Delaware
|
95-4596322
|
|
(State
or Other Jurisdiction of Incorporation or Organization)
|
(I.R.S.
Employer Identification No.)
|
|
888
Prospect Street, Suite 110, La Jolla, California
|
92037
|
|
(Address
of Principal Executive Offices)
|
(Zip
Code)
|
Title
of Each Class
|
Name
of Exchange on Which Registered
|
|
Common
Stock, $.01 Par Value
|
New
York Stock Exchange
|
|
|
Page
|
PART
I
|
||
3
|
||
12
|
||
16
|
||
17
|
||
17
|
||
17
|
||
PART
II
|
||
18
|
||
20
|
||
22
|
||
40
|
||
42
|
||
70
|
||
70
|
||
70
|
||
PART
III
|
||
71
|
||
73
|
||
92
|
||
94
|
||
95
|
||
PART
IV
|
||
96
|
||
97
|
||
Certifications
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
•Chairman,
President, and Chief Executive Officer
|
•Managing
Director/Credit Risk Management
|
•Vice
Chairman and Chief Credit Officer
|
•Deputy
Managing Director/Eastern Area Manager
|
•Executive
Managing Director/Chief Operating Officer
|
•Deputy
Managing Director/Loan Underwriting
|
•Senior
Managing Director/Chief Lending Officer
|
•First
Vice President/East Coast Credit Executive
|
•Senior
Managing Director/Chief of Lending Operations
|
•First
Vice President/Chief Underwriter-Express Loan
Operations
|
•
|
|
the
risk characteristics of various classifications of loans;
|
•
|
|
general
portfolio trends relative to asset and portfolio size;
|
•
|
|
potential
credit and geographic concentrations;
|
•
|
|
delinquency
trends and nonaccrual levels;
|
•
|
|
historical
loss and recovery experience and risks associated with changes in
economic, social and business conditions;
|
•
|
|
the
amount and quality of the collateral;
|
•
|
|
the
views of our regulators; and
|
•
|
|
the
underwriting standards in effect when the loan is made.
|
• |
changes
or continued weakness in general or local economic
conditions;
|
• |
changes
or continued weakness in specific industry
segments;
|
• |
declines
in real estate values;
|
• |
declines
in rental, room or occupancy rates in hotels, apartment complexes
or
commercial properties;
|
• |
increases
in other operating expenses (including energy
costs);
|
• |
the
availability of refinancing at lower interest rates or better loan
terms;
|
• |
changes
in governmental rules, regulations and fiscal policies, including
rent
control ordinances, environmental legislation and
taxation;
|
• |
increases
in interest rates, real estate and personal property tax rates,
and
|
• |
other
factors beyond the control of the borrower or the
lender.
|
Locations
|
Office
Uses
|
Square
Footage
|
Year
Current Lease Term
Expires
|
La
Jolla, CA
|
Corporate
Headquarters
|
21,903
|
2008
|
Glendale,
CA
|
Loan
Operations Division/Loan Administration/Asset
Management/Operations Support
|
28,467
|
2012
|
New
York, NY
|
East
Coast Corporate Headquarters
|
3,810
|
2009
|
Century
City, CA
|
ICB
Entertainment Finance
|
7,003
|
2008
|
Glendale,
CA
|
Bank
Branch
|
4,791
|
2012
|
Encino,
CA
|
Bank
Branch
|
5,145
|
2009
|
San
Francisco, CA
|
Bank
Branch
|
5,005
|
2014
|
Costa
Mesa, CA
|
Bank
Branch
|
3,609
|
2011
|
San
Diego, CA
|
Bank
Branch
|
3,046
|
2011
|
Beverly
Hills, CA
|
Bank
Branch
|
2,218
|
2010
|
Carson
City, NV
|
Bank
Branch
|
3,000
|
2008
|
Walnut
Creek, CA
|
Loan
Origination Office
|
2,220
|
2009
|
Boston,
MA
|
Loan
Origination Office
|
3,309
|
2009
|
Atlanta,
GA
|
Loan
Origination Office
|
3,148
|
2008
|
Fairfield,
CT
|
Loan
Origination Office
|
1,992
|
2007
|
Redbank,
NJ
|
Loan
Origination Office
|
1,800
|
2009
|
Houston,
TX
|
Loan
Origination Office
|
3,420
|
2011
|
Market
Price
|
Average
Daily
|
||||||||||||
|
High
|
Low
|
Close
|
Closing
Price
|
|||||||||
2006
4th
Quarter
|
$
|
58.96
|
$
|
50.75
|
$
|
57.91
|
$
|
54.91
|
|||||
3rd
Quarter
|
55.15
|
49.10
|
53.76
|
51.76
|
|||||||||
2nd
Quarter
|
52.93
|
46.14
|
52.58
|
49.55
|
|||||||||
1st
Quarter
|
50.20
|
44.65
|
48.22
|
47.28
|
|||||||||
2005
4th
Quarter
|
$
|
53.55
|
$
|
47.35
|
$
|
48.85
|
$
|
50.53
|
|||||
3rd
Quarter
|
59.30
|
50.50
|
52.49
|
54.30
|
|||||||||
2nd
Quarter
|
56.95
|
43.36
|
53.90
|
49.62
|
|||||||||
1st
Quarter
|
58.31
|
49.37
|
49.96
|
53.89
|
Cash
dividends declared per share
|
2006
|
2005
|
|||||
1st
Quarter
|
$
|
0.15
|
$
|
—
|
|||
2nd
Quarter
|
0.15
|
—
|
|||||
3rd
Quarter
|
0.15
|
—
|
|||||
4th
Quarter
|
0.15
|
—
|
|||||
Total
|
$
|
0.60
|
$
|
—
|
Period
|
Total
Number of Shares Purchased
|
Average
Price Paid per Share
|
Total
Number of Shares Purchased as Part of Publicly Announced Plans or
Programs
|
Maximum
Number of Shares that May Yet Be Purchased Under the Plans or Programs
(1)
|
|||||||||
October
1, 2006 to October
31, 2006
|
30,000
|
$
|
54.80
|
30,000
|
307,011
|
||||||||
November
1, 2006 to November
30, 2006
|
—
|
—
|
—
|
307,011
|
|||||||||
December
1, 2006 to December
31, 2006
|
9,050
|
55.52
|
9,050
|
297,961
|
|||||||||
Total
|
39,050
|
$
|
54.97
|
39,050
|
297,961
|
12/31/01
|
12/31/02
|
12/31/03
|
12/31/04
|
12/31/05
|
12/31/06
|
|
ITLA
Capital Corporation
|
100.00
|
158.54
|
239.03
|
280.49
|
233.06
|
279.48
|
NASDAQ
Composite (1)
|
100.00
|
68.76
|
103.67
|
113.16
|
115.57
|
127.58
|
SNL
Bank Index
|
100.00
|
91.69
|
123.69
|
138.61
|
140.50
|
164.35
|
|
For
the years ended December 31,
|
|||||||||||||||
|
2006
|
2005
|
2004
|
2003
|
2002
|
|||||||||||
(in
thousands, except per share amount)
|
||||||||||||||||
Condensed
Consolidated Statements of Operations
Total
interest income
|
$
|
226,501
|
$
|
178,158
|
$
|
124,954
|
$
|
115,977
|
$
|
110,608
|
||||||
Total
interest expense
|
132,075
|
86,486
|
41,418
|
30,867
|
37,322
|
|||||||||||
Net
interest income before provision for loan losses
|
94,426
|
91,672
|
83,536
|
85,110
|
73,286
|
|||||||||||
Provision
for loan losses
|
5,000
|
10,250
|
4,725
|
7,760
|
9,030
|
|||||||||||
Net
interest income after provision for loan losses
|
89,426
|
81,422
|
78,811
|
77,350
|
64,256
|
|||||||||||
Non-interest
income (1)
|
2,772
|
6,574
|
14,508
|
15,240
|
373
|
|||||||||||
Non-interest
expense:
|
||||||||||||||||
Compensation
and benefits
|
21,265
|
21,737
|
21,444
|
18,870
|
13,954
|
|||||||||||
Occupancy
and equipment
|
7,439
|
7,177
|
5,924
|
4,839
|
3,165
|
|||||||||||
Other
general and administrative expenses
|
17,743
|
17,344
|
14,666
|
13,006
|
9,913
|
|||||||||||
Real
estate owned expense, net
|
369
|
193
|
712
|
1,212
|
1,323
|
|||||||||||
Total
non-interest expense
|
46,816
|
46,451
|
42,746
|
37,927
|
28,355
|
|||||||||||
Income
before provision for income taxes and minority interest in income
of
subsidiary
|
45,382
|
41,545
|
50,573
|
54,663
|
36,274
|
|||||||||||
Minority
interest in income of subsidiary (2)(3)
|
—
|
—
|
—
|
6,083
|
3,481
|
|||||||||||
Income
before provision for income taxes
|
45,382
|
41,545
|
50,573
|
48,580
|
32,793
|
|||||||||||
Provision
for income taxes
|
18,493
|
17,482
|
19,948
|
18,946
|
12,788
|
|||||||||||
NET
INCOME
|
$
|
26,889
|
$
|
24,063
|
$
|
30,625
|
$
|
29,634
|
$
|
20,005
|
||||||
BASIC
EARNINGS PER SHARE
|
$
|
4.83
|
$
|
4.19
|
$
|
5.04
|
$
|
4.91
|
$
|
3.35
|
||||||
DILUTED
EARNINGS PER SHARE
|
$
|
4.71
|
$
|
4.04
|
$
|
4.75
|
$
|
4.55
|
$
|
3.16
|
|
As
of December 31,
|
|||||||||||||||
|
2006
|
2005
|
2004
|
2003
|
2002
|
|||||||||||
(in
thousands, except per share amount)
|
||||||||||||||||
Condensed
Consolidated Statements of Financial Condition
|
||||||||||||||||
Cash
and cash equivalents
|
$
|
30,448
|
$
|
93,747
|
$
|
87,580
|
$
|
178,318
|
$
|
160,848
|
||||||
Investment
securities available-for-sale, at fair value
|
99,527
|
92,563
|
66,845
|
53,093
|
54,677
|
|||||||||||
Investment
securities held-to-maturity, at amortized cost
|
193,512
|
233,880
|
296,028
|
—
|
—
|
|||||||||||
Stock
in Federal Home Loan Bank
|
48,984
|
43,802
|
23,200
|
17,966
|
16,934
|
|||||||||||
Loans,
net
|
2,973,368
|
2,523,480
|
1,793,815
|
1,505,424
|
1,438,234
|
|||||||||||
Interest
receivable
|
20,753
|
16,287
|
10,695
|
8,958
|
9,158
|
|||||||||||
Other
real estate owned, net
|
6,729
|
3,960
|
—
|
7,048
|
12,593
|
|||||||||||
Premises
and equipment, net
|
7,851
|
6,718
|
6,645
|
5,766
|
4,197
|
|||||||||||
Deferred
income taxes
|
11,513
|
12,717
|
10,468
|
11,609
|
13,822
|
|||||||||||
Goodwill
|
3,118
|
3,118
|
3,118
|
3,118
|
3,118
|
|||||||||||
Other
assets
|
19,707
|
20,924
|
19,677
|
26,915
|
8,384
|
|||||||||||
Total
Assets
|
$
|
3,415,510
|
$
|
3,051,196
|
$
|
2,318,071
|
$
|
1,818,215
|
$
|
1,721,965
|
||||||
Deposit
accounts
|
$
|
2,059,405
|
$
|
1,735,428
|
$
|
1,432,032
|
$
|
1,147,017
|
$
|
1,065,911
|
||||||
Federal
Home Loan Bank advances and other borrowings
|
1,010,000
|
992,557
|
584,224
|
378,003
|
407,762
|
|||||||||||
Account
payable and other liabilities
|
38,168
|
32,130
|
20,491
|
19,696
|
10,006
|
|||||||||||
Junior
subordinated debentures (3)
|
86,600
|
86,600
|
86,600
|
86,600
|
—
|
|||||||||||
Guaranteed
preferred beneficial interests in the Company’s junior subordinated
deferrable interest debentures (3)
|
—
|
—
|
—
|
—
|
81,595
|
|||||||||||
Shareholders’
equity
|
221,337
|
204,481
|
194,724
|
186,899
|
156,691
|
|||||||||||
Total
Liabilities and Shareholders’ Equity
|
$
|
3,415,510
|
$
|
3,051,196
|
$
|
2,318,071
|
$
|
1,818,215
|
$
|
1,721,965
|
||||||
Book
value per share
|
$
|
42.07
|
$
|
37.85
|
$
|
35.09
|
$
|
31.30
|
$
|
27.11
|
|
As
of and for the years ended December 31,
|
|||||||||||||||
|
2006
|
2005
|
2004
|
2003
|
2002
|
|||||||||||
Selected
Performance Ratios
Return
on average assets
|
0.86
|
%
|
0.90
|
%
|
1.47
|
%
|
1.71
|
%
|
1.41
|
%
|
||||||
Return
on average shareholders’ equity
|
12.75
|
%
|
12.12
|
%
|
15.44
|
%
|
16.88
|
%
|
13.56
|
%
|
||||||
Net
interest margin (1)
|
3.06
|
%
|
3.43
|
%
|
4.12
|
%
|
5.03
|
%
|
5.30
|
%
|
||||||
Average
interest earning assets to average interest bearing
liabilities
|
108.21
|
%
|
109.32
|
%
|
127.50
|
%
|
135.03
|
%
|
113.94
|
%
|
||||||
Efficiency
ratio (2)
|
47.79
|
%
|
47.08
|
%
|
42.87
|
%
|
36.59
|
%
|
36.40
|
%
|
||||||
Total
general and administrative expense to average assets
|
1.49
|
%
|
1.73
|
%
|
2.02
|
%
|
2.29
|
%
|
1.90
|
%
|
||||||
Average
shareholders’ equity to average assets
|
6.78
|
%
|
7.39
|
%
|
9.51
|
%
|
11.16
|
%
|
10.36
|
%
|
||||||
Dividend
payout ratio (3)
|
12.74
|
%
|
—
|
—
|
—
|
—
|
||||||||||
Nonperforming
assets to total assets
|
0.97
|
%
|
0.92
|
%
|
0.63
|
%
|
0.86
|
%
|
1.08
|
%
|
||||||
Allowance
for loan losses to loans held for investment, net (4)
|
1.53
|
%
|
1.71
|
%
|
1.94
|
%
|
2.14
|
%
|
2.31
|
%
|
||||||
Allowance
for loan loss to nonaccrual loans
|
175.40
|
%
|
180.59
|
%
|
242.17
|
%
|
392.26
|
%
|
555.61
|
%
|
||||||
Net
charge-offs to average loans held for investment, net
|
0.10
|
%
|
0.09
|
%
|
0.16
|
%
|
0.52
|
%
|
0.36
|
%
|
For
the Quarters Ended
|
|||||||||||||
March
31
|
June
30
|
September
30
|
December
31
|
||||||||||
(in
thousands, except per share amounts)
|
|||||||||||||
2006
|
|||||||||||||
Interest
income
|
$
|
51,428
|
$
|
55,760
|
$
|
59,130
|
$
|
60,183
|
|||||
Interest
expense
|
28,518
|
31,776
|
34,840
|
36,941
|
|||||||||
Net
interest income before provision for loan losses
|
22,910
|
23,984
|
24,290
|
23,242
|
|||||||||
Provision
for loan losses
|
750
|
1,500
|
1,500
|
1,250
|
|||||||||
Non-interest
income
|
717
|
607
|
578
|
870
|
|||||||||
General
and administrative expense
|
12,037
|
11,833
|
11,474
|
11,103
|
|||||||||
Total
real estate owned expense, net
|
106
|
(177
|
)
|
287
|
153
|
||||||||
Provision
for income taxes
|
4,402
|
4,689
|
4,759
|
4,643
|
|||||||||
Net
income
|
6,332
|
6,746
|
6,848
|
6,963
|
|||||||||
Basic
earnings per share
|
$
|
1.13
|
$
|
1.22
|
$
|
1.24
|
$
|
1.26
|
|||||
Diluted
earnings per share
|
$
|
1.10
|
$
|
1.18
|
$
|
1.20
|
$
|
1.22
|
|||||
2005
|
|||||||||||||
Interest
income
|
$
|
36,752
|
$
|
41,680
|
$
|
48,830
|
$
|
50,896
|
|||||
Interest
expense
|
15,010
|
19,551
|
24,991
|
26,934
|
|||||||||
Net
interest income before provision for loan losses
|
21,742
|
22,129
|
23,839
|
23,962
|
|||||||||
Provision
for loan losses
|
750
|
1,500
|
1,500
|
6,500
|
|||||||||
Non-interest
income
|
(20
|
)
|
509
|
485
|
5,600
|
||||||||
General
and administrative expense
|
11,230
|
11,069
|
11,973
|
11,986
|
|||||||||
Total
real estate owned expense, net
|
(11
|
)
|
—
|
—
|
204
|
||||||||
Provision
for income taxes
|
4,102
|
4,230
|
4,583
|
4,567
|
|||||||||
Net
income
|
5,651
|
5,839
|
6,268
|
6,305
|
|||||||||
Basic
earnings per share
|
$
|
0.97
|
$
|
1.01
|
$
|
1.09
|
$
|
1.11
|
|||||
Diluted
earnings per share
|
$
|
0.93
|
$
|
0.98
|
$
|
1.06
|
$
|
1.08
|
|
Years
Ended December 31,
|
|||||||||||||||||||||||||||
|
2006
|
2005
|
2004
|
|||||||||||||||||||||||||
|
|
Average
Balance
|
|
Income/
Expense
|
Yield/
Rate
|
Average
Balance
|
Income/
Expense
|
Yield/
Rate
|
Average
Balance
|
Income/
Expense
|
Yield/
Rate
|
|||||||||||||||||
(dollars
in thousands)
|
||||||||||||||||||||||||||||
Assets
Cash
and investment securities
|
$
|
419,762
|
$
|
19,181
|
4.57
|
%
|
$
|
432,774
|
$
|
18,438
|
4.26
|
%
|
$
|
419,452
|
$
|
9,291
|
2.22
|
%
|
||||||||||
Real
estate loans (1)
|
2,588,452
|
200,322
|
7.74
|
%
|
2,016,691
|
141,061
|
6.99
|
%
|
1,368,384
|
96,460
|
7.05
|
%
|
||||||||||||||||
Franchise
loans (1)
|
11,578
|
475
|
4.10
|
%
|
121,768
|
9,972
|
8.19
|
%
|
125,280
|
8,608
|
6.87
|
%
|
||||||||||||||||
Entertainment
finance loans (1)
|
59,262
|
5,620
|
9.48
|
%
|
89,420
|
7,724
|
8.64
|
%
|
96,227
|
7,040
|
7.32
|
%
|
||||||||||||||||
Commercial
and other loans (1)
|
8,962
|
903
|
10.08
|
%
|
11,382
|
963
|
8.46
|
%
|
16,234
|
3,555
|
21.90
|
%
|
||||||||||||||||
Total
loans receivable
|
2,668,254
|
207,320
|
7.77
|
%
|
2,239,261
|
159,720
|
7.13
|
%
|
1,606,125
|
115,663
|
7.20
|
%
|
||||||||||||||||
Total
interest earning assets
|
3,088,016
|
$
|
226,501
|
7.33
|
%
|
2,672,035
|
$
|
178,158
|
6.67
|
%
|
2,025,577
|
$
|
124,954
|
6.17
|
%
|
|||||||||||||
Non-interest
earning assets
|
70,936
|
51,549
|
94,739
|
|||||||||||||||||||||||||
Allowance
for loan losses
|
(46,366
|
)
|
(37,978
|
)
|
(35,214
|
)
|
||||||||||||||||||||||
Total
assets
|
$
|
3,112,586
|
$
|
2,685,606
|
$
|
2,085,102
|
||||||||||||||||||||||
Liabilities
and Shareholders’ Equity
|
||||||||||||||||||||||||||||
Interest
bearing demand accounts
|
$
|
29,047
|
$
|
836
|
2.88
|
%
|
$
|
51,684
|
$
|
1,236
|
2.39
|
%
|
$
|
80,052
|
$
|
1,409
|
1.76
|
%
|
||||||||||
Money
market and passbook accounts
|
207,962
|
9,379
|
4.51
|
%
|
177,213
|
5,308
|
3.00
|
%
|
140,637
|
2,680
|
1.91
|
%
|
||||||||||||||||
Time
certificates
|
1,603,210
|
74,941
|
4.67
|
%
|
1,421,415
|
47,263
|
3.33
|
%
|
1,003,555
|
23,827
|
2.37
|
%
|
||||||||||||||||
Total
interest bearing deposit accounts
|
1,840,219
|
85,156
|
4.63
|
%
|
1,650,312
|
53,807
|
3.26
|
%
|
1,224,244
|
27,916
|
2.28
|
%
|
||||||||||||||||
FHLB
advances and other borrowings
|
926,916
|
38,722
|
4.18
|
%
|
707,391
|
25,508
|
3.61
|
%
|
277,828
|
7,343
|
2.64
|
%
|
||||||||||||||||
Junior
subordinated debentures
|
86,600
|
8,197
|
9.47
|
%
|
86,600
|
7,171
|
8.28
|
%
|
86,600
|
6,159
|
7.11
|
%
|
||||||||||||||||
Total
interest bearing liabilities
|
2,853,735
|
$
|
132,075
|
4.63
|
%
|
2,444,303
|
$
|
86,486
|
3.54
|
%
|
1,588,672
|
$
|
41,418
|
2.61
|
%
|
|||||||||||||
Non-interest
bearing demand accounts
|
12,738
|
27,671
|
8,023
|
|||||||||||||||||||||||||
Other
non-interest bearing liabilities
|
35,173
|
15,086
|
290,077
|
|||||||||||||||||||||||||
Shareholders’
equity
|
210,940
|
198,546
|
198,330
|
|||||||||||||||||||||||||
Total
liabilities and shareholders’ equity
|
$
|
3,112,586
|
$
|
2,685,606
|
$
|
2,085,102
|
||||||||||||||||||||||
Net
interest spread (2)
|
2.70
|
%
|
3.13
|
%
|
3.56
|
%
|
||||||||||||||||||||||
Net
interest income before provisions for loan losses
|
$
|
94,426
|
$
|
91,672
|
$
|
83,536
|
||||||||||||||||||||||
Net
interest margin (3)
|
3.06
|
%
|
3.43
|
%
|
4.12
|
%
|
2006
vs. 2005
|
2005
vs. 2004
|
||||||||||||||||||
Increase
(Decrease) Due to:
|
Increase
(Decrease) Due to:
|
||||||||||||||||||
Volume
|
Rate
|
Total
|
Volume
|
Rate
|
Total
|
||||||||||||||
(in
thousands)
|
|||||||||||||||||||
Interest
and fees earned on:
|
|||||||||||||||||||
Loans,
net
|
$
|
32,413
|
$
|
15,187
|
$
|
47,600
|
$
|
45,191
|
$
|
(1,134
|
)
|
$
|
44,057
|
||||||
Cash
and investment securities
|
(567
|
)
|
1,310
|
743
|
306
|
8,841
|
9,147
|
||||||||||||
Total
increase in interest income
|
31,846
|
16,497
|
48,343
|
45,497
|
7,707
|
53,204
|
|||||||||||||
Interest
paid on:
|
|||||||||||||||||||
Deposit
accounts
|
6,739
|
24,610
|
31,349
|
11,584
|
14,307
|
25,891
|
|||||||||||||
FHLB
advances and other borrowings
|
8,758
|
4,456
|
13,214
|
14,677
|
3,488
|
18,165
|
|||||||||||||
Junior
subordinated debentures
|
—
|
1,026
|
1,026
|
—
|
1,012
|
1,012
|
|||||||||||||
Total
increase in interest expense
|
15,497
|
30,092
|
45,589
|
26,261
|
18,807
|
45,068
|
|||||||||||||
Increase
(decrease) in net interest income
|
$
|
16,349
|
$
|
(13,595
|
)
|
$
|
2,754
|
$
|
19,236
|
$
|
(11,100
|
)
|
$
|
8,136
|
|
December
31,
|
|||||||||||||||
|
2006
|
2005
|
2004
|
2003
|
2002
|
|||||||||||
(in
thousands)
|
||||||||||||||||
Real
estate loans
|
$
|
2,546,904
|
$
|
2,154,372
|
$
|
1,387,973
|
$
|
1,196,729
|
$
|
1,189,258
|
||||||
Construction
loans
|
347,751
|
302,932
|
183,207
|
129,540
|
101,422
|
|||||||||||
Total
real estate loans
|
2,894,655
|
2,457,304
|
1,571,180
|
1,326,269
|
1,290,680
|
|||||||||||
Entertainment
finance loans
|
74,204
|
66,514
|
99,729
|
98,630
|
119,283
|
|||||||||||
Franchise
loans
|
9,334
|
13,705
|
137,477
|
102,128
|
54,672
|
|||||||||||
Commercial
and other loans
|
9,346
|
7,264
|
11,931
|
6,869
|
4,314
|
|||||||||||
2,987,539
|
2,544,787
|
1,820,317
|
1,533,896
|
1,468,949
|
||||||||||||
Unamortized
premium
|
18,138
|
14,582
|
6,346
|
5,429
|
7,898
|
|||||||||||
Deferred
loan origination costs (fees), net
|
13,740
|
7,928
|
2,635
|
(500
|
)
|
(5,604
|
)
|
|||||||||
3,019,417
|
2,567,297
|
1,829,298
|
1,538,825
|
1,471,243
|
||||||||||||
Allowance
for loan losses
|
(46,049
|
)
|
(43,817
|
)
|
(35,483
|
)
|
(33,401
|
)
|
(33,009
|
)
|
||||||
$
|
2,973,368
|
$
|
2,523,480
|
$
|
1,793,815
|
$
|
1,505,424
|
$
|
1,438,234
|
|
Loans
Maturing in
|
|
|||||||||||
|
Less
Than
One
Year
|
Between
One
and
Five
Years
|
Greater
Than
Five
Years
|
Total
|
|||||||||
(dollars
in thousands)
|
|||||||||||||
Real
estate loans
|
$
|
83,393
|
$
|
277,568
|
$
|
2,185,943
|
$
|
2,546,904
|
|||||
Construction
loans
|
217,368
|
130,383
|
—
|
347,751
|
|||||||||
Entertainment
finance loans
|
60,165
|
14,039
|
—
|
74,204
|
|||||||||
Franchise
loans
|
4,372
|
223
|
4,739
|
9,334
|
|||||||||
Commercial
and other loans
|
4,812
|
4,534
|
—
|
9,346
|
|||||||||
$
|
370,110
|
$
|
426,747
|
$
|
2,190,682
|
$
|
2,987,539
|
||||||
Loans
with fixed interest rates
|
$
|
369
|
$
|
19,903
|
$
|
32,595
|
$
|
52,867
|
|||||
Loans
with adjustable interest rates
|
369,741
|
406,844
|
2,158,087
|
2,934,672
|
|||||||||
$
|
370,110
|
$
|
426,747
|
$
|
2,190,682
|
$
|
2,987,539
|
||||||
Percentage
with adjustable interest rates
|
99.9
|
%
|
95.3
|
%
|
98.5
|
%
|
98.2
|
%
|
Number
of
|
Gross
Loan
|
Percent
of
|
Range
of Principal Balance
|
Non-Accrual
|
|||||||||||||||||||
Loans
|
Amount
|
Total
|
Min
|
Max
|
Average
|
Loans
|
|||||||||||||||||
(dollars
in thousands)
|
|||||||||||||||||||||||
Income
Producing Property Loans:
|
|||||||||||||||||||||||
Multi-family
(5 or more units)
|
2,565
|
$
|
1,865,992
|
64.47
|
%
|
$
|
2
|
$
|
11,944
|
$
|
727
|
$
|
8,897
|
||||||||||
Retail
|
117
|
139,955
|
4.83
|
%
|
12
|
10,010
|
1,196
|
965
|
|||||||||||||||
Office
|
82
|
113,215
|
3.91
|
%
|
12
|
13,500
|
1,381
|
—
|
|||||||||||||||
Hotel
|
15
|
38,115
|
1.32
|
%
|
66
|
6,886
|
2,541
|
878
|
|||||||||||||||
Industrial/warehouse
|
48
|
60,799
|
2.10
|
%
|
79
|
7,000
|
1,267
|
—
|
|||||||||||||||
Mixed-use
|
75
|
75,928
|
2.62
|
%
|
7
|
9,697
|
1,012
|
1,041
|
|||||||||||||||
Mobile
home parks
|
42
|
29,751
|
1.03
|
%
|
253
|
2,171
|
708
|
—
|
|||||||||||||||
Assisted
living
|
5
|
21,885
|
0.76
|
%
|
1,462
|
7,328
|
4,377
|
—
|
|||||||||||||||
Storage
|
10
|
34,718
|
1.20
|
%
|
684
|
5,950
|
3,472
|
—
|
|||||||||||||||
Other
|
153
|
102,868
|
3.55
|
%
|
2
|
10,069
|
672
|
1,900
|
|||||||||||||||
Total
income producing
|
3,112
|
2,483,226
|
85.79
|
%
|
13,681
|
||||||||||||||||||
Construction
and Land:
|
|||||||||||||||||||||||
Construction
|
78
|
347,751
|
12.02
|
%
|
282
|
23,763
|
4,458
|
—
|
|||||||||||||||
Land
|
9
|
22,722
|
0.78
|
%
|
368
|
7,565
|
2,525
|
—
|
|||||||||||||||
Total
construction and land
|
87
|
370,473
|
12.80
|
%
|
—
|
||||||||||||||||||
Single-family
mortgages:
|
|||||||||||||||||||||||
Single-family
(1-4 units)
|
97
|
40,956
|
1.41
|
%
|
7
|
942
|
422
|
410
|
|||||||||||||||
3,296
|
$
|
2,894,655
|
100.00
|
%
|
$
|
14,091
|
|
Number
of
Loans
|
Gross
Loan Amount
|
Percent
of
Total
|
|||||||
(dollars
in thousands)
|
||||||||||
Southern
California:
|
||||||||||
Los
Angeles County
|
805
|
$
|
643,344
|
22.23
|
%
|
|||||
Riverside
County
|
48
|
120,311
|
4.16
|
%
|
||||||
Orange
County
|
56
|
83,354
|
2.88
|
%
|
||||||
San
Diego County
|
66
|
66,201
|
2.29
|
%
|
||||||
San
Bernardino County
|
59
|
50,863
|
1.76
|
%
|
||||||
All
other Southern California Counties
|
5
|
4,223
|
0.15
|
%
|
||||||
Total
Southern California
|
1,039
|
968,296
|
33.47
|
%
|
||||||
Northern
California:
|
||||||||||
San
Francisco County
|
85
|
109,903
|
3.80
|
%
|
||||||
Alameda
County
|
110
|
102,407
|
3.54
|
%
|
||||||
Fresno
County
|
60
|
56,386
|
1.95
|
%
|
||||||
Contra
Costa County
|
45
|
50,260
|
1.74
|
%
|
||||||
Santa
Clara County
|
45
|
35,255
|
1.22
|
%
|
||||||
San
Mateo County
|
25
|
35,127
|
1.21
|
%
|
||||||
Kern
County
|
39
|
27,775
|
0.96
|
%
|
||||||
San
Joaquin
|
34
|
25,244
|
0.87
|
%
|
||||||
Sacramento
|
32
|
24,970
|
0.86
|
%
|
||||||
All
other Northern California Counties
|
116
|
138,499
|
4.78
|
%
|
||||||
Total
Northern California
|
591
|
605,826
|
20.93
|
%
|
||||||
Outside
California:
|
||||||||||
Texas
|
228
|
241,136
|
8.33
|
%
|
||||||
Arizona
|
197
|
208,323
|
7.20
|
%
|
||||||
Georgia
|
56
|
84,915
|
2.93
|
%
|
||||||
Florida
|
91
|
79,035
|
2.73
|
%
|
||||||
New
York
|
109
|
69,306
|
2.39
|
%
|
||||||
Nevada
|
74
|
57,834
|
2.00
|
%
|
||||||
Massachusetts
|
95
|
56,402
|
1.95
|
%
|
||||||
Colorado
|
69
|
44,306
|
1.53
|
%
|
||||||
Connecticut
|
95
|
39,225
|
1.36
|
%
|
||||||
Oklahoma
|
38
|
34,250
|
1.18
|
%
|
||||||
Ohio
|
61
|
34,171
|
1.18
|
%
|
||||||
Oregon
|
55
|
33,326
|
1.15
|
%
|
||||||
New
Jersey
|
58
|
30,044
|
1.04
|
%
|
||||||
Tennessee
|
32
|
29,085
|
1.00
|
%
|
||||||
Washington
|
38
|
25,899
|
0.89
|
%
|
||||||
Other
U.S. states
|
370
|
253,276
|
8.74
|
%
|
||||||
Total
Outside California
|
1,666
|
1,320,533
|
45.60
|
%
|
||||||
3,296
|
$
|
2,894,655
|
100.00
|
%
|
|
As
of and for the Years Ended December 31,
|
|||||||||
|
2006
|
2005
|
2004
|
|||||||
(dollars
in thousands)
|
||||||||||
Gross
real estate loans originated
|
$
|
960,187
|
$
|
846,685
|
$
|
721,090
|
||||
Gross
entertainment finance loans originated
|
102,703
|
68,687
|
92,179
|
|||||||
Gross
franchise loans originated
|
—
|
2,352
|
52,145
|
|||||||
Gross
commercial and other loans originated
|
26,662
|
1,863
|
58,342
|
|||||||
Gross
real estate loans purchased
|
498,785
|
723,822
|
136,452
|
|||||||
Total
loan production
|
$
|
1,588,337
|
$
|
1,643,409
|
$
|
1,060,208
|
||||
Gross
loans at end of period
|
$
|
2,987,539
|
$
|
2,544,787
|
$
|
1,820,317
|
||||
Gross
loans weighted-average portfolio yield
|
7.68
|
%
|
7.13
|
%
|
7.20
|
%
|
||||
Average
size of loans retained in the Company’s portfolio
|
$
|
1,110
|
$
|
803
|
$
|
919
|
|
December
31,
|
||||||||||||||||||
|
2006
|
2005
|
2004
|
||||||||||||||||
|
Amortized
Cost
|
Fair
Value
|
Amortized
Cost
|
Fair
Value
|
Amortized
Cost
|
Fair
Value
|
|||||||||||||
(in
thousands)
|
|||||||||||||||||||
Investment
securities available-for-sale
|
|||||||||||||||||||
U.S.
agency securities
|
$
|
62,554
|
$
|
62,184
|
$
|
89,897
|
$
|
88,829
|
$
|
61,637
|
$
|
61,347
|
|||||||
Collateralized
mortgage obligations
|
34,991
|
35,127
|
—
|
—
|
—
|
—
|
|||||||||||||
Residual
interest in securitized loans
|
1,911
|
2,039
|
3,257
|
3,570
|
5,055
|
5,368
|
|||||||||||||
Equity
securities
|
13
|
177
|
16
|
164
|
25
|
130
|
|||||||||||||
Total
investment securities available-for-sale
|
$
|
99,469
|
$
|
99,527
|
$
|
93,170
|
$
|
92,563
|
$
|
66,717
|
$
|
66,845
|
|||||||
Investment
securities held-to-maturity
Mortgage-backed
securities
|
$
|
193,512
|
$
|
190,475
|
$
|
233,880
|
$
|
229,025
|
$
|
296,028
|
$
|
295,226
|
December
31,
|
|||||||
|
2006
|
2005
|
|||||
(dollars
in thousands)
|
|||||||
Fair
value of retained interest
|
$
|
2,039
|
$
|
3,570
|
|||
Weighted
average life (in years) - securities
|
0.55
|
0.56
|
|||||
Weighted
average life (in years) - residual interest
|
2.74
|
2.92
|
|||||
Weighted
average annual prepayment speed
|
40.0
|
%
|
40.0
|
%
|
|||
Impact
of 10% adverse change
|
$
|
(6
|
)
|
$
|
(22
|
)
|
|
Impact
of 25% adverse change
|
$
|
(10
|
)
|
$
|
(34
|
)
|
|
Weighted
average annual discount rate
|
13.0
|
%
|
13.0
|
%
|
|||
Impact
of 10% adverse change
|
$
|
(65
|
)
|
$
|
(117
|
)
|
|
Impact
of 25% adverse change
|
$
|
(156
|
)
|
$
|
(284
|
)
|
|
Weighted
average lifetime credit losses
|
20.2
|
%
|
14.3
|
%
|
|||
Impact
of 10% adverse change
|
$
|
(86
|
)
|
$
|
(79
|
)
|
|
Impact
of 25% adverse change
|
$
|
(224
|
)
|
$
|
(211
|
)
|
|
Due
in One
Year
or Less
|
Due
after One
Year
through
Five
Years
|
Due
after Five
Years
through
Ten
Years
|
Due
after
Ten
Years
|
|||||||||||||||||||||
|
Balance
|
Weighted
Average
Yield
|
Balance
|
Weighted
Average
Yield
|
Balance
|
Weighted
Average
Yield
|
Balance
|
Weighted
Average
Yield
|
|||||||||||||||||
(dollars
in thousands)
|
|||||||||||||||||||||||||
Investment
securities available-for-sale
U.S.
agency securities
|
$
|
52,285
|
3.84
|
%
|
$
|
9,899
|
4.58
|
%
|
$
|
—
|
—
|
$
|
—
|
—
|
|||||||||||
Collateralized
mortgage obligations
|
—
|
—
|
—
|
—
|
14,899
|
5.57
|
%
|
20,228
|
5.98
|
%
|
|||||||||||||||
Equity
securities
|
177
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Residual
interest in securitized loans
|
—
|
—
|
2,039
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||
Total
investment securities available-for-sale
|
$
|
52,462
|
$
|
11,938
|
$
|
14,899
|
$
|
20,228
|
|||||||||||||||||
Investment
securities held-to-maturity
Mortgage-backed
securities
|
$
|
—
|
—
|
$
|
—
|
—
|
$
|
—
|
—
|
$
|
193,512
|
4.25
|
%
|
||||||||||||
|
December
31,
|
|||||||||
|
2006
|
2005
|
2004
|
|||||||
(in
thousands)
|
||||||||||
Non-interest
demand accounts
|
$
|
23,171
|
$
|
13,660
|
$
|
13,108
|
||||
Interest
demand accounts
|
24,523
|
38,197
|
72,832
|
|||||||
Money
market and passbook accounts
|
210,236
|
186,453
|
172,092
|
|||||||
Time
certificates under $100,000
|
784,732
|
763,701
|
703,493
|
|||||||
Time
certificates $100,000 and over
|
1,016,743
|
733,417
|
470,507
|
|||||||
$
|
2,059,405
|
$
|
1,735,428
|
$
|
1,432,032
|
Certificates
of deposit $100,000 and over:
|
||||
Maturing
within three months
|
$
|
373,451
|
||
After
three but within six months
|
294,938
|
|||
After
six but within twelve months
|
226,063
|
|||
After
twelve months
|
122,291
|
|||
$
|
1,016,743
|
Contractual
Obligations
|
Total
|
Less
Than
One
Year
|
One
Through
Three
Years
|
Three
Through
Five
Years
|
More
Than
Five
Years
|
|||||||||||
(in
thousands)
|
||||||||||||||||
Long-term
FHLB advances and other
borrowings
|
$
|
832,502
|
$
|
257,267
|
$
|
248,248
|
$
|
282,917
|
$
|
44,070
|
||||||
Junior
subordinated debentures
|
86,600
|
—
|
—
|
—
|
86,600
|
|||||||||||
Operating
lease obligations
|
13,042
|
3,640
|
5,382
|
2,867
|
1,153
|
|||||||||||
Deposits
with stated maturity dates
|
1,801,475
|
1,636,998
|
83,432
|
81,045
|
—
|
|||||||||||
Purchase
obligations
|
2,849
|
1,000
|
922
|
927
|
—
|
|||||||||||
$
|
2,736,468
|
$
|
1,898,905
|
$
|
337,984
|
$
|
367,756
|
$
|
131,823
|
|
As
of and for the Years Ended December 31,
|
|||||||||||||||
|
2006
|
2005
|
2004
|
2003
|
2002
|
|||||||||||
(dollars
in thousands)
|
||||||||||||||||
Balance
at beginning of year
|
$
|
43,817
|
$
|
35,483
|
$
|
33,401
|
$
|
33,009
|
$
|
26,650
|
||||||
Provision
for loan losses
|
5,000
|
10,250
|
4,725
|
7,760
|
9,030
|
|||||||||||
Additions
due to acquisitions
|
—
|
—
|
—
|
—
|
2,048
|
|||||||||||
Charge-offs:
|
||||||||||||||||
Real
estate loans
|
(1,634
|
)
|
(1,584
|
)
|
(189
|
)
|
(5,286
|
)
|
(4,730
|
)
|
||||||
Entertainment
finance loans
|
(2,500
|
)
|
(395
|
)
|
(2,180
|
)
|
(800
|
)
|
—
|
|||||||
Franchise
loans
|
—
|
(451
|
)
|
—
|
(661
|
)
|
—
|
|||||||||
Commercial
and other loans
|
—
|
—
|
(1,121
|
)
|
(700
|
)
|
—
|
|||||||||
Total
charge-offs
|
(4,134
|
)
|
(2,430
|
)
|
(3,490
|
)
|
(7,447
|
)
|
(4,730
|
)
|
||||||
Recoveries:
|
||||||||||||||||
Real
estate loans
|
894
|
88
|
89
|
14
|
11
|
|||||||||||
Entertainment
finance loans
|
472
|
426
|
—
|
—
|
—
|
|||||||||||
Commercial
and other loans
|
—
|
—
|
758
|
65
|
—
|
|||||||||||
Total
recoveries
|
1,366
|
514
|
847
|
79
|
11
|
|||||||||||
Net
charge-offs
|
(2,768
|
)
|
(1,916
|
)
|
(2,643
|
)
|
(7,368
|
)
|
(4,719
|
)
|
||||||
Balance
at end of the year
|
$
|
46,049
|
$
|
43,817
|
$
|
35,483
|
$
|
33,401
|
$
|
33,009
|
||||||
Average
loans outstanding during the year
|
$
|
2,668,254
|
$
|
2,239,261
|
$
|
1,606,125
|
$
|
1,415,812
|
$
|
1,305,902
|
||||||
Loans,
net, at end of the year (1)
|
$
|
3,019,417
|
$
|
2,567,297
|
$
|
1,829,298
|
$
|
1,538,825
|
$
|
1,471,243
|
||||||
Selected
Ratios:
|
||||||||||||||||
Net
charge-offs to average loans outstanding
|
0.10
|
%
|
0.09
|
%
|
0.16
|
%
|
0.52
|
%
|
0.36
|
%
|
||||||
Net
charge-offs to loans, net (1)
|
0.09
|
%
|
0.07
|
%
|
0.14
|
%
|
0.48
|
%
|
0.32
|
%
|
||||||
Allowance
for loan losses to loans, net (1)
|
1.53
|
%
|
1.71
|
%
|
1.94
|
%
|
2.14
|
%
|
2.31
|
%
|
||||||
Allowance
for loan losses to nonaccrual loans
|
175.40
|
%
|
180.59
|
%
|
242.17
|
%
|
392.26
|
%
|
555.61
|
%
|
|
December
31,
|
||||||||||||||||||||||||||||||
|
2006
|
2005
|
2004
|
2003
|
2002
|
||||||||||||||||||||||||||
Loan
Category:
|
Allowance
for
loan losses
|
%
of loans (1)
|
Allowance
for
loan
losses
|
%
of loans (1)
|
Allowance
for
loan
losses
|
%
of loans (1)
|
Allowance
for
loan
losses
|
%
of loans (1)
|
Allowance
for
loan
losses
|
%
of loans (1)
|
|||||||||||||||||||||
(dollars
in thousands)
|
|||||||||||||||||||||||||||||||
Secured
by real estate
|
$
|
38,284
|
96
|
%
|
$
|
34,222
|
96
|
%
|
$
|
23,543
|
86
|
%
|
$
|
25,522
|
87
|
%
|
$
|
28,348
|
88
|
%
|
|||||||||||
Entertainment
finance
|
5,616
|
3
|
%
|
6,770
|
3
|
%
|
7,828
|
5
|
%
|
4,354
|
6
|
%
|
2,961
|
8
|
%
|
||||||||||||||||
Franchise
|
1,833
|
—
|
2,685
|
1
|
%
|
4,032
|
8
|
%
|
3,185
|
7
|
%
|
1,490
|
4
|
%
|
|||||||||||||||||
Commercial
and other
|
316
|
1
|
%
|
140
|
—
|
80
|
1
|
%
|
340
|
—
|
210
|
—
|
|||||||||||||||||||
Total
|
$
|
46,049
|
100
|
%
|
$
|
43,817
|
100
|
%
|
$
|
35,483
|
100
|
%
|
$
|
33,401
|
100
|
%
|
$
|
33,009
|
100
|
%
|
• |
the
risk characteristics of various classifications of loans;
|
• |
general
portfolio trends relative to asset and portfolio size;
|
• |
asset
categories;
|
• |
potential
credit and geographic concentrations;
|
• |
delinquency
trends and nonaccrual loan levels;
|
• |
historical
loss experience and risks associated with changes in economic, social
and
business conditions; and
|
• |
the
underwriting standards in effect when the loan was made.
|
|
December
31,
|
||||||||||||||||||
|
2006
|
2005
|
2004
|
||||||||||||||||
|
Amount
|
Percent
of
Gross
Portfolio
|
Amount
|
Percent
of
Gross
Portfolio
|
Amount
|
Percent
of
Gross
Portfolio
|
|||||||||||||
(dollars
in thousands)
|
|||||||||||||||||||
Period
of Delinquency
30
- 59 days
|
$
|
10,120
|
0.34
|
%
|
$
|
5,060
|
0.20
|
%
|
$
|
16,684
|
0.92
|
%
|
|||||||
60
- 89 days
|
15,170
|
0.51
|
%
|
3,678
|
0.14
|
%
|
6,018
|
0.33
|
%
|
||||||||||
90
days or more
|
23,937
|
0.80
|
%
|
22,533
|
0.89
|
%
|
9,401
|
0.52
|
%
|
||||||||||
Total
loans delinquent
|
$
|
49,227
|
1.65
|
%
|
$
|
31,271
|
1.23
|
%
|
$
|
32,103
|
1.77
|
%
|
|
December
31,
|
|||||||||||||||
|
2006
|
2005
|
2004
|
2003
|
2002
|
|||||||||||
(dollars
in thousands)
|
||||||||||||||||
Nonaccrual
loans:(1)
|
||||||||||||||||
Real
estate
|
$
|
14,091
|
$
|
6,117
|
$
|
7,057
|
$
|
4,686
|
$
|
3,913
|
||||||
Franchise
|
4,549
|
7,366
|
3,874
|
799
|
1,986
|
|||||||||||
Entertainment
finance
|
7,614
|
10,780
|
3,721
|
3,030
|
—
|
|||||||||||
Total
nonaccrual loans
|
26,254
|
24,263
|
14,652
|
8,515
|
5,899
|
|||||||||||
Other
real estate owned, net
|
6,729
|
3,960
|
—
|
7,048
|
12,593
|
|||||||||||
Total
nonperforming assets
|
32,983
|
28,223
|
14,652
|
15,563
|
18,492
|
|||||||||||
Accruing
loans past-due 90 days or more with respect to principal or
interest
|
—
|
—
|
—
|
—
|
—
|
|||||||||||
Performing
troubled debt restructurings
|
7,994
|
10,758
|
3,096
|
4,709
|
7,858
|
|||||||||||
$
|
40,977
|
$
|
38,981
|
$
|
17,748
|
$
|
20,272
|
$
|
26,350
|
|||||||
Nonaccrual
loans to total gross loans
|
0.88
|
%
|
0.95
|
%
|
0.80
|
%
|
0.55
|
%
|
0.40
|
%
|
||||||
Allowance
for loan losses to nonaccrual loans
|
175.40
|
%
|
180.59
|
%
|
242.17
|
%
|
392.26
|
%
|
555.61
|
%
|
||||||
Nonperforming
assets to total assets
|
0.97
|
%
|
0.92
|
%
|
0.63
|
%
|
0.86
|
%
|
1.08
|
%
|
Changes
in
Interest
rates
(Basis
Points)
|
Percentage
Change in
Net
Interest Income
(12
Months)
|
|||
+
200 Over One Year
|
0.61%
|
|
||
+
100 Over One Year
|
1.53%
|
|
||
-
100 Over One Year
|
-1.62%
|
|
||
-
200 Over One Year
|
-2.03%
|
|
|
Maturing
or Repricing in
|
||||||||||||||||||
|
3
Months
or
less
|
After
3
Months
But
Within
1 Year
|
After
1 Year
But
Within
5
Years
|
After
5
Years
|
Non-Interest
Sensitive
|
Total
|
|||||||||||||
(dollars
in thousands)
|
|||||||||||||||||||
Assets
|
|||||||||||||||||||
Loans
(1)
|
$
|
1,184,139
|
$
|
777,643
|
$
|
1,028,047
|
$
|
29,588
|
$
|
—
|
$
|
3,019,417
|
|||||||
Cash
and cash equivalents
|
28,964
|
—
|
—
|
—
|
1,484
|
30,448
|
|||||||||||||
Investment
securities available-for-sale
|
13,152
|
48,366
|
32,681
|
5,151
|
177
|
99,527
|
|||||||||||||
Investment
securities held-to-maturity
|
7,243
|
29,125
|
130,782
|
26,362
|
—
|
193,512
|
|||||||||||||
Non-interest
earning assets less allowance for loan losses
|
—
|
—
|
—
|
—
|
72,606
|
72,606
|
|||||||||||||
Total
assets
|
$
|
1,233,498
|
$
|
855,134
|
$
|
1,191,510
|
$
|
61,101
|
$
|
74,267
|
$
|
3,415,510
|
|||||||
Liabilities
and Shareholders’ Equity
|
|||||||||||||||||||
Time
certificates under $100,000
|
$
|
251,006
|
$
|
491,506
|
$
|
42,220
|
$
|
—
|
$
|
—
|
$
|
784,732
|
|||||||
Time
certificates $100,000 and more
|
373,451
|
521,001
|
122,291
|
—
|
—
|
1,016,743
|
|||||||||||||
Money
market and passbook accounts
|
210,236
|
—
|
—
|
—
|
—
|
210,236
|
|||||||||||||
Demand
deposit accounts
|
24,523
|
—
|
—
|
—
|
23,171
|
47,694
|
|||||||||||||
FHLB
advances and other borrowings
|
215,497
|
219,268
|
531,165
|
44,070
|
—
|
1,010,000
|
|||||||||||||
Other
liabilities
|
—
|
—
|
—
|
—
|
38,168
|
38,168
|
|||||||||||||
Junior
subordinated debentures
|
25,800
|
30,900
|
—
|
29,900
|
86,600
|
||||||||||||||
Shareholders’
equity
|
—
|
—
|
—
|
—
|
221,337
|
221,337
|
|||||||||||||
Total
liabilities and shareholders’ equity
|
$
|
1,100,513
|
$
|
1,262,675
|
$
|
695,676
|
$
|
73,970
|
$
|
282,676
|
$
|
3,415,510
|
|||||||
Net
repricing assets over (under) repricing liabilities equals interest
rate
sensitivity GAP
|
$
|
132,985
|
$
|
(407,541
|
)
|
$
|
495,834
|
$
|
(12,869
|
)
|
$
|
(208,409
|
)
|
||||||
Cumulative
interest rate sensitivity GAP
|
$
|
132,985
|
$
|
(274,556
|
)
|
$
|
221,278
|
$
|
208,409
|
$
|
—
|
||||||||
Cumulative
GAP as a percentage of total assets
|
3.89
|
%
|
-8.04
|
%
|
6.48
|
%
|
6.10
|
%
|
0.00
|
%
|
|||||||||
|
Page
|
43
|
|
44
|
|
46
|
|
47
|
|
48
|
|
49
|
|
50
|
|
December
31,
|
||||||
|
2006
|
2005
|
|||||
(in
thousands, except share
amounts)
|
|||||||
|
|||||||
Assets
Cash
and cash equivalents
|
$
|
30,448
|
$
|
93,747
|
|||
Investment
securities available-for-sale, at fair value
|
99,527
|
92,563
|
|||||
Investment
securities held-to-maturity, at amortized cost (fair value approximates
$190,475 and $229,025 in 2006 and 2005, respectively)
|
193,512
|
233,880
|
|||||
Stock
in Federal Home Loan Bank
|
48,984
|
43,802
|
|||||
Loans,
net (net of allowance for loan losses of $46,049 and $43,817 in 2006
and
2005, respectively)
|
2,973,368
|
2,523,480
|
|||||
Interest
receivable
|
20,753
|
16,287
|
|||||
Other
real estate owned, net
|
6,729
|
3,960
|
|||||
Premises
and equipment, net
|
7,851
|
6,718
|
|||||
Deferred
income taxes
|
11,513
|
12,717
|
|||||
Goodwill
|
3,118
|
3,118
|
|||||
Other
assets
|
19,707
|
20,924
|
|||||
Total
assets
|
$
|
3,415,510
|
$
|
3,051,196
|
|||
Liabilities
and Shareholders’ Equity
|
|||||||
Liabilities:
|
|||||||
Deposit
accounts
|
$
|
2,059,405
|
$
|
1,735,428
|
|||
Federal
Home Loan Bank advances and other borrowings
|
1,010,000
|
992,557
|
|||||
Accounts
payable and other liabilities
|
38,168
|
32,130
|
|||||
Junior
subordinated debentures
|
86,600
|
86,600
|
|||||
Total
liabilities
|
3,194,173
|
2,846,715
|
|||||
Commitments
and contingencies (Note 14)
|
|||||||
Shareholders’
equity:
|
|||||||
Preferred
stock, 5,000,000 shares authorized, none issued
|
—
|
—
|
|||||
Contributed
capital - common stock, $.01 par value; 20,000,000 shares authorized,
9,065,672 and 8,978,998 issued in 2006 and 2005,
respectively
|
82,073
|
78,004
|
|||||
Retained
earnings
|
243,823
|
220,095
|
|||||
Accumulated
other comprehensive income (loss), net
|
35
|
(364
|
)
|
||||
325,931
|
297,735
|
||||||
Less
treasury stock, at cost - 3,803,969 and 3,576,695 shares in 2006
and 2005,
respectively
|
(104,594
|
)
|
(93,254
|
)
|
|||
Total
shareholders’ equity
|
221,337
|
204,481
|
|||||
Total
liabilities and shareholders’ equity
|
$
|
3,415,510
|
$
|
3,051,196
|
|||
|
Years
Ended December 31,
|
|||||||||
|
2006
|
2005
|
2004
|
|||||||
(in
thousands, except per share
amounts)
|
||||||||||
|
||||||||||
Interest
income:
|
||||||||||
Loans
receivable, including fees
|
$
|
207,320
|
$
|
159,720
|
$
|
115,663
|
||||
Cash,
cash equivalents and investment securities
|
19,181
|
18,438
|
9,291
|
|||||||
Total
interest income
|
226,501
|
178,158
|
124,954
|
|||||||
Interest
expense:
|
||||||||||
Deposit
accounts
|
85,156
|
53,807
|
27,916
|
|||||||
Federal
Home Loan Bank advances and other borrowings
|
38,722
|
25,508
|
7,343
|
|||||||
Junior
subordinated debentures
|
8,197
|
7,171
|
6,159
|
|||||||
Total
interest expense
|
132,075
|
86,486
|
41,418
|
|||||||
Net
interest income before provision for loan losses
|
94,426
|
91,672
|
83,536
|
|||||||
Provision
for loan losses
|
5,000
|
10,250
|
4,725
|
|||||||
Net
interest income after provision for loan losses
|
89,426
|
81,422
|
78,811
|
|||||||
Non-interest
income:
|
||||||||||
Gain
on sale of loans, net
|
—
|
4,911
|
9,284
|
|||||||
Late
and collection fees
|
970
|
536
|
338
|
|||||||
Other
|
1,802
|
1,127
|
4,886
|
|||||||
Total
non-interest income
|
2,772
|
6,574
|
14,508
|
|||||||
Non-interest
expense:
|
||||||||||
Compensation
and benefits
|
21,265
|
21,737
|
21,444
|
|||||||
Occupancy
and equipment
|
7,439
|
7,177
|
5,924
|
|||||||
Other
|
17,743
|
17,344
|
14,666
|
|||||||
Total
general and administrative
|
46,447
|
46,258
|
42,034
|
|||||||
Real
estate owned expense, net
|
334
|
204
|
127
|
|||||||
Provision
for losses on other real estate owned
|
—
|
—
|
1,000
|
|||||||
Loss
(gain) on sale of other real estate owned
|
35
|
(11
|
)
|
(415
|
)
|
|||||
Total
real estate owned expense
|
369
|
193
|
712
|
|||||||
Total
non-interest expense
|
46,816
|
46,451
|
42,746
|
|||||||
Income
before provision for income taxes
|
45,382
|
41,545
|
50,573
|
|||||||
Provision
for income taxes
|
18,493
|
17,482
|
19,948
|
|||||||
NET
INCOME
|
$
|
26,889
|
$
|
24,063
|
$
|
30,625
|
||||
BASIC
EARNINGS PER SHARE
|
$
|
4.83
|
$
|
4.19
|
$
|
5.04
|
||||
DILUTED
EARNINGS PER SHARE
|
$
|
4.71
|
$
|
4.04
|
$
|
4.75
|
Comprehensive
Income
|
|||||||||||||||||||||||||||||||||||||||||||
Common
Stock
|
Reclassification
of
|
||||||||||||||||||||||||||||||||||||||||||
Number
of shares
|
Shareholders’
Equity
|
Realized
Gains
|
|||||||||||||||||||||||||||||||||||||||||
Gross
|
Net
|
Contributed
Capital
|
Accumulated
|
Unrealized
|
Previously
|
||||||||||||||||||||||||||||||||||||||
Shares
|
Shares
|
Total
|
Other
|
Treasury
|
Gain
(Loss)
|
Recognized
in
|
Total
|
||||||||||||||||||||||||||||||||||||
Issued
and
|
Treasury
|
Issued
and
|
Share
|
Earned
|
Contributed
|
Retained
|
Comprehensive
|
Stock,
|
Net
|
on
Securities,
|
Comprehensive
|
Comprehensive
|
|||||||||||||||||||||||||||||||
Outstanding
|
Shares
|
Outstanding
|
Capital
|
Compensation
|
Capital
|
Earnings
|
Income
(Loss)
|
At
Cost
|
Total
|
Income
|
Net
of Tax
|
Income,
Net of Tax
|
Income
|
||||||||||||||||||||||||||||||
(in
thousands except share amounts)
|
|||||||||||||||||||||||||||||||||||||||||||
Balance
at January 1, 2004
|
8,447,294
|
(2,475,689
|
)
|
5,971,605
|
$
|
59,650
|
$
|
2,054
|
$
|
61,704
|
$
|
165,407
|
$
|
155
|
$
|
(40,367
|
)
|
$
|
186,899
|
||||||||||||||||||||||||
Issuance
of common stock - employee stock options
|
256,600
|
—
|
256,600
|
7,477
|
—
|
7,477
|
—
|
—
|
—
|
7,477
|
|||||||||||||||||||||||||||||||||
Earned
compensation from Supplemental Executive Retirement Plan /Recognition
and
Retention Plan, net
|
—
|
—
|
—
|
—
|
146
|
146
|
—
|
—
|
—
|
146
|
|||||||||||||||||||||||||||||||||
Common
stock repurchased
|
—
|
(678,601
|
)
|
(678,601
|
)
|
—
|
—
|
—
|
—
|
—
|
(30,346
|
)
|
(30,346
|
)
|
|||||||||||||||||||||||||||||
Net
income
|
—
|
—
|
—
|
—
|
—
|
—
|
30,625
|
—
|
—
|
30,625
|
|||||||||||||||||||||||||||||||||
Other
comprehensive income
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(77
|
)
|
—
|
(77
|
)
|
$
|
30,625
|
$
|
(77
|
)
|
$
|
—
|
$
|
30,548
|
||||||||||||||||||||||
Balance
at December 31, 2004
|
8,703,894
|
(3,154,290
|
)
|
5,549,604
|
$
|
67,127
|
$
|
2,200
|
$
|
69,327
|
$
|
196,032
|
$
|
78
|
$
|
(70,713
|
)
|
$
|
194,724
|
||||||||||||||||||||||||
Issuance
of common stock-employee stock options, net
|
275,104
|
—
|
275,104
|
8,656
|
—
|
8,656
|
—
|
—
|
—
|
8,656
|
|||||||||||||||||||||||||||||||||
Earned
compensation from Supplemental Executive Retirement Plan / Recognition
and
Retention Plan, net
|
—
|
9,333
|
9,333
|
—
|
21
|
21
|
—
|
—
|
84
|
105
|
|||||||||||||||||||||||||||||||||
Common
stock repurchased
|
—
|
(431,738
|
)
|
(431,738
|
)
|
—
|
—
|
—
|
—
|
—
|
(22,625
|
)
|
(22,625
|
)
|
|||||||||||||||||||||||||||||
Net
income
|
—
|
—
|
—
|
—
|
—
|
—
|
24,063
|
—
|
—
|
24,063
|
|||||||||||||||||||||||||||||||||
Other
comprehensive income
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(442
|
)
|
—
|
(442
|
)
|
$
|
24,063
|
$
|
(442
|
)
|
$
|
—
|
$
|
23,621
|
||||||||||||||||||||||
Balance
at December 31, 2005
|
8,978,998
|
(3,576,695
|
)
|
5,402,303
|
$
|
75,783
|
$
|
2,221
|
$
|
78,004
|
$
|
220,095
|
$
|
(364
|
)
|
$
|
(93,254
|
)
|
$
|
204,481
|
|||||||||||||||||||||||
Issuance
of common stock- employee stock options, net
|
86,674
|
—
|
86,674
|
3,692
|
—
|
3,692
|
—
|
—
|
—
|
3,692
|
|||||||||||||||||||||||||||||||||
Earned
compensation from Supplemental Executive Retirement Plan / Recognition
and
Retention Plan, net
|
—
|
1,735
|
1,735
|
—
|
111
|
111
|
—
|
—
|
(75
|
)
|
36
|
||||||||||||||||||||||||||||||||
Common
stock repurchased
|
—
|
(229,009
|
)
|
(229,009
|
)
|
—
|
—
|
—
|
—
|
—
|
(11,265
|
)
|
(11,265
|
)
|
|||||||||||||||||||||||||||||
Cash
dividends declared ($0.60 per common share)
|
—
|
—
|
—
|
—
|
—
|
—
|
(3,161
|
)
|
—
|
—
|
(3,161
|
)
|
|||||||||||||||||||||||||||||||
Stock
compensation expense recognized in earnings
|
—
|
—
|
—
|
—
|
266
|
266
|
—
|
—
|
—
|
266
|
|||||||||||||||||||||||||||||||||
Net
income
|
—
|
—
|
—
|
—
|
—
|
—
|
26,889
|
—
|
—
|
26,889
|
|||||||||||||||||||||||||||||||||
Other
comprehensive income
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
399
|
—
|
399
|
$
|
26,889
|
$
|
399
|
$
|
—
|
$
|
27,288
|
|||||||||||||||||||||||||
Balance
at December 31, 2006
|
9,065,672
|
(3,803,969
|
)
|
5,261,703
|
$
|
79,475
|
$
|
2,598
|
$
|
82,073
|
$
|
243,823
|
$
|
35
|
$
|
(104,594
|
)
|
$
|
221,337
|
Years
Ended December 31,
|
||||||||||
2006
|
2005
|
2004
|
||||||||
(in
thousands)
|
||||||||||
Cash
Flows From Operating Activities:
|
||||||||||
Net
Income
|
$
|
26,889
|
$
|
24,063
|
$
|
30,625
|
||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||||
Depreciation
and amortization of premises and equipment
|
2,690
|
2,682
|
2,086
|
|||||||
Amortization
of premium on purchased loans
|
4,732
|
3,114
|
2,196
|
|||||||
Accretion
of deferred loan origination fees, net of costs
|
(2,846
|
)
|
(2,897
|
)
|
(1,794
|
)
|
||||
Provision
for loan losses
|
5,000
|
10,250
|
4,725
|
|||||||
Provision
for losses on other real estate owned
|
—
|
—
|
1,000
|
|||||||
Gain
on sale of loans, net
|
—
|
(4,911
|
)
|
(9,284
|
)
|
|||||
Deferred
income tax expense (benefit)
|
926
|
(1,940
|
)
|
1,198
|
||||||
Other,
net
|
(2,020
|
)
|
2,928
|
2,565
|
||||||
(Increase)
decrease in interest receivable
|
(4,466
|
)
|
(5,592
|
)
|
(1,737
|
)
|
||||
Decrease
(increase) in other assets
|
1,198
|
(1,247
|
)
|
7,238
|
||||||
Increase
in accounts payable and other liabilities
|
5,231
|
11,639
|
795
|
|||||||
Net
cash provided by operating activities
|
37,334
|
38,089
|
39,613
|
|||||||
Cash
Flows From Investing Activities:
|
||||||||||
Purchases
of investment securities available-for-sale
|
(44,331
|
)
|
(42,770
|
)
|
(45,269
|
)
|
||||
Proceeds
from the maturity and calls of investment securities
available-for-sale
|
38,159
|
16,238
|
31,048
|
|||||||
Purchases
of investment securities held-to-maturity
|
(7,771
|
)
|
—
|
(306,047
|
)
|
|||||
Proceeds
from the maturity and redemption of investment securities
held-to-maturity
|
48,019
|
62,033
|
10,066
|
|||||||
Purchase
of stock in Federal Home Loan Bank
|
(2,675
|
)
|
(19,252
|
)
|
(4,462
|
)
|
||||
Purchase
of loans
|
(497,785
|
)
|
(723,822
|
)
|
(139,486
|
)
|
||||
Origination
of RAL loans
|
—
|
—
|
(12,949,433
|
)
|
||||||
Proceeds
from the participation in RAL loans
|
—
|
—
|
12,958,717
|
|||||||
Proceeds
from the sale of franchise loans
|
—
|
115,508
|
—
|
|||||||
Decrease
(increase) in loans, net
|
38,072
|
(130,937
|
)
|
(155,887
|
)
|
|||||
Proceeds
from sale of other real estate owned
|
135
|
81
|
8,318
|
|||||||
Cash
paid for capital expenditures
|
(3,823
|
)
|
(2,755
|
)
|
(2,965
|
)
|
||||
Net
cash used in investing activities
|
(432,000
|
)
|
(725,676
|
)
|
(595,400
|
)
|
||||
Cash
Flows From Financing Activities:
|
||||||||||
Proceeds
from exercise of employee stock options
|
3,692
|
4,650
|
4,159
|
|||||||
Cash
paid to acquire treasury stock
|
(11,374
|
)
|
(22,625
|
)
|
(30,346
|
)
|
||||
Cash
dividends paid
|
(2,371
|
)
|
—
|
—
|
||||||
Principal
payments on collateralized mortgage obligations
|
—
|
—
|
(15,868
|
)
|
||||||
Increase
in deposit accounts
|
323,977
|
303,396
|
285,015
|
|||||||
Net
proceeds from (repayments of) short-term borrowings
|
89,293
|
(77,795
|
)
|
(85,000
|
)
|
|||||
Proceeds
from long-term borrowings
|
89,869
|
586,215
|
363,689
|
|||||||
Repayments
of long-term borrowings
|
(161,719
|
)
|
(100,087
|
)
|
(56,600
|
)
|
||||
Net
cash provided by financing activities
|
331,367
|
693,754
|
465,049
|
|||||||
Net
(decrease) increase in cash and cash equivalents
|
(63,299
|
)
|
6,167
|
(90,738
|
)
|
|||||
Cash
and cash equivalents, beginning of period
|
93,747
|
87,580
|
178,318
|
|||||||
Cash
and cash equivalents, end of period
|
$
|
30,448
|
$
|
93,747
|
$
|
87,580
|
||||
Supplemental
Cash Flow Information:
|
||||||||||
Cash
paid during the period for interest
|
$
|
124,755
|
$
|
82,326
|
$
|
40,759
|
||||
Cash
paid during the period for income taxes
|
$
|
16,668
|
$
|
10,033
|
$
|
14,329
|
||||
Non-cash
Investing Transactions:
|
||||||||||
Loans
transferred to other real estate owned
|
$
|
3,499
|
$
|
4,030
|
$
|
1,855
|
||||
Loans
to facilitate the sale of other real estate owned
|
$
|
560
|
$
|
—
|
$
|
1,759
|
||||
Cash
dividends declared but not yet paid
|
$
|
790
|
$
|
—
|
$
|
—
|
For
the Years Ended December 31,
|
|||||||
2005
|
2004
|
||||||
(in
thousands, except per share data)
|
|||||||
Net
income, as reported
|
$
|
24,063
|
$
|
30,625
|
|||
Less:
Stock-based employee compensation expense determined under the
fair value
method, net of tax
|
(4,189
|
)
|
(775
|
)
|
|||
Pro
forma net income
|
$
|
19,874
|
$
|
29,850
|
|||
Earnings
per share:
|
|||||||
Basic
- as reported
|
$
|
4.19
|
$
|
5.04
|
|||
Basic
- pro forma
|
$
|
3.46
|
$
|
4.91
|
|||
Diluted
- as reported
|
$
|
4.04
|
$
|
4.75
|
|||
Diluted
- pro forma
|
$
|
3.33
|
$
|
4.63
|
|
Weighted-Average
Assumptions for Option Grants
|
|||||||||
|
2006
|
2005
|
2004
|
|||||||
Dividend
Yield
|
1.17
|
%
|
0.00
|
%
|
0.00
|
%
|
||||
Expected
Volatility
|
22.86
|
%
|
37.59
|
%
|
36.17
|
%
|
||||
Risk-Free
Interest Rates
|
4.94
|
%
|
4.33
|
%
|
4.12
|
%
|
||||
Expected
Lives
|
5
Years
|
5.5
Years
|
7
Years
|
|||||||
Weighted-Average
Fair Value
|
$
|
13.68
|
$
|
20.69
|
$
|
18.44
|
Amortized
|
Fair
|
Gross
Unrealized
|
|||||||||||
Cost
|
Value
|
Gains
|
Losses
|
||||||||||
(in
thousands)
|
|||||||||||||
December
31, 2006:
|
|||||||||||||
Investment
securities available-for-sale:
|
|||||||||||||
U.S.
agency securities
|
$
|
62,554
|
$
|
62,184
|
$
|
3
|
$
|
373
|
|||||
Collateralized
mortgage obligations
|
34,991
|
35,127
|
163
|
27
|
|||||||||
Residual
interest in securitized loans
|
1,911
|
2,039
|
128
|
—
|
|||||||||
Equity
securities
|
13
|
177
|
170
|
6
|
|||||||||
Total
investment securities available-for-sale
|
$
|
99,469
|
$
|
99,527
|
$
|
464
|
$
|
406
|
|||||
Investment
securities held-to-maturity:
|
|||||||||||||
Mortgage-backed
securities
|
$
|
193,512
|
$
|
190,475
|
$
|
105
|
$
|
3,142
|
|||||
December
31, 2005:
|
|||||||||||||
Investment
securities available-for-sale:
|
|||||||||||||
U.S.
agency securities
|
$
|
89,897
|
$
|
88,829
|
$
|
—
|
$
|
1,068
|
|||||
Residual
interest in securitized loans
|
3,257
|
3,570
|
313
|
—
|
|||||||||
Equity
securities
|
16
|
164
|
149
|
1
|
|||||||||
Total
investment securities available-for-sale
|
$
|
93,170
|
$
|
92,563
|
$
|
462
|
$
|
1,069
|
|||||
Investment
securities held-to-maturity:
|
|||||||||||||
Mortgage-backed
securities
|
$
|
233,880
|
$
|
229,025
|
$
|
—
|
$
|
4,855
|
Available-for-Sale
|
Held-to-Maturity
|
||||||||||||
Amortized
Cost
|
Estimated
Fair
Value
|
Amortized
Cost
|
Estimated
Fair
Value
|
||||||||||
(in
thousands)
|
|||||||||||||
Due
in one year or less
|
$
|
52,600
|
$
|
52,462
|
$
|
—
|
$
|
—
|
|||||
Due
after one year through five years
|
11,878
|
11,938
|
—
|
—
|
|||||||||
Due
after five years through ten years
|
14,903
|
14,899
|
—
|
—
|
|||||||||
Due
after ten years
|
20,088
|
20,228
|
193,512
|
190,475
|
|||||||||
$
|
99,469
|
$
|
99,527
|
$
|
193,512
|
$
|
190,475
|
|
Less
than 12 months
|
More
than 12 months
|
Total
|
||||||||||||||||
|
Estimated
Fair
Value
|
Unrealized
Losses
|
Estimated
Fair
Value
|
Unrealized
Losses
|
Estimated
Fair
Value
|
Unrealized
Losses
|
|||||||||||||
(in
thousands)
|
|||||||||||||||||||
Investment
securities available-for-sale
|
|||||||||||||||||||
U.S.
agency securities
|
$
|
—
|
$
|
—
|
$
|
56,214
|
$
|
373
|
$
|
56,214
|
$
|
373
|
|||||||
Collateralized
mortgage obligations
|
9,022
|
27
|
—
|
—
|
9,022
|
27
|
|||||||||||||
Equity
securities
|
—
|
—
|
4
|
6
|
4
|
6
|
|||||||||||||
Total
investment securities available-for-sale
|
$
|
9,022
|
$
|
27
|
$
|
56,218
|
$
|
379
|
$
|
65,240
|
$
|
406
|
|||||||
Investment
securities held-to-maturity
Mortgage-backed
securities
|
$
|
—
|
$
|
—
|
$
|
182,953
|
$
|
3,142
|
$
|
182,953
|
$
|
3,142
|
|
Less
than 12 months
|
More
than 12 months
|
Total
|
||||||||||||||||
|
Estimated
Fair
Value
|
Unrealized
Losses
|
Estimated
Fair
Value
|
Unrealized
Losses
|
Estimated
Fair
Value
|
Unrealized
Losses
|
|||||||||||||
(in
thousands)
|
|||||||||||||||||||
Investment
securities available-for-sale
|
|||||||||||||||||||
U.S.
agency securities
|
$
|
56,819
|
$
|
582
|
$
|
32,010
|
$
|
486
|
$
|
88,829
|
$
|
1,068
|
|||||||
Investment
securities held-to-maturity
Mortgage-backed
securities
|
$
|
111,168
|
$
|
2,115
|
$
|
117,857
|
$
|
2,740
|
$
|
229,025
|
$
|
4,855
|
|
December
31,
|
||||||
|
2006
|
2005
|
|||||
(in
thousands)
|
|||||||
Real
estate loans
|
$
|
2,546,904
|
$
|
2,154,372
|
|||
Construction
loans
|
347,751
|
302,932
|
|||||
Entertainment
finance loans
|
74,204
|
66,514
|
|||||
Franchise
loans
|
9,334
|
13,705
|
|||||
Commercial
and other loans
|
9,346
|
7,264
|
|||||
2,987,539
|
2,544,787
|
||||||
Unamortized
premium
|
18,138
|
14,582
|
|||||
Deferred
loan origination costs, net
|
13,740
|
7,928
|
|||||
3,019,417
|
2,567,297
|
||||||
Allowance
for loan losses
|
(46,049
|
)
|
(43,817
|
)
|
|||
$
|
2,973,368
|
$
|
2,523,480
|
|
As
of and for the Years
Ended
December 31,
|
|||||||||
|
2006
|
2005
|
2004
|
|||||||
(in
thousands)
|
||||||||||
Balance
at beginning of year
|
$
|
43,817
|
$
|
35,483
|
$
|
33,401
|
||||
Provision
for loan losses
|
5,000
|
10,250
|
4,725
|
|||||||
Charge-offs:
|
||||||||||
Real
estate loans
|
(1,634
|
)
|
(1,584
|
)
|
(189
|
)
|
||||
Entertainment
finance loans
|
(2,500
|
)
|
(395
|
)
|
(2,180
|
)
|
||||
Franchise
loans
|
—
|
(451
|
)
|
—
|
||||||
Commercial
and other loans
|
—
|
—
|
(1,121
|
)
|
||||||
Total
charge-offs
|
(4,134
|
)
|
(2,430
|
)
|
(3,490
|
)
|
||||
Recoveries:
|
||||||||||
Real
estate loans
|
894
|
88
|
89
|
|||||||
Entertainment
finance loans
|
472
|
426
|
—
|
|||||||
Commercial
and other loans
|
—
|
—
|
758
|
|||||||
Total
recoveries
|
1,366
|
514
|
847
|
|||||||
Net
charge-offs
|
(2,768
|
)
|
(1,916
|
)
|
(2,643
|
)
|
||||
Balance
at end of year
|
$
|
46,049
|
$
|
43,817
|
$
|
35,483
|
|
December
31,
|
||||||
|
2006
|
2005
|
|||||
(in
thousands)
|
|||||||
Other
real estate owned held for sale
|
$
|
6,729
|
$
|
3,960
|
|||
Less:
valuation allowance
|
—
|
—
|
|||||
Other
real estate owned, net
|
$
|
6,729
|
$
|
3,960
|
|
As
of and for the Years
Ended
December 31,
|
|||||||||
|
2006
|
2005
|
2004
|
|||||||
(in
thousands)
|
||||||||||
Balance
at beginning of year
|
$
|
—
|
$
|
—
|
$
|
500
|
||||
Provision
for losses on other real estate owned
|
—
|
—
|
1,000
|
|||||||
Charge-offs
on other real estate owned
|
—
|
—
|
(1,500
|
)
|
||||||
Balance
at end of year
|
$
|
—
|
$
|
—
|
$
|
—
|
|
December
31,
|
||||||
|
2006
|
2005
|
|||||
(in
thousands)
|
|||||||
Furniture,
fixtures and equipment
|
$
|
16,876
|
$
|
13,361
|
|||
Leasehold
improvements
|
6,327
|
6,556
|
|||||
Automobiles
|
1,476
|
986
|
|||||
24,679
|
20,903
|
||||||
Accumulated
depreciation and amortization
|
(16,828
|
)
|
(14,185
|
)
|
|||
$
|
7,851
|
$
|
6,718
|
|
December
31,
|
||||||
|
2006
|
2005
|
|||||
(in
thousands)
|
|||||||
Non-interest
demand accounts
|
$
|
23,171
|
$
|
13,660
|
|||
Interest
demand accounts
|
24,523
|
38,197
|
|||||
Money
market and passbook accounts
|
210,236
|
186,453
|
|||||
Time
certificates under $100,000
|
784,732
|
763,701
|
|||||
Time
certificates $100,000 and over
|
1,016,743
|
733,417
|
|||||
$
|
2,059,405
|
$
|
1,735,428
|
Year
of Maturity
|
Amount
|
|||
(in
thousands)
|
||||
2007
|
$
|
1,636,998
|
||
2008
|
66,783
|
|||
2009
|
16,649
|
|||
2010
|
38,888
|
|||
2011
and thereafter
|
42,157
|
|||
$
|
1,801,475
|
Year
of Maturity
|
Amount
|
|||
(in
thousands)
|
||||
2007
|
$
|
434,765
|
||
2008
|
188,602
|
|||
2009
|
59,646
|
|||
2010
|
222,915
|
|||
2011
|
60,002
|
|||
Thereafter
|
44,070
|
|||
$
|
1,010,000
|
|
December
31,
|
|||||||||||
|
2006
|
2005
|
2004
|
|||||||||
(dollars
in thousands)
|
||||||||||||
Short-Term
Borrowings:
|
||||||||||||
Maximum
amount outstanding at any month-end during the year
|
$
|
177,498
|
$
|
112,000
|
$
|
199,000
|
||||||
Weighted-average
daily balance outstanding
|
$
|
15,094
|
$
|
38,566
|
$
|
91,316
|
||||||
Weighted-average
rate paid during the year
|
4.96
|
%
|
3.19
|
%
|
1.53
|
%
|
||||||
Weighted-average
rate on balance at year-end
|
5.40
|
%
|
4.18
|
%
|
2.37
|
%
|
||||||
Balance
at year-end
|
$
|
177,498
|
$
|
88,205
|
$
|
166,000
|
||||||
Interest
expense
|
$
|
749
|
$
|
1,230
|
$
|
1,664
|
||||||
Long-Term
Borrowings:
|
||||||||||||
Maximum
amount outstanding at any month-end during the year
|
$
|
973,571
|
$
|
906,457
|
$
|
418,224
|
||||||
Weighted-average
daily balance outstanding
|
$
|
911,822
|
$
|
668,825
|
$
|
170,906
|
||||||
Weighted-average
rate paid during the year
|
4.17
|
%
|
3.63
|
%
|
3.28
|
%
|
||||||
Weighted-average
rate on balance at year-end
|
4.25
|
%
|
4.00
|
%
|
3.16
|
%
|
||||||
Balance
at year-end
|
$
|
832,502
|
$
|
904,352
|
$
|
418,224
|
||||||
Interest
expense
|
$
|
37,973
|
$
|
24,278
|
$
|
5,608
|
December
31,
|
||||||||
|
2006
|
2005
|
||||||
(dollars
in thousands)
|
||||||||
Fair
value of retained interest
|
$
|
2,039
|
$
|
3,570
|
||||
Weighted
average life (in years) - securities
|
0.55
|
0.56
|
||||||
Weighted
average life (in years) - residual interest
|
2.74
|
2.92
|
||||||
Weighted
average annual prepayment speed
|
40.0
|
%
|
40.0
|
%
|
||||
Impact
of 10% adverse change
|
$
|
(6
|
)
|
$
|
(22
|
)
|
||
Impact
of 25% adverse change
|
$
|
(10
|
)
|
$
|
(34
|
)
|
||
Weighted
average annual discount rate
|
13.0
|
%
|
13.0
|
%
|
||||
Impact
of 10% adverse change
|
$
|
(65
|
)
|
$
|
(117
|
)
|
||
Impact
of 25% adverse change
|
$
|
(156
|
)
|
$
|
(284
|
)
|
||
Weighted
average lifetime credit losses
|
20.2
|
%
|
14.3
|
%
|
||||
Impact
of 10% adverse change
|
$
|
(86
|
)
|
$
|
(79
|
)
|
||
Impact
of 25% adverse change
|
$
|
(224
|
)
|
$
|
(211
|
)
|
|
Number
of Options
|
Weighted-Average
Exercise
Price
|
|||||||||||
|
2006
|
2005
|
2006
|
2005
|
|||||||||
Options
outstanding at the beginning of the year
|
630,818
|
592,339
|
$
|
35.61
|
$
|
19.41
|
|||||||
Options
granted during the year
|
7,250
|
322,250
|
$
|
51.10
|
$
|
49.53
|
|||||||
Options
exercised during the year
|
(86,674
|
)
|
(275,104
|
)
|
$
|
35.36
|
$
|
16.90
|
|||||
Options
forfeited during the year
|
(5,410
|
)
|
(8,667
|
)
|
$
|
48.11
|
$
|
39.94
|
|||||
Options
outstanding at the end of the year
|
545,984
|
630,818
|
$
|
35.73
|
$
|
35.61
|
|||||||
Options
exercisable at the end of the year
|
538,484
|
617,318
|
$
|
35.50
|
$
|
35.30
|
|
December
31,
|
||||||
|
2006
|
2005
|
|||||
(in
thousands)
|
|||||||
Components
of the deferred tax asset:
|
|||||||
Allowance
for loan losses
|
$
|
18,933
|
$
|
17,995
|
|||
Accrued
expenses
|
3,462
|
2,857
|
|||||
State
income taxes
|
1,314
|
1,061
|
|||||
Unrealized
loss on investment securities available-for-sale
|
—
|
255
|
|||||
Other
|
939
|
904
|
|||||
Total
deferred tax assets
|
24,648
|
23,072
|
|||||
Components
of the deferred tax liability:
|
|||||||
Deferred
loan origination costs
|
9,167
|
7,445
|
|||||
FHLB
stock dividends
|
3,945
|
2,910
|
|||||
Unrealized
gain on investment securities available-for-sale
|
23
|
—
|
|||||
Total
deferred tax liabilities
|
13,135
|
10,355
|
|||||
Net
deferred tax asset
|
$
|
11,513
|
$
|
12,717
|
|
Years
Ended December 31,
|
|||||||||
|
2006
|
2005
|
2004
|
|||||||
(in
thousands)
|
||||||||||
Current
provision:
|
||||||||||
Federal
|
$
|
13,678
|
$
|
14,709
|
$
|
13,945
|
||||
State
|
3,889
|
4,713
|
4,805
|
|||||||
17,567
|
19,422
|
18,750
|
||||||||
Deferred
provision (benefit):
|
||||||||||
Federal
|
540
|
(1,448
|
)
|
902
|
||||||
State
|
386
|
(492
|
)
|
296
|
||||||
926
|
(1,940
|
)
|
1,198
|
|||||||
$
|
18,493
|
$
|
17,482
|
$
|
19,948
|
Years
Ended December 31,
|
||||||||||
2006
|
2005
|
2004
|
||||||||
Federal
statutory income tax rate
|
35.0
|
%
|
35.0
|
%
|
35.0
|
%
|
||||
State
income tax, net of federal income tax benefit
|
7.0
|
%
|
7.0
|
%
|
7.0
|
%
|
||||
State
income tax credit and other benefits
|
(1.3
|
)%
|
—
|
(2.6
|
)%
|
|||||
Effective
income tax rate
|
40.7
|
%
|
42.0
|
%
|
39.4
|
%
|
(in
thousands)
|
||||
2007
|
$
|
3,640
|
||
2008
|
3,228
|
|||
2009
|
2,154
|
|||
2010
|
1,513
|
|||
2011
|
1,354
|
|||
Thereafter
|
1,153
|
|||
Sub-Lease
income
|
(98
|
)
|
||
$
|
12,944
|
|
Actual
|
Minimum
Requirement
for
Capital Adequacy
Purposes
|
Capital
Required
to
Maintain
“Well
Capitalized”
Designation
|
||||||||||||||||||
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||
(dollars
in thousands)
|
|||||||||||||||||||||
As
of December 31,
2006
|
|||||||||||||||||||||
Total
capital (to risk-weighted assets)
|
|||||||||||||||||||||
ITLA
Capital
|
$
|
337,868
|
11.9
|
%
|
$
|
227,517
|
8.0
|
%
|
$
|
284,396
|
10.0
|
%
|
|||||||||
Imperial
Capital Bank
|
$
|
325,500
|
11.5
|
%
|
$
|
226,322
|
8.0
|
%
|
$
|
282,903
|
10.0
|
%
|
|||||||||
Tier
I capital (to risk-weighted assets)
|
|||||||||||||||||||||
ITLA
Capital
|
$
|
290,912
|
10.2
|
%
|
$
|
113,759
|
4.0
|
%
|
$
|
170,639
|
6.0
|
%
|
|||||||||
Imperial
Capital Bank
|
$
|
290,013
|
10.3
|
%
|
$
|
113,162
|
4.0
|
%
|
$
|
169,743
|
6.0
|
%
|
|||||||||
Tier
I capital (to average total assets)
|
|||||||||||||||||||||
ITLA
Capital
|
$
|
290,912
|
9.0
|
%
|
$
|
128,696
|
4.0
|
%
|
$
|
160,870
|
5.0
|
%
|
|||||||||
Imperial
Capital Bank
|
$
|
290,013
|
9.1
|
%
|
$
|
127,974
|
4.0
|
%
|
$
|
159,968
|
5.0
|
%
|
|||||||||
As
of December 31,
2005
|
|||||||||||||||||||||
Total
capital (to risk-weighted assets)
|
|||||||||||||||||||||
ITLA
Capital
|
$
|
316,421
|
13.0
|
%
|
$
|
195,364
|
8.0
|
%
|
$
|
244,205
|
10.0
|
%
|
|||||||||
Imperial
Capital Bank
|
$
|
296,252
|
12.2
|
%
|
$
|
193,964
|
8.0
|
%
|
$
|
242,455
|
10.0
|
%
|
|||||||||
Tier
I capital (to risk-weighted assets)
|
|||||||||||||||||||||
ITLA
Capital
|
$
|
268,969
|
11.0
|
%
|
$
|
97,683
|
4.0
|
%
|
$
|
146,525
|
6.0
|
%
|
|||||||||
Imperial
Capital Bank
|
$
|
265,787
|
11.0
|
%
|
$
|
96,983
|
4.0
|
%
|
$
|
145,475
|
6.0
|
%
|
|||||||||
Tier
I capital (to average total assets)
|
|||||||||||||||||||||
ITLA
Capital
|
$
|
268,969
|
9.1
|
%
|
$
|
118,458
|
4.0
|
%
|
$
|
148,073
|
5.0
|
%
|
|||||||||
Imperial
Capital Bank
|
$
|
265,787
|
9.1
|
%
|
$
|
116,769
|
4.0
|
%
|
$
|
145,961
|
5.0
|
%
|
|
Net
Income
|
Weighted-
Average
Shares
Outstanding
|
Per
Share
Amount
|
|||||||
(in
thousands, except per share data)
|
||||||||||
Year
ended December 31, 2006
Basic
earnings per share
|
$
|
26,889
|
5,562
|
$
|
4.83
|
|||||
Dilutive
effect of stock options
|
—
|
150
|
(0.12
|
)
|
||||||
Diluted
earnings per share
|
$
|
26,889
|
5,712
|
$
|
4.71
|
|||||
Year
ended December 31, 2005
Basic
earnings per share
|
$
|
24,063
|
5,749
|
$
|
4.19
|
|||||
Dilutive
effect of stock options
|
—
|
214
|
(0.15
|
)
|
||||||
Diluted
earnings per share
|
$
|
24,063
|
5,963
|
$
|
4.04
|
|||||
Year
ended December 31, 2004
Basic
earnings per share
|
$
|
30,625
|
6,077
|
$
|
5.04
|
|||||
Dilutive
effect of stock options
|
—
|
377
|
(0.29
|
)
|
||||||
Diluted
earnings per share
|
$
|
30,625
|
6,454
|
$
|
4.75
|
|
December
31,
|
||||||||||||
|
2006
|
2005
|
|||||||||||
|
Cost
or
Carrying
Amount
|
Estimated
Fair
Value
|
Cost
or
Carrying
Amount
|
Estimated
Fair
Value
|
|||||||||
(in
thousands)
|
|||||||||||||
Financial
assets:
|
|||||||||||||
Cash
and cash equivalents
|
$
|
30,448
|
$
|
30,448
|
$
|
93,747
|
$
|
93,747
|
|||||
Investment
securities available-for-sale
|
99,527
|
99,527
|
92,563
|
92,563
|
|||||||||
Investment
securities held-to-maturity
|
193,512
|
190,475
|
233,880
|
229,025
|
|||||||||
Stock
in Federal Home Loan Bank
|
48,984
|
48,984
|
43,802
|
43,802
|
|||||||||
Loans,
net
|
2,973,368
|
3,008,621
|
2,523,480
|
2,530,654
|
|||||||||
Accrued
interest receivable
|
20,753
|
20,753
|
16,287
|
16,287
|
|||||||||
Financial
liabilities:
|
|||||||||||||
Deposit
accounts
|
$
|
2,059,405
|
$
|
2,061,922
|
$
|
1,735,428
|
$
|
1,733,205
|
|||||
Federal
Home Loan Bank advances and other borrowings
|
1,010,000
|
998,219
|
992,557
|
985,682
|
|||||||||
Junior
subordinated debentures
|
86,600
|
90,425
|
86,600
|
92,788
|
Lending Operations
|
All
Other
|
Eliminations
|
Consolidated
|
||||||||||
(in
thousands)
|
|||||||||||||
As
of and for the Year Ended December
31, 2006
Revenues
from external customers
|
$
|
228,057
|
$
|
1,216
|
$
|
—
|
$
|
229,273
|
|||||
Total
interest income
|
225,376
|
1,125
|
—
|
226,501
|
|||||||||
Total
interest expense
|
123,878
|
8,197
|
—
|
132,075
|
|||||||||
Depreciation
and amortization expense
|
2,305
|
393
|
—
|
2,698
|
|||||||||
Provision
for income taxes
|
22,513
|
(4,020
|
)
|
—
|
18,493
|
||||||||
Capital
expenditures
|
2,286
|
325
|
—
|
2,611
|
|||||||||
Total
assets
|
3,396,079
|
319,554
|
(300,123
|
)
|
3,415,510
|
||||||||
Income
(loss) before provision for income taxes
|
55,410
|
(10,028
|
)
|
—
|
45,382
|
||||||||
As
of and for the Year Ended December
31, 2005
Revenues
from external customers
|
$
|
182,580
|
$
|
2,152
|
$
|
—
|
$
|
184,732
|
|||||
Total
interest income
|
175,855
|
2,303
|
—
|
178,158
|
|||||||||
Total
interest expense
|
79,315
|
7,171
|
—
|
86,486
|
|||||||||
Depreciation
and amortization expense
|
2,290
|
392
|
—
|
2,682
|
|||||||||
Provision
for income taxes
|
20,113
|
(2,631
|
)
|
—
|
17,482
|
||||||||
Capital
expenditures
|
2,232
|
523
|
—
|
2,755
|
|||||||||
Total
assets
|
3,029,118
|
302,351
|
(280,273
|
)
|
3,051,196
|
||||||||
Income
(loss) before provision for income taxes
|
49,362
|
(7,817
|
)
|
—
|
41,545
|
||||||||
As
of and for the Year Ended December
31, 2004
Revenues
from external customers
|
$
|
139,154
|
$
|
308
|
$
|
—
|
$
|
139,462
|
|||||
Total
interest income
|
124,788
|
1,608
|
(1,442
|
)
|
124,954
|
||||||||
Total
interest expense
|
36,528
|
6,332
|
(1,442
|
)
|
41,418
|
||||||||
Depreciation
and amortization expense
|
1,723
|
362
|
—
|
2,085
|
|||||||||
Provision
for income taxes
|
22,836
|
(2,888
|
)
|
—
|
19,948
|
||||||||
Capital
expenditures
|
2,752
|
242
|
—
|
2,994
|
|||||||||
Total
assets
|
2,253,190
|
327,763
|
(262,882
|
)
|
2,318,071
|
||||||||
Income
(loss) before provision for income taxes
|
59,537
|
(8,964
|
)
|
—
|
50,573
|
|
December
31,
|
||||||
|
2006
|
2005
|
|||||
(in
thousands)
|
|||||||
Assets
Cash
and cash equivalents
|
$
|
1,401
|
$
|
7,874
|
|||
Investment
securities available-for-sale, at fair value
|
2,216
|
3,734
|
|||||
Investments
in wholly-owned subsidiaries:
|
|||||||
Imperial
Capital Bank
|
292,990
|
268,264
|
|||||
Imperial
Capital Real Estate Investment Trust
|
1,504
|
3,479
|
|||||
Other
subsidiaries
|
177
|
177
|
|||||
Investments
in unconsolidated subsidiaries
|
2,600
|
2,600
|
|||||
Other
assets
|
18,393
|
15,952
|
|||||
Total
assets
|
$
|
319,281
|
$
|
302,080
|
|||
Liabilities
and Shareholders’ Equity
Junior
subordinated debentures
|
$
|
86,600
|
$
|
86,600
|
|||
Other
liabilities
|
11,344
|
10,999
|
|||||
Shareholders’
equity
|
221,337
|
204,481
|
|||||
Total
liabilities and shareholders’ equity
|
$
|
319,281
|
$
|
302,080
|
|
Years
Ended December 31,
|
|||||||||
|
2006
|
2005
|
2004
|
|||||||
(in
thousands)
|
||||||||||
Interest
income
|
$
|
1,125
|
$
|
2,303
|
$
|
1,608
|
||||
Interest
expense
|
8,197
|
7,171
|
6,332
|
|||||||
Net
interest expense
|
(7,072
|
)
|
(4,868
|
)
|
(4,724
|
)
|
||||
Provision
for loan losses
|
(4
|
)
|
(64
|
)
|
—
|
|||||
Non-interest
expense:
|
||||||||||
General
and administrative expense
|
3,052
|
2,809
|
2,883
|
|||||||
Other
|
(91
|
)
|
140
|
1,300
|
||||||
Total
non-interest expense
|
2,961
|
2,949
|
4,183
|
|||||||
Loss
before income tax benefit and equity in net income of
subsidiaries
|
(10,029
|
)
|
(7,753
|
)
|
(8,907
|
)
|
||||
Income
tax benefit
|
(4,021
|
)
|
(2,609
|
)
|
(2,866
|
)
|
||||
Loss
before equity in net income of subsidiaries
|
(6,008
|
)
|
(5,144
|
)
|
(6,041
|
)
|
||||
Equity
in net income of subsidiaries
|
32,897
|
29,207
|
36,666
|
|||||||
Net
income
|
$
|
26,889
|
$
|
24,063
|
$
|
30,625
|
Years
Ended December 31,
|
||||||||||
2006
|
2005
|
2004
|
||||||||
(in
thousands)
|
||||||||||
Cash
Flows From Operating Activities:
|
||||||||||
Net
income
|
$
|
26,889
|
$
|
24,063
|
$
|
30,625
|
||||
Adjustments
to net income:
|
||||||||||
Equity
in undistributed net income of subsidiaries
|
(32,897
|
)
|
(29,207
|
)
|
(36,666
|
)
|
||||
Provision
for loan losses
|
(4
|
)
|
(64
|
)
|
—
|
|||||
Other,
net
|
29
|
3,465
|
3,099
|
|||||||
(Increase)
decrease in other assets
|
(1,506
|
)
|
(335
|
)
|
2,127
|
|||||
(Decrease)
increase in liabilities
|
(445
|
)
|
524
|
3,440
|
||||||
Net
cash (used in) provided by operating activities
|
(7,934
|
)
|
(1,554
|
)
|
2,625
|
|||||
Cash
Flows From Investing Activities:
|
||||||||||
Capital
distribution received from Imperial Capital REIT
|
1,857
|
11,065
|
—
|
|||||||
Dividends
received from Imperial Capital Bank
|
8,500
|
3,000
|
28,000
|
|||||||
Dividends
received from Imperial Capital REIT
|
251
|
3,756
|
1,839
|
|||||||
Other,
net
|
906
|
1,376
|
316
|
|||||||
Net
cash provided by investing activities
|
11,514
|
19,197
|
30,155
|
|||||||
Cash
Flows From Financing Activities:
|
||||||||||
Proceeds
from exercise of employee stock options
|
3,692
|
4,650
|
4,159
|
|||||||
Cash
paid to acquire treasury stock
|
(11,374
|
)
|
(22,625
|
)
|
(30,346
|
)
|
||||
Cash
dividends paid
|
(2,371
|
)
|
—
|
—
|
||||||
Net
cash used in financing activities
|
(10,053
|
)
|
(17,975
|
)
|
(26,187
|
)
|
||||
Net
(decrease) increase in cash and cash equivalents
|
(6,473
|
)
|
(332
|
)
|
6,593
|
|||||
Cash
and cash equivalents at beginning of period
|
7,874
|
8,206
|
1,613
|
|||||||
Cash
and cash equivalents at end of period
|
$
|
1,401
|
$
|
7,874
|
$
|
8,206
|
Name
|
Age
|
Position
|
George
W. Haligowski
|
52
|
Chairman
of the Board, President and Chief Executive Officer of ITLA Capital
and
the Bank
|
Norval
L. Bruce
|
65
|
Vice
Chairman of the Board and Chief Credit Officer of ITLA Capital and
the
Bank
|
Timothy
M. Doyle
|
50
|
Executive
Managing Director and Chief Financial Officer of ITLA Capital and
the
Bank
|
Lyle
C. Lodwick
|
52
|
Executive
Managing Director and Chief Operating Officer of ITLA Capital and
the
Bank
|
Phillip
E. Lombardi
|
50
|
Senior
Managing Director and Chief of Lending Operations of ITLA Capital
and the
Bank
|
|
|
|
|
•
|
George
W. Haligowski, Chairman, President and Chief Executive
Officer
|
|
|
|
|
•
|
Norval
L. Bruce, Vice Chairman and Chief Credit Officer
|
|
|
|
|
•
|
Timothy
M. Doyle, Executive Managing Director and Chief Financial
Officer
|
|
|
|
|
•
|
Lyle
C. Lodwick, Executive Managing Director and Chief Operating
Officer
|
|
|
|
|
•
|
Phillip
E. Lombardi, Senior Managing Director and Chief of Lending
Operations
|
Event
|
Award
Vesting
|
Exercise
Term
|
Termination
by Us Other than Cause; Disability, Retirement or Death
|
Forfeit
Unvested
|
Earlier
of: (1) three (3) months or (2) Remaining Option Period
|
Disability,
Retirement or Death
|
Forfeit
Unvested
|
Earlier
of: (1) six (6) months or (2) Remaining Option Period Option
Period
|
Termination
for Cause
|
Forfeit
Vested and
Unvested
|
Expire
|
Other
Termination
|
Forfeit
Unvested
|
Earlier
of: (1) Remaining Option Period or (2) 30 Days from Date of
Termination
|
Change
in Control
|
Accelerated*
|
*
|
______________
*
In
the event of a change in control as defined in the ESIP, any outstanding
awards that are unexercisable or otherwise unvested will become fully
vested and immediately exercisable. If there is a termination of
employment, the applicable termination provisions regarding exercise
term
will apply.
|
|
||
Executive
Benefit
|
Description
|
|
Automobile
Plan
|
Certain
executives are provided with a Company-owned automobile or an automobile
allowance pursuant to our automobile policy.
|
|
Reimbursed
Life Insurance Premiums
|
We
reimburse certain executives for certain life insurance premium
payments.
|
|
Computer
Equipment and Internet Connection Service
|
We
provide certain executives with computer equipment and an internet
connection for use in their homes.
|
|
Club
Memberships
|
Certain
executives have their club membership dues
reimbursed.
|
Year
|
Salary
|
Bonus
(1)
|
Stock
Awards
|
Option
Awards
|
Non-Equity
Incentive Plan Compensation (2)
|
Change
in Pension Value and Non-qualified Deferred Compensation
Earnings
|
All
Other Compensation (3)
|
Total
Compensation
|
||||||||||||||||||||
George
W. Haligowski
|
2006
|
$
|
590,000
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
969,750
|
$
|
33,451
|
$
|
394,523
(4
|
)
|
$
|
1,987,724
|
||||||||||
Chairman
of the Board, President
|
||||||||||||||||||||||||||||
and
Chief Executive Officer
|
||||||||||||||||||||||||||||
Norval
L. Bruce
|
2006
|
$
|
248,200
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
124,100
|
$
|
23,718
|
$
|
82,832
(5
|
)
|
$
|
478,850
|
||||||||||
Vice
Chairman of the Board and
|
||||||||||||||||||||||||||||
Chief
Credit Officer
|
||||||||||||||||||||||||||||
Timothy
M. Doyle
|
2006
|
$
|
247,500
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
123,750
|
$
|
—
|
$
|
33,371
(6
|
)
|
$
|
404,621
|
||||||||||
Executive
Managing Director and Chief
|
||||||||||||||||||||||||||||
Financial
Officer
|
||||||||||||||||||||||||||||
Lyle
C. Lodwick
|
2006
|
$
|
235,000
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
117,498
|
$
|
—
|
$
|
23,700
(7
|
)
|
$
|
376,198
|
||||||||||
Executive
Managing Director and Chief
|
||||||||||||||||||||||||||||
Operating
Officer
|
||||||||||||||||||||||||||||
Phillip
E. Lombardi
|
2006
|
$
|
170,000
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
85,000
|
$
|
—
|
$
|
13,482
(8
|
)
|
$
|
268,482
|
||||||||||
Managing
Director and Chief of
|
||||||||||||||||||||||||||||
Lending
Operations
|
(1)
|
Bonus
amounts for 2006 are reported under the “Non-Equity Incentive Plan
Compensation” column.
|
(2)
|
Represents
cash incentive bonus award earned for 2006.
|
(3)
|
Included
within this column is the incremental cost to the Company associated
with
the named executive’s personal use of a Company-owned automobile, based on
the depreciation expense incurred by the Company for the
year.
|
(4)
|
For
2006, represents the aggregate incremental cost to us of perquisites
and
other personal benefits, and other compensation provided, totaling
$394,523, including: (a) $42,000 in supplemental housing payments,
(b)
$141,124 in preferential interest on employee savings accounts in
2006
(available to all employees), (c) $60,960 for Mr. Haligowski’s personal
use of chartered air transportation service paid for by the Company,
and
(d) $108,710 for club memberships and meeting attendance related
expenses.
Additional amounts included within “All Other Compensation” include life
insurance premiums, employer contributions to ITLA Capital’s 401(k) plan,
financial counseling and tax preparation fees, home computer
equipment and
internet service, and reimbursements for tax obligations incurred
by Mr.
Haligowski.
|
U
|
|
(5)
|
For
2006, represents the aggregate incremental cost to us of perquisites
and
other personal benefits, and other compensation provided, totaling
$82,832, including: (a) $45,802 in preferential interest on employee
savings accounts in 2006. Additional amounts included within “All Other
Compensation” include life insurance premiums, employer contributions to
ITLA Capital’s 401(k) plan, home computer equipment and internet service,
and club memberships.
|
(6)
|
For
2006, represents the aggregate incremental cost to us of perquisites
and
other personal benefits, and other compensation provided, totaling
$33,371, including: (a) $13,417 in preferential interest on employee
savings accounts in 2006. Additional amounts included within “All Other
Compensation” include life insurance premiums, employer contributions to
ITLA Capital’s 401(k) plan, and home computer equipment.
|
(7)
|
For
2006, represents the aggregate incremental cost to us of perquisites
and
other personal benefits, and other compensation provided, totaling
$23,700, including: (a) $13,327 in preferential interest on employee
savings accounts in 2006. Additional amounts included within “All Other
Compensation” include life insurance premiums, and employer contributions
to ITLA Capital’s 401(k) plan.
|
(8)
|
For
2006, represents the aggregate incremental cost to us of perquisites
and
other personal benefits, and other compensation provided, totaling
$13,482. Amounts included within “All Other Compensation” include life
insurance premiums, employer contributions to ITLA Capital’s 401(k) plan,
and preferential interest on employee savings accounts in 2006.
|
Name
|
Grant
Date
|
Estimated
Possible Payouts Under Non-Equity Incentive Plan Awards
Target
(1)
|
Estimated
Future Payouts Under Equity Incentive Plan Awards
Target
(1)
|
All
Other Stock Awards: Number of Shares of Stock or Units
Maximum
(#)
|
All
Other Option Awards: Number of Securities Underlying Options
(#)
|
Exercise
or Base Price of Option Awards ($/Sh)
|
Grant
Date Fair Value of Stock and Option Awards
|
|||||||||||||||||||||
George
W. Haligowski
|
n/a
|
$
|
885,000
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||||
Norval
L. Bruce
|
n/a
|
|
$
|
124,100
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||||
Timothy
M. Doyle
|
n/a
|
$
|
123,750
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||||
Lyle
C. Lodwick
|
n/a
|
$
|
117,500
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||||
Phillip
E. Lombardi
|
n/a
|
$
|
85,000
|
—
|
—
|
—
|
—
|
—
|
(1)
|
For
each executive officer represents target amount potentially payable
under
our Annual Executive Bonus Plan for 2006 (up to 150% of base salary
for
Mr. Haligowski and up to 50% of base salary for each of the other
named
executive officers) at the time the targets for these awards were
set by
the Committee and approved by the board in January 2006. The actual
amounts earned for 2006 under these awards are reflected in the Summary
Compensation Table under the “Non-Equity Incentive Plan Compensation”
column.
|
|
Option
Awards
|
Stock
Awards
|
||||||||||||||||||||||||||
Name
|
Number
of Securities Underlying Unexercised Options (#)
Exercisable
|
Number
of Securities Underlying Unexercised Options (#)
Unexercisable
|
Equity
Incentive Plan Awards: Number of Securities Underlying Unexercised
Unearned Options (#)
|
Option
Exercise Price
|
Option
Expiration Date
|
Number
of Shares or Units of Stock That Have Not Vested (#)
|
Market
Value of Shares or Units of Stock That Have Not Vested
|
Equity
Incentive Plan Awards: Number of Unearned Shares, Units or Other
Rights
That Have Not Vested (#)
|
Equity
Incentive Plan Awards: Market or Payout Value of Unearned Shares,
Units or
Other Rights That Have Not Vested
|
|||||||||||||||||||
George
W. Haligowski
|
45,000
|
—
|
—
|
$
|
18.00
|
2/2/2008
|
—
|
—
|
—
|
—
|
||||||||||||||||||
10,000
|
—
|
—
|
$
|
14.00
|
2/2/2009
|
—
|
—
|
—
|
—
|
|||||||||||||||||||
37,500
|
—
|
—
|
$
|
23.00
|
2/19/2012
|
—
|
—
|
—
|
—
|
|||||||||||||||||||
50,000
|
—
|
—
|
$
|
48.46
|
12/19/2015
|
—
|
—
|
—
|
—
|
|||||||||||||||||||
Total
|
142,500
|
|||||||||||||||||||||||||||
Norval
L. Bruce
|
10,500
|
—
|
—
|
$
|
23.00
|
2/19/2012
|
—
|
—
|
—
|
—
|
||||||||||||||||||
12,500
|
—
|
—
|
$
|
48.46
|
12/19/2015
|
—
|
—
|
—
|
—
|
|||||||||||||||||||
Total
|
23,000
|
|||||||||||||||||||||||||||
Timothy
M. Doyle
|
15,000
|
—
|
—
|
$
|
18.00
|
2/02/08
|
—
|
—
|
—
|
—
|
||||||||||||||||||
15,000
|
—
|
—
|
$
|
14.00
|
2/02/09
|
—
|
—
|
—
|
—
|
|||||||||||||||||||
5,000
|
—
|
—
|
$
|
11.00
|
1/31/2010
|
—
|
—
|
—
|
—
|
|||||||||||||||||||
15,000
|
—
|
—
|
$
|
23.00
|
2/19/2012
|
—
|
—
|
—
|
—
|
|||||||||||||||||||
25,000
|
—
|
—
|
$
|
48.46
|
12/19/2015
|
—
|
—
|
—
|
—
|
|||||||||||||||||||
Total
|
75,000
|
|||||||||||||||||||||||||||
Lyle
C. Lodwick
|
35,000
|
—
|
—
|
$
|
54.25
|
8/8/2015
|
—
|
—
|
—
|
—
|
||||||||||||||||||
12,500
|
—
|
—
|
$
|
48.46
|
12/19/2015
|
—
|
—
|
—
|
—
|
|||||||||||||||||||
Total
|
47,500
|
|||||||||||||||||||||||||||
Phillip
E. Lombardi
|
22,500
|
—
|
—
|
$
|
53.33
|
6/24/2015
|
—
|
—
|
—
|
—
|
||||||||||||||||||
7,500
|
—
|
—
|
$
|
48.46
|
12/19/2015
|
—
|
—
|
—
|
—
|
|||||||||||||||||||
Total
|
30,000
|
|||||||||||||||||||||||||||
Option
Awards
|
Stock
Awards
|
||||||||||||
Name
|
Number
of Shares Acquired on Exercise (#)
|
Value
Realized on Exercise
|
Number
of Shares Acquired on Vesting (#)
|
Value
Realized on Vesting
|
|||||||||
George
W. Haligowski
|
20,000
|
$
|
805,000
|
—
|
—
|
||||||||
Norval
L. Bruce
|
—
|
—
|
—
|
—
|
|||||||||
Timothy
M. Doyle
|
—
|
—
|
—
|
—
|
|||||||||
Lyle
C. Lodwick
|
—
|
—
|
—
|
—
|
|||||||||
Phillip
E. Lombardi
|
—
|
—
|
—
|
—
|
Name
|
Executive
Contributions in Last FY
|
Registrant
Contributions in Last FY
|
Aggregate
Earnings in Last FY (2)
|
Aggregate
Withdrawals/ Distributions
|
Aggregate
Balance at Last FYE
|
|||||||||||
George
W. Haligowski
|
$
|
—
|
$
|
—
|
$
|
436,273
|
$
|
—
|
$
|
4,386,090
|
||||||
Norval
L. Bruce
|
$
|
185,404(1
|
)
|
$
|
—
|
$
|
89,203
|
$
|
—
|
$
|
1,473,822
|
|||||
Timothy
M. Doyle
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||
Lyle
C. Lodwick
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||
Phillip
E. Lombardi
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
Name
|
Executive
Contributions in Last FY
|
Registrant
Contributions in Last FY
|
Aggregate
Earnings in Last FY (1)
|
Aggregate
Withdrawals/ Distributions
|
Aggregate
Balance at Last FYE
|
|||||||||||
George
W. Haligowski
|
$
|
—
|
$
|
—
|
$
|
1,546,185
|
$
|
—
|
$
|
9,460,178
|
||||||
Norval
L. Bruce
|
$
|
—
|
$
|
—
|
$
|
358,597
|
$
|
—
|
$
|
2,194,673
|
||||||
Timothy
M. Doyle
|
$
|
—
|
$
|
—
|
$
|
299,178
|
$
|
—
|
$
|
1,831,114
|
||||||
Lyle
C. Lodwick
|
$
|
—
|
$
|
—
|
$
|
30,893
|
$
|
—
|
$
|
189,655
|
||||||
Phillip
E. Lombardi
|
$
|
—
|
$
|
—
|
$
|
26,336
|
$
|
—
|
$
|
162,090
|
(1)
|
Includes
value of additional shares allocated pursuant to dividend reinvestment,
as
well as the change in fair value during the year related to SERP
shares
maintained within each participants’ respective trust account. None of
these amounts were reported as compensation for 2006 in the Summary
Compensation Table.
|
Termination
Scenario
|
Lump
Sum Prorated Bonus (1)
|
Salary/Bonus
Continuation and Non-Compete (2)
|
Health
Coverage Continuation (3)
|
Accelerated
Vesting of Stock and Option Awards (4)
|
Death
Benefit Under Supplemental Life Insurance Policy (5)
|
Other
Benefits (6)
|
Payment
of 299% of “Base Amount”(7)
|
Tax
Gross Up Payment (8)
|
|||||||||||||||||
If
termination for cause occurs
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
|||||||||
If
voluntary termination (not constituting “Involuntary Termination” under
Employment Agreement) occurs
|
$
|
—
|
$
|
5,590,000
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
|||||||||
If
“Involuntary Termination” under Employment Agreement (not in connection
with or within five years after change in control) occurs
|
$
|
975,000
|
$
|
12,270,000
|
$
|
62,000
|
$
|
—
|
$
|
—
|
$
|
1,098,000
|
$
|
—
|
$
|
—
|
|||||||||
If
“Involuntary Termination” under Employment Agreement in connection with or
after change in control occurs
|
$
|
—
|
$
|
9,090,000
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
9,905,701
|
$
|
—
|
|||||||||
If
termination occurs as a result of disability
|
$
|
975,000
|
$
|
12,270,000
|
$
|
62,000
|
$
|
—
|
$
|
—
|
$
|
858,000
|
$
|
—
|
$
|
—
|
|||||||||
If
termination occurs as a result of death
|
$
|
975,000
|
$
|
12,270,000
|
$
|
62,000
|
$
|
—
|
$
|
1,700,000
|
$
|
858,000
|
$
|
—
|
$
|
—
|
(1)
|
Payable
to Mr. Haligowski (or to his estate or designated beneficiary, in
the
event of death) under his employment agreement if his employment
is
“Involuntarily Terminated” not in connection with or after a change in
control or due to disability or death.
|
(2) |
Payable
to Mr. Haligowski under his employment agreement and non-competition
and
non-solicitation agreement and the Salary Continuation Plan for the
applicable period described under “Agreements with Mr.
Haligowski-Employment Agreement,”“-Non-Competition and Non-Solicitation
Agreement” and “-Salary Continuation Plan.” These payments are comprised
of the following: (i) in the case of voluntary termination not
constituting “Involuntary Termination” under Mr. Haligowski’s employment
agreement, the present value of the total payments that would be
made to
him under the Salary Continuation Plan, using a discount rate of
5%
($5,590,000); (ii) in the case of Involuntary Termination not in
connection with or after a change in control, or termination due
to
disability or death (A) the present value of the total payments that
would
be made to him (or his beneficiary, in the event of his death) under
the
Salary Continuation Plan, using a discount rate of 5% ($5,590,000)
and (B)
the aggregate amount of the total monthly salary and bonus continuation
payments (through December 29, 2010) under his employment agreement
($6,680,000, or $139,165 per month); and (iii) in the case of Involuntary
Termination in connection with or after a change in control, (A)
the
present value of the total payments that would be made to him under
the
Salary Continuation Plan, using a discount rate of 8% ($5,590,000)
and (B)
the total payments that would be made under his non-competition and
non-solicitation agreement ($3,500,000).
|
(3)
|
Represents
the cost of providing the medical, dental and disability benefits
described under “Agreements with Mr. Haligowski-Employment
Agreement.”
|
(4)
|
All
stock options and SERP allocations are
vested.
|
(5)
|
Represents
death benefit under supplemental life insurance policy maintained
for Mr.
Haligowski.
|
(6)
|
Represents
the cost or value of $240,000 for continued use of office space and
secretarial support, $103,000 for the transfer to Mr. Haligowski
of title
to his leased vehicle, and $755,000 representing the transfer to
Mr.
Haligowski of our interest in life insurance policies on his life.
The
cost of office space and secretarial support are excluded if termination
occurs as a result of disability or death as these benefits would
not be
provided under such circumstances.
|
(7)
|
Represents
lump sum amount payable to Mr. Haligowski under his employment agreement
in the event his employment is Involuntarily Terminated in connection
with
or following a change in control of the Company, as described under
“Agreements with Mr. Haligowski-Employment
Agreement.”
|
(8)
|
Based
on the amounts shown in the table, no tax gross up payment would
be
payable to Mr. Haligowski under his employment agreement. See “Agreements
with Mr. Haligowski - Employment
Agreement.”
|
Termination
Scenario
|
Payment
of 299% of “Base Amount”(1)
|
Health
Coverage and Life Insurance Continuation (2)
|
Accelerated
Vesting of Stock and Option Awards (3)
|
Other
Benefits (4)
|
|||||||||
If
“Termination Without Cause” under his Change of Control Agreement in
connection with or within 36 months after change in control
occurs
|
$
|
1,000,000
|
$
|
25,504
|
$
|
—
|
$
|
84,445
|
(1)
|
Represents
lump sum amount payable to Mr. Bruce under his change of control
agreement
in the event his employment is terminated in connection with or following
a change in control of the Company, as described under “Change of Control
Agreements.”
|
(2)
|
Represents
the cost of providing the health, dental and life insurance benefits
described under “Change of Control
Agreements.”
|
(3)
|
All
stock options and SERP allocations are
vested.
|
(4)
|
Represents
the cost or value of $62,925 for the transfer to Mr. Bruce of title
to his
leased vehicle, $3,520 for the transfer to Mr. Bruce of home-based
computer equipment and $18,000 for the transfer to Mr. Bruce of our
interest in a golf club
membership.
|
Termination
Scenario
|
Payment
of 299% of “Base Amount”(1)
|
Health
Coverage and Life Insurance Continuation (2)
|
Accelerated
Vesting of Stock and Option Awards (3)
|
Death
Benefit under Supplemental Life Insurance Policy (4)
|
Other
Benefits (5)
|
|||||||||||
If
“Termination Without Cause” under his Change of Control Agreement in
connection with or within 36 months after change in control
occurs
|
$
|
1,250,000
|
$
|
45,813
|
$
|
—
|
$
|
—
|
$
|
69,593
|
||||||
If
termination occurs as a result of death
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
250,000
|
$
|
—
|
(1)
|
Represents
lump sum amount payable to Mr. Doyle under his change of control
agreement
in the event his employment is terminated in connection with or following
a change in control of the Company, as described under “Change of Control
Agreements.”
|
(2)
|
Represents
the cost of providing the health, dental and life insurance benefits
described under “Change of Control
Agreements.”
|
(3)
|
All
stock options and SERP allocations are
vested.
|
(4)
|
Represents
death benefit payable under supplemental life insurance policy maintained
by the Company for Mr. Doyle’s
benefit.
|
(5)
|
Represents
the cost or value of $66,203 for the transfer to Mr. Doyle of title
to his
leased vehicle and $3,390 for the transfer to Mr. Doyle of home-based
computer equipment.
|
Termination
Scenario
|
Lump
Sum Payment (1)
|
Health
Coverage and Life Insurance Continuation (2)
|
Accelerated
Vesting of Stock and Option Awards (3)
|
Other
Benefits (4)
|
|||||||||
If
“Involuntary Termination” under Change in Control Severance Agreement in
connection with or within 24 months after change in control
occurs
|
$
|
412,488
|
$
|
16,785
|
$
|
—
|
$
|
49,375
|
(1)
|
Represents
lump sum amount payable to Mr. Lodwick under his change of control
agreement in the event his employment is “Involuntarily Terminated” in
connection with or following a change in control of the Company,
as
described under “Change of Control
Agreements.”
|
(2)
|
Represents
the cost of providing the health, dental and life insurance benefits
described under “Change of Control
Agreements.”
|
(3)
|
All
stock options and SERP allocations are
vested.
|
(4)
|
Represents
the cost or value of $49,375 for the transfer to Mr. Lodwick of title
to
his leased vehicle.
|
Termination
Scenario
|
Lump
Sum Payment (1)
|
Health
Coverage and Life Insurance Continuation (2)
|
Accelerated
Vesting of Stock and Option Awards (3)
|
Other
Benefits (4)
|
|||||||||
If
“Involuntary Termination” under Change in Control Severance Agreement in
connection with or within 24 months after change in control
occurs
|
$
|
335,805
|
$
|
9,658
|
$
|
—
|
$
|
33,940
|
(1)
|
Represents
lump sum amount payable to Mr. Lombardi under his change of control
agreement in the event his employment is “Involuntarily Terminated” in
connection with or following a change in control of the Company,
as
described under “Change of Control
Agreements.”
|
(2)
|
Represents
the cost of providing the health, dental and life insurance benefits
described under “Change of Control
Agreements.”
|
(3)
|
All
stock options and SERP allocations are
vested.
|
(4)
|
Represents
the cost or value of $33,940 for the transfer to Mr. Lombardi of
title to
his leased vehicle.
|
Name
|
Fees
Earned or Paid in Cash
|
Stock
Awards
|
Option
Awards (1)
|
Non-Equity
Incentive Plan Compensation
|
Change
in Pension Value and Non-qualified Deferred Compensation
Earnings
|
All
Other Compensation (2)
|
Total
|
|||||||||||||||
Jeffrey
L. Lipscomb
|
$
|
45,000
|
—
|
—
|
—
|
—
|
$
|
5,000
|
$
|
50,000
|
||||||||||||
Preston
Martin
|
$
|
42,000
|
—
|
$
|
2,492
|
—
|
—
|
$
|
15,000
|
$
|
59,492
|
|||||||||||
Sandor
X. Mayuga
|
$
|
40,000
|
—
|
—
|
—
|
—
|
$
|
—
|
$
|
40,000
|
||||||||||||
Hirotaka
Oribe
|
$
|
46,000
|
—
|
—
|
—
|
—
|
$
|
15,000
|
$
|
61,000
|
||||||||||||
Robert
R. Reed
|
$
|
45,000
|
—
|
—
|
—
|
—
|
$
|
5,000
|
$
|
50,000
|
(1)
|
|
Amount
in the table represent the compensation cost of stock options recognized
for 2006 for financial statement reporting purposes pursuant to SFAS
No.
123(R), and includes the cost attributable to grants made in 2006
and in
prior years. The assumptions we used in calculating this amount are
set
forth in Item 8. Financial Statements and Supplementary Data--Condensed
Consolidated Financial Statements—Notes to Financial Statements—Note
1—Summary of Significant Accounting Policies—Stock-Based
Compensation. As of December 31, 2006, total shares underlying stock
options held by the directors were as follows: Mr. Lipscomb - 6,500
shares; Mr. Martin - 10,000 shares; Mr. Mayuga - 6,500 shares; Mr.
Oribe -
6,500 shares; and Mr. Reed - 6,500 shares. On
October 30, 2006, Mr. Martin was granted an option for 1,000 shares
at an
exercise price of $57.48 as an automatic anniversary award pursuant
to the
Director Stock Option Plan (see “—Stock Incentive Plans”). This grant date
fair value of this award to Mr. Martin, computed in accordance with
SFAS
No. 123(R), was approximately $15,000.
|
(2)
|
Amounts
in this column represent honorariums paid during 2006 to Mr. Lipscomb,
Mr.
Oribe, and Mr. Reed, as well as an annual retainer fee for Mr. Martin,
as
explained below.
|
Beneficial
Owner
|
Shares
Beneficially Owned
|
Percent
of Class
|
|||||
Dimensional
Fund Advisors, LP
|
478,886
(1
|
)
|
8.66
|
%
|
|||
1299
Ocean Avenue, 11th Floor
Santa
Monica, CA 90401
Franklin
Mutual Advisers, LLC
|
445,796
(2
|
)
|
8.06
|
%
|
|||
51
John F. Kennedy Parkway
Short
Hills, NJ 07078
Thomson
Horstmann & Bryant, Inc.
|
407,009
(3
|
)
|
7.36
|
%
|
|||
Park
80 West, Plaza One
Saddle
Brook, NJ 07663
Barclays
Global Advisors, NA, et. al
|
400,532
(4
|
)
|
7.25
|
%
|
|||
45
Fremont Street
San
Francisco, CA 94105
Wellington
Management Company, LLP
|
374,430
(5
|
)
|
6.77
|
%
|
|||
75
State Street
Boston,
MA 02109
George
W. Haligowski
|
335,454
(6
|
)
|
5.92
|
%
|
|||
888
Prospect Street, Suite 110
La
Jolla, CA 92037
|
Beneficial
Owner
|
Shares
Beneficially
Owned
(1)(2)(3)
|
Percent
of
Class
|
|||||
George
W. Haligowski
|
335,454
|
5.92
|
%
|
||||
Timothy
M. Doyle
|
106,701
|
1.90
|
|||||
Norval
L. Bruce
|
61,195
|
1.10
|
|||||
Lyle
C. Lodwick
|
50,782
|
0.91
|
|||||
Phillip
E. Lombardi
|
32,805
|
0.59
|
|||||
Sandor
X. Mayuga
|
12,300
|
0.22
|
|||||
Preston
Martin
|
11,166
|
0.20
|
|||||
Robert
R. Reed
|
7,800
|
0.14
|
|||||
Jeffrey
L. Lipscomb
|
7,100
|
0.13
|
|||||
Hirotaka
Oribe
|
6,700
|
0.12
|
|||||
All
Directors and Executive Officers as a Group (10 Persons)
|
632,003
|
10.75
|
(1) |
Includes
shares held directly, as well as shares held in retirement accounts
or by
certain members of the named individual's families or corporations
for
which an individual is an officer or director or held by trust of
which an
individual is trustee or a substantial beneficiary, over which shares
the
individual may be deemed to have sole or shared voting and/or dispositive
power.
|
(2) |
Includes
shares underlying exercisable options and options exercisable within
60
days of March 5, 2007 as follows: Chairman Haligowski - 142,500 shares;
Director Lipscomb - 6,500 shares; Director Mayuga - 6,500 shares;
Director
Oribe - 6,500 shares; Director Reed - 6,500 shares; Director Martin
-
9,000 shares; Vice Chairman Bruce - 23,000 shares; Timothy M. Doyle
-
75,000 shares; Lyle C. Lodwick - 47,500 shares; Phillip E. Lombardi
-
30,000 shares; and all directors and executive officers as a group
-
353,000 shares.
|
(3) |
Includes
vested SERP account shares held in the rabbi trust established by
the
Company, as follows: Chairman Haligowski -163,782 shares; Vice Chairman
Bruce - 37,995 shares; Timothy M. Doyle - 31,701 shares; Lyle C.
Lodwick -
3,282 shares; Phillip E. Lombardi - 2,805 shares and all directors
and
executive officers as a group - 239,565. Also includes 29,172 shares
held
for Mr. Haligowski in his deferred compensation plan account in the
rabbi
trust.
|
Plan
Category
|
Number
of Shares to
be
issued upon
Exercise
of
Outstanding
Options,
Warrants
and
Rights
|
Weighted
Average
Exercise
Price of
Outstanding
Options,
Warrants
And
Rights
|
Number
of Shares
Remaining
Available
for
Future Issuance
Under
Equity
Compensation
Plans
(Excluding
Shares
Reflected
in the
First
Column) (1)
|
|||||||
Equity
compensation plans approved by stockholders
|
545,984
|
$
|
35.73
|
264,344
|
||||||
Equity
compensation plans not approved by stockholders
|
N/A
|
N/A
|
N/A
|
|||||||
Total
|
545,984
|
$
|
35.73
|
264,344
|
(1) |
This
amount includes 125,000 shares issuable under our 1996 Voluntary
Retainer
Stock and Deferred Compensation Plan for Outside Directors, described
under “Item 11. Executive Compensation — Directors Compensation.” Under
the Company’s 2005 Re-Designated, Amended and Restated Employee Stock
Incentive Plan, up to 65,422 of the 130,844 shares remaining available
for
issuance under that plan as of December 31, 2006 could be issued
to plan
participants pursuant to awards of restricted stock, restricted stock
units, performance shares and/or performance
units.
|
(a)
|
Audit
Fees: Aggregate fees billed for professional services rendered for
the
audits of the Company’s annual financial statements and internal controls
over financial reporting, and reviews of financial statements included
in
the Company’s Quarterly Reports on Form 10-Q for those fiscal years:
$332,000 - 2006; $306,000 - 2005.
|
(b)
|
Audit
Related Fees: Aggregate fees billed for professional services rendered
related to audits of employee benefit plans, consultation related
to the
implementation of the Sarbanes-Oxley Act, and consultation on accounting
matters: $20,000 - 2006; $34,000 -
2005.
|
(c) |
Tax
Fees: Aggregate fees billed for professional services rendered related
to
tax compliance, tax advice and tax return preparation: $95,000- 2006;
$165,000 - 2005.
|
(d)
|
All
other fees: Aggregate fees billed for professional services rendered
in
connection with the review and consultation on various issues relating
to
employment and other benefit related contracts: $22,000 - 2006; None
-
2005.
|
|
Page
|
43
|
|
44
|
|
46
|
|
47
|
|
48
|
|
49
|
|
50
|
Date:
March 16, 2007
|
By:
|
/s/
George W. Haligowski
|
George
W. Haligowski
|
||
Chairman
of the Board, President
|
||
and
Chief Executive Officer
|
||
(Duly
Authorized
Representative)
|
Signature
|
Title
|
Date
|
/s/
George W. Haligowski
|
Chairman
of the Board, President and
|
March
16, 2007
|
George
W. Haligowski
|
Chief
Executive Officer
|
|
(Principal
Executive Officer)
|
||
/s/
Timothy M. Doyle
|
Executive
Managing Director and
|
March
16, 2007
|
Timothy
M. Doyle
|
Chief
Financial Officer
|
|
(Principal
Financial and Accounting Officer)
|
||
/s/
Norval L. Bruce
|
Director
|
March
16, 2007
|
Norval
L. Bruce
|
||
/s/
Jeffrey L. Lipscomb
|
Director
|
March
16, 2007
|
Jeffrey
L. Lipscomb
|
||
/s/
Sandor X. Mayuga
|
Director
|
March
16, 2007
|
Sandor
X. Mayuga
|
||
/s/
Robert R. Reed
|
Director
|
March
16, 2007
|
Robert
R. Reed
|
||
/s/
Hirotaka Oribe
|
Director
|
March
16, 2007
|
Hirotaka
Oribe
|
||
/s/
Preston Martin
|
Director
|
March
16, 2007
|
Preston
Martin
|
Regulation
S-K Exhibit Number
|
Document
|
Reference
to Prior Filling or Exhibit Number Attached
Hereto
|
||
3.1
|
Certificate
of Incorporation
|
**
|
||
3.2
|
Bylaws,
as amended
|
***
|
||
4
|
Instruments
Defining the Rights of Security Holders, Including
Indentures
|
**********
|
||
10.1
|
2005
Re-Designated, Amended and Restated Stock Option Plan For Nonemployee
Directors (“NEDP”)
|
*****
|
||
10.2
|
2005
Re-Designated, Amended and Restated Employee Stock Incentive Plan
(“ESIP”)
|
********
|
||
10.3a
|
Nonqualified
(Non-Employer Securities) Deferred Compensation Plan
|
********
|
||
10.3b
|
Nonqualified
(Employer Securities Only) Deferred Compensation Plan
|
********
|
||
10.4
|
Supplemental
Salary Savings Plan
|
*
|
||
10.5a
|
Amended
and Restated Employment Agreement with George W.
Haligowski
|
********
|
||
10.5b
|
Non-Competition
and Non-Solicitation Agreement with George W. Haligowski
|
********
|
||
10.6
10.7
10.8
10.9
|
Change
in Control Severance Agreement with Norval L. Bruce
Change
in Control Severance Agreement with Timothy M. Doyle
Change
in Control Severance Agreement with Lyle C. Lodwick
Change
in Control Severance Agreement with Phillip E. Lombardi
|
********
********
********
10.9
|
||
10.10
|
Recognition
and Retention Plan
|
**
|
||
10.11
|
Voluntary
Retainer Stock and Deferred Compensation Plan for Outside
Directors
|
****
|
||
10.12
|
Amended
and Restated Supplemental Executive Retirement Plan
|
********
|
||
10.13
|
Amended
and Restated ITLA Capital Corporation Rabbi Trust
Agreement
|
*********
|
||
10.14
|
Amended
and Restated Salary Continuation Plan
|
********
|
||
10.15
|
Form
of Incentive Stock Option Agreement under ESIP
|
******
|
||
10.16
10.17
|
Form
of Non-Qualified Stock Option Agreement under the ESIP
Form
of Non-Qualified Stock Option Agreement under the NEDP
|
******
*******
|
||
10.18
|
Description
of Named Executive Officer Salary, Bonus and Perquisite Arrangements
for 2007
|
10.18
|
||
10.19
|
Description
of Director Fee Arrangements
|
10.19
|
||
11
|
Statement
Regarding Computation of Per Share Earnings
|
Not
Required
|
||
13
|
Annual
Report to Security Holders
|
None
|
||
18
|
Letter
Regarding Change in Accounting Principles
|
None
|
||
21
|
Subsidiaries
of the Registrant
|
21
|
||
22
|
Published
Report Regarding Matters Submitted to Vote of Security
Holders
|
None
|
||
23.1
|
Consent
of Ernst & Young LLP
|
23.1
|
||
24
|
Power
of Attorney
|
None
|
||
31.1
|
Rule
13a-14(a)/15d-14(a) Certification of Chief Executive
Officer
|
31.1
|
||
31.2
|
Rule
13a-14(a)/15d-14(a) Certification of Chief Financial
Officer
|
31.2
|
||
32
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Section
1350 Certifications of Chief Executive Officer and Chief Financial
Officer
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32
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*
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Filed
as an exhibit to Imperial’s Registration Statement on Form S-1 (File No.
33-96518) filed with the Commission on September 1, 1995, pursuant
to
Section 5 of the Securities Act of 1933.
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*
*
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Filed
as an exhibit to the Company’s Registration Statement on Form S-4 (File
No. 333-03551) filed with the Commission on May 10, 1996, pursuant
to
Section 5 of the Securities Act of 1933.
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*
*
*
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Filed
as an exhibit to the Company’s Form 10-Q for the quarter ended June 30,
2000 (File No. 0-26960).
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*
*
* *
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Filed
as an exhibit to Amendment No. Two to the Company’s Registration Statement
on Form S-4 (File No. 333-03551) filed with the Commission on June
19,
1996.
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*
*
* * *
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Filed
as an appendix to the Company’s definitive proxy materials filed on June
27, 2005.
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*
*
* * * *
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Filed
as an exhibit to the Company’s Current Report on Form 8-K filed on August
9, 2005.
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*
*
* * * * *
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Filed
as an exhibit to the Company’s Current Report on Form 8-K filed on
November 4, 2005.
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*
*
* * * * * *
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Filed
as an exhibit to the Company’s Current Report on Form 8-K filed on
February 24, 2006.
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*
*
* * * * * * *
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Filed
as an exhibit to the Company’s Form 10-Q for the quarter ended June 30,
2006.
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*
*
* * * * * * * *
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The
Company hereby agrees to furnish the SEC, upon request, copies
of the
instruments defining the rights of the holders of each issue of
the
Company's long-term debt.
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