x
|
Quarterly
Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of
1934
|
For
the quarterly period ended September 30,
2010
|
¨
|
Transition
Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of
1934
|
For
the transition period from to
|
Maryland
|
27-0950358
|
|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification
No.)
|
100 Liberty Street, Warren,
Pennsylvania
|
16365
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
PAGE
|
|||
PART I FINANCIAL INFORMATION |
|
||
Item
1.
|
Financial
Statements (unaudited)
|
||
Consolidated
Statements of Financial Condition as of September 30, 2010 and December
31, 2009
|
1
|
||
Consolidated
Statements of Income for the three months ended and nine months ended
September 30, 2010 and 2009
|
2
|
||
Consolidated
Statements of Changes in Shareholders’ Equity for the three months ended
September 30, 2010 and 2009
|
3
|
||
Consolidated
Statements of Changes in Shareholders’ Equity for the nine months ended
September 30, 2010 and 2009
|
4
|
||
Consolidated
Statements of Cash Flows for the nine months ended September 30, 2010 and
2009
|
5
|
||
Notes
to Consolidated Financial Statements - Unaudited
|
7
|
||
Item
2.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
30
|
|
Item
3.
|
Quantitative
and Qualitative Disclosures about Market Risk
|
49
|
|
Item
4.
|
Controls
and Procedures
|
50
|
|
PART II OTHER INFORMATION | |||
Item
1.
|
Legal
Proceedings
|
50
|
|
Item
1A.
|
Risk
Factors
|
51
|
|
Item
2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
51
|
|
Item
3.
|
Defaults
Upon Senior Securities
|
51
|
|
Item
4.
|
Removed
and Reserved
|
51
|
|
Item
5.
|
Other
Information
|
51
|
|
Item
6.
|
Exhibits
|
51
|
|
Signature
|
52
|
||
Certifications
|
(Unaudited)
|
||||||||
September 30,
|
December 31,
|
|||||||
|
2010
|
2009
|
||||||
Assets
|
||||||||
Cash
and due from banks
|
$ | 113,477 | 69,265 | |||||
Interest-earning
deposits in other financial institutions
|
561,634 | 1,037,893 | ||||||
Federal
funds sold and other short-term investments
|
632 | 632 | ||||||
Marketable
securities available-for-sale (amortized cost of $862,747 and
$1,059,177)
|
884,158 | 1,067,089 | ||||||
Marketable
securities held-to-maturity (fair value of $409,784 and
$0)
|
399,324 | - | ||||||
Total
cash and investments
|
1,959,225 | 2,174,879 | ||||||
Loans
held for sale
|
18,020 | 1,164 | ||||||
Mortgage
loans - one- to four- family
|
2,451,848 | 2,334,538 | ||||||
Home
equity loans
|
1,102,252 | 1,067,584 | ||||||
Consumer
loans
|
263,717 | 286,292 | ||||||
Commercial
real estate loans
|
1,356,051 | 1,238,217 | ||||||
Commercial
business loans
|
400,574 | 371,670 | ||||||
Total
loans
|
5,592,462 | 5,299,465 | ||||||
Allowance
for loan losses
|
(77,245 | ) | (70,403 | ) | ||||
Total
loans, net
|
5,515,217 | 5,229,062 | ||||||
Federal
Home Loan Bank stock, at cost
|
63,242 | 63,242 | ||||||
Accrued
interest receivable
|
27,590 | 25,780 | ||||||
Real
estate owned, net
|
22,998 | 20,257 | ||||||
Premises
and equipment, net
|
126,999 | 124,316 | ||||||
Bank
owned life insurance
|
131,009 | 128,270 | ||||||
Goodwill
|
171,682 | 171,363 | ||||||
Other
intangible assets
|
4,419 | 4,678 | ||||||
Other
assets
|
120,404 | 83,451 | ||||||
Total
assets
|
$ | 8,142,785 | 8,025,298 | |||||
Liabilities
and Shareholders' equity
|
||||||||
Liabilities:
|
||||||||
Noninterest-bearing
demand deposits
|
$ | 555,491 | 487,036 | |||||
Interest-bearing
demand deposits
|
783,749 | 768,110 | ||||||
Savings
deposits
|
1,977,249 | 1,744,537 | ||||||
Time
deposits
|
2,452,451 | 2,624,741 | ||||||
Total
deposits
|
5,768,940 | 5,624,424 | ||||||
Borrowed
funds
|
876,068 | 897,326 | ||||||
Junior
subordinated deferrable interest debentures held by trusts that
issued
|
||||||||
guaranteed
capital debt securities
|
103,094 | 103,094 | ||||||
Advances
by borrowers for taxes and insurance
|
12,698 | 22,034 | ||||||
Accrued
interest payable
|
1,725 | 4,493 | ||||||
Other
liabilities
|
65,038 | 57,412 | ||||||
Total
liabilities
|
6,827,563 | 6,708,783 | ||||||
Shareholders'
equity:
|
||||||||
Preferred
stock, $0.01 par value: 50,000,000 authorized, no shares
issued
|
- | - | ||||||
Common
stock, $0.01 par value: 500,000,000 shares authorized, 110,806,418
and
|
||||||||
110,641,858
shares issued, respectively
|
1,108 | 1,106 | ||||||
Paid-in
capital
|
829,929 | 828,195 | ||||||
Retained
earnings
|
520,419 | 508,842 | ||||||
Unallocated
common stock of employee stock ownership plan
|
(28,851 | ) | (11,651 | ) | ||||
Accumulated
other comprehensive loss
|
(7,383 | ) | (9,977 | ) | ||||
1,315,222 | 1,316,515 | |||||||
Total
liabilities and shareholders' equity
|
$ | 8,142,785 | 8,025,298 |
Three months ended
|
Nine months ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Interest
income:
|
||||||||||||||||
Loans
receivable
|
$ | 83,372 | 79,637 | 245,852 | 240,400 | |||||||||||
Mortgage-backed
securities
|
6,534 | 6,580 | 19,385 | 20,858 | ||||||||||||
Taxable
investment securities
|
489 | 1,242 | 2,086 | 4,138 | ||||||||||||
Tax-free
investment securities
|
3,090 | 2,716 | 8,627 | 8,376 | ||||||||||||
Interest-earning
deposits
|
524 | 253 | 1,601 | 415 | ||||||||||||
Total
interest income
|
94,009 | 90,428 | 277,551 | 274,187 | ||||||||||||
Interest
expense:
|
||||||||||||||||
Deposits
|
17,772 | 23,472 | 58,149 | 72,555 | ||||||||||||
Borrowed
funds
|
9,587 | 10,114 | 28,991 | 30,418 | ||||||||||||
Total
interest expense
|
27,359 | 33,586 | 87,140 | 102,973 | ||||||||||||
Net
interest income
|
66,650 | 56,842 | 190,411 | 171,214 | ||||||||||||
Provision
for loan losses
|
9,871 | 9,830 | 26,568 | 27,347 | ||||||||||||
Net
interest income after provision for loan losses
|
56,779 | 47,012 | 163,843 | 143,867 | ||||||||||||
Noninterest
income:
|
||||||||||||||||
Impairment
losses on securities
|
(1,830 | ) | (3,727 | ) | (1,994 | ) | (12,417 | ) | ||||||||
Noncredit
related losses on securities not expected to be sold (recognized in other
comprehensive income)
|
1,438 | 2,836 | 1,287 | 7,236 | ||||||||||||
Net
impairment losses
|
(392 | ) | (891 | ) | (707 | ) | (5,181 | ) | ||||||||
Gain
on sale of investments, net
|
17 | 97 | 2,194 | 377 | ||||||||||||
Service
charges and fees
|
9,821 | 8,883 | 28,625 | 24,867 | ||||||||||||
Trust
and other financial services income
|
1,600 | 1,496 | 5,345 | 4,349 | ||||||||||||
Insurance
commission income
|
1,393 | 731 | 3,828 | 2,039 | ||||||||||||
Loss
on real estate owned, net
|
(2,014 | ) | (62 | ) | (2,293 | ) | (3,934 | ) | ||||||||
Income
from bank owned life insurance
|
1,212 | 1,208 | 3,852 | 3,596 | ||||||||||||
Mortgage
banking income
|
752 | 1,328 | 773 | 6,442 | ||||||||||||
Other
operating income
|
1,439 | 1,195 | 3,613 | 2,886 | ||||||||||||
Total
noninterest income
|
13,828 | 13,985 | 45,230 | 35,441 | ||||||||||||
Noninterest
expense:
|
||||||||||||||||
Compensation
and employee benefits
|
24,565 | 23,292 | 75,381 | 69,957 | ||||||||||||
Premises
and occupancy costs
|
5,648 | 5,319 | 16,990 | 16,521 | ||||||||||||
Office
operations
|
4,460 | 3,270 | 10,631 | 9,575 | ||||||||||||
Processing
expenses
|
5,863 | 5,221 | 17,111 | 15,483 | ||||||||||||
Marketing
expenses
|
2,208 | 2,102 | 6,945 | 5,046 | ||||||||||||
Federal
deposit insurance premiums
|
2,424 | 2,381 | 6,720 | 6,161 | ||||||||||||
FDIC
special assessment
|
- | - | - | 3,288 | ||||||||||||
Professional
services
|
1,126 | 668 | 2,437 | 1,899 | ||||||||||||
Amortization
of other intangible assets
|
725 | 701 | 2,266 | 2,371 | ||||||||||||
Real
estate owned expense
|
654 | 838 | 2,265 | 1,770 | ||||||||||||
Other
expenses
|
1,375 | 1,195 | 5,063 | 4,186 | ||||||||||||
Total
noninterest expense
|
49,048 | 44,987 | 145,809 | 136,257 | ||||||||||||
Income
before income taxes
|
21,559 | 16,010 | 63,264 | 43,051 | ||||||||||||
Federal
and state income taxes
|
6,068 | 3,956 | 18,479 | 11,404 | ||||||||||||
Net
income
|
$ | 15,491 | 12,054 | 44,785 | 31,647 | |||||||||||
Basic
earnings per share
|
$ | 0.14 | 0.11 | 0.41 | 0.29 | |||||||||||
Diluted
earnings per share
|
$ | 0.14 | 0.11 | 0.41 | 0.29 |
Accumulated
|
||||||||||||||||||||||||||||
Three
months ended September 30, 2009
|
Other
|
Total
|
||||||||||||||||||||||||||
Common
Stock
|
Paid-in
|
Retained
|
Comprehensive
|
Treasury
|
Shareholders'
|
|||||||||||||||||||||||
Shares
|
Amount
|
Capital
|
Earnings
|
Income/
(loss)
|
Stock
|
Equity
|
||||||||||||||||||||||
Beginning
balance at June 30, 2009
|
109,067,161 | $ | 5,126 | 219,335 | 503,692 | (26,195 | ) | (69,423 | ) | 632,535 | ||||||||||||||||||
Comprehensive
income:
|
||||||||||||||||||||||||||||
Net
income
|
- | - | - | 12,054 | - | - | 12,054 | |||||||||||||||||||||
Change
in fair value of interest rate swaps, net of tax of $755
|
- | - | - | - | (1,401 | ) | - | (1,401 | ) | |||||||||||||||||||
Change
in unrealized loss on securities, net of tax of $(8,094)
|
- | - | - | - | 15,032 | - | 15,032 | |||||||||||||||||||||
Other-than-temporary
impairment on securities recorded in other comprehensive income, net of
tax of $993
|
- | - | - | - | (1,843 | ) | - | (1,843 | ) | |||||||||||||||||||
Total
comprehensive income
|
- | - | - | 12,054 | 11,788 | - | 23,842 | |||||||||||||||||||||
Exercise
of stock options
|
110,804 | 1 | 47 | - | - | - | 48 | |||||||||||||||||||||
Stock
compensation expense
|
- | - | 449 | - | - | - | 449 | |||||||||||||||||||||
Dividends
paid ($0.10 per share)
|
- | - | - | (3,954 | ) | - | - | (3,954 | ) | |||||||||||||||||||
Ending
balance at September 30, 2009
|
109,177,965 | $ | 5,127 | 219,831 | 511,792 | (14,407 | ) | (69,423 | ) | 652,920 |
Accumulated
|
||||||||||||||||||||||||||||
Three months ended September 30, 2010
|
Other
|
Unallocated
|
Total
|
|||||||||||||||||||||||||
Common Stock
|
Paid-in
|
Retained
|
Comprehensive
|
common stock
|
Shareholders'
|
|||||||||||||||||||||||
Shares
|
Amount
|
Capital
|
Earnings
|
Income/
(loss)
|
of
ESOP
|
Equity
|
||||||||||||||||||||||
Beginning
balance at June 30, 2010
|
110,775,014 | $ | 1,108 | 829,686 | 516,005 | (7,225 | ) | (28,851 | ) | 1,310,723 | ||||||||||||||||||
Comprehensive
income:
|
||||||||||||||||||||||||||||
Net
income
|
- | - | - | 15,491 | - | - | 15,491 | |||||||||||||||||||||
Change
in fair value of interest rate swaps, net of tax of $993
|
- | - | - | - | (1,845 | ) | - | (1,845 | ) | |||||||||||||||||||
Change
in unrealized loss on securities, net of tax of $(1,412)
|
- | - | - | - | 2,622 | - | 2,622 | |||||||||||||||||||||
Other-than-temporary
impairment on securities recorded in other comprehensive income, net of
tax of $503
|
- | - | - | - | (935 | ) | - | (935 | ) | |||||||||||||||||||
Total
comprehensive income
|
- | - | - | 15,491 | (158 | ) | - | 15,333 | ||||||||||||||||||||
Exercise
of stock options
|
31,404 | - | 228 | - | - | - | 228 | |||||||||||||||||||||
Stock
compensation expense
|
- | - | 15 | - | - | - | 15 | |||||||||||||||||||||
Dividends
paid ($0.10 per share)
|
- | - | - | (11,077 | ) | - | - | (11,077 | ) | |||||||||||||||||||
Ending
balance at September 30, 2010
|
110,806,418 | $ | 1,108 | 829,929 | 520,419 | (7,383 | ) | (28,851 | ) | 1,315,222 |
Accumulated
|
||||||||||||||||||||||||||||
Nine
months ended September 30, 2009
|
Other
|
Total
|
||||||||||||||||||||||||||
Common
Stock
|
Paid-in
|
Retained
|
Comprehensive
|
Treasury
|
Shareholders'
|
|||||||||||||||||||||||
Shares
|
Amount
|
Capital
|
Earnings
|
Income/
(loss)
|
Stock
|
Equity
|
||||||||||||||||||||||
Beginning
balance at December 31, 2008
|
109,052,887 | $ | 5,124 | 218,332 | 490,326 | (30,575 | ) | (69,423 | ) | 613,784 | ||||||||||||||||||
Cumulative
effect of change in accounting principle - adoption of FSP SFAS 115-2 and
SFAS 124-2, net of tax of $903
|
- | - | - | 1,676 | (1,676 | ) | - | - | ||||||||||||||||||||
Comprehensive
income:
|
||||||||||||||||||||||||||||
Net
income
|
- | - | - | 31,647 | - | - | 31,647 | |||||||||||||||||||||
Change
in fair value of interest rate swaps, net of tax of
$(1,962)
|
- | - | - | - | 3,644 | - | 3,644 | |||||||||||||||||||||
Change
in unrealized loss on securities, net of tax of $(10,179)
|
- | - | - | - | 18,903 | - | 18,903 | |||||||||||||||||||||
Other-than-temporary
impairment on securities recorded in other comprehensive income, net of
tax of $2,533
|
- | - | - | - | (4,703 | ) | - | (4,703 | ) | |||||||||||||||||||
Total
comprehensive income
|
- | - | - | 31,647 | 17,844 | - | 49,491 | |||||||||||||||||||||
Exercise
of stock options
|
33,104 | 3 | 161 | - | - | - | 164 | |||||||||||||||||||||
Stock-based
compensation expense
|
- | - | 1,338 | - | - | - | 1,338 | |||||||||||||||||||||
Dividends
paid ($0.30 per share)
|
- | - | - | (11,857 | ) | - | - | (11,857 | ) | |||||||||||||||||||
Ending
balance at September 30, 2009
|
109,085,991 | $ | 5,127 | 219,831 | 511,792 | (14,407 | ) | (69,423 | ) | 652,920 |
Accumulated
|
||||||||||||||||||||||||||||
Nine
months ended September 30, 2010
|
Other
|
Unallocated
|
Total
|
|||||||||||||||||||||||||
Common
Stock
|
Paid-in
|
Retained
|
Comprehensive
|
common
stock
|
Shareholders'
|
|||||||||||||||||||||||
Shares
|
Amount
|
Capital
|
Earnings
|
Income/
(loss)
|
of
ESOP
|
Equity
|
||||||||||||||||||||||
Beginning
balance at December 31, 2009
|
110,641,858 | $ | 1,106 | 828,195 | 508,842 | (9,977 | ) | (11,651 | ) | 1,316,515 | ||||||||||||||||||
Comprehensive
income:
|
||||||||||||||||||||||||||||
Net
income
|
- | - | - | 44,785 | - | - | 44,785 | |||||||||||||||||||||
Change
in fair value of interest rate swaps, net of tax of $3,049
|
- | - | - | - | (5,663 | ) | - | (5,663 | ) | |||||||||||||||||||
Change
in unrealized loss on securities, net of tax of $(4,897)
|
- | - | - | - | 9,094 | - | 9,094 | |||||||||||||||||||||
Other-than-temporary
impairment on securities recorded in other comprehensive income, net of
tax of $450
|
- | - | - | - | (837 | ) | - | (837 | ) | |||||||||||||||||||
Total
comprehensive income
|
- | - | - | 44,785 | 2,594 | - | 47,379 | |||||||||||||||||||||
Exercise
of stock options
|
164,560 | 2 | 1,394 | - | - | - | 1,396 | |||||||||||||||||||||
Stock-based
compensation expense
|
- | - | 1,043 | - | - | - | 1,043 | |||||||||||||||||||||
Additional
costs associated with common stock offering
|
- | - | (703 | ) | - | - | - | (703 | ) | |||||||||||||||||||
Purchase
of common stock by ESOP
|
- | - | - | - | - | (17,200 | ) | (17,200 | ) | |||||||||||||||||||
Dividends
paid ($0.30 per share)
|
- | - | - | (33,208 | ) | - | - | (33,208 | ) | |||||||||||||||||||
Ending
balance at September 30, 2010
|
110,806,418 | $ | 1,108 | 829,929 | 520,419 | (7,383 | ) | (28,851 | ) | 1,315,222 |
Nine months ended
|
||||||||
September 30,
|
||||||||
2010
|
2009
|
|||||||
OPERATING
ACTIVITIES:
|
||||||||
Net
Income
|
$ | 44,785 | 31,647 | |||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||
Provision
for loan losses
|
26,568 | 27,347 | ||||||
Net
loss/ (gain) on sale of assets
|
1,020 | (6,427 | ) | |||||
Net
depreciation, amortization and accretion
|
10,783 | 13,029 | ||||||
Increase
in other assets
|
(48,607 | ) | (5,560 | ) | ||||
(Decrease)/
increase in other liabilities
|
(3,855 | ) | 8,161 | |||||
Net
amortization of premium/ (discount) on marketable
securities
|
(714 | ) | (2,922 | ) | ||||
Deferred
income tax expense
|
2,232 | 399 | ||||||
Noncash
impairment losses on investment securities
|
707 | 5,181 | ||||||
Noncash
impairment of REO
|
1,338 | 3,862 | ||||||
Origination
of loans held for sale
|
(104,757 | ) | (507,373 | ) | ||||
Proceeds
from sale of loans held for sale
|
95,523 | 512,927 | ||||||
Noncash
compensation expense related to stock benefit plans
|
1,043 | 1,338 | ||||||
Net
cash provided by operating activities
|
26,066 | 81,609 | ||||||
INVESTING
ACTIVITIES:
|
||||||||
Purchase
of marketable securities held-to-maturity
|
(485,995 | ) | - | |||||
Purchase
of marketable securities available-for-sale
|
(123,863 | ) | (213,789 | ) | ||||
Proceeds
from maturities and principal reductions of marketable securities
available-for-sale
|
266,335 | 225,342 | ||||||
Proceeds
from maturities and principal reductions of marketable securities
held-to-maturity
|
85,966 | - | ||||||
Proceeds
from sale of marketable securities available-for-sale
|
56,865 | 22,346 | ||||||
Loan
originations
|
(1,485,739 | ) | (1,294,614 | ) | ||||
Proceeds
from loan maturities and principal reductions
|
1,170,274 | 1,243,032 | ||||||
Proceeds
from sale of real estate owned
|
6,913 | 4,740 | ||||||
Purchase
of real estate owned for investment, net
|
(2,068 | ) | (247 | ) | ||||
Purchase
of premises and equipment
|
(11,689 | ) | (16,760 | ) | ||||
Net
cash used in investing activities
|
(523,001 | ) | (29,950 | ) |
Nine months ended
|
||||||||
September 30,
|
||||||||
2010
|
2009
|
|||||||
FINANCING
ACTIVITIES:
|
||||||||
Increase
in deposits, net
|
$ | 144,516 | 349,621 | |||||
Repayments
of long-term borrowings
|
(36,548 | ) | (29,582 | ) | ||||
Net
increase/ (decrease) in short-term borrowings
|
15,296 | (141,556 | ) | |||||
Decrease
in advances by borrowers for taxes and insurance
|
(9,336 | ) | (13,050 | ) | ||||
Repayment of
debentures
|
- | (5,155 | ) | |||||
Cash
dividends paid
|
(33,208 | ) | (11,857 | ) | ||||
Purchase
of common stock for employee stock ownership plan
|
(17,200 | ) | - | |||||
Proceeds
from stock options exercised
|
1,368 | 164 | ||||||
Net
cash provided by financing activities
|
64,888 | 148,585 | ||||||
Net
(decrease)/ increase in cash and cash equivalents
|
$ | (432,047 | ) | 200,244 | ||||
Cash
and cash equivalents at beginning of period
|
$ | 1,107,790 | 79,922 | |||||
Net
(decrease)/ increase in cash and cash equivalents
|
(432,047 | ) | 200,244 | |||||
Cash
and cash equivalents at end of period
|
$ | 675,743 | 280,166 | |||||
Cash
and cash equivalents:
|
||||||||
Cash
and due from banks
|
$ | 113,477 | 60,308 | |||||
Interest-earning
deposits in other financial institutions
|
561,634 | 219,227 | ||||||
Federal
funds sold and other short-term investments
|
632 | 631 | ||||||
Total
cash and cash equivalents
|
$ | 675,743 | 280,166 | |||||
Cash
paid during the period for:
|
||||||||
Interest
on deposits and borrowings (including interest credited to deposit
accounts of $50,787 and $61,279, respectively)
|
$ | 89,908 | 103,540 | |||||
Income
taxes
|
$ | 15,501 | 17,304 | |||||
Non-cash
activities:
|
||||||||
Loans
transferred to real estate owned
|
$ | 11,947 | 11,668 | |||||
Sale
of real estate owned financed by the Company
|
$ | 914 | 639 |
(1)
|
Basis of Presentation
and Informational
Disclosures
|
(2)
|
Business
Segments
|
Community
|
Consumer
|
|||||||||||||||
September 30, 2010 ($ in 000's)
|
Banking
|
Finance
|
All Other *
|
Consolidated
|
||||||||||||
External
interest income
|
$ | 88,788 | 5,214 | 7 | 94,009 | |||||||||||
Intersegment
interest income
|
805 | - | (805 | ) | - | |||||||||||
Interest
expense
|
26,341 | 805 | 213 | 27,359 | ||||||||||||
Provision
for loan losses
|
8,750 | 1,121 | - | 9,871 | ||||||||||||
Noninterest
income
|
13,197 | 617 | 14 | 13,828 | ||||||||||||
Noninterest
expense
|
45,988 | 3,017 | 43 | 49,048 | ||||||||||||
Income
tax expense (benefit)
|
6,065 | 368 | (365 | ) | 6,068 | |||||||||||
Net
income
|
15,646 | 520 | (675 | ) | 15,491 | |||||||||||
Total
assets
|
$ | 7,999,251 | 115,153 | 28,381 | 8,142,785 |
Community
|
Consumer
|
|||||||||||||||
September 30, 2009 ($ in 000's)
|
Banking
|
Finance
|
All Other *
|
Consolidated
|
||||||||||||
External
interest income
|
$ | 85,227 | 5,197 | 4 | 90,428 | |||||||||||
Intersegment
interest income
|
822 | - | (822 | ) | - | |||||||||||
Interest
expense
|
32,163 | 823 | 600 | 33,586 | ||||||||||||
Provision
for loan losses
|
9,000 | 830 | - | 9,830 | ||||||||||||
Noninterest
income
|
13,421 | 549 | 15 | 13,985 | ||||||||||||
Noninterest
expense
|
41,964 | 2,904 | 119 | 44,987 | ||||||||||||
Income
tax expense (benefit)
|
3,995 | 494 | (533 | ) | 3,956 | |||||||||||
Net
income
|
12,348 | 695 | (989 | ) | 12,054 | |||||||||||
Total
assets
|
$ | 6,999,884 | 116,152 | 16,005 | 7,132,041 |
Community
|
Consumer
|
|||||||||||||||
September 30, 2010 ($ in 000's)
|
Banking
|
Finance
|
All Other *
|
Consolidated
|
||||||||||||
External
interest income
|
$ | 261,936 | 15,600 | 15 | 277,551 | |||||||||||
Intersegment
interest income
|
2,419 | - | (2,419 | ) | - | |||||||||||
Interest
expense
|
84,608 | 2,419 | 113 | 87,140 | ||||||||||||
Provision
for loan losses
|
23,750 | 2,818 | - | 26,568 | ||||||||||||
Noninterest
income
|
43,632 | 1,558 | 40 | 45,230 | ||||||||||||
Noninterest
expense
|
136,458 | 9,087 | 264 | 145,809 | ||||||||||||
Income
tax expense (benefit)
|
18,262 | 1,177 | (960 | ) | 18,479 | |||||||||||
Net
income
|
44,909 | 1,657 | (1,781 | ) | 44,785 | |||||||||||
Total
assets
|
$ | 7,999,251 | 115,153 | 28,381 | 8,142,785 |
Community
|
Consumer
|
|||||||||||||||
September 30, 2009 ($ in 000's)
|
Banking
|
Finance
|
All Other *
|
Consolidated
|
||||||||||||
External
interest income
|
$ | 258,895 | 15,277 | 15 | 274,187 | |||||||||||
Intersegment
interest income
|
2,373 | - | (2,373 | ) | - | |||||||||||
Interest
expense
|
98,558 | 2,449 | 1,966 | 102,973 | ||||||||||||
Provision
for loan losses
|
25,000 | 2,347 | - | 27,347 | ||||||||||||
Noninterest
income
|
33,732 | 1,646 | 63 | 35,441 | ||||||||||||
Noninterest
expense
|
127,116 | 8,775 | 366 | 136,257 | ||||||||||||
Income
tax expense (benefit)
|
11,633 | 1,392 | (1,621 | ) | 11,404 | |||||||||||
Net
income
|
32,693 | 1,960 | (3,006 | ) | 31,647 | |||||||||||
Total
assets
|
$ | 6,999,884 | 116,152 | 16,005 | 7,132,041 |
(3)
|
Investment securities
and impairment of investment
securities
|
Gross
|
Gross
|
|||||||||||||||
unrealized
|
unrealized
|
|||||||||||||||
Amortized
|
holding
|
holding
|
Fair
|
|||||||||||||
cost
|
gains
|
losses
|
value
|
|||||||||||||
Debt
issued by the U.S. government and agencies:
|
||||||||||||||||
Due
in one year or less
|
$ | 10,014 | - | (1 | ) | 10,013 | ||||||||||
Debt
issued by government sponsored enterprises:
|
||||||||||||||||
Due
in one year - five years
|
1,986 | 117 | - | 2,103 | ||||||||||||
Due
in five years - ten years
|
7,074 | 737 | - | 7,811 | ||||||||||||
Equity
securities
|
954 | 95 | (93 | ) | 956 | |||||||||||
Municipal
securities:
|
||||||||||||||||
Due
in one year - five years
|
3,099 | 176 | - | 3,275 | ||||||||||||
Due
in five years - ten years
|
35,944 | 1,596 | - | 37,540 | ||||||||||||
Due
after ten years
|
171,960 | 4,391 | (497 | ) | 175,854 | |||||||||||
Corporate
debt issues:
|
||||||||||||||||
Due
in one year or less
|
100 | - | - | 100 | ||||||||||||
Due
in one year - five years
|
500 | - | - | 500 | ||||||||||||
Due
after ten years
|
25,530 | 288 | (7,021 | ) | 18,797 | |||||||||||
Residential
mortgage-backed securities:
|
||||||||||||||||
Fixed
rate pass-through
|
114,015 | 8,282 | (5 | ) | 122,292 | |||||||||||
Variable
rate pass-through
|
181,804 | 8,120 | (24 | ) | 189,900 | |||||||||||
Fixed
rate non-agency CMOs
|
15,476 | 93 | (1,187 | ) | 14,382 | |||||||||||
Fixed
rate agency CMOs
|
28,622 | 1,243 | - | 29,865 | ||||||||||||
Variable
rate non-agency CMOs
|
6,083 | 150 | (180 | ) | 6,053 | |||||||||||
Variable
rate agency CMOs
|
259,586 | 5,241 | (110 | ) | 264,717 | |||||||||||
Total
residential mortgage-backed securities
|
605,586 | 23,129 | (1,506 | ) | 627,209 | |||||||||||
Total
marketable securities available-for-sale
|
$ | 862,747 | 30,529 | (9,118 | ) | 884,158 |
Gross
|
Gross
|
|||||||||||||||
unrealized
|
unrealized
|
|||||||||||||||
Amortized
|
holding
|
holding
|
Fair
|
|||||||||||||
cost
|
gains
|
losses
|
value
|
|||||||||||||
Debt
issued by the U.S. government and agencies:
|
||||||||||||||||
Due
in one year or less
|
$ | 76 | - | (1 | ) | 75 | ||||||||||
Debt
issued by government sponsored enterprises:
|
||||||||||||||||
Due
in one year - five years
|
1,977 | 153 | - | 2,130 | ||||||||||||
Due
in five years - ten years
|
21,912 | 524 | - | 22,436 | ||||||||||||
Due
after ten years
|
52,667 | 1,128 | (498 | ) | 53,297 | |||||||||||
Equity
securities
|
1,054 | 191 | (118 | ) | 1,127 | |||||||||||
Municipal
securities:
|
||||||||||||||||
Due
in one year - five years
|
3,146 | 68 | - | 3,214 | ||||||||||||
Due
in five years - ten years
|
41,170 | 1,163 | - | 42,333 | ||||||||||||
Due
after ten years
|
190,812 | 2,774 | (1,677 | ) | 191,909 | |||||||||||
Corporate
debt issues:
|
||||||||||||||||
Due
in one year - five years
|
500 | - | - | 500 | ||||||||||||
Due
after ten years
|
26,882 | 168 | (10,549 | ) | 16,501 | |||||||||||
Residential
mortgage-backed securities:
|
||||||||||||||||
Fixed
rate pass-through
|
145,363 | 6,440 | (47 | ) | 151,756 | |||||||||||
Variable
rate pass-through
|
231,232 | 7,894 | (85 | ) | 239,041 | |||||||||||
Fixed
rate non-agency CMOs
|
18,919 | 48 | (1,788 | ) | 17,179 | |||||||||||
Fixed
rate CMOs
|
19,994 | 982 | - | 20,976 | ||||||||||||
Variable
rate non-agency CMOs
|
9,075 | - | (1,170 | ) | 7,905 | |||||||||||
Variable
rate CMOs
|
294,398 | 2,642 | (330 | ) | 296,710 | |||||||||||
Total
residential mortgage-backed securities
|
718,981 | 18,006 | (3,420 | ) | 733,567 | |||||||||||
Total
marketable securities available-for-sale
|
$ | 1,059,177 | 24,175 | (16,263 | ) | 1,067,089 |
Gross
|
Gross
|
|||||||||||||||
unrealized
|
unrealized
|
|||||||||||||||
Amortized
|
holding
|
holding
|
Fair
|
|||||||||||||
cost
|
gains
|
losses
|
value
|
|||||||||||||
Debt
issued by government sponsored enterprises:
|
||||||||||||||||
Due
in one year - five years
|
26,500 | 84 | - | 26,584 | ||||||||||||
Municipal
securities:
|
||||||||||||||||
Due
after ten years
|
81,116 | 1,485 | (31 | ) | 82,570 | |||||||||||
Residential
mortgage-backed securities:
|
||||||||||||||||
Fixed
rate pass-through
|
32,168 | 1,012 | - | 33,180 | ||||||||||||
Variable
rate pass-through
|
9,996 | 135 | - | 10,131 | ||||||||||||
Fixed
rate agency CMOs
|
221,772 | 7,306 | - | 229,078 | ||||||||||||
Variable
rate agency CMOs
|
27,772 | 469 | - | 28,241 | ||||||||||||
Total
residential mortgage-backed securities
|
291,708 | 8,922 | - | 300,630 | ||||||||||||
Total
marketable securities held-to-maturity
|
$ | 399,324 | 10,491 | (31 | ) | 409,784 |
Less than 12 months
|
12 months or more
|
Total
|
||||||||||||||||||||||
Unrealized
|
Unrealized
|
Unrealized
|
||||||||||||||||||||||
Fair value
|
loss
|
Fair value
|
loss
|
Fair value
|
loss
|
|||||||||||||||||||
U.S.
government and agencies
|
$ | 9,944 | - | 37 | (1 | ) | 9,981 | (1 | ) | |||||||||||||||
Municipal
securities
|
9,407 | (35 | ) | 9,068 | (493 | ) | 18,475 | (528 | ) | |||||||||||||||
Corporate
issues
|
1,006 | (2 | ) | 14,168 | (7,019 | ) | 15,174 | (7,021 | ) | |||||||||||||||
Equity
securities
|
26 | (1 | ) | 136 | (92 | ) | 162 | (93 | ) | |||||||||||||||
Residential
mortgage-
|
||||||||||||||||||||||||
backed
securities - non-agency
|
- | - | 13,416 | (1,367 | ) | 13,416 | (1,367 | ) | ||||||||||||||||
Residential
mortgage-
|
||||||||||||||||||||||||
backed
securities - agency
|
7,597 | (19 | ) | 7,958 | (120 | ) | 15,555 | (139 | ) | |||||||||||||||
Total
temporarily impaired securities
|
$ | 27,980 | (57 | ) | 44,783 | (9,092 | ) | 72,763 | (9,149 | ) |
Less than 12 months
|
12 months or more
|
Total
|
||||||||||||||||||||||
Unrealized
|
Unrealized
|
Unrealized
|
||||||||||||||||||||||
Fair value
|
loss
|
Fair value
|
loss
|
Fair value
|
loss
|
|||||||||||||||||||
U.S.
government and agencies
|
$ | 17,051 | (490 | ) | 266 | (9 | ) | 17,317 | (499 | ) | ||||||||||||||
Municipal
securities
|
43,897 | (598 | ) | 10,505 | (1,079 | ) | 54,402 | (1,677 | ) | |||||||||||||||
Corporate
issues
|
- | - | 12,058 | (10,549 | ) | 12,058 | (10,549 | ) | ||||||||||||||||
Equities
|
452 | (118 | ) | - | - | 452 | (118 | ) | ||||||||||||||||
Residential
mortgage-
|
||||||||||||||||||||||||
backed
securities - non-agency
|
1,194 | (2 | ) | 19,451 | (2,956 | ) | 20,645 | (2,958 | ) | |||||||||||||||
Residential
mortgage-
|
||||||||||||||||||||||||
backed
securities - agency
|
25,752 | (181 | ) | 43,067 | (281 | ) | 68,819 | (462 | ) | |||||||||||||||
Total
temporarily impaired securities
|
$ | 88,346 | (1,389 | ) | 85,347 | (14,874 | ) | 173,693 | (16,263 | ) |
Total
|
||||||||||||||||||
Book
|
Fair
|
Unrealized
|
Moody's/ Fitch
|
|||||||||||||||
Description
|
Class
|
Value
|
Value
|
Losses
|
Ratings
|
|||||||||||||
North
Fork Capital (1)
|
N/A
|
$ | 1,008 | 1,006 | (2 | ) |
Baa3/
BBB
|
|||||||||||
Bank
Boston Capital Trust (2)
|
N/A
|
988 | 698 | (290 | ) |
Baa3/
BB
|
||||||||||||
Reliance
Capital Trust
|
N/A
|
1,000 | 886 | (114 | ) |
Not
rated
|
||||||||||||
Huntington
Capital Trust
|
N/A
|
1,421 | 841 | (580 | ) |
Ba1/
BB+
|
||||||||||||
MM
Community Funding I
|
Mezzanine
|
105 | 56 | (49 | ) |
Ca/
C
|
||||||||||||
MM
Community Funding II
|
Mezzanine
|
382 | 33 | (349 | ) |
Baa2/
BB
|
||||||||||||
I-PreTSL
I
|
Mezzanine
|
1,500 | 188 | (1,312 | ) |
Not
rated/ BB
|
||||||||||||
I-PreTSL
II
|
Mezzanine
|
1,500 | 187 | (1,313 | ) |
Not
rated/ BB
|
||||||||||||
PreTSL
XIX *
|
Senior
A-1
|
7,177 | 5,182 | (1,995 | ) |
A3/
A
|
||||||||||||
PreTSL
XX *
|
Senior
A-1
|
4,349 | 2,985 | (1,364 | ) |
Ba2/
A
|
||||||||||||
$ | 19,430 | 12,062 | (7,368 | ) |
Additional
|
||||||||||||||||
Immediate
|
||||||||||||||||
defaults
before
|
||||||||||||||||
Current
|
causing
an
|
|||||||||||||||
Total
|
deferrals
|
Performing
|
interest
|
|||||||||||||
Description
*
|
Collateral
|
and
defaults
|
Collateral
|
shortfall
|
||||||||||||
I-PreTSL
I
|
$ | 193,500 | 17,500 | 176,000 | 99,500 | |||||||||||
I-PreTSL
II
|
378,000 | - | 378,000 | 153,000 | ||||||||||||
PreTSL
XIX
|
700,535 | 162,400 | 538,135 | 191,000 | ||||||||||||
PreTSL
XX
|
580,154 | 159,000 | 421,154 | 122,500 |
Impairment
|
Total
|
|||||||||||||||||||
Total
|
recorded
in
|
impairment
|
||||||||||||||||||
Book
|
Fair
|
Unrealized
|
current
quarter
|
recorded
in
|
||||||||||||||||
Description
|
Value
|
Value
|
Gain/ (loss)
|
earnings
|
earnings
|
|||||||||||||||
AMAC
2003-6 2A2
|
$ | 748 | 764 | 16 | - | - | ||||||||||||||
AMAC
2003-6 2A8
|
1,548 | 1,577 | 29 | - | - | |||||||||||||||
AMAC
2003-7 A3
|
864 | 874 | 10 | - | - | |||||||||||||||
BOAMS
2005-11 1A8
|
4,177 | 3,970 | (207 | ) | (146 | ) | (146 | ) | ||||||||||||
CWALT
2005-J14 A3
|
5,888 | 4,908 | (980 | ) | (28 | ) | (383 | ) | ||||||||||||
CFSB
2003-17 2A2
|
1,257 | 1,271 | 14 | - | - | |||||||||||||||
WAMU
2003-S2 A4
|
994 | 1,018 | 24 | - | - | |||||||||||||||
CMLTI
2005-10 1A5B
|
1,174 | 1,155 | (19 | ) | (10 | ) | (2,795 | ) | ||||||||||||
CSFB
2003-21 1A13
|
68 | 67 | (1 | ) | - | - | ||||||||||||||
FHASI
2003-8 1A24
|
2,340 | 2,267 | (73 | ) | - | - | ||||||||||||||
SARM
2005-21 4A2
|
1,297 | 1,447 | 150 | - | (2,543 | ) | ||||||||||||||
WFMBS
2003-B A2
|
1,137 | 1,050 | (87 | ) | - | - | ||||||||||||||
$ | 21,492 | 20,368 | (1,124 | ) | (184 | ) | (5,867 | ) |
Beginning
balance as of Janaury 1, 2010 (a)
|
$ | 13,998 | ||
Credit
losses on debt securities for which other-than-temporary
impairment was not previously recognized
|
- | |||
Additional
credit losses on debt securities for which
other-than-temporary impairment was previously
recognized
|
707 | |||
Ending
balance as of September 30, 2010
|
$ | 14,705 |
(4)
|
Loans
receivable
|
September 30,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
Real
estate loans:
|
||||||||
One-
to four-family
|
$ | 2,502,645 | 2,371,996 | |||||
Home
equity
|
1,105,809 | 1,080,011 | ||||||
Multi-family
and commercial
|
1,427,428 | 1,292,145 | ||||||
Total
real estate
|
5,035,882 | 4,744,152 | ||||||
Consumer
loans
|
||||||||
Automobile
|
92,955 | 101,046 | ||||||
Education
|
22,390 | 32,860 | ||||||
Loans
on savings accounts
|
11,757 | 12,209 | ||||||
Other
|
133,058 | 127,750 | ||||||
Total
consumer loans
|
260,160 | 273,865 | ||||||
Commercial
business loans
|
429,602 | 403,589 | ||||||
Total
loans receivable, gross
|
5,725,644 | 5,421,606 | ||||||
Deferred
loan fees
|
(6,793 | ) | (7,030 | ) | ||||
Allowance
for loan losses
|
(77,245 | ) | (70,403 | ) | ||||
Undisbursed
loan proceeds (real estate loans)
|
(126,389 | ) | (115,111 | ) | ||||
Total
loans receivable, net
|
$ | 5,515,217 | 5,229,062 |
Three months ended
|
Nine months ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Balance
at beginning of period
|
$ | 75,417 | 66,777 | 70,403 | 54,929 | |||||||||||
Provision
for loan losses
|
9,871 | 9,830 | 26,568 | 27,347 | ||||||||||||
Charge-offs
- mortgage
|
(682 | ) | (417 | ) | (1,947 | ) | (1,300 | ) | ||||||||
Charge-offs
- consumer
|
(3,040 | ) | (1,679 | ) | (7,705 | ) | (4,515 | ) | ||||||||
Charge-offs -
commercial
|
(4,811 | ) | (7,176 | ) | (11,563 | ) | (9,701 | ) | ||||||||
Recoveries
|
490 | 440 | 1,489 | 1,015 | ||||||||||||
Balance
at end of period
|
$ | 77,245 | 67,775 | 77,245 | 67,775 |
September 30,
|
December 31,
|
|||||||||||
2010
|
2009
|
2009
|
||||||||||
Loans
90 days or more delinquent
|
$ | 103,524 | 117,138 | 109,780 | ||||||||
Nonaccrual
loans
|
151,217 | 117,138 | 124,626 | |||||||||
Impaired
loans
|
126,583 | 50,298 | 75,933 | |||||||||
Specific
allowances allocated to impaired loans
|
24,455 | 13,227 | 13,191 | |||||||||
Impaired
loans with no related allowance
|
8,220 | - | 3,945 | |||||||||
Aggregate
recorded investment of impaired loans with terms modified through a
troubled debt restructuring
|
47,660 | - | 13,493 |
September 30,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
Amortizable
intangible assets:
|
||||||||
Core
deposit intangibles – gross
|
$ | 30,578 | 30,275 | |||||
Acquisitions
|
- | 303 | ||||||
Less: accumulated
amortization
|
(27,936 | ) | (26,108 | ) | ||||
Core
deposit intangibles – net
|
2,642 | 4,470 | ||||||
Customer
and Contract intangible assets – gross
|
1,731 | 1,731 | ||||||
Acquisitions
- Veracity Benefits Design, Inc.
|
2,007 | - | ||||||
Less: accumulated
amortization
|
(1,961 | ) | (1,523 | ) | ||||
Customer
and Contract intangible assets – net
|
$ | 1,777 | 208 |
For
the three months ended September 30, 2010
|
$ | 725 | ||
For
the three months ended September 30, 2009
|
701 | |||
For
the nine months ended September 30, 2010
|
2,265 | |||
For
the nine months ended September 30, 2009
|
2,371 | |||
For
the year ending December 31, 2010
|
2,775 | |||
For
the year ending December 31, 2011
|
1,692 | |||
For
the year ending December 31, 2012
|
1,060 | |||
For
the year ending December 31, 2013
|
635 | |||
For
the year ending December 31, 2014
|
313 | |||
For
the year ending December 31, 2015
|
140 |
Community
|
Consumer
|
|||||||||||
Banks
|
Finance
|
Total
|
||||||||||
Balance
at December 31, 2008
|
$ | 170,050 | 1,313 | 171,363 | ||||||||
Goodwill
acquired
|
— | — | — | |||||||||
Impairment
losses
|
— | — | — | |||||||||
Balance
at December 31, 2009
|
170,050 | 1,313 | 171,363 | |||||||||
Goodwill
acquired
|
219 | 100 | 319 | |||||||||
Impairment
losses
|
— | — | — | |||||||||
Balance
at September 30, 2010
|
$ | 170,269 | 1,413 | 171,682 |
Three months ended
|
Nine months ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Reported
net income
|
$ | 15,491 | 12,054 | 44,785 | 31,647 | |||||||||||
Weighted
average common shares outstanding
|
108,340,566 | 109,056,008 | 108,299,515 | 109,007,874 | ||||||||||||
Dilutive
potential shares due to effect of stock options
|
573,503 | 449,913 | 660,070 | 330,561 | ||||||||||||
Total
weighted average common shares and dilutive potential
shares
|
108,914,069 | 109,505,921 | 108,959,585 | 109,338,435 | ||||||||||||
Basic
earnings per share:
|
$ | 0.14 | 0.11 | 0.41 | 0.29 | |||||||||||
Diluted
earnings per share:
|
$ | 0.14 | 0.11 | 0.41 | 0.29 |
Components
of Net Periodic Benefit Cost
|
||||||||||||||||
Three
months ended September 30,
|
||||||||||||||||
Pension
Benefits
|
Other
Post-retirement Benefits
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Service
cost
|
$ | 1,397 | 1,323 | - | - | |||||||||||
Interest
cost
|
1,333 | 1,198 | 24 | 25 | ||||||||||||
Expected
return on plan assets
|
(1,379 | ) | (967 | ) | - | - | ||||||||||
Amortization
of prior service cost
|
(40 | ) | (27 | ) | - | - | ||||||||||
Amortization
of the net loss
|
218 | 458 | 13 | 14 | ||||||||||||
Net
periodic benefit cost
|
$ | 1,529 | 1,985 | 37 | 39 |
Components of Net Periodic Benefit Cost
|
||||||||||||||||
Nine months ended September 30,
|
||||||||||||||||
Pension Benefits
|
Other Post-retirement Benefits
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Service
cost
|
$ | 4,191 | 3,969 | - | - | |||||||||||
Interest
cost
|
3,999 | 3,594 | 72 | 75 | ||||||||||||
Expected
return on plan assets
|
(4,137 | ) | (2,901 | ) | - | - | ||||||||||
Amortization
of prior service cost
|
(120 | ) | (105 | ) | - | - | ||||||||||
Amortization
of the net loss
|
654 | 1,374 | 39 | 42 | ||||||||||||
Net
periodic benefit cost
|
$ | 4,587 | 5,931 | 111 | 117 |
September 30, 2010
|
December 31, 2009
|
|||||||||||||||
Carrying
|
Estimated
|
Carrying
|
Estimated
|
|||||||||||||
amount
|
fair value
|
amount
|
fair value
|
|||||||||||||
Financial
assets:
|
||||||||||||||||
Cash
and cash equivalents
|
675,743 | 675,743 | 1,107,790 | 1,107,790 | ||||||||||||
Securities
available-for-sale
|
884,158 | 884,158 | 1,067,089 | 1,067,089 | ||||||||||||
Securities
held-to-maturity
|
399,324 | 409,784 | - | - | ||||||||||||
Loans
receivable, net
|
5,592,462 | 5,929,701 | 5,229,062 | 5,509,279 | ||||||||||||
Accrued
interest receivable
|
27,590 | 27,590 | 25,780 | 25,780 | ||||||||||||
FHLB
Stock
|
63,242 | 63,242 | 63,242 | 63,242 | ||||||||||||
Total
financial assets
|
7,642,519 | 7,990,218 | 7,492,963 | 7,773,180 | ||||||||||||
Financial
liabilities:
|
||||||||||||||||
Savings
and checking accounts
|
3,316,489 | 3,316,489 | 2,999,683 | 2,999,683 | ||||||||||||
Time
deposits
|
2,452,451 | 2,508,276 | 2,624,741 | 2,689,898 | ||||||||||||
Borrowed
funds
|
876,068 | 929,142 | 897,326 | 893,749 | ||||||||||||
Junior
subordinated debentures
|
103,094 | 116,763 | 103,094 | 108,051 | ||||||||||||
Cash
flow hedges - swaps
|
13,669 | 13,669 | 4,957 | 4,957 | ||||||||||||
Accrued
interest payable
|
1,725 | 1,725 | 4,493 | 4,493 | ||||||||||||
Total
financial liabilities
|
6,763,496 | 6,886,064 | 6,634,294 | 6,700,831 |
|
·
|
Level
1 – Financial assets and liabilities for which inputs are observable and
are obtained from reliable quoted prices for identical assets or
liabilities in actively traded markets. This is the most
reliable fair value measurement and includes, for example, active
exchange-traded equity securities.
|
|
·
|
Level
2 – Financial assets and liabilities for which values are based on quoted
prices in markets that are not active or for which values are based on
similar assets or liabilities that are actively traded. Level 2
also includes pricing models in which the inputs are corroborated by
market data, for example, matrix
pricing.
|
|
·
|
Level
3 – Financial assets and liabilities for which values are based on prices
or valuation techniques that require inputs that are both unobservable and
significant to the overall fair value measurement. Level 3
inputs include the following:
|
|
o
|
Quotes
from brokers or other external sources that are not considered
binding;
|
|
o
|
Quotes
from brokers or other external sources where it can not be determined that
market participants would in fact transact for the asset or liability at
the quoted price;
|
|
o
|
Quotes
and other information from brokers or other external sources where the
inputs are not deemed observable.
|
Total
|
||||||||||||||||
assets at
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
fair value
|
|||||||||||||
Equity
securities
|
$ | 736 | - | 220 | 956 | |||||||||||
Debt
securities:
|
||||||||||||||||
U.S.
government and agencies
|
- | 10,013 | - | 10,013 | ||||||||||||
Government
sponsored enterprises
|
- | 9,914 | - | 9,914 | ||||||||||||
States
and political subdivisions
|
- | 216,669 | - | 216,669 | ||||||||||||
Corporate
|
- | 10,165 | 9,232 | 19,397 | ||||||||||||
Total
debt securities
|
- | 246,761 | 9,232 | 255,993 | ||||||||||||
Residential
mortgage-backed securities:
|
||||||||||||||||
GNMA
|
- | 59,648 | - | 59,648 | ||||||||||||
FNMA
|
- | 145,512 | - | 145,512 | ||||||||||||
FHLMC
|
- | 106,280 | - | 106,280 | ||||||||||||
Non-agency
|
- | 752 | - | 752 | ||||||||||||
Collateralized
mortgage obligations:
|
||||||||||||||||
GNMA
|
- | 60,554 | - | 60,554 | ||||||||||||
FNMA
|
- | 77,202 | - | 77,202 | ||||||||||||
FHLMC
|
- | 132,386 | - | 132,386 | ||||||||||||
Other
agency
|
- | 24,440 | - | 24,440 | ||||||||||||
Non-agency
|
- | 20,435 | - | 20,435 | ||||||||||||
Total
mortgage-backed securities
|
- | 627,209 | - | 627,209 | ||||||||||||
Interest
rate swaps
|
- | (13,669 | ) | - | (13,669 | ) | ||||||||||
Total
assets
|
$ | 736 | 860,301 | 9,452 | 870,489 |
Total
|
||||||||||||||||
assets at
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
fair value
|
|||||||||||||
Equity
securities
|
$ | 907 | - | 220 | 1,127 | |||||||||||
Debt
securities:
|
||||||||||||||||
U.S.
government and agencies
|
- | 75 | - | 75 | ||||||||||||
Government
sponsored enterprises
|
- | 77,863 | - | 77,863 | ||||||||||||
States
and political subdivisions
|
- | 237,456 | - | 237,456 | ||||||||||||
Corporate
|
- | 9,616 | 7,385 | 17,001 | ||||||||||||
Total
debt securities
|
- | 325,010 | 7,385 | 332,395 | ||||||||||||
Residential
mortgage-backed securities:
|
||||||||||||||||
GNMA
|
- | 71,673 | - | 71,673 | ||||||||||||
FNMA
|
- | 178,147 | - | 178,147 | ||||||||||||
FHLMC
|
- | 140,203 | - | 140,203 | ||||||||||||
Non-agency
|
- | 774 | - | 774 | ||||||||||||
Collateralized
mortgage obligations:
|
||||||||||||||||
GNMA
|
- | 54,492 | - | 54,492 | ||||||||||||
FNMA
|
- | 78,834 | - | 78,834 | ||||||||||||
FHLMC
|
- | 184,360 | - | 184,360 | ||||||||||||
Non-agency
|
- | 25,084 | - | 25,084 | ||||||||||||
Total
mortgage-backed securities
|
- | 733,567 | - | 733,567 | ||||||||||||
Interest
rate swaps
|
- | (4,957 | ) | - | (4,957 | ) | ||||||||||
Total
assets
|
$ | 907 | 1,053,620 | 7,605 | 1,062,132 |
Three months ended
|
Nine months ended
|
|||||||||||||||
September 30, 2010
|
September 30, 2010
|
|||||||||||||||
Equity
|
Debt
|
Equity
|
Debt
|
|||||||||||||
securities
|
securities
|
securities
|
securities
|
|||||||||||||
Beginning
balace
|
$ | 220 | 9,470 | $ | 220 | 7,385 | ||||||||||
Total
net realized investment gains/ (losses) and net change in unrealized
appreciation/ (depreciation):
|
||||||||||||||||
Included
in net income as OTTI
|
- | (208 | ) | - | (362 | ) | ||||||||||
Included
in other comprehensive income
|
- | (30 | ) | - | 2,209 | |||||||||||
Purchases
and sales
|
- | - | - | - | ||||||||||||
Net
transfers in (out) of Level 3
|
- | - | - | - | ||||||||||||
Ending
balance
|
$ | 220 | 9,232 | $ | 220 | 9,232 |
Three months ended
|
Nine months ended
|
|||||||||||||||
September 30, 2009
|
September 30, 2009
|
|||||||||||||||
Equity
|
Debt
|
Equity
|
Debt
|
|||||||||||||
securities
|
securities
|
securities
|
securities
|
|||||||||||||
Beginning
balace
|
$ | 220 | 7,238 | $ | 220 | 5,937 | ||||||||||
Total
net realized investment gains/ (losses) and net change in unrealized
appreciation/ (depreciation):
|
||||||||||||||||
Included
in net income as OTTI
|
- | (442 | ) | - | (442 | ) | ||||||||||
Included
in other comprehensive income
|
- | 232 | - | 1,033 | ||||||||||||
Purchases
and sales
|
- | - | - | 500 | ||||||||||||
Net
transfers in (out) of Level 3
|
- | - | - | - | ||||||||||||
Ending
balance
|
$ | 220 | 7,028 | $ | 220 | 7,028 |
Total
|
||||||||||||||||
assets at
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
fair value
|
|||||||||||||
Loans
measured for impairment
|
$ | - | - | 102,127 | 102,127 | |||||||||||
Real
estate owned
|
$ | - | - | 22,998 | 22,998 | |||||||||||
Mortgage
servicing rights
|
$ | - | - | 1,314 | 1,314 | |||||||||||
Total
assets
|
$ | - | - | 126,439 | 126,439 |
Total
|
||||||||||||||||
assets at
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
fair value
|
|||||||||||||
Loans
measured for impairment
|
$ | - | - | 62,742 | 62,742 | |||||||||||
Real
estate owned
|
$ | - | - | 20,257 | 20,257 | |||||||||||
Mortgage
servicing rights
|
$ | - | - | 5,481 | 5,481 | |||||||||||
Total
assets
|
$ | - | - | 88,480 | 88,480 |
Net
|
||||||||||||
Carrying
|
||||||||||||
Servicing
|
Valuation
|
Value and
|
||||||||||
Rights
|
Allowance
|
Fair Value
|
||||||||||
Balance
at June 30, 2010
|
6,557 | (175 | ) | 6,382 | ||||||||
Additions/
(reductions)
|
625 | (70 | ) | 555 | ||||||||
Amortization
|
(1,121 | ) | - | (1,121 | ) | |||||||
Balance
at September 30, 2010
|
6,061 | (245 | ) | 5,816 |
Net
|
||||||||||||
Carrying
|
||||||||||||
Servicing
|
Valuation
|
Value and
|
||||||||||
Rights
|
Allowance
|
Fair
Value
|
||||||||||
Balance
at December 31, 2009
|
8,570 | (540 | ) | 8,030 | ||||||||
Additions/
(reductions)
|
779 | 295 | 1,074 | |||||||||
Amortization
|
(3,288 | ) | - | (3,288 | ) | |||||||
Balance
at September 30, 2010
|
6,061 | (245 | ) | 5,816 |
Net
|
||||||||||||
Carrying
|
||||||||||||
Servicing
|
Valuation
|
Value and
|
||||||||||
Rights
|
Allowance
|
Fair
Value
|
||||||||||
Balance
at June 30, 2009
|
8,907 | (990 | ) | 7,917 | ||||||||
Additions/
(reductions)
|
1,256 | 160 | 1,416 | |||||||||
Amortization
|
(1,132 | ) | - | (1,132 | ) | |||||||
Balance
at September 30, 2009
|
9,031 | (830 | ) | 8,201 |
Net
|
||||||||||||
Carrying
|
||||||||||||
Servicing
|
Valuation
|
Value and
|
||||||||||
Rights
|
Allowance
|
Fair Value
|
||||||||||
Balance
at December 31, 2008
|
8,660 | (2,380 | ) | 6,280 | ||||||||
Additions/
(reductions)
|
4,160 | 1,550 | 5,710 | |||||||||
Amortization
|
(3,789 | ) | - | (3,789 | ) | |||||||
Balance
at September 30, 2009
|
9,031 | (830 | ) | 8,201 |
September
30,
|
December
31,
|
|||||||
2010
|
2009
|
|||||||
Fair
value
|
$ | 13,669 | 4,957 | |||||
Notional
amount
|
$ | 100,000 | 100,000 | |||||
Collateral
posted
|
$ | 13,669 | 4,957 |
|
·
|
Changes
in interest rates which could impact our net interest
margin;
|
|
·
|
Adverse
changes in our loan portfolio or investment securities portfolio and the
resulting credit related losses and/ or market value
adjustments;
|
|
·
|
The
impact of the current financial crisis on our loan portfolio (including
cash flow and collateral values), investment portfolio, customers and
capital market activities;
|
|
·
|
Possible
impairments of securities held by us, including those issued by government
entities and government sponsored
enterprises;
|
|
·
|
Our
ability to continue to increase and manage our commercial and residential
real estate, multifamily and commercial and industrial
loans;
|
|
·
|
The
adequacy of the allowance for loan
losses;
|
|
·
|
Changes
in the financial performance and/ or condition of the Company’s
borrowers;
|
|
·
|
Changes
in general economic or business conditions resulting in changes in demand
for credit and other services, among other
things;
|
|
·
|
Changes
in consumer confidence, spending and savings habits relative to the bank
and non-bank financial services we
provide;
|
|
·
|
Compliance
with laws and regulatory requirements of federal and state
agencies;
|
|
·
|
New
legislation affecting the financial services
industry;
|
|
·
|
The
impact of recent legislation restructuring the U.S. financial and
regulatory system;
|
|
·
|
The
level of future deposit premium
assessments;
|
|
·
|
Competition
from other financial institutions in originating loans and attracting
deposits;
|
|
·
|
The
effect of changes in accounting policies and practices, as may be adopted
by the regulatory agencies, as well as the SEC, Public Company Oversight
Board, the Financial Accounting Standards Board and other accounting
standards setters;
|
|
·
|
Our
ability to effectively implement technology driven products and
services;
|
|
·
|
Sources
of liquidity; and
|
|
·
|
Our
success in managing the risks involved in the
foregoing.
|
Minimum
Capital
|
Well
Capitalized
|
|||||||||||||||||||||||
Actual
|
Requirements
|
Requirements
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
Total
Capital (to risk weighted assets)
|
$ | 1,026,846 | 20.58 | % | 395,877 | 8.00 | % | 498,946 | 10.00 | % | ||||||||||||||
Tier
I Capital (to risk weighted assets)
|
964,294 | 19.33 | % | 199,579 | 4.00 | % | 299,368 | 6.00 | % | |||||||||||||||
Tier
I Capital (leverage) (to average assets)
|
964,294 | 12.09 | % | 239,236 | 3.00 | %* | 398,726 | 5.00 | % |
Minimum
Capital
|
Well
Capitalized
|
|||||||||||||||||||||||
Actual
|
Requirements
|
Requirements
|
||||||||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||||||||
Total
Capital (to risk weighted assets)
|
$ | 974,967 | 20.95 | % | 372,366 | 8.00 | % | 465,457 | 10.00 | % | ||||||||||||||
Tier
I Capital (to risk weighted assets)
|
916,613 | 19.69 | % | 186,183 | 4.00 | % | 279,274 | 6.00 | % | |||||||||||||||
Tier
I Capital (leverage) (to average assets)
|
916,613 | 12.65 | % | 217,402 | 3.00 | %* | 362,337 | 5.00 | % |
September
30, 2010
|
December
31, 2009
|
|||||||
(Dollars
in Thousands)
|
||||||||
Loans
accounted for on a nonaccrual basis:
|
||||||||
One- to four-family
residential loans
|
$ | 27,552 | 29,373 | |||||
Multifamily
and commercial real estate loans
|
65,498 | 49,594 | ||||||
Consumer
loans
|
11,936 | 12,544 | ||||||
Commercial
business loans
|
46,231 | 33,115 | ||||||
Total
|
151,217 | 124,626 | ||||||
Total
nonperforming loans as a percentage of loans
|
2.70 | % | 2.35 | % | ||||
Total
real estate acquired through foreclosure and other real estate owned
(“REO”)
|
22,998 | 20,257 | ||||||
Total
nonperforming assets
|
$ | 174,215 | 144,883 | |||||
Total
nonperforming assets as a percentage of total assets
|
2.14 | % | 1.81 | % |
Three
months ended September 30,
|
||||||||||||||||||||||||
2010
|
2009
|
|||||||||||||||||||||||
|
|
Avg.
|
|
|
Avg.
|
|||||||||||||||||||
Average
|
Yield/
|
Average
|
Yield/
|
|||||||||||||||||||||
Balance
|
Interest
|
Cost
(f)
|
Balance
|
Interest
|
Cost
(f)
|
|||||||||||||||||||
ASSETS:
|
||||||||||||||||||||||||
Interest
earning assets:
|
||||||||||||||||||||||||
Loans
(a) (b) (includes FTE adjustments of $381 and $369,
respectively)
|
$ | 5,569,014 | 83,753 | 6.00 | % | 5,168,204 | 80,006 | 6.15 | % | |||||||||||||||
Mortgage-backed
securities (c)
|
853,714 | 6,534 | 3.06 | % | 714,548 | 6,580 | 3.68 | % | ||||||||||||||||
Investment
securities (c) (includes FTE adjustments of $1,664 and $1,464,
respectively)
|
378,145 | 5,243 | 5.55 | % | 351,741 | 5,422 | 6.17 | % | ||||||||||||||||
FHLB
stock
|
63,242 | - | - | 63,143 | - | - | ||||||||||||||||||
Other
interest earning deposits
|
706,829 | 524 | 0.29 | % | 328,447 | 253 | 0.30 | % | ||||||||||||||||
Total
interest earning assets (includes FTE adjustments of $2,045 and $1,833,
respectively)
|
7,570,944 | 96,054 | 5.06 | % | 6,626,083 | 92,261 | 5.54 | % | ||||||||||||||||
Noninterest
earning assets (d)
|
591,977 | 512,804 | ||||||||||||||||||||||
TOTAL
ASSETS
|
8,162,921 | 7,138,887 | ||||||||||||||||||||||
LIABILITIES
AND SHAREHOLDERS' EQUITY:
|
||||||||||||||||||||||||
Interest
bearing liabilities:
|
||||||||||||||||||||||||
Savings
accounts
|
1,071,708 | 2,203 | 0.82 | % | 842,069 | 1,591 | 0.75 | % | ||||||||||||||||
Now
accounts
|
778,597 | 244 | 0.12 | % | 746,125 | 555 | 0.30 | % | ||||||||||||||||
Money
market demand accounts
|
903,278 | 1,301 | 0.57 | % | 766,742 | 1,908 | 0.99 | % | ||||||||||||||||
Certificate
accounts
|
2,446,317 | 14,024 | 2.27 | % | 2,578,266 | 19,418 | 2.99 | % | ||||||||||||||||
Borrowed
funds (e)
|
898,618 | 8,150 | 3.60 | % | 892,081 | 8,665 | 3.85 | % | ||||||||||||||||
Debentures
|
103,094 | 1,437 | 5.45 | % | 103,094 | 1,449 | 5.50 | % | ||||||||||||||||
Total
interest bearing liabilities
|
6,201,612 | 27,359 | 1.75 | % | 5,928,377 | 33,586 | 2.25 | % | ||||||||||||||||
Noninterest
bearing liabilities
|
648,905 | 566,250 | ||||||||||||||||||||||
Total
liabilities
|
6,850,517 | 6,494,627 | ||||||||||||||||||||||
Shareholders'
equity
|
1,312,404 | 644,260 | ||||||||||||||||||||||
TOTAL
LIABILITIES AND EQUITY
|
$ | 8,162,921 | 7,138,887 | |||||||||||||||||||||
Net
interest income/ Interest rate spread
|
68,695 | 3.31 | % | 58,675 | 3.29 | % | ||||||||||||||||||
Net
interest earning assets/ Net interest margin
|
$ | 1,369,332 | 3.63 | % | 697,706 | 3.54 | % | |||||||||||||||||
Ratio
of interest earning assets to interest bearing liabilities
|
1.22X | 1.12X |
Net
|
||||||||||||
Rate
|
Volume
|
Change
|
||||||||||
Interest
earning assets:
|
||||||||||||
Loans
|
$ | (2,415 | ) | 6,162 | 3,747 | |||||||
Mortgage-backed
securities
|
(1,328 | ) | 1,282 | (46 | ) | |||||||
Investment
securities
|
(586 | ) | 407 | (179 | ) | |||||||
FHLB
stock
|
- | - | - | |||||||||
Other
interest-earning deposits
|
(20 | ) | 291 | 271 | ||||||||
Total
interest-earning assets
|
(4,349 | ) | 8,142 | 3,793 | ||||||||
Interest-bearing
liabilities:
|
||||||||||||
Savings
accounts
|
159 | 453 | 612 | |||||||||
Now
accounts
|
(335 | ) | 24 | (311 | ) | |||||||
Money
market demand accounts
|
(947 | ) | 340 | (607 | ) | |||||||
Certificate
accounts
|
(4,519 | ) | (875 | ) | (5,394 | ) | ||||||
Borrowed
funds
|
(578 | ) | 63 | (515 | ) | |||||||
Debentures
|
(12 | ) | 0 | (12 | ) | |||||||
Total
interest-bearing liabilities
|
(6,232 | ) | 5 | (6,227 | ) | |||||||
Net
change in net interest income
|
$ | 1,883 | 8,137 | 10,020 |
Nine
months ended September 30,
|
||||||||||||||||||||||||
2010
|
2009
|
|||||||||||||||||||||||
|
|
Avg.
|
|
|
Avg.
|
|||||||||||||||||||
Average
|
Yield/
|
Average
|
Yield/
|
|||||||||||||||||||||
Balance
|
Interest
|
Cost
(f)
|
Balance
|
Interest
|
Cost
(f)
|
|||||||||||||||||||
ASSETS:
|
||||||||||||||||||||||||
Interest
earning assets:
|
||||||||||||||||||||||||
Loans
(a) (b) (includes FTE adjustments of $1,089 and $1,204,
respectively)
|
$ | 5,461,244 | 246,941 | 6.05 | % | 5,185,359 | 241,604 | 6.19 | % | |||||||||||||||
Mortgage-backed
securities (c)
|
794,691 | 19,385 | 3.25 | % | 712,593 | 20,858 | 3.90 | % | ||||||||||||||||
Investment
securities (c) (includes FTE adjustments of $4,645 and $4,511,
respectively)
|
371,587 | 15,358 | 5.51 | % | 364,437 | 17,025 | 6.23 | % | ||||||||||||||||
FHLB
stock
|
63,242 | - | - | 63,143 | - | |||||||||||||||||||
Other
interest earning deposits
|
833,157 | 1,601 | 0.25 | % | 232,852 | 415 | 0.24 | % | ||||||||||||||||
Total
interest earning assets (includes FTE adjustments of $5,734 and $5,715,
respectively)
|
7,523,921 | 283,285 | 5.04 | % | 6,558,384 | 279,902 | 5.67 | % | ||||||||||||||||
Noninterest
earning assets (d)
|
577,252 | 491,480 | ||||||||||||||||||||||
TOTAL
ASSETS
|
8,101,173 | 7,049,864 | ||||||||||||||||||||||
LIABILITIES
AND SHAREHOLDERS' EQUITY:
|
||||||||||||||||||||||||
Interest
bearing liabilities:
|
||||||||||||||||||||||||
Savings
accounts
|
1,022,259 | 6,472 | 0.85 | % | 822,401 | 4,649 | 0.76 | % | ||||||||||||||||
Now
accounts
|
772,584 | 962 | 0.17 | % | 733,714 | 2,102 | 0.38 | % | ||||||||||||||||
Money
market demand accounts
|
881,983 | 4,768 | 0.72 | % | 733,956 | 6,703 | 1.22 | % | ||||||||||||||||
Certificate
accounts
|
2,492,344 | 45,947 | 2.46 | % | 2,526,660 | 59,101 | 3.13 | % | ||||||||||||||||
Borrowed
funds (e)
|
898,320 | 24,728 | 3.68 | % | 948,981 | 26,020 | 3.67 | % | ||||||||||||||||
Debentures
|
103,094 | 4,263 | 5.45 | % | 106,531 | 4,398 | 5.44 | % | ||||||||||||||||
Total
interest bearing liabilities
|
6,170,584 | 87,140 | 1.89 | % | 5,872,243 | 102,973 | 2.34 | % | ||||||||||||||||
Noninterest
bearing liabilities
|
623,875 | 545,623 | ||||||||||||||||||||||
Total
liabilities
|
6,794,459 | 6,417,866 | ||||||||||||||||||||||
Shareholders'
equity
|
1,306,714 | 631,998 | ||||||||||||||||||||||
TOTAL
LIABILITIES AND EQUITY
|
$ | 8,101,173 | 7,049,864 | |||||||||||||||||||||
Net
interest income/ Interest rate spread
|
196,145 | 3.15 | % | 176,929 | 3.33 | % | ||||||||||||||||||
Net
interest earning assets/ Net interest margin
|
$ | 1,353,337 | 3.48 | % | 686,141 | 3.60 | % | |||||||||||||||||
Ratio
of interest earning assets to interest bearing liabilities
|
1.22X | 1.12X |
Net
|
||||||||||||
Rate
|
Volume
|
Change
|
||||||||||
Interest
earning assets:
|
||||||||||||
Loans
|
$ | (7,471 | ) | 12,808 | 5,337 | |||||||
Mortgage-backed
securities
|
(3,876 | ) | 2,403 | (1,473 | ) | |||||||
Investment
securities
|
(2,001 | ) | 334 | (1,667 | ) | |||||||
FHLB
stock
|
- | - | - | |||||||||
Other
interest-earning deposits
|
74 | 1,112 | 1,186 | |||||||||
Total
interest-earning assets
|
(13,274 | ) | 16,657 | 3,383 | ||||||||
Interest-bearing
liabilities:
|
||||||||||||
Savings
accounts
|
625 | 1,198 | 1,823 | |||||||||
Now
accounts
|
(1,251 | ) | 111 | (1,140 | ) | |||||||
Money
market demand accounts
|
(3,287 | ) | 1,352 | (1,935 | ) | |||||||
Certificate
accounts
|
(12,436 | ) | (718 | ) | (13,154 | ) | ||||||
Borrowed
funds
|
102 | (1,394 | ) | (1,292 | ) | |||||||
Debentures
|
7 | (142 | ) | (135 | ) | |||||||
Total
interest-bearing liabilities
|
(16,240 | ) | 407 | (15,833 | ) | |||||||
Net
change in net interest income
|
$ | 2,966 | 16,250 | 19,216 |
Increase
|
Decrease
|
|||||||||||||||
Parallel
shift in interest rates over the next 12 months
|
1.0 | % | 2.0 | % | 1.0 | % | 2.0 | % | ||||||||
Projected
percentage increase/ (decrease) in net income
|
9.1 | % | 9.6 | % | 2.3 | % | (2.9 | )% | ||||||||
Projected
increase/ (decrease) in return on average equity
|
9.1 | % | 9.6 | % | 2.3 | % | (2.9 | )% | ||||||||
Projected
increase/ (decrease) in earnings per share
|
$ | 0.07 | $ | 0.07 | $ | 0.02 | $ | (0.02 | ) | |||||||
Projected
percentage increase/ (decrease) in market value of equity
|
(3.9 | )% | (11.5 | )% | (6.5 | )% | (10.0 | )% |
|
a.)
|
Not
applicable.
|
|
b.)
|
Not
applicable.
|
c.)
|
Not
applicable.
|
31.1
|
Certification
of the Company’s Chief Executive Officer pursuant to Rule 13a-15 or 15d-15
of the Securities Exchange Act of 1934, as adopted pursuant to Section 302
of the Sarbanes-Oxley Act of 2002.
|
31.2
|
Certification
of the Company’s Chief Financial Officer pursuant to Rule 13a-15 or 15d-15
of the Securities Exchange Act of 1934, as adopted pursuant to Section 302
of the Sarbanes-Oxley Act of 2002.
|
32.1
|
Certification
of the Company’s Chief Executive Officer and Chief Financial Officer
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002.
|
NORTHWEST
BANCSHARES, INC.
|
|||
(Registrant)
|
|||
Date:
November 9,
2010
|
By:
|
/s/
Gerald J. Ritzert
|
|
Gerald
J. Ritzert
|
|||
Controller
|
|||
(Duly
Authorized Officer and Principal
|
|||
Accounting
Officer of the
Registrant)
|