ALAB Astera Labs Inc

Alabama National BanCorporation ("ANB") (NASDAQ/NM:ALAB) today announced record earnings for the quarter ended June 30, 2005. For the 2005 second quarter, ANB reported earnings of $16.2 million, up 22.3% from the 2004 second quarter. Diluted earnings per share of $0.93 were up 11.1% from the year ago quarter. Diluted cash earnings per share were $0.96, up 10.0% from the 2004 second quarter. Total revenue grew to $67.3 million in the 2005 second quarter, up 14.2% from $58.9 million in the year ago second quarter. Noninterest income represented 27.1% of second quarter 2005 total revenue, down from 32.7% in the 2004 second quarter. ANB's taxable equivalent net interest margin was 3.93% for the 2005 second quarter, up 28 basis points from the 2004 second quarter and down 1 basis point from the first quarter of 2005. Year-to-date earnings were $31.7 million, an increase of 29.0% over the $24.6 million in earnings reported for the same period in 2004. Diluted earnings per share for the first six months of 2005 were $1.82, up 11.2% from the $1.64 earned in the first half of 2004. Six months 2005 cash earnings per diluted share of $1.88 were up 11.0% over 2004 levels. "I am proud of our employees and their consistent performance. We are encouraged by the continuation of loan growth and earnings per share growth while maintaining strong asset quality," said John H. Holcomb, III, Chairman and CEO. "Our markets present us with a number of opportunities, making our job one of execution. Our employees continue to perform well in executing our business plan on behalf of our shareowners." Total assets at June 30, 2005 were $5.7 billion. Loan growth (excluding loans held for sale) was 25.0% on an annualized basis during the 2005 second quarter, while securities purchases continued to be moderate, with ending balances down $24 million from March 31, 2005 levels. Year-to-date annualized loan growth was 21.2%. Deposits grew at an 11.1% annualized rate from March 31, 2005 and at a 13.1% annualized rate from December 31, 2004, ending the June 30, 2005 period at $4.2 billion. Quarter-end shareowners' equity was $549 million, or $32.26 per share, and tangible book value per share was $23.20. During the 2005 second quarter, ANB recognized $180 thousand in net charge-offs, or an annualized rate of 0.02% of average loans. Combined with first quarter net charge-offs, ANB's year-to-date loss of $482 thousand represents a rate of 0.03% in net losses to average loans and leases. Quarter-end nonperforming assets were 0.19% of period end loans and other real estate. The allowance for loan losses covered nonperforming loans 714%. ANB is a bank holding company operating 85 banking locations through ten bank subsidiaries in Alabama, Florida and Georgia. Alabama subsidiaries include: First American Bank in north central Alabama; Bank of Dadeville; and Alabama Exchange Bank in Tuskegee. Florida subsidiaries are: First Gulf Bank, N.A., in Escambia County, Florida and Baldwin County, AL; Community Bank of Naples, N.A.; Millennium Bank in Gainesville; Public Bank in metropolitan Orlando; CypressCoquina Bank in Ormond Beach; and Indian River National Bank in Vero Beach. ANB has one subsidiary in Georgia, Georgia State Bank in metropolitan Atlanta. ANB provides full banking services to individuals and businesses. Brokerage services are provided to customers through First American Bank's wholly owned subsidiary, NBC Securities, Inc. Investments are not bank guaranteed, not FDIC insured and may lose value. Insurance services are provided through ANB Insurance Services, Inc., a wholly owned subsidiary of First American Bank. Alabama National BanCorporation common stock is traded on the NASDAQ National Market System under the symbol "ALAB." Conference Call Instructions: Alabama National will discuss financial results for the second quarter completed June 30, 2005 as well as its goals and general outlook for the remainder of 2005 in a conference call to be held Wednesday, July 20, 2005 at 9:00 a.m. Central Time. A listen-only simulcast and replay of Alabama National's conference call will be available on-line at the following Internet links: www.alabamanational.com, under "In The News," or www.viavid.net, on July 20, beginning at 9:00 a.m. Central Time. The on-line replay will follow immediately and continue for 30 days. For live interactive access to the teleconference, please dial 1-800-938-1464 at 9:00 a.m. Central Time on July 20. For those without Internet access, a telephonic replay will be available through August 20 by dialing 1-800-648-1687 and entering Conference ID number 7250201. Many of the comparisons of financial data from period to period presented in the narrative of this release have been rounded from actual values reported in the attached selected unaudited financial tables. The percentage changes presented above are based on a comparison of the actual values recorded in the attached tables, not the rounded values. This press release, including the attached selected unaudited financial tables which are a part of this release, contains financial information determined by methods other than in accordance with generally accepted accounting principles ("GAAP"). These "non-GAAP" financial measures are "cash earnings" (cash earnings per share), "tangible book value" (tangible book value per share), "return on average tangible equity" and "return on average tangible assets." ANB's management uses these non-GAAP measures in its analysis of ANB's performance. Cash earnings is defined as net income plus amortization expense (net of tax) applicable to intangible assets that do not qualify as regulatory capital. Cash earnings per basic and diluted share is defined as cash earnings divided by basic and diluted common shares outstanding. ANB's management includes cash earnings measures to compare the company's earnings exclusive of non-cash amortization expense and because it is a measure used by many investors as part of their analysis of ANB's performance. Tangible book value is defined as total equity reduced by recorded intangible assets. Tangible book value per share is defined as tangible book value divided by total common shares outstanding. This measure is important to many investors in the marketplace that are interested in changes from period to period in book value per share exclusive of changes in intangible assets. Goodwill, an intangible asset that is recorded in a purchase business combination, has the effect of increasing total book value while not increasing the tangible assets of the company. For companies such as Alabama National that have engaged in multiple business combinations, purchase accounting requires the recording of significant amounts of goodwill related to such transactions. Return on average tangible equity is defined as earnings for the period (annualized for the quarterly period) divided by average equity reduced by average goodwill and other intangible assets. Return on average tangible assets is defined as earnings for the period (annualized for the quarterly period) divided by average assets reduced by average goodwill and other intangible assets. ANB's management includes these measures because it believes that they are important when measuring the company's performance exclusive of the effects of goodwill and other intangibles recorded in recent acquisitions, and these measures are used by many investors as part of their analysis of ANB. These disclosures should not be viewed as a substitute for results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Refer to the "Reconciliation Table" in the attached schedules for a more detailed analysis of these non-GAAP performance measures and the most directly comparable GAAP measures. This press release contains forward-looking statements as defined by federal securities laws. Statements contained in this press release which are not historical facts are forward-looking statements. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. ANB undertakes no obligation to update these statements following the date of this press release. In addition, ANB, through its senior management, may make from time to time forward-looking public statements concerning the matters described herein. Such forward-looking statements are necessarily estimates reflecting the best judgment of ANB's senior management based upon current information and involve a number of risks and uncertainties. Certain factors which could affect the accuracy of such forward-looking statements are identified in the public filings made by ANB with the Securities and Exchange Commission, and forward looking statements contained in this press release or in other public statements of ANB or its senior management should be considered in light of those factors. There can be no assurance that such factors or other factors will not affect the accuracy of such forward-looking statements. -0- *T ALABAMA NATIONAL BANCORPORATION (Unaudited Financial Highlights) (in thousands, except per share amounts and percentages) Three Months Ended June 30, ---------------------- Percentage 2005 2004 Change (b) ---------- ---------- ---------- Net interest income $ 49,087 $ 39,634 23.9% Noninterest income 18,229 19,288 (5.5) Total revenue 67,316 58,922 14.2 Provision for loan and lease losses 1,991 1,278 55.8 Noninterest expense 40,715 37,612 8.3 Net income before income taxes 24,610 20,032 22.9 Income taxes 8,415 6,788 24.0 Net income $ 16,195 $ 13,244 22.3 Weighted average common and common equivalent shares outstanding Basic 17,184 15,555 10.5% Diluted 17,394 15,806 10.0 Net income per common share Basic $ .94 $ .85 10.7% Diluted .93 .84 11.1 Cash earnings (a) Total $ 16,717 $ 13,814 21.0% Basic .97 .89 9.5 Diluted .96 .87 10.0 Cash dividends declared on common stock $ .3375 $ .3125 Return on average assets 1.17% 1.10% Return on average tangible assets 1.20 1.13 Return on average equity 11.93 12.55 Return on average tangible equity 16.66 18.52 Noninterest Income Service charge income $ 4,154 $ 4,520 (8.1)% Investment services income 858 3,273 (73.8) Securities brokerage and trust income 4,920 4,197 17.2 Gain on sale of mortgages 3,417 3,491 (2.1) Gain (loss) on disposal of assets 283 57 396.5 Bank owned life insurance 745 683 9.1 Insurance commissions 833 779 6.9 Other 3,019 2,288 31.9 ---------------------- Total noninterest income $ 18,229 $ 19,288 (5.5) ====================== (a) Cash basis earnings exclude the effect on earnings of amortization expense applicable to intangible assets that do not qualify as regulatory capital. (b) Percentage change based on actual not rounded values. Six Months Ended June 30, ---------------------- Percentage 2005 2004 Change (b) ---------- ---------- ---------- Net interest income $ 95,992 $ 74,304 29.2% Noninterest income 35,012 36,928 (5.2) Total revenue 131,004 111,232 17.8 Provision for loan and lease losses 3,535 2,506 41.1 Noninterest expense 79,376 71,783 10.6 Net income before income taxes 48,093 36,943 30.2 Income taxes 16,418 12,392 32.5 Net income $ 31,675 $ 24,551 29.0 Weighted average common and common equivalent shares outstanding Basic 17,178 14,751 16.5% Diluted 17,391 14,994 16.0 Net income per common share Basic $ 1.84 $ 1.66 10.8% Diluted 1.82 1.64 11.2 Cash earnings (a) Total $ 32,756 $ 25,454 28.7% Basic 1.91 1.73 10.5 Diluted 1.88 1.70 11.0 Cash dividends declared on common stock $ .675 $ .625 Return on average assets 1.17% 1.09% Return on average tangible assets 1.20 1.12 Return on average equity 11.83 12.80 Return on average tangible equity 16.59 17.64 Noninterest Income Service charge income $ 8,084 $ 8,331 (3.0)% Investment services income 2,003 7,180 (72.1) Securities brokerage and trust income 9,441 8,296 13.8 Gain on sale of mortgages 6,087 6,033 .9 Gain (loss) on disposal of assets 711 37 NM Securities gains 72 - NM Bank owned life insurance 1,399 1,410 (.8) Insurance commissions 1,628 1,737 (6.3) Other 5,587 3,904 43.1 ---------------------- Total noninterest income $ 35,012 $ 36,928 (5.2) ====================== (a) Cash basis earnings exclude the effect on earnings of amortization expense applicable to intangible assets that do not qualify as regulatory capital. (b) Percentage change based on actual not rounded values. NM - Not meaningful June 30, December 31, Percentage 2005 2004 Change ---------- ---------- ---------- Total assets $5,686,127 $5,315,869 7.0% Earning assets 5,172,838 4,841,255 6.8 Securities (a) 1,171,281 1,200,407 (2.4) Loans held for sale 32,247 22,313 44.5 Loans and leases, net of unearned income 3,848,687 3,495,701 10.1 Allowance for loan and lease losses 49,637 46,584 6.6 Deposits 4,184,167 3,934,723 6.3 Short-term borrowings 83,225 30,500 172.9 Long-term debt 311,512 393,688 (20.9) Stockholders' equity 549,297 529,543 3.7 (a) Excludes trading securities ASSET QUALITY ANALYSIS (in thousands, except percentages) As of / For the Three Months Ended June 30, March 31, June 30, 2005 2005 2004 --------- --------- --------- Nonaccrual loans $ 6,949 $ 6,374 $ 8,307 Restructured loans - - - Loans past due 90 days or more and still accruing 0 0 0 Total nonperforming loans 6,949 6,374 8,307 Other real estate owned 450 1,079 1,969 Total nonperforming assets 7,399 7,453 10,276 Total non performing assets as a percentage of period-end loans and other real estate (a) 0.19% 0.20% 0.32% Allowance for loan and lease losses 49,637 47,826 43,484 Provision for loan and lease losses 1,991 1,544 1,278 Loans charged off 529 489 1,790 Loan recoveries 349 187 1,604 Net loan and lease losses 180 302 186 Allowance for loan and lease losses as a percentage of period-end loans and leases (a) 1.29% 1.31% 1.36% Allowance for loan and lease losses as a percentage of period-end nonperforming loans 714.30 750.33 523.46 Net losses to average loans and leases (annualized) 0.02 0.03 0.02 For the Six Months Ended June 30, --------------------- Percentage 2005 2004 Change --------- ---------- ---------- Provision for loan and lease losses $ 3,535 $ 2,506 41.1% Loans charged off 1,018 3,119 (67.4) Loan recoveries 536 1,994 (73.1) Net loan and lease losses 482 1,125 (57.2) Net losses to average loans and leases (annualized) 0.03% 0.07% (a) Excludes loans held for sale TAXABLE EQUIVALENT YIELDS/RATES Three Months Ended June 30, March 31, June 30, 2005 2005 2004 -------- -------- -------- Interest income: Interest and fees on loans 6.48% 6.24% 5.57% Interest on securities: Taxable 4.17 4.17 3.91 Non-taxable 6.54 6.24 6.10 Total interest earning assets 5.91 5.68 5.08 Interest expense: Interest on deposits 2.11 1.85 1.52 Interest on short-term borrowing 3.53 3.57 1.79 Interest on long-term debt 4.12 3.63 3.33 Total interest bearing liabilities 2.36 2.07 1.66 Net interest spread 3.55 3.61 3.42 Net interest margin 3.93 3.94 3.65 Six Months Ended June 30, ---------------------- 2005 2004 ---------- ---------- Interest income: Interest and fees on loans 6.36% 5.61% Interest on securities: Taxable 4.17 3.86 Non-taxable 6.39 6.30 Total interest earning assets 5.80 5.12 Interest expense: Interest on deposits 1.98 1.56 Interest on short-term borrowing 3.54 1.71 Interest on long-term debt 3.86 3.35 Total interest bearing liabilities 2.22 1.69 Net interest spread 3.58 3.43 Net interest margin 3.93 3.65 STOCKHOLDERS' EQUITY AND CAPITAL RATIOS June 30, December 31, 2005 2004 --------- ---------- Stockholders' Equity: Equity to assets 9.66% 9.96% Leverage ratio 8.47 8.44 Book value per common share (a) $ 32.26 $ 31.15 Tangible book value per common share (a)(b) 23.20 21.99 Ending shares outstanding 17,025 16,999 (a) Includes a cumulative mark to market adjustment to equity of $(0.16) and $(0.06) per share at June 30, 2005 and December 31, 2004, respectively. (b) Total equity reduced by intangible assets divided by common shares outstanding. RECONCILIATION TABLE (in thousands, except per share amounts and percentages) Three Months Ended Six Months Ended June 30, June 30, ---------------------- ---------------------- 2005 2004 2005 2004 ---------- ---------- ---------- ---------- Net income $ 16,195 $ 13,244 $ 31,675 $ 24,551 Amortization of intangibles, net of tax 522 570 1,081 903 Cash earnings $ 16,717 $ 13,814 $ 32,756 $ 25,454 Net income per common share - basic $ 0.94 $ 0.85 $ 1.84 $ 1.66 Effect of amortization of intangibles per share 0.03 0.04 0.07 0.07 Cash earnings per common share - basic $ 0.97 $ 0.89 $ 1.91 $ 1.73 Net income per common share - diluted $ 0.93 $ 0.84 $ 1.82 $ 1.64 Effect of amortization of intangibles per share 0.03 0.03 0.06 0.06 Cash earnings per diluted share $ 0.96 $ 0.87 $ 1.88 $ 1.70 Average assets $5,569,778 $4,858,617 $5,468,305 $4,526,258 Average intangible assets (154,708) (136,958) (155,058) (105,978) Average tangible assets $5,415,070 $4,721,659 $5,313,247 $4,420,280 Return on average assets 1.17% 1.10% 1.17% 1.09% Effect of average intangible assets 0.03 0.03 0.03 0.03 Return on average tangible assets 1.20% 1.13% 1.20% 1.12% Average equity $ 544,665 $ 424,519 $ 540,026 $ 385,847 Average intangible assets (154,708) (136,958) (155,058) (105,978) Average tangible equity $ 389,957 $ 287,561 $ 384,968 $ 279,869 Return on average equity 11.93% 12.55% 11.83% 12.80% Effect of average intangible assets 4.73 5.97 4.76 4.84 Return on average tangible equity 16.66% 18.52% 16.59% 17.64% As of June 30, December 31, 2005 2004 ----------- ----------- Book value $ 549,297 $ 529,543 Intangible assets (154,328) (155,682) Tangible book value $ 394,969 $ 373,861 Book value per common share $ 32.26 $ 31.15 Effect of intangible assets per share (9.06) (9.16) Tangible book value per common share $ 23.20 $ 21.99 Alabama National BanCorporation and Subsidiaries Consolidated Statements of Financial Condition (Unaudited) ---------------------------------------------------------------------- (In thousands, except share amounts) June 30, December 31, 2005 2004 ----------- ------------ Assets Cash and due from banks $ 171,355 $ 155,027 Interest-bearing deposits in other banks 19,036 21,274 Federal funds sold and securities purchased under resell agreements 101,587 100,970 Trading securities, at fair value - 590 Investment securities (fair values of $559,178 and $566,602) 564,172 568,493 Securities available for sale, at fair value 607,109 631,914 Loans held for sale 32,247 22,313 Loans and leases 3,851,855 3,499,353 Unearned income (3,168) (3,652) ---------- ---------- Loans and leases, net of unearned income 3,848,687 3,495,701 Allowance for loan and lease losses (49,637) (46,584) ---------- ---------- Net loans and leases 3,799,050 3,449,117 Property, equipment and leasehold improvements, net 105,092 99,455 Goodwill 144,638 144,396 Other intangible assets, net 9,690 11,286 Cash surrender value of life insurance 72,947 71,535 Receivable from investment division customers 7,625 2,223 Other assets 51,579 37,276 ---------- ---------- Totals $5,686,127 $5,315,869 ========== ========== Liabilities and Stockholders' Equity Deposits: Noninterest bearing $ 737,153 $ 683,245 Interest bearing 3,447,014 3,251,478 ---------- ---------- Total deposits 4,184,167 3,934,723 Federal funds purchased and securities sold under repurchase agreements 501,734 379,114 Treasury, tax and loan accounts - 2,217 Accrued expenses and other liabilities 48,962 43,861 Payable for securities purchased for investment division customers 7,230 2,223 Short-term borrowings 83,225 30,500 Long-term debt 311,512 393,688 ---------- ---------- Total liabilities 5,136,830 4,786,326 Common stock, $1 par; 50,000,000 and 27,500,000 shares authorized at June 30, 2005 and December 31, 2004, respectively; 17,024,647 and 16,998,918 outstanding at June 30, 2005 and December 31, 2004, respectively 17,025 16,999 Additional paid-in capital 341,635 340,161 Retained earnings 193,337 173,345 Accumulated other comprehensive loss, net of tax (2,700) (962) ---------- ---------- Total stockholders' equity 549,297 529,543 ---------- ---------- Totals $5,686,127 $5,315,869 ========== ========== Alabama National BanCorporation and Subsidiaries Consolidated Statements of Income (Unaudited) ---------------------------------------------------------------------- (In thousands, except per share data) For the For the three months ended six months ended June 30, June 30, ------------------ ------------------ 2005 2004 2005 2004 -------- -------- -------- -------- Interest income: Interest and fees on loans and leases $ 61,054 $ 44,099 $116,220 $ 84,312 Interest on securities 12,224 11,097 24,326 19,852 Interest on deposits in other banks 77 17 125 28 Interest on trading securities 5 17 9 35 Interest on federal funds sold and securities purchased under resell agreements 713 167 1,237 300 -------- -------- -------- -------- Total interest income 74,073 55,397 141,917 104,527 Interest expense: Interest on deposits 17,537 11,263 32,395 21,479 Interest on federal funds purchased and securities sold under repurchase agreements 3,261 963 5,629 1,960 Interest on short-term borrowings 870 285 1,276 579 Interest on long-term debt 3,318 3,252 6,625 6,205 -------- -------- -------- -------- Total interest expense 24,986 15,763 45,925 30,223 -------- -------- -------- -------- Net interest income 49,087 39,634 95,992 74,304 Provision for loan and lease losses 1,991 1,278 3,535 2,506 -------- -------- -------- -------- Net interest income after provision for loan and lease losses 47,096 38,356 92,457 71,798 Noninterest income: Securities gains - - 72 - Gain (loss) on disposition of assets 283 57 711 37 Service charges on deposit accounts 4,154 4,520 8,084 8,331 Investment services income 858 3,273 2,003 7,180 Securities brokerage and trust income 4,920 4,197 9,441 8,296 Gain on sale of mortgages 3,417 3,491 6,087 6,033 Bank owned life insurance 745 683 1,399 1,410 Insurance commissions 833 779 1,628 1,737 Other 3,019 2,288 5,587 3,904 -------- -------- -------- -------- Total noninterest income 18,229 19,288 35,012 36,928 Noninterest expense: Salaries and employee benefits 20,953 18,992 41,406 36,671 Commission based compensation 4,011 4,784 7,505 9,549 Occupancy and equipment expenses 4,342 3,867 8,481 7,365 Amortization of intangibles 769 842 1,594 1,324 Other 10,640 9,127 20,390 16,874 -------- -------- -------- -------- Total noninterest expense 40,715 37,612 79,376 71,783 -------- -------- -------- -------- Income before provision for income taxes 24,610 20,032 48,093 36,943 Provision for income taxes 8,415 6,788 16,418 12,392 -------- -------- -------- -------- Net income $ 16,195 $ 13,244 $ 31,675 $ 24,551 ======== ======== ======== ======== Net income per common share (basic) $ .94 $ .85 $ 1.84 $ 1.66 ======== ======== ======== ======== Weighted average common shares outstanding (basic) 17,184 15,555 17,178 14,751 ======== ======== ======== ======== Net income per common share (diluted) $ .93 $ .84 $ 1.82 $ 1.64 ======== ======== ======== ======== Weighted average common shares outstanding (diluted) 17,394 15,806 17,391 14,994 ======== ======== ======== ======== AVERAGE BALANCES, INCOME AND EXPENSES AND RATES (Amounts in thousands, except yields and rates) Three Months 06/30/05 ----------------------------- Average Income/ Yield/ Balance Expense Cost ----------- --------- ------- Assets: Earning assets: Loans and leases (1) $3,787,893 $ 61,184 6.48% Securities: Taxable 1,119,105 11,639 4.17 Tax exempt 54,335 886 6.54 Cash balances in other banks 9,836 77 3.14 Funds sold 82,579 713 3.46 Trading account securities 379 5 5.29 ---------- -------- Total earning assets (2) 5,054,127 74,504 5.91 ---------- -------- Cash and due from banks 169,650 Premises and equipment 108,542 Other assets 285,830 Allowance for loan and lease losses (48,371) ---------- Total assets $5,569,778 ========== Liabilities: Interest-bearing liabilities: Interest-bearing transaction accounts $ 915,333 $ 3,247 1.42 Savings deposits 896,612 3,167 1.42 Time deposits 1,527,293 11,123 2.92 Funds purchased 483,536 3,261 2.71 Other short-term borrowings 98,924 870 3.53 Long-term debt 323,410 3,318 4.12 ---------- -------- Total interest-bearing liabilities 4,245,108 24,986 2.36 ---------- -------- Demand deposits 720,769 Accrued interest and other liabilities 59,236 Stockholders' equity 544,665 ---------- Total liabilities and stockholders' equity $5,569,778 ========== Net interest spread 3.55% ======= Net interest income/margin on a taxable equivalent basis 49,518 3.93% ======= Tax equivalent adjustment (2) 431 -------- Net interest income/margin $ 49,087 3.90% ======== ======= Three Months 06/30/04 ----------------------------- Average Income/ Yield/ Balance Expense Cost ----------- --------- ------- Assets: Earning assets: Loans and leases (1) $3,194,216 $ 44,211 5.57% Securities: Taxable 1,088,577 10,571 3.91 Tax exempt 52,522 797 6.10 Cash balances in other banks 7,936 17 0.86 Funds sold 67,373 167 1.00 Trading account securities 1,381 17 4.95 ---------- -------- Total earning assets (2) 4,412,005 55,780 5.08 ---------- -------- Cash and due from banks 141,724 Premises and equipment 94,599 Other assets 253,477 Allowance for loan and lease losses (43,188) ---------- Total assets $4,858,617 ========== Liabilities: Interest-bearing liabilities: Interest-bearing transaction accounts $ 728,049 $ 1,319 0.73 Savings deposits 767,314 2,408 1.26 Time deposits 1,479,325 7,536 2.05 Funds purchased 384,820 963 1.01 Other short-term borrowings 64,036 285 1.79 Long-term debt 392,998 3,252 3.33 ---------- -------- Total interest-bearing liabilities 3,816,542 15,763 1.66 ---------- -------- Demand deposits 564,352 Accrued interest and other liabilities 53,204 Stockholders' equity 424,519 ---------- Total liabilities and stockholders' equity $4,858,617 ========== Net interest spread 3.42% ======= Net interest income/margin on a taxable equivalent basis 40,017 3.65% ======= Tax equivalent adjustment (2) 383 -------- Net interest income/margin $ 39,634 3.61% ======== ======= (1) Average loans include nonaccrual loans. All loans and deposits are domestic. (2) Tax equivalent adjustments are based on the assumed rate of 34%, and do not give effect to the disallowance for Federal income tax purposes of interest expense related to certain tax-exempt assets. AVERAGE BALANCES, INCOME AND EXPENSES AND RATES (Amounts in thousands, except yields and rates) Six Months 06/30/05 ----------------------------- Average Income/ Yield/ Balance Expense Cost ---------- -------- ------- Assets: Earning assets: Loans and leases (1) $3,690,992 $116,481 6.36% Securities: Taxable 1,120,771 23,180 4.17 Tax exempt 54,782 1,736 6.39 Cash balances in other banks 9,629 125 2.62 Funds sold 87,703 1,237 2.84 Trading account securities 345 9 5.26 ---------- -------- Total earning assets (2) 4,964,222 142,768 5.80 ---------- -------- Cash and due from banks 166,102 Premises and equipment 104,582 Other assets 281,246 Allowance for loan and lease losses (47,847) ---------- Total assets $5,468,305 ========== Liabilities: Interest-bearing liabilities: Interest-bearing transaction accounts $ 895,591 $ 5,791 1.30 Savings deposits 893,916 5,805 1.31 Time deposits 1,512,993 20,799 2.77 Funds purchased 454,708 5,629 2.50 Other short-term borrowings 72,671 1,276 3.54 Long-term debt 346,208 6,625 3.86 ---------- -------- Total interest-bearing liabilities 4,176,087 45,925 2.22 ---------- -------- Demand deposits 697,697 Accrued interest and other liabilities 54,495 Stockholders' equity 540,026 ---------- Total liabilities and stockholders' equity $5,468,305 ========== Net interest spread 3.58% ======= Net interest income/margin on a taxable equivalent basis 96,843 3.93% ======= Tax equivalent adjustment (2) 851 -------- Net interest income/margin $ 95,992 3.90% ======== ======= Six Months 06/30/04 ----------------------------- Average Income/ Yield/ Balance Expense Cost ----------- --------- ------- Assets: Earning assets: Loans and leases (1) $3,031,870 $ 84,520 5.61% Securities: Taxable 983,153 18,868 3.86 Tax exempt 47,599 1,491 6.30 Cash balances in other banks 6,707 28 0.84 Funds sold 59,078 300 1.02 Trading account securities 1,593 35 4.42 ---------- -------- Total earning assets (2) 4,130,000 105,242 5.12 ---------- -------- Cash and due from banks 131,672 Premises and equipment 87,228 Other assets 218,530 Allowance for loan and lease losses (41,172) ---------- Total assets $4,526,258 ========== Liabilities: Interest-bearing liabilities: Interest-bearing transaction accounts $ 666,699 $ 2,428 0.73 Savings deposits 679,707 3,643 1.08 Time deposits 1,416,340 15,408 2.19 Funds purchased 385,038 1,960 1.02 Other short-term borrowings 68,223 579 1.71 Long-term debt 372,195 6,205 3.35 ---------- -------- Total interest-bearing liabilities 3,588,202 30,223 1.69 ---------- -------- Demand deposits 506,548 Accrued interest and other liabilities 45,661 Stockholders' equity 385,847 ---------- Total liabilities and stockholders' equity $4,526,258 ========== Net interest spread 3.43% ======= Net interest income/margin on a taxable equivalent basis 75,019 3.65% ======= Tax equivalent adjustment (2) 715 -------- Net interest income/margin $ 74,304 3.62% ======== ======= (1) Average loans include nonaccrual loans. All loans and deposits are domestic. (2) Tax equivalent adjustments are based on the assumed rate of 34%, and do not give effect to the disallowance for Federal income tax purposes of interest expense related to certain tax-exempt assets. *T