ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Washington | 91-1422237 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) | |
1301 “A” Street Tacoma, Washington | 98402-2156 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | ý | Accelerated filer | ¨ | |||
Non-accelerated filer | ¨ | Smaller reporting company | ¨ |
Page | ||
PART I — FINANCIAL INFORMATION | ||
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II — OTHER INFORMATION | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
March 31, 2013 | December 31, 2012 | ||||||||||||
ASSETS | (in thousands) | ||||||||||||
Cash and due from banks | $ | 91,889 | $ | 124,573 | |||||||||
Interest-earning deposits with banks | 356,056 | 389,353 | |||||||||||
Total cash and cash equivalents | 447,945 | 513,926 | |||||||||||
Securities available for sale at fair value (amortized cost of $984,075 and $969,359, respectively) | 1,012,162 | 1,001,665 | |||||||||||
Federal Home Loan Bank stock at cost | 21,621 | 21,819 | |||||||||||
Loans held for sale | 888 | 2,563 | |||||||||||
Loans, excluding covered loans, net of unearned income of ($6,985) and ($7,767), respectively | 2,621,212 | 2,525,710 | |||||||||||
Less: allowance for loan and lease losses | 51,119 | 52,244 | |||||||||||
Loans, excluding covered loans, net | 2,570,093 | 2,473,466 | |||||||||||
Covered loans, net of allowance for loan losses of ($29,489) and ($30,056), respectively | 363,213 | 391,337 | |||||||||||
Total loans, net | 2,933,306 | 2,864,803 | |||||||||||
FDIC loss-sharing asset | 83,115 | 96,354 | |||||||||||
Interest receivable | 16,321 | 14,268 | |||||||||||
Premises and equipment, net | 120,665 | 118,708 | |||||||||||
Other real estate owned ($13,811 and $16,311 covered by FDIC loss-share, respectively) | 25,727 | 26,987 | |||||||||||
Goodwill | 115,554 | 115,554 | |||||||||||
Core deposit intangible, net | 14,693 | 15,721 | |||||||||||
Other assets | 113,014 | 113,967 | |||||||||||
Total assets | $ | 4,905,011 | $ | 4,906,335 | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||
Deposits: | |||||||||||||
Noninterest-bearing | $ | 1,274,330 | $ | 1,321,171 | |||||||||
Interest-bearing | 2,772,209 | 2,720,914 | |||||||||||
Total deposits | 4,046,539 | 4,042,085 | |||||||||||
Federal Home Loan Bank advances | 6,634 | 6,644 | |||||||||||
Securities sold under agreements to repurchase | 25,000 | 25,000 | |||||||||||
Other liabilities | 57,178 | 68,598 | |||||||||||
Total liabilities | 4,135,351 | 4,142,327 | |||||||||||
Commitments and contingent liabilities | |||||||||||||
Shareholders’ equity: | |||||||||||||
March 31, 2013 | December 31, 2012 | ||||||||||||
Common stock (no par value) | |||||||||||||
Authorized shares | 63,033 | 63,033 | |||||||||||
Issued and outstanding | 39,844 | 39,686 | 582,348 | 581,471 | |||||||||
Retained earnings | 170,593 | 162,388 | |||||||||||
Accumulated other comprehensive income | 16,719 | 20,149 | |||||||||||
Total shareholders’ equity | 769,660 | 764,008 | |||||||||||
Total liabilities and shareholders’ equity | $ | 4,905,011 | $ | 4,906,335 |
Three Months Ended | ||||||||
March 31, | ||||||||
2013 | 2012 | |||||||
(in thousands except per share amounts) | ||||||||
Interest Income | ||||||||
Loans | $ | 48,028 | $ | 61,777 | ||||
Taxable securities | 4,234 | 5,245 | ||||||
Tax-exempt securities | 2,298 | 2,525 | ||||||
Federal funds sold and deposits in banks | 201 | 165 | ||||||
Total interest income | 54,761 | 69,712 | ||||||
Interest Expense | ||||||||
Deposits | 1,089 | 1,779 | ||||||
Federal Home Loan Bank advances | 71 | 750 | ||||||
Other borrowings | 119 | 120 | ||||||
Total interest expense | 1,279 | 2,649 | ||||||
Net Interest Income | 53,482 | 67,063 | ||||||
Provision (recapture) for loan and lease losses | (1,000 | ) | 4,500 | |||||
Provision for losses on covered loans | 980 | 15,685 | ||||||
Net interest income after provision for loan and lease losses | 53,502 | 46,878 | ||||||
Noninterest Income | ||||||||
Service charges and other fees | 7,594 | 7,177 | ||||||
Merchant services fees | 1,851 | 2,018 | ||||||
Investment securities gains, net | 370 | 62 | ||||||
Bank owned life insurance | 698 | 711 | ||||||
Change in FDIC loss-sharing asset | (10,483 | ) | (1,668 | ) | ||||
Other | 1,628 | 1,274 | ||||||
Total noninterest income | 1,658 | 9,574 | ||||||
Noninterest Expense | ||||||||
Compensation and employee benefits | 21,653 | 21,995 | ||||||
Occupancy | 4,753 | 5,333 | ||||||
Merchant processing | 857 | 873 | ||||||
Advertising and promotion | 870 | 882 | ||||||
Data processing and communications | 2,580 | 2,213 | ||||||
Legal and professional fees | 2,050 | 1,609 | ||||||
Taxes, licenses and fees | 1,387 | 1,355 | ||||||
Regulatory premiums | 857 | 860 | ||||||
Net cost (benefit) of operation of other real estate owned | (2,501 | ) | 910 | |||||
Amortization of intangibles | 1,029 | 1,150 | ||||||
Other | 4,514 | 7,172 | ||||||
Total noninterest expense | 38,049 | 44,352 | ||||||
Income before income taxes | 17,111 | 12,100 | ||||||
Income tax provision | 4,935 | 3,198 | ||||||
Net Income | $ | 12,176 | $ | 8,902 | ||||
Earnings per common share | ||||||||
Basic | $ | 0.31 | $ | 0.22 | ||||
Diluted | $ | 0.31 | $ | 0.22 | ||||
Dividends paid per common share | $ | 0.10 | $ | 0.37 | ||||
Weighted average number of common shares outstanding | 39,348 | 39,195 | ||||||
Weighted average number of diluted common shares outstanding | 39,351 | 39,298 |
Three Months Ended | ||||||||
March 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Net income as reported | $ | 12,176 | $ | 8,902 | ||||
Unrealized loss from securities: | ||||||||
Net unrealized holding loss from available for sale securities arising during the period, net of tax of $1,357 and $926 | (2,493 | ) | (1,645 | ) | ||||
Reclassification adjustment of net gain from sale of available for sale securities included in income, net of tax of $130 and $22 | (240 | ) | (40 | ) | ||||
Net unrealized loss from securities, net of reclassification adjustment | (2,733 | ) | (1,685 | ) | ||||
Pension plan liability adjustment: | ||||||||
Net unrealized loss from unfunded defined benefit plan liability arising during the period, net of tax of $412 and $0 | (757 | ) | — | |||||
Amortization of unrecognized net actuarial loss included in net periodic pension cost, net of tax of ($32) and ($7) | 60 | 13 | ||||||
Pension plan liability adjustment, net | (697 | ) | 13 | |||||
Total comprehensive income | $ | 8,746 | $ | 7,230 |
Common Stock | Retained Earnings | Accumulated Other Comprehensive Income | Total Shareholders’ Equity | ||||||||||||||||
Number of Shares | Amount | ||||||||||||||||||
(in thousands) | |||||||||||||||||||
Balance at January 1, 2012 | 39,506 | $ | 579,136 | $ | 155,069 | $ | 25,133 | $ | 759,338 | ||||||||||
Net income | — | — | 8,902 | — | 8,902 | ||||||||||||||
Other comprehensive loss | — | — | — | (1,672 | ) | (1,672 | ) | ||||||||||||
Issuance of common stock - stock option and other plans | 18 | 308 | — | — | 308 | ||||||||||||||
Issuance of common stock - restricted stock awards, net of canceled awards | 146 | 450 | — | — | 450 | ||||||||||||||
Cash dividends paid on common stock | — | — | (14,623 | ) | — | (14,623 | ) | ||||||||||||
Balance at March 31, 2012 | 39,670 | $ | 579,894 | $ | 149,348 | $ | 23,461 | $ | 752,703 | ||||||||||
Balance at January 1, 2013 | 39,686 | $ | 581,471 | $ | 162,388 | $ | 20,149 | $ | 764,008 | ||||||||||
Net income | — | — | 12,176 | — | 12,176 | ||||||||||||||
Other comprehensive income | — | — | — | (3,430 | ) | (3,430 | ) | ||||||||||||
Issuance of common stock - stock option and other plans | 18 | 326 | — | — | 326 | ||||||||||||||
Issuance of common stock - restricted stock awards, net of canceled awards | 140 | 551 | — | — | 551 | ||||||||||||||
Cash dividends paid on common stock | — | — | (3,971 | ) | — | (3,971 | ) | ||||||||||||
Balance at March 31, 2013 | 39,844 | $ | 582,348 | $ | 170,593 | $ | 16,719 | $ | 769,660 |
Three Months Ended March 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Cash Flows From Operating Activities | ||||||||
Net Income | $ | 12,176 | $ | 8,902 | ||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||
Provision (recapture) for loan and lease losses and losses on covered loans | (20 | ) | 20,185 | |||||
Stock-based compensation expense | 551 | 450 | ||||||
Depreciation, amortization and accretion | 13,015 | 16,141 | ||||||
Investment securities gain, net | (370 | ) | (62 | ) | ||||
Net realized gain on sale of other assets | (80 | ) | (21 | ) | ||||
Net realized gain on sale of other real estate owned | (2,787 | ) | (2,954 | ) | ||||
Write-down on other real estate owned | 158 | 3,127 | ||||||
Net change in: | ||||||||
Loans held for sale | 1,675 | 82 | ||||||
Interest receivable | (2,053 | ) | (750 | ) | ||||
Interest payable | (40 | ) | (148 | ) | ||||
Other assets | 3,192 | (1,166 | ) | |||||
Other liabilities | (11,739 | ) | (8,403 | ) | ||||
Net cash provided by operating activities | 13,678 | 35,383 | ||||||
Cash Flows From Investing Activities | ||||||||
Loans originated and acquired, net of principal collected | (71,815 | ) | (16,814 | ) | ||||
Purchases of: | ||||||||
Securities available for sale | (84,673 | ) | (30,177 | ) | ||||
Premises and equipment | (3,624 | ) | (6,682 | ) | ||||
Proceeds from: | ||||||||
FDIC reimbursement on loss-sharing asset | 3,119 | 14,804 | ||||||
Sales of securities available for sale | 3,023 | 3,845 | ||||||
Principal repayments and maturities of securities available for sale | 64,758 | 49,654 | ||||||
Sales of other assets | 287 | — | ||||||
Sales of covered other real estate owned | 6,438 | 8,025 | ||||||
Sales of other real estate and other personal property owned | 2,019 | 7,829 | ||||||
Capital improvements on other real estate properties | — | (90 | ) | |||||
Net cash (used in) provided by investing activities | (80,468 | ) | 30,394 | |||||
Cash Flows From Financing Activities | ||||||||
Net increase in deposits | 4,454 | 49,916 | ||||||
Proceeds from: | ||||||||
Federal Home Loan Bank advances | 100 | — | ||||||
Federal Reserve Bank borrowings | 50 | — | ||||||
Exercise of stock options | 326 | 308 | ||||||
Payments for: | ||||||||
Repayment of Federal Home Loan Bank advances | (100 | ) | (4,210 | ) | ||||
Repayment of Federal Reserve Bank borrowings | (50 | ) | — | |||||
Common stock dividends | (3,971 | ) | (14,623 | ) | ||||
Net cash provided by financing activities | 809 | 31,391 | ||||||
Increase (Decrease) in cash and cash equivalents | (65,981 | ) | 97,168 | |||||
Cash and cash equivalents at beginning of period | 513,926 | 294,289 | ||||||
Cash and cash equivalents at end of period | $ | 447,945 | $ | 391,457 | ||||
Supplemental Information: | ||||||||
Cash paid during the year for: | ||||||||
Cash paid for interest | $ | 1,319 | $ | 2,797 | ||||
Cash paid for income tax | $ | 5,500 | $ | — | ||||
Non-cash investing activities | ||||||||
Loans transferred to other real estate owned | $ | 4,114 | $ | 6,092 |
1. | Basis of Presentation and Significant Accounting Policies |
2. | Accounting Pronouncements Recently Issued |
3. | Securities |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
(in thousands) | ||||||||||||||||
March 31, 2013 | ||||||||||||||||
U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations | $ | 502,652 | $ | 15,484 | $ | (6,181 | ) | $ | 511,955 | |||||||
State and municipal securities | 256,608 | 19,586 | (589 | ) | 275,605 | |||||||||||
U.S. government agency and government-sponsored enterprise securities | 201,680 | 828 | (981 | ) | 201,527 | |||||||||||
U.S. government securities | 19,811 | — | (105 | ) | 19,706 | |||||||||||
Other securities | 3,324 | 87 | (42 | ) | 3,369 | |||||||||||
Total | $ | 984,075 | $ | 35,985 | $ | (7,898 | ) | $ | 1,012,162 | |||||||
December 31, 2012 | ||||||||||||||||
U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations | $ | 561,076 | $ | 16,719 | $ | (5,426 | ) | $ | 572,369 | |||||||
State and municipal securities | 265,070 | 20,893 | (388 | ) | 285,575 | |||||||||||
U.S. government agency and government-sponsored enterprise securities | 120,085 | 851 | (435 | ) | 120,501 | |||||||||||
U.S. government securities | 19,804 | 39 | (15 | ) | 19,828 | |||||||||||
Other securities | 3,324 | 104 | (36 | ) | 3,392 | |||||||||||
Total | $ | 969,359 | $ | 38,606 | $ | (6,300 | ) | $ | 1,001,665 |
March 31, 2013 | ||||||||
Amortized Cost | Fair Value | |||||||
(in thousands) | ||||||||
Due within one year | $ | 17,771 | $ | 18,025 | ||||
Due after one year through five years | 158,054 | 161,996 | ||||||
Due after five years through ten years | 244,429 | 249,097 | ||||||
Due after ten years | 560,497 | 579,677 | ||||||
Other securities with no stated maturity | 3,324 | 3,367 | ||||||
Total investment securities available-for-sale | $ | 984,075 | $ | 1,012,162 |
Carrying Amount | ||||
(in thousands) | ||||
To Washington and Oregon State to secure public deposits | $ | 282,025 | ||
To Federal Reserve Bank to secure borrowings | 45,405 | |||
Other securities pledged | 44,948 | |||
Total securities pledged as collateral | $ | 372,378 |
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||
(in thousands) | ||||||||||||||||||
March 31, 2013 | ||||||||||||||||||
U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations | 160,587 | (5,914 | ) | 11,250 | (267 | ) | 171,837 | (6,181 | ) | |||||||||
State and municipal securities | 21,513 | (584 | ) | 210 | (5 | ) | 21,723 | (589 | ) | |||||||||
U.S. government agency and government-sponsored enterprise securities | 137,814 | (981 | ) | — | — | 137,814 | (981 | ) | ||||||||||
U.S. government securities | 19,706 | (105 | ) | — | — | 19,706 | (105 | ) | ||||||||||
Other securities | — | — | 958 | (42 | ) | 958 | (42 | ) | ||||||||||
Total | 339,620 | (7,584 | ) | 12,418 | (314 | ) | 352,038 | (7,898 | ) | |||||||||
December 31, 2012 | ||||||||||||||||||
U.S. government agency and government-sponsored enterprise mortgage-backed securities and collateralized mortgage obligations | 167,739 | (5,090 | ) | 12,204 | (336 | ) | 179,943 | (5,426 | ) | |||||||||
State and municipal securities | 20,413 | (383 | ) | 210 | (5 | ) | 20,623 | (388 | ) | |||||||||
U.S. government agency and government-sponsored enterprise securities | 56,600 | (435 | ) | — | — | 56,600 | (435 | ) | ||||||||||
U.S. government securities | 9,914 | (15 | ) | — | — | 9,914 | (15 | ) | ||||||||||
Other securities | — | — | 964 | (36 | ) | 964 | (36 | ) | ||||||||||
Total | 254,666 | (5,923 | ) | 13,378 | (377 | ) | 268,044 | (6,300 | ) |
4. | Noncovered Loans |
March 31, 2013 | December 31, 2012 | |||||||
Noncovered loans: | (in thousands) | |||||||
Commercial business | $ | 1,204,760 | $ | 1,155,158 | ||||
Real estate: | ||||||||
One-to-four family residential | 43,604 | 43,922 | ||||||
Commercial and multifamily residential | 1,106,987 | 1,061,201 | ||||||
Total real estate | 1,150,591 | 1,105,123 | ||||||
Real estate construction: | ||||||||
One-to-four family residential | 52,946 | 50,602 | ||||||
Commercial and multifamily residential | 67,213 | 65,101 | ||||||
Total real estate construction | 120,159 | 115,703 | ||||||
Consumer | 152,687 | 157,493 | ||||||
Less: Net unearned income | (6,985 | ) | (7,767 | ) | ||||
Total noncovered loans, net of unearned income | 2,621,212 | 2,525,710 | ||||||
Less: Allowance for loan and lease losses | (51,119 | ) | (52,244 | ) | ||||
Total noncovered loans, net | $ | 2,570,093 | $ | 2,473,466 | ||||
Loans held for sale | $ | 888 | $ | 2,563 |
March 31, 2013 | December 31, 2012 | |||||||||||||||
Recorded Investment Nonaccrual Loans | Unpaid Principal Balance Nonaccrual Loans | Recorded Investment Nonaccrual Loans | Unpaid Principal Balance Nonaccrual Loans | |||||||||||||
Noncovered loans: | (in thousands) | |||||||||||||||
Commercial business | ||||||||||||||||
Secured | $ | 9,383 | $ | 16,192 | $ | 9,037 | $ | 17,821 | ||||||||
Unsecured | 121 | 121 | 262 | 262 | ||||||||||||
Real estate: | ||||||||||||||||
One-to-four family residential | 1,684 | 2,023 | 2,349 | 2,672 | ||||||||||||
Commercial & multifamily residential | ||||||||||||||||
Commercial land | 3,347 | 6,701 | 4,076 | 7,491 | ||||||||||||
Income property | 8,230 | 11,439 | 8,520 | 10,815 | ||||||||||||
Owner occupied | 5,825 | 6,997 | 6,608 | 7,741 | ||||||||||||
Real estate construction: | ||||||||||||||||
One-to-four family residential | ||||||||||||||||
Land and acquisition | 2,646 | 5,841 | 3,084 | 6,704 | ||||||||||||
Residential construction | 388 | 388 | 1,816 | 2,431 | ||||||||||||
Consumer | 1,262 | 1,559 | 1,643 | 1,940 | ||||||||||||
Total | $ | 32,886 | $ | 51,261 | $ | 37,395 | $ | 57,877 |
Current Loans | 30 - 59 Days Past Due | 60 - 89 Days Past Due | Total Past Due | Nonaccrual Loans | Total Loans | |||||||||||||||||||
March 31, 2013 | (in thousands) | |||||||||||||||||||||||
Noncovered loans: | ||||||||||||||||||||||||
Commercial business | ||||||||||||||||||||||||
Secured | $ | 1,142,942 | $ | 3,739 | $ | 1,154 | $ | 4,893 | $ | 9,383 | $ | 1,157,218 | ||||||||||||
Unsecured | 43,918 | 112 | 164 | 276 | 121 | 44,315 | ||||||||||||||||||
Real estate: | ||||||||||||||||||||||||
One-to-four family residential | 41,330 | 849 | 61 | 910 | 1,684 | 43,924 | ||||||||||||||||||
Commercial & multifamily residential | ||||||||||||||||||||||||
Commercial land | 43,785 | 1,006 | — | 1,006 | 3,347 | 48,138 | ||||||||||||||||||
Income property | 645,058 | 2,434 | — | 2,434 | 8,230 | 655,722 | ||||||||||||||||||
Owner occupied | 389,803 | 2,525 | 1,621 | 4,146 | 5,825 | 399,774 | ||||||||||||||||||
Real estate construction: | ||||||||||||||||||||||||
One-to-four family residential | ||||||||||||||||||||||||
Land and acquisition | 18,330 | 204 | 314 | 518 | 2,646 | 21,494 | ||||||||||||||||||
Residential construction | 30,768 | — | — | — | 388 | 31,156 | ||||||||||||||||||
Commercial & multifamily residential | ||||||||||||||||||||||||
Income property | 24,479 | — | — | — | — | 24,479 | ||||||||||||||||||
Owner occupied | 42,192 | — | — | — | — | 42,192 | ||||||||||||||||||
Consumer | 150,423 | 885 | 230 | 1,115 | 1,262 | 152,800 | ||||||||||||||||||
Total | $ | 2,573,028 | $ | 11,754 | $ | 3,544 | $ | 15,298 | $ | 32,886 | $ | 2,621,212 | ||||||||||||
Current Loans | 30 - 59 Days Past Due | 60 - 89 Days Past Due | Total Past Due | Nonaccrual Loans | Total Loans | |||||||||||||||||||
December 31, 2012 | (in thousands) | |||||||||||||||||||||||
Noncovered loans: | ||||||||||||||||||||||||
Commercial business | ||||||||||||||||||||||||
Secured | $ | 1,091,770 | $ | 4,259 | $ | 1,485 | $ | 5,744 | $ | 9,037 | $ | 1,106,551 | ||||||||||||
Unsecured | 44,817 | 252 | 12 | 264 | 262 | 45,343 | ||||||||||||||||||
Real estate: | ||||||||||||||||||||||||
One-to-four family residential | 41,508 | 193 | 142 | 335 | 2,349 | 44,192 | ||||||||||||||||||
Commercial & multifamily residential | ||||||||||||||||||||||||
Commercial land | 42,818 | 311 | 122 | 433 | 4,076 | 47,327 | ||||||||||||||||||
Income property | 603,339 | 2,726 | 227 | 2,953 | 8,520 | 614,812 | ||||||||||||||||||
Owner occupied | 387,525 | 1,040 | — | 1,040 | 6,608 | 395,173 | ||||||||||||||||||
Real estate construction: | ||||||||||||||||||||||||
One-to-four family residential | ||||||||||||||||||||||||
Land and acquisition | 15,412 | — | — | — | 3,084 | 18,496 | ||||||||||||||||||
Residential construction | 29,848 | — | — | — | 1,816 | 31,664 | ||||||||||||||||||
Commercial & multifamily residential | ||||||||||||||||||||||||
Income property | 28,342 | — | — | — | — | 28,342 | ||||||||||||||||||
Owner occupied | 36,211 | — | — | — | — | 36,211 | ||||||||||||||||||
Consumer | 155,207 | 387 | 362 | 749 | 1,643 | 157,599 | ||||||||||||||||||
Total | $ | 2,476,797 | $ | 9,168 | $ | 2,350 | $ | 11,518 | $ | 37,395 | $ | 2,525,710 |
Recorded Investment of Loans Collectively Measured for Contingency Provision | Recorded Investment of Loans Individually Measured for Specific Impairment | Impaired Loans With Recorded Allowance | Impaired Loans Without Recorded Allowance | |||||||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Recorded Investment | Unpaid Principal Balance | ||||||||||||||||||||||||
March 31, 2013 | (in thousands) | |||||||||||||||||||||||||||
Noncovered loans: | ||||||||||||||||||||||||||||
Commercial business | ||||||||||||||||||||||||||||
Secured | $ | 1,152,246 | $ | 4,972 | $ | 293 | $ | 414 | $ | 67 | $ | 4,680 | $ | 7,488 | ||||||||||||||
Unsecured | 44,231 | 84 | 84 | 84 | 84 | — | — | |||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||
One-to-four family residential | 42,380 | 1,544 | 340 | 362 | 108 | 1,204 | 1,341 | |||||||||||||||||||||
Commercial & multifamily residential | ||||||||||||||||||||||||||||
Commercial land | 45,366 | 2,772 | — | — | — | 2,772 | 5,845 | |||||||||||||||||||||
Income property | 646,457 | 9,265 | 18 | 66 | 18 | 9,246 | 12,442 | |||||||||||||||||||||
Owner occupied | 388,437 | 11,337 | 605 | 606 | 34 | 10,732 | 14,135 | |||||||||||||||||||||
Real estate construction: | ||||||||||||||||||||||||||||
One-to-four family residential | ||||||||||||||||||||||||||||
Land and acquisition | 18,914 | 2,580 | 117 | 116 | 74 | 2,463 | 4,033 | |||||||||||||||||||||
Residential construction | 31,011 | 145 | — | — | — | 145 | 144 | |||||||||||||||||||||
Commercial & multifamily residential | ||||||||||||||||||||||||||||
Income property | 24,479 | — | — | — | — | — | — | |||||||||||||||||||||
Owner occupied | 42,192 | — | — | — | — | — | — | |||||||||||||||||||||
Consumer | 152,674 | 126 | — | — | — | 126 | 126 | |||||||||||||||||||||
Total | $ | 2,588,387 | $ | 32,825 | $ | 1,457 | $ | 1,648 | $ | 385 | $ | 31,368 | $ | 45,554 | ||||||||||||||
Recorded Investment of Loans Collectively Measured for Contingency Provision | Recorded Investment of Loans Individually Measured for Specific Impairment | Impaired Loans With Recorded Allowance | Impaired Loans Without Recorded Allowance | |||||||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Recorded Investment | Unpaid Principal Balance | ||||||||||||||||||||||||
December 31, 2012 | (in thousands) | |||||||||||||||||||||||||||
Noncovered loans: | ||||||||||||||||||||||||||||
Commercial business | ||||||||||||||||||||||||||||
Secured | $ | 1,101,689 | $ | 4,862 | $ | 690 | $ | 1,994 | $ | 113 | $ | 4,172 | $ | 6,769 | ||||||||||||||
Unsecured | 45,251 | 92 | 92 | 92 | 92 | — | — | |||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||
One-to-four family residential | 42,103 | 2,089 | 345 | 364 | 112 | 1,744 | 1,902 | |||||||||||||||||||||
Commercial & multifamily residential | ||||||||||||||||||||||||||||
Commercial land | 44,672 | 2,655 | — | — | — | 2,655 | 5,727 | |||||||||||||||||||||
Income property | 606,656 | 8,156 | 2,670 | 2,727 | 1,040 | 5,486 | 7,860 | |||||||||||||||||||||
Owner occupied | 383,269 | 11,904 | 608 | 610 | 38 | 11,296 | 14,642 | |||||||||||||||||||||
Real estate construction: | ||||||||||||||||||||||||||||
One-to-four family residential | ||||||||||||||||||||||||||||
Land and acquisition | 15,677 | 2,819 | — | — | — | 2,819 | 4,813 | |||||||||||||||||||||
Residential construction | 29,707 | 1,957 | — | — | — | 1,957 | 2,570 | |||||||||||||||||||||
Commercial & multifamily residential | ||||||||||||||||||||||||||||
Income property | 28,342 | — | — | — | — | — | — | |||||||||||||||||||||
Owner occupied | 36,211 | — | — | — | — | — | — | |||||||||||||||||||||
Consumer | 157,472 | 127 | — | — | — | 127 | 127 | |||||||||||||||||||||
Total | $ | 2,491,049 | $ | 34,661 | $ | 4,405 | $ | 5,787 | $ | 1,395 | $ | 30,256 | $ | 44,410 |
Three Months Ended March 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Average Recorded Investment Impaired Loans | Interest Recognized on Impaired Loans | Average Recorded Investment Impaired Loans | Interest Recognized on Impaired Loans | |||||||||||||
Noncovered loans: | (in thousands) | |||||||||||||||
Commercial business | ||||||||||||||||
Secured | $ | 4,917 | $ | 4 | $ | 9,709 | $ | 309 | ||||||||
Unsecured | 88 | 1 | 119 | 1 | ||||||||||||
Real estate: | ||||||||||||||||
One-to-four family residential | 1,816 | 4 | 2,266 | 1 | ||||||||||||
Commercial & multifamily residential | ||||||||||||||||
Commercial land | 2,714 | — | 3,405 | — | ||||||||||||
Income property | 8,710 | 29 | 8,083 | 115 | ||||||||||||
Owner occupied | 11,620 | 279 | 14,152 | 107 | ||||||||||||
Real estate construction: | ||||||||||||||||
One-to-four family residential | ||||||||||||||||
Land and acquisition | 2,700 | 1 | 6,539 | — | ||||||||||||
Residential construction | 1,051 | 2 | 4,286 | 358 | ||||||||||||
Commercial & multifamily residential | ||||||||||||||||
Income property | — | — | 6,045 | — | ||||||||||||
Consumer | 127 | 2 | 1,672 | — | ||||||||||||
Total | $ | 33,743 | $ | 322 | $ | 56,276 | $ | 891 |
Three months ended March 31, 2013 | |||||||||||
Number of TDR Modifications | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | |||||||||
Noncovered loans: | (dollars in thousands) | ||||||||||
Real estate construction: | |||||||||||
One-to-four family residential: | |||||||||||
Land and acquisition | 1 | $ | 117 | $ | 117 | ||||||
Total | 1 | $ | 117 | $ | 117 |
5. | Allowance for Noncovered Loan and Lease Losses and Unfunded Commitments and Letters of Credit |
1. | General valuation allowance consistent with the Contingencies topic of the FASB Accounting Standards Codification ("ASC"). |
2. | Classified loss reserves on specific relationships. Specific allowances for identified problem loans are determined in accordance with the Receivables topic of the FASB ASC. |
3. | The unallocated allowance provides for other factors inherent in our loan portfolio that may not have been contemplated in the general and specific components of the allowance. This unallocated amount generally comprises less than 5% of the allowance. The unallocated amount is reviewed quarterly based on trends in credit losses, the results of credit reviews and overall economic trends. |