x
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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TEXAS
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75-1848732
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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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|
|
|
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1201 S. Beckham, Tyler, Texas
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75701
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(Address of principal executive offices)
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(Zip Code)
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Large accelerated filer o
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Accelerated filer x
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Non-accelerated filer o
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Smaller reporting company o
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(Do not check if a smaller reporting company)
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PART I. FINANCIAL INFORMATION
|
|
1 | |
34 | |
53 | |
54 | |
PART II. OTHER INFORMATION
|
|
55 | |
55 | |
55 | |
55 | |
55 | |
55 | |
56 | |
57 | |
58 | |
EXHIBIT 31.1 – CERTIFICATION PURSUANT TO SECTION 302
|
|
EXHIBIT 31.2 – CERTIFICATION PURSUANT TO SECTION 302
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EXHIBIT 32 – CERTIFICATION PURSUANT TO SECTION 906
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June 30,
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December 31,
|
|||||||
2012
|
2011
|
|||||||
ASSETS
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||||||||
Cash and due from banks
|
$ | 46,479 | $ | 40,989 | ||||
Interest earning deposits
|
59,757 | 2,249 | ||||||
Total cash and cash equivalents
|
106,236 | 43,238 | ||||||
Investment securities:
|
||||||||
Available for sale, at estimated fair value
|
418,215 | 282,956 | ||||||
Held to maturity, at amortized cost
|
1,010 | 1,496 | ||||||
Mortgage-backed and related securities:
|
||||||||
Available for sale, at estimated fair value
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1,204,759 | 716,126 | ||||||
Securities carried at fair value through income
|
– | 647,759 | ||||||
Held to maturity, at amortized cost
|
330,138 | 365,631 | ||||||
FHLB stock, at cost
|
34,334 | 33,869 | ||||||
Other investments, at cost
|
2,064 | 2,064 | ||||||
Loans held for sale
|
1,447 | 3,552 | ||||||
Loans:
|
||||||||
Loans
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1,183,200 | 1,087,230 | ||||||
Less: allowance for loan losses
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(20,194 | ) | (18,540 | ) | ||||
Net Loans
|
1,163,006 | 1,068,690 | ||||||
Premises and equipment, net
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50,250 | 50,595 | ||||||
Goodwill
|
22,034 | 22,034 | ||||||
Other intangible assets, net
|
416 | 522 | ||||||
Interest receivable
|
17,929 | 19,426 | ||||||
Deferred tax asset
|
3,478 | – | ||||||
Unsettled trades to sell securities
|
1,071 | – | ||||||
Other assets
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44,569 | 45,859 | ||||||
TOTAL ASSETS
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$ | 3,400,956 | $ | 3,303,817 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||
Deposits:
|
||||||||
Noninterest bearing
|
$ | 641,139 | $ | 505,594 | ||||
Interest bearing
|
1,754,733 | 1,816,077 | ||||||
Total deposits
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2,395,872 | 2,321,671 | ||||||
Short-term obligations:
|
||||||||
Federal funds purchased and repurchase agreements
|
1,948 | 2,945 | ||||||
FHLB advances
|
241,246 | 361,811 | ||||||
Other obligations
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219 | 219 | ||||||
Total short-term obligations
|
243,413 | 364,975 | ||||||
Long-term obligations:
|
||||||||
FHLB advances
|
366,989 | 260,724 | ||||||
Long-term debt
|
60,311 | 60,311 | ||||||
Total long-term obligations
|
427,300 | 321,035 | ||||||
Deferred tax liability
|
– | 3,458 | ||||||
Unsettled trades to purchase securities
|
42,300 | 1,196 | ||||||
Other liabilities
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28,715 | 32,555 | ||||||
TOTAL LIABILITIES
|
3,137,600 | 3,044,890 | ||||||
Off-Balance-Sheet Arrangements, Commitments and Contingencies (Note 10)
|
||||||||
Shareholders' equity:
|
||||||||
Common stock - $1.25 par, 40,000,000 shares authorized, 19,382,489 shares issued in 2012 and 18,517,101 shares issued in 2011
|
24,228 | 23,146 | ||||||
Paid-in capital
|
193,994 | 176,791 | ||||||
Retained earnings
|
66,565 | 72,646 | ||||||
Treasury stock (2,023,838 shares at cost)
|
(28,377 | ) | (28,377 | ) | ||||
Accumulated other comprehensive income
|
6,946 | 14,721 | ||||||
TOTAL SHAREHOLDERS' EQUITY
|
263,356 | 258,927 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
$ | 3,400,956 | $ | 3,303,817 |
(UNAUDITED)
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Three Months
|
Six Months
|
||||||||||||||
(in thousands, except per share data)
|
Ended June 30,
|
Ended June 30,
|
||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Interest income
|
||||||||||||||||
Loans
|
$ | 17,526 | $ | 17,130 | $ | 34,296 | $ | 34,401 | ||||||||
Investment securities – taxable
|
20 | 20 | 51 | 38 | ||||||||||||
Investment securities – tax-exempt
|
2,961 | 3,209 | 5,628 | 6,438 | ||||||||||||
Mortgage-backed and related securities
|
8,872 | 13,310 | 21,035 | 24,607 | ||||||||||||
FHLB stock and other investments
|
54 | 52 | 133 | 132 | ||||||||||||
Other interest earning assets
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9 | 3 | 15 | 13 | ||||||||||||
Total interest income
|
29,442 | 33,724 | 61,158 | 65,629 | ||||||||||||
Interest expense
|
||||||||||||||||
Deposits
|
2,765 | 4,051 | 6,160 | 8,087 | ||||||||||||
Short-term obligations
|
1,734 | 1,705 | 3,326 | 3,434 | ||||||||||||
Long-term obligations
|
2,398 | 3,401 | 5,131 | 7,282 | ||||||||||||
Total interest expense
|
6,897 | 9,157 | 14,617 | 18,803 | ||||||||||||
Net interest income
|
22,545 | 24,567 | 46,541 | 46,826 | ||||||||||||
Provision for loan losses
|
2,174 | 1,860 | 5,226 | 3,998 | ||||||||||||
Net interest income after provision for loan losses
|
20,371 | 22,707 | 41,315 | 42,828 | ||||||||||||
Noninterest income
|
||||||||||||||||
Deposit services
|
3,838 | 4,028 | 7,586 | 7,907 | ||||||||||||
Gain on sale of securities available for sale
|
3,297 | 3,920 | 9,269 | 5,471 | ||||||||||||
(Loss) gain on sale of securities carried at fair value through income
|
(13 | ) | 84 | (498 | ) | 338 | ||||||||||
Total other-than-temporary impairment losses
|
(21 | ) | – | (21 | ) | – | ||||||||||
Portion of loss recognized in other comprehensive income (before taxes)
|
(19 | ) | – | (160 | ) | – | ||||||||||
Net impairment losses recognized in earnings
|
(40 | ) | – | (181 | ) | – | ||||||||||
Fair value gains – securities
|
– | 2,456 | – | 4,083 | ||||||||||||
FHLB advance option impairment charges
|
(1,364 | ) | – | (1,836 | ) | – | ||||||||||
Gain on sale of loans
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298 | 282 | 429 | 565 | ||||||||||||
Trust income
|
669 | 645 | 1,346 | 1,296 | ||||||||||||
Bank owned life insurance income
|
254 | 261 | 520 | 547 | ||||||||||||
Other
|
1,123 | 959 | 2,234 | 2,064 | ||||||||||||
Total noninterest income
|
8,062 | 12,635 | 18,869 | 22,271 | ||||||||||||
Noninterest expense
|
||||||||||||||||
Salaries and employee benefits
|
12,142 | 11,622 | 23,975 | 23,313 | ||||||||||||
Occupancy expense
|
1,851 | 1,778 | 3,609 | 3,499 | ||||||||||||
Equipment expense
|
554 | 525 | 1,064 | 1,018 | ||||||||||||
Advertising, travel & entertainment
|
603 | 550 | 1,207 | 1,103 | ||||||||||||
ATM and debit card expense
|
287 | 266 | 566 | 481 | ||||||||||||
Director fees
|
273 | 200 | 541 | 391 | ||||||||||||
Supplies
|
222 | 161 | 381 | 385 | ||||||||||||
Professional fees
|
390 | 457 | 941 | 1,012 | ||||||||||||
Postage
|
182 | 186 | 357 | 365 | ||||||||||||
Telephone and communications
|
445 | 345 | 851 | 682 | ||||||||||||
FDIC Insurance
|
414 | 735 | 884 | 1,498 | ||||||||||||
Other
|
1,733 | 1,291 | 3,242 | 3,101 | ||||||||||||
Total noninterest expense
|
19,096 | 18,116 | 37,618 | 36,848 | ||||||||||||
Income before income tax expense
|
9,337 | 17,226 | 22,566 | 28,251 | ||||||||||||
Provision for income tax expense
|
1,608 | 4,100 | 4,698 | 5,886 | ||||||||||||
Net income
|
7,729 | 13,126 | 17,868 | 22,365 | ||||||||||||
Less: Net income attributable to the noncontrolling interest
|
– | (493 | ) | – | (1,358 | ) | ||||||||||
Net income attributable to Southside Bancshares, Inc.
|
$ | 7,729 | $ | 12,633 | $ | 17,868 | $ | 21,007 | ||||||||
Earnings per common share – basic
|
$ | 0.45 | $ | 0.73 | $ | 1.03 | $ | 1.22 | ||||||||
Earnings per common share – diluted
|
$ | 0.45 | $ | 0.73 | $ | 1.03 | $ | 1.22 | ||||||||
Dividends paid per common share
|
$ | 0.20 | $ | 0.17 | $ | 0.38 | $ | 0.34 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
Three Months
|
Six Months
|
||||||||||||||
(UNAUDITED)
|
Ended June 30,
|
Ended June 30,
|
||||||||||||||
(in thousands)
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
Net income
|
$ | 7,729 | $ | 13,126 | $ | 17,868 | $ | 22,365 | ||||||||
Other comprehensive (loss) income:
|
||||||||||||||||
Unrealized holding (losses) gains on available for sale securities during the period
|
863 | 20,126 | (4,023 | ) | 26,280 | |||||||||||
Noncredit portion of other-than-temporary impairment losses on the AFS securities
|
19 | – | 160 | – | ||||||||||||
Reclassification adjustment for gain on sale of available for sale securities included in net income
|
(3,297 | ) | (3,920 | ) | (9,269 | ) | (5,471 | ) | ||||||||
Reclassification of other-than-temporary impairment charges on available for sale securities included in net income
|
40 | – | 181 | – | ||||||||||||
Amortization of net actuarial loss, included in net periodic benefit cost
|
512 | 366 | 1,011 | 732 | ||||||||||||
Amortization of prior service credit included in net periodic benefit cost
|
(12 | ) | (10 | ) | (22 | ) | (21 | ) | ||||||||
Other comprehensive (loss) income
|
(1,875 | ) | 16,562 | (11,962 | ) | 21,520 | ||||||||||
Income tax benefit (expense) related to other items of comprehensive income
|
656 | (5,797 | ) | 4,187 | (7,532 | ) | ||||||||||
Other comprehensive income (loss), net of tax
|
(1,219 | ) | 10,765 | (7,775 | ) | 13,988 | ||||||||||
Comprehensive income
|
$ | 6,510 | $ | 23,891 | $ | 10,093 | $ | 36,353 |
(UNAUDITED)
|
Accu-
|
|||||||||||||||||||||||||||
(in thousands, except share amounts)
|
mulated-
|
|||||||||||||||||||||||||||
Common
Stock
|
Paid In
Capital
|
Retained
Earnings
|
Treasury
Stock
|
Other
Compre-
hensive
Income
(Loss)
|
Noncon-
trolling
Interest
|
Total
Equity
|
||||||||||||||||||||||
Balance at December 31, 2010
|
$ | 22,075 | $ | 162,877 | $ | 64,179 | $ | (28,377 | ) | $ | (6,293 | ) | $ | 1,113 | $ | 215,574 | ||||||||||||
Net Income
|
21,007 | 1,358 | 22,365 | |||||||||||||||||||||||||
Other comprehensive income
|
13,988 | 13,988 | ||||||||||||||||||||||||||
Issuance of common stock (28,869 shares)
|
36 | 531 | 567 | |||||||||||||||||||||||||
Stock compensation expense
|
26 | 26 | ||||||||||||||||||||||||||
Tax benefits related to stock compensation
|
2 | 2 | ||||||||||||||||||||||||||
Capital distribution to noncontrolling interest shareholders
|
(475 | ) | (475 | ) | ||||||||||||||||||||||||
Dividends paid on common stock ($0.34 per share)
|
(5,453 | ) | (5,453 | ) | ||||||||||||||||||||||||
Stock dividend declared
|
981 | 15,014 | (15,995 | ) | – | |||||||||||||||||||||||
Balance at June 30, 2011
|
$ | 23,092 | $ | 178,450 | $ | 63,738 | $ | (28,377 | ) | $ | 7,695 | $ | 1,996 | $ | 246,594 | |||||||||||||
Balance at December 31, 2011
|
$ | 23,146 | $ | 176,791 | $ | 72,646 | $ | (28,377 | ) | $ | 14,721 | $ | – | $ | 258,927 | |||||||||||||
Net Income
|
17,868 | 17,868 | ||||||||||||||||||||||||||
Other comprehensive loss
|
(7,775 | ) | (7,775 | ) | ||||||||||||||||||||||||
Issuance of common stock (30,436 shares)
|
38 | 595 | 633 | |||||||||||||||||||||||||
Stock compensation expense
|
133 | 133 | ||||||||||||||||||||||||||
Tax benefits related to stock compensation
|
11 | 11 | ||||||||||||||||||||||||||
Net issuance of common stock under employee stock plans
|
10 | 39 | (54 | ) | (5 | ) | ||||||||||||||||||||||
Dividends paid on common stock ($0.38 per share)
|
(6,436 | ) | (6,436 | ) | ||||||||||||||||||||||||
Stock dividend declared
|
1,034 | 16,425 | (17,459 | ) | – | |||||||||||||||||||||||
Balance at June 30, 2012
|
$ | 24,228 | $ | 193,994 | $ | 66,565 | $ | (28,377 | ) | $ | 6,946 | $ | – | $ | 263,356 |
Six Months Ended
June 30,
|
||||||||
2012
|
2011
|
|||||||
OPERATING ACTIVITIES:
|
||||||||
Net income
|
$ | 17,868 | $ | 22,365 | ||||
Adjustments to reconcile net income to net cash provided by operations:
|
||||||||
Depreciation
|
1,778 | 1,646 | ||||||
Amortization of premium
|
22,864 | 16,782 | ||||||
Accretion of discount and loan fees
|
(2,399 | ) | (2,327 | ) | ||||
Provision for loan losses
|
5,226 | 3,998 | ||||||
Stock compensation expense
|
133 | 26 | ||||||
Deferred tax (benefit) expense
|
(2,743 | ) | 1,467 | |||||
Excess tax benefits from stock-based compensation
|
(11 | ) | – | |||||
Loss (gain) on sale of securities carried at fair value through income
|
498 | (338 | ) | |||||
Gain on sale of securities available for sale
|
(9,269 | ) | (5,471 | ) | ||||
Net other-than-temporary impairment losses
|
181 | – | ||||||
Fair value gain – securities
|
– | (4,083 | ) | |||||
FHLB advance option impairment charges
|
1,836 | – | ||||||
Loss on sale of assets
|
– | 3 | ||||||
Loss on retirement of assets
|
– | 90 | ||||||
Impairment on other real estate owned
|
– | 145 | ||||||
Gain on sale of other real estate owned
|
(3 | ) | (221 | ) | ||||
Net change in:
|
||||||||
Interest receivable
|
1,497 | (1,370 | ) | |||||
Other assets
|
27 | (2,593 | ) | |||||
Interest payable
|
(458 | ) | (575 | ) | ||||
Other liabilities
|
(2,393 | ) | 2,364 | |||||
Loans held for sale
|
2,105 | 3,845 | ||||||
Net cash provided by operating activities
|
36,737 | 35,753 | ||||||
INVESTING ACTIVITIES:
|
||||||||
Securities held to maturity:
|
||||||||
Purchases
|
– | (6,394 | ) | |||||
Maturities, calls and principal repayments
|
32,331 | 23,373 | ||||||
Securities available for sale:
|
||||||||
Purchases
|
(1,213,923 | ) | (350,206 | ) | ||||
Sales
|
448,725 | 326,701 | ||||||
Maturities, calls and principal repayments
|
163,809 | 138,176 | ||||||
Securities carried at fair value through income:
|
||||||||
Purchases
|
(57,606 | ) | (344,728 | ) | ||||
Sales
|
675,255 | 16,248 | ||||||
Maturities, calls and principal repayments
|
25,279 | 13,919 | ||||||
Proceeds from redemption of FHLB stock
|
10,292 | 14,811 | ||||||
Purchases of FHLB stock and other investments
|
(10,757 | ) | (5,623 | ) | ||||
Net (increase) decrease in loans
|
(100,529 | ) | 32,740 | |||||
Purchases of premises and equipment
|
(1,433 | ) | (2,169 | ) | ||||
Proceeds from sales of premises and equipment
|
– | 6 | ||||||
Proceeds from sales of other real estate owned
|
112 | 306 | ||||||
Proceeds from sales of repossessed assets
|
2,070 | 2,767 | ||||||
Net cash used in investing activities
|
(26,375 | ) | (140,073 | ) |
Six Months Ended
June 30,
|
||||||||
2012
|
2011
|
|||||||
FINANCING ACTIVITIES:
|
||||||||
Net increase in demand and savings accounts
|
198,420 | 87,107 | ||||||
Net (decrease) increase in certificates of deposit
|
(124,695 | ) | 22,511 | |||||
Net decrease in federal funds purchased and repurchase agreements
|
(997 | ) | (767 | ) | ||||
Proceeds from FHLB advances
|
9,133,164 | 3,349,032 | ||||||
Repayment of FHLB advances
|
(9,147,464 | ) | (3,378,823 | ) | ||||
Net capital distributions to noncontrolling interest in consolidated entities
|
– | (475 | ) | |||||
Excess tax benefits from stock-based compensation
|
11 | 2 | ||||||
Proceeds from the issuance of common stock
|
633 | 567 | ||||||
Dividends paid
|
(6,436 | ) | (5,453 | ) | ||||
Net cash provided by financing activities
|
52,636 | 73,701 | ||||||
Net increase (decrease) in cash and cash equivalents
|
62,998 | (30,619 | ) | |||||
Cash and cash equivalents at beginning of period
|
43,238 | 79,073 | ||||||
Cash and cash equivalents at end of period
|
$ | 106,236 | $ | 48,454 | ||||
SUPPLEMENTAL DISCLOSURES FOR CASH FLOW INFORMATION:
|
||||||||
Interest paid
|
$ | 15,075 | $ | 19,378 | ||||
Income taxes paid
|
$ | 9,200 | $ | 3,500 | ||||
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES:
|
||||||||
Acquisition of other repossessed assets and real estate through foreclosure
|
$ | 2,621 | $ | 2,779 | ||||
Adjustment to pension liability
|
$ | (989 | ) | $ | (711 | ) | ||
5% stock dividend
|
$ | 17,459 | $ | 15,995 | ||||
Unsettled trades to purchase securities
|
$ | (42,300 | ) | $ | (9,145 | ) | ||
Unsettled trades to sell securities
|
$ | 1,071 | $ | 31,919 |
1.
|
Basis of Presentation
|
2.
|
Earnings Per Share
|
Three Months
|
Six Months
|
|||||||||||||||
Ended June 30,
|
Ended June 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Basic and Diluted Earnings:
|
||||||||||||||||
Net income – Southside Bancshares, Inc.
|
$ | 7,729 | $ | 12,633 | $ | 17,868 | $ | 21,007 | ||||||||
Basic weighted-average shares outstanding
|
17,341 | 17,263 | 17,334 | 17,255 | ||||||||||||
Add: Stock options
|
12 | 6 | 10 | 5 | ||||||||||||
Diluted weighted-average shares outstanding
|
17,353 | 17,269 | 17,344 | 17,260 | ||||||||||||
Basic Earnings Per Share:
|
||||||||||||||||
Net Income - Southside Bancshares, Inc.
|
$ | 0.45 | $ | 0.73 | $ | 1.03 | $ | 1.22 | ||||||||
Diluted Earnings Per Share:
|
||||||||||||||||
Net Income - Southside Bancshares, Inc.
|
$ | 0.45 | $ | 0.73 | $ | 1.03 | $ | 1.22 |
3.
|
Comprehensive (Loss) Income
|
Six Months Ended June 30, 2012
|
||||||||||||
Before-Tax
|
Tax (Expense)
|
Net-of-Tax
|
||||||||||
Amount
|
Benefit
|
Amount
|
||||||||||
Unrealized losses on securities:
|
||||||||||||
Unrealized holding losses arising during period
|
$ | (4,023 | ) | $ | 1,408 | $ | (2,615 | ) | ||||
Noncredit portion of other-than-temporary impairment losses on the AFS securities
|
160 | (56 | ) | 104 | ||||||||
Less: reclassification adjustment for gain on sale of AFS securities included in net income
|
9,269 | (3,244 | ) | 6,025 | ||||||||
Less: reclassification of other-than-temporary impairment charges of AFS securities included in net income
|
(181 | ) | 63 | (118 | ) | |||||||
Net unrealized losses on securities
|
(12,951 | ) | 4,533 | (8,418 | ) | |||||||
Change in pension plans
|
989 | (346 | ) | 643 | ||||||||
Other comprehensive loss
|
$ | (11,962 | ) | $ | 4,187 | $ | (7,775 | ) |
Three Months Ended June 30, 2012
|
||||||||||||
Before-Tax
|
Tax (Expense)
|
Net-of-Tax
|
||||||||||
Amount
|
Benefit
|
Amount
|
||||||||||
Unrealized losses on securities:
|
||||||||||||
Unrealized holding gains arising during period
|
$ | 863 | $ | (302 | ) | $ | 561 | |||||
Noncredit portion of other-than-temporary impairment losses on the AFS securities
|
19 | (7 | ) | 12 | ||||||||
Less: reclassification adjustment for gain on sale of AFS securities included in net income
|
3,297 | (1,154 | ) | 2,143 | ||||||||
Less: reclassification of other-than-temporary impairment charges of AFS securities included in net income
|
(40 | ) | 14 | (26 | ) | |||||||
Net unrealized losses on securities
|
(2,375 | ) | 831 | (1,544 | ) | |||||||
Change in pension plans
|
500 | (175 | ) | 325 | ||||||||
Other comprehensive loss
|
$ | (1,875 | ) | $ | 656 | $ | (1,219 | ) |
Six Months Ended June 30, 2011
|
||||||||||||
Before-Tax
|
Tax
|
Net-of-Tax
|
||||||||||
Amount
|
Expense
|
Amount
|
||||||||||
Unrealized gains on securities:
|
||||||||||||
Unrealized holding gains arising during period
|
$ | 26,280 | $ | (9,198 | ) | $ | 17,082 | |||||
Less: reclassification adjustment for gain on sale of AFS securities included in net income
|
5,471 | (1,915 | ) | 3,556 | ||||||||
Net unrealized gains on securities
|
20,809 | (7,283 | ) | 13,526 | ||||||||
Change in pension plans
|
711 | (249 | ) | 462 | ||||||||
Other comprehensive income
|
$ | 21,520 | $ | (7,532 | ) | $ | 13,988 |
Three Months Ended June 30, 2011
|
||||||||||||
Before-Tax
|
Tax
|
Net-of-Tax
|
||||||||||
Amount
|
Expense
|
Amount
|
||||||||||
Unrealized gains on securities:
|
||||||||||||
Unrealized holding gains arising during period
|
$ | 20,126 | $ | (7,044 | ) | $ | 13,082 | |||||
Less: reclassification adjustment for gain on sale of AFS securities included in net income
|
3,920 | (1,372 | ) | 2,548 | ||||||||
Net unrealized gains on securities
|
16,206 | (5,672 | ) | 10,534 | ||||||||
Change in pension plans
|
356 | (125 | ) | 231 | ||||||||
Other comprehensive income
|
$ | 16,562 | $ | (5,797 | ) | $ | 10,765 |
4.
|
Securities
|
June 30, 2012
|
||||||||||||||||||||
Gross | ||||||||||||||||||||
Amortized
|
Unrealized
|
Gross Unrealized Losses
|
Estimated
|
|||||||||||||||||
AVAILABLE FOR SALE:
|
Cost | Gains | OTTI | Other | Fair Value | |||||||||||||||
Investment Securities:
|
||||||||||||||||||||
State and Political Subdivisions
|
$ | 390,601 | $ | 24,699 | $ | – | $ | 403 | $ | 414,897 | ||||||||||
Other Stocks and Bonds
|
5,404 | 35 | 2,121 | – | 3,318 | |||||||||||||||
Mortgage-backed Securities:
|
||||||||||||||||||||
U.S. Government Agencies
|
114,274 | 3,556 | – | 85 | 117,745 | |||||||||||||||
Government-Sponsored Enterprises
|
1,070,507 | 18,033 | – | 1,526 | 1,087,014 | |||||||||||||||
Total
|
$ | 1,580,786 | $ | 46,323 | $ | 2,121 | $ | 2,014 | $ | 1,622,974 |
June 30, 2012
|
||||||||||||||||||||
Gross | ||||||||||||||||||||
|
Amortized
|
Unrealized
|
Gross Unrealized Losses
|
Estimated
|
||||||||||||||||
HELD TO MATURITY:
|
Cost | Gains | OTTI | Other | Fair Value | |||||||||||||||
Investment Securities:
|
||||||||||||||||||||
State and Political Subdivisions
|
$ | 1,010 | $ | 122 | $ | – | $ | – | $ | 1,132 | ||||||||||
Mortgage-backed Securities:
|
||||||||||||||||||||
U.S. Government Agencies
|
21,763 | 1,301 | – | 11 | 23,053 | |||||||||||||||
Government-Sponsored Enterprises
|
308,375 | 10,738 | – | 4 | 319,109 | |||||||||||||||
Total
|
$ | 331,148 | $ | 12,161 | $ | – | $ | 15 | $ | 343,294 |
December 31, 2011
|
||||||||||||||||||||
Gross | ||||||||||||||||||||
Amortized
|
Unrealized
|
Gross Unrealized Losses
|
Estimated
|
|||||||||||||||||
AVAILABLE FOR SALE:
|
Cost | Gains | OTTI | Other | Fair Value | |||||||||||||||
Investment Securities:
|
||||||||||||||||||||
State and Political Subdivisions
|
$ | 251,281 | $ | 31,221 | $ | – | $ | 45 | $ | 282,457 | ||||||||||
Other Stocks and Bonds
|
2,925 | – | 2,426 | – | 499 | |||||||||||||||
Mortgage-backed Securities:
|
||||||||||||||||||||
U.S. Government Agencies
|
99,974 | 7,158 | – | 80 | 107,052 | |||||||||||||||
Government-Sponsored Enterprises
|
589,687 | 20,127 | – | 740 | 609,074 | |||||||||||||||
Total
|
$ | 943,867 | $ | 58,506 | $ | 2,426 | $ | 865 | $ | 999,082 |
December 31, 2011
|
||||||||||||||||||||
Gross | ||||||||||||||||||||
Amortized
|
Unrealized
|
Gross Unrealized Losses
|
Estimated
|
|||||||||||||||||
HELD TO MATURITY:
|
Cost | Gains | OTTI | Other | Fair Value | |||||||||||||||
Investment Securities:
|
||||||||||||||||||||
State and Political Subdivisions
|
$ | 1,010 | $ | 196 | $ | – | $ | – | $ | 1,206 | ||||||||||
Other Stocks and Bonds
|
486 | 15 | – | – | 501 | |||||||||||||||
Mortgage-backed Securities:
|
||||||||||||||||||||
U.S. Government Agencies
|
22,999 | 1,159 | – | 43 | 24,115 | |||||||||||||||
Government-Sponsored Enterprises
|
342,632 | 14,848 | – | 11 | 357,469 | |||||||||||||||
Total
|
$ | 367,127 | $ | 16,218 | $ | – | $ | 54 | $ | 383,291 |
At June 30,
|
At December 31,
|
|||||||
2012
|
2011
|
|||||||
Mortgage-backed Securities:
|
||||||||
U.S. Government Agencies
|
$ | – | $ | 30,413 | ||||
Government-Sponsored Enterprises
|
– | 617,346 | ||||||
Total
|
$ | – | $ | 647,759 |
Six Months Ended June 30, | ||||||||
2012 | 2011 | |||||||
Net (loss) gain on sales transactions
|
$ | (498 | ) | $ | 338 | |||
Net mark-to-market gains
|
– | 4,083 | ||||||
Net (loss) gain on securities carried at fair value through income
|
$ | (498 | ) | $ | 4,421 |
Three Months Ended June 30, | ||||||||
2012 | 2011 | |||||||
Net (loss) gain on sales transactions
|
$ | (13 | ) | $ | 84 | |||
Net mark-to-market gains
|
– | 2,456 | ||||||
Net (loss) gain on securities carried at fair value through income
|
$ | (13 | ) | $ | 2,540 |
Less Than 12 Months
|
More Than 12 Months
|
Total
|
||||||||||||||||||||||
Unrealized
|
Unrealized
|
Unrealized
|
||||||||||||||||||||||
Fair Value
|
Loss
|
Fair Value
|
Loss
|
Fair Value
|
Loss
|
|||||||||||||||||||
As of June 30, 2012:
|
||||||||||||||||||||||||
Available for Sale
|
||||||||||||||||||||||||
State and Political Subdivisions
|
$ | 66,858 | $ | 403 | $ | – | $ | – | $ | 66,858 | $ | 403 | ||||||||||||
Other Stocks and Bonds
|
– | – | 623 | 2,121 | 623 | 2,121 | ||||||||||||||||||
Mortgage-Backed Securities
|
420,684 | 1,587 | 2,409 | 24 | 423,093 | 1,611 | ||||||||||||||||||
Total
|
$ | 487,542 | $ | 1,990 | $ | 3,032 | $ | 2,145 | $ | 490,574 | $ | 4,135 | ||||||||||||
Held to Maturity
|
||||||||||||||||||||||||
Mortgage-Backed Securities
|
$ | 3,455 | $ | 12 | $ | 375 | $ | 3 | $ | 3,830 | $ | 15 | ||||||||||||
Total
|
$ | 3,455 | $ | 12 | $ | 375 | $ | 3 | $ | 3,830 | $ | 15 | ||||||||||||
As of December 31, 2011:
|
||||||||||||||||||||||||
Available for Sale
|
||||||||||||||||||||||||
State and Political Subdivisions
|
$ | 1,668 | $ | 42 | $ | 307 | $ | 3 | $ | 1,975 | $ | 45 | ||||||||||||
Other Stocks and Bonds
|
– | – | 499 | 2,426 | 499 | 2,426 | ||||||||||||||||||
Mortgage-Backed Securities
|
148,171 | 754 | 5,322 | 66 | 153,493 | 820 | ||||||||||||||||||
Total
|
$ | 149,839 | $ | 796 | $ | 6,128 | $ | 2,495 | $ | 155,967 | $ | 3,291 | ||||||||||||
Held to Maturity
|
||||||||||||||||||||||||
Mortgage-Backed Securities
|
$ | 8,918 | $ | 54 | $ | – | $ | – | $ | 8,918 | $ | 54 | ||||||||||||
Total
|
$ | 8,918 | $ | 54 | $ | – | $ | – | $ | 8,918 | $ | 54 |
TRUP
|
Par
|
Credit
Loss
|
Amortized
Cost
|
Fair
Value
|
Tranche
|
Credit
Rating
|
|||||||||||||||||
1 | $ | 2,000 | $ | 1,256 | $ | 744 | $ | 117 | C1 |
Ca
|
|||||||||||||
2 | 2,000 | 550 | 1,450 | 234 | B1 | C | |||||||||||||||||
3 | 2,000 | 1,450 | 550 | 272 | B2 | C | |||||||||||||||||
$ | 6,000 | $ | 3,256 | $ | 2,744 | $ | 623 |
Six Months Ended
|
||||||||
June 30, 2012
|
June 30, 2011
|
|||||||
Balance, beginning of period
|
$ | 3,075 | $ | 3,075 | ||||
Additions for credit losses recognized on debt securities that had no previous impairment losses
|
– | – | ||||||
Additions for credit losses recognized on debt securities that had previously incurred impairment losses
|
181 | – | ||||||
Balance, end of period
|
$ | 3,256 | $ | 3,075 |
Three Months Ended
|
||||||||
June 30, 2012
|
June 30, 2011
|
|||||||
Balance, beginning of period
|
$ | 3,216 | $ | 3,075 | ||||
Additions for credit losses recognized on debt securities that had no previous impairment losses
|
– | – | ||||||
Additions for credit losses recognized on debt securities that had previously incurred impairment losses
|
40 | – | ||||||
Balance, end of period
|
$ | 3,256 | $ | 3,075 |
Six Months Ended
|
||||||||
June 30, 2012
|
June 30, 2011
|
|||||||
U.S. Treasury
|
$ | – | $ | 6 | ||||
State and Political Subdivisions
|
5,642 | 6,452 | ||||||
Other Stocks and Bonds
|
37 | 18 | ||||||
Mortgage-backed Securities
|
21,035 | 24,607 | ||||||
Total interest income on securities
|
$ | 26,714 | $ | 31,083 |
Three Months Ended
|
||||||||
June 30, 2012
|
June 30, 2011
|
|||||||
U.S. Treasury
|
$ | – | $ | 5 | ||||
State and Political Subdivisions
|
2,968 | 3,215 | ||||||
Other Stocks and Bonds
|