BIRMINGHAM, Ala., July 24 /PRNewswire-FirstCall/ -- Alabama National BanCorporation ("ANB") today announced earnings for the quarter and six-month period ended June 30, 2007.
For the 2007 second quarter, ANB reported net income of $22.0 million, or $1.06 per diluted share. Six months year-to-date net income was $42.0 million, or $2.01 per diluted share. As previously reported, ANB sold its ANB Insurance Services, Inc. subsidiary on May 1, 2007. Earnings from the operation of this subsidiary and the gain from its sale are recorded as income from discontinued operations in the income statement.
Excluding the discontinued insurance operations, ANB reported earnings from continuing operations of $21.1 million in the 2007 second quarter, up 6.5% from the $19.8 million earned in the 2007 first quarter and up 9.2% from the 2006 second quarter's $19.3 million in net income. Diluted earnings per share (continuing operations) of $1.01 in the 2007 second quarter were 7.0% above the $0.94 reported in the 2007 first quarter and 0.6% below the $1.02 reported in the year ago second quarter. Diluted cash earnings per share (continuing operations) were $1.05 in the 2007 second quarter, as compared with $1.00 and $1.06 in the 2007 first quarter and 2006 second quarter, respectively.
ANB had a record quarter for revenue production, with total revenue from continuing operations of $85.9 million. This revenue total was up 3.6% from the $82.7 million reported in the 2007 first quarter, and up 11.8% from the 2006 second quarter's $76.8 million.
On a year-to-date basis, ANB's $40.8 million in income from continuing operations equated to $1.95 in diluted earnings per share, down 3.9% from the $2.03 earned in the first six months of 2006. Year-to-date revenue from continuing operations for the first six months of 2007 was $168.6 million, up 14.4% from the 2006 six months.
ANB's taxable equivalent net interest margin held steady during the 2007 second quarter with 2007 first quarter levels, declining 2 basis points to 3.72%. On a year-to-date basis, the 2007 six months net interest margin of 3.73% was 0.24% below levels for the same period in 2006. Ending loans (excluding loans held for sale) grew $113 million during the 2007 second quarter, representing an 8.3% annualized growth rate for the quarter. Loans grew $249 million during the first six months of 2007, representing an annualized 9.4% year-to-date growth rate. Ending deposits of $5.79 billion were approximately flat with first quarter levels and grew at an 8.0% annualized rate for the first six months of the year. Average loans and average deposits grew at 10.1% and 11.6% annualized rates during the 2007 second quarter, respectively. Ending total assets at June 30, 2007 were $7.9 billion.
On the credit quality front, ANB recognized $2.48 million in net charge- offs for the quarter, representing 0.18% of loans on an annualized basis, bringing the six month year-to-date annualized rate to 0.10%. The second quarter charge-offs were primarily comprised of charge-downs on properties on which the company's subsidiary banks have or expect to foreclose. The company recorded a provision for loan losses of $3.3 million in the 2007 second quarter, up from $1.9 million recorded in the 2006 second quarter. Nonaccrual loans were $10.7 million at quarter end, or 0.19% of total loans. Other real estate owned was $7.7 million, bringing total nonperforming assets to $18.4 million. As a percentage of period-end loans and other real estate owned, nonperforming assets rose to 0.32% in the 2007 second quarter as compared with 0.13% in the year ago quarter, and 0.24% in the quarter ended March 31, 2007.
"We are pleased to report improvement from the first quarter's performance, though our results remain below our long term expectations," said John H. Holcomb III, Chairman and CEO. "We were particularly pleased to be able to report a record quarter for revenue production. Our net interest margin held steady from first quarter 2007 levels, and we had respectable loan growth for the quarter and year-to-date. Deposit growth was also respectable on an average and year-to-date basis. Our noninterest income areas showed some improvement, with several business lines reporting record or near-record results. Although the quarter's 18 basis points in net loan losses and the 10 basis points in year-to-date net loan losses are both above our historical average, I believe we are continuing to take appropriate action on problem credits and to recognize problems promptly, which practices will serve us well in this economy."
ANB's performance resulted in a return on average tangible assets of 1.18% and a return on average tangible equity of 16.24% for the 2007 second quarter, down from 1.20% and 17.06% in the 2006 second quarter. On a 2007 year-to-date basis, these ratios were 1.14% and 15.71%, respectively. During the 2007 second quarter, ANB repurchased 200,000 shares of its common stock in open market purchases. Tangible book value per share at June 30, 2007 was $26.46.
ANB is a bank holding company operating 103 banking locations through eleven bank subsidiaries in Alabama, Florida and Georgia. Alabama subsidiaries include: First American Bank in north central Alabama; Alabama Exchange Bank in Tuskegee; and Bank of Dadeville. Florida subsidiaries are: Indian River National Bank in Vero Beach; First Gulf Bank, N.A. in north west Florida and Baldwin County, Alabama; Florida Choice Bank in metropolitan Orlando and central Florida; Community Bank of Naples, N.A.; CypressCoquina Bank in Ormond Beach; and Millennium Bank in Gainesville. ANB has two subsidiaries in Georgia: Georgia State Bank and The Peachtree Bank, both in metropolitan Atlanta. ANB provides full banking services to individuals and businesses. Commercial mortgage services, including the origination of permanent commercial real estate mortgage loans for various lenders, are provided by Byars and Company, a division of First American Bank. Brokerage services are provided to customers through First American Bank's wholly owned subsidiary, NBC Securities, Inc. Investments are not bank guaranteed, not FDIC insured and may lose value.
Alabama National BanCorporation common stock is traded on the NASDAQ Global Select Market under the symbol "ALAB."
Conference Call Instructions:
Alabama National will discuss financial results for the second quarter and six months ended June 30, 2007, as well as its goals and general outlook for the remainder of 2007, in a conference call to be held Wednesday, July 25, 2007 at 9:00 a.m. Central Time (10:00 Eastern Time). A listen-only simulcast and replay of Alabama National's conference call will be available on-line at the following Internet links:
http://www.alabamanational.com/, under "News,"
or
http://www.viavid.net/dce.aspx?sid=00004139,
on July 25, beginning at 9:00 a.m. Central Time. The on-line replay will follow immediately and continue for 30 days.
For live interactive access to the teleconference, please dial 1-800-811- 8824 at 9:00 a.m. Central Time (10:00 Eastern) on July 25. For those without Internet access, a telephonic replay will be available through August 25, 2007 by dialing 1-888-203-1112 and entering Replay Pass Code 1854784.
Many of the comparisons of financial data from period to period presented in the narrative of this release have been rounded from actual values reported in the attached selected unaudited financial tables. The percentage changes presented above are based on a comparison of the actual values recorded in the attached tables, not the rounded values.
This press release, including the attached selected unaudited financial tables which are a part of this release, contains financial information determined by methods other than in accordance with generally accepted accounting principles ("GAAP"). These "non-GAAP" financial measures are "cash earnings from continuing operations" (cash earnings per share from continuing operations), "tangible book value" (tangible book value per share), "return on average tangible equity" and "return on average tangible assets." ANB's management uses these non-GAAP measures in its analysis of ANB's performance. Cash earnings from continuing operations is defined as net income from continuing operations plus amortization expense (net of tax) applicable to intangible assets that do not qualify as regulatory capital. Cash earnings from continuing operations per basic and diluted share is defined as cash earnings from continuing operations divided by basic and diluted common shares outstanding. ANB's management includes cash earnings from continuing operations measures to compare the company's earnings exclusive of non-cash amortization expense and because it is a measure used by many investors as part of their analysis of ANB's performance. Tangible book value is defined as total equity reduced by recorded intangible assets. Tangible book value per share is defined as tangible book value divided by total common shares outstanding. This measure is important to many investors in the marketplace that are interested in changes from period to period in book value per share exclusive of changes in intangible assets. Goodwill, an intangible asset that is recorded in a purchase business combination, has the effect of increasing total book value while not increasing the tangible assets of the company. For companies such as Alabama National that have engaged in multiple business combinations, purchase accounting requires the recording of significant amounts of goodwill related to such transactions. Return on average tangible equity is defined as earnings for the period (annualized for the quarterly period) divided by average equity reduced by average goodwill and other intangible assets. Return on average tangible assets is defined as earnings for the period (annualized for the quarterly period) divided by average assets reduced by average goodwill and other intangible assets. ANB's management includes these measures because it believes that they are important when measuring the company's performance exclusive of the effects of goodwill and other intangibles recorded in recent acquisitions, and these measures are used by many investors as part of their analysis of ANB. These disclosures should not be viewed as a substitute for results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Refer to the "Reconciliation Table" in the attached unaudited financial tables for a more detailed analysis of these non- GAAP performance measures and the most directly comparable GAAP measures.
This press release contains forward-looking statements as defined by federal securities laws. Statements contained in this press release which are not historical facts are forward-looking statements. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. ANB undertakes no obligation to update these statements following the date of this press release. In addition, ANB, through its senior management, may make from time to time forward-looking public statements concerning the matters described herein. Such forward-looking statements are necessarily estimates reflecting the best judgment of ANB's senior management based upon current information and involve a number of risks and uncertainties. Certain factors which could affect the accuracy of such forward-looking statements are identified in the public filings made by ANB with the Securities and Exchange Commission, and forward looking statements contained in this press release or in other public statements of ANB or its senior management should be considered in light of those factors. There can be no assurance that such factors or other factors will not affect the accuracy of such forward-looking statements.
ALABAMA NATIONAL BANCORPORATION
(Unaudited Financial Highlights)
(in thousands, except per share amounts and percentages)
Three Months Ended
June 30, Percentage
2007 2006 Change (b)
Net interest income $64,206 $58,943 8.9%
Noninterest income 21,657 17,863 21.2
Total revenue 85,863 76,806 11.8
Provision for loan and lease losses 3,273 1,920 70.5
Noninterest expense 50,691 45,377 11.7
Income before taxes from continuing
operations 31,899 29,509 8.1
Income taxes 10,840 10,222 6.0
Net income from continuing
operations 21,059 19,287 9.2
Income from discontinued operations
(net of tax) 979 30 3163.3
Net income $22,038 $19,317 14.1%
Weighted average common and common
equivalent shares outstanding
Basic 20,714 18,806 10.1%
Diluted 20,858 18,984 9.9
Net income per common share from
continuing operations
Basic $1.02 $1.03 (0.9)%
Diluted 1.01 1.02 (.6)
Net income per common share
Basic $1.06 $1.03 3.6%
Diluted 1.06 1.02 3.8
Cash earnings per share from
continuing operations (a)
Total $21,918 $20,144 8.8%
Basic 1.06 1.07 (1.2)
Diluted 1.05 1.06 (1.0)
Cash dividends declared on
common stock $.41 $.375
Return on average assets 1.13% 1.16%
Return on average tangible assets 1.18 1.20
Return on average equity 10.14 11.33
Return on average tangible equity 16.24 17.06
Noninterest Income
Service charge income $4,190 $4,011 4.5%
Investment services income 1,664 966 72.3
Wealth management income 6,332 5,364 18.0
Gain on sale of mortgages 3,693 2,661 38.8
Commercial mortgage banking income 397 284 39.8
Gain on disposal of assets 104 32 225.0
Securities losses - (516) NM
Bank owned life insurance 1,120 798 40.4
Other 4,157 4,263 (2.5)
Total noninterest income $21,657 $17,863 21.2%
(a) Cash earnings exclude the effect on earnings of amortization expense
applicable to intangible assets that do not qualify as regulatory
capital.
(b) Percentage change based on actual not rounded values.
NM - Not meaningful
Six Months Ended
June 30, Percentage
2007 2006 Change (b)
Net interest income $127,257 $111,518 14.1%
Noninterest income 41,352 35,810 15.5
Total revenue 168,609 147,328 14.4
Provision for loan and lease losses 5,035 3,163 59.2
Noninterest expense 101,801 87,416 16.5
Income before taxes from continuing
operations 61,773 56,749 8.9
Income taxes 20,939 19,664 6.5
Net income from continuing
operations 40,834 37,085 10.1
Income from discontinued operations
(net of tax) 1,149 105 994.3
Net income $41,983 $37,190 12.9%
Weighted average common and common
equivalent shares outstanding
Basic 20,752 18,074 14.8%
Diluted 20,904 18,252 14.5
Net income per common share from
continuing operations
Basic $1.97 $2.05 (4.1)%
Diluted 1.95 2.03 (3.9)
Net income per common share
Basic $2.02 $2.06 (1.7)%
Diluted 2.01 2.04 (1.4)
Cash earnings per share from
continuing operations (a)
Total $42,643 $38,453 10.9%
Basic 2.05 2.13 (3.4)
Diluted 2.04 2.11 (3.2)
Cash dividends declared on
common stock $.82 $.75
Return on average assets 1.09% 1.19%
Return on average tangible assets 1.14 1.22
Return on average equity 9.76 11.88
Return on average tangible equity 15.71 19.33
Noninterest Income
Service charge income $8,112 $7,711 5.2%
Investment services income 2,725 1,830 48.9
Wealth management income 12,036 10,731 12.2
Gain on sale of mortgages 6,866 5,272 30.2
Commercial mortgage banking income 796 1,016 (21.7)
Gain on disposal of assets 493 539 (8.5)
Securities (losses) gains - (1,250) NM
Bank owned life insurance 2,225 1,540 44.5
Other 8,099 8,421 (3.8)
Total noninterest income $41,352 $35,810 15.5%
(a) Cash earnings exclude the effect on earnings of amortization expense
applicable to intangible assets that do not qualify as regulatory
capital.
(b) Percentage change based on actual not rounded values.
NM - Not meaningful
June 30, December 31, Percentage
2007 2006 Change
Total assets $7,902,537 $7,671,274 3.0%
Earning assets 7,083,566 6,856,309 3.3
Securities (a) 1,226,486 1,265,774 (3.1)
Loans held for sale 39,512 27,652 42.9
Loans and leases, net of unearned
income 5,705,522 5,456,136 4.6
Allowance for loan and lease losses 70,474 68,246 3.3
Deposits 5,785,510 5,567,603 3.9
Short-term borrowings 133,372 161,830 (17.6)
Long-term debt 442,378 402,399 9.9
Stockholders' equity 865,593 853,623 1.4
(a) Excludes trading securities
ASSET QUALITY ANALYSIS
(in thousands, except percentages)
As of / For the Three Months Ended
June 30, March 31, June 30,
2007 2007 2006
Nonaccrual loans $10,686 $11,985 $5,625
Restructured loans - - -
Loans past due 90 days or more and
still accruing - 0 - - 0 - - 0 -
Total nonperforming loans 10,686 11,985 5,625
Other real estate owned 7,678 1,607 401
Total nonperforming assets 18,364 13,592 6,026
Total non performing assets as a
percentage of period-end loans
and other real estate (a) 0.32% 0.24% 0.13%
Allowance for loan and lease losses 70,474 69,677 60,739
Provision for loan and lease losses 3,273 1,762 1,920
Loans charged off 2,799 501 513
Loan recoveries 323 170 405
Net loan and lease losses 2,476 331 108
Allowance for loan and lease losses
as a percentage of period-end loans
and leases (a) 1.24% 1.25% 1.26%
Allowance for loan and lease losses
as a percentage of period-end
nonperforming loans 659.50 581.37 1,079.80
Net losses to average loans and
leases (annualized) 0.18 0.02 0.01
For the Six Months Ended
June 30, Percentage
2007 2006 Change
Provision for loan and lease losses $5,035 $3,163 59.2%
Loans charged off 3,300 1,018 224.17
Loan recoveries 493 700 (29.6)
Net loan and lease losses 2,807 318 782.7
Net losses to average loans and
leases (annualized) 0.10% 0.01%
(a) Excludes loans held for sale
TAXABLE EQUIVALENT YIELDS/RATES
Three Months Ended
June 30, March 31, June 30,
2007 2007 2006
Interest income:
Interest and fees on loans 8.09% 8.13% 7.75%
Interest on securities:
Taxable 4.61 4.62 4.45
Non-taxable 6.08 6.22 6.41
Total interest earning assets 7.48 7.48 7.10
Interest expense:
Interest on deposits 4.17% 4.10% 3.38%
Interest on short-term borrowing 5.49 5.11 4.63
Interest on long-term debt 5.09 5.41 5.00
Total interest bearing liabilities 4.32 4.28 3.67
Net interest spread 3.16 3.20 3.43
Net interest margin 3.72 3.74 3.97
Six Months Ended
June 30,
2007 2006
Interest income:
Interest and fees on loans 8.11% 7.60%
Interest on securities:
Taxable 4.61 4.41
Non-taxable 6.15 6.47
Total interest earning assets 7.48 6.95
Interest expense:
Interest on deposits 4.13% 3.21%
Interest on short-term borrowing 5.28 4.68
Interest on long-term debt 5.24 4.86
Total interest bearing liabilities 4.30 3.49
Net interest spread 3.18 3.46
Net interest margin 3.73 3.97
STOCKHOLDERS' EQUITY AND CAPITAL RATIOS
June 30, December 31,
2007 2006
Stockholders' Equity:
Equity to assets 10.95% 11.13%
Leverage ratio 7.95 7.99
Book value per common share (a) $42.42 $41.51
Tangible book value per common
share (a)(b) 26.46 25.55
Ending shares outstanding 20,407 20,562
(a) Includes a cumulative mark to market adjustment to equity of $(0.48)
and $(0.29) per share at June 30, 2007 and December 31, 2006,
respectively.
(b) Total equity reduced by intangible assets divided by common shares
outstanding.
RECONCILIATION TABLE
(in thousands, except per share amounts and percentages)
Three Months Ended Six Months Ended
June 30, June 30,
2007 2006 2007 2006
Net income from
continuing operations $21,059 $19,287 $40,834 $37,085
Amortization of
intangibles, net
of tax 859 857 1,809 1,368
Cash earnings from
continuing operations $21,918 $20,144 $42,643 $38,453
Net income per common
share from continuing
operations - basic $1.02 $1.03 $1.97 $2.05
Effect of amortization
of intangibles
per share 0.04 0.04 0.08 0.08
Cash earnings per
common share from
continuing operations
- basic $1.06 $1.07 $2.05 $2.13
Net income per common
share from continuing
operations - diluted $1.01 $1.02 $1.95 $2.03
Effect of amortization
of intangibles
per share 0.04 0.04 0.09 0.08
Cash earnings per
common share from
continuing operations -
diluted $1.05 $1.06 $2.04 $2.11
Average assets $7,825,999 $6,678,659 $7,776,049 $6,326,862
Average intangible
assets (327,089) (229,375) (328,731) (193,489)
Average tangible
assets $7,498,910 $6,449,284 $7,447,318 $6,133,373
Return on average
assets 1.13% 1.16% 1.09% 1.19%
Effect of average
intangible assets 0.05 0.04 0.05 0.03
Return on average
tangible assets 1.18% 1.20% 1.14% 1.22%
Average equity $871,492 $683,649 $867,747 $631,380
Average intangible
assets (327,089) (229,375) (328,731) (193,489)
Average tangible
equity $544,403 $454,274 $539,016 $437,891
Return on average
equity 10.14% 11.33% 9.76% 11.88%
Effect of average
intangible assets 6.10 5.73 5.95 7.45
Return on average
tangible equity 16.24% 17.06% 15.71% 19.33%
As of
June 30, December 31,
2007 2006
Book value $865,593 $853,623
Intangible assets (325,566) (328,166)
Tangible book value $540,027 $525,457
Book value per common share $42.42 $41.51
Effect of intangible assets per share (15.96) (15.96)
Tangible book value per common share $26.46 $25.55
Alabama National BanCorporation and Subsidiaries
Consolidated Statements of Financial Condition (Unaudited)
(In thousands, except share amounts)
June 30, 2007 December 31, 2006
Assets
Cash and due from banks $182,101 $200,153
Interest-bearing deposits in
other banks 25,419 16,350
Federal funds sold and securities
purchased under resell agreements 83,627 89,865
Trading securities, at fair value 3,000 532
Investment securities (fair values
of $691,943 and $705,460) 713,900 716,406
Securities available for sale, at
fair value 512,586 549,368
Loans held for sale 39,512 27,652
Loans and leases 5,710,253 5,461,400
Unearned income (4,731) (5,264)
Loans and leases, net of unearned
income 5,705,522 5,456,136
Allowance for loan and lease losses (70,474) (68,246)
Net loans and leases 5,635,048 5,387,890
Property, equipment and leasehold
improvements, net 164,722 155,001
Assets to be disposed of - 3,549
Goodwill 311,682 311,583
Other intangible assets, net 13,884 16,583
Cash surrender value of life
insurance 107,248 104,992
Receivable from investment division
customers 6,438 1,114
Other assets 103,370 90,236
Totals $7,902,537 $7,671,274
Liabilities and Stockholders' Equity
Deposits:
Noninterest bearing $767,775 $849,127
Interest bearing 5,017,735 4,718,476
Total deposits 5,785,510 5,567,603
Federal funds purchased and
securities sold under repurchase
agreements 611,291 627,297
Liabilities to be disposed of - 1,019
Accrued expenses and other
liabilities 54,955 56,057
Payable for securities purchased
for investment division customers 9,438 1,446
Short-term borrowings 133,372 161,830
Long-term debt 442,378 402,399
Total liabilities 7,036,944 6,817,651
Common stock, $1 par; 50,000,000
shares authorized; 20,606,707 and
20,562,467 shares issued at
June 30, 2007 and December 31,
2006, respectively 20,607 20,562
Additional paid-in capital 575,836 573,756
Retained earnings 291,562 266,668
Treasury stock at cost, 200,000
shares at June 30, 2007 (12,578) -
Accumulated other comprehensive
loss, net of tax (9,834) (7,363)
Total stockholders' equity 865,593 853,623
Totals $7,902,537 $7,671,274
Alabama National BanCorporation and Subsidiaries
Consolidated Statements of Income (Unaudited)
(In thousands, except per share data)
For the For the
Three Months Six Months
Ended June 30, Ended June 30,
2007 2006 2007 2006
Interest income:
Interest and fees on loans
and leases 115,100 91,857 226,665 169,095
Interest on securities 13,838 12,924 27,966 25,054
Interest on deposits in other banks 270 146 554 225
Interest on trading securities 10 8 24 19
Interest on federal funds sold and
securities purchased under resell
agreements 907 993 1,794 1,725
Total interest income 130,125 105,928 257,003 196,118
Interest expense:
Interest on deposits 51,661 33,943 100,541 61,040
Interest on federal funds purchased
and securities sold under
repurchase agreements 7,235 7,255 14,819 13,065
Interest on short-term borrowings 1,669 724 3,675 1,121
Interest on long-term debt 5,354 5,063 10,711 9,374
Total interest expense 65,919 46,985 129,746 84,600
Net interest income 64,206 58,943 127,257 111,518
Provision for loan and lease losses 3,273 1,920 5,035 3,163
Net interest income after provision
for loan and lease losses 60,933 57,023 122,222 108,355
Noninterest income:
Securities losses - (516) - (1,250)
Gain on disposition of assets 104 32 493 539
Service charges on deposit accounts 4,190 4,011 8,112 7,711
Investment services income 1,664 966 2,725 1,830
Wealth management income 6,332 5,364 12,036 10,731
Gain on sale of mortgages 3,693 2,661 6,866 5,272
Commercial mortgage banking income 397 284 796 1,016
Bank owned life insurance 1,120 798 2,225 1,540
Other 4,157 4,263 8,099 8,421
Total noninterest income 21,657 17,863 41,352 35,810
Noninterest expense:
Salaries and employee benefits 25,187 22,822 52,255 45,407
Commission based compensation 5,386 4,423 9,933 8,557
Occupancy and equipment expenses 5,819 5,025 11,519 9,683
Amortization of intangibles 1,282 1,276 2,699 2,028
Other 13,017 11,831 25,395 21,741
Total noninterest expense 50,691 45,377 101,801 87,416
Income before provision for income
taxes from continuing operations 31,899 29,509 61,773 56,749
Provision for income taxes 10,840 10,222 20,939 19,664
Net income from continuing operations 21,059 19,287 40,834 37,085
Income from discontinued operations,
including a gain on disposal of
$1,462,000 for the three and
six months ended June 30, 2007
(net of tax) 979 30 1,149 105
Net income $22,038 $19,317 $41,983 $37,190
Weighted average common shares
outstanding:
Basic 20,714 18,806 20,752 18,074
Diluted 20,858 18,984 20,904 18,252
Earnings per common share from
continuing operations:
Basic $1.02 $1.03 $1.97 $2.05
Diluted $1.01 $1.02 $1.95 $2.03
Earnings per common share:
Basic $1.06 $1.03 $2.02 $2.06
Diluted $1.06 $1.02 $2.01 $2.04
AVERAGE BALANCES, INCOME AND EXPENSES AND RATES
(Amounts in thousands, except yields and rates)
Three Months 06/30/07
Average Income/ Yield/
Balance Expense Cost
Assets:
Earning assets:
Loans and leases (1) $5,714,954 $115,303 8.09%
Securities:
Taxable 1,078,873 12,393 4.61
Tax exempt 144,425 2,189 6.08
Cash balances in other banks 21,732 270 4.98
Funds sold 67,298 907 5.41
Trading account securities 859 10 4.67
Total earning assets (2) 7,028,141 131,072 7.48
Cash and due from banks 185,397
Premises and equipment 164,020
Other assets 518,772
Allowance for loan and lease losses (70,331)
Total assets $7,825,999
Liabilities:
Interest-bearing liabilities:
Interest-bearing transaction
accounts $1,199,127 $8,717 2.92%
Savings deposits 1,102,663 9,682 3.52
Time deposits 2,667,493 33,262 5.00
Funds purchased 611,175 7,235 4.75
Other short-term borrowings 121,946 1,669 5.49
Long-term debt 422,275 5,354 5.09
Total interest-bearing
liabilities 6,124,679 65,919 4.32
Demand deposits 779,936
Accrued interest and other
liabilities 49,892
Stockholders' equity 871,492
Total liabilities and
stockholders' equity $7,825,999
Net interest spread 3.16%
Net interest income/margin on
a taxable equivalent basis 65,153 3.72%
Tax equivalent adjustment (2) 947
Net interest income/margin $64,206 3.66%
Three Months 06/30/06
Average Income/ Yield/
Balance Expense Cost
Assets:
Earning assets:
Loans and leases (1) $4,758,596 $91,978 7.75%
Securities:
Taxable 1,089,534 12,087 4.45
Tax exempt 79,355 1,268 6.41
Cash balances in other banks 12,555 146 4.66
Funds sold 73,930 993 5.39
Trading account securities 814 8 3.94
Total earning assets (2) 6,014,784 106,480 7.10
Cash and due from banks 189,785
Premises and equipment 131,942
Other assets 402,259
Allowance for loan and lease losses (60,111)
Total assets $6,678,659
Liabilities:
Interest-bearing liabilities:
Interest-bearing transaction
accounts $1,145,632 $7,651 2.68%
Savings deposits 936,041 6,061 2.60
Time deposits 1,950,926 20,231 4.16
Funds purchased 634,029 7,255 4.59
Other short-term borrowings 62,783 724 4.63
Long-term debt 406,217 5,063 5.00
Total interest-bearing
liabilities 5,135,628 46,985 3.67
Demand deposits 773,744
Accrued interest and other
liabilities 85,638
Stockholders' equity 683,649
Total liabilities and
stockholders' equity $6,678,659
Net interest spread 3.43%
Net interest income/margin on
a taxable equivalent basis 59,495 3.97%
Tax equivalent adjustment (2) 552
Net interest income/margin $58,943 3.93%
(1) Average loans include nonaccrual loans. All loans and deposits are
domestic.
(2) Tax equivalent adjustments are based on the assumed rate of 34%,
and do not give effect to the disallowance for Federal income tax
purposes of interest expense related to certain tax-exempt assets.
AVERAGE BALANCES, INCOME AND EXPENSES AND RATES
(Amounts in thousands, except yields and rates)
Six Months 06/30/07
Average Income/ Yield/
Balance Expense Cost
Assets:
Earning assets:
Loans and leases (1) $5,647,459 $227,079 8.11%
Securities:
Taxable 1,097,562 25,098 4.61
Tax exempt 142,551 4,345 6.15
Cash balances in other banks 22,538 554 4.96
Funds sold 68,704 1,794 5.27
Trading account securities 982 24 4.93
Total earning assets (2) 6,979,796 258,894 7.48
Cash and due from banks 185,379
Premises and equipment 161,637
Other assets 518,970
Allowance for loan and lease losses (69,733)
Total assets $7,776,049
Liabilities:
Interest-bearing liabilities:
Interest-bearing transaction
accounts $1,190,925 $17,105 2.90%
Savings deposits 1,114,971 19,424 3.51
Time deposits 2,599,553 64,012 4.97
Funds purchased 627,872 14,819 4.76
Other short-term borrowings 140,443 3,675 5.28
Long-term debt 412,058 10,711 5.24
Total interest-bearing
liabilities 6,085,822 129,746 4.30
Demand deposits 766,770
Accrued interest and other
liabilities 55,710
Stockholders' equity 867,747
Total liabilities and
stockholders' equity $7,776,049
Net interest spread 3.18%
Net interest income/margin on
a taxable equivalent basis 129,148 3.73%
Tax equivalent adjustment (2) 1,891
Net interest income/margin $127,257 3.68%
Six Months 06/30/06
Average Income/ Yield/
Balance Expense Cost
Assets:
Earning assets:
Loans and leases (1) $4,493,694 $169,344 7.60%
Securities:
Taxable 1,079,285 23,627 4.41
Tax exempt 67,408 2,162 6.47
Cash balances in other banks 10,137 225 4.48
Funds sold 69,894 1,725 4.98
Trading account securities 904 19 4.24
Total earning assets (2) 5,721,322 197,102 6.95
Cash and due from banks 185,844
Premises and equipment 123,415
Other assets 353,164
Allowance for loan and lease losses (56,883)
Total assets $6,326,862
Liabilities:
Interest-bearing liabilities:
Interest-bearing transaction
accounts $1,087,705 $13,445 2.49%
Savings deposits 917,604 11,174 2.46
Time deposits 1,833,611 36,421 4.01
Funds purchased 608,120 13,065 4.33
Other short-term borrowings 48,349 1,121 4.68
Long-term debt 388,676 9,374 4.86
Total interest-bearing
liabilities 4,884,065 84,600 3.49
Demand deposits 730,340
Accrued interest and other
liabilities 81,077
Stockholders' equity 631,380
Total liabilities and
stockholders' equity $6,326,862
Net interest spread 3.46%
Net interest income/margin on
a taxable equivalent basis 112,502 3.97%
Tax equivalent adjustment (2) 984
Net interest income/margin $111,518 3.93%
(1) Average loans include nonaccrual loans. All loans and deposits are
domestic.
(2) Tax equivalent adjustments are based on the assumed rate of 34%,
and do not give effect to the disallowance for Federal income tax
purposes of interest expense related to certain tax-exempt assets.
