(Mark One) | |
þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE |
SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE |
SECURITIES EXCHANGE ACT OF 1934 |
COMMERCE BANCSHARES, INC. | ||
(Exact name of registrant as specified in its charter) |
Missouri | 43-0889454 | |
(State of Incorporation) | (IRS Employer Identification No.) | |
1000 Walnut, Kansas City, MO | 64106 | |
(Address of principal executive offices) | (Zip Code) | |
(816) 234-2000 | ||
(Registrant’s telephone number, including area code) |
Large accelerated filer þ | Accelerated filer o | Non-accelerated filer o | Smaller reporting company £ |
Page | |||
INDEX | |||
September 30, 2012 | December 31, 2011 | ||||||
(Unaudited) | |||||||
(In thousands) | |||||||
ASSETS | |||||||
Loans | $ | 9,638,645 | $ | 9,177,478 | |||
Allowance for loan losses | (175,032 | ) | (184,532 | ) | |||
Net loans | 9,463,613 | 8,992,946 | |||||
Loans held for sale | 8,741 | 31,076 | |||||
Investment securities: | |||||||
Available for sale ($742,060,000 and $418,046,000 pledged in 2012 and 2011, | |||||||
respectively, to secure repurchase agreements) | 9,020,951 | 9,224,702 | |||||
Trading | 13,595 | 17,853 | |||||
Non-marketable | 117,540 | 115,832 | |||||
Total investment securities | 9,152,086 | 9,358,387 | |||||
Short-term federal funds sold and securities purchased under agreements to resell | 10,475 | 11,870 | |||||
Long-term securities purchased under agreements to resell | 850,000 | 850,000 | |||||
Interest earning deposits with banks | 132,144 | 39,853 | |||||
Cash and due from banks | 426,742 | 465,828 | |||||
Land, buildings and equipment, net | 350,040 | 360,146 | |||||
Goodwill | 125,585 | 125,585 | |||||
Other intangible assets, net | 5,804 | 7,714 | |||||
Other assets | 353,539 | 405,962 | |||||
Total assets | $ | 20,878,769 | $ | 20,649,367 | |||
LIABILITIES AND EQUITY | |||||||
Deposits: | |||||||
Non-interest bearing | $ | 5,814,932 | $ | 5,377,549 | |||
Savings, interest checking and money market | 9,025,688 | 8,933,941 | |||||
Time open and C.D.'s of less than $100,000 | 1,094,215 | 1,166,104 | |||||
Time open and C.D.'s of $100,000 and over | 914,795 | 1,322,289 | |||||
Total deposits | 16,849,630 | 16,799,883 | |||||
Federal funds purchased and securities sold under agreements to repurchase | 1,257,949 | 1,256,081 | |||||
Other borrowings | 103,744 | 111,817 | |||||
Other liabilities | 360,374 | 311,225 | |||||
Total liabilities | 18,571,697 | 18,479,006 | |||||
Commerce Bancshares, Inc. stockholders’ equity: | |||||||
Preferred stock, $1 par value | |||||||
Authorized and unissued 2,000,000 shares | — | — | |||||
Common stock, $5 par value | |||||||
Authorized 100,000,000 shares; issued 89,277,398 shares in 2012 and 2011 | 446,387 | 446,387 | |||||
Capital surplus | 1,033,515 | 1,042,065 | |||||
Retained earnings | 717,138 | 575,419 | |||||
Treasury stock of 1,561,575 shares in 2012 and 217,755 shares in 2011, at cost | (60,644 | ) | (8,362 | ) | |||
Accumulated other comprehensive income | 166,040 | 110,538 | |||||
Total Commerce Bancshares, Inc. stockholders' equity | 2,302,436 | 2,166,047 | |||||
Non-controlling interest | 4,636 | 4,314 | |||||
Total equity | 2,307,072 | 2,170,361 | |||||
Total liabilities and equity | $ | 20,878,769 | $ | 20,649,367 |
For the Three Months Ended September 30 | For the Nine Months Ended September 30 | ||||||||||||
(In thousands, except per share data) | 2012 | 2011 | 2012 | 2011 | |||||||||
(Unaudited) | |||||||||||||
INTEREST INCOME | |||||||||||||
Interest and fees on loans | $ | 111,619 | $ | 114,731 | $ | 335,627 | $ | 349,877 | |||||
Interest and fees on loans held for sale | 85 | 270 | 278 | 877 | |||||||||
Interest on investment securities | 46,513 | 51,697 | 157,832 | 164,298 | |||||||||
Interest on short-term federal funds sold and securities purchased under | |||||||||||||
agreements to resell | 24 | 13 | 70 | 45 | |||||||||
Interest on long-term securities purchased under agreements to resell | 4,913 | 3,913 | 13,770 | 9,240 | |||||||||
Interest on deposits with banks | 40 | 211 | 207 | 411 | |||||||||
Total interest income | 163,194 | 170,835 | 507,784 | 524,748 | |||||||||
INTEREST EXPENSE | |||||||||||||
Interest on deposits: | |||||||||||||
Savings, interest checking and money market | 4,623 | 6,445 | 14,338 | 19,717 | |||||||||
Time open and C.D.'s of less than $100,000 | 1,945 | 2,413 | 6,055 | 9,121 | |||||||||
Time open and C.D.'s of $100,000 and over | 1,743 | 2,130 | 5,482 | 7,237 | |||||||||
Interest on federal funds purchased and securities sold under | |||||||||||||
agreements to repurchase | 221 | 292 | 623 | 1,601 | |||||||||
Interest on other borrowings | 851 | 925 | 2,633 | 2,759 | |||||||||
Total interest expense | 9,383 | 12,205 | 29,131 | 40,435 | |||||||||
Net interest income | 153,811 | 158,630 | 478,653 | 484,313 | |||||||||
Provision for loan losses | 5,581 | 11,395 | 18,961 | 39,372 | |||||||||
Net interest income after provision for loan losses | 148,230 | 147,235 | 459,692 | 444,941 | |||||||||
NON-INTEREST INCOME | |||||||||||||
Bank card transaction fees | 39,488 | 42,149 | 112,655 | 120,915 | |||||||||
Trust fees | 23,681 | 22,102 | 70,328 | 66,218 | |||||||||
Deposit account charges and other fees | 19,873 | 21,939 | 59,184 | 62,028 | |||||||||
Capital market fees | 5,110 | 5,556 | 16,991 | 15,255 | |||||||||
Consumer brokerage services | 2,441 | 2,333 | 7,543 | 7,876 | |||||||||
Loan fees and sales | 1,358 | 2,034 | 4,625 | 5,933 | |||||||||
Other | 8,971 | 5,519 | 24,995 | 20,657 | |||||||||
Total non-interest income | 100,922 | 101,632 | 296,321 | 298,882 | |||||||||
INVESTMENT SECURITIES GAINS (LOSSES), NET | |||||||||||||
Impairment (losses) reversals on debt securities | 5,989 | (1,200 | ) | 11,579 | 2,986 | ||||||||
Noncredit-related losses (reversals) on securities not expected to be sold | (6,546 | ) | 369 | (12,806 | ) | (4,741 | ) | ||||||
Net impairment losses | (557 | ) | (831 | ) | (1,227 | ) | (1,755 | ) | |||||
Realized gains on sales and fair value adjustments | 3,737 | 3,418 | 9,783 | 7,625 | |||||||||
Investment securities gains, net | 3,180 | 2,587 | 8,556 | 5,870 | |||||||||
NON-INTEREST EXPENSE | |||||||||||||
Salaries and employee benefits | 89,292 | 85,700 | 266,346 | 257,315 | |||||||||
Net occupancy | 11,588 | 11,510 | 33,953 | 34,760 | |||||||||
Equipment | 4,976 | 5,390 | 15,164 | 16,669 | |||||||||
Supplies and communication | 5,400 | 5,674 | 16,680 | 16,898 | |||||||||
Data processing and software | 19,279 | 16,232 | 55,030 | 50,230 | |||||||||
Marketing | 4,100 | 4,545 | 12,391 | 13,298 | |||||||||
Deposit insurance | 2,608 | 2,772 | 7,746 | 10,443 | |||||||||
Other | 16,148 | 21,923 | 52,882 | 61,606 | |||||||||
Total non-interest expense | 153,391 | 153,746 | 460,192 | 461,219 | |||||||||
Income before income taxes | 98,941 | 97,708 | 304,377 | 288,474 | |||||||||
Less income taxes | 32,155 | 31,699 | 99,541 | 91,898 | |||||||||
Net income | 66,786 | 66,009 | 204,836 | 196,576 | |||||||||
Less non-controlling interest expense | 780 | 657 | 2,298 | 1,737 | |||||||||
Net income attributable to Commerce Bancshares, Inc. | $ | 66,006 | $ | 65,352 | $ | 202,538 | $ | 194,839 | |||||
Net income per common share — basic | $ | .75 | $ | .72 | $ | 2.29 | $ | 2.14 | |||||
Net income per common share — diluted | $ | .75 | $ | .72 | $ | 2.29 | $ | 2.13 |
For the Three Months Ended September 30 | For the Nine Months Ended September 30 | |||||||||||||
(In thousands) | 2012 | 2011 | 2012 | 2011 | ||||||||||
(Unaudited) | ||||||||||||||
Net income | $ | 66,786 | $ | 66,009 | $ | 204,836 | $ | 196,576 | ||||||
Other comprehensive income (loss): | ||||||||||||||
Available for sale debt securities for which a portion of an other-than-temporary impairment (OTTI) has been recorded in earnings: | ||||||||||||||
Unrealized holding gains (losses) subsequent to initial OTTI recognition | 5,959 | (1,091 | ) | 12,245 | 4,572 | |||||||||
Income tax (expense) benefit | (2,264 | ) | 415 | (4,653 | ) | (1,737 | ) | |||||||
Net unrealized gains (losses) on OTTI securities | 3,695 | (676 | ) | 7,592 | 2,835 | |||||||||
Other available for sale investment securities: | ||||||||||||||
Unrealized holding gains | 40,582 | 53,143 | 75,427 | 78,278 | ||||||||||
Reclassification adjustment for gains included in net income | — | — | (342 | ) | (177 | ) | ||||||||
Net unrealized gains on securities | 40,582 | 53,143 | 75,085 | 78,101 | ||||||||||
Income tax expense | (15,422 | ) | (20,195 | ) | (28,533 | ) | (29,679 | ) | ||||||
Net unrealized gains on other securities | 25,160 | 32,948 | 46,552 | 48,422 | ||||||||||
Prepaid pension cost: | ||||||||||||||
Amortization of accumulated pension loss | 730 | 821 | 2,190 | 1,901 | ||||||||||
Income tax expense | (277 | ) | (312 | ) | (832 | ) | (722 | ) | ||||||
Pension loss amortization | 453 | 509 | 1,358 | 1,179 | ||||||||||
Other comprehensive income | 29,308 | 32,781 | 55,502 | 52,436 | ||||||||||
Comprehensive income | 96,094 | 98,790 | 260,338 | 249,012 | ||||||||||
Non-controlling interest expense | (780 | ) | (657 | ) | (2,298 | ) | (1,737 | ) | ||||||
Comprehensive income attributable to Commerce Bancshares, Inc. | $ | 95,314 | $ | 98,133 | $ | 258,040 | $ | 247,275 |
Commerce Bancshares, Inc. Shareholders | |||||||||||||||||||||
(In thousands, except per share data) | Common Stock | Capital Surplus | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Non-Controlling Interest | Total | ||||||||||||||
(Unaudited) | |||||||||||||||||||||
Balance January 1, 2012 | $ | 446,387 | $ | 1,042,065 | $ | 575,419 | $ | (8,362 | ) | $ | 110,538 | $ | 4,314 | $ | 2,170,361 | ||||||
Net income | 202,538 | 2,298 | 204,836 | ||||||||||||||||||
Other comprehensive income | 55,502 | 55,502 | |||||||||||||||||||
Distributions to non-controlling interest | (1,976 | ) | (1,976 | ) | |||||||||||||||||
Purchase of treasury stock | (75,536 | ) | (75,536 | ) | |||||||||||||||||
Issuance of stock under purchase and equity compensation plans | (4,987 | ) | 14,753 | 9,766 | |||||||||||||||||
Net tax benefit related to equity compensation plans | 1,233 | 1,233 | |||||||||||||||||||
Stock-based compensation | 3,705 | 3,705 | |||||||||||||||||||
Issuance of nonvested stock awards | (8,501 | ) | 8,501 | — | |||||||||||||||||
Cash dividends ($.690 per share) | (60,819 | ) | (60,819 | ) | |||||||||||||||||
Balance September 30, 2012 | $ | 446,387 | $ | 1,033,515 | $ | 717,138 | $ | (60,644 | ) | $ | 166,040 | $ | 4,636 | $ | 2,307,072 | ||||||
Balance January 1, 2011 | $ | 433,942 | $ | 971,293 | $ | 555,778 | $ | (2,371 | ) | $ | 63,345 | $ | 1,477 | $ | 2,023,464 | ||||||
Net income | 194,839 | 1,737 | 196,576 | ||||||||||||||||||
Other comprehensive income | 52,436 | 52,436 | |||||||||||||||||||
Distributions to non-controlling interest | (463 | ) | (463 | ) | |||||||||||||||||
Purchase of treasury stock | (101,111 | ) | (101,111 | ) | |||||||||||||||||
Issuance of stock under purchase and equity compensation plans | 1,563 | 5,261 | 7,236 | 14,060 | |||||||||||||||||
Net tax benefit related to equity compensation plans | 1,025 | 1,025 | |||||||||||||||||||
Stock-based compensation | 3,614 | 3,614 | |||||||||||||||||||
Issuance of nonvested stock awards | 976 | (1,017 | ) | 41 | — | ||||||||||||||||
Cash dividends ($.657 per share) | (59,636 | ) | (59,636 | ) | |||||||||||||||||
Balance September 30, 2011 | $ | 436,481 | $ | 980,176 | $ | 690,981 | $ | (96,205 | ) | $ | 115,781 | $ | 2,751 | $ | 2,129,965 |
For the Nine Months Ended September 30 | |||||||
(In thousands) | 2012 | 2011 | |||||
(Unaudited) | |||||||
OPERATING ACTIVITIES: | |||||||
Net income | $ | 204,836 | $ | 196,576 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Provision for loan losses | 18,961 | 39,372 | |||||
Provision for depreciation and amortization | 32,565 | 35,281 | |||||
Amortization of investment security premiums, net | 29,989 | 9,406 | |||||
Investment securities gains, net(A) | (8,556 | ) | (5,870 | ) | |||
Net gains on sales of loans held for sale | (376 | ) | (1,554 | ) | |||
Originations of loans held for sale | — | (41,231 | ) | ||||
Proceeds from sales of loans held for sale | 22,649 | 67,065 | |||||
Net (increase) decrease in trading securities | 5,454 | (2,941 | ) | ||||
Stock-based compensation | 3,705 | 3,614 | |||||
(Increase) decrease in interest receivable | 4,728 | (1,077 | ) | ||||
Decrease in interest payable | (1,067 | ) | (4,393 | ) | |||
Increase (decrease) in income taxes payable | (5,571 | ) | 14,863 | ||||
Net tax benefit related to equity compensation plans | (1,233 | ) | (1,025 | ) | |||
Other changes, net | (10,718 | ) | 3,011 | ||||
Net cash provided by operating activities | 295,366 | 311,097 | |||||
INVESTING ACTIVITIES: | |||||||
Proceeds from sales of investment securities(A) | 14,931 | 11,699 | |||||
Proceeds from maturities/pay downs of investment securities(A) | 2,341,083 | 1,968,848 | |||||
Purchases of investment securities(A) | (2,036,260 | ) | (2,926,445 | ) | |||
Net (increase) decrease in loans | (489,628 | ) | 288,987 | ||||
Long-term securities purchased under agreements to resell | (125,000 | ) | (500,000 | ) | |||
Repayments of long-term securities purchased under agreements to resell | 125,000 | 100,000 | |||||
Purchases of land, buildings and equipment | (19,243 | ) | (16,135 | ) | |||
Sales of land, buildings and equipment | 2,338 | 2,288 | |||||
Net cash used in investing activities | (186,779 | ) | (1,070,758 | ) | |||
FINANCING ACTIVITIES: | |||||||
Net increase in non-interest bearing, savings, interest checking and money market deposits | 554,167 | 1,090,342 | |||||
Net decrease in time open and C.D.'s | (479,383 | ) | (150,511 | ) | |||
Net increase in short-term federal funds purchased and securities sold under | |||||||
agreements to repurchase | 1,868 | 74,901 | |||||
Repayment of long-term borrowings | (8,073 | ) | (404 | ) | |||
Purchases of treasury stock | (75,536 | ) | (101,111 | ) | |||
Issuance of stock under stock purchase and equity compensation plans | 9,766 | 14,060 | |||||
Net tax benefit related to equity compensation plans | 1,233 | 1,025 | |||||
Cash dividends paid on common stock | (60,819 | ) | (59,636 | ) | |||
Net cash provided by (used in) financing activities | (56,777 | ) | 868,666 | ||||
Increase in cash and cash equivalents | 51,810 | 109,005 | |||||
Cash and cash equivalents at beginning of year | 517,551 | 460,675 | |||||
Cash and cash equivalents at September 30 | $ | 569,361 | $ | 569,680 | |||
(A) Available for sale and non-marketable securities | |||||||
Income tax payments, net | $ | 104,175 | $ | 76,795 | |||
Interest paid on deposits and borrowings | $ | 30,198 | $ | 44,828 | |||
Loans transferred to foreclosed real estate | $ | 7,178 | $ | 20,630 |
(In thousands) | September 30, 2012 | December 31, 2011 | ||||||
Commercial: | ||||||||
Business | $ | 3,098,908 | $ | 2,808,265 | ||||
Real estate – construction and land | 335,113 | 386,598 | ||||||
Real estate – business | 2,193,206 | 2,180,100 | ||||||
Personal Banking: | ||||||||
Real estate – personal | 1,556,754 | 1,428,777 | ||||||
Consumer | 1,243,400 | 1,114,889 | ||||||
Revolving home equity | 453,527 | 463,587 | ||||||
Consumer credit card | 748,885 | 788,701 | ||||||
Overdrafts | 8,852 | 6,561 | ||||||
Total loans | $ | 9,638,645 | $ | 9,177,478 |
For the Three Months Ended September 30 | For the Nine Months Ended September 30 | |||||||||||||||||||
(In thousands) | Commercial | Personal Banking | Total | Commercial | Personal Banking | Total | ||||||||||||||
Balance at beginning of period | $ | 114,671 | $ | 63,862 | $ | 178,533 | $ | 122,497 | $ | 62,035 | $ | 184,532 | ||||||||
Provision | (2,479 | ) | 8,060 | 5,581 | (10,125 | ) | 29,086 | 18,961 | ||||||||||||
Deductions: | ||||||||||||||||||||
Loans charged off | 1,795 | 12,480 | 14,275 | 7,502 | 39,710 | 47,212 | ||||||||||||||
Less recoveries on loans | 1,720 | 3,473 | 5,193 | 7,247 | 11,504 | 18,751 | ||||||||||||||
Net loans charged off | 75 | 9,007 | 9,082 | 255 | 28,206 | 28,461 | ||||||||||||||
Balance September 30, 2012 | $ | 112,117 | $ | 62,915 | $ | 175,032 | $ | 112,117 | $ | 62,915 | $ | 175,032 |
For the Three Months Ended September 30 | For the Nine Months Ended September 30 | |||||||||||||||||||
(In thousands) | Commercial | Personal Banking | Total | Commercial | Personal Banking | Total | ||||||||||||||
Balance at beginning of period | $ | 127,263 | $ | 64,275 | $ | 191,538 | $ | 119,946 | $ | 77,592 | $ | 197,538 | ||||||||
Provision | 1,503 | 9,892 | 11,395 | 16,783 | 22,589 | 39,372 | ||||||||||||||
Deductions: | ||||||||||||||||||||
Loans charged off | 4,047 | 14,831 | 18,878 | 14,357 | 47,512 | 61,869 | ||||||||||||||
Less recoveries on loans | 514 | 3,469 | 3,983 | 2,861 | 10,136 | 12,997 | ||||||||||||||
Net loans charged off | 3,533 | 11,362 | 14,895 | 11,496 | 37,376 | 48,872 | ||||||||||||||
Balance September 30, 2011 | $ | 125,233 | $ | 62,805 | $ | 188,038 | $ | 125,233 | $ | 62,805 | $ | 188,038 |
Impaired Loans | All Other Loans | ||||||||||||
(In thousands) | Allowance for Loan Losses | Loans Outstanding | Allowance for Loan Losses | Loans Outstanding | |||||||||
September 30, 2012 | |||||||||||||
Commercial | $ | 6,542 | $ | 88,678 | $ | 105,575 | $ | 5,538,549 | |||||
Personal Banking | 1,952 | 26,284 | 60,963 | 3,985,134 | |||||||||
Total | $ | 8,494 | $ | 114,962 | $ | 166,538 | $ | 9,523,683 | |||||
December 31, 2011 | |||||||||||||
Commercial | $ | 6,668 | $ | 108,167 | $ | 115,829 | $ | 5,266,796 | |||||
Personal Banking | 4,090 | 31,088 | 57,945 | 3,771,427 | |||||||||
Total | $ | 10,758 | $ | 139,255 | $ | 173,774 | $ | 9,038,223 |
(In thousands) | Sept. 30, 2012 | Dec. 31, 2011 | ||||||
Non-accrual loans | $ | 55,201 | $ | 75,482 | ||||
Restructured loans (accruing) | 59,761 | 63,773 | ||||||
Total impaired loans | $ | 114,962 | $ | 139,255 |
(In thousands) | Recorded Investment | Unpaid Principal Balance | Related Allowance | ||||||
September 30, 2012 | |||||||||
With no related allowance recorded: | |||||||||
Business | $ | 10,674 | $ | 12,291 | $ | — | |||
Real estate – construction and land | 7,173 | 13,558 | — | ||||||
Real estate – business | 7,289 | 8,524 | — | ||||||
Real estate – personal | 1,262 | 1,390 | — | ||||||
Revolving home equity | 510 | 843 | — | ||||||
$ | 26,908 | $ | 36,606 | $ | — | ||||
With an allowance recorded: | |||||||||
Business | $ | 19,644 | $ | 23,758 | $ | 1,873 | |||
Real estate – construction and land | 27,101 | 40,728 | 2,328 | ||||||
Real estate – business | 16,797 | 22,336 | 2,341 | ||||||
Real estate – personal | 7,601 | 10,746 | 764 | ||||||
Consumer | 1,435 | 1,475 | 21 | ||||||
Revolving home equity | 73 | 73 | 1 | ||||||
Consumer credit card | 15,403 | 15,403 | 1,166 | ||||||
$ | 88,054 | $ | 114,519 | $ | 8,494 | ||||
Total | $ | 114,962 | $ | 151,125 | $ | 8,494 | |||
December 31, 2011 | |||||||||
With no related allowance recorded: | |||||||||
Business | $ | 19,759 | $ | 22,497 | $ | — | |||
Real estate – construction and land | 8,391 | 22,746 | — | ||||||
Real estate – business | 6,853 | 9,312 | — | ||||||
Real estate – personal | 793 | 793 | — | ||||||
$ | 35,796 | $ | 55,348 | $ | — | ||||
With an allowance recorded: | |||||||||
Business | $ | 15,604 | $ | 19,286 | $ | 1,500 | |||
Real estate – construction and land | 37,387 | 47,516 | 2,580 | ||||||
Real estate – business | 20,173 | 24,799 | 2,588 | ||||||
Real estate – personal | 7,867 | 10,671 | 795 | ||||||
Consumer credit card | 22,428 | 22,428 | 3,295 | ||||||
$ | 103,459 | $ | 124,700 | $ | 10,758 | ||||
Total | $ | 139,255 | $ | 180,048 | $ | 10,758 |
(In thousands) | Commercial | Personal Banking | Total | ||||||
Average Impaired Loans: | |||||||||
For the three months ended September 30, 2012 | |||||||||
Non-accrual loans | $ | 51,337 | $ | 7,621 | $ | 58,958 | |||
Restructured loans (accruing) | 41,885 | 19,750 | 61,635 | ||||||
Total | $ | 93,222 | $ | 27,371 | $ | 120,593 | |||
For the nine months ended September 30, 2012 | |||||||||
Non-accrual loans | $ | 59,159 | $ | 7,399 | $ | 66,558 | |||
Restructured loans (accruing) | 44,063 | 21,204 | 65,267 | ||||||
Total | $ | 103,222 | $ | 28,603 | $ | 131,825 | |||
For the three months ended September 30, 2011 | |||||||||
Non-accrual loans | $ | 68,554 | $ | 7,733 | $ | 76,287 | |||
Restructured loans (accruing) | 41,993 | 22,522 | 64,515 | ||||||
Total | $ | 110,547 | $ | 30,255 | $ | 140,802 | |||
For the nine months ended September 30, 2011 | |||||||||
Non-accrual loans | $ | 70,962 | $ | 7,277 | $ | 78,239 | |||
Restructured loans (accruing) | 43,652 | 21,584 | 65,236 | ||||||
Total | $ | 114,614 | $ | 28,861 | $ | 143,475 |
For the Three Months Ended September 30 | For the Nine Months Ended September 30 | ||||||||||||
(In thousands) | 2012 | 2011 | 2012 | 2011 | |||||||||
Interest income recognized on impaired loans: | |||||||||||||
Business | $ | 248 | $ | 72 | $ | 745 | $ | 217 | |||||
Real estate – construction and land | 210 | 192 | 630 | 575 | |||||||||
Real estate – business | 72 | 174 | 216 | 522 | |||||||||
Real estate – personal | 22 | 8 | 65 | 24 | |||||||||
Consumer | 16 | — | 47 | — | |||||||||
Revolving home equity | 1 | — | 2 | — | |||||||||
Consumer credit card | 328 | 484 | 983 | 1,451 | |||||||||
Total | $ | 897 | $ | 930 | $ | 2,688 | $ | 2,789 |
(In thousands) | Current or Less Than 30 Days Past Due | 30 – 89 Days Past Due | 90 Days Past Due and Still Accruing | Non-accrual | Total | ||||||||||
September 30, 2012 | |||||||||||||||
Commercial: | |||||||||||||||
Business | $ | 3,081,649 | $ | 2,598 | $ | 595 | $ | 14,066 | $ | 3,098,908 | |||||
Real estate – construction and land | 318,841 | 549 | 300 | 15,423 | 335,113 | ||||||||||
Real estate – business | 2,158,019 | 16,668 | 90 | 18,429 | 2,193,206 | ||||||||||
Personal Banking: | |||||||||||||||
Real estate – personal | 1,535,326 | 12,988 | 1,798 | 6,642 | 1,556,754 | ||||||||||
Consumer | 1,226,713 | 15,350 | 1,206 | 131 | 1,243,400 | ||||||||||
Revolving home equity | 450,540 | 1,494 | 983 | 510 | 453,527 | ||||||||||
Consumer credit card | 732,749 | 8,876 | 7,260 | — | 748,885 | ||||||||||
Overdrafts | 8,516 | 336 | — | — | 8,852 | ||||||||||
Total | $ | 9,512,353 | $ | 58,859 | $ | 12,232 | $ | 55,201 | $ | 9,638,645 | |||||
December 31, 2011 | |||||||||||||||
Commercial: | |||||||||||||||
Business | $ | 2,777,578 | $ | 4,368 | $ | 595 | $ | 25,724 | $ | 2,808,265 | |||||
Real estate – construction and land | 362,592 | 1,113 | 121 | 22,772 | 386,598 | ||||||||||
Real estate – business | 2,151,822 | 8,875 | 29 | 19,374 | 2,180,100 | ||||||||||
Personal Banking: | |||||||||||||||
Real estate – personal | 1,406,449 | 11,671 | 3,045 | 7,612 | 1,428,777 | ||||||||||
Consumer | 1,096,742 | 15,917 | 2,230 | — | 1,114,889 | ||||||||||
Revolving home equity | 461,941 | 1,003 | 643 | — | 463,587 | ||||||||||
Consumer credit card | 769,922 | 10,484 | 8,295 | — | 788,701 | ||||||||||
Overdrafts | 6,173 | 388 | — | — | 6,561 | ||||||||||
Total | $ | 9,033,219 | $ | 53,819 | $ | 14,958 | $ | 75,482 | $ | 9,177,478 |
Commercial Loans | ||||||||||||
(In thousands) | Business | Real Estate-Construction | Real Estate- Business | Total | ||||||||
September 30, 2012 | ||||||||||||
Pass | $ | 2,978,076 | $ | 276,077 | $ | 2,057,584 | $ | 5,311,737 | ||||
Special mention | 56,130 | 7,388 | 44,936 | 108,454 | ||||||||
Substandard | 50,636 | 36,225 | 72,257 | 159,118 | ||||||||
Non-accrual | 14,066 | 15,423 | 18,429 | 47,918 | ||||||||
Total | $ | 3,098,908 | $ | 335,113 | $ | 2,193,206 | $ | 5,627,227 | ||||
December 31, 2011 | ||||||||||||
Pass | $ | 2,669,868 | $ | 304,408 | $ | 1,994,391 | $ | 4,968,667 | ||||
Special mention | 37,460 | 4,722 | 52,683 | 94,865 | ||||||||
Substandard | 75,213 | 54,696 | 113,652 | 243,561 | ||||||||
Non-accrual | 25,724 | 22,772 | 19,374 | 67,870 | ||||||||
Total | $ | 2,808,265 | $ | 386,598 | $ | 2,180,100 | $ | 5,374,963 |
Personal Banking Loans | ||||||||
% of Loan Category | ||||||||
Real Estate - Personal | Consumer | Revolving Home Equity | Consumer Credit Card | |||||
September 30, 2012 | ||||||||
FICO score: | ||||||||
Under 600 | 2.4 | % | 6.5 | % | 2.4 | % | 4.4 | % |
600 - 659 | 3.6 | 10.4 | 5.6 | 11.6 | ||||
660 - 719 | 10.0 | 24.3 | 16.3 | 32.7 | ||||
720 - 779 | 26.7 | 26.7 | 29.0 | 28.4 | ||||
780 and Over | 57.3 | 32.1 | 46.7 | 22.9 | ||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
December 31, 2011 | ||||||||
FICO score: | ||||||||
Under 600 | 3.4 | % | 8.4 | % | 2.6 | % | 4.9 | % |
600 - 659 | 4.1 | 11.0 | 4.9 | 11.2 | ||||
660 - 719 | 12.2 | 23.2 | 15.1 | 31.0 | ||||
720 - 779 | 29.2 | 26.0 | 26.3 | 29.0 | ||||
780 and Over | 51.1 | 31.4 | 51.1 | 23.9 | ||||
Total | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
(In thousands) | September 30, 2012 | Balance 90 days past due at any time during previous 12 months | ||||
Commercial: | ||||||
Business | $ | 25,951 | $ | 974 | ||
Real estate - construction and land | 32,180 | 8,189 | ||||
Real estate - business | 8,003 | 357 | ||||
Personal Banking: | ||||||
Real estate - personal | 4,350 | 553 | ||||
Consumer | 1,304 | — | ||||
Revolving home equity | 73 | 49 | ||||
Consumer credit card | 15,403 | 887 | ||||
Total restructured loans | $ | 87,264 | $ | 11,009 |
(In thousands) | Sept. 30, 2012 | Dec. 31, 2011 | ||||
Available for sale | $ | 9,020,951 | $ | 9,224,702 | ||
Trading | 13,595 | 17,853 | ||||
Non-marketable | 117,540 | 115,832 | ||||
Total investment securities | $ | 9,152,086 | $ | 9,358,387 |
(In thousands) | Amortized Cost | Fair Value | ||||
U.S. government and federal agency obligations: | ||||||
Within 1 year | $ | 500 | $ | 500 | ||
After 1 but within 5 years | 217,296 | 241,881 | ||||
After 5 but within 10 years | 106,679 | 125,116 | ||||
Total U.S. government and federal agency obligations | 324,475 | 367,497 | ||||
Government-sponsored enterprise obligations: | ||||||
After 1 but within 5 years | 108,506 | 112,286 | ||||
After 5 but within 10 years | 74,682 | 75,436 | ||||
After 10 years | 191,337 | 192,468 | ||||
Total government-sponsored enterprise obligations | 374,525 | 380,190 | ||||
State and municipal obligations: | ||||||
Within 1 year | 92,856 | 93,592 | ||||
After 1 but within 5 years | 629,641 | 655,509 | ||||
After 5 but within 10 years | 510,060 | 528,245 | ||||
After 10 years | 193,502 | 183,905 | ||||
Total state and municipal obligations | 1,426,059 | 1,461,251 | ||||
Mortgage and asset-backed securities: | ||||||
Agency mortgage-backed securities | 3,311,100 | 3,471,262 | ||||
Non-agency mortgage-backed securities | 241,657 | 255,172 | ||||
Asset-backed securities | 2,917,206 | 2,930,810 | ||||
Total mortgage and asset-backed securities | 6,469,963 | 6,657,244 | ||||
Other debt securities: | ||||||
Within 1 year | 45,809 | 46,574 | ||||
After 1 but within 5 years | 60,744 | 63,898 | ||||
After 5 but within 10 years | 3,969 | 4,047 | ||||
After 10 years | 6,988 | 7,104 | ||||
Total other debt securities | 117,510 | 121,623 | ||||
Equity securities | 8,483 | 33,146 | ||||
Total available for sale investment securities | $ | 8,721,015 | $ | 9,020,951 |
(In thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||
September 30, 2012 | ||||||||||||
U.S. government and federal agency obligations | $ | 324,475 | $ | 43,022 | $ | — | $ | 367,497 | ||||
Government-sponsored enterprise obligations | 374,525 | 5,678 | (13 | ) | 380,190 | |||||||
State and municipal obligations | 1,426,059 | 48,313 | (13,121 | ) | 1,461,251 | |||||||
Mortgage and asset-backed securities: | ||||||||||||
Agency mortgage-backed securities | 3,311,100 | 160,215 | (53 | ) | 3,471,262 | |||||||
Non-agency mortgage-backed securities | 241,657 | 13,698 | (183 | ) | 255,172 | |||||||
Asset-backed securities | 2,917,206 | 14,840 | (1,236 | ) | 2,930,810 | |||||||
Total mortgage and asset-backed securities | 6,469,963 | 188,753 | (1,472 | ) | 6,657,244 | |||||||
Other debt securities | 117,510 | 4,113 | — | 121,623 | ||||||||
Equity securities | 8,483 | 24,663 | — | 33,146 | ||||||||
Total | $ | 8,721,015 | $ | 314,542 | $ | (14,606 | ) | $ | 9,020,951 | |||
December 31, 2011 | ||||||||||||
U.S. government and federal agency obligations | $ | 328,530 | $ | 36,135 | $ | — | $ | 364,665 | ||||
Government-sponsored enterprise obligations | 311,529 | 4,169 | — | 315,698 | ||||||||
State and municipal obligations | 1,220,840 | 35,663 | (11,219 | ) | 1,245,284 | |||||||
Mortgage and asset-backed securities: | ||||||||||||
Agency mortgage-backed securities | 3,989,464 | 117,088 | (493 | ) | 4,106,059 | |||||||
Non-agency mortgage-backed securities | 315,752 | 8,962 | (7,812 | ) | 316,902 | |||||||
Asset-backed securities | 2,692,436 | 7,083 | (6,376 | ) | 2,693,143 | |||||||
Total mortgage and asset-backed securities | 6,997,652 | 133,133 | (14,681 | ) | 7,116,104 | |||||||
Other debt securities | 135,190 | 6,070 | — | 141,260 | ||||||||
Equity securities | 18,354 | 23,337 | — | 41,691 | ||||||||
Total | $ | 9,012,095 | $ | 238,507 | $ | (25,900 | ) | $ | 9,224,702 |
Significant Inputs | Range | ||
Prepayment CPR | 0% | - | 25% |
Projected cumulative default | 13% | - | 58% |
Credit support | 0% | - | 16% |
Loss severity | 33% | - | 70% |
For the Nine Months Ended September 30 | ||||||
(In thousands) | 2012 | 2011 | ||||
Balance at January 1 | $ | 9,931 | $ | 7,542 | ||
Credit losses on debt securities for which impairment was not previously recognized | — | 53 | ||||
Credit losses on debt securities for which impairment was previously recognized | 1,227 | 1,702 | ||||
Increase in expected cash flows that are recognized over remaining life of security | (93 | ) | (105 | ) | ||
Balance at September 30 | $ | 11,065 | $ | 9,192 |
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||
(In thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||
September 30, 2012 | ||||||||||||||||||||
Government-sponsored enterprise obligations | $ | 9,979 | $ | 13 | $ | — | $ | — | $ | 9,979 | $ | 13 | ||||||||
State and municipal obligations | 16,548 | 34 | 98,242 | 13,087 | 114,790 | 13,121 | ||||||||||||||
Mortgage and asset-backed securities: | ||||||||||||||||||||
Agency mortgage-backed securities | 6,072 | 5 | 19,145 | 48 | 25,217 | 53 | ||||||||||||||
Non-agency mortgage-backed securities | — | — | 19,445 | 183 | 19,445 | 183 | ||||||||||||||
Asset-backed securities | 122,645 | 770 | 90,503 | 466 | 213,148 | 1,236 | ||||||||||||||
Total mortgage and asset-backed securities | 128,717 | 775 | 129,093 | 697 | 257,810 | 1,472 | ||||||||||||||
Total | $ | 155,244 | $ | 822 | $ | 227,335 | $ | 13,784 | $ | 382,579 | $ | 14,606 | ||||||||
December 31, 2011 | ||||||||||||||||||||
State and municipal obligations | $ | 65,962 | $ | 712 | $ | 110,807 | $ | 10,507 | $ | 176,769 | $ | 11,219 | ||||||||
Mortgage and asset-backed securities: | ||||||||||||||||||||
Agency mortgage-backed securities | 72,019 | 493 | — | — | 72,019 | 493 | ||||||||||||||
Non-agency mortgage-backed securities | 23,672 | 784 | 118,972 | 7,028 | 142,644 | 7,812 | ||||||||||||||
Asset-backed securities | 1,236,526 | 4,982 | 87,224 | 1,394 | 1,323,750 | 6,376 | ||||||||||||||
Total mortgage and asset-backed securities | 1,332,217 | 6,259 | 206,196 | 8,422 | 1,538,413 | 14,681 | ||||||||||||||
Total | $ | 1,398,179 | $ | 6,971 | $ | 317,003 | $ | 18,929 | $ | 1,715,182 | $ | 25,900 |
% of Portfolio | Average Life (in years) | Average Rating (Moody’s) | ||
At September 30, 2012 | ||||
Texas | 9.9 | % | 5.2 | Aa1 |
Florida | 9.5 | 4.7 | Aa2 | |