Citizens Republic Bancorp Reports Fourth Consecutive Quarterly Profit

News provided by

Citizens Republic Bancorp, Inc.

Apr 26, 2012, 04:05 ET

FLINT, Mich., April 26, 2012 /PRNewswire/ --

  • Net income attributable to common shareholders was $19 million or $0.47 per share for the first quarter
  • Improved earnings for the quarter were driven by a 44% reduction in provision expense as credit trends continue to improve
  • C&I loan portfolio grew by 7%
  • As announced last week, the written agreement with our regulators was terminated
  • Anticipate restoring our deferred tax asset in the second quarter with the continuation of positive earnings and performance trends

Citizens Republic Bancorp, Inc. (Nasdaq: CRBC) announced net income attributable to common shareholders of $18.9 million or $0.47 per diluted share for the three months ended March 31, 2012, compared to $12.3 million or $0.31 per diluted share for last quarter. 

"We are very pleased to report our fourth consecutive quarter of profitability. We continue to successfully execute on our strategies and organically grow our strong capital position," commented Cathleen Nash, president and chief executive officer.

"With continued positive performance of earnings and credit quality, we expect to fully restore the deferred tax asset next quarter," added Ms. Nash.

Balance Sheet

The balance sheet grew modestly to $9.6 billion compared to year end as a result of core deposit growth.  Core deposits were up $263.6 million or 5% over last quarter, reflecting our focus on generating and growing core deposit relationships. This growth in core deposits was deployed in investment securities.  Time deposits at March 31, 2012 decreased $168.2 million or 8% from last quarter as we continue to strategically reduce high cost single service and brokered time deposits. Loan balances were essentially unchanged compared to last quarter as the growth in our C&I portfolio was offset by declines in our CRE, home equity and residential mortgage portfolios. 

Capital

Citizens continues to grow capital organically through earnings and maintains a strong capital position.

Capital Ratios

Regulatory
Minimum for
"Well-
Capitalized"

March 31,

2012

December 31,

2011

March 31,

2011

Leverage ratio

5.00%

8.71%

8.45%

7.39%

Tier 1 capital ratio

6.00

13.70

13.51

11.90

Total capital ratio

10.00

14.97

14.84

13.24

Tier 1 common equity (non-GAAP)

7.49

7.24

5.93

Tangible equity to tangible assets (non-GAAP)

7.78

7.59

6.57

Tangible common equity to tangible assets (non-GAAP)

4.68

4.47

3.59






Net Interest Income and Margin

Net interest margin was 3.56% in the first quarter of 2012, a slight decrease from last quarter and a slight increase from the first quarter of last year. The decrease from last quarter was due to lower investment securities yields and a reduction in average loan balances, partially offset by declining deposit costs and reductions in high-cost funding. The slight increase from the first quarter of last year was due to declining deposit costs, reducing reliance on high-cost funding, and lower levels of non-performing assets, partially offset by lower investment securities yields.

Net interest income was $76.1 million for the first quarter of 2012, a decrease of $1.9 million from last quarter and a decrease of $2.5 million from the first quarter of last year. The decrease from the fourth quarter was due to the reduction in net interest margin while the decrease from the first quarter of 2011 reflects a reduction in average earning assets.

Credit Quality

Credit quality continues to benefit from the emphasis we have placed on improving the risk characteristics in our portfolios.

  • Total delinquencies decreased 22% from March 31 of last year to $40.0 million and currently represent 0.72% of portfolio loans.
  • Nonperforming assets declined to $90.6 million, an 11% decrease from the end of December and a decrease of 48% from March 31 of last year.
  • Net charge-offs for the first quarter decreased to $28.1 million, compared to $32.6 million last quarter and $160.6 million in the first quarter of last year.  First quarter 2012 activity included $7.1 million in consumer charge-offs that we do not expect to recur, related to the implementation of more conservative loss recognition parameters.  First quarter 2011 includes activity related to the problem asset resolution initiatives.
  • The provision for loan losses was $8.4 million in the first quarter, compared with $15.0 million last quarter and $88.7 million in the first quarter of last year. 
  • The allowance for loan losses was $153.0 million or 203% of nonperforming portfolio loans at March 31, 2012, compared to $172.7 million or 198% at the end of the prior quarter, and $224.1 million or 183% at the end of the first quarter last year.

Noninterest Income and Expense

Noninterest income was $24.2 million for the first quarter 2012, essentially unchanged from last quarter as gains on loans held for sale offset decreases in mortgage and other loan income and service charges on deposit accounts.  Noninterest income increased $1.1 million or 5% over the first quarter of 2011, reflecting gains on loans held for sale, partially offset by a decrease in mortgage and other loan income.

Noninterest expense was $67.1 million for the first quarter of 2012, essentially unchanged from last quarter as gains on ORE and lower credit costs were offset by higher payroll tax expense and increases in benefit costs primarily related to the reinstatement of the employer matching in the 401(k) plan.  Noninterest expense decreased $14.6 million or 18% from the first quarter of last year as losses on ORE and credit costs were significantly lower due to the completion of the problem asset resolution initiatives in early 2011.  Additionally, FDIC insurance costs decreased as we moved to the small bank pricing model.  These decreases were partially offset by higher salaries and incentives costs.

Conference Call

Citizens' senior management will review the quarter's results in a conference call at 10:00 a.m. ET on Friday, April 27, 2012.   A live audio webcast is available on Citizens' investor relations page at www.citizensbanking.com or by calling (800) 894-5910 (conference ID: Citizens Republic).  To listen to the conference call, please connect approximately 10 minutes prior to the scheduled conference time.

A recording will be available approximately two hours after the completion of the conference call at www.citizensbanking.com, where it will be archived for 90 days.

Use of Non-GAAP Financial Measures

In addition to results presented in accordance with generally accepted accounting principles ("GAAP"), this release includes non-GAAP financial measures such as tangible equity to tangible assets ratio, tangible common equity to tangible assets ratio, Tier 1 common equity ratio, pre-tax pre-provision profit, net interest margin, and the efficiency ratio.  Citizens believes these non-GAAP financial measures provide additional information that is useful to investors in understanding the underlying performance of Citizens, its business and performance trends, and such measures help facilitate performance comparisons with others in the banking industry.  Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied and are not audited.  Readers should be aware of these limitations and should be cautious as to their use of such measures.  To mitigate these limitations, Citizens has procedures in place to ensure that these measures are calculated using the appropriate GAAP or regulatory components in their entirety to ensure that Citizens' performance is properly reflected to facilitate consistent period-to-period comparisons.  Although Citizens believes the above non-GAAP financial measures disclosed in this release enhance investors' understanding of its business and performance, these non-GAAP measures should not be considered in isolation, or as a substitute for GAAP basis financial measures.  See our related Form 8-K for further discussion regarding these non-GAAP financial measures.

Corporate Profile

Citizens Republic Bancorp, Inc. is a diversified financial services company providing a wide range of commercial, consumer, mortgage banking, trust and financial planning services to a broad client base.  Citizens serves communities in Michigan, Ohio, and Wisconsin with 219 offices and 248 ATMs.  Citizens is the largest bank holding company headquartered in Michigan with roots dating back to 1871 and is the 57th largest bank holding company headquartered in the United States.  More information about Citizens is available at www.citizensbanking.com.  

Safe Harbor Statement

Discussions and statements in this release that are not statements of historical fact, including without limitation, statements that include terms such as "will," "may," "should," "believe," "expect," "anticipate," "estimate," "project," "intend," and "plan," and statements regarding Citizens' future financial and operating results, plans, objectives, expectations and intentions, are forward-looking statements that involve risks and uncertainties, many of which are beyond Citizens' control or are subject to change.  No forward-looking statement is a guarantee of future performance and actual results could differ materially. 

Factors that could cause or contribute to actual results differing materially from Citizens' expectations include the risks and uncertainties detailed from time to time in Citizens' annual and quarterly filings with the SEC, which are available at the SEC's web site www.sec.gov.  Other factors not currently anticipated may also materially and adversely affect Citizens' results of operations, cash flows, financial position and prospects.  There can be no assurance that future results will meet expectations.  While Citizens believes that the forward-looking statements in this release are reasonable, you should not place undue reliance on any forward-looking statement.  In addition, these statements speak only as of the date made.  Citizens does not undertake, and expressly disclaims, any obligation to update or alter any statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

Reverse Stock-Split Adjustment

All prior year shares outstanding and per share calculations have been adjusted to reflect the 1-for-10 reverse stock split that became effective July 1, 2011.





Consolidated Balance Sheets (Unaudited)





Citizens Republic Bancorp, Inc.







March 31,

December 31,

March 31,

(in thousands)

2012

2011

2011

Assets






Cash and due from banks

$    145,240

$       153,418

$    136,638

Money market investments

300,174

313,632

495,562

Investment Securities:






    Securities available for sale, at fair value

1,492,985

1,312,733

2,119,416

    Securities held to maturity, at amortized cost






      (fair value of $1,422,253, $1,487,550 and $541,646, respectively)

1,374,449

1,444,054

547,449

           Total investment securities

2,867,434

2,756,787

2,666,865

FHLB and Federal Reserve stock

117,943

117,943

143,873

Portfolio loans:






    Commercial and industrial

1,657,140

1,543,529

1,353,167

    Commercial real estate

1,487,059

1,544,361

1,794,284

           Total commercial

3,144,199

3,087,890

3,147,451

    Residential mortgage

611,166

637,245

727,304

    Direct consumer

903,238

933,314

1,006,424

    Indirect consumer

869,460

871,086

823,019

           Total portfolio loans

5,528,063

5,529,535

5,704,198

    Less: Allowance for loan losses

(153,007)

(172,726)

(224,117)

           Net portfolio loans

5,375,056

5,356,809

5,480,081

Loans held for sale

13,627

10,402

38,121

Premises and equipment

95,795

97,970

102,162

Goodwill

318,150

318,150

318,150

Other intangible assets

6,850

7,428

9,626

Bank owned life insurance

221,268

220,280

218,016

Other assets

115,809

110,030

115,019

Total assets

$  9,577,346

$    9,462,849

$  9,724,113

Liabilities 






Noninterest-bearing deposits

$  1,692,865

$    1,614,311

$  1,413,920

Interest-bearing demand deposits

993,143

951,590

956,676

Savings deposits

2,771,150

2,627,665

2,646,851

    Core deposits

5,457,158

5,193,566

5,017,447

Time deposits

2,033,204

2,201,375

2,674,058

          Total deposits

7,490,362

7,394,941

7,691,505

Federal funds purchased and securities sold






      under agreements to repurchase

34,779

40,098

40,069

Other short-term borrowings

---

---

690

Other liabilities

153,987

154,088

139,819

Long-term debt

853,599

854,185

906,629

    Total liabilities

8,532,727

8,443,312

8,778,712

Shareholders' Equity






Preferred stock - no par value

286,901

285,114

279,955

Common stock - no par value

1,435,327

1,434,803

1,432,271

Retained deficit

(675,654)

(694,560)

(752,547)

Accumulated other comprehensive loss

(1,955)

(5,820)

(14,278)

    Total shareholders' equity

1,044,619

1,019,537

945,401

    Total liabilities and shareholders' equity

$  9,577,346

$    9,462,849

$  9,724,113


















Consolidated Statements of Operations (Unaudited)



Citizens Republic Bancorp, Inc.

Three Months Ended


March 31,

(in thousands, except per share amounts)

2012

2011





Interest Income



    Interest and fees on loans

$74,879

$ 80,711

    Interest and dividends on investment securities:



        Taxable

17,309

19,610

        Tax-exempt

2,254

3,086

    Dividends on FHLB and Federal Reserve stock

1,140

1,125

    Money market investments

215

253

        Total interest income

95,797

104,785

Interest Expense



    Deposits

11,096

16,375

    Short-term borrowings

18

18

    Long-term debt

8,564

9,778

        Total interest expense

19,678

26,171

Net Interest Income

76,119

78,614

Provision for loan losses

8,397

88,724

    Net interest income (loss) after provision for loan losses

67,722

(10,110)

Noninterest Income



    Service charges on deposit accounts

8,985

9,429

    Trust fees

3,602

3,923

    Mortgage and other loan income

1,858

2,942

    Brokerage and investment fees

1,324

1,108

    ATM network user fees

1,808

1,755

    Bankcard fees


2,457

2,238

    Net gains (losses) on loans held for sale

916

(1,106)

    Investment securities gains (losses)

---

(383)

    Other income

3,290

3,237

        Total noninterest income

24,240

23,143

Noninterest Expense



    Salaries and employee benefits

33,298

31,018

    Occupancy

6,696

7,562

    Professional services

2,023

2,219

    Equipment

3,303

3,052

    Data processing services

4,048

4,352

    Advertising and public relations

1,335

569

    Postage and delivery

1,099

1,116

    Other loan expenses

3,186

5,255

    (Gains) losses on other real estate (ORE)

(385)

9,122

    ORE expenses

450

1,768

    Intangible asset amortization

578

828

    Other expense

11,470

14,795

        Total noninterest expense

67,101

81,656

Income (Loss) before Income Taxes


24,861

(68,623)

Income tax provision

---

55

Net Income (Loss)

24,861

(68,678)

Dividend on redeemable preferred stock

(5,955)

(5,627)

Net Income (Loss) Attributable to Common Shareholders

$18,906

$(74,305)

Net Income (Loss) Per Common Share:



    Basic

$ 0.47

$ (1.89)

    Diluted

0.47

(1.89)

Average Common Shares Outstanding:





    Basic

39,446

39,406

    Diluted

39,446

39,406














Selected Quarterly Information (Unaudited)











Three Months Ended




March 31,

December 31,

September 30,

June 30,

March 31,

(in thousands, except per share amounts)


2012

2011

2011

2011

2011

Summary of Operations












Net interest income


$ 76,119

$ 78,049

$ 78,841

$ 77,606

$ 78,614

Provision for loan losses


8,397

15,007

17,481

17,596

88,724

Noninterest income


24,240

24,363

24,427

23,325

23,143

Noninterest expense


67,101

66,640

65,411

69,444

81,656

Income tax provision (benefit)


---

2,521

(12,568)

(10,266)

55

Net income (loss)


24,861

18,244

32,944

24,157

(68,678)

Net income (loss) attributable to common shareholders (1)


18,906

12,347

27,183

18,456

(74,305)

Taxable equivalent adjustment


1,571

1,670

1,827

1,884

2,102














Per Common Share Data (2)














Net income (loss)












    Basic


$ 0.47

$ 0.31

$ 0.68

$ 0.46

$ (1.89)

    Diluted




0.47

0.31

0.68

0.46

(1.89)

Common book value


18.83

18.24

18.03

17.34

16.73

Tangible book value (non-GAAP)


17.88

17.24

16.96

16.22

15.53

Tangible common book value (non-GAAP)


10.75

10.16

9.92

9.22

8.49

Shares outstanding, end of period (3)


40,247,241

40,260,213

40,255,758

40,251,874

39,778,255

At Period End












Assets


$ 9,577,346

$ 9,462,849

$ 9,600,188

$ 9,495,630

$ 9,724,113

Earning assets


8,774,119

8,680,995

8,824,183

8,755,838

9,009,704

Portfolio loans


5,528,063

5,529,535

5,672,327

5,627,637

5,704,198

Allowance for loan losses


153,007

172,726

190,354

206,292

224,117

Deposits


7,490,362

7,394,941

7,539,904

7,444,703

7,691,505

Long-term debt


853,599

854,185

855,670

881,112

906,629

Shareholders' equity


1,044,619

1,019,537

1,009,143

979,722

945,401

Average for the Quarter












Assets


$ 9,521,386

$ 9,523,184

$ 9,596,275

$ 9,664,939

$ 9,898,921

Earning assets


8,750,078

8,761,435

8,856,072

8,942,348

9,231,042

Portfolio loans


5,508,528

5,632,432

5,663,058

5,668,752

6,051,407

Allowance for loan losses


172,509

190,163

206,119

223,922

295,232

Deposits


7,441,693

7,452,137

7,546,615

7,605,707

7,729,960

Long-term debt


853,912

856,206

862,479

905,902

971,076

Shareholders' equity


1,028,494

1,017,082

991,602

963,932

1,002,290














Financial Ratios (annualized)(4)












Return on average assets


1.05

%

0.76

%

1.36

%

1.00

%

(2.81)

%

Return on average shareholders' equity


9.72

7.12

13.18

10.05

(27.79)

Average shareholders' equity / average assets


10.80

10.68

10.33

9.97

10.13

Net interest margin (FTE) (5)


3.56

3.62

3.63

3.56

3.53

Efficiency ratio (non-GAAP)


65.20

61.39

59.89

63.85

67.09

Allowance for loan losses as a percent of portfolio loans


2.77

3.12

3.36

3.67

3.93

Allowance for loan losses as a percent of nonperforming loans(6)


202.56

197.56

190.09

185.90

182.72

Allowance for loan losses as a percent of nonperforming assets(6)


168.87

168.97

139.01

147.99

127.82

Nonperforming loans as a percent of portfolio loans(6)


1.37

1.58

1.77

1.97

2.15

Nonperforming assets as a percent of total loans plus ORAA(6)(7)


1.63

1.84

2.39

2.46

3.04

Nonperforming assets as a percent of total assets(6)


0.95

1.08

1.43

1.47

1.80

Ratio of net charge-offs during period to average portfolio loans


2.05

2.30

2.34

2.51

10.77

Leverage ratio


8.71

8.45

8.21

7.83

7.39

Tier 1 capital ratio


13.70

13.51

12.81

12.43

11.90

Total capital ratio


14.97

14.84

14.14

13.77

13.24














(1)Net income (loss) attributable to common shareholders includes a non-cash dividend to preferred shareholders of $6.0 million in the first quarter of 2012 and 
       $5.9 million, $5.8 million, $5.7 million and $5.6 million in the fourth, third, second and first quarters of 2011.

(2)Per common share data, as well as number of shares, were adjusted to reflect the 1 for 10 reverse stock split effective 7/1/11.


(3)Includes participating shares which are restricted stock units and restricted shares.






(4)Financial ratios are based upon continuing operations.







(5)Net interest margin is presented on an annual basis, includes taxable equivalent adjustments to interest income and is based on a tax rate of 35%.

(6)Nonperforming loans/assets exclude troubled debt restructurings (TDRs) that are on an accrual status and performing in accordance with their modified terms.

(7)Other real estate assets acquired ("ORAA") include loans held for sale.


















Loan Portfolios
(in thousands)

March 31, 2012

December 31, 2011

September 30, 2011

June 30, 2011

March 31, 2011













Land hold

$              5,387

$              6,542

$              6,818

$       7,426

$      17,273

Land development

7,226

13,104

22,232

22,507

22,744

Construction

6,410

5,847

5,410

8,111

23,297

Income producing

877,461

913,755

975,262

1,019,551

1,038,674

Owner-occupied

590,575

605,113

634,179

664,647

692,296

  Total commercial real estate

1,487,059

1,544,361

1,643,901

1,722,242

1,794,284

Commercial and industrial

1,657,140

1,543,529

1,531,492

1,349,803

1,353,167

  Total commercial

3,144,199

3,087,890

3,175,393

3,072,045

3,147,451













Residential mortgage

611,166

637,245

654,561

708,164

727,304

Direct consumer

903,238

933,314

954,831

978,319

1,006,424

Indirect consumer

869,460

871,086

887,542

869,109

823,019

  Total consumer

2,383,864

2,441,645

2,496,934

2,555,592

2,556,747

Total portfolio loans

$        5,528,063

$        5,529,535

$        5,672,327

$ 5,627,637

$ 5,704,198

























































Delinquency Rates By Loan Portfolio








March 31, 2012

December 31, 2011

September 30, 2011

June 30, 2011

March 31, 2011

30 to 89 days past due
(in thousands)

$

% of Portfolio

$

% of Portfolio

$

% of Portfolio

$

% of Portfolio

$

% of Portfolio
















Land hold

$         ---

---

%

$         21

0.3

%

$         ---

---

%

$        571

7.69

%

$        509

2.95

%

Land development

130

1.81

---

---

216

0.97

---

---

---

---

Construction

---

---

---

---

---

---

1,722

21.23

---

---

Income producing

1,447

0.16

2,508

0.27

3,325

0.34

1,597

0.16

4,817

0.46

Owner-occupied

5,177

0.88

2,345

0.39

5,817

0.92

6,524

0.98

1,981

0.29

  Total commercial real estate

6,754

0.45

4,874

0.32

9,358

0.57

10,414

0.60

7,307

0.41

Commercial and industrial

2,887

0.17

2,454

0.16

2,594

0.17

3,637

0.27

6,177

0.46

  Total commercial

9,641

0.31

7,328

0.24

11,952

0.38

14,051

0.46

13,484

0.43
















Residential mortgage

7,568

1.24

9,544

1.50

9,079

1.39

11,564

1.63

10,279

1.41

Direct consumer

14,002

1.55

17,810

1.91

18,629

1.95

20,393

2.08

17,210

1.71

Indirect consumer

8,780

1.01

13,067

1.50

9,898

1.12

10,681

1.23

10,187

1.24

  Total consumer

30,350

1.27

40,421

1.66

37,606

1.51

42,638

1.67

37,676

1.47

Total delinquent loans

$  39,991

0.72

$  47,749

0.86

$  49,558

0.87

$    56,689

1.01

$    51,160

0.90



















































Nonperforming Assets














March 31, 2012

December 31, 2011

September 30, 2011

June 30, 2011

March 31, 2011

(in thousands)

$

% of Portfolio

$

% of Portfolio

$

% of Portfolio

$

% of Portfolio

$

% of Portfolio




















Land hold

$ ---

---

%

$ ---

---

%

$ 167

2.45

%

$ 167

2.25

%

$ 1,154

6.68

%

Land development

207

2.87

213

1.62

12

0.05

379

1.68

78

0.35


Construction

150

2.34

150

2.57

257

4.76

559

6.89

395

1.70


Income producing

18,566

2.12

21,171

2.32

23,227

2.38

20,180

1.98

28,250

2.72


Owner-occupied

20,716

3.51

23,798

3.93

27,540

4.34

21,169

3.18

21,738

3.14


    Total commercial real estate

39,639

2.67

45,332

2.94

51,203

3.11

42,454

2.47

51,615

2.88


Commercial and industrial

14,629

0.88

16,946

1.10

18,536

1.21

20,995

1.56

25,785

1.91


    Total nonaccruing commercial

54,268

1.73

62,278

2.02

69,739

2.20

63,449

2.07

77,400

2.46




















Residential mortgage

11,137

1.82

11,312

1.78

13,074

2.00

30,693

4.33

30,385

4.18


Direct consumer

8,895

0.98

12,115

1.30

14,704

1.54

13,944

1.43

13,043

1.30


Indirect consumer

1,074

0.12

953

0.11

1,256

0.14

1,281

0.15

1,169

0.14


    Total nonaccruing consumer

21,106

0.89

24,380

1.00

29,034

1.16

45,918

1.80

44,597

1.74


        Total nonaccruing loans

75,374

1.37

86,658

1.57

98,773

1.74

109,367

1.94

121,997

2.14


Loans 90+ days still accruing

164

0.00

770

0.01

1,368

0.02

1,604

0.03

660

0.01


    Total nonperforming portfolio loans

75,538

1.37

87,428

1.58

100,141

1.77

110,971

1.97

122,657

2.15


Nonperforming held for sale

3,264

2,372

20,134

11,395

30,359



Other repossessed assets acquired

11,803

12,422

16,665

17,032

22,227



    Total nonperforming assets

$90,605

$102,222

$136,940

$139,398

$175,243





















Restructured loans still accruing

$17,911

$ 32,347

$ 12,206

$ 12,682

$ 12,714

























































Commercial inflows

$14,027

$ 13,269

$ 23,901

$ 24,370

$ 29,486



Commercial outflows

(22,036)

(20,730)

(17,611)

(38,321)

(128,477)



Net change

$ (8,009)

$ (7,461)

$ 6,290

$ (13,951)

$ (98,991)

























































Net Charge-Offs

Three Months Ended


March 31, 2012

December 31, 2011

September 30, 2011

June 30, 2011

March 31, 2011

(in thousands)

$

% of Portfolio*

$

% of Portfolio*

$

% of Portfolio*

$

% of Portfolio*

$

% of Portfolio*




















Land hold

$ ---

---

%

$ (33)

(2.00)

%

$ ---

---

%

$ 4,719

N/M

%

$ 4,942

N/M

%

Land development

(83)

(4.64)

3,079

93.21

43

0.76

38

0.68

4,439

79.15


Construction

(101)

(6.33)

(4)

(0.24)

(5)

(0.34)

(1)

(0.04)

5,578

97.09


Income producing

4,151

1.90

11,924

5.18

3,156

1.28

8,228

3.24

77,589

30.30


Owner-occupied

2,537

1.73

5,791

3.80

2,129

1.33

3,149

1.90

25,260

14.80


Total commercial real estate

6,504

1.76

20,757

5.33

5,323

1.28

16,133

3.76

117,808

26.63


Commercial and industrial

3,029

0.74

1,032

0.27

1,225

0.32

7,176

2.13

32,013

9.59


Total commercial

9,533

1.22

21,789

2.80

6,548

0.82

23,309

3.04

149,821

19.30




















Residential mortgage

5,076

3.34

1,170

0.73

18,364

11.13

4,431

2.51

3,400

1.90


Direct consumer

10,935

4.87

6,930

2.95

5,710

2.37

5,605

2.30

5,496

2.21


Indirect consumer

2,572

1.19

2,746

1.25

2,797

1.25

2,076

0.96

1,921

0.95


Total consumer

18,583

3.14

10,846

1.76

26,871

4.27

12,112

1.90

10,817

1.72


Total net charge-offs

$28,116

2.05

$ 32,635

2.30

$ 33,419

2.34

$ 35,421

2.51

$160,638

10.77




















* Represents an annualized rate.
















N/M - Not Meaningful





























Summary of Loan Loss Experience


















Three Months Ended 






March 31,

December 31,

September 30,

June 30,

March 31,

(in thousands)


2012

2011

2011

2011

2011














Allowance for loan losses - beginning of period


$172,726

$     190,354

$      206,292

$224,117

$296,031














Provision for loan losses


8,397

15,007

17,481

17,596

88,724














Charge-offs:













Commercial and industrial


2,388

1,490

994

4,016

29,712

Small business


1,265

399

1,132

3,853

4,078

Commercial real estate


8,997

21,581

5,860

16,371

118,721

    Total commercial


12,650

23,470

7,986

24,240

152,511

Residential mortgage


5,210

1,366

18,369

4,659

3,403

Direct consumer


11,527

7,544

6,398

6,522

6,468

Indirect consumer


3,251

3,229

3,430

2,639

2,472

 Total charge-offs


32,638

35,609

36,183

38,060

164,854














Recoveries:













Commercial and industrial


376

609

721

524

1,603

Small business


248

248

180

169

174

Commercial real estate


2,493

824

537

238

913

    Total commercial


3,117

1,681

1,438

931

2,690

Residential mortgage


134

197

5

228

3

Direct consumer


592

613

688

917

972

Indirect consumer


679

483

633

563

551

 Total recoveries


4,522

2,974

2,764

2,639

4,216














Net charge-offs


28,116

32,635

33,419

35,421

160,638




























Allowance for loan losses - end of period


$153,007

$     172,726

$      190,354

$206,292

$224,117





















Non-GAAP Reconciliation






March 31,

December 31,

September 30,

June 30,

March 31,