For the full year 2012, the company posted GAAP net income of $140.7 million, or $0.40 per diluted share compared to $173.9 million, or $0.64 per diluted share, in 2011. Included in the calculation of GAAP net income are $184.0 million in pre-tax acquisition and restructuring related expenses, $24.6 million in accelerated premium amortization adjustments, and $21.2 million in gains related to the sale of $3.1 billion of mortgage-backed securities in the second quarter of 2012. In 2011, merger and restructuring related expenses totaled $140.7 million.

Operating Results (Non-GAAP)  2012 2011
Net interest income  $ 1,047.9  $ 881.2
Provision for credit losses  92.3  58.1
Noninterest income  338.3  245.3
Noninterest expense  867.2  665.6
Net operating income before non-operating items  291.6  266.7
Preferred stock dividend  27.8  -- 
Operating net income available to common shareholders  263.9  266.7
Weighted average diluted shares outstanding  349.4  271.6
Operating earnings per diluted share  $ 0.75  $ 0.98
     
Reported Results (GAAP)    
Net operating income before non-operating items  $ 291.6  $ 266.7
CMO premium amortization adjustment (a)  17.2  -- 
Gain on securities portfolio repositioning (b)  13.8  -- 
Non-operating expenses (c)  119.8  92.8
Net income  168.4  173.9
Preferred stock dividend  27.8  -- 
Net income available to common shareholders  140.7  173.9
Weighted average diluted shares outstanding  349.4  271.6
Earnings per diluted share  $ 0.40  $ 0.64
All amounts in millions except earnings per diluted share. The Non-GAAP/Operating Results table above summarizes the company's operating results excluding certain non-operating items. For a detailed reconciliation of non-GAAP measures, refer to the attached tables.
     
(a) Amount is shown net of tax and represents the retroactive adjustment to accelerate premium amortization on the CMO portfolio.
(b) Amount is shown net of tax and represents the gains recorded on the sale of $3.1 billion of mortgage-backed securities in 2012.
(c) Amounts are shown net of tax and represent expenses related to acquisition, integration, and restructuring. 

Loans

For the twelfth consecutive quarter, average commercial loans increased at a double-digit pace organically, up $302 million, or 11% annualized over the prior quarter. Commercial business loans averaged $4.8 billion, representing a 15% annualized increase over the prior quarter. Commercial real estate loans increased 8% annualized to $6.9 billion. Strength in specialty lending business lines such as equipment finance, healthcare lending, and capital markets augmented a robust pace of growth in the company's traditional middle market and commercial real estate businesses. Commercial loans in the company's Western and Eastern Pennsylvania and New England markets delivered double-digit annualized growth rates of 12%, 28%, and 10%, respectively, while balances in the New York market increased 6% following a strong third quarter.

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