ROCKFORD, Ill., Oct. 27, 2009 (GLOBE NEWSWIRE) -- AMCORE Financial, Inc. (Nasdaq:AMFI) today announced financial results for the third quarter 2009.
(Numbers in Thousands, Except Per Share Data)
3rd quarter 2009 2nd quarter 2009 3rd quarter 2008
Net Revenues $34,695 $47,198 $52,507
Net (Loss) ($156,395) ($10,724) ($17,987)
Diluted Shares 22,976 22,768 22,647
Diluted EPS ($6.81) ($0.47) ($0.79)
AMCORE reported a net loss of ($156.4) million for third quarter 2009, compared to a net loss of ($10.7) million in the previous quarter and a net loss of ($18.0) million in the prior-year period. The third quarter loss includes two significant items: first, a $60 million provision for loan losses; and second, a $92 million net tax provision reflecting a $118 million valuation allowance for deferred tax assets recorded for the quarter. The resulting loss per diluted share was ($6.81) for third quarter 2009, which compares to a loss of ($0.47) in the previous quarter and a loss of ($0.79) per diluted share in third quarter 2008. As a result, AMCORE is undercapitalized or significantly undercapitalized under some regulatory capital standards at the consolidated and bank levels; however the bank's Tier 1 capital remains adequately capitalized.
"On a net basis after charge-offs and settlements, delinquencies and non-performing loans have remained about flat with second quarter's level. We aggressively charged-off almost $60 million of non-performing loans, and we have reduced the total loan portfolio almost $900 million during the last seven quarters," said William R. McManaman, Chairman and CEO of AMCORE. "However, the decreased values of collateral supporting our non-performing loans necessitated a large increase in the loan loss provision. Additionally, we took a necessary accounting action to establish a deferred tax valuation allowance reflecting the uncertainty surrounding the realization of those tax benefits. That charge alone increased the net loss per share $5.14 and represented 75 percent of the loss for the quarter."
The sum of AMCORE's regulatory bank capital and reserves was $430 million at the beginning of the quarter and $350 million at the end of the quarter. Potential future credit losses can ultimately be absorbed from these sources.
Additionally, liquidity continues to exceed $500 million. Also, significant progress was made reducing core expenses $25 million on an annualized basis.
"We value the hard and diligent work of our employees who have established a new credit culture appropriate for this economic environment. Our people have built on our legacy of customer commitment and hard work, and they remain focused on addressing our non-performing loans and continuing to improve our relationship with our loyal customers. We have been blessed with the staunch support of the communities and customers throughout our footprint, and for that, we are proud and grateful."
With our customers' protection and security at the forefront of our commitments, AMCORE has chosen to continue participating in the FDIC's Transaction Account Guarantee Program where the entire amount in all noninterest-bearing deposit accounts for participating banks are fully guaranteed by the FDIC through June 30, 2010. This is in addition to, and separate from, the $250,000 coverage available under the FDIC's general deposit insurance rules which are in effect until December 31, 2013.
"We have had, and continue to have, discussions with numerous sources for capital. Currently, however, capital markets remain largely inaccessible to small and mid-size banks with our profile," said Mr. McManaman. "Nevertheless, we will continue to pursue all capital raising activities, including exploring additional government programs recently announced targeting small and mid-size banks."
Headlines
* Net Interest Income - Net interest income was $18.0 million or
1.67 percent of average earning assets in third quarter 2009,
compared to $18.7 million or 1.59 percent of average earning
assets in second quarter 2009 and $32.3 million or 2.76 percent of
average earning assets in third quarter 2008. In the third quarter
2009, investment proceeds were used to pay off wholesale funding.
Quarter over quarter, this resulted in a decrease in margin
dollars and an increase in margin percent. The decrease in margin
from a year ago was primarily due to the cost of building
liquidity and the higher level of non-accrual loans.
-- Average loan balances decreased seven percent, or $260 million,
to $3.2 billion compared to second quarter 2009, while ending
balances decreased $748 million, or 20 percent, to $3.0 billion
from December 31, 2008. The decreases were mainly the result
of strategic actions taken by the Company to reduce its
non-relationship credits.
-- Average bank issued deposits decreased five percent, or $151
million, primarily due to seasonal increases in public funds
in the prior quarter. Ending balances increased $57 million, or
two percent, to $2.9 billion from December 31, 2008 reflecting
efforts to increase liquidity, primarily in non-interest
bearing and time deposits.
-- Average investment securities and short-term investments
decreased a combined $248 million compared to second quarter
2009. Ending balances increased a combined $147 million from
December 31, 2008. The decreases from the previous quarter
reflect the usage of investment portfolio proceeds to pay down
wholesale funding.
-- As part of its continued liquidity management efforts, AMCORE
maintained cash equivalents and other liquid assets of
approximately $575 million at quarter end compared to $650
million for the previous quarter.
* Provision for Loan Losses and Credit Quality - Provision for loan
losses was $60.3 million, a $43.3 million increase from $17
million in second quarter 2009 and a $12.3 million, or 26 percent,
increase from $48 million in third quarter 2008.
-- Non-performing loans, net of charge-offs and settlements, were
$431 million at September 30, 2009, compared to $416 million at
June 30, 2009 and $191 million at September 30, 2008. For the
past two quarters, AMCORE's non-performing loans have increased
three percent, which has been the lowest net increase since
third quarter 2007.
-- Delinquencies declined by $5 million, or eight percent, to $57
million compared to second quarter 2009, their lowest level
since third quarter 2007.
-- Net charge-offs were $59.4 million compared to $20.7 million in
second quarter 2009 and $26.8 million in third quarter 2008.
Charge-offs increased reflecting ultimate losses that were
required for non-performing loans that are collateral dependent.
-- The allowance to total loans was 5.35 percent at September 30,
2009, up from 4.81 percent at June 30, 2009 and up from 3.54
percent at September 30, 2008.
-- The percentage of total non-accrual loans to total loans was
13.7 percent at September 30, 2009, up from 12.3 percent at
June 30, 2009 and 5.0 percent at September 30, 2008. The
percentage increase from second quarter 2009 was primarily due
to the decline in overall loan balances.
* Non-interest Income - Non-interest income was $16.7 million in the
third quarter 2009 compared to $28.5 million in second quarter
2009 and $20.2 million in the third quarter 2008.
-- The decline is due primarily to a $12.9 million security gain
in the previous quarter, compared to $1.5 million gain in third
quarter 2009 and none in third quarter 2008.
-- Excluding security gains, non-interest income was essentially
flat compared to the previous quarter.
* Operating Expenses - Operating expense was $38.7 million in the
third quarter 2009 compared to $48.5 million in the second quarter
2009 and $38.4 million in the third quarter 2008.
-- Third quarter 2009 included $6.1 million of other loan related
expenses including processing and collection expenses and
foreclosed property expenses. This compares to $4.3 million in
the second quarter 2009 and $1.7 million in the third quarter
2008.
-- The previous quarter included $9.7 million in higher expenses
relating to debt extinguishment costs, special FDIC insurance
assessments and severance related to the corporate
restructuring.
-- Corporate restructuring and other cost reduction measures that
the Company has taken over the past year has improved the
efficiency of operations. Core operating costs, excluding
restructuring and loan related costs as well as regular FDIC
insurance costs, have declined approximately $25 million on an
annualized basis.
* Tax Valuation Allowance - At September 30, 2009, AMCORE evaluated
the expected realization of its deferred tax assets totaling $118
million, primarily comprised of future tax benefits associated
with the allowance for loan losses and net operating loss
carryforwards, and concluded that a valuation allowance was
required.
-- During third quarter 2009, income tax expense of $92.1 million
was recorded, which includes the recognition of a $118 million
non-cash charge to establish a valuation allowance for deferred
tax assets.
* Capital - The Company at the consolidated level is significantly
undercapitalized for all three regulatory capital ratios, which is
the result of the losses for the quarter and technical limitations
that now restrict the inclusion of certain components in
regulatory capital. The Bank is significantly undercapitalized
for only its leverage ratio, undercapitalized for its total
capital ratio, and adequately capitalized for its Tier 1 capital
ratio. The Bank's total capital was $224 million as of September
30, 2009.
-- The leveraged capital ratio reflects, in part, the effect of
maintaining high liquidity. The Company has estimated this
ratio at the bank level may improve to undercapitalized after
the branch sales are completed in November.
-- As a result of dropping below adequately capitalized, the Bank,
among other limitations, continues to be prohibited from
accepting or renewing brokered deposits and cannot pay
excessive interest rates on deposits. This will continue to
have an impact on the Bank's liquidity particularly as current
brokered deposits mature.
-- As a result of dropping below adequately capitalized at the
consolidated level, the parent company is in technical default
under its credit agreement with JPMorgan Chase Bank, N.A.
AMCORE is and has been current with all its payments due under
that facility. AMCORE previously received a waiver from JP
Morgan on July 31 when it was previously in technical default.
AMCORE paid down the $20 million loan to $12.5 million and the
maturity was extended to April 2011. Both parties continue to
work cooperatively.
-- AMCORE has not received a formal response from its regulators
regarding its capital plan. AMCORE submitted its plan and
continues to work to implement that plan, including the branch
sales that are expected to be completed in November.
Additional financial data for the Company's earnings call will be available in the presentation section of the Investor Relations page on the Company's website at www.AMCORE.com.
ABOUT AMCORE
AMCORE Financial, Inc. is headquartered in Northern Illinois and has banking assets of $4.4 billion with 73 locations in Illinois and Wisconsin. AMCORE provides a full range of consumer and commercial banking services, a variety of mortgage lending products and wealth management services including trust, brokerage, private banking, financial planning, investment management, insurance and comprehensive retirement plan services.
AMCORE common stock is listed on The NASDAQ Stock Market under the symbol "AMFI." Further information about AMCORE Financial, Inc. can be found at the Company's website at www.AMCORE.com.
FORWARD LOOKING STATEMENTS
This news release contains, and our periodic filings with the Securities and Exchange Commission and written or oral statements made by the Company's officers and directors to the press, potential investors, securities analysts and others will contain, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934, and the Company intends that such forward-looking statements be subject to the safe harbors created thereby with respect to, among other things, the financial condition, results of operations, plans, objectives, future performance and business of AMCORE. Statements that are not historical facts, including statements about beliefs and expectations, are forward-looking statements. These statements are based upon beliefs and assumptions of AMCORE's management and on information currently available to such management. The use of the words "believe", "expect", "anticipate", "plan", "estimate", "should", "may", "will" or similar expressions identify forward-looking statements. Forward-looking statements speak only as of the date they are made, and AMCORE undertakes no obligation to update publicly any forward-looking statements in light of new information or future events.
Contemplated, projected, forecasted or estimated results in such forward-looking statements involve certain inherent risks and uncertainties. A number of factors - many of which are beyond the ability of the Company to control or predict - could cause actual results to differ materially from those in its forward-looking statements. These factors include, among others, the following possibilities: (I) heightened competition, including specifically the intensification of price competition, the entry of new competitors and the formation of new products by new or existing competitors; (II) adverse state, local and federal legislation and regulation or adverse findings or rulings made by local, state or federal regulators or agencies regarding AMCORE and its operations; (III) failure to obtain new customers and retain existing customers and related deposit relationships; (IV) inability to carry out marketing and/or expansion plans; (V) ability to attract and retain key executives or personnel; (VI) changes in interest rates including the effect of prepayments; (VII) general economic and business conditions which are less favorable than expected; (VIII) equity and fixed income market fluctuations; (IX) unanticipated changes in industry trends; (X) unanticipated changes in credit quality and risk factors; (XI) success in gaining regulatory approvals when required; (XII) changes in Federal Reserve Board monetary policies; (XIII) unexpected outcomes on existing or new litigation in which AMCORE, its subsidiaries, officers, directors or employees are named defendants; (XIV) technological changes; (XV) changes in accounting principles generally accepted in the United States of America; (XVI) changes in assumptions or conditions affecting the application of "critical accounting estimates"; (XVII) inability of third-party vendors to perform critical services for the Company or its customers; (XVIII) disruption of operations caused by the conversion and installation of data processing systems; (XIX) adverse economic or business conditions affecting specific loan portfolio types in which the Company has a concentration, such as construction, land development and other land loans; (XX) zoning restrictions or other limitations at the local level, which could prevent limited branch offices from transitioning to full-service facilities; (XXI) possible changes in the creditworthiness of customers and value of collateral and the possible impairment of collectibility of loans;(XXII) changes in lending terms to the Company and the Bank by the Federal Reserve, Federal Home Loan Bank, or any other regulatory agency or third party; and, (XXIII) the recently enacted Emergency Economic Stabilization Act of 2008, and the various programs the U.S. Treasury and the banking regulators are implementing to address capital and liquidity issues in the banking system, all of which may have significant effects on the Company and the financial services industry, the exact nature and extent of which cannot be determined at this time, and (XXIV) failure by the Company to comply with the provisions of any regulatory order or agreement to which the Company is subject could result in additional and material enforcement actions by the applicable regulatory agencies.
AMCORE Financial, Inc.
CONSOLIDATED FINANCIAL SUMMARY
(Unaudited)
---------------------------------------------------------------------
($ in
000's
except
per 3Q
share 09/
data) 3Q/2Q 08
---------- 3rd Qtr. 2nd Qtr. 1st Qtr. 4th Qtr. 3rd Qtr. Inc Inc
SHARE DATA 2009 2009 2009 2008 2008 (Dec)(Dec)
---------------------------------------------------------------------
Diluted
earnings
per share$ (6.81) $ (0.47) $ (1.34) $ (1.42) $ (0.79) N/M N/M
Cash
dividends$ -- $ -- $ -- $ -- $ 0.049 0%(100%)
Book value$ 2.91 $ 9.70 $ 10.66 $ 11.55 $ 12.74 (70%)(77%)
Average
diluted
shares
out-
standing 22,976 22,768 22,683 22,652 22,647 1% 1%
Ending
shares
out-
standing 23,069 22,869 22,738 22,682 22,655 1% 2%
----------
INCOME
STATEMENT
----------
Total
interest
income $ 45,530 $ 49,425 $ 53,878 $ 61,415 $ 66,452 (8%)(31%)
Total
interest
expense 27,542 30,761 31,412 34,467 34,190 (10%)(19%)
-----------------------------------------------------------
Net
interest
income 17,988 18,664 22,466 26,948 32,262 (4%)(44%)
Provision
for loan
losses 60,254 17,000 62,743 57,487 48,000 N/M 26%
Non-
interest
income:
Investment
management
& trust 3,398 3,544 3,004 3,661 3,907 (4%)(13%)
Service
charges
on
deposits 7,165 7,003 6,377 8,075 9,152 2% (22%)
Company
owned
life
insurance 1,346 1,081 1,016 997 1,227 25% 10%
Brokerage
com-
mission 610 770 756 739 963 (21%)(37%)
Bankcard
fee
income 2,073 2,116 1,999 2,062 2,241 (2%) (7%)
Net
security
gains 1,471 12,867 6,911 1,008 -- (89%) 0%
Other 644 1,153 1,328 383 2,755 (44%)(77%)
-----------------------------------------------------------
Total
non-
interest
income 16,707 28,534 21,391 16,925 20,245 (41%)(17%)
Operating
expenses:
Personnel
costs 16,450 19,106 20,806 21,171 21,328 (14%)(23%)
Net
occup-
ancy &
equip-
ment 6,087 6,049 6,467 6,677 6,469 1% (6%)
Data
process-
ing 702 617 791 733 715 14% (2%)
Profess-
ional
fees 1,609 1,521 1,878 2,141 1,981 6% (19%)
Insurance
expense 4,524 7,853 2,411 1,453 1,255 (42%) N/M
Communi-
cation 1,097 1,056 1,150 1,176 1,318 4% (17%)
Loan
process-
ing
and
collect-
ion
expense 2,106 2,998 2,054 2,150 1,262 (30%) 67%
Provision
for
unfunded
commit-
ment
losses (719) 81 298 1,443 257 N/M N/M
Other 6,879 9,259 3,586 3,990 3,779 (26%) 82%
-----------------------------------------------------------
Total
operating
expenses 38,735 48,540 39,441 40,934 38,364 (20%) 1%
-----------------------------------------------------------
Loss
before
income
taxes (64,294) (18,342) (58,327) (54,548) (33,857) N/M (90%)
Income
tax
expense
(benefit) 92,101 (7,618) (27,929) (22,429) (15,870) N/M N/M
-----------------------------------------------------------
Net Loss $(156,395) $(10,724) $(30,398) $(32,119) $(17,987) N/M N/M
===========================================================
---------------------------------------------------------------------
KEY 3rd 2nd 1st 4th 3rd Basis Basis
RATIOS Qtr. Qtr. Qtr. Qtr. Qtr. Point Point
AND DATA 2009 2009 2009 2008 2008 Change Change
---------------------------------------------------------------------
Net
interest
margin
(FTE) 1.67% 1.59% 1.94% 2.37% 2.76% 8 (109)
Return on
average
assets -13.29% -0.84% -2.40% -2.54% -1.40% N/M N/M
Return on
average
equity -283.42% -18.14% -48.24% -44.78% -22.77% N/M N/M
Efficiency
ratio 111.64% 102.84% 89.93% 93.30% 73.06% N/M N/M
Equity/
assets
(end of
period) 1.54% 4.54% 4.58% 5.21% 5.76% (300) (422)
Allowance
to loans
(end of
period) 5.35% 4.81% 4.61% 3.60% 3.54% 54 181
Allowance
to non-
accrual
loans 39% 39% 42% 45% 71% (9) N/M
Allowance
to non-
performing
loans 38% 39% 41% 44% 70% (111) N/M
Non-accrual
loans
to loans 13.72% 12.31% 10.93% 8.03% 4.99% 141 N/M
Non-
performing
assets to
total
assets 10.41% 9.01% 7.88% 6.56% 4.03% 140 N/M
($ in
millions)
Total
assets
under
admini-
stration $2,040 $1,967 $1,882 $1,999 $2,247 4% (9%)
Mortgage
loans
closed $ 44 $ 97 $ 113 $ 27 $ 38 (55%) 16%
N/M = not meaningful
AMCORE Financial, Inc.
CONSOLIDATED FINANCIAL SUMMARY (cont.)
(Unaudited)
($ in 000's)
---------------------------------------------------------------------
AVERAGE BALANCE 3rd Qtr. 2nd Qtr. 1st Qtr. 4th Qtr.
SHEET 2009 2009 2009 2008
---------------------------------------------------------------------
Assets:
Investment
securities,
at cost $ 810,586 $ 828,945 $ 725,592 $ 846,415
Short-term
investments 282,342 512,465 343,098 29,590
Loans held
for sale 54,822 12,501 14,671 2,862
Loans:
Commercial 588,711 679,581 739,413 773,736
Commercial
real
estate 1,915,212 2,030,676 2,180,385 2,222,806
Residential
real
estate 401,388 428,024 441,809 445,372
Consumer 316,724 343,565 373,946 369,654
--------------------------------------------------
Total
loans $ 3,222,035 $ 3,481,846 $ 3,735,553 $ 3,811,568
--------------------------------------------------
Total
earning
assets $ 4,369,785 $ 4,835,757 $ 4,818,914 $ 4,690,435
Allowance
for loan
losses (165,013) (167,281) (149,186) (133,968)
Other non-
earning
assets 463,968 476,026 456,670 470,556
--------------------------------------------------
Total assets $ 4,668,740 $ 5,144,502 $ 5,126,398 $ 5,027,023
==================================================
Liabilities
and Stockholders'
Equity:
Non-interest
bearing
deposits $ 546,118 $ 569,508 $ 481,486 $ 453,717
Interest
bearing
deposits 896,860 990,234 1,111,332 1,223,287
Time deposits 1,511,290 1,545,345 1,397,213 1,151,156
--------------------------------------------------
Total bank
issued
deposits $ 2,954,268 $ 3,105,087 $ 2,990,031 $ 2,828,160
--------------------------------------------------
Wholesale
deposits 1,064,431 1,254,068 1,139,003 1,018,975
Short-term
borrowings 132,489 224,225 351,232 446,041
Long-term
borrowings 237,713 263,480 353,102 403,632
--------------------------------------------------
Total
wholesale
funding $ 1,434,633 $ 1,741,773 $ 1,843,337 $ 1,868,648
--------------------------------------------------
Total
interest
bearing
liabilities 3,842,783 4,277,352 4,351,882 4,243,091
--------------------------------------------------
Other
liabilities 60,911 60,569 37,487 44,843
--------------------------------------------------
Total
liabilities $ 4,449,812 $ 4,907,429 $ 4,870,855 $ 4,741,651
--------------------------------------------------
Stockholders'
equity 224,953 236,610 262,464 297,392
Other
comprehensive
(loss) income (6,025) 463 (6,921) (12,020)
--------------------------------------------------
Total
stockholders'
equity 218,928 237,073 255,543 285,372
--------------------------------------------------
Total
liabilities &
stockholders'
equity $ 4,668,740 $ 5,144,502 $ 5,126,398 $ 5,027,023
==================================================
-------------------
CREDIT QUALITY
-------------------
Ending
allowance
for loan
losses $ 162,490 $ 161,650 $ 165,577 $ 136,412
Net charge-offs 59,414 20,677 33,578 55,908
Net charge-offs
to avg loans
(annualized) 7.32% 2.38% 3.65% 5.84%
Non-performing
assets:
Non-accrual
loans $ 416,842 $ 413,762 $ 392,510 $ 304,176
Loans 90 days
past due &
still accruing 5,264 1,609 8,784 8,889
Troubled debt
restructured
loans (TDRs) 8,444 748 811 --
--------------------------------------------------
Total
non-performing
loans 430,550 416,119 402,105 313,065
Foreclosed
real estate 22,650 24,116 14,996 16,899
Other
foreclosed
assets 311 132 237 224
--------------------------------------------------
Total non-
performing
assets $ 453,511 $ 440,367 $ 417,338 $ 330,188
==================================================
-------------------
YIELD AND
RATE
ANALYSIS
-------------------
Assets:
Investment
securities (FTE) 2.77% 2.95% 4.47% 4.80%
Short-term
investments 0.25% 0.25% 0.23% 1.83%
Loans held
for sale 5.35% 4.44% 4.50% 7.59%
Loans:
Commercial 4.62% 4.48% 4.33% 5.01%
Commercial
real estate 4.43% 4.71% 4.75% 5.13%
Residential
real estate 4.79% 4.92% 5.02% 5.48%
Consumer 7.84% 7.66% 7.72% 7.92%
--------------------------------------------------
Total
loans (FTE) 4.85% 4.98% 5.00% 5.42%
--------------------------------------------------
Total interest
earning
assets (FTE) 4.17% 4.13% 4.58% 5.29%
==================================================
Liabilities:
Interest
bearing
deposits 0.33% 0.37% 0.53% 1.03%
Time deposits 3.33% 3.38% 3.42% 3.68%
--------------------------------------------------
Total bank
issued
deposits 2.21% 2.20% 2.14% 2.31%
--------------------------------------------------
Wholesale
deposits 3.91% 3.97% 4.29% 4.58%
Short-term
borrowings 0.69% 1.95% 2.52% 3.18%
Long-term
borrowings 5.54% 4.98% 4.45% 5.21%
--------------------------------------------------
Total
wholesale
funding 3.89% 3.87% 3.98% 4.38%
--------------------------------------------------
Total interest
bearing
liabilities 2.84% 2.88% 2.92% 3.22%
==================================================
Net interest spread 1.33% 1.25% 1.66% 2.07%
Net interest
margin (FTE) 1.67% 1.59% 1.94% 2.37%
==================================================
FTE
adjustment
(000's) $ 330 $ 435 $ 665 $ 834
($ in 000's)
---------------------------------------------------------------------
AVERAGE BALANCE 3rd Qtr. 3Q/2Q 3Q 09/08 Ending
SHEET 2008 Inc(Dec) Inc(Dec) Balances
---------------------------------------------------------------------
Assets:
Investment
securities,
at cost $ 882,289 (2%) (8%) $ 743,252
Short-term
investments 96,027 (45%) 194% 276,211
Loans held
for sale 4,523 N/M N/M 96,120
Loans:
Commercial 765,776 (13%) (23%) 529,606
Commercial
real estate 2,234,286 (6%) (14%) 1,827,791
Residential
real estate 445,837 (6%) (10%) 379,617
Consumer 361,107 (8%) (12%) 301,306
--------------------------------------------------
Total loans $ 3,807,006 (7%) (15%) $ 3,038,320
--------------------------------------------------
Total earning
assets $ 4,789,845 (10%) (9%) $ 4,153,903
Allowance for
loan losses (123,693) (1%) 33% (162,490)
Other non-earning
assets 438,972 (3%) 6% 366,106
--------------------------------------------------
Total assets $ 5,105,124 (9%) (9%) $ 4,357,519
==================================================
Liabilities and
Stockholders'
Equity:
Non-interest
bearing deposits $ 476,378 (4%) 15% $ 535,919
Interest bearing
deposits 1,462,149 (9%) (39%) 859,587
Time deposits 1,048,560 (2%) 44% 1,498,732
--------------------------------------------------
Total bank
issued
deposits $ 2,987,087 (5%) (1%) $ 2,894,238
--------------------------------------------------
Wholesale
deposits 887,366 (15%) 20% 984,672
Short-term
borrowings 510,945 (41%) (74%) 113,837
Long-term
borrowings 350,035 (10%) (32%) 241,695
--------------------------------------------------
Total
wholesale
funding $ 1,748,346 (18%) (18%) $ 1,340,204
--------------------------------------------------
Total
interest
bearing
liabilities 4,259,055 (10%) (10%) 3,698,523
--------------------------------------------------
Other
liabilities 55,456 1% 10% 55,994
--------------------------------------------------
Total
liabilities $ 4,790,889 (9%) (7%) $ 4,290,436
--------------------------------------------------
Stockholders'
equity 320,549 (5%) (30%) 72,500
Other
comprehensive
(loss) income (6,314) N/M (5%) (5,417)
--------------------------------------------------
Total
stockholders'
equity 314,235 (8%) (30%) 67,083
--------------------------------------------------
Total
liabilities &
stockholders'
equity $ 5,105,124 (9%) (9%) $ 4,357,519
==================================================
-------------------
CREDIT QUALITY
-------------------
Ending allowance
for loan losses $ 134,833 1% 21%
Net charge-offs 26,757 187% 122%
Net charge-offs
to avg loans
(annualized) 2.80% 208% 161%
Non-performing
assets:
Non-accrual
loans $ 190,135 1% 119%
Loans 90 days
past due &
still accruing 1,267 227% N/M
Troubled debt
restructured
loans (TDRs) -- N/M 0%
-------------------------------------
Total
non-
performing
loans 191,402 3% 125%
Foreclosed
real estate 10,224 (6%) 122%
Other
foreclosed
assets 393 136% (21%)
-------------------------------------
Total non-
performing
assets $ 202,019 3% 124%
=====================================
-------------------
YIELD AND RATE
ANALYSIS
-------------------
Assets:
Investment
securities (FTE) 4.65%
Short-term
investments 1.95%
Loans held
for sale 6.85%
Loans:
Commercial 5.64%
Commercial
real estate 5.70%
Residential
real estate 5.79%
Consumer 7.87%
-----------
Total
loans (FTE) 5.90%
-----------
Total
interest
earning
assets (FTE) 5.60%
===========
Liabilities:
Interest bearing
deposits 1.42%
Time deposits 3.79%
-----------
Total bank
issued
deposits 2.41%
-----------
Wholesale deposits 4.61%
Short-term
borrowings 3.25%
Long-term
borrowings 5.05%
-----------
Total
wholesale
funding 4.30%
-----------
Total
interest
bearing
liabilities 3.19%
===========
Net
interest
spread 2.41%
Net
interest
margin (FTE) 2.76%
===========
FTE
adjustment
(000's) $ 844
N/M = not meaningful