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[X]
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Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended
March 31, 2014
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or
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[ ]
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Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from _________ to __________.
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Delaware
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36-3161078
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(State or other jurisdiction of incorporation or organization)
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(IRS Employer Identification No.)
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One Pierce Place, Suite 1500
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Itasca, Illinois 60143-9768
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(Address of principal executive offices) (zip code)
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Registrant’s telephone number, including area code:
(630) 875-7450
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Large accelerated filer [X]
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Accelerated filer [ ]
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Non-accelerated filer [ ]
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Smaller reporting company [ ]
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(Do not check if a smaller reporting company)
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Page
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Part I.
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FINANCIAL INFORMATION
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Item 1.
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Financial Statements (Unaudited)
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Item 2.
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Item 3.
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Item 4.
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Part II.
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Item 1.
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Item 1A.
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Item 2.
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Item 6.
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March 31,
2014 |
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December 31,
2013 |
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Assets
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(Unaudited)
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||||
Cash and due from banks
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$
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198,544
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$
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110,417
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Interest-bearing deposits in other banks
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393,768
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476,824
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Trading securities, at fair value
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17,774
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17,317
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Securities available-for-sale, at fair value
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1,080,750
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1,112,725
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Securities held-to-maturity, at amortized cost
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43,251
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44,322
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Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank stock, at cost
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35,161
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35,161
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Loans, excluding covered loans
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5,693,090
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5,580,005
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Covered loans
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122,387
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134,355
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Allowance for loan and covered loan losses
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(80,632
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)
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(85,505
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)
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Net loans
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5,734,845
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5,628,855
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Other real estate owned (“OREO”), excluding covered OREO
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30,026
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32,473
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Covered OREO
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7,355
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8,863
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Federal Deposit Insurance Corporation (“FDIC”) indemnification asset
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15,537
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16,585
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Premises, furniture, and equipment
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119,219
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120,204
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Investment in bank-owned life insurance (“BOLI”)
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193,673
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193,167
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Goodwill and other intangible assets
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275,605
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276,366
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Accrued interest receivable and other assets
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183,011
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180,128
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Total assets
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$
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8,328,519
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$
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8,253,407
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Liabilities
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Noninterest-bearing deposits
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$
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1,961,371
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$
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1,911,602
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Interest-bearing deposits
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4,855,386
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4,854,499
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Total deposits
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6,816,757
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6,766,101
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Borrowed funds
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223,699
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224,342
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Senior and subordinated debt
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190,964
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190,932
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Accrued interest payable and other liabilities
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76,674
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70,590
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Total liabilities
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7,308,094
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7,251,965
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Stockholders’ Equity
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Common stock
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858
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858
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Additional paid-in capital
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406,009
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414,293
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Retained earnings
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866,132
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853,740
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Accumulated other comprehensive loss, net of tax
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(19,772
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)
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(26,792
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)
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Treasury stock, at cost
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(232,802
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)
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(240,657
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)
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Total stockholders’ equity
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1,020,425
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1,001,442
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Total liabilities and stockholders’ equity
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$
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8,328,519
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$
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8,253,407
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Per Common Share Data
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Par Value
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$
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0.01
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$
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0.01
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Shares authorized
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100,000
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100,000
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Shares issued
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85,787
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85,787
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Shares outstanding
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75,266
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75,071
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Treasury shares
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10,521
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10,716
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Quarters Ended
March 31, |
||||||
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2014
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2013
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||||
Interest Income
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Loans, excluding covered loans
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$
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59,002
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$
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59,431
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Covered loans
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1,938
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3,449
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Investment securities
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8,005
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7,356
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Other short-term investments
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745
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|
809
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Total interest income
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69,690
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71,045
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Interest Expense
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Deposits
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2,597
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3,320
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Borrowed funds
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383
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442
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Senior and subordinated debt
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3,015
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3,435
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Total interest expense
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5,995
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7,197
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Net interest income
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63,695
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63,848
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Provision for loan and covered loan losses
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1,441
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5,674
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|
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Net interest income after provision for loan and covered loan losses
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62,254
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58,174
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Noninterest Income
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||||
Service charges on deposit accounts
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8,020
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8,677
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Wealth management fees
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6,457
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5,839
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Card-based fees
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5,335
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5,076
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Mortgage banking income
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1,115
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1,966
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Other service charges, commissions, and fees
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4,122
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4,200
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Net securities gains
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1,073
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—
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Other income
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1,128
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|
1,817
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Total noninterest income
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27,250
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27,575
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Noninterest Expense
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||||
Salaries and employee benefits
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33,491
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36,569
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Net occupancy and equipment expense
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9,391
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8,147
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Professional services
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5,389
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5,218
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Technology and related costs
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3,074
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2,483
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Net OREO expense
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1,556
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1,799
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Other expenses
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10,767
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10,598
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|
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Total noninterest expense
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63,668
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|
64,814
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Income before income tax expense
|
25,836
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20,935
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|
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Income tax expense
|
8,172
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|
|
6,293
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|
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Net income
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17,664
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|
|
14,642
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|
||
Net income applicable to non-vested restricted shares
|
(225
|
)
|
|
(212
|
)
|
||
Net income applicable to common shares
|
$
|
17,439
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|
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$
|
14,430
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Per Common Share Data
|
|
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|
||||
Basic earnings per common share
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$
|
0.24
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$
|
0.20
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Diluted earnings per common share
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$
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0.24
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$
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0.20
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Dividends declared per common share
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$
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0.07
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$
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0.01
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Weighted-average common shares outstanding
|
74,147
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|
|
73,867
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|
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Weighted-average diluted common shares outstanding
|
74,159
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|
|
73,874
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|
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Quarters Ended
March 31, |
||||||
|
2014
|
|
2013
|
||||
Net income
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$
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17,664
|
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$
|
14,642
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Securities available-for-sale
|
|
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|
||||
Unrealized holding gains (losses):
|
|
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|
||||
Before tax
|
12,690
|
|
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(2,016
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)
|
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Tax effect
|
(5,036
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)
|
|
787
|
|
||
Net of tax
|
7,654
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|
|
(1,229
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)
|
||
Reclassification of net gains included in net income:
|
|
|
|||||
Before tax
|
1,073
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|
|
—
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|
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Tax effect
|
(439
|
)
|
|
—
|
|
||
Net of tax
|
634
|
|
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—
|
|
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Net unrealized holding gains (losses)
|
7,020
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|
|
(1,229
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)
|
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Total other comprehensive income (loss)
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7,020
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|
|
(1,229
|
)
|
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Total comprehensive income
|
$
|
24,684
|
|
|
$
|
13,413
|
|
|
Accumulated
Unrealized
Gain (Loss)
on Securities
Available-
for-Sale
|
|
Unrecognized
Net Pension
Costs
|
|
Total
Accumulated
Other
Comprehensive
Loss
|
||||||
Balance at December 31, 2012
|
$
|
1,115
|
|
|
$
|
(16,775
|
)
|
|
$
|
(15,660
|
)
|
Other comprehensive loss
|
(1,229
|
)
|
|
—
|
|
|
(1,229
|
)
|
|||
Balance at March 31, 2013
|
$
|
(114
|
)
|
|
$
|
(16,775
|
)
|
|
$
|
(16,889
|
)
|
Balance at December 31, 2013
|
$
|
(20,419
|
)
|
|
$
|
(6,373
|
)
|
|
$
|
(26,792
|
)
|
Other comprehensive income
|
7,020
|
|
|
—
|
|
|
7,020
|
|
|||
Balance at March 31, 2014
|
$
|
(13,399
|
)
|
|
$
|
(6,373
|
)
|
|
$
|
(19,772
|
)
|
|
|
Common
Shares
Outstanding
|
|
Common
Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Treasury
Stock
|
|
Total
|
|||||||||||||
Balance at December 31, 2012
|
74,840
|
|
|
$
|
858
|
|
|
$
|
418,318
|
|
|
$
|
786,453
|
|
|
$
|
(15,660
|
)
|
|
$
|
(249,076
|
)
|
|
$
|
940,893
|
|
Comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
14,642
|
|
|
(1,229
|
)
|
|
—
|
|
|
13,413
|
|
||||||
Common dividends declared
($0.01 per common share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(752
|
)
|
|
—
|
|
|
—
|
|
|
(752
|
)
|
||||||
Share-based compensation expense
|
—
|
|
|
—
|
|
|
1,341
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,341
|
|
||||||
Restricted stock activity
|
256
|
|
|
—
|
|
|
(10,567
|
)
|
|
—
|
|
|
—
|
|
|
9,135
|
|
|
(1,432
|
)
|
||||||
Treasury stock (purchased for)
issued to benefit plans
|
(1
|
)
|
|
—
|
|
|
(15
|
)
|
|
—
|
|
|
—
|
|
|
3
|
|
|
(12
|
)
|
||||||
Balance at March 31, 2013
|
75,095
|
|
|
$
|
858
|
|
|
$
|
409,077
|
|
|
$
|
800,343
|
|
|
$
|
(16,889
|
)
|
|
$
|
(239,938
|
)
|
|
$
|
953,451
|
|
Balance at December 31, 2013
|
75,071
|
|
|
$
|
858
|
|
|
$
|
414,293
|
|
|
$
|
853,740
|
|
|
$
|
(26,792
|
)
|
|
$
|
(240,657
|
)
|
|
$
|
1,001,442
|
|
Comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
17,664
|
|
|
7,020
|
|
|
—
|
|
|
24,684
|
|
||||||
Common dividends declared
($0.07 per common share)
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,272
|
)
|
|
—
|
|
|
—
|
|
|
(5,272
|
)
|
||||||
Share-based compensation expense
|
—
|
|
|
—
|
|
|
1,476
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,476
|
|
||||||
Restricted stock activity
|
195
|
|
|
—
|
|
|
(9,717
|
)
|
|
—
|
|
|
—
|
|
|
7,742
|
|
|
(1,975
|
)
|
||||||
Treasury stock (purchased for)
issued to benefit plans
|
—
|
|
|
—
|
|
|
(43
|
)
|
|
—
|
|
|
—
|
|
|
113
|
|
|
70
|
|
||||||
Balance at March 31, 2014
|
75,266
|
|
|
$
|
858
|
|
|
$
|
406,009
|
|
|
$
|
866,132
|
|
|
$
|
(19,772
|
)
|
|
$
|
(232,802
|
)
|
|
$
|
1,020,425
|
|
|
|
Quarters Ended
March 31, |
||||||
|
2014
|
|
2013
|
||||
Net cash provided by operating activities
|
$
|
21,541
|
|
|
$
|
27,993
|
|
Investing Activities
|
|
|
|
||||
Proceeds from maturities, prepayments, and calls of securities available-for-sale
|
47,810
|
|
|
63,724
|
|
||
Proceeds from sales of securities available-for-sale
|
1,698
|
|
|
—
|
|
||
Purchases of securities available-for-sale
|
(6,142
|
)
|
|
(232,730
|
)
|
||
Proceeds from maturities, prepayments, and calls of securities held-to-maturity
|
1,924
|
|
|
3,380
|
|
||
Purchases of securities held-to-maturity
|
(853
|
)
|
|
(528
|
)
|
||
Net (increase) decrease in loans
|
(107,700
|
)
|
|
22,176
|
|
||
BOLI income, net of claims
|
(16
|
)
|
|
(20
|
)
|
||
Proceeds from sales of OREO
|
5,865
|
|
|
3,493
|
|
||
Proceeds from sales of premises, furniture, and equipment
|
18
|
|
|
1,425
|
|
||
Purchases of premises, furniture, and equipment
|
(1,954
|
)
|
|
(985
|
)
|
||
Net cash used in investing activities
|
(59,350
|
)
|
|
(140,065
|
)
|
||
Financing Activities
|
|
|
|
||||
Net increase (decrease) in deposit accounts
|
50,656
|
|
|
(71,460
|
)
|
||
Net (decrease) increase in borrowed funds
|
(643
|
)
|
|
22,870
|
|
||
Cash dividends paid
|
(5,258
|
)
|
|
(749
|
)
|
||
Restricted stock activity
|
(2,653
|
)
|
|
(1,564
|
)
|
||
Excess tax benefit related to share-based compensation
|
778
|
|
|
25
|
|
||
Net cash provided by (used in) financing activities
|
42,880
|
|
|
(50,878
|
)
|
||
Net increase (decrease) in cash and cash equivalents
|
5,071
|
|
|
(162,950
|
)
|
||
Cash and cash equivalents at beginning of period
|
587,241
|
|
|
716,266
|
|
||
Cash and cash equivalents at end of period
|
$
|
592,312
|
|
|
$
|
553,316
|
|
|
|
|
|
||||
Supplemental Disclosures of Cash Flow Information:
|
|
|
|
||||
Income taxes paid (refunded)
|
$
|
2,993
|
|
|
$
|
(5,497
|
)
|
Interest paid to depositors and creditors
|
3,142
|
|
|
4,038
|
|
||
Dividends declared, but unpaid
|
5,272
|
|
|
752
|
|
||
Non-cash transfers of loans to OREO
|
2,562
|
|
|
5,966
|
|
|
•
|
Changes in the composition of the loan portfolio, trends in the volume of loans, and trends in delinquent and non-accrual loans that could indicate that historical trends do not reflect current conditions.
|
•
|
Changes in credit policies and procedures, such as underwriting standards and collection, charge-off, and recovery practices.
|
•
|
Changes in the experience, ability, and depth of credit management and other relevant staff.
|
•
|
Changes in the quality of the Company’s loan review system and Board of Directors oversight.
|
•
|
The effect of any concentration of credit and changes in the level of concentrations, such as loan type or risk rating.
|
•
|
Changes in the value of the underlying collateral for collateral-dependent loans.
|
•
|
Changes in the national and local economy that affect the collectability of various segments of the portfolio.
|
•
|
The effect of other external factors, such as competition and legal and regulatory requirements, on the Company’s loan portfolio.
|
|
March 31, 2014
|
|
December 31, 2013
|
||||||||||||||||||||||||||||
|
Amortized Cost
|
|
Gross Unrealized
|
|
Fair
Value
|
|
Amortized Cost
|
|
Gross Unrealized
|
|
Fair
Value
|
||||||||||||||||||||
|
|
Gains
|
|
Losses
|
|
|
|
Gains
|
|
Losses
|
|
||||||||||||||||||||
Securities Available-for-Sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
U.S. agency securities
|
$
|
500
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
500
|
|
|
$
|
500
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
500
|
|
Collateralized mortgage
obligations (“CMOs”)
|
470,265
|
|
|
1,544
|
|
|
(12,348
|
)
|
|
459,461
|
|
|
490,962
|
|
|
1,427
|
|
|
(16,621
|
)
|
|
475,768
|
|
||||||||
Other mortgage-backed
securities (“MBSs”)
|
128,733
|
|
|
3,744
|
|
|
(1,572
|
)
|
|
130,905
|
|
|
135,097
|
|
|
3,349
|
|
|
(2,282
|
)
|
|
136,164
|
|
||||||||
Municipal securities
|
441,171
|
|
|
11,005
|
|
|
(3,333
|
)
|
|
448,843
|
|
|
457,318
|
|
|
9,673
|
|
|
(5,598
|
)
|
|
461,393
|
|
||||||||
Trust preferred
collateralized debt
obligations (“CDOs”)
|
46,532
|
|
|
—
|
|
|
(24,866
|
)
|
|
21,666
|
|
|
46,532
|
|
|
—
|
|
|
(28,223
|
)
|
|
18,309
|
|
||||||||
Corporate debt securities
|
12,997
|
|
|
1,997
|
|
|
—
|
|
|
14,994
|
|
|
12,999
|
|
|
1,930
|
|
|
—
|
|
|
14,929
|
|
||||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Hedge fund investment
|
597
|
|
|
1,039
|
|
|
—
|
|
|
1,636
|
|
|
1,208
|
|
|
1,971
|
|
|
—
|
|
|
3,179
|
|
||||||||
Other equity securities
|
2,727
|
|
|
95
|
|
|
(77
|
)
|
|
2,745
|
|
|
2,498
|
|
|
75
|
|
|
(90
|
)
|
|
2,483
|
|
||||||||
Total equity securities
|
3,324
|
|
|
1,134
|
|
|
(77
|
)
|
|
4,381
|
|
|
3,706
|
|
|
2,046
|
|
|
(90
|
)
|
|
5,662
|
|
||||||||
Total available-
for-sale securities
|
$
|
1,103,522
|
|
|
$
|
19,424
|
|
|
$
|
(42,196
|
)
|
|
$
|
1,080,750
|
|
|
$
|
1,147,114
|
|
|
$
|
18,425
|
|
|
$
|
(52,814
|
)
|
|
$
|
1,112,725
|
|
Securities Held-to-Maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Municipal securities
|
$
|
43,251
|
|
|
$
|
—
|
|
|
$
|
(677
|
)
|
|
$
|
42,574
|
|
|
$
|
44,322
|
|
|
$
|
—
|
|
|
$
|
(935
|
)
|
|
$
|
43,387
|
|
Trading Securities
|
|
|
|
|
|
|
$
|
17,774
|
|
|
|
|
|
|
|
|
$
|
17,317
|
|
|
March 31, 2014
|
||||||||||||||
|
Available-for-Sale
|
|
Held-to-Maturity
|
||||||||||||
|
Amortized
Cost
|
|
Fair Value
|
|
Amortized
Cost
|
|
Fair Value
|
||||||||
One year or less
|
$
|
34,285
|
|
|
$
|
33,245
|
|
|
$
|
3,609
|
|
|
$
|
3,552
|
|
After one year to five years
|
132,257
|
|
|
128,247
|
|
|
10,045
|
|
|
9,888
|
|
||||
After five years to ten years
|
167,497
|
|
|
162,418
|
|
|
7,796
|
|
|
7,674
|
|
||||
After ten years
|
167,161
|
|
|
162,093
|
|
|
21,801
|
|
|
21,460
|
|
||||
Securities that do not have a single contractual maturity date
|
602,322
|
|
|
594,747
|
|
|
—
|
|
|
—
|
|
||||
Total
|
$
|
1,103,522
|
|
|
$
|
1,080,750
|
|
|
$
|
43,251
|
|
|
$
|
42,574
|
|
|
Quarters Ended
March 31, |
||||||
|
2014
|
|
2013
|
||||
Gains on sales of securities:
|
|
|
|
||||
Gross realized gains
|
$
|
1,101
|
|
|
$
|
—
|
|
Gross realized losses
|
—
|
|
|
—
|
|
||
Net realized gains on securities sales
|
1,101
|
|
|
—
|
|
||
Non-cash impairment charges:
|
|
|
|
||||
OTTI
|
(28
|
)
|
|
—
|
|
||
Portion of OTTI recognized in other comprehensive loss
|
—
|
|
|
—
|
|
||
Net non-cash impairment charges
|
(28
|
)
|
|
—
|
|
||
Net realized gains
|
$
|
1,073
|
|
|
$
|
—
|
|
Net trading gains
(1)
|
$
|
191
|
|
|
$
|
1,036
|
|
(1)
|
All net trading gains relate to trading securities still held as of March 31, 2014 and March 31, 2013 and are included in other income in the Condensed Consolidated Statement of Income.
|
|
|
Quarters Ended
March 31, |
|
|
||||||||
Number
|
|
2014
|
|
2013
|
|
Life-to-Date
|
||||||
1
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,360
|
|
2
|
|
—
|
|
|
—
|
|
|
9,402
|
|
|||
3
|
|
—
|
|
|
—
|
|
|
2,262
|
|
|||
4
|
|
—
|
|
|
—
|
|
|
1,078
|
|
|||
5
|
|
—
|
|
|
—
|
|
|
8,570
|
|
|||
6
|
|
—
|
|
|
—
|
|
|
243
|
|
|||
7
|
|
—
|
|
|
—
|
|
|
6,750
|
|
|||
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
38,665
|
|
|
Quarters Ended
March 31, |
||||||
|
2014
|
|
2013
|
||||
Beginning balance
|
$
|
32,422
|
|
|
$
|
38,803
|
|
OTTI included in earnings
(1)
:
|
|
|
|
||||
Losses on securities that previously had OTTI
|
28
|
|
|
—
|
|
||
Losses on securities that did not previously have OTTI
|
—
|
|
|
—
|
|
||
Reduction for securities sales
|
—
|
|
|
—
|
|
||
Ending balance
|
$
|
32,450
|
|
|
$
|
38,803
|
|
(1)
|
Included in net securities gains in the Condensed Consolidated Statements of Income.
|
|
|
|
Less Than 12 Months
|
|
Greater Than 12 Months
|
|
Total
|
|||||||||||||||||||
|
Number of
Securities
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
Fair
Value
|
|
Unrealized
Losses
|
|||||||||||||
As of March 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
CMOs
|
60
|
|
|
$
|
276,580
|
|
|
$
|
8,693
|
|
|
$
|
93,180
|
|
|
$
|
3,655
|
|
|
$
|
369,760
|
|
|
$
|
12,348
|
|
Other MBSs
|
12
|
|
|
17,602
|
|
|
298
|
|
|
29,461
|
|
|
1,274
|
|
|
47,063
|
|
|
1,572
|
|
||||||
Municipal securities
|
137
|
|
|
30,970
|
|
|
540
|
|
|
53,560
|
|
|
2,793
|
|
|
84,530
|
|
|
3,333
|
|
||||||
CDOs
|
6
|
|
|
—
|
|
|
—
|
|
|
21,666
|
|
|
24,866
|
|
|
21,666
|
|
|
24,866
|
|
||||||
Equity securities
|
1
|
|
|
2,192
|
|
|
77
|
|
|
—
|
|
|
—
|
|
|
2,192
|
|
|
77
|
|
||||||
Total
|
216
|
|
|
$
|
327,344
|
|
|
$
|
9,608
|
|
|
$
|
197,867
|
|
|
$
|
32,588
|
|
|
$
|
525,211
|
|
|
$
|
42,196
|
|
As of December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
CMOs
|
67
|
|
|
$
|
338,064
|
|
|
$
|
14,288
|
|
|
$
|
57,269
|
|
|
$
|
2,333
|
|
|
$
|
395,333
|
|
|
$
|
16,621
|
|
Other MBSs
|
19
|
|
|
57,311
|
|
|
2,281
|
|
|
356
|
|
|
1
|
|
|
57,667
|
|
|
2,282
|
|
||||||
Municipal securities
|
154
|
|
|
65,370
|
|
|
3,245
|
|
|
27,565
|
|
|
2,353
|
|
|
92,935
|
|
|
5,598
|
|
||||||
CDOs
|
6
|
|
|
—
|
|
|
—
|
|
|
18,309
|
|
|
28,223
|
|
|
18,309
|
|
|
28,223
|
|
||||||
Equity securities
|
1
|
|
|
2,168
|
|
|
90
|
|
|
—
|
|
|
—
|
|
|
2,168
|
|
|
90
|
|
||||||
Total
|
247
|
|
|
$
|
462,913
|
|
|
$
|
19,904
|
|
|
$
|
103,499
|
|
|
$
|
32,910
|
|
|
$
|
566,412
|
|
|
$
|
52,814
|
|
|
March 31,
2014 |
|
December 31,
2013 |
||||
Commercial and industrial
|
$
|
1,917,396
|
|
|
$
|
1,830,638
|
|
Agricultural
|
321,343
|
|
|
321,702
|
|
||
Commercial real estate:
|
|
|
|
||||
Office, retail, and industrial
|
1,348,094
|
|
|
1,353,685
|
|
||
Multi-family
|
337,332
|
|
|
332,873
|
|
||
Construction
|
181,012
|
|
|
186,197
|
|
||
Other commercial real estate
|
822,934
|
|
|
807,071
|
|
||
Total commercial real estate
|
2,689,372
|
|
|
2,679,826
|
|
||
Total corporate loans
|
4,928,111
|
|
|
4,832,166
|
|
||
Home equity
|
475,103
|
|
|
427,020
|
|
||
1-4 family mortgages
|
240,561
|
|
|
275,992
|
|
||
Installment
|
49,315
|
|
|
44,827
|
|
||
Total consumer loans
|
764,979
|
|
|
747,839
|
|
||
Total loans, excluding covered loans
|
5,693,090
|
|
|
5,580,005
|
|
||
Covered loans
(1)
|
122,387
|
|
|
134,355
|
|
||
Total loans
|
$
|
5,815,477
|
|
|
$
|
5,714,360
|
|
Deferred loan fees included in total loans
|
$
|
4,244
|
|
|
$
|
4,656
|
|
Overdrawn demand deposits included in total loans
|
3,843
|
|
|
5,047
|
|
(1)
|
For information on covered loans, refer to Note 5, “Acquired Loans.”
|
|
March 31, 2014
|
|
December 31, 2013
|
||||||||||||||||||||
|
Covered
|
|
Non-Covered
|
|
Total
|
|
Covered
|
|
Non-Covered
|
|
Total
|
||||||||||||
Purchased impaired loans
|
$
|
92,621
|
|
(1)
|
$
|
15,341
|
|
|
$
|
107,962
|
|
|
$
|
103,525
|
|
(1)
|
$
|
15,608
|
|
|
$
|
119,133
|
|
Other loans
(2)
|
29,766
|
|
|
14,512
|
|
|
44,278
|
|
|
30,830
|
|
|
17,024
|
|
|
47,854
|
|
||||||
Total acquired loans
|
$
|
122,387
|
|
|
$
|
29,853
|
|
|
$
|
152,240
|
|
|
$
|
134,355
|
|
|
$
|
32,632
|
|
|
$
|
166,987
|
|
(1)
|
At acquisition, the Company made an election to account for certain covered loans as purchased impaired loans. These loans totaled
$23.3 million
at March 31, 2014 and
$24.6 million
at December 31, 2013.
|
(2)
|
These loans did not meet the criteria to be accounted for as purchased impaired loans.
|
|
Quarters Ended
March 31, |
||||||
|
2014
|
|
2013
|
||||
Beginning balance
|
$
|
16,585
|
|
|
$
|
37,051
|
|
Amortization
|
(1,316
|
)
|
|
(1,324
|
)
|
||
Change in expected reimbursements from the FDIC for changes in expected credit losses
|
1,161
|
|
|
(942
|
)
|
||
Payments received from the FDIC
|
(893
|
)
|
|
(5,827
|
)
|
||
Ending balance
|
$
|
15,537
|
|
|
$
|
28,958
|
|
|
Quarters Ended
March 31, |
||||||
|
2014
|
|
2013
|
||||
Beginning balance
|
$
|
36,792
|
|
|
$
|
51,498
|
|
Accretion
|
(3,510
|
)
|
|
(3,886
|
)
|
||
Other
(1)
|
(1,272
|
)
|
|
(2,080
|
)
|
||
Ending balance
|
$
|
32,010
|
|
|
$
|
45,532
|
|
(1)
|
Decreases result from the resolution of certain loans occurring earlier than anticipated.
|
|
Aging Analysis (Accruing and Non-accrual)
|
|
|
Non-performing Loans
|
||||||||||||||||||||||||
|
Current
|
|
30-89 Days
Past Due
|
|
90 Days or
More Past
Due
|
|
Total
Past Due
|
|
Total
Loans
|
|
|
Non-
accrual
Loans
|
|
90 Days Past Due Loans, Still Accruing Interest
|
||||||||||||||
March 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
$
|
1,904,512
|
|
|
$
|
3,564
|
|
|
$
|
9,320
|
|
|
$
|
12,884
|
|
|
$
|
1,917,396
|
|
|
|
$
|
8,559
|
|
|
$
|
2,163
|
|
Agricultural
|
320,999
|
|
|
11
|
|
|
333
|
|
|
344
|
|
|
321,343
|
|
|
|
364
|
|
|
—
|
|
|||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Office, retail, and industrial
|
1,324,347
|
|
|
9,946
|
|
|
13,801
|
|
|
23,747
|
|
|
1,348,094
|
|
|
|
24,968
|
|
|
—
|
|
|||||||
Multi-family
|
334,348
|
|
|
1,568
|
|
|
1,416
|
|
|
2,984
|
|
|
337,332
|
|
|
|
2,181
|
|
|
—
|
|
|||||||
Construction
|
175,742
|
|
|
75
|
|
|
5,195
|
|
|
5,270
|
|
|
181,012
|
|
|
|
5,297
|
|
|
—
|
|
|||||||
Other commercial real estate
|
813,336
|
|
|
2,005
|
|
|
7,593
|
|
|
9,598
|
|
|
822,934
|
|
|
|
9,049
|
|
|
588
|
|
|||||||
Total commercial real
estate
|
2,647,773
|
|
|
13,594
|
|
|
28,005
|
|
|
41,599
|
|
|
2,689,372
|
|
|
|
41,495
|
|
|
588
|
|
|||||||
Total corporate loans
|
4,873,284
|
|
|
17,169
|
|
|
37,658
|
|
|
54,827
|
|
|
4,928,111
|
|
|
|
50,418
|
|
|
2,751
|
|
|||||||
Home equity
|
463,933
|
|
|
3,944
|
|
|
7,226
|
|
|
11,170
|
|
|
475,103
|
|
|
|
6,720
|
|
|
1,589
|
|
|||||||
1-4 family mortgages
|
234,003
|
|
|
1,776
|
|
|
4,782
|
|
|
6,558
|
|
|
240,561
|
|
|
|
5,014
|
|
|
505
|
|
|||||||
Installment
|
46,959
|
|
|
173
|
|
|
2,183
|
|
|
2,356
|
|
|
49,315
|
|
|
|
2,065
|
|
|
128
|
|
|||||||
Total consumer loans
|
744,895
|
|
|
5,893
|
|
|
14,191
|
|
|
20,084
|
|
|
764,979
|
|
|
|
13,799
|
|
|
2,222
|
|
|||||||
Total loans, excluding
covered loans
|
5,618,179
|
|
|
23,062
|
|
|
51,849
|
|
|
74,911
|
|
|
5,693,090
|
|
|
|
64,217
|
|
|
4,973
|
|
|||||||
Covered loans
|
88,336
|
|
|
2,479
|
|
|
31,572
|
|
|
34,051
|
|
|
122,387
|
|
|
|
18,004
|
|
|
14,691
|
|
|||||||
Total loans
|
$
|
5,706,515
|
|
|
$
|
25,541
|
|
|
$
|
83,421
|
|
|
$
|
108,962
|
|
|
$
|
5,815,477
|
|
|
|
$
|
82,221
|
|
|
$
|
19,664
|
|
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commercial and industrial
|
$
|
1,814,660
|
|
|
$
|
6,872
|
|
|
$
|
9,106
|
|
|
$
|
15,978
|
|
|
$
|
1,830,638
|
|
|
|
$
|
11,767
|
|
|
$
|
393
|
|
Agricultural
|
321,156
|
|
|
134
|
|
|
412
|
|
|
546
|
|
|
321,702
|
|
|
|
519
|
|
|
—
|
|
|||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Office, retail, and industrial
|
1,335,027
|
|
|
2,620
|
|
|
16,038
|
|
|
18,658
|
|
|
1,353,685
|
|
|
|
17,076
|
|
|
1,315
|
|
|||||||
Multi-family
|
330,960
|
|
|
318
|
|
|
1,595
|
|
|
1,913
|
|
|
332,873
|
|
|
|
1,848
|
|
|
—
|
|
|||||||
Construction
|
180,083
|
|
|
23
|
|
|
6,091
|
|
|
6,114
|
|
|
186,197
|
|
|
|
6,297
|
|
|
—
|
|
|||||||
Other commercial real estate
|
795,462
|
|
|
5,365
|
|
|
6,244
|
|
|
11,609
|
|
|
807,071
|
|
|
|
8,153
|
|
|
258
|
|
|||||||
Total commercial real
estate |
2,641,532
|
|
|
8,326
|
|
|
29,968
|
|
|
38,294
|
|
|
2,679,826
|
|
|
|
33,374
|
|
|
1,573
|
|
|||||||
Total corporate loans
|
4,777,348
|
|
|
15,332
|
|
|
39,486
|
|
|
54,818
|
|
|
4,832,166
|
|
|
|
45,660
|
|
|
1,966
|
|
|||||||
Home equity
|
415,791
|
|
|
4,830
|
|
|
6,399
|
|
|
11,229
|
|
|
427,020
|
|
|
|
6,864
|
|
|
1,102
|
|
|||||||
1-4 family mortgages
|
268,912
|
|
|
2,046
|
|
|
5,034
|
|
|
7,080
|
|
|
275,992
|
|
|
|
5,198
|
|
|
548
|
|
|||||||
Installment
|
42,350
|
|
|
330
|
|
|
2,147
|
|
|
2,477
|
|
|
44,827
|
|
|
|
2,076
|
|
|
92
|
|
|||||||
Total consumer loans
|
727,053
|
|
|
7,206
|
|
|
13,580
|
|
|
20,786
|
|
|
747,839
|
|
|
|
14,138
|
|
|
1,742
|
|
|||||||
Total loans, excluding
covered loans
|
5,504,401
|
|
|
22,538
|
|
|
53,066
|
|
|
75,604
|
|
|
5,580,005
|
|
|
|
59,798
|
|
|
3,708
|
|
|||||||
Covered loans
|
94,211
|
|
|
2,232
|
|
|
37,912
|
|
|
40,144
|
|
|
134,355
|
|
|
|
20,942
|
|
|
18,081
|
|
|||||||
Total loans
|
$
|
5,598,612
|
|
|
$
|
24,770
|
|
|
$
|
90,978
|
|
|
$
|
115,748
|
|
|
$
|
5,714,360
|
|
|
|
$
|
80,740
|
|
|
$
|
21,789
|
|
|
Commercial,
Industrial,
and
Agricultural
|
|
Office,
Retail, and
Industrial
|
|
Multi-
Family
|
|
Construction
|
|
Other
Commercial
Real Estate
|
|
Consumer
|
|
Covered
Loans
|
|
Reserve for
Unfunded
Commitments
|
|
Total
Allowance
|
||||||||||||||||||
Quarter ended March 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Beginning balance
|
$
|
30,381
|
|
|
$
|
10,405
|
|
|
$
|
2,017
|
|
|
$
|
6,316
|
|
|
$
|
10,817
|
|
|
$
|
13,010
|
|
|
$
|
12,559
|
|
|
$
|
1,616
|
|
|
$
|
87,121
|
|
Charge-offs
|
(3,680
|
)
|
|
(1,083
|
)
|
|
(90
|
)
|
|
(661
|
)
|
|
(1,771
|
)
|
|
(2,028
|
)
|
|
(245
|
)
|
|
—
|
|
|
(9,558
|
)
|
|||||||||
Recoveries
|
2,160
|
|
|
58
|
|
|
1
|
|
|
158
|
|
|
144
|
|
|
138
|
|
|
585
|
|
|
—
|
|
|
3,244
|
|
|||||||||
Net charge-offs
|
(1,520
|
)
|
|
(1,025
|
)
|
|
(89
|
)
|
|
(503
|
)
|
|
(1,627
|
)
|
|
(1,890
|
)
|
|
340
|
|
|
—
|
|
|
(6,314
|
)
|
|||||||||
Provision for loan
and covered loan
losses and other
|
(1,569
|
)
|
|
3,726
|
|
|
40
|
|
|
(157
|
)
|
|
46
|
|
|
825
|
|
|
(1,470
|
)
|
|
—
|
|
|
1,441
|
|
|||||||||
Ending balance
|
$
|
27,292
|
|
|
$
|
13,106
|
|
|
$
|
1,968
|
|
|
$
|
5,656
|
|
|
$
|
9,236
|
|
|
$
|
11,945
|
|
|
$
|
11,429
|
|
|
$
|
1,616
|
|
|
$
|
82,248
|
|
Quarter ended March 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Beginning balance
|
$
|
36,761
|
|
|
$
|
11,432
|
|
|
$
|
3,575
|
|
|
$
|
9,223
|
|
|
$
|
13,531
|
|
|
$
|
12,862
|
|
|
$
|
12,062
|
|
|
$
|
3,366
|
|
|
$
|
102,812
|
|
Charge-offs
|
(3,175
|
)
|
|
(1,262
|
)
|
|
(165
|
)
|
|
(565
|
)
|
|
(2,535
|
)
|
|
(2,364
|
)
|
|
(706
|
)
|
|
—
|
|
|
(10,772
|
)
|
|||||||||
Recoveries
|
2,089
|
|
|
2
|
|
|
5
|
|
|
2
|
|
|
1,030
|
|
|
107
|
|
|
8
|
|
|
—
|
|
|
3,243
|
|
|||||||||
Net charge-offs
|
(1,086
|
)
|
|
(1,260
|
)
|
|
(160
|
)
|
|
(563
|
)
|
|
(1,505
|
)
|
|
(2,257
|
)
|
|
(698
|
)
|
|
—
|
|
|
(7,529
|
)
|
|||||||||
Provision for loan
and covered loan
losses and other
|
869
|
|
|
523
|
|
|
289
|
|
|
650
|
|
|
1,088
|
|
|
1,392
|
|
|
863
|
|
|
(500
|
)
|
|
5,174
|
|
|||||||||
Ending balance
|
$
|
36,544
|
|
|
$
|
10,695
|
|
|
$
|
3,704
|
|
|
$
|
9,310
|
|
|
$
|
13,114
|
|
|
$
|
11,997
|
|
|
$
|
12,227
|
|
|
$
|
2,866
|
|
|
$
|
100,457
|
|
|
Loans
|
|
Allowance for Credit Losses
|
||||||||||||||||||||||||||||
|
Individually
Evaluated
for
Impairment
|
|
Collectively
Evaluated
for
Impairment
|
|
Purchased Impaired
|
|
Total
|
|
Individually
Evaluated
for
Impairment
|
|
Collectively
Evaluated
for
Impairment
|
|
Purchased Impaired
|
|
Total
|
||||||||||||||||
March 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial, industrial, and
agricultural
|
$
|
7,436
|
|
|
$
|
2,229,820
|
|
|
$
|
1,483
|
|
|
$
|
2,238,739
|
|
|
$
|
2,601
|
|
|
$
|
24,691
|
|
|
$
|
—
|
|
|
$
|
27,292
|
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Office, retail, and industrial
|
24,590
|
|
|
1,323,504
|
|
|
—
|
|
|
1,348,094
|
|
|
3,723
|
|
|
9,383
|
|
|
—
|
|
|
13,106
|
|
||||||||
Multi-family
|
1,678
|
|
|
335,518
|
|
|
136
|
|
|
337,332
|
|
|
22
|
|
|
1,946
|
|
|
—
|
|
|
1,968
|
|
||||||||
Construction
|
4,851
|
|
|
176,161
|
|
|
—
|
|
|
181,012
|
|
|
242
|
|
|
5,414
|
|
|
—
|
|
|
5,656
|
|
||||||||
Other commercial real estate
|
7,037
|
|
|
811,778
|
|
|
4,119
|
|
|
822,934
|
|
|
697
|
|
|
8,539
|
|
|
—
|
|
|
9,236
|
|
||||||||
Total commercial
real estate
|
38,156
|
|
|
2,646,961
|
|
|
4,255
|
|
|
2,689,372
|
|
|
4,684
|
|
|
25,282
|
|
|
—
|
|
|
29,966
|
|
||||||||
Total corporate loans
|
45,592
|
|
|
4,876,781
|
|
|
5,738
|
|
|
4,928,111
|
|
|
7,285
|
|
|
49,973
|
|
|
—
|
|
|
57,258
|
|
||||||||
Consumer
|
—
|
|
|
755,376
|
|
|
9,603
|
|
|
764,979
|
|
|
—
|
|
|
11,945
|
|
|
—
|
|
|
11,945
|
|
||||||||
Total loans, excluding
covered loans
|
45,592
|
|
|
5,632,157
|
|
|
15,341
|
|
|
5,693,090
|
|
|
7,285
|
|
|
61,918
|
|
|
—
|
|
|
69,203
|
|
||||||||
Covered loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Purchased impaired loans
|
—
|
|
|
—
|
|
|
92,621
|
|
|
92,621
|
|
|
—
|
|
|
—
|
|
|
10,762
|
|
|
10,762
|
|
||||||||
Other loans
|
—
|
|
|
29,766
|
|
|
—
|
|
|
29,766
|
|
|
—
|
|
|
667
|
|
|
—
|
|
|
667
|
|
||||||||
Total covered loans
|
—
|
|
|
29,766
|
|
|
92,621
|
|
|
122,387
|
|
|
—
|
|
|
667
|
|
|
10,762
|
|
|
11,429
|
|
||||||||
Reserve for unfunded
commitments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,616
|
|
|
—
|
|
|
1,616
|
|
||||||||
Total loans
|
$
|
45,592
|
|
|
$
|
5,661,923
|
|
|
$
|
107,962
|
|
|
$
|
5,815,477
|
|
|
$
|
7,285
|
|
|
$
|
64,201
|
|
|
$
|
10,762
|
|
|
$
|
82,248
|
|
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial, industrial, and
agricultural
|
$
|
13,178
|
|
|
$
|
2,137,440
|
|
|
$
|
1,722
|
|
|
$
|
2,152,340
|
|
|
$
|
4,046
|
|
|
$
|
26,335
|
|
|
$
|
—
|
|
|
$
|
30,381
|
|
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Office, retail, and industrial
|
26,348
|
|
|
1,327,337
|
|
|
—
|
|
|
1,353,685
|
|
|
214
|
|
|
10,191
|
|
|
—
|
|
|
10,405
|
|
||||||||
Multi-family
|
1,296
|
|
|
331,445
|
|
|
132
|
|
|
332,873
|
|
|
18
|
|
|
1,999
|
|
|
—
|
|
|
2,017
|
|
||||||||
Construction
|
5,712
|
|
|
180,485
|
|
|
—
|
|
|
186,197
|
|
|
178
|
|
|
6,138
|
|
|
—
|
|
|
6,316
|
|
||||||||
Other commercial real estate
|
9,298
|
|
|
793,703
|
|
|
4,070
|
|
|
807,071
|
|
|
704
|
|
|
10,113
|
|
|
—
|
|
|
10,817
|
|
||||||||
Total commercial
real estate
|
42,654
|
|
|
2,632,970
|
|
|
4,202
|
|
|
2,679,826
|
|
|
1,114
|
|
|
28,441
|
|
|
—
|
|
|
29,555
|
|
||||||||
Total corporate loans
|
55,832
|
|
|
4,770,410
|
|
|
5,924
|
|
|
4,832,166
|
|
|
5,160
|
|
|
54,776
|
|
|
—
|
|
|
59,936
|
|
||||||||
Consumer
|
—
|
|
|
738,155
|
|
|
9,684
|
|
|
747,839
|
|
|
—
|
|
|
13,010
|
|
|
—
|
|
|
13,010
|
|
||||||||
Total loans, excluding
covered loans
|
55,832
|
|
|
5,508,565
|
|
|
15,608
|
|
|
5,580,005
|
|
|
5,160
|
|
|
67,786
|
|
|
—
|
|
|
72,946
|
|
||||||||
Covered loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Purchased impaired loans
|
—
|
|
|
—
|
|
|
103,525
|
|
|
103,525
|
|
|
—
|
|
|
—
|
|
|
11,857
|
|
|
11,857
|
|
||||||||
Other loans
|
—
|
|
|
30,830
|
|
|
—
|
|
|
30,830
|
|
|
—
|
|
|
702
|
|
|
—
|
|
|
702
|
|
||||||||
Total covered loans
|
—
|
|
|
30,830
|
|
|
103,525
|
|
|
134,355
|
|
|
—
|
|
|
702
|
|
|
11,857
|
|
|
12,559
|
|
||||||||
Reserve for unfunded
commitments
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,616
|
|
|
—
|
|
|
1,616
|
|
||||||||
Total loans
|
$
|
55,832
|
|
|
$
|
5,539,395
|
|
|
$
|
119,133
|
|
|
$
|
5,714,360
|
|
|
$
|
5,160
|
|
|
$
|
70,104
|
|
|
$
|
11,857
|
|
|
$
|
87,121
|
|
|
March 31, 2014
|
|
|
December 31, 2013
|
||||||||||||||||||||||||||||
|
Recorded Investment In
|
|
|
|
|
Recorded Investment In
|
|
|
||||||||||||||||||||||||
|
Loans with
No Specific
Reserve
|
|
Loans with
a Specific
Reserve
|
|
Unpaid
Principal
Balance
|
|
Specific
Reserve
|
|
|
Loans with
No Specific
Reserve
|
|
Loans with
a Specific
Reserve
|
|
Unpaid
Principal
Balance
|
|
Specific
Reserve
|
||||||||||||||||
Commercial and industrial
|
$
|
6,340
|
|
|
$
|
1,096
|
|
|
$
|
18,279
|
|
|
$
|
2,601
|
|
|
|
$
|
10,047
|
|
|
$
|
3,131
|
|
|
$
|
25,887
|
|
|
$
|
4,046
|
|
Agricultural
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Office, retail, and industrial
|
15,917
|
|
|
8,673
|
|
|
35,303
|
|
|
3,723
|
|
|
|
23,872
|
|
|
2,476
|
|
|
35,868
|
|
|
214
|
|
||||||||
Multi-family
|
1,161
|
|
|
517
|
|
|
1,678
|
|
|
22
|
|
|
|
1,098
|
|
|
198
|
|
|
1,621
|
|
|
18
|
|
||||||||
Construction
|
3,726
|
|
|
1,125
|
|
|
6,121
|
|
|
242
|
|
|
|
4,586
|
|
|
1,126
|
|
|
10,037
|
|
|
178
|
|
||||||||
Other commercial real estate
|
5,114
|
|
|
1,923
|
|
|
8,887
|
|
|
697
|
|
|
|
7,553
|
|
|
1,745
|
|
|
11,335
|
|
|
704
|
|
||||||||
Total commercial real
estate
|
25,918
|
|
|
12,238
|
|
|
51,989
|
|
|
4,684
|
|
|
|
37,109
|
|
|
5,545
|
|
|
58,861
|
|
|
1,114
|
|
||||||||
Total impaired loans
individually evaluated
for impairment
|
$
|
32,258
|
|
|
$
|
13,334
|
|
|
$
|
70,268
|
|
|
$
|
7,285
|
|
|
|
$
|
47,156
|
|
|
$
|
8,676
|
|
|
$
|
84,748
|
|
|
$
|
5,160
|
|
|
Quarters Ended March 31,
|
||||||||||||||
|
2014
|
|
2013
|
||||||||||||
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
(1)
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
(1)
|
||||||||
Commercial and industrial
|
$
|
10,307
|
|
|
$
|
118
|
|
|
$
|
26,937
|
|
|
$
|
2
|
|
Agricultural
|
—
|
|
|
—
|
|
|
1,048
|
|
|
—
|
|
||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|||||||
Office, retail, and industrial
|
25,469
|
|
|
141
|
|
|
24,275
|
|
|
4
|
|
||||
Multi-family
|
1,487
|
|
|
—
|
|
|
1,534
|
|
|
—
|
|
||||
Construction
|
5,282
|
|
|
—
|
|
|
5,536
|
|
|
—
|
|
||||
Other commercial real estate
|
8,168
|
|
|
8
|
|
|
16,109
|
|
|
3
|
|
||||
Total commercial real estate
|
40,406
|
|
|
149
|
|
|
47,454
|
|
|
7
|
|
||||
Total impaired loans
|
$
|
50,713
|
|
|
$
|
267
|
|
|
$
|
75,439
|
|
|
$
|
9
|
|
(1)
|
Recorded using the cash basis of accounting.
|
|
Pass
|
|
Special
Mention
(1) (4)
|
|
Substandard
(2) (4)
|
|
Non-accrual
(3)
|
|
Total
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
March 31, 2014
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
1,864,453
|
|
|
$
|
30,602
|
|
|
$
|
13,782
|
|
|
$
|
8,559
|
|
|
$
|
1,917,396
|
|
Agricultural
|
320,686
|
|
|
293
|
|
|
—
|
|
|
364
|
|
|
321,343
|
|
|||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Office, retail, and industrial
|
1,268,765
|
|
|
29,744
|
|
|
24,617
|
|
|
24,968
|
|
|
1,348,094
|
|
|||||
Multi-family
|
331,054
|
|
|
3,198
|
|
|
899
|
|
|
2,181
|
|
|
337,332
|
|
|||||
Construction
|
149,854
|
|
|
8,810
|
|
|
17,051
|
|
|
5,297
|
|
|
181,012
|
|
|||||
Other commercial real estate
|
780,456
|
|
|
13,551
|
|
|
19,878
|
|
|
9,049
|
|
|
822,934
|
|
|||||
Total commercial real estate
|
2,530,129
|
|
|
55,303
|
|
|
62,445
|
|
|
41,495
|
|
|
2,689,372
|
|
|||||
Total corporate loans
|
$
|
4,715,268
|
|
|
$
|
86,198
|
|
|
$
|
76,227
|
|
|
$
|
50,418
|
|
|
$
|
4,928,111
|
|
December 31, 2013
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial and industrial
|
$
|
1,780,194
|
|
|
$
|
23,806
|
|
|
$
|
14,871
|
|
|
$
|
11,767
|
|
|
$
|
1,830,638
|
|
Agricultural
|
320,839
|
|
|
344
|
|
|
—
|
|
|
519
|
|
|
321,702
|
|
|||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
||||||||||
Office, retail, and industrial
|
1,284,394
|
|
|
28,677
|
|
|
23,538
|
|
|
17,076
|
|
|
1,353,685
|
|
|||||
Multi-family
|
326,901
|
|
|
3,214
|
|
|
910
|
|
|
1,848
|
|
|
332,873
|
|
|||||
Construction
|
153,949
|
|
|
8,309
|
|
|
17,642
|
|
|
6,297
|
|
|
186,197
|
|
|||||
Other commercial real estate
|
761,465
|
|
|
14,877
|
|
|
22,576
|
|
|
8,153
|
|
|
807,071
|
|
|||||
Total commercial real estate
|
2,526,709
|
|
|
55,077
|
|
|
64,666
|
|
|
33,374
|
|
|
2,679,826
|
|
|||||
Total corporate loans
|
$
|
4,627,742
|
|
|
$
|
79,227
|
|
|
$
|
79,537
|
|
|
$
|
45,660
|
|
|
$
|
4,832,166
|
|
(1)
|
Loans categorized as special mention exhibit potential weaknesses that require the close attention of management since these potential weaknesses may result in the deterioration of repayment prospects in the future.
|
(2)
|
Loans categorized as substandard exhibit a well-defined weakness or weaknesses that may jeopardize the liquidation of the debt. These loans continue to accrue interest because they are well secured and collection of principal and interest is expected within a reasonable time.
|
(3)
|
Loans categorized as non-accrual exhibit a well-defined weakness or weaknesses that may jeopardize the liquidation of the debt or result in a loss if the deficiencies are not corrected.
|
(4)
|
Total special mention and substandard loans includes accruing TDRs of
$2.4 million
as of March 31, 2014 and
$2.8 million
as of December 31, 2013.
|
|
Performing
|
|
Non-accrual
|
|
Total
|
||||||
March 31, 2014
|
|
|
|
|
|
||||||
Home equity
|
$
|
468,383
|
|
|
$
|
6,720
|
|
|
$
|
475,103
|
|
1-4 family mortgages
|
235,547
|
|
|
5,014
|
|
|
240,561
|
|
|||
Installment
|
47,250
|
|
|
2,065
|
|
|
49,315
|
|
|||
Total consumer loans
|
$
|
751,180
|
|
|
$
|
13,799
|
|
|
$
|
764,979
|
|
December 31, 2013
|
|
|
|
|
|
||||||
Home equity
|
$
|
420,156
|
|
|
$
|
6,864
|
|
|
$
|
427,020
|
|
1-4 family mortgages
|
270,794
|
|
|
5,198
|
|
|
275,992
|
|
|||
Installment
|
42,751
|
|
|
2,076
|
|
|
44,827
|
|
|||
Total consumer loans
|
$
|
733,701
|
|
|
$
|
14,138
|
|
|
$
|
747,839
|
|
|
As of March 31, 2014
|
|
As of December 31, 2013
|
||||||||||||||||||||
|
Accruing
|
|
Non-accrual
(1)
|
|
Total
|
|
Accruing
|
|
Non-accrual
(1)
|
|
Total
|
||||||||||||
Commercial and industrial
|
$
|
2,721
|
|
|
$
|
282
|
|
|
$
|
3,003
|
|
|
$
|
6,538
|
|
|
$
|
2,121
|
|
|
$
|
8,659
|
|
Agricultural
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Office, retail, and industrial
|
566
|
|
|
—
|
|
|
566
|
|
|
10,271
|
|
|
—
|
|
|
10,271
|
|
||||||
Multi-family
|
1,029
|
|
|
248
|
|
|
1,277
|
|
|
1,038
|
|
|
253
|
|
|
1,291
|
|
||||||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Other commercial real estate
|
398
|
|
|
191
|
|
|
589
|
|
|
4,326
|
|
|
291
|
|
|
4,617
|
|
||||||
Total commercial real estate
|
1,993
|
|
|
439
|
|
|
2,432
|
|
|
15,635
|
|
|
544
|
|
|
16,179
|
|
||||||
Total corporate loans
|
4,714
|
|
|
721
|
|
|
5,435
|
|
|
22,173
|
|
|
2,665
|
|
|
24,838
|
|
||||||
Home equity
|
783
|
|
|
505
|
|
|
1,288
|
|
|
787
|
|
|
512
|
|
|
1,299
|
|
||||||
1-4 family mortgages
|
804
|
|
|
694
|
|
|
1,498
|
|
|
810
|
|
|
906
|
|
|
1,716
|
|
||||||
Installment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total consumer loans
|
1,587
|
|
|
1,199
|
|
|
2,786
|
|
|
1,597
|
|
|
1,418
|
|
|
3,015
|
|
||||||
Total loans
|
$
|
6,301
|
|
|
$
|
1,920
|
|
|
$
|
8,221
|
|
|
$
|
23,770
|
|
|
$
|
4,083
|
|
|
$
|
27,853
|
|
(1)
|
These TDRs are included in non-accrual loans in the preceding tables.
|
|
Number
of
Loans
|
|
Pre-
Modification
Recorded
Investment
|
|
Funds
Disbursed
|
|
Interest
and Escrow
Capitalized
|
|
Charge-offs
|
|
Post-
Modification
Recorded
Investment
|
|||||||||||
Quarter ended March 31, 2013
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
2
|
|
|
$
|
716
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
718
|
|
Office, retail, and industrial
|
1
|
|
|
215
|
|
|
30
|
|
|
—
|
|
|
—
|
|
|
245
|
|
|||||
Construction
|
2
|
|
|
508
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
508
|
|
|||||
1-4 family mortgages
|
1
|
|
|
132
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
136
|
|
|||||
Total TDRs restructured during the period
|
6
|
|
|
$
|
1,571
|
|
|
$
|
30
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
1,607
|
|
|
Quarters Ended March 31,
|
||||||||||||
|
2014
|
|
2013
|
||||||||||
|
Number
of
Loans
|
|
Recorded
Investment
|
|
Number
of
Loans
|
|
Recorded
Investment
|
||||||
Commercial and industrial
|
2
|
|
|
$
|
125
|
|
|
1
|
|
|
$
|
350
|
|
Other commercial real estate
|
—
|
|
|
—
|
|
|
2
|
|
|
156
|
|
||
Total
|
2
|
|
|
$
|
125
|
|
|
3
|
|
|
$
|
506
|
|
|
Quarters Ended
March 31, |
||||||
|
2014
|
|
2013
|
||||
Accruing
|
|
|
|
||||
Beginning balance
|
$
|
23,770
|
|
|
$
|
6,867
|
|
Additions
|
—
|
|
|
1,435
|
|
||
Net payments received
|
(460
|
)
|
|
(29
|
)
|
||
Returned to performing status
|
(18,821
|
)
|
|
(5,037
|
)
|
||
Net transfers from non-accrual
|
1,812
|
|
|
(649
|
)
|
||
Ending balance
|
6,301
|
|
|
2,587
|
|
||
Non-accrual
|
|
|
|
||||
Beginning balance
|
4,083
|
|
|
10,924
|
|
||
Additions
|
—
|
|
|
172
|
|
||
Net payments received
|
(134
|
)
|
|
(495
|
)
|
||
Charge-offs
|
(34
|
)
|
|
(803
|
)
|
||
Transfers to OREO
|
(183
|
)
|
|
(42
|
)
|
||
Loans sold
|
—
|
|
|
—
|
|
||
Net transfers to accruing
|
(1,812
|
)
|
|
649
|
|
||
Ending balance
|
1,920
|
|
|
10,405
|
|
||
Total TDRs
|
$
|
8,221
|
|
|
$
|
12,992
|
|
|
Quarters Ended
March 31, |
||||||
|
2014
|
|
2013
|
||||
Net income
|
$
|
17,664
|
|
|
$
|
14,642
|
|
Net income applicable to non-vested restricted shares
|
(225
|
)
|
|
(212
|
)
|
||
Net income applicable to common shares
|
$
|
17,439
|
|
|
$
|
14,430
|
|
Weighted-average common shares outstanding:
|
|
|
|
||||
Weighted-average common shares outstanding (basic)
|
74,147
|
|
|
73,867
|
|
||
Dilutive effect of common stock equivalents
|
12
|
|
|
7
|
|
||
Weighted-average diluted common shares outstanding
|
74,159
|
|
|
73,874
|
|
||
Basic earnings per common share
|
$
|
0.24
|
|
|
$
|
0.20
|
|
Diluted earnings per common share
|
$
|
0.24
|
|
|
$
|
0.20
|
|
Anti-dilutive shares not included in the computation of diluted earnings per common share
(1)
|
1,316
|
|
|
1,594
|
|
(1)
|
This amount represents outstanding stock options for which the exercise price is greater than the average market price of the Company's common stock.
|
|
Quarters Ended
March 31, |
||||||
|
2014
|
|
2013
|
||||
Income before income tax expense
|
$
|
25,836
|
|
|
$
|
20,935
|
|
Income tax expense:
|
|
|
|
||||
Federal income tax expense
|
$
|
6,278
|
|
|
$
|
4,360
|
|
State income tax expense
|
1,894
|
|
|
1,933
|
|
||
Total income tax expense
|
$
|
8,172
|
|
|
$
|
6,293
|
|
Effective income tax rate
|
31.6
|
%
|
|
30.1
|
%
|
|
March 31,
2014 |
|
December 31,
2013 |
||||
Notional amount outstanding
|
$
|
14,492
|
|
|
$
|
14,730
|
|
Derivative liability fair value
|
(1,356
|
)
|
|
(1,472
|
)
|
||
Weighted-average interest rate received
|
2.07
|
%
|
|
2.08
|
%
|
||
Weighted-average interest rate paid
|
6.39
|
%
|
|
6.39
|
%
|
||
Weighted-average maturity (in years)
|
3.51
|
|
|
3.76
|
|
||
Cash pledged to collateralize net unrealized losses with counterparties
(1)
|
$
|
1,583
|
|
|
$
|
1,583
|
|
Fair value of assets needed to settle derivative transactions
(2)
|
1,385
|
|
|
1,502
|
|
(1)
|
No other collateral was required to be pledged.
|
(2)
|
This amount represents the fair value of assets needed to settle derivative transactions if credit risk related contingent features were triggered.
|
|
March 31,
2014 |
|
December 31,
2013 |
||||
Notional amount outstanding
|
$
|
160,211
|
|
|
$
|
128,319
|
|
Derivative asset fair value
|
3,462
|
|
|
2,235
|
|
||
Derivative liability fair value
|
(3,462
|
)
|
|
(2,235
|
)
|
||
Cash pledged to collateralize net unrealized losses with counterparties
(1)
|
2,410
|
|
|
1,420
|
|
||
Fair value of assets needed to settle derivative transactions
(2)
|
5,287
|
|
|
1,305
|
|
(1)
|
No other collateral was required to be pledged.
|
(2)
|
This amount represents the fair value if credit risk related contingent features were triggered.
|
|
March 31,
2014 |
|
December 31,
2013 |
||||
Commitments to extend credit:
|
|
|
|
||||
Commercial and industrial
|
$
|
1,010,276
|
|
|
$
|
1,020,617
|
|
Agricultural
|
61,960
|
|
|
56,584
|
|
||
Commercial real estate
|
145,347
|
|
|
133,867
|
|
||
Home equity
|
274,639
|
|
|
268,311
|
|
||
Installment
|
11,109
|
|
|
10,746
|
|
||
Overdraft protection program
(1)
|
170,721
|
|
|
170,956
|
|
||
Total commitments
|
$
|
1,674,052
|
|
|
$
|
1,661,081
|
|
Letters of credit:
|
|
|
|
||||
Commercial and industrial
|
$
|
67,851
|
|
|
$
|
64,015
|
|
Agricultural
|
1,344
|
|
|
1,581
|
|
||
Commercial real estate
|
39,230
|
|
|
43,771
|
|
||
Consumer
|
1,028
|
|
|
1,086
|
|
||
Total letters of credit
|
$
|
109,453
|
|
|
$
|
110,453
|
|
Unamortized fees associated with letters of credit
(2)(3)
|
$
|
563
|
|
|
$
|
582
|
|
Remaining weighted-average term, in months
|
8.45
|
|
|
9.83
|
|
||
Remaining lives, in years
|
0.1 to 14.5
|
|
|
0.1 to 14.7
|
|
||
Recourse on assets sold:
|
|
|
|
||||
Unpaid principal balance of loans sold
|
$
|
174,348
|
|
|
$
|
170,330
|
|
Carrying value of recourse obligation
(2)
|
159
|
|
|
162
|
|
(1)
|
Federal regulations regarding electronic fund transfers require customers to affirmatively consent to the institution's overdraft service for automated teller machine and one-time debit card transactions before overdraft fees may be assessed on the account. Customers are provided a specific line for the amount they may overdraw.
|
(2)
|
Included in other liabilities in the Consolidated Statements of Financial Condition.
|
(3)
|
The Company is amortizing these amounts into income over the commitment period.
|
•
|
Level 1 - Quoted prices in active markets for identical assets or liabilities.
|
•
|
Level 2 - Observable inputs other than level 1 prices, such as quoted prices for similar instruments, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.
|
•
|
Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. These inputs require significant management judgment or estimation, some of which use model-based techniques and may be internally developed.
|
|
March 31, 2014
|
|
December 31, 2013
|
||||||||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Trading securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Money market funds
|
$
|
1,415
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,847
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Mutual funds
|
16,359
|
|
|
—
|
|
|
—
|
|
|
15,470
|
|
|
—
|
|
|
—
|
|
||||||
Total trading securities
|
17,774
|
|
|
—
|
|
|
—
|
|
|
17,317
|
|
|
—
|
|
|
—
|
|
||||||
Securities available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. agency securities
|
—
|
|
|
500
|
|
|
—
|
|
|
—
|
|
|
500
|
|
|
—
|
|
||||||
CMOs
|
—
|
|
|
459,461
|
|
|
—
|
|
|
—
|
|
|
475,768
|
|
|
—
|
|
||||||
Other MBSs
|
—
|
|
|
130,905
|
|
|
—
|
|
|
—
|
|
|
136,164
|
|
|
—
|
|
||||||
Municipal securities
|
—
|
|
|
448,843
|
|
|
—
|
|
|
—
|
|
|
461,393
|
|
|
—
|
|
||||||
CDOs
|
—
|
|
|
—
|
|
|
21,666
|
|
|
—
|
|
|
—
|
|
|
18,309
|
|
||||||
Corporate debt securities
|
—
|
|
|
14,994
|
|
|
—
|
|
|
—
|
|
|
14,929
|
|
|
—
|
|
||||||
Hedge fund investment
|
—
|
|
|
1,636
|
|
|
—
|
|
|
—
|
|
|
3,179
|
|
|
—
|
|
||||||
Other equity securities
|
43
|
|
|
2,702
|
|
|
—
|
|
|
44
|
|
|
2,439
|
|
|
—
|
|
||||||
Total securities
available-for-sale
|
43
|
|
|
1,059,041
|
|
|
21,666
|
|
|
44
|
|
|
1,094,372
|
|
|
18,309
|
|
||||||
Mortgage servicing rights
(1)
|
—
|
|
|
—
|
|
|
1,954
|
|
|
—
|
|
|
—
|
|
|
1,893
|
|
||||||
Derivative assets
(1)
|
—
|
|
|
3,462
|
|
|
—
|
|
|
—
|
|
|
2,235
|
|
|
—
|
|
||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative liabilities
(2)
|
$
|
—
|
|
|
$
|
4,818
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,707
|
|
|
$
|
—
|
|
(1)
|
Included in other assets in the Consolidated Statements of Financial Condition.
|
(2)
|
Included in other liabilities in the Consolidated Statements of Financial Condition.
|
|
CDO Number
|
||||||||||||||||||||||
|
1
|
|
2
|
|
3
|
|
4
|
|
5
|
|
6
|
||||||||||||
Characteristics:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Class
|
C-1
|
|
|
C-1
|
|
|
C-1
|
|
|
B1
|
|
|
C
|
|
|
C
|
|
||||||
Original par
|
$
|
17,500
|
|
|
$
|
15,000
|
|
|
$
|
15,000
|
|
|
$
|
15,000
|
|
|
$
|
10,000
|
|
|
$
|
6,500
|
|
Amortized cost
|
7,140
|
|
|
5,598
|
|
|
12,377
|
|
|
13,922
|
|
|
1,317
|
|
|
6,178
|
|
||||||
Fair value
|
5,002
|
|
|
636
|
|
|
4,666
|
|
|
5,883
|
|
|
3,134
|
|
|
2,345
|
|
||||||
Lowest credit rating (Moody’s)
|
Ca
|
|
|
Ca
|
|
|
Ca
|
|
|
Ca
|
|
|
C
|
|
|
Ca
|
|
||||||
Number of underlying Issuers
|
43
|
|
|
55
|
|
|
57
|
|
|
59
|
|
|
55
|
|
|
76
|
|
||||||
Percent of Issuers currently
performing
|
83.7
|
%
|
|
80.0
|
%
|
|
77.2
|
%
|
|
54.2
|
%
|
|
69.1
|
%
|
|
69.7
|
%
|
||||||
Current deferral and default percent
(1)
|
8.7
|
%
|
|
11.4
|
%
|
|
11.3
|
%
|
|
34.8
|
%
|
|
32.4
|
%
|
|
27.1
|
%
|
||||||
Expected future deferral and
default percent
(2)
|
11.9
|
%
|
|
12.6
|
%
|
|
15.8
|
%
|
|
24.2
|
%
|
|
16.2
|
%
|
|
11.3
|
%
|
||||||
Excess subordination percent
(3)
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
3.6
|
%
|
||||||
Discount rate risk adjustment
(4)
|
12.5
|
%
|
|
14.3
|
%
|
|
13.3
|
%
|
|
11.8
|
%
|
|
13.3
|
%
|
|
12.3
|
%
|
||||||
Significant unobservable inputs, weighted average of Issuers:
|
|
|
|
|
|
|
|
|
|||||||||||||||
Probability of prepayment
|
15.3
|
%
|
|
7.5
|
%
|
|
4.5
|
%
|
|
6.0
|
%
|
|
5.3
|
%
|
|
3.5
|
%
|
||||||
Probability of default
|
18.1
|
%
|
|
23.2
|
%
|
|
21.2
|
%
|
|
24.9
|
%
|
|
35.1
|
%
|
|
29.2
|
%
|
||||||
Loss given default
|
88.0
|
%
|
|
83.5
|
%
|
|
89.0
|
%
|
|
93.2
|
%
|
|
93.1
|
%
|
|
96.0
|
%
|
||||||
Probability of deferral cure
|
32.9
|
%
|
|
20.2
|
%
|
|
29.5
|
%
|
|
56.3
|
%
|
|
37.3
|
%
|
|
34.8
|
%
|
(1)
|
Represents actual deferrals and defaults, net of recoveries, as a percent of the original collateral.
|
(2)
|
Represents expected future deferrals and defaults, net of recoveries, as a percent of the remaining performing collateral. The probability of future defaults is derived for each Issuer based on a credit analysis. The associated assumed loss given default is based on historical default and recovery information provided by a nationally recognized credit rating agency and is assumed to be
90%
for banks,
85%
for insurance companies, and
100%
for Issuers that have already defaulted.
|
(3)
|
Represents additional defaults that the CDO can absorb before the security experiences any credit impairment. The excess subordination percentage is calculated by dividing the amount of potential additional loss that can be absorbed (before the receipt of all expected future principal and interest payments is affected) by the total balance of performing collateral.
|
(4)
|
Cash flows are discounted at LIBOR plus this adjustment to reflect the higher risk inherent in these securities.
|
|
Quarters Ended
March 31,
|
||||||
|
2014
|
|
2013
|
||||
Beginning balance
|
$
|
18,309
|
|
|
$
|
12,129
|
|
Change in other comprehensive income (loss)
(1)
|
3,357
|
|
|
795
|
|
||
Ending balance
(2)
|
$
|
21,666
|
|
|
$
|
12,924
|
|
Change in unrealized losses recognized in earnings related to securities still held at end of period
|
$
|
—
|
|
|
$
|
—
|
|
(1)
|
Included in unrealized holding gains (losses) in the Consolidated Statements of Comprehensive Income.
|
(2)
|
There were no purchases, issuances, or settlements of CDOs during the periods presented.
|
|
March 31, 2014
|
|
December 31, 2013
|
||||||||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||
Collateral-dependent impaired
loans
(1)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
22,583
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
13,103
|
|
OREO
(2)
|
—
|
|
|
—
|
|
|
7,317
|
|
|
—
|
|
|
—
|
|
|
13,347
|
|
||||||
Assets held-for-sale
(3)
|
—
|
|
|
—
|
|
|
3,985
|
|
|
—
|
|
|
—
|
|
|
4,027
|
|
(1)
|
Includes impaired loans with charge-offs and impaired loans with a specific reserve during the periods presented.
|
(2)
|
Includes OREO and covered OREO with fair value adjustments subsequent to initial transfer that occurred during the periods presented.
|
(3)
|
Included in premises, furniture, and equipment in the Consolidated Statements of Financial Condition.
|
|
|
March 31, 2014
|
|
December 31, 2013
|
|||||||||||||
|
Fair Value Hierarchy
Level
|
|
Carrying
Amount
|
|
Fair Value
|
|
Carrying
Amount
|
|
Fair Value
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||
Cash and due from banks
|
1
|
|
$
|
198,544
|
|
|
$
|
198,544
|
|
|
$
|
110,417
|
|
|
$
|
110,417
|
|
Interest-bearing deposits in other banks
|
2
|
|
393,768
|
|
|
393,768
|
|
|
476,824
|
|
|
476,824
|
|
||||
Securities held-to-maturity
|
2
|
|
43,251
|
|
|
42,574
|
|
|
44,322
|
|
|
43,387
|
|
||||
FHLB and Federal Reserve Bank stock
|
2
|
|
35,161
|
|
|
35,161
|
|
|
35,161
|
|
|
35,161
|
|
||||
Net loans
|
3
|
|
5,734,845
|
|
|
5,650,726
|
|
|
5,628,855
|
|
|
5,544,146
|
|
||||
FDIC indemnification asset
|
3
|
|
15,537
|
|
|
7,640
|
|
|
16,585
|
|
|
7,829
|
|
||||
Investment in BOLI
|
3
|
|
193,673
|
|
|
193,673
|
|
|
193,167
|
|
|
193,167
|
|
||||
Accrued interest receivable
|
3
|
|
25,922
|
|
|
25,922
|
|
|
25,735
|
|
|
25,735
|
|
||||
Other interest earning assets
|
3
|
|
5,810
|
|
|
6,025
|
|
|
6,550
|
|
|
6,809
|
|
||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||
Deposits
|
2
|
|
$
|
6,816,757
|
|
|
$
|
6,814,218
|
|
|
$
|
6,766,101
|
|
|
$
|
6,765,404
|
|
Borrowed funds
|
2
|
|
223,699
|
|
|
225,500
|
|
|
224,342
|
|
|
226,839
|
|
||||
Senior and subordinated debt
|
1
|
|
190,964
|
|
|
201,958
|
|
|
190,932
|
|
|
201,147
|
|
||||
Accrued interest payable
|
2
|
|
5,253
|
|
|
5,253
|
|
|
2,400
|
|
|
2,400
|
|
•
|
Net Interest Income
- Net interest income, our primary source of revenue, equals the difference between interest income and fees earned on interest-earning assets and interest expense incurred on interest-bearing liabilities.
|
•
|
Net Interest Margin -
Net interest margin equals net interest income divided by total average interest-earning assets.
|
•
|
Noninterest Income
- Noninterest income is the income we earn from fee-based revenues, investment in bank-owned life insurance ("BOLI") and other income, and non-operating revenues.
|
•
|
Asset Quality
- Asset quality represents an estimation of the quality of our loan portfolio, including an assessment of the credit risk related to existing and potential loss exposure, and can be evaluated using a number of quantitative measures, such as non-performing loans to total loans.
|
•
|
Regulatory Capital
- Our regulatory capital is currently classified in one of the following two tiers: (i) Tier 1 capital consists of common equity, retained earnings, and qualifying trust-preferred securities, less goodwill and most intangible assets and (ii) Tier 2 capital includes qualifying subordinated debt and the allowance for credit losses, subject to limitations.
|
|
Quarters Ended
March 31, |
||||||
|
2014
|
|
2013
|
||||
Operating Results
|
|
|
|
||||
Interest income
|
$
|
69,690
|
|
|
$
|
71,045
|
|
Interest expense
|
5,995
|
|
|
7,197
|
|
||
Net interest income
|
63,695
|
|
|
63,848
|
|
||
Provision for loan and covered loan losses
|
1,441
|
|
|
5,674
|
|
||
Noninterest income
|
27,250
|
|
|
27,575
|
|
||
Noninterest expense
|
63,668
|
|
|
64,814
|
|
||
Income before income tax expense
|
25,836
|
|
|
20,935
|
|
||
Income tax expense
|
8,172
|
|
|
6,293
|
|
||
Net income
|
17,664
|
|
|
14,642
|
|
||
Net income applicable to non-vested restricted shares
|
(225
|
)
|
|
(212
|
)
|
||
Net income applicable to common shares
|
$
|
17,439
|
|
|
$
|
14,430
|
|
Weighted average diluted common shares outstanding
|
74,159
|
|
|
73,874
|
|
||
Diluted earnings per common share
|
$
|
0.24
|
|
|
$
|
0.20
|
|
Performance Ratios
(1)
|
|
|
|
||||
Return on average common equity
|
6.97
|
%
|
|
6.17
|
%
|
||
Return on average assets
|
0.86
|
%
|
|
0.74
|
%
|
||
Net interest margin – tax equivalent
|
3.61
|
%
|
|
3.77
|
%
|
||
Efficiency ratio
(2)
|
66.66
|
%
|
|
66.50
|
%
|
(1)
|
All ratios are presented on an annualized basis.
|
(2)
|
The efficiency ratio expresses noninterest expense, excluding OREO expense, as a percentage of tax-equivalent net interest income plus total fee-based revenues, other income, net trading gains (losses), and the tax-equivalent adjustment on BOLI income.
|
|
March 31,
2014 |
|
December 31,
2013 |
|
March 31,
2013 |
|
March 31, 2014
Change From |
||||||||||||
December 31,
2013 |
|
March 31,
2013 |
|||||||||||||||||
Balance Sheet Highlights
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets
|
$
|
8,328,519
|
|
|
$
|
8,253,407
|
|
|
$
|
8,055,819
|
|
|
$
|
75,112
|
|
|
$
|
272,700
|
|
Total loans, excluding covered loans
|
5,693,090
|
|
|
5,580,005
|
|
|
5,175,271
|
|
|
113,085
|
|
|
517,819
|
|
|||||
Total loans, including covered loans
|
5,815,477
|
|
|
5,714,360
|
|
|
5,361,958
|
|
|
101,117
|
|
|
453,519
|
|
|||||
Total deposits
|
6,816,757
|
|
|
6,766,101
|
|
|
6,600,795
|
|
|
50,656
|
|
|
215,962
|
|
|||||
Transactional deposits
|
5,631,879
|
|
|
5,558,318
|
|
|
5,251,715
|
|
|
73,561
|
|
|
380,164
|
|
|||||
Loans-to-deposits ratio
|
85.3
|
%
|
|
84.5
|
%
|
|
81.2
|
%
|
|
|
|
|
|||||||
Transactional deposits to total deposits
|
82.6
|
%
|
|
82.1
|
%
|
|
79.6
|
%
|
|
|
|
|
|
March 31,
2014 |
|
December 31,
2013 |
|
March 31,
2013 |
|
March 31, 2014
Change From |
||||||||||||
December 31,
2013 |
|
March 31,
2013 |
|||||||||||||||||
Asset Quality Highlights
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-accrual loans
(1)
|
$
|
64,217
|
|
|
$
|
59,798
|
|
|
$
|
95,397
|
|
|
$
|
4,419
|
|
|
$
|
(31,180
|
)
|
90 days or more past due loans
(still accruing interest)
(1)
|
4,973
|
|
|
3,708
|
|
|
5,552
|
|
|
1,265
|
|
|
(579
|
)
|
|||||
Total non-performing loans
(1)
|
69,190
|
|
|
63,506
|
|
|
100,949
|
|
|
5,684
|
|
|
(31,759
|
)
|
|||||
Accruing TDRs
(1)
|
6,301
|
|
|
23,770
|
|
|
2,587
|
|
|
(17,469
|
)
|
|
3,714
|
|
|||||
OREO
(1)
|
30,026
|
|
|
32,473
|
|
|
39,994
|
|
|
(2,447
|
)
|
|
(9,968
|
)
|
|||||
Total non-performing assets
(1)
|
$
|
105,517
|
|
|
$
|
119,749
|
|
|
$
|
143,530
|
|
|
$
|
(14,232
|
)
|
|
$
|
(38,013
|
)
|
30-89 days past due loans (still accruing
interest)
(1)
|
$
|
12,861
|
|
|
$
|
20,742
|
|
|
$
|
22,222
|
|
|
$
|
(7,881
|
)
|
|
$
|
(9,361
|
)
|
Performing potential problem loans
(1)(2)
|
160,004
|
|
|
155,954
|
|
|
202,665
|
|
|
4,050
|
|
|
(42,661
|
)
|
|||||
Allowance for credit losses
|
82,248
|
|
|
87,121
|
|
|
100,457
|
|
|
(4,873
|
)
|
|
(18,209
|
)
|
|||||
Allowance for credit losses to loans
|
1.41
|
%
|
|
1.52
|
%
|
|
1.87
|
%
|
|
|
|
|
|||||||
Allowance for credit losses to loans
(1)
|
1.24
|
%
|
|
1.34
|
%
|
|
1.70
|
%
|
|
|
|
|
|||||||
Allowance for credit losses to
non-accrual loans
(1)
|
110.28
|
%
|
|
124.69
|
%
|
|
92.49
|
%
|
|
|
|
|
(1)
|
Excludes covered loans and covered OREO. For a discussion of covered loans and covered OREO, refer to Note 5 of “Notes to Condensed Consolidated Financial Statements” in Part I, Item 1 of this Form 10-Q. Asset quality, including covered loans and covered OREO, is included in the “Loan Portfolio and Credit Quality” section below.
|
(2)
|
Total performing potential problem loans excludes accruing TDRs of
$2.4 million
as of March 31, 2014,
$2.8 million
as of December 31, 2013, and
$1.3 million
as of March 31, 2013.
|
|
Quarters Ended March 31,
|
|
|
Attribution of Change
in Net Interest Income
(1)
|
|||||||||||||||||||||||||||||
|
2014
|
|
|
2013
|
|
|
|||||||||||||||||||||||||||
|
Average
Balance
|
|
Interest
|
|
Yield/
Rate (%)
|
|
|
Average
Balance
|
|
Interest
|
|
Yield/
Rate (%)
|
|
|
Volume
|
|
Yield/
Rate
|
|
Total
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Other interest-earning assets
|
$
|
537,137
|
|
|
$
|
382
|
|
|
0.29
|
|
|
$
|
584,170
|
|
|
$
|
434
|
|
|
0.30
|
|
|
$
|
(16
|
)
|
|
$
|
(36
|
)
|
|
$
|
(52
|
)
|
Trading securities
|
17,470
|
|
|
28
|
|
|
0.64
|
|
|
14,357
|
|
|
36
|
|
|
1.00
|
|
|
12
|
|
|
(20
|
)
|
|
(8
|
)
|
|||||||
Investment securities
(2)
|
1,167,803
|
|
|
10,403
|
|
|
3.56
|
|
|
1,175,063
|
|
|
9,940
|
|
|
3.38
|
|
|
(60
|
)
|
|
523
|
|
|
463
|
|
|||||||
FHLB and Federal Reserve
Bank stock
|
35,161
|
|
|
335
|
|
|
3.81
|
|
|
47,232
|
|
|
339
|
|
|
2.87
|
|
|
(115
|
)
|
|
111
|
|
|
(4
|
)
|
|||||||
Loans
(2)(3)
|
5,722,457
|
|
|
61,518
|
|
|
4.36
|
|
|
5,372,034
|
|
|
63,450
|
|
|
4.79
|
|
|
3,055
|
|
|
(4,987
|
)
|
|
(1,932
|
)
|
|||||||
Total interest-earning assets
(2)
|
7,480,028
|
|
|
72,666
|
|
|
3.93
|
|
|
7,192,856
|
|
|
74,199
|
|
|
4.18
|
|
|
2,876
|
|
|
(4,409
|
)
|
|
(1,533
|
)
|
|||||||
Cash and due from banks
|
111,500
|
|
|
|
|
|
|
|
110,073
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Allowance for loan and
covered loan losses
|
(86,726
|
)
|
|
|
|
|
|
|
(99,086
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other assets
|
777,685
|
|
|
|
|
|
|
|
867,458
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total assets
|
$
|
8,282,487
|
|
|
|
|
|
|
|
$
|
8,071,301
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities and Stockholders’ Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Savings deposits
|
$
|
1,159,643
|
|
|
202
|
|
|
0.07
|
|
|
$
|
1,107,213
|
|
|
247
|
|
|
0.09
|
|
|
13
|
|
|
(58
|
)
|
|
(45
|
)
|
|||||
NOW accounts
|
1,181,297
|
|
|
170
|
|
|
0.06
|
|
|
1,145,482
|
|
|
175
|
|
|
0.06
|
|
|
5
|
|
|
(10
|
)
|
|
(5
|
)
|
|||||||
Money market deposits
|
1,311,998
|
|
|
420
|
|
|
0.13
|
|
|
1,251,235
|
|
|
470
|
|
|
0.15
|
|
|
25
|
|
|
(75
|
)
|
|
(50
|
)
|
|||||||
Time deposits
|
1,196,449
|
|
|
1,805
|
|
|
0.61
|
|
|
1,374,529
|
|
|
2,428
|
|
|
0.72
|
|
|
(293
|
)
|
|
(330
|
)
|
|
(623
|
)
|
|||||||
Borrowed funds
|
222,491
|
|
|
383
|
|
|
0.70
|
|
|
199,891
|
|
|
442
|
|
|
0.90
|
|
|
61
|
|
|
(120
|
)
|
|
(59
|
)
|
|||||||
Senior and subordinated debt
|
190,949
|
|
|
3,015
|
|
|
6.40
|
|
|
214,796
|
|
|
3,435
|
|
|
6.49
|
|
|
(377
|
)
|
|
(43
|
)
|
|
(420
|
)
|
|||||||
Total interest-bearing
liabilities
|
5,262,827
|
|
|
5,995
|
|
|
0.46
|
|
|
5,293,146
|
|
|
7,197
|
|
|
0.55
|
|
|
(566
|
)
|
|
(636
|
)
|
|
(1,202
|
)
|
|||||||
Demand deposits
|
1,928,289
|
|
|
|
|
|
|
|
1,740,825
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other liabilities
|
75,969
|
|
|
|
|
|
|
|
89,270
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Stockholders’ equity - common
|
1,015,402
|
|
|
|
|
|
|
|
948,060
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total liabilities and
stockholders’ equity
|
$
|
8,282,487
|
|
|
|
|
|
|
|
$
|
8,071,301
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income/margin
(2)
|
|
|
$
|
66,671
|
|
|
3.61
|
|
|
|
|
$
|
67,002
|
|
|
3.77
|
|
|
$
|
3,442
|
|
|
$
|
(3,773
|
)
|
|
$
|
(331
|
)
|
||||
Net interest income (GAAP)
|
|
|
$
|
63,695
|
|
|
|
|
|
|
|
$
|
63,848
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Tax equivalent adjustment
|
|
|
2,976
|
|
|
|
|
|
|
|
3,154
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Tax-equivalent net interest
income
|
|
|
$
|
66,671
|
|
|
|
|
|
|
|
$
|
67,002
|
|
|
|
|
|
|
|
|
|
|
(1)
|
For purposes of this table, changes which are not due solely to volume changes or rate changes are allocated to these categories on the basis of the percentage relationship of each to the sum of the two.
|
(2)
|
Interest income and yields are presented on a tax-equivalent basis, assuming a federal income tax rate of 35%.
|
(3)
|
This item includes covered interest-earning assets consisting of loans acquired through the Company’s Federal Deposit Insurance Corporation (“FDIC”)-assisted transactions with loss share agreements and the related FDIC indemnification asset. For additional discussion, please refer to Note 5 of “Notes to the Condensed Consolidated Financial Statements” in Part I, Item 1 of this Form 10-Q.
|
|
Quarters Ended
March 31, |
|
|
|||||||
|
2014
|
|
2013
|
|
% Change
|
|||||
Service charges on deposit accounts
|
$
|
8,020
|
|
|
$
|
8,677
|
|
|
(7.6
|
)
|
Wealth management fees
|
6,457
|
|
|
5,839
|
|
|
10.6
|
|
||
Card-based fees
(1)
|
5,335
|
|
|
5,076
|
|
|
5.1
|
|
||
Mortgage banking income
|
1,115
|
|
|
1,966
|
|
|
(43.3
|
)
|
||
Merchant servicing fees
(2)
|
2,709
|
|
|
2,554
|
|
|
6.1
|
|
||
Other service charges, commissions, and fees
(2)
|
1,413
|
|
|
1,646
|
|
|
(14.2
|
)
|
||
Total fee-based revenues
|
25,049
|
|
|
25,758
|
|
|
(2.8
|
)
|
||
Net securities gains
(3)
|
1,073
|
|
|
—
|
|
|
N/M
|
|
||
Other income
(4)(6)
|
937
|
|
|
781
|
|
|
20.0
|
|
||
Net trading gains
(5)(6)
|
191
|
|
|
1,036
|
|
|
(81.6
|
)
|
||
Total noninterest income
|
$
|
27,250
|
|
|
$
|
27,575
|
|
|
(1.2
|
)
|
(1)
|
Card-based fees consist of debit and credit card interchange fees for processing transactions as well as various fees on both customer and non-customer automated teller machine (“ATM”) and point-of-sale transactions processed through the ATM and point-of-sale networks.
|
(2)
|
These line items are included in other service charges, commissions, and fees in the Condensed Consolidated Statements of Income.
|
(3)
|
For a discussion of this item, see the “Investment Portfolio Management” section below.
|
(4)
|
Other income consists of various items, including safe deposit box rentals, miscellaneous recoveries, and gains on the sales of various assets.
|
(5)
|
Net trading gains result from changes in the fair value of diversified investment securities held in a grantor trust under deferred compensation arrangements and are substantially offset by nonqualified plan expense for each period presented.
|
(6)
|
These line items are included in other income in the Condensed Consolidated Statements of Income.
|
|
Quarters Ended
March 31, |
|
|
|||||||
|
2014
|
|
2013
|
|
% Change
|
|||||
Salaries and employee benefits:
|
|
|
|
|
|
|||||
Salaries and wages
|
$
|
27,197
|
|
|
$
|
27,839
|
|
|
(2.3
|
)
|
Nonqualified plan expense
|
186
|
|
|
1,124
|
|
|
(83.5
|
)
|
||
Retirement and other employee benefits
|
6,108
|
|
|
7,606
|
|
|
(19.7
|
)
|
||
Total salaries and employee benefits
|
33,491
|
|
|
36,569
|
|
|
(8.4
|
)
|
||
Net occupancy and equipment expense
|
9,391
|
|
|
8,147
|
|
|
15.3
|
|
||
Professional services:
|
|
|
|
|
|
|||||
Loan remediation costs
|
1,991
|
|
|
2,139
|
|
|
(6.9
|
)
|
||
Other professional services
|
3,398
|
|
|
3,079
|
|
|
10.4
|
|
||
Professional services
|
5,389
|
|
|
5,218
|
|
|
3.3
|
|
||
Technology and related costs
|
3,074
|
|
|
2,483
|
|
|
23.8
|
|
||
Net OREO expense
|
1,556
|
|
|
1,799
|
|
|
(13.5
|
)
|
||
Advertising and promotions
|
1,613
|
|
|
1,410
|
|
|
14.4
|
|
||
Merchant card expense
|
2,213
|
|
|
2,044
|
|
|
8.3
|
|
||
Cardholder expenses
|
1,014
|
|
|
929
|
|
|
9.1
|
|
||
Other expenses
|
5,927
|
|
|
6,215
|
|
|
(4.6
|
)
|
||
Total noninterest expense
|
$
|
63,668
|
|
|
$
|
64,814
|
|
|
(1.8
|
)
|
|
Quarters Ended
March 31, |
||||||
|
2014
|
|
2013
|
||||
Income before income tax expense
|
$
|
25,836
|
|
|
$
|
20,935
|
|
Income tax expense:
|
|
|
|
||||
Federal income tax expense
|
$
|
6,278
|
|
|
$
|
4,360
|
|
State income tax expense
|
1,894
|
|
|
1,933
|
|
||
Total income tax expense
|
$
|
8,172
|
|
|
$
|
6,293
|
|
Effective income tax rate
|
31.6
|
%
|
|
30.1
|
%
|
|
March 31, 2014
|
|
December 31, 2013
|
||||||||||||||||||||||||
|
Amortized Cost
|
|
Net
Unrealized
Gains
(Losses)
|
|
Fair Value
|
|
% of Total
|
|
Amortized Cost
|
|
Net
Unrealized
Gains
(Losses)
|
|
Fair Value
|
|
% of Total
|
||||||||||||
Securities Available-for-Sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
U.S. agency securities
|
$
|
500
|
|
|
$
|
—
|
|
|
$
|
500
|
|
|
—
|
|
$
|
500
|
|
|
$
|
—
|
|
|
$
|
500
|
|
|
—
|
CMOs
|
470,265
|
|
|
(10,804
|
)
|
|
459,461
|
|
|
40.9
|
|
490,962
|
|
|
(15,194
|
)
|
|
475,768
|
|
|
41.2
|
||||||
Other MBSs
|
128,733
|
|
|
2,172
|
|
|
130,905
|
|
|
11.7
|
|
135,097
|
|
|
1,067
|
|
|
136,164
|
|
|
11.8
|
||||||
Municipal securities
|
441,171
|
|
|
7,672
|
|
|
448,843
|
|
|
40.0
|
|
457,318
|
|
|
4,075
|
|
|
461,393
|
|
|
39.9
|
||||||
CDOs
|
46,532
|
|
|
(24,866
|
)
|
|
21,666
|
|
|
1.9
|
|
46,532
|
|
|
(28,223
|
)
|
|
18,309
|
|
|
1.6
|
||||||
Corporate debt
securities
|
12,997
|
|
|
1,997
|
|
|
14,994
|
|
|
1.3
|
|
12,999
|
|
|
1,930
|
|
|
14,929
|
|
|
1.3
|
||||||
Equity securities
|
3,324
|
|
|
1,057
|
|
|
4,381
|
|
|
0.4
|
|
3,706
|
|
|
1,956
|
|
|
5,662
|
|
|
0.5
|
||||||
Total available-for-
sale securities
|
1,103,522
|
|
|
(22,772
|
)
|
|
1,080,750
|
|
|
96.2
|
|
1,147,114
|
|
|
(34,389
|
)
|
|
1,112,725
|
|
|
96.3
|
||||||
Securities Held-to-Maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Municipal securities
|
43,251
|
|
|
(677
|
)
|
|
42,574
|
|
|
3.8
|
|
44,322
|
|
|
(935
|
)
|
|
43,387
|
|
|
3.7
|
||||||
Total securities
|
$
|
1,146,773
|
|
|
$
|
(23,449
|
)
|
|
$
|
1,123,324
|
|
|
100.0
|
|
$
|
1,191,436
|
|
|
$
|
(35,324
|
)
|
|
$
|
1,156,112
|
|
|
100.0
|
|
March 31, 2014
|
|
December 31, 2013
|
||||||||||||||
|
Effective
|
|
Average
|
|
Yield to
|
|
Effective
|
|
Average
|
|
Yield to
|
||||||
|
Duration
(1)
|
|
Life
(2)
|
|
Maturity
(3)
|
|
Duration
(1)
|
|
Life
(2)
|
|
Maturity
(3)
|
||||||
Securities Available-for-Sale
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. agency securities
|
1.99
|
%
|
|
2.00
|
|
|
0.49
|
%
|
|
2.23
|
%
|
|
2.25
|
|
|
0.49
|
%
|
CMOs
|
4.18
|
%
|
|
4.09
|
|
|
2.12
|
%
|
|
4.48
|
%
|
|
4.26
|
|
|
1.86
|
%
|
Other MBSs
|
3.63
|
%
|
|
4.67
|
|
|
2.78
|
%
|
|
3.93
|
%
|
|
4.85
|
|
|
2.45
|
%
|
Municipal securities
|
4.65
|
%
|
|
3.00
|
|
|
5.51
|
%
|
|
5.11
|
%
|
|
3.27
|
|
|
5.53
|
%
|
CDOs
|
N/M
|
|
|
N/M
|
|
|
N/M
|
|
|
N/M
|
|
|
N/M
|
|
|
N/M
|
|
Corporate debt securities
|
4.78
|
%
|
|
6.93
|
|
|
6.39
|
%
|
|
4.86
|
%
|
|
7.18
|
|
|
6.39
|
%
|
Equity securities
|
N/M
|
|
|
N/M
|
|
|
N/M
|
|
|
N/M
|
|
|
N/M
|
|
|
N/M
|
|
Total available-for-sale securities
|
4.32
|
%
|
|
3.74
|
|
|
3.67
|
%
|
|
4.68
|
%
|
|
3.95
|
|
|
3.52
|
%
|
Securities Held-to-Maturity
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Municipal securities
|
6.94
|
%
|
|
11.88
|
|
|
5.47
|
%
|
|
6.50
|
%
|
|
11.84
|
|
|
5.47
|
%
|
Total securities
|
4.42
|
%
|
|
4.06
|
|
|
3.74
|
%
|
|
4.75
|
%
|
|
4.26
|
|
|
3.60
|
%
|
(1)
|
The effective duration represents the estimated percentage change in the fair value of the securities portfolio given a 100 basis point increase or decrease in interest rates. This measure is used to evaluate the portfolio’s price volatility at a single point in time and is not intended to be a precise predictor of future fair values since those values will be influenced by a number of factors.
|
(2)
|
Average life is presented in years and represents the weighted-average time to receive half of all future cash flows using the dollar amount of principal paydowns, including estimated principal prepayments, as the weighting factor.
|
(3)
|
Yields on municipal securities are reflected on a tax-equivalent basis, assuming a federal income tax rate of 35%.
|
|
March 31,
2014 |
|
% of
Total
|
|
December 31,
2013 |
|
% of
Total
|
|
Annualized
% Change
|
|||||
Commercial and industrial
|
$
|
1,917,396
|
|
|
33.7
|
|
$
|
1,830,638
|
|
|
32.8
|
|
19.0
|
|
Agricultural
|
321,343
|
|
|
5.6
|
|
321,702
|
|
|
5.8
|
|
(0.4
|
)
|
||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|||||
Office
|
454,962
|
|
|
8.0
|
|
459,202
|
|
|
8.2
|
|
(3.7
|
)
|
||
Retail
|
389,010
|
|
|
6.8
|
|
392,576
|
|
|
7.0
|
|
(3.6
|
)
|
||
Industrial
|
504,122
|
|
|
8.9
|
|
501,907
|
|
|
9.0
|
|
1.8
|
|
||
Multi-family
|
337,332
|
|
|
5.9
|
|
332,873
|
|
|
6.0
|
|
5.4
|
|
||
Construction
|
181,012
|
|
|
3.2
|
|
186,197
|
|
|
3.3
|
|
(11.1
|
)
|
||
Other commercial real estate
|
822,934
|
|
|
14.5
|
|
807,071
|
|
|
14.5
|
|
7.9
|
|
||
Total commercial real estate
|
2,689,372
|
|
|
47.3
|
|
2,679,826
|
|
|
48.0
|
|
1.4
|
|
||
Total corporate loans
|
4,928,111
|
|
|
86.6
|
|
4,832,166
|
|
|
86.6
|
|
7.9
|
|
||
Home equity
|
475,103
|
|
|
8.3
|
|
427,020
|
|
|
7.7
|
|
45.0
|
|
||
1-4 family mortgages
|
240,561
|
|
|
4.2
|
|
275,992
|
|
|
4.9
|
|
(51.4
|
)
|
||
Installment
|
49,315
|
|
|
0.9
|
|
44,827
|
|
|
0.8
|
|
40.0
|
|
||
Total consumer loans
|
764,979
|
|
|
13.4
|
|
747,839
|
|
|
13.4
|
|
9.2
|
|
||
Total loans, excluding covered loans
|
5,693,090
|
|
|
100.0
|
|
5,580,005
|
|
|
100.0
|
|
8.1
|
|
||
Covered loans
|
122,387
|
|
|
|
|
134,355
|
|
|
|
|
(35.6
|
)
|
||
Total loans
|
$
|
5,815,477
|
|
|
|
|
$
|
5,714,360
|
|
|
|
|
7.1
|
|
|
|
March 31, 2014
|
|
% of
Total |
|
December 31, 2013
|
|
% of
Total |
||||
Office, retail, and industrial:
|
|
|
|
|
|
|
|
|
||||
Office
|
|
$
|
454,962
|
|
|
16.9
|
|
$
|
459,202
|
|
|
17.1
|
Retail
|
|
389,010
|
|
|
14.5
|
|
392,576
|
|
|
14.7
|
||
Industrial
|
|
504,122
|
|
|
18.7
|
|
501,907
|
|
|
18.7
|
||
Total office, retail, and industrial
|
|
1,348,094
|
|
|
50.1
|
|
1,353,685
|
|
|
50.5
|
||
Multi-family
|
|
337,332
|
|
|
12.6
|
|
332,873
|
|
|
12.4
|
||
Construction
|
|
181,012
|
|
|
6.7
|
|
186,197
|
|
|
7.0
|
||
Other commercial real estate:
|
|
|
|
|
|
|
|
|
||||
Rental properties
|
|
112,753
|
|
|
4.2
|
|
112,887
|
|
|
4.2
|
||
Service stations and truck stops
|
|
77,798
|
|
|
2.9
|
|
83,237
|
|
|
3.1
|
||
Warehouses and storage
|
|
122,245
|
|
|
4.5
|
|
122,325
|
|
|
4.6
|
||
Hotels
|
|
60,136
|
|
|
2.3
|
|
62,451
|
|
|
2.3
|
||
Restaurants
|
|
75,210
|
|
|
2.8
|
|
79,809
|
|
|
3.0
|
||
Automobile dealers
|
|
36,148
|
|
|
1.3
|
|
37,504
|
|
|
1.4
|
||
Recreational
|
|
49,805
|
|
|
1.9
|
|
56,327
|
|
|
2.1
|
||
Religious
|
|
32,184
|
|
|
1.2
|
|
32,614
|
|
|
1.2
|
||
Multi-use properties
|
|
157,317
|
|
|
5.8
|
|
118,351
|
|
|
4.4
|
||
Other
|
|
99,338
|
|
|
3.7
|
|
101,566
|
|
|
3.8
|
||
Total other commercial real estate
|
|
822,934
|
|
|
30.6
|
|
807,071
|
|
|
30.1
|
||
Total commercial real estate
|
|
$
|
2,689,372
|
|
|
100.0
|
|
$
|
2,679,826
|
|
|
100.0
|
Owner occupied commercial real estate loans,
excluding multi-family and construction loans
|
|
$
|
906,837
|
|
|
|
|
$
|
933,151
|
|
|
|
Owner occupied as a percent of total
|
|
41.8
|
%
|
|
|
|
43.2
|
%
|
|
|
|
|
|
|
|
Accruing
|
|
|
|
|
||||||||||||||
|
Total
Loans
|
|
Current
|
|
30-89 Days
Past Due
|
|
90 Days
Past Due
|
|
TDRs
|
|
Non-accrual
|
||||||||||||
As of March 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
$
|
1,917,396
|
|
|
$
|
1,900,573
|
|
|
$
|
3,380
|
|
|
$
|
2,163
|
|
|
$
|
2,721
|
|
|
$
|
8,559
|
|
Agricultural
|
321,343
|
|
|
320,968
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
364
|
|
||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Office
|
454,962
|
|
|
452,271
|
|
|
824
|
|
|
—
|
|
|
—
|
|
|
1,867
|
|
||||||
Retail
|
389,010
|
|
|
380,359
|
|
|
252
|
|
|
—
|
|
|
386
|
|
|
8,013
|
|
||||||
Industrial
|
504,122
|
|
|
488,854
|
|
|
—
|
|
|
—
|
|
|
180
|
|
|
15,088
|
|
||||||
Multi-family
|
337,332
|
|
|
333,071
|
|
|
1,051
|
|
|
—
|
|
|
1,029
|
|
|
2,181
|
|
||||||
Construction
|
181,012
|
|
|
175,640
|
|
|
75
|
|
|
—
|
|
|
—
|
|
|
5,297
|
|
||||||
Other commercial real estate
|
822,934
|
|
|
811,428
|
|
|
1,471
|
|
|
588
|
|
|
398
|
|
|
9,049
|
|
||||||
Total commercial real estate
|
2,689,372
|
|
|
2,641,623
|
|
|
3,673
|
|
|
588
|
|
|
1,993
|
|
|
41,495
|
|
||||||
Total corporate loans
|
4,928,111
|
|
|
4,863,164
|
|
|
7,064
|
|
|
2,751
|
|
|
4,714
|
|
|
50,418
|
|
||||||
Home equity
|
475,103
|
|
|
462,158
|
|
|
3,853
|
|
|
1,589
|
|
|
783
|
|
|
6,720
|
|
||||||
1-4 family mortgages
|
240,561
|
|
|
232,467
|
|
|
1,771
|
|
|
505
|
|
|
804
|
|
|
5,014
|
|
||||||
Installment
|
49,315
|
|
|
46,949
|
|
|
173
|
|
|
128
|
|
|
—
|
|
|
2,065
|
|
||||||
Total consumer loans
|
764,979
|
|
|
741,574
|
|
|
5,797
|
|
|
2,222
|
|
|
1,587
|
|
|
13,799
|
|
||||||
Total loans, excluding covered loans
|
5,693,090
|
|
|
5,604,738
|
|
|
12,861
|
|
|
4,973
|
|
|
6,301
|
|
|
64,217
|
|
||||||
Covered loans
|
122,387
|
|
|
87,253
|
|
|
2,439
|
|
|
14,691
|
|
|
—
|
|
|
18,004
|
|
||||||
Total loans
|
$
|
5,815,477
|
|
|
$
|
5,691,991
|
|
|
$
|
15,300
|
|
|
$
|
19,664
|
|
|
$
|
6,301
|
|
|
$
|
82,221
|
|
As of December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial and industrial
|
$
|
1,830,638
|
|
|
$
|
1,805,516
|
|
|
$
|
6,424
|
|
|
$
|
393
|
|
|
$
|
6,538
|
|
|
$
|
11,767
|
|
Agricultural
|
321,702
|
|
|
321,123
|
|
|
60
|
|
|
—
|
|
|
—
|
|
|
519
|
|
||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Office
|
459,202
|
|
|
455,547
|
|
|
1,200
|
|
|
731
|
|
|
—
|
|
|
1,724
|
|
||||||
Retail
|
392,576
|
|
|
385,234
|
|
|
939
|
|
|
272
|
|
|
624
|
|
|
5,507
|
|
||||||
Industrial
|
501,907
|
|
|
481,766
|
|
|
337
|
|
|
312
|
|
|
9,647
|
|
|
9,845
|
|
||||||
Multi-family
|
332,873
|
|
|
329,669
|
|
|
318
|
|
|
—
|
|
|
1,038
|
|
|
1,848
|
|
||||||
Construction
|
186,197
|
|
|
179,877
|
|
|
23
|
|
|
—
|
|
|
—
|
|
|
6,297
|
|
||||||
Other commercial real estate
|
807,071
|
|
|
789,517
|
|
|
4,817
|
|
|
258
|
|
|
4,326
|
|
|
8,153
|
|
||||||
Total commercial real estate
|
2,679,826
|
|
|
2,621,610
|
|
|
7,634
|
|
|
1,573
|
|
|
15,635
|
|
|
33,374
|
|
||||||
Total corporate loans
|
4,832,166
|
|
|
4,748,249
|
|
|
14,118
|
|
|
1,966
|
|
|
22,173
|
|
|
45,660
|
|
||||||
Home equity
|
427,020
|
|
|
413,912
|
|
|
4,355
|
|
|
1,102
|
|
|
787
|
|
|
6,864
|
|
||||||
1-4 family mortgages
|
275,992
|
|
|
267,497
|
|
|
1,939
|
|
|
548
|
|
|
810
|
|
|
5,198
|
|
||||||
Installment
|
44,827
|
|
|
42,329
|
|
|
330
|
|
|
92
|
|
|
—
|
|
|
2,076
|
|
||||||
Total consumer loans
|
747,839
|
|
|
723,738
|
|
|
6,624
|
|
|
1,742
|
|
|
1,597
|
|
|
14,138
|
|
||||||
Total loans, excluding covered loans
|
5,580,005
|
|
|
5,471,987
|
|
|
20,742
|
|
|
3,708
|
|
|
23,770
|
|
|
59,798
|
|
||||||
Covered loans
|
134,355
|
|
|
93,100
|
|
|
2,232
|
|
|
18,081
|
|
|
—
|
|
|
20,942
|
|
||||||
Total loans
|
$
|
5,714,360
|
|
|
$
|
5,565,087
|
|
|
$
|
22,974
|
|
|
$
|
21,789
|
|
|
$
|
23,770
|
|
|
$
|
80,740
|
|
|
2014
|
|
2013
|
||||||||||||||||
|
March 31
|
|
December 31
|
|
September 30
|
|
June 30
|
|
March 31
|
||||||||||
Non-performing assets, excluding covered loans and covered OREO
|
|
|
|
|
|
|
|||||||||||||
Non-accrual loans
|
$
|
64,217
|
|
|
$
|
59,798
|
|
|
$
|
68,170
|
|
|
$
|
89,193
|
|
|
$
|
95,397
|
|
90 days or more past due loans
|
4,973
|
|
|
3,708
|
|
|
5,642
|
|
|
3,832
|
|
|
5,552
|
|
|||||
Total non-performing loans
|
69,190
|
|
|
63,506
|
|
|
73,812
|
|
|
93,025
|
|
|
100,949
|
|
|||||
Accruing TDRs
|
6,301
|
|
|
23,770
|
|
|
24,329
|
|
|
8,287
|
|
|
2,587
|
|
|||||
OREO
|
30,026
|
|
|
32,473
|
|
|
35,616
|
|
|
39,497
|
|
|
39,994
|
|
|||||
Total non-performing assets
|
$
|
105,517
|
|
|
$
|
119,749
|
|
|
$
|
133,757
|
|
|
$
|
140,809
|
|
|
$
|
143,530
|
|
30-89 days past due loans
|
$
|
12,861
|
|
|
$
|
20,742
|
|
|
$
|
15,111
|
|
|
$
|
21,756
|
|
|
$
|
22,222
|
|
Non-accrual loans to total loans
|
1.13
|
%
|
|
1.07
|
%
|
|
1.25
|
%
|
|
1.69
|
%
|
|
1.84
|
%
|
|||||
Non-performing loans to total loans
|
1.22
|
%
|
|
1.14
|
%
|
|
1.35
|
%
|
|
1.76
|
%
|
|
1.95
|
%
|
|||||
Non-performing assets to loans plus
OREO
|
1.84
|
%
|
|
2.13
|
%
|
|
2.44
|
%
|
|
2.64
|
%
|
|
2.75
|
%
|
|||||
Non-performing covered loans and covered OREO
(1)
|
|
|
|
|
|
|
|
|
|||||||||||
Non-accrual loans
|
$
|
18,004
|
|
|
$
|
20,942
|
|
|
$
|
30,856
|
|
|
$
|
28,468
|
|
|
$
|
20,912
|
|
90 days or more past due loans
|
14,691
|
|
|
18,081
|
|
|
20,235
|
|
|
27,700
|
|
|
24,934
|
|
|||||
Total non-performing loans
|
32,695
|
|
|
39,023
|
|
|
51,091
|
|
|
56,168
|
|
|
45,846
|
|
|||||
OREO
|
7,355
|
|
|
8,863
|
|
|
10,477
|
|
|
13,681
|
|
|
14,774
|
|
|||||
Total non-performing assets
|
$
|
40,050
|
|
|
$
|
47,886
|
|
|
$
|
61,568
|
|
|
$
|
69,849
|
|
|
$
|
60,620
|
|
30-89 days past due loans
|
$
|
2,439
|
|
|
$
|
2,232
|
|
|
$
|
7,881
|
|
|
$
|
5,650
|
|
|
$
|
10,655
|
|
Non-performing assets, including covered loans and covered OREO
|
|
|
|
|
|
|
|||||||||||||
Non-accrual loans
|
$
|
82,221
|
|
|
$
|
80,740
|
|
|
$
|
99,026
|
|
|
$
|
117,661
|
|
|
$
|
116,309
|
|
90 days or more past due loans
|
19,664
|
|
|
21,789
|
|
|
25,877
|
|
|
31,532
|
|
|
30,486
|
|
|||||
Total non-performing loans
|
101,885
|
|
|
102,529
|
|
|
124,903
|
|
|
149,193
|
|
|
146,795
|
|
|||||
Accruing TDRs
|
6,301
|
|
|
23,770
|
|
|
24,329
|
|
|
8,287
|
|
|
2,587
|
|
|||||
OREO
|
37,381
|
|
|
41,336
|
|
|
46,093
|
|
|
53,178
|
|
|
54,768
|
|
|||||
Total non-performing assets
|
$
|
145,567
|
|
|
$
|
167,635
|
|
|
$
|
195,325
|
|
|
$
|
210,658
|
|
|
$
|
204,150
|
|
30-89 days past due loans
|
$
|
15,300
|
|
|
$
|
22,974
|
|
|
$
|
22,992
|
|
|
$
|
27,406
|
|
|
$
|
32,877
|
|
Non-accrual loans to total loans
|
1.41
|
%
|
|
1.41
|
%
|
|
1.77
|
%
|
|
2.16
|
%
|
|
2.17
|
%
|
|||||
Non-performing loans to total loans
|
1.75
|
%
|
|
1.79
|
%
|
|
2.23
|
%
|
|
2.73
|
%
|
|
2.74
|
%
|
|||||
Non-performing assets to loans plus
OREO
|
2.49
|
%
|
|
2.91
|
%
|
|
3.46
|
%
|
|
3.82
|
%
|
|
3.77
|
%
|
(1)
|
Covered loans and covered OREO are covered by FDIC Agreements that substantially mitigate the risk of loss. Past due covered loans in the tables above are determined by borrower performance compared to contractual terms, but are generally considered accruing loans since they continue to perform in accordance with our expectations of cash flows. For a discussion of covered loans and covered OREO, refer to Note 5 of “Notes to the Condensed Consolidated Financial Statements” in Part I, Item 1 of this Form 10-Q.
|
|
March 31, 2014
|
|
December 31, 2013
|
|
March 31, 2013
|
|||||||||||||||
|
Number
of Loans
|
|
Amount
|
|
Number
of Loans
|
|
Amount
|
|
Number
of Loans
|
|
Amount
|
|||||||||
Commercial and industrial
|
6
|
|
|
$
|
3,003
|
|
|
10
|
|
|
$
|
8,659
|
|
|
7
|
|
|
$
|
3,204
|
|
Agricultural
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Office
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Retail
|
1
|
|
|
386
|
|
|
2
|
|
|
624
|
|
|
1
|
|
|
244
|
|
|||
Industrial
|
1
|
|
|
180
|
|
|
3
|
|
|
9,647
|
|
|
2
|
|
|
2,156
|
|
|||
Multi-family
|
5
|
|
|
1,277
|
|
|
5
|
|
|
1,291
|
|
|
—
|
|
|
—
|
|
|||
Construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
504
|
|
|||
Other commercial real estate
|
5
|
|
|
589
|
|
|
7
|
|
|
4,617
|
|
|
2
|
|
|
4,746
|
|
|||
Total commercial real estate
|
12
|
|
|
2,432
|
|
|
17
|
|
|
16,179
|
|
|
7
|
|
|
7,650
|
|
|||
Total corporate loans
|
18
|
|
|
5,435
|
|
|
27
|
|
|
24,838
|
|
|
14
|
|
|
10,854
|
|
|||
Home equity
|
18
|
|
|
1,288
|
|
|
18
|
|
|
1,299
|
|
|
6
|
|
|
270
|
|
|||
1-4 family mortgages
|
12
|
|
|
1,498
|
|
|
14
|
|
|
1,716
|
|
|
15
|
|
|
1,868
|
|
|||
Installment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total consumer loans
|
30
|
|
|
2,786
|
|
|
32
|
|
|
3,015
|
|
|
21
|
|
|
2,138
|
|
|||
Total TDRs
|
48
|
|
|
$
|
8,221
|
|
|
59
|
|
|
$
|
27,853
|
|
|
35
|
|
|
$
|
12,992
|
|
Accruing TDRs
|
32
|
|
|
$
|
6,301
|
|
|
39
|
|
|
$
|
23,770
|
|
|
16
|
|
|
$
|
2,587
|
|
Non-accrual TDRs
|
16
|
|
|
1,920
|
|
|
20
|
|
|
4,083
|
|
|
19
|
|
|
10,405
|
|
|||
Total TDRs
|
48
|
|
|
$
|
8,221
|
|
|
59
|
|
|
$
|
27,853
|
|
|
35
|
|
|
$
|
12,992
|
|
Year-to-date charge-offs on TDRs
|
|
|
$
|
34
|
|
|
|
|
$
|
1,880
|
|
|
|
|
$
|
803
|
|
|||
Specific reserves related to TDRs
|
|
|
—
|
|
|
|
|
1,952
|
|
|
|
|
2,526
|
|
|
March 31, 2014
|
|
December 31, 2013
|
||||||||||||||||||||
|
Special
Mention
(1)
|
|
Substandard
(2)
|
|
Total
(3)
|
|
Special
Mention
(1)
|
|
Substandard
(2)
|
|
Total
(3)
|
||||||||||||
Commercial and industrial
|
$
|
30,602
|
|
|
$
|
13,057
|
|
|
$
|
43,659
|
|
|
$
|
23,679
|
|
|
$
|
14,135
|
|
|
$
|
37,814
|
|
Agricultural
|
293
|
|
|
—
|
|
|
293
|
|
|
344
|
|
|
—
|
|
|
344
|
|
||||||
Commercial real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Office, retail, and industrial
|
29,178
|
|
|
24,617
|
|
|
53,795
|
|
|
27,871
|
|
|
23,538
|
|
|
51,409
|
|
||||||
Multi-family
|
2,780
|
|
|
493
|
|
|
3,273
|
|
|
2,794
|
|
|
499
|
|
|
3,293
|
|
||||||
Construction
|
8,810
|
|
|
17,051
|
|
|
25,861
|
|
|
8,309
|
|
|
17,642
|
|
|
25,951
|
|
||||||
Other commercial real estate
|
13,245
|
|
|
19,878
|
|
|
33,123
|
|
|
14,567
|
|
|
22,576
|
|
|
37,143
|
|
||||||
Total commercial real estate
|
54,013
|
|
|
62,039
|
|
|
116,052
|
|
|
53,541
|
|
|
64,255
|
|
|
117,796
|
|
||||||
Total performing potential
problem corporate loans
|
$
|
84,908
|
|
|
$
|
75,096
|
|
|
$
|
160,004
|
|
|
$
|
77,564
|
|
|
$
|
78,390
|
|
|
$
|
155,954
|
|
(1)
|
Loans categorized as special mention exhibit potential weaknesses that require the close attention of management since these potential weaknesses may result in the deterioration of repayment prospects in the future.
|
(2)
|
Loans categorized as substandard exhibit a well-defined weakness or weaknesses that may jeopardize the liquidation of the debt. These loans continue to accrue interest because they are well secured and collection of principal and interest is expected within a reasonable time.
|
(3)
|
Total performing potential problem loans excludes accruing TDRs of $2.4 million as of March 31, 2014, $2.8 million as of December 31, 2013, and $1.3 million as of March 31, 2013.
|
|
March 31, 2014
|
|
December 31, 2013
|
|
March 31, 2013
|
|||||||||||||||
|
Number of
Properties
|
|
Amount
|
|
Number of
Properties
|
|
Amount
|
|
Number of
Properties
|
|
Amount
|
|||||||||
Single family homes
|
12
|
|
|
$
|
1,564
|
|
|
29
|
|
|
$
|
2,257
|
|
|
21
|
|
|
$
|
2,442
|
|
Land parcels:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Raw land
|
7
|
|
|
4,040
|
|
|
6
|
|
|
4,037
|
|
|
5
|
|
|
3,244
|
|
|||
Farm land
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Commercial lots
|
17
|
|
|
11,628
|
|
|
17
|
|
|
11,649
|
|
|
23
|
|
|
12,647
|
|
|||
Single-family lots
|
22
|
|
|
1,975
|
|
|
22
|
|
|
3,101
|
|
|
27
|
|
|
3,942
|
|
|||
Total land parcels
|
46
|
|
|
17,643
|
|
|
45
|
|
|
18,787
|
|
|
55
|
|
|
19,833
|
|
|||
Multi-family units
|
5
|
|
|
316
|
|
|
4
|
|
|
346
|
|
|
14
|
|
|
996
|
|
|||
Commercial properties
|
21
|
|
|
10,503
|
|
|
23
|
|
|
11,083
|
|
|
30
|
|
|
16,723
|
|
|||
Total OREO, excluding covered OREO
|
84
|
|
|
30,026
|
|
|
101
|
|
|
32,473
|
|
|
120
|
|
|
39,994
|
|
|||
Covered OREO
|
44
|
|
|
7,355
|
|
|
48
|
|
|
8,863
|
|
|
71
|
|
|
14,774
|
|
|||
Total OREO properties
|
128
|
|
|
$
|
37,381
|
|
|
149
|
|
|
$
|
41,336
|
|
|
191
|
|
|
$
|
54,768
|
|
|
Quarters Ended
|
||||||||||||||||||||||
|
March 31, 2014
|
|
March 31, 2013
|
||||||||||||||||||||
|
OREO
|
|
Covered
OREO
|
|
Total
|
|
OREO
|
|
Covered
OREO
|
|
Total
|
||||||||||||
OREO sales
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Proceeds from sales
|
$
|
2,479
|
|
|
$
|
3,386
|
|
|
$
|
5,865
|
|
|
$
|
3,484
|
|
|
$
|
9
|
|
|
$
|
3,493
|
|
Less: Basis of properties sold
|
(2,015
|
)
|
|
(3,384
|
)
|
|
(5,399
|
)
|
|
(3,701
|
)
|
|
(6
|
)
|
|
(3,707
|
)
|
||||||
Net (gains) losses on sales of OREO
|
$
|
(464
|
)
|
|
$
|
(2
|
)
|
|
$
|
(466
|
)
|
|
$
|
217
|
|
|
$
|
(3
|
)
|
|
$
|
214
|
|
OREO valuation adjustments
|
$
|
1,118
|
|
|
$
|
—
|
|
|
$
|
1,118
|
|
|
$
|
525
|
|
|
$
|
42
|
|
|
$
|
567
|
|
|
Quarters Ended
|
||||||||||||||||||
|
2014
|
|
2013
|
||||||||||||||||
|
March 31
|
|
December 31
|
|
September 30
|
|
June 30
|
|
March 31
|
||||||||||
Change in allowance for credit losses
|
|
|
|
|
|
|
|
|
|
||||||||||
Beginning balance
|
$
|
87,121
|
|
|
$
|
93,214
|
|
|
$
|
96,976
|
|
|
$
|
100,457
|
|
|
$
|
102,812
|
|
Loan charge-offs:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial, industrial, and agricultural
|
3,680
|
|
|
3,084
|
|
|
2,719
|
|
|
3,116
|
|
|
3,175
|
|
|||||
Office, retail, and industrial
|
1,083
|
|
|
1,042
|
|
|
987
|
|
|
1,453
|
|
|
1,262
|
|
|||||
Multi-family
|
90
|
|
|
539
|
|
|
112
|
|
|
213
|
|
|
165
|
|
|||||
Construction
|
661
|
|
|
31
|
|
|
470
|
|
|
850
|
|
|
565
|
|
|||||
Other commercial real estate
|
1,771
|
|
|
813
|
|
|
889
|
|
|
547
|
|
|
2,535
|
|
|||||
Consumer
|
2,028
|
|
|
2,045
|
|
|
2,482
|
|
|
2,523
|
|
|
2,364
|
|
|||||
Total loan charge-offs
|
9,313
|
|
|
7,554
|
|
|
7,659
|
|
|
8,702
|
|
|
10,066
|
|
|||||
Recoveries of loan charge-offs:
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial, industrial, and agricultural
|
2,160
|
|
|
614
|
|
|
521
|
|
|
573
|
|
|
2,089
|
|
|||||
Office, retail, and industrial
|
58
|
|
|
160
|
|
|
31
|
|
|
35
|
|
|
2
|
|
|||||
Multi-family
|
1
|
|
|
549
|
|
|
—
|
|
|
30
|
|
|
5
|
|
|||||
Construction
|
158
|
|
|
965
|
|
|
60
|
|
|
5
|
|
|
2
|
|
|||||
Other commercial real estate
|
144
|
|
|
37
|
|
|
250
|
|
|
329
|
|
|
1,030
|
|
|||||
Consumer
|
138
|
|
|
177
|
|
|
374
|
|
|
413
|
|
|
107
|
|
|||||
Total recoveries of loan charge-offs
|
2,659
|
|
|
2,502
|
|
|
1,236
|
|
|
1,385
|
|
|
3,235
|
|
|||||
Net loan charge-offs, excluding
covered loan charge-offs
|
6,654
|
|
|
5,052
|
|
|
6,423
|
|
|
7,317
|
|
|
6,831
|
|
|||||
Net covered loan charge-offs (recoveries)
|
(340
|
)
|
|
271
|
|
|
1,629
|
|
|
1,977
|
|
|
698
|
|
|||||
Net loan and covered loan charge-offs
|
6,314
|
|
|
5,323
|
|
|
8,052
|
|
|
9,294
|
|
|
7,529
|
|
|||||
Provision for loan and covered loan losses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Provision for loan losses
|
2,911
|
|
|
226
|
|
|
4,466
|
|
|
1,682
|
|
|
4,811
|
|
|||||
Provision for covered loan losses
|
(1,470
|
)
|
|
(227
|
)
|
|
304
|
|
|
4,131
|
|
|
1,014
|
|
|||||
Less: expected reimbursement from the FDIC
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
(151
|
)
|
|||||
Net provision for covered loan losses
|
(1,470
|
)
|
|
(226
|
)
|
|
304
|
|
|
4,131
|
|
|
863
|
|
|||||
Total provision for loan and covered
loan losses
|
1,441
|
|
|
—
|
|
|
4,770
|
|
|
5,813
|
|
|
5,674
|
|
|||||
Reduction in reserve for unfunded
commitments
(1)
|
—
|
|
|
(770
|
)
|
|
(480
|
)
|
|
—
|
|
|
(500
|
)
|
|||||
Total provision for loan and
covered loan losses and other
|
1,441
|
|
|
(770
|
)
|
|
4,290
|
|
|
5,813
|
|
|
5,174
|
|
|||||
Ending balance
|
$
|
82,248
|
|
|
$
|
87,121
|
|
|
$
|
93,214
|
|
|
$
|
96,976
|
|
|
$
|
100,457
|
|
(1)
|
Included in other noninterest expense in the Consolidated Statements of Income.
|
|
Quarters Ended
|
||||||||||||||||||
|
2014
|
|
2013
|
||||||||||||||||
|
March 31
|
|
December 31
|
|
September 30
|
|
June 30
|
|
March 31
|
||||||||||
Allowance for credit losses
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for loan losses
|
$
|
69,203
|
|
|
$
|
72,946
|
|
|
$
|
77,772
|
|
|
$
|
79,729
|
|
|
$
|
85,364
|
|
Allowance for covered loan losses
|
11,429
|
|
|
12,559
|
|
|
13,056
|
|
|
14,381
|
|
|
12,227
|
|
|||||
Total allowance for loan and
covered loan losses
|
80,632
|
|
|
85,505
|
|
|
90,828
|
|
|
94,110
|
|
|
97,591
|
|
|||||
Reserve for unfunded commitments
|
1,616
|
|
|
1,616
|
|
|
2,386
|
|
|
2,866
|
|
|
2,866
|
|
|||||
Total allowance for credit losses
|
$
|
82,248
|
|
|
$
|
87,121
|
|
|
$
|
93,214
|
|
|
$
|
96,976
|
|
|
$
|
100,457
|
|
Amounts and ratios, excluding covered loans
|
|
|
|
|
|
|
|
|
|||||||||||
Average loans
|
$
|
5,578,616
|
|
|
$
|
5,516,747
|
|
|
$
|
5,379,435
|
|
|
$
|
5,180,608
|
|
|
$
|
5,148,343
|
|
Net loan charge-offs to average loans,
annualized
|
0.48
|
%
|
|
0.36
|
%
|
|
0.47
|
%
|
|
0.57
|
%
|
|
0.54
|
%
|
|||||
Allowance for credit losses at end of
period as a percent of:
|
|
|
|
|
|
|
|
|
|
||||||||||
Total loans
|
1.24
|
%
|
|
1.34
|
%
|
|
1.47
|
%
|
|
1.56
|
%
|
|
1.70
|
%
|
|||||
Non-accrual loans
|
110.28
|
%
|
|
124.69
|
%
|
|
117.59
|
%
|
|
92.60
|
%
|
|
92.49
|
%
|
|||||
Non-performing loans
|
102.35
|
%
|
|
117.41
|
%
|
|
108.60
|
%
|
|
88.79
|
%
|
|
87.40
|
%
|
|||||
Amounts and ratios, including covered loans
|
|
|
|
|
|
|
|
|
|||||||||||
Average loans
|
$
|
5,706,880
|
|
|
$
|
5,658,756
|
|
|
$
|
5,539,776
|
|
|
$
|
5,357,945
|
|
|
$
|
5,339,749
|
|
Net loan charge-offs to average loans
annualized
|
0.45
|
%
|
|
0.37
|
%
|
|
0.58
|
%
|
|
0.70
|
%
|
|
0.57
|
%
|
|||||
Allowance for credit losses at end of
period as a percent of:
|
|
|
|
|
|
|
|
|
|
||||||||||
Total loans
|
1.41
|
%
|
|
1.52
|
%
|
|
1.66
|
%
|
|
1.78
|
%
|
|
1.87
|
%
|
|||||
Non-accrual loans
|
100.03
|
%
|
|
107.90
|
%
|
|
94.13
|
%
|
|
82.42
|
%
|
|
86.37
|
%
|
|||||
Non-performing loans
|
80.73
|
%
|
|
84.97
|
%
|
|
74.63
|
%
|
|
65.00
|
%
|
|
68.43
|
%
|
|
Quarters Ended
|
|
|
First Quarter 2014
% Change From
|
||||||||||||||
|
March 31,
2014 |
|
December 31,
2013 |
|
March 31,
2013 |
|
|
Fourth
Quarter
2013
|
|
First
Quarter
2013
|
||||||||
Demand deposits
|
$
|
1,928,289
|
|
|
$
|
1,956,570
|
|
|
$
|
1,740,825
|
|
|
|
(1.4
|
)%
|
|
10.8
|
%
|
Savings deposits
|
1,159,643
|
|
|
1,126,737
|
|
|
1,107,213
|
|
|
|
2.9
|
%
|
|
4.7
|
%
|
|||
NOW accounts
|
1,181,297
|
|
|
1,195,471
|
|
|
1,145,482
|
|
|
|
(1.2
|
)%
|
|
3.1
|
%
|
|||
Money market accounts
|
1,311,998
|
|
|
1,356,383
|
|
|
1,251,235
|
|
|
|
(3.3
|
)%
|
|
4.9
|
%
|
|||
Transactional deposits
|
5,581,227
|
|
|
5,635,161
|
|
|
5,244,755
|
|
|
|
(1.0
|
)%
|
|
6.4
|
%
|
|||
Time deposits
|
1,180,374
|
|
|
1,218,450
|
|
|
1,348,263
|
|
|
|
(3.1
|
)%
|
|
(12.5
|
)%
|
|||
Brokered deposits
|
16,075
|
|
|
16,067
|
|
|
26,266
|
|
|
|
—
|
%
|
|
(38.8
|
)%
|
|||
Total time deposits
|
1,196,449
|
|
|
1,234,517
|
|
|
1,374,529
|
|
|
|
(3.1
|
)%
|
|
(13.0
|
)%
|
|||
Total deposits
|
6,777,676
|
|
|
6,869,678
|
|
|
6,619,284
|
|
|
|
(1.3
|
)%
|
|
2.4
|
%
|
|||
Securities sold under agreements to
repurchase
|
107,944
|
|
|
99,207
|
|
|
85,314
|
|
|
|
8.8
|
%
|
|
26.5
|
%
|
|||
FHLB advances
|
114,547
|
|
|
114,554
|
|
|
114,577
|
|
|
|
—
|
%
|
|
—
|
%
|
|||
Total borrowed funds
|
222,491
|
|
|
213,761
|
|
|
199,891
|
|
|
|
4.1
|
%
|
|
11.3
|
%
|
|||
Senior and subordinated debt
|
190,949
|
|
|
207,162
|
|
|
214,796
|
|
|
|
(7.8
|
)%
|
|
(11.1
|
)%
|
|||
Total funding sources
|
$
|
7,191,116
|
|
|
$
|
7,290,601
|
|
|
$
|
7,033,971
|
|
|
|
(1.4
|
)%
|
|
2.2
|
%
|
Average interest rate paid on
borrowed funds
|
0.70
|
%
|
|
0.72
|
%
|
|
0.90
|
%
|
|
|
|
|
|
|||||
Weighted-average maturity of FHLB
advances
|
26.6 months
|
|
|
29.3 months
|
|
|
38.1 months
|
|
|
|
|
|
|
|||||
Weighted-average interest rate of
FHLB advances
|
1.33
|
%
|
|
1.34
|
%
|
|
1.30
|
%
|
|
|
|
|
|
|
March 31, 2014
|
|
|
March 31, 2013
|
||||||||
|
Amount
|
|
Weighted-
Average
Rate (%)
|
|
|
Amount
|
|
Weighted-
Average
Rate (%)
|
||||
At period-end:
|
|
|
|
|
|
|
|
|
||||
Securities sold under agreements to repurchase
|
$
|
109,156
|
|
|
0.03
|
|
|
$
|
94,281
|
|
|
0.03
|
FHLB advances
|
114,543
|
|
|
1.33
|
|
|
114,573
|
|
|
1.30
|
||
Total borrowed funds
|
$
|
223,699
|
|
|
0.69
|
|
|
$
|
208,854
|
|
|
0.73
|
Average for the year-to-date period:
|
|
|
|
|
|
|
|
|
||||
Securities sold under agreements to repurchase
|
$
|
107,944
|
|
|
0.03
|
|
|
$
|
85,314
|
|
|
0.02
|
FHLB advances
|
114,547
|
|
|
1.33
|
|
|
114,577
|
|
|
1.55
|
||
Total borrowed funds
|
$
|
222,491
|
|
|
0.70
|
|
|
$
|
199,891
|
|
|
0.90
|
Maximum amount outstanding at the end of any day during the period:
|
|
|
|
|
|
|
|
|||||
Securities sold under agreements to repurchase
|
$
|
116,934
|
|
|
|
|
|
$
|
103,602
|
|
|
|
FHLB advances
|
114,551
|
|
|
|
|
|
114,581
|
|
|
|
|
March 31,
2014 |
|
December 31,
2013 |
|
Regulatory
Minimum
For
Well-
Capitalized
|
|
Excess Over
Required Minimums
at March 31, 2014
|
||||||||||
Reconciliation of capital components to regulatory requirements (as defined in federal regulations):
|
|
|
|
|
|||||||||||||
Total regulatory capital
|
$
|
851,978
|
|
|
$
|
841,787
|
|
|
|
|
|
|
|
||||
Tier 1 capital
|
$
|
762,032
|
|
|
$
|
741,414
|
|
|
|
|
|
|
|
||||
Trust preferred securities included in Tier 1 capital
|
(36,690
|
)
|
|
(36,690
|
)
|
|
|
|
|
|
|
||||||
Tier 1 common capital
|
$
|
725,342
|
|
|
$
|
704,724
|
|
|
|
|
|
|
|
||||
Risk-weighted assets
|
$
|
6,980,930
|
|
|
$
|
6,794,666
|
|
|
|
|
|
|
|
||||
Average assets
|
7,993,529
|
|
|
8,075,888
|
|
|
|
|
|
|
|
||||||
Regulatory capital ratios:
|
|
|
|
|
|
|
|
|
|
||||||||
Total capital to risk-weighted assets
|
12.20
|
%
|
|
12.39
|
%
|
|
10.00
|
%
|
|
22
|
%
|
|
$
|
153,885
|
|
||
Tier 1 capital to risk-weighted assets
|
10.92
|
%
|
|
10.91
|
%
|
|
6.00
|
%
|
|
82
|
%
|
|
$
|
343,176
|
|
||
Tier 1 leverage to average assets
|
9.53
|
%
|
|
9.18
|
%
|
|
5.00
|
%
|
|
91
|
%
|
|
$
|
362,356
|
|
||
Tier 1 common capital to risk-weighted assets
(1)
|
10.39
|
%
|
|
10.37
|
%
|
|
N/A
(2)
|
|
|
N/A
(2)
|
|
|
N/A
(2)
|
|
|||
Reconciliation of capital components to GAAP:
|
|
|
|
|
|
|
|
|
|||||||||
Total stockholder’s equity
|
$
|
1,020,425
|
|
|
$
|
1,001,442
|
|
|
|
|
|
|
|
||||
Goodwill and other intangible assets
|
(275,605
|
)
|
|
(276,366
|
)
|
|
|
|
|
|
|
||||||
Tangible common equity
|
744,820
|
|
|
725,076
|
|
|
|
|
|
|
|
||||||
Accumulated other comprehensive loss
|
19,772
|
|
|
26,792
|
|
|
|
|
|
|
|
||||||
Tangible common equity, excluding accumulated
other comprehensive loss
|
$
|
764,592
|
|
|
$
|
751,868
|
|
|
|
|
|
|
|
||||
Total assets
|
$
|
8,328,519
|
|
|
$
|
8,253,407
|
|
|
|
|
|
|
|
||||
Goodwill and other intangible assets
|
(275,605
|
)
|
|
(276,366
|
)
|
|
|
|
|
|
|
||||||
Tangible assets
|
$
|
8,052,914
|
|
|
$
|
7,977,041
|
|
|
|
|
|
|
|
||||
Tangible common equity ratios:
|
|
|
|
|
|
|
|
|
|
||||||||
Tangible common equity to tangible assets
|
9.25
|
%
|
|
9.09
|
%
|
|
N/A
(2)
|
|
|
N/A
(2)
|
|
|
N/A
(2)
|
|
|||
Tangible common equity, excluding other accumulated
comprehensive loss, to tangible assets
|
9.49
|
%
|
|
9.43
|
%
|
|
N/A
(2)
|
|
|
N/A
(2)
|
|
|
N/A
(2)
|
|
|||
Tangible common equity to risk-weighted assets
|
10.67
|
%
|
|
10.67
|
%
|
|
N/A
(2)
|
|
|
N/A
(2)
|
|
|
N/A
(2)
|
|
(1)
|
Excludes the impact of trust-preferred securities.
|
(2)
|
Ratio is not subject to formal Federal Reserve regulatory requirements.
|
|
Immediate Change in Rates
|
||||||||||||||
|
+300
|
|
+200
|
|
+100
|
|
-100
|
||||||||
March 31, 2014:
|
|
|
|
|
|
|
|
||||||||
Dollar change
|
$
|
42,261
|
|
|
$
|
26,362
|
|
|
$
|
10,851
|
|
|
$
|
(10,553
|
)
|
Percent change
|
16.4
|
%
|
|
10.2
|
%
|
|
4.2
|
%
|
|
(4.1
|
)%
|
||||
December 31, 2013:
|
|
|
|
|
|
|
|
||||||||
Dollar change
|
$
|
45,209
|
|
|
$
|
28,307
|
|
|
$
|
11,925
|
|
|
$
|
(11,791
|
)
|
Percent change
|
17.3
|
%
|
|
10.8
|
%
|
|
4.6
|
%
|
|
(4.5
|
)%
|
|
Total
Number of
Shares
Purchased
(1)
|
|
Average
Price
Paid per
Share
|
|
Total Number
of Shares
Purchased as
Part of a
Publicly
Announced
Plan or
Program
|
|
Maximum
Number of
Shares that
May Yet Be
Purchased
Under the
Plan or
Program
|
|||||
January 1 – January 31, 2014
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
2,494,747
|
|
February 1 – February 28, 2014
|
158,063
|
|
|
15.91
|
|
|
—
|
|
|
2,494,747
|
|
|
March 1 – March 31, 2014
|
—
|
|
|
—
|
|
|
—
|
|
|
2,494,747
|
|
|
Total
|
158,063
|
|
|
$
|
15.91
|
|
|
—
|
|
|
|
(1)
|
Consists of shares acquired pursuant to the Company’s share-based compensation plans and not the Company’s repurchase program approved by its Board on November 27, 2007. Under the terms of these plans, the Company accepts shares of Common Stock from option holders if they elect to surrender previously owned shares upon exercise to cover the exercise price of the stock options or, in the case of restricted shares of Common Stock, the withholding of shares to satisfy tax withholding obligations associated with the vesting of restricted shares.
|
Exhibit
Number
|
Description of Documents
|
|
|
|
|
3.1
|
|
Restated Certificate of Incorporation of the Company is incorporated herein by reference to Exhibit 3.1 to the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 27, 2009.
|
3.2
|
|
Restated By-Laws of the Company are incorporated herein by reference to Exhibit 3.2 to the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 28, 2012.
|
10.3
|
|
First Midwest Bancorp, Inc. Amended Omnibus Stock and Incentive Plan dated March 28, 2014.
|
10.32
|
|
Loan Agreement between the Company and U.S. Bank National Association dated January 21, 2014 is incorporated herein by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on January 27, 2014.
|
10.33
|
|
First Midwest Bancorp, Inc. Savings and Profit Sharing Plan as Amended and Restated effective January 1, 2014.
|
11
|
|
Statement re: Computation of Per Share Earnings - The computation of basic and diluted earnings per common share is included in Note 7 of the Company’s Notes to the Condensed Consolidated Financial Statements included in “ITEM 1. FINANCIAL STATEMENTS” of this document.
|
15
|
|
Acknowledgment of Independent Registered Public Accounting Firm.
|
31.1
|
|
Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
31.2
|
|
Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
32.1
(1)
|
|
Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
32.2
(1)
|
|
Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
99
|
|
Report of Independent Registered Public Accounting Firm.
|
101
|
|
Interactive Data File.
|
(1)
|
Furnished, not filed.
|
First Midwest Bancorp, Inc.
|
|
/s/ PAUL F. CLEMENS
|
Paul F. Clemens
Executive Vice President, Chief Financial Officer,
and Principal Accounting Officer*
|
|
|
|
|
|
Page
|
|
ARTICLE 1
|
|
GENERAL
|
1
|
1.1
|
|
Purpose
|
1
|
1.2
|
|
Source of Funds
|
1
|
1.3
|
|
Effective Date
|
1
|
1.4
|
|
Definitions
|
1
|
|
|
Account or Accounts
|
1
|
|
|
Active Participant
|
2
|
|
|
Actual Deferral Percentage and Actual Deferral Percentage Test
|
2
|
|
|
Affiliate
|
3
|
|
|
Annual Addition
|
3
|
|
|
Before-Tax Contributions
|
3
|
|
|
Board of Directors
|
3
|
|
|
Business Day
|
3
|
|
|
Catch-Up Contributions
|
3
|
|
|
Code
|
3
|
|
|
Committee
|
3
|
|
|
Company
|
3
|
|
|
Considered Compensation
|
4
|
|
|
Defined Contribution Dollar Limitation
|
4
|
|
|
Determination Date
|
4
|
|
|
Early Retirement Date
|
4
|
|
|
Eligible Employee
|
4
|
|
|
Eligible Participant
|
4
|
|
|
Eligibility Period
|
4
|
|
|
Employer
|
5
|
|
|
Employer Contribution
|
5
|
|
|
Employment Commencement Date
|
5
|
|
|
Entry Date
|
5
|
|
|
ERISA
|
5
|
|
|
Five-Percent Owner
|
5
|
|
|
Heritage Fund
|
5
|
|
|
Heritage Plan
|
5
|
|
|
Highly Compensated Employee
|
5
|
|
|
Hour of Service
|
6
|
|
|
Individual Beneficiary
|
6
|
|
|
Investment Options
|
6
|
|
|
Leased Employee
|
7
|
|
|
Limitation Year
|
7
|
|
|
Limited Participant
|
7
|
|
|
Matching Employer Contributions
|
7
|
|
|
McHenry Plan
|
7
|
|
i
|
|
|
|
Page
|
|
|
|
Member of a Collective Bargaining Unit
|
7
|
|
|
Non-Highly Compensated Employee
|
8
|
|
|
Normal Retirement Date
|
8
|
|
|
One-Year Break in Service
|
8
|
|
|
Participant
|
8
|
|
|
Plan
|
8
|
|
|
Plan Year
|
9
|
|
|
Prior Plan
|
9
|
|
|
Qualified Military Service
|
9
|
|
|
Required Beginning Date
|
9
|
|
|
Rollover Contribution
|
9
|
|
|
Severance Date
|
10
|
|
|
Total Compensation
|
10
|
|
|
Trust
|
11
|
|
|
Trustee
|
11
|
|
|
Valuation Date
|
11
|
|
|
Year of Service
|
11
|
1.5
|
|
EGTRRA Compliance
|
11
|
ARTICLE 2
|
|
ELIGIBILITY AND PARTICIPATION
|
12
|
2.1
|
|
Eligibility Requirements
|
12
|
2.2
|
|
Leaves of Absence
|
13
|
2.3
|
|
Years of Service to be Credited
|
13
|
2.4
|
|
Years of Service to be Disregarded
|
13
|
2.5
|
|
Leased Employees
|
14
|
2.6
|
|
Qualified Military Service
|
14
|
ARTICLE 3
|
|
CONTRIBUTIONS BY EMPLOYER AND ROLLOVER CONTRIBUTIONS
|
15
|
3.1
|
|
Contributions to the Plan
|
15
|
3.2
|
|
Before-Tax and Catch-Up Contribution
|
15
|
3.3
|
|
Limitations on Before-Tax Contributions and Matching Employer Contributions
|
16
|
3.4
|
|
Employer Contribution
|
18
|
3.5
|
|
Matching Employer Contribution
|
19
|
3.6
|
|
Rollover Contributions
|
19
|
ARTICLE 4
|
|
ACCOUNTING PROVISIONS AND ALLOCATIONS
|
21
|
4.1
|
|
Participant’s Accounts
|
21
|
4.2
|
|
Common Fund
|
21
|
4.3
|
|
Allocation Procedure
|
22
|
4.4
|
|
Determination of Value of Trust Fund and of Net Earnings or Losses
|
22
|
|
ii
|
|
|
|
Page
|
|
4.5
|
|
Allocation of Net Earnings or Losses
|
23
|
4.6
|
|
Eligibility to Share in the Employer Contributions and Automatic Contributions
|
23
|
4.9
|
|
Allocation of Employer Contribution and Automatic Contribution
|
25
|
ARTICLE 5
|
|
AMOUNT OF PAYMENTS TO PARTICIPANTS
|
26
|
5.1
|
|
General Rule
|
26
|
5.2
|
|
Normal Retirement
|
26
|
5.3
|
|
Death
|
26
|
5.4
|
|
Disability
|
27
|
5.5
|
|
Vesting
|
27
|
5.6
|
|
Resignation or Dismissal
|
27
|
5.7
|
|
Treatment of Forfeitures
|
28
|
ARTICLE 6
|
|
DISTRIBUTIONS
|
29
|
6.1
|
|
Commencement of Distributions
|
29
|
6.2
|
|
Form of Distributions
|
29
|
6.3
|
|
Distributions to Beneficiaries
|
30
|
6.4
|
|
Beneficiaries
|
30
|
6.5
|
|
Form of Elections and Applications for Benefits
|
31
|
6.6
|
|
Unclaimed Distributions
|
31
|
6.7
|
|
Loans
|
31
|
6.8
|
|
Withdrawals Prior to Termination of Employment
|
32
|
6.9
|
|
Facility of Payment
|
34
|
6.10
|
|
Claims Procedure
|
34
|
6.11
|
|
Eligible Rollover Distributions
|
36
|
6.12
|
|
Minimum Required Distributions
|
37
|
6.13
|
|
Automatic Rollover
|
41
|
ARTICLE 7
|
|
TOP-HEAVY PLAN REQUIREMENTS
|
42
|
7.1
|
|
Definition of Top-Heavy Plan
|
42
|
7.2
|
|
Top-Heavy Plan Requirements
|
42
|
7.3
|
|
Definitions
|
43
|
7.4
|
|
Cessation of Top-Heavy Requirements
|
43
|
7.5
|
|
EGTRRA Top-Heavy Provisions
|
44
|
ARTICLE 8
|
|
POWERS AND DUTIES OF PLAN COMMITTEE
|
45
|
8.1
|
|
Appointment of Plan Committee
|
45
|
8.2
|
|
Powers and Duties of Committee
|
45
|
8.3
|
|
Committee Procedures
|
46
|
8.4
|
|
Consultation with Advisors
|
46
|
8.5
|
|
Committee Members as Participants
|
46
|
8.6
|
|
Records and Reports
|
46
|
|
iii
|
|
|
|
Page
|
|
8.7
|
|
Investment Policy
|
46
|
8.8
|
|
Designation of Other Fiduciaries
|
47
|
8.9
|
|
Obligations of Committee
|
47
|
8.10
|
|
Indemnification of Committee
|
48
|
ARTICLE 9
|
|
TRUSTEE AND TRUST FUND
|
49
|
9.1
|
|
Trust Fund
|
49
|
9.2
|
|
Payments to Trust Fund and Expenses
|
49
|
9.3
|
|
Trustee’s Responsibilities
|
49
|
9.4
|
|
Reversion to the Employer
|
49
|
9.5
|
|
Investment Options
|
49
|
9.6
|
|
Rollover from Prior Plan
|
50
|
ARTICLE 10
|
|
AMENDMENT OR TERMINATION
|
52
|
10.1
|
|
Amendment
|
52
|
10.2
|
|
Termination
|
52
|
10.3
|
|
Form of Amendment, Discontinuance of Employer Contributions, and Termination
|
52
|
10.4
|
|
Limitations on Amendments
|
52
|
10.5
|
|
Level of Benefits upon Merger
|
52
|
10.6
|
|
Vesting upon Termination or Discontinuance of Employer Contributions; Liquidation of Trust
|
53
|
ARTICLE 11
|
|
ADOPTION BY AFFILIATES
|
54
|
11.1
|
|
Adoption of Plan
|
54
|
11.2
|
|
The Company as Agent for Employer
|
54
|
11.3
|
|
Adoption of Amendments
|
54
|
11.4
|
|
Termination
|
54
|
11.5
|
|
Data to be Furnished by Employers
|
54
|
11.6
|
|
Joint Employees
|
54
|
11.7
|
|
Expenses
|
54
|
11.8
|
|
Withdrawal
|
55
|
11.9
|
|
Prior Plans
|
55
|
11.10
|
|
Merger of the Heritage Plan into the Plan
|
55
|
ARTICLE 12
|
|
MISCELLANEOUS
|
56
|
12.1
|
|
No Guarantee of Employment, etc
|
56
|
12.2
|
|
Rights of Participants and Others
|
56
|
12.3
|
|
Qualified Domestic Relations Order
|
56
|
12.4
|
|
Controlling Law
|
56
|
12.5
|
|
Severability
|
56
|
12.6
|
|
Notification of Addresses
|
56
|
12.7
|
|
Gender and Number
|
57
|
|
iv
|
|
|
|
Page
|
|
ARTICLE 13
|
|
ESOP PROVISIONS
|
58
|
13.1
|
|
General
|
58
|
13.2
|
|
Treatment of the ESOP Fund
|
58
|
13.3
|
|
Allocation of Employer Contribution
|
58
|
13.4
|
|
Allocation of Net Earnings and Losses and Dividends
|
58
|
13.5
|
|
ESOP Provisions
|
59
|
ROTH CONTRIBUTIONS
|
62
|
|
v
|
|
|
|
|
|
2
|
|
|
3
|
|
|
4
|
|
|
5
|
|
|
6
|
|
|
7
|
|
|
8
|
|
|
9
|
|
|
10
|
|
|
11
|
|
|
12
|
|
|
13
|
|
|
14
|
|
|
15
|
|
|
16
|
|
|
17
|
|
|
18
|
|
|
19
|
|
|
20
|
|
|
21
|
|
|
22
|
|
|
23
|
|
|
24
|
|
|
25
|
|
|
26
|
|
If His Years
of Service Shall Have Been |
The Nonforfeitable
Percentage of His Employer Contribution Account and Automatic Contribution Account Shall Be |
Less than 2
2 but less than 3
3 but less than 4
4 but less than 5
5 but less than 6
6 or more
|
0%
20%
40%
60%
80%
100%
|
|
27
|
|
|
28
|
|
|
29
|
|
|
30
|
|
|
31
|
|
|
32
|
|
|
33
|
|
|
34
|
|
|
35
|
|
|
36
|
|
|
37
|
|
|
38
|
|
|
39
|
|
|
40
|
|
|
41
|
|
If His Years
of Service Shall Have Been |
The Nonforfeitable
Percentage of His Employer Contribution Account Shall Be |
2 but less than 3
3 but less than 4
4 but less than 5
5 but less than 6
6 or more
|
20%
40%
60%
80%
100%
|
|
42
|
|
|
43
|
|
|
44
|
|
|
45
|
|
|
46
|
|
|
47
|
|
|
48
|
|
|
49
|
|
|
50
|
|
|
51
|
|
|
52
|
|
|
53
|
|
|
54
|
|
|
55
|
|
|
56
|
|
|
57
|
|
|
58
|
|
|
59
|
|
|
60
|
|
|
61
|
|
|
62
|
|
|
63
|
|
•
|
Registration Statement (Form S-3 No. 33-20439) pertaining to the First Midwest Bancorp, Inc. Dividend Reinvestment and Stock Purchase Plan,
|
•
|
Registration Statement (Form S-3ASR No. 333-179815) pertaining to a First Midwest Bancorp, Inc. debt and equity securities offering,
|
•
|
Registration Statement (Form S-4 No. 333-114406) pertaining to First Midwest Capital Trust I,
|
•
|
Registration Statement (Form S-8 No. 33-25136) pertaining to the First Midwest Bancorp, Inc. Savings and Profit Sharing Plan,
|
•
|
Registration Statement (Form S-8 No. 33-42980) pertaining to the First Midwest Bancorp, Inc. 1989 Omnibus Stock and Incentive Plan,
|
•
|
Registration Statement (Form S-8 No. 333-159389) pertaining to the First Midwest Bancorp, Inc. 1989 Omnibus Stock and Incentive Plan,
|
•
|
Registration Statement (Form S-8 No. 333-42273) pertaining to the First Midwest Bancorp, Inc. 1989 Omnibus Stock and Incentive Plan,
|
•
|
Registration Statement (Form S-8 No. 333-61090) pertaining to the First Midwest Bancorp, Inc. 1989 Omnibus Stock and Incentive Plan,
|
•
|
Registration Statement (Form S-8 No. 333-50140) pertaining to the First Midwest Bancorp, Inc. Non-employee Directors’ 1997 Stock Option Plan,
|
•
|
Registration Statement (Form S-8 No. 333-63095) pertaining to the First Midwest Bancorp, Inc. Non-employee Directors’ Stock Option Plan,
|
•
|
Registration Statement (Form S-8 No. 333-63097) pertaining to the First Midwest Bancorp, Inc. Nonqualified Retirement Plan, and
|
•
|
Registration Statement (Form S-8 No. 333-151072) pertaining to the First Midwest Bancorp, Inc. Amended and Restated Non-employee Directors' Stock Plan,
|
•
|
Registration Statement (Form S-3 No. 333-157615) pertaining to a First Midwest Bancorp, Inc. debt and equity securities offering, and
|
•
|
Registration Statement (Form S-8 No. 333-168973) pertaining to the First Midwest Bancorp, Inc. Amended and Restated Omnibus Stock and Incentive Plan
|
1.
|
I have reviewed this report on Form 10-Q of First Midwest 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 the 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: May 12, 2014
|
|
/s/ MICHAEL L. SCUDDER
[Signature]
President and Chief Executive Officer
|
1.
|
I have reviewed this report on Form 10-Q of First Midwest 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 the 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: May 12, 2014
|
|
/s/ PAUL F. CLEMENS
[Signature]
Executive Vice President
and Chief Financial Officer
|
1.
|
The Company’s Report on Form 10-Q for the quarter ended
March 31, 2014
(the “Report”) fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities and Exchange Act of 1934, as amended; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ MICHAEL L. SCUDDER
|
|
|
|
Name:
|
Michael L. Scudder
|
|
|
Title:
|
President and Chief Executive Officer
|
|
|
Dated:
|
May 12, 2014
|
|
|
1.
|
The Company’s Report on Form 10-Q for the quarter ended
March 31, 2014
(the “Report”) fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities and Exchange Act of 1934, as amended; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ PAUL F. CLEMENS
|
|
|
|
Name:
|
Paul F. Clemens
|
|
|
Title:
|
Executive Vice President and Chief Financial Officer
|
|
|
Dated:
|
May 12, 2014
|
|
|