FLINT, Mich., Jan. 22, 2013 /PRNewswire/ --
- Net income attributable to common shareholders for the quarter
increased 15% compared to last quarter and 38% compared to the
fourth quarter of 2011
- For the full year, net income attributable to common
shareholders was $348 million or
$8.61 per share
- Continued strong credit metrics and a solid core deposit
funding base have created a lower risk profile balance sheet
- Pre-tax, pre-provision profit remained strong at $32 million
Citizens Republic Bancorp, Inc. (Nasdaq: CRBC) announced net
income attributable to common shareholders of $17.0 million or $0.42 per diluted share for the three months
ended December 31, 2012, compared to
$14.9 million or $0.37 per diluted share for last quarter,
and $12.3 million or $0.31 per diluted share for the fourth quarter of
last year. For the year ended December
31, 2012, Citizens recorded net income attributable to
common shareholders of $347.9 million
or $8.61 per share compared to a net
loss of $16.3 million or $0.41 per share for the prior year. Year to
date 2012 results include a $275.5
million or $6.82 per share tax
benefit related to the elimination of the valuation allowance
against the deferred tax asset in the second quarter.
"We are pleased with our 2012 earnings results, which reflect
our bankers' persistent execution of our strategic initiatives. Our
success during 2012 allowed us to complete our key priorities
including terminating our written regulatory agreement and
restoring our deferred tax asset. In addition, we are in the midst
of paying our accrued trust preferred dividends and our TARP
obligation will be repaid through our pending merger with
FirstMerit. We are proud of the hard work and dedication of
everyone at Citizens as together we have addressed the many
challenges from the last several years, and have emerged as a
stronger banking franchise," commented Cathleen Nash, president and chief executive
officer.
"While we continue to execute on our priorities, we are also
looking ahead to our combination with FirstMerit as we create a
premier Midwest banking franchise providing enhanced products and
services to our clients and significant long-term value to our
shareholders," added Nash.
Balance Sheet
Citizens continues to enjoy a strong
core deposit funding base. Core deposits of $5.4 billion at December
31, 2012 decreased slightly from the third quarter as a
result of an expected seasonal reduction in public funds balances,
but increased $255.8 million, or 4.9%
from December 31, 2011. Time deposits
decreased $69.5 million, or 3.9%,
from the third quarter and $490.0
million, or 22.3%, from the fourth quarter of 2011 due to
the intentional non-renewal of high cost rate sensitive retail and
brokered balances.
Total assets decreased $138.1
million from the third quarter as a reduction in loan
portfolio balances was partially offset by an increase in
investment securities balances. Over the past year, growth within
the C&I and indirect consumer portfolios helped to partially
mitigate balance reductions in the commercial real estate,
residential mortgage, and direct consumer portfolios.
Citizens continues to emphasize C&I and consumer lending
as key components of its strategic plan.
Capital
Citizens continues to grow capital organically
through earnings and maintains a strong capital position.
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Capital Ratios
|
|
December 31,
|
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September
30,
|
|
December
31,
|
|
|
2012*
|
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2012
|
|
2011
|
|
Leverage
ratio
|
|
9.95%
|
|
9.66%
|
|
8.45%
|
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Tier 1
capital ratio
|
|
15.67
|
|
15.09
|
|
13.51
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|
Total
capital ratio
|
|
16.93
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16.35
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|
14.84
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Tier 1
common equity (non-GAAP)
|
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9.24
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8.83
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7.24
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Tangible
equity to tangible assets (non-GAAP)
|
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11.30
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11.00
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7.59
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Tangible
common equity to tangible assets (non-GAAP)
|
|
8.15
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7.91
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4.47
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*
Estimate
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Net Interest Income and Margin
Net interest margin
was 3.50% in the fourth quarter, a seven basis point decrease from
last quarter and a twelve basis point decrease from the fourth
quarter of last year. The decreases were driven by the
continued low interest rate environment, which has resulted in
reduced yields on our earning assets. The negative effects on asset
yields were partially offset by a more advantageous funding mix and
reduced funding costs. In the fourth quarter the negative pressures
were also somewhat offset by an increase in commercial loan fees
collected with the restructuring of several larger client
relationships. For the year ended December 31, 2012, net interest margin decreased
two basis points over the prior year to 3.56%.
Net interest income for the fourth quarter was $73.2 million, a reduction of $2.6 million from last quarter and a decrease of
$4.9 million from the fourth quarter
of last year. The decreases from both periods are result of
both lower average earning assets and margin compression. For
the year ended December 31, 2012, net
interest income decreased $12.3
million compared to 2011 primarily due to a reduction in
average earning assets.
Credit Quality
Credit quality continued its strong
performance.
- Total delinquencies remained stable at 0.6% of portfolio
loans.
- Nonperforming assets were $68.0
million, a 21% decrease from the end of September and a 33%
decrease from December of last year due to proactively managing and
resolving delinquent commercial and consumer loans and improving
the risk profile of the loan portfolio.
- Net charge-offs for the fourth quarter decreased to
$16.0 million, compared to
$19.2 million last quarter and
$32.6 million in the fourth quarter
of last year. The provision for loan losses was $4.3 million in the fourth quarter, a decrease
from $5.2 million in the third
quarter and $15.0 million in the
fourth quarter of the prior year.
- The allowance for loan losses was $110.4
million or 2.10% of portfolio loans at December 31, 2012, compared to $122.1 million or 2.25% at the end of the prior
quarter, and $172.7 million or 3.12%
at the end of the prior year.
Noninterest Income and Expense
Total noninterest
income was $22.0 million, a reduction
of $1.7 million from the third
quarter and a reduction of $2.3
million from the fourth quarter of last year. For the full
year, noninterest income was $92.3
million; a decrease of $2.9
million compared to 2011.
- Service charges decreased slightly from both the third quarter
of 2012 and fourth quarter of last year. For the full year,
service charges on deposit accounts decreased 5% compared last year
as clients changed behavior relative to penalty fees and product
choices.
- Brokerage and investment fees decreased $0.3 million compared to the prior quarter,
however due to focused efforts to increase performance; fees
increased 26% over the fourth quarter of last year, and improved
19% for the full year.
- Other income decreased compared to last quarter primarily due
to lower gains on deferred compensation.
- The fourth quarter includes a $2.7
million charge related to one commercial loan relationship
in the held for sale portfolio, that was partially offset by
gains.
Noninterest expense was $6.9
million less than last quarter and $1.5 million lower than the fourth quarter of
last year.
- Professional services were $4.3
million lower than last quarter due to a reduction in merger
related expenses.
- Citizens experienced an overall recovery in ORE during the
quarter compared to losses in both the third quarter of this year
and the fourth quarter of 2011.
For the year ended December 31,
2012, noninterest expense decreased $12.5 million or 4% from 2011 as lower credit
related expenses were partially offset by higher salaries and
employee benefits and merger-related expenses.
Income Taxes and Deferred Tax Asset
The income tax
benefit for 2012 totaled $273.0
million, compared with a benefit of $20.3 million for 2011. The majority of the
tax benefit in 2012 was recorded in the second quarter as the
result of eliminating the valuation allowance against our deferred
tax asset.
Conference Call
Citizens' senior management will
review the quarter's results in a conference call at
12:00 p.m. Eastern Time on
Tuesday, January 22,
2013. A live audio webcast is available on
Citizens' investor relations page at www.citizensbanking.com or by
calling (866) 952-1906 (conference ID: Citizens Republic). To
listen to the conference call, please connect approximately 10
minutes prior to the scheduled conference time. A recording
will be available approximately two hours after the completion of
the conference call at www.citizensbanking.com, where it will be
archived for 90 days.
Use of Non-GAAP Financial Measures
In addition to
results presented in accordance with generally accepted accounting
principles ("GAAP"), this release includes non-GAAP financial
measures such as tangible equity to tangible assets ratio, tangible
common equity to tangible assets ratio, Tier 1 common equity ratio,
pre-tax pre-provision profit, net interest margin, the efficiency
ratio, and adjusted earnings per share. Citizens believes
these non-GAAP financial measures provide additional information
that is useful to investors in understanding the underlying
performance of Citizens, its business and performance trends, and
such measures help facilitate performance comparisons with others
in the banking industry. Non-GAAP financial measures have
inherent limitations, are not required to be uniformly applied and
are not audited. Readers should be aware of these limitations
and should be cautious as to their use of such measures. To
mitigate these limitations, Citizens has procedures in place to
ensure that these measures are calculated using the appropriate
GAAP or regulatory components in their entirety to ensure that
Citizens' performance is properly reflected to facilitate
consistent period-to-period comparisons. Although Citizens
believes the above non-GAAP financial measures disclosed in this
release enhance investors' understanding of its business and
performance, these non-GAAP measures should not be considered in
isolation, or as a substitute for GAAP basis financial
measures. See our related Form 8-K for further discussion
regarding these non-GAAP financial measures.
Corporate Profile
Citizens Republic Bancorp, Inc. is a
diversified financial services company providing a wide range of
commercial, consumer, mortgage banking, trust and financial
planning services to a broad client base. Citizens serves
communities in Michigan,
Ohio, and Wisconsin with 219 offices and 248 ATMs.
Citizens is the largest bank holding company headquartered in
Michigan with roots dating back to
1871 and is the 58th largest bank holding company
headquartered in the United States. More information about
Citizens is available at www.citizensbanking.com.
Safe Harbor Statement
Discussions and statements in
this release that are not statements of historical fact, including
without limitation, statements that include terms such as "will,"
"may," "should," "believe," "expect," "anticipate," "estimate,"
"project," "intend," and "plan," and statements regarding Citizens'
future financial and operating results, plans, objectives,
expectations and intentions, are forward-looking statements that
involve risks and uncertainties, many of which are beyond Citizens'
control or are subject to change. No forward-looking
statement is a guarantee of future performance and actual results
could differ materially.
Factors that could cause or contribute to actual results
differing materially from Citizens' expectations include the risks
and uncertainties detailed from time to time in Citizens' annual
and quarterly filings with the SEC, which are available at the
SEC's website www.sec.gov. Other factors not currently
anticipated may also materially and adversely affect Citizens'
results of operations, cash flows, financial position and
prospects. There can be no assurance that future results will
meet expectations. While Citizens believes that the
forward-looking statements in this release are reasonable, you
should not place undue reliance on any forward-looking
statement. In addition, these statements speak only as of the
date made. Citizens does not undertake, and expressly
disclaims, any obligation to update or alter any statements,
whether as a result of new information, future events or otherwise,
except as required by applicable law.
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Consolidated Balance Sheets
(Unaudited)
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Citizens Republic Bancorp,
Inc.
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|
December 31,
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September
30,
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December
31,
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(in
thousands)
|
|
2012
|
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2012
|
|
2011
|
|
Assets
|
|
|
|
|
|
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Cash and
due from banks
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|
$
173,510
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$
162,705
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$
153,418
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|
Money
market investments
|
|
186,349
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|
223,818
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313,632
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Investment
Securities:
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Securities available for sale, at
fair value
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|
1,697,625
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1,541,567
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1,312,733
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Securities held to maturity, at
amortized cost
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(fair value of
$1,282,244, $1,378,310 and $1,487,550, respectively)
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1,226,268
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1,313,504
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1,444,054
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Total investment securities
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|
2,923,893
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|
2,855,071
|
|
2,756,787
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FHLB and
Federal Reserve stock
|
|
126,763
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|
122,123
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|
117,943
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|
Portfolio
loans:
|
|
|
|
|
|
|
|
Commercial and
industrial
|
|
1,656,292
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|
1,688,996
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1,543,529
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Commercial real estate
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|
1,242,348
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|
1,335,601
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|
1,544,361
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|
Total commercial
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|
2,898,640
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|
3,024,597
|
|
3,087,890
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|
Residential mortgage
|
|
546,513
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|
570,295
|
|
637,245
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|
Direct consumer
|
|
844,240
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|
865,777
|
|
933,314
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|
Indirect consumer
|
|
969,583
|
|
970,235
|
|
871,086
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|
Total portfolio loans
|
|
5,258,976
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|
5,430,904
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|
5,529,535
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Less: Allowance for loan
losses
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|
(110,439)
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(122,125)
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|
(172,726)
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Net portfolio loans
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|
5,148,537
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5,308,779
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5,356,809
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Loans held
for sale
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|
10,719
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|
30,062
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|
10,402
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|
Premises
and equipment
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|
90,291
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|
92,005
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|
97,970
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|
Goodwill
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|
318,150
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|
318,150
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|
318,150
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|
Other
intangible assets
|
|
5,308
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|
5,792
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|
7,428
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|
Bank owned
life insurance
|
|
223,235
|
|
222,610
|
|
220,280
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|
Deferred
tax assets
|
|
272,891
|
|
268,347
|
|
---
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Other
assets
|
|
107,037
|
|
115,328
|
|
110,030
|
|
Total assets
|
|
$ 9,586,683
|
|
$ 9,724,790
|
|
$ 9,462,849
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|
Liabilities
|
|
|
|
|
|
|
|
Noninterest-bearing deposits
|
|
$
1,754,248
|
|
$
1,854,715
|
|
$
1,614,311
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|
Interest-bearing demand deposits
|
|
1,100,763
|
|
1,092,679
|
|
951,590
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|
Savings
deposits
|
|
2,594,378
|
|
2,574,642
|
|
2,627,665
|
|
Core
deposits
|
|
5,449,389
|
|
5,522,036
|
|
5,193,566
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|
Time
deposits
|
|
1,711,396
|
|
1,780,929
|
|
2,201,375
|
|
Total deposits
|
|
7,160,785
|
|
7,302,965
|
|
7,394,941
|
|
Federal
funds purchased and securities sold
|
|
|
|
|
|
|
|
under agreements to
repurchase
|
|
42,747
|
|
42,796
|
|
40,098
|
|
Other
liabilities
|
|
161,736
|
|
168,351
|
|
154,088
|
|
Long-term
debt
|
|
850,910
|
|
852,481
|
|
854,185
|
|
Total
liabilities
|
|
8,216,178
|
|
8,366,593
|
|
8,443,312
|
|
Shareholders' Equity
|
|
|
|
|
|
|
|
Preferred
stock - no par value
|
|
292,473
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|
290,580
|
|
285,114
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|
Common
stock - no par value
|
|
1,437,877
|
|
1,436,925
|
|
1,434,803
|
|
Retained
deficit
|
|
(346,632)
|
|
(363,659)
|
|
(694,560)
|
|
Accumulated other comprehensive loss
|
|
(13,213)
|
|
(5,649)
|
|
(5,820)
|
|
Total
shareholders' equity
|
|
1,370,505
|
|
1,358,197
|
|
1,019,537
|
|
Total liabilities and shareholders'
equity
|
|
$ 9,586,683
|
|
$ 9,724,790
|
|
$ 9,462,849
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statements of Operations
(Unaudited)
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|
|
|
|
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Citizens Republic Bancorp,
Inc.
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|
Three
Months Ended
|
|
Twelve
Months Ended
|
|
|
December
31,
|
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December
31,
|
|
(in
thousands, except per share amounts)
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
Interest Income
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans
|
|
$
71,578
|
|
$
77,146
|
|
$
293,782
|
|
$
312,746
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|
Interest and dividends on investment
securities:
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
14,556
|
|
18,617
|
|
63,912
|
|
79,281
|
|
Tax-exempt
|
|
2,101
|
|
2,388
|
|
8,711
|
|
10,800
|
|
Dividends on FHLB and Federal Reserve
stock
|
|
1,410
|
|
1,009
|
|
4,897
|
|
4,152
|
|
Money market investments
|
|
145
|
|
170
|
|
626
|
|
840
|
|
Total interest
income
|
|
89,790
|
|
99,330
|
|
371,928
|
|
407,819
|
|
Interest Expense
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
8,217
|
|
12,382
|
|
37,459
|
|
57,327
|
|
Short-term borrowings
|
|
11
|
|
21
|
|
53
|
|
79
|
|
Long-term debt
|
|
8,392
|
|
8,878
|
|
33,644
|
|
37,303
|
|
Total interest
expense
|
|
16,620
|
|
21,281
|
|
71,156
|
|
94,709
|
|
Net
Interest Income
|
|
73,170
|
|
78,049
|
|
300,772
|
|
313,110
|
|
Provision
for loan losses
|
|
4,314
|
|
15,007
|
|
23,204
|
|
138,808
|
|
Net interest income
after provision for loan losses
|
|
68,856
|
|
63,042
|
|
277,568
|
|
174,302
|
|
Noninterest Income
|
|
|
|
|
|
|
|
|
|
Service charges on deposit
accounts
|
|
9,414
|
|
9,724
|
|
37,308
|
|
39,268
|
|
Trust fees
|
|
3,782
|
|
3,747
|
|
14,601
|
|
15,103
|
|
Mortgage and other loan
income
|
|
2,265
|
|
2,705
|
|
8,104
|
|
9,620
|
|
Brokerage and investment fees
|
|
1,569
|
|
1,243
|
|
6,055
|
|
5,072
|
|
Card-based and other nondeposit
fees
|
|
4,367
|
|
4,305
|
|
17,507
|
|
17,167
|
|
Net (losses) gains on loans held for
sale
|
|
(1,723)
|
|
(217)
|
|
(984)
|
|
1,808
|
|
Investment securities gains
(losses)
|
|
---
|
|
38
|
|
---
|
|
(1,336)
|
|
Other income
|
|
2,350
|
|
2,818
|
|
9,729
|
|
8,555
|
|
Total noninterest
income
|
|
22,024
|
|
24,363
|
|
92,320
|
|
95,257
|
|
Noninterest Expense
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
33,163
|
|
30,952
|
|
132,850
|
|
123,514
|
|
Occupancy
|
|
6,031
|
|
6,326
|
|
24,997
|
|
26,059
|
|
Professional services
|
|
2,478
|
|
2,311
|
|
13,772
|
|
9,331
|
|
Equipment
|
|
2,858
|
|
3,326
|
|
12,001
|
|
12,136
|
|
Data processing services
|
|
4,521
|
|
3,709
|
|
16,717
|
|
16,131
|
|
Advertising and public
relations
|
|
1,014
|
|
1,298
|
|
5,904
|
|
5,848
|
|
Postage and delivery
|
|
1,081
|
|
1,165
|
|
4,456
|
|
4,543
|
|
Other loan expenses
|
|
3,650
|
|
3,497
|
|
13,224
|
|
16,007
|
|
(Gains) losses on other real estate
(ORE)
|
|
(596)
|
|
1,081
|
|
(214)
|
|
12,768
|
|
ORE expenses
|
|
220
|
|
995
|
|
1,259
|
|
4,322
|
|
Intangible asset amortization
|
|
484
|
|
688
|
|
2,120
|
|
3,027
|
|
Other expense
|
|
10,224
|
|
11,292
|
|
43,536
|
|
49,464
|
|
Total noninterest
expense
|
|
65,128
|
|
66,640
|
|
270,622
|
|
283,150
|
|
Income (Loss) before Income
Taxes
|
|
25,752
|
|
20,765
|
|
99,266
|
|
(13,591)
|
|
Income tax
provision (benefit)
|
|
2,505
|
|
2,521
|
|
(273,009)
|
|
(20,258)
|
|
Net
Income
|
|
23,247
|
|
18,244
|
|
372,275
|
|
6,667
|
|
Dividend
on redeemable preferred stock
|
|
(6,220)
|
|
(5,897)
|
|
(24,347)
|
|
(22,985)
|
|
Net
Income (Loss) Attributable to Common
Shareholders
|
|
$ 17,027
|
|
$ 12,347
|
|
$ 347,928
|
|
$ (16,318)
|
|
Net
Income (Loss) Per Common Share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.42
|
|
$
0.31
|
|
$
8.61
|
|
$
(0.41)
|
|
Diluted
|
|
0.42
|
|
0.31
|
|
8.61
|
|
(0.41)
|
|
Average Common Shares
Outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
39,491
|
|
39,433
|
|
39,475
|
|
39,422
|
|
Diluted
|
|
39,491
|
|
39,433
|
|
39,475
|
|
39,422
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Quarterly Information
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
|
|
|
December 31,
|
|
|
September
30,
|
|
|
June
30,
|
|
|
March
31,
|
|
|
December
31,
|
|
|
(in
thousands, except per share amounts)
|
|
2012
|
|
|
2012
|
|
|
2012
|
|
|
2012
|
|
|
2011
|
|
|
Summary of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income
|
|
$
73,170
|
|
|
$
75,805
|
|
|
$
75,680
|
|
|
$
76,119
|
|
|
$
78,049
|
|
|
Provision
for loan losses
|
|
4,314
|
|
|
5,195
|
|
|
5,299
|
|
|
8,397
|
|
|
15,007
|
|
|
Noninterest income
|
|
22,024
|
|
|
23,710
|
|
|
22,345
|
|
|
24,240
|
|
|
24,363
|
|
|
Noninterest expense
|
|
65,128
|
|
|
72,055
|
|
|
66,339
|
|
|
67,101
|
|
|
66,640
|
|
|
Income
before income taxes
|
|
25,752
|
|
|
22,265
|
|
|
26,387
|
|
|
24,861
|
|
|
20,765
|
|
|
Income tax
provision (benefit) from continuing operations
|
|
2,505
|
|
|
1,274
|
|
|
(276,789)
|
|
|
---
|
|
|
2,521
|
|
|
Net
income
|
|
23,247
|
|
|
20,991
|
|
|
303,176
|
|
|
24,861
|
|
|
18,244
|
|
|
Net income
attributable to common shareholders
|
|
17,027
|
|
|
14,861
|
|
|
297,134
|
|
|
18,906
|
|
|
12,347
|
|
|
Taxable
equivalent adjustment, continuing operations
|
|
1,468
|
|
|
1,503
|
|
|
1,532
|
|
|
1,571
|
|
|
1,670
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per
Common Share Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.42
|
|
|
$
0.37
|
|
|
$
7.35
|
|
|
$
0.47
|
|
|
$
0.31
|
|
|
Diluted
|
|
0.42
|
|
|
0.37
|
|
|
7.35
|
|
|
0.47
|
|
|
0.31
|
|
|
Common
book value
|
|
26.62
|
|
|
26.36
|
|
|
25.85
|
|
|
18.83
|
|
|
18.24
|
|
|
Tangible
book value (non-GAAP)
|
|
25.85
|
|
|
25.53
|
|
|
24.97
|
|
|
17.88
|
|
|
17.24
|
|
|
Tangible
common book value (non-GAAP)
|
|
18.63
|
|
|
18.36
|
|
|
17.84
|
|
|
10.75
|
|
|
10.16
|
|
|
Shares
outstanding, end of period (1)
|
|
40,497,890
|
|
|
40,508,823
|
|
|
40,504,637
|
|
|
40,247,241
|
|
|
40,260,213
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At
Period End
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
$
9,586,683
|
|
|
$
9,724,790
|
|
|
$
9,670,493
|
|
|
$
9,577,346
|
|
|
$
9,462,849
|
|
|
Earning
assets
|
|
8,453,513
|
|
|
8,600,731
|
|
|
8,588,343
|
|
|
8,774,119
|
|
|
8,680,995
|
|
|
Portfolio
loans
|
|
5,258,976
|
|
|
5,430,904
|
|
|
5,521,748
|
|
|
5,528,063
|
|
|
5,529,535
|
|
|
Allowance
for loan losses
|
|
110,439
|
|
|
122,125
|
|
|
136,120
|
|
|
153,007
|
|
|
172,726
|
|
|
Deposits
|
|
7,160,785
|
|
|
7,302,965
|
|
|
7,287,709
|
|
|
7,490,362
|
|
|
7,394,941
|
|
|
Long-term
debt
|
|
850,910
|
|
|
852,481
|
|
|
853,042
|
|
|
853,599
|
|
|
854,185
|
|
|
Shareholders' equity
|
|
1,370,505
|
|
|
1,358,197
|
|
|
1,335,855
|
|
|
1,044,619
|
|
|
1,019,537
|
|
|
Average for the Quarter
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
$
9,604,447
|
|
|
$
9,723,587
|
|
|
$
9,429,050
|
|
|
$
9,521,386
|
|
|
$
9,523,184
|
|
|
Earning
assets
|
|
8,506,333
|
|
|
8,638,390
|
|
|
8,622,067
|
|
|
8,750,078
|
|
|
8,761,435
|
|
|
Portfolio
loans
|
|
5,317,771
|
|
|
5,501,400
|
|
|
5,517,726
|
|
|
5,508,528
|
|
|
5,632,432
|
|
|
Allowance
for loan losses
|
|
121,998
|
|
|
135,968
|
|
|
152,154
|
|
|
172,509
|
|
|
190,163
|
|
|
Deposits
|
|
7,181,654
|
|
|
7,323,753
|
|
|
7,317,653
|
|
|
7,441,693
|
|
|
7,452,137
|
|
|
Long-term
debt
|
|
851,723
|
|
|
852,776
|
|
|
853,333
|
|
|
853,912
|
|
|
856,206
|
|
|
Shareholders' equity
|
|
1,364,250
|
|
|
1,345,817
|
|
|
1,061,519
|
|
|
1,028,494
|
|
|
1,017,082
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Ratios
(annualized)(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
average assets
|
|
0.96
|
%
|
|
0.86
|
%
|
|
12.93
|
%
|
|
1.05
|
%
|
|
0.76
|
%
|
|
Return on
average shareholders' equity
|
|
6.78
|
|
|
6.20
|
|
|
114.87
|
|
|
9.72
|
|
|
7.12
|
|
|
Average
shareholders' equity / average assets
|
|
14.20
|
|
|
13.84
|
|
|
11.26
|
|
|
10.80
|
|
|
10.68
|
|
|
Net
interest margin (FTE) (3)
|
|
3.50
|
|
|
3.57
|
|
|
3.60
|
|
|
3.56
|
|
|
3.62
|
|
|
Efficiency
ratio (non-GAAP) (4)
|
|
66.65
|
|
|
65.20
|
|
|
65.99
|
|
|
65.20
|
|
|
61.39
|
|
|
Allowance
for loan losses as a percent of portfolio loans
|
|
2.10
|
|
|
2.25
|
|
|
2.47
|
|
|
2.77
|
|
|
3.12
|
|
|
Allowance
for loan losses as a percent of nonperforming loans
|
|
187.15
|
|
|
191.29
|
|
|
161.53
|
|
|
202.56
|
|
|
197.56
|
|
|
Allowance
for loan losses as a percent of nonperforming assets
|
|
162.38
|
|
|
141.69
|
|
|
144.85
|
|
|
168.87
|
|
|
168.97
|
|
|
Nonperforming loans as a percent of portfolio
loans
|
|
1.12
|
|
|
1.18
|
|
|
1.53
|
|
|
1.37
|
|
|
1.58
|
|
|
Nonperforming assets as a percent of total loans plus
ORAA(5)
|
|
1.29
|
|
|
1.58
|
|
|
1.69
|
|
|
1.63
|
|
|
1.84
|
|
|
Nonperforming assets as a percent of total
assets
|
|
0.71
|
|
|
0.89
|
|
|
0.97
|
|
|
0.95
|
|
|
1.08
|
|
|
Ratio of
net charge-offs during period to average portfolio loans
|
|
1.20
|
|
|
1.39
|
|
|
1.62
|
|
|
2.05
|
|
|
2.30
|
|
|
Leverage
ratio
|
|
9.95
|
|
|
9.66
|
|
|
9.77
|
|
|
8.71
|
|
|
8.45
|
|
|
Tier 1
capital ratio
|
|
15.67
|
|
|
15.09
|
|
|
14.70
|
|
|
13.70
|
|
|
13.51
|
|
|
Total
capital ratio
|
|
16.93
|
|
|
16.35
|
|
|
15.96
|
|
|
14.97
|
|
|
14.84
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)Includes participating shares which are
restricted stock units and restricted shares.
|
|
|
|
|
|
(2)Financial ratios are based upon
continuing operations.
|
|
|
|
|
|
(3)Net interest margin is presented on an
annual basis, includes taxable equivalent adjustments to interest
income and is based on a tax rate of 35%.
|
|
(4)The efficiency ratio measures how
efficiently a bank spends its revenues. The formula is:
(noninterest expense - goodwill impairment)/(net interest income +
taxable equivalent adjustment
+ total noninterest income - investment securities gains
(losses)).
|
|
(5)Other real estate assets acquired
("ORAA") include loans held for sale.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan Portfolios
(in
thousands)
|
December 31, 2012
|
|
September
30, 2012
|
|
June 30,
2012
|
|
March 31,
2012
|
|
December
31, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land
hold
|
$
4,366
|
|
$
4,984
|
|
$
5,119
|
|
$
5,387
|
|
$
6,542
|
|
|
Land
development
|
6,258
|
|
7,521
|
|
7,006
|
|
7,226
|
|
13,104
|
|
|
Construction
|
8,860
|
|
6,689
|
|
4,591
|
|
6,410
|
|
5,847
|
|
|
Income
producing
|
689,765
|
|
767,202
|
|
803,546
|
|
877,461
|
|
913,755
|
|
|
Owner-occupied
|
533,099
|
|
549,205
|
|
597,147
|
|
590,575
|
|
605,113
|
|
|
Total commercial real estate
|
1,242,348
|
|
1,335,601
|
|
1,417,409
|
|
1,487,059
|
|
1,544,361
|
|
|
Commercial
and industrial
|
1,656,292
|
|
1,688,996
|
|
1,711,411
|
|
1,657,140
|
|
1,543,529
|
|
|
Total commercial
|
2,898,640
|
|
3,024,597
|
|
3,128,820
|
|
3,144,199
|
|
3,087,890
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
|
546,513
|
|
570,295
|
|
588,144
|
|
611,166
|
|
637,245
|
|
|
Direct
consumer
|
844,240
|
|
865,777
|
|
881,070
|
|
903,238
|
|
933,314
|
|
|
Indirect
consumer
|
969,583
|
|
970,235
|
|
923,714
|
|
869,460
|
|
871,086
|
|
|
Total consumer
|
2,360,336
|
|
2,406,307
|
|
2,392,928
|
|
2,383,864
|
|
2,441,645
|
|
|
Total
portfolio loans
|
$
5,258,976
|
|
$
5,430,904
|
|
$
5,521,748
|
|
$
5,528,063
|
|
$
5,529,535
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Delinquency Rates By Loan
Portfolio
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2012
|
September
30, 2012
|
June 30,
2012
|
March 31,
2012
|
December
31, 2011
|
|
30 to 89
days past due
(in thousands)
|
$
|
% of
Portfolio
|
|
$
|
% of
Portfolio
|
|
$
|
% of
Portfolio
|
|
$
|
% of
Portfolio
|
|
$
|
% of
Portfolio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land
hold
|
$
---
|
---
|
%
|
$
---
|
---
|
%
|
$
---
|
---
|
%
|
$
---
|
---
|
%
|
$
21
|
0.32
|
%
|
|
Land
development
|
---
|
---
|
|
---
|
---
|
|
---
|
---
|
|
130
|
1.81
|
|
---
|
---
|
|
|
Construction
|
---
|
---
|
|
---
|
---
|
|
---
|
---
|
|
---
|
---
|
|
---
|
---
|
|
|
Income
producing
|
1,470
|
0.21
|
|
1,104
|
0.14
|
|
1,519
|
0.19
|
|
1,447
|
0.16
|
|
2,508
|
0.27
|
|
|
Owner-occupied
|
695
|
0.13
|
|
4,598
|
0.84
|
|
936
|
0.16
|
|
5,177
|
0.88
|
|
2,345
|
0.39
|
|
|
Total commercial real estate
|
2,165
|
0.17
|
|
5,702
|
0.43
|
|
2,455
|
0.17
|
|
6,754
|
0.45
|
|
4,874
|
0.32
|
|
|
Commercial
and industrial
|
1,949
|
0.12
|
|
880
|
0.05
|
|
1,565
|
0.09
|
|
2,887
|
0.17
|
|
2,454
|
0.16
|
|
|
Total commercial
|
4,114
|
0.14
|
|
6,582
|
0.22
|
|
4,020
|
0.13
|
|
9,641
|
0.31
|
|
7,328
|
0.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
|
7,641
|
1.40
|
|
6,029
|
1.06
|
|
7,731
|
1.31
|
|
7,568
|
1.24
|
|
9,544
|
1.50
|
|
|
Direct
consumer
|
13,354
|
1.58
|
|
11,435
|
1.32
|
|
12,396
|
1.41
|
|
14,002
|
1.55
|
|
17,810
|
1.91
|
|
|
Indirect
consumer
|
8,356
|
0.86
|
|
7,514
|
0.77
|
|
8,504
|
0.92
|
|
8,780
|
1.01
|
|
13,067
|
1.50
|
|
|
Total consumer
|
29,351
|
1.24
|
|
24,978
|
1.04
|
|
28,631
|
1.20
|
|
30,350
|
1.27
|
|
40,421
|
1.66
|
|
|
Total
delinquent loans
|
$
33,465
|
0.64
|
|
$
31,560
|
0.58
|
|
$
32,651
|
0.59
|
|
$
39,991
|
0.72
|
|
$
47,749
|
0.86
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming Assets
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2012
|
September
30, 2012
|
June 30,
2012
|
March 31,
2012
|
December
31, 2011
|
|
(in
thousands)
|
$
|
% of
Portfolio
|
|
$
|
% of
Portfolio
|
|
$
|
% of
Portfolio
|
|
$
|
% of
Portfolio
|
|
$
|
% of
Portfolio
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land
hold
|
$
291
|
6.67
|
%
|
$
326
|
6.54
|
%
|
$
326
|
6.37
|
%
|
$
---
|
---
|
%
|
$
---
|
---
|
%
|
|
Land
development
|
3
|
0.04
|
|
3
|
0.04
|
|
3
|
0.05
|
|
207
|
2.87
|
|
213
|
1.62
|
|
|
Construction
|
---
|
---
|
|
---
|
---
|
|
---
|
---
|
|
150
|
2.34
|
|
150
|
2.57
|
|
|
Income
producing
|
8,117
|
1.18
|
|
12,904
|
1.68
|
|
19,408
|
2.42
|
|
18,566
|
2.12
|
|
21,171
|
2.32
|
|
|
Owner-occupied
|
12,068
|
2.26
|
|
13,146
|
2.39
|
|
18,187
|
3.05
|
|
20,716
|
3.51
|
|
23,798
|
3.93
|
|
|
Total commercial real estate
|
20,479
|
1.65
|
|
26,379
|
1.98
|
|
37,924
|
2.68
|
|
39,639
|
2.67
|
|
45,332
|
2.94
|
|
|
Commercial
and industrial
|
6,162
|
0.37
|
|
9,190
|
0.54
|
|
21,676
|
1.27
|
|
14,629
|
0.88
|
|
16,946
|
1.10
|
|
|
Total nonaccruing commercial
|
26,641
|
0.92
|
|
35,569
|
1.18
|
|
59,600
|
1.90
|
|
54,268
|
1.73
|
|
62,278
|
2.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
|
17,500
|
3.20
|
|
15,271
|
2.68
|
|
13,474
|
2.29
|
|
11,137
|
1.82
|
|
11,312
|
1.78
|
|
|
Direct
consumer
|
12,720
|
1.51
|
|
10,552
|
1.22
|
|
9,263
|
1.05
|
|
8,895
|
0.98
|
|
12,115
|
1.30
|
|
|
Indirect
consumer
|
2,083
|
0.21
|
|
2,391
|
0.25
|
|
1,875
|
0.20
|
|
1,074
|
0.12
|
|
953
|
0.11
|
|
|
Total nonaccruing consumer
|
32,303
|
1.37
|
|
28,214
|
1.17
|
|
24,612
|
1.03
|
|
21,106
|
0.89
|
|
24,380
|
1.00
|
|
|
Total nonaccruing loans
|
58,944
|
1.12
|
|
63,783
|
1.17
|
|
84,212
|
1.53
|
|
75,374
|
1.37
|
|
86,658
|
1.57
|
|
|
Loans 90+
days still accruing
|
68
|
---
|
|
60
|
---
|
|
59
|
---
|
|
164
|
---
|
|
770
|
0.01
|
|
|
Total nonperforming portfolio loans
|
59,012
|
1.12
|
|
63,843
|
1.18
|
|
84,271
|
1.53
|
|
75,538
|
1.37
|
|
87,428
|
1.58
|
|
|
Nonperforming held for sale
|
3,190
|
|
|
16,650
|
|
|
887
|
|
|
3,264
|
|
|
2,372
|
|
|
|
Other
repossessed assets acquired
|
5,811
|
|
|
5,700
|
|
|
8,817
|
|
|
11,803
|
|
|
12,422
|
|
|
|
Total nonperforming
assets
|
$
68,013
|
|
|
$
86,193
|
|
|
$
93,975
|
|
|
$
90,605
|
|
|
$
102,222
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructured loans still accruing
|
$
21,033
|
|
|
$
21,433
|
|
|
$
18,187
|
|
|
$
17,911
|
|
|
$
32,347
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
inflows
|
$
4,769
|
|
|
$
4,572
|
|
|
$
23,828
|
|
|
$
14,027
|
|
|
$
13,269
|
|
|
|
Commercial
outflows
|
(13,697)
|
|
|
(28,603)
|
|
|
(18,496)
|
|
|
(22,037)
|
|
|
(20,730)
|
|
|
|
Net
change
|
$
(8,928)
|
|
|
$
(24,031)
|
|
|
$
5,332
|
|
|
$
(8,010)
|
|
|
$
(7,461)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Charge-Offs
|
|
|
|
Three
Months Ended
|
|
December 31, 2012
|
September
30, 2012
|
June 30,
2012
|
March 31,
2012
|
December
31, 2011
|
|
(in
thousands)
|
$
|
% of
Portfolio*
|
|
$
|
% of
Portfolio*
|
|
$
|
% of
Portfolio*
|
|
$
|
% of
Portfolio*
|
|
$
|
% of
Portfolio*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land
hold
|
$
133
|
12.10
|
%
|
$
---
|
---
|
%
|
$
(58)
|
(4.58)
|
%
|
$
---
|
---
|
%
|
$
(33)
|
(2.00)
|
%
|
|
Land
development
|
(14)
|
(0.89)
|
|
(8)
|
(0.45)
|
|
100
|
5.76
|
|
(83)
|
(4.64)
|
|
3,079
|
93.21
|
|
|
Construction
|
(1)
|
(0.04)
|
|
(21)
|
(1.24)
|
|
14
|
1.24
|
|
(101)
|
(6.33)
|
|
(4)
|
(0.24)
|
|
|
Income
producing
|
1,660
|
0.96
|
|
2,582
|
1.34
|
|
3,100
|
1.55
|
|
4,151
|
1.90
|
|
11,924
|
5.18
|
|
|
Owner-occupied
|
916
|
0.68
|
|
1,891
|
1.37
|
|
2,384
|
1.61
|
|
2,537
|
1.73
|
|
5,791
|
3.80
|
|
|
Total commercial real estate
|
2,694
|
0.86
|
|
4,444
|
1.32
|
|
5,540
|
1.57
|
|
6,504
|
1.76
|
|
20,757
|
5.33
|
|
|
Commercial
and industrial
|
743
|
0.18
|
|
5,363
|
1.26
|
|
5,249
|
1.23
|
|
3,029
|
0.74
|
|
1,032
|
0.27
|
|
|
Total commercial
|
3,437
|
0.47
|
|
9,807
|
1.29
|
|
10,789
|
1.39
|
|
9,533
|
1.22
|
|
21,789
|
2.80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
|
4,024
|
2.93
|
|
2,515
|
1.75
|
|
3,506
|
2.40
|
|
5,076
|
3.34
|
|
1,170
|
0.73
|
|
|
Direct
consumer
|
5,614
|
2.65
|
|
4,790
|
2.20
|
|
5,666
|
2.59
|
|
10,935
|
4.87
|
|
6,930
|
2.95
|
|
|
Indirect
consumer
|
2,925
|
1.20
|
|
2,078
|
0.85
|
|
2,225
|
0.97
|
|
2,572
|
1.19
|
|
2,746
|
1.25
|
|
|
Total consumer
|
12,563
|
2.12
|
|
9,383
|
1.55
|
|
11,397
|
1.92
|
|
18,583
|
3.14
|
|
10,846
|
1.76
|
|
|
Total net charge-offs
|
$
16,000
|
1.20
|
|
$
19,190
|
1.39
|
|
$
22,186
|
1.62
|
|
$
28,116
|
2.05
|
|
$
32,635
|
2.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
Represents an annualized rate.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of Loan Loss
Experience
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
|
|
|
|
|
|
December 31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
|
(in
thousands)
|
|
2012
|
|
2012
|
|
2012
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for loan losses - beginning of period
|
|
$
122,125
|
|
$
136,120
|
|
$
153,007
|
|
$
172,726
|
|
$
190,354
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision
for loan losses
|
|
4,314
|
|
5,195
|
|
5,299
|
|
8,397
|
|
15,007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-offs:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
and industrial
|
|
793
|
|
4,552
|
|
3,667
|
|
2,388
|
|
1,489
|
|
|
Small
business
|
|
1,556
|
|
1,039
|
|
2,271
|
|
1,265
|
|
399
|
|
|
Commercial
real estate
|
|
3,100
|
|
5,452
|
|
8,093
|
|
8,997
|
|
21,581
|
|
|
Total
commercial
|
|
5,449
|
|
11,043
|
|
14,031
|
|
12,650
|
|
23,470
|
|
|
Residential mortgage
|
|
4,612
|
|
3,261
|
|
3,972
|
|
5,210
|
|
1,366
|
|
|
Direct
consumer
|
|
6,798
|
|
6,067
|
|
7,168
|
|
11,527
|
|
7,544
|
|
|
Indirect
consumer
|
|
3,835
|
|
3,172
|
|
3,157
|
|
3,251
|
|
3,229
|
|
|
Total
charge-offs
|
|
20,694
|
|
23,543
|
|
28,328
|
|
32,638
|
|
35,609
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
and industrial
|
|
1,038
|
|
108
|
|
577
|
|
376
|
|
609
|
|
|
Small
business
|
|
568
|
|
120
|
|
112
|
|
248
|
|
248
|
|
|
Commercial
real estate
|
|
406
|
|
1,008
|
|
2,553
|
|
2,493
|
|
824
|
|
|
Total
commercial
|
|
2,012
|
|
1,236
|
|
3,242
|
|
3,117
|
|
1,681
|
|
|
Residential mortgage
|
|
588
|
|
746
|
|
466
|
|
134
|
|
197
|
|
|
Direct
consumer
|
|
1,184
|
|
1,277
|
|
1,502
|
|
592
|
|
613
|
|
|
Indirect
consumer
|
|
910
|
|
1,094
|
|
932
|
|
679
|
|
483
|
|
|
Total
recoveries
|
|
4,694
|
|
4,353
|
|
6,142
|
|
4,522
|
|
2,974
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
charge-offs
|
|
16,000
|
|
19,190
|
|
22,186
|
|
28,116
|
|
32,635
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for loan losses - end of period
|
|
$
110,439
|
|
$ 122,125
|
|
$ 136,120
|
|
$ 153,007
|
|
$ 172,726
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Reconciliation
|
|
|
|
|
|
|
December 31,
|
September
30,
|
June
30,
|
March
31,
|
December
31,
|
|
(in
thousands)
|
2012
|
2012
|
2012
|
2012
|
2011
|
|
Efficiency Ratio (non-GAAP)
|
|
|
|
|
|
|
Net
interest income (A)
|
$
73,170
|
$
75,805
|
$
75,680
|
$
76,119
|
$
78,049
|
|
Taxable
equivalent adjustment (B)
|
1,468
|
1,503
|
1,532
|
1,571
|
1,670
|
|
Investment
securities gains (C)
|
---
|
---
|
---
|
---
|
38
|
|
Noninterest income (D)
|
22,024
|
23,710
|
22,345
|
24,240
|
24,363
|
|
Noninterest expense (E)
|
65,128
|
72,055
|
66,339
|
67,101
|
66,640
|
|
(Gains)
losses on ORE and ORE expenses (F)
|
(376)
|
1,264
|
93
|
65
|
2,076
|
|
Intangible
amortization (G)
|
484
|
513
|
545
|
578
|
688
|
|
Merger-related expenses (H)
|
597
|
4,411
|
---
|
---
|
---
|
|
Efficiency ratio:
(E-F-G-H)/(A+B-C+D)(non-GAAP)
|
66.65%
|
65.20%
|
65.99%
|
65.20%
|
61.39%
|
|
|
|
|
|
|
|
Tangible Common Equity to Tangible Assets
(non-GAAP)
|
|
|
|
|
|
Total
assets
|
$
9,586,683
|
$
9,724,790
|
$
9,670,493
|
$
9,577,346
|
$
9,462,849
|
|
Goodwill
|
(318,150)
|
(318,150)
|
(318,150)
|
(318,150)
|
(318,150)
|
|
Other
intangible assets
|
(5,308)
|
(5,792)
|
(6,305)
|
(6,850)
|
(7,428)
|
|
Tangible
assets (non-GAAP)
|
$ 9,263,225
|
$ 9,400,848
|
$ 9,346,038
|
$ 9,252,346
|
$ 9,137,271
|
|
|
|
|
|
|
|
Total
shareholders' equity
|
$
1,370,505
|
$
1,358,197
|
$
1,335,855
|
$
1,044,619
|
$
1,019,537
|
|
Goodwill
|
(318,150)
|
(318,150)
|
(318,150)
|
(318,150)
|
(318,150)
|
|
Other
intangible assets
|
(5,308)
|
(5,792)
|
(6,305)
|
(6,850)
|
(7,428)
|
|
Tangible
equity (non-GAAP)
|
$ 1,047,047
|
$ 1,034,255
|
$ 1,011,400
|
$ 719,619
|
$ 693,959
|
|
|
|
|
|
|
|
Tangible
equity
|
$
1,047,047
|
$
1,034,255
|
$
1,011,400
|
$
719,619
|
$
693,959
|
|
Preferred
stock
|
(292,473)
|
(290,580)
|
(288,723)
|
(286,901)
|
(285,114)
|
|
Tangible
common equity (non-GAAP)
|
$
754,574
|
$ 743,675
|
$ 722,677
|
$ 432,718
|
$ 408,845
|
|
|
|
|
|
|
|
Tier
1 Common Equity (non-GAAP)
|
|
|
|
|
|
|
Total
shareholders' equity
|
$
1,370,505
|
$
1,358,197
|
$
1,335,855
|
$
1,044,619
|
$
1,019,537
|
|
Qualifying
capital securities
|
73,667
|
73,667
|
73,667
|
73,667
|
73,667
|
|
Goodwill
|
(318,150)
|
(318,150)
|
(318,150)
|
(318,150)
|
(318,150)
|
|
Accumulated other comprehensive loss
|
13,213
|
5,649
|
10,268
|
1,955
|
5,820
|
|
Disallowed
deferred tax asset
|
(241,535)
|
(235,461)
|
(235,529)
|
---
|
---
|
|
Other
intangible assets
|
(5,308)
|
(5,792)
|
(6,305)
|
(6,850)
|
(7,428)
|
|
Tier 1
capital (regulatory)
|
$
892,392
|
$ 878,110
|
$ 859,806
|
$ 795,241
|
$ 773,446
|
|
|
|
|
|
|
|
Tier 1
capital (regulatory)
|
$
892,392
|
$
878,110
|
$
859,806
|
$
795,241
|
$
773,446
|
|
Qualifying
capital securities
|
(73,667)
|
(73,667)
|
(73,667)
|
(73,667)
|
(73,667)
|
|
Preferred
stock
|
(292,473)
|
(290,580)
|
(288,723)
|
(286,901)
|
(285,114)
|
|
Total Tier
1 common equity (non-GAAP)
|
$
526,252
|
$ 513,863
|
$ 497,416
|
$ 434,673
|
$ 414,665
|
|
|
|
|
|
|
|
Net
risk-weighted assets (regulatory)
|
$
5,695,254
|
$
5,821,748
|
$
5,851,871
|
$
5,803,811
|
$
5,723,333
|
|
|
|
|
|
|
|
Equity
to assets
|
14.30%
|
13.97%
|
13.81%
|
10.91%
|
10.77%
|
|
Tier 1
common equity(non-GAAP)
|
9.24
|
8.83
|
8.50
|
7.49
|
7.24
|
|
Tangible equity to tangible
assets(non-GAAP)
|
11.30
|
11.00
|
10.82
|
7.78
|
7.59
|
|
Tangible common equity to tangible
assets(non-GAAP)
|
8.15
|
7.91
|
7.73
|
4.68
|
4.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Reconciliation
|
|
|
|
|
|
|
Adjusted Earnings Per Share
|
|
Twelve
Months Ended
|
|
|
|
December
31,
|
|
|
(in thousands, except per share
amounts)
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
Earnings Per Share
|
|
|
|
|
|
|
Diluted
net income (loss) per share
|
|
$
8.61
|
|
$
(0.41)
|
|
|
Restoration of the deferred tax asset
|
|
6.82
|
|
---
|
|
|
Diluted
net income (loss) per share (non-GAAP)
|
|
$
1.79
|
|
$
(0.41)
|
|
|
|
|
|
|
|
|
An
itemized reconciliation between net income on a GAAP basis and net
income excluding the benefit
of restoring the deferred tax asset (non-GAAP) follows:
|
|
|
|
|
|
|
|
|
Numerator:
|
|
|
|
|
|
|
Net
income
|
|
$
372,275
|
|
$
6,667
|
|
|
Restoration of the deferred tax asset
|
|
(275,484)
|
|
---
|
|
|
Net income
(non-GAAP)
|
|
96,791
|
|
6,667
|
|
|
Dividend
on redeemable preferred stock
|
|
(24,347)
|
|
(22,985)
|
|
|
Net income
(loss) attributable to common shareholders (non-GAAP)
|
|
72,444
|
|
(16,318)
|
|
|
Net income
allocated to participating securities
|
|
1,694
|
|
---
|
|
|
Net income
(loss) after allocation to participating securities
(non-GAAP)
|
|
$
70,750
|
|
$ (16,318)
|
|
|
|
|
|
|
|
|
Denominator:
|
|
|
|
|
|
|
Weighted
average shares outstanding for basic and dilutive earnings per
common share
|
|
39,475
|
|
39,422
|
|
|
|
|
|
|
|
|
Basic net
income (loss) per common share (non-GAAP)
|
|
$
1.79
|
|
$
(0.41)
|
|
|
Diluted
net income (loss) per common share (non-GAAP)
|
|
1.79
|
|
(0.41)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax pre-provision profit
(non-GAAP)
|
Three
Months Ended
|
|
(in thousands)
|
December 31,
2012
|
|
September 30,
2012
|
|
June
30,
2012
|
|
March
31,
2012
|
|
December
31,
2011
|
|
|
Net
income
|
$
23,247
|
|
$
20,991
|
|
$
303,176
|
|
$
24,861
|
|
$
18,244
|
|
|
Income tax
provision (benefit)
|
2,505
|
|
1,274
|
|
(276,789)
|
|
---
|
|
2,521
|
|
|
Provision
for loan losses
|
4,314
|
|
5,195
|
|
5,299
|
|
8,397
|
|
15,007
|
|
|
Net losses
(gains) on loans held for sale
|
1,723
|
|
184
|
|
(6)
|
|
(916)
|
|
217
|
|
|
Investment
securities gains
|
---
|
|
---
|
|
---
|
|
---
|
|
(38)
|
|
|
Losses
(gains) on other real estate (ORE)
|
(596)
|
|
941
|
|
(173)
|
|
(385)
|
|
1,081
|
|
|
Merger-related expenses(1)
|
597
|
|
4,411
|
|
---
|
|
---
|
|
---
|
|
|
Fair-value
adjustment on bank owned life insurance(2)
|
47
|
|
(31)
|
|
118
|
|
(205)
|
|
(100)
|
|
|
Fair-value
adjustment on swaps (2)
|
(85)
|
|
83
|
|
74
|
|
(61)
|
|
(46)
|
|
|
Pre-tax pre-provision profit (non-GAAP)
|
$
31,752
|
|
$
33,048
|
|
$
31,699
|
|
$
31,691
|
|
$
36,886
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)Merger-related expenses are contained
in line item "Professional services" on Consolidated Statements of
Operations.
|
|
(2)Fair-value adjustment amounts contained
in line item "Other income" on Consolidated Statements of
Operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest Income and Noninterest
Expense
|
|
Three
Months Ended
|
|
|
December 31,
|
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
(in
thousands)
|
|
2012
|
|
2012
|
|
2012
|
|
2012
|
|
2011
|
|
Service
charges on deposit accounts
|
|
$
9,414
|
|
$
9,554
|
|
$
9,355
|
|
$
8,985
|
|
$
9,724
|
|
Trust
fees
|
|
3,782
|
|
3,635
|
|
3,582
|
|
3,602
|
|
3,747
|
|
Mortgage
and other loan income
|
|
2,265
|
|
2,028
|
|
1,952
|
|
1,858
|
|
2,705
|
|
Brokerage
and investment fees
|
|
1,569
|
|
1,831
|
|
1,331
|
|
1,324
|
|
1,243
|
|
Card-based
and other nondeposit fees
|
|
4,367
|
|
4,431
|
|
4,444
|
|
4,265
|
|
4,305
|
|
Net gains
(losses) on loans held for sale
|
|
(1,723)
|
|
(184)
|
|
6
|
|
916
|
|
(217)
|
|
Investment
securities gains
|
|
---
|
|
---
|
|
---
|
|
---
|
|
38
|
|
Other
income
|
|
2,350
|
|
2,415
|
|
1,675
|
|
3,290
|
|
2,818
|
|
Total
noninterest income
|
|
$
22,024
|
|
$
23,710
|
|
$
22,345
|
|
$
24,240
|
|
$
24,363
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits
|
|
$
33,163
|
|
$
33,589
|
|
$
32,801
|
|
$
33,298
|
|
$
30,952
|
|
Occupancy
|
|
6,031
|
|
6,129
|
|
6,140
|
|
6,696
|
|
6,326
|
|
Professional services(1)
|
|
2,478
|
|
6,806
|
|
2,465
|
|
2,023
|
|
2,311
|
|
Equipment
|
|
2,858
|
|
2,937
|
|
2,904
|
|
3,303
|
|
3,326
|
|
Data
processing services
|
|
4,521
|
|
4,427
|
|
3,721
|
|
4,048
|
|
3,709
|
|
Advertising and public relations
|
|
1,014
|
|
1,847
|
|
1,708
|
|
1,335
|
|
1,298
|
|
Postage
and delivery
|
|
1,081
|
|
1,157
|
|
1,119
|
|
1,099
|
|
1,165
|
|
Other loan
expenses
|
|
3,650
|
|
3,121
|
|
3,266
|
|
3,186
|
|
3,497
|
|
(Gains)
losses on other real estate (ORE)
|
|
(596)
|
|
941
|
|
(173)
|
|
(385)
|
|
1,081
|
|
ORE
expenses
|
|
220
|
|
323
|
|
266
|
|
450
|
|
995
|
|
Intangible
asset amortization
|
|
484
|
|
513
|
|
545
|
|
578
|
|
688
|
|
Other
expense
|
|
10,224
|
|
10,265
|
|
11,577
|
|
11,470
|
|
11,292
|
|
Total
noninterest expense
|
|
$
65,128
|
|
$
72,055
|
|
$
66,339
|
|
$
67,101
|
|
$
66,640
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)Includes merger-related expenses of
$0.6 million and $4.4 million in the three months ended December
31, 2012 and September 30, 2012, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balances, Yields and
Rates
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
December 31, 2012
|
|
September
30, 2012
|
|
December
31, 2011
|
|
Average
|
Average
|
|
Average
|
Average
|
|
Average
|
Average
|
|
(in
thousands)
|
Balance
|
Rate
|
|
Balance
|
Rate
|
|
Balance
|
Rate
|
|
Earning Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Money
market investments
|
$
232,209
|
0.25
|
%
|
|
$
238,492
|
0.25
|
%
|
|
$
273,714
|
0.25
|
%
|
|
Investment
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
2,610,899
|
2.23
|
|
|
2,557,793
|
2.51
|
|
|
2,481,094
|
3.00
|
|
|
Tax-exempt
|
200,671
|
6.44
|
|
|
205,572
|
6.46
|
|
|
225,093
|
6.53
|
|
|
FHLB and
Federal Reserve stock
|
124,897
|
4.50
|
|
|
122,123
|
3.90
|
|
|
123,508
|
3.25
|
|
|
Portfolio
loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
and industrial
|
1,637,690
|
5.70
|
|
|
1,713,382
|
5.42
|
|
|
1,539,811
|
5.32
|
|
|
Commercial
real estate
|
1,292,806
|
4.77
|
|
|
1,382,873
|
4.81
|
|
|
1,620,479
|
5.02
|
|
|
Residential mortgage
|
559,113
|
4.25
|
|
|
580,002
|
4.36
|
|
|
647,491
|
4.55
|
|
|
Direct
consumer
|
855,386
|
5.69
|
|
|
873,057
|
5.81
|
|
|
943,445
|
5.98
|
|
|
Indirect
consumer
|
972,776
|
5.99
|
|
|
952,086
|
6.05
|
|
|
881,206
|
6.58
|
|
|
Total
portfolio loans
|
5,317,771
|
5.37
|
|
|
5,501,400
|
5.33
|
|
|
5,632,432
|
5.45
|
|
|
Loans held
for sale
|
19,886
|
2.48
|
|
|
13,010
|
3.40
|
|
|
25,594
|
3.12
|
|
|
Total earning assets
|
8,506,333
|
4.27
|
|
|
8,638,390
|
4.36
|
|
|
8,761,435
|
4.59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonearning Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and
due from banks
|
144,432
|
|
|
|
145,961
|
|
|
|
141,138
|
|
|
|
Premises
and equipment
|
91,260
|
|
|
|
92,775
|
|
|
|
98,526
|
|
|
|
Investment
security fair value adjustment
|
58,234
|
|
|
|
54,807
|
|
|
|
46,065
|
|
|
|
Other
nonearning assets
|
926,186
|
|
|
|
927,622
|
|
|
|
666,183
|
|
|
|
Allowance
for loan losses
|
(121,998)
|
|
|
|
(135,968)
|
|
|
|
(190,163)
|
|
|
|
Total
assets
|
$
9,604,447
|
|
|
|
$ 9,723,587
|
|
|
|
$ 9,523,184
|
|
|
|
Interest-Bearing Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits
|
$
1,067,575
|
0.12
|
|
|
$
1,073,294
|
0.13
|
|
|
$
937,024
|
0.18
|
|
|
Savings
deposits
|
2,572,107
|
0.18
|
|
|
2,602,216
|
0.20
|
|
|
2,645,821
|
0.31
|
|
|
Time
deposits
|
1,741,846
|
1.53
|
|
|
1,825,144
|
1.55
|
|
|
2,269,233
|
1.73
|
|
|
Short-term
borrowings
|
44,817
|
0.10
|
|
|
45,974
|
0.10
|
|
|
45,020
|
0.19
|
|
|
Long-term
debt
|
851,723
|
3.93
|
|
|
852,776
|
3.89
|
|
|
856,206
|
4.12
|
|
|
Total
interest-bearing liabilities
|
6,278,068
|
1.05
|
|
|
6,399,404
|
1.06
|
|
|
6,753,304
|
1.25
|
|
|
Noninterest-Bearing Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand
|
1,800,126
|
|
|
|
1,823,099
|
|
|
|
1,600,059
|
|
|
|
Other
liabilities
|
162,003
|
|
|
|
155,267
|
|
|
|
152,739
|
|
|
|
Shareholders' equity
|
1,364,250
|
|
|
|
1,345,817
|
|
|
|
1,017,082
|
|
|
|
Total
liabilities and shareholders' equity
|
$
9,604,447
|
|
|
|
$ 9,723,587
|
|
|
|
$ 9,523,184
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Spread
|
|
3.22
|
%
|
|
|
3.29
|
%
|
|
|
3.33
|
%
|
|
Contribution of noninterest bearing sources of
funds
|
|
0.28
|
|
|
|
0.28
|
|
|
|
0.29
|
|
|
Net
Interest Margin
|
|
3.50
|
%
|
|
|
3.57
|
%
|
|
|
3.62
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balances, Yields and
Rates
|
|
Twelve
Months Ended
|
|
|
December
31,
|
|
|
2012
|
|
2011
|
|
|
Average
|
Average
|
|
|
Average
|
Average
|
|
|
(in
thousands)
|
|
Balance
|
Rate
|
|
|
Balance
|
Rate
|
|
|
Earning Assets
|
|
|
|
|
|
|
|
|
|
Money
market investments
|
|
$
251,169
|
0.25
|
%
|
|
$
340,482
|
0.25
|
%
|
|
Investment
securities:
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
2,573,740
|
2.48
|
|
|
2,444,539
|
3.24
|
|
|
Tax-exempt
|
|
207,726
|
6.45
|
|
|
250,098
|
6.64
|
|
|
FHLB and
Federal Reserve stock
|
|
121,107
|
4.04
|
|
|
132,101
|
3.14
|
|
|
Portfolio
loans:
|
|
|
|
|
|
|
|
|
|
Commercial
and industrial
|
|
1,647,813
|
5.54
|
|
|
1,438,292
|
5.13
|
|
|
Commercial
real estate
|
|
1,415,141
|
4.92
|
|
|
1,776,292
|
5.12
|
|
|
Residential mortgage
|
|
591,946
|
4.32
|
|
|
700,257
|
4.65
|
|
|
Direct
consumer
|
|
884,745
|
5.82
|
|
|
981,396
|
6.04
|
|
|
Indirect
consumer
|
|
921,429
|
6.15
|
|
|
856,279
|
6.65
|
|
|
Total
portfolio loans
|
|
5,461,074
|
5.40
|
|
|
5,752,516
|
5.45
|
|
|
Loans held
for sale
|
|
14,091
|
3.28
|
|
|
26,451
|
3.52
|
|
|
Total earning assets
|
|
8,628,907
|
4.38
|
|
|
8,946,187
|
4.64
|
|
|
Nonearning Assets
|
|
|
|
|
|
|
|
|
|
Cash and
due from banks
|
|
143,639
|
|
|
|
142,721
|
|
|
|
Premises
and equipment
|
|
93,953
|
|
|
|
101,009
|
|
|
|
Investment
security fair value adjustment
|
|
54,149
|
|
|
|
44,712
|
|
|
|
Other
nonearning assets
|
|
795,051
|
|
|
|
663,477
|
|
|
|
Allowance
for loan losses
|
|
(145,566)
|
|
|
|
(228,509)
|
|
|
|
Total
assets
|
|
$ 9,570,133
|
|
|
|
$ 9,669,597
|
|
|
|
Interest-Bearing Liabilities
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits
|
|
$
1,026,098
|
0.14
|
|
|
$
953,187
|
0.21
|
|
|
Savings
deposits
|
|
2,639,803
|
0.22
|
|
|
2,636,422
|
0.35
|
|
|
Time
deposits
|
|
1,902,397
|
1.58
|
|
|
2,489,703
|
1.85
|
|
|
Short-term
borrowings
|
|
41,676
|
0.13
|
|
|
42,760
|
0.18
|
|
|
Long-term
debt
|
|
852,932
|
3.94
|
|
|
898,501
|
4.15
|
|
|
Total
interest-bearing liabilities
|
|
6,462,906
|
1.10
|
|
|
7,020,573
|
1.35
|
|
|
Noninterest-Bearing Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand
|
|
1,747,544
|
|
|
|
1,503,430
|
|
|
|
Other
liabilities
|
|
158,816
|
|
|
|
151,833
|
|
|
|
Shareholders' equity
|
|
1,200,867
|
|
|
|
993,761
|
|
|
|
Total
liabilities and shareholders' equity
|
|
$ 9,570,133
|
|
|
|
$ 9,669,597
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Spread
|
|
|
3.28
|
%
|
|
|
3.29
|
%
|
|
Contribution of noninterest bearing sources of
funds
|
|
|
0.28
|
|
|
|
0.29
|
|
|
Net
Interest Margin
|
|
|
3.56
|
%
|
|
|
3.58
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Citizens Republic Bancorp, Inc.