Asset Quality Remains Very Strong
The Bank’s credit quality remains strong. At June 30, 2012, nonperforming assets were only 10 basis points of total assets.
During the second quarter of 2012, the Bank recorded a provision for loan losses of $14.9 million. The Bank’s provision for loan losses is related primarily to loans outstanding that have been originated since July 1, 2010. At June 30, 2012, the allowance related to these loans totaled $83.7 million, or 0.56% of such loans.
Annualized net charge-offs to average loans were 1 basis point for the first half of 2012.Capital Strength The Bank’s Tier 1 leverage and total risk-based capital ratios at June 30, 2012 were 9.55% and 14.17%, respectively. These ratios reflect the issuance by the Bank of $150.0 million of 6.20% Noncumulative Perpetual Series B Preferred Stock and the redemption of the Series D preferred stock of FRPCC during the second quarter of 2012, which resulted in a net increase in Tier 1 capital of $85.2 million. The Bank continues to exceed all current regulatory guidelines for well-capitalized institutions. Strong Book Value Growth Book value per share was $20.74 at June 30, 2012, up 15% from a year ago. Continued Franchise Development and Growth Assets Total assets at June 30, 2012 were $31.0 billion. During the first six months of 2012, loans increased $2.4 billion and investment securities had a net increase of $285.9 million. This asset expansion was funded primarily by deposit growth of $1.8 billion and a $1.0 billion increase in intermediate-term, fixed-rate Federal Home Loan Bank (“FHLB”) advances. Loans outstanding were $25.5 billion at June 30, 2012, up 7% for the quarter and 10% since year-end. Deposit mix continues to improve Total deposits were $24.2 billion at June 30, 2012, up 4% for the quarter and 8% since year-end.