Consolidated Balance Sheets |
1 | |||
Loans and Leases Composition |
2 | |||
Deposit Composition |
3 | |||
Consolidated Quarterly Average Balance Sheets |
4 | |||
Consolidated Quarterly Net Interest Margin Analysis |
5 | |||
Quarterly Average Loans and Leases and Deposit Composition By Business
Segment |
6 | |||
Selected Quarterly Income Statement Data |
7 | |||
Quarterly Mortgage Banking Income |
8 | |||
Quarterly Credit Reserves Analysis |
9 | |||
Quarterly Net Charge-Off Analysis |
10 | |||
Quarterly Nonaccrual Loans (NALs), Nonperforming Assets (NPAs) and
Past Due Loans and Leases |
11 | |||
Quarterly Stock Summary, Capital, and Other Data |
12 |
Contents
Change | |||||||||||||||||||||
2008 | 2007 | March 08 vs 07 | |||||||||||||||||||
(in thousands, except number of shares) | March 31, | December 31, | March 31, | Amount | Percent | ||||||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||||||||
Assets |
|||||||||||||||||||||
Cash and due from banks |
$ | 1,242,422 | $ | 1,416,597 | $ | 867,256 | $ | 375,166 | 43.3 | % | |||||||||||
Federal
funds sold and securities purchased under resale agreements |
1,038,820 | 592,649 | 701,951 | 336,869 | 48.0 | ||||||||||||||||
Interest bearing deposits in banks |
253,221 | 340,090 | 100,417 | 152,804 | N.M. | ||||||||||||||||
Trading account securities |
1,246,877 | 1,032,745 | 76,631 | 1,170,246 | N.M. | ||||||||||||||||
Loans held for sale |
632,266 | 494,379 | 277,538 | 354,728 | N.M. | ||||||||||||||||
Investment securities |
4,313,006 | 4,500,171 | 3,724,676 | 588,330 | 15.8 | ||||||||||||||||
Loans and leases (1) |
41,014,219 | 40,054,338 | 26,266,746 | 14,747,473 | 56.1 | ||||||||||||||||
Allowance for loan and lease losses |
(627,615 | ) | (578,442 | ) | (282,976 | ) | (344,639 | ) | N.M. | ||||||||||||
Net loans and leases |
40,386,604 | 39,475,896 | 25,983,770 | 14,402,834 | 55.4 | ||||||||||||||||
Bank owned life insurance |
1,327,031 | 1,313,281 | 1,097,986 | 229,045 | 20.9 | ||||||||||||||||
Premises and equipment |
544,718 | 557,565 | 377,687 | 167,031 | 44.2 | ||||||||||||||||
Goodwill |
3,047,407 | 3,059,333 | 569,779 | 2,477,628 | N.M. | ||||||||||||||||
Other intangible assets |
409,055 | 427,970 | 57,165 | 351,890 | N.M. | ||||||||||||||||
Accrued income and other assets |
1,610,542 | 1,486,792 | 1,144,443 | 466,099 | 40.7 | ||||||||||||||||
Total Assets |
$ | 56,051,969 | $ | 54,697,468 | $ | 34,979,299 | $ | 21,072,670 | 60.2 | % | |||||||||||
Liabilities and Shareholders Equity |
|||||||||||||||||||||
Liabilities |
|||||||||||||||||||||
Deposits (2) |
$ | 38,116,341 | $ | 37,742,921 | $ | 24,585,893 | $ | 13,530,448 | 55.0 | % | |||||||||||
Short-term borrowings |
3,336,738 | 2,843,638 | 1,577,732 | 1,759,006 | N.M. | ||||||||||||||||
Federal Home Loan Bank advances |
3,685,858 | 3,083,555 | 1,197,411 | 2,488,447 | N.M. | ||||||||||||||||
Other long-term debt |
1,907,881 | 1,937,078 | 2,173,818 | (265,937 | ) | (12.2 | ) | ||||||||||||||
Subordinated notes |
1,928,518 | 1,934,276 | 1,280,870 | 647,648 | 50.6 | ||||||||||||||||
Accrued expenses and other liabilities |
1,170,054 | 1,206,860 | 1,112,215 | 57,839 | 5.2 | ||||||||||||||||
Total Liabilities |
50,145,390 | 48,748,328 | 31,927,939 | 18,217,451 | 57.1 | ||||||||||||||||
Shareholders equity |
|||||||||||||||||||||
Preferred
stock authorized 6,617,808 shares;
none outstanding |
| | | | | ||||||||||||||||
Common stock |
|||||||||||||||||||||
No par value and authorized 500,000,000 shares;
issued 236,301,562 shares; outstanding 235,713,500
shares. |
| | 2,072,976 | (2,072,976 | ) | N.M. | |||||||||||||||
Par value of $0.01 and authorized 1,000,000,000 shares at
March 31, 2008; issued 367,007,244 and 367,000,815 shares,
respectively; outstanding
366,226,146 and 366,261,676 shares, respectively. |
3,670 | 3,670 | | 3,670 | N.M. | ||||||||||||||||
Capital surplus |
5,241,033 | 5,237,783 | | 5,241,033 | N.M. | ||||||||||||||||
Less
781,098; 739,139 and 588,062
treasury shares at cost, respectively |
(14,834 | ) | (14,391 | ) | (11,128 | ) | (3,706 | ) | 33.3 | ||||||||||||
Accumulated other comprehensive loss |
(122,217 | ) | (49,611 | ) | (59,509 | ) | (62,708 | ) | N.M. | ||||||||||||
Retained earnings |
798,927 | 771,689 | 1,049,021 | (250,094 | ) | (23.8 | ) | ||||||||||||||
Total Shareholders Equity |
5,906,579 | 5,949,140 | 3,051,360 | 2,855,219 | 93.6 | ||||||||||||||||
Total Liabilities and Shareholders Equity |
$ | 56,051,969 | $ | 54,697,468 | $ | 34,979,299 | $ | 21,072,670 | 60.2 | % | |||||||||||
N.M., not a meaningful value. | ||
(1) | See page 2 for detail of loans and leases. | |
(2) | See page 3 for detail of deposits. |
1
Change | |||||||||||||||||||||||||||||||||
2008 | 2007 | March 08 vs 07 | |||||||||||||||||||||||||||||||
(in thousands) | March 31, | December 31, | March 31, | Amount | Percent | ||||||||||||||||||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||||||||||||||||||||
By Type |
|||||||||||||||||||||||||||||||||
Commercial: |
|||||||||||||||||||||||||||||||||
Middle market commercial and
industrial |
$ | 10,772,168 | 26.3 | % | $ | 10,241,115 | 25.6 | $ | 6,181,645 | 23.5 | % | $ | 4,590,523 | 74.3 | % | ||||||||||||||||||
Middle market commercial real estate: |
|||||||||||||||||||||||||||||||||
Construction |
2,035,974 | 5.0 | 1,958,191 | 4.9 | 1,187,991 | 4.5 | 847,983 | 71.4 | |||||||||||||||||||||||||
Commercial |
6,108,593 | 14.9 | 5,855,240 | 14.6 | 2,811,772 | 10.7 | 3,296,821 | N.M. | |||||||||||||||||||||||||
Middle market commercial real estate |
8,144,567 | 19.9 | 7,813,431 | 19.5 | 3,999,763 | 15.2 | 4,144,804 | N.M. | |||||||||||||||||||||||||
Small business |
4,245,004 | 10.4 | 4,254,071 | 10.6 | 2,452,843 | 9.4 | 1,792,161 | 73.1 | |||||||||||||||||||||||||
Total commercial |
23,161,739 | 56.6 | 22,308,617 | 55.7 | 12,634,251 | 48.1 | 10,527,488 | 83.3 | |||||||||||||||||||||||||
Consumer: |
|||||||||||||||||||||||||||||||||
Automobile loans |
3,491,369 | 8.5 | 3,114,029 | 7.8 | 2,251,215 | 8.6 | 1,240,154 | 55.1 | |||||||||||||||||||||||||
Automobile leases |
999,629 | 2.4 | 1,179,505 | 2.9 | 1,623,758 | 6.2 | (624,129 | ) | (38.4 | ) | |||||||||||||||||||||||
Home equity |
7,296,448 | 17.8 | 7,290,063 | 18.2 | 4,914,462 | 18.7 | 2,381,986 | 48.5 | |||||||||||||||||||||||||
Residential mortgage |
5,366,414 | 13.1 | 5,447,126 | 13.6 | 4,405,943 | 16.8 | 960,471 | 21.8 | |||||||||||||||||||||||||
Other loans |
698,620 | 1.6 | 714,998 | 1.8 | 437,117 | 1.6 | 261,503 | 59.8 | |||||||||||||||||||||||||
Total consumer |
17,852,480 | 43.4 | 17,745,721 | 44.3 | 13,632,495 | 51.9 | 4,219,985 | 31.0 | |||||||||||||||||||||||||
Total loans and leases |
$ | 41,014,219 | 100.0 | % | $ | 40,054,338 | 100.0 | $ | 26,266,746 | 100.0 | $ | 14,747,473 | 56.1 | ||||||||||||||||||||
By Business Segment |
|||||||||||||||||||||||||||||||||
Regional Banking: |
|||||||||||||||||||||||||||||||||
Central Ohio |
$ | 5,229,075 | 12.7 | % | $ | 5,110,270 | 12.8 | $ | 3,669,569 | 14.0 | % | $ | 1,559,506 | 42.5 | % | ||||||||||||||||||
Northwest Ohio |
2,280,255 | 5.6 | 2,284,141 | 5.7 | 455,075 | 1.7 | 1,825,180 | N.M. | |||||||||||||||||||||||||
Greater Cleveland |
3,194,533 | 7.8 | 3,097,120 | 7.7 | 2,019,820 | 7.7 | 1,174,713 | 58.2 | |||||||||||||||||||||||||
Greater Akron/Canton |
2,058,031 | 5.0 | 2,020,447 | 5.0 | 1,318,932 | 5.0 | 739,099 | 56.0 | |||||||||||||||||||||||||
Southern Ohio/Kentucky |
2,900,259 | 7.1 | 2,659,870 | 6.6 | 2,159,407 | 8.2 | 740,852 | 34.3 | |||||||||||||||||||||||||
Mahoning Valley |
893,317 | 2.2 | 927,918 | 2.3 | | | 893,317 | | |||||||||||||||||||||||||
Ohio Valley |
870,833 | 2.1 | 870,276 | 2.2 | | | 870,833 | | |||||||||||||||||||||||||
West Michigan |
2,535,359 | 6.2 | 2,477,617 | 6.2 | 2,453,300 | 9.3 | 82,059 | 3.3 | |||||||||||||||||||||||||
East Michigan |
1,766,750 | 4.3 | 1,750,171 | 4.4 | 1,646,028 | 6.3 | 120,722 | 7.3 | |||||||||||||||||||||||||
Western Pennsylvania |
1,031,319 | 2.5 | 1,053,685 | 2.6 | | | 1,031,319 | | |||||||||||||||||||||||||
Pittsburgh |
926,487 | 2.3 | 900,789 | 2.2 | | | 926,487 | | |||||||||||||||||||||||||
Central Indiana |
1,507,934 | 3.7 | 1,421,116 | 3.5 | 971,186 | 3.7 | 536,748 | 55.3 | |||||||||||||||||||||||||
West Virginia |
1,158,915 | 2.8 | 1,155,719 | 2.9 | 1,109,197 | 4.2 | 49,718 | 4.5 | |||||||||||||||||||||||||
Other Regional |
6,251,173 | 15.3 | 6,176,485 | 15.6 | 3,691,557 | 14.1 | 2,559,616 | 69.3 | |||||||||||||||||||||||||
Regional Banking |
32,604,240 | 79.5 | 31,905,624 | 79.7 | 19,494,071 | 74.2 | 13,110,169 | 67.3 | |||||||||||||||||||||||||
Dealer Sales |
5,862,116 | 14.3 | 5,563,415 | 13.9 | 4,903,370 | 18.7 | 958,746 | 19.6 | |||||||||||||||||||||||||
Private Financial and Capital Markets Group |
2,547,863 | 6.2 | 2,585,299 | 6.4 | 1,869,305 | 7.1 | 678,558 | 36.3 | |||||||||||||||||||||||||
Treasury / Other |
| | | | | | | | |||||||||||||||||||||||||
Total loans and leases |
$ | 41,014,219 | 100.0 | % | $ | 40,054,338 | 100.0 | $ | 26,266,746 | 100.0 | % | $ | 14,747,473 | 56.1 | % | ||||||||||||||||||
N.M., not a meaningful value. |
2
Change | |||||||||||||||||||||||||||||||||
2008 | 2007 | March 08 vs 07 | |||||||||||||||||||||||||||||||
(in thousands) | March 31, | December 31, | March 31, | Amount | Percent | ||||||||||||||||||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||||||||||||||||||||
By Type |
|||||||||||||||||||||||||||||||||
Demand deposits non-interest bearing |
$ | 5,160,068 | 13.5 | % | $ | 5,371,747 | 14.2 | % | $ | 3,696,231 | 15.0 | % | $ | 1,463,837 | 39.6 | % | |||||||||||||||||
Demand deposits interest bearing |
4,040,747 | 10.6 | 4,048,873 | 10.7 | 2,486,304 | 10.1 | 1,554,443 | 62.5 | |||||||||||||||||||||||||
Money market deposits |
6,681,412 | 17.5 | 6,643,242 | 17.6 | 5,568,104 | 22.6 | 1,113,308 | 20.0 | |||||||||||||||||||||||||
Savings and other domestic deposits |
5,083,046 | 13.3 | 4,968,615 | 13.2 | 2,947,786 | 12.0 | 2,135,260 | 72.4 | |||||||||||||||||||||||||
Core certificates of deposit |
10,582,394 | 27.8 | 10,736,146 | 28.4 | 5,408,289 | 22.0 | 5,174,105 | 95.7 | |||||||||||||||||||||||||
Total core deposits |
31,547,667 | 82.7 | 31,768,623 | 84.1 | 20,106,714 | 81.7 | 11,440,953 | 56.9 | |||||||||||||||||||||||||
Other domestic deposits of $100,000 or
more |
2,160,339 | 5.7 | 1,870,730 | 5.0 | 1,218,498 | 5.0 | 941,841 | 77.3 | |||||||||||||||||||||||||
Brokered deposits and negotiable CDs |
3,361,957 | 8.8 | 3,376,854 | 8.9 | 2,721,927 | 11.1 | 640,030 | 23.5 | |||||||||||||||||||||||||
Deposits in foreign offices |
1,046,378 | 2.8 | 726,714 | 2.0 | 538,754 | 2.2 | 507,624 | 94.2 | |||||||||||||||||||||||||
Total deposits |
$ | 38,116,341 | 100.0 | % | $ | 37,742,921 | 100.0 | % | $ | 24,585,893 | 100.0 | % | $ | 13,530,448 | 55.0 | % | |||||||||||||||||
Total core deposits: |
|||||||||||||||||||||||||||||||||
Commercial |
$ | 8,715,690 | 27.6 | % | $ | 9,017,852 | 28.4 | % | $ | 6,314,309 | 31.4 | % | $ | 2,401,381 | 38.0 | % | |||||||||||||||||
Personal |
22,831,977 | 72.4 | 22,750,771 | 71.6 | 13,792,405 | 68.6 | 9,039,572 | 65.5 | |||||||||||||||||||||||||
Total core deposits |
$ | 31,547,667 | 100.0 | % | $ | 31,768,623 | 100.0 | % | $ | 20,106,714 | 100.0 | % | $ | 11,440,953 | 56.9 | % | |||||||||||||||||
By Business Segment |
|||||||||||||||||||||||||||||||||
Regional Banking: |
|||||||||||||||||||||||||||||||||
Central Ohio |
$ | 6,665,031 | 17.5 | % | $ | 6,332,143 | 16.8 | % | $ | 4,984,215 | 20.3 | % | $ | 1,680,816 | 33.7 | % | |||||||||||||||||
Northwest Ohio |
2,798,377 | 7.3 | 2,837,735 | 7.5 | 1,062,255 | 4.3 | 1,736,122 | N.M. | |||||||||||||||||||||||||
Greater Cleveland |
3,263,713 | 8.6 | 3,194,780 | 8.5 | 2,020,165 | 8.2 | 1,243,548 | 61.6 | |||||||||||||||||||||||||
Greater Akron/Canton |
2,660,216 | 7.0 | 2,636,564 | 7.0 | 1,909,677 | 7.8 | 750,539 | 39.3 | |||||||||||||||||||||||||
Southern Ohio/Kentucky |
2,676,381 | 7.0 | 2,628,766 | 7.0 | 2,353,129 | 9.6 | 323,252 | 13.7 | |||||||||||||||||||||||||
Mahoning Valley |
1,583,723 | 4.2 | 1,550,676 | 4.1 | | | 1,583,723 | | |||||||||||||||||||||||||
Ohio Valley |
1,291,747 | 3.4 | 1,289,027 | 3.4 | | | 1,291,747 | | |||||||||||||||||||||||||
West Michigan |
2,937,318 | 7.7 | 2,919,926 | 7.7 | 2,826,489 | 11.5 | 110,829 | 3.9 | |||||||||||||||||||||||||
East Michigan |
2,445,148 | 6.4 | 2,442,354 | 6.5 | 2,460,100 | 10.0 | (14,952 | ) | (0.6 | ) | |||||||||||||||||||||||
Western Pennsylvania |
1,630,114 | 4.3 | 1,643,483 | 4.4 | | | 1,630,114 | | |||||||||||||||||||||||||
Pittsburgh |
956,254 | 2.5 | 948,451 | 2.5 | | | 956,254 | | |||||||||||||||||||||||||
Central Indiana |
1,881,781 | 4.9 | 1,896,433 | 5.0 | 903,119 | 3.7 | 978,662 | N.M. | |||||||||||||||||||||||||
West Virginia |
1,584,233 | 4.2 | 1,589,903 | 4.2 | 1,547,095 | 6.3 | 37,138 | 2.4 | |||||||||||||||||||||||||
Other Regional |
781,967 | 2.1 | 771,261 | 2.0 | 571,095 | 2.3 | 210,872 | 36.9 | |||||||||||||||||||||||||
Regional Banking |
33,156,003 | 87.0 | 32,681,502 | 86.6 | 20,637,339 | 83.9 | 12,518,664 | 60.7 | |||||||||||||||||||||||||
Dealer Sales |
55,557 | 0.1 | 58,196 | 0.2 | 54,644 | 0.2 | 913 | 1.7 | |||||||||||||||||||||||||
Private Financial and Capital Markets Group |
1,542,631 | 4.0 | 1,626,043 | 4.3 | 1,174,618 | 4.8 | 368,013 | 31.3 | |||||||||||||||||||||||||
Treasury / Other (1) |
3,362,150 | 8.9 | 3,377,180 | 8.9 | 2,719,292 | 11.1 | 642,858 | 23.6 | |||||||||||||||||||||||||
Total deposits |
$ | 38,116,341 | 100.0 | % | $ | 37,742,921 | 100.0 | % | $ | 24,585,893 | 100.0 | % | $ | 13,530,448 | 55.0 | % | |||||||||||||||||
N.M., not a meaningful value. | ||
(1) | Comprised largely of national market deposits. |
3
Average Balances | Change | ||||||||||||||||||||||||||||
Fully taxable equivalent basis | 2008 | 2007 | 1Q08 vs 1Q07 | ||||||||||||||||||||||||||
(in millions) | First | Fourth | Third | Second | First | Amount | Percent | ||||||||||||||||||||||
Assets |
|||||||||||||||||||||||||||||
Interest bearing deposits in banks |
$ | 293 | $ | 324 | $ | 292 | $ | 259 | $ | 93 | $ | 200 | N.M. | % | |||||||||||||||
Trading account securities |
1,186 | 1,122 | 1,149 | 230 | 48 | 1,138 | N.M. | ||||||||||||||||||||||
Federal funds sold and securities purchased
under resale agreements |
769 | 730 | 557 | 574 | 503 | 266 | 52.9 | ||||||||||||||||||||||
Loans held for sale |
565 | 493 | 419 | 291 | 242 | 323 | N.M. | ||||||||||||||||||||||
Investment securities: |
|||||||||||||||||||||||||||||
Taxable |
3,774 | 3,807 | 3,951 | 3,253 | 3,595 | 179 | 5.0 | ||||||||||||||||||||||
Tax-exempt |
703 | 689 | 675 | 629 | 591 | 112 | 19.0 | ||||||||||||||||||||||
Total investment securities |
4,477 | 4,496 | 4,626 | 3,882 | 4,186 | 291 | 7.0 | ||||||||||||||||||||||
Loans and leases: (1) |
|||||||||||||||||||||||||||||
Commercial: |
|||||||||||||||||||||||||||||
Middle market commercial and industrial |
10,506 | 10,445 | 10,328 | 6,227 | 6,084 | 4,422 | 72.7 | ||||||||||||||||||||||
Middle market commercial real estate: |
|||||||||||||||||||||||||||||
Construction |
1,999 | 1,870 | 1,784 | 1,246 | 1,151 | 848 | 73.7 | ||||||||||||||||||||||
Commercial |
5,912 | 5,801 | 5,637 | 2,872 | 2,775 | 3,137 | N.M. | ||||||||||||||||||||||
Middle market commercial real estate |
7,911 | 7,671 | 7,421 | 4,118 | 3,926 | 3,985 | N.M. | ||||||||||||||||||||||
Small business |
4,213 | 4,207 | 4,267 | 2,473 | 2,449 | 1,764 | 72.0 | ||||||||||||||||||||||
Total commercial |
22,630 | 22,323 | 22,016 | 12,818 | 12,459 | 10,171 | 81.6 | ||||||||||||||||||||||
Consumer: |
|||||||||||||||||||||||||||||
Automobile loans |
3,309 | 3,052 | 2,931 | 2,322 | 2,215 | 1,094 | 49.4 | ||||||||||||||||||||||
Automobile leases |
1,090 | 1,272 | 1,423 | 1,551 | 1,698 | (608 | ) | (35.8 | ) | ||||||||||||||||||||
Automobile loans and leases |
4,399 | 4,324 | 4,354 | 3,873 | 3,913 | 486 | 12.4 | ||||||||||||||||||||||
Home equity |
7,274 | 7,297 | 7,468 | 4,973 | 4,913 | 2,361 | 48.1 | ||||||||||||||||||||||
Residential mortgage |
5,351 | 5,437 | 5,456 | 4,351 | 4,496 | 855 | 19.0 | ||||||||||||||||||||||
Other loans |
713 | 728 | 534 | 424 | 422 | 291 | 69.0 | ||||||||||||||||||||||
Total consumer |
17,737 | 17,786 | 17,812 | 13,621 | 13,744 | 3,993 | 29.1 | ||||||||||||||||||||||
Total loans and leases |
40,367 | 40,109 | 39,828 | 26,439 | 26,203 | 14,164 | 54.1 | ||||||||||||||||||||||
Allowance for loan and lease losses |
(630 | ) | (474 | ) | (475 | ) | (297 | ) | (278 | ) | (352 | ) | N.M. | ||||||||||||||||
Net loans and leases |
39,737 | 39,635 | 39,353 | 26,142 | 25,925 | 13,812 | 53.3 | ||||||||||||||||||||||
Total earning assets |
47,657 | 47,274 | 46,871 | 31,675 | 31,275 | 16,382 | 52.4 | ||||||||||||||||||||||
Cash and due from banks |
1,036 | 1,098 | 1,111 | 748 | 826 | 210 | 25.4 | ||||||||||||||||||||||
Intangible assets |
3,472 | 3,440 | 3,337 | 626 | 627 | 2,845 | N.M. | ||||||||||||||||||||||
All other assets |
3,350 | 3,142 | 3,124 | 2,398 | 2,480 | 870 | 35.1 | ||||||||||||||||||||||
Total Assets |
$ | 54,885 | $ | 54,480 | $ | 53,968 | $ | 35,150 | $ | 34,930 | $ | 19,955 | 57.1 | % | |||||||||||||||
Liabilities and Shareholders Equity |
|||||||||||||||||||||||||||||
Deposits: |
|||||||||||||||||||||||||||||
Demand deposits non-interest bearing |
$ | 5,034 | $ | 5,218 | $ | 5,384 | $ | 3,591 | $ | 3,530 | $ | 1,504 | 42.6 | % | |||||||||||||||
Demand deposits interest bearing |
3,934 | 3,929 | 3,808 | 2,404 | 2,349 | 1,585 | 67.5 | ||||||||||||||||||||||
Money market deposits |
6,753 | 6,845 | 6,869 | 5,466 | 5,489 | 1,264 | 23.0 | ||||||||||||||||||||||
Savings and other domestic deposits |
5,004 | 5,012 | 5,127 | 2,931 | 2,898 | 2,106 | 72.7 | ||||||||||||||||||||||
Core certificates of deposit |
10,796 | 10,674 | 10,425 | 5,591 | 5,455 | 5,341 | 97.9 | ||||||||||||||||||||||
Total core deposits |
31,521 | 31,678 | 31,613 | 19,983 | 19,721 | 11,800 | 59.8 | ||||||||||||||||||||||
Other domestic deposits of $100,000 or more |
1,983 | 1,731 | 1,610 | 1,056 | 1,148 | 835 | 72.7 | ||||||||||||||||||||||
Brokered deposits and negotiable CDs |
3,542 | 3,518 | 3,728 | 2,682 | 3,020 | 522 | 17.3 | ||||||||||||||||||||||
Deposits in foreign offices |
885 | 748 | 701 | 552 | 562 | 323 | 57.5 | ||||||||||||||||||||||
Total deposits |
37,931 | 37,675 | 37,652 | 24,273 | 24,451 | 13,480 | 55.1 | ||||||||||||||||||||||
Short-term borrowings |
2,772 | 2,489 | 2,542 | 2,075 | 1,863 | 909 | 48.8 | ||||||||||||||||||||||
Federal Home Loan Bank advances |
3,389 | 3,070 | 2,553 | 1,329 | 1,128 | 2,261 | N.M. | ||||||||||||||||||||||
Subordinated notes and other long-term debt |
3,814 | 3,875 | 3,912 | 3,470 | 3,487 | 327 | 9.4 | ||||||||||||||||||||||
Total interest bearing liabilities |
42,872 | 41,891 | 41,275 | 27,556 | 27,399 | 15,473 | 56.5 | ||||||||||||||||||||||
All other liabilities |
1,104 | 1,160 | 1,103 | 960 | 987 | 117 | 11.9 | ||||||||||||||||||||||
Shareholders equity |
5,875 | 6,211 | 6,206 | 3,043 | 3,014 | 2,861 | 94.9 | ||||||||||||||||||||||
Total Liabilities and Shareholders Equity |
$ | 54,885 | $ | 54,480 | $ | 53,968 | $ | 35,150 | $ | 34,930 | $ | 19,955 | 57.1 | % | |||||||||||||||
N.M., not a meaningful value. | ||
(1) | For purposes of this analysis, nonaccrual loans are reflected in the average balances of loans. |
4
Average Rates (2) | ||||||||||||||||||||
2008 | 2007 | |||||||||||||||||||
Fully taxable equivalent basis (1) | First | Fourth | Third | Second | First | |||||||||||||||
Assets |
||||||||||||||||||||
Interest bearing deposits in banks |
3.97 | % | 4.30 | % | 4.69 | % | 6.47 | % | 5.13 | % | ||||||||||
Trading account securities |
5.27 | 5.72 | 6.01 | 5.74 | 5.27 | |||||||||||||||
Federal funds sold and securities purchased
under resale agreements |
3.07 | 4.59 | 5.26 | 5.28 | 5.24 | |||||||||||||||
Loans held for sale |
5.41 | 5.86 | 5.13 | 5.79 | 6.27 | |||||||||||||||
Investment securities: |
||||||||||||||||||||
Taxable |
5.71 | 5.98 | 6.09 | 6.11 | 6.13 | |||||||||||||||
Tax-exempt |
6.75 | 6.74 | 6.78 | 6.69 | 6.66 | |||||||||||||||
Total investment securities |
5.88 | 6.10 | 6.19 | 6.20 | 6.21 | |||||||||||||||
Loans and leases: (3) |
||||||||||||||||||||
Commercial: |
||||||||||||||||||||
Middle market commercial and industrial |
6.16 | 6.81 | 7.79 | 7.39 | 7.49 | |||||||||||||||
Middle market commercial real estate: |
||||||||||||||||||||
Construction |
5.82 | 7.21 | 7.68 | 7.62 | 8.41 | |||||||||||||||
Commercial |
6.07 | 6.98 | 7.62 | 7.34 | 7.64 | |||||||||||||||
Middle market commercial real estate |
6.01 | 7.04 | 7.64 | 7.42 | 7.87 | |||||||||||||||
Small business |
7.02 | 7.44 | 7.49 | 7.30 | 7.24 | |||||||||||||||
Total commercial |
6.27 | 7.00 | 7.68 | 7.38 | 7.56 | |||||||||||||||
Consumer: |
||||||||||||||||||||
Automobile loans |
7.25 | 7.31 | 7.25 | 7.10 | 6.92 | |||||||||||||||
Automobile leases |
5.53 | 5.52 | 5.56 | 5.34 | 5.25 | |||||||||||||||
Automobile loans and leases |
6.82 | 6.78 | 6.70 | 6.39 | 6.25 | |||||||||||||||
Home equity |
7.21 | 7.81 | 7.94 | 7.63 | 7.67 | |||||||||||||||
Residential mortgage |
5.86 | 5.88 | 6.06 | 5.61 | 5.54 | |||||||||||||||
Other loans |
10.43 | 10.91 | 11.48 | 9.57 | 9.52 | |||||||||||||||
Total consumer |
6.84 | 7.10 | 7.17 | 6.69 | 6.58 | |||||||||||||||
Total loans and leases |
6.51 | 7.05 | 7.45 | 7.03 | 7.05 | |||||||||||||||
Total earning assets |
6.40 | % | 6.88 | % | 7.25 | % | 6.92 | % | 6.98 | % | ||||||||||
Liabilities and Shareholders Equity |
||||||||||||||||||||
Deposits: |
||||||||||||||||||||
Demand deposits non-interest bearing |
| % | | % | | % | | % | | % | ||||||||||
Demand deposits interest bearing |
0.82 | 1.14 | 1.53 | 1.22 | 1.21 | |||||||||||||||
Money market deposits |
2.83 | 3.67 | 3.78 | 3.85 | 3.78 | |||||||||||||||
Savings and other domestic deposits |
2.27 | 2.54 | 2.54 | 2.23 | 2.09 | |||||||||||||||
Core certificates of deposit |
4.68 | 4.83 | 4.99 | 4.79 | 4.72 | |||||||||||||||
Total core deposits |
3.18 | 3.55 | 3.69 | 3.50 | 3.42 | |||||||||||||||
Other domestic deposits of $100,000 or more |
4.39 | 4.99 | 4.79 | 5.31 | 5.34 | |||||||||||||||
Brokered deposits and negotiable CDs |
4.43 | 5.24 | 5.42 | 5.53 | 5.50 | |||||||||||||||
Deposits in foreign offices |
2.16 | 3.27 | 3.29 | 3.16 | 2.99 | |||||||||||||||
Total deposits |
3.36 | 3.80 | 3.94 | 3.84 | 3.81 | |||||||||||||||
Short-term borrowings |
2.78 | 3.74 | 4.10 | 4.50 | 4.32 | |||||||||||||||
Federal Home Loan Bank advances |
3.94 | 5.03 | 5.31 | 4.76 | 4.44 | |||||||||||||||
Subordinated notes and other long-term debt |
5.12 | 5.93 | 6.15 | 5.96 | 5.77 | |||||||||||||||
Total interest bearing liabilities |
3.53 | % | 4.09 | % | 4.24 | % | 4.20 | % | 4.14 | % | ||||||||||
Net interest rate spread |
2.87 | % | 2.79 | % | 3.01 | % | 2.72 | % | 2.84 | % | ||||||||||
Impact of non-interest bearing funds on margin |
0.36 | 0.47 | 0.51 | 0.54 | 0.52 | |||||||||||||||
Net interest margin |
3.23 | % | 3.26 | % | 3.52 | % | 3.26 | % | 3.36 | % | ||||||||||
(1) | Fully taxable equivalent (FTE) yields are calculated assuming a 35% tax rate. See page 7 for the FTE adjustment. | |
(2) | Loan, lease, and deposit average rates include impact of applicable derivatives and non-deferrable fees. | |
(3) | For purposes of this analysis, nonaccrual loans are reflected in the average balances of loans. |
5
Average Balances | Change | ||||||||||||||||||||||||||||
2008 | 2007 | 1Q08 vs 1Q07 | |||||||||||||||||||||||||||
(in millions) | First | Fourth | Third | Second | First | Amount | Percent | ||||||||||||||||||||||
Loans and direct financing leases (1) |
|||||||||||||||||||||||||||||
Regional Banking: |
|||||||||||||||||||||||||||||
Central Ohio |
$ | 5,099 | $ | 5,011 | $ | 4,910 | $ | 3,644 | $ | 3,601 | $ | 1,498 | 41.6 | % | |||||||||||||||
Northwest Ohio |
2,295 | 2,318 | 2,331 | 452 | 455 | 1,840 | N.M. | ||||||||||||||||||||||
Greater Cleveland |
3,148 | 3,079 | 2,993 | 2,064 | 1,964 | 1,184 | 60.3 | ||||||||||||||||||||||
Greater Akron/Canton |
2,021 | 2,037 | 2,024 | 1,328 | 1,326 | 695 | 52.4 | ||||||||||||||||||||||
Southern Ohio/Kentucky |
2,782 | 2,576 | 2,527 | 2,205 | 2,181 | 601 | 27.6 | ||||||||||||||||||||||
Mahoning Valley |
888 | 925 | 871 | | | 888 | | ||||||||||||||||||||||
Ohio Valley |
870 | 867 | 759 | | | 870 | | ||||||||||||||||||||||
West Michigan |
2,508 | 2,470 | 2,484 | 2,447 | 2,441 | 67 | 2.7 | ||||||||||||||||||||||
East Michigan |
1,734 | 1,767 | 1,750 | 1,639 | 1,626 | 108 | 6.6 | ||||||||||||||||||||||
Western Pennsylvania |
1,032 | 1,092 | 1,069 | | | 1,032 | | ||||||||||||||||||||||
Pittsburgh |
909 | 896 | 912 | | | 909 | | ||||||||||||||||||||||
Central Indiana |
1,463 | 1,397 | 1,406 | 982 | 959 | 504 | 52.6 | ||||||||||||||||||||||
West Virginia |
1,160 | 1,135 | 1,163 | 1,128 | 1,106 | 54 | 4.9 | ||||||||||||||||||||||
Other Regional |
6,185 | 6,500 | 6,754 | 3,774 | 3,780 | 2,405 | 63.6 | ||||||||||||||||||||||
Regional Banking |
32,094 | 32,070 | 31,953 | 19,663 | 19,439 | 12,655 | 65.1 | ||||||||||||||||||||||
Dealer Sales |
5,720 | 5,515 | 5,376 | 4,888 | 4,917 | 803 | 16.3 | ||||||||||||||||||||||
Private Financial and Capital Markets Group |
2,553 | 2,524 | 2,499 | 1,888 | 1,847 | 706 | 38.2 | ||||||||||||||||||||||
Treasury / Other |
| | | | | | | ||||||||||||||||||||||
Total loans and direct financing leases |
$ | 40,367 | $ | 40,109 | $ | 39,828 | $ | 26,439 | $ | 26,203 | $ | 14,164 | 54.1 | % | |||||||||||||||
Deposit composition
(1) |
|||||||||||||||||||||||||||||
Regional Banking: |
|||||||||||||||||||||||||||||
Central Ohio |
$ | 6,359 | $ | 6,169 | $ | 6,026 | $ | 4,962 | $ | 4,889 | $ | 1,470 | 30.1 | % | |||||||||||||||
Northwest Ohio |
2,828 | 2,825 | 2,856 | 1,070 | 1,061 | 1,767 | N.M. | ||||||||||||||||||||||
Greater Cleveland |
3,189 | 3,089 | 2,969 | 2,024 | 2,005 | 1,184 | 59.1 | ||||||||||||||||||||||
Greater Akron/Canton |
2,669 | 2,634 | 2,613 | 1,898 | 1,903 | 766 | 40.3 | ||||||||||||||||||||||
Southern Ohio/Kentucky |
2,655 | 2,644 | 2,564 | 2,333 | 2,285 | 370 | 16.2 | ||||||||||||||||||||||
Mahoning Valley |
1,542 | 1,550 | 1,562 | | | 1,542 | | ||||||||||||||||||||||
Ohio Valley |
1,284 | 1,345 | 1,380 | | | 1,284 | | ||||||||||||||||||||||
West Michigan |
2,904 | 2,925 | 2,868 | 2,784 | 2,790 | 114 | 4.1 | ||||||||||||||||||||||
East Michigan |
2,420 | 2,404 | 2,423 | 2,397 | 2,431 | (11 | ) | (0.5 | ) | ||||||||||||||||||||
Western Pennsylvania |
1,631 | 1,655 | 1,695 | | | 1,631 | | ||||||||||||||||||||||
Pittsburgh |
963 | 946 | 943 | | | 963 | | ||||||||||||||||||||||
Central Indiana |
1,888 | 1,940 | 1,831 | 854 | 870 | 1,018 | N.M. | ||||||||||||||||||||||
West Virginia |
1,594 | 1,567 | 1,562 | 1,535 | 1,533 | 61 | 4.0 | ||||||||||||||||||||||
Other Regional |
823 | 759 | 861 | 537 | 452 | 371 | 82.1 | ||||||||||||||||||||||
Regional Banking |
32,749 | 32,452 | 32,153 | 20,394 | 20,219 | 12,530 | 62.0 | ||||||||||||||||||||||
Dealer Sales |
54 | 59 | 56 | 55 | 52 | 2 | 3.8 | ||||||||||||||||||||||
Private Financial and Capital Markets Group |
1,583 | 1,629 | 1,645 | 1,142 | 1,148 | 435 | 37.9 | ||||||||||||||||||||||
Treasury / Other |
3,545 | 3,535 | 3,798 | 2,682 | 3,032 | 513 | 16.9 | ||||||||||||||||||||||
Total deposits |
$ | 37,931 | $ | 37,675 | $ | 37,652 | $ | 24,273 | $ | 24,451 | $ | 13,480 | 55.1 | % | |||||||||||||||
N.M., not a meaningful value. | ||
(1) | Prior period amounts have been reclassified to conform to the current period presentation. |
6
2008 | 2007 | 1Q08 vs 1Q07 | |||||||||||||||||||||||||||
(in thousands, except per share amounts) | First | Fourth | Third | Second | First | Amount | Percent | ||||||||||||||||||||||
Interest income |
$ | 753,411 | $ | 814,398 | $ | 851,155 | $ | 542,461 | $ | 534,949 | $ | 218,462 | 40.8 | % | |||||||||||||||
Interest expense |
376,587 | 431,465 | 441,522 | 289,070 | 279,394 | 97,193 | 34.8 | ||||||||||||||||||||||
Net interest income |
376,824 | 382,933 | 409,633 | 253,391 | 255,555 | 121,269 | 47.5 | ||||||||||||||||||||||
Provision for credit losses |
88,650 | 512,082 | 42,007 | 60,133 | 29,406 | 59,244 | N.M. | ||||||||||||||||||||||
Net interest income (loss) after provision for credit losses |
288,174 | (129,149 | ) | 367,626 | 193,258 | 226,149 | 62,025 | 27.4 | |||||||||||||||||||||
Service charges on deposit accounts |
72,668 | 81,276 | 78,107 | 50,017 | 44,793 | 27,875 | 62.2 | ||||||||||||||||||||||
Trust services |
34,128 | 35,198 | 33,562 | 26,764 | 25,894 | 8,234 | 31.8 | ||||||||||||||||||||||
Brokerage and insurance income |
36,560 | 30,288 | 28,806 | 17,199 | 16,082 | 20,478 | N.M. | ||||||||||||||||||||||
Other service charges and fees |
20,741 | 21,891 | 21,045 | 14,923 | 13,208 | 7,533 | 57.0 | ||||||||||||||||||||||
Bank owned life insurance income |
13,750 | 13,253 | 14,847 | 10,904 | 10,851 | 2,899 | 26.7 | ||||||||||||||||||||||
Mortgage banking (loss) income |
(7,063 | ) | 3,702 | 9,629 | 7,122 | 9,351 | (16,414 | ) | N.M. | ||||||||||||||||||||
Securities gains (losses) |
1,429 | (11,551 | ) | (13,152 | ) | (5,139 | ) | 104 | 1,325 | N.M. | |||||||||||||||||||
Other income (2) |
63,539 | (3,500 | ) | 31,830 | 34,403 | 24,894 | 38,645 | N.M. | |||||||||||||||||||||
Total non-interest income |
235,752 | 170,557 | 204,674 | 156,193 | 145,177 | 90,575 | 62.4 | ||||||||||||||||||||||
Personnel costs |
201,943 | 214,850 | 202,148 | 135,191 | 134,639 | 67,304 | 50.0 | ||||||||||||||||||||||
Outside data processing and other services |
34,361 | 39,130 | 40,600 | 25,701 | 21,814 | 12,547 | 57.5 | ||||||||||||||||||||||
Net occupancy |
33,243 | 26,714 | 33,334 | 19,417 | 19,908 | 13,335 | 67.0 | ||||||||||||||||||||||
Equipment |
23,794 | 22,816 | 23,290 | 17,157 | 18,219 | 5,575 | 30.6 | ||||||||||||||||||||||
Amortization of intangibles |
18,917 | 20,163 | 19,949 | 2,519 | 2,520 | 16,397 | N.M. | ||||||||||||||||||||||
Marketing |
8,919 | 16,175 | 13,186 | 8,986 | 7,696 | 1,223 | 15.9 | ||||||||||||||||||||||
Professional services |
9,090 | 14,464 | 11,273 | 8,101 | 6,482 | 2,608 | 40.2 | ||||||||||||||||||||||
Telecommunications |
6,245 | 8,513 | 7,286 | 4,577 | 4,126 | 2,119 | 51.4 | ||||||||||||||||||||||
Printing and supplies |
5,622 | 6,594 | 4,743 | 3,672 | 3,242 | 2,380 | 73.4 | ||||||||||||||||||||||
Other expense (2) |
28,347 | 70,133 | 29,754 | 19,334 | 23,426 | 4,921 | 21.0 | ||||||||||||||||||||||
Total non-interest expense |
370,481 | 439,552 | 385,563 | 244,655 | 242,072 | 128,409 | 53.0 | ||||||||||||||||||||||
Income (Loss) before income taxes |
153,445 | (398,144 | ) | 186,737 | 104,796 | 129,254 | 24,191 | 18.7 | |||||||||||||||||||||
Provision (Benefit) for income taxes |
26,377 | (158,864 | ) | 48,535 | 24,275 | 33,528 | (7,151 | ) | (21.3 | ) | |||||||||||||||||||
Net income (loss) |
$ | 127,068 | $ | (239,280 | ) | $ | 138,202 | $ | 80,521 | $ | 95,726 | $ | 31,342 | 32.7 | % | ||||||||||||||
Average common shares diluted |
367,208 | 366,119 | 368,280 | 239,008 | 238,754 | 128,454 | 53.8 | % | |||||||||||||||||||||
Per common share |
|||||||||||||||||||||||||||||
Net income (loss) diluted |
$ | 0.35 | $ | (0.65 | ) | $ | 0.38 | $ | 0.34 | $ | 0.40 | $ | (0.05 | ) | (12.5 | ) | |||||||||||||
Cash dividends declared |
0.265 | 0.265 | 0.265 | 0.265 | 0.265 | | | ||||||||||||||||||||||
Return on average total assets |
0.93 | % | (1.74) | % | 1.02 | % | 0.92 | % | 1.11 | % | (0.18 | )% | (16.2 | ) | |||||||||||||||
Return on average total shareholders equity |
8.7 | (15.3 | ) | 8.8 | 10.6 | 12.9 | (4.2 | ) | (32.6 | ) | |||||||||||||||||||
Return on average tangible shareholders equity (3) |
22.0 | (30.7 | ) | 19.7 | 13.5 | 16.4 | 5.6 | 34.1 | |||||||||||||||||||||
Net interest margin (4) |
3.23 | 3.26 | 3.52 | 3.26 | 3.36 | (0.13 | ) | (3.9 | ) | ||||||||||||||||||||
Efficiency ratio (5) |
57.0 | 73.5 | 57.7 | 57.8 | 59.2 | (2.2 | ) | (3.7 | ) | ||||||||||||||||||||
Effective tax rate (benefit) |
17.2 | (39.9 | ) | 26.0 | 23.2 | 25.9 | (8.7 | ) | (33.6 | ) | |||||||||||||||||||
Revenue fully taxable equivalent (FTE) |
|||||||||||||||||||||||||||||
Net interest income |
$ | 376,824 | $ | 382,933 | $ | 409,633 | $ | 253,391 | $ | 255,555 | $ | 121,269 | 47.5 | ||||||||||||||||
FTE adjustment |
5,502 | 5,363 | 5,712 | 4,127 | 4,047 | 1,455 | 36.0 | ||||||||||||||||||||||
Net interest income (4) |
382,326 | 388,296 | 415,345 | 257,518 | 259,602 | 122,724 | 47.3 | ||||||||||||||||||||||
Non-interest income |
235,752 | 170,557 | 204,674 | 156,193 | 145,177 | 90,575 | 62.4 | ||||||||||||||||||||||
Total revenue (4) |
$ | 618,078 | $ | 558,853 | $ | 620,019 | $ | 413,711 | $ | 404,779 | $ | 213,299 | 52.7 | % | |||||||||||||||
N.M., not a meaningful value. | ||
(1) | Comparisons for presented periods are impacted by a number of factors. Refer to Significant Items Influencing Financial Performance Comparisons. | |
(2) | Automobile operating lease income and expense is included in Other Income and Other Expense, respectively. | |
(3) | Net income less expense for amortization of intangibles for the period divided by average tangible common shareholders equity. Average tangible common equity equals average total common stockholders equity less average intangible assets and goodwill. Expense for amortization of intangibles, as well as other intangible assets, are net of deferred tax liability, and are calculated assuming a 35% tax rate. | |
(4) | On a fully taxable equivalent (FTE) basis assuming a 35% tax rate. | |
(5) | Non-interest expense less amortization of intangibles divided by the sum of FTE net interest income and non-interest income excluding securities gains (losses). |
7
2008 | 2007 | 1Q08 vs 1Q07 | |||||||||||||||||||||||||||
(in thousands, except as noted) | First | Fourth | Third | Second | First | Amount | Percent | ||||||||||||||||||||||
Mortgage Banking Income |
|||||||||||||||||||||||||||||
Origination and secondary marketing |
$ | 9,332 | $ | 5,879 | $ | 8,375 | $ | 6,771 | $ | 4,940 | $ | 4,392 | 88.9 | % | |||||||||||||||
Servicing fees |
10,894 | 11,405 | 10,811 | 6,976 | 6,820 | 4,074 | 59.7 | ||||||||||||||||||||||
Amortization of capitalized servicing (1) |
(6,914 | ) | (5,929 | ) | (6,571 | ) | (4,449 | ) | (3,638 | ) | (3,276 | ) | (90.0 | ) | |||||||||||||||
Other mortgage banking income |
4,326 | 4,113 | 3,016 | 2,822 | 3,247 | 1,079 | 33.2 | ||||||||||||||||||||||
Sub-total |
17,638 | 15,468 | 15,631 | 12,120 | 11,369 | 6,269 | 55.1 | ||||||||||||||||||||||
MSR valuation adjustment (1) |
(18,093 | ) | (21,245 | ) | (9,863 | ) | 16,034 | (1,057 | ) | (17,036 | ) | N.M. | |||||||||||||||||
Net trading (losses) gains related to MSR hedging |
(6,609 | ) | 9,479 | 3,861 | (21,032 | ) | (961 | ) | (5,648 | ) | N.M. | ||||||||||||||||||
Total
mortgage banking (loss) income |
$ | (7,064 | ) | $ | 3,702 | $ | 9,629 | $ | 7,122 | $ | 9,351 | $ | (16,415 | ) | N.M. | % | |||||||||||||
Capitalized mortgage servicing rights (2) |
$ | 191,806 | $ | 207,894 | $ | 228,933 | $ | 155,420 | $ | 134,845 | $ | 56,961 | 42.2 | % | |||||||||||||||
Total mortgages serviced for others (in millions) (2) |
15,138 | 15,088 | 15,073 | 8,693 | 8,494 | 6,644 | 78.2 | ||||||||||||||||||||||
MSR % of investor servicing portfolio |
1.27 | % | 1.38 | % | 1.52 | % | 1.79 | % | 1.59 | % | (0.32 | )% | (20.1 | ) | |||||||||||||||
Net Impact of MSR Hedging |
|||||||||||||||||||||||||||||
MSR valuation adjustment (1) |
$ | (18,093 | ) | $ | (21,245 | ) | $ | (9,863 | ) | $ | 16,034 | $ | (1,057 | ) | $ | (17,036 | ) | N.M. | % | ||||||||||
Net trading (losses) gains related to MSR hedging |
(6,609 | ) | 9,479 | 3,861 | (21,032 | ) | (961 | ) | (5,648 | ) | N.M. | ||||||||||||||||||
Net interest income related to MSR hedging |
5,934 | 3,192 | 2,357 | 248 | | 5,934 | | ||||||||||||||||||||||
Net impact of MSR hedging |
$ | (18,768 | ) | $ | (8,574 | ) | $ | (3,645 | ) | $ | (4,750 | ) | $ | (2,018 | ) | $ | (16,750 | ) | N.M. | % | |||||||||
N.M., not a meaningful value. | ||
(1) | The change in fair value for the period represents the MSR valuation adjustment, net of amortization of capitalized servicing. | |
(2) | At period end. |
8
2008 | 2007 | |||||||||||||||||||
(in thousands) | First | Fourth | Third | Second | First | |||||||||||||||
Allowance for loan and lease losses,
beginning of period |
$ | 578,442 | $ | 454,784 | $ | 307,519 | $ | 282,976 | $ | 272,068 | ||||||||||
Acquired allowance for loan and lease losses |
| | 188,128 | | | |||||||||||||||
Loan and lease losses |
(60,804 | ) | (388,506 | ) | (57,466 | ) | (44,158 | ) | (27,813 | ) | ||||||||||
Recoveries of loans previously charged off |
12,355 | 10,599 | 10,360 | 9,658 | 9,695 | |||||||||||||||
Net loan and lease losses |
(48,449 | ) | (377,907 | ) | (47,106 | ) | (34,500 | ) | (18,118 | ) | ||||||||||
Provision for loan and lease losses |
97,622 | 503,781 | 36,952 | 59,043 | 29,026 | |||||||||||||||
Allowance for loans transferred to held-for-sale |
| (2,216 | ) | (30,709 | ) | | | |||||||||||||
Allowance for loan and lease losses, end of period |
$ | 627,615 | $ | 578,442 | $ | 454,784 | $ | 307,519 | $ | 282,976 | ||||||||||
Allowance for unfunded loan commitments
and letters of credit, beginning of period |
$ | 66,528 | $ | 58,227 | $ | 41,631 | $ | 40,541 | $ | 40,161 | ||||||||||
Acquired AULC |
| | 11,541 | | | |||||||||||||||
(Reduction
in) Provision for unfunded loan commitments and
letters of credit losses |
(8,972 | ) | 8,301 | 5,055 | 1,090 | 380 | ||||||||||||||
Allowance for unfunded loan commitments
and letters of credit, end of period |
$ | 57,556 | $ | 66,528 | $ | 58,227 | $ | 41,631 | $ | 40,541 | ||||||||||
Total allowances for credit losses |
$ | 685,171 | $ | 644,970 | $ | 513,011 | $ | 349,150 | $ | 323,517 | ||||||||||
Allowance for loan and lease losses (ALLL) as % of: |
||||||||||||||||||||
Transaction reserve |
1.34 | % | 1.27 | % | 0.97 | % | 0.94 | % | 0.89 | % | ||||||||||
Economic reserve |
0.19 | 0.17 | 0.17 | 0.21 | 0.19 | |||||||||||||||
Total loans and leases |
1.53 | % | 1.44 | % | 1.14 | % | 1.15 | % | 1.08 | % | ||||||||||
Nonaccrual loans and leases (NALs) |
166 | 181 | 182 | 145 | 180 | |||||||||||||||
Total allowances for credit losses (ACL) as % of: |
||||||||||||||||||||
Total loans and leases |
1.67 | % | 1.61 | % | 1.28 | % | 1.30 | % | 1.23 | % | ||||||||||
Nonaccrual loans and leases |
182 | 202 | 206 | 165 | 206 | |||||||||||||||
9
2008 | 2007 | |||||||||||||||||||
(in thousands) | First | Fourth | Third | Second | First | |||||||||||||||
Net charge-offs (recoveries) by loan and lease type: |
||||||||||||||||||||
Commercial: |
||||||||||||||||||||
Middle market commercial and industrial |
$ | 3,128 | $ | 318,485 | $ | 7,760 | $ | 3,628 | $ | (11 | ) | |||||||||
Middle market commercial real estate: |
||||||||||||||||||||
Construction |
112 | 6,800 | 2,160 | 2,876 | 9 | |||||||||||||||
Commercial |
2,639 | 13,313 | 2,282 | 10,428 | 377 | |||||||||||||||
Middle market commercial real estate |
2,751 | 20,113 | 4,442 | 13,304 | 386 | |||||||||||||||
Small business |
9,128 | 6,043 | 5,102 | 3,603 | 2,089 | |||||||||||||||
Total commercial |
15,007 | 344,641 | 17,304 | 20,535 | 2,464 | |||||||||||||||
Consumer: |
||||||||||||||||||||
Automobile loans |
8,008 | 7,347 | 5,354 | 1,631 | 2,853 | |||||||||||||||
Automobile leases |
3,211 | 3,046 | 2,561 | 2,699 | 2,201 | |||||||||||||||
Automobile loans and leases |
11,219 | 10,393 | 7,915 | 4,330 | 5,054 | |||||||||||||||
Home equity |
14,515 | 12,212 | 10,841 | 5,405 | 5,968 | |||||||||||||||
Residential mortgage |
2,927 | 3,340 | 4,405 | 1,695 | 1,931 | |||||||||||||||
Other loans |
4,781 | 7,321 | 6,641 | 2,535 | 2,701 | |||||||||||||||
Total consumer |
33,442 | 33,266 | 29,802 | 13,965 | 15,654 | |||||||||||||||
Total net charge-offs |
$ | 48,449 | $ | 377,907 | $ | 47,106 | $ | 34,500 | $ | 18,118 | ||||||||||
Net charge-offs (recoveries) annualized
percentages: |
||||||||||||||||||||
Commercial: |
||||||||||||||||||||
Middle market commercial and industrial |
0.12 | % | 12.20 | % | 0.30 | % | 0.23 | % | | % | ||||||||||
Middle market commercial real estate: |
||||||||||||||||||||
Construction |
0.02 | 1.45 | 0.48 | 0.92 | | |||||||||||||||
Commercial |
0.18 | 0.92 | 0.16 | 1.45 | 0.05 | |||||||||||||||
Middle market commercial real estate |
0.14 | 1.05 | 0.24 | 1.29 | 0.04 | |||||||||||||||
Small business |
0.87 | 0.57 | 0.48 | 0.58 | 0.34 | |||||||||||||||
Total commercial |
0.27 | 6.18 | 0.31 | 0.64 | 0.08 | |||||||||||||||
Consumer: |
||||||||||||||||||||
Automobile loans |
0.97 | 0.96 | 0.73 | 0.28 | 0.52 | |||||||||||||||
Automobile leases |
1.18 | 0.96 | 0.72 | 0.70 | 0.52 | |||||||||||||||
Automobile loans and leases |
1.02 | 0.96 | 0.73 | 0.45 | 0.52 | |||||||||||||||
Home equity |
0.80 | 0.67 | 0.58 | 0.43 | 0.49 | |||||||||||||||
Residential mortgage |
0.22 | 0.25 | 0.32 | 0.16 | 0.17 | |||||||||||||||
Other loans |
2.68 | 4.02 | 4.97 | 2.39 | 2.56 | |||||||||||||||
Total consumer |
0.75 | 0.75 | 0.67 | 0.41 | 0.46 | |||||||||||||||
Net charge-offs as a % of average loans |
0.48 | % | 3.77 | % | 0.47 | % | 0.52 | % | 0.28 | % | ||||||||||
10
2008 | 2007 | |||||||||||||||||||
(in thousands) | March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||
Nonaccrual loans and leases: |
||||||||||||||||||||
Middle market commercial and industrial |
$ | 65,833 | $ | 51,875 | $ | 56,691 | $ | 41,644 | $ | 32,970 | ||||||||||
Middle market commercial real estate |
161,062 | 132,157 | 85,144 | 81,108 | 42,458 | |||||||||||||||
Small business |
57,947 | 52,114 | 36,712 | 32,059 | 30,015 | |||||||||||||||
Residential mortgage |
66,466 | 59,557 | 47,738 | 39,868 | 35,491 | |||||||||||||||
Home equity |
26,053 | 24,068 | 23,111 | 16,837 | 16,396 | |||||||||||||||
Total nonaccrual loans and leases |
377,361 | 319,771 | 249,396 | 211,516 | 157,330 | |||||||||||||||
Restructured loans |
1,157,361 | 1,187,368 | | | | |||||||||||||||
Other real estate, net: |
||||||||||||||||||||
Residential |
63,675 | 60,804 | 49,555 | 47,590 | 46,892 | |||||||||||||||
Commercial |
10,181 | 14,467 | 19,310 | 2,079 | 2,456 | |||||||||||||||
Total other real estate, net |
73,856 | 75,271 | 68,865 | 49,669 | 49,348 | |||||||||||||||
Impaired loans held for sale (1) |
66,353 | 73,481 | 100,485 | | | |||||||||||||||
Other NPAs (2) |
2,836 | 4,379 | 16,296 | | | |||||||||||||||
Total nonperforming assets |
$ | 1,677,767 | $ | 1,660,270 | $ | 435,042 | $ | 261,185 | $ | 206,678 | ||||||||||
Nonaccrual loans and leases as a % of
total loans and leases (NAL ratio) |
0.92 | % | 0.80 | % | 0.62 | % | 0.79 | % | 0.60 | % | ||||||||||
NPA ratio (3) |
4.08 | 4.13 | 1.08 | 0.97 | 0.79 | |||||||||||||||
Accruing loans and leases past due 90
days or more |
$ | 152,897 | $ | 140,977 | $ | 115,607 | $ | 67,277 | $ | 70,179 | ||||||||||
Accruing loans and leases past due 90 days or
more as a percent of total loans and leases |
0.37 | % | 0.35 | % | 0.29 | % | 0.25 | % | 0.27 | % |
2008 | 2007 | |||||||||||||||||||
(in thousands) | First | Fourth | Third | Second | First | |||||||||||||||
Nonperforming assets, beginning
of period |
$ | 1,660,270 | $ | 435,042 | $ | 261,185 | $ | 206,678 | $ | 193,620 | ||||||||||
New nonperforming assets |
141,090 | 211,134 | 92,986 | 112,348 | 51,588 | |||||||||||||||
Restructured loans (4) |
| 1,187,368 | | | | |||||||||||||||
Acquired nonperforming assets |
| | 144,492 | | | |||||||||||||||
Returns to accruing status |
(13,484 | ) | (5,273 | ) | (8,829 | ) | (4,674 | ) | (6,176 | ) | ||||||||||
Loan and lease losses |
(27,896 | ) | (62,502 | ) | (28,031 | ) | (27,149 | ) | (9,072 | ) | ||||||||||
Payments |
(68,753 | ) | (30,756 | ) | (17,589 | ) | (19,662 | ) | (18,086 | ) | ||||||||||
Sales |
(13,460 | ) | (74,743 | ) | (9,172 | ) | (6,356 | ) | (5,196 | ) | ||||||||||
Nonperforming assets, end of period |
$ | 1,677,767 | $ | 1,660,270 | $ | 435,042 | $ | 261,185 | $ | 206,678 | ||||||||||
(1) | Represent impaired loans obtained from the Sky Financial acquisition that are intended to be sold. Held for sale loans are carried at the lower of cost or market value. | |
(2) | Other NPAs represent certain investment securities backed by mortgage loans to borrowers with lower FICO scores. | |
(3) | Nonperforming assets divided by the sum of loans and leases, impaired loans held for sale, net other real estate, and other NPAs. | |
(4) | Restructured loans are net of loan losses and payments. |
11
2008 | 2007 | |||||||||||||||||||
(in thousands, except per share amounts) | First | Fourth | Third | Second | First | |||||||||||||||
Common stock price, per share |
||||||||||||||||||||
High (1) |
$ | 14.870 | $ | 18.390 | $ | 22.930 | $ | 22.960 | $ | 24.140 | ||||||||||
Low (1) |
9.640 | 13.500 | 16.050 | 21.300 | 21.610 | |||||||||||||||
Close |
10.750 | 14.760 | 16.980 | 22.740 | 21.850 | |||||||||||||||
Average closing price |
12.268 | 16.125 | 18.671 | 22.231 | 23.117 | |||||||||||||||
Dividends, per share |
||||||||||||||||||||
Cash dividends declared per common share |
$ | 0.265 | $ | 0.265 | $ | 0.265 | $ | 0.265 | $ | 0.265 | ||||||||||
Common shares outstanding |
||||||||||||||||||||
Average basic |
366,235 | 366,119 | 365,895 | 236,032 | 235,586 | |||||||||||||||
Average diluted |
367,208 | 366,119 | 368,280 | 239,008 | 238,754 | |||||||||||||||
Ending |
366,226 | 366,262 | 365,898 | 236,244 | 235,714 | |||||||||||||||
Book value per share |
$ | 16.13 | $ | 16.24 | $ | 17.08 | $ | 12.97 | $ | 12.95 | ||||||||||
Tangible book value per share (2) |
7.08 | 7.13 | 8.10 | 10.41 | 10.37 | |||||||||||||||
2008 | 2007 | |||||||||||||||||||
(in millions) | March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||
Calculation of tangible equity / asset ratio: |
||||||||||||||||||||
Total shareholders equity |
$ | 5,907 | $ | 5,949 | $ | 6,250 | $ | 3,064 | $ | 3,051 | ||||||||||
Less: goodwill |
(3,047 | ) | (3,059 | ) | (2,996 | ) | (570 | ) | (570 | ) | ||||||||||
Less: other intangible assets |
(409 | ) | (428 | ) | (443 | ) | (55 | ) | (57 | ) | ||||||||||
Add: related deferred tax liability (2) |
143 | 150 | 155 | 19 | 20 | |||||||||||||||
Total tangible equity |
$ | 2,593 | $ | 2,612 | $ | 2,965 | $ | 2,459 | $ | 2,444 | ||||||||||
Total assets |
$ | 56,052 | $ | 54,697 | $ | 55,304 | $ | 36,421 | $ | 34,979 | ||||||||||
Less: goodwill |
(3,047 | ) | (3,059 | ) | (2,996 | ) | (570 | ) | (570 | ) | ||||||||||
Less: other intangible assets |
(409 | ) | (428 | ) | (443 | ) | (55 | ) | (57 | ) | ||||||||||
Add: related deferred tax liability (2) |
143 | 150 | 155 | 19 | 20 | |||||||||||||||
Total tangible assets |
$ | 52,739 | $ | 51,360 | $ | 52,020 | $ | 35,815 | $ | 34,372 | ||||||||||
Tangible equity / asset ratio |
4.92 | % | 5.08 | % | 5.70 | % | 6.87 | % | 7.11 | % | ||||||||||
Other capital data: |
||||||||||||||||||||
Total risk-weighted assets (3) |
$ | 46,572 | $ | 46,044 | $ | 45,931 | $ | 32,121 | $ | 31,473 | ||||||||||
Tier 1 leverage ratio (3) |
6.82 | % | 6.77 | % | 7.57 | % | 9.07 | % | 8.24 | % | ||||||||||
Tier 1 risk-based capital ratio (3) |
7.55 | 7.51 | 8.35 | 9.74 | 8.98 | |||||||||||||||
Total risk-based capital ratio (3) |
10.86 | 10.85 | 11.58 | 13.49 | 12.82 | |||||||||||||||
Tangible equity / risk-weighted assets ratio (3) |
5.57 | 5.67 | 6.46 | 7.66 | 7.77 | |||||||||||||||
Average equity / average assets |
10.70 | 11.40 | 11.50 | 8.66 | 8.63 | |||||||||||||||
Other data: |
||||||||||||||||||||
Number of employees (full-time equivalent) |
11,496 | 11,925 | 12,312 | 8,410 | 8,029 | |||||||||||||||
Number of domestic full-service banking offices (4) |
627 | 625 | 620 | 379 | 375 |
(1) | High and low stock prices are intra-day quotes obtained from NASDAQ. | |
(2) | Other intangible assets is net of deferred tax liability, and is calculated assuming a 35% tax rate. | |
(3) | March 31, 2008 figures are estimated. Based on an interim decision by the banking agencies on December 14, 2006, Huntington has excluded the impact of adopting Statement 158 from the regulatory capital calculations. | |
(4) | Includes Private Financial Group offices. |
12