Stocks & Financial News
Breaking financial news 24/7 courtesy of TradingCharts.com Inc. / TFC Commodity Charts
WaFd Reports Second Quarter Fiscal 2024 Results Following Completion of Merger of Luther Burbank Corporation
Earnings for the quarter ended March 31, 2024 were $15,888,000, a decrease of 73% from net earnings of $58,453,000 for the quarter ended December 31, 2023 and a decrease of 76% from net earnings of $65,934,000 for the quarter ended March 31, 2023. After the effect of dividends on preferred stock, net income available for common shareholders was $0.17 per diluted share for the quarter ended March 31, 2024, compared to $0.85 per diluted share for the quarter ended December 31, 2023, a $0.68 or 80% decrease, and $0.95 per diluted share for the quarter ended March 31, 2023, a $0.78 or 82% decrease in fully diluted earnings per common share. For the quarter ended March 31, 2024, return on common shareholders' equity was 2.09% and return on assets was 0.26%. These results reflect merger-related costs and certain non-operating expenses of $51.1 million for the quarter. Adjusted for these expenses, return on common shareholders' equity for the quarter ended March 31, 2024 was 8.7% compared to 10.21% for the quarter ended December 31, 2023 and 12.01% for the quarter ended March 31, 2023. Adjusted, return on assets for the quarter ended March 31, 2024 was 0.9% compared to 1.0% for the previous quarter and 1.2% for the same quarter in the prior year. For a reconciliation, see the Non-GAAP Financial Measures section below.
President and CEO Brent Beardall commented, "In the future, when we look back at the acquisition of Luther Burbank, we will see the addition of this $8 billion asset franchise in California as a transformational event for WaFd Bank. As expected, there is a lot of noise in the quarter so we have provided disclosures showing what earnings would have been without the merger costs and certain non-operating income and expenses. Absent these items, net income would have been $54.8 million, a 6% decrease from the December quarter. While the continuation of the challenging interest rate environment has made strategic execution more difficult, we remain excited by the potential of this purchase.
"I am especially proud of how quickly we were able to complete this acquisition once regulatory approval was granted. We closed on the acquisition of LBC on February 29, 2024. The next day, Friday March 1st, we started the systems conversions and branch re-branding and completed the work just two days later, opening our doors March 4th as WaFd branches operating on WaFd's core systems. To my knowledge this was one of, if not the fastest close-to-conversion in modern history for U.S. banking for transactions over $1 billion. Speed only matters if you are able to execute with quality and our teams, especially our front-line bankers in the California branches and the support teams in operations and technology, were remarkably successful executing the conversion plan. The best indicator of this success is the behavior of the impacted clients. From conversion until quarter end, deposit accounts are down only 1.1%.
"A lot has changed since we announced the acquisition of LBC in November 2022. Importantly, we have identified a portion of the LBC multifamily loan portfolio (up to $3.2 billion) that would be attractive to potential buyers and have initiated a program to sell these loans. We have engaged a third party to facilitate this process. There has been a lot of interest in these loans, we are working through the bidding process and expect to execute on the sale in the next few months. We are mindful of the benefits of selling these loans, the resulting liquidity and the options going forward, whether to pay down debt, originate new loans or a combination of both. Ultimately, the amount of loans sold is dependent on price and certainty for execution.
"An acquisition of the size of LBC is meaningful for WaFd; their assets were 34% of standalone WaFd assets. Why did we do it? Why take the risk? We believe this acquisition will accrue to the benefit of our clients, our communities, our shareholders and our employees. Now that it is substantially complete, we believe common shareholders will experience earnings per share accretion of 8% in fiscal 2025 and 16% in fiscal 2026. These estimates factor in the redeployment of the funds received in the potential loan sale into higher yielding assets. Projections that lead to those returns are contained in the Non-GAAP Financial Measures section below.
"We are grateful to be one of the strongest regional banks in the now nine western states in which we operate. Our value proposition is straightforward, we provide relationship banking to our clients through a platform that is large enough to be meaningful but small enough to be nimble and responsive to our clients. We are more optimistic today about our future prospects than any time in my 24 years at WaFd.
"There have been significant changes in interest rates and market values of assets since the merger announcement and the table below calls out what we were expecting in November of 2022 compared to what we are expecting today."
At Announcement Nov 2022 Estimate as of March 31, 2024
------------------------------------------------------------------------ -----------------------------------------------------
EPS Accretion 7.9% accretion subsequent full fiscal year 8% accretion for FY 2025, subsequent full fiscal year
Cost savings 25% of LBC's 2023 non-interest expense. Phased in 50% in the first year. 45% or $31 million immediate savings
Merger costs - pre tax $37 million Under $30 million
Discount on LBC loans $202 million $472 million
Merger consideration value $654 million $466 million
Goodwill $108 million $106 million
December 31, 2023 March 31, 2024
------------------------------------------------------------------------ -----------------------------------------------------
Tangible Common Equity Per Share* $28.05 $26.64
As a result of the merger on February 29, 2024, the Company's balances as of March 31, 2024 reflect the newly combined entity and the activity for the quarter then ended include one month of LBC-related activity. Given this, the Company's financial results are not directly comparable to prior reported periods. Total assets were $30.1 billion as of March 31, 2024, compared to $22.5 billion at September 30, 2023, primarily due to the addition of $7.7 billion of LBC assets at fair value on February 29, 2024.
Net loans held for investment increased by $3.3 billion, or 19.0%, from September 30, 2023 to March 31, 2024 reflecting the addition of LBC loans with a fair value of $3.2 billion. The fair value of total loans obtained in the merger was $6.2 billion. The Company has identified approximately $3.2 billion of the acquired multifamily loans to sell and has classified these as Loans Held for Sale at fair value.
Cash and cash equivalents as of March 31, 2024 increased by $525.1 million, or 53.5%, since September 30, 2023. Investment securities increased by $477.3 million during the quarter due to the addition of $529.2 million in securities obtained in the merger.
Customer deposits totaled $21.3 billion as of March 31, 2024, an increase of 32.8% since September 30, 2023 due to $5.6 billion in deposits obtained in the merger. Transaction accounts increased by $1.6 billion or 14.6% during that period, while time deposits increased $3.7 billion or 69.7% as 66% of the LBC deposit portfolio was time deposits. As a result of this mix, the percentage of the Company's transaction accounts at March 31, 2024 decreased to 57.8% compared to 67.0% at September 30, 2023. Core deposits, defined as all transaction accounts and time deposits less than $250,000, totaled 82.1% of deposits at March 31, 2024. Deposits that are uninsured or not collateralized were 25.5% as of March 31, 2024, a slight decrease from 25.7% as of September 30, 2023.
Borrowings totaled $5.3 billion as of March 31, 2024, up from $3.7 billion at September 30, 2023 with $1.4 billion attributable to the merger. The Company also assumed additional debt in connection with the merger in the form of approximately $50 million in floating rate junior subordinated debentures, due June 2036 and June 2037, and $94 million in 6.5% senior unsecured term notes maturing September 30, 2024. The effective weighted average interest rate of the combined borrowings and debt was 4.48% as of March 31, 2024, compared to 3.98% at September 30, 2023 as a result of adding the LBC borrowings.
The Company had loan originations of $0.8 billion for the second fiscal quarter of 2024, compared to $1.0 billion of originations in the same quarter one year ago. Offsetting loan originations in each of these quarters were loan repayments of $1.0 billion and $1.1 billion, respectively. The Bank has intentionally slowed new loan production to temper net loan growth. Commercial loans represented 77% of all loan originations during the second fiscal quarter of 2024 and consumer loans accounted for the remaining 23%. Commercial loans are viewed by the Bank as preferable; they generally have floating interest rates and shorter durations. The weighted average interest rate on the loan portfolio was 5.02% as of March 31, 2024, a decrease from 5.22% as of September 30, 2023, due primarily to adding the lower yielding LBC portfolio.
Credit quality continues to be monitored closely in light of the shifting economic and monetary environment. As of March 31, 2024, non-performing assets were $68 million, or 0.2% of total assets, from $58 million, or 0.3%, at September 30, 2023. The percentage of delinquent loans was 0.4% of total loans for both March 31, 2024 and September 30, 2023 as a result of the increased loan balance. The following table shows the effect the merger had on the change in non-performing assets and delinquencies.
Non-Performing Assets Delinquencies
----------------------------------------------- ----------------------------------------------
(In thousands)
Balance at September 30, 2023 $ 57,924 $ 63,315
Decrease in balance (2,536 ) (5,258 )
-------------------- ------- -------------------- -------------------- ------ --------------------
Balance at December 31, 2023 55,388 58,057
Merger-related additions 13,487 23,258
Decrease in balance (514 ) (5,267 )
-------------------- ------- -------------------- -------------------- ------ --------------------
The allowance for credit losses including the reserve for unfunded commitments ("ACL") totaled $225 million as of March 31, 2024, and was 1.00% of gross loans outstanding, as compared to $202 million, or 1.04% of gross loans outstanding, as of September 30, 2023. The increase in the ACL reflects the $16.0 million provision recorded on LBC loans held for investment that are not credit deteriorated and the $7.4 million estimated lifetime credit losses for those that are considered purchased credit deteriorated ("PCD"). Net charge-offs were $146,000 for the second fiscal quarter of 2024, compared to net charge-offs of $6 million for the prior year same quarter.
The Company paid quarterly dividends on Series A preferred stock on January 15, 2024 and April 15, 2024. On March 8, 2024, the Company paid a regular cash dividend on common stock of $0.26 per share, which represented the 164th consecutive quarterly cash dividend. During the quarter, the Company repurchased 7,837 shares of common stock at a weighted average price of $30.38 per share and has authorization to repurchase 1,853,453 additional shares. Tangible common shareholders' equity per share decreased by $1.41, or 5.0%, to $26.64 since September 30, 2023. Over the past 12 months, tangible book value decreased per share by $0.21 or 0.8%. The ratio of total tangible shareholders' equity to tangible assets decreased to 8.31% as of March 31, 2024. See the reconciliation for these non-GAAP measures starting on page 13.
Net interest income was $159 million for the second fiscal quarter of 2024, a decrease of $16.4 million or 9.4% from the same quarter in the prior year. The decrease in net interest income was primarily due to the 129 basis point increase in the average rate paid on interest-bearing liabilities outpacing the 38 basis point increase in the average rate earned on interest-earning assets. Net interest income also increased by $6.4 million compared to the quarter ended December 31, 2023 due to a larger increase in the average interest earning assets than the increase in interest bearing liabilities as a result of the merger. Net interest margin was 2.73% in the second fiscal quarter of 2024 compared to 2.91% for the quarter ended December 31, 2023 and 3.51% for the prior year quarter.
Total other income was $13.4 million for the second fiscal quarter of 2024 compared to $10.1 million in the prior year same quarter. The increase is primarily due to recording $1.8 million less unrealized losses for certain equity method investments in the current quarter compared to the quarter ended March 31, 2023. Small increases in insurance agency commissions recognized by the WAFD Insurance Group and increased fees earned as a result of the merger account for the remaining change.
Total other expense was $133.7 million in the second fiscal quarter of 2024, an increase of $36.8 million, or 38.0%, from the prior year's quarter. Compensation expense increased as a result of $19 million in merger-related retention, severance and change-in-control expenses combined with a larger post-merger workforce. FDIC premiums increased $3.9 million compared to the same period last year and included a $1.8 million expense for an FDIC special assessment. Total other expense also increased by $10.9 million compared to the same quarter in the prior year. This is largely due to $5.9 million in merger related expenses in the quarter as well as $5 million in non-operating expenses including a $2 million charitable donation and $3 million in accruals related to legal and compliance related items.
The Company recorded a provision for credit losses of $16.0 million in the second fiscal quarter of 2024, compared to a provision for credit losses of $3.5 million in the same quarter of fiscal 2023. The provision for loan losses in the quarter ended March 31, 2024 represents the preliminary lifetime loss estimate for the non-PCD loans obtained in the merger.
The Company's efficiency ratio in the second fiscal quarter of 2024 was 58.5% (as adjusted, see Non-GAAP Financial Measures below), compared to 58.0% in the prior quarter and 52.3% for the same period one year ago.
Income tax expense totaled $5.1 million for the second fiscal quarter of 2024, as compared to $18.6 million for the prior year same quarter. The effective tax rate for the quarter ended March 31, 2024 was 24.21% compared to 20.81% for the year ended September 30, 2023. Although the Company's effective tax rate may vary from the statutory rate mainly due to state taxes, tax-exempt income and tax-credit investments, much of the change in the current quarter resulted specifically from the merger and consideration of California State and Local taxes.
WaFd Bank is headquartered in Seattle, Washington, and has 210 branches in nine western states. To find out more about WaFd Bank, please visit our website www.wafdbank.com. The Company uses its website to distribute financial and other material information about the Company.
WAFD, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(UNAUDITED)
March 31, 2024 September 30, 2023
-------------------------------------------------------- ------------------------------------------------------------
(In thousands, except share and ratio data)
ASSETS
$ 1,505,771 $ 980,649
Cash and cash equivalents
2,438,114 1,995,097
Available-for-sale securities, at fair value
457,882 423,586
Held-to-maturity securities, at amortized cost
20,795,259 17,476,550
Loans receivable, net of allowance for loan losses of $201,577 and $177,207
2,993,658 --
Loans held for sale
115,484 87,003
Interest receivable
243,465 237,011
Premises and equipment, net
4,245 4,149
Real estate owned
160,817 126,820
FHLB stock
264,043 242,919
Bank owned life insurance
453,539 310,619
Intangible assets, including goodwill of $411,401 and $304,750
146,833 8,479
Federal and state income tax assets, net
561,178 581,793
Other assets
----------------------- ---------- ----------------------- ----------------------- -------------- -----------------------
$ 30,140,288 $ 22,474,675
======================= ========== ======================= ======================= ============== =======================
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
$ 12,338,862 $ 10,765,313
Transaction deposits
9,000,911 5,305,016
Time deposits
----------------------- ---------- ----------------------- ----------------------- -------------- -----------------------
21,339,773 16,070,329
Total customer deposits
5,345,518 3,650,000
Borrowings
50,254 --
Junior subordinated deferrable debentures
Senior debt
93,729 --
$95,000 face amount, 6.5% interest rate, due September 30, 2024
49,350 52,550
Advance payments by borrowers for taxes and insurance
339,758 275,370
Accrued expenses and other liabilities
----------------------- ---------- ----------------------- ----------------------- -------------- -----------------------
27,218,382 20,048,249
Shareholders' equity
300,000 300,000
Preferred stock, $1.00 par value, 5,000,000 shares authorized; 300,000 and 300,000 shares issued; 300,000 and 300,000 shares outstanding
153,835 136,467
Common stock, $1.00 par value, 300,000,000 shares authorized; 153,834,612 and 136,466,579 shares issued; 81,405,391 and 64,736,916 shares outstanding
2,143,343 1,687,634
Additional paid-in capital
51,935 46,921
Accumulated other comprehensive income (loss), net of taxes
(1,629,512 ) (1,612,345 )
Treasury stock, at cost; 72,429,221 and 71,729,663 shares
1,902,305 1,867,749
Retained earnings
----------------------- ---------- ----------------------- ----------------------- -------------- -----------------------
2,921,906 2,426,426
----------------------- ---------- ----------------------- ----------------------- -------------- -----------------------
$ 30,140,288 $ 22,474,675
======================= ========== ======================= ======================= ============== =======================
CONSOLIDATED FINANCIAL HIGHLIGHTS
Common shareholders' equity per share $ 32.21 $ 32.85
Tangible common shareholders' equity per share(1) 26.64 28.05
Shareholders' equity to total assets 9.69 % 10.80 %
Tangible shareholders' equity to tangible assets(1) 8.31 % 9.55 %
Tangible shareholders' equity + allowance for credit losses to tangible assets(1) 8.99 % 10.35 %
WAFD, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(UNAUDITED)
As of
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
SUMMARY FINANCIAL DATA March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023
-------------------------------------------------- ------------------------------------------------------ ------------------------------------------------------ ------------------------------------------------------ ------------------------------------------------------
(In thousands, except share and ratio data)
Cash $ 1,505,771 $ 1,144,774 $ 980,649 $ 1,139,643 $ 1,118,544
Loans receivable, net 20,795,259 17,584,622 17,476,550 17,384,188 17,271,906
Allowance for credit losses ("ACL") 225,077 201,820 201,707 204,569 205,920
Loans held for sale 2,993,658 -- -- -- --
Available-for-sale securities, at fair value 2,438,114 2,018,445 1,995,097 2,036,233 2,006,286
Held-to-maturity securities, at amortized cost 457,882 415,079 423,586 434,172 445,222
Total assets 30,140,288 22,640,122 22,474,675 22,552,588 22,325,211
Transaction deposits 12,338,862 10,658,064 10,765,313 11,256,575 11,880,343
Time deposits 9,000,911 5,380,723 5,305,016 4,863,849 3,980,605
Borrowings 5,489,501 3,875,000 3,650,000 3,750,000 3,800,000
Total shareholders' equity 2,921,906 2,452,004 2,426,426 2,394,066 2,375,117
FINANCIAL HIGHLIGHTS
Common shareholders' equity per share $ 32.21 $ 33.49 $ 32.85 $ 32.36 $ 31.54
Tangible common shareholders' equity per share(2) $ 26.64 $ 28.65 $ 28.05 $ 27.58 $ 26.85
Shareholders' equity to total assets 9.69 % 10.83 % 10.80 % 10.62 % 10.64 %
Tangible shareholders' equity to tangible assets(2) 8.31 % 9.59 % 9.55 % 9.37 % 9.39 %
Tangible shareholders' equity + ACL to tangible assets(2) 8.99 % 10.39 % 10.35 % 10.17 % 10.19 %
Common shares outstanding 81,405,391 64,254,700 64,736,916 64,721,190 65,793,099
Preferred shares outstanding 300,000 300,000 300,000 300,000 300,000
Loans to customer deposits (1) 97.45 % 109.64 % 108.75 % 107.84 % 108.90 %
CREDIT QUALITY(1)
ACL to gross loans 1.00 % 1.04 % 1.03 % 1.03 % 1.02 %
ACL to non-accrual loans 370.16 % 445.93 % 400.04 % 370.09 % 595.04 %
Non-accrual loans to net loans 0.29 % 0.26 % 0.29 % 0.32 % 0.20 %
Non-accrual loans $ 60,806 $ 45,258 $ 50,422 $ 55,276 $ 34,606
Non-performing assets to total assets 0.23 % 0.24 % 0.26 % 0.30 % 0.21 %
Non-performing assets $ 68,361 $ 55,388 $ 57,924 $ 67,000 $ 46,785
Criticized loans to net loans 2.59 % 2.27 % 2.33 % 2.42 % 2.46 %
Criticized loans $ 537,802 $ 399,895 $ 407,086 $ 421,507 $ 424,539
Substandard loans to net loans 1.48 % 1.74 % 1.75 % 1.71 % 1.67 %
Substandard loans $ 307,412 $ 305,606 $ 305,179 $ 296,541 $ 289,259
WAFD, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended March 31, Six Months Ended March 31,
---------------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------------
2024 2023 2024 2023
-------------------- ---------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------- --------------------
(In thousands, except share and ratio data)
INTEREST INCOME
$ 274,341 $ 222,957 $ 520,133 $ 426,903
Loans receivable
12,905 10,422 24,171 21,035
Mortgage-backed securities
31,580 21,967 61,368 40,827
Investment securities and cash equivalents
-------------------- ---------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------- --------------------
318,826 255,346 605,672 488,765
INTEREST EXPENSE
116,164 52,123 212,835 83,769
Customer accounts
44,065 28,185 82,003 47,159
Borrowings, senior debt and junior subordinated debentures
-------------------- ---------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------- --------------------
160,229 80,308 294,838 130,928
Net interest income 158,597 175,038 310,834 357,837
16,000 3,500 16,000 6,000
Provision (release) for credit losses
-------------------- ---------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------- --------------------
Net interest income after provision (release) 142,597 171,538 294,834 351,837
OTHER INCOME
90 -- 171 --
Gain (loss) on sale of investment securities
6 26 115 26
Gain (loss) on termination of hedging derivatives
550 652 1,394 2,154
Loan fee income
6,698 6,188 13,500 12,541
Deposit fee income
6,048 3,206 12,379 9,375
Other income
-------------------- ---------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------- --------------------
13,392 10,072 27,559 24,096
OTHER EXPENSE
73,155 51,444 122,996 100,514
Compensation and benefits
10,918 10,918 20,289 21,020
Occupancy
7,900 4,000 14,470 7,675
FDIC insurance premiums
5,581 5,316 11,590 9,937
Product delivery
12,883 12,785 25,749 25,114
Information technology
23,275 12,418 35,158 24,899
Other expense
-------------------- ---------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------- --------------------
133,712 96,881 230,252 189,159
(1,315 ) (199 ) 511 (311 )
Gain (loss) on real estate owned, net
-------------------- ---------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------- --------------------
Income before income taxes 20,962 84,530 92,652 186,463
5,074 18,596 18,311 41,020
Income tax provision
-------------------- ---------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------- --------------------
Net income 15,888 65,934 74,341 145,443
Dividends on preferred stock 3,656 3,656 7,312 7,312
-------------------- ---------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------- --------------------
Net income available to common shareholders $ 12,232 $ 62,278 $ 67,029 $ 138,131
==================== ========== ==================== ==================== ============== ==================== ==================== ========== ==================== ==================== ============== ====================
PER SHARE DATA
$ 0.17 $ 0.95 $ 1.00 $ 2.11
Basic earnings per common share
0.17 0.95 1.00 2.11
Diluted earnings per common share
0.26 0.25 0.51 0.49
Cash dividends per common share
70,129,072 65,511,131 67,197,352 65,425,623
Basic weighted average shares outstanding
70,164,558 65,551,185 67,225,099 65,510,275
Diluted weighted average shares outstanding
PERFORMANCE RATIOS
0.26 % 1.21 % 0.63 % 1.36 %
Return on average assets
2.09 12.01 5.98 13.55
Return on average common equity
2.73 3.51 2.82 3.60
Net interest margin
WAFD, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023
-------------------------------------------------- ------------------------------------------------------ -------------------------------------------------- ------------------------------------------------------ ------------------------------------------------------
(In thousands, except share and ratio data)
INTEREST INCOME
$ 274,341 $ 245,792 $ 240,998 $ 232,167 $ 222,957
Loans receivable
12,905 11,266 11,695 10,454 10,422
Mortgage-backed securities
31,580 29,788 29,017 29,859 21,967
Investment securities and cash equivalents
-------------------- ---------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
318,826 286,846 281,710 272,480 255,346
INTEREST EXPENSE
116,164 96,671 83,402 70,062 52,123
Customer accounts
44,065 37,938 34,611 33,718 28,185
Borrowings, senior debt and jr. subordinated debentures
-------------------- ---------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
160,229 134,609 118,013 103,780 80,308
Net interest income 158,597 152,237 163,697 168,700 175,038
16,000 -- 26,500 9,000 3,500
Provision (release) for credit losses
-------------------- ---------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Net interest income after provision (release) 142,597 152,237 137,197 159,700 171,538
OTHER INCOME
90 81 33 -- --
Gain (loss) on sale of investment securities
6 109 33 (926 ) 26
Gain (loss) on termination of hedging derivatives
550 844 731 1,000 652
Loan fee income
6,698 6,802 6,849 6,660 6,188
Deposit fee income
6,048 6,331 6,688 7,037 3,206
Other income
-------------------- ---------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
13,392 14,167 14,334 13,771 10,072
OTHER EXPENSE
73,155 49,841 45,564 50,456 51,444
Compensation and benefits
10,918 9,371 10,115 10,444 10,918
Occupancy
7,900 6,570 7,000 5,350 4,000
FDIC insurance premiums
5,581 6,009 5,819 5,217 5,316
Product delivery
12,883 12,866 12,672 11,661 12,785
Information technology
23,275 11,883 11,007 11,571 12,418
Other expense
-------------------- ---------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
133,712 96,540 92,177 94,699 96,881
(1,315 ) 1,826 (235 ) 722 (199 )
Gain (loss) on real estate owned, net
-------------------- ---------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Income before income taxes 20,962 71,690 59,119 79,494 84,530
5,074 13,237 8,911 17,719 18,596
Income tax provision
-------------------- ---------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Net income 15,888 58,453 50,208 61,775 65,934
Dividends on preferred stock 3,656 3,656 3,656 3,656 3,656
-------------------- ---------- -------------------- -------------------- -------------- -------------------- -------------------- ---------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Net income available to common shareholders $ 12,232 $ 54,797 $ 46,552 $ 58,119 $ 62,278
==================== ========== ==================== ==================== ============== ==================== ==================== ========== ==================== ==================== ============== ==================== ==================== ============== ====================
PER SHARE DATA
$ 0.17 $ 0.85 $ 0.72 $ 0.89 $ 0.95
Basic earnings per common share
0.17 0.85 0.72 0.89 0.95
Diluted earnings per common share
0.26 0.25 0.25 0.25 0.25
Cash dividends per common share
70,129,072 64,297,499 64,729,006 65,194,880 65,511,131
Basic weighted average shares outstanding
70,164,558 64,312,110 64,736,864 65,212,846 65,551,185
Diluted weighted average shares outstanding
PERFORMANCE RATIOS