WSFS FINANCIAL CORPORATION
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(Exact Name of Registrant as Specified in its Charter)
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Delaware
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22-2866913
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(State or other Jurisdiction of
Incorporation or Organization)
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(I.R.S. Employer Identification No.)
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500 Delaware Avenue, Wilmington, Delaware
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19801
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(Address of Principal Executive Offices)
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(Zip Code)
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Title of Each Class
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Name of Each Exchange on Which Registered
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Common Stock, $0.01 par value
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The NASDAQ Stock Market LLC
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WSFS FINANCIAL CORPORATION
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TABLE OF CONTENTS
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Part I
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Page
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Item 1.
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Business
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3
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Item 1A.
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Risk Factors
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27
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Item 1B.
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Unresolved Staff Comments
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36
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Item 2.
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Properties
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37
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Item 3.
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Legal Proceedings
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41
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Item 4.
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Mine Safety Disclosures
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42
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Part II
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Item 5.
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Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases
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42
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of Equity Securities
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||
Item 6.
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Selected Financial Data
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44
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Item 7.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations
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45
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Item 7A.
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Quantitative and Qualitative Disclosure about Market Risk
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63
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Item 8.
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Financial Statements and Supplementary Data
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65
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Item 9
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Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
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123
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Item 9A.
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Controls and Procedures
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123
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Item 9B.
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Other Information
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126
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Part III
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||
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Item 10.
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Directors, Executive Officers and Corporate Governance
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126
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Item 11.
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Executive Compensation
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126
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Item 12.
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Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
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126
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Item 13.
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Certain Relationships and Related Transactions and Director Independence
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127
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Item 14.
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Principal Accounting Fees and Services
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127
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Part IV
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Item 15.
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Exhibits, Financial Statement Schedules
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127
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Signatures
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130
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·
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Our Associate Engagement scores consistently rank in the top quartile of companies polled. In 2011 our engagement ratio was 13.4, which means there are 13.4 engaged Associates for every disengaged Associate. This compares to a 2.6:1 ratio in 2003 and a national average of 1.47:1. Gallup, Inc. defines “world-class” as 8:1.
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·
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Customer surveys rank us in the top 10% of all companies Gallup, Inc. surveys. More than 44% of our customers ranked us a “five” out of “five,” strongly agreeing with the statement “I can’t imagine a world without WSFS” and nearly 70% of our customers ranked us a “five” out of “five”, strongly agreeing with the statement “WSFS is the perfect bank for me.”
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·
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Small enough to offer customers responsive, personalized service and direct access to decision makers.
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·
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Large enough to provide all the products and services needed by our target market customers.
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·
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One point of contact. Each of our Relationship Managers is responsible for understanding his or her customers’ needs and bringing together the right resources in the Bank to meet those needs.
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·
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A customized approach to our clients. We believe this gives us an advantage over our competitors who are too large or centralized to offer customized products or services.
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·
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Products and services that our customers value. This includes a broad array of banking, cash management and trust and wealth management products, as well as a legal lending limit high enough to meet the credit needs of our customers, especially as they grow.
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·
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Rapid response and a company that is easy to do business with. Our customers tell us this is an important differentiator from larger, in-market competitors.
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(Most recent available statistics)
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Delaware
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National
Average |
||||||
Unemployment
(For December 2011) (1)
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7.4 | % | 8.5 | % | ||||
Median Household Income
(2006-2010) (2)
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$ | 57,599 | $ | 51,914 | ||||
Population Growth
(2000-2010) (3)
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14.6 | % | 9.7 | % | ||||
(1) Bureau of Labor Statistics, Economy at a Glance; (2) U.S. Census Bureau, State & County Quick Facts; (3) U.S. Census Bureau, Population Estimates
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·
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Prudent capital levels. Maintaining prudent capital levels is key to our operating philosophy. At December 31, 2011, our tangible common equity ratio was 7.18%. All regulatory capital levels for WSFS Bank maintained a meaningful cushion above well-capitalized levels. WSFS Bank’s Tier 1 capital ratio was 12.18% as of December 31, 2011, more than a $199 million cushion in excess of the 6% “well-capitalized” level, and our total risk-based capital ratio was 13.43%, more than $110 million above a “well-capitalized” level of 10.00%.
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·
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We maintain discipline in our lending, including planned portfolio diversification. Additionally, we take a proactive approach to identifying trends in our business and lending market and have responded to areas of concern. For instance, in 2005 we limited our exposure to construction and land development (CLD) loans as we anticipated an end to the expansion in housing prices. As of December 31, 2011, CLD loans represent only 3% of our total loans. In 2009 and 2010, we increased our portfolio monitoring and reporting sophistication and hired additional senior credit administration and asset disposition professionals to manage our portfolio. We diversify our loan portfolio to limit our exposure to any single type of credit. Such discipline supplements careful underwriting and the benefits of knowing our customers.
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·
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We seek to minimize credit risk in our investment portfolio and use this portion of our balance sheet primarily to help us manage liquidity and interest rate risk, while providing some marginal income. As a result, we have had no exposure to Freddie Mac or Fannie Mae preferred securities or Trust Preferred securities. Our securities purchases have been almost exclusively AAA-rated credits. This philosophy and pre-purchase due diligence has allowed us to avoid the significant investment write-downs taken by many of our bank peers (only $86,000 of other-than-temporary impairment charges recorded during this cycle to date).
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·
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Developing talented, service-minded Associates. We have successfully recruited Associates with strong ties to, and the passion to serve their communities to enhance our service in existing markets and provide a strong start in new communities. We also focus efforts on developing talent and leadership from our current Associate base to better equip those Associates for their jobs and prepare them for leadership roles at WSFS.
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·
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Embracing the Human Sigma concept. We are committed to building Associate Engagement and Customer Advocacy as a way to differentiate ourselves and grow our franchise.
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·
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Development of new products through innovation and utilization of new technologies, including growing our on-line channels and mobile banking applications.
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·
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Continuing strong growth in commercial lending by:
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o
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Offering local decision making by seasoned banking professionals.
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o
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Execution of our community banking model that combines Stellar Service with the banking products and services our business customers’ demand.
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o
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The addition of twelve seasoned lending professionals during the past two years that have helped us win customers in our Delaware and southeastern Pennsylvania markets.
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·
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Aggressively growing deposits. We have energized our retail branch strategy by combining Stellar Service with an expanded and updated branch network. We have implemented a number of additional measures to accelerate our deposit growth. We will continue to grow by:
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o
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Offering our products through a significantly expanded and updated branch network.
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o
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Providing a Stellar Service experience to our customers.
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o
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Further expanding our commercial customer relationships with deposit and cash management products.
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o
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Finding creative ways to build deposit market share such as targeted marketing programs.
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o
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Selectively opening new branches, including in specific Southeastern Pennsylvania locations.
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·
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Over the next several years we expect our growth will be approximately 80% organic and 20% through acquisition, although each year’s growth will reflect the opportunities available to us at the time.
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·
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Exploring niche businesses. We are an organization with an entrepreneurial spirit and are open to the risk/reward proposition that comes with such businesses.
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·
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Committed to always doing the right thing.
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·
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Empowered to serve our customers and communities.
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·
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Dedicated to openness and candor.
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·
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Driven to grow and improve.
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·
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$38.8 million in Federal Agency debt securities with maturities of five years or less.
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·
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$668.0 million of Government Sponsored Entity (“GSE”) mortgage-backed securities (“MBS”). Of these, $193.7 million are collateralized mortgage obligations (“CMOs”) and $474.3 million are GSE MBS with 10-30 year original final maturities.
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·
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$130.3 million in non-GSE MBS, of which $118.0 million are Non-Agency RE-REMIC MBS in 21 different issues. These bonds are re-securitizations of existing issuers that create new senior/sub structures with added credit enhancement for the senior class. All bonds purchased are senior class and were rated AAA at purchase in 2009 or later. Four bonds are on “Credit Watch Negative” by S&P or Fitch. Substantially all (more than 99%) of our non-GSE MBS were rated investment grade at December 31, 2011.
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At December 31,
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2011
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2010
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2009
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Percent of
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Percent of
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Percent of
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|||
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Amount
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Assets
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Amount
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Assets
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Amount
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Assets
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(Dollars in Thousands)
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Held-to-Maturity
:
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State and political subdivisions
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$
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—
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—
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%
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$
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219
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—
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%
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$
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709
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—
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%
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Available-for-Sale
:
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Reverse Mortgages (obligation)
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(646)
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—
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(686)
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—
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(530)
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—
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State and political subdivisions
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4,159
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0.1
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2,879
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0.1
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3,935
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0.1
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U.S. Government and agencies
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38,776
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0.9
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49,691
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1.2
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40,695
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1.1
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42,289
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1.0
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51,884
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1.3
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44,100
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1.2
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Short-term investments
:
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Interest-bearing deposits in other banks
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9
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—
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254
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—
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1,090
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—
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$
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42,298
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1.0
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%
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$
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52,357
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1.3
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%
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$
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45,899
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1.2
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%
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At December 31, 2011
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||||
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Weighted
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||
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Average
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Amount
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Yield (1)
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(Dollars in Thousands)
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Available-for-Sale
:
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Reverse Mortgages (2):
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Within one year
|
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$
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(646)
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N/A
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State and political subdivisions (3):
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Within one year
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555 | 4.07 | % | |||||
After one but within five years
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1,290 | 4.26 | ||||||
After five but within ten years
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2,000 | 2.11 | ||||||
Over ten years
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314 | 4.50 | ||||||
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4,159 | 3.22 | ||||||
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U.S. Government and agencies:
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Within one year
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8,007 | 1.54 | ||||||
After one but within five years
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30,769 | 0.86 | ||||||
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38,776 | 1.00 | ||||||
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Total debt securities, available-for-sale
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42,289 | 1.22 | ||||||
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Short-term investments
:
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||||||||
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Interest-bearing deposits in other banks
|
9 | ― | ||||||
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||||||||
Total short-term investments
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9 | ― | ||||||
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||||||||
Total debt securities and short-term investments
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$ | 42,298 | 1.22 | % |
( 1 )
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Reverse mortgages have been excluded from weighted average yield calculations because income can vary significantly from reporting period to reporting period due to the volatility of factors used to value the portfolio.
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( 2 )
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Reverse mortgages do not have contractual maturities. We have included reverse mortgages in maturities within one year.
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( 3 )
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Yields on obligations of state and political subdivisions are not calculated on a tax-equivalent basis since the effect would be immaterial.
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At December 31,
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|||||||||||||||||||||||
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2011
|
2010
|
2009
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Amount
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Rate
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Amount
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Rate
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Amount
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Rate
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(Dollars in thousands)
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Available-for-Sale
:
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Collateralized mortgage obligations (1)
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$ | 323,980 | 4.31 | % | $ | 490,946 | 5.14 | % | $ | 519,527 | 5.44 | % | ||||||||||||
FNMA
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320,019 | 2.66 | 89,226 | 3.20 | 61,603 | 3.63 | ||||||||||||||||||
FHLMC
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93,305 | 2.58 | 43,970 | 3.44 | 44,536 | 3.87 | ||||||||||||||||||
GNMA
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60,991 | 2.82 | 65,849 | 3.52 | 46,629 | 4.32 | ||||||||||||||||||
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$ | 798,295 | 3.33 | % | $ | 689,991 | 4.63 | % | $ | 672,295 | 5.00 | % | ||||||||||||
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Trading
:
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|
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Collateralized mortgage obligations
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$ | 12,432 | 3.28 | % | $ | 12,432 | 3.32 | % | $ | 12,183 | 3.74 | % | ||||||||||||
(1) Includes GSE CMOs available-for-sale.
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The following table shows the composition of our loan portfolio at year-end for the last five years.
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At December 31,
|
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2011
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2010
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2009
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2008
|
2007
|
|||||||||||||||||||||||||||||||||||
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Amount
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Percent
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Amount
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Percent
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Amount
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Percent
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Amount
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Percent
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Amount
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Percent
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||||||||||||||||||||||||||||||
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(Dollars in Thousands)
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Types of Loans
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Commercial real estate:
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Commercial mortgage
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$ | 626,739 | 23.1 | % | $ | 625,379 | 24.2 | % | $ | 524,380 | 21.2 | % | $ | 558,979 | 22.9 | % | $ | 465,928 | 20.9 | % | ||||||||||||||||||||
Construction
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106,268 | 3.9 | 140,832 | 5.5 | 231,625 | 9.3 | 251,508 | 10.3 | 276,939 | 12.4 | ||||||||||||||||||||||||||||||
Total commercial real estate
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733,007 | 27.0 | 766,211 | 29.7 | 756,005 | 30.5 | 810,487 | 33.2 | 742,867 | 33.3 | ||||||||||||||||||||||||||||||
Commercial
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1,460,812 | 53.9 | 1,239,102 | 48.1 | 1,120,807 | 45.2 | 942,920 | 38.6 | 787,539 | 35.3 | ||||||||||||||||||||||||||||||
Total commercial loans
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2,193,819 | 80.9 | 2,005,313 | 77.8 | 1,876,812 | 75.7 | 1,753,407 | 71.8 | 1,530,406 | 68.6 | ||||||||||||||||||||||||||||||
Consumer loans:
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Residential real estate
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274,105 | 10.5 | 308,857 | 12.6 | 348,873 | 14.4 | 422,743 | 17.4 | 447,435 | 20.1 | ||||||||||||||||||||||||||||||
Consumer
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290,979 | 10.7 | 309,722 | 12.0 | 300,648 | 12.1 | 296,728 | 12.1 | 278,272 | 12.4 | ||||||||||||||||||||||||||||||
Total consumer loans
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565,084 | 21.2 | 618,579 | 24.6 | 649,521 | 26.5 | 719,471 | 29.5 | 725,707 | 32.5 | ||||||||||||||||||||||||||||||
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Gross loans
|
$ | 2,758,903 | 102.1 | $ | 2,623,892 | 102.4 | $ | 2,526,333 | 102.2 | $ | 2,472,878 | 101.3 | $ | 2,256,113 | 101.1 | |||||||||||||||||||||||||
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|
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Less:
|
||||||||||||||||||||||||||||||||||||||||
Deferred fees (unearned income)
|
3,234 | 0.1 | 2,185 | 0.1 | 2,098 | 0.1 | 129 | - | (715 | ) | - | |||||||||||||||||||||||||||||
Allowance for loan losses
|
53,080 | 2.0 | 60,339 | 2.3 | 53,446 | 2.1 | 31,189 | 1.3 | 25,252 | 1.1 | ||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Net loans (1)
|
$ | 2,702,589 | 100.0 | % | $ | 2,561,368 | 100.0 | % | $ | 2,470,789 | 100.0 | % | $ | 2,441,560 | 100.0 | % | $ | 2,231,576 | 100.0 | % | ||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
(1) Excludes $10,185, $14,522, $8,366, $2,275, and $2,404 of residential mortgage loans held-for-sale at December 31, 2011, 2010, 2009, 2008 and 2007, respectively.
|
|
Less than
|
One to
|
Over
|
|
||||||||||||
|
One Year
|
Five Years
|
Five Years
|
Total
|
||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||
|
|
|
|
|
||||||||||||
Commercial mortgage loans
|
$ | 121,277 | $ | 359,484 | $ | 145,980 | $ | 626,741 | ||||||||
Construction loans
|
57,807 | 42,788 | 5,673 | 106,268 | ||||||||||||
Commercial loans
|
477,854 | 662,239 | 320,718 | 1,460,811 | ||||||||||||
Residential real estate loans (1)
|
18,648 | 36,774 | 218,683 | 274,105 | ||||||||||||
Consumer loans
|
34,091 | 51,000 | 205,887 | 290,978 | ||||||||||||
|
$ | 709,677 | $ | 1,152,285 | $ | 896,941 | $ | 2,758,903 | ||||||||
|
||||||||||||||||
Rate sensitivity:
|
||||||||||||||||
Fixed
|
$ | 99,329 | $ | 411,779 | $ | 336,274 | $ | 847,382 | ||||||||
Adjustable (2)
|
610,348 | 740,506 | 560,667 | 1,911,521 | ||||||||||||
Gross loans
|
$ | 709,677 | $ | 1,152,285 | $ | 896,941 | $ | 2,758,903 |
(1) Excludes loans held-for-sale.
|
|
|
(2) Includes hybrid adjustable-rate mortgages.
|
|
|
|
At December 31,
|
|||||||||||||||||||||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||||||||||||||||||||||
|
|
Percent of
|
|
Percent of
|
|
Percent of
|
|
Percent of
|
|
Percent of
|
||||||||||||||||||||||||||||||
|
|
Total
|
|
Total
|
|
Total
|
|
Total
|
|
Total
|
||||||||||||||||||||||||||||||
|
|
Consumer
|
|
Consumer
|
|
Consumer
|
|
Consumer
|
|
Consumer
|
||||||||||||||||||||||||||||||
|
Amount
|
Loans
|
Amount
|
Loans
|
Amount
|
Loans
|
Amount
|
Loans
|
Amount
|
Loans
|
||||||||||||||||||||||||||||||
|
(Dollars in Thousands)
|
|||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
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|
|
|
|
||||||||||||||||||||||||||||||
Equity secured installment loans
|
$ | 74,721 | 25.7 | % | $ | 82,188 | 26.5 | % | $ | 102,727 | 34.2 | % | $ | 131,550 | 44.3 | % | $ | 147,551 | 53.0 | % | ||||||||||||||||||||
Home equity lines of credit
|
192,917 | 66.3 | 205,244 | 66.3 | 177,407 | 59.0 | 141,678 | 47.8 | 107,912 | 38.8 | ||||||||||||||||||||||||||||||
Automobile
|
1,011 | 0.3 | 1,097 | 0.4 | 1,135 | 0.4 | 1,134 | 0.4 | 1,159 | 0.4 | ||||||||||||||||||||||||||||||
Unsecured lines of credit
|
8,378 | 2.9 | 7,758 | 2.5 | 7,246 | 2.4 | 6,779 | 2.3 | 5,972 | 2.1 | ||||||||||||||||||||||||||||||
Other
|
13,952 | 4.8 | 13,435 | 4.3 | 12,133 | 4.0 | 15,587 | 5.2 | 15,678 | 5.7 | ||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Total consumer loans
|
$ | 290,979 | 100.0 | % | $ | 309,722 | 100.0 | % | $ | 300,648 | 100.0 | % | $ | 296,728 | 100.0 | % | $ | 278,272 | 100.0 | % | ||||||||||||||||||||
|
·
|
Deposit growth
|
·
|
Brokered deposits
|
·
|
Borrowing from the Federal Home Loan Bank (“FHLB”)
|
·
|
Federal Reserve Discount Window access
|
·
|
Other borrowings such as repurchase agreements
|
·
|
Cash flow from securities and loan sales and repayments
|
·
|
Net income
|
|
|
|
December 31,
|
|
|
|
|
|
|
|
|
Maturity Period
|
2011
|
|
|
|
|
|
|||
|
|
|
(In Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Less than 3 months
|
|
$
|
99,799
|
|
|
|
|||
|
Over 3 months to 6 months
|
|
|
42,314
|
|
|
|
|||
|
Over 6 months to 12 months
|
|
|
93,702
|
|
|
|
|||
|
Over 12 months
|
|
|
81,489
|
|
|
|
|||
|
|
|
$
|
317,304
|
|
|
|
•
|
The OTS was eliminated. The federal thrift charter has been preserved under OCC jurisdiction.
|
•
|
A new independent Consumer Financial Protection Bureau has been established within the Federal Reserve, empowered to exercise broad regulatory, supervisory and enforcement authority with respect to both new and existing consumer financial protection laws. Smaller financial institutions, like our Bank, will be subject to the supervision and enforcement of their primary federal banking regulator with respect to the federal consumer financial protection laws.
|
•
|
Tier 1 capital treatment for “hybrid” capital items like trust preferred securities is eliminated, subject to various grandfathering and transition rules. Our trust preferred securities are grandfathered under this legislation.
|
•
|
The prohibition on payment of interest on demand deposits has been repealed.
|
•
|
State law is preempted only if it would have a discriminatory effect on a federal savings association or is preempted by any other federal law. The OCC must make a preemption determination on a case-by-case basis with respect to a particular state law or other state law with substantively equivalent terms.
|
•
|
Deposit insurance had been permanently increased to $250,000 and unlimited deposit insurance for noninterest-bearing transaction accounts extended through December 31, 2012.
|
•
|
The deposit insurance assessment base has been changed to equal a depository institution’s total assets minus the sum of its average tangible equity during the assessment period.
|
•
|
The minimum reserve ratio of the Deposit Insurance Fund increased to 1.35% of estimated annual insured deposits or assessment base; however, the FDIC was directed to “offset the effect” of the increased reserve ratio for insured depository institutions with total consolidated assets of less than $10 billion.
|
•
|
Authority over savings and loan holding companies has been transferred to the Federal Reserve.
|
•
|
Leverage capital requirements and risk-based capital requirements applicable to depository institutions and bank holding companies have been extended to thrift holding companies following a five year grace period.
|
•
|
The Federal Deposit Insurance Act (“FDIA”) was amended to direct federal regulators to require depository institution holding companies to serve as a source of strength for their depository institution subsidiaries.
|
•
|
The Federal Reserve can require a grandfathered unitary thrift holding company that conducts commercial or manufacturing activities or other nonfinancial activities in addition to financial activities to conduct all or part of its financial activities in an intermediate savings and loan holding company.
|
•
|
The SEC was authorized to adopt rules requiring public companies to make their proxy materials available to shareholders for nomination of their own candidates for election to the board. Proposed regulations of the SEC in this regard were struck down by the D.C. Circuit Court. The SEC has proceeded however, in adopting revisions to Rule 14a-8 under the Exchange Act which may facilitate shareholder nominations in the future.
|
•
|
Public companies will be required to provide their shareholders with a nonbinding vote (i) at least once every three years on the compensation paid to executive officers, and (ii) at least once every six years on whether they should have a “say on pay” vote every one, two or three years.
|
||
•
|
Additional provisions, including some not specifically aimed at thrifts and thrift holding companies, may nonetheless have an impact on us.
|
•
|
An increase in the number of borrowers unable to repay their loans in accordance with the original terms.
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
•
|
Our ability to assess the creditworthiness of customers and to estimate the losses inherent in our credit exposure is made more complex by these difficult market and economic conditions.
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
•
|
We may experience increases in foreclosures, delinquencies and customer bankruptcies, as well as more restricted access to funds.
|
•
|
The OTS has been eliminated and the OCC became the primary regulator. The federal thrift charter has been preserved under OCC jurisdiction.
|
•
|
A new independent Consumer Financial Protection Bureau has been established within the Federal Reserve, empowered to exercise broad regulatory, supervisory and enforcement authority with respect to both new and existing consumer financial protection laws. Smaller financial institutions, like our Bank, will be subject to the supervision and enforcement of their primary federal banking regulator with respect to the federal consumer financial protection laws.
|
•
|
Tier 1 capital treatment for “hybrid” capital items like trust preferred securities is eliminated, subject to various grandfathering and transition rules. Our trust preferred securities are grandfathered under this legislation.
|
•
|
Repeal of the federal prohibitions on the payment of interest on demand deposits, thereby generally permitting depository institutions to pay interest on all deposit accounts
|
•
|
State law is preempted only if it would have a discriminatory effect on a federal savings association or is preempted by any other federal law. The OCC must make a preemption determination on a case-by-case basis with respect to a particular state law or other state law with substantively equivalent terms.
|
•
|
Deposit insurance had been permanently increased to $250,000 and unlimited deposit insurance for noninterest-bearing transaction accounts extended through January 1, 2013.
|
•
|
Deposit insurance assessment base calculation will equal a depository institution’s total assets minus the sum of its average tangible equity during the assessment period.
|
•
|
The minimum reserve ratio of the deposit insurance fund increased to 1.35% of estimated annual insured deposits or assessment base; however, the FDIC is directed to “offset the effect” of the increased reserve ratio for insured depository institutions with total consolidated assets of less than $10 billion.
|
•
|
Authority over savings and loan holding companies has been transferred to the Federal Reserve.
|
•
|
Leverage capital requirements and risk-based capital requirements applicable to depository institutions and bank holding companies have been extended to thrift holding companies following a five year grace period.
|
•
|
The Federal Deposit Insurance Act (“FDIA”) was amended to direct federal regulators to require depository institution holding companies to serve as a source of strength for their depository institution subsidiaries.
|
•
|
The Federal Reserve can require a grandfathered unitary thrift holding company that conducts commercial or manufacturing activities or other nonfinancial activities in addition to financial activities to conduct all or part of its financial activities in an intermediate savings and loan holding company.
|
•
|
The SEC is authorized to adopt rules requiring public companies to make their proxy materials available to shareholders for nomination of their own candidates for election to the board.
|
•
|
Public companies will be required to provide their shareholders with a nonbinding vote (i) at least once every three years on the compensation paid to executive officers, and (ii) at least once every six years on whether they should have a “say on pay” vote every one, two or three years.
|
•
|
Additional provisions, including some not specifically aimed at thrifts and thrift holding companies, will nonetheless have an impact on us.
|
·
|
The health of the US and International economies, soundness of financial institutions and other counterparties with which the Christiana Trust division conducts business, changes in trading volumes or in the financial markets in general, including the debt and equity markets or in client portfolios whose values directly impact revenue, the effect of governmental actions on the Christiana Trust division, its competitors and counterparties and financial markets: changes in the regulatory environment and changes in tax laws, accounting requirements or interpretations that affect the Christiana Trust division or its clients.
|
·
|
In addition, changes in the nature and activities of Christiana Trust division’s competition, success in maintaining existing business, continuing to generate new business, identifying and penetrating targeted markets, managing compliance with legal, tax, regulatory requirements, maintaining a business mix with acceptable margins, the continuing ability to generate investment results that satisfy its clients and attract prospective clients, success in recruiting and retaining the necessary personnel to support business growth and maintain sufficient expertise to support complex products and services and management’s ability to effectively address risk management practices and controls, address operating risks including human errors or omissions, pricing or valuation of securities, fraud, system performance, systems interruptions or breakdowns in processes or internal controls, and success in controlling expenses all may have negative impact on operating results.
|
|
|
|
|
|
Net Book Value
of Property or Leasehold Improvements (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned/
Leased |
|
Date Lease Expires
|
|
|
Deposits
|
|
Location
|
|
|
|
|
||||
|
|
|
|
|
|
(In Thousands)
|
||
WSFS Bank Center Branch
|
Leased
|
|
2025
|
|
$650
|
|
$958,658
|
|
Main Office
|
|
|
|
|||||
500 Delaware Avenue
|
|
|
|
|||||
Wilmington, DE 19801
|
|
|
|
|||||
Union Street Branch
|
Leased
|
|
2013
|
|
62
|
|
58,830
|
|
211 North Union Street
|
|
|
|
|||||
Wilmington, DE 19805
|
|
|
|
|||||
Fairfax Shopping Center
|
Leased
|
|
2048
|
|
1,109
|
|
96,163
|
|
2005 Concord Pike
|
|
|
|
|||||
Wilmington, DE 19803
|
|
|
|
|||||
Branmar Plaza Shopping Center Branch (2)
|
Leased
|
|
2013
|
|
N/A
|
|
N/A
|
|
1812 Marsh Road
|
|
|
|
|||||
Wilmington, DE 19810
|
|
|
|
|||||
Prices Corner Shopping Center Branch
|
Leased
|
|
2023
|
|
439
|
|
108,998
|
|
3202 Kirkwood Highway
|
|
|
|
|||||
Wilmington, DE 19808
|
|
|
|
|||||
Pike Creek Shopping Center Branch
|
Leased
|
|
2015
|
|
397
|
|
122,310
|
|
4730 Limestone Road
|
|
|
|
|||||
Wilmington, DE 19808
|
|
|
|
|||||
University Plaza Shopping Center Branch
|
Leased
|
|
2041
|
|
1,078
|
|
57,222
|
|
100 University Plaza
|
|
|
|
|||||
Newark, DE 19702
|
|
|
|
|||||
College Square Shopping Center Branch
|
Leased
|
|
2026
|
|
206
|
|
135,798
|
|
115 College Square Drive
|
|
|
|
|||||
Newark, DE 19711
|
|
|
|
|||||
Airport Plaza Shopping Center Branch
|
Leased
|
|
2013
|
|
499
|
|
76,577
|
|
144 N. DuPont Hwy.
|
|
|
|
|||||
New Castle, DE 19720
|
|
|
|
|||||
Stanton Branch
|
Leased
|
|
2016
|
|
12
|
|
42,310
|
|
Inside ShopRite
|
|
|
|
|||||
1600 W. Newport Pike
|
|
|
|
|||||
Wilmington, DE 19804
|
|
|
|
|||||
Glasgow Branch
|
Leased
|
|
2012
|
|
15
|
|
39,078
|
|
2400 Peoples Plaza
|
|
|
|
|||||
Routes 40 & 896
|
|
|
|
|||||
Newark, DE 19702
|
|
|
|
|||||
Middletown Crossing Shopping Center
|
Leased
|
|
2027
|
|
625
|
|
65,078
|
|
400 East Main Street
|
|
|
|
|||||
Middletown, DE 19709
|
|
|
|
|
|
|
|
|
|
Net Book Value
of Property or Leasehold Improvements (1) |
|
|
|
|
Owned/
Leased |
|
Date Lease
Expires |
|
|
|
|
|
|
|
|
|
Deposits
|
|||
Location
|
|
|
|
|
||||
|
|
|
|
|
|
(In Thousands)
|
||
Dover Branch
|
Leased
|
|
2060
|
|
$398
|
|
$12,091
|
|
Dover Mart Shopping Center
|
|
|
|
|||||
290 South DuPont Highway
|
|
|
|
|||||
Dover, DE 19901
|
|
|
|
|||||
West Dover Loan Office (3)
|
|
Leased
|
|
2019
|
|
4
|
|
10
|
Greentree Office Center
|
|
|
|
|
|
|
||
160 Greentree Drive
|
|
|
|
|
|
|
||
Suite 103 & 105
|
|
|
|
|
|
|
||
Dover, DE 19904
|
|
|
|
|
|
|
||
Blue Bell Loan Office
|
|
Leased
|
|
2012
|
|
11
|
|
5,226
|
721 Skippack Pike
|
|
|
|
|
||||
Suite 101
|
|
|
|
|
||||
Blue Bell, PA 19422
|
|
|
|
|
||||
Glen Mills Branch
|
|
Leased
|
|
2040
|
|
1,553
|
|
20,417
|
395 Wilmington-West Chester Pike
|
|
|
|
|
||||
Glen Mills, PA 19342
|
|
|
|
|
||||
Brandywine Branch
|
|
Leased
|
|
2014
|
|
4
|
|
35,791
|
Inside Safeway Market
|
|
|
|
|
||||
2522 Foulk Road
|
|
|
|
|
||||
Wilmington, DE 19810
|
|
|
|
|
||||
Operations Center (4)
|
|
Owned
|
|
|
|
550
|
|
N/A
|
2400 Philadelphia Pike
|
|
|
|
|
||||
Wilmington, DE 19703
|
|
|
|
|
||||
Longwood Branch
|
|
Leased
|
|
2015
|
|
25
|
|
17,692
|
826 East Baltimore Pike
|
|
|
|
|
||||
Suite 7
|
|
|
|
|
||||
Kennett Square, PA 19348
|
|
|
|
|
||||
Holly Oak Branch
|
|
Leased
|
|
2015
|
|
7
|
|
27,710
|
Inside Super Fresh
|
|
|
|
|
||||
2105 Philadelphia Pike
|
|
|
|
|
||||
Claymont, DE 19703
|
|
|
|
|
||||
Hockessin Branch
|
|
Leased
|
|
2030
|
|
521
|
|
112,793
|
7450 Lancaster Pike
|
|
|
|
|
||||
Wilmington, DE 19707
|
|
|
|
|
||||
Lewes LPO
|
|
Leased
|
|
2018
|
|
56
|
|
46,803
|
Southpointe Professional Center
|
|
|
|
|
||||
1515 Savannah Road, Suite 103
|
|
|
|
|
||||
Lewes, DE 19958
|
|
|
|
|
||||
Fox Run Shopping Center Branch
|
|
Leased
|
|
2025
|
|
674
|
|
93,244
|
210 Fox Hunt Drive
|
|
|
|
|
||||
Route 40 & 72
|
|
|
|
|
||||
Bear, DE 19701
|
|
|
|
|
|
|
|
|
|
|
Net Book Value
of Property or Leasehold Improvements (1) |
|
|
|
|
Owned/
Leased |
|
Date Lease Expires
|
|
|
|
|
|
|
|
|
|
Deposits
|
|||
Location
|
|
|
|
|
||||
|
|
|
|
|
|
(In Thousands)
|
||
Camden Town Center Branch
|
|
Leased
|
|
2049
|
|
$742
|
|
$44,046
|
4566 S. DuPont Highway
|
|
|
|
|
||||
Camden, DE 19934
|
|
|
|
|
||||
Rehoboth Branch
|
|
Leased
|
|
2029
|
|
712
|
|
53,201
|
Lighthouse Plaza
|
|
|
|
|
||||
19335 Coastal Highway
|
|
|
|
|
||||
Rehoboth, DE 19771
|
|
|
|
|
||||
West Dover Branch
|
|
Owned
|
|
|
|
2,057
|
|
40,161
|
1486 Forest Avenue
|
|
|
|
|
||||
Dover, DE 19904
|
|
|
|
|
||||
Longneck Branch
|
|
Leased
|
|
2026
|
|
1,006
|
|
37,047
|
25926 Plaza Drive
|
|
|
|
|
||||
Millsboro, DE 19966
|
|
|
|
|
||||
Smyrna Branch
|
|
Leased
|
|
2048
|
|
1,041
|
|
44,720
|
Simon’s Corner Shopping Center
|
|
|
|
|
||||
400 Jimmy Drive
|
|
|
|
|
||||
Smyrna, DE 19977
|
|
|
|
|
||||
Oxford, LPO
|
|
Leased
|
|
2017
|
|
4
|
|
10,055
|
59 South Third Street
|
|
|
|
|
||||
Suite 1
|
|
|
|
|
||||
Oxford, PA 19363
|
|
|
|
|
||||
Greenville Branch
|
|
Owned
|
|
|
|
1,998
|
|
388,868
|
3908 Kennett Pike
|
|
|
|
|
||||
Greenville, DE 19807
|
|
|
|
|
||||
WSFS Bank Center (5)
|
|
Leased
|
|
2025
|
|
2,603
|
|
N/A
|
500 Delaware Avenue
|
|
|
|
|
||||
Wilmington, DE 19801
|
|
|
|
|
||||
Annandale, LPO
|
|
Leased
|
|
2017
|
|
3
|
|
2,404
|
7010 Little River Tnpk.
|
|
|
|
|
||||
Suite 330
|
|
|
|
|
||||
Annandale, VA 22003
|
|
|
|
|
||||
Oceanview Branch
|
|
Leased
|
|
2024
|
|
1,129
|
|
23,367
|
69 Atlantic Avenue
|
|
|
|
|
||||
Oceanview, DE 19970
|
|
|
|
|
||||
Selbyville Branch
|
|
Leased
|
|
2013
|
|
32
|
|
8,135
|
38394 DuPont Boulevard
|
|
|
|
|
||||
Selbyville, DE 19975
|
|
|
|
|
||||
Lewes Branch
|
|
Leased
|
|
2028
|
|
253
|
|
25,865
|
34383 Carpenters Way
|
|
|
|
|
||||
Lewes, DE 19958
|
|
|
|
|
||||
Millsboro Branch
|
|
Leased
|
|
2029
|
|
1,049
|
|
11,990
|
26644 Center View Drive
|
|
|
|
|
||||
Millsboro, DE 19966
|
|
|
|
|
|
|
|
|
|
|
Net Book Value
of Property or Leasehold Improvements (1) |
|
|
|
|
Owned/
Leased |
|
Date Lease
Expires |
|
|
|
|
Location
|
|
|
|
|
Deposits
|
|||
|
|
|
|
|||||
|
|
|
|
|
|
(In Thousands)
|
||
Concord Square Branch
|
|
Leased
|
|
2016
|
|
$37
|
|
$36,235
|
4401 Concord Pike
|
|
|
|
|
||||
Wilmington, DE 19803
|
|
|
|
|
||||
Crossroads Branch (6)
|
|
Leased
|
|
2013
|
|
34
|
|
17,420
|
2080 New Castle Avenue
|
|
|
|
|
||||
New Castle, DE 19720
|
|
|
|
|
||||
Delaware City Branch
|
|
Owned
|
|
|
|
98
|
|
8,420
|
145 Clinton Street
|
|
|
|
|
||||
Delaware City, DE 19706
|
|
|
|
|
||||
West Newark Branch
|
|
Leased
|
|
2040
|
|
1,457
|
|
3,698
|
201 Suburban Plaza
|
|
|
|
|
||||
Newark, DE 19711
|
|
|
|
|
||||
Lantana Shopping Center Branch (7)
|
|
Leased
|
|
2050
|
|
41
|
|
N/A
|
6274 Limestone Road
|
|
|
|
|
||||
Hockessin, DE 19707
|
|
|
|
|
||||
West Chester Branch
|
|
Leased
|
|
2047
|
|
80
|
|
8,083
|
400 East Market Street
|
|
|
|
|
||||
West Chester, PA 19380
|
|
|
|
|
||||
Edgemont Branch
|
|
Leased
|
|
2040
|
|
1,364
|
|
12,835
|
5000 West Chester Pike
|
|
|
|
|
||||
Newtown Square, PA 19073
|
|
|
|
|
||||
Branmar Branch
|
|
Leased
|
|
2061
|
|
1,145
|
|
130,027
|
1712 Foulk Road
|
|
|
|
|
||||
Wilmington, DE 19810
|
|
|
|
|
||||
Trolley Square
|
|
Leased
|
|
2041
|
|
300
|
|
41,819
|
9A Trolley Square
|
|
|
|
|
||||
Wilmington, DE 19806
|
|
|
|
|
||||
Milford
|
|
Leased
|
|
2015
|
|
63
|
|
4,014
|
688 North DuPont Highway
|
|
|
|
|
||||
Milford, DE 19963
|
|
|
|
|
||||
Seaford
|
|
Leased
|
|
2036
|
|
127
|
|
1,784
|
22820 Sussex Highway
|
|
|
|
|
||||
Sussex Commons Shopping Center
|
|
|
|
|||||
Unit 19
|
|
|
|
|
|
|
||
Seaford, DE 19963
|
|
|
|
|
|
|
||
Media
|
|
Leased
|
|
2022
|
|
185
|
|
7,596
|
100 East State Street
|
|
|
|
|
||||
Media, PA 19063
|
|
|
|
|
||||
Plymouth Meeting
|
|
Leased
|
|
2016
|
|
18
|
|
40,715
|
450 Plymouth Road
|
|
|
|
|
||||
Suite 306
|
|
|
|
|
||||
Plymouth Meeting, PA 19462
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Book Value
of Property or Leasehold Improvements (1) |
|
|
|
|
Owned/ Leased
|
|
Date Lease Expires
|
|
|
|
|
Location
|
|
|
|
|
Deposits
|
|||
|
|
|
|
|||||
|
|
|
|
|
|
(In Thousands)
|
||
Midway Shopping Center (8)
|
|
Leased
|
|
2062
|
|
$373
|
|
N/A
|
4601 Kirkwood Highway
|
|
|
|
|
||||
Wilmington, DE 19808
|
|
|
|
|
||||
Cash Connect
|
|
Leased
|
|
2021
|
|
N/A
|
|
N/A
|
White Clay Mill
|
|
|
|
|
||||
500 Creek View Road
|
|
|
|
|
|
|
||
Suite 100
|
|
|
|
|
|
|
||
Newark, DE 19711
|
|
|
|
|
|
|
||
Operations Center (9)
|
|
Leased
|
|
2027
|
|
167
|
|
N/A
|
Silverside - Carr Corporate Center
|
|
|
|
|
||||
409 Silverside Road
|
|
|
|
|
|
|
||
Wilmington, DE 19809
|
|
|
|
|
|
|
||
Cypress Capital Management
|
|
Leased
|
|
2013
|
|
3
|
|
N/A
|
1220 Market Street
|
|
|
|
|
||||
Suite 704
|
|
|
|
|
|
|
||
Wilmington, DE 19801
|
|
|
|
|
|
|
||
Delaware Avenue Office
|
|
Leased
|
|
2012
|
|
-
|
|
N/A
|
300 Delaware Avenue
|
|
|
|
|
|
|
|
|
Suite 714
|
|
|
|
|
|
|
|
|
Wilmington, DE 19801
|
|
|
|
|
|
|
|
|
Greenville Wealth Management Center
|
|
Leased
|
|
2012
|
|
318
|
|
N/A
|
3801 Kennett Pike
|
|
|
|
|
|
|
|
|
Suite C-200
|
|
|
|
|
|
|
|
|
Greenville, DE 19807
|
|
|
|
|
|
|
|
|
Las Vegas Wealth Management Center
|
|
Leased
|
|
2013
|
|
-
|
|
N/A
|
101 Convention Center Drive
|
|
|
|
|
|
|
|
|
Suite P109
|
|
|
|
|
|
|
|
|
Las Vegas, NV 89109
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$27,334
|
|
$3,135,304
|
|
|
|
|
|
|
|
|
|
(1) The net book value of all the investment in premise and equipment totaled $36.0 million at December 31, 2011.
|
||||||||
(2) This office moved to a new location in 2011.
|
||||||||
(3) Also the location of a Corporate Training Center.
|
||||||||
(4) Expect to relocate this operations center location in 2012.
|
||||||||
(5) Location of Corporate Headquarters.
|
||||||||
(6) Branch is expected to close in May 2012.
|
||||||||
(7) Branch is expected to open in April 2012.
|
||||||||
(8) Branch is expected to open in April 2012.
|
||||||||
(9) Expect to relocate the operations center to this location in 2012.
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock Price Range
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Low
|
|
High
|
|
Dividends
|
|
|||
|
2011
|
4th
|
|
$
|
29.90
|
|
$
|
42.20
|
|
$
|
0.12
|
|
|
|
3rd
|
|
|
30.23
|
|
|
44.51
|
|
|
0.12
|
|
|
|
2nd
|
|
|
36.00
|
|
|
48.07
|
|
|
0.12
|
|
|
|
1st
|
|
|
39.00
|
|
|
50.19
|
|
|
0.12
|
|
|
|
|
|
|
|
|
|
|
|
$
|
0.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010
|
4th
|
|
$
|
36.37
|
|
$
|
50.99
|
|
$
|
0.12
|
|
|
|
3rd
|
|
|
32.87
|
|
|
38.82
|
|
|
0.12
|
|
|
|
2nd
|
|
|
34.05
|
|
|
46.00
|
|
|
0.12
|
|
|
|
1st
|
|
|
24.86
|
|
|
39.80
|
|
|
0.12
|
|
|
|
|
|
|
|
|
|
|
|
$
|
0.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative Total Return
|
||||||||||
|
|
2006
|
|
2007
|
|
2008
|
|
2009
|
|
2010
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WSFS Financial Corporation
|
$
|
100
|
$
|
76
|
$
|
73
|
$
|
40
|
$
|
74
|
$
|
57
|
Dow Jones Total Market Index
|
|
100
|
|
106
|
|
67
|
|
86
|
|
100
|
|
102
|
Nasdaq Bank Index
|
|
100
|
|
80
|
|
63
|
|
53
|
|
60
|
|
54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011
|
2010
|
2009
|
2008
|
2007
|
|||||||||||||||
|
(Dollars in Thousands, Except Per Share Data)
|
|||||||||||||||||||
At December 31,
|
|
|
|
|
|
|||||||||||||||
Total assets
|
$ | 4,289,008 | $ | 3,953,518 | $ | 3,748,507 | $ | 3,432,560 | $ | 3,200,188 | ||||||||||
Net loans (1)
|
2,712,774 | 2,575,890 | 2,479,155 | 2,443,835 | 2,233,980 | |||||||||||||||
Investment securities (2) (3)
|
42,569 | 52,232 | 45,517 | 49,688 | 28,272 | |||||||||||||||
Other investments
|
35,765 | 37,790 | 40,395 | 39,521 | 46,615 | |||||||||||||||
Mortgage-backed securities (2)
|
829,225 | 713,358 | 681,242 | 498,205 | 496,492 | |||||||||||||||
Total deposits
|
3,135,304 | 2,810,774 | 2,561,871 | 2,122,352 | 1,827,161 | |||||||||||||||
Borrowings (4)
|
656,609 | 680,595 | 787,798 | 999,734 | 1,068,149 | |||||||||||||||
Trust preferred borrowings
|
67,011 | 67,011 | 67,011 | 67,011 | 67,011 | |||||||||||||||
Stockholders’ equity
|
392,133 | 367,822 | 301,800 | 216,635 | 211,330 | |||||||||||||||
Number of full-service branches (5)
|
40 | 36 | 37 | 35 | 29 | |||||||||||||||
|
||||||||||||||||||||
For the Year Ended December 31,
|
||||||||||||||||||||
Interest income
|
$ | 158,642 | $ | 162,403 | $ | 157,730 | $ | 166,477 | $ | 189,477 | ||||||||||
Interest expense
|
32,605 | 41,732 | 53,086 | 77,258 | 107,468 | |||||||||||||||
Net interest income
|
126,037 | 120,671 | 104,644 | 89,219 | 82,009 | |||||||||||||||
Noninterest income
|
63,588 | 50,115 | 50,241 | 45,989 | 48,166 | |||||||||||||||
Noninterest expenses
|
127,477 | 109,332 | 108,504 | 89,098 | 82,031 | |||||||||||||||
Provision (benefit) for income taxes
|
11,475 | 5,454 | (2,093 | ) | 6,950 | 13,474 | ||||||||||||||
Net Income
|
22,677 | 14,117 | 663 | 16,136 | 29,649 | |||||||||||||||
Dividends on preferred stock and
|
||||||||||||||||||||
accretion of discount
|
2,770 | 2,770 | 2,590 | - | - | |||||||||||||||
Net income (loss) allocable to
|
||||||||||||||||||||
common stockholders
|
19,907 | 11,347 | (1,927 | ) | 16,136 | 29,649 | ||||||||||||||
Earnings (loss) per share allocable to
|
||||||||||||||||||||
common stockholders:
|
||||||||||||||||||||
Basic
|
2.31 | 1.48 | (0.30 | ) | 2.62 | 4.69 | ||||||||||||||
Diluted
|
2.28 | 1.46 | (0.30 | ) | 2.57 | 4.55 | ||||||||||||||
|
||||||||||||||||||||
Interest rate spread
|
3.49 | % | 3.47 | % | 3.10 | % | 2.94 | % | 2.80 | % | ||||||||||
Net interest margin
|
3.60 | 3.62 | 3.30 | 3.13 | 3.09 | |||||||||||||||
Efficiency ratio
|
66.85 | 63.61 | 69.56 | 65.36 | 62.48 | |||||||||||||||
Noninterest income as a percentage of
|
||||||||||||||||||||
total revenue (6)
|
33.34 | 29.16 | 32.21 | 33.74 | 36.69 | |||||||||||||||
Return on average assets
|
0.56 | 0.37 | 0.02 | 0.50 | 0.98 | |||||||||||||||
Return on average equity
|
5.96 | 4.21 | 0.24 | 7.30 | 14.34 | |||||||||||||||
Average equity to average assets
|
9.34 | 8.84 | 7.86 | 6.86 | 6.87 | |||||||||||||||
Tangible equity to assets
|
8.41 | 8.52 | 7.73 | 5.88 | 6.52 | |||||||||||||||
Tangible common equity to assets
|
7.18 | 7.18 | 6.31 | 5.88 | 6.52 | |||||||||||||||
Ratio of nonperforming assets to total
|
||||||||||||||||||||
assets
|
2.14 | 2.35 | 2.19 | 1.04 | 0.99 |
(1)
|
Includes loans held-for-sale.
|
(2)
|
Includes securities available-for-sale and trading.
|
(3)
|
Includes investments in reverse mortgages
|
(4)
|
Borrowings consist of FHLB advances, securities sold under agreement to repurchase and other borrowed funds.
|
(5)
|
WSFS opened five branches, closed one branch and relocated two branches in 2011; opened one branch, closed two branches, acquired and subsequently closed two branches in 2010; opened two branches in 2009; acquired six (keeping four open and closing two) in 2008 and opened three branches and closed one branch in 2007.
|
(6)
|
Computed on a fully tax-equivalent basis.
|
Year Ended December 31,
|
2011 vs. 2010
|
2010 vs. 2009
|
||||||||||||||||||||||
Volume
|
Yield/Rate
|
Net
|
Volume
|
Yield/Rate
|
Net
|
|||||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||||||
Interest Income:
|
||||||||||||||||||||||||
Commercial real estate loans
|
$ | 267 | $ | 147 | $ | 414 | $ | (2,084 | ) | $ | 542 | $ | (1,542 | ) | ||||||||||
Residential real estate loans
|
(2,143 | ) | (894 | ) | (3,037 | ) | (2,921 | ) | (1,486 | ) | (4,407 | ) | ||||||||||||
Commercial loans (1)
|
8,992 | (2,487 | ) | 6,505 | 5,106 | (317 | ) | 4,789 | ||||||||||||||||
Consumer loans
|
312 | 381 | 693 | (335 | ) | (406 | ) | (741 | ) | |||||||||||||||
Mortgage-backed securities
|
1,038 | (9,093 | ) | (8,055 | ) | 8,029 | (1,377 | ) | 6,652 | |||||||||||||||
Investment securities
|
(48 | ) | (243 | ) | (291 | ) | (9 | ) | (75 | ) | (84 | ) | ||||||||||||
FHLB Stock and deposits in other banks
|
— | 10 | 10 | — | 6 | 6 | ||||||||||||||||||
Favorable (unfavorable)
|
8,418 | (12,179 | ) | (3,761 | ) | 7,786 | (3,113 | ) | 4,673 | |||||||||||||||
Interest expense:
|
||||||||||||||||||||||||
Deposits:
|
||||||||||||||||||||||||
Interest-bearing demand
|
90 | (120 | ) | (30 | ) | 87 | (300 | ) | (213 | ) | ||||||||||||||
Money market
|
608 | (2,012 | ) | (1,404 | ) | 1,738 | (2,294 | ) | (556 | ) | ||||||||||||||
Savings
|
324 | 647 | 971 | 30 | (57 | ) | (27 | ) | ||||||||||||||||
Customer time deposits
|
96 | (2,618 | ) | (2,522 | ) | 601 | (6,165 | ) | (5,564 | ) | ||||||||||||||
Brokered certificates of deposits
|
(502 | ) | (479 | ) | (981 | ) | (247 | ) | (685 | ) | (932 | ) | ||||||||||||
FHLB of Pittsburgh advances
|
431 | (5,211 | ) | (4,780 | ) | (2,681 | ) | (873 | ) | (3,554 | ) | |||||||||||||
Trust Preferred borrowings
|
— | (15 | ) | (15 | ) | — | (407 | ) | (407 | ) | ||||||||||||||
Other borrowed funds
|
(506 | ) | 140 | (366 | ) | (265 | ) | 164 | (101 | ) | ||||||||||||||
Unfavorable (favorable)
|
541 | (9,668 | ) | (9,127 | ) | (737 | ) | (10,617 | ) | (11,354 | ) | |||||||||||||
Net change, as reported
|
$ | 7,877 | $ | (2,511 | ) | $ | 5,366 | $ | 8,523 | $ | 7,504 | $ | 16,027 | |||||||||||
(1) The tax-equivalent income adjustment is related to commercial loans.
|
Year Ended December 31,
|
2011
|
|
2010
|
|
2009
|
|
||||||||||||||||||
|
Average
|
|
Interest
|
|
Yield/
|
Average
|
|
Interest
|
|
Yield/
|
Average
|
|
Interest
|
|
Yield/
|
|||||||||
Balance
|
Rate (1)
|
Balance
|
Rate (1)
|
Balance
|
Rate (1)
|
|||||||||||||||||||
(Dollars in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (2) (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate loans
|
$
|
742,692
|
|
$
|
35,174
|
|
4.74
|
%
|
$
|
737,050
|
|
$
|
34,760
|
|
4.72
|
%
|
$
|
781,433
|
|
$
|
36,302
|
|
4.65
|
%
|
Residential real estate loans
|
|
300,081
|
|
|
14,335
|
|
4.78
|
|
|
344,140
|
|
|
17,372
|
|
5.05
|
|
|
400,561
|
|
|
21,779
|
|
5.44
|
|
Commercial loans
|
|
1,337,954
|
|
|
66,321
|
|
4.97
|
|
|
1,160,692
|
|
|
59,816
|
|
5.18
|
|
|
1,063,339
|
|
|
55,027
|
|
5.21
|
|
Consumer loans
|
|
300,703
|
|
|
15,092
|
|
5.02
|
|
|
294,288
|
|
|
14,399
|
|
4.89
|
|
|
301,234
|
|
|
15,140
|
|
5.03
|
|
Total loans
|
|
2,681,430
|
|
|
130,922
|
|
4.92
|
|
|
2,536,170
|
|
|
126,347
|
|
5.02
|
|
|
2,546,567
|
|
|
128,248
|
|
5.08
|
|
Mortgage-backed securities (4)
|
|
765,027
|
|
|
27,157
|
|
3.55
|
|
|
742,482
|
|
|
35,212
|
|
4.74
|
|
|
574,176
|
|
|
28,560
|
|
4.97
|
|
Investment securities (4) (5)
|
|
44,428
|
|
|
547
|
|
1.23
|
|
|
47,255
|
|
|
838
|
|
1.77
|
|
|
47,710
|
|
|
922
|
|
1.93
|
|
Other interest-earning assets
|
|
36,707
|
|
|
16
|
|
0.04
|
|
|
39,790
|
|
|
6
|
|
0.02
|
|
|
39,839
|
|
|
-
|
|
-
|
|
Total interest-earning assets
|
|
3,527,592
|
|
|
158,642
|
|
4.53
|
|
|
3,365,697
|
|
|
162,403
|
|
4.86
|
|
|
3,208,292
|
|
|
157,730
|
|
4.95
|
|
Allowance for loan losses
|
|
(57,325)
|
|
|
|
|
|
|
|
(61,104)
|
|
|
|
|
|
|
|
(40,731)
|
|
|
|
|
|
|
Cash and due from banks
|
|
65,147
|
|
|
|
|
|
|
|
59,900
|
|
|
|
|
|
|
|
57,396
|
|
|
|
|
|
|
Cash in non-owned ATMs
|
|
347,885
|
|
|
|
|
|
|
|
262,832
|
|
|
|
|
|
|
|
204,912
|
|
|
|
|
|
|
Bank-owned life insurance
|
|
63,971
|
|
|
|
|
|
|
|
60,880
|
|
|
|
|
|
|
|
59,750
|
|
|
|
|
|
|
Other noninterest-earning assets
|
|
123,626
|
|
|
|
|
|
|
|
107,961
|
|
|
|
|
|
|
|
94,213
|
|
|
|
|
|
|
Total assets
|
$
|
4,070,896
|
|
|
|
|
|
|
$
|
3,796,166
|
|
|
|
|
|
|
$
|
3,583,832
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
|
$
|
329,227
|
|
$
|
405
|
|
0.12
|
%
|
$
|
264,790
|
|
|
435
|
|
0.16
|
%
|
$
|
230,738
|
|
|
648
|
|
0.28
|
%
|
Money market
|
|
724,263
|
|
|
2,897
|
|
0.40
|
|
|
625,470
|
|
|
4,301
|
|
0.69
|
|
|
430,437
|
|
|
4,857
|
|
1.13
|
|
Savings
|
|
355,743
|
|
|
1,465
|
|
0.41
|
|
|
240,871
|
|
|
494
|
|
0.21
|
|
|
221,913
|
|
|
521
|
|
0.23
|
|
Customer time deposits
|
|
765,620
|
|
|
13,548
|
|
1.77
|
|
|
761,010
|
|
|
16,070
|
|
2.11
|
|
|
739,820
|
|
|
21,634
|
|
2.92
|
|
Total interest-bearing customer deposits
|
|
2,174,853
|
|
|
18,315
|
|
0.84
|
|
|
1,892,141
|
|
|
21,300
|
|
1.13
|
|
|
1,622,908
|
|
|
27,660
|
|
1.70
|
|
Brokered certificates of deposit
|
|
201,618
|
|
|
816
|
|
0.40
|
|
|
304,397
|
|
|
1,797
|
|
0.59
|
|
|
337,394
|
|
|
2,729
|
|
0.81
|
|
Total interest-bearing deposits
|
|
2,376,471
|
|
|
19,131
|
|
0.81
|
|
|
2,196,538
|
|
|
23,097
|
|
1.05
|
|
|
1,960,302
|
|
|
30,389
|
|
1.55
|
|
FHLB of Pittsburgh advances
|
|
561,117
|
|
|
9,972
|
|
1.75
|
|
|
544,317
|
|
|
14,752
|
|
2.67
|
|
|
642,496
|
|
|
18,306
|
|
2.81
|
|
Trust preferred borrowings
|
|
67,011
|
|
|
1,375
|
|
2.02
|
|
|
67,011
|
|
|
1,390
|
|
2.05
|
|
|
67,011
|
|
|
1,797
|
|
2.64
|
|
Other borrowed funds
|
|
150,116
|
|
|
2,127
|
|
1.42
|
|
|
185,756
|
|
|
2,493
|
|
1.34
|
|
|
206,635
|
|
|
2,594
|
|
1.26
|
|
Total interest-bearing liabilities
|
|
3,154,715
|
|
|
32,605
|
|
1.03
|
|
|
2,993,622
|
|
|
41,732
|
|
1.39
|
|
|
2,876,444
|
|
|
53,086
|
|
1.85
|
|
Noninterest-bearing demand deposits
|
|
508,613
|
|
|
|
|
|
|
|
439,155
|
|
|
|
|
|
|
|
392,069
|
|
|
|
|
|
|
Other noninterest-bearing liabilities
|
|
27,150
|
|
|
|
|
|
|
|
27,829
|
|
|
|
|
|
|
|
33,488
|
|
|
|
|
|
|
Stockholders’ equity
|
|
380,418
|
|
|
|
|
|
|
|
335,560
|
|
|
|
|
|
|
|
281,831
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity
|
$
|
4,070,896
|
|
|
|
|
|
|
$
|
3,796,166
|
|
|
|
|
|
|
$
|
3,583,832
|
|
|
|
|
|
|
Excess of interest-earning assets
|
$
|
372,877
|
|
|
|
|
|
|
$
|
372,075
|
|
|
|
|
|
|
$
|
331,848
|
|
|
|
|
|
|
over interest-bearing liabilities
|
||||||||||||||||||||||||
Net interest and dividend income
|
|
|
|
$
|
126,037
|
|
|
|
|
|
|
$
|
120,671
|
|
|
|
|
|
|
$
|
104,644
|
|
|
|
Interest rate spread
|
|
|
|
|
|
|
3.49
|
%
|
|
|
|
|
|
|
3.47
|
%
|
|
|
|
|
|
|
3.10
|
%
|
Net interest margin
|
|
|
|
|
|
|
3.60
|
%
|
|
|
|
|
|
|
3.62
|
%
|
|
|
|
|
|
|
3.30
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Weighted average yields have been computed on a tax-equivalent basis using a 35% effective tax rate.
|
(2) Nonperforming loans are included in average balance computations.
|
(3) Balances are reflected net of unearned income.
|
(4) Includes securities available-for-sale at fair value.
|
(5) Includes reverse mortgages.
|
|
|
|
Year Ended December 31,
|
|||||||
|
|
|
2011
|
|
2010
|
|
2009
|
|||
|
|
|
(Dollars In Millions)
|
|||||||
|
Beginning balance
|
|
$
|
2,562
|
|
$
|
2,215
|
|
$
|
1,811
|
|
Interest credited
|
|
|
19
|
|
|
20
|
|
|
28
|
|
Deposit inflows, net
|
|
|
266
|
|
|
327
|
|
|
376
|
|
Ending balance
|
|
$
|
2,847
|
|
$
|
2,562
|
|
$
|
2,215
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less than
|
|
One to
|
|
Over
|
|
Total
|
|
||||
One Year
|
Five Years
|
Five Years
|
|||||||||||
(Dollars in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-rate sensitive assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans (2)
|
$
|
1,173,700
|
|
$
|
161,430
|
|
$
|
54,589
|
|
$
|
1,389,719
|
|
|
Real estate loans (1) (2)
|
|
719,332
|
|
|
203,602
|
|
|
84,178
|
|
|
1,007,112
|
|
|
Mortgage-backed securities
|
|
261,270
|
|
|
432,233
|
|
|
135,722
|
|
|
829,225
|
|
|
Consumer loans (2)
|
|
215,853
|
|
|
46,628
|
|
|
28,498
|
|
|
290,979
|
|
|
Investment securities
|
|
9,562
|
|
|
30,898
|
|
|
37,875
|
|
|
78,335
|
|
|
Loans held-for-sale (2)
|
|
10,235
|
|
|
-
|
|
|
-
|
|
|
10,235
|
|
|
|
|
|
2,389,952
|
|
|
874,791
|
|
|
340,862
|
|
|
3,605,605
|
|
Interest-rate sensitive liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Money market and interest-bearing demand deposits
|
|
860,413
|
|
|
-
|
|
|
334,652
|
|
|
1,195,065
|
|
|
Retail certificates of deposits
|
|
198,466
|
|
|
119,241
|
|
|
892
|
|
|
318,599
|
|
|
FHLB advances
|
|
327,553
|
|
|
211,129
|
|
|
-
|
|
|
538,682
|
|
|
Savings deposits
|
|
184,417
|
|
|
-
|
|
|
183,973
|
|
|
368,390
|
|
|
Brokered certificates of deposit
|
|
287,429
|
|
|
381
|
|
|
-
|
|
|
287,810
|
|
|
Other borrowed funds
|
|
92,925
|
|
|
25,002
|
|
|
-
|
|
|
117,927
|
|
|
Jumbo certificates of deposit
|
|
254,583
|
|
|
91,985
|
|
|
-
|
|
|
346,568
|
|
|
IRA certificates of deposit
|
|
|
51,241
|
|
|
36,943
|
|
|
5,244
|
|
|
93,428
|
|
Trust preferred borrowings
|
|
67,011
|
|
|
-
|
|
|
-
|
|
|
67,011
|
|
|
Total Interest Sensitive Liabilities
|
|
|
2,324,038
|
|
|
484,681
|
|
|
524,761
|
|
|
3,333,480
|
|
(Deficiency) excess of interest-rate sensitive assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
over interest-rate liabilities (“interest-rate sensitive gap”)
|
$
|
65,914
|
|
$
|
390,110
|
|
$
|
(183,899)
|
|
$
|
272,125
|
|
|
One-year interest-rate sensitive assets/
|
|
102.84
|
%
|
|
|
|
|
|
|
|
|
|
|
Interest-rate sensitive liabilities
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-year interest-rate sensitive gap as a
|
|
1.54
|
%
|
|
|
|
|
|
|
|
|
|
|
Percent of total assets
|
(1)
|
Includes commercial mortgage, construction, and residential mortgage loans
|
(2)
|
Loan balances exclude nonaccruing loans, deferred fees and costs
|
A
t December 31,
|
2011
|
2010
|
2009
|
2008
|
2007
|
|||||||||||||||
(Dollars in Thousands)
|
|
|
|
|
|
|||||||||||||||
Nonaccruing loans:
|
|
|
|
|
|
|||||||||||||||
Commercial mortgages
|
$ | 15,814 | $ | 9,490 | $ | 1,021 | $ | 5,748 | $ | 3,873 | ||||||||||
Construction
|
22,124 | 30,260 | 44,680 | 16,595 | 6,794 | |||||||||||||||
Commercial
|
23,080 | 21,577 | 9,463 | 986 | 17,187 | |||||||||||||||
Residential mortgages
|
9,057 | 11,739 | 9,959 | 4,753 | 2,417 | |||||||||||||||
Consumer
|
1,018 | 3,701 | 818 | 352 | 835 | |||||||||||||||
Total nonaccruing loans
|
71,093 | 76,767 | 65,941 | 28,434 | 31,106 | |||||||||||||||
Assets acquired through foreclosure
|
11,695 | 9,024 | 8,945 | 4,471 | 703 | |||||||||||||||
Restructured loans (1)
|
8,887 | 7,107 | 7,274 | 2,855 | — | |||||||||||||||
Total nonperforming assets
|
$ | 91,675 | $ | 92,898 | $ | 82,160 | $ | 35,760 | $ | 31,809 | ||||||||||
|
||||||||||||||||||||
Past due loans:
|
||||||||||||||||||||
Residential mortgages
|
$ | 887 | $ | 465 | $ | 1,221 | $ | 1,313 | $ | 388 | ||||||||||
Commercial and commercial mortgages
|
78 | — | 105 | — | 14 | |||||||||||||||
Consumer
|
— | — | 97 | 26 | 173 | |||||||||||||||
Total past due loans
|
$ | 965 | $ | 465 | $ | 1,423 | $ | 1,339 | $ | 575 | ||||||||||
|
||||||||||||||||||||
Ratio of nonaccruing loans to total loans (2)
|
2.58 | % | 2.93 | % | 2.61 | % | 1.15 | % | 1.38 | % | ||||||||||
Ratio of allowance for loan losses to gross loans (2)
|
1.92 | 2.30 | 2.12 | 1.26 | 1.12 | |||||||||||||||
Ratio of nonperforming assets to total assets
|
2.14 | 2.35 | 2.19 | 1.04 | 0.99 | |||||||||||||||
Ratio of loan loss allowance to nonaccruing loans
|
74.66 | 78.60 | 81.05 | 109.69 | 83.55 |
(1)
|
Accruing Loans; Nonaccruing TDRs are included in their respective categories of nonaccruing loans.
|
(2)
|
Total loans exclude loans held-for-sale.
|
Year Ended December 31,
|
2011
|
2010
|
2009
|
|||||||||
(In Thousands)
|
|
|
|
|||||||||
Beginning balance
|
$ | 92,898 | $ | 82,160 | $ | 35,760 | ||||||
Additions
|
89,842 | 89,876 | 100,925 | |||||||||
Collections
|
(40,695 | ) | (38,459 | ) | (19,133 | ) | ||||||
Transfers to accrual
|
(8,474 | ) | (1,077 | ) | (6,236 | ) | ||||||
Charge-offs/write-downs
|
(41,896 | ) | (39,602 | ) | (29,156 | ) | ||||||
Ending balance
|
$ | 91,675 | $ | 92,898 | $ | 82,160 |
·
|
General economic and business conditions affecting our key lending areas
|
·
|
Credit quality trends
|
·
|
Recent loss experience in particular segments of the portfolio
|
·
|
Collateral values and loan-to-value ratios
|
·
|
Loan volumes and concentrations, including changes in mix
|
·
|
Seasoning of the loan portfolio
|
·
|
Specific industry conditions within portfolio segments
|
·
|
Bank regulatory examination results
|
·
|
Other factors, including changes in quality of the loan origination, servicing and risk management processes
|
Year Ended December 31,
|
|
2011
|
|
|
2010
|
|
|
2009
|
|
|
2008
|
|
|
2007
|
(Dollars in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance
|
$
|
60,339
|
|
$
|
53,446
|
|
$
|
31,189
|
|
$
|
25,252
|
|
$
|
27,384
|
Provision for loan losses
|
|
27,996
|
|
|
41,883
|
|
|
47,811
|
|
|
23,024
|
|
|
5,021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-offs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Mortgage
|
|
7,446
|
|
|
3,902
|
|
|
1,453
|
|
|
1,421
|
|
|
—
|
Construction
|
|
11,602
|
|
|
14,972
|
|
|
14,479
|
|
|
10,774
|
|
|
1,398
|
Commercial
|
|
9,419
|
|
|
9,458
|
|
|
5,796
|
|
|
1,992
|
|
|
4,379
|
Residential real estate
|
|
3,165
|
|
|
2,241
|
|
|
1,164
|
|
|
628
|
|
|
41
|
Overdrafts
|
|
869
|
|
|
1,019
|
|
|
1,216
|
|
|
1,327
|
|
|
1,441
|
Consumer
|
|
5,332
|
|
|
5,974
|
|
|
2,458
|
|
|
1,697
|
|
|
790
|
Total charge-offs
|
|
37,833
|
|
|
37,566
|
|
|
26,566
|
|
|
17,839
|
|
|
8,049
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Mortgage
|
|
334
|
|
|
126
|
|
|
4
|
|
|
—
|
|
|
117
|
Construction
|
|
582
|
|
|
1,495
|
|
|
375
|
|
|
12
|
|
|
10
|
Commercial (1)
|
|
897
|
|
|
375
|
|
|
150
|
|
|
100
|
|
|
173
|
Residential real estate
|
|
211
|
|
|
26
|
|
|
38
|
|
|
7
|
|
|
11
|
Overdrafts
|
|
348
|
|
|
375
|
|
|
380
|
|
|
384
|
|
|
446
|
Consumer
|
|
206
|
|
|
179
|
|
|
65
|
|
|
249
|
|
|
139
|
Total recoveries
|
|
2,578
|
|
|
2,576
|
|
|
1,012
|
|
|
752
|
|
|
896
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs
|
|
35,255
|
|
|
34,990
|
|
|
25,554
|
|
|
17,087
|
|
|
7,153
|
Ending balance
|
$
|
53,080
|
|
$
|
60,339
|
|
$
|
53,446
|
|
$
|
31,189
|
|
$
|
25,252
|
Net charge-offs to average gross loans outstanding, net of unearned income
|
|
1.32%
|
|
|
1.39%
|
|
|
1.01%
|
|
|
0.74%
|
|
|
0.34%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Commercial recoveries for the year ended December 2011 include a one-time adjustment for the reclassification of an unfunded commitment reserve previously included in the allowance for loan loss to a liability reserve account.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31,
|
|
|||||||||||||||||||||||||||||||
|
|
2011
|
|
2010
|
|
2009
|
|
2008
|
|
2007
|
||||||||||||||||||||||||
|
|
Amount
|
|
Percent
|
|
|
Amount
|
|
Percent
|
|
|
Amount
|
|
Percent
|
|
|
Amount
|
|
Percent
|
|
|
Amount
|
|
Percent
|
||||||||||
(Dollars in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Commercial mortgage
|
$
|
7,556
|
|
22.6
|
%
|
|
|
$
|
10,564
|
|
23.8
|
%
|
|
|
$
|
6,160
|
|
20.7
|
%
|
|
|
$
|
7,353
|
|
22.6
|
%
|
|
|
|
7,655
|
|
20.6
|
%
|
|
Construction
|
|
4,074
|
|
3.8
|
%
|
|
|
|
10,019
|
|
5.4
|
%
|
|
|
|
10,922
|
|
9.2
|
%
|
|
|
|
3,303
|
|
10.2
|
%
|
|
|
|
4,496
|
|
12.3
|
%
|
|
Commercial
|
|
24,302
|
|
53.0
|
%
|
|
|
|
26,556
|
|
47.2
|
%
|
|
|
|
24,834
|
|
44.4
|
%
|
|
|
|
12,510
|
|
38.1
|
%
|
|
|
|
8,088
|
|
35.0
|
%
|
|
Residential real estate
|
|
6,544
|
|
10.0
|
%
|
|
|
|
3,952
|
|
11.8
|
%
|
|
|
|
4,073
|
|
13.8
|
%
|
|
|
|
2,480
|
|
17.1
|
%
|
|
|
$
|
1,304
|
|
19.8
|
%
|
|
Consumer
|
|
10,604
|
|
10.6
|
%
|
|
|
|
9,248
|
|
11.8
|
%
|
|
|
|
7,457
|
|
11.9
|
%
|
|
|
|
5,543
|
|
12.0
|
%
|
|
|
|
3,709
|
|
12.3
|
%
|
|
Total
|
$
|
53,080
|
|
100.0
|
%
|
|
|
$
|
60,339
|
|
100.0
|
%
|
|
|
$
|
53,446
|
|
100.0
|
%
|
|
|
$
|
31,189
|
|
100.0
|
%
|
|
|
$
|
25,252
|
|
100.0
|
%
|
·
|
Deposit growth
|
·
|
Brokered deposits
|
·
|
Borrowing from the FHLB
|
·
|
Federal Reserve Discount Window access
|
·
|
Other borrowings such as repurchase agreements
|
·
|
Cash flow from securities, loan sales and repayments
|
·
|
Net income
|
|
|
Total
|
|
Less than
|
|
|
One to
|
|
Three to Five Years
|
|
Over
|
||||
One Year
|
|
Three Years
|
5 Years
|
||||||||||||
(In Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating lease obligations
|
|
$
|
191,610
|
|
$
|
7,551
|
|
$
|
14,652
|
|
$
|
13,955
|
|
$
|
155,452
|
Long-term debt obligations
|
|
|
538,682
|
|
|
320,539
|
|
|
218,143
|
|
|
—
|
|
|
—
|
Data processing contracts
|
|
|
7,648
|
|
|
2,769
|
|
|
4,230
|
|
|
649
|
|
|
—
|
Credit obligations
|
|
|
686,609
|
|
|
686,609
|
|
|
—
|
|
|
—
|
|
|
—
|
Total
|
|
$
|
1,424,549
|
|
$
|
1,017,468
|
|
$
|
237,025
|
|
$
|
14,604
|
|
$
|
155,452
|
·
|
On August 10, 2010 the Board of Directors of the FDIC adopted a final ruling permanently increasing the standard maximum deposit insurance amount from $100,000 to $250,000, which became effective on July 22, 2010.
|
·
|
During January of 2011, a timeframe and preliminary implementation plan for the phase out of the Office of Thrift Supervision (“the OTS”), one of our current banking regulators was announced by the joint agencies, and its merger into the Office of the Comptroller of the Currency. The provisions of the plan include a transition from the Thrift Financial Report, which we file each quarter, to the Call Report, expected to begin with the March 2012 reporting period.
|
·
|
On February 7, 2011, the Federal Reserve approved a final ruling the changes the Deposit Insurance Fund (“DIF”) assessment from domestic deposits to average assets minus tangible equity. The changes went into effect during the second quarter of 2011 and were payable at the end of September. It is the intent of the FDIC that banks with over $10 billion in assets pay a larger share of the assessments into the DIF.
|
·
|
In June 2011, the Federal Reserve adopted the “Durbin Amendment” in which debit interchange fees would be capped at 21 cents plus 5 basis points of the transaction, with the possibility of an additional cent if the issuer implements certain fraud-prevention standards. This rule affects banks with $10 billion or more in assets.
|
·
|
On July 21, 2011, the Federal Reserve repealed Federal prohibitions on the payment of interest on demand deposits.
|
·
|
On July 21, 2011, the Consumer Financial Protection Bureau (“CFPB”) was created to centralize responsibility for consumer financial protection. The bureau has been given the responsibility for implementing, examining and enforcing compliance with Federal consumer protection laws.
|
At December 31,
|
2011
|
|
2010
|
||||||||
Change in
|
|
% Change in
|
|
|
|
% Change in
|
|
|
|||
Interest Rate
|
Net Interest
|
Economic Value
|
Net Interest
|
Economic Value
|
|||||||
(Basis Points)
|
Margin (1)
|
of Equity (2)
|
Margin (1)
|
of Equity (2)
|
|||||||
300
|
|
|
6
|
%
|
11.17
|
%
|
|
7
|
%
|
9.35
|
%
|
200
|
|
|
3
|
%
|
11.30
|
%
|
|
5
|
%
|
9.78
|
%
|
100
|
|
|
-2
|
%
|
11.21
|
%
|
|
3
|
%
|
9.93
|
%
|
-
|
|
|
-
|
%
|
10.97
|
%
|
|
-
|
%
|
9.94
|
%
|
-100
|
|
|
1
|
%
|
10.19
|
%
|
|
-10
|
%
|
9.48
|
%
|
-200
|
(3)
|
|
NMF
|
NMF
|
|
NM
|
F
|
NMF
|
|||
-300
|
(3)
|
|
NMF
|
NMF
|
|
NM
|
F
|
NMF
|
(1)
|
The percentage difference between net interest margin in a stable interest rate environment and net interest margin as projected under the various rate change environments.
|
(2)
|
The economic value of equity ratio in a stable interest rate environment and the economic value of equity projected under the various rate change environments.
|
(3)
|
Sensitivity indicated by a decrease of 200 and 300 basis points is deemed not meaningful (NMF) given the low absolute level of interest rates at that time.
|
Year Ended December 31,
|
|
2011
|
|
2010
|
|
2009
|
|
|||
(Dollars in Thousands, Except Per Share Data)
|
|
|
|
|
|
|
|
|
|
|
Interest Income
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans
|
|
$
|
130,922
|
|
$
|
126,347
|
|
$
|
128,248
|
|
Interest on mortgage-backed securities
|
|
|
27,158
|
|
|
35,212
|
|
|
28,560
|
|
Interest and dividends on investment securities
|
|
|
683
|
|
|
1,125
|
|
|
1,386
|
|
Interest on reverse mortgages
|
|
|
(137)
|
|
|
(287)
|
|
|
(464)
|
|
Other interest income
|
|
|
16
|
|
|
6
|
|
|
-
|
|
|
|
|
158,642
|
|
|
162,403
|
|
|
157,730
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Expense
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits
|
|
|
19,131
|
|
|
23,097
|
|
|
30,389
|
|
Interest on Federal Home Loan Bank advances
|
|
|
9,972
|
|
|
14,752
|
|
|
18,306
|
|
Interest on federal funds purchased and securities
|
|
|
|
|
|
|
|
|
|
|
sold under agreements to repurchase
|
1,197
|
1,514
|
1,531
|
|||||||
Interest on trust preferred borrowings
|
|
|
1,375
|
|
|
1,390
|
|
|
1,797
|
|
Interest on other borrowings
|
|
|
930
|
|
|
979
|
|
|
1,063
|
|
|
|
|
32,605
|
|
|
41,732
|
|
|
53,086
|
|
Net interest income
|
|
|
126,037
|
|
|
120,671
|
|
|
104,644
|
|
Provision for loan losses
|
|
|
27,996
|
|
|
41,883
|
|
|
47,811
|
|
Net interest income after provision for loan losses
|
|
|
98,041
|
|
|
78,788
|
|
|
56,833
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest Income
|
|
|
|
|
|
|
|
|
|
|
Credit/debit card and ATM income
|
|
|
21,026
|
|
|
18,947
|
|
|
16,522
|
|
Deposit service charges
|
|
|
16,371
|
|
|
16,239
|
|
|
16,881
|
|
Fiduciary investment management income
|
|
|
11,881
|
|
|
4,761
|
|
|
3,540
|
|
Securities gains, net
|
|
|
4,878
|
|
|
1,031
|
|
|
3,423
|
|
Loan fee income
|
|
|
2,460
|
|
|
3,042
|
|
|
4,857
|
|
Bank-owned life insurance income
|
|
|
2,035
|
|
|
732
|
|
|
917
|
|
Mortgage banking activities, net
|
|
|
1,524
|
|
|
2,256
|
|
|
1,646
|
|
Other income
|
|
|
3,413
|
|
|
3,107
|
|
|
2,455
|
|
|
|
|
63,588
|
|
|
50,115
|
|
|
50,241
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest Expense
|
|
|
|
|
|
|
|
|
|
|
Salaries, benefits and other compensation
|
|
|
59,823
|
|
|
49,790
|
|
|
48,133
|
|
Occupancy expense
|
|
|
12,054
|
|
|
9,748
|
|
|
9,664
|
|
Loan workout and OREO expense
|
|
|
8,896
|
|
|
6,544
|
|
|
5,920
|
|
Equipment expense
|
|
|
6,915
|
|
|
6,422
|
|
|
6,803
|
|
FDIC expenses
|
|
|
5,949
|
|
|
7,016
|
|
|
7,064
|
|
Professional fees
|
|
|
5,829
|
|
|
5,460
|
|
|
5,892
|
|
Data processing and operations expense
|
|
|
5,340
|
|
|
4,588
|
|
|
4,743
|
|
Marketing expense
|
|
|
4,302
|
|
|
3,193
|
|
|
3,304
|
|
Acquisition costs
|
|
|
780
|
|
|
1,677
|
|
|
-
|
|
Other operating expense
|
|
|
17,589
|
|
|
14,894
|
|
|
16,981
|
|
|
|
|
127,477
|
|
|
109,332
|
|
|
108,504
|
|
Income (loss) before taxes
|
|
|
34,152
|
|
|
19,571
|
|
|
(1,430)
|
|
Income tax provision (benefit)
|
|
|
11,475
|
|
|
5,454
|
|
|
(2,093)
|
|
Net income
|
|
|
22,677
|
|
|
14,117
|
|
|
663
|
|
Dividends on preferred stock and accretion of discount
|
|
|
2,770
|
|
|
2,770
|
|
|
2,590
|
|
Net income (loss) allocable to common stockholders
|
|
$
|
19,907
|
|
$
|
11,347
|
|
$
|
(1,927)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$
|
2.31 | $ | 1.48 | $ | (0.30) | ||||
Diluted
|
|
$
|
2.28
|
|
$
|
1.46
|
|
$
|
(0.30)
|
|
Year Ended December 31,
|
2011
|
|
2010
|
|
||||||
(Dollars in Thousands, Except Per Share Data)
|
|
|
|
|
|
|
||||
Assets
|
|
|
|
|
|
|
||||
Cash and due from banks
|
$
|
70,889
|
|
$
|
49,932
|
|
||||
Cash in non-owned ATMs
|
|
397,119
|
|
|
326,573
|
|
||||
Interest-bearing deposits in other banks
|
|
9
|
|
|
254
|
|
||||
Total cash and cash equivalents
|
|
468,017
|
|
|
376,759
|
|
||||
Investment securities held-to-maturity (fair value: 2011=$0; 2010=$196)
|
|
-
|
|
|
219
|
|
||||
Investment securities available-for-sale including reverse mortgages
|
|
42,569
|
|
|
52,232
|
|
||||
Mortgage-backed securities, available-for-sale
|
|
816,793
|
|
|
700,926
|
|
||||
Mortgage-backed securities, trading
|
|
12,432
|
|
|
12,432
|
|
||||
Loans held-for-sale
|
|
10,185
|
|
|
14,522
|
|
||||
Loans, net of allowance for loan losses of $53,080 at December 31, 2011
|
|
2,702,589
|
|
|
2,561,368
|
|
||||
and $60,339 at December 31, 2010
|
||||||||||
Bank-owned life insurance
|
|
63,392
|
|
|
64,243
|
|
||||
Stock in Federal Home Loan Bank of Pittsburgh, at cost
|
|
35,756
|
|
|
37,536
|
|
||||
Assets acquired through foreclosure
|
|
11,695
|
|
|
9,024
|
|
||||
Accrued interest receivable
|
|
11,743
|
|
|
11,765
|
|
||||
Premises and equipment
|
|
35,964
|
|
|
31,870
|
|
||||
Goodwill
|
|
28,146
|
|
|
26,745
|
|
||||
Intangible assets
|
|
6,139
|
|
|
7,307
|
|
||||
Other assets
|
|
43,588
|
|
|
46,570
|
|
||||
Total assets
|
$
|
4,289,008
|
|
$
|
3,953,518
|
|
||||
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
||||
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
||||
Liabilities:
|
|
|
|
|
|
|
||||
Deposits:
|
|
|
|
|
|
|
||||
Noninterest-bearing demand
|
$
|
525,444
|
|
$
|
468,098
|
|
||||
Interest-bearing demand
|
|
389,495
|
|
|
312,546
|
|
||||
Money market
|
|
805,570
|
|
|
743,808
|
|
||||
Savings
|
|
368,390
|
|
|
255,340
|
|
||||
Time
|
|
412,027
|
|
|
484,864
|
|
||||
Jumbo certificates of deposit
|
|
346,568
|
|
|
297,112
|
|
||||
Total customer deposits
|
|
2,847,494
|
|
|
2,561,768
|
|
||||
Brokered deposits
|
|
287,810
|
|
|
249,006
|
|
||||
Total deposits
|
|
3,135,304
|
|
|
2,810,774
|
|
||||
|
|
|
|
|
|
|
||||
Federal funds purchased and securities sold under agreements to repurchase
|
|
50,000
|
|
|
100,000
|
|
||||
Federal Home Loan Bank advances
|
|
538,682
|
|
|
488,959
|
|
||||
Trust preferred borrowings
|
|
67,011
|
|
|
67,011
|
|
||||
Other borrowed funds
|
|
67,927
|
|
|
91,636
|
|
||||
Accrued interest payable
|
|
1,910
|
|
|
3,317
|
|
||||
Other liabilities
|
|
36,041
|
|
|
23,999
|
|
||||
Total liabilities
|
|
3,896,875
|
|
|
3,585,696
|
|
||||
|
|
|
|
|
|
|
||||
Stockholders’ Equity:
|
|
|
|
|
|
|
||||
Serial preferred stock $.01 par value, 7,500,000 shares authorized;
|
|
|
|
|
|
|
||||
issued 52,625 at December 31, 2011 and December 31, 2010
|
1
|
1
|
||||||||
Common stock $.01 par value, 20,000,000 shares authorized; issued 18,258,714
|
|
|
|
|
|
|
||||
at December 31, 2011 and 18,105,788 at December 31, 2010
|
182
|
180
|
||||||||
Capital in excess of par value
|
|
220,163
|
|
|
216,316
|
|
||||
Accumulated other comprehensive income
|
|
11,202
|
|
|
6,524
|
|
||||
Retained earnings
|
|
408,865
|
|
|
393,081
|
|
||||
Treasury stock at cost, 9,580,569 shares at December 31, 2011
|
|
|
|
|
|
|
||||
and December 31, 2010
|
(248,280)
|
(248,280)
|
||||||||
Total stockholders’ equity
|
|
392,133
|
|
|
367,822
|
|
||||
Total liabilities and stockholders’ equity
|
$
|
4,289,008
|
|
$
|
3,953,518
|
|
||||
|
|
|
|
|
|
|
||||
The accompanying notes are an integral part of these Consolidated Financial Statements.
|
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY
|
||||||||||||||||||||||||||||
Accumulated
|
||||||||||||||||||||||||||||
Capital in
|
Other
|
Total
|
||||||||||||||||||||||||||
Preferred
|
Common
|
Excess of
|
Comprehensive
|
Retained
|
Treasury
|
Stockholders’
|
||||||||||||||||||||||
Stock
|
Stock
|
Par Value
|
(Loss) Income
|
Earnings
|
Stock
|
Equity
|
||||||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||||||
Balance, December 31, 2008
|
$ | — | $ | 157 | $ | 87,033 | $ | (12,613 | ) | $ | 390,338 | $ | (248,280 | ) | $ | 216,635 | ||||||||||||
Comprehensive income:
|
||||||||||||||||||||||||||||
Net income
|
— | — | — | — | 663 | — | 663 | |||||||||||||||||||||
Other comprehensive
income (1) |
— | — | — | 10,591 | — | — | 10,591 | |||||||||||||||||||||
Total comprehensive income
|
— | — | — | — | — | — | 11,254 | |||||||||||||||||||||
Cash dividend, $0.48 per share
|
— | — | — | — | (3,078 | ) | — | (3,078 | ) | |||||||||||||||||||
Issuance of common stock,
|
— | 9 | 25,109 | — | — | — | 25,118 | |||||||||||||||||||||
including proceeds from
|
||||||||||||||||||||||||||||
exercise of common stock
options |
||||||||||||||||||||||||||||
Issuance of restricted stock
|
— | — | 174 | — | — | — | 174 | |||||||||||||||||||||
Reclassification adjustment of
negative minority interest |
— | — | — | — | (352 | ) | — | (352 | ) | |||||||||||||||||||
Tax benefit from exercises of
|
— | — | 80 | — | — | — | 80 | |||||||||||||||||||||
common stock options
|
||||||||||||||||||||||||||||
Preferred stock cash dividends
|
— | — | — | — | (2,136 | ) | — | (2,136 | ) | |||||||||||||||||||
Preferred stock discount
accretion |
— | — | 127 | — | (127 | ) | — | — | ||||||||||||||||||||
Preferred stock and common
stock warrants |
1 | — | 54,104 | — | — | — | 54,105 | |||||||||||||||||||||
Balance, December 31, 2009
|
$ | 1 | $ | 166 | $ | 166,627 | $ | (2,022 | ) | $ | 385,308 | $ | (248,280 | ) | $ | 301,800 | ||||||||||||
Comprehensive income:
|
||||||||||||||||||||||||||||
Net income
|
— | — | — | — | 14,117 | — | 14,117 | |||||||||||||||||||||
Other comprehensive income (1)
|
— | — | — | 8,546 | — | — | 8,546 | |||||||||||||||||||||
Total comprehensive income
|
— | — | — | — | — | 22,663 | ||||||||||||||||||||||
Cash dividend, $0.48 per share
|
— | — | — | — | (3,575 | ) | — | (3,575 | ) | |||||||||||||||||||
Issuance of common stock,
|
— | 14 | 49,018 | — | — | — | 49,032 | |||||||||||||||||||||
including proceeds from
|
||||||||||||||||||||||||||||
exercise of common stock
options |
||||||||||||||||||||||||||||
Issuance of restricted stock
|
— | — | 192 | — | — | — | 192 | |||||||||||||||||||||
Tax benefit from exercises of
|
— | — | 341 | — | — | — | 341 | |||||||||||||||||||||
common stock options
|
||||||||||||||||||||||||||||
Preferred stock cash dividends
|
— | — | — | — | (2,631 | ) | — | (2,631 | ) | |||||||||||||||||||
Preferred stock discount
accretion
|
— | — | 138 | — | (138 | ) | — | — | ||||||||||||||||||||
Balance, December 31, 2010
|
$ | 1 | $ | 180 | $ | 216,316 | $ | 6,524 | $ | 393,081 | $ | (248,280 | ) | $ | 367,822 | |||||||||||||
Comprehensive income:
|
||||||||||||||||||||||||||||
Net income
|
— | — | — | — | 22,677 | — | 22,677 | |||||||||||||||||||||
Other comprehensive income (1)
|
— | — | — | 4,678 | — | — | 4,678 | |||||||||||||||||||||
Total comprehensive income
|
— | — | — | — | — | — | 27,355 | |||||||||||||||||||||
Cash dividend, $0.48 per share
|
— | — | — | — | (4,126 | ) | — | (4,126 | ) | |||||||||||||||||||
Issuance of common stock
|
— | 2 | 2,465 | — | — | — | 2,467 | |||||||||||||||||||||
including proceeds from
|
||||||||||||||||||||||||||||
exercise of common stock
options |
||||||||||||||||||||||||||||
Issuance of restricted stock
|
— | — | 470 | — | — | — | 470 | |||||||||||||||||||||
Tax benefit from exercises of
|
— | — | 776 | — | — | — | 776 | |||||||||||||||||||||
common stock options
|
||||||||||||||||||||||||||||
Preferred stock cash dividends
|
— | — | — | — | (2,631 | ) | — | (2,631 | ) | |||||||||||||||||||
Preferred stock discount
accretion
|
— | — | 136 | — | (136 | ) | — | — | ||||||||||||||||||||
Balance, December 31, 2011
|
$ | 1 | $ | 182 | $ | 220,163 | $ | 11,202 | $ | 408,865 | $ | (248,280 | ) | $ | 392,133 |
(1) Other Comprehensive Income (Loss):
|
2011
|
2010
|
2009
|
|||||||||
Net unrealized holding gains (losses) on securities available-for-sale arising during the
|
$ | 7,702 | $ | 9,344 | $ | 11,845 | ||||||
period, net of taxes (2011 - $4,672; 2010 - $5,727; 2009 - $6,491);
|
||||||||||||
Actuarial loss reclassified to periodic cost, net of income taxes (2010 - (295));
|
— | (54 | ) | — | ||||||||
Transition obligation reclassified to periodic cost, net of income tax benefit (2010 - $23);
|
— | 38 | — | |||||||||
Reclassification for gains included in income,
|
(3,024 | ) | (782 | ) | (1,254 | ) | ||||||
net of income tax benefit (2011 - $(1,854); 2010 - $(297); 2009 - $(768));
|
||||||||||||
Total other comprehensive income
|
$ | 4,678 | $ | 8,546 | $ | 10,591 | ||||||
|
||||||||||||
|
Year Ended December 31,
|
2011
|
2010
|
2009
|
|||||||||
(In Thousands)
|
|
|
|
|||||||||
Operating activities:
|
|
|
|
|||||||||
Net income
|
$ | 22,677 | $ | 14,117 | $ | 663 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||
Provision for loan losses
|
27,996 | 41,883 | 47,811 | |||||||||
Depreciation, accretion and amortization
|
11,138 | 6,664 | 6,953 | |||||||||
Decrease (increase) in accrued interest receivable
|
22 | 959 | (798 | ) | ||||||||
(Increase) decrease in other assets
|
(3,076 | ) | 2,996 | (22,035 | ) | |||||||
Origination of loans held-for-sale
|
(97,883 | ) | (138,624 | ) | (90,628 | ) | ||||||
Proceeds from sales of loans held-for-sale
|
104,133 | 134,560 | 86,163 | |||||||||
Gain on mortgage banking activity, net
|
(1,524 | ) | (2,257 | ) | (1,646 | ) | ||||||
Gain on mark to market adjustment on trading securities
|
— | (249 | ) | (1,368 | ) | |||||||
Securities gain from the sale of MasterCard, Inc and Visa, Inc common stock
|
— | — | (119 | ) | ||||||||
Gain on sale of securities, net
|
(4,878 | ) | (782 | ) | (2,022 | ) | ||||||
Stock-based compensation expense
|
1,810 | 796 | 874 | |||||||||
Excess tax benefits from share based payment arrangements
|
(776 | ) | (341 | ) | (80 | ) | ||||||
Decrease in accrued interest payable
|
(1,407 | ) | (1,038 | ) | (2,553 | ) | ||||||
Increase in other liabilities
|
13,152 | 2,150 | 5,741 | |||||||||
Loss on wind down of 1st Reverse
|
— | — | 1,857 | |||||||||
Loss on sale of premises and equipment
|
115 | — | — | |||||||||
Loss on sale of assets acquired through foreclosure and valuation adjustments, net
|
4,049 | 3,766 | 1,905 | |||||||||
Increase in value of bank-owned life insurance
|
(2,035 | ) | (732 | ) | (917 | ) | ||||||
Deferred income tax (benefit) expense
|
2,978 | (2,183 | ) | (8,384 | ) | |||||||
(Increase) decrease in capitalized interest, net
|
(143 | ) | 287 | 464 | ||||||||
Net cash provided by operating activities
|
76,348 | 61,972 | 21,881 | |||||||||
|
||||||||||||
Investing activities:
|
||||||||||||
Maturities and calls of investment securities
|
11,943 | 12,380 | 22,591 | |||||||||
Sales of investment securities available for sale
|
12,128 | — | — | |||||||||
Purchases of investment securities available for sale
|
(14,158 | ) | (19,601 | ) | (19,070 | ) | ||||||
Sales of mortgage-backed securities available for sale
|
323,831 | 154,644 | 111,214 | |||||||||
Repayments of mortgage-backed securities available for sale
|
175,691 | 204,414 | 151,571 | |||||||||
Purchases of mortgage-backed securities available for sale
|
(606,980 | ) | (373,574 | ) | (424,813 | ) | ||||||
Repayments on reverse mortgages
|
264 | 62 | 207 | |||||||||
Disbursements for reverse mortgages
|
(441 | ) | (193 | ) | (202 | ) | ||||||
Sales of loans
|
— | 3,775 | 22,270 | |||||||||
Purchase of Christiana Bank and Trust, net cash received
|
— | 40,332 | — | |||||||||
Net increase in loans
|
(189,701 | ) | (43,062 | ) | (109,261 | ) | ||||||
Payment of bank-owned life insurance
|
2,886 | — | — | |||||||||
Net decrease in stock of Federal Home Loan Bank of Pittsburgh
|
1,780 | 1,965 | — | |||||||||
Sales of assets acquired through foreclosure, net
|
11,611 | 8,887 | 3,274 | |||||||||
Proceeds from the sale of MasterCard, Inc and Visa Inc common stock
|
— | — | 119 | |||||||||
Proceeds from the sale of premises and equipment
|
824 | — | — | |||||||||
Investment in premises and equipment
|
(10,494 | ) | (5,732 | ) | (6,776 | ) | ||||||
Net cash used for investing activities
|
(280,816 | ) | (15,703 | ) | (248,876 | ) | ||||||
(continued on next page)
|
Year Ended December 31,
|
2011
|
2010
|
2009
|
|||||||||
(In Thousands)
|
|
|
|
|||||||||
Financing Activities:
|
|
|
|
|||||||||
Net increase in demand and savings deposits
|
$ | 285,398 | $ | 169,381 | $ | 347,401 | ||||||
Net (decrease) increase in time deposits
|
(23,381 | ) | 20,336 | (7,255 | ) | |||||||
Net increase (decrease) in brokered deposits
|
38,804 | (99,689 | ) | 34,381 | ||||||||
Receipts from federal funds purchased and securities sold
under agreement to repurchase
|
13,350,000 | 18,470,000 | 18,922,995 | |||||||||
Repayments of federal funds purchased and securities sold
under agreement to repurchase
|
(13,400,000 | ) | (18,470,000 | ) | (18,897,995 | ) | ||||||
Receipts from FHLB advances
|
14,046,295 | 25,128,164 | 30,481,564 | |||||||||
Repayments of FHLB advances
|
(13,996,572 | ) | (25,252,349 | ) | (30,684,378 | ) | ||||||
Proceeds from issuance of unsecured bank debt
|
— | — | 30,000 | |||||||||
Dividends paid
|
(6,718 | ) | (6,206 | ) | (5,214 | ) | ||||||
Proceeds from issuance of preferred stock
|
— | — | 52,625 | |||||||||
Issuance of common stock and exercise of common stock options
|
1,124 | 48,763 | 25,982 | |||||||||
Excess tax benefits from share-based payment arrangements
|
776 | 341 | 80 | |||||||||
Net cash provided by financing activities
|
295,726 | 8,741 | 300,186 | |||||||||
Increase in cash and cash equivalents
|
91,258 | 55,010 | 73,191 | |||||||||
Cash and cash equivalents at beginning of year
|
376,759 | 321,749 | 248,558 | |||||||||
Cash and cash equivalents at end of year
|
$ | 468,017 | $ | 376,759 | $ | 321,749 | ||||||
|
||||||||||||
Supplemental Disclosure of Cash Flow Information:
|
||||||||||||
Cash paid in interest during the year
|
$ | 34,012 | $ | 42,655 | $ | 55,640 | ||||||
Cash paid for income taxes, net
|
3,150 | 10,520 | 2,593 | |||||||||
Loans transferred to assets acquired through foreclosure
|
18,331 | 12,732 | 9,143 | |||||||||
Net change in accumulated other comprehensive income
|
4,678 | 8,546 | 10,591 | |||||||||
Fair value of assets acquired, net of cash received
|
— | 121,735 | — | |||||||||
Fair value of liabilities assumed
|
— | 177,942 | — | |||||||||
Settlement of pending sale of premises and equipment
|
— | 6,515 | — | |||||||||
Non-cash goodwill adjustment, net | 1,401 | — | — | |||||||||
|
o
|
Debt securities with the positive intention to hold to maturity are classified as “held-to-maturity” and reported at amortized cost.
|
o
|
Debt and equity securities purchased with the intention of selling them in the near future are classified as “trading securities” and reported at fair value, with unrealized gains and losses included in earnings.
|
o
|
Debt and equity securities not classified in either of the above are classified as “available-for-sale securities” and reported at fair value, with unrealized gains and losses excluded from earnings and reported, net of tax, as a separate component of stockholders’ equity.
|
|
2011
|
2010
|
2009
|
|||||||||
|
(In Thousands, Except Per Share Data)
|
|||||||||||
Numerator:
|
|
|
|
|||||||||
Net income (loss) allocable to common shareholders
|
$ | 19,907 | $ | 11,347 | $ | (1,927 | ) | |||||
|
||||||||||||
Denominator:
|
||||||||||||
Denominator for basic earnings per share - weighted average shares
|
8,606 | 7,655 | 6,429 | |||||||||
Effect of dilutive employee stock options
|
111 | 131 | - | |||||||||
Denominator for diluted earnings per share - adjusted weighted
|
||||||||||||
average shares and assumed exercise
|
8,717 | 7,786 | 6,429 | |||||||||
|
||||||||||||
Earnings per share:
|
||||||||||||
Basic:
|
||||||||||||
Net income (loss) income allocable to common shareholders
|
$ | 2.31 | $ | 1.48 | $ | (0.30 | ) | |||||
|
||||||||||||
Diluted:
|
||||||||||||
Net income (loss) income allocable to common shareholders
|
$ | 2.28 | $ | 1.46 | $ | (0.30 | ) | |||||
|
||||||||||||
Outstanding common stock equivalents having no dilutive effect
|
534 | 602 | 939 | |||||||||
|
|
|
Gross
|
Gross
|
|
||||||||||||
|
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
||||||||||||
|
Cost
|
Gains
|
Losses
|
Value
|
||||||||||||
|
(In Thousands)
|
|||||||||||||||
Available-for-sale securities:
|
|
|
|
|
||||||||||||
|
|
|
|
|
||||||||||||
December 31, 2011:
|
|
|
|
|
||||||||||||
Reverse mortgages
|
$ | (646 | ) | $ | — | $ | — | $ | (646 | ) | ||||||
U.S. Government and government
|
||||||||||||||||
sponsored enterprises ("GSE")
|
38,776 | 262 | (13 | ) | 39,025 | |||||||||||
State and political subdivisions
|
4,159 | 39 | (8 | ) | 4,190 | |||||||||||
|
$ | 42,289 | $ | 301 | $ | (21 | ) | $ | 42,569 | |||||||
|
||||||||||||||||
December 31, 2010:
|
||||||||||||||||
Reverse mortgages
|
$ | (686 | ) | $ | — | $ | — | $ | (686 | ) | ||||||
U.S. Government and GSE
|
49,691 | 441 | (129 | ) | 50,003 | |||||||||||
State and political subdivisions
|
2,879 | 38 | (2 | ) | 2,915 | |||||||||||
|
$ | 51,884 | $ | 479 | $ | (131 | ) | $ | 52,232 | |||||||
|
||||||||||||||||
|
||||||||||||||||
Held-to-maturity:
|
||||||||||||||||
|
||||||||||||||||
December 31, 2011
|
||||||||||||||||
State and political subdivisions
|
$ | — | $ | — | $ | — | $ | — | ||||||||
|
$ | — | $ | — | $ | — | $ | — | ||||||||
|
||||||||||||||||
December 31, 2010
|
||||||||||||||||
State and political subdivisions
|
$ | 219 | $ | — | $ | (23 | ) | $ | 196 | |||||||
|
$ | 219 | $ | — | $ | (23 | ) | $ | 196 |
|
|
Held-to-Maturity
|
|
Available-for Sale
|
||||||||
|
|
Amortized
|
|
Fair
|
|
Amortized
|
|
Fair
|
||||
|
|
Cost
|
|
Value
|
|
Cost
|
|
Value
|
||||
|
|
(In Thousands)
|
||||||||||
2011
|
|
|
|
|
|
|
|
|
||||
Within one year (1)
|
|
$
|
—
|
|
$
|
—
|
|
$
|
7,916
|
|
$
|
7,966
|
After one year but within five years
|
|
|
—
|
|
|
—
|
|
|
32,059
|
|
|
32,297
|
After five years but within ten years
|
|
|
—
|
|
|
—
|
|
|
2,000
|
|
|
2,000
|
After ten years
|
|
|
—
|
|
|
—
|
|
|
314
|
|
|
306
|
|
|
$
|
—
|
|
$
|
—
|
|
$
|
42,289
|
|
$
|
42,569
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
Within one year (1)
|
|
$
|
—
|
|
$
|
—
|
|
$
|
10,549
|
|
$
|
10,617
|
After one year but within five years
|
|
|
—
|
|
|
—
|
|
|
41,006
|
|
|
41,286
|
After five years but within ten years
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
After ten years
|
|
|
219
|
|
|
196
|
|
|
329
|
|
|
329
|
|
|
$
|
219
|
|
$
|
196
|
|
$
|
51,884
|
|
$
|
52,232
|
|
|
Less than 12 months
|
|
12 months or longer
|
|
Total
|
||||||||||||
|
|
Fair
|
|
Unrealized
|
|
Fair
|
|
Unrealized
|
|
Fair
|
|
Unrealized
|
||||||
|
|
Value
|
|
Loss
|
|
Value
|
|
Loss
|
|
Value
|
|
Loss
|
||||||
|
|
(In Thousands)
|
||||||||||||||||
Held-to-maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
State and political subdivisions
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Government and GSE
|
|
|
5,047
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
5,047
|
|
|
13
|
State and political subdivisions
|
|
|
—
|
|
|
—
|
|
|
440
|
|
|
8
|
|
|
440
|
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total temporarily impaired investments
|
|
$
|
5,047
|
|
$
|
13
|
|
$
|
440
|
|
$
|
8
|
|
$
|
5,487
|
|
$
|
21
|
|
|
Less than 12 months
|
|
12 months or longer
|
|
Total
|
||||||||||||
|
|
Fair
|
|
Unrealized
|
|
Fair
|
|
Unrealized
|
|
Fair
|
|
Unrealized
|
||||||
|
|
Value
|
|
Loss
|
|
Value
|
|
Loss
|
|
Value
|
|
Loss
|
||||||
|
|
(In Thousands)
|
||||||||||||||||
Held-to-maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
State and political subdivisions
|
|
$
|
—
|
|
$
|
—
|
|
$
|
102
|
|
$
|
23
|
|
$
|
102
|
|
$
|
23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S Government and GSE
|
|
|
12,994
|
|
|
129
|
|
|
—
|
|
|
—
|
|
|
12,994
|
|
|
129
|
State and political subdivisions
|
|
|
502
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
502
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total temporarily impaired
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
investments
|
|
$
|
13,496
|
|
$
|
131
|
|
$
|
102
|
|
$
|
23
|
|
$
|
13,598
|
|
$
|
154
|
|
|
Gross
|
Gross
|
|
||||||||||||
|
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
||||||||||||
|
Cost
|
Gains
|
Losses
|
Value
|
||||||||||||
|
(In Thousands)
|
|||||||||||||||
Available-for-sale securities:
|
|
|
|
|
||||||||||||
|
|
|
|
|
||||||||||||
December 31, 2011:
|
|
|
|
|
||||||||||||
Collateralized mortgage obligations ("CMO") (1)
|
$ | 323,980 | $ | 6,933 | $ | (2,527 | ) | $ | 328,386 | |||||||
Federal National Mortgage Association ("FNMA")
|
320,019 | 9,379 | (44 | ) | 329,354 | |||||||||||
Federal Home Loan Mortgage Corporation ("FHLMC")
|
93,305 | 1,781 | — | 95,086 | ||||||||||||
Government National Mortgage Association ("GNMA")
|
60,991 | 3,033 | (57 | ) | 63,967 | |||||||||||
|
$ | 798,295 | $ | 21,126 | $ | (2,628 | ) | $ | 816,793 | |||||||
|
||||||||||||||||
December 31, 2010:
|
||||||||||||||||
CMOs (1)
|
$ | 490,946 | $ | 9,687 | $ | (599 | ) | $ | 500,034 | |||||||
FNMA
|
89,226 | 1,253 | (431 | ) | 90,048 | |||||||||||
FHLMC
|
43,970 | 743 | (273 | ) | 44,440 | |||||||||||
GNMA
|
65,849 | 1,229 | (674 | ) | 66,404 | |||||||||||
|
$ | 689,991 | $ | 12,912 | $ | (1,977 | ) | $ | 700,926 | |||||||
|
Trading securities:
|
|
|
|
|
||||||||||||
|
|
|
|
|
||||||||||||
December 31, 2011:
|
|
|
|
|
||||||||||||
CMO
|
$ | 12,432 | $ | — | $ | — | $ | 12,432 | ||||||||
|
||||||||||||||||
December 31, 2010:
|
||||||||||||||||
CMO
|
$ | 12,432 | $ | — | $ | — | $ | 12,432 |
(1)
|
Includes agency CMOs classified as available-for-sale and SASCO 2002 RM-1 Class O security classified as available-for-sale.
|
|
Less than 12 months
|
12 months or longer
|
Total
|
|||||||||||||||||||||
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
||||||||||||||||||
|
Value
|
Loss
|
Value
|
Loss
|
Value
|
Loss
|
||||||||||||||||||
|
(In Thousands)
|
|||||||||||||||||||||||
Available-for-sale
|
|
|
|
|
|
|
||||||||||||||||||
CMO
|
$ | 78,955 | $ | 2,194 | $ | 9,933 | $ | 333 | $ | 88,888 | $ | 2,527 | ||||||||||||
FNMA
|
6,959 | 44 | — | — | 6,959 | 44 | ||||||||||||||||||
GNMA
|
5,420 | 57 | — | — | 5,420 | 57 | ||||||||||||||||||
|
||||||||||||||||||||||||
Total temporarily impaired MBS
|
$ | 91,334 | $ | 2,295 | $ | 9,933 | $ | 333 | $ | 101,267 | $ | 2,628 |
|
Less than 12 months
|
12 months or longer
|
Total
|
|||||||||||||||||||||
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
||||||||||||||||||
|
Value
|
Loss
|
Value
|
Loss
|
Value
|
Loss
|
||||||||||||||||||
|
(In Thousands)
|
|||||||||||||||||||||||
Available-for-sale
|
|
|
|
|
|
|
||||||||||||||||||
CMO
|
$ | 58,821 | $ | 534 | $ | 1,171 | $ | 65 | $ | 59,992 | $ | 599 | ||||||||||||
FNMA
|
45,129 | 431 | — | — | 45,129 | 431 | ||||||||||||||||||
FHLMC
|
14,981 | 273 | — | — | 14,981 | 273 | ||||||||||||||||||
GNMA
|
23,831 | 674 | — | — | 23,831 | 674 | ||||||||||||||||||
|
||||||||||||||||||||||||
Total temporarily impaired MBS
|
$ | 142,762 | $ | 1,912 | $ | 1,171 | $ | 65 | $ | 143,933 | $ | 1,977 |
1.
|
Prepayments – “1 year look back” comparing the actual cash flows vs. the forecasted cash flows based on the assumptions used. Using 50% of the Base Case forecasted cash flows vs. actual cash flows confirms the reasonableness of the prepayment assumption.
|
2.
|
House Price Appreciation – Consistent with other reverse mortgage analysis the following forecasts were obtained from various market sources. Based on a median of these results a 2% decline for year one and then a 2% recovery for year 2 on out was used.
|
3.
|
Interest Rates – Lastly the forward rates as of December 31, 2011 on 1 month LIBOR are consistent with the assumptions used for future interest rates (1 month LIBOR ramping up to 3% over 10 years).
|
December 31,
|
2011
|
|
2010
|
||
(In Thousands)
|
|
|
|
|
|
Commercial and industrial loans
|
$
|
1,460,812
|
|
$
|
1,239,103
|
Real estate mortgage loans:
|
|
|
|
|
|
Residential (1-4 family)
|
|
274,105
|
|
|
308,857
|
Commercial
|
|
626,739
|
|
|
625,379
|
Real estate construction loans
|
|
106,268
|
|
|
140,832
|
Consumer loans
|
|
290,979
|
|
|
309,722
|
|
|
2,758,903
|
|
|
2,623,893
|
Less:
|
|
|
|
|
|
Deferred fees, net
|
|
3,234
|
|
|
2,186
|
Allowance for loan losses
|
|
53,080
|
|
|
60,339
|
Net loans
|
$
|
2,702,589
|
|
$
|
2,561,368
|
Year Ended December 31,
|
2011
|
2010
|
2009
|
|||||||||
(In Thousands)
|
|
|
|
|||||||||
Beginning balance
|
$ | 60,339 | $ | 53,446 | $ | 31,189 | ||||||
Provision for loan losses
|
27,996 | 41,883 | 47,811 | |||||||||
Loans charged-off (1)
|
(37,833 | ) | (37,566 | ) | (26,566 | ) | ||||||
Recoveries (2)
|
2,578 | 2,576 | 1,012 | |||||||||
Ending balance
|
$ | 53,080 | $ | 60,339 | $ | 53,446 |
(1)
|
2011, 2010 and 2009 includes $869,000, $1.0 million and $1.2 million of overdraft charge-offs, respectively.
|
(2)
|
2011, 2010 and 2009 includes $348,000, $375,000 and $380,000 of overdraft recoveries, respectively.
|
·
|
General economic and business conditions affecting our key lending areas
|
·
|
Credit quality trends
|
·
|
Recent loss experience in particular segments of the portfolio
|
·
|
Collateral values and loan-to-value ratios
|
·
|
Loan volumes and concentrations, including changes in mix
|
·
|
Seasoning of the loan portfolio
|
·
|
Specific industry conditions within portfolio segments
|
·
|
Bank regulatory examination results
|
·
|
Other factors, including changes in quality of the loan origination, servicing and risk management processes
|
|
|
|
|
Commercial
|
|
|
|
|
|
|
|
|
|
2011
|
|
Commercial
|
|
mortgages
|
|
Construction
|
|
Residential
|
|
Consumer
|
|
Total
|
|
Allowance for credit losses
|
|
(In thousands)
|
|
||||||||||
Beginning balance
|
|
$ 26,480
|
|
$ 10,564
|
|
$ 10,019
|
|
$ 4,028
|
|
$ 9,248
|
|
$ 60,339
|
|
Charge-offs
|
|
(9,419
|
)
|
(7,446
|
)
|
(11,602
|
)
|
(3,165
|
)
|
(6,201
|
)
|
(37,833
|
)
|
Recoveries
|
|
897
|
|
334
|
|
582
|
|
211
|
|
554
|
|
2,578
|
|
Provision
|
|
6,344
|
|
4,104
|
|
5,075
|
|
5,470
|
|
7,003
|
|
27,996
|
|
Ending balance
|
|
$ 24,302
|
|
$ 7,556
|
|
$ 4,074
|
|
$ 6,544
|
|
$ 10,604
|
|
$ 53,080
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end allowance allocated to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans individually evaluated
for impairment
|
|
$ 2,630
|
|
$ 295
|
|
$ 723
|
|
$ 964
|
|
$ 101
|
|
$ 4,713
|
|
Loans collectively evaluated
for impairment
|
|
21,672
|
|
7,261
|
|
3,351
|
|
5,580
|
|
10,503
|
|
48,367
|
|
Ending balance
|
|
$ 24,302
|
|
$ 7,556
|
|
$ 4,074
|
|
$ 6,544
|
|
$ 10,604
|
|
$ 53,080
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loan balances evaluated for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans individually evaluated
for impairment
|
|
$ 23,193
|
|
$ 15,814
|
|
$ 22,124
|
|
$ 16,227
|
|
$ 2,621
|
|
$ 79,979
|
(1)
|
Loans collectively evaluated
for impairment
|
|
1,436,991
|
|
606,486
|
|
83,801
|
|
259,276
|
|
289,136
|
|
2,675,690
|
|
Ending balance
|
|
$ 1,460,184
|
|
$ 622,300
|
|
$ 105,925
|
|
$ 275,503
|
|
$ 291,757
|
|
$ 2,755,669
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
|
|
|
|
|
|
|
|
2010
|
|
Commercial
|
|
mortgages
|
|
Construction
|
|
Residential
|
|
Consumer
|
|
Total
|
|
Allowance for credit losses
|
|
(In thousands)
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance
|
|
$ 24,836
|
|
$ 6,160
|
|
$ 10,922
|
|
$ 4,071
|
|
$ 7,457
|
|
$ 53,446
|
|
Charge-offs
|
|
(9,458
|
)
|
(3,902
|
)
|
(14,972
|
)
|
(2,241
|
)
|
(6,993
|
)
|
(37,566
|
)
|
Recoveries
|
|
375
|
|
126
|
|
1,495
|
|
26
|
|
554
|
|
2,576
|
|
Provision
|
|
10,727
|
|
8,180
|
|
12,574
|
|
2,172
|
|
8,230
|
|
41,883
|
|
Ending balance
|
|
$ 26,480
|
|
$ 10,564
|
|
$ 10,019
|
|
$ 4,028
|
|
$ 9,248
|
|
$ 60,339
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end allowance allocated to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans individually evaluated
for impairment
|
|
$ 4,845
|
|
$ 2,591
|
|
$ 3,485
|
|
$ 968
|
|
$ 130
|
|
$ 12,019
|
|
Loans collectively evaluated
for impairment
|
|
21,635
|
|
7,973
|
|
6,534
|
|
3,060
|
|
9,118
|
|
48,320
|
|
Ending balance
|
|
$ 26,480
|
|
$ 10,564
|
|
$ 10,019
|
|
$ 4,028
|
|
$ 9,248
|
|
$ 60,339
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period-end loan balances evaluated for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans individually evaluated
for impairment
|
|
$ 21,527
|
|
$ 9,490
|
|
$ 30,260
|
|
$ 17,441
|
|
$ 5,106
|
|
$ 83,824
|
(1)
|
Loans collectively evaluated
for impairment
|
|
1,216,519
|
|
612,508
|
|
110,399
|
|
293,054
|
|
305,403
|
|
2,537,883
|
|
Ending balance
|
|
$ 1,238,046
|
|
$ 621,998
|
|
$ 140,659
|
|
$ 310,495
|
|
$ 310,509
|
|
$ 2,621,707
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The difference between this amount and nonaccruing loans at December 31, 2011 and December 31, 2010, represents accruing
|
|
||||||||||||
troubled debt restructured loans of $8.9 million and $7.1 million, respectively.
|
|
|
|
|
Greater Than
|
Total Past
|
|
|
|
|||||||||||||||||||||
|
30–59 Days
|
60–89 Days
|
90 Days
|
Due
|
Accruing
|
|
|
|||||||||||||||||||||
2011
|
Past Due and
|
Past Due and
|
Past Due and
|
And Still
|
Current
|
Nonaccrual
|
Total
|
|||||||||||||||||||||
(In Thousands)
|
Still Accruing
|
Still Accruing
|
Still Accruing
|
Accruing
|
Balances
|
Loans
|
Loans
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Commercial
|
$ | 1,087 | $ | 63 | $ | 78 | $ | 1,228 | $ | 1,435,876 | $ | 23,080 | $ | 1,460,184 | ||||||||||||||
Commercial
|
||||||||||||||||||||||||||||
mortgages
|
479 | 243 | - | 722 | 605,764 | 15,814 | 622,300 | |||||||||||||||||||||
Construction
|
3,727 | - | - | 3,727 | 80,074 | 22,124 | 105,925 | |||||||||||||||||||||
Residential
|
5,501 | 1,238 | 887 | 7,626 | 258,820 | 9,057 | 275,503 | |||||||||||||||||||||
Consumer
|
2,783 | 709 | - | 3,492 | 287,247 | 1,018 | 291,757 | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Total
|
$ | 13,577 | $ | 2,253 | $ | 965 | $ | 16,795 | $ | 2,667,781 | $ | 71,093 | $ | 2,755,669 | ||||||||||||||
% of Total Loans
|
0.49 | % | 0.08 | % | 0.04 | % | 0.61 | % | 96.81 | % | 2.58 | % | 100.00 | % | ||||||||||||||
|
||||||||||||||||||||||||||||
|
Greater Than
|
Total Past
|
||||||||||||||||||||||||||
|
30–59 Days
|
60–89 Days
|
90 Days
|
Due
|
Accruing
|
|||||||||||||||||||||||
2010
|
Past Due and
|
Past Due and
|
Past Due and
|
And Still
|
Current
|
Nonaccrual
|
Total
|
|||||||||||||||||||||
(In Thousands)
|
Still Accruing
|
Still Accruing
|
Still Accruing
|
Accruing
|
Balances
|
Loans
|
Loans
|
|||||||||||||||||||||
Commercial
|
$ | 2,839 | $ | 384 | $ | - | $ | 3,223 | $ | 1,213,246 | $ | 21,577 | $ | 1,238,046 | ||||||||||||||
Commercial mortgages
|
764 | - | - | 764 | 611,744 | 9,490 | 621,998 | |||||||||||||||||||||
Construction
|
1,685 | - | - | 1,685 | 108,714 | 30,260 | 140,659 | |||||||||||||||||||||
Residential
|
6,403 | 2,024 | 465 | 8,892 | 289,864 | 11,739 | 310,495 | |||||||||||||||||||||
Consumer
|
1,355 | 163 | - | 1,518 | 305,290 | 3,701 | 310,509 | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Total
|
$ | 13,046 | $ | 2,571 | $ | 465 | $ | 16,082 | $ | 2,528,858 | $ | 76,767 | $ | 2,621,707 | ||||||||||||||
% of Total Loans
|
0.49 | % | 0.10 | % | 0.02 | % | 0.61 | % | 96.46 | % | 2.93 | % | 100 | % | ||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Ending
|
Loans with
|
Loan with
|
|
Contractual
|
Average
|
||||||||||||||||||
2011
|
Loan
|
No Related
|
Related
|
Related
|
Principal
|
Loan
|
||||||||||||||||||
(In Thousands)
|
Balances
|
Reserve (1)
|
Reserve
|
Reserve
|
Balance
|
Balances
|
||||||||||||||||||
Commercial
|
$ | 23,193 | $ | 19,353 | $ | 3,840 | $ | 2,630 | $ | 26,815 | $ | 22,396 | ||||||||||||
Commercial mortgages
|
15,814 | 13,602 | 2,212 | 295 | 21,278 | 16,237 | ||||||||||||||||||
Construction
|
22,124 | 14,166 | 7,958 | 723 | 34,862 | 27,323 | ||||||||||||||||||
Residential
|
16,227 | 9,649 | 6,578 | 964 | 19,312 | 17,480 | ||||||||||||||||||
Consumer
|
2,621 | 1,336 | 1,285 | 101 | 2,788 | 3,916 | ||||||||||||||||||
|
||||||||||||||||||||||||
Total
|
$ | 79,979 | $ | 58,106 | $ | 21,873 | $ | 4,713 | $ | 105,055 | $ | 87,352 | ||||||||||||
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
|
Ending
|
Loans with
|
Loan with
|
Contractual
|
Average
|
|||||||||||||||||||
2010
|
Loan
|
No Related
|
Related
|
Related
|
Principal
|
Loan
|
||||||||||||||||||
(In Thousands)
|
Balances
|
Reserve (1)
|
Reserve
|
Reserve
|
Balance
|
Balances
|
||||||||||||||||||
Commercial
|
$ | 21,527 | $ | 14,555 | $ | 6,972 | $ | 4,845 | $ | 29,309 | $ | 16,139 | ||||||||||||
Commercial mortgages
|
9,490 | 3,263 | 6,227 | 2,591 | 12,001 | 4,530 | ||||||||||||||||||
Construction
|
30,260 | 12,166 | 18,094 | 3,485 | 53,265 | 36,102 | ||||||||||||||||||
Residential
|
17,441 | 11,226 | 6,215 | 968 | 22,112 | 16,667 | ||||||||||||||||||
Consumer
|
5,106 | 3,969 | 1,137 | 130 | 6,558 | 4,184 | ||||||||||||||||||
|
||||||||||||||||||||||||
Total
|
$ | 83,824 | $ | 45,179 | $ | 38,645 | $ | 12,019 | $ | 123,245 | $ | 77,622 | ||||||||||||
|
||||||||||||||||||||||||
(1) Reflects loan balances at their collateral value.
|
|
|
|
|
|
|
|
Total Commercial
|
|||||||||||||||||||||||||||||||||
|
Commercial
|
Commercial mortgages
|
Construction
|
2011
|
2010
|
|||||||||||||||||||||||||||||||||||
|
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
Amount
|
Percent
|
Amount
|
Percent
|
||||||||||||||||||||||||||||||
Risk Rating:
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||
Special mention
|
$ | 85,848 | $ | 39,544 | $ | 50,044 | $ | 13,195 | $ | 9,747 | $ | 21,970 | $ | 145,639 |
|
$ | 74,709 |
|
||||||||||||||||||||||
Substandard:
|
|
|
||||||||||||||||||||||||||||||||||||||
Accrual
|
107,896 | 54,230 | 13,664 | 21,121 | 19,039 | 32,560 | 140,599 |
|
107,911 |
|
||||||||||||||||||||||||||||||
Nonaccrual
|
23,193 | 21,577 | 15,814 | 9,490 | 22,124 | 30,260 | 61,131 |
|
61,327 |
|
||||||||||||||||||||||||||||||
Total Special Mention and Substandard
|
216,937 | 115,351 | 79,522 | 43,806 | 50,910 | 84,790 | 347,369 | 16 | % | 243,947 | 12 | % | ||||||||||||||||||||||||||||
Pass
|
1,242,519 | 1,122,695 | 543,277 | 578,192 | 55,244 | 55,869 | 1,841,039 | 84 | 1,756,756 | 88 | ||||||||||||||||||||||||||||||
Total
|
$ | 1,459,456 | $ | 1,238,046 | $ | 622,799 | $ | 621,998 | $ | 106,154 | $ | 140,659 | $ | 2,188,409 | 100 | $ | 2,000,703 | 100 |
|
|
|
|
|
Total Residential and Consumer
|
|||||||||||||||||||||||||||
|
Residential
|
Consumer
|
2011
|
2010
|
||||||||||||||||||||||||||||
|
2011
|
2010
|
2011
|
2010
|
Amount
|
Percent
|
Amount
|
Percent
|
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Nonperforming(1)
|
$ | 16,227 | $ | 17,441 | $ | 2,621 | $ | 5,106 | $ | 18,848 | 3 | % | $ | 22,547 | 4 | % | ||||||||||||||||
Performing
|
259,276 | 293,054 | 289,136 | 305,403 | 548,412 | 97 | 598,457 | 96 | ||||||||||||||||||||||||
Total
|
$ | 275,503 | $ | 310,495 | $ | 291,757 | $ | 310,509 | $ | 567,260 | 100 | $ | 621,004 | 100 |
|
Twelve
|
|||
|
Months Ended
|
|||
|
December 31,
|
|||
(In Thousands)
|
2011
|
|||
|
|
|||
Commercial
|
$ | 2,914 | ||
Commercial mortgages
|
11,536 | |||
Construction
|
13,909 | |||
Residential
|
2,824 | |||
Consumer
|
146 | |||
|
$ | 31,329 | ||
|
|
Twelve
|
|||
|
Months Ended
|
|||
|
December 31,
|
|||
(In Thousands)
|
2011
|
|||
|
|
|||
Residential
|
$ | 974 | ||
|
$ | 974 |
December 31,
|
2011
|
|
2010
|
||
(In Thousands)
|
|
|
|
||
Land
|
$
|
1,562
|
|
$
|
2,390
|
Buildings
|
|
6,708
|
|
|
6,894
|
Leasehold improvements
|
|
32,804
|
|
|
27,428
|
Furniture and equipment
|
|
38,253
|
|
|
34,559
|
|
|
79,327
|
|
|
71,271
|
Less:
|
|
|
|
|
|
Accumulated depreciation
|
|
43,363
|
|
|
39,401
|
|
$
|
35,964
|
|
$
|
31,870
|
(In Thousands)
|
|
|
2012
|
$
|
7,551
|
2013
|
|
7,490
|
2014
|
|
7,162
|
2015
|
|
7,070
|
2016
|
|
6,885
|
Thereafter
|
|
155,452
|
Total future minimum lease payments
|
$
|
191,610
|
December 31,
|
2011
|
2010
|
||||||
(In Thousands)
|
|
|
||||||
Money market and demand:
|
|
|
||||||
Noninterest-bearing demand
|
$ | 525,444 | $ | 468,098 | ||||
Interest-bearing demand
|
389,495 | 312,546 | ||||||
Money market
|
805,570 | 743,808 | ||||||
Total money market and demand
|
1,720,509 | 1,524,452 |
Savings
|
368,390 | 255,340 | ||||||
|
||||||||
Customer certificates of deposit by maturity:
|
||||||||
Less than one year
|
261,000 | 335,768 | ||||||
One year to two years
|
86,097 | 74,555 | ||||||
Two years to three years
|
3,219 | 4,415 | ||||||
Three years to four years
|
60,267 | 1,576 | ||||||
Over four years
|
1,444 | 68,550 | ||||||
Total customer time certificates
|
412,027 | 484,864 | ||||||
|
||||||||
Jumbo certificates of deposits, by maturity:
|
||||||||
Less than one year
|
254,583 | 228,785 | ||||||
One year to two years
|
52,753 | 37,010 | ||||||
Two years to three years
|
2,935 | 2,398 | ||||||
Three years to four years
|
36,196 | 167 | ||||||
Over four years
|
101 | 28,752 | ||||||
Total jumbo certificates of deposit
|
346,568 | 297,112 | ||||||
Total customer deposits
|
2,847,494 | 2,561,768 | ||||||
|
||||||||
Brokered deposits less than one year
|
287,810 | 249,006 | ||||||
|
||||||||
Total deposits
|
$ | 3,135,304 | $ | 2,810,774 |
Interest expense by category follows:
|
|
|
|
|||||||||
|
|
|
|
|||||||||
Year Ended December 31,
|
2011
|
2010
|
2009
|
|||||||||
(In Thousands)
|
|
|
|
|||||||||
Interest-bearing demand
|
$ | 405 | $ | 435 | $ | 648 | ||||||
Money market
|
2,897 | 4,301 | 4,857 | |||||||||
Savings
|
1,465 | 494 | 521 | |||||||||
Time deposits
|
13,548 | 16,070 | 21,634 | |||||||||
Total customer interest expense
|
18,315 | 21,300 | 27,660 | |||||||||
|
||||||||||||
Brokered deposits
|
816 | 1,797 | 2,729 | |||||||||
Total interest expense on deposits
|
$ | 19,131 | $ | 23,097 | $ | 30,389 |
Maximum | Weighted | |||||||||||||||||||
Outstanding | Average | Average | ||||||||||||||||||
Weighted | at Month | Amount | Interest | |||||||||||||||||
Balance at
|
Average
|
End
|
Outstanding
|
Rate
|
||||||||||||||||
End of
|
Interest
|
During the
|
During the
|
During the
|
||||||||||||||||
Period
|
Rate
|
Period
|
Period
|
Period
|
||||||||||||||||
At December 31, 2011
|
(Dollars in Thousands)
|
|||||||||||||||||||
FHLB advances
|
$ | 538,682 | 1.49 | % | $ | 676,093 | $ | 561,117 | 1.75 | % | ||||||||||
Trust preferred borrowings
|
67,011 | 2.30 | 67,011 | 67,011 | 2.02 | |||||||||||||||
Federal funds purchased and securities sold
|
||||||||||||||||||||
under agreements to repurchase
|
50,000 | 1.68 | 100,000 | 78,685 | 1.50 | |||||||||||||||
Other borrowed funds
|
67,927 | 1.26 | 74,859 | 71,431 | 1.30 | |||||||||||||||
At December 31, 2010
|
||||||||||||||||||||
FHLB advances
|
$ | 488,959 | 2.28 | % | $ | 640,179 | $ | 544,317 | 2.67 | % | ||||||||||
Trust preferred borrowings
|
67,011 | 2.07 | 67,011 | 67,011 | 2.05 | |||||||||||||||
Federal funds purchased and securities sold
|
||||||||||||||||||||
under agreements to repurchase
|
100,000 | 1.50 | 110,000 | 98,767 | 1.51 | |||||||||||||||
Other borrowed funds
|
91,636 | 1.01 | 107,867 | 86,989 | 1.13 | |||||||||||||||
|
|
Weighted
|
||||||
|
|
Average
|
||||||
|
Amount
|
Rate
|
||||||
|
(Dollars in Thousands)
|
|||||||
|
|
|
||||||
2012
|
$ | 320,539 | 0.97 | % | ||||
2013
|
82,248 | 2.20 | ||||||
2014
|
135,895 | 2.26 | ||||||
|
$ | 538,682 | 1.49 |
|
|
|
|
|
|
Collateral
|
|||||||||
|
|
Borrowing
|
|
|
|
Carrying
|
|
Fair
|
|
Accrued
|
|||||
|
|
Amount
|
|
Rate
|
|
Value
|
|
Value
|
|
Interest
|
|||||
(Dollars in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Over 90 days
|
|
$
|
25,000
|
|
2.98
|
%
|
|
$
|
29,942
|
|
$
|
30,961
|
|
$
|
97
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Over 90 days
|
|
$
|
25,000
|
|
4.87
|
%
|
|
$
|
27,584
|
|
$
|
28,419
|
|
$
|
95
|
|
|
|
|
|
|
To Be Well-Capitalized Under Prompt Corrective Action Provisions
|
|||||||||
Consolidated Bank Capital
|
For Capital Adequacy Purposes
|
||||||||||||||
|
|
Amount
|
Percent
|
|
Amount
|
Percent
|
|
Amount
|
Percent
|
||||||
(In Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
As of December 31, 2011:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Capital (to risk-weighted assets)
|
|
$
|
434,301
|
13.43
|
%
|
|
$
|
258,688
|
8.00
|
%
|
|
$
|
323,361
|
10.00
|
%
|
Core Capital (to adjusted tangible assets)
|
|
|
393,725
|
9.29
|
|
|
|
169,518
|
4.00
|
|
|
|
211,898
|
5.00
|
|
Tangible Capital (to tangible assets)
|
|
|
393,725
|
9.29
|
|
|
|
63,569
|
1.50
|
|
|
|
N/A
|
N/A
|
|
Tier 1 Capital (to risk-weighted assets)
|
|
|
393,725
|
12.18
|
|
|
|
129,344
|
4.00
|
|
|
|
194,016
|
6.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2010:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Total Capital (to risk-weighted assets)
|
|
$
|
409,034
|
13.62
|
%
|
|
$
|
240,338
|
8.00
|
%
|
|
$
|
300,423
|
10.00
|
%
|
Core Capital (to adjusted tangible assets)
|
|
|
371,348
|
9.49
|
|
|
|
156,555
|
4.00
|
|
|
|
195,693
|
5.00
|
|
Tangible Capital (to tangible assets)
|
|
|
371,348
|
9.49
|
|
|
|
58,708
|
1.50
|
|
|
|
N/A
|
N/A
|
|
Tier 1 Capital (to risk-weighted assets)
|
|
|
371,348
|
12.36
|
|
|
|
120,169
|
4.00
|
|
|
|
180,254
|
6.00
|
|
|
|
|
2011
|
|
|
|
2010
|
|
|
|
2009
|
|
(Dollars in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in benefit obligation:
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefit obligation at beginning of year
|
|
$
|
3,088
|
|
|
$
|
2,568
|
|
|
$
|
2,502
|
|
Service cost
|
|
|
207
|
|
|
|
171
|
|
|
|
161
|
|
Interest cost
|
|
|
166
|
|
|
|
151
|
|
|
|
141
|
|
Actuarial loss/(gain)
|
|
|
623
|
|
|
|
360
|
|
|
|
(69)
|
|
Benefits paid
|
|
|
(161)
|
|
|
|
(162)
|
|
|
|
(167)
|
|
Benefit obligation at end of year
|
|
$
|
3,923
|
|
|
$
|
3,088
|
|
|
$
|
2,568
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in plan assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value of plan assets at beginning of year
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Employer contributions
|
|
|
161
|
|
|
|
162
|
|
|
|
167
|
|
Benefits paid
|
|
|
(161)
|
|
|
|
(162)
|
|
|
|
(167)
|
|
Fair value of plan assets at end of year
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funded status:
|
|
|
|
|
|
|
|
|
|
|
|
|
Funded status
|
|
$
|
(3,923)
|
|
|
$
|
(3,088)
|
|
|
$
|
(2,568)
|
|
Recognized net loss
|
|
|
1,444
|
|
|
|
914
|
|
|
|
626
|
|
Net amount recognized
|
|
$
|
(2,479)
|
|
|
$
|
(2,174)
|
|
|
$
|
(1,942)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of net periodic benefit cost:
|
|
|
|
|
|
|
|
|
|
|
|
|
Service cost
|
|
|
207
|
|
|
|
171
|
|
|
|
161
|
|
Interest cost
|
|
|
166
|
|
|
|
151
|
|
|
|
141
|
|
Amortization of transition obligation
|
|
|
61
|
|
|
|
61
|
|
|
|
61
|
|
Net loss recognition
|
|
|
32
|
|
|
|
12
|
|
|
|
18
|
|
Net periodic benefit cost
|
|
$
|
466
|
|
|
$
|
395
|
|
|
$
|
381
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assumptions used to determine net periodic benefit cost:
|
|
|
|
|
|
|
|
|
|
|
|
|
Discount rate
|
|
|
5.50
|
%
|
|
|
6.00
|
%
|
|
|
5.75
|
%
|
Health care cost trend rate
|
|
|
5.00
|
%
|
|
|
5.00
|
%
|
|
|
5.00
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sensitivity analysis of health care cost trends:
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of +1% on service cost plus interest cost
|
|
$
|
(17)
|
|
|
$
|
(13)
|
|
|
$
|
(11)
|
|
Effect of –1% on service cost plus interest cost
|
|
|
13
|
|
|
|
10
|
|
|
|
9
|
|
Effect of +1% on APBO
|
|
|
(129)
|
|
|
|
(96)
|
|
|
|
(74)
|
|
Effect of –1% on APBO
|
|
|
100
|
|
|
|
76
|
|
|
|
60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assumptions used to value the Accumulated Postretirement Benefit Obligation (APBO):
|
|
|
|
|
|
|
|
|
|
|
|
|
Discount rate
|
|
|
4.50
|
%
|
|
|
5.50
|
%
|
|
|
6.00
|
%
|
Health care cost trend rate
|
|
|
5.00
|
%
|
|
|
5.00
|
%
|
|
|
5.00
|
%
|
Ultimate trend rate
|
|
|
5.00
|
%
|
|
|
5.00
|
%
|
|
|
5.00
|
%
|
Year of ultimate trend rate
|
|
|
2011
|
|
|
|
2010
|
|
|
|
2009
|
|
During 2012
|
$
|
119
|
During 2013
|
|
120
|
During 2014
|
|
122
|
During 2015
|
|
122
|
During 2016
|
|
122
|
During 2017 through 2021
|
|
676
|
|
$
|
1,281
|
Year Ended December 31,
|
2011
|
2010
|
2009
|
|||||||||
(In Thousands)
|
|
|
|
|||||||||
Current income taxes:
|
|
|
|
|||||||||
Federal taxes
|
$ | 6,648 | $ | 8,192 | $ | 7,699 | ||||||
State and local taxes
|
1,849 | (555 | ) | (1,408 | ) | |||||||
Deferred income taxes:
|
||||||||||||
Federal taxes
|
2,978 | (2,183 | ) | (8,384 | ) | |||||||
State and local taxes
|
- | - | - | |||||||||
Total
|
$ | 11,475 | $ | 5,454 | $ | (2,093 | ) |
|
2011
|
2010
|
||||||
(In Thousands)
|
|
|
||||||
Deferred tax liabilities:
|
|
|
||||||
Unrealized gains on available-for-sale securities
|
$ | (7,105 | ) | $ | (4,287 | ) | ||
Accelerated depreciation
|
(912 | ) | (707 | ) | ||||
Other
|
(395 | ) | (207 | ) | ||||
Prepaid expenses
|
(1,428 | ) | (1,361 | ) | ||||
Deferred loan costs
|
(1,680 | ) | (1,675 | ) | ||||
Intangibles
|
(795 | ) | — | |||||
Total deferred tax liabilities
|
(12,315 | ) | (8,237 | ) | ||||
|
||||||||
Deferred tax assets:
|
||||||||
Allowance for loan losses
|
18,578 | 21,119 | ||||||
Reserves and other
|
5,862 | 5,460 | ||||||
Deferred gains
|
505 | 398 | ||||||
Total deferred tax assets
|
24,945 | 26,977 | ||||||
Net deferred tax asset
|
$ | 12,630 | $ | 18,740 |
Year Ended December 31,
|
2011
|
2010
|
2009
|
|||||||||
Statutory federal income tax rate
|
35.0 | % | 35.0 | % | 35.0 | % | ||||||
State tax net of federal tax benefit
|
3.4 | (1.8 | ) | 64.0 | ||||||||
Interest income 50% excludable
|
(2.1 | ) | (3.7 | ) | 50.6 | |||||||
Bank-owned life insurance income
|
(2.0 | ) | (1.3 | ) | 22.4 | |||||||
Incentive stock option and other
|
||||||||||||
nondeductible compensation
|
0.9 | 0.8 | (18.0 | ) | ||||||||
Settlement of prior year charitable donation
|
(1.2 | ) | — | — | ||||||||
Federal tax credits
|
(0.5 | ) | (1.1 | ) | (8.0 | ) | ||||||
Other
|
0.1 | — | 0.4 | |||||||||
Effective tax rate
|
33.6 | % | 27.9 | % | 146.4 | % |
(In Thousands)
|
|
|
|
Unrecognized tax benefits at December 31, 2010
|
$
|
967
|
|
Additions as a result of tax positions taken during prior years
|
|
96
|
|
Additions as a result of tax positions taken during current year
|
|
—
|
|
Reductions relating to settlements with taxing authorities
|
|
—
|
|
Reductions as a result of a lapse of statutes of limitations
|
|
(975
|
)
|
Unrecognized tax benefits at December 31, 2011
|
$
|
88
|
|
|
|
2011
|
|
2010
|
|
2009
|
||||||||||||
|
|
|
|
Weighted-
|
|
|
|
Weighted-
|
|
|
|
Weighted-
|
||||||
|
|
|
|
Average
|
|
|
|
Average
|
|
|
|
Average
|
||||||
|
|
|
|
Exercise
|
|
|
|
Exercise
|
|
|
|
Exercise
|
||||||
|
|
Shares
|
|
Price
|
|
Shares
|
|
Price
|
|
Shares
|
|
Price
|
||||||
Stock Options:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding at beginning of year
|
|
|
566,323
|
|
$
|
42.84
|
|
|
733,468
|
|
$
|
42.95
|
|
|
675,887
|
|
$
|
44.98
|
Granted
|
|
|
57,723
|
|
|
44.15
|
|
|
27,889
|
|
|
30.94
|
|
|
83,921
|
|
|
23.33
|
Exercised
|
|
(
|
85,379
|
)
|
|
18.94
|
|
(
|
67,376
|
)
|
|
14.29
|
|
(
|
16,460
|
)
|
|
16.48
|
Forfeited
|
|
(
|
12,666
|
)
|
|
40.85
|
|
(
|
22,899
|
)
|
|
40.53
|
|
(
|
1,468
|
)
|
|
57.48
|
Expired
|
|
(
|
109,115
|
)
|
|
59.85
|
|
(
|
104,759
|
)
|
|
59.29
|
|
(
|
8,412
|
)
|
|
59.85
|
Outstanding at end of year
|
|
|
416,886
|
|
|
43.52
|
|
|
566,323
|
|
|
42.84
|
|
|
733,468
|
|
|
42.95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exercisable at end of year
|
|
|
304,628
|
|
$
|
46.27
|
|
|
442,837
|
|
$
|
45.04
|
|
|
541,910
|
|
$
|
43.52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average fair value of awards granted
|
|
$
|
14.06
|
|
|
|
|
$
|
9.51
|
|
|
|
|
$
|
5.42
|
|
|
|
|
2011
|
|
2010
|
|
2009
|
|||||||||||||||||||||
|
|
|
Weighted-
|
|
Weighted-
|
|
|
|
Weighted-
|
|
Weighted-
|
|
|
|
Weighted-
|
|
Weighted-
|
|||||||||
|
|
|
Average
|
|
Average
|
|
|
|
Average
|
|
Average
|
|
|
|
Average
|
|
Average
|
|||||||||
|
Shares
|
|
Exercise
Price
|
|
Grant Date
Fair Value
|
|
Shares
|
|
Exercise
Price
|
|
Grant Date
Fair Value
|
|
Shares
|
|
Exercise
Price
|
|
Grant Date
Fair Value
|
|||||||||
Stock Options:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unvested at beginning of period
|
|
123,486
|
|
$
|
34.94
|
|
$
|
8.27
|
|
|
191,558
|
|
$
|
41.31
|
|
$
|
8.92
|
|
|
202,442
|
|
$
|
57.00
|
|
$
|
12.10
|
Granted
|
|
57,723
|
|
|
44.15
|
|
|
14.06
|
|
|
27,889
|
|
|
30.94
|
|
|
9.51
|
|
|
83,921
|
|
|
23.33
|
|
|
5.42
|
Vested
|
(
|
56,285
|
)
|
|
40.77
|
|
|
9.13
|
|
(
|
73,062
|
)
|
|
48.38
|
|
|
10.26
|
|
(
|
93,337
|
)
|
|
58.91
|
|
|
12.63
|
Forfeited
|
(
|
12,666
|
)
|
|
40.85
|
|
|
9.44
|
|
(
|
22,899
|
)
|
|
40.53
|
|
|
8.84
|
|
(
|
1,468
|
)
|
|
57.48
|
|
|
12.06
|
Unvested at end of period
|
|
112,258
|
|
$
|
36.08
|
|
$
|
10.69
|
|
|
123,486
|
|
$
|
34.94
|
|
$
|
8.27
|
|
|
191,558
|
|
$
|
41.31
|
|
$
|
8.92
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding
|
|
Exercisable
|
||||||||
|
|
|
|
Weighted-
|
|
Weighted-
|
|
|
|
Weighted
|
||
|
|
|
|
Average
|
|
Average
|
|
|
|
Average
|
||
|
|
|
|
Exercise
|
|
Remaining
|
|
|
|
Exercise
|
||
|
|
Number
|
|
Price
|
|
Contractual Life
|
|
Number
|
|
Price
|
||
|
|
|
|
|
|
|
|
|
|
|
||
Stock Options:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$20.71-$27.60
|
|
58,376
|
|
$
|
23.34
|
|
2.2 years
|
|
26,200
|
|
$
|
23.32
|
$27.61-$34.50
|
|
75,921
|
|
|
32.56
|
|
1.8 years
|
|
54,520
|
|
|
33.12
|
$34.51-$41.40
|
|
2,600
|
|
|
38.69
|
|
4.0 years
|
|
400
|
|
|
37.20
|
$41.41-$48.30
|
|
121,829
|
|
|
44.68
|
|
2.8 years
|
|
65,897
|
|
|
44.36
|
$48.31-$55.20
|
|
102,943
|
|
|
53.20
|
|
1.0 years
|
|
102,405
|
|
|
53.23
|
$55.21-$62.10
|
|
49,717
|
|
|
58.83
|
|
2.9 years
|
|
49,717
|
|
|
58.83
|
$62.11-$69.00
|
|
5,500
|
|
|
66.34
|
|
1.3 years
|
|
5,489
|
|
|
66.34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
416,886
|
|
$
|
43.52
|
|
2.1 years
|
|
304,628
|
|
$
|
46.27
|
|
Year
|
|
Amount
|
|
|
2012
|
|
$
|
2,769
|
|
2013
|
|
|
2,297
|
|
2014
|
|
|
1,933
|
|
2015
|
|
|
625
|
|
2016
|
|
|
24
|
December 31,
|
2011
|
2010
|
||||||
(In Thousands)
|
|
|
||||||
Financial instruments with contract amounts which
represent potential credit risk: |
|
|
||||||
Construction loan commitments
|
$ | 49,510 | $ | 52,565 | ||||
Commercial mortgage loan commitments
|
118,812 | 72,131 | ||||||
Commercial loan commitments
|
295,929 | 251,344 | ||||||
Commercial standby letters of credit
|
55,697 | 60,913 | ||||||
Residential mortgage loan commitments
|
6,501 | 18,399 | ||||||
Consumer loan commitments
|
160,160 | 148,186 |
The book value and estimated fair value of our financial instruments are as follows:
|
|
||||
|
|
|
|
|
|
At December 31,
|
2011
|
|
2010
|
||
|
Book Value
|
Fair Value
|
|
Book Value
|
Fair Value
|
(In Thousands)
|
|
|
|
|
|
Financial assets:
|
|
|
|
|
|
Cash and cash equivalents
|
$468,017
|
$468,017
|
|
$376,759
|
$376,759
|
Investment securities
|
42,569
|
42,569
|
|
52,451
|
52,428
|
Mortgage-backed securities
|
829,225
|
829,225
|
|
713,358
|
713,358
|
Loans, held-for-sale
|
10,185
|
10,185
|
|
14,522
|
14,522
|
Loans, net
|
2,702,589
|
2,721,804
|
|
2,561,368
|
2,572,147
|
Stock in Federal Home Loan Bank of Pittsburgh
|
35,756
|
35,756
|
|
37,536
|
37,536
|
Accrued interest receivable
|
11,743
|
11,743
|
|
11,765
|
11,765
|
|
|
|
|
|
|
Financial liabilities:
|
|
|
|
|
|
Deposits
|
3,135,304
|
3,087,464
|
|
2,810,774
|
2,826,515
|
Borrowed funds
|
723,620
|
731,522
|
|
747,606
|
751,970
|
Standby letters of credit | 322 | 322 | 210 | 210 | |
Accrued interest payable
|
1,910
|
1,910
|
|
3,317
|
3,317
|
|
|
|
|
|
|
The estimated fair value of our off-balance sheet financial instruments is as follows:
|
|
||||
|
|
|
|
|
|
December 31,
|
|
2011
|
2010
|
|
|
(In Thousands)
|
|
|
|
|
|
Off-balance sheet instruments:
|
|
|
|
|
|
Commitments to extend credit
|
|
|
$4,445
|
$3,729
|
|
|
Level 1:
|
Inputs to the valuation methodology are quoted prices, unadjusted, for identical assets or liabilities in active markets. A quoted price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available.
|
|
|
|
|
Level 2:
|
Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets; inputs to the valuation methodology include quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs to the valuation methodology that are derived principally from or can be corroborated by observable market data by correlation or other means.
|
|
|
|
|
Level 3:
|
Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Level 3 assets and liabilities include financial instruments whose value is determined using discounted cash flow methodologies, as well as instruments for which the determination of fair value requires significant management judgment or estimation.
|
|
Quoted
|
|
|
|
||||||||||||
|
Prices in
|
|
|
|
||||||||||||
|
Active
|
Significant
|
|
|
||||||||||||
|
Markets for
|
Other
|
Significant
|
|
||||||||||||
|
Identical
|
Observable
|
Unobservable
|
|
||||||||||||
|
Asset
|
Inputs
|
Inputs
|
Total
|
||||||||||||
Description
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
Fair Value
|
||||||||||||
Assets Measured at Fair Value on a Recurring Basis:
|
(in Thousands)
|
|||||||||||||||
Available-for-sale securities:
|
|
|
|
|
||||||||||||
Collateralized mortgage obligations
|
$ | — | $ | 324,450 | $ | 3,936 | $ | 328,386 | ||||||||
FNMA
|
— | 329,354 | — | 329,354 | ||||||||||||
FHLMC
|
— | 95,086 | — | 95,086 | ||||||||||||
GNMA
|
— | 63,967 | — | 63,967 | ||||||||||||
U.S. Government and agencies
|
— | 39,025 | — | 39,025 | ||||||||||||
State and political subdivisions
|
— | 4,190 | — | 4,190 | ||||||||||||
Reverse mortgages
|
— | — | (646 | ) | (646 | ) | ||||||||||
Trading securities
|
— | — | 12,432 | 12,432 | ||||||||||||
Total assets measured at fair value on a recurring basis
|
$ | — | $ | 856,072 | $ | 15,722 | $ | 871,794 | ||||||||
|
||||||||||||||||
Assets Measured at Fair Value on a Nonrecurring Basis:
|
||||||||||||||||
Other real estate owned
|
$ | — | $ | 11,695 | $ | — | $ | 11,695 | ||||||||
Impaired Loans
|
— | 74,562 | — | 74,562 | ||||||||||||
Total assets measured at fair value on a nonrecurring basis
|
$ | — | $ | 86,257 | $ | — | $ | 86,257 |
|
Quoted
|
|
|
|
||||||||||||
|
Prices in
|
|
|
|
||||||||||||
|
Active
|
Significant
|
|
|
||||||||||||
|
Markets for
|
Other
|
Significant
|
|
||||||||||||
|
Identical
|
Observable
|
Unobservable
|
|
||||||||||||
|
Asset
|
Inputs
|
Inputs
|
Total
|
||||||||||||
Description
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
Fair Value
|
||||||||||||
Assets Measured at Fair Value on a Recurring Basis
|
(In Thousands)
|
|||||||||||||||
Available-for-sale securities:
|
|
|
|
|
||||||||||||
Collateralized mortgage obligations
|
$ | — | $ | 500,034 | $ | — | $ | 500,034 | ||||||||
FNMA
|
— | 90,048 | — | 90,048 | ||||||||||||
FHLMC
|
— | 44,440 | — | 44,440 | ||||||||||||
GNMA
|
— | 66,404 | — | 66,404 | ||||||||||||
U.S. Government and agencies
|
— | 50,003 | — | 50,003 | ||||||||||||
State and political subdivisions
|
— | 2,915 | — | 2,915 | ||||||||||||
Reverse mortgages
|
— | — | (686 | ) | (686 | ) | ||||||||||
Trading securities
|
— | — | 12,432 | 12,432 | ||||||||||||
Total assets measured at fair value on a recurring basis
|
$ | — | $ | 753,844 | $ | 11,746 | $ | 765,590 | ||||||||
|
||||||||||||||||
Assets Measured at Fair Value on a Nonrecurring Basis
|
||||||||||||||||
Other real estate owned
|
$ | — | $ | 9,024 | $ | — | $ | 9,024 | ||||||||
Impaired Loans
|
— | 71,805 | — | 71,805 | ||||||||||||
Total assets measured at fair value on a nonrecurring basis
|
$ | — | $ | 80,829 | $ | — | $ | 80,829 |
Available-
|
||||||||||
Trading Securities
|
Reverse Mortgages
|
for-sale
|
||||||||
Securities
|
Total
|
|||||||||
(In Thousands)
|
||||||||||
Balance at December 31, 2009
|
$
|
12,183
|
$
|
(530)
|
$
|
—
|
$
|
11,653
|
||
Total net income (loss) for the year included in net income
|
249
|
(287)
|
—
|
(38)
|
||||||
Purchases, sales, issuances, and sentiments, net
|
—
|
131
|
—
|
131
|
||||||
Mark-to-market adjustment
|
—
|
—
|
—
|
—
|
||||||
Balance at December 31, 2010
|
$
|
12,432
|
$
|
(686)
|
$
|
—
|
$
|
11,746
|
||
Total net income (loss) for the year included in net income
|
—
|
(137)
|
265
|
128
|
||||||
Contractual monthly advances of principal
|
—
|
177
|
2,755
|
2,932
|
||||||
Mark-to-market adjustment
|
—
|
—
|
916
|
916
|
||||||
Balance at December 31, 2011
|
$
|
12,432
|
$
|
(646)
|
$
|
3,936
|
$
|
15,722
|
·
|
a company which provides peer group meetings and forums held for executives of local banks amounting to $5,000 in 2011, $25,000 in 2010 and none in 2009.
|
·
|
an investment bank providing financial services amounting to $8,000 in 2011, $29,000 in 2010, and none in 2009.
|
·
|
donated funds to a local charity that provides support to local Delaware communities. Total contributions made to this charity amounted to $18,000 in 2011 and $33,000 in 2010 and 2009.
|
·
|
donated funds to support a local university. Total contributions made to this university amounted to $6,000 in 2011, $25,000 in 2010, and none in 2009.
|
·
|
donated funds to support the local chamber of commerce. Total contributions made amounted to $46,000 in 2011, $15,000 in 2010 and $22,000 in 2009.
|
December 31,
|
2011
|
2010
|
||||||
(In Thousands)
|
|
|
||||||
Assets:
|
|
|
||||||
Cash
|
$ | 13,046 | $ | 19,521 | ||||
Mortgage-backed securities, available-for-sale
|
3,936 | - | ||||||
Investment in subsidiaries
|
439,989 | 412,679 | ||||||
Investment in Capital Trust III
|
2,011 | 2,011 | ||||||
Other assets
|
886 | 787 | ||||||
Total assets
|
$ | 459,868 | $ | 434,998 | ||||
|
||||||||
Liabilities:
|
||||||||
Borrowings
|
$ | 67,011 | $ | 67,011 | ||||
Interest payable
|
133 | 119 | ||||||
Other liabilities
|
591 | 46 | ||||||
Total liabilities
|
67,735 | 67,176 | ||||||
|
||||||||
Stockholders’ equity:
|
1 | 1 | ||||||
Preferred stock
|
||||||||
Common stock
|
182 | 180 | ||||||
Capital in excess of par value
|
220,163 | 216,316 | ||||||
Accumulated other comprehensive income
|
11,202 | 6,524 | ||||||
Retained earnings
|
408,865 | 393,081 | ||||||
Treasury stock
|
(248,280 | ) | (248,280 | ) | ||||
Total stockholders’ equity
|
392,133 | 367,822 | ||||||
Total liabilities and stockholders’ equity
|
$ | 459,868 | $ | 434,998 |
Condensed Statement of Operations
|
|
|
|
|||||||||
|
|
|
|
|||||||||
Year Ended December 31,
|
2011
|
2010
|
2009
|
|||||||||
(In Thousands)
|
|
|
|
|||||||||
Income:
|
|
|
|
|||||||||
Interest income
|
$ | 1,021 | $ | 2,207 | $ | 1,716 | ||||||
Noninterest income
|
153 | 120 | 64 | |||||||||
|
1,174 | 2,327 | 1,780 | |||||||||
Expenses:
|
||||||||||||
Interest expense
|
1,375 | 1,390 | 1,797 | |||||||||
Other operating expenses
|
419 | 656 | 79 | |||||||||
|
1,794 | 2,046 | 1,876 | |||||||||
|
||||||||||||
(Loss) income before equity in undistributed income of subsidiaries
|
(620 | ) | 281 | (96 | ) | |||||||
Equity in undistributed income of subsidiaries
|
23,297 | 13,836 | 759 | |||||||||
Net income
|
22,677 | 14,117 | 663 | |||||||||
Dividends on preferred stock and accretion of discount
|
(2,770 | ) | (2,770 | ) | (2,590 | ) | ||||||
Net income (loss) allocable to common stockholders
|
$ | 19,907 | $ | 11,347 | $ | (1,927 | ) | |||||
|
||||||||||||
Condensed Statement of Cash Flows
|
||||||||||||
|
||||||||||||
Year Ended December 31,
|
2011 | 2010 | 2009 | |||||||||
(In Thousands)
|
||||||||||||
Operating activities:
|
||||||||||||
Net income
|
$ | 22,677 | $ | 14,117 | $ | 663 | ||||||
Adjustments to reconcile net income to net cash used for operating activities:
|
||||||||||||
Equity in undistributed income of subsidiaries
|
(23,298 | ) | (13,836 | ) | (759 | ) | ||||||
Increase in capitalized interest
|
(280 | ) | — | — | ||||||||
Increase in other assets
|
(98 | ) | (383 | ) | 829 | |||||||
Increase (decrease) in other liabilities
|
33 | 24 | (123 | ) | ||||||||
Net cash (used for) provided by operating activities
|
(966 | ) | (78 | ) | 610 | |||||||
|
||||||||||||
Investing activities:
|
||||||||||||
Increase in investment in subsidiaries
|
— | (54,500 | ) | (47,363 | ) | |||||||
Purchase of mortgage backed securities
|
(2,500 | ) | — | — | ||||||||
Net cash used for investing activities
|
(2,500 | ) | (54,500 | ) | (47,363 | ) | ||||||
|
||||||||||||
Financing activities:
|
||||||||||||
Issuance of common stock
|
3,709 | 49,565 | 26,851 | |||||||||
Issuance of preferred stock
|
— | — | 52,625 | |||||||||
Cash dividends paid
|
(6,718 | ) | (6,207 | ) | (5,210 | ) | ||||||
Treasury stock, net of reissuance
|
— | — | — | |||||||||
Net cash (used for) provided by financing activities
|
(3,009 | ) | 43,358 | 74,266 | ||||||||
|
||||||||||||
(Decrease) increase in cash
|
(6,475 | ) | (11,220 | ) | 27,513 | |||||||
Cash at beginning of period
|
19,521 | 30,741 | 3,228 | |||||||||
Cash at end of period
|
$ | 13,046 | $ | 19,521 | $ | 30,741 |
For the Year Ended December 31, 2011:
|
|
WSFS Bank
|
|
Cash Connect
|
|
|
Trust & Wealth Management
|
|
Total
|
|
|||
(In Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External customer revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
$
|
149,314
|
|
$
|
—
|
|
$
|
9,328
|
|
$
|
158,642
|
|
Noninterest income
|
|
|
35,623
|
|
|
15,619
|
|
|
12,346
|
|
|
63,588
|
|
Total external customer revenues
|
|
|
184,937
|
|
|
15,619
|
|
|
21,674
|
|
|
222,230
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intersegment revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
4,074
|
|
|
—
|
|
|
9,682
|
|
|
13,756
|
|
Noninterest income
|
|
|
7,583
|
|
|
759
|
|
|
—
|
|
|
8,342
|
|
Total intersegment revenues
|
|
|
11,657
|
|
|
759
|
|
|
9,682
|
|
|
22,098
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
|
196,594
|
|
|
16,378
|
|
|
31,356
|
|
|
244,328
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External customer expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
31,345
|
|
|
—
|
|
|
1,260
|
|
|
32,605
|
|
Noninterest expenses
|
|
|
107,652
|
|
|
7,882
|
|
|
11,943
|
|
|
127,477
|
|
Provision for loan loss
|
|
|
26,641
|
|
|
—
|
|
|
1,355
|
|
|
27,996
|
|
Total external customer expenses
|
|
|
165,638
|
|
|
7,882
|
|
|
14,558
|
|
|
188,078
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intersegment expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
9,682
|
|
|
895
|
|
|
3,179
|
|
|
13,756
|
|
Noninterest expenses
|
|
|
759
|
|
|
1,570
|
|
|
6,013
|
|
|
8,342
|
|
Total intersegment expenses
|
|
|
10,441
|
|
|
2,465
|
|
|
9,192
|
|
|
22,098
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses
|
|
|
176,079
|
|
|
10,347
|
|
|
23,750
|
|
|
210,176
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before taxes and extraordinary items
|
|
$
|
20,515
|
|
$
|
6,031
|
|
$
|
7,606
|
|
$
|
34,152
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax provision
|
|
|
|
|
|
|
|
|
|
|
|
11,475
|
|
Consolidated net income
|
|
|
|
|
|
|
|
|
|
|
$
|
22,677
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
48,107
|
|
$
|
416,949
|
|
$
|
2,961
|
|
$
|
468,017
|
|
Other segment assets
|
|
|
3,618,744
|
|
|
2,155
|
|
|
200,092
|
|
|
3,820,991
|
|
|
|
$
|
3,666,851
|
|
$
|
419,104
|
|
$
|
203,053
|
|
$
|
|
|
Total segment assets at December 31, 2011
|
4,289,008
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
$
|
8,877
|
|
$
|
1,291
|
|
$
|
326
|
|
$
|
10,494
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, 2010:
|
|
WSFS Bank
|
|
Cash Connect
|
|
|
Trust & Wealth Management
|
|
Total
|
||||
(In Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External customer revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
$
|
154,790
|
|
$
|
—
|
|
$
|
7,613
|
|
$
|
162,403
|
|
Noninterest income
|
|
|
31,849
|
|
|
13,231
|
|
|
5,035
|
|
|
50,115
|
|
Total external customer revenues
|
|
|
186,639
|
|
|
13,231
|
|
|
12,648
|
|
|
212,518
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intersegment revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
3,988
|
|
|
—
|
|
|
5,138
|
|
|
9,126
|
|
Noninterest income
|
|
|
6,652
|
|
|
755
|
|
|
—
|
|
|
7,407
|
|
Total intersegment revenues
|
|
|
10,640
|
|
|
755
|
|
|
5,138
|
|
|
16,533
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
|
197,279
|
|
|
13,986
|
|
|
17,786
|
|
|
229,051
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External customer expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
40,629
|
|
|
—
|
|
|
1,103
|
|
|
41,732
|
|
Noninterest expenses
|
|
|
95,580
|
|
|
5,956
|
|
|
7,796
|
|
|
109,332
|
|
Provision for loan loss
|
|
|
40,084
|
|
|
—
|
|
|
1,799
|
|
|
41,883
|
|
Total external customer expenses
|
|
|
176,293
|
|
|
5,956
|
|
|
10,698
|
|
|
192,947
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intersegment expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
5,138
|
|
|
930
|
|
|
3,058
|
|
|
9,126
|
|
Noninterest expenses
|
|
|
755
|
|
|
1,534
|
|
|
5,118
|
|
|
7,407
|
|
Total intersegment expenses
|
|
|
5,893
|
|
|
2,464
|
|
|
8,176
|
|
|
16,533
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses
|
|
|
182,186
|
|
|
8,420
|
|
|
18,874
|
|
|
209,480
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before taxes
|
|
$
|
15,093
|
|
$
|
5,566
|
|
$
|
(1,088)
|
|
$
|
19,571
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax provision
|
|
|
|
|
|
|
|
|
|
|
|
5,454
|
|
Consolidated net income
|
|
|
|
|
|
|
|
|
|
|
$
|
14,117
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
46,803
|
|
$
|
326,573
|
|
$
|
3,383
|
|
$
|
376,759
|
|
Other segment assets
|
|
|
3,350,338
|
|
|
13,196
|
|
|
213,225
|
|
|
3,576,759
|
|
|
|
$
|
3,397,141
|
|
$
|
339,769
|
|
$
|
216,608
|
|
$
|
3,953,518
|
|
Total segment assets at December 31, 2010
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
$
|
5,775
|
|
$
|
174
|
|
$
|
2
|
|
$
|
5,951
|
|
For the Year Ended December 31, 2009:
|
|
WSFS Bank
|
|
Cash Connect
|
|
|
1st Reverse
|
Trust & Wealth Management
|
|
Total
|
|
|||||
(In Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External customer revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
$
|
150,151
|
|
$
|
—
|
|
$
|
32
|
|
$
|
7,547
|
|
$
|
157,730
|
|
Noninterest income
|
|
|
33,192
|
|
|
11,992
|
|
|
2,023
|
|
|
3,034
|
|
|
50,241
|
|
Total external customer revenues
|
|
|
183,343
|
|
|
11,992
|
|
|
2,055
|
|
|
10,581
|
|
|
207,971
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intersegment revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
4,050
|
|
|
—
|
|
|
—
|
|
|
5,248
|
|
|
9,298
|
|
Noninterest income
|
|
|
6,914
|
|
|
408
|
|
|
—
|
|
|
—
|
|
|
7,322
|
|
Total intersegment revenues
|
|
|
10,964
|
|
|
408
|
|
|
—
|
|
|
5,248
|
|
|
16,620
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
|
194,307
|
|
|
12,400
|
|
|
2,055
|
|
|
15,829
|
|
|
224,591
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External customer expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
51,145
|
|
|
—
|
|
|
—
|
|
|
1,941
|
|
|
53,086
|
|
Noninterest expenses
|
|
|
93,463
|
|
|
5,387
|
|
|
4,917
|
|
|
4,737
|
|
|
108,504
|
|
Provision for loan loss
|
|
|
46,389
|
|
|
—
|
|
|
—
|
|
|
1,422
|
|
|
47,811
|
|
Total external customer expenses
|
|
|
190,997
|
|
|
5,387
|
|
|
4,917
|
|
|
8,100
|
|
|
209,401
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intersegment expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
5,248
|
|
|
627
|
|
|
—
|
|
|
3,423
|
|
|
9,298
|
|
Noninterest expenses
|
|
|
408
|
|
|
905
|
|
|
261
|
|
|
5,748
|
|
|
7,322
|
|
Total intersegment expenses
|
|
|
5,656
|
|
|
1,532
|
|
|
261
|
|
|
9,171
|
|
|
16,620
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expenses
|
|
|
196,653
|
|
|
6,919
|
|
|
5,178
|
|
|
17,271
|
|
|
226,021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before taxes
|
|
$
|
(2,346)
|
|
$
|
5,481
|
|
$
|
(3,123)
|
|
$
|
(1,442)
|
|
$
|
(1,430)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax provision (benefit)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,093)
|
|
Consolidated net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
663
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
53,222
|
|
$
|
264,903
|
|
$
|
—
|
|
$
|
3,624
|
|
$
|
321,749
|
|
Other segment assets
|
|
|
3,252,919
|
|
|
14,861
|
|
|
—
|
|
|
158,978
|
|
|
3,426,758
|
|
|
|
$
|
3,306,141
|
|
$
|
279,764
|
|
$
|
—
|
|
$
|
162,602
|
|
$
|
|
|
Total segment assets at December 31, 2009
|
|
3,748,507
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
$
|
6,287
|
|
$
|
474
|
|
$
|
—
|
|
$
|
15
|
|
$
|
6,776
|
|
Goodwill resulting from CB&T acquisition reported on Form 10-K for the year ended December 31, 2010
|
|
||||||||||
$15,876
|
|||||||||||
Effect of adjustments to:
|
|
||||||||||
|
Loans
|
801
|
|||||||||
|
Premises and equipment
|
250
|
|||||||||
|
Other liabilities, net
|
350
|
|||||||||
Adjusted goodwill resulting from acquisition of CB&T as of December 31, 2011
|
$17,277
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
|
|
|
|
|
Net
|
|||
Intangible
|
Accumulated
|
Intangible
|
||||||||
Assets
|
Amortization
|
Assets
|
||||||||
|
|
(In Thousands)
|
||||||||
December 31, 2011
|
|
|
|
|
|
|
|
|
|
|
Core deposits
|
|
$
|
4,370
|
|
$
|
(1,393
|
)
|
|
$
|
2,977
|
Other
|
|
|
4,865
|
|
|
(1,703
|
)
|
|
|
3,162
|
Total other intangible assets
|
|
$
|
9,235
|
|
$
|
(3,096
|
)
|
|
$
|
6,139
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2010
|
|
|
|
|
|
|
|
|
|
|
Core deposits
|
|
$
|
4,370
|
|
$
|
(714
|
)
|
|
$
|
3,656
|
Other
|
|
|
4,834
|
|
|
(1,183
|
)
|
|
|
3,651
|
Total other intangible assets
|
|
$
|
9,204
|
|
$
|
(1,897
|
)
|
|
$
|
7,307
|
|
|
|
Amortization
|
||
(In Thousands)
|
|
|
of Intangibles
|
||
2012
|
|
|
$
|
1,092
|
|
2013
|
|
|
|
916
|
|
2014
|
|
|
|
758
|
|
2015
|
|
|
|
711
|
|
2016
|
|
|
|
465
|
|
Thereafter
|
|
|
|
2,197
|
|
Total
|
|
|
$
|
6,139
|
o
|
On February 19, 2010, we reported in a regulatory filing that an executive of an armored car company that served as a vendor for several of Cash Connect’s customers, engaged in embezzlement. In the first quarter of 2010, we recorded a $4.5 million loss related to funds not immediately recoverable by Cash Connect. During the third quarter of 2010, we received a full recovery of the previously-recorded $4.5 million charge. The loss and subsequent recovery were reflected in noninterest expenses in the quarters they were recorded.
|
o
|
$1.7 million in costs related to the acquisition and integration of Christiana Bank & Trust mainly reflected in professional fees, salaries, benefits and other compensation and data processing and operation expense.
|
o
|
A $1.9 million charge resulting from management’s decision to conduct an orderly wind-down of 1
st
Reverse. The charge represents the write-off of all related goodwill and intangibles, uncollectible receivables and our remaining investment in that subsidiary as well as miscellaneous payables arising during the course of winding-down this subsidiary (reflected in other operating expenses).
|
o
|
A $1.7 million insurance premium charged by the FDIC representing our share of the special assessment levied on the banking industry at June 30, 2009 (reflected in FDIC expenses).
|
o
|
A $1.5 million charge related to fraudulent wire transfer activity affecting the accounts of two customers ($1.3 million reflected in other operating expense and $0.2 million reflected in professional fees).
|
o
|
A $953,000 expense related to due diligence on an acquisition prospect, discussions of which have terminated (reflected in professional fees).
|
QUARTERLY FINANCIAL SUMMARY (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
12/31/2011
|
|
9/30/2011
|
|
6/30/2011
|
|
3/31/2011
|
|
12/31/2010
|
9/30/2010
|
6/30/2010
|
3/31/2010
|
|
||||||||||||
(In Thousands, Except Per Share Data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
$
|
39,585
|
|
$
|
40,091
|
|
$
|
39,814
|
|
$
|
39,152
|
|
$
|
39,812
|
|
$
|
40,579
|
|
$
|
41,454
|
|
$
|
40,558
|
|
Interest expense
|
|
|
7,169
|
|
|
7,911
|
|
|
8,627
|
|
|
8,898
|
|
|
9,359
|
|
|
10,402
|
|
|
10,756
|
|
|
11,215
|
|
Net interest income
|
|
|
32,416
|
|
|
32,180
|
|
|
31,187
|
|
|
30,254
|
|
|
30,453
|
|
|
30,177
|
|
|
30,698
|
|
|
29,343
|
|
Provision for loan losses
|
|
|
6,948
|
|
|
6,558
|
|
|
8,582
|
|
|
5,908
|
|
|
9,903
|
|
|
9,976
|
|
|
10,594
|
|
|
11,410
|
|
Net interest income after provision
|
|
|
25,468
|
|
|
25,622
|
|
|
22,605
|
|
|
24,346
|
|
|
20,550
|
|
|
20,201
|
|
|
20,104
|
|
|
17,933
|
|
for loan losses
|
|
||||||||||||||||||||||||
Noninterest income
|
|
|
16,996
|
|
|
16,924
|
|
|
16,029
|
|
|
13,639
|
|
|
12,113
|
|
|
14,425
|
|
|
12,436
|
|
|
11,141
|
|
Noninterest expenses
|
|
|
33,026
|
|
|
32,412
|
|
|
30,652
|
|
|
31,387
|
|
|
29,868
|
|
|
22,092
|
|
|
27,739
|
|
|
29,633
|
|
Income (loss) before taxes
|
|
|
9,438
|
|
|
10,134
|
|
|
7,982
|
|
|
6,598
|
|
|
2,795
|
|
|
12,534
|
|
|
4,801
|
|
|
(559
|
)
|
Income tax provision (benefit)
|
|
|
3,276
|
|
|
3,348
|
|
|
2,459
|
|
|
2,392
|
|
|
715
|
|
|
4,312
|
|
|
1,500
|
|
|
(1,073
|
)
|
Net Income
|
|
|
6,162
|
|
|
6,786
|
|
|
5,523
|
|
|
4,206
|
|
|
2,080
|
|
|
8,222
|
|
|
3,301
|
|
|
514
|
|
Dividends on preferred stock and
|
|
|
693
|
|
|
692
|
|
|
693
|
|
|
692
|
|
|
694
|
|
|
692
|
|
|
692
|
|
|
692
|
|
accretion of discount
|
|
||||||||||||||||||||||||
Net Income (loss) allocable to common
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
stockholders
|
|
$
|
5,469
|
|
|
6,094
|
|
|
4,830
|
|
|
3,514
|
|
|
1,386
|
|
|
7,530
|
|
|
2,609
|
|
|
(178
|
)
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.63
|
|
|
0.71
|
|
|
0.56
|
|
|
0.41
|
|
|
0.16
|
|
|
0.95
|
|
|
0.37
|
|
|
(0.03
|
)
|
Diluted
|
|
|
0.63
|
|
|
0.70
|
|
|
0.55
|
|
|
0.40
|
|
|
0.16
|
|
|
0.94
|
|
|
0.36
|
|
|
(0.03
|
)
|
/s/ Mark A. Turner
|
|
/s/ Stephen A. Fowle
|
|
Mark A. Turner
|
|
Stephen A. Fowle
|
|
President and Chief Executive Officer
|
|
Executive Vice President and
|
|
Chief Financial Officer
|
|||
|
|
|
|
March 15, 2012
|
|
|
|
(a)
|
Security Ownership of Certain Beneficial Owners
|
|
(b)
|
Security Ownership of Management
|
|
(c)
|
We know of no arrangements, including any pledge by any person of our securities, the operation of which may at a subsequent date result in a change in control of the registrant
|
|
(d)
|
Securities Authorized for Issuance Under Equity Compensation Plans
|
Equity Compensation Plan Information
|
||||||||||||
|
|
|
|
|
|
|||||||
|
|
(a)
|
(b)
|
|
(c)
|
|||||||
|
|
|
|
|
|
|||||||
|
|
Number of Securities to be issued upon exercise of outstanding options, warrants and rights
|
Weighted-Average exercise price of outstanding options, warrants and rights
|
|
Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column) (a)
|
|||||||
|
|
|
|
|
|
|||||||
Equity compensation plans approved by stockholders (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
423,558
|
|
|
$
|
42.84
|
|
|
|
325,177
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity compensation plans not approved by stockholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
|
|
|
423,558
|
|
|
$
|
42.84
|
|
|
|
325,177
|
|
|
(a)
|
Listed below are all financial statements and exhibits filed as part of this report, and are incorporated by reference.
|
|
1.
|
The consolidated statements of Condition of WSFS Financial Corporation and subsidiary as of December 31, 2011 and 2010, and the related consolidated statements of income, changes in stockholders’ equity and cash flows for each of the years in the three year period ended December 31, 2011, together with the related notes and the report of KPMG LLP, independent registered public accounting firm.
|
|
2.
|
Schedules omitted as they are not applicable.
|
3.1
|
Amended and Restated Certificate of Incorporation of WSFS Financial Corporation.
|
3.2
|
Amended and Restated Bylaws of WSFS Financial Corporation, incorporated herein by reference to Exhibit 3.2 of the Registrant’s Current Report on Form 8-K filed on October 27, 2008.
|
3.3
|
Certificate of Designations for the Fixed Rate Cumulative Perpetual Preferred Stock, Series A, incorporated herein by reference to Exhibit 3.1 of the Registrant's Current Report on Form 8-K filed on January 23, 2009.
|
4.1
|
Form of Certificate for the Series A Preferred Stock, incorporated herein by reference to Exhibit 4.1 of the Registrant's Current Report on Form 8-K filed on January 23, 2009.
|
4.2
|
Warrant for Purchase of Shares of Common Stock, incorporated herein by reference to Exhibit 4.2 of the Registrant's Current Report on Form 8-K filed on January 23, 2009.
|
4.3
|
Warrant for Purchase of Shares of Common Stock, incorporated herein by reference to Exhibit 10.2 of the Registrant’s Current Report on Form 8-K filed on July 27, 2009.
|
10.1
|
WSFS Financial Corporation, 1994 Short Term Management Incentive Plan Summary Plan Description is incorporated herein by reference to Exhibit 10.7 of the Registrant’s Annual Report on Form 10-K for the year ended December 31, 1994.
|
10.2
|
Amended and Restated Wilmington Savings Fund Society, Federal Savings Bank 1997 Stock Option Plan is incorporated herein by reference to the Registrant’s Registration Statement on Form S-8 (File No. 333-26099) filed with the Commission on April 29, 1997.
|
10.3
|
2000 Stock Option and Temporary Severance Agreement among Wilmington Savings Fund Society, Federal Savings Bank, WSFS Financial Corporation and Marvin N. Schoenhals on February 24, 2000 is incorporated herein by reference to Exhibit 10.4 of the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2000.
|
10.4
|
WSFS Financial Corporation Severance Policy for Executive Vice Presidents dated February 28, 2008.
|
10.5
|
WSFS Financial Corporation’s 2005 Incentive Plan is incorporated herein by reference to appendix A of the Registrant’s Definitive Proxy Statement on Schedule 14-A for the 2005 Annual Meeting of Stockholders.
|
10.6
|
Amendment to WSFS Financial Corporation 2005 Incentive Plan for IRC 409A and FAS 123R dated December 31, 2008.
|
10.7
|
Amendment to the WSFS Financial Corporation Severance Policy for Executive Vice Presidents dated December 31, 2008.
|
10.8
|
Letter Agreement, dated January 23, 2009, between WSFS Financial Corporation and the United States Department of Treasury, with respect to the issuance and sale of the Series A Preferred Stock and the Warrant, incorporated herein by reference to Exhibit 10.1 of the Registrant's Current Report on Form 8-K filed on January 23, 2009.
|
10.9
|
Form of Waiver, executed by Messrs. Marvin N. Schoenhals, Mark A. Turner, Stephen A. Fowle, Richard M. Wright, Rodger Levenson and Mrs. Barbara J. Fischer, incorporated herein by reference to Exhibit 10.2 of the Registrant's Current Report on Form 8-K filed on January 23, 2009.
|
10.10
|
Form of Letter Agreement, executed by Messrs. Marvin N. Schoenhals, Mark A. Turner, Stephen A. Fowle, Richard M. Wright, Rodger Levenson and Mr. Barbara J. Fischer, incorporated herein by reference to Exhibit 10.3 of the Registrant's Current Report on Form 8-K filed on January 23, 2009.
|
10.11
|
Securities Purchase Agreement, dated July 27, 2009, between WSFS Financial Corporation and Peninsula Investment Partners, L.P., incorporated herein by reference to Exhibit 10.1 of the Registrants Current Report on Form 8-K on July 27, 2009.
|
21
|
Subsidiaries of Registrant.
|
23
|
Consent of KPMG LLP
|
31.1
|
Certification of CEO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
31.2
|
Certification of CFO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
32
|
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
99.1
|
Certification of CEO and CFO pursuant to Section 5221
|
101.INS
|
XBRL Instance Document *
|
101.SCH
|
XBRL Schema Document *
|
101.CAL
|
XBRL Calculation Linkbase Document *
|
101.LAB
|
XBRL Labels Linkbase Document *
|
101.PRE
|
XBRL Presentation Linkbase Document *
|
101.DEF
|
XBRL Definition Linkbase Document *
|
*
|
Submitted as Exhibits 101 to this Form 10-K are documents formatted in XBRL (Extensible Business Reporting Language). Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability.
|
|
SIGNATURES
|
|
|
|
||
|
|
|
|
|
|
|
|
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
|||||
|
||||||
|
||||||
|
|
|
|
WSFS FINANCIAL CORPORATION
|
||
|
|
|
|
|||
|
|
|
|
|||
|
Date:
|
March 15, 2012
|
BY:
|
/s/ Mark A. Turner
|
||
|
|
|
|
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Mark A. Turner
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President and Chief Executive Officer
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Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
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Date:
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March 15, 2012
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BY:
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/s/ Marvin N. Schoenhals
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Marvin N. Schoenhals
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Chairman
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Date:
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March 15, 2012
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BY:
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/s/ Mark A. Turner
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Mark A. Turner
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President and Chief Executive Officer
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Date:
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March 15, 2012
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BY:
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/s/ Charles G. Cheleden
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Charles G. Cheleden
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Vice Chairman and Lead Director
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Date:
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March 15, 2012
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BY:
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/s/ Jennifer W. Davis
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Jennifer W. Davis
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Director
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Date:
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March 15, 2012
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BY:
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/s/ Donald W. Delson
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Donald W. Delson
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Director
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Date:
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March 15, 2012
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BY:
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/s/ Anat Bird
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Anat Bird
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Director
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Date:
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March 15, 2012
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BY:
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/s/ William B. Chandler, III
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William B. Chandler, III
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Director
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Date:
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March 15, 2012
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BY:
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/s/ Zissimos A. Frangopoulos
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Zissimos A. Frangopoulos
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Director
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Date:
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March 15, 2012
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BY:
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/s/ Dennis E. Klima
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Dennis E. Klima
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Director
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Date:
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March 15, 2012
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BY:
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/s/ Calvert A. Morgan, Jr.
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Calvert A. Morgan, Jr.
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Director
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Date:
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March 15, 2012
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BY:
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/s/ Thomas P. Preston
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Thomas P. Preston
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Director
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Date:
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March 15, 2012
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BY:
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/s/ Scott E. Reed
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Scott E. Reed
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Director
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Date:
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March 15, 2012
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BY:
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/s/ Claibourne D. Smith
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Claibourne D. Smith
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Director
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Date:
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March 15, 2012
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BY:
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/s/ R. Ted Weschler
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R. Ted Weschler
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Director
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Date:
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March 15, 2012
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BY:
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/s/ Stephen A. Fowle
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Stephen A. Fowle
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Executive Vice President and
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Chief Financial Officer
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Date:
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March 15, 2012
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BY:
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/s/ Robert F. Mack
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Robert F. Mack
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Senior Vice President and Controller
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