Massachusetts (State or other jurisdiction of incorporation or organization) |
04-2870273 (I.R.S. Employer Identification No.) |
Large accelerated filer o
|
Accelerated filer þ | Non-accelerated filer o | Smaller reporting company o | |||
(Do not check if a smaller reporting company) |
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2
3
June 30, | December 31, | |||||||
2011 | 2010 | |||||||
ASSETS |
||||||||
CASH AND DUE FROM BANKS |
$ | 56,679 | $ | 42,112 | ||||
INTEREST EARNING DEPOSITS WITH BANKS |
129,420 | 119,170 | ||||||
FED FUNDS SOLD |
1,197 | | ||||||
SECURITIES |
||||||||
Trading Assets |
8,539 | 7,597 | ||||||
Securities Available for Sale |
305,895 | 377,457 | ||||||
Securities Held to Maturity (fair value $235,413 and $201,234 at June 30, 2011 and December 31, 2010, respectively) |
233,109 | 202,732 | ||||||
TOTAL SECURITIES |
547,543 | 587,786 | ||||||
LOANS HELD FOR SALE (at fair value) |
12,255 | 27,917 | ||||||
LOANS |
||||||||
Commercial and Industrial |
568,022 | 502,952 | ||||||
Commercial Real Estate |
1,801,026 | 1,717,118 | ||||||
Commercial Construction |
130,303 | 129,421 | ||||||
Small Business |
78,905 | 80,026 | ||||||
Residential Real Estate |
454,597 | 473,936 | ||||||
Residential Construction |
6,404 | 4,175 | ||||||
Home Equity |
632,735 | 579,278 | ||||||
Consumer Other |
53,239 | 68,773 | ||||||
TOTAL LOANS |
3,725,231 | 3,555,679 | ||||||
Less: Allowance for Loan Losses |
(46,637 | ) | (46,255 | ) | ||||
NET LOANS |
3,678,594 | 3,509,424 | ||||||
FEDERAL HOME LOAN BANK STOCK |
35,854 | 35,854 | ||||||
BANK PREMISES AND EQUIPMENT, NET |
46,368 | 45,712 | ||||||
GOODWILL |
130,074 | 129,617 | ||||||
IDENTIFIABLE INTANGIBLE ASSETS |
11,415 | 12,339 | ||||||
BANK OWNED LIFE INSURANCE |
84,363 | 82,711 | ||||||
OTHER REAL ESTATE OWNED & FORECLOSED ASSETS |
7,450 | 7,333 | ||||||
OTHER ASSETS |
101,731 | 95,763 | ||||||
TOTAL ASSETS |
$ | 4,842,943 | $ | 4,695,738 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
DEPOSITS |
||||||||
Demand Deposits |
$ | 913,960 | $ | 842,067 | ||||
Savings and Interest Checking Accounts |
1,479,365 | 1,375,254 | ||||||
Money Market |
722,234 | 717,286 | ||||||
Time Certificates of Deposit Over $100,000 |
185,630 | 219,480 | ||||||
Other Time Certificates of Deposits |
485,373 | 473,696 | ||||||
TOTAL DEPOSITS |
3,786,562 | 3,627,783 | ||||||
BORROWINGS |
||||||||
Federal Home Loan Bank Borrowings |
258,012 | 302,414 | ||||||
Federal Funds Purchased and Assets Sold Under
Repurchase Agreements |
183,166 | 168,119 | ||||||
Junior Subordinated Debentures |
61,857 | 61,857 | ||||||
Subordinated Debentures |
30,000 | 30,000 | ||||||
Other Borrowings |
2,635 | 3,044 | ||||||
TOTAL BORROWINGS |
535,670 | 565,434 | ||||||
OTHER LIABILITIES |
65,009 | 66,049 | ||||||
TOTAL LIABILITIES |
4,387,241 | 4,259,266 | ||||||
COMMITMENTS AND CONTINGENCIES |
||||||||
STOCKHOLDERS EQUITY |
||||||||
Preferred Stock, $.01 par value. Authorized: 1,000,000 Shares Outstanding: None |
| | ||||||
Common Stock, $.01 par value. Authorized: 75,000,000
Issued and Outstanding : 21,454,189 shares at June 30, 2011 and 21,220,801 shares at December 31, 2010
(Includes 235,540 and 219,900 shares of unvested fully participating restricted stock awards, respectively) |
212 | 210 | ||||||
Shares Held in Rabbi Trust at Cost
174,537 shares in June 30, 2011 and 178,382 shares at December 31, 2010 |
(2,857 | ) | (2,738 | ) | ||||
Deferred Compensation Obligation |
2,857 | 2,738 | ||||||
Additional Paid in Capital |
231,987 | 226,708 | ||||||
Retained Earnings |
224,488 | 210,320 | ||||||
Accumulated Other Comprehensive Loss, Net of Tax |
(985 | ) | (766 | ) | ||||
TOTAL STOCKHOLDERS EQUITY |
455,702 | 436,472 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY |
$ | 4,842,943 | $ | 4,695,738 | ||||
4
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
INTEREST INCOME |
||||||||||||||||
Interest on Loans |
$ | 43,938 | $ | 44,785 | $ | 87,154 | $ | 88,832 | ||||||||
Interest on Loans Held for Sale |
70 | 110 | 189 | 216 | ||||||||||||
Taxable Interest and Dividends on Securities |
5,357 | 6,129 | 10,850 | 12,598 | ||||||||||||
Non-taxable Interest and Dividends on Securities |
95 | 187 | 208 | 389 | ||||||||||||
Interest on Federal Funds Sold |
14 | 108 | 31 | 132 | ||||||||||||
TOTAL INTEREST AND DIVIDEND INCOME |
49,474 | 51,319 | 98,432 | 102,167 | ||||||||||||
INTEREST EXPENSE |
||||||||||||||||
Interest on Deposits |
3,544 | 5,485 | 7,029 | 11,424 | ||||||||||||
Interest on Borrowings |
3,854 | 4,667 | 7,854 | 9,366 | ||||||||||||
TOTAL INTEREST EXPENSE |
7,398 | 10,152 | 14,883 | 20,790 | ||||||||||||
NET INTEREST INCOME |
42,076 | 41,167 | 83,549 | 81,377 | ||||||||||||
PROVISION FOR LOAN LOSSES |
3,482 | 6,931 | 5,682 | 11,580 | ||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES |
38,594 | 34,236 | 77,867 | 69,797 | ||||||||||||
NON-INTEREST INCOME |
||||||||||||||||
Service Charges on Deposit Accounts |
4,192 | 3,257 | 8,151 | 6,388 | ||||||||||||
Interchange and ATM Fees |
1,974 | 1,258 | 3,676 | 2,348 | ||||||||||||
Investment Management |
3,603 | 3,189 | 6,819 | 5,918 | ||||||||||||
Mortgage Banking Income, Net |
683 | 622 | 1,730 | 1,622 | ||||||||||||
Bank Owned Life Insurance Income |
860 | 731 | 1,566 | 1,452 | ||||||||||||
Net Gain on Sales of Securities Available for Sale |
723 | 481 | 723 | 481 | ||||||||||||
Gross Change on Write-Down of Certain Investments to Fair Value |
170 | (63 | ) | 419 | 118 | |||||||||||
Less: Non-Credit Related Other-Than-Temporary Impairment |
(306 | ) | (21 | ) | (595 | ) | (380 | ) | ||||||||
Net Loss on Write-Down of Certain Investments to Fair Value |
(136 | ) | (84 | ) | (176 | ) | (262 | ) | ||||||||
Other Non-Interest Income |
1,575 | 1,484 | 3,583 | 3,041 | ||||||||||||
TOTAL NON-INTEREST INCOME |
13,474 | 10,938 | 26,072 | 20,988 | ||||||||||||
NON-INTEREST EXPENSE |
||||||||||||||||
Salaries and Employee Benefits |
19,762 | 18,406 | 40,014 | 36,869 | ||||||||||||
Occupancy and Equipment Expenses |
4,263 | 4,094 | 8,838 | 8,229 | ||||||||||||
Advertising Expense |
1,606 | 789 | 2,544 | 1,230 | ||||||||||||
Data Processing and Facilities Management |
1,038 | 1,497 | 2,676 | 2,791 | ||||||||||||
FDIC Assessment |
778 | 1,271 | 2,069 | 2,592 | ||||||||||||
Legal |
647 | 1,052 | 1,066 | 1,855 | ||||||||||||
Foreclosure Expenses |
594 | 217 | 1,021 | 462 | ||||||||||||
Telephone |
534 | 532 | 1,061 | 1,078 | ||||||||||||
Gain(Loss) on Other Real Estate Owned and Foreclosed Assets |
528 | 114 | 1,074 | 125 | ||||||||||||
Fair Value Mark on a Terminated Hedging Relationship |
| 554 | | 792 | ||||||||||||
Other Non-Interest Expense |
7,106 | 6,403 | 12,975 | 12,495 | ||||||||||||
TOTAL NON-INTEREST EXPENSE |
36,856 | 34,929 | 73,338 | 68,518 | ||||||||||||
INCOME BEFORE INCOME TAXES |
15,212 | 10,245 | 30,601 | 22,267 | ||||||||||||
PROVISION FOR INCOME TAXES |
4,092 | 2,215 | 8,293 | 5,010 | ||||||||||||
NET INCOME |
$ | 11,120 | $ | 8,030 | $ | 22,308 | $ | 17,257 | ||||||||
BASIC EARNINGS PER SHARE |
$ | 0.52 | $ | 0.38 | $ | 1.04 | $ | 0.82 | ||||||||
DILUTED EARNINGS PER SHARE |
$ | 0.52 | $ | 0.38 | $ | 1.04 | $ | 0.82 | ||||||||
WEIGHTED AVERAGE COMMON SHARES (BASIC) |
21,441,864 | 20,964,706 | 21,370,457 | 20,951,264 | ||||||||||||
Common Share Equivalents |
39,159 | 90,939 | 43,775 | 83,289 | ||||||||||||
WEIGHTED AVERAGE COMMON SHARES (DILUTED) |
21,481,023 | 21,055,645 | 21,414,232 | 21,034,553 | ||||||||||||
5
Shares | Accumulated | |||||||||||||||||||||||||||||||
Common | Held in | Deferred | Additional | Other | ||||||||||||||||||||||||||||
Shares | Common | Rabbi Trust | Compensation | Paid-in | Retained | Comprehensive | ||||||||||||||||||||||||||
Outstanding | Stock | at Cost | Obligation | Capital | Earnings | (Loss)/Income | TOTAL | |||||||||||||||||||||||||
BALANCE DECEMBER 31, 2010 |
21,220,801 | $ | 210 | $ | (2,738 | ) | $ | 2,738 | $ | 226,708 | $ | 210,320 | $ | (766 | ) | $ | 436,472 | |||||||||||||||
COMPREHENSIVE INCOME: |
||||||||||||||||||||||||||||||||
Net Income |
| | | | | 22,308 | | 22,308 | ||||||||||||||||||||||||
Change in Unrealized Gain on Securities Available For
Sale, Net of Tax and Realized Gains/(Losses) |
| | | | | | 439 | |||||||||||||||||||||||||
Change in Fair Value of Cash Flow Hedges,
Net of Tax and Realized Gains/(Losses) |
| | | | | | (910 | ) | ||||||||||||||||||||||||
Amortization of Prior Service Cost, net of tax |
| | | | | | 252 | |||||||||||||||||||||||||
Other Comprehensive Loss |
| | | | | | (219 | ) | (219 | ) | ||||||||||||||||||||||
TOTAL COMPREHENSIVE INCOME |
22,089 | |||||||||||||||||||||||||||||||
COMMON DIVIDEND DECLARED ($0.38 PER SHARE) |
| | | | (8,140 | ) | | (8,140 | ) | |||||||||||||||||||||||
PROCEEDS FROM EXERCISE OF STOCK OPTIONS |
162,875 | 2 | | | 3,699 | | | 3,701 | ||||||||||||||||||||||||
TAX BENEFIT RELATED TO EQUITY AWARD ACTIVITY |
| | | | 253 | | | 253 | ||||||||||||||||||||||||
EQUITY BASED COMPENSATION |
| | | | 1,352 | | | 1,352 | ||||||||||||||||||||||||
RESTRICTED STOCK AWARDS GRANTED, NET OF AWARDS |
60,495 | | | | (361 | ) | | | (361 | ) | ||||||||||||||||||||||
SHARES ISSUED UNDER DIRECT STOCK PURCHASE PLAN |
10,018 | 262 | 262 | |||||||||||||||||||||||||||||
DEFERRED COMPENSATION OBLIGATION |
| (119 | ) | 119 | | | | | ||||||||||||||||||||||||
TAX BENEFIT RELATED TO DEFERRED COMPENSATION DISTRIBUTIONS |
74 | 74 | ||||||||||||||||||||||||||||||
BALANCE JUNE 30, 2011 |
21,454,189 | $ | 212 | $ | (2,857 | ) | $ | 2,857 | $ | 231,987 | $ | 224,488 | $ | (985 | ) | $ | 455,702 | |||||||||||||||
BALANCE DECEMBER 31, 2009 |
21,072,196 | $ | 209 | $ | (2,482 | ) | $ | 2,482 | $ | 225,088 | $ | 184,599 | $ | 2,753 | $ | 412,649 | ||||||||||||||||
COMPREHENSIVE INCOME: |
||||||||||||||||||||||||||||||||
Net Income |
| | | | | 17,257 | | 17,257 | ||||||||||||||||||||||||
Change in Unrealized Gain on Securities Available For
Sale, Net of Tax and Realized Gains/(Losses) |
| | | | | | 4,458 | |||||||||||||||||||||||||
Change in Fair Value of Cash Flow Hedges,
Net of Tax and Realized Gains/(Losses) |
| | | | | | (5,784 | ) | ||||||||||||||||||||||||
Amortization of Prior Service Cost, net of tax |
| | | | | | 46 | |||||||||||||||||||||||||
Other Comprehensive Loss |
(1,280 | ) | (1,280 | ) | ||||||||||||||||||||||||||||
TOTAL COMPREHENSIVE INCOME |
15,977 | |||||||||||||||||||||||||||||||
DIVIDENDS DECLARED: |
||||||||||||||||||||||||||||||||
COMMON DECLARED ($0.36 PER SHARE) |
| | | | | (7,628 | ) | | (7,628 | ) | ||||||||||||||||||||||
PROCEEDS FROM EXERCISE OF STOCK OPTIONS |
25,595 | 1 | | | | 359 | | 360 | ||||||||||||||||||||||||
TAX BENEFIT RELATED TO EQUITY AWARD ACTIVITY |
| | | | 70 | | | 70 | ||||||||||||||||||||||||
EQUITY BASED COMPENSATION |
| | | | 743 | | | 743 | ||||||||||||||||||||||||
RESTRICTED STOCK AWARDS GRANTED, NET OF AWARDS |
103,843 | | | | (109 | ) | | | (109 | ) | ||||||||||||||||||||||
DEFERRED COMPENSATION OBLIGATION |
| | (129 | ) | 129 | | | | | |||||||||||||||||||||||
BALANCE JUNE 30, 2010 |
21,201,634 | $ | 210 | $ | (2,611 | ) | $ | 2,611 | $ | 225,792 | $ | 194,587 | $ | 1,473 | $ | 422,062 | ||||||||||||||||
6
Six Months Ended | ||||||||
June 30, | ||||||||
2011 | 2010 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||
Net Income |
$ | 22,308 | $ | 17,257 | ||||
ADJUSTMENTS TO RECONCILE NET INCOME TO
NET CASH PROVIDED BY OPERATING ACTIVITIES: |
||||||||
Depreciation and Amortization |
4,896 | 2,916 | ||||||
Provision for Loan Losses |
5,682 | 11,580 | ||||||
Deferred Income Tax (Benefit)Provision |
(21 | ) | 3 | |||||
Net Gain on Sale of Investments |
(723 | ) | (481 | ) | ||||
Loss on Write-Down of Investments in Securities Available for Sale |
176 | 262 | ||||||
Loss on Sale of Fixed Assets |
5 | 280 | ||||||
Loss(Gain) on Sale of Other Real Estate Owned and Foreclosed Assets |
953 | (62 | ) | |||||
Realized Gain on Sale Leaseback Transaction |
(517 | ) | (517 | ) | ||||
Stock Based Compensation |
1,352 | 743 | ||||||
Increase in Cash Surrender Value of Bank Owned Life Insurance |
(1,551 | ) | (1,452 | ) | ||||
Change in Fair Value on Loans Held for Sale |
(647 | ) | | |||||
Net Change In: |
||||||||
Trading Assets |
(942 | ) | (992 | ) | ||||
Loans Held for Sale |
16,309 | (2,899 | ) | |||||
Other Assets |
(6,428 | ) | (20,313 | ) | ||||
Other Liabilities |
(1,789 | ) | 9,581 | |||||
TOTAL ADJUSTMENTS |
16,755 | (1,351 | ) | |||||
NET CASH PROVIDED BY OPERATING ACTIVITIES |
39,063 | 15,906 | ||||||
CASH FLOWS USED IN INVESTING ACTIVITIES: |
||||||||
Proceeds from Sales of Securities Available For Sale |
14,639 | 7,346 | ||||||
Proceeds from Maturities and Principal Repayments of Securities Available For Sale |
58,018 | 72,235 | ||||||
Purchase of Securities Available For Sale |
| (46,837 | ) | |||||
Proceeds from Maturities and Principal Repayments of Securities Held to Maturity |
15,130 | 9,671 | ||||||
Purchase of Securities Held to Maturity |
(45,946 | ) | (19,834 | ) | ||||
Purchase of Bank Owned Life Insurance |
(101 | ) | (101 | ) | ||||
Net Increase in Loans |
(180,011 | ) | (48,649 | ) | ||||
Cash Used In Business Combinations |
(457 | ) | (269 | ) | ||||
Purchase of Bank Premises and Equipment |
(3,214 | ) | (3,636 | ) | ||||
Proceeds from the Sale of Bank Premises and Equipment |
| 37 | ||||||
Proceeds from the Sale of Other Real Estate Owned and Foreclosed Assets |
3,573 | 4,110 | ||||||
NET CASH USED IN INVESTING ACTIVITIES |
(138,369 | ) | (25,927 | ) | ||||
CASH FLOWS (USED IN) PROVIDED BY FINANCING ACTIVITIES: |
||||||||
Net Decrease in Time Deposits |
(22,173 | ) | (92,913 | ) | ||||
Net Increase in Other Deposits |
180,952 | 397,492 | ||||||
Net Increase(Decrease) in Federal Funds Purchased
and Assets Sold Under Repurchase Agreements |
15,047 | (11,976 | ) | |||||
Net Increase(Decrease) in Short Term Federal Home Loan Bank Advances |
856 | (60,000 | ) | |||||
Net Decrease in Long Term Federal Home Loan Bank Advances |
(45,000 | ) | | |||||
Net (Decrease)Increase in Treasury Tax & Loan Notes |
(409 | ) | 984 | |||||
Proceeds from Exercise of Stock Options |
3,701 | 360 | ||||||
Tax Benefit from Stock Option Exercises |
253 | 70 | ||||||
Restricted Shares Surrendered |
(361 | ) | (109 | ) | ||||
Tax Benefit from Deferred Compensation Distribution |
74 | | ||||||
Shares Issued Under Direct Stock Purchase Plan |
262 | | ||||||
Common Dividends Paid |
(7,882 | ) | (7,603 | ) | ||||
NET CASH PROVIDED BY FINANCING ACTIVITIES |
125,320 | 226,305 | ||||||
NET INCREASE IN CASH AND CASH EQUIVALENTS |
26,014 | 216,284 | ||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR |
161,282 | 121,905 | ||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
$ | 187,296 | $ | 338,189 | ||||
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES: |
||||||||
Transfer of Loans to Foreclosed Assets |
$ | 4,233 | $ | 7,411 |
7
8
9
June 30, 2011 | December 31, 2010 | |||||||||||||||||||||||||||||||||||||||
Gross | Unrealized | Other-Than- | Gross | Unrealized | Other-Than- | |||||||||||||||||||||||||||||||||||
Amortized | Unrealized | Losses | Temporary | Fair | Amortized | Unrealized | Losses | Temporary | Fair | |||||||||||||||||||||||||||||||
Cost | Gains | Other | Impairment | Value | Cost | Gains | Other | Impairment | Value | |||||||||||||||||||||||||||||||
(Dollars In Thousands) | (Dollars In Thousands) | |||||||||||||||||||||||||||||||||||||||
U.S. Treasury Securities |
$ | | $ | | $ | | $ | | $ | | $ | 715 | $ | 2 | $ | | $ | | $ | 717 | ||||||||||||||||||||
Agency Mortgage-Backed Securities |
235,088 | 16,288 | (4 | ) | | 251,372 | 296,821 | 16,481 | | | 313,302 | |||||||||||||||||||||||||||||
Agency Collateralized Mortgage Obligations |
37,888 | 626 | | | 38,514 | 45,426 | 779 | (70 | ) | | 46,135 | |||||||||||||||||||||||||||||
Private Mortgage-Backed Securities (1) (2) |
8,116 | | 2 | 8,118 | 10,408 | | | (154 | ) | 10,254 | ||||||||||||||||||||||||||||||
Single Issuer Trust Preferred Securities Issued by Banks |
5,000 | | (534 | ) | | 4,466 | 5,000 | | (779 | ) | | 4,221 | ||||||||||||||||||||||||||||
Pooled Trust Preferred Securities Issued by Banks and Insurers(1) |
8,521 | | (2,122 | ) | (2,974 | ) | 3,425 | 8,550 | | (2,309 | ) | (3,413 | ) | 2,828 | ||||||||||||||||||||||||||
TOTAL |
$ | 294,613 | $ | 16,914 | $ | (2,660 | ) | $ | (2,972 | ) | $ | 305,895 | $ | 366,920 | $ | 17,262 | $ | (3,158 | ) | $ | (3,567 | ) | $ | 377,457 | ||||||||||||||||
The amortized cost, gross unrealized holding gains and losses, other-than-temporary impairment
recorded in other comprehensive income, and fair value of securities held to maturity for the
periods below were as follows:
|
||||||||||||||||||||||||||||||||||||||||
June 30, 2011 | December 31, 2010 | |||||||||||||||||||||||||||||||||||||||
Gross | Unrealized | Other-Than- | Gross | Unrealized | Other-Than- | |||||||||||||||||||||||||||||||||||
Amortized | Unrealized | Losses | Temporary | Fair | Amortized | Unrealized | Losses | Temporary | Fair | |||||||||||||||||||||||||||||||
Cost | Gains | Other | Impairment | Value | Cost | Gains | Other | Impairment | Value | |||||||||||||||||||||||||||||||
(Dollars In Thousands) | (Dollars In Thousands) | |||||||||||||||||||||||||||||||||||||||
U.S. Treasury Securities |
$ | 1,015 | $ | | $ | (18 | ) | $ | | $ | 997 | $ | | $ | | $ | | $ | | $ | | |||||||||||||||||||
Agency Mortgage-Backed Securities |
128,122 | 2,215 | (1,069 | ) | | 129,268 | 95,697 | 1,348 | (1,778 | ) | | 95,267 | ||||||||||||||||||||||||||||
Agency Collateralized Mortgage Obligations |
84,150 | 1,105 | (44 | ) | | 85,211 | 89,823 | 600 | (1,691 | ) | | 88,732 | ||||||||||||||||||||||||||||
State, County, and Municipal Securities |
8,175 | 81 | | | 8,256 | 10,562 | 167 | | | 10,729 | ||||||||||||||||||||||||||||||
Single Issuer Trust Preferred Securities Issued by Banks |
11,647 | 88 | (54 | ) | | 11,681 | 6,650 | 19 | (163 | ) | | 6,506 | ||||||||||||||||||||||||||||
TOTAL |
$ | 233,109 | $ | 3,489 | $ | (1,185 | ) | $ | | $ | 235,413 | $ | 202,732 | $ | 2,134 | $ | (3,632 | ) | $ | | $ | 201,234 | ||||||||||||||||||
(1) | During the six months ended June 30, 2011 and the year ended December 31, 2010, the Company recorded gross changes on other-than-temporarily impaired (OTTI) securities of $419,000 and $497,000. Included in these amounts were losses of $595,000 and $831,000 which were reclassed to OCI as they were deemed to be non-credit related. | |
(2) | Included in the non-credit component of OTTI for this class of securities is an unrealized gain of $110,000, which resulted from the Company having previously recognized credit losses in excess of the unrealized losses in OCI. In such instances, credit losses recognized in earnings have been offset by an unrealized gain. |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(Dollars in Thousands) | ||||||||||||||||
Gross Gains on Available for Sale Securities |
$ | 723 | $ | 481 | $ | 723 | $ | 481 |
10
Available for Sale | Held to Maturity | |||||||||||||||
Amortized | Fair | Amortized | Fair | |||||||||||||
Cost | Value | Cost | Value | |||||||||||||
(Dollars in Thousands) | (Dollars in Thousands) | |||||||||||||||
Due in One Year or Less |
$ | | $ | | $ | 1,100 | $ | 1,110 | ||||||||
Due from One Year to Five Years |
3,490 | 3,620 | 9,785 | 9,913 | ||||||||||||
Due from Five to Ten Years |
70,425 | 74,872 | 4,831 | 4,956 | ||||||||||||
Due after Ten Years |
220,698 | 227,403 | 217,393 | 219,434 | ||||||||||||
TOTAL |
$ | 294,613 | $ | 305,895 | $ | 233,109 | $ | 235,413 | ||||||||
11
June 30, 2011 | ||||||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||
Description of Securities | # of holdings | Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||||
(Dollars In Thousands) | ||||||||||||||||||||||||||||
U.S. Treasury Securities |
1 | $ | 997 | $ | (18 | ) | $ | | $ | | $ | 997 | $ | (18 | ) | |||||||||||||
Agency Mortgage-Backed Securities |
6 | 47,796 | (1,073 | ) | | | 47,796 | (1,073 | ) | |||||||||||||||||||
Agency Collateralized Mortgage Obligations |
1 | 13,786 | (44 | ) | | | 13,786 | (44 | ) | |||||||||||||||||||
Single Issuer Trust Preferred Securities Issued by Banks and Insurers |
2 | 5,050 | (54 | ) | 4,466 | (534 | ) | 9,516 | (588 | ) | ||||||||||||||||||
Pooled Trust Preferred Securities Issued by Banks and Insurers |
2 | | | 2,530 | (2,122 | ) | 2,530 | (2,122 | ) | |||||||||||||||||||
TOTAL TEMPORARILY IMPAIRED SECURITIES |
12 | $ | 67,629 | $ | (1,189 | ) | $ | 6,996 | $ | (2,656 | ) | $ | 74,625 | $ | (3,845 | ) | ||||||||||||
December 31, 2010 | ||||||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||
Description of Securities | # of holdings | Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||||
(Dollars In Thousands) | ||||||||||||||||||||||||||||
U.S. Treasury Securities |
0 | $ | | $ | | $ | | $ | | $ | | $ | | |||||||||||||||
Agency Mortgage-Backed Securities |
4 | 48,956 | (1,778 | ) | | | 48,956 | (1,778 | ) | |||||||||||||||||||
Agency Collateralized Mortgage Obligations |
6 | 72,631 | (1,761 | ) | | | 72,631 | (1,761 | ) | |||||||||||||||||||
Single Issuer Trust Preferred Securities Issued by Banks and Insurers |
2 | 4,950 | (163 | ) | 4,221 | (779 | ) | 9,171 | (942 | ) | ||||||||||||||||||
Pooled Trust Preferred Securities Issued by Banks and Insurers |
2 | | | 2,364 | (2,309 | ) | 2,364 | (2,309 | ) | |||||||||||||||||||
TOTAL TEMPORARILY IMPAIRED SECURITIES |
14 | $ | 126,537 | $ | (3,702 | ) | $ | 6,585 | $ | (3,088 | ) | $ | 133,122 | $ | (6,790 | ) | ||||||||||||
| United States Treasury Securities: The unrealized loss on the Companys investment in U.S. Treasury securities is attributable to changes in interest rates and not due to credit deterioration, as these securities are implicitly guaranteed by the U.S. Government or one of its agencies. | ||
| Agency Mortgage-Backed Securities and Collateralized Mortgage Obligations: The unrealized loss on the Companys investment in these securities is attributable to changes in interest rates and not due to credit deterioration, as these securities are implicitly guaranteed by the U.S. Government or one of its agencies. | ||
| Single Issuer Trust Preferred Securities: This portfolio consists of two securities, both of which are below investment grade. The unrealized loss on these |
12
securities is attributable to the illiquid nature of the trust preferred market in the current economic environment. Management evaluates various financial metrics for each of the issuers, including capitalization rates. |
| Pooled Trust Preferred Securities: This portfolio consists of two below investment grade securities of which one is performing while the other is deferring payments as contractually allowed. The unrealized loss on these securities is attributable to the illiquid nature of the trust preferred market and the significant risk premiums required in the current economic environment. Management evaluates collateral credit and instrument structure, including current and expected deferral and default rates and timing. In addition, discount rates are determined by evaluating comparable spreads observed currently in the market for similar instruments. |
13
Total Cumulative | ||||||||||||||||||||||||||||
Non-Credit | Total Cumulative | Other-Than- | ||||||||||||||||||||||||||
Related Other- | Credit Related | Temporary | ||||||||||||||||||||||||||
Amortized | Gross Unrealized | Than-Temporary | Fair | Other-Than- | impairment | |||||||||||||||||||||||
Class | Cost (1) | Gain/(Loss) | Impairment | Value | Temporary Impairment | to date | ||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||
Pooled Trust Preferred Securities |
||||||||||||||||||||||||||||
Pooled Trust Preferred Security A |
C1 | $ | 1,283 | $ | | $ | (1,094 | ) | $ | 189 | $ | (3,676 | ) | $ | (4,770 | ) | ||||||||||||
Pooled Trust Preferred Security B |
D | | | | | (3,481 | ) | (3,481 | ) | |||||||||||||||||||
Pooled Trust Preferred Security C |
C1 | 505 | | (440 | ) | 65 | (482 | ) | (922 | ) | ||||||||||||||||||
Pooled Trust Preferred Security D |
D | | | | | (990 | ) | (990 | ) | |||||||||||||||||||
Pooled Trust Preferred Security E |
C1 | 2,081 | | (1,440 | ) | 641 | (1,367 | ) | (2,807 | ) | ||||||||||||||||||
Pooled Trust Preferred Security F |
B | 1,890 | (1,198 | ) | | 692 | | | ||||||||||||||||||||
Pooled Trust Preferred Security G |
A1 | 2,762 | (924 | ) | | 1,838 | | | ||||||||||||||||||||
TOTAL POOLED TRUST PREFERRED SECURITIES |
$ | 8,521 | $ | (2,122 | ) | $ | (2,974 | ) | $ | 3,425 | $ | (9,996 | ) | $ | (12,970 | ) | ||||||||||||
Private Mortgage-Backed Securities |
||||||||||||||||||||||||||||
Private Mortgage-Backed Securities One |
2A1 | $ | 3,872 | $ | | $ | (108 | ) | $ | 3,764 | $ | (623 | ) | $ | (731 | ) | ||||||||||||
Private Mortgage-Backed Securities Two |
A19 | 4,244 | | 110 | 4,354 | (85 | ) | 25 | ||||||||||||||||||||
TOTAL PRIVATE MORTGAGE-BACKED SECURITIES |
$ | 8,116 | $ | | $ | 2 | $ | 8,118 | $ | (708 | ) | $ | (706 | ) | ||||||||||||||
TOTAL |
$ | 16,637 | $ | (2,122 | ) | $ | (2,972 | ) | $ | 11,543 | $ | (10,704 | ) | $ | (13,676 | ) | ||||||||||||
(1) | For the securities deemed impaired, the amortized cost reflects previously recorded OTTI charges recognized in earnings. |
Number of Performing | Total Projected | Excess Subordination (After | ||||||||||||||||||||||
Banks and Insurance | Current | Defaults/Losses (as a | Taking into Account Best | |||||||||||||||||||||
Cos. in Issuances | Deferrals/Defaults/Losses | % of Performing | Estimate of Future | Lowest credit | ||||||||||||||||||||
Class | (Unique) | (As a % of Original Collateral) | Collateral) | Deferrals/Defaults/Losses) (1) | Ratings to date (2) | |||||||||||||||||||
Pooled Trust Preferred Securities |
||||||||||||||||||||||||
Trust Preferred Security A |
C1 | 59 | 37.29 | % | 25.54 | % | 0.00 | % | C | |||||||||||||||
Trust Preferred Security B |
D | 59 | 37.29 | % | 25.54 | % | 0.00 | % | C | |||||||||||||||
Trust Preferred Security C |
C1 | 49 | 36.65 | % | 23.79 | % | 0.00 | % | C | |||||||||||||||
Trust Preferred Security D |
D | 49 | 36.65 | % | 23.79 | % | 0.00 | % | C | |||||||||||||||
Trust Preferred Security E |
C1 | 51 | 27.74 | % | 18.17 | % | 0.00 | % | C | |||||||||||||||
Trust Preferred Security F |
B | 33 | 28.14 | % | 23.73 | % | 23.61 | % | CC | |||||||||||||||
Trust Preferred Security G |
A1 | 33 | 28.14 | % | 23.73 | % | 47.72 | % | CCC+ | |||||||||||||||
Private Mortgage-Backed Securities |
||||||||||||||||||||||||
Private Mortgage-Backed Securities One |
2A1 | N/A | 3.59 | % | 12.44 | % | 0.00 | % | C | |||||||||||||||
Private Mortgage-Backed Securities Two |
A19 | N/A | 2.10 | % | 4.94 | % | 0.00 | % | B3 |
(1) | Excess subordination represents the additional default/losses in excess of both current and projected defaults/losses that the security can absorb before the security experiences any credit impairment. | |
(2) | The Company reviewed credit ratings provided by S&P, Moodys and Fitch in its evaluation of issuers. |
14
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(Dollars in Thousands) | ||||||||||||||||
Credit Related OTTI |
$ | 136 | $ | 84 | $ | 176 | $ | 262 |
For the Six Months Ended June 30, 2011 | ||||
Credit Related | ||||
Component of | ||||
Other-Than- | ||||
Temporary | ||||
Impairment | ||||
(Dollars in Thousands) | ||||
Balance at Beginning of Period |
$ | (10,528 | ) | |
Add: |
||||
Incurred on Securities not Previously Impaired |
| |||
Incurred on Securities Previously Impaired |
(176 | ) | ||
Less: |
||||
Realized Gain/Loss on Sale of Securities |
| |||
Reclassification Due to Changes in Companys Intent |
| |||
Increases in Cash Flow Expected to be Collected |
| |||
BALANCE AT END OF PERIOD |
$ | (10,704 | ) | |
15
As of June 30, 2011 | ||||||||||||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||||||
Commercial and | Commercial Real | Commercial | Small | Residential Real | Consumer | Consumer | ||||||||||||||||||||||||||
Industrial | Estate | Construction | Business | Estate | Home Equity | Other | Total | |||||||||||||||||||||||||
Allowance for Loan Losses: |
||||||||||||||||||||||||||||||||
Beginning Balance |
$ | 10,423 | $ | 21,939 | $ | 2,145 | $ | 3,740 | $ | 2,915 | $ | 3,369 | $ | 1,724 | $ | 46,255 | ||||||||||||||||
Charge-offs |
(1,706 | ) | (1,144 | ) | (769 | ) | (584 | ) | (402 | ) | (579 | ) | (887 | ) | (6,071 | ) | ||||||||||||||||
Recoveries |
271 | | 75 | 54 | | 17 | 354 | 771 | ||||||||||||||||||||||||
Provision |
2,095 | 2,200 | 620 | (1,157 | ) | 729 | 906 | 289 | 5,682 | |||||||||||||||||||||||
Ending Balance |
$ | 11,083 | $ | 22,995 | $ | 2,071 | $ | 2,053 | $ | 3,242 | $ | 3,713 | $ | 1,480 | $ | 46,637 | ||||||||||||||||
Ending Balance: individually evaluated for impairment |
$ | 60 | $ | 478 | $ | | $ | 181 | $ | 1,281 | $ | 23 | $ | 255 | $ | 2,278 | ||||||||||||||||
Ending Balance: collectively evaluated for impairment |
$ | 11,023 | $ | 22,517 | $ | 2,071 | $ | 1,872 | $ | 1,961 | $ | 3,690 | $ | 1,225 | $ | 44,359 | ||||||||||||||||
Financing Receivables: |
||||||||||||||||||||||||||||||||
Ending Balance: total loans by group |
$ | 568,022 | $ | 1,801,026 | $ | 130,303 | $ | 78,905 | $ | 461,001 | $ | 632,735 | $ | 53,239 | $ | 3,725,231 | (1) | |||||||||||||||
Ending Balance: individually evaluated for impairment |
$ | 3,253 | $ | 25,189 | $ | 551 | $ | 3,172 | $ | 12,572 | $ | 484 | $ | 2,151 | $ | 47,372 | ||||||||||||||||
Ending Balance: collectively evaluated for impairment |
$ | 564,769 | $ | 1,775,837 | $ | 129,752 | $ | 75,733 | $ | 448,429 | $ | 632,251 | $ | 51,088 | $ | 3,677,859 | ||||||||||||||||
As of December 31, 2010 | ||||||||||||||||||||||||||||||||
Commercial and | Commercial Real | Commercial | Small | Residential Real | Consumer | Consumer | ||||||||||||||||||||||||||
Industrial | Estate | Construction | Business | Estate | Home Equity | Other | Total | |||||||||||||||||||||||||
Allowance for Loan Losses: |
||||||||||||||||||||||||||||||||
Beginning Balance |
$ | 7,545 | $ | 19,451 | $ | 2,457 | $ | 3,372 | $ | 2,840 | $ | 3,945 | $ | 2,751 | $ | 42,361 | ||||||||||||||||
Charge-offs |
(5,170 | ) | (3,448 | ) | (1,716 | ) | (2,279 | ) | (557 | ) | (939 | ) | (2,078 | ) | (16,187 | ) | ||||||||||||||||
Recoveries |
361 | 1 | | 217 | 59 | 131 | 657 | 1,426 | ||||||||||||||||||||||||
Provision |
7,687 | 5,935 | 1,404 | 2,430 | 573 | 232 | 394 | 18,655 | ||||||||||||||||||||||||
Ending Balance |
$ | 10,423 | $ | 21,939 | $ | 2,145 | $ | 3,740 | $ | 2,915 | $ | 3,369 | $ | 1,724 | $ | 46,255 | ||||||||||||||||
Ending Balance: individually evaluated for impairment |
$ | 511 | $ | 411 | $ | 151 | $ | 221 | $ | 991 | $ | 17 | $ | 245 | $ | 2,547 | ||||||||||||||||
Ending Balance: collectively evaluated for impairment |
$ | 9,912 | $ | 21,528 | $ | 1,994 | $ | 3,519 | $ | 1,924 | $ | 3,352 | $ | 1,479 | $ | 43,708 | ||||||||||||||||
Financing Receivables: |
||||||||||||||||||||||||||||||||
Ending Balance: total loans by group |
$ | 502,952 | $ | 1,717,118 | $ | 129,421 | $ | 80,026 | $ | 478,111 | $ | 579,278 | $ | 68,773 | $ | 3,555,679 | (1) | |||||||||||||||
Ending Balance: individually evaluated for impairment |
$ | 3,823 | $ | 26,665 | $ | 1,999 | $ | 2,494 | $ | 9,963 | $ | 428 | $ | 2,014 | $ | 47,386 | ||||||||||||||||
Ending Balance: collectively evaluated for impairment |
$ | 499,129 | $ | 1,690,453 | $ | 127,422 | $ | 77,532 | $ | 468,148 | $ | 578,850 | $ | 66,759 | $ | 3,508,293 | ||||||||||||||||
(1) | The amount of deferred fees included in the ending balance was $2.7 million and $2.8 million at June 30, 2011 and December 31, 2010, respectively. |
Commercial & Industrial Loans in this category consist of revolving and term loan obligations extended to business and corporate enterprises for the purpose of financing working capital and/or capital investment. Collateral generally consists of pledges of business assets including, but not limited to: accounts receivable, inventory, plant & equipment, or real estate, if applicable. Repayment sources consist of: primarily, operating cash flow, and secondarily, liquidation of assets. |
16
Real Estate Commercial Loans in this category consist of mortgage loans to finance investment in real property such as multi-family residential, commercial/retail, office, industrial, hotels, educational and healthcare facilities and other specific use properties. Loans are typically written with amortizing payment structures. Collateral values are determined based upon third party appraisals and evaluations. Loan to value ratios at origination are governed by established policy and regulatory guidelines. Repayment sources consist of: primarily, cash flow from operating leases and rents, and secondarily, liquidation of assets. |
Commercial Real Estate Construction Loans in this category consist of short-term construction loans, revolving and non-revolving credit lines and construction/permanent loans to finance the acquisition, development and construction or rehabilitation of real property. Project types include: residential 1-4 family condominium and multi-family homes, commercial/retail, office, industrial, hotels, educational and healthcare facilities and other specific use properties. Loans may be written with non-amortizing or hybrid payment structures depending upon the type of project. Collateral values are determined based upon third party appraisals and evaluations. Loan to value ratios at origination are governed by established policy and regulatory guidelines. Repayment sources vary depending upon the type of project and may consist of: sale or lease of units, operating cash flow or liquidation of other assets. |
Small Business Loans in this category consist of revolving, term loan and mortgage obligations extended to sole proprietors and small businesses for purposes of financing working capital and/or capital investment. Collateral generally consists of pledges of business assets including, but not limited to: accounts receivable, inventory, plant & equipment, or real estate (if applicable). Repayment sources consist of: primarily, operating cash flow, and secondarily, liquidation of assets. |
Consumer Real Estate Residential Residential mortgage loans held in the Banks portfolio are made to borrowers who demonstrate the ability to make scheduled payments with full consideration to underwriting factors such as current and expected income, employment status, current assets, other financial resources, credit history and the value of the collateral. Collateral consists of mortgage liens on 1-4 family residential properties. The Company does not originate sub-prime loans. |
Consumer Home Equity Home equity loans and lines are made to qualified individuals for legitimate purposes secured by senior or junior mortgage liens on owner-occupied 1-4 family homes, condominiums or vacation homes or on non-owner occupied 1-4 family homes with more restrictive loan to value requirements. Borrower qualifications include favorable credit history combined with supportive income requirements and combined loan to value ratios within established policy guidelines. |
17
Consumer Other Other consumer loan products including personal lines of credit and amortizing loans made to qualified individuals for various purposes such as education, auto loans, debt consolidation, personal expenses or overdraft protection. Borrower qualifications include favorable credit history combined with supportive income and collateral requirements within established policy guidelines. Consumer Other loans may be secured or unsecured. Auto loans collateral consists of liens on motor vehicles. |
18
19
June 30, 2011 | ||||||||||||||||||||||||
Risk | Commercial | Commercial | Commercial | |||||||||||||||||||||
Category | Rating | and Industrial | Real Estate | Construction | Small Business | Total | ||||||||||||||||||
Pass |
1 6 | $ | 516,671 | $ | 1,594,645 | $ | 114,847 | $ | 70,365 | $ | 2,296,528 | |||||||||||||
Potential Weakness |
7 | 26,064 | 120,360 | 9,371 | 4,751 | 160,546 | ||||||||||||||||||
Definite Weakness Loss Unlikely |
8 | 23,635 | 83,491 | 6,085 | 3,572 | 116,783 | ||||||||||||||||||
Partial Loss Probable |
9 | 1,652 | 2,530 | | 217 | 4,399 | ||||||||||||||||||
Definitive Loss |
10 | | | | | | ||||||||||||||||||
Total |
$ | 568,022 | $ | 1,801,026 | $ | 130,303 | $ | 78,905 | $ | 2,578,256 | ||||||||||||||
December 31, 2010 | ||||||||||||||||||||||||
Risk | Commercial | Commercial | Commercial | |||||||||||||||||||||
Category | Rating | and Industrial | Real Estate | Construction | Small Business | Total | ||||||||||||||||||
Pass |
1 6 | $ | 445,116 | $ | 1,496,822 | $ | 110,549 | $ | 70,987 | $ | 2,123,474 | |||||||||||||
Potential Weakness |
7 | 30,250 | 99,400 | 6,311 | 5,252 | 141,213 | ||||||||||||||||||
Definite Weakness Loss Unlikely |
8 | 25,864 | 117,850 | 12,561 | 3,533 | 159,808 | ||||||||||||||||||
Partial Loss Probable |
9 | 1,722 | 3,046 | | 254 | 5,022 | ||||||||||||||||||
Definitive Loss |
10 | | | | | | ||||||||||||||||||
Total |
$ | 502,952 | $ | 1,717,118 | $ | 129,421 | $ | 80,026 | $ | 2,429,517 | ||||||||||||||
As of | ||||||||
June 30, | December 31, | |||||||
2011 | 2010 | |||||||
Residential Portfolio |
||||||||
FICO Score (re-scored) |
737 | 738 | ||||||
Combined LTV (re-valued) |
65.0 | % | 64.0 | % | ||||
Home Equity Portfolio |
||||||||
FICO Score (re-scored) |
762 | 760 | ||||||
Combined LTV (re-valued) |
55.0 | % | 55.0 | % |
20
June 30, | December 31, | |||||||
2011 | 2010 | |||||||
(Dollars In Thousands) | ||||||||
Loans accounted for on a
nonaccrual basis (1) |
||||||||
Commercial and Industrial |
$ | 2,674 | $ | 3,123 | ||||
Commercial Real Estate |
6,455 | 7,837 | ||||||
Commercial Construction |
552 | 1,999 | ||||||
Small Business |
1,130 | 887 | ||||||
Residential Real Estate |
8,546 | 6,728 | ||||||
Home Equity |
1,867 | 1,752 | ||||||
Consumer Other |
447 | 505 | ||||||
Total nonaccrual loans |
$ | 21,671 | $ | 22,831 | ||||
(1) | Included in these amounts were $5.9 million and $4.0 million nonaccruing TDRs at June 30, 2011 and December 31, 2010, respectively. |
21
June 30, 2011 | ||||||||||||||||||||||||||||||||||||||||||||
Recorded | ||||||||||||||||||||||||||||||||||||||||||||
30-59 days | 60-89 days | 90 days or more | Total Past Due | Total | Investment | |||||||||||||||||||||||||||||||||||||||
Number | Principal | Number | Principal | Number | Principal | Number | Principal | Financing | >90 Days | |||||||||||||||||||||||||||||||||||
of Loans | Balance | of Loans | Balance | of Loans | Balance | of Loans | Balance | Current | Receivables | and Accruing | ||||||||||||||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||||||||||||||||||
Commercial and Industrial |
8 | $ | 877 | 7 | $ | 699 | 19 | $ | 1,951 | 34 | $ | 3,527 | $ | 564,495 | $ | 568,022 | $ | | ||||||||||||||||||||||||||
Commercial Real Estate |
16 | 3,464 | 6 | 1,548 | 25 | 4,574 | 47 | 9,586 | 1,791,440 | 1,801,026 | | |||||||||||||||||||||||||||||||||
Commercial Construction |
| | | | 3 | 551 | 3 | 551 | 129,752 | 130,303 | | |||||||||||||||||||||||||||||||||
Small Business |
29 | 1,075 | 12 | 190 | 19 | 110 | 60 | 1,375 | 77,530 | 78,905 | | |||||||||||||||||||||||||||||||||
Residential Real Estate |
13 | 2,515 | 8 | 2,926 | 27 | 4,267 | 48 | 9,708 | 444,889 | 454,597 | | |||||||||||||||||||||||||||||||||
Residential Construction |
| | | | | | | | 6,404 | 6,404 | | |||||||||||||||||||||||||||||||||
Home Equity |
22 | 845 | 12 | 1,145 | 16 | 981 | 50 | 2,971 | 629,764 | 632,735 | 110 | |||||||||||||||||||||||||||||||||
Consumer Other |
279 | 2,247 | 56 | 328 | 82 | 568 | 417 | 3,143 | 50,096 | 53,239 | 145 | |||||||||||||||||||||||||||||||||
Total |
367 | $ | 11,023 | 101 | $ | 6,836 | 191 | $ | 13,002 | 659 | $ | 30,861 | $ | 3,694,370 | $ | 3,725,231 | $ | 255 | ||||||||||||||||||||||||||
December 31,2010 | ||||||||||||||||||||||||||||||||||||||||||||
Recorded | ||||||||||||||||||||||||||||||||||||||||||||
30-59 days | 60-89 days | 90 days or more | Total Past Due | Total | Investment | |||||||||||||||||||||||||||||||||||||||
Number | Principal | Number | Principal | Number | Principal | Number | Principal | Financing | >90 Days | |||||||||||||||||||||||||||||||||||
of Loans | Balance | of Loans | Balance | of Loans | Balance | of Loans | Balance | Current | Receivables | and Accruing | ||||||||||||||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||||||||||||||||||
Commercial and Industrial |
16 | $ | 1,383 | 8 | $ | 910 | 18 | $ | 2,207 | 42 | $ | 4,500 | $ | 498,452 | $ | 502,952 | $ | | ||||||||||||||||||||||||||
Commercial Real Estate |
13 | 2,809 | 7 | 4,820 | 29 | 6,260 | 49 | 13,889 | 1,703,229 | 1,717,118 | | |||||||||||||||||||||||||||||||||
Commercial Construction |
| | | | 9 | 1,999 | 9 | 1,999 | 127,422 | 129,421 | | |||||||||||||||||||||||||||||||||
Small Business |
23 | 1,071 | 11 | 302 | 19 | 420 | 53 | 1,793 | 78,233 | 80,026 | | |||||||||||||||||||||||||||||||||
Residential Real Estate |
14 | 4,793 | 6 | 865 | 21 | 4,050 | 41 | 9,708 | 464,228 | 473,936 | | |||||||||||||||||||||||||||||||||
Residential Construction |
| | | | | | | | 4,175 | 4,175 | | |||||||||||||||||||||||||||||||||
Home Equity |
31 | 1,737 | 8 | 878 | 12 | 1,095 | 51 | 3,710 | 575,568 | 579,278 | 4 | |||||||||||||||||||||||||||||||||
Consumer Other |
402 | 2,986 | 89 | 478 | 85 | 564 | 576 | 4,028 | 64,745 | 68,773 | 273 | |||||||||||||||||||||||||||||||||
Total |
499 | $ | 14,779 | 129 | $ | 8,253 | 193 | $ | 16,595 | 821 | $ | 39,627 | $ | 3,516,052 | $ | 3,555,679 | $ | 277 | ||||||||||||||||||||||||||
22
June 30,2011 | ||||||||||||||||||||||||
TDRs on Accrual Status | TDRs on Nonaccrual Status | Total TDRs | ||||||||||||||||||||||
Number of | Balance of | Number of | Balance of | Number of | Balance of | |||||||||||||||||||
Loans | Loans | Loans | Loans | Loans | Loans | |||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||
Commercial and Industrial |
3 | $ | 167 | 5 | $ | 782 | 8 | $ | 949 | |||||||||||||||
Commercial Real Estate |
16 | 17,907 | 3 | 1,056 | 19 | 18,963 | ||||||||||||||||||
Small Business |
64 | 2,042 | 4 | 41 | 68 | 2,083 | ||||||||||||||||||
Residential Real Estate |
29 | 8,868 | 11 | 3,704 | 40 | 12,572 | ||||||||||||||||||
Home Equity |
5 | 300 | 2 | 184 | 7 | 484 | ||||||||||||||||||
Consumer Other |
173 | 2,009 | 7 | 142 | 180 | 2,151 | ||||||||||||||||||
TOTAL TDRs |
290 | $ | 31,293 | 32 | $ | 5,909 | 322 | $ | 37,202 | |||||||||||||||
December 31, 2010 | ||||||||||||||||||||||||
TDRs on Accrual Status | TDRs on Nonaccrual Status | Total TDRs | ||||||||||||||||||||||
Number of | Balance of | Number of | Balance of | Number of | Balance of | |||||||||||||||||||
Loans | Loans | Loans | Loans | Loans | Loans | |||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||
Commercial and Industrial |
10 | $ | 443 | 1 | $ | 555 | 11 | $ | 998 | |||||||||||||||
Commercial Real Estate |
14 | 13,679 | 4 | 1,468 | 18 | 15,147 | ||||||||||||||||||
Small Business |
49 | 1,523 | | | 49 | 1,523 | ||||||||||||||||||
Residential Real Estate |
25 | 8,329 | 6 | 1,634 | 31 | 9,963 | ||||||||||||||||||
Home Equity |
4 | 242 | 2 | 186 | 6 | 428 | ||||||||||||||||||
Consumer Other |
138 | 1,875 | 4 | 139 | 142 | 2,014 | ||||||||||||||||||
TOTAL TDRs |
240 | $ | 26,091 | 17 | $ | 3,982 | 257 | $ | 30,073 | |||||||||||||||
23
For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||||||||||
As of June 30, 2011 | June 30, 2011 | June 30, 2011 | ||||||||||||||||||||||||||
Unpaid | Average | Interest | Average | Interest | ||||||||||||||||||||||||
Recorded | Principal | Related | Recorded | Income | Recorded | Income | ||||||||||||||||||||||
Investment | Balance | Allowance | Investment | Recognized | Investment | Recognized | ||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||
With no Related Allowance Recorded: |
||||||||||||||||||||||||||||
Commercial & Industrial |
$ | 2,913 | $ | 3,653 | $ | | $ | 3,206 | $ | 58 | $ | 3,306 | $ | 117 | ||||||||||||||
Commercial Real Estate |
18,018 | 18,515 | | 18,291 | 334 | 18,474 | 645 | |||||||||||||||||||||
Commercial Construction |
551 | 551 | | 554 | 10 | 564 | 21 | |||||||||||||||||||||
Small Business |
1,884 | 2,014 | | 1,841 | 33 | 1,873 | 65 | |||||||||||||||||||||
Residential Real Estate (1) |
| | | | | | | |||||||||||||||||||||
Consumer Home Equity |
22 | 22 | | 22 | | 22 | 1 | |||||||||||||||||||||
Consumer Other |
10 | 10 | | 12 | | 17 | 1 | |||||||||||||||||||||
Subtotal |
23,398 | 24,765 | | 23,926 | 435 | 24,256 | 850 | |||||||||||||||||||||
With an Allowance Recorded: |
||||||||||||||||||||||||||||
Commercial & Industrial |
$ | 340 | $ | 343 | $ | 60 | $ | 342 | $ | 7 | $ | 343 | $ | 13 | ||||||||||||||
Commercial Real Estate |
7,171 | 7,911 | 478 | 7,326 | 91 | 7,377 | 215 | |||||||||||||||||||||
Commercial Construction |
| | | | | | | |||||||||||||||||||||
Small Business |
1,288 | 1,320 | 181 | 1,383 | 19 | 1,428 | 39 | |||||||||||||||||||||
Residential Real Estate (1) |
12,572 | 13,152 | 1,281 | 12,674 | 154 | 12,556 | 246 | |||||||||||||||||||||
Consumer Home Equity |
463 | 472 | 23 | 464 | 7 | 465 | 13 | |||||||||||||||||||||
Consumer Other |
2,140 | 2,200 | 255 | 2,137 | 21 | 2,049 | 40 | |||||||||||||||||||||
Subtotal |
23,974 | 25,398 | 2,278 | 24,326 | 299 | 24,218 | 566 | |||||||||||||||||||||
Total |
$ | 47,372 | $ | 50,163 | $ | 2,278 | $ | 48,252 | $ | 734 | $ | 48,474 | $ | 1,416 | ||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||||||||||
As of June 30, 2010 | June 30, 2010 | June 30, 2010 | ||||||||||||||||||||||||||
Unpaid | Average | Interest | Average | Interest | ||||||||||||||||||||||||
Recorded | Principal | Related | Recorded | Income | Recorded | Income | ||||||||||||||||||||||
Investment | Balance | Allowance | Investment | Recognized | Investment | Recognized | ||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||
With no Related Allowance Recorded: |
||||||||||||||||||||||||||||
Commercial & Industrial |
$ | 3,214 | $ | 4,880 | $ | | $ | 3,282 | $ | 75 | $ | 3,580 | $ | 145 | ||||||||||||||
Commercial Real Estate |
11,951 | 12,322 | | 12,417 | 220 | 12,595 | 435 | |||||||||||||||||||||
Commercial Construction |
1,075 | 2,625 | | 2,583 | 48 | 2,604 | 95 | |||||||||||||||||||||
Small Business |
1,491 | 1,537 | | 1,512 | 24 | 1,454 | 46 | |||||||||||||||||||||
Residential Real Estate (1) |
284 | 284 | | 284 | 2 | 285 | 5 | |||||||||||||||||||||
Consumer Home Equity |
| | | | | | | |||||||||||||||||||||
Consumer Other |
64 | 63 | | 64 | 1 | 63 | 2 | |||||||||||||||||||||
Subtotal |
18,079 | 21,711 | | 20,142 | 370 | 20,581 | 728 | |||||||||||||||||||||
With an Allowance Recorded: |
||||||||||||||||||||||||||||
Commercial & Industrial |
$ | 1,876 | $ | 1,883 | $ | 1,013 | $ | 1,886 | $ | 27 | $ | 1,890 | $ | 50 | ||||||||||||||
Commercial Real Estate |
3,906 | 3,906 | 201 | 4,041 | 46 | 4,076 | 92 | |||||||||||||||||||||
Commercial Construction |
| | | | | | | |||||||||||||||||||||
Small Business |
825 | 873 | 389 | 842 | 13 | 818 | 27 | |||||||||||||||||||||
Residential Real Estate (1) |
8,053 | 8,054 | 761 | 7,893 | 76 | 7,954 | 156 | |||||||||||||||||||||
Consumer Home Equity |
348 | 348 | 14 | 345 | 4 | 346 | 8 | |||||||||||||||||||||
Consumer Other |
1,519 | 1,518 | 180 | 1,377 | 15 | 1,186 | 27 | |||||||||||||||||||||
Subtotal |
16,527 | 16,582 | 2,558 | 16,384 | 181 | 16,270 | 360 | |||||||||||||||||||||
Total |
$ | 34,606 | $ | 38,293 | $ | 2,558 | $ | 36,526 | $ | 551 | $ | 36,851 | $ | 1,088 | ||||||||||||||
(1) | Includes residential construction loans. |
24
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(Dollars in Thousands) | (Dollars in Thousands) | |||||||||||||||
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS |
$ | 11,120 | $ | 8,030 | $ | 22,308 | $ | 17,257 | ||||||||
Weighted Average Shares | Weighted Average Shares | |||||||||||||||
BASIC SHARES |
21,441,864 | 20,964,706 | (1) | 21,370,457 | 20,951,264 | (1) | ||||||||||
Effect of Dilutive Securities |
39,159 | 90,939 | 43,775 | 83,289 | ||||||||||||
DILUTIVE SHARES |
21,481,023 | 21,055,645 | 21,414,232 | 21,034,553 | ||||||||||||
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS PER SHARE |
||||||||||||||||
BASIC EPS |
$ | 0.52 | $ | 0.38 | $ | 1.04 | $ | 0.82 | ||||||||
Effect of Dilutive Securities |
| | | | ||||||||||||
DILUTIVE EPS |
$ | 0.52 | $ | 0.38 | $ | 1.04 | $ | 0.82 | ||||||||
(1) | Unvested restricted stock awards were not considered outstanding in the computation of basic earnings per share due to the immaterial balance for the three and six months ended June 30, 2010. |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Stock Options |
808,918 | 745,581 | 793,675 | 744,221 |
25
| February 10, 2011 the Company granted 27,750 restricted stock awards to certain non-executive officers of the Company and/or Bank. These restricted stock awards were issued from the 2005 Employee Stock Plan, were determined to have a fair value per share of $27.58 and vest over a five year period. | ||
| February 17, 2011 the Company granted 33,000 restricted stock awards to certain executive officers of the Company and/or Bank. These restricted stock awards were issued from the 2005 Employee Stock Plan, were determined to have a fair value per share of $27.43 and vest over a five year period. | ||
| May 3, 2011- the Company granted 3,000 restricted stock awards to a non-executive officer of the Company and/or Bank. These restricted stock awards were issued from the 2005 Employee Stock Plan, were determined to have a fair value per share of $29.00 and vest over a five year period. | ||
| May 24, 2011 the Company granted 9,800 restricted stock awards to certain directors of the Company and/or Bank. These restricted stock awards were issued from the 2010 Non-Employee Director Stock Plan, were determined to have a fair value per share of $28.875 and vest at the end of a five year period, or earlier if the director ceases to be a director for any reason other than cause, such as, for example, by retirement. If a non-employee director is removed from the Board for cause, the Company has ninety (90) days within which to exercise a right to repurchase any unvested portion of any restricted stock award from the non-employee director for the aggregate price of one dollar ($1.00). |
| February 10, 2011 the Company awarded 40,000 non-qualified options to certain non-executive officers of the Company and/or Bank. The options have |
26
been determined to have a fair value of $6.80 and will vest over a three year period and have a contractual life of ten years from date of grant. | |||
| February 17, 2011 the Company awarded 54,000 non-qualified options to certain executive officers of the Company and/or Bank. The options have been determined to have a fair value of $6.39 and will vest over a three year period and have a contractual life of ten years from date of grant. | ||
| On May 24, 2011 the Company awarded 7,000 non-qualified options to certain directors of the Company and/or Bank. The options have been determined to have a fair value of $6.723, will vest over a three year period ending on January 1, 2013 and have a contractual life of ten years from date of grant. |
February 10, | February 17, | May 24, | ||||||||||
2011 | 2011 | 2011 | ||||||||||
Volatility |
32.38 | % | 32.11 | % | 32.95 | % | ||||||
Expected Life |
5.5 Years | 5 Years | 5 Years | |||||||||
Dividend Yield |
2.90 | % | 2.89 | % | 2.87 | % | ||||||
Risk Free Interest Rate |
2.57 | % | 2.27 | % | 1.81 | % |
27
Receive | Fair Value at | |||||||||||||||||||||||
Notional | Trade | Effective | Maturity | (Variable) | Current Rate | Pay Fixed | June 30, | |||||||||||||||||
Amount | Date | Date | Date | Index | Received | Swap Rate | 2011 | |||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||
Interest Rate Swaps |
||||||||||||||||||||||||
$ | 25,000 | 16-Feb-06 | 28-Dec-06 | 28-Dec-16 | 3 Month LIBOR | 0.25 | % | 5.04 | % | $ | (3,853 | ) | ||||||||||||
25,000 | 16-Feb-06 | 28-Dec-06 | 28-Dec-16 | 3 Month LIBOR | 0.25 | % | 5.04 | % | (3,854 | ) | ||||||||||||||
25,000 | 8-Dec-08 | 10-Dec-08 | 10-Dec-13 | 3 Month LIBOR | 0.25 | % | 2.65 | % | (1,090 | ) | ||||||||||||||
25,000 | 9-Dec-08 | 10-Dec-08 | 10-Dec-13 | 3 Month LIBOR | 0.25 | % | 2.59 | % | (1,054 | ) | ||||||||||||||
25,000 | 9-Dec-08 | 10-Dec-08 | 10-Dec-18 | 3 Month LIBOR | 0.25 | % | 2.94 | % | (475 | ) | ||||||||||||||
50,000 | 17-Nov-09 | 20-Dec-10 | 20-Dec-14 | 3 Month LIBOR | 0.25 | % | 3.04 | % | (2,967 | ) | ||||||||||||||
25,000 | 5-May-11 | 10-Jun-11 | 10-Jun-15 | 3 Month LIBOR | 0.25 | % | 1.71 | % | (168 | ) | ||||||||||||||
Total |
$ | 200,000 | Total |
$ | (13,461 | ) | ||||||||||||||||||
Receive | Fair Value at | |||||||||||||||||||||||
Notional | Trade | Effective | Maturity | (Variable) | Current Rate | Pay Fixed | December 31, | |||||||||||||||||
Amount | Date | Date | Date | Index | Received | Swap Rate | 2010 | |||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||
Interest Rate Swaps |
||||||||||||||||||||||||
$ | 25,000 | 16-Feb-06 | 28-Dec-06 | 28-Dec-16 | 3 Month LIBOR | 0.30 | % | 5.04 | % | $ | (3,713 | ) | ||||||||||||
25,000 | 16-Feb-06 | 28-Dec-06 | 28-Dec-16 | 3 Month LIBOR | 0.30 | % | 5.04 | % | (3,682 | ) | ||||||||||||||
25,000 | 8-Dec-08 | 10-Dec-08 | 10-Dec-13 | 3 Month LIBOR | 0.30 | % | 2.65 | % | (1,044 | ) | ||||||||||||||
25,000 | 9-Dec-08 | 10-Dec-08 | 10-Dec-13 | 3 Month LIBOR | 0.30 | % | 2.59 | % | (1,002 | ) | ||||||||||||||
25,000 | 9-Dec-08 | 10-Dec-08 | 10-Dec-18 | 3 Month LIBOR | 0.30 | % | 2.94 | % | (109 | ) | ||||||||||||||
50,000 | 17-Nov-09 | 20-Dec-10 | 20-Dec-14 | 3 Month LIBOR | 0.30 | % | 3.04 | % | (2,656 | ) | ||||||||||||||
Total |
$ | 175,000 | Total |
$ | (12,206 | ) | ||||||||||||||||||
28
29
Notional Amount Maturing | ||||||||||||||||||||||||||||
As of June 30, 2011 | 2011 | 2012 | 2013 | 2014 | Thereafter | Total | Fair Value | |||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||
Customer Related Positions |
||||||||||||||||||||||||||||
Loan Level Swaps |
||||||||||||||||||||||||||||
Receive fixed, pay variable |
$ | | | 20,411 | 81,649 | 244,166 | $ | 346,226 | $ | 11,798 | ||||||||||||||||||
Pay fixed, receive variable |
$ | | | 20,411 | 81,649 | 244,166 | $ | 346,226 | $ | (11,906 | ) | |||||||||||||||||
Foreign Exchange Contracts |
||||||||||||||||||||||||||||
Buys foreign exchange, sells US currency |
$ | 23,723 | 7,509 | | | | $ | 31,232 | $ | 778 | ||||||||||||||||||
Buys US currency, sells foreign exchange |
$ | 23,723 | 7,509 | | | | $ | 31,232 | $ | (765 | ) |
Notional Amount Maturing | ||||||||||||||||||||||||||||
As of December 31, 2010 | 2011 | 2012 | 2013 | 2014 | Thereafter | Total | Fair Value | |||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||
Customer Related Positions |
||||||||||||||||||||||||||||
Loan Level Swaps |
||||||||||||||||||||||||||||
Receive fixed, pay variable |
$ | | | 21,624 | 83,051 | 202,275 | $ | 306,950 | $ | 7,673 | ||||||||||||||||||
Pay fixed, receive variable |
$ | | | 21,624 | 83,051 | 202,275 | $ | 306,950 | $ | (7,835 | ) | |||||||||||||||||
Foreign Exchange Contracts |
||||||||||||||||||||||||||||
Buys foreign exchange, sells US currency |
$ | 41,706 | | | | | $ | 41,706 | $ | 1,301 | ||||||||||||||||||
Buys US currency, sells foreign exchange |
$ | 41,706 | | | | | $ | 41,706 | $ | (1,286 | ) |
30
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||
June 30, | December 31, | June 30, | December 31, | |||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||
Balance Sheet | Balance Sheet | Balance Sheet | Balance Sheet | |||||||||||||||||||||
Location | Fair Value | Location | Fair Value | Location | Fair Value | Location | Fair Value | |||||||||||||||||
(Dollars In Thousands) | ||||||||||||||||||||||||
Derivatives designated as hedges: |
||||||||||||||||||||||||
Interest rate swaps |
Other Assets | $ | | Other Assets | $ | | Other Liabilities | $ | 13,461 | Other Liabilities | $ | 12,206 | ||||||||||||
Derivatives not designated as hedges: |
||||||||||||||||||||||||
Customer Related Positions: |
||||||||||||||||||||||||
Loan level swaps |
Other Assets | $ | 12,231 | Other Assets | $ | 9,813 | Other Liabilities | $ | 12,339 | Other Liabilities | $ | 9,975 | ||||||||||||
Foreign exchange contracts |
Other Assets | 861 | Other Assets | 1,655 | Other Liabilities | 847 | Other Liabilities | 1,640 | ||||||||||||||||
Total |
$ | 13,092 | $ | 11,468 | $ | 13,186 | $ | 11,615 | ||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Gain/(Loss) in OCI on Derivative (Effective
Portion), Net of Tax |
$ | (2,711 | ) | $ | 9,172 | $ | (2,407 | ) | $ | 6,943 | ||||||
Gain/(Loss) Reclassified from OCI into
Interest Income (Effective Portion) |
$ | (1,366 | ) | $ | 3,046 | $ | (2,692 | ) | $ | 1,978 | ||||||
Gain/(Loss) Recognized in Interest Income on
Derivative (Ineffective Portion & Amount
Excluded from Effectiveness Testing) |
$ | | $ | | $ | | $ | | ||||||||
31
32
Fair Value at | ||||||||
June 30, | December 31, | |||||||
2011 | 2010 | |||||||
(Dollars in Thousands) | ||||||||
Interest Rate Lock Commitments |
$ | (27 | ) | $ | (459 | ) | ||
Forward Sales Agreements |
$ | (27 | ) | $ | 1,052 | |||
Loans Held for Sale Fair Value Adjustment |
$ | 53 | $ | (593 | ) |
Change for the Three Months | Change for the Six Months | |||||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Interest Rate Lock Commitments |
$ | (3 | ) | $ | 463 | $ | 432 | $ | 1,050 | |||||||
Forward Sales Agreements |
(5 | ) | (792 | ) | (1,079 | ) | (1,514 | ) | ||||||||
Loans Held for Sale Fair Value Adjustment |
8 | | 647 | | ||||||||||||
Total Change in Fair Value (1) |
$ | | $ | (329 | ) | $ | | $ | (464 | ) | ||||||
(1) | Changes in these fair values are recorded as a component of Mortgage Banking Income. |
33
34
35
36
Fair Value Measurements at Reporting Date Using | ||||||||||||||||
Quoted Prices | ||||||||||||||||
in Active | Significant | |||||||||||||||
Markets for | Other | Significant | ||||||||||||||
Identical | Observable | Unobservable | ||||||||||||||
Assets | Inputs | Inputs | ||||||||||||||
Balance | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
(Dollars in Thousands) | ||||||||||||||||
June 30, 2011 |
||||||||||||||||
Description |
||||||||||||||||
Assets |
||||||||||||||||
Trading Securities |
$ | 8,539 | $ | 8,539 | $ | | $ | | ||||||||
Securities Available for Sale: |
||||||||||||||||
U.S. Treasury Securities |
| | | | ||||||||||||
Agency Mortgage-Backed Securities |
251,372 | | 251,372 | | ||||||||||||
Agency Collateralized Mortgage Obligations |
38,514 | | 38,514 | | ||||||||||||
Private Mortgage-Backed Securities |
8,118 | | | 8,118 | ||||||||||||
Single Issuer Trust Preferred Securities Issued by Banks and Insurers |
4,466 | | | 4,466 | ||||||||||||
Pooled Trust Preferred Securities Issued by Banks and Insurers |
3,425 | | | 3,425 | ||||||||||||
Loans Held for Sale |
12,255 | | 12,255 | | ||||||||||||
Derivative Instruments |
13,092 | | 13,092 | | ||||||||||||
Liabilities |
||||||||||||||||
Derivative Instruments |
26,700 | | 26,700 | | ||||||||||||
December 31, 2010 |
||||||||||||||||
Description |
||||||||||||||||
Assets |
||||||||||||||||
Trading Securities |
$ | 7,597 | $ | 7,597 | $ | | $ | | ||||||||
Securities Available for Sale: |
||||||||||||||||
U.S. Treasury Securities |
717 | | 717 | | ||||||||||||
Agency Mortgage-Backed Securities |
313,302 | | 313,302 | | ||||||||||||
Agency Collateralized Mortgage Obligations |
46,135 | | 46,135 | | ||||||||||||
Private Mortgage-Backed Securities |
10,254 | | | 10,254 | ||||||||||||
Single Issuer Trust Preferred Securities Issued by Banks and Insurers |
4,221 | | | 4,221 | ||||||||||||
Pooled Trust Preferred Securities Issued by Banks and Insurers |
2,828 | | | 2,828 | ||||||||||||
Loans Held for Sale |
27,917 | | 27,917 | | ||||||||||||
Derivative Instruments |
12,520 | | 12,520 | | ||||||||||||
Liabilities |
||||||||||||||||
Derivative Instruments |
24,280 | | 24,280 | |
37
Reconciliation for All Assets and Liabilities Measured at Fair Value on | ||||||||||||||||
a Recurring Basis Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||
Securities Available for Sale | ||||||||||||||||
Private | ||||||||||||||||
Pooled Trust | Single Trust | Mortgage- | ||||||||||||||
Preferred | Preferred | Backed | ||||||||||||||
Securities | Securities | Securities | Total | |||||||||||||
(Dollars in Thousands) | ||||||||||||||||
Balance at March 31, 2011 |
$ | 3,136 | $ | 4,462 | $ | 9,012 | $ | 16,610 | ||||||||
Gains and Losses (realized/unrealized) |
||||||||||||||||
Included in earnings |
| | (136 | ) | (136 | ) | ||||||||||
Included in Other Comprehensive Income |
300 | 4 | (5 | ) | 299 | |||||||||||
Purchases |
| | | | ||||||||||||
Issuances |
| | | | ||||||||||||
Settlements |
(11 | ) | | (753 | ) | (764 | ) | |||||||||
Transfers in to Level 3 |
| | | | ||||||||||||
Balance at June 30, 2011 |
$ | 3,425 | $ | 4,466 | $ | 8,118 | $ | 16,009 | ||||||||
Balance at January 1, 2010 |
$ | 2,595 | $ | 3,010 | $ | 14,289 | $ | 19,894 | ||||||||
Gains and Losses (realized/unrealized) |
||||||||||||||||
Included in earnings |
(112 | ) | | (222 | ) | (334 | ) | |||||||||
Included in Other Comprehensive Income |
388 | 1,211 | 1,197 | 2,796 | ||||||||||||
Purchases |
| | | | ||||||||||||
Issuances |
| | | | ||||||||||||
Settlements |
(43 | ) | | (5,010 | ) | (5,053 | ) | |||||||||
Transfers in to Level 3 |
| | | | ||||||||||||
Balance at December 31, 2010 |
$ | 2,828 | $ | 4,221 | $ | 10,254 | $ | 17,303 | ||||||||
Gains and Losses (realized/unrealized) |
||||||||||||||||
Included in earnings |
(8 | ) | | (168 | ) | (176 | ) | |||||||||
Included in Other Comprehensive Income |
625 | 245 | 156 | 1,026 | ||||||||||||
Purchases |
| | | | ||||||||||||
Issuances |
| | | | ||||||||||||
Settlements |
(20 | ) | | (2,124 | ) | (2,144 | ) | |||||||||
Transfers in to Level 3 |
| | | | ||||||||||||
Balance at June 30, 2011 |
$ | 3,425 | $ | 4,466 | $ | 8,118 | $ | 16,009 | ||||||||
38
Fair Value Measurements at Reporting Date | ||||||||||||||||||||
Using | ||||||||||||||||||||
Quoted | ||||||||||||||||||||
Prices in | ||||||||||||||||||||
Active | Significant | |||||||||||||||||||
Markets for | Other | Significant | ||||||||||||||||||
Identical | Observable | Unobservable | Total | |||||||||||||||||
Assets | Inputs | Inputs | Gains | |||||||||||||||||
Balance | (Level 1) | (Level 2) | (Level 3) | (Losses) | ||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||
As of June 30, 2011 |
||||||||||||||||||||
Description |
||||||||||||||||||||
Impaired Loans |
$ | 23,973 | $ | | $ | | $ | 23,973 | $ | (2,278 | ) | |||||||||
Other Real Estate Owned |
7,410 | | 3,301 | 4,109 | | |||||||||||||||
Mortgage Servicing Asset |
1,412 | | | 1,412 | | |||||||||||||||
As of December 31, 2010 |
||||||||||||||||||||
Description |
||||||||||||||||||||
Impaired Loans |
$ | 23,411 | $ | | $ | | $ | 23,411 | $ | (2,547 | ) | |||||||||
Other Real Estate Owned |
7,273 | | 2,933 | 4,340 | | |||||||||||||||
Mortgage Servicing Asset |
1,635 | | | 1,635 | |
June 30, | December 31, | |||||||||||||||
2011 | 2010 | |||||||||||||||
BOOK | FAIR | BOOK | FAIR | |||||||||||||
VALUE | VALUE | VALUE | VALUE | |||||||||||||
(Dollars In Thousands) | (Dollars In Thousands) | |||||||||||||||
FINANCIAL ASSETS |
||||||||||||||||
Securities Held To Maturity (a) |
$ | 233,109 | $ | 235,413 | $ | 202,732 | $ | 201,234 | ||||||||
Loans, Net of Allowance for Loan Losses (b) |
3,678,594 | 3,694,475 | 3,509,424 | 3,554,761 | ||||||||||||
FINANCIAL LIABILITIES |
||||||||||||||||
Time Certificates of Deposits ( c) |
$ | 671,003 | $ | 679,195 | $ | 693,176 | $ | 697,064 | ||||||||
Federal Home Loan Bank Advances ( c) |
258,012 | 251,326 | 302,414 | 297,740 | ||||||||||||
Federal Funds Purchased and Assets |
||||||||||||||||
Sold Under Repurchase Agreements ( c) |
183,166 | 186,084 | 168,119 | 171,702 | ||||||||||||
Junior Subordinated Debentures (d) |
61,857 | 60,311 | 61,857 | 60,796 | ||||||||||||
Subordinated Debentures ( c) |
30,000 | 23,329 | 30,000 | 23,655 |
(a) | The fair values presented are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments and/or discounted cash flow analyses. | |
(b) | Fair value is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities or cash flows. | |
(c) | Fair value was determined by discounting anticipated future cash payments using rates currently available for instruments with similar remaining maturities. | |
(d) | Fair value was determined based upon market prices of securities with similar terms and maturities. |
39
Three Months Ended June 30, 2011 | Six Months Ended June 30, 2011 | ||||||||||||||||||||||||
Pre Tax | Tax Expense | After Tax | Pre Tax | Tax Expense | After Tax | ||||||||||||||||||||
Amount | (Benefit) | Amount | Amount | (Benefit) | Amount | ||||||||||||||||||||
(Dollars in Thousands) | (Dollars in Thousands) | ||||||||||||||||||||||||
Change in Fair Value of Securities Available for Sale |
$ | (2,343 | ) | $ | 907 | $ | 1,436 | $ | (1,292 | ) | $ | 520 | $ | 772 | |||||||||||
Net Security Losses Reclassified into Earnings |
587 | (1) | (230 | ) | (357 | ) | 547 | (1) | (214 | ) | (333 | ) | |||||||||||||
Net Change in Fair Value of Securities Available for Sale |
(1,756 | ) | 677 | 1,079 | (745 | ) | 306 | 439 | |||||||||||||||||
Change in Fair Value of Cash Flow Hedges |
4,583 | (2) | (1,872 | ) | (2,711 | ) | 4,069 | (2) | (1,662 | ) | (2,407 | ) | |||||||||||||
Net Cash Flow Hedge Gains Reclassified into Earnings |
(1,365 | ) | 558 | 807 | (2,597 | ) | 1,100 | 1,497 | |||||||||||||||||
Net Change in Fair Value of Cash Flow Hedges |
3,218 | (1,314 | ) | (1,904 | ) | 1,472 | (562 | ) | (910 | ) | |||||||||||||||
Amortization of Certain Costs Included in Net Periodic
Retirement Costs |
(154 | ) | 63 | 91 | (341 | ) | 89 | 252 | |||||||||||||||||
Total Other Comprehensive Income |
$ | 1,308 | $ | (574 | ) | $ | (734 | ) | $ | 386 | $ | (167 | ) | $ | (219 | ) | |||||||||
Three Months Ended June 30, 2010 | Six Months Ended June 30, 2010 | ||||||||||||||||||||||||
Pre Tax | Tax Expense | After Tax | Pre Tax | Tax Expense | After Tax | ||||||||||||||||||||
Amount | (Benefit) | Amount | Amount | (Benefit) | Amount | ||||||||||||||||||||
(Dollars in Thousands) | (Dollars in Thousands) | ||||||||||||||||||||||||
Change in Fair Value of Securities Available for Sale |
$ | 5,207 | $ | 2,014 | $ | 3,193 | $ | 7,530 | $ | 2,918 | $ | 4,612 | |||||||||||||
Net Security Losses Reclassified into Earnings |
(397 | )(1) | (138 | ) | (259 | ) | (219 | ) (1) | (65 | ) | (154 | ) | |||||||||||||
Net Change in Fair Value of Securities Available for Sale |
(4,810 | ) | 1,876 | 2,934 | 7,311 | 2,853 | 4,458 | ||||||||||||||||||
Change in Fair Value of Cash Flow Hedges |
(7,968 | )(2) | (3,255 | ) | (4,713 | ) | (11,738 | ) (2) | (4,795 | ) | (6,943 | ) | |||||||||||||
Net Cash Flow Hedge Gains Reclassified into Earnings |
1,101 | 450 | 651 | 1,978 | 819 | 1,159 | |||||||||||||||||||
Net Change in Fair Value of Cash Flow Hedges |
6,867 | (2,805 | ) | (4,062 | ) | (9,760 | ) | (3,976 | ) | (5,784 | ) | ||||||||||||||
Amortization of Certain Costs Included in Net Periodic
Retirement Costs |
39 | 16 | 23 | 78 | 32 | 46 | |||||||||||||||||||
Total Other Comprehensive Loss |
$ | (2,018 | ) | $ | (913 | ) | $ | (1,105 | ) | $ | (2,371 | ) | $ | (1,091 | ) | $ | (1,280 | ) | |||||||
(1) | Net security losses represent pre-tax OTTI credit related losses of $136,000 and $84,000 for the three months ended June 30, 2011 and 2010, respectively and gains on sales of securities of $723,000 and $481,000 for the three months ended June 30, 2011 and 2010, respectively. For the six months ended June 30, 2011 and 2010, net security losses represent pre-tax OTTI credit related losses of $176,000 and $262,000 and gains on sales of securities of $723,000 and $481,000, respectively. | |
(2) | Includes the remaining balance of a realized but unrecognized gain, net of tax , from the termination of interest rate swaps in June 2009. The original gain of $1.3 million, net of tax will be recognized in earnings through December 2018, the original maturity date of the swap. The balance of this gain had amortized to $1.1 million and $1.2 million at June 30, 2011 and 2010, respectively. |
At June 30, | ||||||||
2011 | 2010 | |||||||
Unrealized gain on securities available for sale |
$ | 6,744 | $ | 8,851 | ||||
Net actuarial loss and prior service cost for
pension and other
post retirement benefit plans |
(842 | ) | (1,166 | ) | ||||
Unrealized loss on cash flow hedge |
(7,963 | ) | (7,432 | ) | ||||
Deferred gain on hedge accounting transactions |
1,076 | 1,220 | ||||||
Total |
$ | (985 | ) | $ | 1,473 | |||
40
| a weakening in the United States economy in general and the regional and local economies within the New England region and Massachusetts, which could result in a deterioration of credit quality, a change in the allowance for loan losses, or a reduced demand for the Companys credit or fee-based products and services; | ||
| adverse changes in the local real estate market could result in a deterioration of credit quality and an increase in the allowance for loan loss, as most of the Companys loans are concentrated in eastern Massachusetts and Cape Cod, and to a lesser extent, Rhode Island, and a substantial portion of these loans have real estate as collateral; |
41
| the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System, could affect the Companys business environment or affect the Companys operations; | ||
| the effects of, any changes in, and any failure by the Company to comply with tax laws generally and requirements of the federal New Markets Tax Credit program in particular could adversely affect the Companys tax provision and its financial results; | ||
| inflation, interest rate, market and monetary fluctuations could reduce net interest income and could increase credit losses; | ||
| adverse changes in asset quality could result in increasing credit risk-related losses and expenses; | ||
| changes in the deferred tax asset valuation allowance in future periods may adversely affect financial results; | ||
| competitive pressures could intensify and affect the Companys profitability, including continued industry consolidation, the increased financial services provided by non-banks and banking reform; | ||
| a deterioration in the conditions of the securities markets could adversely affect the value or credit quality of the Companys assets, the availability and terms of funding necessary to meet the Companys liquidity needs, and the Companys ability to originate loans and could lead to impairment in the value of securities in the Companys investment portfolios, having an adverse effect on the Companys earnings; | ||
| the potential need to adapt to changes in information technology could adversely impact the Companys operations and require increased capital spending; | ||
| changes in consumer spending and savings habits could negatively impact the Companys financial results; | ||
| acquisitions may not produce results at levels or within time frames originally anticipated and may result in unforeseen integration issues or impairment of goodwill and/or other intangibles; | ||
| new laws and regulations regarding the financial services industry including, but not limited to, the Dodd-Frank Wall Street Reform & Consumer Protection Act, may have significant effects on the financial services industry in general, and/or the Company in particular, the exact nature and extent of which is uncertain; |
42
| changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) generally applicable to the Companys business could adversely affect the Companys operations; and | ||
| changes in accounting policies, practices and standards, as may be adopted by the regulatory agencies as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board, and other accounting standard setters, could negatively impact the Companys financial results. |
43
Three Months Ended | ||||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
2011 | 2011 | 2010 | 2010 | 2010 | ||||||||||||||||
(Dollars in Thousands, Except Per Share Data) | ||||||||||||||||||||
FINANCIAL CONDITION DATA: |
||||||||||||||||||||
Securities available for sale |
$ | 305,895 | $ | 341,362 | $ | 377,457 | $ | 436,887 | $ | 482,989 | ||||||||||
Securities held to maturity |
233,109 | 239,305 | 202,732 | 180,623 | 103,463 | |||||||||||||||
Loans |
3,725,231 | 3,628,374 | 3,555,679 | 3,408,043 | 3,428,912 | |||||||||||||||
Allowance for loan losses |
46,637 | 46,444 | 46,255 | 45,619 | 45,291 | |||||||||||||||
Goodwill and Core Deposit Intangibles |
141,489 | 141,951 | 141,956 | 142,422 | 142,888 | |||||||||||||||
Total assets |
4,842,943 | 4,645,783 | 4,695,738 | 4,703,791 | 4,740,975 | |||||||||||||||
Total deposits |
3,786,562 | 3,584,926 | 3,627,783 | 3,617,158 | 3,679,873 | |||||||||||||||
Total borrowings |
535,670 | 556,718 | 565,434 | 577,429 | 576,146 | |||||||||||||||
Stockholders equity |
455,702 | 447,985 | 436,472 | 425,661 | 422,062 | |||||||||||||||
Non-performing loans |
21,926 | 23,397 | 23,108 | 24,687 | 23,678 | |||||||||||||||
Non-performing assets |
30,963 | 33,856 | 31,493 | 34,789 | 32,083 | |||||||||||||||
OPERATING DATA: |
||||||||||||||||||||
Interest income |
$ | 49,474 | $ | 48,958 | $ | 49,971 | $ | 50,588 | $ | 51,319 | ||||||||||
Interest expense |
7,398 | 7,485 | 8,582 | 9,391 | 10,152 | |||||||||||||||
Net interest income |
42,076 | 41,473 | 41,389 | 41,197 | 41,167 | |||||||||||||||
Provision for loan losses |
3,482 | 2,200 | 3,575 | 3,500 | 6,931 | |||||||||||||||
Non-interest income |
13,474 | 12,598 | 14,263 | 11,654 | 10,938 | |||||||||||||||
Non-interest expenses |
36,856 | 36,482 | 36,688 | 34,540 | 34,929 | |||||||||||||||
Net income available to the common
shareholder |
11,120 | 11,188 | 11,838 | 11,145 | 8,030 | |||||||||||||||
PER SHARE DATA: |
||||||||||||||||||||
Net income Basic |
$ | 0.52 | $ | 0.53 | $ | 0.56 | $ | 0.53 | $ | 0.38 | ||||||||||
Net income Diluted |
0.52 | 0.52 | 0.56 | 0.53 | 0.38 | |||||||||||||||
Cash dividends declared |
0.19 | 0.19 | 0.18 | 0.18 | 0.18 | |||||||||||||||
Book value (1) |
21.24 | 20.93 | 20.57 | 20.08 | 19.91 | |||||||||||||||
OPERATING RATIOS: |
||||||||||||||||||||
Return on average assets |
0.95 | % | 0.98 | % | 1.01 | % | 0.95 | % | 0.70 | % | ||||||||||
Return on average common equity |
9.78 | % | 10.24 | % | 10.85 | % | 10.38 | % | 7.60 | % | ||||||||||
Net interest margin (on a fully tax
equivalent basis) |
3.97 | % | 4.02 | % | 3.91 | % | 3.89 | % | 3.96 | % | ||||||||||
Equity to assets |
9.41 | % | 9.64 | % | 9.30 | % | 9.05 | % | 8.90 | % | ||||||||||
Dividend payout ratio |
36.65 | % | 36.33 | % | 32.25 | % | 34.26 | % | 47.52 | % | ||||||||||
ASSET QUALITY RATIOS: |
||||||||||||||||||||
Non-performing loans as a percent of
gross loans |
0.59 | % | 0.64 | % | 0.65 | % | 0.72 | % | 0.69 | % | ||||||||||
Non-performing assets as a percent
of total assets |
0.64 | % | 0.73 | % | 0.67 | % | 0.74 | % | 0.68 | % | ||||||||||
Allowance for loan losses as a
percent of total loans |
1.25 | % | 1.28 | % | 1.30 | % | 1.34 | % | 1.32 | % | ||||||||||
Allowance for loan losses as a
percent of non-performing loans |
212.70 | % | 198.50 | % | 200.17 | % | 184.79 | % | 191.28 | % | ||||||||||
CAPITAL RATIOS: |
||||||||||||||||||||
Tier 1 leverage capital ratio |
8.54 | % | 8.48 | % | 8.19 | % | 7.99 | % | 7.86 | % | ||||||||||
Tier 1 risk-based capital ratio |
10.46 | % | 10.48 | % | 10.28 | % | 10.35 | % | 10.01 | % | ||||||||||
Total risk-based capital ratio |
12.52 | % | 12.55 | % | 12.37 | % | 12.47 | % | 12.11 | % |
(1) | Calculated by dividing total stockholders equity by the total outstanding shares as of the end of each period. |
44
For the Three Months | For the Six Months | |||||||||||||||
Ended | Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Diluted Earnings Per Share |
$ | 0.52 | $ | 0.38 | $ | 1.04 | $ | 0.82 | ||||||||
Return on Average Assets |
0.95 | % | 0.70 | % | 0.96 | % | 0.77 | % | ||||||||
Return on Average Common Equity |
9.78 | % | 7.60 | % | 10.01 | % | 8.26 | % | ||||||||
Net Interest Margin |
3.97 | % | 3.96 | % | 3.99 | % | 4.02 | % |
45
46
For the | For the | |||||||||||||||
Three Months Ending | Six Months Ending | |||||||||||||||
Nonperforming Assets Reconciliation | June 30, 2011 | June 30, 2011 | ||||||||||||||
Nonperforming Assets Beginning Balance |
$ | 33,856 | $ | 31,493 | ||||||||||||
New to Nonperforming |
9,085 | 18,131 | ||||||||||||||
Loans Charged-Off |
(3,587 | ) | (6,071 | ) | ||||||||||||
Loans Paid-Off |
(5,130 | ) | (7,064 | ) | ||||||||||||
Loans Transferred to Other Real Estate
Owned and Foreclosed Assets |
(1,172 | ) | (4,233 | ) | ||||||||||||
Loans Restored to Accrual Status |
(638 | ) | (1,754 | ) | ||||||||||||
Change to Other Real Estate Owned: |
||||||||||||||||
New to Other Real Estate Owned |
$ | 1,172 | $ | 4,233 | ||||||||||||
Valuation Write Down |
(276 | ) | (806 | ) | ||||||||||||
Sale of Other Real Estate Owned |
(3,214 | ) | (3,671 | ) | ||||||||||||
Other |
385 | 381 | ||||||||||||||
Total Change to Other Real Estate Owned |
(1,933 | ) | (1,933 | ) | 137 | 137 | ||||||||||
Other |
482 | 324 | ||||||||||||||
Nonperforming Assets Ending Balance |
$ | 30,963 | $ | 30,963 | ||||||||||||
47
48
Three Months Ended June 30, | ||||||||||||||||
Net Income | ||||||||||||||||
Available to Common | Diluted | |||||||||||||||
Shareholders | Earnings Per Share | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(Dollars in Thousands) | ||||||||||||||||
AS REPORTED (GAAP) |
||||||||||||||||
Net Income available to Common Shareholders (GAAP) |
$ | 11,120 | $ | 8,030 | $ | 0.52 | $ | 0.38 | ||||||||
Non-GAAP Measures: |
||||||||||||||||
Non-Interest Income Components: |
||||||||||||||||
Net Gain on Sale of Securities, net of tax |
(428 | ) | (285 | ) | (0.02 | ) | (0.01 | ) | ||||||||
Non-Interest Expense Components: |
||||||||||||||||
Fair Value Mark on a Terminated Hedging
Relationship, net of tax |
| 328 | | 0.01 | ||||||||||||
TOTAL IMPACT OF NON-CORE ITEMS |
(428 | ) | 43 | (0.02 | ) | | ||||||||||
AS ADJUSTED (NON-GAAP) |
$ | 10,692 | $ | 8,073 | $ | 0.50 | $ | 0.38 | ||||||||
Six Months Ended June 30, | ||||||||||||||||
Net Income | ||||||||||||||||
Available to Common | Diluted | |||||||||||||||
Shareholders | Earnings Per Share | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(Dollars in Thousands) | ||||||||||||||||
AS REPORTED (GAAP) |
||||||||||||||||
Net Income available to Common Shareholders (GAAP) |
$ | 22,308 | $ | 17,257 | $ | 1.04 | $ | 0.82 | ||||||||
Non-GAAP Measures: |
||||||||||||||||
Non-Interest Income Components: |
||||||||||||||||
Net Gain on Sale of Securities, net of tax |
(428 | ) | (285 | ) | (0.02 | ) | (0.01 | ) | ||||||||
Non-Interest Expense Components: |
||||||||||||||||
Fair Value Mark on a Terminated Hedging
Relationship, net of tax |
| 328 | | 0.01 | ||||||||||||
TOTAL IMPACT OF NON-CORE ITEMS |
(428 | ) | 43 | (0.02 | ) | | ||||||||||
AS ADJUSTED (NON-GAAP) |
$ | 21,880 | $ | 17,300 | $ | 1.02 | $ | 0.82 | ||||||||
49
50
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(Dollars in Thousands) | (Dollars in Thousands) | |||||||||||||||
Loans originated and sold with servicing rights released |
$ | 41,313 | $ | 57,327 | $ | 120,505 | $ | 117,575 | ||||||||
Loans originated and sold with servicing rights retained |
$ | 1,372 | $ | 1,723 | $ | 5,042 | $ | 3,891 |
51
Average Loan Size |
$638.9k | Non-Performing Loans/Loans |
0.36% |
Largest Individual CRE Mortgage |
$10.9 million | Owner Occupied |
21.6% |
Average Loan Size |
$172.1k | Non-Performing Loans/Loans |
0.47% |
Largest Individual C&I Loan |
$20.1 million |
52
53
54
June 30, | December 31, | June 30, | ||||||||||
2011 | 2010 | 2010 | ||||||||||
(Dollars In Thousands) | ||||||||||||
Loans Past Due 90 Days or More but Still Accruing |
||||||||||||
Home Equity |
$ | 110 | $ | 4 | $ | | ||||||
Consumer Other |
145 | 273 | 206 | |||||||||
Total |
$ | 255 | $ | 277 | $ | 206 | ||||||
Loans Accounted for on a Nonaccrual Basis (1) |
||||||||||||
Commercial and Industrial |
$ | 2,674 | $ | 3,123 | $ | 5,083 | ||||||
Commercial Real Estate |
6,455 | 7,837 | 6,937 | |||||||||
Commercial Construction |
552 | 1,999 | 1,075 | |||||||||
Small Business |
1,130 | 887 | 728 | |||||||||
Residential Real Estate |
8,546 | 6,728 | 8,007 | |||||||||
Home Equity |
1,867 | 1,752 | 1,218 | |||||||||
Consumer Other |
447 | 505 | 424 | |||||||||
Total |
$ | 21,671 | $ | 22,831 | $ | 23,472 | ||||||
Total Nonperforming Loans |
$ | 21,926 | $ | 23,108 | $ | 23,678 | ||||||
Nonaccrual Securities |
1,587 | 1,051 | 969 | |||||||||
Other Real Estate Owned and Foreclosed Assets |
7,450 | 7,334 | 7,436 | |||||||||
Total Nonperforming Assets |
$ | 30,963 | $ | 31,493 | $ | 32,083 | ||||||
Nonperforming Loans as a
Percent of Gross Loans |
0.59 | % | 0.65 | % | 0.69 | % | ||||||
Nonperforming Assets as a
Percent of Total Assets |
0.64 | % | 0.67 | % | 0.68 | % | ||||||
(1) | Inclusive of $5.9 million, $4.0 million, and $160,000 TDRs on nonaccrual at June 30, 2011, December 31, 2010, and June 30, 2010, respectively. |
55
June 30, | December 31, | |||||||
2011 | 2010 | |||||||
(Dollars in Thousands) | ||||||||
Number of Loan Relationships |
56 | 62 | ||||||
Aggregate Outstanding Balance |
$ | 113,395 | $ | 126,167 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(Dollars in Thousands) | (Dollars in Thousands) | |||||||||||||||
Interest income that would have been recognized
if nonaccruing loans had been performing |
$ | 501 | $ | 589 | $ | 819 | $ | 1,522 | ||||||||
Interest income recognized on TDRs still accruing |
$ | 434 | $ | 276 | $ | 857 | $ | 545 | ||||||||
Interest collected on these nonaccrual and TDRs
and included in interest income |
$ | 857 | $ | 518 | $ | 1,350 | $ | 805 |
56
57
Three Months Ended | ||||||||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
2011 | 2011 | 2010 | 2010 | 2010 | ||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||
AVERAGE LOANS |
$ | 3,678,019 | $ | 3,590,829 | $ | 3,481,884 | $ | 3,430,372 | $ | 3,422,101 | ||||||||||
Allowance for Loan Losses, Beginning of Period |
$ | 46,444 | $ | 46,255 | $ | 45,619 | $ | 45,291 | $ | 45,278 | ||||||||||
Charged-Off Loans: |
||||||||||||||||||||
Commercial and Industrial |
818 | 888 | 1,313 | 1,489 | 1,837 | |||||||||||||||
Commercial Real Estate |
492 | 652 | 594 | 851 | 1,804 | |||||||||||||||
Commercial Construction |
769 | | | | 1,716 | |||||||||||||||
Small Business |
318 | 266 | 541 | 549 | 858 | |||||||||||||||
Residential Real Estate |
280 | 122 | 46 | 51 | 321 | |||||||||||||||
Consumer Home Equity |
501 | 78 | 384 | 24 | 289 | |||||||||||||||
Consumer Other |
409 | 478 | 512 | 515 | 469 | |||||||||||||||
Total Charged-Off Loans |
3,587 | 2,484 | 3,390 | 3,479 | 7,294 | |||||||||||||||
Recoveries on Loans Previously Charged-Off: |
||||||||||||||||||||
Commercial and Industrial |
69 | 202 | 276 | 60 | 21 | |||||||||||||||
Commercial Real Estate |
| | | | | |||||||||||||||
Commercial Construction |
25 | 50 | | | | |||||||||||||||
Small Business |
26 | 28 | 46 | 34 | 57 | |||||||||||||||
Residential Real Estate |
| | | 26 | 28 | |||||||||||||||
Consumer Home Equity |
13 | 4 | 6 | 63 | 55 | |||||||||||||||
Consumer Other |
165 | 189 | 123 | 124 | 215 | |||||||||||||||
Total Recoveries |
298 | 473 | 451 | 307 | 376 | |||||||||||||||
Net Loans Charged-Off: |
||||||||||||||||||||
Commercial and Industrial |
749 | 686 | 1,037 | 1,429 | 1,816 | |||||||||||||||
Commercial Real Estate |
492 | 652 | 594 | 851 | 1,804 | |||||||||||||||
Commercial Construction |
744 | (50 | ) | | | 1,716 | ||||||||||||||
Small Business |
292 | 238 | 495 | 515 | 801 | |||||||||||||||
Residential Real Estate |
280 | 122 | 46 | 25 | 293 | |||||||||||||||
Consumer Home Equity |
488 | 74 | 378 | (39 | ) | 234 | ||||||||||||||
Consumer Other |
244 | 289 | 389 | 391 | 254 | |||||||||||||||
Total Net Loans Charged-Off |
3,289 | 2,011 | 2,939 | 3,172 | 6,918 | |||||||||||||||
Provision for Loan Losses |
3,482 | 2,200 | 3,575 | 3,500 | 6,931 | |||||||||||||||
TOTAL ALLOWANCES FOR LOAN LOSSES, END OF PERIOD |
$ | 46,637 | $ | 46,444 | $ | 46,255 | $ | 45,619 | $ | 45,291 | ||||||||||
Net Loans Charged-off as a Percent of Average Total Loans
(Annualized) |
0.36 | % | 0.23 | % | 0.33 | % | 0.37 | % | 0.81 | % | ||||||||||
Total Allowance for Loan Losses as a Percent of Total Loans |
1.25 | % | 1.28 | % | 1.30 | % | 1.34 | % | 1.32 | % | ||||||||||
Total Allowance for Loan Losses as a Percent of
Nonperforming Loans |
212.70 | % | 198.50 | % | 200.17 | % | 184.79 | % | 191.28 | % | ||||||||||
Net Loans Charged-Off as a Percent of Allowance for Loan
Losses (Annualized) |
28.29 | % | 17.56 | % | 25.21 | % | 27.89 | % | 61.3 | % | ||||||||||
Recoveries as a Percent of Charge-Offs (Annualized) |
8.31 | % | 19.04 | % | 13.30 | % | 8.82 | % | 5.15 | % |
58
June 30, | December 31, | |||||||||||||||
2011 | 2010 | |||||||||||||||
(Dollars In thousands) | ||||||||||||||||
Percent of | Percent of | |||||||||||||||
Loans | Loans | |||||||||||||||
Allowance | In Category | Allowance | In Category | |||||||||||||
Amount | To Total Loans | Amount | To Total Loans | |||||||||||||
Commercial and Industrial |
$ | 11,083 | 15.2 | % | $ | 10,423 | 14.1 | % | ||||||||
Commercial Real Estate |
22,995 | 48.4 | % | 21,939 | 48.4 | % | ||||||||||
Commercial Construction |
2,071 | 3.5 | % | 2,145 | 3.6 | % | ||||||||||
Small Business |
2,053 | 2.1 | % | 3,740 | 2.3 | % | ||||||||||
Residential Real Estate (1) |
3,242 | 12.4 | % | 2,915 | 13.4 | % | ||||||||||
Home Equity |
3,713 | 17.0 | % | 3,369 | 16.3 | % | ||||||||||
Consumer Other |
1,480 | 1.4 | % | 1,724 | 1.9 | % | ||||||||||
Total Allowance for Loan Losses |
$ | 46,637 | 100.0 | % | $ | 46,255 | 100.0 | % | ||||||||
(1) | Includes residential construction. |
59
60
June 30, | December 31, | |||||||||||
2011 | 2010 | % Change | ||||||||||
(Dollars in Thousands) | ||||||||||||
Federal Home Loan Bank Advances |
$ | 258,012 | $ | 302,414 | -14.7 | % | ||||||
Fed Funds Purchased and Assets Sold
Under Repurchase Agreements |
183,166 | 168,119 | 9.0 | % | ||||||||
Junior Subordinated Debentures |
61,857 | 61,857 | 0.0 | % | ||||||||
Subordinated Debentures |
30,000 | 30,000 | 0.0 | % | ||||||||
Other Borrowings |
2,635 | 3,044 | -13.4 | % | ||||||||
Total Borrowings |
$ | 535,670 | $ | 565,434 | -5.3 | % | ||||||
61
June 30, 2011 | ||||||||||||||||||||||||||||||||
To Be Well Capitalized | ||||||||||||||||||||||||||||||||
For Capital | Under Prompt Corrective | |||||||||||||||||||||||||||||||
Actual | Adequacy Purposes | Action Provisions | ||||||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||||||
Company: (Consolidated) |
||||||||||||||||||||||||||||||||
Total capital (to risk weighted assets) |
$ | 466,084 | 12.52 | % | $ | 297,839 | > | 8.0 | % | N/A | N/A | |||||||||||||||||||||
Tier 1 capital (to risk weighted
assets) |
389,539 | 10.46 | $ | 148,920 | > | 4.0 | N/A | N/A | ||||||||||||||||||||||||
Tier 1 capital (to average assets) |
389,539 | 8.54 | 182,352 | > | 4.0 | N/A | N/A | |||||||||||||||||||||||||
Bank: |
||||||||||||||||||||||||||||||||
Total capital (to risk weighted assets) |
$ | 445,686 | 11.96 | % | $ | 298,179 | > | 8.0 | % | $ | 372,724 | > | 10.0 | % | ||||||||||||||||||
Tier 1 capital (to risk weighted
assets) |
369,089 | 9.90 | $ | 149,090 | > | 4.0 | $ | 223,634 | > | 6.0 | ||||||||||||||||||||||
Tier 1 capital (to average assets) |
369,089 | 8.09 | 182,423 | > | 4.0 | 228,029 | > | 5.0 | ||||||||||||||||||||||||
December 31, 2010 |
||||||||||||||||||||||||||||||||
Company: (Consolidated) |
||||||||||||||||||||||||||||||||
Total capital (to risk weighted assets) |
$ | 444,963 | 12.37 | % | $ | 287,846 | > | 8.0 | % | N/A | N/A | |||||||||||||||||||||
Tier 1 capital (to risk weighted
assets) |
369,965 | 10.28 | 143,923 | > | 4.0 | N/A | N/A | |||||||||||||||||||||||||
Tier 1 capital (to average assets) |
369,965 | 8.19 | 180,784 | > | 4.0 | N/A | N/A | |||||||||||||||||||||||||
Bank: |
||||||||||||||||||||||||||||||||
Total capital (to risk weighted assets) |
$ | 429,304 | 11.92 | % | $ | 288,098 | > | 8.0 | % | $ | 360,123 | > | 10.0 | % | ||||||||||||||||||
Tier 1 capital (to risk weighted
assets) |
354,267 | 9.84 | 144,049 | > | 4.0 | 216,074 | > | 6.0 | ||||||||||||||||||||||||
Tier 1 capital (to average assets) |
354,267 | 7.83 | 181,039 | > | 4.0 | 226,299 | > | 5.0 | ||||||||||||||||||||||||
62
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(Dollars in Thousands) | ||||||||||||||||
Closed |
$ | 63,737 | $ | 79,291 | $ | 145,461 | $ | 152,230 | ||||||||
Held in Portfolio |
16,207 | 10,314 | 35,518 | 25,166 | ||||||||||||
Sold or Held for Sale in the Secondary Market |
47,530 | 68,977 | 109,943 | 127,064 |
63
Three Months Ended | Six Months Ended | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(Dollars in Thousands) | ||||||||||||||||
Balance at beginning of period |
$ | 1,551 | $ | 2,233 | $ | 1,619 | $ | 2,195 | ||||||||
Additions |
12 | | 45 | | ||||||||||||
Amortization |
(139 | ) | (158 | ) | (278 | ) | (312 | ) | ||||||||
Change in Valuation Allowance |
(22 | ) | (19 | ) | 16 | 173 | ||||||||||
Balance at end of period |
$ | 1,402 | $ | 2,056 | $ | 1,402 | $ | 2,056 | ||||||||
For the Three Months Ended, | For the Six Months Ended, | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(Dollars in Thousands) | (Dollars in Thousands) | |||||||||||||||
Net Income Available to Common Shareholders |
$ | 11,120 | $ | 8,030 | $ | 22,308 | $ | 17,257 | ||||||||
Diluted Earnings Per Share |
$ | 0.52 | $ | 0.38 | $ | 1.04 | $ | 0.82 | ||||||||
Return on Average Assets |
0.95 | % | 0.70 | % | 0.96 | % | 0.77 | % | ||||||||
Return on Average Equity |
9.78 | % | 7.60 | % | 10.01 | % | 8.26 | % |
64
65
Three Months Ended June 30, | ||||||||||||||||||||||||
2011 | 2010 | |||||||||||||||||||||||
Interest | Interest | |||||||||||||||||||||||
Average | Earned/ | Yield/ | Average | Earned/ | Yield/ | |||||||||||||||||||
Balance | Paid | Rate | Balance | Paid | Rate | |||||||||||||||||||
(Dollar in Thousands) | ||||||||||||||||||||||||
INTEREST-EARNING ASSETS |
||||||||||||||||||||||||
Interest Earning Deposits with Banks, Federal Funds Sold, and Short Term Investments |
$ | 23,049 | $ | 14 | 0.24 | % | $ | 188,998 | $ | 108 | 0.23 | % | ||||||||||||
SECURITIES |
||||||||||||||||||||||||
Trading Assets |
8,600 | 71 | 3.31 | % | 7,367 | 62 | 3.38 | % | ||||||||||||||||
Taxable Investment Securities |
556,301 | 5,286 | 3.81 | % | 557,554 | 6,067 | 4.36 | % | ||||||||||||||||
Non-taxable Investment Securities (1) |
8,610 | 161 | 7.50 | % | 17,718 | 316 | 7.15 | % | ||||||||||||||||
TOTAL SECURITIES |
573,511 | 5,518 | 3.86 | % | 582,639 | 6,445 | 4.44 | % | ||||||||||||||||
LOANS HELD FOR SALE |
8,659 | 70 | 3.24 | % | 7,656 | 110 | 5.76 | % | ||||||||||||||||
LOANS |
||||||||||||||||||||||||
Commercial and Industrial |
535,764 | 5,710 | 4.27 | % | 401,430 | 4,726 | 4.72 | % | ||||||||||||||||
Commercial Real Estate (1) |
1,787,364 | 23,618 | 5.30 | % | 1,645,452 | 23,839 | 5.81 | % | ||||||||||||||||
Commercial Construction |
128,747 | 1,482 | 4.62 | % | 166,040 | 2,098 | 5.07 | % | ||||||||||||||||
Small Business |
79,834 | 1,151 | 5.78 | % | 81,319 | 1,202 | 5.93 | % | ||||||||||||||||
TOTAL COMMERCIAL |
2,531,709 | 31,961 | 5.06 | % | 2,294,241 | 31,865 | 5.57 | % | ||||||||||||||||
Residential Real Estate |
457,651 | 5,167 | 4.53 | % | 537,475 | 6,485 | 4.84 | % | ||||||||||||||||
Residential Construction |
4,535 | 55 | 4.86 | % | 7,507 | 95 | 5.08 | % | ||||||||||||||||
Consumer Home Equity |
627,832 | 5,920 | 3.78 | % | 490,197 | 4,704 | 3.85 | % | ||||||||||||||||
TOTAL CONSUMER REAL ESTATE |
1,090,018 | 11,142 | 4.10 | % | 1,035,179 | 11,284 | 4.37 | % | ||||||||||||||||
TOTAL OTHER CONSUMER |
56,292 | 1,098 | 7.82 | % | 92,681 | 1,784 | 7.72 | % | ||||||||||||||||
TOTAL LOANS |
3,678,019 | 44,201 | 4.82 | % | 3,422,101 | 44,933 | 5.27 | % | ||||||||||||||||
TOTAL INTEREST EARNING ASSETS |
4,283,238 | 49,803 | 4.66 | % | 4,201,394 | 51,596 | 4.93 | % | ||||||||||||||||
CASH AND DUE FROM BANKS |
56,122 | 71,300 | ||||||||||||||||||||||
FEDERAL HOME LOAN BANK STOCK |
35,854 | 35,854 | ||||||||||||||||||||||
OTHER ASSETS |
322,033 | 305,041 | ||||||||||||||||||||||
TOTAL ASSETS |
$ | 4,697,247 | $ | 4,613,589 | ||||||||||||||||||||
INTEREST-BEARING LIABILITIES |
||||||||||||||||||||||||
DEPOSITS |
||||||||||||||||||||||||
Savings and Interest Checking Accounts |
$ | 1,365,892 | $ | 850 | 0.25 | % | $ | 1,182,343 | $ | 1,297 | 0.44 | % | ||||||||||||
Money Market |
723,345 | 815 | 0.45 | % | 760,240 | 1,320 | 0.70 | % | ||||||||||||||||
Time Deposits |
669,941 | 1,879 | 1.12 | % | 842,539 | 2,868 | 1.37 | % | ||||||||||||||||
TOTAL INTEREST-BEARING DEPOSITS |
2,759,178 | 3,544 | 0.52 | % | 2,785,122 | 5,485 | 0.79 | % | ||||||||||||||||
BORROWINGS |
||||||||||||||||||||||||
Federal Home Loan Bank Borrowings |
276,984 | 1,743 | 2.52 | % | 324,168 | 2,392 | 2.96 | % | ||||||||||||||||
Federal Funds Purchased and Assets Sold
Under Repurchase Agreement |
181,631 | 657 | 1.45 | % | 182,810 | 821 | 1.80 | % | ||||||||||||||||
Junior Subordinated Debentures |
61,857 | 913 | 5.92 | % | 61,857 | 913 | 5.92 | % | ||||||||||||||||
Subordinated Debentures |
30,000 | 541 | 7.23 | % | 30,000 | 541 | 7.23 | % | ||||||||||||||||
Other Borrowings |
2,541 | | 0.00 | % | 3,148 | | 0.00 | % | ||||||||||||||||
TOTAL BORROWINGS |
553,013 | 3,854 | 2.80 | % | 601,983 | 4,667 | 3.11 | % | ||||||||||||||||
TOTAL INTEREST-BEARING LIABILITIES |
3,312,191 | 7,398 | 0.90 | % | 3,387,105 | 10,152 | 1.20 | % | ||||||||||||||||
DEMAND DEPOSITS |
870,585 | 752,622 | ||||||||||||||||||||||
OTHER LIABILITIES |
58,621 | 49,870 | ||||||||||||||||||||||
TOTAL LIABILITIES |
4,241,397 | 4,189,597 | ||||||||||||||||||||||
STOCKHOLDERS EQUITY |
455,850 | 423,992 | ||||||||||||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY |
$ | 4,697,247 | $ | 4,613,589 | ||||||||||||||||||||
NET INTEREST INCOME |
$ | 42,405 | $ | 41,444 | ||||||||||||||||||||
INTEREST RATE SPREAD (2) |
3.76 | % | 3.72 | % | ||||||||||||||||||||
NET INTEREST MARGIN (3) |
3.97 | % | 3.96 | % | ||||||||||||||||||||
Supplemental Information: |
||||||||||||||||||||||||
Total Deposits, including Demand Deposits |
$ | 3,629,763 | $ | 3,544 | $ | 3,537,744 | $ | 5,485 | ||||||||||||||||
Cost of Total Deposits |
0.39 | % | 0.62 | % | ||||||||||||||||||||
Total Funding Liabilities, including Demand Deposits |
$ | 4,182,776 | $ | 7,398 | $ | 4,139,727 | $ | 10,152 | ||||||||||||||||
Cost of Total Funding Liabilities |
0.71 | % | 0.98 | % |
(1) | The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $329 and $277 for the three months ended June 30, 2011 and 2010, respectively. | |
(2) | Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. | |
(3) | Net interest margin represents annualized net interest income as a percentage of average interest-earning assets. |
66
Six Months Ended June 30, | ||||||||||||||||||||||||
2011 | 2010 | |||||||||||||||||||||||
Interest | Interest | |||||||||||||||||||||||
Average | Earned/ | Yield/ | Average | Earned/ | Yield/ | |||||||||||||||||||
Balance | Paid | Rate | Balance | Paid | Rate | |||||||||||||||||||
(Dollar in Thousands) | ||||||||||||||||||||||||
INTEREST-EARNING ASSETS |
||||||||||||||||||||||||
Interest Earning Deposits with Banks, Federal Funds Sold, and Short Term Investments |
$ | 25,338 | $ | 31 | 0.25 | % | $ | 106,509 | $ | 132 | 0.25 | % | ||||||||||||
SECURITIES |
||||||||||||||||||||||||
Trading Assets |
8,363 | 134 | 3.23 | % | 7,085 | 122 | 3.47 | % | ||||||||||||||||
Taxable Investment Securities |
562,582 | 10,717 | 3.84 | % | 563,021 | 12,476 | 4.47 | % | ||||||||||||||||
Non-taxable Investment Securities (1) |
9,388 | 351 | 7.53 | % | 18,411 | 658 | 7.21 | % | ||||||||||||||||
TOTAL SECURITIES |
580,333 | 11,202 | 3.89 | % | 588,517 | 13,256 | 4.54 | % | ||||||||||||||||
LOANS HELD FOR SALE |
11,409 | 189 | 3.34 | % | 7,392 | 216 | 5.89 | % | ||||||||||||||||
LOANS |
||||||||||||||||||||||||
Commercial and Industrial |
518,081 | 11,111 | 4.32 | % | 389,708 | 8,974 | 4.64 | % | ||||||||||||||||
Commercial Real Estate (1) |
1,768,433 | 46,815 | 5.34 | % | 1,638,238 | 47,097 | 5.80 | % | ||||||||||||||||
Commercial Construction |
126,139 | 2,892 | 4.62 | % | 168,773 | 4,174 | 4.99 | % | ||||||||||||||||
Small Business |
80,058 | 2,329 | 5.87 | % | 81,894 | 2,419 | 5.96 | % | ||||||||||||||||
TOTAL COMMERCIAL |
2,492,711 | 63,147 | 5.11 | % | 2,278,613 | 62,664 | 5.55 | % | ||||||||||||||||
Residential Real Estate |
462,870 | 10,567 | 4.60 | % | 542,974 | 13,250 | 4.92 | % | ||||||||||||||||
Residential Construction |
4,126 | 98 | 4.79 | % | 8,300 | 213 | 5.18 | % | ||||||||||||||||
Consumer Home Equity |
614,800 | 11,542 | 3.79 | % | 484,293 | 9,226 | 3.84 | % | ||||||||||||||||
TOTAL CONSUMER REAL ESTATE |
1,081,796 | 22,207 | 4.14 | % | 1,035,567 | 22,689 | 4.42 | % | ||||||||||||||||
TOTAL OTHER CONSUMER |
60,157 | 2,328 | 7.80 | % | 98,875 | 3,796 | 7.74 | % | ||||||||||||||||
TOTAL LOANS |
3,634,664 | 87,682 | 4.86 | % | 3,413,055 | 89,149 | 5.27 | % | ||||||||||||||||
TOTAL INTEREST EARNING ASSETS |
4,251,744 | 99,104 | 4.70 | % | 4,115,473 | 102,753 | 5.03 | % | ||||||||||||||||
CASH AND DUE FROM BANKS |
54,084 | 68,887 | ||||||||||||||||||||||
FEDERAL HOME LOAN BANK STOCK |
35,854 | 35,854 | ||||||||||||||||||||||
OTHER ASSETS |
321,350 | 304,622 | ||||||||||||||||||||||
TOTAL ASSETS |
$ | 4,663,032 | $ | 4,524,836 | ||||||||||||||||||||
INTEREST-BEARING LIABILITIES |
||||||||||||||||||||||||
DEPOSITS |
||||||||||||||||||||||||
Savings and Interest Checking Accounts |
$ | 1,327,759 | $ | 1,610 | 0.24 | % | $ | 1,119,598 | $ | 2,481 | 0.45 | % | ||||||||||||
Money Market |
723,644 | 1,600 | 0.45 | % | 731,475 | 2,641 | 0.73 | % | ||||||||||||||||
Time Deposits |
671,409 | 3,819 | 1.15 | % | 865,864 | 6,302 | 1.47 | % | ||||||||||||||||
TOTAL INTEREST-BEARING DEPOSITS |
2,722,812 | 7,029 | 0.52 | % | 2,716,937 | 11,424 | 0.85 | % | ||||||||||||||||
BORROWINGS |
||||||||||||||||||||||||
Federal Home Loan Bank Borrowings |
306,059 | 3,653 | 2.41 | % | 332,190 | 4,823 | 2.93 | % | ||||||||||||||||
Federal Funds Purchased and Assets Sold
Under Repurchase Agreement |
179,918 | 1,308 | 1.47 | % | 183,712 | 1,651 | 1.81 | % | ||||||||||||||||
Junior Subordinated Debentures |
61,857 | 1,816 | 5.92 | % | 61,857 | 1,815 | 5.92 | % | ||||||||||||||||
Subordinated Debentures |
30,000 | 1,077 | 7.24 | % | 30,000 | 1,077 | 7.24 | % | ||||||||||||||||
Other Borrowings |
2,650 | | 0.00 | % | 2,756 | | 0.00 | % | ||||||||||||||||
TOTAL BORROWINGS |
580,484 | 7,854 | 2.73 | % | 610,515 | 9,366 | 3.09 | % | ||||||||||||||||
TOTAL INTEREST-BEARING LIABILITIES |
3,303,296 | 14,883 | 0.91 | % | 3,327,452 | 20,790 | 1.26 | % | ||||||||||||||||
DEMAND DEPOSITS |
850,918 | 727,865 | ||||||||||||||||||||||
OTHER LIABILITIES |
59,201 | 48,453 | ||||||||||||||||||||||
TOTAL LIABILITIES |
4,213,415 | 4,103,770 | ||||||||||||||||||||||
STOCKHOLDERS EQUITY |
449,617 | 421,066 | ||||||||||||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY |
$ | 4,663,032 | $ | 4,524,836 | ||||||||||||||||||||
NET INTEREST INCOME |
$ | 84,221 | $ | 81,963 | ||||||||||||||||||||
INTEREST RATE SPREAD (2) |
3.79 | % | 3.77 | % | ||||||||||||||||||||
NET INTEREST MARGIN (3) |
3.99 | % | 4.02 | % | ||||||||||||||||||||
Supplemental Information: |
||||||||||||||||||||||||
Total Deposits, including Demand Deposits |
$ | 3,573,730 | $ | 7,029 | $ | 3,444,802 | $ | 11,424 | ||||||||||||||||
Cost of Total Deposits |
0.40 | % | 0.67 | % | ||||||||||||||||||||
Total Funding Liabilities, including Demand Deposits |
$ | 4,154,214 | $ | 14,883 | $ | 4,055,317 | $ | 20,790 | ||||||||||||||||
Cost of Total Funding Liabilities |
0.72 | % | 1.03 | % |
(1) | The total amount of adjustment to present interest income and yield on a fully tax-equivalent basis is $672 and $586 for the six months ended June 30, 2011 and 2010, respectively. | |
(2) | Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. | |
(3) | Net interest margin represents annualized net interest income as a percentage of average interest-earning assets. |
67
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||
2011 Compared to 2010 | 2011 Compared to 2010 | |||||||||||||||||||||||
Change | Change | Change | Change | |||||||||||||||||||||
Due to | Due to | Total | Due to | Due to | Total | |||||||||||||||||||
Rate (1) | Volume | Change | Rate (1) | Volume | Change | |||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||
INCOME ON INTEREST-EARNING ASSETS: |
||||||||||||||||||||||||
INTEREST EARNING DEPOSITIS WITH BANKS, FEDERAL
FUNDS SOLD
AND SHORT TERM INVERSTMENTS |
$ | 1 | $ | (95 | ) | $ | (94 | ) | $ | | $ | (101 | ) | $ | (101 | ) | ||||||||
SECURIITIES: |
||||||||||||||||||||||||
Taxable Securities |
(767 | ) | (14 | ) | (781 | ) | (1,749 | ) | (10 | ) | (1,759 | ) | ||||||||||||
Non-Taxable Securities (2) |
7 | (162 | ) | (155 | ) | 15 | (322 | ) | (307 | ) | ||||||||||||||
Trading Assets |
(1 | ) | 10 | 9 | (10 | ) | 22 | 12 | ||||||||||||||||
TOTAL SECURITIES |
(761 | ) | (166 | ) | (927 | ) | (1,744 | ) | (310 | ) | (2,054 | ) | ||||||||||||
LOANS HELD FOR SALE |
(54 | ) | 14 | (40 | ) | (144 | ) | 117 | (27 | ) | ||||||||||||||
LOANS (2)(3) |
(4,092 | ) | 3,360 | (732 | ) | (7,255 | ) | 5,788 | (1,467 | ) | ||||||||||||||
TOTAL |
$ | (4,906 | ) | $ | 3,113 | $ | (1,793 | ) | $ | (9,143 | ) | $ | 5,494 | $ | (3,649 | ) | ||||||||
EXPENSE OF INTEREST-BEARING LIABILITIES: |
||||||||||||||||||||||||
DEPOSITS: |
||||||||||||||||||||||||
Savings and Interest Checking Accounts |
$ | (648 | ) | $ | 201 | $ | (447 | ) | $ | (1,332 | ) | $ | 461 | $ | (871 | ) | ||||||||
Money Market |
(441 | ) | (64 | ) | (505 | ) | (1,013 | ) | (28 | ) | (1,041 | ) | ||||||||||||
Time Deposits |
(401 | ) | (588 | ) | (989 | ) | (1,068 | ) | (1,415 | ) | (2,483 | ) | ||||||||||||
TOTAL INTEREST-BEARING DEPOSITS |
(1,490 | ) | (451 | ) | (1,941 | ) | (3,413 | ) | (982 | ) | (4,395 | ) | ||||||||||||
BORROWINGS: |
||||||||||||||||||||||||
Federal Home Loan Bank Borrowings |
$ | (301 | ) | $ | (348 | ) | $ | (649 | ) | $ | (791 | ) | $ | (379 | ) | $ | (1,170 | ) | ||||||
Federal Funds Purchased and Assets Sold Under
Repurchase Agreements |
(159 | ) | (5 | ) | (164 | ) | (309 | ) | (34 | ) | (343 | ) | ||||||||||||
Junior Subordinated Debentures |
| | | 1 | | 1 | ||||||||||||||||||
Subordinated Debentures |
| | | | | | ||||||||||||||||||
Other Borrowings |
| | | | | | ||||||||||||||||||
TOTAL BORROWINGIS |
(460 | ) | (353 | ) | (813 | ) | (1,099 | ) | (413 | ) | (1,512 | ) | ||||||||||||
TOTAL |
$ | (1,950 | ) | $ | (804 | ) | $ | (2,754 | ) | $ | (4,512 | ) | $ | (1,395 | ) | $ | (5,907 | ) | ||||||
CHANGE IN NET INTEREST INCOME |
$ | (2,956 | ) | $ | 3,917 | $ | 961 | $ | (4,631 | ) | $ | 6,889 | $ | 2,258 | ||||||||||
(1) | The changes for each category of interest income and expense are divided between the portion of change attributable to the variances in volume and the portion of the change attributable to the variances in rate for that category. The unallocated change in rate or volume variance has been allocated to the rate variances. | |
(2) | The total amount of the adjustment to present income and yield on a fully tax-equivalent basis is $329 and $277 for the three months ended June 30, 2011 and 2010, respectively and $672 and $586 for the six months ended June 30, 2011 and 2010, respectively. | |
(3) | Loans include portfolio loans, and nonperforming loans; however unpaid interest on nonaccrual loans has not been included for purposes of determining interest income. |
68
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(Dollars In Thousands) | (Dollars In Thousands) | |||||||||||||||
Service Charges on Deposit Accounts |
$ | 4,192 | $ | 3,257 | $ | 8,151 | $ | 6,388 | ||||||||
Interchange and ATM Fees |
1,974 | 1,258 | 3,676 | 2,348 | ||||||||||||
Investment Management |
3,603 | 3,189 | 6,819 | 5,918 | ||||||||||||
Mortgage Banking |
683 | 622 | 1,730 | 1,622 | ||||||||||||
Bank Owned Life Insurance |
860 | 731 | 1,566 | 1,452 | ||||||||||||
Net Gain/(Loss) on Sales of Securities Available for Sale |
723 | 481 | 723 | 481 | ||||||||||||
Gross Change on Write-Down of Certain Investments to Fair Value |
170 | (63 | ) | 419 | 118 | |||||||||||
Less: Non-Credit Related Other-Than-Temporary Impairment |
(306 | ) | (21 | ) | (595 | ) | (380 | ) | ||||||||
Net Loss on Write-Down of Certain Investments to Fair Value |
(136 | ) | (84 | ) | (176 | ) | (262 | ) | ||||||||
Other Non-Interest Income |
1,575 | 1,484 | 3,583 | 3,041 | ||||||||||||
TOTAL |
$ | 13,474 | $ | 10,938 | $ | 26,072 | $ | 20,988 | ||||||||
69
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(Dollars in Thousands) | (Dollars in Thousands) | |||||||||||||||
Salaries and Employee Benefits |
$ | 19,762 | $ | 18,406 | $ | 40,014 | $ | 36,869 | ||||||||
Occupancy and Equipment Expenses |
4,263 | 4,094 | 8,838 | 8,229 | ||||||||||||
Advertising |
1,606 | 789 | 2,544 | 1,230 | ||||||||||||
Data Processing and Facilities Management |
1,038 | 1,497 | 2,676 | 2,791 | ||||||||||||
FDIC Assessment |
778 | 1,271 | 2,069 | 2,592 | ||||||||||||
Legal Fees |
647 | 1,052 | 1,066 | 1,855 | ||||||||||||
Foreclosure Expenses |
594 | 217 | 1,021 | 462 | ||||||||||||
Telephone |
534 | 532 | 1,061 | 1,078 | ||||||||||||
Gain(Loss) on Other Real Estate Owned and Foreclosed Assets |
528 | 114 | 1,074 | 125 | ||||||||||||
Fair Value Mark on a Terminated Hedging Relationship |
| 554 | | 792 | ||||||||||||
Other Non-Interest Expense |
7,106 | 6,403 | 12,975 | 12,495 | ||||||||||||
TOTAL |
$ | 36,856 | $ | 34,929 | $ | 73,338 | $ | 68,518 | ||||||||
70
71
Total | ||||||||||||||||||||||||||||||||||||||||
Investment | 2004 - 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | Credits | |||||||||||||||||||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||||||||||||||||||||||
2004 |
$ | 15 | M | $ | 4,950 | $ | 900 | $ | | $ | | $ | | $ | | $ | | $ | | $ | 5,850 | |||||||||||||||||||
2005 |
15 | M | 4,050 | 900 | 900 | | | | | | 5,850 | |||||||||||||||||||||||||||||
2007 |
38.2 | M | 5,730 | 2,292 | 2,292 | 2,292 | 2,292 | | | | 14,898 | |||||||||||||||||||||||||||||
2008 |
6.8 | M | 680 | 340 | 408 | 408 | 408 | 408 | | | 2,652 | |||||||||||||||||||||||||||||
2009 |
10 | M | 500 | 500 | 500 | 600 | 600 | 600 | 600 | | 3,900 | |||||||||||||||||||||||||||||
2010 |
40 | M | | 2,000 | 2,000 | 2,000 | 2,400 | 2,400 | 2,400 | 2,400 | 15,600 | |||||||||||||||||||||||||||||
TOTAL |
$ | 125 | M | $ | 15,910 | $ | 6,932 | $ | 6,100 | $ | 5,300 | $ | 5,700 | $ | 3,408 | $ | 3,000 | $ | 2,400 | $ | 48,750 | |||||||||||||||||||
72
73
500 Basis Point | ||||||||||||
200 Basis Point | 100 Basis Point | Rate Increase | ||||||||||
Rate Increase | Rate Decrease | Flattening Curve | ||||||||||
June 30, 2011 |
1.5 | % | 0.3 | % | 1.8 | % | ||||||
June 30, 2010 |
0.6 | % | 0.4 | % | 0.4 | % |
| Outstanding FHLBB borrowings of $258.0 million, with access to $523.7 million additional available borrowing capacity. |
| No outstanding borrowings with the Federal Reserve Bank of Boston with access to $676.4 million of available borrowing capacity. |
| Unpledged securities of $150.4 million. |
| Outstanding repurchase agreements with major brokerage firms of $50.0 million. |
| Outstanding customer repurchase agreements amounting to $133.2 million. |
74
75
| Effective July 21, 2011, is a provision of the Dodd-Frank Act that eliminates the federal prohibitions on paying interest on demand deposits, thus allowing businesses to have interest bearing checking accounts. Depending on competitive responses, this significant change to existing law could have an adverse impact on the Companys interest expense. | ||
| The Dodd-Frank Act also broadens the base for Federal Deposit Insurance Corporation insurance assessments. Assessments are now based on the average consolidated total assets less tangible equity capital of a financial institution. The Dodd-Frank Act also permanently increased the maximum amount of deposit insurance for banks, savings institutions and credit unions to $250,000 per depositor, retroactive to January 1, 2009, and non-interest bearing transaction accounts have unlimited deposit insurance through December 31, 2013. The Company has begun to see a reduction in the amount of the FDIC assessment as a result of these change in the second quarter of 2011. | ||
| The Dodd-Frank Act requires publicly traded companies to give stockholders a non-binding vote on executive compensation and so-called golden parachute payments, and authorizes the Securities and Exchange Commission to promulgate rules that would allow stockholders to nominate their own board candidates using a companys proxy materials. The legislation also directs the Federal Reserve Board to promulgate rules prohibiting excessive compensation paid to bank holding company executives, regardless of whether the company is publicly traded or not. The Companys Board has decided to include a proxy vote on executive compensation every year. |
76
| The Dodd-Frank Act broadened the scope of derivative instruments and requires clearing and exchange trading of certain instruments. Furthermore, the Dodd-Frank Act includes capital margin, reporting and registration requirements for derivative participants. Final regulations are in process and the effective date of the changes has been delayed to December 31, 2011. | ||
| The Dodd-Frank Act creates a new Consumer Financial Protection Bureau with broad powers to supervise and enforce consumer protection laws. The Consumer Financial Protection Bureau has broad rule-making authority for a wide range of consumer protection laws that apply to all banks and savings institutions, including the authority to prohibit unfair, deceptive or abusive acts and practices. Banks and savings institutions with $10 billion or less in assets will continue to be examined for compliance with consumer laws by their primary bank regulators. |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 4. | Controls and Procedures |
77
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
(a) | Not applicable. |
(b) | Not applicable. |
(c) |
Issuer Purchases of Equity Securities | ||||||||||||||||
Total Number of | ||||||||||||||||
Shares Purchased as | ||||||||||||||||
Total Number of | Part of Publicly | Maximum Number of Shares | ||||||||||||||
Shares | Average Price | Announced Plan or | That May Yet Be Purchased | |||||||||||||
Purchased (1) | Paid Per Share | Program (2) | Under the Plan or Program | |||||||||||||
Period |
||||||||||||||||
April 1 to April 30, 2011 |
465 | $ | 27.92 | | | |||||||||||
May 1 to May 31, 2011 |
130 | 29.03 | | | ||||||||||||
June 1 to June 30, 2011 |
| | | | ||||||||||||
Total |
595 | | | |||||||||||||
(1) | Shares repurchased relate to the surrendering of mature shares for the exercise and/or vesting of stock compensation grants | |
(2) | The Company does not currently have a stock repurchase program or plan in place. |
78
Item 3. | Defaults Upon Senior Securities None |
Item 5. | Other Information None |
Item 6. | Exhibits |
No. | Exhibit | |
3.(i)
|
Restated Articles of Organization, as adopted May 20, 2010, incorporated by reference to Form 8-K filed on May 24, 2010. | |
3.(ii)
|
Amended and Restated Bylaws of the Company, incorporated by reference to Form 8-K filed on May 24, 2010. | |
4.1
|
Specimen Common Stock Certificate, incorporated by reference to Form 10-K for the year ended December 31, 1992. | |
4.2
|
Specimen Preferred Stock Purchase Rights Certificate, incorporated by reference to Form 8-A Registration Statement filed on November 5, 2001. | |
4.3
|
Indenture of Registrant relating the Junior Subordinated Debt Securities issued to Independent Capital Trust V, is incorporated by reference to Form 10-K for the year ended December 31, 2006 filed on February 28, 2007. | |
4.4
|
Form of Certificate of Junior Subordinated Debt Security for Independent Capital Trust V (included as Exhibit A to Exhibit 4.9) | |
4.5
|
Amended and Restated Declaration of Trust for Independent Capital Trust V, incorporated by reference to Form 10-K for the year ended December 31, 2006 filed on February 28, 2007. | |
4.6
|
Form of Capital Security Certificate for Independent Capital Trust V (included as Exhibit A-1 to Exhibit 4.9). | |
4.7
|
Guarantee Agreement relating to Independent Capital Trust V, is incorporated by reference to Form 10-K for the year ended December 31, 2006 filed on February 28, 2007. | |
4.8
|
Forms of Capital Securities Purchase Agreements for Independent Capital Trust V, is incorporated by reference to Form 10-K for the year ended December 31, 2006 filed on February 28, 2007. | |
4.9
|
Subordinated Debt Purchase Agreement between USB Capital Resources and Rockland Trust Company dated as of August 27, 2008, is incorporated by reference to Form 8-K filed on September 2, 2008. | |
4.10
|
Rockland Trust Company Employee Savings, Profit Sharing and Stock Ownership Plan, incorporated by reference to Form S-8 filed on April 16, 2010. | |
4.11
|
Independent Bank Corp. 2010 Dividend Reinvestment and Stock Purchase |
79
No. | Exhibit | |
Plan, incorporated by reference to Form S-3 filed on August 24, 2010. | ||
10.1
|
Independent Bank Corp. 1996 Non-Employee Directors Stock Option Plan incorporated by reference to Definitive Proxy Statement for the 1996 Annual Meeting of Stockholders filed on March 19, 1996. | |
10.2
|
Independent Bank Corp. 1997 Employee Stock Option Plan incorporated by reference to the Definitive Proxy Statement for the 1997 Annual Meeting of Stockholders filed on March 20, 1997. | |
10.3
|
Independent Bank Corp. 2005 Employee Stock Plan, incorporated by reference to Form S-8 filed on July 28, 2005. | |
10.4
|
Renewal Rights Agreement dated as of September 14, 2000 by and between the Company and Rockland Trust, as Rights Agent, incorporated by reference to Form 8-K filed on October 23, 2000. | |
10.5
|
Independent Bank Corp. Deferred Compensation Program for Directors (restated as amended as of December 1, 2000), incorporated by reference to Form 10-K for the year ended December 31, 2000, filed on March 29, 2001. | |
10.6
|
Master Securities Repurchase Agreement, incorporated by reference to Form S-1 Registration Statement filed on September 18, 1992. | |
10.7
|
Revised employment agreements between Christopher Oddleifson, Raymond G. Fuerschbach, Edward F. Jankowski, Jane L. Lundquist, Gerard F. Nadeau, Edward H. Seksay, and Denis K. Sheahan and the Company and/or Rockland Trust and a Rockland Trust Company amended and restated Supplemental Executive Retirement Plan dated November 20, 2008, incorporated by reference to Form 8-K filed on November 21, 2008. | |
10.8
|
Specimen forms of stock option agreements for the Companys Chief Executive and other executive officers, incorporated by reference to Form 8-K filed on December 20, 2005. | |
10.9
|
On-Site Outsourcing Agreement by and between Fidelity Information Services, Inc. and Independent Bank Corp., effective as of November 1, 2004, incorporated by reference to Form 10-K for the year ended December 31, 2004 filed on March 4, 2005. Amendment to On-Site Outsourcing Agreement, incorporated by reference to Form 8-K filed on May 7, 2008. | |
10.10
|
New Markets Tax Credit program Allocation Agreement between the Community Development Financial Institutions Fund of the United States Department of the Treasury and Rockland Community Development with an Allocation Effective Date of September 22, 2004, incorporated by reference to Form 8-K filed on October 14, 2004. | |
10.11
|
Independent Bank Corp. 2006 Non-Employee Director Stock Plan, incorporated by reference to Form S-8 filed on April 17, 2006. | |
10.12
|
Independent Bank Corp. 2006 Stock Option Agreement for Non-Employee |
80
No. | Exhibit | |
Director, incorporated by reference to Form 10-Q filed on May 9, 2006. | ||
10.13
|
Independent Bank Corp. 2006 Restricted Stock Agreement for Non-Employee Director, incorporated by reference to Form 10-Q filed on May 9, 2006. | |
10.14
|
New Markets Tax Credit program Allocation Agreement between the Community Development Financial Institutions Fund of the United States Department of the Treasury and Rockland Community Development with an Allocation Effective Date of January 9, 2007, is incorporated by reference to Form 10-K for the year ended December 31, 2006 filed on February 28, 2007. | |
10.15
|
New Markets Tax Credit program Allocation Agreement between the Community Development Financial Institutions Fund of the United States Department of the Treasury and Rockland Community Development with an Allocation Effective Date of June 18, 2009, incorporated by reference to Form 10-Q filed on November 5, 2009. | |
10.16
|
Item Processing and Other Services Agreement dated and effective as of July 1, 2010 by and between Fidelity Information Services, Inc. and Independent Bank Corp., incorporated by reference to Form 10-Q filed August 5, 2010. | |
10.17
|
Independent Bank Corp. 2010 Non-Employee Director Stock Plan, incorporated by reference to Form 8-K filed May 24, 2010. | |
10.18
|
Independent Bank Corp. 2010 Stock Option Agreement for Non-Employee Director, incorporated by reference to Form 8-K filed May 24, 2010. | |
10.20
|
Independent Bank Corp. 2010 Restricted Stock Agreement for Non-Employee Director, incorporated by reference to Form 8-K filed May 24, 2010. | |
10.21
|
Independent Bank Corp. amendment to the Amended and Restated 2005 Employee Stock Plan, incorporated by reference to Form S-8 filed on June 17, 2011. | |
10.22
|
Independent Bank Corp. and Rockland Trust company Executive Officer Performance Incentive Plan, incorporated by reference to Form 8-K filed on April 20, 2011. | |
31.1
|
Section 302 Certification of Sarbanes-Oxley Act of 2002 is attached hereto.* | |
31.2
|
Section 302 Certification of Sarbanes-Oxley Act of 2002 is attached hereto.* | |
32.1
|
Section 906 Certification of Sarbanes-Oxley Act of 2002 is attached hereto.+ | |
32.2
|
Section 906 Certification of Sarbanes-Oxley Act of 2002 is attached hereto.+ | |
101.INS
|
XBRL Instance Document + | |
101.SCH
|
XBRL Taxonomy Extension Schema Document + | |
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document + | |
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document + | |
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document + | |
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document + |
81
* | Filed herewith | |
+ | Furnished herewith |
82
INDEPENDENT BANK CORP. (registrant) |
||||
Date: August 5, 2011 | /s/ Christopher Oddleifson | |||
Christopher Oddleifson | ||||
President and
Chief Executive Officer (Principal Executive Officer) |
||||
Date: August 5, 2011 | /s/ Denis K. Sheahan | |||
Denis K. Sheahan | ||||
Chief Financial Officer (Principal Financial Officer) |
||||
INDEPENDENT BANK CORP. (registrant) |
83