Pacific Capital Bancorp Reports Second Quarter Financial Results.SANTA BARBARA Santa Barbara (săn'tə bär`brə, –bərə), city (1990 pop. 85,571), seat of Santa Barbara co., S Calif., on the Pacific Ocean; inc. 1850. , Calif. -- Pacific Capital Bancorp (Nasdaq:PCBC PCBC Propagating Cipher Block Chaining PCBC Pacific Coast Builder Conference PCBC Pembroke College Boat Club PCBC Purdue Contract Bridge Club (West Lafayette, Indiana) ), a community bank holding company with $7.2 billion in assets, today announced financial results for the second quarter ended June June: see month. 30, 2006. Net income for the second quarter was $11.5 million, compared with $14.4 million reported for the second quarter of 2005. Earnings per share for the second quarter of 2006 were $0.24, compared with $0.31 reported for the second quarter of 2005. Commenting on the second quarter results, William S William, crown prince of Germany William or Frederick William, 1882–1951, crown prince of Germany, son of William II. In World War I he commanded (1914) an army on the Western Front and was nominal commander in the German attack . Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs , Jr., President and Chief Executive Officer of Pacific Capital Bancorp, said, "We continue to excel in our revenue generation efforts, while falling short of our goals for deposit gathering and expense management. With annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. growth in the loan portfolio of more than 20% in the second quarter and non-interest income growth of 9% (excluding RAL 1. RAL - Rutherford Appleton Laboratory (UK). 2. RAL - An expert system. and RT income) over the prior year, we are doing a good job of attracting new customers to the bank and expanding existing relationships. During the second quarter, we saw particular strength in several loan portfolios including construction, commercial and industrial, residential real estate and home equity. We are also making steady progress on the regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. compliance and IT system conversion projects that have driven our higher expense levels in 2006, and we believe the expenses related to these efforts should decrease by the end of the year." RAL/RT Programs Through the first six months of 2006, the Company's Refund Anticipation Loan A (Tax) Refund Anticipation Loan (RAL) is a high interest rate short-term loan secured by a taxpayer’s expected tax refund. United States In the United States, the taxpayer commonly applies for the loan through a paid tax preparation firm. (RAL) and Refund TO REFUND. To pay back by the party who has received it, to the party who has paid it, money which ought not to have been paid. 2. On a deficiency of assets, executors and administrators cum testamento annexo, are entitled to have refunded to them legacies Transfer (RT) programs generated $87.7 million in pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta income, an increase of 36% over $64.5 million during the same period in 2005. Total volume for these programs was 6.7 million transactions during the first six months of 2006, a 19.6% increase over the 5.6 million transactions processed in the same period of the prior year. Income Statement Throughout this press release, the Company has presented certain amounts and ratios that are computed both with and without the impact of the Company's RAL/RT programs. The Company's management utilizes the non-RAL/RT information in the evaluation of its core banking operations and believes that the investment community also finds this information valuable. The impact of the RAL/RT programs on the consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: information prepared in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting is provided in tables at the end of this release. During the second quarter, total interest income was $113.2 million, compared with $86.3 million in the same quarter of 2005. Excluding RALs, total interest income was $108.4 million, which compares to $83.8 million in the second quarter of 2005. The increase in total interest income excluding RALs was primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to organic growth in the loan portfolio, the acquisition of First Bank of San Luis Obispo San Luis Obispo (săn l  `ĭs ōbĭs`pō), city (1990 pop. 41,958), seat of San Luis Obispo co., S Calif., near San Luis Obispo Bay; inc. 1856. (FBSLO FBSLO First Bank of San Luis Obispo (California) ) in August 2005, and to higher yields on loans.Total interest expense for the second quarter of 2006 was $43.8 million, compared with $24.6 million for the second quarter of 2005. Excluding RALs, total interest expense was $42.4 million in the second quarter of 2006, compared with $23.8 million in the same quarter of 2005. The increase in total interest expense excluding RALs resulted from the deposits and borrowings acquired with FBSLO, the organic growth in deposits over the past year, higher borrowings incurred to support loan growth, and higher rates paid on deposits and borrowings. Net interest income for the second quarter of 2006 was $69.4 million, compared with $61.7 million in the same quarter of 2005. Excluding RALs, net interest income for the second quarter of 2006 was $66.0 million, an increase of 10.1% over $60.0 million in the same quarter of 2005. Net interest margin for the second quarter of 2006 was 4.44%, which compares with 4.50% in the second quarter of 2005. Exclusive of RALs in both periods, net interest margin in the second quarter of 2006 was 4.24%, compared with 4.41% in the second quarter of 2005. This also compares with a net interest margin of 4.48% in the first quarter of 2006, exclusive of RALs. The decrease in net interest margin is primarily attributable to the Company utilizing higher cost funding sources, such as Fed Funds fed funds See federal funds. purchased and FHLB FHLB Federal Home Loan Bank advances to support the strong loan growth. Non-interest revenue was $22.3 million in the second quarter of 2006, compared with $18.0 million in the second quarter of 2005. Excluding the impact of the RAL/RT programs, non-interest revenue was $14.5 million in the second quarter of 2006, an increase of 9.4% over $13.3 million in the second quarter of 2005 largely driven by increases in debit card debit card, card that allows the cost of goods or services that are purchased to be deducted directly from the purchaser's checking account. They can also be used at automated teller machines for withdrawing cash from the user's checking account. fees, trust fees, and prepayment penalty Prepayment penalty A fee a borrower pays a lender when the borrower repays a loan before its scheduled time of maturity. fees. The Company's operating efficiency ratio for the second quarter of 2006 was 73.35%, compared with 59.01% in the same period last year. Excluding the impact of the RAL/RT programs in all periods, the Company's operating efficiency ratio for the second quarter of 2006 was 72.44%, compared with 58.32% in the same period last year and 67.97% in the first quarter of 2006. The increase in the operating efficiency ratio (excluding the impact of the RAL/RT programs) over the prior year is attributable to the following: 1) equipment depreciation and software amortization from the Q4 2005 implementation of the enterprise wide IT system; 2) investments in the Company's risk management infrastructure; 3) the use of consultants to assist with nonrecurring Non`re`cur´ring a. 1. Nonrecurrent; as, the costs of a layoff are considered as a nonrecurring expense s>. efforts for SOX/regulatory compliance efforts and further optimization optimization Field of applied mathematics whose principles and methods are used to solve quantitative problems in disciplines including physics, biology, engineering, and economics. of the core systems recently implemented; 4) one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. expenses incurred in the quarter ended June 30, 2006, for legal fees related to the debt refinancing Refinancing An extension and/or increase in amount of existing debt. and write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of software no longer in production, and 5) the adoption of SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 123R "Share-Based Payments." Balance Sheet Total gross loans were $5.23 billion at June 30, 2006, compared to $4.98 billion at March 31, 2006 and $4.26 billion at June 30, 2005. Excluding $61.5 million of RALs at March 31, 2006 and $11.6 million of RALs at June 30, 2006, total gross loans increased at an annualized rate of 24.6% during the second quarter of 2006. The growth in loans during the second quarter of 2006 included annualized increases of 74% in construction, 44% in commercial and industrial, and 19% in residential real estate loans. Total deposits were $4.84 billion at June 30, 2006, compared to $5.22 billion at March 31, 2006, and $4.62 billion at June 30, 2005. The decline in total deposits from the prior quarter is primarily attributable to the run-off run-off n (in contest, election) → desempate m (= extra race); carrera de desempate run-off n (in contest, election) → of short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. RAL deposits of $129 million and the transfer of a $100 million deposit by one customer to a trust account within the Company's Wealth Management division, as discussed in the prior quarter's earnings release. Asset Quality and Capital Ratios In the second quarter of 2006, the Company recorded a provision for credit losses of $6.0 million, compared with a provision of $7.9 million for the same period last year. Excluding RALs, the Company recorded a provision for credit losses of $6.8 million, compared with a provision of $4.8 million for the same period last year. The size of the provision for the second quarter of 2006 was primarily due to the larger than expected loan portfolio resulting from the strong loan growth in the quarter. All credit metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. indicate that the health of the portfolio remained relatively strong during the second quarter of 2006. At June 30, 2006, the allowance for credit losses (excluding RALs) was $52.9 million, or 1.01% of total loans, compared to $49.4 million, or 1.00% of total loans, at March 31, 2006. Exclusive of RALs, total nonperforming assets Nonperforming asset An asset that is not effectively producing income, such as an overdue loan. nonperforming asset An asset that produces no income. , which include nonperforming loans and other real estate owned Real Estate Owned Property owned by a lender - usually a bank - after an unsuccessful sale at a foreclosure auction. This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank: the minimum bid in most , were $19.2 million, or 0.27% of total assets, at June 30, 2006, compared with $17.8 million, or 0.26% of total assets, at March 31, 2006. The Company's ratio of allowance to nonperforming loans (excluding RALs) was 324% at June 30, 2006, compared to 331% at March 31, 2006. Excluding RALs, net charge-offs were $3.3 million for the three months ended June 30, 2006, compared with net charge-offs of $8.2 million for the three months ended March 31, 2006, and $2.7 million for the three months ended June 30, 2005. Annualized net charge-offs to total average loans (both excluding RALs) were 0.26% for the three months ended June 30, 2006, compared with 0.68% for the three months ended March 31, 2006, and 0.26% for the three months ended June 30, 2005. The Company's capital ratios continue to be above the well-capitalized guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. established by bank regulatory agencies regulatory agency Independent government commission charged by the legislature with setting and enforcing standards for specific industries in the private sector. The concept was invented by the U.S. . Profitability Ratios Profitability ratios Ratios that focus on how well a firm is performing. Profit margins measure performance with relation to sales. Rate of return ratios measure performance relative to some measure of size of the investment. Pacific Capital Bancorp's return on average equity (ROE A fictitious surname used for an unknown or anonymous person or for a hypothetical person in an illustration. A lawsuit is generally named for the persons who are parties to it. ) and return on average assets (ROA ROA See: Return on assets ROA See: Right of accumulation ROA See return on assets (ROA). ) for the second quarter of 2006 were 7.8% and 0.66%, respectively, compared to 11.5% and 0.94%, respectively, for the second quarter of 2005. Excluding the impact of the RAL/RT programs, the Company's ROE and ROA for the second quarter of 2006 were 8.17% and 0.56%, respectively, compared to 14.51% and 1.03%, respectively, for the second quarter of 2005. Outlook For the full year 2006, Pacific Capital Bancorp continues to expect fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of to range between $2.15 and $2.20. Commenting on the outlook for Pacific Capital Bancorp, Thomas said, "We are taking a number of steps to reduce our expense levels going forward. These include restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). our IT department, reassessing all non-revenue producing initiatives, optimizing our infrastructure for greater efficiency, and tying a portion of the compensation structure for senior management to meeting our operating efficiency ratio goals. We believe these actions will reduce the core bank's operating efficiency ratio to 65-68% for the fourth quarter of 2006 and help us drive further improvement in this area in the following years. "Our loan pipeline remains strong as we continue to cultivate cul·ti·vate tr.v. cul·ti·vat·ed, cul·ti·vat·ing, cul·ti·vates 1. a. To improve and prepare (land), as by plowing or fertilizing, for raising crops; till. b. new relationships within our traditional markets and generate incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. lending opportunities through our business development efforts in attractive adjacent markets. We are confident that we can continue to drive top-line growth while our expense management initiatives gain traction Traction Definition Traction is the use of a pulling force to treat muscle and skeleton disorders. Purpose Traction is usually applied to the arms and legs, the neck, the backbone, or the pelvis. ," said Thomas. Conference Call and Webcast The Company will hold a conference call today at 11:00 a.m. Eastern time / 8:00 a.m. Pacific time to discuss its second quarter 2006 results. To access a live webcast of the conference call, log on at the Investor Relations Investor relations The process by which the corporation communicates with its investors. page of the Company's website at www.pcbancorp.com. For those who cannot listen to the live broadcast, a replay of the conference call will be available shortly after the call at the same location. Pacific Capital Bancorp is the parent company of Pacific Capital Bank, N.A., a nationally chartered bank Chartered Bank A financial institution whose primary roles are to accept and safeguard monetary deposits from individuals and organizations, and to lend money out. The details vary from country to country, but usually a chartered bank in operation has obtained government permission that operates 48 branches under the local brand names of Santa Barbara Bank & Trust, First National Bank of Central California Central California can refer to one of several divisions or regions of the U.S state of California:
Forward Looking Statements This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. with respect to the financial condition, results of operation and businesses of Pacific Capital Bancorp. These include statements that relate to or are dependent on estimates or assumptions relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the prospects of continued loan and deposit growth, improved credit quality, the health of the capital markets, the Company's de novo [Latin, Anew.] A second time; afresh. A trial or a hearing that is ordered by an appellate court that has reviewed the record of a hearing in a lower court and sent the matter back to the original court for a new trial, as if it had not been previously heard nor decided. branching and acquisition efforts, the operating characteristics of the Company's income tax refund Tax refund Money back from the government when too much tax has been paid or withheld from a salary. loan and transfer programs and the economic conditions within its markets. These forward-looking statements involve certain risks and uncertainties, many of which are beyond the Company's control. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: (1) increased competitive pressure among financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. companies; (2) changes in the interest rate environment reducing interest margins or increasing interest rate risk; (3) deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. in general economic conditions, internationally, nationally or in California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). ; (4) the occurrence of terrorist acts; (5) reduced demand for or earnings derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. from the Company's income tax refund loan and refund transfer programs; (6) legislative or regulatory changes or litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. adversely affecting the businesses in which Pacific Capital Bancorp engages; (7) unfavorable conditions in the capital markets; (8) difficulties in opening additional branches or integrating acquisitions; and (9) other risks detailed in reports filed by Pacific Capital Bancorp with the Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made, and Pacific Capital Bancorp does not undertake to update forward-looking statements to reflect circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or or events that occur after the date the forward-looking statements are made. Non-GAAP Amounts and Measures This press release contains amounts and ratios that are computed excluding the results of operations of the RAL/RT programs and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. exclude asset and liability balances related to those programs. Because they relate to the filing of individual tax returns, these programs are activities conducted primarily during the first and second quarters of each year. These programs comprise To embrace, cover, or include; to confine within; to consist of. In the law governing patents—grants of an exclusive right or privilege to make, use, or sell an invention or product for a term of years—the term comprise one of the Company's operating segments for purposes of segment reporting segment reporting A type of financial reporting in which the firm discloses information by identifiable industry segments. For example, Union Pacific Corporation reports revenues, income, assets, depreciation, and capital expenditures for each of four in the Company's quarterly and annual reports to the SEC. The Company's Management believes analysts and investor find this information useful for the same reason that Management uses it internally, namely, it provides more comparability with virtually all of the rest of the Company's peers that do not operate such programs. The information that excludes balances and results of the RAL/RT programs is reconciled rec·on·cile v. rec·on·ciled, rec·on·cil·ing, rec·on·ciles v.tr. 1. To reestablish a close relationship between. 2. To settle or resolve. 3. to the consolidated information prepared in accordance with Generally Accepted Accounting Principles in several tables at the end of this release. In addition to the non-GAAP measures computed related to the Company's balances and results exclusive of its RAL and RT programs, this release contains other financial information determined by methods other than in accordance with GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). . Management uses these non-GAAP measures in their analysis of the business and its performance. In particular, net interest income, net interest margin and operating efficiency are calculated on a fully tax-equivalent basis ("FTE FTE Full-Time Equivalent FTE Full-Time Employee FTE Full-Time Equivalency FTE Full Time Employment FTE Foundation for Teaching Economics FTE Full Time Enrollment FTE For the Enterprise (SQL) FTE Fund for Theological Education "). Management believes that the measures calculated on a FTE basis provide a useful picture of net interest income, net interest margin and operating efficiency for comparative purposes. Net interest income and net interest margin on a FTE basis is determined by adjusting net interest income to reflect tax-exempt interest Tax-Exempt Interest Interest income that is exempt from federal income tax. Although it is not directly taxed, this income may still be required to determine other tax calculations such as social security benefits. income on an equivalent before-tax basis. The efficiency ratio also uses net interest income on a FTE basis. The assets, liabilities, and results of operations of the Company's refund programs are reported in its periodic filings with the SEC as a segment of its business. Because these are activities conducted by very few other financial institutions, users of the financial statements have indicated that they are interested in information for the Company exclusive of these programs so that they may compare the results of operations with financial institutions that have no comparable programs. The amounts and ratios may generally be computed from the information provided in the note to its financial statements that discloses segment information, but are computed and included in the press release for the convenience of those users.
Consolidated Balance Sheets
Dollars in Thousands (unaudited) (unaudited)
6/30/2006 3/31/2006 12/31/2005
Assets
Cash and Due From Banks $215,969 $163,176 $158,880
Securities 1,262,684 1,338,481 1,369,549
Loans
Real estate
Residential 1,232,988 1,176,520 1,128,318
Multi-family residential 272,229 268,331 256,857
Non-residential 1,172,675 1,153,304 1,160,864
Construction 454,197 383,427 374,500
Commercial loans 1,024,971 923,006 934,840
Home equity loans 349,419 327,868 319,195
Consumer loans 410,442 388,913 431,542
Tax refund loans 11,607 61,510 --
Leases 300,101 293,027 287,504
Other loans 1,675 1,933 3,666
----------- ----------- -----------
Gross Loans 5,230,304 4,977,839 4,897,286
Allowance for Credit Losses 53,638 54,676 55,598
----------- ----------- -----------
Total Loans, net 5,176,666 4,923,163 4,841,688
Premises and Fixed Assets 111,421 116,245 115,831
Accrued Interest Receivable 29,778 28,885 28,994
Goodwill 140,584 140,585 140,585
Other Intangible Assets 8,218 9,270 9,887
Other Assets 237,420 250,331 210,745
----------- ----------- -----------
Total Assets $7,182,740 $6,970,136 $6,876,159
=========== =========== ===========
Liabilities
Deposits
Non Interest Bearing Demand
Deposits $1,103,422 $1,161,005 $1,061,711
Interest bearing deposits:
NOW accounts 1,107,152 1,363,548 1,074,368
Money market deposit accounts 619,726 657,617 807,762
Other savings deposits 325,197 343,198 363,801
Time certificates of $100,000
or more 1,166,933 1,181,186 1,201,923
Other time deposits 519,709 517,386 508,301
----------- ----------- -----------
Total Interest Bearing Deposits 3,738,717 4,062,935 3,956,155
----------- ----------- -----------
Total Deposits 4,842,139 5,223,940 5,017,866
Fed Funds Purchased and
Securities Sold under Repurchase
Agreements 284,051 267,865 446,642
Long Term Debt and Other
Borrowings 1,374,964 765,703 793,895
Obligations under Capital Lease 9,420 9,368 9,317
Accrued Interest Payable and
Other Liabilities 74,302 103,451 63,183
----------- ----------- -----------
Total Liabilities 6,584,876 6,370,327 6,330,903
Shareholders' Equity 597,864 599,809 545,256
----------- ----------- -----------
Total Liabilities and
Shareholders' Equity $7,182,740 $6,970,136 $6,876,159
=========== =========== ===========
Total Consumer Loans, net of
Holiday Loans $410,442 $388,913 $373,971
Consolidated Balance Sheets
Dollars in Thousands (unaudited) (unaudited) % Change 6/30/2006 vs
9/30/2005 6/30/2005 3/31/2006 6/30/2005
Annualized
Assets
Cash and Due From
Banks $232,866 $147,846 129.4% 46.1%
Securities 1,408,991 1,416,126 (22.7%) (10.8%)
Loans
Real estate
Residential 1,067,306 994,626 19.2% 24.0%
Multi-family
residential 252,525 225,209 5.8% 20.9%
Non-residential 1,180,987 1,109,280 6.7% 5.7%
Construction 298,694 297,132 73.8% 52.9%
Commercial loans 891,563 810,222 44.2% 26.5%
Home equity loans 270,438 244,296 26.3% 43.0%
Consumer loans 395,678 305,964 22.1% 34.1%
Tax refund loans 1,831 7,491 (324.5%) 54.9%
Leases 278,318 265,242 9.7% 13.1%
Other loans 2,663 1,939 (53.4%) (13.6%)
----------- -----------
Gross Loans 4,640,003 4,261,401 20.3% 22.7%
Allowance for Credit
Losses 51,822 50,365 (7.6%) 6.5%
----------- -----------
Total Loans, net 4,588,181 4,211,036 20.6% 22.9%
Premises and Fixed
Assets 115,883 108,263 (16.6%) 2.9%
Accrued Interest
Receivable 26,169 24,742 12.4% 20.4%
Goodwill 144,476 109,745 (0.0%) 28.1%
Other Intangible
Assets 10,476 4,257 (45.4%) 93.0%
Other Assets 162,806 145,466 (20.6%) 63.2%
----------- -----------
Total Assets $6,689,848 $6,167,481 12.2% 16.5%
=========== ===========
Liabilities
Deposits
Non Interest Bearing
Demand Deposits $1,075,855 $1,064,602 (19.8%) 3.6%
Interest bearing
deposits:
NOW accounts 1,053,081 923,186 (75.2%) 19.9%
Money market deposit
accounts 857,792 661,574 (23.0%) (6.3%)
Other savings
deposits 380,932 379,359 (21.0%) (14.3%)
Time certificates of
$100,000 or more 1,021,783 1,087,509 (4.8%) 7.3%
Other time deposits 695,638 507,802 1.8% 2.3%
----------- -----------
Total Interest Bearing
Deposits 4,009,226 3,559,430 (31.9%) 5.0%
----------- -----------
Total Deposits 5,085,081 4,624,032 (29.2%) 4.7%
Fed Funds Purchased and
Securities Sold under
Repurchase Agreements 181,808 74,344 24.2% 282.1%
Long Term Debt and
Other Borrowings 827,751 875,335 318.3% 57.1%
Obligations under
Capital Lease 9,266 9,216 2.2% 2.2%
Accrued Interest
Payable and Other
Liabilities 59,844 59,430 (112.7%) 25.0%
----------- -----------
Total Liabilities 6,163,750 5,642,357 13.5% 16.7%
Shareholders' Equity 526,098 525,124 (1.3%) 13.9%
----------- -----------
Total Liabilities and
Shareholders' Equity $6,689,848 $6,167,481 12.2% 16.5%
=========== ===========
Total Consumer Loans,
net of Holiday Loans $395,678 $305,964 22.1% 34.1%
Consolidated Statements of Income (unaudited)
Dollars in Thousands
Three Months Ended 6/30/2006
Core
Consolidated Bank RAL/RT
Interest Income
Loans $98,811 $94,028 $4,783
Securities 14,394 14,394 --
Federal Funds Sold and Securities
Purchased under Resale Agreements -- (8) 8
------------ -------- -------
Total Interest Income 113,205 108,414 4,791
------------ -------- -------
Interest Expense
Deposits 27,837 27,355 482
Federal Funds Purchased and Securities
Sold under Repurchase Agreements 4,681 4,464 217
Other Borrowed Funds 11,261 10,576 685
------------ -------- -------
Total Interest Expense 43,779 42,395 1,384
------------ -------- -------
Net Interest Income 69,426 66,019 3,407
------------ -------- -------
Provision for Credit Losses
Provision for Credit Losses - RAL (881) -- (881)
Provision for Credit Losses - Core Bank 6,837 6,837 --
------------ -------- -------
Provision for Credit Losses 5,956 6,837 (881)
------------ -------- -------
Net Interest Income after Provision for
Credit Losses 63,470 59,182 4,288
------------ -------- -------
Non Interest Income
Service Charges on Deposits 4,108 4,108 --
Trust Fees 4,340 4,340 --
Refund Transfer Fees 5,110 -- 5,110
Other Service Charges, Commissions and
Fees, net 7,104 4,441 2,663
Gain on Sale of Tax Refund Loans, net -- -- --
Gain (Loss) on Securities, net -- -- --
Other Income 1,634 1,633 1
------------ -------- -------
Total Non Interest Income 22,296 14,522 7,774
------------ -------- -------
Non Interest Expense
Personnel 31,500 28,880 2,620
Occupancy Expense 4,580 4,381 199
Equipment Expense 2,602 2,403 199
RAL/RT Service Fees 2,663 -- 2,663
Other Expenses 27,078 23,808 3,270
------------ -------- -------
Total Non Interest Expense 68,423 59,472 8,951
------------ -------- -------
Net Income Before Taxes 17,343 14,232 3,111
Provision for Income Taxes 5,824 4,516 1,308
------------ -------- -------
Net Income $11,519 $9,716 $1,803
============ ======== =======
Earnings Per Share - Basic $0.25
Earning Per Share - Diluted $0.24
Average Number of Shares - Basic 46,734
Average Number of Shares - Diluted 47,091
SFAS 123R Impact
Net Earnings $11,519
Net Earnings Before the Effects of SFAS
123R(a) $11,858
Diluted Earning per Share ("EPS") $0.24
Diluted EPS Before the Effects of SFAS
123R(a) $0.24
Stock Option Expense Included in
earnings, pre tax $584
Three Months Ended 6/30/2005
Core Consolidated
Consolidated Bank RAL/RT % Change
Interest Income
Loans $72,198 $69,668 $2,530 36.9%
Securities 14,054 14,054 -- 2.4%
Federal Funds Sold and
Securities Purchased
under Resale Agreements 56 56 -- (100.0%)
------------ -------- -------
Total Interest Income 86,308 83,778 2,530 31.2%
------------ -------- -------
Interest Expense
Deposits 15,963 15,963 -- 74.4%
Federal Funds Purchased
and Securities Sold under
Repurchase Agreements 1,033 907 126 353.1%
Other Borrowed Funds 7,615 6,937 678 47.9%
------------ -------- -------
Total Interest Expense 24,611 23,807 804 77.9%
------------ -------- -------
Net Interest Income 61,697 59,971 1,726 12.5%
------------ -------- -------
Provision for Credit Losses
Provision for Credit
Losses - RAL 3,115 -- 3,115 (128.3%)
Provision for Credit
Losses - Core Bank 4,786 4,786 -- 42.9%
------------ -------- -------
Provision for Credit Losses 7,901 4,786 3,115 (24.6%)
------------ -------- -------
Net Interest Income after
Provision for Credit
Losses 53,796 55,185 (1,389) 18.0%
------------ -------- -------
Non Interest Income
Service Charges on
Deposits 4,272 4,272 -- (3.8%)
Trust Fees 4,014 4,014 -- 8.1%
Refund Transfer Fees 3,864 -- 3,864 32.2%
Other Service Charges,
Commissions and Fees, net 4,168 3,329 839 70.4%
Gain on Sale of Tax Refund
Loans, net -- -- -- --
Gain (Loss) on Securities,
net (621) (621) -- --
Other Income 2,282 2,281 1 (28.4%)
------------ -------- -------
Total Non Interest Income 17,979 13,275 4,704 24.0%
------------ -------- -------
Non Interest Expense
Personnel 24,463 23,159 1,304 28.8%
Occupancy Expense 4,086 3,911 175 12.1%
Equipment Expense 2,709 2,496 213 (3.9%)
RAL/RT Service Fees -- -- -- --
Other Expenses 17,075 14,445 2,630 58.6%
------------ -------- -------
Total Non Interest
Expense 48,333 44,011 4,322 41.6%
------------ -------- -------
Net Income Before Taxes 23,442 24,449 (1,007) (26.0%)
Provision for Income Taxes 8,999 9,422 (423) (35.3%)
------------ -------- -------
Net Income $14,443 $15,027 $(584) (20.2%)
============ ======== =======
Earnings Per Share - Basic $0.32
Earning Per Share - Diluted $0.31
Average Number of Shares -
Basic 45,844
Average Number of Shares -
Diluted 46,220
SFAS 123R Impact
Net Earnings $14,443
Net Earnings Before the
Effects of SFAS 123R(a) $14,744
Diluted Earning per Share
("EPS") $0.31
Diluted EPS Before the
Effects of SFAS 123R(a) $0.31
Stock Option Expense
Included in earnings, pre
tax $520
(a) Non GAAP measure
Effective as of the beginning of the year, the Company adopted
FASB Statement 123R, Share-Based Payment using the modified
prospective application method.
Accordingly, its results of operations for prior fiscal periods
have not been adjusted to include the cost relating to stock
options.
The Company's management utilizes the above Core Bank information in
the evaluation of its banking operations and believes that the
investment community also finds this information valuable to
understand the key drivers of the business.
Consolidated Statements of Income (unaudited)
Dollars in Thousands
Six Months Ended 6/30/2006
Consolidated Core Bank RAL/RT
Interest Income
Loans $301,156 $183,430 $117,726
Securities 29,015 29,015 --
Federal Funds Sold and Securities
Purchased under Resale Agreements 126 (464) 590
------------ --------- ---------
Total Interest Income 330,297 211,981 118,316
------------ --------- ---------
Interest Expense
Deposits 53,364 52,229 1,135
Federal Funds Purchased and
Securities Sold under Repurchase
Agreements 9,846 5,383 4,463
Other Borrowed Funds 22,521 21,158 1,363
------------ --------- ---------
Total Interest Expense 85,731 78,770 6,961
------------ --------- ---------
Net Interest Income 244,566 133,211 111,355
------------ --------- ---------
Provision for Credit Losses
Provision for Credit Losses - RAL 45,290 -- 45,290
Provision for Credit Losses - Core
Bank 8,812 8,812 --
------------ --------- ---------
Provision for Credit Losses 54,102 8,812 45,290
------------ --------- ---------
Net Interest Income after Provision
for Credit Losses 190,464 124,399 66,065
------------ --------- ---------
Non Interest Income
Service Charges on Deposits 8,106 8,106 --
Trust Fees 8,840 8,840 --
Refund Transfer Fees 44,564 -- 44,564
Other Service Charges, Commissions
and Fees, net 17,560 8,150 9,410
Gain on Sale of Tax Refund Loans,
net 43,163 -- 43,163
Gain (Loss) on Securities, net 147 147 --
Other Income 3,806 3,805 1
------------ --------- ---------
Total Non Interest Income 126,186 29,048 97,138
------------ --------- ---------
Non Interest Expense
Personnel 66,115 58,726 7,389
Occupancy Expense 9,395 8,970 425
Equipment Expense 5,015 4,605 410
RAL/RT Service Fees 54,706 -- 54,706
Other Expenses 56,206 43,666 12,540
------------ --------- ---------
Total Non Interest Expense 191,437 115,967 75,470
------------ --------- ---------
Net Income Before Taxes 125,213 37,480 87,733
Provision for Income Taxes 46,325 9,433 36,892
------------ --------- ---------
Net Income $78,888 $28,047 $50,841
============ ========= =========
Earnings Per Share - Basic $1.69
Earning Per Share - Diluted $1.68
Average Number of Shares - Basic 46,701
Average Number of Shares - Diluted 47,077
SFAS 123R Impact
Net Earnings $78,888
Net Earnings Before the Effects of
SFAS 123R(a) $79,558
Diluted Earning per Share ("EPS") $1.68
Diluted EPS Before the Effects of
SFAS 123R(a) $1.67
Stock Option Expense Included in
earnings, pre tax $1,156
Six Months Ended 6/30/2005 Consolidated
Consolidated Core Bank RAL/RT % Change
Interest Income
Loans $201,202 $136,700 $64,502 49.7%
Securities 30,066 30,066 -- (3.5%)
Federal Funds Sold and
Securities Purchased
under Resale Agreements 306 (98) 404 (58.8%)
------------ --------- --------
Total Interest Income 231,574 166,668 64,906 42.6%
------------ --------- --------
Interest Expense
Deposits 29,703 29,344 359 79.7%
Federal Funds Purchased
and Securities Sold
under Repurchase
Agreements 2,434 1,461 973 304.5%
Other Borrowed Funds 15,357 14,002 1,355 46.6%
------------ --------- --------
Total Interest Expense 47,494 44,807 2,687 80.5%
------------ --------- --------
Net Interest Income 184,080 121,861 62,219 32.9%
------------ --------- --------
Provision for Credit
Losses
Provision for Credit
Losses - RAL 40,642 -- 40,642 11.4%
Provision for Credit
Losses - Core Bank 6,271 6,271 -- 40.5%
------------ --------- --------
Provision for Credit
Losses 46,913 6,271 40,642 15.3%
------------ --------- --------
Net Interest Income after
Provision for Credit
Losses 137,167 115,590 21,577 38.9%
------------ --------- --------
Non Interest Income
Service Charges on
Deposits 8,563 8,563 -- (5.3%)
Trust Fees 8,369 8,369 -- 5.6%
Refund Transfer Fees 24,685 -- 24,685 80.5%
Other Service Charges,
Commissions and Fees,
net 12,025 6,565 5,460 46.0%
Gain on Sale of Tax
Refund Loans, net 26,023 -- 26,023 65.9%
Gain (Loss) on
Securities, net (730) (730) -- --
Other Income 4,202 4,200 2 (9.4%)
------------ --------- --------
Total Non Interest
Income 83,137 26,967 56,170 51.8%
------------ --------- --------
Non Interest Expense
Personnel 52,694 47,711 4,983 25.5%
Occupancy Expense 8,165 7,779 386 15.1%
Equipment Expense 5,070 4,660 410 (1.1%)
RAL/RT Service Fees -- -- -- --
Other Expenses 35,912 28,411 7,501 56.5%
------------ --------- --------
Total Non Interest
Expense 101,841 88,561 13,280 88.0%
------------ --------- --------
Net Income Before Taxes 118,463 53,996 64,467 5.7%
Provision for Income
Taxes 44,614 17,506 27,108 3.8%
------------ --------- --------
Net Income $73,849 $36,490 $37,359 6.8%
============ ========= ========
Earnings Per Share -
Basic $1.61
Earning Per Share -
Diluted $1.60
Average Number of Shares
- Basic 45,811
Average Number of Shares
- Diluted 46,173
SFAS 123R Impact
Net Earnings $73,849
Net Earnings Before the
Effects of SFAS 123R(a) $74,448
Diluted Earning per
Share ("EPS") $1.60
Diluted EPS Before the
Effects of SFAS 123R(a) $1.60
Stock Option Expense
Included in earnings,
pre tax $1,034
(a) Non GAAP measure
Effective as of the beginning of the year, the Company adopted
FASB Statement 123R, Share-Based Payment using the modified
prospective application method.
Accordingly, its results of operations for prior fiscal periods
have not been adjusted to include the cost relating to stock
options.
The Company's management utilizes the above Core Bank information in
the evaluation of its banking operations and believes that the
investment community also finds this information valuable to
understand the key drivers of the business.
Net Interest Margin (unaudited)
Dollars in Thousands
Three Months Ended 6/30/2006
Consolidated Core Bank RAL/RT
Net Interest Margin (tax
equivalent) 4.44% 4.24% NA
Net Interest Income (tax
equivalent) $70,988 $67,581 $3,407
Interest Income $113,205 $108,414 $4,791
Interest Expense 43,779 42,395 1,384
------------ ----------- ---------
Net Interest Income $69,426 $66,019 $3,407
============ =========== =========
Tax Equivalent Adjustment $1,562 $1,562 $--
Average Earning Assets $6,419,005 $6,386,899 $32,106
Average Total Assets $6,995,737 $6,985,778 $9,959
Average Equity $594,938 $476,966 $117,972
Six Months Ended 6/30/2006
Consolidated Core Bank RAL/RT
Net Interest Margin (tax
equivalent) 7.56% 4.36% NA
Net Interest Income (tax
equivalent) $247,678 $136,323 $111,355
Interest Income $330,297 $211,981 $118,316
Interest Expense 85,731 78,770 6,961
------------ ----------- ---------
Net Interest Income $244,566 $133,211 $111,355
============ =========== =========
Tax Equivalent Adjustment $3,112 $3,112 $--
Average Earning Assets $6,608,066 $6,304,807 $303,259
Average Total Assets $7,115,285 $6,814,634 $300,651
Average Equity $578,831 $471,263 $107,568
Three Months Ended 6/30/2005
Consolidated Core Bank RAL/RT
Net Interest Margin (tax
equivalent) 4.50% 4.41% NA
Net Interest Income (tax
equivalent) $63,301 $61,575 $1,726
Interest Income $86,308 $83,778 $2,530
Interest Expense 24,611 23,807 804
------------ ----------- ---------
Net Interest Income $61,697 $59,971 $1,726
============ =========== =========
Tax Equivalent Adjustment $1,604 $1,604 $--
Average Earning Assets $5,646,166 $5,598,163 $48,003
Average Total Assets $6,138,382 $5,871,201 $267,181
Average Equity $503,624 $415,481 $88,143
Six Months Ended 6/30/2005
Consolidated Core Bank RAL/RT
Net Interest Margin (tax
equivalent) 6.56% 4.54% NA
Net Interest Income (tax
equivalent) $187,276 $125,057 $62,219
Interest Income $231,574 $166,668 $64,906
Interest Expense 47,494 44,807 2,687
------------ ----------- ---------
Net Interest Income $184,080 $121,861 $62,219
============ =========== =========
Tax Equivalent Adjustment $3,196 $3,196 $--
Average Earning Assets $5,757,256 $5,557,223 $200,033
Average Total Assets $6,205,478 $5,757,731 $447,747
Average Equity $489,104 $400,961 $88,143
Consolidated Average Balances and Annualized Yields
Dollars in Thousands Unaudited
----------------------------
Three Months Ended
----------------------------
As of 6/30/2006
Average Assets Balance Income Rate
Federal Funds Sold $(237) $-- 0.00%
Securities(1)
Taxable 1,111,889 11,584 4.18%
Non-taxable 208,609 4,274 8.20%
----------- ----------
Total Securities 1,320,498 15,858 4.82%
----------- ----------
Loans(2)
Commercial (including Leasing) 1,254,180 27,957 8.94%
Real Estate - Non Residential 1,866,310 34,745 7.45%
Real Estate - Residential 1,208,158 17,122 5.67%
Consumer 767,803 19,041 9.95%
Other 2,293 44 7.70%
----------- ----------
Total Loans 5,098,744 98,909 7.77%
----------- ----------
Total Earning Assets 6,419,005 114,767 7.17%
----------- ----------
FAS 115 Market Value Adjustment (6,996)
Non Earning Assets 583,728
-----------
Total Average Assets $6,995,737
===========
Average Liabilities and Shareholders'
Equity
Non Interest Bearing Demand Deposits $1,090,226 $-- 0.00%
Interest-Bearing Deposits
Interest Bearing Demand and Savings 2,229,203 11,280 2.03%
Time Certificates of Deposit 1,674,678 16,557 3.97%
----------- ----------
Total Interest Bearing Deposits 3,903,881 27,837 2.86%
----------- ----------
Borrowings
Fed Funds Purchased and Repurchase
Agreements 430,925 4,681 4.36%
Other Borrowings 911,961 11,261 4.95%
----------- ----------
Total Borrowings 1,342,886 15,942 4.76%
----------- ----------
Total Interest Bearing Liabilities $5,246,767 $43,779 3.35%
----------- ----------
Other Liabilities 63,806
Shareholders' Equity 594,938
-----------
Total Average Liabilities and
Shareholders' Equity $6,995,737
===========
Interest Income/Earning Assets 7.17%
Interest Expense/Earning Assets 2.73%
Tax Equivalent Net Interest Margin 70,988 4.44%
Provision for Credit Losses/Earning
Assets 5,956 0.38%
----------
Net Interest Income on Tax Equiv. Basis
after Provn for Credit Losses 65,032 4.06%
Less: Tax Equivalent Interest Income from
Non Taxable Securities and Loans
Included in Interest Income 1,562 0.09%
----------
Net Interest Income after Provision for
Credit Losses $63,470 3.97%
==========
Total Loans, RAL $31,482 $4,783 NA
Total Loans, Core Bank $5,067,262 $94,126 7.45%
Consumer Loans (Consumer and Home
Equity), RAL $31,482 $4,783 NA
Consumer Loans (Consumer and Home
Equity), Core Bank $736,321 $14,258 7.77%
Dollars in Thousands Unaudited
--------------------------
Three Months Ended
--------------------------
As of 6/30/2005
Average Assets Balance Income Rate
Federal Funds Sold $7,561 $56 2.97%
Securities(1)
Taxable 1,238,227 11,424 3.70%
Non-taxable 192,583 4,106 8.53%
----------- --------
Total Securities 1,430,810 15,530 4.35%
----------- --------
Loans(2)
Commercial (including Leasing) 1,046,854 19,891 7.62%
Real Estate - Non Residential 1,625,930 27,571 6.78%
Real Estate - Residential 974,198 13,510 5.55%
Consumer 558,846 11,339 8.14%
Other 1,967 15 3.06%
----------- --------
Total Loans 4,207,795 72,326 6.88%
----------- --------
Total Earning Assets 5,646,166 87,912 6.25%
----------- --------
FAS 115 Market Value Adjustment (377)
Non Earning Assets 492,593
-----------
Total Average Assets $6,138,382
===========
Average Liabilities and Shareholders'
Equity
Non Interest Bearing Demand Deposits $1,079,130 $-- 0.00%
Interest-Bearing Deposits
Interest Bearing Demand and Savings 1,982,968 5,265 1.06%
Time Certificates of Deposit 1,539,114 10,698 2.79%
----------- --------
Total Interest Bearing Deposits 3,522,082 15,963 1.82%
----------- --------
Borrowings
Fed Funds Purchased and Repurchase
Agreements 138,505 1,033 2.99%
Other Borrowings 819,011 7,615 3.73%
----------- --------
Total Borrowings 957,516 8,648 3.62%
----------- --------
Total Interest Bearing Liabilities $4,479,598 $24,611 2.20%
----------- --------
Other Liabilities 76,030
Shareholders' Equity 503,624
-----------
Total Average Liabilities and Shareholders'
Equity $6,138,382
===========
Interest Income/Earning Assets 6.25%
Interest Expense/Earning Assets 1.75%
Tax Equivalent Net Interest Margin 63,301 4.50%
Provision for Credit Losses/Earning Assets 7,901 0.56%
--------
Net Interest Income on Tax Equiv. Basis
after Provn for Credit Losses 55,400 3.94%
Less: Tax Equivalent Interest Income from
Non Taxable Securities and Loans
Included in Interest Income 1,604 0.12%
--------
Net Interest Income after Provision for
Credit Losses $53,796 3.82%
========
Total Loans, RAL $28,465 $2,530 NA
Total Loans, Core Bank $4,179,330 $69,796 6.70%
Consumer Loans (Consumer and Home Equity),
RAL $28,465 $2,530 NA
Consumer Loans (Consumer and Home Equity),
Core Bank $530,381 $8,809 6.66%
(1) Average securities balances are based on amortized historical
cost, excluding SFAS 115 adjustments to fair value, which are
included in other assets.
(2) Nonaccrual loans are included in loan balances. Interest income
includes related fee income.
Consolidated Average Balances and Annualized Yields
Dollars in Thousands Unaudited
----------------------------
Six Months Ended
----------------------------
As of 6/30/2006
Average Assets Balance Income Rate
Federal Funds Sold $5,507 $126 4.61%
Securities(1)
Taxable 1,129,562 23,419 4.18%
Non-taxable 209,106 8,512 8.14%
----------- ---------
Total Securities 1,338,668 31,931 4.80%
----------- ---------
Loans(2)
Commercial (including Leasing) 1,237,395 53,145 8.66%
Real Estate - Non Residential 1,837,426 67,610 7.36%
Real Estate - Residential 1,177,868 33,394 5.67%
Consumer 1,008,359 147,141 29.43%
Other 2,843 62 4.40%
----------- ---------
Total Loans 5,263,891 301,352 11.51%
----------- ---------
Total Earning Assets 6,608,066 333,409 10.17%
----------- ---------
FAS 115 Market Value Adjustment (2,718)
Non Earning Assets 509,937
-----------
Total Average Assets $7,115,285
===========
Average Liabilities and Shareholders'
Equity
Non Interest Bearing Demand Deposits $1,243,712 $-- 0.00%
Interest-Bearing Deposits
Interest Bearing Demand and Savings 2,261,147 21,279 1.90%
Time Certificates of Deposit 1,711,458 32,085 3.78%
----------- ---------
Total Interest Bearing Deposits 3,972,605 53,364 2.71%
----------- ---------
Borrowings
Fed Funds Purchased and Repurchase
Agreements 450,740 9,846 4.41%
Other Borrowings 968,471 22,521 4.69%
----------- ---------
Total Borrowings 1,419,211 32,367 4.60%
----------- ---------
Total Interest Bearing Liabilities $5,391,816 $85,731 3.21%
----------- ---------
Other Liabilities (99,074)
Shareholders' Equity 578,831
-----------
Total Average Liabilities and
Shareholders' Equity $7,115,285
===========
Interest Income/Earning Assets 10.17%
Interest Expense/Earning Assets 2.61%
Tax Equivalent Net Interest Margin 247,678 7.56%
Provision for Credit Losses/Earning
Assets 54,102 1.65%
---------
Net Interest Income on Tax Equiv. Basis
after Provn for Credit Losses 193,576 5.91%
Less: Tax Equivalent Interest Income from
Non Taxable Securities and Loans
Included in Interest Income 3,112 0.10%
---------
Net Interest Income after Provision for
Credit Losses $190,464 5.81%
=========
Total Loans, RAL $277,064 $117,726 NA
Total Loans, Core Bank $4,986,827 $183,626 7.43%
Consumer Loans (Consumer and Home
Equity), RAL $277,064 $117,726 NA
Consumer Loans (Consumer and Home
Equity), Core Bank $731,295 $29,415 8.11%
Dollars in Thousands Unaudited
----------------------------
Six Months Ended
----------------------------
As of 6/30/2005
Average Assets Balance Income Rate
Federal Funds Sold $23,168 $306 2.66%
Securities(1)
Taxable 1,259,999 24,824 3.97%
Non-taxable 190,210 8,172 8.59%
----------- ---------
Total Securities 1,450,209 32,996 4.58%
----------- ---------
Loans(2)
Commercial (including Leasing) 1,035,976 38,356 7.47%
Real Estate - Non Residential 1,617,798 53,418 6.60%
Real Estate - Residential 950,093 26,351 5.55%
Consumer 677,739 83,313 24.79%
Other 2,273 30 2.66%
----------- ---------
Total Loans 4,283,879 201,468 9.45%
----------- ---------
Total Earning Assets 5,757,256 234,770 8.22%
----------- ---------
FAS 115 Market Value Adjustment 6,569
Non Earning Assets 441,653
-----------
Total Average Assets $6,205,478
===========
Average Liabilities and Shareholders'
Equity
Non Interest Bearing Demand Deposits $1,210,631 $-- 0.00%
Interest-Bearing Deposits
Interest Bearing Demand and Savings 1,983,238 9,410 0.96%
Time Certificates of Deposit 1,550,566 20,293 2.64%
----------- ---------
Total Interest Bearing Deposits 3,533,804 29,703 1.70%
----------- ---------
Borrowings
Fed Funds Purchased and Repurchase
Agreements 177,394 2,434 2.77%
Other Borrowings 850,978 15,357 3.64%
----------- ---------
Total Borrowings 1,028,372 17,791 3.49%
----------- ---------
Total Interest Bearing Liabilities $4,562,176 $47,494 2.10%
----------- ---------
Other Liabilities (56,433)
Shareholders' Equity 489,104
-----------
Total Average Liabilities and
Shareholders' Equity $6,205,478
===========
Interest Income/Earning Assets 8.22%
Interest Expense/Earning Assets 1.66%
Tax Equivalent Net Interest Margin 187,276 6.56%
Provision for Credit Losses/Earning
Assets 46,913 1.64%
---------
Net Interest Income on Tax Equiv. Basis
after Provn for Credit Losses 140,363 4.92%
Less: Tax Equivalent Interest Income from
Non Taxable Securities and Loans
Included in Interest Income 3,196 0.12%
---------
Net Interest Income after Provision for
Credit Losses $137,167 4.80%
=========
Total Loans, RAL $147,045 $64,502 NA
Total Loans, Core Bank $4,136,834 $136,966 6.68%
Consumer Loans (Consumer and Home
Equity), RAL $147,045 $64,502 NA
Consumer Loans (Consumer and Home
Equity), Core Bank $530,694 $18,811 7.15%
(1) Average securities balances are based on amortized historical
cost, excluding SFAS 115 adjustments to fair value, which are
included in other assets.
(2) Nonaccrual loans are included in loan balances. Interest income
includes related fee income.
Key Financial Ratios (unaudited)
Dollars in Thousands
Three Months Ended Six Months Ended
Financial Ratios 6/30/2006 6/30/2005 6/30/2006 6/30/2005
Operating Efficiency
Ratio 73.35% 59.01% 51.23% 37.56%
Operating Efficiency Core
Bank 72.44% 58.32% 70.19% 57.98%
Return on Equity 7.77% 11.50% 27.48% 30.45%
Return on Equity RAL 6.13% -2.66% 95.31% 85.47%
Return on Equity Core
Bank 8.17% 14.51% 12.00% 18.35%
Return on Assets 0.66% 0.94% 2.24% 2.40%
Return on Assets RAL 72.61% -0.88% 34.10% 16.83%
Return on Assets Core
Bank 0.56% 1.03% 0.83% 1.28%
Leverage Ratio 8.50% 8.20% 8.14% 7.88%
Six Months Ended
6/30/2006 6/30/2005
Tangible Common Equity
Ratio 6.38% 6.79%
Tier 1 Capital Ratio 7.30% 7.10%
Risk Weighted Capital
Ratio 8.70% 9.00%
As of
Credit Quality Ratios 6/30/2006 6/30/2005
Allowance for Credit
Losses $53,638 $50,365
Allowance for RAL Credit
Losses 719 464
Allowance for Core Bank
Credit Losses 52,919 49,901
Three Months Ended Six Months Ended
6/30/2006 6/30/2005 6/30/2006 6/30/2005
Net Charge-Offs $6,994 $13,529 $56,062 $50,525
Net Charge-Offs RAL 3,720 10,854 44,571 40,178
Net Charge-Offs Core Bank 3,274 2,675 11,491 10,347
Annualized Net Charge-
Offs to Average Loans 0.55% 1.29% 2.15% 2.38%
Annualized Net Charge-
offs to Average Loans
Core Bank 0.26% 0.26% 0.46% 0.50%
As of
Nonperforming Assets 6/30/2006 6/30/2005
Loans Past Due 90 Days
and Accruing $1,089 $3,647
Nonaccrual Loans 15,240 17,552
---------- ----------
Total Nonperforming
Loans 16,329 21,199
Other Real Estate Owned
and Other Foreclosed
Assets 2,910 2,910
---------- ----------
Total Nonperforming
Assets $19,239 $24,109
========== ==========
Nonperforming Loans/Total
Loans Core Bank 0.31% 0.50%
Nonperforming Assets/
Total Assets Core Bank 0.27% 0.39%
Allowance for Core Bank
Credit Losses/Non
Performing Loans 324% 238%
Allowance for Core Bank
Credit Losses/Total
Loans 1.01% 1.18%
As of
Book Value per Share 6/30/2006 6/30/2005
Actual Shares Outstanding
at end of Period (in
thousands) 46,790 45,895
Book Value per Share $12.78 $11.44
Tangible Book Value per
Share $9.60 $8.96
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