Umpqua Reports Fourth Quarter and Full-Year 2014 Results
Full-year 2014 operating earnings1 of
Fourth quarter 2014 operating earnings1 of
Credit quality, capital and liquidity all remained strong
Sterling integration remains on track
Operating earnings, which represent earnings available to common shareholders before gains or losses on junior subordinated debentures carried at fair value, net of tax, and merger related expenses, net of tax, were
For the twelve months ended
“2014 was a highly productive year for Umpqua in which the company delivered increased operating earnings and continued the organic growth of our loan and deposit portfolios, while maintaining strong credit quality, capital and liquidity levels to support future growth,” said
Highlights:
- Full-year 2014 operating earnings1 of
$202.4 million:- Operating results reflect the acquisition of Sterling Financial beginning on
April 19, 2014 ; Return on average assets (operating basis)1 improved to 1.06%, from 0.92% in the prior year;
- Operating results reflect the acquisition of Sterling Financial beginning on
- Return on average tangible common equity (operating basis)1 improved to 12.62%, from 10.60% in the prior year;
- Efficiency ratio (operating basis)1 improved to 62.45%, from 66.74% in the prior year;
- Fourth quarter 2014 operating earnings1 of
$59.4 million:- Net interest income was up slightly from the prior quarter, while net interest margin decreased by 6 basis points from the prior quarter to 4.69%;
- Provision for loan and lease losses decreased by
$9.1 million from the prior quarter, driven by an improvement in the credit quality of the loan and lease portfolio; - Mortgage banking revenue decreased by
$9.5 million from the prior quarter, driven by a higher mix of portfolio versus for sale mortgage production, along with lower gain on sale margins, and a larger loss from the change in the fair value of the MSR asset, consistent with the decline in mortgage interest rates; - Other income decreased by
$2.7 million from the prior quarter, driven by a lower level of portfolio loan sales; - Non-interest expense (excluding merger-related expense) increased by
$6.8 million from the prior quarter, driven by a$1.9 million increase in marketing expense to support new brand and growth campaigns, and a$3.3 million increase in net loss on other real estate owned;
- Credit quality, capital and liquidity all remained strong:
- Net charge-offs to average loans and leases (annualized) decreased to 0.12%, from 0.14% in the prior quarter;
- Tangible book value per common share1 increased to
$8.80 , as compared to$8.78 for the prior quarter and$8.49 for the same period in the prior year; - Declared a dividend of
$0.15 per common share; and - Interest bearing cash increased to
$1.3 billion , from$1.2 billion in the prior quarter.
1 "Non-GAAP" financial measure. More information regarding this measurement and a reconciliation to the comparable GAAP measurement is provided under the heading Non-GAAP Financial Measures below.
Balance Sheet
Total consolidated assets were
Gross loans and leases were
Total deposits were
Net Interest Income
Net interest income was
The Company’s net interest margin was 4.69% for the fourth quarter of 2014, down from 4.75% for the third quarter of 2014, but up from 4.29% for the fourth quarter of 2013. The decrease from the prior quarter was primarily driven by a higher balance of interest-bearing cash and a lower yield on interest-earning assets. The increase from the prior year was primarily driven by the acquisition of Sterling, a higher yield on interest-earning assets, and a lower cost of funds.
Credit Quality
Under purchase accounting rules, loans (including those considered non-performing) acquired from Sterling were recorded at their estimated fair value, and the related allowance for loan losses was eliminated. As a result, the Company wrote down the value of the non-covered loan and lease portfolio acquired from Sterling as of the acquisition date. The credit portion of the fair value mark is not reflected in the reported allowance for loan losses, or its related allowance coverage ratios, but should be considered when comparing the current quarter ratios to similar ratios in periods prior to the acquisition of Sterling.
Loans acquired with deteriorated credit quality are accounted for as purchased credit impaired pools. Accordingly, loans included in the purchased credit impaired pools are not reported as non-performing loans based upon their individual performance status.
During the fourth quarter of 2014, the Company reported
The allowance for non-covered loan losses was
The provision for loan losses was
Non-covered, non-performing assets were
Non-Interest Income
Total non-interest income was
Residential mortgage banking revenue, which includes revenue from the origination and sale of residential mortgage loans, revenue from the servicing of residential mortgage loans and changes to the fair value of the residential mortgage servicing rights (“MSR”) asset, was down
The Company’s gain on sale margin, as a percentage of residential mortgage for sale production, was 2.95% for the fourth quarter of 2014, down from 3.46% in the prior quarter. Of the current quarter’s mortgage production, 63% related to purchase activity, as compared to 71% for the prior quarter and 70% for the same period in the prior year.
As of
Non-interest Expense
Non-interest expense was
Excluding merger-related expenses, non-interest expense increased by
The fourth quarter of 2014 non-interest expense run-rate does not reflect the full benefit of the anticipated Sterling merger cost synergies. Integration efforts continue to proceed as planned, with the previously announced 2014 store consolidations completed, and system conversions scheduled through early 2015. Cost synergies also remain on track to the previously announced target of
Income taxes
The Company recorded a provision for income taxes of
Capital
As of
The Company made no open market nor privately negotiated purchases of common stock under the Company’s previously announced share repurchase plan during the fourth quarter of 2014. The Company may repurchase up to 12.0 million of additional shares under this plan.
The Company’s estimated total risk-based capital ratio was 14.9% and its estimated Tier 1 common to risk weighted assets ratio was 11.3% as of
On
Non-GAAP Financial Measures
In addition to results presented in accordance with generally accepted accounting principles in
The Company recognizes gains or losses on its junior subordinated debentures carried at fair value resulting from changes in interest rates and the estimated market credit risk adjusted spread that do not directly correlate with the Company’s operating performance. Also, the Company incurs significant expenses related to the completion and integration of mergers and acquisitions. Additionally, it may recognize goodwill impairment losses that have no direct effect on the Company’s or the Bank’s cash balances, liquidity, or regulatory capital ratios. Lastly, the Company may recognize one-time bargain purchase gains on certain acquisitions that are not reflective of the Company’s on-going earnings power. Accordingly, management believes that our operating results are best measured on a comparative basis excluding the impact of gains or losses on junior subordinated debentures measured at fair value, net of tax, merger-related expenses, net of tax, and other charges related to business combinations such as goodwill impairment charges or bargain purchase gains, net of tax. The Company defines operating earnings as earnings available to common shareholders before gains or losses on junior subordinated debentures carried at fair value, net of tax, bargain purchase gains on acquisitions, net of tax, merger related expenses, net of tax, and goodwill impairment, and we calculate operating earnings per diluted share by dividing operating earnings by the same diluted share total used in determining diluted earnings per common share.
The following table provides the reconciliation of earnings available to common shareholders (GAAP) to operating earnings (non-GAAP), and earnings per diluted common share (GAAP) to operating earnings per diluted share (non-GAAP) for the periods presented:
Quarter Ended | % Change | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands, except per share data) | Seq. Quarter |
Year over Year |
|||||||||||||||||||||||||||||||||||
Net earnings available to common shareholders | $ | 52,400 | $ | 58,847 | $ | 17,138 | $ | 18,651 | $ | 25,058 |
(11 |
) |
% |
109 | % | ||||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||||||||||
Net loss on junior subordinated debentures carried at fair value, net of tax (1) | 953 | 955 | 821 | 325 | 332 | 0 | % | 187 | % | ||||||||||||||||||||||||||||
Merger related expenses, net of tax (1) | 6,038 | 5,274 | 35,926 | 5,073 | 2,502 | 14 | % | 141 | % | ||||||||||||||||||||||||||||
Operating earnings | $ | 59,391 | $ | 65,076 | $ | 53,885 | $ | 24,049 | $ | 27,892 |
(9 |
) |
% |
113 | % | ||||||||||||||||||||||
Earnings per diluted share: |
|||||||||||||||||||||||||||||||||||||
Earnings available to common shareholders | $ | 0.24 | $ | 0.27 | $ | 0.09 | $ | 0.17 | $ | 0.22 |
(11 |
) |
% |
9 | % | ||||||||||||||||||||||
Operating earnings | $ | 0.27 | $ | 0.30 | $ | 0.27 | $ | 0.21 | $ | 0.25 | </td> |
(10 |
) |
% |
8 | % | |||||||||||||||||||||
Twelve Months Ended | % Change | ||||||||||||||||||||||||||||||||||||
Year over Year | |||||||||||||||||||||||||||||||||||||
Net earnings available to common shareholders | $ | 147,036 | $ | 97,573 | 51 | % | |||||||||||||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||||||||||
Net loss on junior subordinated debentures carried at fair value, net of tax (1) | 3,054 | 1,318 | 132 | % | |||||||||||||||||||||||||||||||||
Merger related expenses, net of tax (1) | 52,311 | 6,820 | nm | ||||||||||||||||||||||||||||||||||
Operating earnings | $ | 202,401 | $ | 105,711 | 91 | % | |||||||||||||||||||||||||||||||
Earnings per diluted share: |
|||||||||||||||||||||||||||||||||||||
Earnings available to common shareholders | $ | 0.78 | $ | 0.87 |
(10 |
) |
% |
||||||||||||||||||||||||||||||
Operating earnings | $ | 1.08 | $ | 0.94 | 15 | % | |||||||||||||||||||||||||||||||
</td> | |||||||||||||||||||||||||||||||||||||
(1) Income tax effect of pro forma operating earnings adjustments at 40% for tax-deductible items. | |||||||||||||||||||||||||||||||||||||
nm = not meaningful. | |||||||||||||||||||||||||||||||||||||
Management believes tangible common equity and the tangible common equity ratio are meaningful measures of capital adequacy because they provide a meaningful base for period-to-period and company-to-company comparisons, which management believes will assist investors in assessing the capital of the Company and the ability to absorb potential losses. Tangible common equity is calculated as total shareholders' equity less goodwill and other intangible assets, net (excluding MSRs). Tangible assets are total assets less goodwill and other intangible assets, net (excluding MSRs). The tangible common equity ratio is calculated as tangible common shareholders’ equity divided by tangible assets.
The following table provides reconciliations of ending shareholders’ equity (GAAP) to ending tangible common equity (non-GAAP), and ending assets (GAAP) to ending tangible assets (non-GAAP).
(Dollars in thousands, except per share data) | ||||||||||||||||||||||||||||
Total shareholders' equity | $ | 3,780,997 | $ | 3,752,508 | $ | 3,729,060 | $ | 1,734,476 | $ | 1,727,426 | ||||||||||||||||||
Subtract: | ||||||||||||||||||||||||||||
Goodwill and other intangible assets, net | 1,842,958 | 1,845,242 | 1,842,670 | 775,488 | 776,683 | |||||||||||||||||||||||
Tangible common shareholders' equity | $ | 1,938,039 | $ | 1,907,266 | $ | 1,886,390 | $ | 958,988 | $ | 950,743 | ||||||||||||||||||
Total assets | $ | 22,613,274 | $ | 22,488,059 | $ | 22,042,229 | $ | 11,838,726 | $ | 11,636,112 | ||||||||||||||||||
Subtract: | ||||||||||||||||||||||||||||
Goodwill and other intangible assets, net | 1,842,958 | 1,845,242 | 1,842,670 | 775,488 | 776,683 | |||||||||||||||||||||||
Tangible assets | $ | 20,770,316 | $ | 20,642,817 | $ | 20,199,559 | $ | 11,063,238 | $ | 10,859,429 | ||||||||||||||||||
Common shares outstanding at period end | 220,161,120 | 217,261,722 | 217,190,721 | 112,319,525 | 111,973,203 | |||||||||||||||||||||||
Tangible common equity ratio | 9.33 | % | 9.24 | % | 9.34 | % | 8.67 | % | 8.75 | % | ||||||||||||||||||
Tangible book value per common share | $ | 8.80 | $ | 8.78 | $ | 8.69 | $ | 8.54 | $ | 8.49 | ||||||||||||||||||
About
Earnings Conference Call Information
The Company will host its fourth quarter 2014 earnings conference call on
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the “Safe-Harbor” provisions of the Private Securities Litigation Reform Act of 1995, which management believes are a benefit to shareholders. These statements are necessarily subject to risk and uncertainty and actual results could differ materially due to various risk factors, including those set forth from time to time in our filings with the
Consolidated Statements of Income | ||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||
Quarter Ended | % Change | |||||||||||||||||||||||||||||||
(In thousands, except per share data) | Seq. Quarter |
Year over Year |
||||||||||||||||||||||||||||||
Interest income: | ||||||||||||||||||||||||||||||||
Loans and leases | $ | 226,853 | $ | 223,972 | $ | 208,992 | $ | 103,986 | $ | 106,362 | 1 | % | 113 | % | ||||||||||||||||||
Interest and dividends on investments: | ||||||||||||||||||||||||||||||||
Taxable | 11,629 | 12,136 | 12,728 | 9,291 | 9,517 |
(4 |
) |
% |
22 | % | ||||||||||||||||||||||
Exempt from federal income tax | 2,746 | 2,790 | 2,697 | 2,112 | 2,173 |
(2 |
) |
% |
26 | % | ||||||||||||||||||||||
Dividends | 66 | 81 | 128 | 50 | 87 |
(19 |
) |
% |
(24 |
) |
% |
|||||||||||||||||||||
Temporary investments & interest bearing deposits | 857 | 544 | 422 | 441 | 399 | 58 | % | 115 | % | |||||||||||||||||||||||
Total interest income | 242,151 | 239,523 | 224,967 | 115,880 | 118,538 | 1 | % | 104 | % | |||||||||||||||||||||||
Interest expense: | ||||||||||||||||||||||||||||||||
Deposits | 7,119 | 6,773 | 6,075 | 3,848 | 4,168 | 5 | % | 71 | % | |||||||||||||||||||||||
Repurchase agreements and fed funds purchased | 48 | 54 | 203 | 41 | 42 |
(11 |
) |
% |
14 | % | ||||||||||||||||||||||
Term debt | 3,570 | 3,586 | 3,364 | 2,273 | 2,332 | 0 | % | 53 | % | |||||||||||||||||||||||
Junior subordinated debentures | 3,399 | 3,394 | 3,066 | 1,880 | 1,922 | 0 | % | 77 | % | |||||||||||||||||||||||
Total interest expense | 14,136 | 13,807 | 12,708 | 8,042 | 8,464 | 2 | % | 67 | % | |||||||||||||||||||||||
Net interest income | 228,015 | 225,716 | 212,259 | 107,838 | 110,074 | 1 | % | 107 | % | |||||||||||||||||||||||
Provision for loan and lease losses | 5,241 | 14,333 | 14,696 | 5,971 | 2,471 |
(63 |
) |
% |
112 | % | ||||||||||||||||||||||
Non-interest income: | ||||||||||||||||||||||||||||||||
Service charges | 15,472 | 16,090 | 15,371 | 7,767 | 8,108 |
(4 |
) |
% |
91 | % | ||||||||||||||||||||||
Brokerage fees | 4,960 | 4,882 | 4,566 | 3,725 | 3,584 | 2 | % | 38 | % | |||||||||||||||||||||||
Residential mortgage banking revenue, net | 16,489 | 25,996 | 24,341 | 10,439 | 15,957 |
(37 |
) |
% |
3 | % | ||||||||||||||||||||||
Net gain on investment securities | 1,026 | 902 | 976 | — | 191 | 14 | % | 437 | % | |||||||||||||||||||||||
Loss on junior subordinated debentures carried at fair value | (1,589 | ) | (1,590 | ) | (1,369 | ) | (542 | ) | (554 | ) | 0 | % | 187 | % | ||||||||||||||||||
Change in |
(1,982 | ) | (2,728 | ) | (5,601 | ) | (4,840 | ) | (5,708 | ) |
(27 |
) |
% |
(65 |
) |
% |
||||||||||||||||
BOLI income | 1,971 | 2,161 | 1,967 | 736 | 621 |
(9 |
) |
% |
217 | % | ||||||||||||||||||||||
Other income | 13,485 | 16,211 | 4,278 | 5,722 | 4,586 |
(17 |
% |
194 | % | |||||||||||||||||||||||
Total non-interest income | 49,832 | 61,924 | 44,529 | 23,007 | 26,785 |
(20 |
) |
% |
86 | % | ||||||||||||||||||||||
Non-interest expense: | ||||||||||||||||||||||||||||||||
Salaries and employee benefits | 104,039 | 102,564 | 95,560 | 53,218 | 52,720 | 1 | % | 97 | % | |||||||||||||||||||||||
Net occupancy and equipment | 32,987 | 33,029 | 28,746 | 16,501 | 16,254 | 0 | % | 103 | % | |||||||||||||||||||||||
Intangible amortization | 3,102 | 3,103 | 2,808 | 1,194 | 1,186 | 0 | % | 162 | % | |||||||||||||||||||||||
3,522 | 3,038 | 2,575 | 1,863 | 1,922 | 16 | % | 83 | % | ||||||||||||||||||||||||
Net loss (gain) on other real estate owned | 3,609 | 313 | 258 | (64 | ) | 1,397 | nm | 158 | % | |||||||||||||||||||||||
Merger related expenses | 10,171 | 8,632 | 57,531 | 5,983 | 1,639 | 18 | % | 521 | % | |||||||||||||||||||||||
Other expense | 33,426 | 31,879 | 26,653 | 17,823 | 20,246 | 5 | % | 65 | % | |||||||||||||||||||||||
Total non-interest expense | 190,856 | 182,558 | 214,131 | 96,518 | 95,364 | 5 | % | 100 | % | |||||||||||||||||||||||
Income before provision for income taxes | 81,750 | 90,749 | 27,961 | 28,356 | 39,024 |
(10 |
) |
% |
109 | % | ||||||||||||||||||||||
Provision for income taxes | 29,204 | 31,760 | 10,740 | 9,592 | 13,754 |
(8 |
) |
% |
112 | % | ||||||||||||||||||||||
Net income | 52,546 | 58,989 | 17,221 | 18,764 | 25,270 |
(11 |
) |
% |
108 | % | ||||||||||||||||||||||
Dividends and undistributed earnings allocated to participating securities | 146 | 142 | 83 | 113 | 212 | 3 | % |
(31 |
) |
% |
||||||||||||||||||||||
Net earnings available to common shareholders | $ | 52,400 | $ | 58,847 | $ | 17,138 | $ | 18,651 | $ | 25,058 |
(11 |
) |
% |
</td> | 109 | % | ||||||||||||||||
Weighted average basic shares outstanding | 218,963 | 217,245 | 196,312 | 112,170 | 111,949 | 1 | % | 96 | % | |||||||||||||||||||||||
Weighted average diluted shares outstanding | 219,974 | 218,941 | 197,638 | 112,367 | 112,214 | 0 | % | 96 | % | |||||||||||||||||||||||
Earnings per common share – basic | $ | 0.24 | $ | 0.27 | $ | 0.09 | $ | 0.17 | $ | 0.22 |
(11 |
) |
% |
9 | % | |||||||||||||||||
Earnings per common share – diluted | $ | 0.24 | $ | 0.27 | $ | 0.09 | $ | 0.17 | $ | 0.22 |
(11 |
) |
% |
9 | % | |||||||||||||||||
nm = not meaningful |
Consolidated Statements of Income | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
Twelve Months Ended | % Change | |||||||||||||||||
(In thousands, except per share data) | Year over Year | |||||||||||||||||
Interest income | ||||||||||||||||||
Loans and leases | $ | 763,803 | $ | 398,214 | 92 | % | ||||||||||||
Interest and dividends on investments: | ||||||||||||||||||
Taxable | 45,784 | 34,146 | 34 | % | ||||||||||||||
Exempt from federal income tax | 10,345 | 8,898 | 16 | % | ||||||||||||||
Dividends | 325 | 252 | 29 | % | ||||||||||||||
Temporary investments & interest bearing deposits | 2,264 | 1,336 | 69 | % | ||||||||||||||
Total interest income | 822,521 | 442,846 | 86 | % | ||||||||||||||
Interest expense | ||||||||||||||||||
Deposits | 23,815 | 20,755 | 15 | % | ||||||||||||||
Repurchase agreements and fed funds purchased | 346 | 141 | 145 | % | ||||||||||||||
Term debt | 12,793 | 9,248 | 38 | % | ||||||||||||||
Junior subordinated debentures | 11,739 | 7,737 | 52 | % | ||||||||||||||
Total interest expense | 48,693 | 37,881 | 29 | % | ||||||||||||||
Net interest income | 773,828 | 404,965 | 91 | % | ||||||||||||||
Provision for loan and lease losses | 40,241 | 10,716 | 276 | % | ||||||||||||||
Non-interest income | </td> | |||||||||||||||||
Service charges | 54,700 | 30,952 | 77 | % | ||||||||||||||
Brokerage fees | 18,133 | 14,736 | 23 | % | ||||||||||||||
Residential mortgage banking revenue, net | 77,265 | 78,885 |
(2 |
) |
% |
|||||||||||||
Net gain on investment securities | 2,904 | 209 | nm | |||||||||||||||
Loss on junior subordinated debentures carried at fair value | (5,090 | ) | (2,197 | ) | 132 | % | ||||||||||||
Change in |
(15,151 | ) | (25,549 | ) |
(41 |
) |
% |
|||||||||||
BOLI income | 6,835 | 3,035 | 125 | % | ||||||||||||||
Other income | 39,696 | 21,370 | 86 | % | ||||||||||||||
Total non-interest income | 179,292 | 121,441 | 48 | % | ||||||||||||||
Non-interest expense | ||||||||||||||||||
Salaries and employee benefits | 355,379 | 209,991 | 69 | % | ||||||||||||||
Net occupancy and equipment | 111,263 | 62,067 | 79 | % | ||||||||||||||
Intangible amortization | 10,207 | 4,781 | 113 | % | ||||||||||||||
10,998 | 6,954 | 58 | % | |||||||||||||||
Net loss on other real estate owned | 4,116 | 1,248 | 230 | % | ||||||||||||||
Merger related expenses | 82,317 | 8,836 | nm | |||||||||||||||
Other expense | 109,783 | 70,784 | 55 | % | ||||||||||||||
Total non-interest expense | 684,063 | 364,661 | 88 | % | ||||||||||||||
Income before provision for income taxes | 228,816 | 151,029 | 52 | % | ||||||||||||||
Provision for income taxes | 81,296 | 52,668 | 54 | % | ||||||||||||||
Net income | 147,520 | 98,361 | 50 | % | ||||||||||||||
Dividends and undistributed earnings | ||||||||||||||||||
allocated to participating securities | 484 | 788 |
(39 |
) |
% |
|||||||||||||
Net earnings available to common shareholders | $ | 147,036 | $ | 97,573 | 51 | % | ||||||||||||
Weighted average basic shares outstanding | 186,550 | 111,938 | 67 | % | ||||||||||||||
Weighted average diluted shares outstanding | 187,544 | 112,176 | 67 | % | ||||||||||||||
Earnings per common share – basic | $ | 0.79 | $ | 0.87 |
(9 |
) |
% |
|||||||||||
Earnings per common share – diluted | $ | 0.78 | $ | 0.87 |
(10 |
) |
% |
|||||||||||
nm = not meaningful |
Consolidated Balance Sheets |
|||||||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||||
% Change | |||||||||||||||||||||||||||||||||||
(In thousands, except per share data) | Seq. Quarter |
Year over Year |
|||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||
Cash and due from banks | $ | 282,455 | $ | 266,624 | $ | 347,152 | $ | 196,963 | $ | 178,685 | 6 | % | 58 | % | |||||||||||||||||||||
Interest bearing deposits | 1,322,214 | 1,176,599 | 492,739 | 887,620 | 611,224 | 12 | % | 116 | % | ||||||||||||||||||||||||||
Temporary investments | 502 | 487 | 529 | 525 | 514 | 3 | % |
(2 |
) |
% |
|||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||||||||||||
Trading, at fair value | 9,999 | 9,727 | 9,420 | 4,498 | 5,958 | 3 | % | 68 | % | ||||||||||||||||||||||||||
Available for sale, at fair value | 2,298,555 | 2,400,061 | 2,588,969 | 1,701,730 | 1,790,978 |
(4 |
) |
% |
28 | % | |||||||||||||||||||||||||
Held to maturity, at amortized cost | 5,211 | 5,356 | 5,519 | 5,465 | 5,563 |
(3 |
) |
% |
(6 |
) |
% |
||||||||||||||||||||||||
Loans held for sale | 286,802 | 265,800 | 328,968 | 73,106 | 104,664 | 8 | % | 174 | % | ||||||||||||||||||||||||||
Loans and leases | 15,327,732 | 15,259,201 | 15,136,455 | 7,763,691 | 7,728,166 | 0 | % | 98 | % | ||||||||||||||||||||||||||
Allowance for loan and lease losses | (116,167 | ) | (115,635 | ) | (106,495 | ) | (97,029 | ) | (95,085 | ) | 0 | % | 22 | % | |||||||||||||||||||||
Loans and leases, net | 15,211,565 | 15,143,566 | 15,029,960 | 7,666,662 | 7,633,081 | 0 | % | 99 | % | ||||||||||||||||||||||||||
Restricted equity securities | 119,334 | 120,759 | 122,194 | 29,948 | 30,685 |
(1 |
) |
% |
289 | % | |||||||||||||||||||||||||
Premises and equipment, net | 317,834 | 314,364 | 310,407 | 180,199 | 177,680 | 1 | % | 79 | % | ||||||||||||||||||||||||||
Goodwill | 1,786,225 | 1,785,407 | 1,779,732 | 764,304 | 764,305 | 0 | % | 134 | % | ||||||||||||||||||||||||||
Other intangible assets, net | 56,733 | 59,835 | 62,938 | 11,184 | 12,378 |
(5 |
) |
% |
358 | % | |||||||||||||||||||||||||
Residential mortgage servicing rights, at fair value | 117,259 | 118,725 | 114,192 | 49,220 | 47,765 |
(1 |
) |
% |
145 | % | |||||||||||||||||||||||||
Other real estate owned | 37,942 | 34,456 | 27,982 | 23,780 | 23,935 | 10 | % | 59 | % | ||||||||||||||||||||||||||
4,417 | 7,811 | 11,293 | 18,362 | 23,174 |
(43 |
) |
% |
(81 |
) |
% |
|||||||||||||||||||||||||
Bank owned life insurance | 294,296 | 293,511 | 292,714 | 97,589 | 96,938 | 0 | % | 204 | % | ||||||||||||||||||||||||||
Deferred tax assets, net | 229,520 | 250,910 | 259,993 | 11,393 | 16,627 |
(9 |
) |
% |
nm | ||||||||||||||||||||||||||
Other assets | 232,411 | 234,061 | 257,528 | 116,178 | 111,958 |
(1 |
) |
% |
108 | % | |||||||||||||||||||||||||
Total assets | $ | 22,613,274 | $ | 22,488,059 | $ | 22,042,229 | $ | 11,838,726 | $ | 11,636,112 | 1 | % | 94 | % | |||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||
Deposits | $ | 16,892,099 | $ | 16,727,610 | $ | 16,323,000 | $ | 9,273,583 | $ | 9,117,660 | 1 | % | 85 | % | |||||||||||||||||||||
Securities sold under agreements to repurchase | 313,321 | 339,367 | 315,025 | 262,483 | 224,882 |
(8 |
) |
% |
39 | % | |||||||||||||||||||||||||
Term debt | 1,006,395 | 1,057,140 | 1,057,915 | 250,964 | 251,494 |
(5 |
) |
% |
300 | % | |||||||||||||||||||||||||
Junior subordinated debentures, at fair value | 249,294 | 247,528 | 246,077 | 87,800 | 87,274 | 1 | % | 186 | % | ||||||||||||||||||||||||||
Junior subordinated debentures, at amortized cost | 101,576 | 101,657 | 101,737 | 101,818 | 101,899 | 0 | % | 0 | % | ||||||||||||||||||||||||||
Other liabilities | 269,592 | 262,249 | 269,415 | 127,602 | 125,477 | 3 | % | 115 | % | ||||||||||||||||||||||||||
Total liabilities | 18,832,277 | 18,735,551 | 18,313,169 | 10,104,250 | 9,908,686 | 1 | % | 90 | % | ||||||||||||||||||||||||||
Shareholders' equity: | |||||||||||||||||||||||||||||||||||
Common stock | 3,519,316 | 3,515,621 | 3,512,507 | 1,514,969 | 1,514,485 | 0 | % | 132 | % | ||||||||||||||||||||||||||
Retained earnings | 249,613 | 204,109 | 219,686 | 217,917 | 8 | % | 15 | % | |||||||||||||||||||||||||||
Accumulated other comprehensive income (loss) | 12,068 | 6,585 | 12,444 | (179 | ) | (4,976 | ) | 83 | % | nm | |||||||||||||||||||||||||
Total shareholders' equity | 3,780,997 | 3,752,508 | 3,729,060 | 1,734,476 | 1,727,426 | 1 | % | 119 | % | ||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 22,613,274 | $ | 22,488,059 | $ | 22,042,229 | $ | 11,838,726 | $ | 11,636,112 | 1 | % | 94 | % | |||||||||||||||||||||
Common shares outstanding at period end | 220,161,120 | 217,261,722 | 217,190,721 | 112,319,525 | 111,973,203 | 1 | % | 97 | % | ||||||||||||||||||||||||||
Book value per common share | $ | 17.17 | $ | 17.27 | $ | 17.17 | $ | 15.44 | $ | 15.43 |
(1 |
) |
% |
11 | % | ||||||||||||||||||||
Tangible book value per common share | $ | 8.80 | $ | 8.78 | $ | 8.69 | $ | 8.54 | $ | 8.49 | 0 | % | 4 | % | |||||||||||||||||||||
Tangible equity - common | $ | 1,938,039 | $ | 1,907,266 | $ | 1,886,390 | $ | 958,988 | $ | 950,743 | 2 | % | 104 | % | |||||||||||||||||||||
Tangible common equity to tangible assets | 9.33 | % | 9.24 | % | 9.34 | % | 8.67 | % | 8.75 | % | 1 | % | 7 | % | |||||||||||||||||||||
nm = not meaningful |
Loan & Lease Portfolio | |||||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | % Change | ||||||||||||||||||||||||||||||||
Amount | Amount | Amount | Amount | Amount | Seq. Quarter |
Year over Year |
|||||||||||||||||||||||||||
Loans & leases: |
|||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||
Non-owner occupied term, net | $ | 3,290,610 | $ | 3,423,453 | $ | 3,517,328 | $ | 2,511,770 | $ | 2,535,162 |
(4 |
) |
% |
30 | % | ||||||||||||||||||
Owner occupied term, net | 2,633,864 | 2,682,870 | 2,714,319 | 1,331,969 | 1,309,400 |
(2 |
) |
% |
101 | % | |||||||||||||||||||||||
Multifamily, net | 2,638,618 | 2,565,711 | 2,506,864 | 428,489 | 441,208 | 3 | % | 498 | % | ||||||||||||||||||||||||
Commercial construction, net | 258,722 | 247,816 | 264,150 | 232,708 | 248,686 | 4 | % | 4 | % | ||||||||||||||||||||||||
Residential development, net | 81,846 | 76,849 | 94,857 | 96,723 | 95,699 | 7 | % |
(14 |
) |
% |
|||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Term, net | 1,102,987 | 1,119,658 | 1,114,315 | 745,813 | 786,564 |
(1 |
) |
% |
40 | % | |||||||||||||||||||||||
Lines of credit & other, net | 1,322,722 | 1,344,741 | 1,330,771 | 1,015,251 | 994,058 |
(2 |
) |
% |
33 | % | |||||||||||||||||||||||
Leases & equipment finance, net | 523,114 | 492,221 | 463,784 | 388,418 | 361,591 | 6 | % | 45 | % | ||||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||||||||||
Mortgage, net | 2,233,735 | 2,102,333 | 1,976,934 | 672,845 | 619,517 | 6 | % | 261 | % | ||||||||||||||||||||||||
Home equity lines & loans, net | 852,478 | 836,054 | 817,391 | 287,491 | 283,906 | 2 | % | 200 | % | ||||||||||||||||||||||||
Consumer & other, net | 389,036 | 367,495 | 335,742 | 52,214 | 52,375 | 6 | % | 643 | % | ||||||||||||||||||||||||
Total, net of deferred fees and costs | $ | 15,327,732 | $ | 15,259,201 | $ | 15,136,455 | $ | 7,763,691 | $ | 7,728,166 | 0 | % | 98 | % | |||||||||||||||||||
Non-covered loans total | $ | 15,063,221 | $ | 14,975,811 | $ | 14,830,345 | $ | 7,411,108 | $ | 7,354,403 | |||||||||||||||||||||||
Covered loans total | 264,511 | 283,390 | 306,110 | 352,583 | 373,763 | ||||||||||||||||||||||||||||
Total loans, net | $ | 15,327,732 | $ | 15,259,201 | $ | 15,136,455 | $ | 7,763,691 | $ | 7,728,166 | |||||||||||||||||||||||
Loan & leases mix: |
|||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||
Non-owner occupied term, net | 20 | % | 22 | % | 23 | % | 31 | % | 32 | % | |||||||||||||||||||||||
Owner occupied term, net | 17 | % | 18 | % | 18 | % | 17 | % | 17 | % | |||||||||||||||||||||||
Multifamily, net | 17 | % | 17 | % | 17 | % | 6 | % | 6 | % | |||||||||||||||||||||||
Commercial construction, net | 2 | % | 2 | % | 2 | % | 3 | % | 3 | % | |||||||||||||||||||||||
Residential development, net | 1 | % | 1 | % | 1 | % | 1 | % | 1 | % | |||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Term, net | 7 | % | 7 | % | 7 | % | 10 | % | 10 | % | |||||||||||||||||||||||
Lines of credit & other, net | 9 | % | 9 | % | 9 | % | 13 | % | 13 | % | |||||||||||||||||||||||
Leases & equipment finance, net | 3 | % | 3 | % | 3 | % | 5 | % | 5 | % | |||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||||||||||
Mortgage, net | 15 | % | 14 | % | 13 | % | 9 | % | 8 | % | |||||||||||||||||||||||
Home equity lines & loans, net | 6 | % | 5 | % | 5 | % | 4 | % | 4 | % | |||||||||||||||||||||||
Consumer & other, net | 3 | % | 2 | % | 2 | % | 1 | % | 1 | % | |||||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % |
Deposits by Type/Core Deposits | |||||||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||||
(Dollars in thousands) | % Change | ||||||||||||||||||||||||||||||||||
Amount | Amount | Amount | Amount | Amount | Seq. Quarter |
Year over Year |
|||||||||||||||||||||||||||||
Deposits: |
|||||||||||||||||||||||||||||||||||
Demand, non-interest bearing | $ | 4,744,804 | $ | 4,741,897 | $ | 4,363,710 | $ | 2,465,606 | $ | 2,436,477 | 0 | % | 95 | % | |||||||||||||||||||||
Demand, interest bearing | 2,054,994 | 1,942,792 | 1,869,626 | 1,182,634 | 1,233,070 | 6 | % | 67 | % | ||||||||||||||||||||||||||
Money market | 6,113,138 | 5,998,339 | 5,973,197 | 3,526,368 | 3,349,946 | 2 | % | 82 | % | ||||||||||||||||||||||||||
Savings | 971,185 | 952,122 | 912,073 | 578,238 | 560,699 | 2 | % | 73 | % | ||||||||||||||||||||||||||
Time | 3,007,978 | 3,092,460 | 3,204,394 | 1,520,737 | 1,537,468 |
(3 |
) |
% |
96 | % | |||||||||||||||||||||||||
Total | $ | 16,892,099 | $ | 16,727,610 | $ | 16,323,000 | $ | 9,273,583 | $ | 9,117,660 | 1 | % | 85 | % | |||||||||||||||||||||
Total core deposits (1) | $ | 14,808,765 | $ | 14,653,183 | $ | 14,171,946 | $ | 8,205,636 | $ | 8,052,280 | 1 | % | 84 | % | |||||||||||||||||||||
Deposit mix: |
|||||||||||||||||||||||||||||||||||
Demand, non-interest bearing | 28 | % | 28 | % | 26 | % | 27 | % | 26 | % | |||||||||||||||||||||||||
Demand, interest bearing | 12 | % | 12 | % | 11 | % | 13 | % | 14 | % | |||||||||||||||||||||||||
Money market | 36 | % | 36 | % | 37 | % | 38 | % | 37 | % | |||||||||||||||||||||||||
Savings | 6 | % | 6 | % | 6 | % | 6 | % | 6 | % | |||||||||||||||||||||||||
Time | 18 | % | 18 | % | 20 | % | 16 | % | 17 | % | Total | 100 | % | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||||
Number of open accounts: |
|||||||||||||||||||||||||||||||||||
Demand, non-interest bearing | 367,854 | 366,279 | 363,378 | 190,298 | 187,088 | ||||||||||||||||||||||||||||||
Demand, interest bearing | 86,135 | 87,223 | 88,162 | 46,291 | 48,643 | ||||||||||||||||||||||||||||||
Money market | 63,095 | 63,979 | 65,216 | 34,913 | 35,303 | ||||||||||||||||||||||||||||||
Savings | 150,548 | 150,527 | 149,877 | 84,686 | 84,144 | ||||||||||||||||||||||||||||||
Time | 53,530 | 54,565 | 56,285 | 22,755 | 23,688 | ||||||||||||||||||||||||||||||
Total | 721,162 | 722,573 | 722,918 | 378,943 | 378,866 | ||||||||||||||||||||||||||||||
Average balance per account: |
|||||||||||||||||||||||||||||||||||
Demand, non-interest bearing | $ | 12.9 | $ | 12.9 | $ | 12.3 | $ | 13.0 | $ | 13.0 | |||||||||||||||||||||||||
Demand, interest bearing | 23.9 | 22.3 | 21.2 | 25.5 | 25.3 | ||||||||||||||||||||||||||||||
Money market | 96.9 | 93.8 | 91.6 | 101.0 | 94.9 | ||||||||||||||||||||||||||||||
Savings | 6.5 | 6.3 | 6.1 | 6.8 | 6.7 | ||||||||||||||||||||||||||||||
Time | 56.2 | 56.7 | 56.9 | 66.8 | 64.9 | </td> | |||||||||||||||||||||||||||||
Total | $ | 23.4 | $ | 23.2 | $ | 22.7 | $ | 24.5 | $ | 24.1 |
(1) Core deposits are defined as total deposits less time deposits greater than
Credit Quality – Non-performing Assets | ||||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||||
Quarter Ended | % Change | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | Seq. Quarter |
Year over Year |
||||||||||||||||||||||||||||||||
Non-covered, non-performing assets: |
||||||||||||||||||||||||||||||||||
Non-covered loans and leases on non-accrual status | $ | 52,041 | $ | 42,397 | $ | 48,358 | $ | 37,884 | $ | 31,891 | 23 | % | 63 | % | ||||||||||||||||||||
Non-covered loans and leases past due 90+ days & accruing | 7,512 | 7,416 | 4,919 | 2,269 | 3,430 | 1 | % | 119 | % | |||||||||||||||||||||||||
Total non-performing loans and leases | 59,553 | 49,813 | 53,277 | 40,153 | 35,321 | 20 | % | 69 | % | |||||||||||||||||||||||||
Non-covered other real estate owned | 35,989 | 31,753 | 26,172 | 22,034 | 21,833 | 13 | % | 65 | % | |||||||||||||||||||||||||
Total | $ | 95,542 | $ | 81,566 | $ | 79,449 | $ | 62,187 | $ | 57,154 | 17 | % | 67 | % | ||||||||||||||||||||
Non-covered performing restructured loans and leases | $ | 54,836 | $ | 63,507 | $ | 67,464 | $ | 67,897 | $ | 68,791 |
(14 |
) |
% |
(20 |
) |
% |
||||||||||||||||||
Non-covered loans and leases past due 31-89 days | $ | 24,659 | $ | 34,025 | $ | 28,913 | $ | 29,416 | $ | 15,290 |
(28 |
) |
% |
61 | % | |||||||||||||||||||
Non-covered loans and leases past due 31-89 days to non-covered loans and leases | 0.16 | % | 0.23 | % | 0.19 | % | 0.40 | % | 0.21 | % | ||||||||||||||||||||||||
Non-covered, non-performing loans and leases to non-covered loans and leases | 0.40 | % | 0.33 | % | 0.36 | % | 0.54 | % | 0.48 | % | ||||||||||||||||||||||||
Non-covered, non-performing assets to total assets | 0.42 | % | 0.36 | % | 0.36 | % | 0.53 | % | 0.49 | % | ||||||||||||||||||||||||
Covered non-performing assets: |
||||||||||||||||||||||||||||||||||
Covered loans and leases on non-accrual status | $ | — | $ | — | $ | — | $ | — | $ | — | nm | nm | ||||||||||||||||||||||
Total non-performing loans and leases | — | — | — | — | — | nm | nm | |||||||||||||||||||||||||||
Covered other real estate owned | 1,953 | 2,703 | 1,810 | 1,746 | 2,102 |
(28 |
) |
% |
(7 |
) |
% |
|||||||||||||||||||||||
Total | $ | 1,953 | $ | 2,703 | $ | 1,810 | $ | 1,746 | $ | 2,102 |
(28 |
) |
% |
(7 |
) |
% |
||||||||||||||||||
Covered non-performing loans and leases to covered loans and leases | — | % | — | % | — | % | — | % | — | % | ||||||||||||||||||||||||
Covered non-performing assets to total assets | 0.01 | % | 0.01 | % | 0.01 | % | 0.01 | % | 0.02 | % | ||||||||||||||||||||||||
Total non-performing assets: |
||||||||||||||||||||||||||||||||||
Loans and leases on non-accrual status | $ | 52,041 | $ | 42,397 | $ | 48,358 | $ | 37,884 | $ | 31,891 | 23 | % | 63 | % | ||||||||||||||||||||
Loans and leases past due 90+ days & accruing | 7,512 | 7,416 | 4,919 | 2,269 | 3,430 | 1 | % | 119 | % | |||||||||||||||||||||||||
Total non-performing loans and leases | 59,553 | 49,813 | 53,277 | 40,153 | 35,321 | 20 | % | 69 | % | |||||||||||||||||||||||||
Other real estate owned | 37,942 | 34,456 | 27,982 | 23,780 | 23,935 | 10 | % | 59 | % | |||||||||||||||||||||||||
Total | $ | 97,495 | $ | 84,269 | $ | 81,259 | $ | 63,933 | $ | 59,256 | 16 | % | 65 | % | ||||||||||||||||||||
Non-performing loans and leases to loans and leases | 0.39 | % | 0.33 | % | 0.35 | % | 0.52 | % | 0.46 | % | ||||||||||||||||||||||||
Non-performing assets to total assets | 0.43 | % | 0.37 | % | 0.37 | % | 0.54 | 0.51 | % | |||||||||||||||||||||||||
nm = not meaningful |
Credit Quality – Allowance for Loan and Lease Losses | ||||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||||
Quarter Ended | % Change | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Seq. Quarter | Year over Year | |||||||||||||||||||||||||||
Allowance for non-covered credit losses: |
||||||||||||||||||||||||||||||||||
Balance beginning of period | $ | 107,807 | $ | 97,995 | $ | 86,709 | $ | 85,314 | $ | 84,694 | ||||||||||||||||||||||||
Provision for non-covered loan and lease losses | 4,844 | 14,431 | 15,399 | 5,400 | 3,840 |
(66 |
) |
% |
26 | % | ||||||||||||||||||||||||
Charge-offs | (7,886 | ) | (6,743 | ) | (5,814 | ) | (5,565 | ) | (11,349 | ) | 17 | % |
(31 |
) |
% |
|||||||||||||||||||
Recoveries | 4,140 | 2,124 | 1,701 | 1,560 | 8,129 | 95 | % |
(49 |
) |
% |
||||||||||||||||||||||||
Net charge-offs | (3,746 | ) | (4,619 | ) | (4,113 | ) | (4,005 | ) | (3,220 | ) |
(19 |
) |
% |
16 | % | |||||||||||||||||||
Total allowance for non-covered loan and lease losses | 108,905 | 107,807 | 97,995 | 86,709 | 85,314 | 1 | % | 28 | % | |||||||||||||||||||||||||
Reserve for unfunded commitments | 3,539 | 4,388 | 1,417 | 1,436 |
(19 |
) |
% |
146 | % | |||||||||||||||||||||||||
Total allowance for non-covered credit losses | $ | 112,444 | $ | 112,195 | $ | 102,840 | $ | 88,126 | $ | 86,750 | 0 | % | 30 | % | ||||||||||||||||||||
Net charge-offs to average non-covered loans and leases (annualized) | 0.10 | % | 0.12 | % | 0.12 | % | 0.22 | % | 0.18 | % | Recoveries to gross charge-offs | 52.50 | % | 31.50 | % | 29.26 | % | 28.03 | % | 71.63 | % | |||||||||||||
Allowance for non-covered loan and lease losses to non-covered loans and leases | 0.72 | % | 0.72 | % | 0.66 | % | 1.17 | % | 1.16 | % | ||||||||||||||||||||||||
Allowance for non-covered credit losses to non-covered loans and leases | 0.75 | % | 0.75 | % | 0.69 | % | 1.19 | % | 1.18 | % | ||||||||||||||||||||||||
Allowance for covered credit losses: |
</td> | |||||||||||||||||||||||||||||||||
Balance beginning of period | $ | 7,828 | $ | 8,500 | $ | 10,320 | $ | 9,771 | $ | 11,918 | ||||||||||||||||||||||||
Provision for (recapture of)covered loan and lease losses | 397 | (98 | ) | (703 | ) | 571 | (1,369 | ) | nm | nm | ||||||||||||||||||||||||
Charge-offs | (1,202 | ) | (781 | ) | (1,518 | ) | (669 | ) | (1,387 | ) | 54 | % |
(13 |
) |
% |
|||||||||||||||||||
Recoveries | 239 | 207 | 401 | 647 | 609 | 15 | % |
(61 |
) |
% |
||||||||||||||||||||||||
Net charge-offs | (963 | ) | (574 | ) | (1,117 | ) | (22 | ) | (778 | ) | 68 | % | 24 | % | ||||||||||||||||||||
Total allowance for covered loan and lease losses | $ | 7,262 | $ | 7,828 | $ | 8,500 | $ | 10,320 | $ | 9,771 |
(7 |
) |
% |
(26 |
) |
% |
||||||||||||||||||
</td> | ||||||||||||||||||||||||||||||||||
Net charge-offs to average covered loans and leases (annualized) | 1.43 | % | 0.80 | % | 1.41 | % | 0.03 | % | 0.83 | % | ||||||||||||||||||||||||
Recoveries to gross charge-offs | 19.88 | % | 26.50 | % | 26.42 | % | 96.71 | % | 43.91 | % | ||||||||||||||||||||||||
Allowance for covered loan and lease losses to covered loans and leases | 2.75 | % | 2.76 | % | 2.78 | % | 2.93 | % | 2.61 | % | ||||||||||||||||||||||||
nm = not meaningful |
Credit Quality – Allowance for Loan and Lease Losses | |||||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||
Quarter Ended | % Change | ||||||||||||||||||||||||||||||||
Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Seq. Quarter | Year over Year | |||||||||||||||||||||||||||
Allowance for loan and lease losses: |
|||||||||||||||||||||||||||||||||
Balance beginning of period | $ | 115,635 | $ | 106,495 | $ | 97,029 | $ | 95,085 | $ | 96,612 | |||||||||||||||||||||||
Provision for loan and lease losses | 5,241 | 14,333 | 14,696 | 5,971 | 2,471 |
(63 |
) |
% |
112 | % | |||||||||||||||||||||||
Charge-offs | (9,088 | ) | (7,524 | ) | (7,332 | ) | (6,234 | ) | (12,736 | ) | 21 | % |
(29 |
) |
% |
||||||||||||||||||
Recoveries | 4,379 | 2,331 | 2,102 | 2,207 | 8,738 | 88 | % |
(50 |
) |
% |
|||||||||||||||||||||||
Net charge-offs | (4,709 | ) | (5,193 | ) | (5,230 | ) | (4,027 | ) | (3,998 | ) |
(9 |
) |
% |
18 | % | ||||||||||||||||||
Total allowance for loan and lease losses | 116,167 | 115,635 | 106,495 | 97,029 | 95,085 | 0 | % | 22 | % | ||||||||||||||||||||||||
Reserve for unfunded commitments | 3,539 | 4,388 | 4,845 | 1,417 | 1,436 |
(19 |
) |
% |
146 | % | |||||||||||||||||||||||
Total allowance for credit losses | $ | 119,706 | $ | 120,023 | $ | 111,340 | $ | 98,446 | $ | 96,521 | 0 | % | 24 | % | |||||||||||||||||||
Net charge-offs to average loans and leases (annualized) | 0.12 | % | 0.14 | % | 0.15 | % | 0.21 | % | 0.21 | % | |||||||||||||||||||||||
Recoveries to gross charge-offs | 48.18 | % | 30.98 | % | 28.67 | % | 35.40 | % | 68.61 | % | |||||||||||||||||||||||
Allowance for loan and lease losses to loans and leases | 0.76 | % | 0.76 | % | 0.70 | % | 1.25 | % | 1.23 | % | |||||||||||||||||||||||
Allowance for credit losses to loans and leases | 0.78 | % | 0.79 | % | 0.74 | % | 1.27 | % | 1.25 | % |
Credit Quality – Allowance for Loan and Lease Losses | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Twelve months ended | % Change | ||||||||||||||||
(Dollars in thousands) | Dec 31, 2014 | Dec 31, 2013 | Year over Year | ||||||||||||||
Allowance for non-covered credit losses: |
|||||||||||||||||
Balance beginning of period | $ | 85,314 | $ | 85,391 | |||||||||||||
Provision for non-covered loan and lease losses | 40,074 | 16,829 | 138 | % | |||||||||||||
Charge-offs | (26,008 | ) | (30,995 | ) |
(16) |
% |
|||||||||||
Recoveries | 9,525 | 14,089 |
(32) |
% |
|||||||||||||
Net charge-offs | (16,483 | ) | (16,906 | ) |
(3) |
% |
|||||||||||
Total allowance for non-covered loan and lease losses | 108,905 | 85,314 | 28 | % | |||||||||||||
Reserve for unfunded commitments | 3,539 | 1,436 | 146 | % | |||||||||||||
Total allowance for non-covered credit losses | $ | 112,444 | $ | 86,750 | 30 | % | |||||||||||
Net charge-offs to average non-covered loans and leases | 0.13 | % | 0.24 | % | |||||||||||||
Recoveries to gross charge-offs | 36.62 | % | 45.46 | % | |||||||||||||
Allowance for non-covered loan losses to covered loans and leases | 0.72 | % | 1.16 | % | |||||||||||||
Allowance for non-covered credit losses to covered loans and leases | 0.75 | % | 1.18 | % | |||||||||||||
Allowance for covered credit losses: |
|||||||||||||||||
Balance beginning of period | $ | 9,771 | $ | 18,275 | |||||||||||||
Provision for (recapture of) covered loan and lease losses | 167 | (6,113 | ) |
(103) |
% |
||||||||||||
Charge-offs | (4,170 | ) | (4,503 | ) |
(7) |
% |
|||||||||||
Recoveries | 1,494 | 2,112 |
(29) |
% |
|||||||||||||
Net charge-offs | (2,676 | ) | (2,391 | ) | 12 | % | |||||||||||
Total allowance for covered loan and lease losses | $ | 7,262 | $ | 9,771 |
(26) |
% |
|||||||||||
Net charge-offs to average covered loans and leases | 0.88 | % | % | ||||||||||||||
Recoveries to gross charge-offs | 35.83 | % | 46.90 | % | |||||||||||||
Allowance for covered loan losses to covered loans and leases | 2.75 | % | 2.61 | % |
Credit Quality – Allowance for Loan and Lease Losses | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Twelve months ended | % Change | |||||||||||||||
(Dollars in thousands) | Dec 31, 2014 | Dec 31, 2013 | Year over Year | |||||||||||||
Balance beginning of period | $ | 95,085 | $ | 103,666 | ||||||||||||
Provision for loan and lease losses | 40,241 | 10,716 | 276 | % | ||||||||||||
Charge-offs | (30,178 | ) | (35,498 | ) </td> |
(15) |
% |
||||||||||
Recoveries | 11,019 | 16,201 |
(32) |
% |
||||||||||||
Net charge-offs | (19,159 | ) | (19,297 | ) |
(1) |
% |
||||||||||
Total allowance for loan and lease losses | 116,167 | 95,085 | 22 | % | ||||||||||||
Reserve for unfunded commitments | 3,539 | 1,436 | 146 | % | ||||||||||||
Total allowance for credit losses | $ | 119,706 | $ | 96,521 | 24 | % | ||||||||||
Net charge-offs to average loans and leases (annualized) | 0.15 | % | 0.26 | % | ||||||||||||
Recoveries to gross charge-offs | 36.51 | % | 45.64 | % | ||||||||||||
Allowance for loan losses to loans and leases | 0.76 | % | 1.23 | % | ||||||||||||
Allowance for credit losses to loans and leases | 0.78 | % | 1.25 | % |
Selected Ratios | |||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||
Quarter Ended | % Change | ||||||||||||||||||||||
Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Seq. Quarter |
Year over Year |
|||||||||||||||||
Average Rates: |
|||||||||||||||||||||||
Yield on loans and leases | 5.79 | % | 5.74 | % | 6.04 | % | 5.40 | % | 5.43 | % | 0.05 | 0.36 | |||||||||||
Yield on taxable investments | 2.16 | % | 2.12 | % | 2.29 | % | 2.39 | % | 2.31 | % | 0.04 | (0.15 | ) | ||||||||||
Yield on tax-exempt investments (1) | 5.09 | % | 5.12 | % | 5.19 | % | 5.54 | % | 5.56 | % | (0.03 | ) | (0.47 | ) | |||||||||
Yield on temporary investments & interest bearing cash | 0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % | — | — | |||||||||||
Total yield on earning assets (1) | 4.98 | % | 5.04 | % | 5.30 | % | 4.60 | % | 4.61 | % | (0.06 | ) | 0.37 | ||||||||||
Cost of interest bearing deposits | 0.23 | % | 0.22 | % | 0.22 | % | 0.23 | % | 0.25 | % | 0.01 | (0.02 | ) | ||||||||||
Cost of securities sold under agreements | |||||||||||||||||||||||
to repurchase and fed funds purchased | 0.06 | % | 0.07 | % | 0.25 | % | 0.07 | % | 0.07 | % | (0.01 | ) | (0.01 | ) | |||||||||
Cost of term debt | 1.41 | % | 1.35 | % | 1.45 | % | 3.67 | % | 3.68 | % | 0.06 | (2.27 | ) | ||||||||||
Cost of junior subordinated debentures | 3.86 | % | 3.87 | % | 3.87 | % | 4.03 | % | 4.04 | % | (0.01 | ) | (0.18 | ) | |||||||||
Total cost of interest bearing liabilities | 0.41 | % | 0.40 | % | 0.41 | % | 0.44 | % | 0.46 | % | 0.01 | (0.05 | ) | ||||||||||
Net interest spread (1) | 4.57 | % | 4.64 | % | 4.90 | % | 4.16 | % | 4.15 | % | (0.07 | ) | 0.42 | ||||||||||
Net interest margin – Consolidated (1) | 4.69 | % | 4.75 | % | 5.01 | % | 4.28 | % | 4.29 | % | (0.06 | ) | 0.40 | ||||||||||
Net interest margin – Bank (1) | 4.75 | % | 4.82 | % | 5.07 | % | 4.35 | % | 4.35 | % | (0.07 | ) | 0.40 | ||||||||||
As reported (GAAP): |
|||||||||||||||||||||||
Return on average assets | 0.92 | % | 1.05 | % | 0.34 | % | 0.65 | % | 0.86 | % | (0.13 | ) | 0.06 | ||||||||||
Return on average tangible assets | 1.00 | % | 1.15 | % | 0.37 | % | 0.70 | % | 0.92 | % | (0.15 | ) | 0.08 | ||||||||||
Return on average common equity | 5.59 | % | 6.29 | % | 2.05 | % | 4.35 | % | 5.73 | % | (0.70 | ) | (0.14 | ) | |||||||||
Return on average tangible common equity | 11.08 | % | 12.48 | % | 4.06 | % | 7.86 | % | 10.38 | % | (1.40 | ) | 0.70 | ||||||||||
Efficiency ratio – Consolidated | 68.34 | % | 63.15 | % | 82.94 | % | 73.15 | % | 69.12 | % | 5.19 | (0.78 | ) | ||||||||||
Efficiency ratio – Bank | 66.34 | % | 61.68 | % | 81.37 | % | 71.18 | % | 67.30 | % | 4.66 | (0.96 | ) | ||||||||||
Operating basis (non-GAAP): (2) |
|||||||||||||||||||||||
Return on average assets | 1.04 | % | 1.16 | % | 1.08 | % | 0.84 | % | 0.95 | % | (0.12 | ) | 0.09 | ||||||||||
Return on average tangible assets | 1.13 | % | 1.27 | % | 1.18 | % | 0.90 | % | 1.02 | % | (0.14 | ) | 0.11 | ||||||||||
Return on average common equity | 6.33 | % | 6.95 | % | 6.45 | % | 5.61 | % | 6.38 | % | (0.62 | ) | (0.05 | ) | |||||||||
Return on average tangible common equity | 12.55 | % | 13.80 | % | 12.76 | % | 10.13 | % | 11.56 | % | (1.25 | ) | 0.99 | ||||||||||
Efficiency ratio – Consolidated | 64.33 | % | 59.83 | % | 60.33 | % | 68.34 | % | 67.66 | % | 4.50 | (3.33 | ) | ||||||||||
Efficiency ratio – Bank | 62.71 | % | 58.70 | % | 59.15 | % | 66.60 | % | 66.10 | % | 4.01 | (3.39 | ) |
(1) Tax exempt interest has been adjusted to a taxable equivalent basis using a 35% tax rate.
(2) Operating earnings is calculated as earnings available to common shareholders excluding gain (loss) on junior subordinated debentures carried at fair value, net of tax, bargain purchase gain on acquisitions, net of tax, goodwill impairment, and merger related expenses, net of tax.
Selected Ratios | ||||||||||||||
(Unaudited) | ||||||||||||||
Twelve Months Ended | % Change | |||||||||||||
Dec 31, 2014 | Dec 31, 2013 | Year over Year | ||||||||||||
Average Rates: |
||||||||||||||
Yield on loans and leases | 5.78 | % | 5.31 | % | 0.47 | |||||||||
Yield on taxable investments | 2.22 | % | 1.76 | % | 0.46 | |||||||||
Yield on tax-exempt investments (1) | 5.20 | % | 5.46 | % | (0.26 | ) | ||||||||
Yield on temporary investments & interest bearing cash | 0.25 | % | 0.26 | % | (0.01 | ) | ||||||||
Total yield on earning assets (1) | 5.02 | % | 4.38 | % | 0.64 | |||||||||
Cost of interest bearing deposits | 0.23 | % | 0.31 | % | (0.08 | ) | ||||||||
Cost of securities sold under agreements | ||||||||||||||
to repurchase and fed funds purchased | 0.11 | % | 0.08 | % | 0.03 | |||||||||
Cost of term debt | 1.57 | % | 3.66 | % | (2.09 | ) | ||||||||
Cost of junior subordinated debentures | 3.89 | % | 4.09 | % | (0.20 | ) | ||||||||
Total cost of interest bearing liabilities | 0.41 | % | 0.51 | % | (0.10 | ) | ||||||||
Net interest spread (1) | 4.61 | % | 3.87 | % | 0.74 | |||||||||
Net interest margin – Consolidated (1) | 4.73 | % | 4.01 | % | 0.72 | |||||||||
Net interest margin – Bank (1) | 4.79 | % | 4.08 | % | 0.71 | |||||||||
As reported (GAAP): |
||||||||||||||
Return on average assets | 0.77 | % | 0.85 | % | (0.08 | ) | ||||||||
Return on average tangible assets | 0.83 | % | 0.91 | % | (0.08 | ) | ||||||||
Return on average common equity | 4.69 | % | 5.64 | % | (0.95 | ) | ||||||||
Return on average tangible common equity | 9.16 | % | 9.78 | % | (0.62 | ) | ||||||||
Efficiency ratio – Consolidated | 71.37 | % | 68.68 | % | 2.69 | |||||||||
Efficiency ratio – Bank | 69.64 | % | 66.54 | % | 3.10 | |||||||||
Operating basis (non-GAAP): (2) |
||||||||||||||
Return on average assets | 1.06 | % | 0.92 | % | 0.14 | |||||||||
Return on average tangible assets | 1.15 | % | 0.98 | % | 0.17 | |||||||||
Return on average common equity | 6.45 | % | 6.11 | % | 0.34 | |||||||||
Return on average tangible common equity | 12.62 | % | 10.60 | % | 2.02 | |||||||||
Efficiency ratio – Consolidated | 62.45 | % | 66.74 | % | (4.29 | ) | ||||||||
Efficiency ratio – Bank | 61.07 | % | 64.86 | % | (3.79 | ) |
(1) Tax exempt interest has been adjusted to a taxable equivalent basis using a 35% tax rate.
(2) Operating earnings is calculated as earnings available to common shareholders excluding gain (loss) on junior subordinated debentures carried at fair value, net of tax, bargain purchase gain on acquisitions, net of tax, goodwill impairment, and merger related expenses, net of tax.
Average Balances |
||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||
Quarter Ended | % Change | |||||||||||||||||||||||||||||||
<i>(Dollars in thousands) | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Seq. Quarter |
Year over Year |
|||||||||||||||||||||||||
Temporary investments & interest bearing cash | $ | 1,368,726 | $ | 849,399 | $ | 672,587 | $ | 705,974 | $ | 625,405 | 61 | % | 119 | % | ||||||||||||||||||
Investment securities, taxable | 2,169,504 | 2,307,732 | 2,242,414 | 1,562,849 | 1,664,716 |
(6 |
) |
% |
30 | % | ||||||||||||||||||||||
Investment securities, tax-exempt | 326,858 | 330,902 | 315,488 | 231,520 | 236,552 |
(1 |
) |
% |
38 | % | ||||||||||||||||||||||
Loans held for sale | 255,830 | 274,834 | 211,694 | 77,234 | 89,553 |
(7 |
) |
% |
186 | % | ||||||||||||||||||||||
Loans and leases | 15,300,425 | 15,200,893 | 13,673,887 | 7,732,539 | 7,676,770 | 1 | % | 99 | % | |||||||||||||||||||||||
Total interest earning assets | 19,421,343 | 18,963,760 | 17,116,070 | 10,310,116 | 10,292,996 | 2 | % | 89 | % | |||||||||||||||||||||||
Goodwill & other intangible assets, net | 1,844,084 | 1,841,668 | 1,656,687 | 776,006 | 777,188 | 0 | % | 137 | % | |||||||||||||||||||||||
Total assets | 22,625,461 | 22,220,999 | 20,036,742 | 11,638,357 | 11,624,424 | 2 | % | 95 | % | |||||||||||||||||||||||
Non-interest bearing demand deposits | 4,836,517 | 4,558,672 | 3,963,233 | 2,414,001 | 2,452,554 | 6 | % | 97 | % | |||||||||||||||||||||||
Interest bearing deposits | 12,153,481 | 11,948,731 | 10,948,991 | 6,696,029 | 6,661,933 | 2 | % | 82 | % | |||||||||||||||||||||||
Total deposits | 16,989,998 | 16,507,403 | 14,912,224 | 9,110,030 | 9,114,487 | 3 | % | 86 | % | |||||||||||||||||||||||
Interest bearing liabilities | 13,833,126 | 13,681,205 | 12,521,219 | 7,376,780 | 7,326,763 | 1 | % | 89 | % | |||||||||||||||||||||||
Shareholders’ equity - common | 3,721,003 | 3,712,813 | 3,350,836 | 1,738,680 | 1,734,583 | 0 | % | 115 | % | |||||||||||||||||||||||
Tangible common equity (1) | 1,876,919 | 1,871,145 | 1,694,149 | 962,674 | 957,395 | 0 | % | 96 | % |
Average Balances |
||||||||||||||||||
(Unaudited) | ||||||||||||||||||
Twelve Months Ended | % Change | |||||||||||||||||
(Dollars in thousands) | Dec 31, 2014 | Dec 31, 2013 | Year over Year | |||||||||||||||
Temporary investments & interest bearing cash | $ | 900,851 | $ | 519,000 | 74 | % | ||||||||||||
Investment securities, taxable | 2,072,936 | 1,952,611 | 6 | % | ||||||||||||||
Investment securities, tax-exempt | 301,535 | 247,010 | 22 | % | ||||||||||||||
Loans held for sale | 205,580 | 138,383 | 49 | % | ||||||||||||||
Loans and leases | 13,003,762 | 7,367,602 | 76 | % | ||||||||||||||
Total interest earning assets | 16,484,664 | 10,224,606 | 61 | % | ||||||||||||||
Goodwill & other intangible assets, net | 1,533,403 | 731,525 | 110 | % | ||||||||||||||
Total assets | 19,169,098 | 11,507,688 | 67 | % | ||||||||||||||
Non-interest bearing demand deposits | 3,951,429 | 2,284,996 | 73 | % | ||||||||||||||
Interest bearing deposits | 10,455,902 | 6,772,677 | 54 | % | ||||||||||||||
Total deposits | 14,407,331 | 9,057,673 | 59 | % | ||||||||||||||
Interest bearing liabilities | 11,875,802 | 7,392,348 | 61 | % | ||||||||||||||
Shareholders’ equity - common | 3,137,858 | 1,729,083 | 81 | % | ||||||||||||||
Tangible common equity (1) | 1,604,455 | 997,558 | 61 | % |
(1) Average tangible common equity is a non-GAAP financial measure. Average tangible common equity is calculated as average common shareholders’ equity less average goodwill and other intangible assets, net (excluding MSRs).
Residential Mortgage Banking Activity |
|||||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||||
Quarter Ended | % Change | ||||||||||||||||||||||||||||||
(Dollars in thousands) | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Seq. Quarter |
Year over Year |
||||||||||||||||||||||||
Residential mortgage servicing rights: |
|||||||||||||||||||||||||||||||
Residential mortgage loans serviced for others | $ | 11,590,310 | $ | 11,300,947 | $ | 10,838,313 | $ | 4,496,662 | $ | 4,362,499 | 3 | % | 166 | % | |||||||||||||||||
MSR asset, at fair value | 117,259 | 118,725 | 114,192 | 49,220 | 47,765 |
(1 |
) |
% |
145 | % | |||||||||||||||||||||
MSR as % of serviced portfolio | 1.01 | % | 1.05 | % | 1.05 | % | 1.09 | % | 1.09 | % | |||||||||||||||||||||
Residential mortgage banking revenue: |
|||||||||||||||||||||||||||||||
Origination and sale | $ | 18,378 | $ | 24,097 | $ | 22,142 | $ | 8,421 | $ | 9,915 |
(24 |
) |
% |
85 | % | ||||||||||||||||
Servicing | 6,306 | 6,178 | 5,359 | 2,970 | 2,911 | 2 | % | 117 | % | ||||||||||||||||||||||
Change in fair value of MSR asset | (8,195 | ) | (4,279 | ) | (3,160 | ) | (952 | ) | 3,131 | 92 | % | nm | |||||||||||||||||||
Total | $ | 16,489 | $ | 25,996 | $ | 24,341 | $ | 10,439 | $ | 15,957 |
(37 |
) |
% |
3 | % | ||||||||||||||||
Closed loan volume: |
|||||||||||||||||||||||||||||||
Closed loan volume - total | $ | 941,912 | $ | 988,031 | $ | 894,955 | $ | 293,175 | $ | 359,569 |
(5 |
) |
% |
162 | % | ||||||||||||||||
Closed loan volume - for sale | $ | 622,133 | $ | 695,877 | $ | 623,727 | $ | 204,356 | $ | 271,541 |
(11 |
) |
% |
129 | % | ||||||||||||||||
Gain on sale margin: |
|||||||||||||||||||||||||||||||
Based on total volume | 1.95 | % | 2.44 | % | 2.47 | % | 2.87 | % | 2.76 | % |
(0.49 |
) |
|
(0.81 |
) |
|
|||||||||||||||
Based on for sale volume | 2.95 | % | 3.46 | % | 3.55 | % | 4.12 | % | 3.65 | % |
(0.51 |
) |
|
(0.70 |
) |
|
|||||||||||||||
Twelve Months Ended | % Change | ||||||||||||||||||||||||||||||
Dec 31, 2014 | Dec 31, 2013 | Year over Year | |||||||||||||||||||||||||||||
Residential mortgage banking revenue: |
|||||||||||||||||||||||||||||||
Origination and sale | $ | 73,038 | $ | 66,117 | 10 | % | |||||||||||||||||||||||||
Servicing | 20,813 | 10,395 | 100 | % | |||||||||||||||||||||||||||
Change in fair value of MSR asset | (16,586 | ) | 2,373 |
(799 |
) |
% |
|||||||||||||||||||||||||
Total | $ | 77,265 | $ | 78,885 |
(2 |
) |
% |
</td> | |||||||||||||||||||||||
Closed loan volume: |
|||||||||||||||||||||||||||||||
Closed loan volume - total | $ | 3,118,073 | $ | 1,930,877 | 61 | % | |||||||||||||||||||||||||
Closed loan volume - for sale | 2,146,828 | 1,599,683 | 34 | % | |||||||||||||||||||||||||||
Gain on sale margin: |
|||||||||||||||||||||||||||||||
Based on total volume | 2.34 | % | 3.42 | % |
(1.08 |
) |
|
||||||||||||||||||||||||
Based on for sale volume | 3.40 | % | 4.13 | % |
(0.73 |
) |
|
||||||||||||||||||||||||
nm = not meaningful |
EVP/Chief Financial Officer
[email protected]
or
SVP/Director of Investor Relations
[email protected]
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