (181 | ) | $ | 2,149 | $ | (10 | ) | $ | 20,842 | $ | (191 | ) | ||||||||
Debt Securities Issued by States and Political Subdivisions | 340,491 | (11,337 | ) | 114 | (1 | ) | 340,605 | (11,338 | ) | ||||||||||||||
Debt Securities Issued by Corporations | 201,817 | (6,396 | ) | — | — | 201,817 | (6,396 | ) | |||||||||||||||
Mortgage-Backed Securities: | |||||||||||||||||||||||
Residential - Government Agencies | 54,834 | (382 | ) | 9,417 | (636 | ) | 64,251 | (1,018 | ) | ||||||||||||||
Commercial - Government Agencies | 216,083 | (8,628 | ) | — | — | 216,083 | (8,628 | ) | |||||||||||||||
Total Mortgage-Backed Securities | 270,917 | (9,010 | ) | 9,417 | (636 | ) | 280,334 | (9,646 | ) | ||||||||||||||
Total | $ | 831,918 | $ | (26,924 | ) | $ | 11,680 | $ | (647 | ) | $ | 843,598 | $ | (27,571 | ) | ||||||||
Held-to-Maturity: | |||||||||||||||||||||||
Debt Securities Issued by the U.S. Treasury and Government Agencies | $ | 183,850 | $ | (1,947 | ) | $ | — | $ | — | $ | 183,850 | $ | (1,947 | ) | |||||||||
Debt Securities Issued by States and Political Subdivisions | 8,105 | (22 | ) | — | — | 8,105 | (22 | ) | |||||||||||||||
Debt Securities Issued by Corporations | 151,775 | (3,731 | ) | — | — | 151,775 | (3,731 | ) | |||||||||||||||
Mortgage-Backed Securities: | |||||||||||||||||||||||
Residential - Government Agencies | 1,577,637 | (53,289 | ) | — | — | 1,577,637 | (53,289 | ) | |||||||||||||||
Commercial - Government Agencies | 239,960 | (2,498 | ) | 19,891 | (290 | ) | 259,851 | (2,788 | ) | ||||||||||||||
Total Mortgage-Backed Securities | 1,817,597 | (55,787 | ) | 19,891 | (290 | ) | 1,837,488 | (56,077 | ) | ||||||||||||||
Total | $ | 2,161,327 | $ | (61,487 | ) | $ | 19,891 | $ | (290 | ) | $ | 2,181,218 | $ | (61,777 | ) | ||||||||
December 31, 2012 | |||||||||||||||||||||||
Available-for-Sale: | |||||||||||||||||||||||
Debt Securities Issued by the U.S. Treasury and Government Agencies | $ | 2,295 | $ | (14 | ) | $ | 564 | $ | (3 | ) | $ | 2,859 | $ | (17 | ) | ||||||||
Debt Securities Issued by States and Political Subdivisions | 72,400 | (955 | ) | — | — | 72,400 | (955 | ) | |||||||||||||||
Mortgage-Backed Securities: | |||||||||||||||||||||||
Residential - Government Agencies | 7,325 | (57 | ) | 22,389 | (235 | ) | 29,714 | (292 | ) | ||||||||||||||
Commercial - Government Agencies | 261,883 | (1,197 | ) | — | — | 261,883 | (1,197 | ) | |||||||||||||||
Total Mortgage-Backed Securities | 269,208 | (1,254 | ) | 22,389 | (235 | ) | 291,597 | (1,489 | ) | ||||||||||||||
Total | $ | 343,903 | $ | (2,223 | ) | $ | 22,953 | $ | (238 | ) | $ | 366,856 | $ | (2,461 | ) | ||||||||
Held-to-Maturity: | |||||||||||||||||||||||
Mortgage-Backed Securities: | |||||||||||||||||||||||
Residential - Government Agencies | $ | 351,762 | $ | (1,366 | ) | $ | — | $ | — | $ | 351,762 | $ | (1,366 | ) | |||||||||
Total | $ | 351,762 | $ | (1,366 | ) | $ | — | $ | — | $ | 351,762 | $ | (1,366 | ) |
(dollars in thousands) | September 30, 2013 | December 31, 2012 | |||||
Federal Home Loan Bank Stock | $ | 58,564 | $ | 60,200 | |||
Federal Reserve Bank Stock | 19,055 | 18,952 | |||||
Total | $ | 77,619 | $ | 79,152 |
(dollars in thousands) | September 30, 2013 | December 31, 2012 | |||||
Commercial | |||||||
Commercial and Industrial | $ | 895,040 | $ | 829,512 | |||
Commercial Mortgage | 1,203,670 | 1,097,425 | |||||
Construction | 124,230 | 113,987 | |||||
Lease Financing | 255,550 | 274,969 | |||||
Total Commercial | 2,478,490 | 2,315,893 | |||||
Consumer | |||||||
Residential Mortgage | 2,282,305 | 2,349,916 | |||||
Home Equity | 765,841 | 770,376 | |||||
Automobile | 246,704 | 209,832 | |||||
Other 1 | 233,302 | 208,504 | |||||
Total Consumer | 3,528,152 | 3,538,628 | |||||
Total Loans and Leases | $ | 6,006,642 | $ | 5,854,521 |
1 | Comprised of other revolving credit, installment, and lease financing. |
(dollars in thousands) | Commercial | Consumer | Total | ||||||||
Three Months Ended September 30, 2013 | |||||||||||
Allowance for Loan and Lease Losses: | |||||||||||
Balance at Beginning of Period | $ | 70,197 | $ | 54,378 | $ | 124,575 | |||||
Loans and Leases Charged-Off | (623 | ) | (4,051 | ) | (4,674 | ) | |||||
Recoveries on Loans and Leases Previously Charged-Off | 1,039 | 2,740 | 3,779 | ||||||||
Net Loans and Leases Charged-Off | 416 | (1,311 | ) | (895 | ) | ||||||
Provision for Credit Losses | 4,393 | (4,393 | ) | — | |||||||
Balance at End of Period | $ | 75,006 | $ | 48,674 | $ | 123,680 | |||||
Nine Months Ended September 30, 2013 | |||||||||||
Allowance for Loan and Lease Losses: | |||||||||||
Balance at Beginning of Period | $ | 72,704 | $ | 56,153 | $ | 128,857 | |||||
Loans and Leases Charged-Off | (1,271 | ) | (13,406 | ) | (14,677 | ) | |||||
Recoveries on Loans and Leases Previously Charged-Off | 2,306 | 7,194 | 9,500 | ||||||||
Net Loans and Leases Charged-Off | 1,035 | (6,212 | ) | (5,177 | ) | ||||||
Provision for Credit Losses | 1,267 | (1,267 | ) | — | |||||||
Balance at End of Period | $ | 75,006 | $ | 48,674 | $ | 123,680 | |||||
As of September 30, 2013 | |||||||||||
Allowance for Loan and Lease Losses: | |||||||||||
Individually Evaluated for Impairment | $ | 8,029 | $ | 3,472 | $ | 11,501 | |||||
Collectively Evaluated for Impairment | 66,977 | 45,202 | 112,179 | ||||||||
Total | $ | 75,006 | $ | 48,674 | $ | 123,680 | |||||
Recorded Investment in Loans and Leases: | |||||||||||
Individually Evaluated for Impairment | $ | 35,149 | $ | 36,557 | $ | 71,706 | |||||
Collectively Evaluated for Impairment | 2,443,341 | 3,491,595 | 5,934,936 | ||||||||
Total | $ | 2,478,490 | $ | 3,528,152 | $ | 6,006,642 | |||||
Three Months Ended September 30, 2012 | |||||||||||
Allowance for Loan and Lease Losses: | |||||||||||
Balance at Beginning of Period | $ | 78,012 | $ | 54,431 | $ | 132,443 | |||||
Loans and Leases Charged-Off | (519 | ) | (4,515 | ) | (5,034 | ) | |||||
Recoveries on Loans and Leases Previously Charged-Off | 678 | 2,884 | 3,562 | ||||||||
Net Loans and Leases Charged-Off | 159 | (1,631 | ) | (1,472 | ) | ||||||
Provision for Credit Losses | 1,647 | (1,647 | ) | — | |||||||
Balance at End of Period | $ | 79,818 | $ | 51,153 | $ | 130,971 | |||||
Nine Months Ended September 30, 2012 | |||||||||||
Allowance for Loan and Lease Losses: | |||||||||||
Balance at Beginning of Period | $ | 80,562 | $ | 58,044 | $ | 138,606 | |||||
Loans and Leases Charged-Off | (3,358 | ) | (15,371 | ) | (18,729 | ) | |||||
Recoveries on Loans and Leases Previously Charged-Off | 3,252 | 6,863 | 10,115 | ||||||||
Net Loans and Leases Charged-Off | (106 | ) | (8,508 | ) | (8,614 | ) | |||||
Provision for Credit Losses | (638 | ) | 1,617 | 979 | |||||||
Balance at End of Period | $ | 79,818 | $ | 51,153 | $ | 130,971 | |||||
As of September 30, 2012 | |||||||||||
Allowance for Loan and Lease Losses: | |||||||||||
Individually Evaluated for Impairment | $ | 39 | $ | 3,244 | $ | 3,283 | |||||
Collectively Evaluated for Impairment | 79,779 | 47,909 | 127,688 | ||||||||
Total | $ | 79,818 | $ | 51,153 | $ | 130,971 | |||||
Recorded Investment in Loans and Leases: | |||||||||||
Individually Evaluated for Impairment | $ | 13,119 | $ | 34,889 | $ | 48,008 | |||||
Collectively Evaluated for Impairment | 2,214,204 | 3,520,092 | 5,734,296 | ||||||||
Total | $ | 2,227,323 | $ | 3,554,981 | $ | 5,782,304 |
Pass: | Loans and leases in all classes within the commercial and consumer portfolio segments that are not adversely rated. Management believes that there is a low likelihood of loss related to those loans and leases that are considered pass. |
Special Mention: | Loans and leases in the classes within the commercial portfolio segment that have potential weaknesses that deserve management’s close attention. If not addressed, these potential weaknesses may result in deterioration of the repayment prospects for the loan or lease. The special mention credit quality indicator is not used for classes of loans and leases that are included in the consumer portfolio segment. Management believes that there is a moderate likelihood of some loss related to those loans and leases that are considered special mention. |
Classified: | Loans and leases in the classes within the commercial portfolio segment that are inadequately protected by the sound worth and paying capacity of the borrower or of the collateral pledged, if any. Classified loans and leases are also those in the classes within the consumer portfolio segment that are past due 90 days or more as to principal or interest. Residential mortgage loans that are past due 90 days or more as to principal or interest may be considered pass if the Company is in the process of collection and the current loan-to-value ratio is 60% or less. Home equity loans that are past due 90 days or more as to principal or interest may be considered pass if the Company is in the process of collection, the first mortgage is with the Company, and the current combined loan-to-value ratio is 60% or less. Residential mortgage and home equity loans may be current as to principal and interest, but may be considered classified for a period of up to six months following a loan modification. Following a period of demonstrated performance in accordance with the modified contractual terms, the loan may be removed from classified status. Management believes that there is a distinct possibility that the Company will sustain some loss if the deficiencies related to classified loans and leases are not corrected in a timely manner. |
September 30, 2013 | |||||||||||||||||||
(dollars in thousands) | Commercial and Industrial | Commercial Mortgage | Construction | Lease Financing | Total Commercial | ||||||||||||||
Pass | $ | 843,056 | $ | 1,139,051 | $ | 121,226 | $ | 254,766 | $ | 2,358,099 | |||||||||
Special Mention | 5,076 | 19,355 | — | 34 | 24,465 | ||||||||||||||
Classified | 46,908 | 45,264 | 3,004 | 750 | 95,926 | ||||||||||||||
Total | $ | 895,040 | $ | 1,203,670 | $ | 124,230 | $ | 255,550 | $ | 2,478,490 | |||||||||
(dollars in thousands) | Residential Mortgage | Home Equity | Automobile | Other 1 | Total Consumer | ||||||||||||||
Pass | $ | 2,258,983 | $ | 761,179 | $ | 246,511 | $ | 232,470 | $ | 3,499,143 | |||||||||
Classified | 23,322 | 4,662 | 193 | 832 | 29,009 | ||||||||||||||
Total | $ | 2,282,305 | $ | 765,841 | $ | 246,704 | $ | 233,302 | $ | 3,528,152 | |||||||||
Total Recorded Investment in Loans and Leases | $ | 6,006,642 |
December 31, 2012 | |||||||||||||||||||
(dollars in thousands) | Commercial and Industrial | Commercial Mortgage | Construction | Lease Financing | Total Commercial | ||||||||||||||
Pass | $ | 779,654 | $ | 1,018,128 | $ | 96,058 | $ | 247,401 | $ | 2,141,241 | |||||||||
Special Mention | 22,759 | 23,848 | 15,839 | 26,540 | 88,986 | ||||||||||||||
Classified | 27,099 | 55,449 | 2,090 | 1,028 | 85,666 | ||||||||||||||
Total | $ | 829,512 | $ | 1,097,425 | $ | 113,987 | $ | 274,969 | $ | 2,315,893 | |||||||||
(dollars in thousands) | Residential Mortgage | Home Equity | Automobile | Other 1 | Total Consumer | ||||||||||||||
Pass | $ | 2,326,216 | $ | 766,912 | $ | 209,646 | $ | 207,917 | $ | 3,510,691 | |||||||||
Classified | 23,700 | 3,464 | 186 | 587 | 27,937 | ||||||||||||||
Total | $ | 2,349,916 | $ | 770,376 | $ | 209,832 | $ | 208,504 | $ | 3,538,628 | |||||||||
Total Recorded Investment in Loans and Leases | $ | 5,854,521 |
1 | Comprised of other revolving credit, installment, and lease financing. |
(dollars in thousands) | 30 - 59 Days Past Due | 60 - 89 Days Past Due | Past Due 90 Days or More | Non- Accrual | Total Past Due and Non-Accrual | Current | Total Loans and Leases | Non-Accrual Loans and Leases that are Current 2 | |||||||||||||||||||||||
As of September 30, 2013 | |||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||
Commercial and Industrial | $ | 779 | $ | 11,111 | $ | 8 | $ | 5,295 | $ | 17,193 | $ | 877,847 | $ | 895,040 | $ | 3,696 | |||||||||||||||
Commercial Mortgage | 573 | — | — | 2,355 | 2,928 | 1,200,742 | 1,203,670 | 783 | |||||||||||||||||||||||
Construction | — | — | — | — | — |