x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Large accelerated
filer
o
|
Accelerated filer
x
|
Non-accelerated filer
o
(Do not check if a smaller reporting company)
|
Smaller reporting company
o
|
|
Table of Contents
|
|
|
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
|
June 30,
2011 |
December 31,
2010 |
||||
(Dollars in thousands)
|
||||||
Assets
|
|
|
||||
Cash and cash equivalents:
|
|
|
||||
Cash and due from banks
|
$
|
29,771
|
|
$
|
28,324
|
|
Interest-bearing deposits in other banks
|
7,878
|
|
46,320
|
|
||
Total cash and cash equivalents
|
37,649
|
|
74,644
|
|
||
|
|
|
||||
Available-for-sale investment securities, at fair value (amortized cost of $638,667 at June 30, 2011 and $617,122 at December 31, 2010)
|
643,598
|
|
613,986
|
|
||
Held-to-maturity investment securities, at amortized cost (fair value of $2,955 at June 30, 2011 and $2,954 at December 31, 2010)
|
2,966
|
|
2,965
|
|
||
Other investment securities, at cost
|
24,356
|
|
24,356
|
|
||
Total investment securities
|
670,920
|
|
641,307
|
|
||
Loans, net of deferred fees and costs
|
940,119
|
|
960,718
|
|
||
Allowance for loan losses
|
(25,166
|
)
|
(26,766
|
)
|
||
Net loans
|
914,953
|
|
933,952
|
|
||
Loans held for sale
|
1,508
|
|
4,755
|
|
||
Bank premises and equipment, net
|
24,466
|
|
24,934
|
|
||
Bank owned life insurance
|
53,711
|
|
53,532
|
|
||
Goodwill
|
62,520
|
|
62,520
|
|
||
Other intangible assets
|
2,082
|
|
2,350
|
|
||
Other assets
|
34,894
|
|
39,991
|
|
||
Total assets
|
$
|
1,802,703
|
|
$
|
1,837,985
|
|
Liabilities
|
|
|
||||
Deposits:
|
|
|
||||
Non-interest-bearing
|
$
|
222,075
|
|
$
|
215,069
|
|
Interest-bearing
|
1,136,751
|
|
1,146,531
|
|
||
Total deposits
|
1,358,826
|
|
1,361,600
|
|
||
Short-term borrowings
|
39,254
|
|
51,509
|
|
||
Long-term borrowings
|
151,703
|
|
157,703
|
|
||
Junior subordinated notes held by subsidiary trust
|
22,583
|
|
22,565
|
|
||
Accrued expenses and other liabilities
|
11,810
|
|
13,927
|
|
||
Total liabilities
|
1,584,176
|
|
1,607,304
|
|
||
Stockholders’ Equity
|
|
|
||||
Preferred stock, no par value, 50,000 shares authorized, 18,000 shares issued at June 30, 2011, and 39,000 issued at December 31, 2010
|
17,862
|
|
38,645
|
|
||
Common stock, no par value, 24,000,000 shares authorized, 11,086,968 shares issued at June 30, 2011 and 11,070,022 shares issued at December 31, 2010, including shares in treasury
|
166,555
|
|
166,298
|
|
||
Retained earnings
|
48,518
|
|
45,547
|
|
||
Accumulated other comprehensive income (loss), net of deferred income taxes
|
841
|
|
(4,453
|
)
|
||
Treasury stock, at cost, 608,819 shares at June 30, 2010 and 612,695 shares at December 31, 2010
|
(15,249
|
)
|
(15,356
|
)
|
||
Total stockholders’ equity
|
218,527
|
|
230,681
|
|
||
Total liabilities and stockholders’ equity
|
$
|
1,802,703
|
|
$
|
1,837,985
|
|
|
For the Three Months
|
|
For the Six Months
|
||||||||||
|
Ended June 30,
|
|
Ended June 30,
|
||||||||||
(Dollars in thousands, except per share data)
|
2011
|
2010
|
|
2011
|
2010
|
||||||||
Interest Income:
|
|
|
|
|
|
||||||||
Interest and fees on loans
|
$
|
12,389
|
|
$
|
14,604
|
|
|
$
|
25,067
|
|
$
|
29,431
|
|
Interest and dividends on taxable investment securities
|
6,163
|
|
7,720
|
|
|
12,366
|
|
15,704
|
|
||||
Interest on tax-exempt investment securities
|
384
|
|
618
|
|
|
809
|
|
1,260
|
|
||||
Other interest income
|
5
|
|
21
|
|
|
16
|
|
25
|
|
||||
Total interest income
|
18,941
|
|
22,963
|
|
|
38,258
|
|
46,420
|
|
||||
Interest Expense:
|
|
|
|
|
|
||||||||
Interest on deposits
|
3,674
|
|
4,953
|
|
|
7,659
|
|
10,097
|
|
||||
Interest on short-term borrowings
|
26
|
|
66
|
|
|
61
|
|
147
|
|
||||
Interest on long-term borrowings
|
1,317
|
|
2,279
|
|
|
2,627
|
|
4,572
|
|
||||
Interest on junior subordinated notes held by subsidiary trust
|
493
|
|
492
|
|
|
985
|
|
990
|
|
||||
Total interest expense
|
5,510
|
|
7,790
|
|
|
11,332
|
|
15,806
|
|
||||
Net interest income
|
13,431
|
|
15,173
|
|
|
26,926
|
|
30,614
|
|
||||
Provision for loan losses
|
(2,295
|
)
|
(5,458
|
)
|
|
(7,606
|
)
|
(11,959
|
)
|
||||
Net interest income after provision for loan losses
|
11,136
|
|
9,715
|
|
|
19,320
|
|
18,655
|
|
||||
Gross impairment losses on investment securities
|
—
|
|
(800
|
)
|
|
—
|
|
(1,620
|
)
|
||||
Less: Non-credit losses included in other comprehensive income
|
—
|
|
—
|
|
|
—
|
|
166
|
|
||||
Net impairment losses on investment securities
|
—
|
|
(800
|
)
|
|
—
|
|
(1,786
|
)
|
||||
Other Income:
|
|
|
|
|
|
||||||||
Deposit account service charges
|
2,454
|
|
2,457
|
|
|
4,628
|
|
4,755
|
|
||||
Insurance income
|
2,165
|
|
2,261
|
|
|
4,997
|
|
4,672
|
|
||||
Trust and investment income
|
1,409
|
|
1,209
|
|
|
2,734
|
|
2,765
|
|
||||
Electronic banking income
|
1,284
|
|
1,175
|
|
|
2,505
|
|
2,263
|
|
||||
Mortgage banking income
|
286
|
|
267
|
|
|
660
|
|
502
|
|
||||
Bank owned life insurance
|
92
|
|
173
|
|
|
179
|
|
358
|
|
||||
Net gain on investment securities
|
56
|
|
3,018
|
|
|
416
|
|
3,034
|
|
||||
Net loss on asset disposals and other transactions
|
(556
|
)
|
(1,348
|
)
|
|
(496
|
)
|
(1,331
|
)
|
||||
Other non-interest income
|
201
|
|
230
|
|
|
562
|
|
471
|
|
||||
Total other income
|
7,391
|
|
9,442
|
|
|
16,185
|
|
17,489
|
|
||||
Other Expenses:
|
|
|
|
|
|
||||||||
Salaries and employee benefit costs
|
7,953
|
|
7,496
|
|
|
15,580
|
|
14,873
|
|
||||
Net occupancy and equipment
|
1,472
|
|
1,440
|
|
|
2,973
|
|
2,958
|
|
||||
Professional fees
|
1,013
|
|
601
|
|
|
1,808
|
|
1,293
|
|
||||
FDIC insurance
|
450
|
|
612
|
|
|
1,112
|
|
1,229
|
|
||||
Electronic banking expense
|
685
|
|
557
|
|
|
1,303
|
|
1,162
|
|
||||
Data processing and software
|
453
|
|
527
|
|
|
916
|
|
1,097
|
|
||||
Foreclosed real estate and other loan expenses
|
224
|
|
472
|
|
|
574
|
|
1,118
|
|
||||
Franchise tax
|
358
|
|
374
|
|
|
759
|
|
747
|
|
||||
Amortization of other intangible assets
|
152
|
|
235
|
|
|
314
|
|
480
|
|
||||
Other non-interest expense
|
1,959
|
|
1,995
|
|
|
3,998
|
|
3,927
|
|
||||
Total other expenses
|
14,719
|
|
14,309
|
|
|
29,337
|
|
28,884
|
|
||||
Income before income taxes
|
3,808
|
|
4,048
|
|
|
6,168
|
|
5,474
|
|
||||
Income tax expense
|
(887
|
)
|
(763
|
)
|
|
(1,378
|
)
|
(874
|
)
|
||||
Net income
|
$
|
2,921
|
|
$
|
3,285
|
|
|
$
|
4,790
|
|
$
|
4,600
|
|
Preferred dividends
|
(238
|
)
|
(512
|
)
|
|
(761
|
)
|
(1,025
|
)
|
||||
Net income available to common shareholders
|
$
|
2,683
|
|
$
|
2,773
|
|
|
$
|
4,029
|
|
$
|
3,575
|
|
Earnings per common share - basic
|
$
|
0.26
|
|
$
|
0.27
|
|
|
$
|
0.38
|
|
$
|
0.34
|
|
Earnings per common share - diluted
|
$
|
0.26
|
|
$
|
0.27
|
|
|
$
|
0.38
|
|
$
|
0.34
|
|
Weighted-average number of common shares outstanding - basic
|
10,478,362
|
|
10,422,126
|
|
|
10,475,109
|
|
10,406,919
|
|
||||
Weighted-average number of common shares outstanding - diluted
|
10,507,895
|
|
10,429,369
|
|
|
10,492,712
|
|
10,415,999
|
|
||||
Cash dividends declared on common shares
|
$
|
—
|
|
$
|
1,054
|
|
|
$
|
1,058
|
|
$
|
2,105
|
|
Cash dividends declared per common share
|
$
|
—
|
|
$
|
0.10
|
|
|
$
|
0.10
|
|
$
|
0.20
|
|
|
|
|
|
Accumulated
|
|
|
||||||||||||
|
|
|
|
Other
|
|
Total
|
||||||||||||
|
Preferred
|
Common
|
Retained
|
Comprehensive
|
Treasury
|
Stockholders'
|
||||||||||||
(Dollars in thousands)
|
Stock
|
Stock
|
Earnings
|
Income (Loss)
|
Stock
|
Equity
|
||||||||||||
Balance, December 31, 2010
|
$
|
38,645
|
|
$
|
166,298
|
|
$
|
45,547
|
|
$
|
(4,453
|
)
|
$
|
(15,356
|
)
|
$
|
230,681
|
|
Net income
|
|
|
4,790
|
|
|
|
4,790
|
|
||||||||||
Other comprehensive income, net of tax
|
|
|
|
5,294
|
|
|
5,294
|
|
||||||||||
Preferred stock dividends
|
|
|
(544
|
)
|
|
|
(544
|
)
|
||||||||||
Amortization of discount on preferred stock
|
217
|
|
|
(217
|
)
|
|
|
—
|
|
|||||||||
Common stock cash dividends declared
|
|
|
(1,058
|
)
|
|
|
(1,058
|
)
|
||||||||||
Reissuance of treasury stock for deferred compensation plan
|
|
|
|
|
176
|
|
176
|
|
||||||||||
Purchase of treasury stock
|
|
|
|
|
(69
|
)
|
(69
|
)
|
||||||||||
Common shares issued under dividend reinvestment plan
|
|
161
|
|
|
|
|
161
|
|
||||||||||
Stock-based compensation expense
|
|
96
|
|
|
|
|
96
|
|
||||||||||
Repurchase of preferred stock
|
(21,000
|
)
|
|
|
|
|
(21,000
|
)
|
||||||||||
Balance, June 30, 2011
|
$
|
17,862
|
|
$
|
166,555
|
|
$
|
48,518
|
|
$
|
841
|
|
$
|
(15,249
|
)
|
$
|
218,527
|
|
|
Six Months Ended
|
|||||
|
June 30,
|
|||||
(Dollars in thousands)
|
2011
|
2010
|
||||
Net cash provided by operating activities
|
$
|
23,343
|
|
$
|
23,351
|
|
Investing activities:
|
|
|
||||
Available-for-sale securities:
|
|
|
||||
Purchases
|
(119,777
|
)
|
(135,204
|
)
|
||
Proceeds from sales
|
30,759
|
|
51,237
|
|
||
Proceeds from maturities, calls and prepayments
|
61,577
|
|
101,640
|
|
||
Purchase of held-to-maturity securities
|
—
|
|
(2,000
|
)
|
||
Net decrease in loans
|
11,881
|
|
20,164
|
|
||
Net expenditures for premises and equipment
|
(656
|
)
|
(685
|
)
|
||
Proceeds from sales of other real estate owned
|
880
|
|
310
|
|
||
Investment in limited partnership and tax credit funds
|
(234
|
)
|
(249
|
)
|
||
Net cash (used in) provided by investing activities
|
(15,570
|
)
|
35,213
|
|
||
Financing activities:
|
|
|
||||
Net increase in non-interest-bearing deposits
|
7,006
|
|
5,559
|
|
||
Net decrease in interest-bearing deposits
|
(9,826
|
)
|
(2,718
|
)
|
||
Net decrease in short-term borrowings
|
(12,255
|
)
|
(27,156
|
)
|
||
Proceeds from long-term borrowings
|
—
|
|
5,000
|
|
||
Payments on long-term borrowings
|
(5,999
|
)
|
(11,131
|
)
|
||
Repurchase of preferred shares
|
(21,000
|
)
|
—
|
|
||
Preferred stock dividends
|
(675
|
)
|
(975
|
)
|
||
Cash dividends paid on common shares
|
(2,034
|
)
|
(1,894
|
)
|
||
Purchase of treasury stock
|
(69
|
)
|
(91
|
)
|
||
Proceeds from issuance of common shares
|
84
|
|
444
|
|
||
Excess tax expense for stock-based compensation
|
—
|
|
(7
|
)
|
||
Net cash used in financing activities
|
(44,768
|
)
|
(32,969
|
)
|
||
Net (decrease) increase in cash and cash equivalents
|
(36,995
|
)
|
25,595
|
|
||
Cash and cash equivalents at beginning of period
|
74,644
|
|
41,773
|
|
||
Cash and cash equivalents at end of period
|
$
|
37,649
|
|
$
|
67,368
|
|
|
|
Fair Value Measurements at Reporting Date Using
|
||||||||||
(Dollars in thousands)
|
|
Quoted Prices in Active Markets for Identical Assets
|
Significant
Other
Observable
Inputs
|
Significant Unobservable Inputs
|
||||||||
Fair Value
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
|||||||||
June 30, 2011
|
|
|
|
|
||||||||
Obligations of:
|
|
|
|
|
||||||||
U.S. Treasury and government agencies
|
$
|
36
|
|
$
|
—
|
|
$
|
36
|
|
$
|
—
|
|
U.S. government sponsored agencies
|
12,321
|
|
—
|
|
12,321
|
|
—
|
|
||||
States and political subdivisions
|
38,091
|
|
—
|
|
38,091
|
|
—
|
|
||||
Residential mortgage-backed securities
|
540,931
|
|
—
|
|
540,931
|
|
—
|
|
||||
Commercial mortgage-backed securities
|
35,288
|
|
—
|
|
35,288
|
|
—
|
|
||||
Bank-issued trust preferred securities
|
13,385
|
|
—
|
|
13,385
|
|
—
|
|
||||
Equity securities
|
3,546
|
|
3,425
|
|
121
|
|
—
|
|
||||
Total available-for-sale securities
|
$
|
643,598
|
|
$
|
3,425
|
|
$
|
640,173
|
|
$
|
—
|
|
December 31, 2010
|
|
|
|
|
||||||||
Obligations of:
|
|
|
|
|
||||||||
U.S. Treasury and government agencies
|
$
|
39
|
|
$
|
—
|
|
$
|
39
|
|
$
|
—
|
|
U.S. government sponsored agencies
|
12,262
|
|
—
|
|
12,262
|
|
—
|
|
||||
States and political subdivisions
|
47,379
|
|
—
|
|
47,379
|
|
—
|
|
||||
Residential mortgage-backed securities
|
507,534
|
|
18,179
|
|
489,355
|
|
—
|
|
||||
Commercial mortgage-backed securities
|
30,700
|
|
3,545
|
|
27,155
|
|
—
|
|
||||
Bank-issued trust preferred securities
|
12,984
|
|
—
|
|
12,984
|
|
—
|
|
||||
Equity securities
|
3,088
|
|
2,960
|
|
128
|
|
—
|
|
||||
Total available-for-sale securities
|
$
|
613,986
|
|
$
|
24,684
|
|
$
|
589,302
|
|
$
|
—
|
|
|
June 30, 2011
|
|
December 31, 2010
|
||||||||||
(Dollars in thousands)
|
Carrying Amount
|
Fair Value
|
|
Carrying Amount
|
Fair Value
|
||||||||
Financial assets
:
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
37,649
|
|
$
|
37,649
|
|
|
$
|
74,644
|
|
$
|
74,644
|
|
Investment securities
|
670,920
|
|
670,909
|
|
|
641,307
|
|
641,296
|
|
||||
Loans
|
916,461
|
|
824,929
|
|
|
938,707
|
|
825,547
|
|
||||
Financial liabilities:
|
|
|
|
|
|
||||||||
Deposits
|
$
|
1,358,826
|
|
$
|
1,372,923
|
|
|
$
|
1,361,600
|
|
$
|
1,380,336
|
|
Short-term borrowings
|
39,254
|
|
39,254
|
|
|
51,509
|
|
51,509
|
|
||||
Long-term borrowings
|
151,703
|
|
160,716
|
|
|
157,703
|
|
164,075
|
|
||||
Junior subordinated notes held by subsidiary trust
|
22,583
|
|
23,811
|
|
|
22,565
|
|
23,861
|
|
(Dollars in thousands)
|
Amortized Cost
|
Gross Unrealized Gains
|
Gross Unrealized Losses
|
Fair Value
|
||||||||
June 30, 2011
|
|
|
|
|
||||||||
Obligations of:
|
|
|
|
|
||||||||
U.S. Treasury and government agencies
|
$
|
35
|
|
$
|
1
|
|
$
|
—
|
|
$
|
36
|
|
U.S. government sponsored agencies
|
12,503
|
|
55
|
|
(237
|
)
|
12,321
|
|
||||
States and political subdivisions
|
36,399
|
|
1,699
|
|
(7
|
)
|
38,091
|
|
||||
Residential mortgage-backed securities
|
538,507
|
|
15,339
|
|
(12,915
|
)
|
540,931
|
|
||||
Commercial mortgage-backed securities
|
36,128
|
|
268
|
|
(1,108
|
)
|
35,288
|
|
||||
Bank-issued trust preferred securities
|
13,882
|
|
84
|
|
(581
|
)
|
13,385
|
|
||||
Equity securities
|
1,213
|
|
2,429
|
|
(96
|
)
|
3,546
|
|
||||
Total available-for-sale securities
|
$
|
638,667
|
|
$
|
19,875
|
|
$
|
(14,944
|
)
|
$
|
643,598
|
|
December 31, 2010
|
|
|
|
|
||||||||
Obligations of:
|
|
|
|
|
||||||||
U.S. Treasury and government agencies
|
$
|
38
|
|
$
|
1
|
|
$
|
—
|
|
$
|
39
|
|
U.S. government sponsored agencies
|
12,753
|
|
55
|
|
(546
|
)
|
12,262
|
|
||||
States and political subdivisions
|
46,717
|
|
1,063
|
|
(401
|
)
|
47,379
|
|
||||
Residential mortgage-backed securities
|
512,398
|
|
14,155
|
|
(19,019
|
)
|
507,534
|
|
||||
Commercial mortgage-backed securities
|
30,124
|
|
648
|
|
(72
|
)
|
30,700
|
|
||||
Bank-issued trust preferred securities
|
13,877
|
|
79
|
|
(972
|
)
|
12,984
|
|
||||
Equity securities
|
1,214
|
|
1,970
|
|
(96
|
)
|
3,088
|
|
||||
Total available-for-sale securities
|
$
|
617,121
|
|
$
|
17,971
|
|
$
|
(21,106
|
)
|
$
|
613,986
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||
|
June 30,
|
|
June 30,
|
||||||||||
(Dollars in thousands)
|
2011
|
2010
|
|
2011
|
2010
|
||||||||
Gross gains realized
|
$
|
56
|
|
$
|
3,018
|
|
|
$
|
498
|
|
$
|
3,034
|
|
Gross losses realized
|
—
|
|
—
|
|
|
82
|
|
—
|
|
||||
Net gain realized
|
$
|
56
|
|
$
|
3,018
|
|
|
$
|
416
|
|
$
|
3,034
|
|
|
Less than 12 Months
|
|
12 Months or More
|
|
Total
|
|||||||||||||||||||
(Dollars in thousands)
|
Fair
Value
|
Unrealized Loss
|
No. of Securities
|
|
Fair
Value
|
Unrealized Loss
|
No. of Securities
|
|
Fair
Value
|
Unrealized Loss
|
||||||||||||||
June 30, 2011
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Obligations of:
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
U.S. government sponsored agencies
|
$
|
11,423
|
|
$
|
237
|
|
1
|
|
|
$
|
4
|
|
$
|
—
|
|
1
|
|
|
$
|
11,427
|
|
$
|
237
|
|
States and political subdivisions
|
221
|
|
7
|
|
1
|
|
|
—
|
|
—
|
|
—
|
|
|
221
|
|
7
|
|
||||||
Residential mortgage-backed securities
|
81,877
|
|
4,763
|
|
13
|
|
|
51,049
|
|
8,152
|
|
14
|
|
|
132,926
|
|
12,915
|
|
||||||
Commercial mortgage-backed securities
|
29,980
|
|
1,108
|
|
3
|
|
|
—
|
|
—
|
|
—
|
|
|
29,980
|
|
1,108
|
|
||||||
Bank-issued trust preferred securities
|
6,356
|
|
34
|
|
4
|
|
|
3,473
|
|
547
|
|
4
|
|
|
9,829
|
|
581
|
|
||||||
Equity securities
|
—
|
|
—
|
|
—
|
|
|
80
|
|
96
|
|
1
|
|
|
80
|
|
96
|
|
||||||
Total
|
$
|
129,857
|
|
$
|
6,149
|
|
22
|
|
|
$
|
54,606
|
|
$
|
8,795
|
|
20
|
|
|
$
|
184,463
|
|
$
|
14,944
|
|
December 31, 2010
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Obligations of:
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
U.S. government sponsored agencies
|
$
|
11,202
|
|
$
|
546
|
|
1
|
|
|
$
|
—
|
|
$
|
—
|
|
—
|
|
|
$
|
11,202
|
|
$
|
546
|
|
States and political subdivisions
|
13,055
|
|
401
|
|
19
|
|
|
—
|
|
—
|
|
—
|
|
|
13,055
|
|
401
|
|
||||||
Residential mortgage-backed securities
|
152,075
|
|
13,080
|
|
23
|
|
|
39,540
|
|
5,939
|
|
9
|
|
|
191,615
|
|
19,019
|
|
||||||
Commercial mortgage-backed securities
|
21,388
|
|
72
|
|
4
|
|
|
—
|
|
—
|
|
—
|
|
|
21,388
|
|
72
|
|
||||||
Bank-issued trust preferred securities
|
4,290
|
|
47
|
|
3
|
|
|
5,144
|
|
925
|
|
5
|
|
|
9,434
|
|
972
|
|
||||||
Equity securities
|
—
|
|
—
|
|
—
|
|
|
80
|
|
96
|
|
1
|
|
|
80
|
|
96
|
|
||||||
Total
|
$
|
202,010
|
|
$
|
14,146
|
|
50
|
|
|
$
|
44,764
|
|
$
|
6,960
|
|
15
|
|
|
$
|
246,774
|
|
$
|
21,106
|
|
(Dollars in thousands)
|
Within 1 Year
|
1 to 5 Years
|
5 to 10 Years
|
Over 10 Years
|
Total
|
||||||||||
Amortized cost
|
|
|
|
|
|
||||||||||
Obligations of:
|
|
|
|
|
|
||||||||||
U.S. Treasury and government agencies
|
$
|
—
|
|
$
|
12
|
|
$
|
23
|
|
$
|
—
|
|
$
|
35
|
|
U.S. government sponsored agencies
|
—
|
|
843
|
|
11,660
|
|
—
|
|
12,503
|
|
|||||
States and political subdivisions
|
2,601
|
|
6,574
|
|
9,618
|
|
17,606
|
|
36,399
|
|
|||||
Residential mortgage-backed securities
|
—
|
|
6,210
|
|
56,040
|
|
476,257
|
|
538,507
|
|
|||||
Commercial mortgage-backed securities
|
—
|
|
—
|
|
34,635
|
|
1,493
|
|
36,128
|
|
|||||
Bank-issued trust preferred securities
|
—
|
|
—
|
|
—
|
|
13,882
|
|
13,882
|
|
|||||
Equity securities
|
—
|
|
—
|
|
—
|
|
1,213
|
|
1,213
|
|
|||||
Total available-for-sale securities
|
$
|
2,601
|
|
$
|
13,639
|
|
$
|
111,976
|
|
$
|
510,451
|
|
$
|
638,667
|
|
Fair value
|
|
|
|
|
|
||||||||||
Obligations of:
|
|
|
|
|
|
||||||||||
U.S. Treasury and government agencies
|
$
|
—
|
|
$
|
13
|
|
$
|
23
|
|
$
|
—
|
|
$
|
36
|
|
U.S. government sponsored agencies
|
—
|
|
898
|
|
11,423
|
|
—
|
|
12,321
|
|
|||||
States and political subdivisions
|
2,638
|
|
6,821
|
|
10,321
|
|
18,311
|
|
38,091
|
|
|||||
Residential mortgage-backed securities
|
—
|
|
6,775
|
|
58,246
|
|
475,910
|
|
540,931
|
|
|||||
Commercial mortgage-backed securities
|
—
|
|
—
|
|
33,625
|
|
1,663
|
|
35,288
|
|
|||||
Bank-issued trust preferred securities
|
—
|
|
—
|
|
—
|
|
13,385
|
|
13,385
|
|
|||||
Equity securities
|
—
|
|
—
|
|
—
|
|
3,546
|
|
3,546
|
|
|||||
Total available-for-sale securities
|
$
|
2,638
|
|
$
|
14,507
|
|
$
|
113,638
|
|
$
|
512,815
|
|
$
|
643,598
|
|
Total average yield
|
5.63
|
%
|
5.69
|
%
|
4.35
|
%
|
3.76
|
%
|
3.91
|
%
|
|
June 30,
|
December 31,
|
||||
(Dollars in thousands)
|
2011
|
2010
|
||||
Commercial real estate
|
$
|
430,832
|
|
$
|
452,875
|
|
Commercial and industrial
|
148,254
|
|
153,192
|
|
||
Real estate construction
|
28,136
|
|
22,478
|
|
||
Residential real estate
|
196,428
|
|
200,275
|
|
||
Home equity lines of credit
|
47,784
|
|
48,130
|
|
||
Consumer
|
86,540
|
|
81,567
|
|
||
Deposit account overdrafts
|
2,145
|
|
2,201
|
|
||
Total loans
|
$
|
940,119
|
|
$
|
960,718
|
|
|
June 30,
|
December 31,
|
||||
(Dollars in thousands)
|
2011
|
2010
|
||||
Commercial real estate
|
$
|
3,245
|
|
$
|
3,616
|
|
Commercial and industrial
|
201
|
|
200
|
|
||
Residential real estate
|
16,371
|
|
17,893
|
|
||
Consumer
|
123
|
|
123
|
|
||
Total outstanding balance
|
$
|
19,940
|
|
$
|
21,832
|
|
Net carrying amount
|
$
|
19,431
|
|
$
|
21,229
|
|
|
|
|
|
Accruing Loans
|
|||||||||
|
Nonaccrual Loans
|
|
90+ Days Past Due
|
||||||||||
|
June 30,
|
December 31,
|
|
June 30,
|
December 31,
|
||||||||
(Dollars in thousands)
|
2011
|
2010
|
|
2011
|
2010
|
||||||||
Commercial real estate
|
$
|
27,455
|
|
$
|
34,392
|
|
|
$
|
—
|
|
$
|
—
|
|
Commercial and industrial
|
1,325
|
|
1,714
|
|
|
—
|
|
—
|
|
||||
Real estate construction
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||
Residential real estate
|
2,358
|
|
3,790
|
|
|
124
|
|
27
|
|
||||
Home equity lines of credit
|
283
|
|
554
|
|
|
—
|
|
—
|
|
||||
Consumer
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||
Total
|
$
|
31,421
|
|
$
|
40,450
|
|
|
$
|
124
|
|
$
|
27
|
|
|
Loans Past Due
|
|
Current
|
Total
|
|||||||||||||||
(Dollars in thousands)
|
30 - 59 days
|
60 - 89 days
|
90 + Days
|
Total
|
|
Loans
|
Loans
|
||||||||||||
June 30, 2011
|
|
|
|
|
|
|
|
||||||||||||
Commercial real estate
|
$
|
3,242
|
|
$
|
277
|
|
$
|
12,369
|
|
$
|
15,888
|
|
|
$
|
414,944
|
|
$
|
430,832
|
|
Commercial and industrial
|
370
|
|
668
|
|
—
|
|
1,038
|
|
|
147,216
|
|
148,254
|
|
||||||
Real estate construction
|
—
|
|
—
|
|
400
|
|
400
|
|
|
27,736
|
|
28,136
|
|
||||||
Residential real estate
|
4,020
|
|
1,266
|
|
2,083
|
|
7,369
|
|
|
189,059
|
|
196,428
|
|
||||||
Home equity lines of credit
|
477
|
|
46
|
|
—
|
|
523
|
|
|
47,261
|
|
47,784
|
|
||||||
Consumer
|
33
|
|
57
|
|
283
|
|
373
|
|
|
86,167
|
|
86,540
|
|
||||||
Deposit account overdrafts
|
69
|
|
—
|
|
—
|
|
69
|
|
|
2,076
|
|
2,145
|
|
||||||
Total
|
$
|
8,211
|
|
$
|
2,314
|
|
$
|
15,135
|
|
$
|
25,660
|
|
|
$
|
914,459
|
|
$
|
940,119
|
|
December 31, 2010
|
|
|
|
|
|
|
|
||||||||||||
Commercial real estate
|
$
|
3,208
|
|
$
|
5,378
|
|
$
|
14,652
|
|
$
|
23,238
|
|
|
$
|
429,637
|
|
$
|
452,875
|
|
Commercial and industrial
|
563
|
|
11
|
|
247
|
|
821
|
|
|
152,371
|
|
153,192
|
|
||||||
Real estate construction
|
4
|
|
—
|
|
815
|
|
819
|
|
|
21,659
|
|
22,478
|
|
||||||
Residential real estate
|
4,321
|
|
2,022
|
|
1,959
|
|
8,302
|
|
|
191,973
|
|
200,275
|
|
||||||
Home equity lines of credit
|
725
|
|
119
|
|
—
|
|
844
|
|
|
47,286
|
|
48,130
|
|
||||||
Consumer
|
186
|
|
58
|
|
458
|
|
702
|
|
|
80,865
|
|
81,567
|
|
||||||
Deposit account overdrafts
|
—
|
|
—
|
|
—
|
|
—
|
|
|
2,201
|
|
2,201
|
|
||||||
Total
|
$
|
9,007
|
|
$
|
7,588
|
|
$
|
18,131
|
|
$
|
34,726
|
|
|
$
|
925,992
|
|
$
|
960,718
|
|
|
|
|
|
|
|
|
|
|
Pass Rated
|
Watch
|
Substandard
|
Doubtful
|
Not
|
Total
|
||||||||||||
(Dollars in thousands)
|
(Grades 1 - 4)
|
(Grade 5)
|
(Grade 6)
|
(Grade 7)
|
Rated
|
Loans
|
||||||||||||
June 30, 2011
|
|
|
|
|
|
|
||||||||||||
Commercial real estate
|
$
|
316,757
|
|
$
|
56,243
|
|
$
|
55,968
|
|
$
|
5
|
|
$
|
1,859
|
|
$
|
430,832
|
|
Commercial and industrial
|
102,192
|
|
16,785
|
|
8,261
|
|
—
|
|
21,016
|
|
148,254
|
|
||||||
Real estate construction
|
21,590
|
|
2,981
|
|
2,945
|
|
—
|
|
620
|
|
28,136
|
|
||||||
Residential real estate
|
4,044
|
|
2,308
|
|
7,223
|
|
40
|
|
182,813
|
|
196,428
|
|
||||||
Home equity lines of credit
|
1,028
|
|
521
|
|
1,372
|
|
—
|
|
44,863
|
|
47,784
|
|
||||||
Consumer
|
93
|
|
—
|
|
—
|
|
—
|
|
86,447
|
|
86,540
|
|
||||||
Deposit account overdrafts
|
—
|
|
—
|
|
—
|
|
—
|
|
2,145
|
|
2,145
|
|
||||||
Total
|
$
|
445,704
|
|
$
|
78,838
|
|
$
|
75,769
|
|
$
|
45
|
|
$
|
339,763
|
|
$
|
940,119
|
|
December 31, 2010
|
|
|
|
|
|
|
||||||||||||
Commercial real estate
|
$
|
320,306
|
|
$
|
49,901
|
|
$
|
77,634
|
|
$
|
—
|
|
$
|
5,034
|
|
$
|
452,875
|
|
Commercial and industrial
|
122,874
|
|
6,325
|
|
9,427
|
|
247
|
|
14,319
|
|
153,192
|
|
||||||
Real estate construction
|
14,991
|
|
3,017
|
|
3,495
|
|
—
|
|
975
|
|
22,478
|
|
||||||
Residential real estate
|
5,186
|
|
2,135
|
|
8,031
|
|
—
|
|
184,923
|
|
200,275
|
|
||||||
Home equity lines of credit
|
283
|
|
339
|
|
2,106
|
|
—
|
|
45,402
|
|
48,130
|
|
||||||
Consumer
|
89
|
|
—
|
|
—
|
|
—
|
|
81,478
|
|
81,567
|
|
||||||
Deposit account overdrafts
|
—
|
|
—
|
|
—
|
|
—
|
|
2,201
|
|
2,201
|
|
||||||
Total
|
$
|
463,729
|
|
$
|
61,717
|
|
$
|
100,693
|
|
$
|
247
|
|
$
|
334,332
|
|
$
|
960,718
|
|
|
Unpaid
|
Recorded Investment
|
Total
|
|
Average
|
Interest
|
|||||||||||||||
|
Principal
|
With
|
Without
|
Recorded
|
Related
|
Recorded
|
Income
|
||||||||||||||
(Dollars in thousands)
|
Balance
|
Allowance
|
Allowance
|
Investment
|
Allowance
|
Investment
|
Recognized
|
||||||||||||||
June 30, 2011
|
|
|
|
|
|
|
|
||||||||||||||
Commercial real estate
|
$
|
54,033
|
|
$
|
1,308
|
|
$
|
25,291
|
|
$
|
26,599
|
|
$
|
523
|
|
$
|
27,060
|
|
$
|
—
|
|
Commercial and industrial
|
2,188
|
|
1,318
|
|
—
|
|
1,318
|
|
772
|
|
1,433
|
|
—
|
|
|||||||
Real estate construction
|
1,574
|
|
—
|
|
760
|
|
760
|
|
—
|
|
794
|
|
—
|
|
|||||||
Residential real estate
|
1,115
|
|
—
|
|
662
|
|
662
|
|
—
|
|
555
|
|
—
|
|
|||||||
Home equity lines of credit
|
424
|
|
—
|
|
275
|
|
275
|
|
—
|
|
353
|
|
—
|
|
|||||||
Total
|
$
|
59,334
|
|
$
|
2,626
|
|
$
|
26,988
|
|
$
|
29,614
|
|
$
|
1,295
|
|
$
|
30,195
|
|
$
|
—
|
|
December 31, 2010
|
|
|
|
|
|
|
|
||||||||||||||
Commercial real estate
|
$
|
58,178
|
|
$
|
6,403
|
|
$
|
27,550
|
|
$
|
33,953
|
|
$
|
1,789
|
|
$
|
21,361
|
|
$
|
10
|
|
Commercial and industrial
|
2,333
|
|
1,086
|
|
729
|
|
1,815
|
|
572
|
|
1,713
|
|
5
|
|
|||||||
Real estate construction
|
1,755
|
|
330
|
|
485
|
|
815
|
|
22
|
|
913
|
|
—
|
|
|||||||
Residential real estate
|
1,170
|
|
631
|
|
506
|
|
1,137
|
|
320
|
|
867
|
|
9
|
|
|||||||
Home equity lines of credit
|
522
|
|
520
|
|
—
|
|
520
|
|
254
|
|
535
|
|
—
|
|
|||||||
Total
|
$
|
63,958
|
|
$
|
8,970
|
|
$
|
29,270
|
|
$
|
38,240
|
|
$
|
2,957
|
|
$
|
25,389
|
|
$
|
24
|
|
(Dollars in thousands)
|
Commercial Real Estate
|
Commercial and Industrial
|
Residential Real Estate
|
Real Estate Construction
|
Home Equity Lines of Credit
|
Consumer
|
Deposit Account Overdrafts
|
Total
|
||||||||||||||||
Balance, January 1, 2011
|
$
|
21,806
|
|
$
|
2,160
|
|
$
|
1,400
|
|
$
|
—
|
|
$
|
431
|
|
$
|
721
|
|
$
|
248
|
|
$
|
26,766
|
|
Charge-offs
|
(9,275
|
)
|
(937
|
)
|
(957
|
)
|
—
|
|
(330
|
)
|
(458
|
)
|
(293
|
)
|
(12,250
|
)
|
||||||||
Recoveries
|
1,360
|
|
546
|
|
569
|
|
—
|
|
26
|
|
390
|
|
153
|
|
3,044
|
|
||||||||
Net (charge-offs) recoveries
|
(7,915
|
)
|
(391
|
)
|
(388
|
)
|
—
|
|
(304
|
)
|
(68
|
)
|
(140
|
)
|
(9,206
|
)
|
||||||||
Provision for loan losses
|
5,470
|
|
1,300
|
|
175
|
|
—
|
|
425
|
|
130
|
|
106
|
|
7,606
|
|
||||||||
Balance, June 30, 2011
|
$
|
19,361
|
|
$
|
3,069
|
|
$
|
1,187
|
|
$
|
—
|
|
$
|
552
|
|
$
|
783
|
|
$
|
214
|
|
$
|
25,166
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Period-end amount allocated to:
|
|
|
|
|
|
|
|
|||||||||||||||||
Loans individually evaluated for impairment
|
$
|
523
|
|
$
|
772
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
1,295
|
|
Loans collectively evaluated for impairment
|
18,838
|
|
2,297
|
|
1,187
|
|
—
|
|
552
|
|
783
|
|
214
|
|
23,871
|
|
||||||||
Ending balance
|
$
|
19,361
|
|
$
|
3,069
|
|
$
|
1,187
|
|
$
|
—
|
|
$
|
552
|
|
$
|
783
|
|
$
|
214
|
|
$
|
25,166
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance, January 1, 2010
|
$
|
22,125
|
|
$
|
1,586
|
|
$
|
1,619
|
|
$
|
—
|
|
$
|
528
|
|
$
|
1,074
|
|
$
|
325
|
|
$
|
27,257
|
|
Charge-offs
|
(11,098
|
)
|
(1,076
|
)
|
(346
|
)
|
(68
|
)
|
(19
|
)
|
(591
|
)
|
(453
|
)
|
(13,651
|
)
|
||||||||
Recoveries
|
779
|
|
144
|
|
86
|
|
—
|
|
25
|
|
389
|
|
180
|
|
1,603
|
|
||||||||
Net (charge-offs) recoveries
|
(10,319
|
)
|
(932
|
)
|
(260
|
)
|
(68
|
)
|
6
|
|
(202
|
)
|
(273
|
)
|
(12,048
|
)
|
||||||||
Provision for loan losses
|
8,392
|
|
3,300
|
|
—
|
|
68
|
|
—
|
|
—
|
|
199
|
|
11,959
|
|
||||||||
Balance, June 30, 2010
|
$
|
20,198
|
|
$
|
3,954
|
|
$
|
1,359
|
|
$
|
—
|
|
$
|
534
|
|
$
|
872
|
|
$
|
251
|
|
$
|
27,168
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Period-end amount allocated to:
|
|
|
|
|
|
|
|
|||||||||||||||||
Loans individually evaluated for impairment
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
Loans collectively evaluated for impairment
|
20,198
|
|
3,954
|
|
1,359
|
|
—
|
|
534
|
|
872
|
|
251
|
|
27,168
|
|
||||||||
Ending balance
|
$
|
20,198
|
|
$
|
3,954
|
|
$
|
1,359
|
|
$
|
—
|
|
$
|
534
|
|
$
|
872
|
|
$
|
251
|
|
$
|
27,168
|
|
|
Preferred Stock
|
Common Stock
|
Treasury
Stock
|
|||
Shares at December 31, 2010
|
39,000
|
|
11,070,022
|
|
612,695
|
|
Changes related to stock-based compensation awards:
|
|
|
|
|||
Release of restricted common shares
|
|
5,337
|
|
647
|
|
|
Changes related to deferred compensation plan:
|
|
|
|
|||
Purchase of treasury stock
|
|
|
(9,209
|
)
|
||
Reissuance of treasury stock
|
|
|
4,686
|
|
||
Repurchase of preferred shares
|
(21,000
|
)
|
|
|
||
Common shares issued under dividend reinvestment plan
|
|
11,609
|
|
|
||
Shares at June 30, 2011
|
18,000
|
|
11,086,968
|
|
608,819
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||
|
June 30,
|
|
June 30,
|
||||||||||
(Dollars in thousands)
|
2011
|
2010
|
|
2011
|
2010
|
||||||||
Net income
|
$
|
2,921
|
|
$
|
3,285
|
|
|
$
|
4,790
|
|
$
|
4,600
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
||||||||
Available-for-sale investment securities:
|
|
|
|
|
|
||||||||
Gross unrealized holding gain (loss) arising in the period
|
8,066
|
|
(1,779
|
)
|
|
8,484
|
|
(7,766
|
)
|
||||
Related tax (expense) benefit
|
(2,823
|
)
|
623
|
|
|
(2,969
|
)
|
2,718
|
|
||||
Less: reclassification adjustment for net gain included in net income
|
56
|
|
2,218
|
|
|
416
|
|
1,248
|
|
||||
Related tax expense
|
(19
|
)
|
(776
|
)
|
|
(145
|
)
|
(436
|
)
|
||||
Net effect on other comprehensive income (loss)
|
5,206
|
|
(2,598
|
)
|
|
5,244
|
|
(5,860
|
)
|
||||
Defined benefit plans:
|
|
|
|
|
|
||||||||
Amortization of unrecognized loss and service cost on pension plan
|
38
|
|
77
|
|
|
77
|
|
77
|
|
||||
Related tax expense
|
(13
|
)
|
(27
|
)
|
|
(27
|
)
|
(27
|
)
|
||||
Net effect on other comprehensive income
|
25
|
|
50
|
|
|
50
|
|
50
|
|
||||
Total other comprehensive income (loss), net of tax
|
5,231
|
|
(2,548
|
)
|
|
5,294
|
|
(5,810
|
)
|
||||
Total comprehensive income (loss)
|
$
|
8,152
|
|
$
|
737
|
|
|
$
|
10,084
|
|
$
|
(1,210
|
)
|
(Dollars in thousands)
|
Unrealized (Loss) Gain on Securities
|
Unrecognized Net Pension and Postretirement Costs
|
Accumulated Comprehensive (Loss) Income
|
||||||
Balance, December 31, 2010
|
$
|
(2,038
|
)
|
$
|
(2,415
|
)
|
$
|
(4,453
|
)
|
Current period change, net of tax
|
5,244
|
|
25
|
|
5,269
|
|
|||
Balance, June 30, 2011
|
$
|
3,206
|
|
$
|
(2,390
|
)
|
$
|
816
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||
|
June 30,
|
|
June 30,
|
||||||||||
(Dollars in thousands)
|
2011
|
2010
|
|
2011
|
2010
|
||||||||
Service cost
|
$
|
—
|
|
$
|
187
|
|
|
$
|
—
|
|
$
|
375
|
|
Interest cost
|
201
|
|
196
|
|
|
373
|
|
392
|
|
||||
Expected return on plan assets
|
(276
|
)
|
(287
|
)
|
|
(556
|
)
|
(574
|
)
|
||||
Amortization of prior service cost
|
—
|
|
1
|
|
|
—
|
|
2
|
|
||||
Amortization of net loss
|
22
|
|
37
|
|
|
30
|
|
75
|
|
||||
Net periodic benefit cost
|
$
|
(53
|
)
|
$
|
134
|
|
|
$
|
(153
|
)
|
$
|
270
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||
|
June 30,
|
|
June 30,
|
||||||||||
(Dollars in thousands)
|
2011
|
2010
|
|
2011
|
2010
|
||||||||
Service cost
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
Interest cost
|
3
|
|
3
|
|
|
6
|
|
6
|
|
||||
Expected return on plan assets
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||
Amortization of prior service cost
|
—
|
|
—
|
|
|
—
|
|
(1
|
)
|
||||
Amortization of net loss
|
(2
|
)
|
(3
|
)
|
|
(4
|
)
|
(5
|
)
|
||||
Net periodic benefit cost
|
$
|
1
|
|
$
|
—
|
|
|
$
|
2
|
|
$
|
—
|
|
|
Options Outstanding & Exercisable
|
|||||||
Range of Exercise Prices
|
Common Shares Subject to Options Outstanding
|
Weighted-
Average
Remaining Contractual
Life
|
Weighted-Average
Exercise Price
|
|||||
$15.55
|
to
|
$21.71
|
9,876
|
|
0.9 years
|
$
|
20.08
|
|
$21.72
|
to
|
$23.58
|
47,640
|
|
1.4 years
|
22.32
|
|
|
$23.59
|
to
|
$25.94
|
41,343
|
|
0.9 years
|
23.96
|
|
|
$26.01
|
to
|
$27.74
|
41,354
|
|
2.8 years
|
27.08
|
|
|
$28.25
|
to
|
$28.26
|
34,028
|
|
3.7 years
|
28.25
|
|
|
$28.57
|
to
|
$30.00
|
31,410
|
|
3.4 years
|
29.02
|
|
|
Total
|
205,651
|
|
2.3 years
|
$
|
25.50
|
|
Exercise Prices
|
Number of Common Shares Subject to SARs Outstanding & Exercisable
|
Weighted-
Average Remaining Contractual
Life
|
|||
|
$23.26
|
|
5,000
|
|
2.4 years
|
|
$23.77
|
|
18,936
|
|
6.6 years
|
|
$23.80
|
|
1,000
|
|
6.4 years
|
|
$29.25
|
|
17,506
|
|
4.4 years
|
Total
|
42,442
|
|
5.2 years
|
|
Time Vesting
|
|
Performance Vesting
|
||||||||
|
Number of Shares
|
Weighted-Average Grant Date Fair Value
|
|
Number of Shares
|
Weighted-Average Grant Date Fair Value
|
||||||
Outstanding at January 1
|
7,337
|
|
$
|
19.88
|
|
|
—
|
|
$
|
—
|
|
Awarded
|
37,423
|
|
13.33
|
|
|
3,531
|
|
13.14
|
|
||
Released
|
5,337
|
|
22.09
|
|
|
—
|
|
—
|
|
||
Outstanding at June 30
|
39,423
|
|
$
|
13.37
|
|
|
3,531
|
|
$
|
13.14
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||
|
June 30,
|
|
June 30,
|
||||||||||
(Dollars in thousands)
|
2011
|
2010
|
|
2011
|
2010
|
||||||||
Total stock-based compensation
|
$
|
63
|
|
$
|
25
|
|
|
$
|
96
|
|
$
|
51
|
|
Recognized tax benefit
|
(22
|
)
|
(9
|
)
|
|
(34
|
)
|
(18
|
)
|
||||
Net expense recognized
|
$
|
41
|
|
$
|
16
|
|
|
$
|
62
|
|
$
|
33
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||||
|
June 30,
|
|
June 30,
|
|||||||||||
(Dollars in thousands, except per common share data)
|
2011
|
|
2010
|
|
2011
|
2010
|
||||||||
Net income
|
$
|
2,921
|
|
|
$
|
3,285
|
|
|
$
|
4,790
|
|
$
|
4,600
|
|
Preferred dividends
|
238
|
|
|
512
|
|
|
761
|
|
1,025
|
|
||||
Net income available to common shareholders
|
$
|
2,683
|
|
|
$
|
2,773
|
|
|
$
|
4,029
|
|
$
|
3,575
|
|
Weighted-average common shares outstanding
|
10,478,362
|
|
|
10,422,126
|
|
|
10,475,109
|
|
10,406,919
|
|
||||
Effect of potentially dilutive common shares
|
29,533
|
|
|
7,243
|
|
|
17,603
|
|
9,080
|
|
||||
Total weighted-average diluted common shares outstanding
|
10,507,895
|
|
|
10,429,369
|
|
|
10,492,712
|
|
10,415,999
|
|
||||
Earnings per common share:
|
|
|
|
|
|
|
|
|
||||||
Basic
|
$
|
0.26
|
|
|
$
|
0.27
|
|
|
$
|
0.38
|
|
$
|
0.34
|
|
Diluted
|
$
|
0.26
|
|
|
$
|
0.27
|
|
|
$
|
0.38
|
|
$
|
0.34
|
|
|
At or For the Three Months Ended
|
|
At or For the Six Months Ended
|
||||||||||
|
June 30,
|
|
June 30,
|
||||||||||
|
2011
|
2010
|
|
2011
|
2010
|
||||||||
SIGNIFICANT RATIOS
|
|
|
|
|
|
||||||||
Return on average stockholders' equity
|
5.48
|
%
|
5.43
|
%
|
|
4.47
|
%
|
3.81
|
%
|
||||
Return on average common stockholders' equity
|
5.49
|
%
|
5.45
|
%
|
|
4.18
|
%
|
3.52
|
%
|
||||
Return on average assets
|
0.65
|
%
|
0.66
|
%
|
|
0.53
|
%
|
0.46
|
%
|
||||
Net interest margin
|
3.43
|
%
|
3.49
|
%
|
|
3.43
|
%
|
3.51
|
%
|
||||
Efficiency ratio (a)
|
67.43
|
%
|
60.28
|
%
|
|
66.30
|
%
|
60.17
|
%
|
||||
Average stockholders' equity to average assets
|
11.82
|
%
|
12.15
|
%
|
|
11.89
|
%
|
12.13
|
%
|
||||
Average loans to average deposits
|
69.33
|
%
|
72.98
|
%
|
|
69.78
|
%
|
74.22
|
%
|
||||
Dividend payout ratio
|
—
|
%
|
38.01
|
%
|
|
26.26
|
%
|
58.88
|
%
|
||||
ASSET QUALITY RATIOS
|
|
|
|
|
|
||||||||
Nonperforming loans as a percent of total loans (b)(c)
|
3.35
|
%
|
3.77
|
%
|
|
3.35
|
%
|
3.77
|
%
|
||||
Nonperforming assets as a percent of total assets (b)(c)
|
1.95
|
%
|
2.21
|
%
|
|
1.95
|
%
|
2.21
|
%
|
||||
Allowance for loan losses to loans net of unearned interest (c)
|
2.68
|
%
|
2.66
|
%
|
|
2.68
|
%
|
2.66
|
%
|
||||
Allowance for loan losses to nonperforming loans (b)(c)
|
79.78
|
%
|
70.50
|
%
|
|
79.78
|
%
|
70.50
|
%
|
||||
Provision for loan losses to average loans (annualized)
|
0.97
|
%
|
2.10
|
%
|
|
1.61
|
%
|
2.29
|
%
|
||||
Net charge-offs as a percentage of average loans (annualized)
|
0.67
|
%
|
1.86
|
%
|
|
1.94
|
%
|
2.31
|
%
|
||||
CAPITAL INFORMATION (c)
|
|
|
|
|
|
||||||||
Tier 1 common capital ratio
|
12.05
|
%
|
11.07
|
%
|
|
12.05
|
%
|
11.07
|
%
|
||||
Tier 1 capital ratio
|
15.62
|
%
|
16.11
|
%
|
|
15.62
|
%
|
16.11
|
%
|
||||
Total risk-based capital ratio
|
16.97
|
%
|
17.44
|
%
|
|
16.97
|
%
|
17.44
|
%
|
||||
Leverage ratio
|
10.10
|
%
|
10.14
|
%
|
|
10.10
|
%
|
10.14
|
%
|
||||
Tangible equity to tangible assets (d)
|
8.86
|
%
|
9.21
|
%
|
|
8.86
|
%
|
9.21
|
%
|
||||
Tangible common equity to tangible assets (d)
|
7.83
|
%
|
7.18
|
%
|
|
7.83
|
%
|
7.18
|
%
|
||||
Tangible assets (d)
|
$
|
1,738,101
|
|
$
|
1,901,908
|
|
|
$
|
1,738,101
|
|
$
|
1,901,908
|
|
Tangible equity (d)
|
153,925
|
|
175,142
|
|
|
153,925
|
|
175,142
|
|
||||
Tangible common equity (d)
|
$
|
136,063
|
|
$
|
136,549
|
|
|
$
|
136,063
|
|
$
|
136,549
|
|
PER COMMON SHARE DATA
|
|
|
|
|
|
||||||||
Earnings per share – Basic
|
$
|
0.26
|
|
$
|
0.27
|
|
|
$
|
0.38
|
|
$
|
0.34
|
|
Earnings per share – Diluted
|
0.26
|
|
0.27
|
|
|
0.38
|
|
0.34
|
|
||||
Cash dividends declared per share
|
—
|
|
0.10
|
|
|
0.10
|
|
0.20
|
|
||||
Book value per share (c)
|
19.15
|
|
19.35
|
|
|
19.15
|
|
19.35
|
|
||||
Tangible book value per share (c) (d)
|
$
|
12.99
|
|
$
|
13.10
|
|
|
$
|
12.99
|
|
$
|
13.10
|
|
Weighted-average common shares outstanding – Basic
|
10,478,362
|
|
10,422,126
|
|
|
10,475,109
|
|
10,406,919
|
|
||||
Weighted-average common shares outstanding – Diluted
|
10,507,895
|
|
10,429,369
|
|
|
10,492,712
|
|
10,415,999
|
|
||||
Common shares outstanding at end of period
|
10,478,149
|
|
10,423,317
|
|
|
10,478,149
|
|
10,423,317
|
|
(a)
|
Non-interest expense (less intangible asset amortization) as a percentage of fully tax-equivalent net interest income plus non-interest income (excluding gains or losses on investment securities and asset disposals).
|
(b)
|
Nonperforming loans include loans 90 days past due and accruing, renegotiated loans and nonaccrual loans. Nonperforming assets include nonperforming loans and other real estate owned.
|
(c)
|
Data presented as of the end of the period indicated.
|
(d)
|
These amounts represent non-GAAP measures since they exclude the balance sheet impact of intangible assets acquired through acquisitions on both total stockholders’ equity and total assets. Additional information regarding the calculation of these measures can be found later in this discussion under the caption “Capital/Stockholders’ Equity”.
|
(1)
|
deterioration in the credit quality of Peoples’ loan portfolio could occur due to a number of factors, such as adverse changes in economic conditions that impair the ability of borrowers to repay their loans, the underlying value of the collateral could prove less valuable than otherwise assumed and assumed cash flows may be worse than expected, which may adversely impact the provision for loan losses;
|
(2)
|
competitive pressures among financial institutions or from non-financial institutions, which may increase significantly, impacting product and pricing pressures and Peoples' ability to attract, develop and retain qualified professionals;
|
(3)
|
changes in the interest rate environment, which may adversely impact interest margins;
|
(4)
|
changes in prepayment speeds, loan originations, sale volumes and charge-offs, which may be less favorable than expected and adversely impact the amount of interest income generated;
|
(5)
|
economic conditions, either nationally or in the areas where Peoples and its subsidiaries do business, may be less favorable than expected, which could decrease the demand for loans, deposits and other financial services and increase loan delinquencies and defaults;
|
(6)
|
political developments, wars or other hostilities, which may disrupt or increase volatility in securities markets or other economic conditions;
|
(7)
|
legislative or regulatory changes or actions, including in particular the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and the regulations to be promulgated thereunder, which may adversely affect the business of Peoples and its subsidiaries;
|
(8)
|
changes in accounting standards, policies, estimates or procedures may adversely affect Peoples’ reported financial condition or results of operations;
|
(9)
|
adverse changes in the conditions and trends in the financial markets, which may adversely affect the fair value of securities within Peoples’ investment portfolio and interest rate sensitivity of Peoples' Consolidated Balance Sheets;
|
(10)
|
Peoples’ ability to receive dividends from its subsidiaries;
|
(11)
|
Peoples’ ability to maintain required capital levels and adequate sources of funding and liquidity;
|
(12)
|
the impact of larger or similar financial institutions encountering problems, which may adversely affect the banking industry and/or Peoples;
|
(13)
|
the impact of reputational risk created by these developments on such matters as business generation and retention, funding and liquidity;
|
(14)
|
the costs and effects of regulatory and legal developments, including the outcome of regulatory or other governmental inquiries and legal proceedings and results of regulatory examinations; and
|
(15)
|
other risk factors relating to the banking industry or Peoples as detailed from time to time in Peoples’ reports filed with the Securities and Exchange Commission (“SEC”), including those risk factors included in the disclosure under the headings “ITEM 1A. RISK FACTORS” of Peoples’ Annual Report on Form 10-K for the year ended December 31,
2010
(the “
2010
Form 10-K”).
|
◦
|
As described in Note 5 of the Notes to the Consolidated Financial Statements, no dividends were declared on common shares during the second quarter of 2011 as a result of Peoples' Board of Directors adopting a new schedule for declaring such dividends. The lack of dividends declared on common shares due to this change had a positive impact on Peoples' common equity and corresponding capital ratios at June 30, 2011. On July 28, 2011, the Board of Directors declared a cash dividend of $0.10 per common share with respect to second quarter 2011 results at a regularly scheduled Board meeting. This dividend is payable on August 22, 2011, to shareholders of record on August 8, 2011.
|
◦
|
As described in Note 5 of the Notes to the Consolidated Financial Statements, on January 30, 2009, Peoples received $39.0 million of new equity capital under the U.S. Treasury’s TARP Capital Purchase Program. The investment was in the form of newly-issued non-voting cumulative perpetual preferred shares and a related 10-year warrant to purchase common shares sold by Peoples to the U.S. Treasury (the “TARP Capital Investment”). On February 2, 2011, Peoples completed a partial redemption of the TARP Capital Investment by repurchasing $21.0 million of the
|
◦
|
Since 2008, Peoples periodically has taken actions to reduce interest rate exposures within the investment portfolio and entire balance sheet, which have included the sale of low yielding investment securities and repayment of high-cost borrowings. These actions included the sale of $86.6 million of investment securities, primarily low yielding U.S. agency mortgage-backed securities and U.S. government-backed student loan pools, during the third quarter of 2010. The proceeds from these investment sales were used to prepay $60.0 million of wholesale repurchase agreements thereby deleveraging the balance sheet. The repurchase agreements had a weighted-average cost of 4.53% and originally were scheduled to mature over the next two years.
|
◦
|
In the first quarter of 2010, Peoples recognized a non-cash pre-tax other-than-temporary impairment (“OTTI”) loss of $1.0 million on its then remaining investment in collateralized debt obligation (“CDO”) securities. These securities were equity tranche CDO securities comprised mostly of bank-issued trust preferred securities. The OTTI loss reflected management’s estimation of credit losses incurred during the first quarter of 2010 based upon actual defaults, its evaluation of the credit quality of the issuers and corresponding analysis of cash flows to be received from the securities. After recognition of the first quarter 2010 OTTI loss, Peoples no longer has any exposure to CDO securities within its investment portfolio.
|
◦
|
Since early 2008, Peoples’ loan quality has been negatively impacted by adverse conditions within the commercial real estate market and economy as a whole, which has caused declines in commercial real estate values and deterioration in the financial condition of various commercial borrowers. These conditions led to Peoples to downgrade the loan quality ratings of various commercial real estate loans through its normal loan review process. In addition, several impaired loans have become under-collateralized due to reductions in the estimated net realizable fair value of the underlying collateral.
As a result, Peoples’ provision for loan losses, net charge-offs and nonperforming loans have been significantly higher than long-term historical levels.
Peoples has also recognized losses on other real estate owned (“OREO”) in recent quarters due to declining commercial real estate values.
|
◦
|
In 2009, the Board of Directors of the Federal Deposit Insurance Corporation (“FDIC”) took steps to restore the Deposit Insurance Fund, which affected all FDIC-insured depository institutions. These actions included increasing base assessment rates, imposing a one-time special assessment and requiring the prepayment of assessments for fourth quarter 2009 and full years 2010 through 2012. As a result, Peoples has incurred higher FDIC insurance costs compared to historical amounts. On April 1, 2011, new regulations required by the Dodd-Frank Act became effective changing the deposit insurance assessment base from total domestic deposits to average total assets minus average tangible equity, as well as changing the assessment system for large institutions and the assessment rate schedule. The new assessment base reduced Peoples' FDIC insurance costs beginning with the amount recorded for the second quarter of 2011.
|
◦
|
Peoples' net interest income and margin are impacted by changes in market interest rates based upon actions taken by the Federal Reserve either directly or through its Open Market Committee. Between August 2007 and December 2008, the Federal Reserve reduced the target Federal Funds rate 500 basis points to a range of 0% to 0.25% and reduced the Discount Rate 575 basis points to 0.50%. These actions caused a corresponding downward shift in short-term market interest rates. In 2009, the Federal Reserve maintained the target Federal Funds Rate and Discount Rate at their historically low levels of 0% to 0.25% and 0.50%, respectively. In February 2010, the Federal Reserve increased the Discount Rate by 25 basis points to 0.75% while leaving its target Federal Funds Rate range unchanged, thereby widening the spread between the Discount Rate and the high end of the target Federal Funds Rate. No changes to either the Federal Funds Rate or Discount Rate have occurred during the remainder of 2010 or the first half of 2011.
|
◦
|
In late 2008, the Federal Reserve initiated a plan to buy mortgage-backed and other debt securities through its open market operations as a means of lowering longer-term market interest rates and stimulating the economy – a policy commonly referred to as “quantitative easing”. The resulting purchases caused a flattening of the yield curve in the first half of 2009. The yield curve steepened moderately in the second half of 2009 after the Federal Reserve halted its investment purchases. In mid-2010, the Federal Reserve signaled the possibility of additional quantitative easing, which resulted in a flatter yield curve during much of the second half of 2010. In late 2010, the yield curve steepened after the Federal Reserve announced its plan to purchase U.S. Treasury securities with shorter maturities than anticipated by many market participants.
|
|
For the Three Months Ended
|
|||||||||||||||||||||||||||||||
|
June 30, 2011
|
|
March 31, 2011
|
|
June 30, 2010
|
|||||||||||||||||||||||||||
(
Dollars in thousands)
|
Average Balance
|
|
Income/ Expense
|
|
Yield/Cost
|
|
Average Balance
|
|
Income/ Expense
|
|
Yield/Cost
|
|
Average Balance
|
|
Income/ Expense
|
|
Yield/Cost
|
|||||||||||||||
Short-term investments
|
$
|
9,200
|
|
|
$
|
5
|
|
|
0.20
|
%
|
|
$
|
20,204
|
|
|
$
|
11
|
|
|
0.22
|
%
|
|
$
|
34,077
|
|
|
$
|
21
|
|
|
0.25
|
%
|
Investment Securities (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Taxable
|
632,657
|
|
|
6,209
|
|
|
3.93
|
%
|
|
617,915
|
|
|
6,248
|
|
|
4.04
|
%
|
|
678,806
|
|
|
7,766
|
|
|
4.58
|
%
|
||||||
Nontaxable (2)
|
38,050
|
|
|
591
|
|
|
6.21
|
%
|
|
41,323
|
|
|
654
|
|
|
6.33
|
%
|
|
60,400
|
|
|
951
|
|
|
6.31
|
%
|
||||||
Total investment securities
|
670,707
|
|
|
6,800
|
|
|
4.06
|
%
|
|
659,238
|
|
|
6,902
|
|
|
4.19
|
%
|
|
739,206
|
|
|
8,717
|
|
|
4.72
|
%
|
||||||
Loans (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Commercial
|
614,173
|
|
|
7,618
|
|
|
4.98
|
%
|
|
630,087
|
|
|
7,835
|
|
|
5.04
|
%
|
|
694,004
|
|
|
9,313
|
|
|
5.38
|
%
|
||||||
Real estate (4)
|
246,716
|
|
|
3,271
|
|
|
5.30
|
%
|
|
249,918
|
|
|
3,353
|
|
|
5.37
|
%
|
|
262,270
|
|
|
3,642
|
|
|
5.55
|
%
|
||||||
Consumer
|
86,731
|
|
|
1,528
|
|
|
7.07
|
%
|
|
83,419
|
|
|
1,516
|
|
|
7.37
|
%
|
|
85,736
|
|
|
1,674
|
|
|
7.83
|
%
|
||||||
Total loans
|
947,620
|
|
|
12,417
|
|
|
5.25
|
%
|
|
963,424
|
|
|
12,704
|
|
|
5.33
|
%
|
|
1,042,010
|
|
|
14,629
|
|
|
5.63
|
%
|
||||||
Less: Allowance for loan losses
|
(27,835
|
)
|
|
|
|
|
|
(28,338
|
)
|
|
|
|
|
|
(30,669
|
)
|
|
|
|
|
||||||||||||
Net loans
|
919,785
|
|
|
12,417
|
|
|
5.41
|
%
|
|
935,086
|
|
|
12,704
|
|
|
5.49
|
%
|
|
1,011,341
|
|
|
14,629
|
|
|
5.80
|
%
|
||||||
Total earning assets
|
1,599,692
|
|
|
19,222
|
|
|
4.81
|
%
|
|
1,614,528
|
|
|
19,617
|
|
|
4.89
|
%
|
|
1,784,624
|
|
|
23,367
|
|
|
5.24
|
%
|
||||||
Intangible assets
|
64,682
|
|
|
|
|
|
|
64,820
|
|
|
|
|
|
|
65,248
|
|
|
|
|
|
||||||||||||
Other assets
|
144,357
|
|
|
|
|
|
|
145,379
|
|
|
|
|
|
|
|
146,234
|
|
|
|
|
|
|
||||||||||
Total assets
|
$
|
1,808,731
|
|
|
|
|
|
|
$
|
1,824,727
|
|
|
|
|
|
|
|
$
|
1,996,106
|
|
|
|
|
|
|
|||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Savings accounts
|
$
|
137,518
|
|
|
$
|
62
|
|
|
0.18
|
%
|
|
$
|
128,784
|
|
|
$
|
55
|
|
|
0.17
|
%
|
|
$
|
121,017
|
|
|
$
|
48
|
|
|
0.16
|
%
|
Interest-bearing demand accounts
|
248,258
|
|
|
440
|
|
|
0.71
|
%
|
|
232,932
|
|
|
622
|
|
|
1.08
|
%
|
|
237,262
|
|
|
650
|
|
|
1.10
|
%
|
||||||
Money market accounts
|
264,195
|
|
|
225
|
|
|
0.34
|
%
|
|
278,664
|
|
|
245
|
|
|
0.36
|
%
|
|
294,138
|
|
|
654
|
|
|
0.89
|
%
|
||||||
Brokered deposits
|
69,747
|
|
|
570
|
|
|
3.28
|
%
|
|
81,688
|
|
|
632
|
|
|
3.14
|
%
|
|
111,222
|
|
|
761
|
|
|
2.74
|
%
|
||||||
Retail certificates of deposit
|
420,497
|
|
|
2,377
|
|
|
2.27
|
%
|
|
426,917
|
|
|
2,431
|
|
|
2.31
|
%
|
|
454,533
|
|
|
2,840
|
|
|
2.51
|
%
|
||||||
Total interest-bearing deposits
|
1,140,215
|
|
|
3,674
|
|
|
1.29
|
%
|
|
1,148,985
|
|
|
3,985
|
|
|
1.41
|
%
|
|
1,218,172
|
|
|
4,953
|
|
|
1.63
|
%
|
||||||
Borrowed Funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Short-term FHLB advances
|
2,216
|
|
|
1
|
|
|
0.11
|
%
|
|
1,401
|
|
|
1
|
|
|
0.14
|
%
|
|
—
|
|
|
—
|
|
|
—
|
%
|
||||||
Retail repurchase agreements
|
40,320
|
|
|
25
|
|
|
0.26
|
%
|
|
44,923
|
|
|
34
|
|
|
0.31
|
%
|
|
48,931
|
|
|
66
|
|
|
0.53
|
%
|
||||||
Total short-term borrowings
|
42,536
|
|
|
26
|
|
|
0.25
|
%
|
|
46,324
|
|
|
35
|
|
|
0.30
|
%
|
|
48,931
|
|
|
66
|
|
|
0.53
|
%
|
||||||
Long-term FHLB advances
|
86,771
|
|
|
754
|
|
|
3.49
|
%
|
|
88,901
|
|
|
765
|
|
|
3.49
|
%
|
|
105,058
|
|
|
929
|
|
|
3.55
|
%
|
||||||
Wholesale repurchase agreements
|
65,000
|
|
|
563
|
|
|
3.43
|
%
|
|
65,000
|
|
|
546
|
|
|
3.36
|
%
|
|
135,000
|
|
|
1,350
|
|
|
3.96
|
%
|
||||||
Other borrowings
|
22,579
|
|
|
493
|
|
|
8.64
|
%
|
|
22,570
|
|
|
492
|
|
|
8.73
|
%
|
|
22,544
|
|
|
492
|
|
|
8.64
|
%
|
||||||
Total long-term borrowings
|
174,350
|
|
|
1,810
|
|
|
4.13
|
%
|
|
176,471
|
|
|
1,803
|
|
|
4.11
|
%
|
|
262,602
|
|
|
2,771
|
|
|
4.19
|
%
|
||||||
Total borrowed funds
|
216,886
|
|
|
1,836
|
|
|
3.37
|
%
|
|
222,795
|
|
|
1,838
|
|
|
3.32
|
%
|
|
311,533
|
|
|
2,837
|
|
|
3.62
|
%
|
||||||
Total interest-bearing liabilities
|
1,357,101
|
|
|
5,510
|
|
|
1.63
|
%
|
|
1,371,780
|
|
|
5,823
|
|
|
1.72
|
%
|
|
1,529,705
|
|
|
7,790
|
|
|
2.04
|
%
|
||||||
Non-interest-bearing deposits
|
226,669
|
|
|
|
|
|
|
222,656
|
|
|
|
|
|
|
209,602
|
|
|
|
|
|
||||||||||||
Other liabilities
|
11,257
|
|
|
|
|
|
|
|
12,001
|
|
|
|
|
|
|
|
14,317
|
|
|
|
|
|
|
|||||||||
Total liabilities
|
1,595,027
|
|
|
|
|
|
|
1,606,437
|
|
|
|
|
|
|
1,753,624
|
|
|
|
|
|
||||||||||||
Preferred equity
|
17,856
|
|
|
|
|
|
|
25,245
|
|
|
|
|
|
|
38,581
|
|
|
|
|
|
||||||||||||
Common equity
|
195,848
|
|
|
|
|
|
|
|
193,045
|
|
|
|
|
|
|
|
203,901
|
|
|
|
|
|
|
|||||||||
Total stockholders’ equity
|
213,704
|
|
|
|
|
|
|
|
218,290
|
|
|
|
|
|
|
|
242,482
|
|
|
|
|
|
|
|||||||||
Total liabilities and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
stockholders’ equity
|
$
|
1,808,731
|
|
|
|
|
|
|
|
$
|
1,824,727
|
|
|
|
|
|
|
|
$
|
1,996,106
|
|
|
|
|
|
|
||||||
Interest rate spread
|
|
|
$
|
13,712
|
|
|
3.18
|
%
|
|
|
|
$
|
13,794
|
|
|
3.17
|
%
|
|
|
|
$
|
15,577
|
|
|
3.20
|
%
|
||||||
Net interest margin
|
|
3.43
|
%
|
|
|
|
|
|
3.43
|
%
|
|
|
|
|
|
3.49
|
%
|
|
For the Six Months Ended
|
||||||||||||||||||||
|
June 30, 2011
|
|
June 30, 2010
|
||||||||||||||||||
(
Dollars in thousands)
|
Average Balance
|
|
Income/ Expense
|
|
Yield/Cost
|
|
Average Balance
|
|
Income/ Expense
|
|
Yield/Cost
|
||||||||||
Short-term investments
|
$
|
14,672
|
|
|
$
|
16
|
|
|
0.22
|
%
|
|
$
|
20,772
|
|
|
$
|
25
|
|
|
0.25
|
%
|
Investment Securities (1):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Taxable
|
625,327
|
|
|
12,457
|
|
|
3.98
|
%
|
|
692,017
|
|
|
15,782
|
|
|
4.56
|
%
|
||||
Nontaxable (2)
|
39,677
|
|
|
1,245
|
|
|
6.28
|
%
|
|
61,409
|
|
|
1,938
|
|
|
6.31
|
%
|
||||
Total investment securities
|
665,004
|
|
|
13,702
|
|
|
4.12
|
%
|
|
753,426
|
|
|
17,720
|
|
|
4.71
|
%
|
||||
Loans (3):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial
|
622,086
|
|
|
15,453
|
|
|
5.01
|
%
|
|
698,918
|
|
|
18,680
|
|
|
5.39
|
%
|
||||
Real estate (4)
|
248,308
|
|
|
6,624
|
|
|
5.34
|
%
|
|
264,283
|
|
|
7,412
|
|
|
5.61
|
%
|
||||
Consumer
|
85,084
|
|
|
3,044
|
|
|
7.21
|
%
|
|
87,764
|
|
|
3,388
|
|
|
7.78
|
%
|
||||
Total loans
|
955,478
|
|
|
25,121
|
|
|
5.29
|
%
|
|
1,050,965
|
|
|
29,480
|
|
|
5.64
|
%
|
||||
Less: Allowance for loan losses
|
(28,085
|
)
|
|
|
|
|
|
(30,004
|
)
|
|
|
|
|
||||||||
Net loans
|
927,393
|
|
|
25,121
|
|
|
5.45
|
%
|
|
1,020,961
|
|
|
29,480
|
|
|
5.81
|
%
|
||||
Total earning assets
|
1,607,069
|
|
|
38,839
|
|
|
4.85
|
%
|
|
1,795,159
|
|
|
47,225
|
|
|
5.28
|
%
|
||||
Intangible assets
|
64,751
|
|
|
|
|
|
|
65,365
|
|
|
|
|
|
||||||||
Other assets
|
144,864
|
|
|
|
|
|
|
144,111
|
|
|
|
|
|
||||||||
Total assets
|
$
|
1,816,684
|
|
|
|
|
|
|
$
|
2,004,635
|
|
|
|
|
|
||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Savings accounts
|
$
|
133,175
|
|
|
$
|
117
|
|
|
0.18
|
%
|
|
$
|
118,807
|
|
|
$
|
95
|
|
|
0.16
|
%
|
Interest-bearing demand accounts
|
240,637
|
|
|
1,062
|
|
|
0.89
|
%
|
|
233,467
|
|
|
1,311
|
|
|
1.13
|
%
|
||||
Money market accounts
|
271,390
|
|
|
470
|
|
|
0.35
|
%
|
|
283,910
|
|
|
1,311
|
|
|
0.93
|
%
|
||||
Brokered deposits
|
75,685
|
|
|
1,202
|
|
|
3.20
|
%
|
|
108,726
|
|
|
1,564
|
|
|
2.90
|
%
|
||||
Retail certificates of deposit
|
423,689
|
|
|
4,808
|
|
|
2.29
|
%
|
|
464,773
|
|
|
5,816
|
|
|
2.52
|
%
|
||||
Total interest-bearing deposits
|
1,144,576
|
|
|
7,659
|
|
|
1.35
|
%
|
|
1,209,683
|
|
|
10,097
|
|
|
1.68
|
%
|
||||
Borrowed Funds:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Short-term FHLB advances
|
1,811
|
|
|
2
|
|
|
0.12
|
%
|
|
17,072
|
|
|
10
|
|
|
0.11
|
%
|
||||
Retail repurchase agreements
|
42,609
|
|
|
59
|
|
|
0.28
|
%
|
|
50,363
|
|
|
137
|
|
|
0.54
|
%
|
||||
Total short-term borrowings
|
44,420
|
|
|
61
|
|
|
0.27
|
%
|
|
67,435
|
|
|
147
|
|
|
0.43
|
%
|
||||
Long-term FHLB advances
|
87,830
|
|
|
1,518
|
|
|
3.49
|
%
|
|
104,320
|
|
|
1,837
|
|
|
3.55
|
%
|
||||
Wholesale repurchase agreements
|
65,000
|
|
|
1,109
|
|
|
3.39
|
%
|
|
137,099
|
|
|
2,735
|
|
|
3.97
|
%
|
||||
Other borrowings
|
22,574
|
|
|
985
|
|
|
8.68
|
%
|
|
22,539
|
|
|
990
|
|
|
8.74
|
%
|
||||
Total long-term borrowings
|
175,404
|
|
|
3,612
|
|
|
4.12
|
%
|
|
263,958
|
|
|
5,562
|
|
|
4.21
|
%
|
||||
Total borrowed funds
|
219,824
|
|
|
3,673
|
|
|
3.34
|
%
|
|
331,393
|
|
|
5,709
|
|
|
3.44
|
%
|
||||
Total interest-bearing liabilities
|
1,364,400
|
|
|
11,332
|
|
|
1.67
|
%
|
|
1,541,076
|
|
|
15,806
|
|
|
2.06
|
%
|
||||
Non-interest-bearing deposits
|
224,674
|
|
|
|
|
|
|
206,398
|
|
|
|
|
|
||||||||
Other liabilities
|
11,626
|
|
|
|
|
|
|
14,008
|
|
|
|
|
|
||||||||
Total liabilities
|
1,600,700
|
|
|
|
|
|
|
1,761,482
|
|
|
|
|
|
||||||||
Preferred equity
|
21,530
|
|
|
|
|
|
|
38,568
|
|
|
|
|
|
||||||||
Common equity
|
194,454
|
|
|
|
|
|
|
204,585
|
|
|
|
|
|
||||||||
Total stockholders’ equity
|
215,984
|
|
|
|
|
|
|
243,153
|
|
|
|
|
|
||||||||
Total liabilities and
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
stockholders’ equity
|
$
|
1,816,684
|
|
|
|
|
|
|
$
|
2,004,635
|
|
|
|
|
|
||||||
Interest rate spread
|
|
|
$
|
27,507
|
|
|
3.18
|
%
|
|
|
|
$
|
31,419
|
|
|
3.22
|
%
|
||||
Net interest margin
|
|
3.43
|
%
|
|
|
|
|
|
3.51
|
%
|
(1)
|
Average balances are based on carrying value.
|
(2)
|
Interest income and yields are presented on a fully tax-equivalent basis using a 35% federal statutory tax rate.
|
(3)
|
Nonaccrual and impaired loans are included in the average loan balances. Related interest income earned on nonaccrual loans prior to the loans being placed on nonaccrual is included in loan interest income. Loan fees included in interest income were immaterial for all periods presented.
|
(4)
|
Loans held for sale are included in the average loan balance listed. Related interest income on loans originated for sale prior to the loan being sold is included in loan interest income.
|
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||||||
|
June 30,
2011 |
March 31,
2011 |
June 30,
2010 |
|
June 30,
2011 |
June 30,
2010 |
||||||||||
(Dollars in thousands)
|
|
|||||||||||||||
Net interest income, as reported
|
$
|
13,431
|
|
$
|
13,495
|
|
$
|
15,173
|
|
|
$
|
26,926
|
|
$
|
30,614
|
|
Taxable equivalent adjustments
|
281
|
|
299
|
|
404
|
|
|
581
|
|
805
|
|
|||||
Fully tax-equivalent net interest income
|
$
|
13,712
|
|
$
|
13,794
|
|
$
|
15,577
|
|
|
$
|
27,507
|
|
$
|
31,419
|
|
|
Three Months Ended June 30, 2011 Compared to
|
|
Six Months Ended June 30, 2011 Compared to
|
||||||||||||||||||||||||||
(Dollars in thousands)
|
March 31, 2011
|
|
June 30, 2010
|
|
June 30, 2010
|
||||||||||||||||||||||||
Increase (decrease) in:
|
Rate
|
Volume
|
Total
(1)
|
|
Rate
|
Volume
|
Total
(1)
|
|
Rate
|
Volume
|
Total
(1)
|
||||||||||||||||||
INTEREST INCOME:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Short-term investments
|
$
|
(1
|
)
|
$
|
(5
|
)
|
$
|
(6
|
)
|
|
$
|
(3
|
)
|
$
|
(13
|
)
|
$
|
(16
|
)
|
|
$
|
(3
|
)
|
$
|
(6
|
)
|
$
|
(9
|
)
|
Investment Securities:
(2)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Taxable
|
(667
|
)
|
628
|
|
(39
|
)
|
|
(1,055
|
)
|
(502
|
)
|
(1,557
|
)
|
|
(1,886
|
)
|
(1,439
|
)
|
(3,325
|
)
|
|||||||||
Nontaxable
|
(12
|
)
|
(51
|
)
|
(63
|
)
|
|
(15
|
)
|
(345
|
)
|
(360
|
)
|
|
(10
|
)
|
(683
|
)
|
(693
|
)
|
|||||||||
Total investment income
|
(679
|
)
|
577
|
|
(102
|
)
|
|
(1,070
|
)
|
(847
|
)
|
(1,917
|
)
|
|
(1,896
|
)
|
(2,122
|
)
|
(4,018
|
)
|
|||||||||
Loans
:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Commercial
|
(73
|
)
|
(144
|
)
|
(217
|
)
|
|
(670
|
)
|
(1,025
|
)
|
(1,695
|
)
|
|
(1,262
|
)
|
(1,965
|
)
|
(3,227
|
)
|
|||||||||
Real estate
|
(40
|
)
|
(42
|
)
|
(82
|
)
|
|
(159
|
)
|
(212
|
)
|
(371
|
)
|
|
(353
|
)
|
(435
|
)
|
(788
|
)
|
|||||||||
Consumer
|
(242
|
)
|
254
|
|
12
|
|
|
(270
|
)
|
124
|
|
(146
|
)
|
|
(242
|
)
|
(102
|
)
|
(344
|
)
|
|||||||||
Total loan income
|
(355
|
)
|
68
|
|
(287
|
)
|
|
(1,099
|
)
|
(1,113
|
)
|
(2,212
|
)
|
|
(1,857
|
)
|
(2,502
|
)
|
(4,359
|
)
|
|||||||||
Total interest income
|
(1,035
|
)
|
640
|
|
(395
|
)
|
|
(2,172
|
)
|
(1,973
|
)
|
(4,145
|
)
|
|
(3,756
|
)
|
(4,630
|
)
|
(8,386
|
)
|
|||||||||
INTEREST EXPENSE:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Savings accounts
|
3
|
|
4
|
|
7
|
|
|
7
|
|
7
|
|
14
|
|
|
10
|
|
12
|
|
22
|
|
|||||||||
Interest-bearing demand accounts
|
(430
|
)
|
248
|
|
(182
|
)
|
|
(400
|
)
|
190
|
|
(210
|
)
|
|
(359
|
)
|
110
|
|
(249
|
)
|
|||||||||
Money market accounts
|
(9
|
)
|
(11
|
)
|
(20
|
)
|
|
(368
|
)
|
(61
|
)
|
(429
|
)
|
|
(786
|
)
|
(55
|
)
|
(841
|
)
|
|||||||||
Brokered certificates of deposit
|
159
|
|
(221
|
)
|
(62
|
)
|
|
715
|
|
(906
|
)
|
(191
|
)
|
|
396
|
|
(758
|
)
|
(362
|
)
|
|||||||||
Retail certificates of deposit
|
(30
|
)
|
(24
|
)
|
(54
|
)
|
|
(259
|
)
|
(204
|
)
|
(463
|
)
|
|
(516
|
)
|
(492
|
)
|
(1,008
|
)
|
|||||||||
Total deposit cost
|
(307
|
)
|
(4
|
)
|
(311
|
)
|
|
(305
|
)
|
(974
|
)
|
(1,279
|
)
|
|
(1,255
|
)
|
(1,183
|
)
|
(2,438
|
)
|
|||||||||
Borrowed funds:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Short-term borrowings
|
(7
|
)
|
(2
|
)
|
(9
|
)
|
|
(31
|
)
|
(9
|
)
|
(40
|
)
|
|
(56
|
)
|
(30
|
)
|
(86
|
)
|
|||||||||
Long-term borrowings
|
26
|
|
(19
|
)
|
7
|
|
|
(179
|
)
|
(782
|
)
|
(961
|
)
|
|
(393
|
)
|
(1,557
|
)
|
(1,950
|
)
|
|||||||||
Total borrowed funds cost
|
19
|
|
(21
|
)
|
(2
|
)
|
|
(210
|
)
|
(791
|
)
|
(1,001
|
)
|
|
(449
|
)
|
(1,587
|
)
|
(2,036
|
)
|
|||||||||
Total interest expense
|
(288
|
)
|
(25
|
)
|
(313
|
)
|
|
(515
|
)
|
(1,765
|
)
|
(2,280
|
)
|
|
(1,704
|
)
|
(2,770
|
)
|
(4,474
|
)
|
|||||||||
Net interest income
|
$
|
(747
|
)
|
$
|
665
|
|
$
|
(82
|
)
|
|
$
|
(1,657
|
)
|
$
|
(208
|
)
|
$
|
(1,865
|
)
|
|
$
|
(2,052
|
)
|
$
|
(1,860
|
)
|
$
|
(3,912
|
)
|
(1)
|
The change in interest due to both rate and volume has been allocated to rate and volume changes in proportion to the relationship of the dollar amounts of the change in each.
|
(2)
|
Presented on a fully tax-equivalent basis.
|
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||||||
|
June 30,
2011 |
March 31,
2011 |
June 30,
2010 |
|
June 30,
2011 |
June 30,
2010 |
||||||||||
(Dollars in thousands)
|
|
|||||||||||||||
Provision for checking account overdrafts
|
$
|
95
|
|
$
|
11
|
|
$
|
179
|
|
|
$
|
106
|
|
$
|
199
|
|
Provision for other loan losses
|
2,200
|
|
5,300
|
|
5,279
|
|
|
7,500
|
|
11,760
|
|
|||||
Total provision for loan losses
|
$
|
2,295
|
|
$
|
5,311
|
|
$
|
5,458
|
|
|
$
|
7,606
|
|
$
|
11,959
|
|
As a percentage of average gross loans (a)
|
0.97
|
%
|
2.24
|
%
|
2.10
|
%
|
|
1.61
|
%
|
2.29
|
%
|
|||||
(a) Presented on an annualized basis
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||||||
|
June 30,
2011 |
March 31,
2011 |
June 30,
2010 |
|
June 30,
2011 |
June 30,
2010 |
||||||||||
(Dollars in thousands)
|
|
|||||||||||||||
Net (loss) gain on OREO
|
$
|
(1,002
|
)
|
$
|
57
|
|
$
|
(1,261
|
)
|
|
$
|
(945
|
)
|
$
|
(1,231
|
)
|
Gain (loss) on loans held-for-sale
|
468
|
|
—
|
|
(93
|
)
|
|
468
|
|
(93
|
)
|
|||||
Net (loss) gain on asset disposals
|
(22
|
)
|
3
|
|
6
|
|
|
(19
|
)
|
(7
|
)
|
|||||
Net other (losses) gains
|
$
|
(556
|
)
|
$
|
60
|
|
$
|
(1,348
|
)
|
|
$
|
(496
|
)
|
$
|
(1,331
|
)
|
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||||||
|
June 30,
2011 |
March 31,
2011 |
June 30,
2010 |
|
June 30,
2011 |
June 30,
2010 |
||||||||||
(Dollars in thousands)
|
|
|||||||||||||||
Overdraft and non-sufficient funds fees
|
$
|
2,070
|
|
$
|
1,718
|
|
$
|
2,202
|
|
|
$
|
3,788
|
|
$
|
4,110
|
|
Account maintenance fees
|
353
|
|
253
|
|
217
|
|
|
606
|
|
408
|
|
|||||
Other fees and charges
|
31
|
|
203
|
|
38
|
|
|
234
|
|
237
|
|
|||||
Total deposit account service charges
|
$
|
2,454
|
|
$
|
2,174
|
|
$
|
2,457
|
|
|
$
|
4,628
|
|
$
|
4,755
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||||||
|
June 30,
2011 |
March 31,
2011 |
June 30,
2010 |
|
June 30,
2011 |
June 30,
2010 |
||||||||||
(Dollars in thousands)
|
|
|||||||||||||||
Property and casualty insurance commissions
|
$
|
1,949
|
|
$
|
1,678
|
|
$
|
2,014
|
|
|
$
|
3,627
|
|
$
|
3,698
|
|
Performance-based commissions
|
1
|
|
943
|
|
—
|
|
|
944
|
|
585
|
|
|||||
Life and health insurance commissions
|
125
|
|
161
|
|
141
|
|
|
286
|
|
262
|
|
|||||
Credit life and A&H insurance commissions
|
43
|
|
30
|
|
35
|
|
|
73
|
|
48
|
|
|||||
Other fees and charges
|
47
|
|
20
|
|
71
|
|
|
67
|
|
79
|
|
|||||
Total insurance income
|
$
|
2,165
|
|
$
|
2,832
|
|
$
|
2,261
|
|
|
$
|
4,997
|
|
$
|
4,672
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||||||
|
June 30,
2011 |
March 31,
2011 |
June 30,
2010 |
|
June 30,
2011 |
June 30,
2010 |
||||||||||
(Dollars in thousands)
|
|
|||||||||||||||
Fiduciary
|
$
|
1,103
|
|
$
|
1,039
|
|
$
|
971
|
|
|
$
|
2,142
|
|
$
|
2,289
|
|
Brokerage
|
306
|
|
286
|
|
238
|
|
|
592
|
|
476
|
|
|||||
Total trust and investment income
|
$
|
1,409
|
|
$
|
1,325
|
|
$
|
1,209
|
|
|
$
|
2,734
|
|
$
|
2,765
|
|
|
June 30,
2011 |
March 31,
2011 |
December 31,
2010 |
September 30,
2010 |
June 30,
2010 |
||||||||||
(Dollars in thousands)
|
|||||||||||||||
Trust assets under management
|
$
|
846,052
|
|
$
|
852,972
|
|
$
|
836,587
|
|
$
|
795,335
|
|
$
|
742,044
|
|
Brokerage assets under management
|
265,384
|
|
260,134
|
|
256,579
|
|
233,308
|
|
214,421
|
|
|||||
Total managed assets
|
$
|
1,111,436
|
|
$
|
1,113,106
|
|
$
|
1,093,166
|
|
$
|
1,028,643
|
|
$
|
956,465
|
|
Quarterly average
|
$
|
1,119,484
|
|
$
|
1,105,329
|
|
$
|
1,055,936
|
|
$
|
998,307
|
|
$
|
986,794
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||||||
|
June 30,
2011 |
March 31,
2011 |
June 30,
2010 |
|
June 30,
2011 |
June 30,
2010 |
||||||||||
(Dollars in thousands)
|
|
|||||||||||||||
Base salaries and wages
|
$
|
5,116
|
|
$
|
5,276
|
|
$
|
5,063
|
|
|
$
|
10,392
|
|
$
|
10,119
|
|
Sales-based and incentive compensation
|
1,172
|
|
986
|
|
891
|
|
|
2,077
|
|
1,603
|
|
|||||
Employee benefits
|
1,235
|
|
945
|
|
1,318
|
|
|
2,180
|
|
2,654
|
|
|||||
Stock-based compensation
|
63
|
|
33
|
|
25
|
|
|
96
|
|
51
|
|
|||||
Deferred personnel costs
|
(333
|
)
|
(292
|
)
|
(286
|
)
|
|
(625
|
)
|
(568
|
)
|
|||||
Payroll taxes and other employment costs
|
700
|
|
679
|
|
485
|
|
|
1,460
|
|
1,014
|
|
|||||
Total salaries and employee benefit costs
|
$
|
7,953
|
|
$
|
7,627
|
|
$
|
7,496
|
|
|
$
|
15,580
|
|
$
|
14,873
|
|
Full-time equivalent employees:
|
|
|
|
|
|
|
||||||||||
Actual at end of period
|
537
|
|
543
|
|
527
|
|
|
537
|
|
527
|
|
|||||
Average during the period
|
537
|
|
538
|
|
530
|
|
|
537
|
|
531
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||||||
|
June 30,
2011 |
March 31,
2011 |
June 30,
2010 |
|
June 30,
2011 |
June 30,
2010 |
||||||||||
(Dollars in thousands)
|
|
|||||||||||||||
Depreciation
|
$
|
505
|
|
$
|
489
|
|
$
|
499
|
|
|
$
|
995
|
|
$
|
991
|
|
Repairs and maintenance costs
|
398
|
|
416
|
|
373
|
|
|
814
|
|
829
|
|
|||||
Net rent expense
|
221
|
|
225
|
|
219
|
|
|
447
|
|
441
|
|
|||||
Property taxes, utilities and other costs
|
348
|
|
371
|
|
349
|
|
|
717
|
|
697
|
|
|||||
Total net occupancy and equipment expense
|
$
|
1,472
|
|
$
|
1,501
|
|
$
|
1,440
|
|
|
$
|
2,973
|
|
$
|
2,958
|
|
(Dollars in thousands)
|
June 30,
2011 |
March 31,
2011 |
December 31,
2010 |
September 30,
2010 |
June 30,
2010 |
||||||||||
Fair value:
|
|
|
|
|
|
||||||||||
Obligations of:
|
|
|
|
|
|
||||||||||
U.S. Treasury and government agencies
|
$
|
36
|
|
$
|
38
|
|
$
|
39
|
|
$
|
60
|
|
$
|
62
|
|
U.S. government sponsored agencies
|
12,321
|
|
12,084
|
|
12,262
|
|
13,005
|
|
1,245
|
|
|||||
States and political subdivisions
|
38,091
|
|
38,401
|
|
47,379
|
|
51,288
|
|
58,682
|
|
|||||
Residential mortgage-backed securities
|
540,931
|
|
523,844
|
|
507,534
|
|
485,663
|
|
548,455
|
|
|||||
Commercial mortgage-backed securities
|
35,288
|
|
41,189
|
|
30,700
|
|
44,854
|
|
25,319
|
|
|||||
U.S. government-backed student loan pools
|
—
|
|
—
|
|
—
|
|
—
|
|
47,202
|
|
|||||
Bank-issued trust preferred securities
|
13,385
|
|
13,266
|
|
12,984
|
|
12,904
|
|
12,599
|
|
|||||
Equity securities
|
3,546
|
|
3,318
|
|
3,088
|
|
3,009
|
|
2,905
|
|
|||||
Total fair value
|
$
|
643,598
|
|
$
|
632,140
|
|
$
|
613,986
|
|
$
|
610,783
|
|
$
|
696,469
|
|
Total amortized cost
|
$
|
638,667
|
|
$
|
635,218
|
|
$
|
617,121
|
|
$
|
608,427
|
|
$
|
685,382
|
|
Net unrealized gain (loss)
|
$
|
4,931
|
|
$
|
(3,078
|
)
|
$
|
(3,135
|
)
|
$
|
2,356
|
|
$
|
11,087
|
|
(Dollars in thousands)
|
June 30,
2011 |
March 31,
2011 |
December 31,
2010 |
September 30,
2010 |
June 30,
2010 |
||||||||||
Residential
|
$
|
87,697
|
|
$
|
101,760
|
|
$
|
113,559
|
|
$
|
141,779
|
|
$
|
156,962
|
|
Commercial
|
1,663
|
|
2,734
|
|
26,090
|
|
23,749
|
|
25,319
|
|
|||||
Total fair value
|
$
|
89,360
|
|
$
|
104,494
|
|
$
|
139,649
|
|
$
|
165,528
|
|
$
|
182,281
|
|
Total amortized cost
|
$
|
86,747
|
|
$
|
102,295
|
|
$
|
136,997
|
|
$
|
162,066
|
|
$
|
181,727
|
|
Net unrealized gain
|
$
|
2,613
|
|
$
|
2,199
|
|
$
|
2,652
|
|
$
|
3,462
|
|
$
|
554
|
|
(Dollars in thousands)
|
June 30,
2011 |
March 31,
2011 |
December 31,
2010 |
September 30,
2010 |
June 30,
2010 |
||||||||||
Gross portfolio loans:
|
|
|
|
|
|
||||||||||
Commercial real estate
|
$
|
430,832
|
|
$
|
438,224
|
|
$
|
452,875
|
|
$
|
454,499
|
|
$
|
471,046
|
|
Commercial and industrial
|
148,254
|
|
147,386
|
|
153,192
|
|
178,014
|
|
165,916
|
|
|||||
Real estate construction
|
28,136
|
|
32,839
|
|
22,478
|
|
39,621
|
|
36,490
|
|
|||||
Residential real estate
|
196,428
|
|
197,513
|
|
200,275
|
|
205,125
|
|
207,314
|
|
|||||
Home equity lines of credit
|
47,784
|
|
47,906
|
|
48,130
|
|
49,435
|
|
50,259
|
|
|||||
Consumer
|
86,540
|
|
82,521
|
|
81,567
|
|
82,894
|
|
83,735
|
|
|||||
Deposit account overdrafts
|
2,145
|
|
1,640
|
|
2,201
|
|
1,291
|
|
1,346
|
|
|||||
Total portfolio loans
|
$
|
940,119
|
|
$
|
948,029
|
|
$
|
960,718
|
|
$
|
1,010,879
|
|
$
|
1,016,106
|
|
Percent of loans to total loans:
|
|
|
|
|
|
||||||||||
Commercial real estate
|
45.8
|
%
|
46.2
|
%
|
47.1
|
%
|
45.0
|
%
|
46.4
|
%
|
|||||
Commercial and industrial
|
15.8
|
%
|
15.5
|
%
|
15.9
|
%
|
17.6
|
%
|
16.3
|
%
|
|||||
Real estate construction
|
3.0
|
%
|
3.5
|
%
|
2.3
|
%
|
3.9
|
%
|
3.6
|
%
|
|||||
Residential real estate
|
20.9
|
%
|
20.8
|
%
|
20.8
|
%
|
20.3
|
%
|
20.4
|
%
|
|||||
Home equity lines of credit
|
5.1
|
%
|
5.1
|
%
|
5.0
|
%
|
4.9
|
%
|
4.9
|
%
|
|||||
Consumer
|
9.2
|
%
|
8.7
|
%
|
8.7
|
%
|
8.2
|
%
|
8.3
|
%
|
|||||
Deposit account overdrafts
|
0.2
|
%
|
0.2
|
%
|
0.2
|
%
|
0.1
|
%
|
0.1
|
%
|
|||||
Total percentage
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
|||||
|
|
|
|
|
|
||||||||||
Residential real estate loans being serviced for others
|
$
|
259,352
|
|
$
|
258,626
|
|
$
|
250,630
|
|
$
|
235,538
|
|
$
|
234,134
|
|
(Dollars in thousands)
|
Outstanding Balance
|
Loan Commitments
|
Total Exposure
|
% of Total
|
|||||||
Commercial Real Estate Loans:
|
|
|
|
|
|||||||
Lodging and lodging related
|
$
|
67,348
|
|
$
|
170
|
|
$
|
67,518
|
|
15.4
|
%
|
Apartment complexes
|
55,231
|
|
548
|
|
55,779
|
|
12.7
|
%
|
|||
Office buildings and complexes:
|
|
|
|
|
|||||||
Owner occupied
|
6,593
|
|
251
|
|
6,844
|
|
1.6
|
%
|
|||
Non-owner occupied
|
28,900
|
|
122
|
|
29,022
|
|
6.6
|
%
|
|||
Total office buildings and complexes
|
35,493
|
|
373
|
|
35,866
|
|
8.2
|
%
|
|||
Retail facilities:
|
|
|
|
|
|||||||
Owner occupied
|
11,153
|
|
1
|
|
11,154
|
|
2.5
|
%
|
|||
Non-owner occupied
|
23,518
|
|
361
|
|
23,879
|
|
5.5
|
%
|
|||
Total retail facilities
|
34,671
|
|
362
|
|
35,033
|
|
8.0
|
%
|
|||
Residential property:
|
|
|
|
|
|||||||
Owner occupied
|
3,216
|
|
515
|
|
3,731
|
|
0.9
|
%
|
|||
Non-owner occupied
|
26,805
|
|
85
|
|
26,890
|
|
6.1
|
%
|
|||
Total residential property
|
30,021
|
|
600
|
|
30,621
|
|
7.0
|
%
|
|||
Light industrial facilities:
|
|
|
|
|
|||||||
Owner occupied
|
19,616
|
|
90
|
|
19,706
|
|
4.5
|
%
|
|||
Non-owner occupied
|
11,139
|
|
—
|
|
11,139
|
|
2.5
|
%
|
|||
Total light industrial facilities
|
30,755
|
|
90
|
|
30,845
|
|
7.0
|
%
|
|||
Assisted living facilities and nursing homes
|
30,448
|
|
—
|
|
30,448
|
|
7.0
|
%
|
|||
Mixed commerical use facilities:
|
|
|
|
|
|||||||
Owner occupied
|
8,607
|
|
104
|
|
8,711
|
|
2.0
|
%
|
|||
Non-owner occupied
|
14,867
|
|
11
|
|
14,878
|
|
3.4
|
%
|
|||
Total mixed commercial use facilities
|
23,474
|
|
115
|
|
23,589
|
|
5.4
|
%
|
|||
Day care facilities
|
18,528
|
|
—
|
|
18,528
|
|
4.2
|
%
|
|||
Other
|
104,863
|
|
4,451
|
|
109,314
|
|
25.0
|
%
|
|||
Total commercial real estate
|
$
|
430,832
|
|
$
|
6,709
|
|
$
|
437,541
|
|
100.0
|
%
|
Real Estate Construction Loans:
|
|
|
|
|
|||||||
Health care facilities
|
$
|
2,855
|
|
$
|
9,681
|
|
$
|
12,536
|
|
28.4
|
%
|
Assisted living facilities and nursing homes
|
8,809
|
|
2,114
|
|
10,923
|
|
24.7
|
%
|
|||
Mixed commercial use facilities - non-owner occupied
|
5,969
|
|
404
|
|
6,373
|
|
14.4
|
%
|
|||
Restuarants
|
692
|
|
2,737
|
|
3,429
|
|
7.8
|
%
|
|||
Day care facilities
|
2,969
|
|
—
|
|
2,969
|
|
6.7
|
%
|
|||
Other
|
6,842
|
|
1,090
|
|
7,932
|
|
18.0
|
%
|
|||
Total real estate construction
|
$
|
28,136
|
|
$
|
16,026
|
|
$
|
44,162
|
|
100.0
|
%
|
(Dollars in thousands)
|
June 30,
2011 |
March 31,
2011 |
December 31,
2010 |
September 30,
2010 |
June 30,
2010 |
||||||||||
Commercial real estate
|
$
|
19,361
|
|
$
|
19,613
|
|
$
|
21,806
|
|
$
|
21,382
|
|
$
|
20,198
|
|
Commercial and industrial
|
3,069
|
|
1,734
|
|
2,160
|
|
2,826
|
|
3,954
|
|
|||||
Residential real estate
|
1,187
|
|
1,642
|
|
1,400
|
|
1,414
|
|
1,359
|
|
|||||
Home equity lines of credit
|
552
|
|
444
|
|
431
|
|
497
|
|
534
|
|
|||||
Consumer
|
783
|
|
790
|
|
721
|
|
830
|
|
872
|
|
|||||
Deposit account overdrafts
|
214
|
|
226
|
|
248
|
|
261
|
|
251
|
|
|||||
Total allowance for loan losses
|
$
|
25,166
|
|
$
|
24,449
|
|
$
|
26,766
|
|
$
|
27,210
|
|
$
|
27,168
|
|
As a percentage of total loans
|
2.68
|
%
|
2.58
|
%
|
2.79
|
%
|
2.68
|
%
|
2.66
|
%
|
|
Three Months Ended
|
||||||||||||||
|
June 30,
2011 |
March 31,
2011 |
December 31,
2010 |
September 30,
2010 |
June 30,
2010 |
||||||||||
(Dollars in thousands)
|
|||||||||||||||
Gross charge-offs:
|
|
|
|
|
|
||||||||||
Commercial real estate
|
$
|
2,197
|
|
$
|
7,078
|
|
$
|
6,913
|
|
$
|
7,557
|
|
$
|
4,676
|
|
Commercial and industrial
|
102
|
|
835
|
|
109
|
|
97
|
|
157
|
|
|||||
Residential real estate
|
756
|
|
201
|
|
400
|
|
382
|
|
145
|
|
|||||
Real estate construction
|
—
|
|
—
|
|
—
|
|
—
|
|
68
|
|
|||||
Home equity lines of credit
|
83
|
|
247
|
|
72
|
|
40
|
|
6
|
|
|||||
Consumer
|
175
|
|
283
|
|
236
|
|
247
|
|
242
|
|
|||||
Deposit account overdrafts
|
157
|
|
136
|
|
194
|
|
282
|
|
223
|
|
|||||
Total gross charge-offs
|
3,470
|
|
8,780
|
|
7,924
|
|
8,605
|
|
5,517
|
|
|||||
Recoveries:
|
|
|
|
|
|
||||||||||
Commercial real estate
|
1,045
|
|
315
|
|
187
|
|
355
|
|
275
|
|
|||||
Commercial and industrial
|
487
|
|
59
|
|
48
|
|
28
|
|
119
|
|
|||||
Residential real estate
|
126
|
|
443
|
|
111
|
|
28
|
|
68
|
|
|||||
Real estate construction
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||
Home equity lines of credit
|
16
|
|
10
|
|
7
|
|
2
|
|
1
|
|
|||||
Consumer
|
168
|
|
222
|
|
127
|
|
156
|
|
153
|
|
|||||
Deposit account overdrafts
|
50
|
|
103
|
|
48
|
|
73
|
|
58
|
|
|||||
Total recoveries
|
1,892
|
|
1,152
|
|
528
|
|
642
|
|
674
|
|
|||||
Net charge-offs (recoveries):
|
|
|
|
|
|
||||||||||
Commercial real estate
|
1,152
|
|
6,763
|
|
6,726
|
|
7,202
|
|
4,401
|
|
|||||
Commercial and industrial
|
(385
|
)
|
776
|
|
61
|
|
69
|
|
38
|
|
|||||
Residential real estate
|
630
|
|
(242
|
)
|
289
|
|
354
|
|
77
|
|
|||||
Real estate construction
|
—
|
|
—
|
|
—
|
|
—
|
|
68
|
|
|||||
Home equity lines of credit
|
67
|
|
237
|
|
65
|
|
38
|
|
5
|
|
|||||
Consumer
|
7
|
|
61
|
|
109
|
|
91
|
|
89
|
|
|||||
Deposit account overdrafts
|
107
|
|
33
|
|
146
|
|
209
|
|
165
|
|
|||||
Total net charge-offs
|
$
|
1,578
|
|
$
|
7,628
|
|
$
|
7,396
|
|
$
|
7,963
|
|
$
|
4,843
|
|
Ratio of net charge-offs to average loans
(annualized)
:
|
|
|
|
||||||||||||
Commercial real estate
|
0.49
|
%
|
2.84
|
%
|
2.72
|
%
|
2.81
|
%
|
1.70
|
%
|
|||||
Commercial and industrial
|
(0.16
|
)%
|
0.33
|
%
|
0.02
|
%
|
0.03
|
%
|
0.01
|
%
|
|||||
Residential real estate
|
0.27
|
%
|
(0.10
|
)%
|
0.12
|
%
|
0.14
|
%
|
0.03
|
%
|
|||||
Real estate construction
|
—
|
%
|
—
|
%
|
—
|
%
|
—
|
%
|
0.03
|
%
|
|||||
Home equity lines of credit
|
0.03
|
%
|
0.10
|
%
|
0.02
|
%
|
0.01
|
%
|
—
|
%
|
|||||
Consumer
|
—
|
%
|
0.03
|
%
|
0.04
|
%
|
0.04
|
%
|
0.03
|
%
|
|||||
Deposit account overdrafts
|
0.04
|
%
|
0.01
|
%
|
0.01
|
%
|
0.08
|
%
|
0.06
|
%
|
|||||
Total
|
0.67
|
%
|
3.21
|
%
|
2.93
|
%
|
3.11
|
%
|
1.86
|
%
|
(Dollars in thousands)
|
June 30,
2011 |
March 31,
2011 |
December 31,
2010 |
September 30,
2010 |
June 30,
2010 |
||||||||||
Loans 90+ days past due and accruing:
|
|
|
|
|
|
||||||||||
Commercial real estate
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
459
|
|
Commercial and industrial
|
—
|
|
37
|
|
—
|
|
31
|
|
—
|
|
|||||
Residential real estate
|
124
|
|
—
|
|
27
|
|
—
|
|
22
|
|
|||||
Total
|
124
|
|
37
|
|
27
|
|
31
|
|
481
|
|
|||||
Nonaccrual loans:
|
|
|
|
|
|
||||||||||
Commercial real estate
|
27,455
|
|
27,934
|
|
34,392
|
|
30,083
|
|
29,676
|
|
|||||
Commercial and industrial
|
1,325
|
|
1,536
|
|
1,714
|
|
2,051
|
|
2,877
|
|
|||||
Residential real estate
|
2,358
|
|
2,491
|
|
3,790
|
|
4,481
|
|
4,933
|
|
|||||
Home equity
|
283
|
|
361
|
|
554
|
|
562
|
|
564
|
|
|||||
Consumer
|
—
|
|
—
|
|
—
|
|
7
|
|
—
|
|
|||||
Total
|
31,421
|
|
32,322
|
|
40,450
|
|
37,184
|
|
38,050
|
|
|||||
Total nonperforming loans (NPLs)
|
31,545
|
|
32,359
|
|
40,477
|
|
37,215
|
|
38,531
|
|
|||||
Other real estate owned (OREO)
|
|
|
|
|
|
||||||||||
Commercial
|
3,546
|
|
4,220
|
|
4,280
|
|
4,305
|
|
4,752
|
|
|||||
Residential
|
—
|
|
180
|
|
215
|
|
30
|
|
140
|
|
|||||
Total
|
3,546
|
|
4,400
|
|
4,495
|
|
4,335
|
|
4,892
|
|
|||||
Total nonperforming assets (NPAs)
|
$
|
35,091
|
|
$
|
36,759
|
|
$
|
44,972
|
|
$
|
41,550
|
|
$
|
43,423
|
|
NPLs as a percent of total loans
|
3.35
|
%
|
3.41
|
%
|
4.19
|
%
|
3.67
|
%
|
3.77
|
%
|
|||||
NPAs as a percent of total assets
|
1.95
|
%
|
2.04
|
%
|
2.45
|
%
|
2.21
|
%
|
2.21
|
%
|
|||||
NPAs as a percent of gross loans and OREO
|
3.71
|
%
|
3.85
|
%
|
4.64
|
%
|
4.08
|
%
|
4.23
|
%
|
|||||
Allowance for loan losses as a percent of NPLs
|
79.78
|
%
|
75.56
|
%
|
66.10
|
%
|
73.10
|
%
|
70.50
|
%
|
(Dollars in thousands)
|
June 30,
2011 |
March 31,
2011 |
December 31,
2010 |
September 30,
2010 |
June 30,
2010 |
||||||||||
Interest-bearing deposits:
|
|
|
|
|
|
||||||||||
Retail certificates of deposit
|
$
|
421,167
|
|
$
|
420,828
|
|
$
|
430,886
|
|
$
|
436,250
|
|
$
|
448,900
|
|
Money market deposit accounts
|
264,677
|
|
270,574
|
|
289,657
|
|
297,229
|
|
290,477
|
|
|||||
Governmental/public funds
|
150,319
|
|
149,961
|
|
119,572
|
|
139,843
|
|
136,119
|
|
|||||
Savings accounts
|
133,352
|
|
132,323
|
|
122,444
|
|
120,975
|
|
120,086
|
|
|||||
Interest-bearing demand accounts
|
99,324
|
|
97,561
|
|
96,507
|
|
92,585
|
|
94,542
|
|
|||||
Total retail interest-bearing deposits
|
1,068,839
|
|
1,071,247
|
|
1,059,066
|
|
1,086,882
|
|
1,090,124
|
|
|||||
Brokered certificates of deposits
|
67,912
|
|
70,522
|
|
87,465
|
|
95,862
|
|
105,093
|
|
|||||
Total interest-bearing deposits
|
1,136,751
|
|
1,141,769
|
|
1,146,531
|
|
1,182,744
|
|
1,195,217
|
|
|||||
Non-interest-bearing deposits
|
222,075
|
|
219,175
|
|
215,069
|
|
209,693
|
|
203,559
|
|
|||||
Total deposits
|
$
|
1,358,826
|
|
$
|
1,360,944
|
|
$
|
1,361,600
|
|
$
|
1,392,437
|
|
$
|
1,398,776
|
|
(Dollars in thousands)
|
June 30,
2011 |
March 31,
2011 |
December 31,
2010 |
September 30,
2010 |
June 30,
2010 |
||||||||||
Short-term borrowings:
|
|
|
|
|
|
||||||||||
Retail repurchase agreements
|
$
|
39,254
|
|
$
|
42,283
|
|
$
|
51,509
|
|
$
|
49,060
|
|
$
|
49,765
|
|
Long-term borrowings:
|
|
|
|
|
|
||||||||||
FHLB advances
|
86,703
|
|
86,907
|
|
92,703
|
|
99,720
|
|
104,981
|
|
|||||
National market repurchase agreements
|
65,000
|
|
65,000
|
|
65,000
|
|
65,000
|
|
135,000
|
|
|||||
Total long-term borrowings
|
151,703
|
|
151,907
|
|
157,703
|
|
164,720
|
|
239,981
|
|
|||||
Subordinated notes held by subsidiary trust
|
22,583
|
|
22,574
|
|
22,565
|
|
22,557
|
|
22,548
|
|
|||||
Total borrowed funds
|
$
|
213,540
|
|
$
|
216,764
|
|
$
|
231,777
|
|
$
|
236,337
|
|
$
|
312,294
|
|
(Dollars in thousands)
|
June 30,
2011 |
March 31,
2011 |
December 31,
2010 |
September 30,
2010 |
June 30,
2010 |
||||||||||
Capital Amounts:
|
|
|
|
|
|
||||||||||
Tier 1 common
|
$
|
136,842
|
|
$
|
133,891
|
|
$
|
133,197
|
|
$
|
133,624
|
|
$
|
134,298
|
|
Tier 1
|
177,287
|
|
174,314
|
|
194,407
|
|
194,800
|
|
195,439
|
|
|||||
Total (Tier 1 and Tier 2)
|
192,663
|
|
189,672
|
|
209,738
|
|
210,768
|
|
211,509
|
|
|||||
Net risk-weighted assets
|
$
|
1,135,234
|
|
$
|
1,142,758
|
|
$
|
1,149,587
|
|
$
|
1,200,754
|
|
$
|
1,212,816
|
|
Capital Ratios:
|
|
|
|
|
|
||||||||||
Tier 1 common
|
12.05
|
%
|
11.72
|
%
|
11.59
|
%
|
11.13
|
%
|
11.07
|
%
|
|||||
Tier 1
|
15.62
|
%
|
15.25
|
%
|
16.91
|
%
|
16.22
|
%
|
16.11
|
%
|
|||||
Total (Tier 1 and Tier 2)
|
16.97
|
%
|
16.60
|
%
|
18.24
|
%
|
17.55
|
%
|
17.44
|
%
|
|||||
Leverage ratio
|
10.10
|
%
|
9.81
|
%
|
10.63
|
%
|
10.26
|
%
|
10.14
|
%
|
(Dollars in thousands)
|
June 30,
2011 |
March 31,
2011 |
December 31,
2010 |
September 30,
2010 |
June 30,
2010 |
||||||||||
Tangible Equity:
|
|
|
|
|
|
||||||||||
Total stockholders' equity, as reported
|
$
|
218,527
|
|
$
|
210,485
|
|
$
|
230,681
|
|
$
|
233,759
|
|
$
|
240,280
|
|
Less: goodwill and other intangible assets
|
64,602
|
|
64,765
|
|
64,870
|
|
64,934
|
|
65,138
|
|
|||||
Tangible equity
|
$
|
153,925
|
|
$
|
145,720
|
|
$
|
165,811
|
|
$
|
168,825
|
|
$
|
175,142
|
|
|
|
|
|
|
|
||||||||||
Tangible Common Equity:
|
|
|
|
|
|
||||||||||
Tangible equity
|
$
|
153,925
|
|
$
|
145,720
|
|
$
|
165,811
|
|
$
|
168,825
|
|
$
|
175,142
|
|
Less: preferred stockholders' equity
|
17,862
|
|
17,850
|
|
38,645
|
|
38,619
|
|
38,593
|
|
|||||
Tangible common equity
|
$
|
136,063
|
|
$
|
127,870
|
|
$
|
127,166
|
|
$
|
130,206
|
|
$
|
136,549
|
|
|
|
|
|
|
|
||||||||||
Tangible Assets:
|
|
|
|
|
|
||||||||||
Total assets, as reported
|
$
|
1,802,703
|
|
$
|
1,801,590
|
|
$
|
1,837,985
|
|
$
|
1,883,689
|
|
$
|
1,967,046
|
|
Less: goodwill and other intangible assets
|
64,602
|
|
64,765
|
|
64,870
|
|
64,934
|
|
65,138
|
|
|||||
Tangible assets
|
$
|
1,738,101
|
|
$
|
1,736,825
|
|
$
|
1,773,115
|
|
$
|
1,818,755
|
|
$
|
1,901,908
|
|
|
|
|
|
|
|
||||||||||
Tangible Book Value per Share:
|
|
|
|
|
|
||||||||||
Tangible common equity
|
$
|
136,063
|
|
$
|
127,870
|
|
$
|
127,166
|
|
$
|
130,206
|
|
$
|
136,549
|
|
Common shares outstanding
|
10,478,149
|
|
10,474,507
|
|
10,457,327
|
|
10,438,510
|
|
10,423,317
|
|
|||||
|
|
|
|
|
|
||||||||||
Tangible book value per share
|
$
|
12.99
|
|
$
|
12.21
|
|
$
|
12.16
|
|
$
|
12.47
|
|
$
|
13.10
|
|
|
|
|
|
|
|
||||||||||
Tangible Equity to Tangible Assets Ratio:
|
|
|
|
|
|
||||||||||
Tangible equity
|
$
|
153,925
|
|
$
|
145,720
|
|
$
|
165,811
|
|
$
|
168,825
|
|
$
|
175,142
|
|
Tangible assets
|
$
|
1,738,101
|
|
$
|
1,736,825
|
|
$
|
1,773,115
|
|
$
|
1,818,755
|
|
$
|
1,901,908
|
|
|
|
|
|
|
|
||||||||||
Tangible equity to tangible assets
|
8.86
|
%
|
8.39
|
%
|
9.35
|
%
|
9.28
|
%
|
9.21
|
%
|
|||||
|
|
|
|
|
|
||||||||||
Tangible Common Equity to Tangible Assets Ratio:
|
|
|
|
|
|||||||||||
Tangible common equity
|
$
|
136,063
|
|
$
|
127,870
|
|
$
|
127,166
|
|
$
|
130,206
|
|
$
|
136,549
|
|
Tangible assets
|
$
|
1,738,101
|
|
$
|
1,736,825
|
|
$
|
1,773,115
|
|
$
|
1,818,755
|
|
$
|
1,901,908
|
|
|
|
|
|
|
|
||||||||||
Tangible common equity to tangible assets
|
7.83
|
%
|
7.36
|
%
|
7.17
|
%
|
7.16
|
%
|
7.18
|
%
|
Increase in Interest Rate
|
Estimated Increase in
Net Interest Income
|
|
Estimated (Decrease) Increase in Economic Value of Equity
|
||||||||||||||||||||||
(in Basis Points)
|
June 30, 2011
|
|
December 31, 2010
|
|
June 30, 2011
|
|
December 31, 2010
|
||||||||||||||||||
300
|
$
|
6,890
|
|
|
13.1
|
%
|
|
$
|
8,973
|
|
17.2
|
%
|
|
$
|
(24,718
|
)
|
|
(11.0
|
)%
|
|
$
|
(9,005
|
)
|
(3.9
|
)%
|
200
|
5,459
|
|
|
10.4
|
%
|
|
6,860
|
|
13.2
|
%
|
|
(13,601
|
)
|
|
(6.1
|
)%
|
|
(3,297
|
)
|
(1.4
|
)%
|
||||
100
|
3,283
|
|
|
6.2
|
%
|
|
4,048
|
|
7.8
|
%
|
|
(3,622
|
)
|
|
(1.6
|
)%
|
|
1,599
|
|
0.7
|
%
|
(Dollars in thousands)
|
June 30,
2011 |
March 31,
2011 |
December 31,
2010 |
September 30,
2010 |
June 30,
2010 |
||||||||||
Home equity lines of credit
|
$
|
39,758
|
|
$
|
40,293
|
|
$
|
40,021
|
|
$
|
39,585
|
|
$
|
39,650
|
|
Unadvanced construction loans
|
16,026
|
|
16,418
|
|
6,107
|
|
11,954
|
|
14,878
|
|
|||||
Other loan commitments
|
106,311
|
|
111,720
|
|
108,995
|
|
103,726
|
|
108,281
|
|
|||||
Loan commitments
|
162,095
|
|
168,431
|
|
155,123
|
|
155,265
|
|
162,809
|
|
|||||
|
|
|
|
|
|
||||||||||
Standby letters of credit
|
$
|
41,198
|
|
$
|
41,553
|
|
$
|
42,097
|
|
$
|
42,158
|
|
$
|
43,505
|
|
(a)
|
information required to be disclosed by Peoples in this Quarterly Report on Form 10-Q and other reports Peoples files or submits under the Exchange Act would be accumulated and communicated to Peoples’ management, including its President and Chief Executive Officer and its Executive Vice President, Chief Financial Officer and Treasurer, as appropriate to allow timely decisions regarding required disclosure;
|
(b)
|
information required to be disclosed by Peoples in this Quarterly Report on Form 10-Q and other reports Peoples files or submits under the Exchange Act would be recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms; and
|
(c)
|
Peoples’ disclosure controls and procedures were effective as of the end of the fiscal quarter covered by this Quarterly Report on Form 10-Q.
|
(1)
|
Peoples’ Board of Directors has not authorized any stock repurchase plans or programs for 2011, due in part to the restrictions on stock repurchases imposed by the terms of the TARP Capital Investment.
|
(2)
|
Information reflects solely common shares purchased in open market transactions by Peoples Bank under the Rabbi Trust Agreement establishing a rabbi trust holding assets to provide funds for the payment of the benefits under the Peoples Bancorp Inc. Second Amended and Restated Deferred Compensation Plan for Directors of Peoples Bancorp Inc. and Subsidiaries.
|
|
|
|
|
PEOPLES BANCORP INC.
|
|
|
|
|
|
Date:
|
July 29, 2011
|
|
By: /s/
|
CHARLES W. SULERZYSKI
|
|
|
|
|
Charles W. Sulerzyski
|
|
|
|
|
President and Chief Executive Officer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Date:
|
July 29, 2011
|
|
By: /s/
|
EDWARD G. SLOANE
|
|
|
|
|
Edward G. Sloane
|
|
|
|
|
Executive Vice President,
|
|
|
|
|
Chief Financial Officer and Treasurer
|
|
|
|
|
|
If to the Company, to:
|
|
If to the Executive, to:
|
|
||
|
Attn: General Counsel
|
|
|
Mr. Charles W. Sulerzyski
|
|
|
PEOPLES BANCORP INC.
|
|
|
45002 Falls Road
|
|
|
138 Putnam Street
|
|
|
Hunting Valley, Ohio 44022
|
|
|
Marietta, Ohio 45750
|
|
|
|
|
|
Fax: (740) 568-1422
|
|
|
|
|
|
|
|
|
|
|
EXECUTIVE:
|
|
COMPANY:
|
||
|
|
|
|
|
/s/
|
CHARLES W. SULERZYSKI
|
|
PEOPLES BANCORP INC.
|
|
|
|
|
|
|
|
|
|
By: /s/
|
CAROL A. SCHNEEBERGER
|
|
|
|
|
|
|
|
|
Its:
|
Executive Vice President, Operations
|
|
|
|
|
Secretary, Compensation Committee
|
|
|
|
|
|
(1)
|
Require the Company to comply with the requirements of Internal Revenue Code Section 162(m)(5); and
|
(2)
|
Prohibit the Company from making any Golden Parachute Payment to its Senior Executive Officers or any of the five next Most Highly-Compensated Employees; and
|
(3)
|
Prohibit the Company from paying or accruing any Bonus Payment to the five Most Highly- Compensated Employees; and
|
(4)
|
Require the Company to "clawback" any Bonus Payment to its Senior Executive Officers or any of the 20 next Most Highly-Compensated Employees if payment was based on materially inaccurate financial statements or performance metric criteria; and
|
(5)
|
Prohibit the Company from maintaining any Employee Compensation Plan that would encourage the manipulation of reported earnings to enhance the compensation of any employee; and
|
(6)
|
Prohibit the Company from maintaining any SEO Compensation Plan that encourages Senior Executive Officers to take unnecessary and excessive risks that threaten the value of the Company; and
|
(7)
|
Prohibit the Company from providing Gross-Ups to its Senior Executive Officers or the 20 next Most Highly-Compensated Employees; and
|
(8)
|
Subjects any Bonus Payment paid prior to February 17, 2009 by the Company to its Senior Executive Officers or the 20 next Most Highly-Compensated Employees to recovery by the Treasury.
|
(1)
|
The TARP Compensation Standards are intended to, and will be interpreted, administered and construed to, comply with the requirements of the ARRA, the Interim Final Rule and any other guidance promulgated by the Treasury (and, to the maximum extent consistent with the foregoing, to permit operation of the Benefit Plans in accordance with their terms before giving effect to this letter); and
|
(2)
|
Capitalized terms not defined herein shall have the meanings ascribed to them in the Interim Final Rule and shall be interpreted and construed consistent with such Interim Final Rule; and
|
(3)
|
Any reference to the Company shall mean the Company and any entity that, along with the Company, would be considered to be the TARP Recipient determined pursuant to 31 C.F.R. §30.2 where appropriate - including, in particular, Peoples Bank, National Association, Peoples Investment Company, Peoples Capital Corporation, Peoples Insurance Agency, L.L.C. and PBNA, L.L.C.; and
|
(4)
|
The determination of whether you are or remain a Senior Executive Officer or a Most Highly- Compensated Employee shall be made pursuant to 31 C.F.R. §30.3.
|
|
PEOPLES BANCORP INC.
|
|
|
PEOPLES BANK,
|
|
|
|
|
|
NATIONAL ASSOCIATION
|
|
|
|
|
|
|
|
By: /s/
|
CAROL A. SCHNEEBERGER
|
|
By: /s/
|
CAROL A. SCHNEEBERGER
|
|
Title:
|
Executive Vice President, Operations
|
|
Title:
|
Executive Vice President, Operations
|
|
|
Secretary, Compensation Committee
|
|
|
|
|
Date:
|
April 4, 2011
|
|
Date:
|
April 4, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By: /s/
|
CHARLES W. SULERZYSKI
|
|
|
|
|
Date:
|
April 4, 2011
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
For the Six Months Ended
|
||||||||||
|
June 30,
|
|
June 30,
|
||||||||||
(Dollars in thousands)
|
2011
|
2010
|
|
2011
|
2010
|
||||||||
Excluding Interest on Deposits:
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
||||||||
Earnings:
|
|
|
|
|
|
||||||||
Income before income taxes
|
$
|
3,808
|
|
$
|
4,050
|
|
|
$
|
6,168
|
|
$
|
5,475
|
|
Fixed charges (excluding preferred stock dividends)
|
1,912
|
|
2,913
|
|
|
3,826
|
|
5,860
|
|
||||
Total earnings
|
5,720
|
|
6,963
|
|
|
9,994
|
|
11,335
|
|
||||
Fixed charges:
|
|
|
|
|
|
||||||||
Interest expense (excluding deposit interest)
|
1,836
|
|
2,837
|
|
|
3,673
|
|
5,709
|
|
||||
Rent expense interest factor (1)
|
76
|
|
75
|
|
|
153
|
|
151
|
|
||||
Preferred stock dividends (2)
|
238
|
|
513
|
|
|
761
|
|
1,025
|
|
||||
Total fixed charges (excluding deposit interest)
|
2,150
|
|
3,425
|
|
|
4,587
|
|
6,885
|
|
||||
|
|
|
|
|
|
||||||||
Ratio of Earnings to Fixed Charges,
|
|
|
|
|
|
||||||||
Excluding Interest on Deposits
|
2.66
|
|
2.03
|
|
|
2.18
|
|
1.65
|
|
||||
|
|
|
|
|
|
||||||||
Including Interest on Deposits:
|
|
|
|
|
|
||||||||
Earnings:
|
|
|
|
|
|
||||||||
Income before income taxes
|
$
|
3,808
|
|
$
|
4,050
|
|
|
$
|
6,168
|
|
$
|
5,475
|
|
Fixed charges (excluding preferred stock dividends)
|
5,586
|
|
7,865
|
|
|
11,485
|
|
15,957
|
|
||||
Total earnings
|
9,394
|
|
11,915
|
|
|
17,653
|
|
21,432
|
|
||||
|
|
|
|
|
|
||||||||
Fixed charges:
|
|
|
|
|
|
||||||||
Interest expense (including deposit interest)
|
5,510
|
|
7,790
|
|
|
11,332
|
|
15,806
|
|
||||
Rent expense interest factor (1)
|
76
|
|
75
|
|
|
153
|
|
151
|
|
||||
Preferred stock dividends (2)
|
238
|
|
513
|
|
|
761
|
|
1,025
|
|
||||
Total fixed charges (including deposit interest)
|
5,824
|
|
8,378
|
|
|
12,246
|
|
16,982
|
|
||||
|
|
|
|
|
|
||||||||
Ratio of Earnings to Fixed Charges,
|
|
|
|
|
|
||||||||
Including Interest on Deposits
|
1.61
|
|
1.42
|
|
|
1.44
|
|
1.26
|
|
(1)
|
Represents one-third of gross rental expense, which management believes is representative of the interest factor.
|
(2)
|
Represents the dividends accrued on the Series A Preferred Shares during the period.
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended
June 30, 2011
, of Peoples Bancorp Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
|
|
|
|
|
Date:
|
July 29, 2011
|
|
By:/s/
|
CHARLES W. SULERZYSKI
|
|
|
|
|
Charles W. Sulerzyski
|
|
|
|
|
President and Chief Executive Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended
June 30, 2011
, of Peoples Bancorp Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
|
|
|
|
|
Date:
|
July 29, 2011
|
|
By:/s/
|
EDWARD G. SLOANE
|
|
|
|
|
Edward G. Sloane
|
|
|
|
|
Executive Vice President,
|
|
|
|
|
Chief Financial Officer and Treasurer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the consolidated financial condition and results of operations of Peoples Bancorp and its subsidiaries.
|
|
|
|
|
|
Date:
|
July 29, 2011
|
|
By:/s/
|
CHARLES W. SULERZYSKI
|
|
|
|
|
Charles W. Sulerzyski
|
|
|
|
|
President and Chief Executive Officer
|
|
|
|
|
|
Date:
|
July 29, 2011
|
|
By:/s/
|
EDWARD G. SLOANE
|
|
|
|
|
Edward G. Sloane
|
|
|
|
|
Executive Vice President,
|
|
|
|
|
Chief Financial Officer and Treasurer
|