Indiana
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35-1559596
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(State of incorporation)
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(I.R.S. Employer Identification No.)
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Common Stock, no par value
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NASDAQ Global Select Market
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(Title of class)
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(Name of each exchange on which registered)
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Large accelerated filer [ ]
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Accelerated filer [X]
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Non-accelerated filer [ ]
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Smaller reporting company [ ]
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Page Number
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PART I
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Item 1.
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3
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5
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7
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14
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14
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Item 1a.
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33
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Item 1b.
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41
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Item 2.
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41
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Item 3.
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42
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Item 4.
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42
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PART II
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Item 5.
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42
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Item 6.
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46
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Item 7.
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47
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47
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47
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50
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54
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57
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58
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59
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59
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Item 7a.
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60
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Item 8.
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62
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62
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67
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118
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Item 9.
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119
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Item 9a.
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119
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Item 9b.
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120
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PART III
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Item 10.
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120
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Item 11.
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120
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Item 12.
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120
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Item 13.
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121
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Item 14.
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121
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PART IV
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Item 15.
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122
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S1
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·
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the effects of future economic, business and market conditions and changes, both domestic and foreign, including seasonality;
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·
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governmental monetary and fiscal policies;
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·
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legislative and regulatory changes, including changes in banking, securities and tax laws and regulations and their application by our regulators, such as the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”);
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·
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changes in the scope and cost of Federal Deposit Insurance Corporation, or “FDIC”, insurance, the state of Indiana’s Public Deposit Insurance Fund and other coverages;
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·
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changes in accounting policies, rules and practices;
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·
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the risks of changes in interest rates on the levels, composition and costs of deposits, loan demand, and the values and liquidity of loan collateral, securities and other interest sensitive assets and liabilities;
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·
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the failure of assumptions and estimates underlying the establishment of reserves for possible loan losses and other estimates;
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·
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changes in borrowers’ credit risks and payment behaviors;
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·
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changes in the availability and cost of credit and capital in the financial markets;
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·
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changes in the prices, values and sales volumes of residential and commercial real estate;
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·
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the effects of competition from a wide variety of local, regional, national and other providers of financial, investment and insurance services;
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·
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the risks of mergers, acquisitions and divestitures, including, without limitation, the related time and costs of implementing such transactions, integrating operations as part of these transactions and possible failures to achieve expected gains, revenue growth and/or expense savings from such transactions;
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·
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changes in technology or products that may be more difficult, costly or less effective than anticipated;
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·
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the effects of war or other conflicts, acts of terrorism or other catastrophic events, including storms, droughts, tornados and flooding, that may affect general economic conditions, including agricultural production and demand and prices for agricultural goods and land used for agricultural purposes, generally and in our markets;
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·
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the failure of assumptions and estimates used in our reviews of our loan portfolio and our analysis of our capital position; and
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·
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other factors and risks described under “Risk Factors” herein.
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2011
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2010
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|||||||||||||||||||||||
Average
|
Interest
|
Average
|
Interest
|
|||||||||||||||||||||
Balance
|
Income
|
Yield (1)
|
Balance
|
Income
|
Yield (1)
|
|||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||
Earning assets:
|
||||||||||||||||||||||||
Loans:
|
||||||||||||||||||||||||
Taxable (2)(3)
|
$ | 2,137,748 | $ | 104,936 | 4.91 | % | $ | 2,046,974 | $ | 104,205 | 5.09 | % | ||||||||||||
Tax exempt (1)
|
10,298 | 700 | 6.80 | 2,235 | 122 | 5.46 | ||||||||||||||||||
Investments: (1)
|
||||||||||||||||||||||||
Available for sale
|
447,620 | 17,686 | 3.95 | 430,615 | 20,453 | 4.75 | ||||||||||||||||||
Short-term investments
|
17,830 | 23 | 0.13 | 35,080 | 59 | 0.17 | ||||||||||||||||||
Interest bearing deposits
|
28,662 | 131 | 0.46 | 7,456 | 61 | 0.82 | ||||||||||||||||||
Total earning assets
|
2,642,158 | 123,476 | 4.67 | % | 2,522,360 | 124,900 | 4.95 | % | ||||||||||||||||
Nonearning assets:
|
||||||||||||||||||||||||
Cash and due from banks
|
74,854 | 0 | 48,398 | 0 | ||||||||||||||||||||
Premises and equipment
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31,260 | 0 | 29,291 | 0 | ||||||||||||||||||||
Other nonearning assets
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94,741 | 0 | 90,900 | 0 | ||||||||||||||||||||
Less allowance for loan losses
|
(50,243 | ) | 0 | (38,325 | ) | 0 | ||||||||||||||||||
Total assets
|
$ | 2,792,770 | $ | 123,476 | $ | 2,652,624 | $ | 124,900 |
(1)
|
Tax exempt income was converted to a fully taxable equivalent basis at a 35 percent tax rate for 2011 and 2010. The tax equivalent rate for tax exempt loans and tax exempt securities acquired after January 1, 1983 included the TEFRA adjustment applicable to nondeductible interest expenses.
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(2)
|
Loan fees, which are immaterial in relation to total taxable loan interest income for the years ended December 31, 2011 and 2010, are included as taxable loan interest income.
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(3)
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Nonaccrual loans are included in the average balance of taxable loans.
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2010
|
2009
|
|||||||||||||||||||||||
Average
|
Interest
|
Average
|
Interest
|
|||||||||||||||||||||
Balance
|
Income
|
Yield (1)
|
Balance
|
Income
|
Yield (1)
|
|||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||
Earning assets:
|
||||||||||||||||||||||||
Loans:
|
||||||||||||||||||||||||
Taxable (2)(3)
|
$ | 2,046,974 | $ | 104,205 | 5.09 | % | $ | 1,897,544 | $ | 96,151 | 5.07 | % | ||||||||||||
Tax exempt (1)
|
2,235 | 122 | 5.46 | 4,202 | 199 | 4.74 | ||||||||||||||||||
Investments: (1)
|
||||||||||||||||||||||||
Available for sale
|
430,615 | 20,453 | 4.75 | 399,342 | 21,179 | 5.30 | ||||||||||||||||||
Short-term investments
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35,080 | 59 | 0.17 | 22,540 | 35 | 0.16 | ||||||||||||||||||
Interest bearing deposits
|
7,456 | 61 | 0.82 | 1,631 | 26 | 1.59 | ||||||||||||||||||
Total earning assets
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2,522,360 | 124,900 | 4.95 | % | 2,325,259 | 117,590 | 5.06 | % | ||||||||||||||||
Nonearning assets:
|
||||||||||||||||||||||||
Cash and due from banks
|
48,398 | 0 | 39,616 | 0 | ||||||||||||||||||||
Premises and equipment
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29,291 | 0 | 30,208 | 0 | ||||||||||||||||||||
Other nonearning assets
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90,900 | 0 | 76,671 | 0 | ||||||||||||||||||||
Less allowance for loan losses
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(38,325 | ) | 0 | (24,801 | ) | 0 | ||||||||||||||||||
Total assets
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$ | 2,652,624 | $ | 124,900 | $ | 2,446,953 | $ | 117,590 |
(1)
|
Tax exempt income was converted to a fully taxable equivalent basis at a 35 percent tax rate for 2010 and 2009. The tax equivalent rate for tax exempt loans and tax exempt securities acquired after January 1, 1983 included the TEFRA adjustment applicable to nondeductible interest expenses.
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(2)
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Loan fees, which are immaterial in relation to total taxable loan interest income for the years ended December 31, 2010 and 2009, are included as taxable loan interest income.
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(3)
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Nonaccrual loans are included in the average balance of taxable loans.
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(1)
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Long-term borrowings and subordinated debentures interest expense was reduced by interest capitalized on construction in process for 2011 and 2010.
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(1)
|
Long-term borrowings and subordinated debentures interest expense was reduced by interest capitalized on construction in process for 2010.
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2011 Over (Under) 2010 (1) | 2010 Over (Under) 2009 (1) | |||||||||||||||||||||||
Volume
|
Rate
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Total
|
Volume
|
Rate
|
Total
|
|||||||||||||||||||
INTEREST AND LOAN FEE INCOME (2)
|
||||||||||||||||||||||||
Loans:
|
||||||||||||||||||||||||
Taxable
|
$ | 4,530 | $ | (3,799 | ) | $ | 731 | $ | 7,605 | $ | 449 | $ | 8,054 | |||||||||||
Tax exempt
|
541 | 37 | 578 | (104 | ) | 27 | (77 | ) | ||||||||||||||||
Investments:
|
||||||||||||||||||||||||
Available for sale
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782 | (3,549 | ) | (2,767 | ) | 1,584 | (2,310 | ) | (726 | ) | ||||||||||||||
Short-term investments
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(24 | ) | (12 | ) | (36 | ) | 21 | 3 | 24 | |||||||||||||||
Interest bearing deposits
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107 | (37 | ) | 70 | 53 | (18 | ) | 35 | ||||||||||||||||
Total interest income
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5,936 | (7,360 | ) | (1,424 | ) | 9,159 | (1,849 | ) | 7,310 | |||||||||||||||
INTEREST EXPENSE
|
||||||||||||||||||||||||
Savings deposits
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275 | (161 | ) | 114 | 119 | 597 | 716 | |||||||||||||||||
Interest bearing checking accounts
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2,047 | (54 | ) | 1,993 | 1,528 | 1,258 | 2,786 | |||||||||||||||||
Time deposits:
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||||||||||||||||||||||||
In denominations under $100,000
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718 | (1,041 | ) | (323 | ) | (1,449 | ) | (6,624 | ) | (8,073 | ) | |||||||||||||
In denominations over $100,000
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(1,557 | ) | (499 | ) | (2,056 | ) | 1,214 | (883 | ) | 331 | ||||||||||||||
Miscellaneous short-term borrowings
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(111 | ) | (4 | ) | (115 | ) | (424 | ) | 62 | (362 | ) | |||||||||||||
Long-term borrowings and
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||||||||||||||||||||||||
subordinated debentures
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(752 | ) | 79 | (673 | ) | (113 | ) | (475 | ) | (588 | ) | |||||||||||||
Total interest expense
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620 | (1,680 | ) | (1,060 | ) | 875 | (6,065 | ) | (5,190 | ) | ||||||||||||||
INCREASE (DECREASE) IN
|
||||||||||||||||||||||||
INTEREST DIFFERENTIALS
|
$ | 5,316 | $ | (5,680 | ) | $ | (364 | ) | $ | 8,284 | $ | 4,216 | $ | 12,500 |
(1)
|
The earning assets and interest bearing liabilities used to calculate interest differentials are based on average daily balances for 2011, 2010 and 2009. The changes in volume represent "changes in volume times the old rate". The changes in rate represent "changes in rate times old volume". The changes in rate/volume were also calculated by "change in rate times change in volume" and allocated consistently based upon the relative absolute values of the changes in volume and changes in rate.
|
|||||||||||||||
(2)
|
Tax exempt income was converted to a fully taxable equivalent basis at a 35 percent tax rate for 2011, 2010 and 2009. The tax equivalent rate for tax exempt loans and tax exempt securities acquired after January 1, 1983 included the TEFRA adjustment applicable to nondeductible interest expense.
|
2011
|
2010
|
2009
|
||||||||||||||||||||||
Amortized
|
Fair
|
Amortized
|
Fair
|
Amortized
|
Fair
|
|||||||||||||||||||
Cost
|
Value
|
Cost
|
Value
|
Cost
|
Value
|
|||||||||||||||||||
Securities available for sale:
|
||||||||||||||||||||||||
U.S. Treasury securities
|
$ | 1,003 | $ | 1,055 | $ | 1,004 | $ | 1,036 | $ | 1,005 | $ | 992 | ||||||||||||
U.S. Government sponsored agencies
|
5,033 | 5,277 | 0 | 0 | 4,588 | 4,610 | ||||||||||||||||||
Agency residential mortgage-backed securities
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342,036 | 350,102 | 299,266 | 308,851 | 264,276 | 270,796 | ||||||||||||||||||
Non-agency residential mortgage-backed securities
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34,241 | 32,207 | 68,578 | 62,773 | 88,382 | 72,495 | ||||||||||||||||||
State and municipal securities
|
73,467 | 78,750 | 69,059 | 69,960 | 59,375 | 61,135 | ||||||||||||||||||
Total debt securities available for sale
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$ | 455,780 | $ | 467,391 | $ | 437,907 | $ | 442,620 | $ | 417,626 | $ | 410,028 |
After One
|
After Five
|
|||||||||||||||
Within
|
Year
|
Years
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Over
|
|||||||||||||
One
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Within
|
Within Ten
|
Ten
|
|||||||||||||
Year
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Five Years
|
Years
|
Years
|
|||||||||||||
Securities available for sale:
|
||||||||||||||||
US Treasury securities
|
||||||||||||||||
Fair value
|
$ | 0 | $ | 1,055 | $ | 0 | $ | 0 | ||||||||
Yield
|
0 | % | 2.38 | % | 0 | % | 0 | % | ||||||||
U.S. Government sponsored agencies
|
||||||||||||||||
Fair value
|
0 | 5,277 | 0 | 0 | ||||||||||||
Yield
|
0 | % | 2.41 | % | 0 | % | 0 | % | ||||||||
Agency residential mortgage-backed securities
|
||||||||||||||||
Fair value
|
0 | 4,513 | 48,759 | 296,830 | ||||||||||||
Yield
|
0 | % | 5.01 | % | 4.91 | % | 4.55 | % | ||||||||
Non-agency residential mortgage-backed securities
|
||||||||||||||||
Fair value
|
0 | 0 | 3,506 | 28,701 | ||||||||||||
Yield
|
0 | % | 0 | % | 5.00 | % | 5.63 | % | ||||||||
State and municipal securities
|
||||||||||||||||
Fair value
|
700 | 15,873 | 36,424 | 25,753 | ||||||||||||
Yield
|
4.37 | % | 4.38 | % | 3.99 | % | 4.04 | % | ||||||||
Total debt securities available for sale:
|
||||||||||||||||
Fair value
|
$ | 700 | $ | 26,718 | $ | 88,689 | $ | 351,284 | ||||||||
Yield
|
4.37 | % | 4.02 | % | 4.53 | % | 4.60 | % |
2011
|
2010
|
2009
|
||||||||||
Commercial and industrial loans:
|
||||||||||||
Working capital lines of credit loans
|
$ | 373,768 | $ | 281,546 | $ | 235,202 | ||||||
Non-working capital loans
|
377,388 | 384,138 | 394,408 | |||||||||
Total commercial and industrial loans
|
751,156 | 665,684 | 629,610 | |||||||||
Commercial real estate and multi-family residential loans:
|
||||||||||||
Construction and land development loans
|
82,284 | 106,980 | 166,959 | |||||||||
Owner occupied loans
|
346,669 | 329,760 | 348,904 | |||||||||
Nonowner occupied loans
|
385,090 | 355,393 | 257,373 | |||||||||
Multifamily loans
|
38,477 | 24,158 | 26,558 | |||||||||
Total commercial real estate and multi-family residential loans
|
852,520 | 816,291 | 799,794 | |||||||||
Agri-business and agricultural loans:
|
||||||||||||
Loans secured by farmland
|
118,224 | 111,961 | 112,241 | |||||||||
Loans for agricultural production
|
119,705 | 117,518 | 82,765 | |||||||||
Total agri-business and agricultural loans
|
237,929 | 229,479 | 195,006 | |||||||||
Other commercial loans
|
58,278 | 38,778 | 30,497 | |||||||||
Total commercial loans
|
1,899,883 | 1,750,232 | 1,654,907 | |||||||||
Consumer 1-4 family mortgage loans:
|
||||||||||||
Closed end first mortgage loans
|
106,999 | 103,118 | 117,619 | |||||||||
Open end and junior lien loans
|
175,694 | 182,325 | 174,641 | |||||||||
Residential construction and land development loans
|
5,462 | 4,140 | 7,471 | |||||||||
Total consumer 1-4 family mortgage loans
|
288,155 | 289,583 | 299,731 | |||||||||
Other consumer loans
|
45,999 | 51,123 | 59,179 | |||||||||
Total consumer loans
|
334,154 | 340,706 | 358,910 | |||||||||
Subtotal
|
2,234,037 | 2,090,938 | 2,013,817 | |||||||||
Less: Allowance for loan losses
|
(53,400 | ) | (45,007 | ) | (32,073 | ) | ||||||
Net deferred loan fees
|
(328 | ) | (979 | ) | (1,807 | ) | ||||||
Loans, net
|
$ | 2,180,309 | $ | 2,044,952 | $ | 1,979,937 |
2008
|
2007
|
|||||||
Commercial loans:
|
||||||||
Taxable
|
$ | 1,522,523 | $ | 1,238,623 | ||||
Tax exempt
|
10,493 | 1,971 | ||||||
Total commercial loans
|
1,533,016 | 1,240,594 | ||||||
Residential real estate mortgage loans
|
117,230 | 124,107 | ||||||
Installment loans
|
51,174 | 49,185 | ||||||
Line of credit and credit card loans
|
132,147 | 109,760 | ||||||
Subtotal loans
|
1,833,567 | 1,523,646 | ||||||
Less: Allowance for loan losses
|
(18,860 | ) | (15,801 | ) | ||||
Net deferred loan (fees)/costs
|
(233 | ) | 74 | |||||
Net loans
|
$ | 1,814,474 | $ | 1,507,919 |
Residential
|
||||||||||||||||||||||||
Real
|
||||||||||||||||||||||||
Estate
|
Line of
|
|||||||||||||||||||||||
Commercial
|
Mortgage
|
Installment
|
Credit
|
Total
|
Percent
|
|||||||||||||||||||
Original maturity of one day
|
$ | 0 | $ | 0 | $ | 0 | $ | 117,679 | $ | 117,679 | 5.27 | % | ||||||||||||
Other within one year
|
1,081,416 | 5,355 | 14,100 | 27,866 | $ | 1,128,737 | 50.52 | |||||||||||||||||
After one year, within five years
|
711,512 | 12,664 | 23,309 | 8,584 | $ | 756,069 | 33.84 | |||||||||||||||||
Over five years
|
109,385 | 68,454 | 2,757 | 11,531 | $ | 192,127 | 8.60 | |||||||||||||||||
Nonaccrual loans
|
38,219 | 714 | 40 | 452 | $ | 39,425 | 1.77 | |||||||||||||||||
Total loans
|
$ | 1,940,532 | $ | 87,187 | $ | 40,206 | $ | 166,112 | $ | 2,234,037 | 100.0 | % |
2011
|
2010
|
2009
|
2008
|
2007
|
||||||||||||||||
Amount of loans outstanding, December 31,
|
$ | 2,233,709 | $ | 2,089,959 | $ | 2,012,010 | $ | 1,833,335 | $ | 1,523,720 | ||||||||||
Average daily loans outstanding during the year
|
||||||||||||||||||||
ended December 31,
|
$ | 2,148,046 | $ | 2,049,209 | $ | 1,901,746 | $ | 1,665,024 | $ | 1,404,068 | ||||||||||
Allowance for loan losses, January 1,
|
$ | 45,007 | $ | 32,073 | $ | 18,860 | $ | 15,801 | $ | 14,463 | ||||||||||
Loans charged-off:
|
||||||||||||||||||||
Commercial
|
5,553 | 10,215 | 7,251 | 6,726 | 2,381 | |||||||||||||||
Residential real estate
|
388 | 913 | 337 | 72 | 16 | |||||||||||||||
Installment
|
358 | 507 | 674 | 805 | 537 | |||||||||||||||
Credit cards and personal credit lines
|
530 | 107 | 249 | 3 | 458 | |||||||||||||||
Total loans charged-off
|
6,829 | 11,742 | 8,511 | 7,606 | 3,392 | |||||||||||||||
Recoveries of loans previously charged-off:
|
||||||||||||||||||||
Commercial
|
1,201 | 546 | 337 | 147 | 252 | |||||||||||||||
Residential real estate
|
17 | 25 | 0 | 16 | 27 | |||||||||||||||
Installment
|
153 | 149 | 173 | 200 | 124 | |||||||||||||||
Credit cards and personal credit lines
|
51 | 9 | 12 | 95 | 29 | |||||||||||||||
Total recoveries
|
1,422 | 729 | 522 | 458 | 432 | |||||||||||||||
Net loans charged-off
|
5,407 | 11,013 | 7,989 | 7,148 | 2,960 | |||||||||||||||
Provision for loan loss charged to expense
|
13,800 | 23,947 | 21,202 | 10,207 | 4,298 | |||||||||||||||
Balance, December 31,
|
$ | 53,400 | $ | 45,007 | $ | 32,073 | $ | 18,860 | $ | 15,801 | ||||||||||
Ratio of net charge-offs during the period to
|
||||||||||||||||||||
average daily loans outstanding:
|
||||||||||||||||||||
Commercial
|
0.20 | % | 0.47 | % | 0.36 | % | 0.40 | % | 0.15 | % | ||||||||||
Residential real estate
|
0.02 | 0.04 | 0.02 | 0.00 | 0.00 | |||||||||||||||
Installment
|
0.01 | 0.02 | 0.03 | 0.04 | 0.03 | |||||||||||||||
Credit cards and personal credit lines
|
0.02 | 0.01 | 0.01 | (0.01 | ) | 0.03 | ||||||||||||||
Total ratio of net charge-offs
|
0.25 | % | 0.54 | % | 0.42 | % | 0.43 | % | 0.21 | % | ||||||||||
Ratio of allowance for loan losses to
|
||||||||||||||||||||
nonperforming loans
|
135.27 | % | 121.90 | % | 104.45 | % | 88.59 | % | 212.15 | % |
2011
|
2010
|
|||||||||||||||
Allowance
|
Loans as
|
Allowance
|
Loans as
|
|||||||||||||
For
|
Percentage
|
For
|
Percentage
|
|||||||||||||
Loan
|
of Gross
|
Loan
|
of Gross
|
|||||||||||||
Losses
|
Loans
|
Losses
|
Loans
|
|||||||||||||
Allocated allowance for loan losses:
|
||||||||||||||||
Commercial
|
$ | 47,079 | 85.04 | % | $ | 38,960 | 83.71 | % | ||||||||
Residential real estate
|
2,322 | 12.90 | 1,694 | 13.85 | ||||||||||||
Consumer
|
645 | 2.06 | 682 | 2.44 | ||||||||||||
Total allocated allowance for loan losses
|
50,046 | 100.00 | % | 41,336 | 100.00 | % | ||||||||||
Unallocated allowance for loan losses
|
3,354 | 3,671 | ||||||||||||||
Total allowance for loan losses
|
$ | 53,400 | $ | 45,007 | ||||||||||||
2009
|
2008
|
2007
|
||||||||||||||||||||||
Allowance
|
Loans as
|
Allowance
|
Loans as
|
Allowance
|
Loans as
|
|||||||||||||||||||
For
|
Percentage
|
For
|
Percentage
|
For
|
Percentage
|
|||||||||||||||||||
Loan
|
of Gross
|
Loan
|
of Gross
|
Loan
|
of Gross
|
|||||||||||||||||||
Losses
|
Loans
|
Losses
|
Loans
|
Losses
|
Loans
|
|||||||||||||||||||
Allocated allowance for loan losses:
|
||||||||||||||||||||||||
Commercial
|
$ | 28,014 | 84.39 | % | $ | 15,738 | 83.61 | % | $ | 13,659 | 81.42 | % | ||||||||||||
Residential real estate
|
365 | 4.73 | 292 | 6.39 | 571 | 8.15 | ||||||||||||||||||
Installment
|
453 | 2.58 | 384 | 2.79 | 421 | 3.23 | ||||||||||||||||||
Credit cards and personal credit lines
|
538 | 8.30 | 996 | 7.21 | 828 | 7.20 | ||||||||||||||||||
Total allocated allowance for loan losses
|
29,370 | 100.00 | % | 17,410 | 100.00 | % | 15,479 | 100.00 | % | |||||||||||||||
Unallocated allowance for loan losses
|
2,703 | 1,450 | 322 | |||||||||||||||||||||
Total allowance for loan losses
|
$ | 32,073 | $ | 18,860 | $ | 15,801 |
2011
|
2010
|
2009
|
||||||||||||||||||||||
Average
|
Average
|
Average
|
Average
|
Average
|
Average
|
|||||||||||||||||||
Daily
|
Rate
|
Daily
|
Rate
|
Daily
|
Rate
|
|||||||||||||||||||
Balance
|
Paid
|
Balance
|
Paid
|
Balance
|
Paid
|
|||||||||||||||||||
Demand deposits
|
$ | 310,524 | 0.00 | % | $ | 266,424 | 0.00 | % | $ | 229,009 | 0.00 | % | ||||||||||||
Savings and transaction accounts:
|
||||||||||||||||||||||||
Regular savings
|
168,470 | 0.55 | 121,844 | 0.67 | 70,202 | 0.14 | ||||||||||||||||||
Interest bearing checking
|
879,295 | 1.20 | 709,002 | 1.21 | 572,539 | 1.01 | ||||||||||||||||||
Time deposits:
|
||||||||||||||||||||||||
Deposits of $100,000 or more
|
611,389 | 1.52 | 712,859 | 1.59 | 638,956 | 1.72 | ||||||||||||||||||
Other time deposits
|
356,286 | 1.95 | 322,479 | 2.26 | 359,526 | 4.27 | ||||||||||||||||||
Total deposits
|
$ | 2,325,964 | 1.19 | % | $ | 2,132,608 | 1.31 | % | $ | 1,870,232 | 1.72 | % |
$100,000 |
% of
|
% of
|
||||||||||||||
or more
|
Total
|
Other
|
Total
|
|||||||||||||
Within three months
|
$ | 81,141 | 15.56 | % | $ | 35,252 | 9.07 | % | ||||||||
Over three months, within six months
|
83,730 | 16.06 | 52,512 | 13.50 | ||||||||||||
Over six months, within twelve months
|
158,804 | 30.45 | 125,964 | 32.39 | ||||||||||||
Over twelve months
|
197,820 | 37.93 | 175,158 | 45.04 | ||||||||||||
Total time certificates of deposit
|
$ | 521,495 | 100.00 | % | $ | 388,886 | 100.00 | % |
2011
|
2010
|
2009
|
||||
Percent of net income to:
|
||||||
Average daily total assets
|
1.10
|
%
|
0.93
|
%
|
0.78
|
%
|
Average daily stockholders' equity
|
11.78
|
%
|
9.34
|
%
|
8.94
|
%
|
Percentage of dividends declared per
|
||||||
common share to basic earnings per
|
||||||
weighted average number of common
|
||||||
shares outstanding (16,204,952
|
||||||
shares in 2011, 16,120,606 shares in
|
||||||
2010 and 12,851,845 shares in 2009)
|
32.80
|
%
|
46.97
|
%
|
48.82
|
%
|
Percentage of average daily
|
||||||
stockholders' equity to average
|
||||||
daily total assets
|
9.32
|
%
|
9.91
|
%
|
8.68
|
%
|
2011
|
2010
|
2009
|
||||||||||
Outstanding at year end:
|
||||||||||||
Federal funds purchased
|
$ | 10,000 | $ | 0 | $ | 9,600 | ||||||
Securities sold under agreements to repurchase
|
$ | 131,990 | $ | 142,015 | $ | 127,118 | ||||||
Other short-term borrowings
|
$ | 0 | $ | 30,000 | $ | 215,000 | ||||||
Approximate average interest rate at year end:
|
||||||||||||
Federal funds purchased
|
0.50 | % | 0.00 | % | 0.50 | % | ||||||
Securities sold under agreements to repurchase
|
0.35 | % | 0.42 | % | 0.42 | % | ||||||
Other short-term borrowings
|
0.00 | % | 0.50 | % | 0.38 | % | ||||||
Highest amount outstanding as of any month end
|
||||||||||||
during the year:
|
||||||||||||
Federal funds purchased
|
$ | 33,000 | $ | 71,300 | $ | 94,300 | ||||||
Securities sold under agreements to repurchase
|
$ | 146,281 | $ | 142,015 | $ | 133,072 | ||||||
Other short-term borrowings
|
$ | 40,000 | $ | 155,000 | $ | 220,000 | ||||||
Approximate average outstanding during the year:
|
||||||||||||
Federal funds purchased
|
$ | 3,890 | $ | 13,628 | $ | 25,195 | ||||||
Securities sold under agreements to repurchase
|
$ | 134,814 | $ | 114,578 | $ | 125,195 | ||||||
Other short-term borrowings
|
$ | 4,329 | $ | 41,055 | $ | 119,849 | ||||||
Approximate average interest rate during the year:
|
||||||||||||
Federal funds purchased
|
0.51 | % | 0.55 | % | 0.56 | % | ||||||
Securities sold under agreements to repurchase
|
0.42 | % | 0.44 | % | 0.46 | % | ||||||
Other short-term borrowings
|
0.47 | % | 0.25 | % | 0.39 | % |
|
·
|
We may face further increased regulation of our industry especially as a result of increased rule making called for by the Dodd-Frank Act, and compliance with such regulation may increase our costs and limit our ability to pursue business opportunities.
|
|
·
|
Customer demand for loans secured by real estate could be reduced due to weaker economic conditions, an increase in unemployment, a decrease in real estate values or an increase in interest rates.
|
|
·
|
The process we use to estimate losses inherent in our credit exposure requires difficult, subjective and complex judgments, including forecasts of economic conditions and how these economic conditions might impair the ability of our borrowers to repay their loans. The level of uncertainty concerning economic conditions may adversely affect the accuracy of our estimates which may, in turn, impact the reliability of the process.
|
|
·
|
The value of the portfolio of investment securities that we hold may be adversely affected.
|
|
·
|
Our ability to assess the creditworthiness of our customers may be impaired if the models and approaches we use to select, manage and underwrite the loans become less predictive of future behaviors.
|
|
·
|
Our ability to borrow from other financial institutions or to engage in sales of mortgage loans to third parties on favorable terms, or at all, could be adversely affected by further disruptions in the capital markets or other events, including deteriorating investor expectations.
|
|
·
|
We expect to face increased capital requirements, both at the Company level and at the Bank level. In this regard, the Collins Amendment to the Dodd-Frank Act requires the federal banking agencies to establish minimum leverage and risk-based capital requirements that will apply to both insured banks and their holding companies. Furthermore, the Group of Governors and Heads of Supervision, the oversight body of the Basel Committee on Banking Supervision, recently announced an agreement to a strengthened set of capital requirements for internationally active banking organizations, known as Basel III. We expect U.S. banking authorities to follow the lead of Basel III and require all U.S. banking organizations to maintain significantly higher levels of capital, which may limit our ability to pursue business opportunities and adversely affect our results of operations and growth prospects.
|
|
·
|
potential exposure to unknown or contingent liabilities of banks and businesses we acquire;
|
|
·
|
exposure to potential asset quality issues of the acquired bank or related business;
|
|
·
|
difficulty and expense of integrating the operations and personnel of banks and businesses we acquire; and
|
|
·
|
the possible loss of key employees and customers of the banks and businesses we acquire.
|
|
Main/Headquarters
|
202 East Center St.
|
Warsaw
|
IN
|
Warsaw Drive-up
|
220 East Center St.
|
Warsaw
|
IN
|
Akron
|
102 East Rochester
|
Akron
|
IN
|
Argos
|
100 North Michigan
|
Argos
|
IN
|
Auburn
|
1220 East 7th St.
|
Auburn
|
IN
|
Bremen
|
1600 State Road 331
|
Bremen
|
IN
|
Columbia City
|
601 Countryside Dr.
|
Columbia City
|
IN
|
Concord
|
4202 Elkhart Rd.
|
Goshen
|
IN
|
Cromwell
|
111 North Jefferson St.
|
Cromwell
|
IN
|
Elkhart Beardsley
|
864 East Beardsley St.
|
Elkhart
|
IN
|
Elkhart East
|
22050 State Road 120
|
Elkhart
|
IN
|
Elkhart Hubbard Hill
|
58404 State Road 19
|
Elkhart
|
IN
|
Elkhart Northwest
|
1208 North Nappanee St.
|
Elkhart
|
IN
|
Fort Wayne Jefferson Blvd
|
6851 West Jefferson Blvd.
|
Fort Wayne
|
IN
|
Fort Wayne North
|
302 East DuPont Rd.
|
Fort Wayne
|
IN
|
Fort Wayne Northeast
|
10411 Maysville Rd.
|
Fort Wayne
|
IN
|
Fort Wayne Southwest
|
10429 Illinois Rd.
|
Fort Wayne
|
IN
|
Goshen Downtown
|
102 North Main St.
|
Goshen
|
IN
|
Goshen South
|
2513 South Main St.
|
Goshen
|
IN
|
Granger
|
12830 State Road 23
|
Granger
|
IN
|
Huntington
|
1501 North Jefferson St.
|
Huntington
|
IN
|
Indianapolis North
|
100 West 96
th
St.
|
Indianapolis
|
IN
|
Kendallville East
|
631 Professional Way
|
Kendallville
|
IN
|
LaGrange
|
901 South Detroit St.
|
LaGrange
|
IN
|
Ligonier Downtown
|
222 South Cavin St.
|
Ligonier
|
IN
|
Ligonier South
|
1470 U.S. Highway 33 South
|
Ligonier
|
IN
|
Medaryville
|
205 East. Main St.
|
Medaryville
|
IN
|
Mentone
|
202 East Main St.
|
Mentone
|
IN
|
Middlebury
|
712 Wayne Ave.
|
Middlebury
|
IN
|
Milford
|
State Road 15 North
|
Milford
|
IN
|
Mishawaka
|
5015 North Main St.
|
Mishawaka
|
IN
|
Nappanee
|
202 West Market St.
|
Nappanee
|
IN
|
North Webster
|
644 North Main St.
|
North Webster
|
IN
|
Pierceton
|
108 South First St.
|
Pierceton
|
IN
|
Plymouth
|
862 East Jefferson St.
|
Plymouth
|
IN
|
Rochester
|
507 East 9th St.
|
Rochester
|
IN
|
Shipshewana
|
895 North Van Buren St.
|
Shipshewana
|
IN
|
Silver Lake
|
102 Main St.
|
Silver Lake
|
IN
|
South Bend Downtown
|
101 North Michigan St.
|
South Bend
|
IN
|
South Bend Northwest
|
21113 Cleveland Rd.
|
South Bend
|
IN
|
Syracuse
|
502 South Huntington St.
|
Syracuse
|
IN
|
Warsaw East
|
3601 Commerce Dr.
|
Warsaw
|
IN
|
Warsaw North
|
420 Chevy Way
|
Warsaw
|
IN
|
Warsaw West
|
1221 West Lake St.
|
Warsaw
|
IN
|
Winona Lake
|
99 Chestnut St.
|
Winona Lake
|
IN
|
Winona Lake East
|
1324 Wooster Rd.
|
Winona Lake
|
IN
|
4th
|
3rd
|
2nd
|
1st
|
|||||||||||||
Quarter
|
Quarter
|
Quarter
|
Quarter
|
|||||||||||||
Trading prices (per share)*
|
||||||||||||||||
Low
|
$ | 19.67 | $ | 19.40 | $ | 20.68 | $ | 20.50 | ||||||||
High
|
$ | 26.48 | $ | 23.94 | $ | 23.05 | $ | 23.65 | ||||||||
Dividends declared (per share)
|
$ | 0.155 | $ | 0.155 | $ | 0.155 | $ | 0.155 | ||||||||
2010
|
||||||||||||||||
Trading prices (per share)*
|
||||||||||||||||
Low
|
$ | 18.34 | $ | 17.84 | $ | 18.95 | $ | 17.00 | ||||||||
High
|
$ | 22.28 | $ | 21.19 | $ | 22.17 | $ | 19.18 | ||||||||
Dividends declared (per share)
|
$ | 0.155 | $ | 0.155 | $ | 0.155 | $ | 0.155 |
Maximum Number (or
|
||||||||||||||||
Total Number of
|
Appropriate Dollar
|
|||||||||||||||
Shares Purchased as
|
Value) of Shares that
|
|||||||||||||||
Part of Publicly
|
May Yet Be Purchased
|
|||||||||||||||
Total Number of
|
Average Price
|
Announced Plans or
|
Under the Plans or
|
|||||||||||||
Period
|
Shares Purchased
|
Paid per Share
|
Programs
|
Programs
|
||||||||||||
10/01/11-10/31/11
|
0 | $ | 0.00 | 0 | $ | 0.00 | ||||||||||
11/01/11-11/30/11
|
461 | 23.72 | 0 | 0.00 | ||||||||||||
12/01/11-12/31/11
|
0 | 0.00 | 0 | 0.00 | ||||||||||||
Total
|
461 | $ | 23.72 | 0 | $ | 0.00 |
INDEX
|
2006
|
2007
|
2008
|
2009
|
2010
|
2011
|
||||||||||||||||||
Lakeland Financial Corporation
|
$ | 100.00 | 83.85 | 98.38 | 73.48 | 94.45 | 117.01 | |||||||||||||||||
NASDAQ Market Index
|
$ | 100.00 | 110.66 | 66.42 | 96.54 | 114.06 | 113.16 | |||||||||||||||||
NASDAQ Bank Index
|
$ | 100.00 | 80.09 | 62.84 | 52.60 | 60.04 | 53.74 | |||||||||||||||||
Peer Group Index
|
$ | 100.00 | 74.19 | 60.10 | 44.86 | 49.51 | 42.95 |
Company
|
Company
|
|
1st United Bancorp, Inc.
|
Horizon Bancorp
|
|
ACNB Corporation
|
Hudson Valley Holding Corp.
|
|
Alliance Financial Corporation
|
Independent Bank Corporation
|
|
American National Bankshares Inc.
|
Intervest Bancshares Corporation
|
|
Ames National Corporation
|
Lakeland Bancorp, Inc.
|
|
Arrow Financial Corporation
|
Lakeland Financial Corporation
|
|
BancTrust Financial Group, Inc.
|
LNB Bancorp, Inc.
|
|
Bank of Kentucky Financial Corporation
|
Macatawa Bank Corporation
|
|
Bank of Marin Bancorp
|
MainSource Financial Group, Inc.
|
|
Bar Harbor Bankshares
|
MBT Financial Corp.
|
|
BCB Bancorp, Inc.
|
Mercantile Bank Corporation
|
|
BNC Bancorp
|
Merchants Bancshares, Inc.
|
|
Bridge Bancorp, Inc.
|
Metro Bancorp, Inc.
|
|
Bridge Capital Holdings
|
MetroCorp Bancshares, Inc.
|
|
Bryn Mawr Bank Corporation
|
Middleburg Financial Corporation
|
|
Camden National Corporation
|
MidSouth Bancorp, Inc.
|
|
Capital City Bank Group, Inc.
|
MidWestOne Financial Group, Inc.
|
|
Cardinal Financial Corporation
|
MutualFirst Financial, Inc.
|
|
Cascade Bancorp
|
National Bankshares, Inc.
|
|
Cass Information Systems, Inc.
|
NewBridge Bancorp
|
|
Center Bancorp, Inc.
|
Northrim BanCorp, Inc.
|
|
CenterState Banks, Inc.
|
Old Second Bancorp, Inc.
|
|
Century Bancorp, Inc.
|
Orrstown Financial Services, Inc.
|
|
Citizens & Northern Corporation
|
Pacific Continental Corporation
|
|
City Holding Company
|
Pacific Mercantile Bancorp
|
|
CNB Financial Corporation
|
Palmetto Bancshares, Inc.
|
|
CoBiz Financial Inc.
|
Peapack-Gladstone Financial Corporation
|
|
Codorus Valley Bancorp, Inc.
|
Peoples Bancorp Inc.
|
|
Colony Bankcorp, Inc.
|
Peoples Bancorp of North Carolina, Inc.
|
|
Community Bankers Trust Corporation
|
Porter Bancorp, Inc.
|
|
Eastern Virginia Bankshares, Inc.
|
Preferred Bank
|
|
Encore Bancshares, Inc.
|
Premier Financial Bancorp, Inc.
|
|
Enterprise Bancorp, Inc.
|
PremierWest Bancorp
|
|
Farmers Capital Bank Corporation
|
Princeton National Bancorp, Inc.
|
|
Farmers National Banc Corp.
|
QCR Holdings, Inc.
|
|
Fidelity Southern Corporation
|
S.Y. Bancorp, Inc.
|
|
Financial Institutions, Inc.
|
Seacoast Banking Corporation of Florida
|
|
First Bancorp, Inc.
|
Shore Bancshares, Inc.
|
|
First Business Financial Services, Inc.
|
Sierra Bancorp
|
|
First California Financial Group, Inc.
|
Southern Community Financial Corporation
|
|
First Citizens Banc Corp
|
Southwest Bancorp, Inc.
|
|
First Community Bancshares, Inc.
|
State Bank Financial Corporation
|
|
First Financial Corporation
|
StellarOne Corporation
|
|
First Financial Service Corporation
|
Sterling Bancorp
|
|
First M&F Corporation
|
Suffolk Bancorp
|
|
First of Long Island Corporation
|
Summit Financial Group, Inc.
|
|
First Security Group, Inc.
|
Tennessee Commerce Bancorp, Inc.
|
|
First United Corporation
|
Tower Bancorp, Inc.
|
|
Firstbank Corporation
|
TriCo Bancshares
|
|
FNB United Corp.
|
Univest Corporation of Pennsylvania
|
|
German American Bancorp, Inc.
|
Virginia Commerce Bancorp, Inc.
|
|
Guaranty Bancorp
|
VIST Financial Corp.
|
|
Hampton Roads Bankshares, Inc.
|
Washington Banking Company
|
|
Hanmi Financial Corporation
|
Washington Trust Bancorp, Inc.
|
|
Hawthorn Bancshares, Inc.
|
West Bancorporation, Inc.
|
|
Heritage Commerce Corp
|
West Coast Bancorp
|
|
Heritage Financial Corporation
|
Wilshire Bancorp, Inc.
|
|
Home Federal Bancorp, Inc.
|
Yadkin Valley Financial Corporation
|
2011
|
2010
|
2009
|
2008
|
2007
|
||||||||||||||||
(in thousands except share and per share data) | ||||||||||||||||||||
Interest income
|
$ | 121,892 | $ | 123,525 | $ | 116,343 | $ | 118,484 | $ | 117,973 | ||||||||||
Interest expense
|
29,812 | 30,872 | 36,062 | 55,216 | 63,417 | |||||||||||||||
Net interest income
|
92,080 | 92,653 | 80,281 | 63,268 | 54,556 | |||||||||||||||
Provision for loan losses
|
13,800 | 23,947 | 21,202 | 10,207 | 4,298 | |||||||||||||||
Net interest income after provision
|
||||||||||||||||||||
for loan losses
|
78,280 | 68,706 | 59,079 | 53,061 | 50,258 | |||||||||||||||
Other noninterest income
|
21,372 | 19,918 | 20,547 | 22,236 | 19,844 | |||||||||||||||
Gain on redemption of Visa shares
|
0 | 0 | 0 | 642 | 0 | |||||||||||||||
Mortgage banking income
|
1,000 | 1,587 | 1,695 | 411 | 309 | |||||||||||||||
Net securities gains (losses)
|
(167 | ) | 4 | 2 | 39 | 89 | ||||||||||||||
Noninterest expense
|
(55,105 | ) | (53,435 | ) | (53,475 | ) | (47,481 | ) | (42,923 | ) | ||||||||||
Income before income tax expense
|
45,380 | 36,780 | 27,848 | 28,908 | 27,577 | |||||||||||||||
Income tax expense
|
14,718 | 12,237 | 8,869 | 9,207 | 8,366 | |||||||||||||||
Net income
|
30,662 | 24,543 | 18,979 | 19,701 | 19,211 | |||||||||||||||
Dividends and accretion of discount on
|
||||||||||||||||||||
preferred stock
|
0 | 3,187 | 2,694 | 0 | 0 | |||||||||||||||
Net income available to common shareholders
|
$ | 30,662 | $ | 21,356 | $ | 16,285 | $ | 19,701 | $ | 19,211 | ||||||||||
Basic weighted average common shares
|
||||||||||||||||||||
outstanding
|
16,204,952 | 16,120,606 | 12,851,845 | 12,271,927 | 12,188,594 | |||||||||||||||
Basic earnings per common share
|
$ | 1.89 | $ | 1.32 | $ | 1.27 | $ | 1.61 | $ | 1.58 | ||||||||||
Diluted weighted average common shares
|
||||||||||||||||||||
outstanding
|
16,324,644 | 16,213,747 | 12,952,444 | 12,459,802 | 12,424,137 | |||||||||||||||
Diluted earnings per common share
|
$ | 1.88 | $ | 1.32 | $ | 1.26 | $ | 1.58 | $ | 1.55 | ||||||||||
Cash dividends declared
|
$ | 0.62 | $ | 0.62 | $ | 0.62 | $ | 0.61 | $ | 0.55 |
Balances at December 31,
|
2011
|
2010
|
2009
|
2008
|
2007
|
|||||||||||||||
(in thousands)
|
||||||||||||||||||||
Total assets
|
$ | 2,889,688 | $ | 2,681,926 | $ | 2,571,505 | $ | 2,377,445 | $ | 1,989,133 | ||||||||||
Total loans
|
$ | 2,233,709 | $ | 2,089,959 | $ | 2,012,010 | $ | 1,833,334 | $ | 1,523,720 | ||||||||||
Total deposits
|
$ | 2,412,696 | $ | 2,201,025 | $ | 1,851,125 | $ | 1,885,299 | $ | 1,478,918 | ||||||||||
Total short-term borrowings
|
$ | 141,990 | $ | 174,052 | $ | 354,051 | $ | 202,609 | $ | 316,165 | ||||||||||
Long-term borrowings
|
$ | 15,040 | $ | 15,041 | $ | 40,042 | $ | 90,043 | $ | 44 | ||||||||||
Subordinated debentures
|
$ | 30,928 | $ | 30,928 | $ | 30,928 | $ | 30,928 | $ | 30,928 | ||||||||||
Total stockholders' equity
|
$ | 273,200 | $ | 246,997 | $ | 279,994 | $ | 149,880 | $ | 146,270 |
|
·
|
cash dividends of $10.1 million,
|
|
·
|
a favorable change in the AFS adjustment for the market valuation on securities held for sale of $4.3 million, net of tax,
|
|
·
|
negative pension liability adjustment of $516,000, net of tax,
|
|
·
|
$468,000 related to stock option exercises, and
|
|
·
|
$1.3 million in stock compensation expense.
|
|
·
|
cash dividends of $11.2 million,
|
|
·
|
a favorable change in the AFS adjustment for the market valuation on securities held for sale of $7.3 million, net of tax,
|
|
·
|
positive pension liability adjustment of $63,000, net of tax,
|
|
·
|
$122,000 for net treasury stock sold,
|
|
·
|
$1.1 million related to stock option exercises,
|
|
·
|
$1.3 million in stock compensation expense, and
|
|
·
|
$56.0 million paid for the redemption of preferred stock, net of accretion.
|
(dollars in thousands)
|
||||
Fair value of mortgage servicing assets
|
$ | 2,098 | ||
Constant prepayment speed (PSA)
|
387 | |||
Impact on fair value of 10% adverse change
|
$ | (130 | ) | |
Impact on fair value of 20% adverse change
|
(246 | ) | ||
Discount rate
|
9.2 | % | ||
Impact on fair value of 10% adverse change
|
$ | (42 | ) | |
Impact on fair value of 20% adverse change
|
(83 | ) |
|
·
|
The length of time and the extent to which the market value has been less than amortized cost;
|
|
·
|
The financial condition and near-term prospects of the issuer;
|
|
·
|
The underlying fundamentals of the relevant market and the outlook for such market for the near future; and
|
|
·
|
Our intent and ability to hold the security for a period of time sufficient to allow for any anticipated recovery in market value.
|
Payments Due by Period
|
||||||||||||||||||||
One year
|
After 5
|
|||||||||||||||||||
Total
|
or less
|
1-3 years
|
3-5 years
|
years
|
||||||||||||||||
(in thousands)
|
||||||||||||||||||||
Certificates of deposit
|
$ | 340,723 | $ | 192,775 | $ | 112,966 | $ | 34,939 | $ | 43 | ||||||||||
Long-term debt
|
15,000 | 0 | 15,000 | 0 | 0 | |||||||||||||||
Operating leases
|
1,851 | 107 | 195 | 187 | 1,362 | |||||||||||||||
Pension and SERP plans
|
2,628 | 257 | 506 | 525 | 1,340 | |||||||||||||||
Subordinated debentures
|
30,928 | 0 | 0 | 0 | 30,928 | |||||||||||||||
Total contractual long-term cash
|
||||||||||||||||||||
obligations
|
$ | 391,130 | $ | 193,139 | $ | 128,667 | $ | 35,651 | $ | 33,673 |
Amount of Commitment Expiration Per Period | ||||||||||||
Total
|
||||||||||||
Amount
|
One year
|
Over one
|
||||||||||
Committed
|
or less
|
year
|
||||||||||
(in thousands)
|
||||||||||||
Unused loan commitments
|
$ | 846,404 | $ | 615,242 | $ | 231,162 | ||||||
Commercial letters of credit
|
984 | 984 | 0 | |||||||||
Standby letters of credit
|
39,614 | 36,183 | 3,431 | |||||||||
Total commitments and letters of credit
|
$ | 887,002 | $ | 652,409 | $ | 234,593 |
2011
|
||||||||||||||||||||||||||||||||
Principal/Notional Amount Maturing in:
|
||||||||||||||||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||||||||||
Fair
|
||||||||||||||||||||||||||||||||
Value
|
||||||||||||||||||||||||||||||||
Year 1
|
Year 2
|
Year 3
|
Year 4
|
Year 5
|
Thereafter
|
Total
|
12/31/2011
|
|||||||||||||||||||||||||
Rate sensitive assets:
|
||||||||||||||||||||||||||||||||
Fixed interest rate loans
|
$ | 384,869 | $ | 194,869 | $ | 126,041 | $ | 87,976 | $ | 44,134 | $ | 83,490 | $ | 921,379 | $ | 934,101 | ||||||||||||||||
Average interest rate
|
5.19 | % | 5.91 | % | 5.87 | % | 5.79 | % | 5.68 | % | 5.56 | % | ||||||||||||||||||||
Variable interest rate loans
|
$ | 900,220 | $ | 161,838 | $ | 64,884 | $ | 35,974 | $ | 40,287 | $ | 109,127 | $ | 1,312,330 | $ | 1,260,758 | ||||||||||||||||
Average interest rate
|
3.84 | % | 4.11 | % | 4.09 | % | 4.05 | % | 4.63 | % | 3.04 | % | ||||||||||||||||||||
Fixed interest rate securities
|
$ | 37,769 | $ | 21,961 | $ | 22,602 | $ | 28,136 | $ | 41,104 | $ | 304,123 | $ | 455,695 | $ | 467,305 | ||||||||||||||||
Average interest rate
|
4.29 | % | 4.09 | % | 3.83 | % | 3.98 | % | 3.73 | % | 2.39 | % | ||||||||||||||||||||
Variable interest rate securities
|
$ | 85 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 85 | $ | 86 | ||||||||||||||||
Average interest rate
|
5.99 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||||||||||||
Other interest-bearing assets
|
$ | 47,675 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 47,675 | $ | 47,675 | ||||||||||||||||
Average interest rate
|
0.31 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||||||||||||
Rate sensitive liabilities:
|
||||||||||||||||||||||||||||||||
Noninterest bearing checking
|
$ | 26,965 | $ | 26,109 | $ | 24,825 | $ | 24,825 | $ | 19,689 | $ | 234,269 | $ | 356,682 | $ | 356,682 | ||||||||||||||||
Average interest rate
|
||||||||||||||||||||||||||||||||
Savings & interest bearing checking
|
$ | 157,501 | $ | 153,365 | $ | 170,925 | $ | 148,737 | $ | 134,570 | $ | 380,535 | $ | 1,145,633 | $ | 1,145,633 | ||||||||||||||||
Average interest rate
|
1.27 | % | 1.28 | % | 1.19 | % | 1.31 | % | 1.41 | % | 1.43 | % | ||||||||||||||||||||
Time deposits
|
$ | 526,447 | $ | 250,434 | $ | 38,223 | $ | 52,533 | $ | 42,146 | $ | 598 | $ | 910,381 | $ | 925,619 | ||||||||||||||||
Average interest rate
|
1.41 | % | 1.93 | % | 2.66 | % | 2.46 | % | 2.91 | % | 2.91 | % | ||||||||||||||||||||
Fixed interest rate borrowings
|
$ | 10,000 | $ | 0 | $ | 15,000 | $ | 0 | $ | 0 | $ | 40 | $ | 25,040 | $ | 26,079 | ||||||||||||||||
Average interest rate
|
0.50 | % | 0.00 | % | 3.21 | % | 0.00 | % | 0.00 | % | 6.15 | % | ||||||||||||||||||||
Variable interest rate borrowings
|
$ | 26,398 | $ | 26,398 | $ | 26,398 | $ | 26,398 | $ | 26,398 | $ | 30,928 | $ | 162,918 | $ | 163,230 | ||||||||||||||||
Average interest rate
|
0.13 | % | 0.10 | % | 0.10 | % | 0.10 | % | 0.10 | % | 0.57 | % |
CONSOLIDATED
BALANCE SHEETS (in thousands except share data)
|
||||||||
December 31
|
2011
|
2010
|
||||||
ASSETS
|
||||||||
Cash and due from banks
|
$ | 56,909 | $ | 42,513 | ||||
Short-term investments
|
47,675 | 17,628 | ||||||
Total cash and cash equivalents
|
104,584 | 60,141 | ||||||
Securities available for sale (carried at fair value)
|
467,391 | 442,620 | ||||||
Real estate mortgage loans held for sale
|
2,953 | 5,606 | ||||||
Loans, net of allowance for loan losses of $53,400 and $45,007
|
2,180,309 | 2,044,952 | ||||||
Land, premises and equipment, net
|
34,736 | 30,405 | ||||||
Bank owned life insurance
|
39,959 | 38,826 | ||||||
Accrued income receivable
|
9,612 | 9,074 | ||||||
Goodwill
|
4,970 | 4,970 | ||||||
Other intangible assets
|
99 | 153 | ||||||
Other assets
|
45,075 | 45,179 | ||||||
Total assets
|
$ | 2,889,688 | $ | 2,681,926 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
LIABILITIES
|
||||||||
Noninterest bearing deposits
|
$ | 356,682 | $ | 305,107 | ||||
Interest bearing deposits
|
2,056,014 | 1,895,918 | ||||||
Total deposits
|
2,412,696 | 2,201,025 | ||||||
Short-term borrowings
|
||||||||
Federal funds purchased
|
10,000 | 0 | ||||||
Securities sold under agreements to repurchase
|
131,990 | 142,015 | ||||||
U.S. Treasury demand notes
|
0 | 2,037 | ||||||
Other short-term borrowings
|
0 | 30,000 | ||||||
Total short-term borrowings
|
141,990 | 174,052 | ||||||
Accrued expenses payable
|
13,550 | 11,476 | ||||||
Other liabilities
|
2,195 | 2,318 | ||||||
Long-term borrowings
|
15,040 | 15,041 | ||||||
Subordinated debentures
|
30,928 | 30,928 | ||||||
Total liabilities
|
2,616,399 | 2,434,840 | ||||||
Commitments, off-balance sheet risks and contingencies (Notes 1 and 19)
|
||||||||
STOCKHOLDERS' EQUITY
|
||||||||
Common stock: 90,000,000 shares authorized, no par value
|
||||||||
16,217,019 shares issued and 16,145,772 outstanding as of December 31, 2011
|
||||||||
16,169,119 shares issued and 16,078,420 outstanding as of December 31, 2010
|
87,380 | 85,766 | ||||||
Retained earnings
|
181,903 | 161,299 | ||||||
Accumulated other comprehensive income
|
5,139 | 1,350 | ||||||
Treasury stock, at cost (2011 - 71,247 shares, 2010 - 90,699 shares)
|
(1,222 | ) | (1,418 | ) | ||||
Total stockholders' equity
|
273,200 | 246,997 | ||||||
Noncontrolling interest
|
89 | 89 | ||||||
Total equity
|
273,289 | 247,086 | ||||||
Total liabilities and stockholders' equity
|
$ | 2,889,688 | $ | 2,681,926 |
CONSOLIDATED STATEMENTS OF INCOME (in thousands except share and per share data)
|
||||||||||||
Years Ended December 31
|
2011
|
2010
|
2009
|
|||||||||
NET INTEREST INCOME
|
||||||||||||
Interest and fees on loans
|
||||||||||||
Taxable
|
$ | 104,936 | $ | 104,205 | $ | 96,151 | ||||||
Tax exempt
|
471 | 86 | 148 | |||||||||
Interest and dividends on securities
|
||||||||||||
Taxable
|
13,575 | 16,406 | 17,562 | |||||||||
Tax exempt
|
2,756 | 2,708 | 2,421 | |||||||||
Interest on short-term investments
|
154 | 120 | 61 | |||||||||
Total interest income
|
121,892 | 123,525 | 116,343 | |||||||||
Interest on deposits
|
27,735 | 28,007 | 32,247 | |||||||||
Interest on borrowings
|
||||||||||||
Short-term
|
612 | 727 | 1,089 | |||||||||
Long-term
|
1,465 | 2,138 | 2,726 | |||||||||
Total interest expense
|
29,812 | 30,872 | 36,062 | |||||||||
NET INTEREST INCOME
|
92,080 | 92,653 | 80,281 | |||||||||
Provision for loan losses
|
13,800 | 23,947 | 21,202 | |||||||||
NET INTEREST INCOME AFTER PROVISION FOR
|
||||||||||||
LOAN LOSSES
|
78,280 | 68,706 | 59,079 | |||||||||
NONINTEREST INCOME
|
||||||||||||
Wealth advisory fees
|
3,462 | 3,247 | 2,980 | |||||||||
Investment brokerage fees
|
2,560 | 2,266 | 1,676 | |||||||||
Service charges on deposit accounts
|
7,950 | 8,436 | 8,245 | |||||||||
Loan, insurance and service fees
|
4,849 | 4,300 | 3,540 | |||||||||
Merchant card fee income
|
1,020 | 1,081 | 2,464 | |||||||||
Other income
|
1,817 | 2,175 | 1,867 | |||||||||
Mortgage banking income
|
1,000 | 1,587 | 1,695 | |||||||||
Net securities gains (losses)
|
(167 | ) | 4 | 2 | ||||||||
Other-than-temporary impairment loss on available for sale securities:
|
||||||||||||
Total impairment losses recognized on securities
|
(286 | ) | (1,716 | ) | (309 | ) | ||||||
Loss recognized in other comprehensive income
|
0 | 129 | 84 | |||||||||
Net impairment loss recognized in earnings
|
(286 | ) | (1,587 | ) | (225 | ) | ||||||
Total noninterest income
|
22,205 | 21,509 | 22,244 | |||||||||
NONINTEREST EXPENSE
|
||||||||||||
Salaries and employee benefits
|
32,807 | 30,375 | 27,765 | |||||||||
Net occupancy expense
|
3,106 | 2,899 | 3,206 | |||||||||
Equipment costs
|
2,204 | 2,090 | 2,147 | |||||||||
Data processing fees and supplies
|
3,655 | 3,931 | 3,944 | |||||||||
Credit card interchange
|
2 | 158 | 1,448 | |||||||||
Other expense
|
13,331 | 13,982 | 14,965 | |||||||||
Total noninterest expense
|
55,105 | 53,435 | 53,475 | |||||||||
INCOME BEFORE INCOME TAX EXPENSE
|
45,380 | 36,780 | 27,848 | |||||||||
Income tax expense
|
14,718 | 12,237 | 8,869 | |||||||||
NET INCOME
|
$ | 30,662 | $ | 24,543 | $ | 18,979 | ||||||
Dividends and accretion of discount on preferred stock
|
0 | 3,187 | 2,694 | |||||||||
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS
|
$ | 30,662 | $ | 21,356 | $ | 16,285 | ||||||
BASIC WEIGHTED AVERAGE COMMON SHARES
|
16,204,952 | 16,120,606 | 12,851,845 | |||||||||
BASIC EARNINGS PER COMMON SHARE
|
$ | 1.89 | $ | 1.32 | $ | 1.27 | ||||||
DILUTED WEIGHTED AVERAGE COMMON SHARES
|
16,324,644 | 16,213,747 | 12,952,444 | |||||||||
DILUTED EARNINGS PER COMMON SHARE
|
$ | 1.88 | $ | 1.32 | $ | 1.26 |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (in thousands except share and per share data)
|
Accumulated
|
||||||||||||||||||||||||
Other
|
Total
|
|||||||||||||||||||||||
Preferred
|
Common
|
Retained
|
Comprehensive
|
Treasury
|
Stockholders'
|
|||||||||||||||||||
Stock
|
Stock
|
Earnings
|
Income (Loss)
|
Stock
|
Equity
|
|||||||||||||||||||
Balance at January 1, 2009
|
$ | 0 | $ | 22,085 | $ | 141,371 | $ | (12,024 | ) | $ | (1,552 | ) | $ | 149,880 | ||||||||||
Comprehensive income:
|
||||||||||||||||||||||||
Net income
|
18,979 | 18,979 | ||||||||||||||||||||||
Other comprehensive income (loss), net of tax
|
6,031 | 6,031 | ||||||||||||||||||||||
Comprehensive income
|
25,010 | |||||||||||||||||||||||
Common stock cash dividends declared, $.62 per share
|
(7,698 | ) | (7,698 | ) | ||||||||||||||||||||
Treasury shares purchased under deferred directors' plan
|
||||||||||||||||||||||||
(11,425 shares)
|
231 | (231 | ) | 0 | ||||||||||||||||||||
Treasury stock sold and distributed under deferred directors'
|
||||||||||||||||||||||||
plan (16,547 shares)
|
(243 | ) | 243 | 0 | ||||||||||||||||||||
Stock activity under stock compensation plans (79,950 shares)
|
796 | 796 | ||||||||||||||||||||||
Stock compensation expense
|
411 | 411 | ||||||||||||||||||||||
Issuance of 3,625,431 shares of common stock
|
57,922 | 57,922 | ||||||||||||||||||||||
Issuance of 56,044 shares of preferred stock at discount
|
53,759 | 53,759 | ||||||||||||||||||||||
Issuance of warrant to purchase 396,538 shares of common stock (1)
|
2,285 | 2,285 | ||||||||||||||||||||||
Accretion of preferred stock discount
|
336 | (336 | ) | 0 | ||||||||||||||||||||
Preferred stock dividend paid and/or accrued
|
(2,371 | ) | (2,371 | ) | ||||||||||||||||||||
Balance at December 31, 2009
|
54,095 | 83,487 | 149,945 | (5,993 | ) | (1,540 | ) | 279,994 | ||||||||||||||||
Comprehensive income:
|
||||||||||||||||||||||||
Net income
|
24,543 | 24,543 | ||||||||||||||||||||||
Other comprehensive income (loss), net of tax
|
7,343 | 7,343 | ||||||||||||||||||||||
Comprehensive income
|
31,886 | |||||||||||||||||||||||
Common stock cash dividends declared, $.62 per share
|
(9,989 | ) | (9,989 | ) | ||||||||||||||||||||
Treasury shares purchased under deferred directors' plan
|
||||||||||||||||||||||||
(11,081 shares)
|
212 | (212 | ) | 0 | ||||||||||||||||||||
Treasury stock sold and distributed under deferred directors'
|
||||||||||||||||||||||||
plan (21,491 shares)
|
(334 | ) | 334 | 0 | ||||||||||||||||||||
Stock activity under stock compensation plans (125,457 shares)
|
1,662 | 1,662 | ||||||||||||||||||||||
Stock compensation expense
|
739 | 739 | ||||||||||||||||||||||
Redemption of 56,044 shares of preferred stock
|
(56,044 | ) | (56,044 | ) | ||||||||||||||||||||
Accretion of preferred stock discount
|
1,949 | (1,949 | ) | 0 | ||||||||||||||||||||
Preferred stock dividend paid and/or accrued
|
(1,251 | ) | (1,251 | ) | ||||||||||||||||||||
Balance at December 31, 2010
|
0 | 85,766 | 161,299 | 1,350 | (1,418 | ) | 246,997 | |||||||||||||||||
(1) Subsequent to issue, the share count was adjusted to 198,269 shares due to a Qualified Equity Offering (Note 24).
|
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (in thousands except share and per share data) (continued)
|
Accumulated
|
||||||||||||||||||||||||
Other
|
Total
|
|||||||||||||||||||||||
Preferred
|
Common
|
Retained
|
Comprehensive
|
Treasury
|
Stockholders'
|
|||||||||||||||||||
Stock
|
Stock
|
Earnings
|
Income (Loss)
|
Stock
|
Equity
|
|||||||||||||||||||
Balance at December 31, 2010
|
0 | 85,766 | 161,299 | 1,350 | (1,418 | ) | 246,997 | |||||||||||||||||
Comprehensive income:
|
||||||||||||||||||||||||
Net income
|
30,662 | 30,662 | ||||||||||||||||||||||
Other comprehensive income (loss), net of tax
|
3,789 | 3,789 | ||||||||||||||||||||||
Comprehensive income
|
34,451 | |||||||||||||||||||||||
Common stock cash dividends declared, $.62 per share
|
(10,058 | ) | (10,058 | ) | ||||||||||||||||||||
Treasury shares purchased under deferred directors' plan
|
||||||||||||||||||||||||
(10,648 shares)
|
244 | (244 | ) | 0 | ||||||||||||||||||||
Treasury stock sold and distributed under deferred directors'
|
||||||||||||||||||||||||
plan (30,100 shares)
|
(440 | ) | 440 | 0 | ||||||||||||||||||||
Stock activity under stock compensation plans (47,900 shares)
|
468 | 468 | ||||||||||||||||||||||
Stock compensation expense
|
1,342 | 1,342 | ||||||||||||||||||||||
Balance at December 31, 2011
|
$ | 0 | $ | 87,380 | $ | 181,903 | $ | 5,139 | $ | (1,222 | ) | $ | 273,200 |
CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)
|
||||||||||||
Years Ended December 31
|
2011
|
2010
|
2009
|
|||||||||
Cash flows from operating activities:
|
||||||||||||
Net income
|
$ | 30,662 | $ | 24,543 | $ | 18,979 | ||||||
Adjustments to reconcile net income to net cash from operating activities:
|
||||||||||||
Depreciation
|
2,279 | 2,194 | 2,252 | |||||||||
Provision for loan losses
|
13,800 | 23,947 | 21,202 | |||||||||
Loss on sale and write down of other real estate owned
|
387 | 129 | 154 | |||||||||
Amortization of intangible assets
|
54 | 54 | 206 | |||||||||
Amortization of loan servicing rights
|
594 | 620 | 587 | |||||||||
Net change in loan servicing rights valuation allowance
|
86 | (24 | ) | 0 | ||||||||
Loans originated for sale
|
(78,425 | ) | (91,638 | ) | (121,900 | ) | ||||||
Net gain on sales of loans
|
(1,712 | ) | (2,023 | ) | (2,085 | ) | ||||||
Proceeds from sale of loans
|
82,161 | 88,818 | 121,969 | |||||||||
Net (gain) loss on sale of premises and equipment
|
17 | 4 | (7 | ) | ||||||||
Net (gain) loss on securities available for sale
|
167 | (4 | ) | (2 | ) | |||||||
Impairment on available for sale securities
|
286 | 1,587 | 225 | |||||||||
Net securities amortization (accretion)
|
3,601 | 1,741 | 546 | |||||||||
Stock compensation expense
|
1,342 | 739 | 411 | |||||||||
Earnings on life insurance
|
(970 | ) | (1,085 | ) | (207 | ) | ||||||
Death benefit received on life insurance
|
0 | 0 | (319 | ) | ||||||||
Tax benefit of stock option exercises
|
(138 | ) | (371 | ) | (191 | ) | ||||||
Net change:
|
||||||||||||
Accrued income receivable
|
(538 | ) | (474 | ) | (1 | ) | ||||||
Accrued expenses payable
|
1,558 | (1,891 | ) | (2,882 | ) | |||||||
Other assets
|
(3,990 | ) | (2,811 | ) | (14,358 | ) | ||||||
Other liabilities
|
121 | 1,644 | (317 | ) | ||||||||
Total adjustments
|
20,680 | 21,156 | 5,283 | |||||||||
Net cash from operating activities
|
51,342 | 45,699 | 24,262 | |||||||||
Cash flows from investing activities:
|
||||||||||||
Proceeds from sale of securities available for sale
|
73,318 | 0 | 0 | |||||||||
Proceeds from maturities, calls and principal paydowns of
|
||||||||||||
securities available for sale
|
84,051 | 90,458 | 114,976 | |||||||||
Purchases of securities available for sale
|
(179,296 | ) | (114,063 | ) | (129,154 | ) | ||||||
Purchase of life insurance
|
(134 | ) | (1,102 | ) | (2,147 | ) | ||||||
Net increase in total loans
|
(150,055 | ) | (94,702 | ) | (187,129 | ) | ||||||
Proceeds from sales of land, premises and equipment
|
33 | 0 | 16 | |||||||||
Purchases of land, premises and equipment
|
(6,660 | ) | (3,027 | ) | (1,318 | ) | ||||||
Proceeds from sales of other real estate owned
|
2,070 | 2,789 | 391 | |||||||||
Net cash from investing activities
|
(176,673 | ) | (119,647 | ) | (204,365 | ) | ||||||
Cash flows from financing activities:
|
||||||||||||
Net increase in total deposits
|
211,671 | 349,900 | (34,174 | ) | ||||||||
Net increase (decrease) in short-term borrowings
|
(32,062 | ) | (179,999 | ) | 151,442 | |||||||
Proceeds from long-term borrowings
|
0 | 0 | 40,000 | |||||||||
Payments on long-term borrowings
|
(1 | ) | (25,001 | ) | (90,001 | ) | ||||||
Common dividends paid
|
(10,045 | ) | (9,989 | ) | (7,698 | ) | ||||||
Preferred dividends paid
|
(13 | ) | (1,601 | ) | (2,021 | ) | ||||||
Proceeds from issuance of preferred stock and warrant
|
0 | 0 | 56,044 | |||||||||
Redemption of preferred stock
|
0 | (56,044 | ) | 0 | ||||||||
Proceeds from issuance of common stock
|
0 | 0 | 57,922 | |||||||||
Proceeds from stock option exercise
|
468 | 1,052 | 796 | |||||||||
Purchase of treasury stock
|
(244 | ) | (212 | ) | (231 | ) | ||||||
Net cash from financing activities
|
169,774 | 78,106 | 172,079 | |||||||||
Net change in cash and cash equivalents
|
44,443 | 4,158 | (8,024 | ) | ||||||||
Cash and cash equivalents at beginning of the year
|
60,141 | 55,983 | 64,007 | |||||||||
Cash and cash equivalents at end of the
|
$ | 104,584 | $ | 60,141 | $ | 55,983 | ||||||
Cash paid during the year for:
|
||||||||||||
Interest
|
$ | 29,215 | $ | 32,494 | $ | 39,274 | ||||||
Income taxes
|
21,529 | 18,587 | 11,700 | |||||||||
Supplemental non-cash disclosures:
|
||||||||||||
Loans transferred to other real estate
|
898 | 5,740 | 464 |
Years Ended December 31,
|
||||||||||||
2011
|
2010
|
2009
|
||||||||||
(in thousands)
|
||||||||||||
Unrealized holding gain on securities available for sale
|
||||||||||||
arising during the period
|
$ | 6,445 | $ | 10,728 | $ | 9,366 | ||||||
Reclassification adjustment for (gains) losses included in net income
|
167 | (4 | ) | (2 | ) | |||||||
Reclassification adjustment for other-than-temporary impairment
|
286 | 1,587 | 225 | |||||||||
Net securities gain activity during the period
|
6,898 | 12,311 | 9,589 | |||||||||
Tax effect
|
(2,593 | ) | (5,031 | ) | (3,799 | ) | ||||||
Net of tax amount
|
4,305 | 7,280 | 5,790 | |||||||||
Net gain (loss) on defined benefit pension plans
|
(1,043 | ) | (36 | ) | 248 | |||||||
Amortization of net actuarial loss
|
175 | 142 | 158 | |||||||||
Net gain/(loss) activity during the period
|
(868 | ) | 106 | 406 | ||||||||
Tax effect
|
352 | (43 | ) | (165 | ) | |||||||
Net of tax amount
|
(516 | ) | 63 | 241 | ||||||||
Other comprehensive income, net of tax
|
$ | 3,789 | $ | 7,343 | $ | 6,031 |
Current
|
||||||||||||
Balance
|
Period
|
Balance
|
||||||||||
at 12/31/10
|
Change
|
at 12/31/11
|
||||||||||
(in thousands)
|
||||||||||||
Unrealized gain on securities available for sale
|
||||||||||||
without other-than-temporary impairment
|
$ | 4,285 | $ | 3,403 | $ | 7,688 | ||||||
Unrealized loss on securities available for sale
|
||||||||||||
with other-than-temporary impairment
|
(1,425 | ) | 902 | (523 | ) | |||||||
Total unrealized gain on securities available for sale
|
2,860 | 4,305 | 7,165 | |||||||||
Unrealized loss on defined benefit pension plans
|
(1,510 | ) | (516 | ) | (2,026 | ) | ||||||
Total
|
$ | 1,350 | $ | 3,789 | $ | 5,139 |
Current
|
||||||||||||
Balance
|
Period
|
Balance
|
||||||||||
at 12/31/09
|
Change
|
at 12/31/10
|
||||||||||
(in thousands)
|
||||||||||||
Unrealized gain (loss) on securities available for sale
|
||||||||||||
without other-than-temporary impairment
|
$ | (2,814 | ) | $ | 7,099 | $ | 4,285 | |||||
Unrealized loss on securities available for sale
|
||||||||||||
with other-than-temporary impairment
|
(1,606 | ) | 181 | (1,425 | ) | |||||||
Total unrealized gain (loss) on securities available for sale
|
(4,420 | ) | 7,280 | 2,860 | ||||||||
Unrealized loss on defined benefit pension plans
|
(1,573 | ) | 63 | (1,510 | ) | |||||||
Total
|
$ | (5,993 | ) | $ | 7,343 | $ | 1,350 |
Gross
|
Gross
|
|||||||||||||||
Fair
|
Unrealized
|
Unrealized
|
Amortized
|
|||||||||||||
Value
|
Gain
|
Losses
|
Cost
|
|||||||||||||
2011
|
(in thousands) | |||||||||||||||
U.S. Treasury securities
|
$ | 1,055 | $ | 52 | $ | 0 | $ | 1,003 | ||||||||
U.S. government sponsored agencies
|
5,277 | 244 | 0 | 5,033 | ||||||||||||
Agency residential mortgage-backed securities
|
350,102 | 8,989 | (923 | ) | 342,036 | |||||||||||
Non-agency residential mortgage-backed securities
|
32,207 | 191 | (2,225 | ) | 34,241 | |||||||||||
State and municipal securities
|
78,750 | 5,292 | (9 | ) | 73,467 | |||||||||||
Total
|
$ | 467,391 | $ | 14,768 | $ | (3,157 | ) | $ | 455,780 | |||||||
2010
|
||||||||||||||||
U.S. Treasury securities
|
$ | 1,036 | $ | 32 | $ | 0 | $ | 1,004 | ||||||||
Agency residential mortgage-backed securities
|
308,851 | 10,422 | (837 | ) | 299,266 | |||||||||||
Non-agency residential mortgage-backed securities
|
62,773 | 331 | (6,136 | ) | 68,578 | |||||||||||
State and municipal securities
|
69,960 | 1,538 | (637 | ) | 69,059 | |||||||||||
Total
|
$ | 442,620 | $ | 12,323 | $ | (7,610 | ) | $ | 437,907 |
Amortized
|
Fair
|
|||||||
Cost
|
Value
|
|||||||
(in thousands)
|
||||||||
Due in one year or less
|
$ | 696 | $ | 700 | ||||
Due after one year through five years
|
20,984 | 22,205 | ||||||
Due after five years through ten years
|
33,780 | 36,424 | ||||||
Due after ten years
|
24,043 | 25,753 | ||||||
79,503 | 85,082 | |||||||
Mortgage-backed securities
|
376,277 | 382,309 | ||||||
Total debt securities
|
$ | 455,780 | $ | 467,391 |
2011
|
2010
|
2009
|
||||||||||
(in thousands)
|
||||||||||||
Sales of securities available for sale
|
||||||||||||
Proceeds
|
$ | 73,318 | $ | 0 | $ | 0 | ||||||
Gross gains
|
3,997 | 0 | 0 | |||||||||
Gross losses
|
4,171 | 0 | 0 |
Less than 12 months
|
12 months or more
|
Total
|
||||||||||||||||||||||
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
|||||||||||||||||||
Value
|
Losses
|
Value
|
Losses
|
Value
|
Losses
|
|||||||||||||||||||
2011
|
(in thousands) | |||||||||||||||||||||||
Agency residential mortgage-backed
|
||||||||||||||||||||||||
securities
|
$ | 74,463 | $ | (860 | ) | $ | 4,813 | $ | (63 | ) | $ | 79,276 | $ | (923 | ) | |||||||||
Non-agency residential mortgage-backed
|
||||||||||||||||||||||||
securities
|
3,379 | (4 | ) | 23,885 | (2,221 | ) | 27,264 | (2,225 | ) | |||||||||||||||
State and municipal securities
|
341 | (2 | ) | 1,003 | (7 | ) | 1,344 | (9 | ) | |||||||||||||||
Total temporarily impaired
|
$ | 78,183 | $ | (866 | ) | $ | 29,701 | $ | (2,291 | ) | $ | 107,884 | $ | (3,157 | ) | |||||||||
2010
|
||||||||||||||||||||||||
Agency residential mortgage-backed
|
||||||||||||||||||||||||
securities
|
$ | 55,193 | $ | (821 | ) | $ | 4,170 | $ | (16 | ) | $ | 59,363 | $ | (837 | ) | |||||||||
Non-agency residential mortgage-backed
|
||||||||||||||||||||||||
securities
|
1,607 | (2 | ) | 50,786 | (6,134 | ) | 52,393 | (6,136 | ) | |||||||||||||||
State and municipal securities
|
15,811 | (577 | ) | 422 | (60 | ) | 16,233 | (637 | ) | |||||||||||||||
Total temporarily impaired
|
$ | 72,611 | $ | (1,400 | ) | $ | 55,378 | $ | (6,210 | ) | $ | 127,989 | $ | (7,610 | ) |
Less than
|
12 months
|
||||
12 months
|
or more
|
Total
|
|||
2011
|
|||||
Agency residential mortgage-backed securities
|
21
|
1
|
22
|
||
Non-agency residential mortgage-backed securities
|
2
|
9
|
11
|
||
State and municipal securities
|
3
|
2
|
5
|
||
Total temporarily impaired
|
26
|
12
|
38
|
||
Less than
|
12 months
|
||||
12 months
|
or more
|
Total
|
|||
2010
|
|||||
Agency residential mortgage-backed securities
|
13
|
1
|
14
|
||
Non-agency residential mortgage-backed securities
|
1
|
18
|
19
|
||
State and municipal securities
|
35
|
1
|
36
|
||
Total temporarily impaired
|
49
|
20
|
69
|
2011
|
2010
|
|||||||
(in thousands)
|
||||||||
Balance January 1,
|
$ | 1,812 | $ | 225 | ||||
Additions related to other-than-temporary impairment losses
|
||||||||
not previously recognized
|
42 | 505 | ||||||
Additional increases to the amount of credit loss for which
|
||||||||
other-than-temporary impairment was previously recognized
|
244 | 1,082 | ||||||
Reductions for previous credit losses realized on
|
||||||||
securities sold during the year
|
(1,739 | ) | 0 | |||||
Balance December 31,
|
$ | 359 | $ | 1,812 |
12/31/2011
|
1-Month
|
3-Month
|
6-Month
|
||||||||||||||||||||||||||||||||||||||||
Other Than
|
December 31, 2011 |
Lowest
|
Constant
|
Constant
|
Constant
|
||||||||||||||||||||||||||||||||||||||
Temporary
|
Par
|
Amortized
|
Fair
|
Unrealized
|
Credit
|
Default
|
Default
|
Default
|
Credit
|
||||||||||||||||||||||||||||||||||
Description
|
CUSIP
|
Impairment
|
Value
|
Cost
|
Value
|
Gain/(Loss)
|
Rating
|
Rate
|
Rate
|
Rate
|
Support
|
||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||
CWHL 2006-18 2A7
|
12543WAJ7
|
$ | 0 | $ | 2,815 | $ | 2,761 | $ | 2,450 | $ | (311 | ) | C | 12.89 | 8.16 | 4.06 | 2.89 | ||||||||||||||||||||||||||
CWALT 2005-46CB A1
|
12667G6U2 | 42 | 3,530 | 3,323 | 2,747 | (576 | ) |
CC
|
5.42 | 3.95 | 3.16 | 3.01 | |||||||||||||||||||||||||||||||
CWALT 2005-J8 1A3
|
12667GJ20
|
0 | 5,043 | 4,835 | 4,560 | (275 | ) |
CC
|
7.90 | 8.60 | 5.04 | 6.20 | |||||||||||||||||||||||||||||||
CHASE 2005-S3 A4
|
16162WNE5
|
0 | 333 | 331 | 330 | (1 | ) | B1 | 0.00 | 0.00 | 2.43 | 4.02 | |||||||||||||||||||||||||||||||
CHASE 2006-S3 1A5
|
16162XAE7
|
0 | 1,281 | 1,279 | 1,199 | (80 | ) | C | 0.84 | 1.20 | 2.73 | 2.20 | |||||||||||||||||||||||||||||||
CMSI 2007-61A5
|
173103AE2
|
0 | 2,523 | 2,521 | 2,473 | (48 | ) | B1 | 5.29 | 3.04 | 2.69 | 6.68 | |||||||||||||||||||||||||||||||
GSR 2006-10F 1A1
|
36266WAC6
|
0 | 3,626 | 3,374 | 3,164 | (210 | ) | C | 0.00 | 0.00 | 1.13 | 2.17 | |||||||||||||||||||||||||||||||
MALT 2004-6 7 A1
|
576434SK1
|
0 | 3,072 | 3,052 | 3,048 | (4 | ) | B1 | 0.00 | 0.00 | 0.00 | 11.30 | |||||||||||||||||||||||||||||||
MANA 2007-F1 1A1
|
59023YAA2
|
0 | 2,168 | 2,126 | 1,745 | (381 | ) | D | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||||||||||||||||||
RFMSI 2006-S5 A14
|
74957EAP2
|
317 | 2,707 | 2,332 | 2,029 | (303 | ) | D | 6.03 | 4.98 | 5.45 | 0.00 | |||||||||||||||||||||||||||||||
$ | 359 | $ | 27,098 | $ | 25,934 | $ | 23,745 | $ | (2,189 | ) |
2011
|
2010
|
|||||||
(in thousands) | ||||||||
Commercial and industrial loans:
|
||||||||
Working capital lines of credit loans
|
$ | 373,768 | $ | 281,546 | ||||
Non-working capital loans
|
377,388 | 384,138 | ||||||
Total commercial and industrial loans
|
751,156 | 665,684 | ||||||
Commercial real estate and multi-family residential loans:
|
||||||||
Construction and land development loans
|
82,284 | 106,980 | ||||||
Owner occupied loans
|
346,669 | 329,760 | ||||||
Nonowner occupied loans
|
385,090 | 355,393 | ||||||
Multifamily loans
|
38,477 | 24,158 | ||||||
Total commercial real estate and multi-family residential loans
|
852,520 | 816,291 | ||||||
Agri-business and agricultural loans:
|
||||||||
Loans secured by farmland
|
118,224 | 111,961 | ||||||
Loans for agricultural production
|
119,705 | 117,518 | ||||||
Total agri-business and agricultural loans
|
237,929 | 229,479 | ||||||
Other commercial loans
|
58,278 | 38,778 | ||||||
Total commercial loans
|
1,899,883 | 1,750,232 | ||||||
Consumer 1-4 family mortgage loans:
|
||||||||
Closed end first mortgage loans
|
106,999 | 103,118 | ||||||
Open end and junior lien loans
|
175,694 | 182,325 | ||||||
Residential construction and land development loans
|
5,462 | 4,140 | ||||||
Total consumer 1-4 family mortgage loans
|
288,155 | 289,583 | ||||||
Other consumer loans
|
45,999 | 51,123 | ||||||
Total consumer loans
|
334,154 | 340,706 | ||||||
Subtotal
|
2,234,037 | 2,090,938 | ||||||
Less: Allowance for loan losses
|
(53,400 | ) | (45,007 | ) | ||||
Net deferred loan fees
|
(328 | ) | (979 | ) | ||||
Loans, net
|
$ | 2,180,309 | $ | 2,044,952 |
Commercial
|
||||||||||||||||||||||||||||||||
Real Estate
|
Consumer
|
|||||||||||||||||||||||||||||||
Commercial
|
and Multifamily
|
Agri-business
|
Other
|
1-4 Family
|
Other
|
|||||||||||||||||||||||||||
and Industrial
|
Residential
|
and Agricultural
|
Commercial
|
Mortgage
|
Consumer
|
Unallocated
|
Total
|
|||||||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||||||||||
Balance January 1
|
$ | 21,479 | $ | 15,893 | $ | 1,318 | $ | 270 | $ | 1,694 | $ | 682 | $ | 3,671 | $ | 45,007 | ||||||||||||||||
Provision for loan losses
|
3,112 | 9,748 | (520 | ) | (205 | ) | 1,632 | 350 | (317 | ) | 13,800 | |||||||||||||||||||||
Loans charged-off
|
(2,587 | ) | (2,514 | ) | (103 | ) | 0 | (1,050 | ) | (575 | ) | 0 | (6,829 | ) | ||||||||||||||||||
Recoveries
|
826 | 362 | 0 | 0 | 46 | 188 | 0 | 1,422 | ||||||||||||||||||||||||
Net loans charged-off
|
(1,761 | ) | (2,152 | ) | (103 | ) | 0 | (1,004 | ) | (387 | ) | 0 | (5,407 | ) | ||||||||||||||||||
Balance December 31
|
$ | 22,830 | $ | 23,489 | $ | 695 | $ | 65 | $ | 2,322 | $ | 645 | $ | 3,354 | $ | 53,400 | ||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||
Ending allowance balance attributable to loans:
|
||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 9,443 | $ | 8,382 | $ | 213 | $ | 0 | $ | 288 | $ | 0 | $ | 0 | $ | 18,326 | ||||||||||||||||
Collectively evaluated for impairment
|
13,387 | 15,107 | 482 | 65 | 2,034 | 645 | 3,354 | 35,074 | ||||||||||||||||||||||||
Total ending allowance balance
|
$ | 22,830 | $ | 23,489 | $ | 695 | $ | 65 | $ | 2,322 | $ | 645 | $ | 3,354 | $ | 53,400 | ||||||||||||||||
Loans:
|
||||||||||||||||||||||||||||||||
Loans individually evaluated for impairment
|
$ | 24,204 | $ | 35,794 | $ | 853 | $ | 0 | $ | 2,665 | $ | 0 | $ | 0 | $ | 63,516 | ||||||||||||||||
Loans collectively evaluated for impairment
|
727,160 | 815,883 | 237,150 | 58,249 | 285,791 | 45,960 | 0 | 2,170,193 | ||||||||||||||||||||||||
Total ending loans balance
|
$ | 751,364 | $ | 851,677 | $ | 238,003 | $ | 58,249 | $ | 288,456 | $ | 45,960 | $ | 0 | $ | 2,233,709 |
Commercial
|
||||||||||||||||||||||||||||||||
Real Estate
|
Consumer
|
|||||||||||||||||||||||||||||||
Commercial
|
and Multifamily
|
Agri-business
|
Other
|
1-4 Family
|
Other
|
|||||||||||||||||||||||||||
and Industrial
|
Residential
|
and Agricultural
|
Commercial
|
Mortgage
|
Consumer
|
Unallocated
|
Total
|
|||||||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||
Ending allowance balance attributable to loans:
|
||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 6,911 | $ | 4,663 | $ | 301 | $ | 190 | $ | 76 | $ | 0 | $ | 0 | $ | 12,141 | ||||||||||||||||
Collectively evaluated for impairment
|
14,568 | 11,230 | 1,017 | 80 | 1,618 | 682 | 3,671 | 32,866 | ||||||||||||||||||||||||
Total ending allowance balance
|
$ | 21,479 | $ | 15,893 | $ | 1,318 | $ | 270 | $ | 1,694 | $ | 682 | $ | 3,671 | $ | 45,007 | ||||||||||||||||
Loans:
|
||||||||||||||||||||||||||||||||
Loans individually evaluated for impairment
|
$ | 20,988 | $ | 23,358 | $ | 1,259 | $ | 197 | $ | 2,204 | $ | 0 | $ | 0 | $ | 48,006 | ||||||||||||||||
Loans collectively evaluated for impairment
|
644,551 | 791,715 | 228,305 | 38,542 | 287,729 | 51,111 | 0 | 2,041,953 | ||||||||||||||||||||||||
Total ending loans balance
|
$ | 665,539 | $ | 815,073 | $ | 229,564 | $ | 38,739 | $ | 289,933 | $ | 51,111 | $ | 0 | $ | 2,089,959 |
2010
|
2009
|
|||||||
(in thousands)
|
||||||||
Balance January 1,
|
$ | 32,073 | $ | 18,860 | ||||
Provision for loan losses
|
23,947 | 21,202 | ||||||
Loans charged-off
|
(11,742 | ) | (8,511 | ) | ||||
Recoveries
|
729 | 522 | ||||||
Net loans charged-off
|
(11,013 | ) | (7,989 | ) | ||||
Balance December 31,
|
$ | 45,007 | $ | 32,073 |
Cash Basis
|
||||||||||||||||||||||||
Unpaid
|
Allowance for
|
Average
|
Interest
|
Interest
|
||||||||||||||||||||
Principal
|
Recorded
|
Loan Losses
|
Recorded
|
Income
|
Income
|
|||||||||||||||||||
Balance
|
Investment
|
Allocated
|
Investment
|
Recognized
|
Recognized
|
|||||||||||||||||||
(in thousands)
|
||||||||||||||||||||||||
With no related allowance recorded:
|
||||||||||||||||||||||||
Commercial and industrial loans:
|
||||||||||||||||||||||||
Non-working capital loans
|
$ | 116 | $ | 116 | $ | 0 | $ | 30 | $ | 0 | $ | 0 | ||||||||||||
Commercial real estate and multi-family residential loans:
|
||||||||||||||||||||||||
Nonowner occupied loans
|
0 | 0 | 0 | 425 | 0 | 0 | ||||||||||||||||||
With an allowance recorded:
|
||||||||||||||||||||||||
Commercial and industrial loans:
|
||||||||||||||||||||||||
Working capital lines of credit loans
|
7,831 | 5,969 | 3,206 | 5,649 | 23 | 25 | ||||||||||||||||||
Non-working capital loans
|
20,867 | 18,119 | 6,237 | 17,202 | 616 | 625 | ||||||||||||||||||
Commercial real estate and multi-family residential loans:
|
||||||||||||||||||||||||
Construction and land development loans
|
816 | 429 | 125 | 1,319 | 0 | 0 | ||||||||||||||||||
Owner occupied loans
|
5,874 | 5,082 | 1,566 | 3,082 | 41 | 45 | ||||||||||||||||||
Nonowner occupied loans
|
30,769 | 30,283 | 6,691 | 24,108 | 246 | 252 | ||||||||||||||||||
Multifamily loans
|
0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Agri-business and agricultural loans:
|
||||||||||||||||||||||||
Loans secured by farmland
|
1,126 | 628 | 195 | 610 | 0 | 0 | ||||||||||||||||||
Loans for agricultural production
|
225 | 225 | 18 | 410 | 0 | 0 | ||||||||||||||||||
Other commercial loans
|
0 | 0 | 0 | 129 | 0 | 0 | ||||||||||||||||||
Consumer 1-4 family mortgage loans:
|
||||||||||||||||||||||||
Closed end first mortgage loans
|
2,461 | 2,256 | 285 | 1,872 | 44 | 48 | ||||||||||||||||||
Open end and junior lien loans
|
409 | 409 | 3 | 118 | 0 | 0 | ||||||||||||||||||
Residential construction loans
|
0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Other consumer loans
|
0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Total
|
$ | 70,494 | $ | 63,516 | $ | 18,326 | $ | 54,954 | $ | 970 | $ | 995 |
Unpaid
|
Allowance for
|
|||||||||||
Principal
|
Recorded
|
Loan Losses
|
||||||||||
Balance
|
Investment
|
Allocated
|
||||||||||
(in thousands)
|
||||||||||||
With no related allowance recorded:
|
||||||||||||
Commercial real estate and multi-family residential loans:
|
||||||||||||
Nonowner occupied loans
|
$ | 870 | $ | 869 | $ | 0 | ||||||
With an allowance recorded:
|
||||||||||||
Commercial and industrial loans:
|
||||||||||||
Working capital lines of credit loans
|
5,651 | 5,652 | 2,944 | |||||||||
Non-working capital loans
|
15,335 | 15,336 | 3,967 | |||||||||
Commercial real estate and multi-family residential loans:
|
||||||||||||
Construction and land development loans
|
1,402 | 1,401 | 195 | |||||||||
Owner occupied loans
|
2,908 | 2,909 | 948 | |||||||||
Nonowner occupied loans
|
18,186 | 18,179 | 3,520 | |||||||||
Multifamily loans
|
0 | 0 | 0 | |||||||||
Agri-business and agricultural loans:
|
||||||||||||
Loans secured by farmland
|
405 | 406 | 83 | |||||||||
Loans for agricultural production
|
853 | 853 | 218 | |||||||||
Other commercial loans
|
197 | 197 | 190 | |||||||||
Consumer 1-4 family mortgage loans:
|
||||||||||||
Closed end first mortgage loans
|
2,067 | 2,063 | 75 | |||||||||
Open end and junior lien loans
|
141 | 141 | 1 | |||||||||
Residential construction loans
|
0 | 0 | 0 | |||||||||
Other consumer loans
|
0 | 0 | 0 | |||||||||
Total
|
$ | 48,015 | $ | 48,006 | $ | 12,141 |
2010
|
2009
|
|||||||
(in thousands) | ||||||||
Average of impaired loans during the year
|
$ | 39,685 | $ | 23,576 | ||||
Interest income recognized during impairment
|
450 | 35 | ||||||
Cash-basis interest income recognized
|
465 | 30 |
2011
|
2010
|
|||||||
(in thousands) | ||||||||
Nonaccrual loans
|
$ | 39,425 | $ | 36,591 | ||||
Interest not recorded on nonaccrual loans
|
1,815 | 1,710 | ||||||
Loans past due 30-89 days and still accruing
|
4,230 | 3,212 | ||||||
Loans past due 90 days and still accruing
|
52 | 330 | ||||||
Nonperforming loans
|
39,477 | 36,921 |
Loans Past Due
|
||||||||||||||||
Over 90 Days
|
||||||||||||||||
Nonaccrual
|
Still Accruing
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
(in thousands) | ||||||||||||||||
Commercial and industrial loans:
|
||||||||||||||||
Non-impaired watch list loans
|
$ | 102 | $ | 372 | $ | 0 | $ | 0 | ||||||||
Working capital lines of credit loans
|
4,707 | 5,405 | 0 | 0 | ||||||||||||
Non-working capital loans
|
5,367 | 4,786 | 0 | 0 | ||||||||||||
Commercial real estate and multi-family residential loans:
|
||||||||||||||||
Non-impaired watch list loans
|
36 | 26 | 0 | 0 | ||||||||||||
Construction and land development loans
|
429 | 1,400 | 0 | 0 | ||||||||||||
Owner occupied loans
|
4,335 | 2,935 | 0 | 0 | ||||||||||||
Nonowner occupied loans
|
21,971 | 19,049 | 0 | 0 | ||||||||||||
Multifamily loans
|
0 | 0 | 0 | 0 | ||||||||||||
Agri-business and agricultural loans:
|
||||||||||||||||
Non-impaired watch list loans
|
0 | 0 | 0 | 0 | ||||||||||||
Loans secured by farmland
|
628 | 406 | 0 | 0 | ||||||||||||
Loans for agricultural production
|
225 | 878 | 0 | 0 | ||||||||||||
Other commercial loans
|
0 | 197 | 0 | 0 | ||||||||||||
Consumer 1-4 family mortgage loans:
|
||||||||||||||||
Closed end first mortgage loans
|
1,193 | 842 | 52 | 318 | ||||||||||||
Open end and junior lien loans
|
452 | 267 | 0 | 0 | ||||||||||||
Residential construction loans
|
0 | 0 | 0 | 0 | ||||||||||||
Other consumer loans
|
7 | 20 | 0 | 12 | ||||||||||||
Total
|
$ | 39,452 | $ | 36,583 | $ | 52 | $ | 330 |
30-89 |
Greater than
|
|||||||||||||||||||
Days
|
90 Days
|
Total
|
Loans Not
|
|||||||||||||||||
Past Due
|
Past Due
|
Past Due
|
Past Due
|
Total
|
||||||||||||||||
(in thousands)
|
||||||||||||||||||||
Commercial and industrial loans:
|
||||||||||||||||||||
Non-impaired watch list loans
|
$ | 1,000 | $ | 102 | $ | 1,102 | $ | 40,719 | $ | 41,821 | ||||||||||
Working capital lines of credit loans
|
51 | 4,707 | 4,758 | 353,266 | 358,024 | |||||||||||||||
Non-working capital loans
|
21 | 5,367 | 5,388 | 346,131 | 351,519 | |||||||||||||||
Commercial real estate and multi-family residential loans:
|
||||||||||||||||||||
Non-impaired watch list loans
|
0 | 36 | 36 | 58,593 | 58,629 | |||||||||||||||
Construction and land development loans
|
0 | 429 | 429 | 64,808 | 65,237 | |||||||||||||||
Owner occupied loans
|
104 | 4,335 | 4,439 | 318,872 | 323,311 | |||||||||||||||
Nonowner occupied loans
|
0 | 21,971 | 21,971 | 345,402 | 367,373 | |||||||||||||||
Multifamily loans
|
0 | 0 | 0 | 37,127 | 37,127 | |||||||||||||||
Agri-business and agricultural loans:
|
||||||||||||||||||||
Non-impaired watch list loans
|
0 | 0 | 0 | 857 | 857 | |||||||||||||||
Loans secured by farmland
|
0 | 628 | 628 | 116,762 | 117,390 | |||||||||||||||
Loans for agricultural production
|
0 | 225 | 225 | 119,531 | 119,756 | |||||||||||||||
Other commercial loans
|
0 | 0 | 0 | 58,249 | 58,249 | |||||||||||||||
Consumer 1-4 family mortgage loans:
|
||||||||||||||||||||
Closed end first mortgage loans
|
2,569 | 1,245 | 3,814 | 102,970 | 106,784 | |||||||||||||||
Open end and junior lien loans
|
254 | 452 | 706 | 175,517 | 176,223 | |||||||||||||||
Residential construction loans
|
34 | 0 | 34 | 5,415 | 5,449 | |||||||||||||||
Other consumer loans
|
192 | 7 | 199 | 45,761 | 45,960 | |||||||||||||||
Total
|
$ | 4,225 | $ | 39,504 | $ | 43,729 | $ | 2,189,980 | $ | 2,233,709 |
30-89 |
Greater than
|
|||||||||||||||||||
Days
|
90 Days
|
Total
|
Loans Not
|
|||||||||||||||||
Past Due
|
Past Due
|
Past Due
|
Past Due
|
Total
|
||||||||||||||||
Commercial and industrial loans:
|
(in thousands)
|
|||||||||||||||||||
Non-impaired watch list loans
|
$ | 0 | $ | 372 | $ | 372 | $ | 54,977 | $ | 55,349 | ||||||||||
Working capital lines of credit loans
|
0 | 5,405 | 5,405 | 261,556 | 266,961 | |||||||||||||||
Non-working capital loans
|
462 | 4,786 | 5,248 | 337,981 | 343,229 | |||||||||||||||
Commercial real estate and multi-family residential loans:
|
||||||||||||||||||||
Non-impaired watch list loans
|
0 | 26 | 26 | 60,473 | 60,499 | |||||||||||||||
Construction and land development loans
|
0 | 1,400 | 1,400 | 88,089 | 89,489 | |||||||||||||||
Owner occupied loans
|
27 | 2,935 | 2,962 | 304,702 | 307,664 | |||||||||||||||
Nonowner occupied loans
|
0 | 19,049 | 19,049 | 314,245 | 333,294 | |||||||||||||||
Multifamily loans
|
0 | 0 | 0 | 24,127 | 24,127 | |||||||||||||||
Agri-business and agricultural loans:
|
||||||||||||||||||||
Non-impaired watch list loans
|
0 | 0 | 0 | 4,131 | 4,131 | |||||||||||||||
Loans secured by farmland
|
0 | 406 | 406 | 109,465 | 109,871 | |||||||||||||||
Loans for agricultural production
|
0 | 878 | 878 | 114,684 | 115,562 | |||||||||||||||
Other commercial loans
|
0 | 197 | 197 | 38,542 | 38,739 | |||||||||||||||
Consumer 1-4 family mortgage loans:
|
||||||||||||||||||||
Closed end first mortgage loans
|
2,333 | 1,160 | 3,493 | 99,405 | 102,898 | |||||||||||||||
Open end and junior lien loans
|
237 | 267 | 504 | 182,395 | 182,899 | |||||||||||||||
Residential construction loans
|
0 | 0 | 0 | 4,136 | 4,136 | |||||||||||||||
Other consumer loans
|
145 | 32 | 177 | 50,934 | 51,111 | |||||||||||||||
Total
|
$ | 3,204 | $ | 36,913 | $ | 40,117 | $ | 2,049,842 | $ | 2,089,959 |
2011
|
2010
|
2009
|
||||||||||
(in thousands)
|
||||||||||||
Accruing troubled debt restructured loans
|
$ | 22,177 | $ | 8,547 | $ | 0 | ||||||
Nonaccrual troubled debt restructured loans
|
34,273 | 6,091 | 6,521 | |||||||||
Total troubled debt restructured loans
|
$ | 56,450 | $ | 14,638 | $ | 6,521 |
All Modifications
|
||||||||||||
Pre-Modification
|
Post-Modification
|
|||||||||||
Outstanding
|
Outstanding
|
|||||||||||
Number of
|
Recorded
|
Recorded
|
||||||||||
Loans
|
Investment
|
Investment
|
||||||||||
(in thousands) | ||||||||||||
Troubled Debt Restructurings
|
||||||||||||
Commercial and industrial loans:
|
||||||||||||
Working capital lines of credit loans
|
3 | $ | 639 | $ | 639 | |||||||
Non-working capital loans
|
6 | 6,187 | 6,261 | |||||||||
Commercial real estate and multi-family residential loans:
|
||||||||||||
Construction and land development loans
|
||||||||||||
Owner occupied loans
|
8 | 6,648 | 6,651 | |||||||||
Nonowner occupied loans
|
8 | 23,767 | 23,767 | |||||||||
Agri-business and agricultural loans:
|
||||||||||||
Loans secured by farmland
|
2 | 683 | 683 | |||||||||
Consumer 1-4 family loans:
|
||||||||||||
Closed end first mortgage loans
|
6 | 942 | 849 | |||||||||
Total
|
33 | $ | 38,866 | $ | 38,850 |
Interest Rate Reductions
|
Principal and Interest Forgiveness
|
Modified Repayment Terms
|
||||||||||||||||||||||||||||||||||||||
Interest at
|
Interest at
|
Principal at
|
Principal at
|
Interest at
|
Interest at
|
Extension
|
||||||||||||||||||||||||||||||||||
Number of
|
Pre-Modification
|
Post-Modification
|
Number of
|
Pre-Modification
|
Post-Modification
|
Pre-Modification
|
Post-Modification
|
Number of
|
Period or
|
|||||||||||||||||||||||||||||||
Loans
|
Rate
|
Rate
|
Loans
|
Rate
|
Rate
|
Rate
|
Rate
|
Loans
|
Range
|
|||||||||||||||||||||||||||||||
(in thousands) |
(in thousands)
|
(in months)
|
||||||||||||||||||||||||||||||||||||||
Troubled Debt Restructurings
|
||||||||||||||||||||||||||||||||||||||||
Commercial and industrial loans:
|
||||||||||||||||||||||||||||||||||||||||
Working capital lines of credit loans
|
0 | $ | 0 | $ | 0 | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | 3 | 11-60 | ||||||||||||||||||||||||
Non-working capital loans
|
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4 | 12-36 | ||||||||||||||||||||||||||||||
Commercial real estate and multi-
family residential loans:
|
||||||||||||||||||||||||||||||||||||||||
Owner occupied loans
|
0 | 0 | 0 | 1 | 2,125 | 2,125 | 641 | 429 | 7 | 20-70 | ||||||||||||||||||||||||||||||
Nonowner occupied loans
|
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7 | 6-36 | ||||||||||||||||||||||||||||||
Agri-business and agricultural loans:
|
||||||||||||||||||||||||||||||||||||||||
Loans secured by farmland
|
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | 22 | ||||||||||||||||||||||||||||||
Consumer 1-4 family loans:
|
||||||||||||||||||||||||||||||||||||||||
Closed end first mortgage loans
|
5 | 402 | 324 | 1 | 550 | 450 | 66 | 57 | 0 | 0 | ||||||||||||||||||||||||||||||
Total
|
5 | $ | 402 | $ | 324 | 2 | $ | 2,675 | $ | 2,575 | $ | 707 | $ | 486 | 22 | 6-70 |
Number of
|
Recorded
|
|||||||
Loans
|
Investment
|
|||||||
(in thousands)
|
||||||||
Troubled Debt Restructurings that Subsequently Defaulted
|
||||||||
Consumer 1-4 family loans:
|
||||||||
Closed end first mortgage loans
|
4 | $ | 455 | |||||
Total
|
4 | $ | 455 |
Special
|
Not
|
|||||||||||||||||||
Pass
|
Mention
|
Substandard
|
Doubtful
|
Rated
|
||||||||||||||||
(in thousands)
|
||||||||||||||||||||
Commercial and industrial loans:
|
||||||||||||||||||||
Non-impaired watch list loans
|
$ | 0 | $ | 11,270 | $ | 30,551 | $ | 0 | $ | 0 | ||||||||||
Working capital lines of credit loans
|
352,055 | 0 | 5,969 | 0 | 0 | |||||||||||||||
Non-working capital loans
|
331,881 | 1,792 | 16,443 | 0 | 1,403 | |||||||||||||||
Commercial real estate and multi-family residential loans:
|
||||||||||||||||||||
Non-impaired watch list loans
|
0 | 15,912 | 42,717 | 0 | 0 | |||||||||||||||
Construction and land development loans
|
64,808 | 0 | 429 | 0 | 0 | |||||||||||||||
Owner occupied loans
|
318,191 | 0 | 5,082 | 0 | 38 | |||||||||||||||
Nonowner occupied loans
|
337,090 | 3,419 | 26,864 | 0 | 0 | |||||||||||||||
Multifamily loans
|
37,127 | 0 | 0 | 0 | 0 | |||||||||||||||
Agri-business and agricultural loans:
|
||||||||||||||||||||
Non-impaired watch list loans
|
0 | 70 | 787 | 0 | 0 | |||||||||||||||
Loans secured by farmland
|
116,742 | 0 | 628 | 0 | 20 | |||||||||||||||
Loans for agricultural production
|
119,531 | 0 | 225 | 0 | 0 | |||||||||||||||
Other commercial loans
|
58,061 | 66 | 120 | 0 | 2 | |||||||||||||||
Consumer 1-4 family mortgage loans:
|
||||||||||||||||||||
Closed end first mortgage loans
|
17,307 | 53 | 974 | 0 | 88,450 | |||||||||||||||
Open end and junior lien loans
|
11,569 | 319 | 0 | 0 | 164,335 | |||||||||||||||
Residential construction loans
|
0 | 0 | 0 | 0 | 5,449 | |||||||||||||||
Other consumer loans
|
7,416 | 375 | 497 | 0 | 37,672 | |||||||||||||||
Total
|
$ | 1,771,778 | $ | 33,276 | $ | 131,286 | $ | 0 | $ | 297,369 |
Special
|
Not
|
|||||||||||||||||||
Pass
|
Mention
|
Substandard
|
Doubtful
|
Rated
|
||||||||||||||||
Commercial and industrial loans:
|
(in thousands) | |||||||||||||||||||
Non-impaired watch list loans
|
$ | 0 | $ | 22,282 | $ | 33,067 | $ | 0 | $ | 0 | ||||||||||
Working capital lines of credit loans
|
261,210 | 0 | 5,751 | 0 | 0 | |||||||||||||||
Non-working capital loans
|
325,976 | 0 | 15,327 | 0 | 1,926 | |||||||||||||||
Commercial real estate and multi-family residential loans:
|
||||||||||||||||||||
Non-impaired watch list loans
|
0 | 23,722 | 36,777 | 0 | 0 | |||||||||||||||
Construction and land development loans
|
88,088 | 0 | 1,401 | 0 | 0 | |||||||||||||||
Owner occupied loans
|
304,661 | 0 | 2,911 | 0 | 92 | |||||||||||||||
Nonowner occupied loans
|
314,247 | 0 | 19,047 | 0 | 0 | |||||||||||||||
Multifamily loans
|
24,127 | 0 | 0 | 0 | 0 | |||||||||||||||
Agri-business and agricultural loans:
|
||||||||||||||||||||
Non-impaired watch list loans
|
0 | 2,008 | 2,123 | 0 | 0 | |||||||||||||||
Loans secured by farmland
|
109,444 | 0 | 405 | 0 | 22 | |||||||||||||||
Loans for agricultural production
|
114,495 | 0 | 853 | 0 | 214 | |||||||||||||||
Other commercial loans
|
38,400 | 0 | 339 | 0 | 0 | |||||||||||||||
Consumer 1-4 family mortgage loans:
|
||||||||||||||||||||
Closed end first mortgage loans
|
17,398 | 427 | 1,386 | 0 | 83,687 | |||||||||||||||
Open end and junior lien loans
|
13,380 | 0 | 178 | 0 | 169,341 | |||||||||||||||
Residential construction loans
|
0 | 0 | 0 | 0 | 4,136 | |||||||||||||||
Other consumer loans
|
9,394 | 0 | 497 | 0 | 41,220 | |||||||||||||||
Total
|
$ | 1,620,820 | $ | 48,439 | $ | 120,062 | $ | 0 | $ | 300,638 |
Level 1
|
|
Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.
|
Level 2
|
|
Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.
|
Level 3
|
Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.
|
December 31, 2011
|
||||||||||||||||
Fair Value Measurements Using
|
Assets
|
|||||||||||||||
Level 1
|
Level 2
|
Level 3
|
at Fair Value
|
|||||||||||||
Assets
|
(in thousands)
|
|||||||||||||||
U.S. Treasury securities
|
$ | 1,055 | $ | 0 | $ | 0 | $ | 1,055 | ||||||||
U.S. Government sponsored agencies
|
0 | 5,277 | 0 | 5,277 | ||||||||||||
Mortgage-backed securities
|
0 | 350,102 | 0 | 350,102 | ||||||||||||
Non-agency residential mortgage-backed securities
|
0 | 32,207 | 0 | 32,207 | ||||||||||||
State and municipal securities
|
0 | 78,064 | 686 | 78,750 | ||||||||||||
Total Securities
|
1,055 | 465,650 | 686 | 467,391 | ||||||||||||
Mortgage banking derivative
|
0 | 406 | 0 | 406 | ||||||||||||
Total assets
|
$ | 1,055 | $ | 466,056 | $ | 686 | $ | 467,797 | ||||||||
Liabilities
|
||||||||||||||||
Mortgage banking derivative
|
$ | 0 | $ | 81 | $ | 0 | $ | 81 |
December 31, 2010
|
||||||||||||||||
Fair Value Measurements Using
|
Assets
|
|||||||||||||||
Level 1
|
Level 2
|
Level 3
|
at Fair Value
|
|||||||||||||
Assets
|
(in thousands) | |||||||||||||||
U.S. Treasury securities
|
$ | 1,036 | $ | 0 | $ | 0 | $ | 1,036 | ||||||||
Mortgage-backed securities
|
0 | 308,851 | 0 | 308,851 | ||||||||||||
Non-agency residential mortgage-backed securities
|
0 | 62,773 | 0 | 62,773 | ||||||||||||
State and municipal securities
|
0 | 69,960 | 0 | 69,960 | ||||||||||||
Total Securities
|
1,036 | 441,584 | 0 | 442,620 | ||||||||||||
Mortgage banking derivative
|
0 | 378 | 0 | 378 | ||||||||||||
Total assets
|
$ | 1,036 | $ | 441,962 | $ | 0 | $ | 442,998 | ||||||||
Liabilities
|
||||||||||||||||
Mortgage banking derivative
|
$ | 0 | $ | 21 | $ | 0 | $ | 21 |
State and
|
||||
Municipal
|
||||
Securities
|
||||
2011
|
||||
(in thousands)
|
||||
Balance of recurring Level 3 assets at January 1
|
$ | 0 | ||
Transfers into Level 3
|
686 | |||
Balance of recurring Level 3 assets at December 31
|
$ | 686 |
December 31, 2011
|
||||||||||||||||
Fair Value Measurements Using
|
Assets
|
|||||||||||||||
Assets
|
Level 1
|
Level 2
|
Level 3
|
at Fair Value
|
||||||||||||
(in thousands)
|
||||||||||||||||
Impaired loans:
|
||||||||||||||||
Commercial and industrial loans:
|
||||||||||||||||
Working capital lines of credit loans
|
$ | 0 | $ | 0 | $ | 2,762 | $ | 2,762 | ||||||||
Non-working capital loans
|
0 | 0 | 11,885 | 11,885 | ||||||||||||
Commercial real estate and multi-family residential loans:
|
||||||||||||||||
Construction and land development loans
|
0 | 0 | 303 | 303 | ||||||||||||
Owner occupied loans
|
0 | 0 | 3,515 | 3,515 | ||||||||||||
Nonowner occupied loans
|
0 | 0 | 23,591 | 23,591 | ||||||||||||
Multifamily loans
|
0 | 0 | 0 | 0 | ||||||||||||
Agri-business and agricultural loans:
|
||||||||||||||||
Loans secured by farmland
|
0 | 0 | 433 | 433 | ||||||||||||
Loans for agricultural production
|
0 | 0 | 207 | 207 | ||||||||||||
Other commercial loans
|
0 | 0 | 0 | 0 | ||||||||||||
Consumer 1-4 family mortgage loans:
|
||||||||||||||||
Closed end first mortgage loans
|
0 | 0 | 878 | 878 | ||||||||||||
Open end and junior lien loans
|
0 | 0 | 406 | 406 | ||||||||||||
Residential construction loans
|
0 | 0 | 0 | 0 | ||||||||||||
Other consumer loans
|
0 | 0 | 0 | 0 | ||||||||||||
Total impaired loans
|
$ | 0 | $ | 0 | $ | 43,980 | $ | 43,980 | ||||||||
Mortgage servicing rights
|
0 | 0 | 1,734 | 1,734 | ||||||||||||
Other real estate owned
|
0 | 0 | 730 | 730 | ||||||||||||
Total assets
|
$ | 0 | $ | 0 | $ | 46,444 | $ | 46,444 |
December 31, 2010
|
||||||||||||||||
Fair Value Measurements Using
|
Assets
|
|||||||||||||||
Assets
|
Level 1
|
Level 2
|
Level 3
|
at Fair Value
|
||||||||||||
(in thousands)
|
||||||||||||||||
Impaired loans:
|
||||||||||||||||
Commercial and industrial loans:
|
||||||||||||||||
Working capital lines of credit loans
|
$ | 0 | $ | 0 | $ | 2,708 | $ | 2,708 | ||||||||
Non-working capital loans
|
0 | 0 | 4,990 | 4,990 | ||||||||||||
Commercial real estate and multi-family residential loans:
|
||||||||||||||||
Construction and land development loans
|
0 | 0 | 1,207 | 1,207 | ||||||||||||
Owner occupied loans
|
0 | 0 | 1,960 | 1,960 | ||||||||||||
Nonowner occupied loans
|
0 | 0 | 14,666 | 14,666 | ||||||||||||
Multifamily loans
|
0 | 0 | 0 | 0 | ||||||||||||
Agri-business and agricultural loans:
|
||||||||||||||||
Loans secured by farmland
|
0 | 0 | 322 | 322 | ||||||||||||
Loans for agricultural production
|
0 | 0 | 635 | 635 | ||||||||||||
Other commercial loans
|
0 | 0 | 7 | 7 | ||||||||||||
Consumer 1-4 family mortgage loans:
|
||||||||||||||||
Closed end first mortgage loans
|
0 | 0 | 815 | 815 | ||||||||||||
Open end and junior lien loans
|
0 | 0 | 140 | 140 | ||||||||||||
Residential construction loans
|
0 | 0 | 0 | 0 | ||||||||||||
Other consumer loans
|
0 | 0 | 0 | 0 | ||||||||||||
Total impaired loans
|
$ | 0 | $ | 0 | $ | 27,450 | $ | 27,450 | ||||||||
Mortgage servicing rights
|
0 | 0 | 11 | 11 | ||||||||||||
Total assets
|
$ | 0 | $ | 0 | $ | 27,461 | $ | 27,461 |
2011
|
2010
|
|||||||||||||||
Carrying
|
Estimated
|
Carrying
|
Estimated
|
|||||||||||||
Value
|
Fair Value
|
Value
|
Fair Value
|
|||||||||||||
(in thousands)
|
||||||||||||||||
Financial Assets:
|
||||||||||||||||
Cash and cash equivalents
|
$ | 104,584 | $ | 104,584 | $ | 60,141 | $ | 60,141 | ||||||||
Securities available for sale
|
467,391 | 467,391 | 442,620 | 442,620 | ||||||||||||
Real estate mortgages held for sale
|
2,953 | 2,998 | 5,606 | 5,661 | ||||||||||||
Loans, net
|
2,180,309 | 2,141,459 | 2,044,952 | 2,041,812 | ||||||||||||
Federal Home Loan Bank stock
|
7,313 | N/A | 8,511 | N/A | ||||||||||||
Federal Reserve Bank stock
|
3,420 | N/A | 3,420 | N/A | ||||||||||||
Accrued interest receivable
|
9,604 | 9,604 | 9,064 | 9,064 | ||||||||||||
Financial Liabilities:
|
||||||||||||||||
Certificates of deposit
|
(910,381 | ) | (925,619 | ) | (949,559 | ) | (962,456 | ) | ||||||||
All other deposits
|
(1,502,315 | ) | (1,502,315 | ) | (1,251,466 | ) | (1,251,466 | ) | ||||||||
Securities sold under agreements to repurchase
|
(131,990 | ) | (131,990 | ) | (142,015 | ) | (142,015 | ) | ||||||||
Other short-term borrowings
|
(10,000 | ) | (10,000 | ) | (32,037 | ) | (32,037 | ) | ||||||||
Long-term borrowings
|
(15,040 | ) | (16,079 | ) | (15,041 | ) | (15,991 | ) | ||||||||
Subordinated debentures
|
(30,928 | ) | (31,240 | ) | (30,928 | ) | (31,242 | ) | ||||||||
Standby letters of credit
|
(247 | ) | (247 | ) | (321 | ) | (321 | ) | ||||||||
Accrued interest payable
|
(5,574 | ) | (5,574 | ) | (4,978 | ) | (4,978 | ) |
Loan servicing rights:
|
2011
|
2010
|
2009
|
|||||||||
(in thousands)
|
||||||||||||
Carrying amount at beginning of year
|
$ | 2,104 | $ | 1,966 | $ | 1,657 | ||||||
Originations
|
629 | 758 | 896 | |||||||||
Amortization
|
(594 | ) | (620 | ) | (587 | ) | ||||||
Carrying amount before valuation allowance
|
$ | 2,139 | $ | 2,104 | $ | 1,966 | ||||||
Valuation allowance:
|
2011 | 2010 | 2009 | |||||||||
(in thousands)
|
||||||||||||
Beginning of year
|
$ | 22 | $ | 46 | $ | 46 | ||||||
Provisions/(recoveries)
|
86 | (24 | ) | 0 | ||||||||
End of year
|
108 | 22 | 46 | |||||||||
Carrying amount at end of year
|
$ | 2,031 | $ | 2,082 | $ | 1,920 | ||||||
Fair value at beginning of the year
|
$ | 2,390 | $ | 2,136 | $ | 2,148 | ||||||
Fair value at the end of the year
|
$ | 2,098 | $ | 2,390 | $ | 2,136 |
2011
|
2010
|
|||||||
(in thousands) | ||||||||
Land
|
$ | 12,286 | $ | 10,240 | ||||
Premises
|
28,670 | 27,239 | ||||||
Equipment
|
20,469 | 17,770 | ||||||
Total cost
|
61,425 | 55,249 | ||||||
Less accumulated depreciation
|
26,689 | 24,844 | ||||||
Land, premises and equipment, net
|
$ | 34,736 | $ | 30,405 |
As of December 31, 2011 | As of December 31, 2010 | |||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||
Gross Carrying
|
Accumulated
|
Gross Carrying
|
Accumulated
|
|||||||||||||
Amount
|
Amortization
|
Amount
|
Amortization
|
|||||||||||||
Amortized intangible assets
|
||||||||||||||||
Core deposit
|
$ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||
Trust deposit relationships
|
572 | 473 | 572 | 419 | ||||||||||||
Total
|
$ | 572 | $ | 473 | $ | 572 | $ | 419 |
Amount
|
||||
(in thousands)
|
||||
2012
|
$ | 52 | ||
2013
|
47 |
Amount
|
||||
(in thousands)
|
||||
Maturing in 2012
|
$ | 537,403 | ||
Maturing in 2013
|
239,478 | |||
Maturing in 2014
|
38,223 | |||
Maturing in 2015
|
52,533 | |||
Maturing in 2016
|
42,146 | |||
Thereafter
|
598 | |||
Total time deposits
|
$ | 910,381 |
2011
|
2010
|
2009
|
||||||||||
(in thousands)
|
||||||||||||
Average daily balance during the year
|
$ | 134,814 | $ | 114,578 | $ | 125,195 | ||||||
Average interest rate during the year
|
0.42 | % | 0.44 | % | 0.46 | % | ||||||
Maximum month-end balance during the year
|
$ | 146,281 | $ | 142,015 | $ | 133,072 | ||||||
Weighted average interest rate at year-end
|
0.35 | % | 0.42 | % | 0.42 | % |
2011
|
2010
|
|||||||
(in thousands) | ||||||||
Federal Home Loan Bank of Indianapolis Notes, 3.21%, Due May 5, 2014
|
$ | 15,000 | $ | 15,000 | ||||
Federal Home Loan Bank of Indianapolis Notes, 6.15%, Due January 15, 2018
|
40 | 41 | ||||||
Total
|
$ | 15,040 | $ | 15,041 |
(in thousands)
|
||||
2012
|
$ | 0 | ||
2013
|
0 | |||
2014
|
15,000 | |||
2015
|
0 | |||
2016
|
0 |
2011
|
2010
|
|||||||
(in thousands) | ||||||||
Federal Home Loan Bank of Indianapolis Notes, 0.50%, Due June 28, 2011
|
$ | 0 | $ | 30,000 |
Pension Benefits |
SERP Benefits
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
(in thousands) | (in thousands) | |||||||||||||||
Change in benefit obligation:
|
||||||||||||||||
Beginning benefit obligation
|
$ | 2,430 | $ | 2,292 | $ | 1,130 | $ | 1,258 | ||||||||
Interest cost
|
140 | 142 | 61 | 67 | ||||||||||||
Actuarial (gain)/loss
|
675 | 144 | 140 | (58 | ) | |||||||||||
Benefits paid
|
(240 | ) | (148 | ) | (137 | ) | (137 | ) | ||||||||
Ending benefit obligation
|
3,005 | 2,430 | 1,194 | 1,130 | ||||||||||||
Change in plan assets (primarily equity and fixed
|
||||||||||||||||
income investments and money market funds),
|
||||||||||||||||
at fair value:
|
||||||||||||||||
Beginning plan assets
|
1,848 | 1,798 | 923 | 962 | ||||||||||||
Actual return
|
10 | 198 | 1 | 98 | ||||||||||||
Employer contribution
|
0 | 0 | 90 | 0 | ||||||||||||
Benefits paid
|
(240 | ) | (148 | ) | (137 | ) | (137 | ) | ||||||||
Ending plan assets
|
1,618 | 1,848 | 877 | 923 | ||||||||||||
Funded status at end of year
|
$ | (1,387 | ) | $ | (582 | ) | $ | (317 | ) | $ | (207 | ) |
Pension Benefits | SERP Benefits | |||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
(in thousands) | (in thousands) | |||||||||||||||
Funded status included in other liabilities
|
$ | (1,387 | ) | $ | (582 | ) | $ | (317 | ) | $ | (207 | ) |
Pension Benefits | SERP Benefits | |||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
(in thousands) | (in thousands) | |||||||||||||||
Net actuarial loss
|
$ | 2,547 | $ | 1,830 | $ | 859 | $ | 708 |
Pension Benefits
|
SERP Benefits
|
|||||||||||||||||||||||
Net pension expense
|
2011
|
2010
|
2009
|
2011
|
2010
|
2009
|
||||||||||||||||||
(in thousands)
|
(in thousands)
|
|||||||||||||||||||||||
Service cost
|
$ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||
Interest cost
|
141 | 142 | 136 | 61 | 67 | 67 | ||||||||||||||||||
Expected return on plan assets
|
(158 | ) | (166 | ) | (155 | ) | (80 | ) | (81 | ) | (85 | ) | ||||||||||||
Recognized net actuarial loss
|
106 | 83 | 101 | 69 | 59 | 57 | ||||||||||||||||||
Net pension expense
|
$ | 89 | $ | 59 | $ | 82 | $ | 50 | $ | 45 | $ | 39 |
Net loss/(gain)
|
$ | 823 | $ | 112 | $ | (201 | ) | $ | 220 | $ | (76 | ) | $ | (47 | ) | |||||||||
Amortization of net loss
|
(106 | ) | (83 | ) | (101 | ) | (69 | ) | (59 | ) | (57 | ) | ||||||||||||
Total recognized in other comprehensive
|
||||||||||||||||||||||||
income
|
$ | 717 | $ | 29 | $ | (302 | ) | $ | 151 | $ | (135 | ) | $ | (104 | ) | |||||||||
Total recognized in net pension expense
|
||||||||||||||||||||||||
and other comprehensive income
|
$ | 806 | $ | 88 | $ | (220 | ) | $ | 201 | $ | (90 | ) | $ | (65 | ) |
The following assumptions were used in calculating the net benefit obligation:
|
|||||||||||
Weighted average discount rate
|
4.50%
|
5.50%
|
6.00%
|
4.50%
|
5.50%
|
6.00%
|
|||||
Rate of increase in future compensation
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
|||||
The following assumptions were used in calculating the net pension expense:
|
|||||||||||
Weighted average discount rate
|
5.50%
|
6.00%
|
5.50%
|
5.50%
|
6.00%
|
5.50%
|
|||||
Rate of increase in future compensation
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
|||||
Expected long-term rate of return
|
7.75%
|
8.25%
|
8.25%
|
7.75%
|
8.25%
|
8.25%
|
Percentage of Plan |
Weighted
|
||||||
Target
|
Assets |
Average Expected
|
|||||
Allocation
|
at Year End |
Long-Term Rate
|
|||||
Asset Category
|
2012
|
2011
|
2010
|
of Return
|
|||
Equity securities
|
55-65
|
%
|
64%
|
65%
|
9.65%
|
||
Debt securities
|
35-45
|
%
|
30%
|
34%
|
4.80%
|
||
Other
|
5-10
|
%
|
6%
|
1%
|
0.25%
|
||
Total
|
100%
|
100%
|
7.75%
|
Percentage of Plan |
Weighted
|
||||||
Target
|
Assets |
Average Expected
|
|||||
Allocation
|
at Year End |
Long-Term Rate
|
|||||
Asset Category
|
2012
|
2011
|
2010
|
of Return
|
|||
Equity securities
|
55-65
|
%
|
66%
|
65%
|
9.65%
|
||
Debt securities
|
35-45
|
%
|
27%
|
33%
|
4.79%
|
||
Other
|
5-10
|
%
|
7%
|
2%
|
0.25%
|
||
Total
|
100%
|
100%
|
7.75%
|
Quoted Prices in
|
Significant
|
Significant
|
||||||||||||||
Active Markets for
|
Observable
|
Unobservable
|
||||||||||||||
Identical Assets
|
Inputs
|
Inputs
|
||||||||||||||
Asset Category
|
Total
|
(Level 1)
|
(Level 2 )
|
(Level 3)
|
||||||||||||
(in thousands)
|
||||||||||||||||
Equity securities - US large cap common stocks
|
$ | 403 | $ | 403 | $ | 0 | $ | 0 | ||||||||
Equity securities - US large cap stock mutual funds
|
369 | 369 | 0 | 0 | ||||||||||||
Equity securities - US mid cap stock mutual funds
|
108 | 108 | 0 | 0 | ||||||||||||
Equity securities - US small cap stock mutual funds
|
49 | 49 | 0 | 0 | ||||||||||||
Equity securities - international stock mutual funds
|
88 | 88 | 0 | 0 | ||||||||||||
Equity securities - emerging markets stock mutual funds
|
22 | 22 | 0 | 0 | ||||||||||||
Debt securities - intermediate term bond mutual funds
|
118 | 118 | 0 | 0 | ||||||||||||
Debt securities - short term bond mutual funds
|
169 | 169 | 0 | 0 | ||||||||||||
Debt securities - world bond mutual funds
|
91 | 91 | 0 | 0 | ||||||||||||
Debt securities - commercial
|
112 | 0 | 112 | 0 | ||||||||||||
Cash - money market account
|
84 | 84 | 0 | 0 | ||||||||||||
Total
|
$ | 1,613 | $ | 1,501 | $ | 112 | $ | 0 |
Quoted Prices in
|
Significant
|
Significant
|
||||||||||||||
Active Markets for
|
Observable
|
Unobservable
|
||||||||||||||
Identical Assets
|
Inputs
|
Inputs
|
||||||||||||||
Asset Category
|
Total
|
(Level 1)
|
(Level 2 )
|
(Level 3)
|
||||||||||||
(in thousands)
|
||||||||||||||||
Equity securities - US large cap common stocks
|
$ | 472 | $ | 472 | $ | 0 | $ | 0 | ||||||||
Equity securities - US large cap stock mutual funds
|
403 | 403 | 0 | 0 | ||||||||||||
Equity securities - US mid cap stock mutual funds
|
129 | 129 | 0 | 0 | ||||||||||||
Equity securities - US small cap stock mutual funds
|
62 | 62 | 0 | 0 | ||||||||||||
Equity securities - international stock mutual funds
|
101 | 101 | 0 | 0 | ||||||||||||
Equity securities - emerging markets stock mutual funds
|
28 | 28 | 0 | 0 | ||||||||||||
Debt securities - intermediate term bond mutual funds
|
53 | 53 | 0 | 0 | ||||||||||||
Debt securities - short term bond mutual funds
|
427 | 427 | 0 | 0 | ||||||||||||
Debt securities - world bond mutual funds
|
0 | 0 | 0 | 0 | ||||||||||||
Debt securities - commercial
|
152 | 0 | 152 | 0 | ||||||||||||
Cash - money market account
|
13 | 13 | 0 | 0 | ||||||||||||
Total
|
$ | 1,840 | $ | 1,688 | $ | 152 | $ | 0 |
Quoted Prices in
|
Significant
|
Significant
|
||||||||||||||
Active Markets for
|
Observable
|
Unobservable
|
||||||||||||||
Identical Assets
|
Inputs
|
Inputs
|
||||||||||||||
Asset Category
|
Total
|
(Level 1)
|
(Level 2 )
|
(Level 3)
|
||||||||||||
(in thousands)
|
||||||||||||||||
Equity securities - US large cap common stocks
|
$ | 149 | $ | 149 | $ | 0 | $ | 0 | ||||||||
Equity securities - US large cap stock mutual funds
|
266 | 266 | 0 | 0 | ||||||||||||
Equity securities - US mid cap stock mutual funds
|
74 | 74 | 0 | 0 | ||||||||||||
Equity securities - US small cap stock mutual funds
|
34 | 34 | 0 | 0 | ||||||||||||
Equity securities - international stock mutual funds
|
44 | 44 | 0 | 0 | ||||||||||||
Equity securities - emerging markets stock mutual funds
|
14 | 14 | 0 | 0 | ||||||||||||
Debt securities - intermediate term bond mutual funds
|
25 | 25 | 0 | 0 | ||||||||||||
Debt securities - short term bond mutual funds
|
119 | 119 | 0 | 0 | ||||||||||||
Debt securities - world bond mutual funds
|
32 | 32 | 0 | 0 | ||||||||||||
Debt securities - commercial
|
64 | 0 | 64 | 0 | ||||||||||||
Cash - money market account
|
53 | 53 | 0 | 0 | ||||||||||||
Total
|
$ | 874 | $ | 810 | $ | 64 | $ | 0 |
Quoted Prices in
|
Significant
|
Significant
|
||||||||||||||
Active Markets for
|
Observable
|
Unobservable
|
||||||||||||||
Identical Assets
|
Inputs
|
Inputs
|
||||||||||||||
Asset Category
|
Total
|
(Level 1)
|
(Level 2 )
|
(Level 3)
|
||||||||||||
(in thousands)
|
||||||||||||||||
Equity securities - US large cap common stocks
|
$ | 166 | $ | 166 | $ | 0 | $ | 0 | ||||||||
Equity securities - US large cap stock mutual funds
|
236 | 236 | 0 | 0 | ||||||||||||
Equity securities - US mid cap stock mutual funds
|
80 | 80 | 0 | 0 | ||||||||||||
Equity securities - US small cap stock mutual funds
|
39 | 39 | 0 | 0 | ||||||||||||
Equity securities - international stock mutual funds
|
50 | 50 | 0 | 0 | ||||||||||||
Equity securities - emerging markets stock mutual funds
|
28 | 28 | 0 | 0 | ||||||||||||
Debt securities - intermediate term bond mutual funds
|
25 | 25 | 0 | 0 | ||||||||||||
Debt securities - short term bond mutual funds
|
140 | 140 | 0 | 0 | ||||||||||||
Debt securities - world bond mutual funds
|
0 | 0 | 0 | 0 | ||||||||||||
Debt securities - commercial
|
142 | 0 | 142 | 0 | ||||||||||||
Cash - money market account
|
14 | 14 | 0 | 0 | ||||||||||||
Total
|
$ | 920 | $ | 778 | $ | 142 | $ | 0 |
Pension
|
SERP
|
|||||||
Plan Year
|
Benefits
|
Benefits
|
||||||
(in thousands) | ||||||||
2012
|
$ | 121 | $ | 136 | ||||
2013
|
121 | 133 | ||||||
2014
|
123 | 129 | ||||||
2015
|
133 | 125 | ||||||
2016
|
146 | 120 | ||||||
2017-2020
|
836 | 504 |
2011
|
2010
|
2009
|
||||||||||
(in thousands)
|
||||||||||||
Corporate and business development
|
$ | 1,551 | $ | 1,442 | $ | 1,356 | ||||||
Advertising
|
536 | 446 | 416 | |||||||||
Office supplies
|
681 | 608 | 611 | |||||||||
Telephone and postage
|
1,345 | 1,519 | 1,625 | |||||||||
Regulatory fees and FDIC insurance
|
2,535 | 3,573 | 4,212 | |||||||||
Professional fees
|
2,584 | 2,258 | 2,462 | |||||||||
Amortization of other intangible assets
|
54 | 54 | 206 | |||||||||
Courier and delivery
|
243 | 246 | 202 | |||||||||
Miscellaneous
|
3,802 | 3,836 | 3,875 | |||||||||
Total other expense
|
$ | 13,331 | $ | 13,982 | $ | 14,965 |
2011
|
2010
|
2009
|
||||||||||
(in thousands)
|
||||||||||||
Current federal
|
$ | 15,845 | $ | 16,346 | $ | 12,648 | ||||||
Deferred federal
|
(1,993 | ) | (5,351 | ) | (4,225 | ) | ||||||
Current state
|
1,413 | 1,683 | 953 | |||||||||
Deferred state
|
(677 | ) | (798 | ) | (698 | ) | ||||||
Tax benefit of stock options
|
130 | 357 | 191 | |||||||||
Total income tax expense
|
$ | 14,718 | $ | 12,237 | $ | 8,869 |
2011
|
2010
|
2009
|
||||||||||
(in thousands)
|
||||||||||||
Income taxes at statutory federal rate of 35%
|
$ | 15,883 | $ | 12,873 | $ | 9,747 | ||||||
Increase (decrease) in taxes resulting from:
|
||||||||||||
Tax exempt income
|
(1,376 | ) | (958 | ) | (884 | ) | ||||||
Nondeductible expense
|
213 | 209 | 244 | |||||||||
State income tax, net of federal tax effect
|
490 | 616 | 183 | |||||||||
Net operating loss
|
0 | (30 | ) | (30 | ) | |||||||
Tax credits
|
(153 | ) | (127 | ) | (57 | ) | ||||||
Bank owned life insurance
|
(348 | ) | (408 | ) | (411 | ) | ||||||
Reserve for unrecognized tax benefits
|
22 | 22 | 30 | |||||||||
Other
|
(13 | ) | 40 | 47 | ||||||||
Total income tax expense
|
$ | 14,718 | $ | 12,237 | $ | 8,869 |
2011 | 2010 | |||||||||||||||
Federal
|
State
|
Federal
|
State
|
|||||||||||||
(in thousands) | ||||||||||||||||
Deferred tax assets:
|
||||||||||||||||
Bad debts
|
$ | 18,690 | $ | 3,676 | $ | 15,752 | $ | 3,099 | ||||||||
Pension and deferred compensation liability
|
491 | 97 | 444 | 87 | ||||||||||||
Non-qualified stock options
|
288 | 57 | 176 | 34 | ||||||||||||
Impairment of investment securities
|
125 | 25 | 634 | 125 | ||||||||||||
Nonaccrual loan interest
|
1,264 | 249 | 600 | 118 | ||||||||||||
Long-term incentive plan
|
771 | 151 | 383 | 75 | ||||||||||||
Other
|
232 | 27 | 123 | 6 | ||||||||||||
21,861 | 4,282 | 18,112 | 3,544 | |||||||||||||
Deferred tax liabilities:
|
||||||||||||||||
Accretion
|
122 | 19 | 115 | 19 | ||||||||||||
Depreciation
|
2,809 | 215 | 1,895 | 193 | ||||||||||||
Loan servicing rights
|
825 | 162 | 854 | 168 | ||||||||||||
State taxes
|
1,197 | 0 | 995 | 0 | ||||||||||||
Leases
|
10 | 2 | 31 | 6 | ||||||||||||
Deferred loan fees
|
46 | 9 | 59 | 12 | ||||||||||||
Intangible assets
|
1,462 | 288 | 1,262 | 248 | ||||||||||||
FHLB stock dividends
|
76 | 15 | 118 | 23 | ||||||||||||
REIT spillover dividend
|
1,168 | 0 | 731 | 0 | ||||||||||||
Prepaid expenses
|
266 | 52 | 165 | 32 | ||||||||||||
7,981 | 762 | 6,225 | 701 | |||||||||||||
Valuation allowance
|
0 | 0 | 0 | 0 | ||||||||||||
Net deferred tax asset
|
$ | 13,880 | $ | 3,520 | $ | 11,887 | $ | 2,843 |
2011
|
2010
|
|||||||
(in thousands) | ||||||||
Balance January 1,
|
$ | 112 | $ | 90 | ||||
Additions based on tax positions related to the current year
|
22 | 22 | ||||||
Additions for tax positions of prior years
|
0 | 0 | ||||||
Reductions for tax positions of prior years
|
0 | 0 | ||||||
Reductions due to the statute of limitations
|
0 | 0 | ||||||
Settlements
|
0 | 0 | ||||||
Balance at December 31,
|
$ | 134 | $ | 112 |
2011
|
2010
|
|||||||
(in thousands) | ||||||||
Beginning balance
|
$ | 36,013 | $ | 40,275 | ||||
New loans and advances
|
77,856 | 53,162 | ||||||
Effect of changes in related parties
|
49,315 | 4,261 | ||||||
Repayments
|
(64,331 | ) | (61,685 | ) | ||||
Ending balance
|
$ | 98,853 | $ | 36,013 |
Weighted-
|
||||||||||||||||
Weighted-
|
Average
|
|||||||||||||||
Average
|
Remaining
|
Aggregate
|
||||||||||||||
Exercise
|
Contractual
|
Intrinsic
|
||||||||||||||
Shares
|
Price
|
Term (years)
|
Value
|
|||||||||||||
Outstanding at beginning of the year
|
232,498 | $ | 18.56 | |||||||||||||
Granted
|
0 | 0.00 | ||||||||||||||
Exercised
|
(36,900 | ) | 9.43 | |||||||||||||
Forfeited
|
(3,100 | ) | 19.40 | |||||||||||||
Outstanding at end of the year
|
192,498 | $ | 20.29 | 3.8 | $ | 1,073,630 | ||||||||||
Options exercisable at end of the year
|
128,498 | $ | 18.40 | 2.6 | $ | 959,570 |
Weighted-Average
|
||||||||
Grant-Date
|
||||||||
Nonvested Shares
|
Shares
|
Fair Value
|
||||||
Nonvested at January 1, 2011
|
43,799 | $ | 17.52 | |||||
Granted
|
11,000 | 21.94 | ||||||
Vested
|
(11,000 | ) | 21.94 | |||||
Forfeited
|
(1,000 | ) | 16.93 | |||||
Nonvested at December 31, 2011
|
42,799 | $ | 17.52 |
Weighted-Average
|
||||||||
Grant-Date
|
||||||||
Nonvested Shares
|
Shares
|
Fair Value
|
||||||
Nonvested at January 1, 2011
|
88,780 | $ | 15.22 | |||||
Granted
|
61,080 | 18.72 | ||||||
Vested
|
0 | 0.00 | ||||||
Forfeited
|
0 | 0.00 | ||||||
Nonvested at December 31, 2011
|
149,860 | $ | 16.65 |
Minimum Required to | ||||||||||||||||||||||||
Minimum Required | Be Well Capitalized | |||||||||||||||||||||||
For Capital | Under Prompt Corrective | |||||||||||||||||||||||
Actual | Adequacy Purposes | Action Regulations | ||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||
As of December 31, 2011:
|
||||||||||||||||||||||||
Total Capital (to Risk
|
||||||||||||||||||||||||
Weighted Assets)
|
||||||||||||||||||||||||
Consolidated
|
$ | 322,827 | 13.57 | % | $ | 190,324 | 8.00 | % |
NA
|
NA
|
||||||||||||||
Bank
|
$ | 318,040 | 13.39 | % | $ | 189,980 | 8.00 | % | $ | 237,475 | 10.00 | % | ||||||||||||
Tier I Capital (to Risk
|
||||||||||||||||||||||||
Weighted Assets)
|
||||||||||||||||||||||||
Consolidated
|
$ | 292,787 | 12.31 | % | $ | 95,162 | 4.00 | % |
NA
|
NA
|
||||||||||||||
Bank
|
$ | 288,053 | 12.13 | % | $ | 94,990 | 4.00 | % | $ | 142,485 | 6.00 | % | ||||||||||||
Tier I Capital (to Average Assets)
|
||||||||||||||||||||||||
Consolidated
|
$ | 292,787 | 10.13 | % | $ | 115,655 | 4.00 | % |
NA
|
NA
|
||||||||||||||
Bank
|
$ | 288,053 | 10.02 | % | $ | 115,018 | 4.00 | % | $ | 143,772 | 5.00 | % | ||||||||||||
As of December 31, 2010:
|
||||||||||||||||||||||||
Total Capital (to Risk
|
||||||||||||||||||||||||
Weighted Assets)
|
||||||||||||||||||||||||
Consolidated
|
$ | 298,690 | 13.26 | % | $ | 180,260 | 8.00 | % |
NA
|
NA
|
||||||||||||||
Bank
|
$ | 294,402 | 13.08 | % | $ | 180,016 | 8.00 | % | $ | 225,020 | 10.00 | % | ||||||||||||
Tier I Capital (to Risk
|
||||||||||||||||||||||||
Weighted Assets)
|
||||||||||||||||||||||||
Consolidated
|
$ | 270,315 | 12.00 | % | $ | 90,130 | 4.00 | % |
NA
|
NA
|
||||||||||||||
Bank
|
$ | 266,065 | 11.82 | % | $ | 90,008 | 4.00 | % | $ | 135,012 | 6.00 | % | ||||||||||||
Tier I Capital (to Average Assets)
|
||||||||||||||||||||||||
Consolidated
|
$ | 270,315 | 9.93 | % | $ | 108,905 | 4.00 | % |
NA
|
NA
|
||||||||||||||
Bank
|
$ | 266,065 | 9.81 | % | $ | 108,519 | 4.00 | % | $ | 135,649 | 5.00 | % |
2011 | 2010 | |||||||||||||||
Fixed
|
Variable
|
Fixed
|
Variable
|
|||||||||||||
Rate
|
Rate
|
Rate
|
Rate
|
|||||||||||||
(in thousands) | ||||||||||||||||
Commercial loan lines of credit
|
$ | 44,800 | $ | 651,767 | $ | 49,750 | $ | 725,069 | ||||||||
Commercial letters of credit
|
0 | 984 | 0 | 1,474 | ||||||||||||
Standby letters of credit
|
0 | 39,614 | 23,914 | 16,227 | ||||||||||||
Real estate mortgage loans
|
10,744 | 3,145 | 8,260 | 386 | ||||||||||||
Real estate construction mortgage loans
|
1,040 | 2,809 | 126 | 571 | ||||||||||||
Home equity mortgage open-ended revolving lines
|
0 | 126,982 | 0 | 119,242 | ||||||||||||
Consumer loan open-ended revolving lines
|
31 | 5,086 | 0 | 4,746 | ||||||||||||
Total
|
$ | 56,615 | $ | 830,387 | $ | 82,050 | $ | 867,715 |
2011 | 2010 | |||||||
Fixed
|
Variable
|
Fixed
|
Variable
|
|||||
Rate
|
Rate
|
Rate
|
Rate
|
|||||
Commercial loan
|
1.00-10.00
|
%
|
2.00-7.50
|
%
|
2.60-10.50
|
%
|
1.27-8.85
|
%
|
Real estate mortgage loan
|
3.00-5.50
|
%
|
2.88-5.00
|
%
|
3.63-5.25
|
%
|
5.25-6.00
|
%
|
Consumer loan open-ended revolving line
|
N/A
|
2.09-15.00
|
%
|
N/A
|
2.09-15.00
|
%
|
December 31, | ||||||||
2011
|
2010
|
|||||||
(in thousands) | ||||||||
ASSETS
|
||||||||
Deposits with Lake City Bank
|
$ | 508 | $ | 1,166 | ||||
Deposits with other depository institutions
|
248 | 244 | ||||||
Cash
|
756 | 1,410 | ||||||
Investments in banking subsidiary
|
298,465 | 272,747 | ||||||
Investments in Lakeland Statutory Trust II
|
928 | 928 | ||||||
Other assets
|
4,199 | 2,972 | ||||||
Total assets
|
$ | 304,348 | $ | 278,057 | ||||
LIABILITIES
|
||||||||
Dividends payable and other liabilities
|
$ | 220 | $ | 132 | ||||
Subordinated debt
|
30,928 | 30,928 | ||||||
STOCKHOLDERS' EQUITY
|
273,200 | 246,997 | ||||||
Total liabilities and stockholders' equity
|
$ | 304,348 | $ | 278,057 |
Years Ended December 31, | ||||||||||||
2011
|
2010
|
2009
|
||||||||||
(in thousands)
|
||||||||||||
Dividends from Lake City Bank, Lakeland Statutory Trust II
|
$ | 10,507 | $ | 10,775 | $ | 9,857 | ||||||
Other income
|
76 | 88 | 0 | |||||||||
Equity in undistributed income of subsidiaries
|
21,943 | 15,104 | 10,448 | |||||||||
Interest expense on subordinated debt
|
(1,070 | ) | (1,081 | ) | (1,250 | ) | ||||||
Miscellaneous expense
|
(1,906 | ) | (1,146 | ) | (892 | ) | ||||||
INCOME BEFORE INCOME TAXES
|
29,550 | 23,740 | 18,163 | |||||||||
Income tax benefit
|
1,112 | 803 | 816 | |||||||||
NET INCOME
|
$ | 30,662 | $ | 24,543 | $ | 18,979 | ||||||
COMPREHENSIVE INCOME
|
$ | 34,451 | $ | 31,886 | $ | 25,010 |
Years Ended December 31, | ||||||||||||
2011
|
2010
|
2009
|
||||||||||
(in thousands)
|
||||||||||||
Cash flows from operating activities:
|
||||||||||||
Net income
|
$ | 30,662 | $ | 24,543 | $ | 18,979 | ||||||
Adjustments to net cash from operating activities:
|
||||||||||||
Equity in undistributed income of subsidiaries
|
(21,943 | ) | (15,104 | ) | (10,448 | ) | ||||||
Other changes
|
447 | (1,025 | ) | 410 | ||||||||
Net cash from operating activities
|
9,166 | 8,414 | 8,941 | |||||||||
Cash flows from investing activities
|
0 | 0 | (56,044 | ) | ||||||||
Proceeds from issuance of common stock
|
468 | 1,662 | 58,717 | |||||||||
Repurchase of common stock
|
(244 | ) | (212 | ) | (231 | ) | ||||||
Proceeds from issuance of preferred stock
|
0 | 0 | 56,044 | |||||||||
Repurchase of preferred stock
|
0 | (56,044 | ) | 0 | ||||||||
Dividends paid
|
(10,044 | ) | (11,227 | ) | (10,056 | ) | ||||||
Cash flows from financing activities
|
(9,820 | ) | (65,821 | ) | 104,474 | |||||||
Net increase in cash and cash equivalents
|
(654 | ) | (57,407 | ) | 57,371 | |||||||
Cash and cash equivalents at beginning of the year
|
1,410 | 58,817 | 1,446 | |||||||||
Cash and cash equivalents at end of the year
|
$ | 756 | $ | 1,410 | $ | 58,817 |
2011
|
2010
|
2009
|
||||||||||
Basic earnings per common share:
|
||||||||||||
Net income
|
$ | 30,662,000 | $ | 24,543,000 | $ | 18,979,000 | ||||||
Less: Dividends and accretion of discount on preferred stock
|
0 | 3,187,000 | 2,694,000 | |||||||||
Net income available to common shareholders
|
$ | 30,662,000 | $ | 21,356,000 | $ | 16,285,000 | ||||||
Weighted-average common shares outstanding
|
16,204,952 | 16,120,606 | 12,851,845 | |||||||||
Basic earnings per common share
|
$ | 1.89 | $ | 1.32 | $ | 1.27 | ||||||
Diluted earnings per common share:
|
||||||||||||
Net income
|
$ | 30,662,000 | $ | 24,543,000 | $ | 18,979,000 | ||||||
Less: Dividends and accretion of discount on preferred stock
|
0 | 3,187,000 | 2,694,000 | |||||||||
Net income available to common shareholders
|
$ | 30,662,000 | $ | 21,356,000 | $ | 16,285,000 | ||||||
Weighted-average common shares outstanding for
|
||||||||||||
basic earnings per common share
|
16,204,952 | 16,120,606 | 12,851,845 | |||||||||
Add: Dilutive effect of assumed exercise of Warrant
|
10,370 | 0 | 0 | |||||||||
Add: Dilutive effect of assumed exercises of stock options
|
||||||||||||
and awards
|
109,322 | 93,141 | 100,599 | |||||||||
Average shares and dilutive potential common shares
|
16,324,644 | 16,213,747 | 12,952,444 | |||||||||
Diluted earnings per common share
|
$ | 1.88 | $ | 1.32 | $ | 1.26 |
2011
|
4th
|
3rd
|
2nd
|
1st
|
||||||||||||
Quarter
|
Quarter
|
Quarter
|
Quarter
|
|||||||||||||
Interest income
|
$ | 30,163 | $ | 30,431 | $ | 30,548 | $ | 30,750 | ||||||||
Interest expense
|
7,383 | 7,610 | 7,603 | 7,216 | ||||||||||||
Net interest income
|
$ | 22,780 | $ | 22,821 | $ | 22,945 | $ | 23,534 | ||||||||
Provision for loan losses
|
2,900 | 2,400 | 2,900 | 5,600 | ||||||||||||
Net interest income after provision
|
$ | 19,880 | $ | 20,421 | $ | 20,045 | $ | 17,934 | ||||||||
Noninterest income
|
5,538 | 5,923 | 5,918 | 4,826 | ||||||||||||
Noninterest expense
|
13,485 | 13,479 | 13,973 | 14,168 | ||||||||||||
Income tax expense
|
3,672 | 4,418 | 4,001 | 2,627 | ||||||||||||
Net income
|
$ | 8,261 | $ | 8,447 | $ | 7,989 | $ | 5,965 | ||||||||
Basic earnings per common share
|
$ | 0.51 | $ | 0.52 | $ | 0.49 | $ | 0.37 | ||||||||
Diluted earnings per common share
|
$ | 0.50 | $ | 0.52 | $ | 0.49 | $ | 0.37 | ||||||||
2010
|
4th
|
3rd
|
2nd
|
1st
|
||||||||||||
Quarter
|
Quarter
|
Quarter
|
Quarter
|
|||||||||||||
Interest income
|
$ | 31,333 | $ | 31,124 | $ | 30,812 | $ | 30,256 | ||||||||
Interest expense
|
8,010 | 7,907 | 7,660 | 7,295 | ||||||||||||
Net interest income
|
$ | 23,323 | $ | 23,217 | $ | 23,152 | $ | 22,961 | ||||||||
Provision for loan losses
|
6,521 | 6,150 | 5,750 | 5,526 | ||||||||||||
Net interest income after provision
|
$ | 16,802 | $ | 17,067 | $ | 17,402 | $ | 17,435 | ||||||||
Noninterest income
|
5,091 | 6,212 | 5,359 | 4,847 | ||||||||||||
Noninterest expense
|
13,333 | 13,629 | 13,425 | 13,048 | ||||||||||||
Income tax expense
|
2,778 | 3,129 | 3,117 | 3,213 | ||||||||||||
Net income
|
$ | 5,782 | $ | 6,521 | $ | 6,219 | $ | 6,021 | ||||||||
Basic earnings per common share
|
$ | 0.36 | $ | 0.40 | $ | 0.24 | $ | 0.32 | ||||||||
Diluted earnings per common share
|
$ | 0.36 | $ | 0.40 | $ | 0.24 | $ | 0.32 |
(a)
|
the number of securities to be issued upon the exercise of outstanding options, warrants and rights;
|
(b)
|
the weighted-average exercise price of such outstanding options, warrants and rights;
|
||
(c)
|
other than securities to be issued upon the exercise of such outstanding options, warrants and rights, the
|
||
number of securities remaining available for future issuance under the plans.
|
Number of securities
|
||||||||||||
remaining available
|
||||||||||||
Number of securities to be
|
Weighted-average
|
for future issuance
|
||||||||||
Plan category
|
issued upon exercise of
|
exercise price of
|
under equity
|
|||||||||
outstanding options
|
outstanding options
|
compensation plans
|
||||||||||
Equity compensation plans
|
||||||||||||
approved by security
|
||||||||||||
holders
(1)(2)
|
192,498 | $ | 20.29 | 469,410 | ||||||||
Equity compensation plans
|
||||||||||||
not approved by security
|
||||||||||||
holders
|
0 | $ | 0.00 | 0 | ||||||||
Total
|
192,498 | $ | 20.29 | 469,410 |
Exhibit No.
|
Document
|
Incorporated by reference to
|
3.1
|
Amended and Restated Articles
|
Exhibit 3.1 in the Company’s Form 8-K
|
of Incorporation of Lakeland
|
Filed with the Commission on
|
|
Financial Corporation
|
March 2, 2009
|
|
3.2
|
Amended and Restated
|
Attached hereto
|
Bylaws of Lakeland
|
||
Financial Corporation
|
||
4.1
|
Form of Common Stock Certificate
|
Exhibit 4.1 to the Company’s
|
Form 10-K for the fiscal year ended
|
||
December 31, 2003
|
||
4.2
|
Warrant to Purchase Shares of Common
|
Exhibit 4.2 to the Company’s Form 8-K
|
Stock, dated February 27, 2009
|
filed on March 2, 2009
|
|
4.3
|
Form of Indenture for Trust Preferred
|
Exhibit 4.1 to the Company’s
|
Issuance
|
Form 10-K for the fiscal year ended
|
|
December 31, 2003
|
||
10.1
|
Lakeland Financial
|
Exhibit 4.3 to the Company’s
|
Corporation 2008 Equity
|
Form S-8 filed with the
|
|
Incentive Plan
|
Commission on April 8, 2008
|
|
10.2
|
Lakeland Financial Corporation 401(k)
|
Exhibit 10.1 to the Company’s Form
|
Plan
|
S-8 filed with the Commission on
|
|
October 23, 2000
|
||
10.3
|
Amended and Restated Lakeland
|
Exhibit 10.4 to the Company’s
|
Financial Corporation Director’s Fee
|
Form 10-K for the fiscal year ended
|
|
Deferral Plan
|
December 31, 2008
|
|
10.4
|
Form of Change in Control Agreement
|
Exhibit 10.3 of the Company’s Form
|
entered into with Michael L. Kubacki
|
10-K for the fiscal year ended
|
|
and Charles D. Smith
|
December 31, 2000
|
|
10.5
|
Form of Change in Control Agreement
|
Exhibit 10.5 of the Company’s Form
|
entered into with David M. Findlay and
|
10-K for the fiscal year ended
|
|
Kevin L. Deardorff
|
December 31, 2001
|
|
10.6
|
Form of First Amendment of Change to
|
Exhibit 10.5 to the Company’s
|
Control Agreement entered into with
|
Form 10-K for the fiscal year ended
|
|
Michael L. Kubacki, David M. Findlay,
|
December 31, 2008
|
|
Charles D. Smith and Kevin L. Deardorff
|
||
10.7
|
Second Amendment to Change in Control
|
Exhibit 10.1 to the Company’s Form
|
Agreement entered into with Michael L.
|
8-K filed on December 19, 2011
|
|
Kubacki, David M. Findlay and Kevin
|
||
L. Deardorff
|
10.8
|
Employee Deferred Compensation Plan
|
Exhibit 10.7 to the Company’s
|
and Form of Agreement
|
Form 10-K for the fiscal year ended
|
|
December 31, 2008
|
||
10.9
|
Schedule of Board Fees
|
Attached hereto
|
10.10
|
Form of Option Grant Agreement
|
Exhibit 10.10 to the Company’s Form
|
10-K for the fiscal year ended
|
||
December 31, 2004
|
||
10.11
|
Executive Incentive Bonus Plan
|
Exhibit 10.11 to the Company’s Form
|
10-K for the fiscal year ended
|
||
December 31, 2004
|
||
10.12
|
Amended and Restated Long Term
|
Exhibit 10.1 to the Company’s Form
|
Incentive Plan
|
10-Q for the quarter ended
|
|
September 30, 2009
|
||
10.13
|
Letter Agreement, dated February 27,
|
Exhibit 10.1 to the Company’s Form
|
2009, by and between the Company, and
|
8-K filed on March 2, 2009
|
|
the United States Department of the
|
||
Treasury, which includes the Securities
|
||
Purchase Agreement – Standard Terms
|
||
attached as Exhibit A thereto, with
|
||
respect to the issuance and sale of the
|
||
Series A Preferred Stock and Warrant
|
||
10.14
|
Side Letter, dated February 27, 2009,
|
Exhibit 10.2 to the Company’s Form
|
by and between the Company and the
|
8-K filed on March 2, 2009
|
|
United States Department of the Treasury
|
||
10.15
|
Form of Waiver, executed by each of the
|
Exhibit 10.3 to the Company’s Form
|
Company’s senior executive officers
|
8-K filed on March 2, 2009
|
|
10.16
|
Retirement Transition Agreement, dated
|
Exhibit 10.1 to the Company’s Form
|
July 12, 2011, between Charles D. Smith
|
8-K filed on July 13, 2011
|
|
and the Company
|
||
10.17
|
Form of Omnibus amendment, executed
|
Exhibit 10.4 to the Company’s Form
|
by each of the Company’s senior
|
8-K filed March 2, 2009
|
|
executive officers
|
||
10.18
|
Form of Change of Control Agreement
|
Exhibit 10.1 to the Company’s Form
|
entered into with Eric H. Ottinger
|
8-K filed March 1, 2011
|
|
10.19
|
First Amendment to Change in Control
|
Exhibit 10.2 to the Company’s Form
|
Agreement entered into with Eric H.
|
8-K filed on December 19, 2011
|
|
Ottinger
|
||
10.20
|
Form of Change in Control Agreement
|
Exhibit 10.3 to the Company’s Form
|
entered into with Michael E. Gavin
|
8-K filed on December 19, 2011
|
|
21.0
|
Subsidiaries
|
Attached hereto
|
23.1
|
Consent of Independent Registered
|
Attached hereto
|
Public Accounting Firm
|
||
31.1
|
Certification of Chief Executive Officer
|
Attached hereto
|
Pursuant to Rule 13a-15(e)/15d-15(e) and
|
||
13(a)-15(f)/15d-15(f)
|
||
31.2
|
Certification of Chief Financial Officer
|
Attached hereto
|
Pursuant to Rule 13a-15(e)/15d-15(e) and
|
||
13(a)-15(f)/15d-15(f)
|
||
32.1
|
Certification of Chief Executive Officer
|
Attached hereto
|
Pursuant to 18 U.S.C. Section 1350, as
|
||
adopted Pursuant to Section 906 of the
|
||
Sarbanes-Oxley Act of 2002
|
||
32.2
|
Certification of Chief Financial Officer
|
Attached hereto
|
Pursuant to 18 U.S.C. Section 1350, as
|
||
adopted Pursuant to Section 906 of the
|
||
Sarbanes-Oxley Act of 2002
|
LAKELAND FINANCIAL CORPORATION
|
|
Date: March 5, 2012
|
By /s/ Michael L. Kubacki
|
Michael L. Kubacki, Chairman
|
Name
|
Title
|
Date
|
/s/ Michael L. Kubacki
|
||
Michael L. Kubacki
|
Principal Executive Officer and Director
|
March 5, 2012
|
/s/ David M. Findlay
|
||
David M. Findlay
|
Principal Financial Officer and Director
|
March 5, 2012
|
/s/ Teresa A. Bartman
|
||
Teresa A. Bartman
|
Principal Accounting Officer
|
March 5, 2012
|
/s/ Blake W. Augsburger
|
||
Blake W. Augsburger
|
Director
|
March 5, 2012
|
/s/ Robert E. Bartels, Jr.
|
||
Robert E. Bartels, Jr.
|
Director
|
March 5, 2012
|
/s/ Daniel F. Evans, Jr.
|
||
Daniel F. Evans, Jr.
|
Director
|
March 5, 2012
|
/s/ L. Craig Fulmer
|
||
L. Craig Fulmer
|
Director
|
March 5, 2012
|
/s/ Thomas A. Hiatt
|
||
Thomas A. Hiatt
|
Director
|
March 5, 2012
|
/s/ Charles E. Niemier
|
||
Charles E. Niemier
|
Director
|
March 5, 2012
|
/s/ Emily E. Pichon
|
||
Emily E. Pichon
|
Director
|
March 5, 2012
|
/s/ Steven D. Ross
|
||
Steven D. Ross
|
Director
|
March 5, 2012
|
/s/ Brian J. Smith
|
||
Brian J. Smith
|
Director
|
March 5, 2012
|
/s/ Bradley J. Toothaker
|
||
Bradley J. Toothaker
|
Director
|
March 5, 2012
|
/s/ Ronald D. Truex
|
||
Ronald D. Truex
|
Director
|
March 5, 2012
|
/s/ M. Scott Welch
|
||
M. Scott Welch
|
Director
|
March 5, 2012
|
3.
|
LCB Investments II, Inc., a subsidiary of Lake City Bank incorporated in Nevada to manage a portion of the Bank’s investment portfolio.
|
4.
|
LCB Funding, Inc., a subsidiary of LCB Investments II, Inc. incorporated under the laws of Maryland to operate as a real estate investment trust.
|
|
(i)
|
by reason of being or having been a director, officer or employee of this Corporation or such other corporation or arising out of his or her status as such or
|
|
(ii)
|
by reason of any past or future action taken or not taken in any such capacity, whether or not he or she continues to be such at the time such liability or expense is incurred.
|
Annual Director Retainer:
|
$
|
25,000
|
||||
Annual Audit Committee Chairman Retainer:
|
$
|
35,000
|
||||
Annual Lead Director and Compensation Committee Chairman Retainer:
|
$
|
35,000
|
||||
Annual Governance Committee Chairman Retainer:
|
$
|
30,000
|
||||
Annual Corporate Risk Committee Chairman Retainer
|
$
|
30,000
|
||||
Board Meeting Fee:
|
$
|
1,000
|
per meeting
|
|||
Committee Meeting Fee:
|
$
|
800
|
per meeting
|
|||
Annual stock grant:
|
1,250
|
shares
|
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 purpose 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 that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting, and;
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal controls 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: March 5, 2012
|
/s/ Michael L. Kubacki
|
Michael L. Kubacki
|
|
Chief Financial Officer
|
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 purpose 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 that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting, and;
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal controls 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: March 5, 2012
|
/s/ David M. Findlay
|
David M. Findlay
|
|
Chief Financial Officer
|