Exhibit 99.1

For further information:

Media Contact:

Amy Yuhn

312-564-1378

ayuhn@theprivatebank.com

Investor Relations Contact:

Beth Coronelli

312-564-6052

bcoronelli@theprivatebank.com

For Immediate Release

PrivateBancorp Reports Fourth Quarter and Full Year 2010 Results

Financial performance improves in 2010; Fourth quarter net income increases to $0.12 per share

CHICAGO, January 25, 2011 – PrivateBancorp, Inc. (NASDAQ: PVTB) today reported net income of $8.5 million, or $0.12 per diluted share, for the fourth quarter 2010, compared to a net loss of $18.6 million, or $0.30 per diluted share, for the fourth quarter 2009. For the 12 months ended December 31, 2010, the Company had a net loss of $12.1 million, or $0.17 per diluted share, compared to a net loss of $42.5 million, or $0.95 per diluted share, for the prior year.

“Throughout 2010, we continued to reshape our business and maintained our focus on expanding new and existing client relationships,” said Larry D. Richman, President and Chief Executive Officer, PrivateBancorp, Inc. “We are managing through the challenging credit environment and have seen stabilization in certain credit quality metrics. I am pleased with our net loan growth in the third and fourth quarters, showing an ability to gain market share despite the continued low loan demand.

“Strong client deposits, enhancements in our product set, and expense management helped drive net revenue and operating performance higher during the year,” Richman continued. “I have confidence that our Company is resilient and well positioned to execute our commercial middle market strategy.”

Fourth Quarter and Full Year Results

 

•

Non-performing assets were relatively flat at $454.6 million at year end. Non-performing loans continued to trend modestly lower, and increased other real estate owned (OREO) disposition activity during the fourth quarter kept OREO levels relatively unchanged. The allowance for loan losses was $222.8 million at year end, or 2.44 percent of total loans.

 

1

---

•

Net revenue increased to $136.1 million in the fourth quarter. Full year net revenue growth was 24 percent. Operating profit was consistent with the third quarter, and up 30 percent for the full year. Net interest margin was 3.36 percent for the fourth quarter, compared to 3.31 percent in the third quarter.

 

•

Total loans of $9.1 billion at year-end remained consistent with 2009 year-end levels. There was $122.2 million of net loan growth in the fourth quarter. Total deposits of $10.5 billion were flat from third quarter 2010 and increased from $9.9 billion at year-end 2009.

Credit Quality

Credit quality trends stabilized in 2010, but continued to be impacted by the weak commercial real estate sector. There were signs of stabilizing asset values and improving liquidity in the latter half of the year. Our efforts to resolve problem assets led to $40.1 million in OREO dispositions in the fourth quarter. The commercial and industrial sector strengthened and is growing as a percentage of the Company’s total loan mix. Quarterly asset quality metrics may fluctuate due to specific account movement and timing of dispositions.

The fourth quarter 2010 provision for loan losses was $34.5 million, excluding covered loan provision, down from $69.5 million in the fourth quarter 2009 and $40.0 million in the third quarter 2010. For full year 2010, the provision for loan losses was $192.0 million, excluding covered loan provision, down from $198.9 million in the prior year. Provision expense reduction from fourth quarter levels will be largely dependent on continued stabilization of underlying commercial real estate asset values, marketplace liquidity, and slowing non-performing loan inflows. The allowance for loan losses as a percentage of total loans was 2.44 percent at December 31, 2010, compared to 2.45 percent at December 31, 2009, and 2.48 percent at September 30, 2010. The allowance for loan losses as a percentage of non-performing loans was 61 percent at year-end 2010, compared to 56 percent at year-end 2009, and 60 percent at September 30, 2010.

Net charge-offs were $35.1 million for the quarter ended December 31, 2010, compared to $40.6 million for the fourth quarter 2009 and $49.1 million for the third quarter 2010. For the year ended December 31, 2010, net charge-offs were $190.9 million, compared to $89.9 million in the prior year.

Non-performing assets totaled $454.6 million at December 31, 2010, compared to $436.9 million at December 31, 2009, and $462.1 million at September 30, 2010. Non-performing assets to total assets were 3.65 percent at December 31, 2010, compared to 3.63 percent at December 31, 2009, and 3.67 percent at September 30, 2010.

 

2

---

Restructured loans accruing interest were $87.6 million at the end of fourth quarter 2010, compared to $53.4 million at the end of third quarter 2010. The Company utilizes loan restructuring to maximize economic recovery.

Credit quality results exclude $397.2 million in covered assets as of the end of the fourth quarter, referring to certain assets acquired through an FDIC-assisted transaction that are subject to a loss-sharing agreement, compared to $502.0 million in the fourth quarter 2009 and $419.9 million in the third quarter 2010.

Operating Performance

The Company reported 24 percent net revenue growth and a 30 percent increase in operating profit for the full year. Overall performance was driven by margin expansion on a year-over-year basis resulting from reduction in cost of funds and a favorable shift in the deposit mix, as well as cross-sell opportunities.

Net revenue was $136.1 million in the fourth quarter 2010, up from $114.8 million in the fourth quarter 2009 and $123.2 million in the third quarter 2010. Net revenue increased to $497.8 million for full year 2010, compared to $400.1 million in 2009. Operating profit was $53.9 million in the fourth quarter 2010, compared to $46.3 million in the fourth quarter 2009 and $55.1 million in the third quarter 2010. For the full year, operating profit increased to $198.2 million, compared to $152.7 million in 2009.

Net interest income was relatively flat at $100.3 million in the fourth quarter 2010, compared to $99.6 million for the fourth quarter 2009 and $99.0 million in the third quarter 2010. For the full year 2010, net interest income increased 23 percent to $401.0 million, from $325.0 million for full year 2009.

Net interest margin was 3.36 percent for the fourth quarter 2010, compared to 3.48 percent in the fourth quarter 2009 and 3.31 percent for the third quarter 2010. Excluding covered asset accretion, the net interest margin was 3.31 percent for the fourth quarter 2010, up from 3.13 percent in the fourth quarter 2009 and 3.28 percent in the third quarter 2010. Net interest margin continued to benefit in the fourth quarter from deposit repricing. With the continued low rate environment, further opportunities to reduce cost of funds will likely be limited in 2011.

Non-interest income was $34.9 million in the fourth quarter 2010, compared to $14.3 million in the fourth quarter 2009 and $23.4 million in the third quarter 2010. The fourth quarter 2010 results included a net securities gain of $9.3 million, compared to a $3.0 million net securities gain in the third quarter 2010. For the 12 months ended December 31, 2010, non-interest income increased to $93.2 million, up from $71.5 million for the year ended December 31, 2009.

 

3

---

Non-interest income growth reflects continued success in expanding client relationships. Treasury management remained strong, increasing 5 percent from third quarter to $4.6 million and increasing 67 percent over the full year. Capital markets revenue, excluding the credit valuation adjustment, increased 26 percent in the fourth quarter, and decreased 3 percent year-over-year. Wealth management fee income also increased, up 6 percent from the third quarter to $4.6 million, and up 17 percent in 2010 over the prior year. New loan originations drove growth in loan and letter of credit fees.

Mortgage banking income rose 25 percent for the quarter and 14 percent for the full year, consistent with the broader industry trend of increased refinancing based on the low interest rate environment.

Expenses

The Company continued to employ disciplined expense management throughout 2010, although total expenses were impacted by higher workout-related credit costs and increased salary expense primarily due to incentive compensation accruals.

Non-interest expense was $82.1 million in the fourth quarter 2010, compared to $68.5 million in the fourth quarter 2009 and $68.1 million in the third quarter 2010. Non-interest expense for the full year 2010 was $299.6 million, compared to $247.4 million for the full year 2009.

Fourth quarter 2010 non-interest expense included an increase in credit and collection costs, primarily related to foreclosed property expense. Credit-related expense levels were higher in the fourth quarter than previous periods, reflecting the uneven nature of workout activity. Salary and benefit expense was higher in the fourth quarter, impacted by an increase in commission-based compensation and the adjustment during the third quarter to the annual incentive compensation accrual, which lowered third-quarter expense.

The efficiency ratio was 60.4 percent in the fourth quarter 2010, compared to 59.7 percent in the fourth quarter 2009 and 55.3 percent in the third quarter 2010.

Balance Sheet

Net loan growth was $122.2 million in the fourth quarter. Efforts to strategically reshape the portfolio resulted in a 6 percent, or $287.7 million, increase in commercial and industrial loans in the fourth quarter. Commercial real estate and construction decreased by 5 percent in the fourth quarter. Over the course of the year, commercial and industrial loans increased 14 percent and commercial real estate and construction loans decreased by 12 percent.

Total assets were $12.5 billion at December 31, 2010, compared to $12.0 billion at December 31, 2009, and $12.6 billion at September 30, 2010.

 

4

---

Total loans were $9.1 billion at year-end 2010, compared to $9.0 billion at year-end 2009 and $9.0 billion at September 30, 2010. Commercial and industrial loans accounted for 54 percent of total loans, while commercial real estate and construction loans were 37 percent at year-end 2010.

Total deposits were $10.5 billion at December 31, 2010, compared to $9.9 billion at December 31, 2009, and $10.5 billion at September 30, 2010. Client deposits, representing 94 percent of total deposits, were $9.9 billion at the end of the fourth quarter 2010, compared to $9.3 billion at the end of fourth quarter 2009 and $10.1 billion at September 30, 2010. Client deposits at December 31, 2010, included $2.3 billion in non-interest bearing deposits. Brokered deposits (excluding $852.5 million in client CDARS^® deposits) were 6 percent of total deposits at year-end 2010, compared to 6 percent a year ago and 4 percent at the end of the third quarter 2010.

The Company’s investment securities portfolio was $1.9 billion at December 31, 2010, compared to $1.6 billion at December 31, 2009, and $2.1 billion at September 30, 2010. Net unrealized gains were $32.0 million, compared to $44.8 million at the end of the fourth quarter 2009 and $78.7 million at the end of the third quarter 2010. The change in net unrealized gains was primarily due to an increase in interest rates, as well as sales of securities in the fourth quarter. The securities portfolio is primarily composed of U.S. government agency backed mortgage pools, agency collateralized mortgage obligations, and investment grade municipal bonds.

Federal funds sold and other short-term investments, primarily cash on deposit with the federal reserve, were $541.3 million at the end of the fourth quarter 2010, up from $218.9 million at the end of fourth quarter 2009 and $532.6 million in the third quarter 2010.

Capital

As of December 31, 2010, the total risk-based capital ratio was 14.18 percent, the Tier 1 risk-based capital ratio was 12.06 percent, and the leverage ratio was 10.78 percent. Tier 1 common capital ratio was 7.69 percent and tangible common equity ratio was 7.10 percent at the end of the fourth quarter 2010.

Quarterly Conference Call and Webcast Presentation

PrivateBancorp will host a conference call on Tuesday, January 25, 2011, at 10 a.m. CT. The call may be accessed by telephone at (888) 782-9127 (U.S. and Canada) or (706) 634-5643 (International) and entering passcode #31405006. A live webcast of the call can be accessed on the Company website at www.theprivatebank.com by visiting the Investor Relations tab under the About Us section. A rebroadcast will be available beginning approximately two hours after the call until midnight on February 1, 2011, by calling (800) 642-1687 (U.S. and Canada) or (706) 645-9291 (International) and entering passcode #31405006.

 

5

---

About PrivateBancorp, Inc.

PrivateBancorp, Inc., through its subsidiaries, delivers customized business and personal financial services to middle-market companies, as well as business owners, executives, entrepreneurs and families in all of the markets and communities we serve. As of December 31, 2010, the Company had 34 offices in 10 states and $12.5 billion in assets. The Company website is www.theprivatebank.com.

Forward-Looking Statements

Statements contained in this press release that are not historical facts may constitute forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. The Company’s ability to predict results or the actual effect of future plans, strategies, or events is inherently uncertain. Factors which could cause actual results to differ from those reflected in forward looking statements include, but are not limited to: unforeseen credit quality problems or further deterioration in asset quality that could result in charge-offs greater than the Company has anticipated in its allowance for loan losses; the occurrence of unexpected events that adversely impact one or more large credits; further declines in commercial real estate values in the Company’s market areas, particularly in Chicago; significant increases in workout-related credit costs or slower than anticipated dispositions of other real estate owned (OREO) which may result in increased losses or carrying costs; slower than anticipated economic recovery or further deterioration in economic conditions; weakness in the commercial and industrial sector; unanticipated withdrawals of significant client deposits; unavailability in the future of sufficient or cost-effective sources of liquidity or funding; difficulty in raising capital on acceptable terms when necessary or required; loss of key personnel or an inability to recruit or attract appropriate talent; potential for significant charges if our deferred tax or goodwill assets suffer impairment; unanticipated changes in interest rates or significant tightening of credit spreads; competitive pricing pressures; uncertainty regarding implications of the Dodd-Frank Act and the rules and regulations to be adopted in connection with implementation of legislation and the Company’s ability to maintain regulatory capital at appropriate levels; other legislative, regulatory or accounting changes affecting financial services companies and/or the products and services offered by financial services companies; uncertainties related to potential costs associated with pending litigation; or failures or disruptions to the Company’s data processing or other information systems. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on our forward-looking statements. The Company assumes no obligation to update publicly any of these statements in light of future events unless required under the federal securities laws.

 

6

---

Non-GAAP Measures

This press release contains both financial measures based on accounting principles generally accepted in the United States (GAAP) and non-GAAP based financial measures. The Company believes that these non-GAAP financial measures provide information useful to investors in understanding the underlying operational performance of the Company, its business, and performance trends and facilitates comparisons with the performance of others in the banking industry. If non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconcilement to the comparable GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

Editor’s Note: Financial highlights attached.

 

7

---

Consolidated Income Statements Unaudited (Amounts in thousands except per share data)

 

		Three Months Ended December 31,								Twelve Months Ended December 31,
		2010				2009				2010				2009
Interest Income
Loans, including fees		$	105,375			$	115,140			$	434,884			$	411,830
Federal funds sold and other short-term investments			366				340				1,950				1,112
Securities:
Taxable			15,453				15,672				64,316				58,663
Exempt from Federal income taxes			1,644				1,672				6,775				7,107
Total interest income			122,838				132,824				507,925				478,712
Interest Expense
Interest-bearing demand deposits			702				848				3,148				2,646
Savings deposits and money market accounts			7,437				9,022				34,431				29,635
Brokered and time deposits			7,367				13,959				36,458				79,335
Short-term borrowings			962				1,613				5,088				8,094
Long-term debt			6,023				7,820				27,843				34,018
Total interest expense			22,491				33,262				106,968				153,728
Net interest income			100,347				99,562				400,957				324,984
Provision for loan and covered loan losses			35,166				70,077				194,541				199,419
Net interest income after provision for loan and covered loan losses			65,181				29,485				206,416				125,565
Non-interest Income
Wealth management			4,574				4,081				18,140				15,459
Mortgage banking			3,479				2,243				10,187				8,930
Capital markets products			6,791				2,409				14,286				17,150
Treasury management			4,625				3,366				16,920				10,148
Bank owned life insurance			459				442				1,742				1,728
Other income, service charges, and fees			5,628				1,918				19,789				11,659
Net securities gains (losses)			9,309				(149	)			12,182				7,381
Early extinguishment of debt			—				—				—				(985	)
Total non-interest income			34,865				14,310				93,246				71,470
Non-interest Expense
Salaries and employee benefits			38,577				31,020				149,863				123,653
Net occupancy expense			7,385				7,039				29,935				26,170
Technology and related costs			2,447				3,503				10,224				10,599
Marketing			1,997				3,568				8,501				9,843
Professional services			3,020				5,562				12,931				16,327
Investment manager expenses			608				576				2,467				2,322
Net foreclosed property expenses			7,028				1,810				15,192				5,675
Supplies and printing			305				436				1,209				1,465
Postage, telephone, and delivery			1,049				855				3,659				3,060
Insurance			8,348				5,015				26,534				22,607
Amortization of intangibles			402				536				1,645				1,737
Loan and collection expense			4,029				4,526				14,623				9,617
Other expenses			6,953				4,082				22,815				14,340
Total non-interest expense			82,148				68,528				299,598				247,415
Income (loss) before income taxes			17,898				(24,733	)			64				(50,380	)
Income tax provision (benefit)			5,919				(9,556	)			(1,737	)			(20,564	)
Net income (loss)			11,979				(15,177	)			1,801				(29,816	)
Net income (loss) attributable to noncontrolling interests			67				64				284				247
Net income (loss) attributable to controlling interests			11,912				(15,241	)			1,517				(30,063	)
Preferred stock dividends and discount accretion			3,409				3,389				13,607				12,443
Net income (loss) available to common stockholders		$	8,503			$	(18,630	)		$	(12,090	)		$	(42,506	)
Per Common Share Data
Basic		$	0.12			$	(0.30	)		$	(0.17	)		$	(0.95	)
Diluted		$	0.12			$	(0.30	)		$	(0.17	)		$	(0.95	)
Common dividends per share		$	0.01			$	0.01			$	0.04			$	0.04
Weighted-average shares outstanding			70,098				61,608				70,024				44,516
Weighted-average diluted shares outstanding			70,135				61,608				70,024				44,516

Note: Due to the net loss available to common stockholders reported for the twelve months ended December 31, 2010 and the three and twelve months ended December 31, 2009, all potentially dilutive common stock equivalents were excluded from the diluted net loss per share computation as their inclusion would have been antidilutive.

---

Quarterly Consolidated Income Statements Unaudited (Amounts in thousands except per share data)

 

		4Q10				3Q10				2Q10				1Q10				4Q09
Interest Income
Loans, including fees		$	105,375			$	105,608			$	112,839			$	111,062			$	115,140
Federal funds sold and other short-term investments			366				376				664				544				340
Securities:
Taxable			15,453				16,996				16,417				15,450				15,672
Exempt from Federal income taxes			1,644				1,661				1,752				1,718				1,672
Total interest income			122,838				124,641				131,672				128,774				132,824
Interest Expense
Interest-bearing demand deposits			702				675				805				966				848
Savings deposits and money market accounts			7,437				8,512				9,368				9,114				9,022
Brokered and time deposits			7,367				8,130				9,537				11,424				13,959
Short-term borrowings			962				1,297				1,383				1,446				1,613
Long-term debt			6,023				7,068				7,247				7,505				7,820
Total interest expense			22,491				25,682				28,340				30,455				33,262
Net interest income			100,347				98,959				103,332				98,319				99,562
Provision for loan and covered loan losses			35,166				41,435				45,392				72,548				70,077
Net interest income after provision for loan and covered loan losses			65,181				57,524				57,940				25,771				29,485
Non-interest Income
Wealth management			4,574				4,306				4,836				4,424				4,081
Mortgage banking			3,479				2,790				1,797				2,121				2,243
Capital markets products			6,791				3,104				4,113				278				2,409
Treasury management			4,625				4,406				4,281				3,608				3,366
Bank owned life insurance			459				428				420				435				442
Other income, service charges, and fees			5,628				5,297				4,691				4,173				1,918
Net securities gains (losses)			9,309				3,029				(185	)			29				(149	)
Total non-interest income			34,865				23,360				19,953				15,068				14,310
Non-interest Expense
Salaries and employee benefits			38,577				34,412				37,485				39,389				31,020
Net occupancy expense			7,385				7,508				7,747				7,295				7,039
Technology and related costs			2,447				2,310				2,424				3,043				3,503
Marketing			1,997				2,039				2,363				2,102				3,568
Professional services			3,020				2,708				3,000				4,203				5,562
Investment manager expenses			608				581				643				635				576
Net foreclosed property expenses			7,028				3,075				3,686				1,403				1,810
Supplies and printing			305				292				322				290				436
Postage, telephone, and delivery			1,049				779				866				965				855
Insurance			8,348				7,113				5,654				5,419				5,015
Amortization of intangibles			402				413				415				415				536
Loan and collection expense			4,029				3,405				4,610				2,579				4,526
Other expenses			6,953				3,442				6,787				5,633				4,082
Total non-interest expense			82,148				68,077				76,002				73,371				68,528
Income (loss) before income taxes			17,898				12,807				1,891				(32,532	)			(24,733	)
Income tax provision (benefit)			5,919				4,786				(766	)			(11,676	)			(9,556	)
Net income (loss)			11,979				8,021				2,657				(20,856	)			(15,177	)
Net income (loss) attributable to noncontrolling interests			67				71				76				70				64
Net income (loss) attributable to controlling interests			11,912				7,950				2,581				(20,926	)			(15,241	)
Preferred stock dividends and discount accretion			3,409				3,405				3,399				3,394				3,389
Net income (loss) available to common stockholders		$	8,503			$	4,545			$	(818	)		$	(24,320	)		$	(18,630	)
Per Common Share Data
Basic		$	0.12			$	0.06			$	(0.01	)		$	(0.35	)		$	(0.30	)
Diluted		$	0.12			$	0.06			$	(0.01	)		$	(0.35	)		$	(0.30	)
Common dividends per share		$	0.01			$	0.01			$	0.01			$	0.01			$	0.01
Weighted-average shares outstanding			70,098				70,067				69,995				69,933				61,608
Weighted-average diluted shares outstanding			70,135				70,097				69,995				69,933				61,608

Note: Due to the net loss available to common stockholders reported for the first and second quarters 2010 and fourth quarter 2009, all potentially dilutive common stock equivalents were excluded from the diluted net loss per share computation as their inclusion would have been antidilutive.

---

Consolidated Balance Sheets (Dollars in thousands)

 

		12/31/10				09/30/10				06/30/10				03/31/10				12/31/09
		unaudited				unaudited				unaudited				unaudited				audited
Assets
Cash and due from banks		$	112,772			$	144,298			$	111,997			$	107,618			$	320,160
Fed funds sold and other short-term investments			541,316				532,637				769,803				1,146,814				218,935
Loans held for sale			30,758				44,271				20,762				16,224				28,363
Securities available-for-sale, at fair value			1,881,786				2,033,527				2,029,962				1,769,138				1,569,541
Non-marketable equity investments			23,537				25,587				33,825				29,475				29,413
Loans-excluding covered assets, net of unearned fees			9,114,357				8,992,129				8,851,439				8,898,228				9,046,625
Allowance for loan losses			(222,821	)			(223,392	)			(232,411	)			(236,851	)			(221,688	)
Loans, net of allowance for loan losses and unearned fees			8,891,536				8,768,737				8,619,028				8,661,377				8,824,937
Covered assets			397,210				419,865				434,828				468,939				502,034
Allowance for covered loan losses			(15,334	)			(12,174	)			(5,176	)			(5,176	)			(2,764	)
Covered assets, net of allowance for covered loan losses			381,876				407,691				429,652				463,763				499,270
Other real estate owned			88,728				90,944				68,693				60,755				41,497
Premises, furniture, and equipment, net			40,975				42,347				40,599				41,350				41,344
Accrued interest receivable			33,854				34,697				35,278				34,766				35,562
Investment in bank owned life insurance			49,408				48,950				48,521				48,101				47,666
Goodwill			94,621				94,633				94,646				94,658				94,671
Other intangible assets			16,840				17,242				17,655				18,070				18,485
Derivative assets			100,250				128,891				113,493				85,152				71,540
Other assets			177,364				169,513				177,126				202,975				191,200
Total assets		$	12,465,621			$	12,583,965			$	12,611,040			$	12,780,236			$	12,032,584
Liabilities
Demand deposits:
Non-interest-bearing		$	2,253,661			$	2,173,419			$	2,090,222			$	1,886,427			$	1,840,900
Interest-bearing			616,761				614,049				738,631				714,700				752,728
Savings deposits and money market accounts			4,821,823				5,039,970				5,066,653				4,691,170				4,053,975
Brokered deposits			1,450,827				1,241,366				1,236,589				1,831,306				1,566,139
Time deposits			1,392,357				1,461,668				1,437,204				1,498,322				1,678,172
Total deposits			10,535,429				10,530,472				10,569,299				10,621,925				9,891,914
Short-term borrowings			118,561				179,651				164,069				241,293				214,975
Long-term debt			414,793				439,566				473,720				498,874				533,023
Accrued interest payable			5,968				7,603				7,727				10,357				9,673
Derivative liabilities			102,018				132,594				116,599				86,873				71,958
Other liabilities			60,942				48,940				43,534				100,687				75,425
Total liabilities			11,237,711				11,338,826				11,374,948				11,560,009				10,796,968
Equity
Preferred stock			238,903				238,542				238,185				237,833				237,487
Common stock			70,972				70,657				70,630				70,500				70,444
Treasury stock			(20,054	)			(19,023	)			(19,003	)			(18,595	)			(18,489	)
Additional paid-in capital			954,977				950,721				946,981				944,095				940,338
Retained earnings			(36,999	)			(44,784	)			(48,638	)			(47,112	)			(22,093	)
Accumulated other comprehensive income, net of tax			20,078				48,776				47,758				33,403				27,896
Total stockholders’ equity			1,227,877				1,244,889				1,235,913				1,220,124				1,235,583
Noncontrolling interests			33				250				179				103				33
Total equity			1,227,910				1,245,139				1,236,092				1,220,227				1,235,616
Total liabilities and equity		$	12,465,621			$	12,583,965			$	12,611,040			$	12,780,236			$	12,032,584

Note: Certain reclassifications have been made to prior period financial statements to place them on a basis comparable with the current period financial statements.

---

Selected Financial Data Unaudited (Amounts in thousands except per share data)

 

		4Q10				3Q10				2Q10				1Q10				4Q09
Selected Statement of Income Data:
Net interest income		$	100,347			$	98,959			$	103,332			$	98,319			$	99,562
Net revenue (1) (2)		$	136,088			$	123,210			$	124,209			$	114,273			$	114,802
Operating profit (1) (2)		$	53,940			$	55,133			$	48,207			$	40,902			$	46,274
Income (loss) before taxes		$	17,898			$	12,807			$	1,891			$	(32,532	)		$	(24,733	)
Net income (loss) available to common stockholders		$	8,503			$	4,545			$	(818	)		$	(24,320	)		$	(18,630	)
Per Common Share Data:
Basic earnings (loss) per share		$	0.12			$	0.06			$	(0.01	)		$	(0.35	)		$	(0.30	)
Diluted earnings (loss) per share (3)		$	0.12			$	0.06			$	(0.01	)		$	(0.35	)		$	(0.30	)
Dividends		$	0.01			$	0.01			$	0.01			$	0.01			$	0.01
Book value (period end) (1)		$	13.87			$	14.10			$	13.98			$	13.77			$	13.99
Tangible book value (period end) (1) (2)		$	12.30			$	12.53			$	12.40			$	12.19			$	12.41
Market value (close)		$	14.38			$	11.39			$	11.08			$	13.70			$	8.97
Book value multiple			1.04	x			0.81	x			0.79	x			0.99	x			0.64	x
Share Data:
Weighted average common shares outstanding			70,098				70,067				69,995				69,933				61,608
Diluted average common shares outstanding (3)			70,135				70,097				69,995				69,933				61,608
Common shares issued (at period end)			71,979				71,964				71,978				71,877				71,869
Common shares outstanding (at period end)			71,327				71,386				71,403				71,333				71,332
Performance Ratios:
Return on average assets			0.38	%			0.25	%			0.08	%			-0.68	%			-0.50	%
Return on average common equity			3.31	%			1.77	%			-0.33	%			-9.86	%			-7.96	%
Net interest margin - tax-equivalent (1) (2)			3.36	%			3.31	%			3.41	%			3.36	%			3.48	%
Covered asset accretion contribution to net interest margin			0.05	%			0.03	%			0.28	%			0.25	%			0.35	%
Net interest margin, excluding impact of covered asset accretion			3.31	%			3.28	%			3.13	%			3.11	%			3.13	%
Fee revenue as a percent of total revenue (1)			20.30	%			17.04	%			16.31	%			13.27	%			12.68	%
Non-interest income to average assets			1.11	%			0.74	%			0.63	%			0.49	%			0.47	%
Non-interest expense to average assets			2.61	%			2.16	%			2.39	%			2.39	%			2.26	%
Net overhead ratio (1)			1.50	%			1.42	%			1.76	%			1.90	%			1.79	%
Efficiency ratio (1) (2)			60.36	%			55.25	%			61.19	%			64.21	%			59.69	%
Selected Information:
Assets under management and administration (1)		$	4,271,602			$	4,023,821			$	3,746,934			$	3,983,066			$	3,983,623
Credit valuation adjustment (1)		$	1,826			$	(830	)		$	(1,271	)		$	(1,333	)		$	796
Balance Sheet Ratios:
Loans to Deposits (period end) (4)			86.51	%			85.39	%			83.75	%			83.77	%			91.45	%
Average interest-earning assets to average interest-bearing liabilities			134.76	%			133.96	%			130.58	%			129.96	%			127.44	%
Capital Ratios (period end):
Total risk-based (1)			14.18	%			14.40	%			14.83	%			14.91	%			14.69	%
Tier 1 risk-based (1)			12.06	%			12.25	%			12.43	%			12.49	%			12.32	%
Leverage (1)			10.78	%			10.71	%			10.39	%			10.57	%			11.17	%
Tier 1 common capital (1) (2)			7.69	%			7.79	%			7.86	%			7.86	%			7.86	%
Tangible common equity to tangible assets (1) (2)			7.10	%			7.17	%			7.09	%			6.87	%			7.42	%
Total equity to total assets			9.85	%			9.89	%			9.80	%			9.55	%			10.27	%

 

(1)	Refer to Glossary of Terms for definition.

(2)	This is a non-GAAP measure, refer to Non-GAAP Measures for a reconciliation from non-GAAP to GAAP.

(3)	For the first and second quarters 2010 and fourth quarters 2009, diluted shares are equal to basic shares due to the net loss. The calculation of diluted earnings per share for those periods results in anti-dilution.

(4)	Excludes covered assets. Refer to Glossary of Terms for definition.

 

---

Loan Composition (excluding covered assets(1)) (Dollars in thousands)

 

		12/31/10				% of Total				09/30/10				% of Total				06/30/10				% of Total				03/31/10				% of Total				12/31/09				% of Total
		unaudited								unaudited								unaudited								unaudited								audited
Commercial and industrial		$	4,015,257				44	%		$	3,850,498				43	%		$	3,564,504				40	%		$	3,504,531				39	%		$	3,572,695				40	%
Commercial - owner-occupied CRE			897,620				10	%			774,678				9	%			790,629				9	%			783,671				9	%			743,307				8	%
Total commercial			4,912,877				54	%			4,625,176				52	%			4,355,133				49	%			4,288,202				48	%			4,316,002				48	%
Commercial real estate			2,400,923				26	%			2,534,600				28	%			2,604,977				29	%			2,657,357				30	%			2,547,693				28	%
Commercial real estate - multi-family			457,246				5	%			471,989				5	%			502,708				6	%			520,186				6	%			553,473				6	%
Total commercial real estate			2,858,169				31	%			3,006,589				33	%			3,107,685				36	%			3,177,543				36	%			3,101,166				34	%
Construction			530,733				6	%			556,960				6	%			571,437				7	%			600,226				7	%			768,358				8	%
Residential real estate			319,146				4	%			324,434				4	%			309,001				3	%			316,012				4	%			319,463				4	%
Home equity			197,179				2	%			197,977				2	%			203,053				2	%			212,421				2	%			220,025				2	%
Personal			296,253				3	%			280,993				3	%			305,130				3	%			303,824				3	%			321,611				4	%
Total loans		$	9,114,357				100	%		$	8,992,129				100	%		$	8,851,439				100	%		$	8,898,228				100	%		$	9,046,625				100	%

 

 

Commercial Real Estate and Construction Loans Portfolio by Collateral Type

Unaudited

 

		12/31/10								09/30/10								12/31/09
		Amount				% of Total				Amount				% of Total				Amount				% of Total
Commercial Real Estate Portfolio
Land		$	311,464				11	%		$	347,368				12	%		$	398,506				13	%
Residential 1-4 family			139,689				5	%			166,587				5	%			177,711				6	%
Multi-family			457,246				16	%			471,989				16	%			553,473				18	%
Industrial/warehouse			391,694				14	%			381,940				13	%			354,575				11	%
Office			531,193				18	%			511,654				17	%			490,940				16	%
Retail			450,135				16	%			510,412				17	%			494,139				16	%
Health care			114,545				4	%			124,335				4	%			63,285				2	%
Mixed use/other			462,203				16	%			492,304				16	%			568,537				18	%
Total commercial real estate		$	2,858,169				100	%		$	3,006,589				100	%		$	3,101,166				100	%
Construction Portfolio
Land		$	46,036				9	%		$	37,077				7	%		$	91,207				12	%
Residential 1-4 family			30,698				6	%			28,726				5	%			61,854				8	%
Multi-family			77,685				15	%			92,225				17	%			131,001				17	%
Industrial/warehouse			34,703				7	%			36,100				6	%			36,455				5	%
Office			92,369				17	%			124,601				22	%			117,241				15	%
Retail			92,268				17	%			95,332				17	%			132,395				17	%
Mixed use/other			156,974				29	%			142,899				26	%			198,205				26	%
Total construction		$	530,733				100	%		$	556,960				100	%		$	768,358				100	%

 

(1)	Refer to Glossary of Terms for definition.

Note: Certain reclassifications have been made to prior period presentation of loan portfolio composition to align loan categories to be consistent with those used for purposes of credit quality disclosures.

---

Asset Quality (excluding covered assets(1)) Unaudited (Dollars in thousands)

 

		4Q10				3Q10				2Q10				1Q10				4Q09
Credit Quality Key Ratios
Net charge-offs to average loans			1.54	%			2.17	%			2.24	%			2.55	%			1.80	%
Total non-performing loans to total loans			4.01	%			4.13	%			4.18	%			4.28	%			4.37	%
Total non-performing assets to total assets			3.65	%			3.67	%			3.48	%			3.46	%			3.63	%
Nonaccrual loans to:
total loans			4.01	%			4.13	%			4.18	%			4.28	%			4.37	%
total assets			2.94	%			2.95	%			2.94	%			2.98	%			3.29	%
Allowance for loan losses to:
total loans			2.44	%			2.48	%			2.63	%			2.66	%			2.45	%
non-performing loans			61	%			60	%			63	%			62	%			56	%
nonaccrual loans			61	%			60	%			63	%			62	%			56	%
Non-performing assets
Loans past due 90 days and accruing		$	—			$	—			$	—			$	—			$	—
Nonaccrual loans			365,880				371,156				370,179				381,207				395,447
OREO			88,728				90,944				68,693				60,755				41,497
Total non-performing assets		$	454,608			$	462,100			$	438,872			$	441,962			$	436,944
Restructured loans accruing interest (2)		$	87,576			$	53,397			$	4,030			$	3,840			$	—
Nonperforming Loans Rollforward
Beginning balance		$	371,156			$	370,179			$	381,207			$	395,447
Additions:
New nonaccrual loans			108,526				123,557				130,400				84,919
Reductions:
Return to performing status			(6,564	)			(5,969	)			(17,984	)			(12,383	)
Paydowns and payoffs, net			(18,852	)			(18,208	)			(33,733	)			(5,708	)
Net sales			(10,595	)			(3,200	)			(8,043	)			—
Transfer to OREO			(39,795	)			(44,979	)			(31,480	)			(23,996	)
Charge-offs, net			(37,996	)			(50,224	)			(50,188	)			(57,072	)
Total reductions			(113,802	)			(122,580	)			(141,428	)			(99,159	)
Balance at end of period		$	365,880			$	371,156			$	370,179			$	381,207
OREO Rollforward
Beginning balance		$	90,944			$	68,693			$	60,755			$	41,497
New foreclosed property			40,178				44,979				31,688				24,135
Valuation adjustments			(1,994	)			(1,385	)			(2,108	)			(1,101	)
Disposals:
Sales proceeds			(40,076	)			(20,277	)			(21,514	)			(3,942	)
Net (loss) gain on sale and redemption			(324	)			(1,066	)			(128	)			166
Balance at end of period		$	88,728			$	90,944			$	68,693			$	60,755
Restructured Loans Accruing Interest Rollforward (2)
Beginning balance		$	53,397			$	4,030			$	3,840			$	—
Additions:
New restructured loans accruing interest			45,582				49,404				—				3,840
Advances			1,215				—				190				—
Reductions:
Paydowns and payoffs			(181	)			(37	)			—				—
Move to nonperforming loans			(12,437	)			—				—				—
Balance at end of period		$	87,576			$	53,397			$	4,030			$	3,840

 

(1) Refer to Glossary of Terms for definition. Covered assets are included as a component of total assets in calculations above.

(2) The third quarter 2010 presentation of restructured loans accruing interest has been revised to reflect proper classification of a single credit.

---

Asset Quality (excluding covered assets(1)) Unaudited (Dollars in thousands)

 

 

Nonaccrual Loans Stratification

 

		$5.0 Million or More				$3.0 to $4.9 Million				$1.5 to $2.9 Million				Under $1.5 Million				Total
As of December 31, 2010
Amount:
Commercial		$	50,300			$	8,420			$	7,861			$	15,565			$	82,146
Commercial real estate			61,718				52,856				33,912				54,238				202,724
Construction			11,733				4,434				8,383				8,853				33,403
Residential real estate			—				4,790				—				10,051				14,841
Personal and home equity			15,491				4,419				1,932				10,924				32,766
Total		$	139,242			$	74,919			$	52,088			$	99,631			$	365,880
Number of borrowers:
Commercial			4				2				3				50				59
Commercial real estate			9				13				16				92				130
Construction			2				1				4				14				21
Residential real estate			—				1				—				17				18
Personal and home equity			1				1				1				28				31
Total			16				18				24				201				259
As of September 30, 2010
Amount:
Commercial		$	54,272			$	14,663			$	2,673			$	16,192			$	87,800
Commercial real estate			83,229				45,592				37,071				48,083				213,975
Construction			5,351				7,576				11,047				9,615				33,589
Residential real estate			—				—				—				9,101				9,101
Personal and home equity			9,774				4,419				1,932				10,566				26,691
Total		$	152,626			$	72,250			$	52,723			$	93,557			$	371,156
Number of borrowers:
Commercial			4				4				1				42				51
Commercial real estate			10				12				18				87				127
Construction			1				2				5				17				25
Residential real estate			—				—				—				17				17
Personal and home equity			1				1				1				14				17
Total			16				19				25				177				237

 

 

Restructured Loans Accruing Interest Stratification

 

		$5.0 Million or More				$3.0 to $4.9 Million				$1.5 to $2.9 Million				Under $1.5 Million				Total
As of December 31, 2010
Amount:
Commercial		$	—			$	—			$	4,553			$	3,464			$	8,017
Commercial real estate			41,659				7,064				4,662				6,634				60,019
Construction			—				3,112				—				1,236				4,348
Residential real estate			—				—				—				798				798
Personal and home equity			13,114				—				—				1,280				14,394
Total		$	54,773			$	10,176			$	9,215			$	13,412			$	87,576
Number of borrowers:
Commercial			—				—				2				7				9
Commercial real estate			3				2				2				9				16
Construction			—				1				—				1				2
Residential real estate			—				—				—				1				1
Personal and home equity			1				—				—				1				2
Total			4				3				4				19				30
As of September 30, 2010
Amount:
Commercial		$	—			$	—			$	1,853			$	569			$	2,422
Commercial real estate			21,812				3,493				—				2,296				27,601
Personal and home equity			23,374				—				—				—				23,374
Total		$	45,186			$	3,493			$	1,853			$	2,865			$	53,397
Number of borrowers:
Commercial			—				—				1				2				3
Commercial real estate			1				1				—				3				5
Personal and home equity			1				—				—				—				1
Total			2				1				1				5				9

 

(1)	Refer to Glossary of Terms for definition. Covered assets are included as a component of total assets in calculations above.

---

Loan Portfolio Aging (excluding covered assets(1)) Unaudited (Dollars in thousands)

 

 

 

		Current				30-59 Days Past Due				60-89 Days Past Due				90 Days Past Due and Accruing				Restructured Loans Accruing Interest				Nonaccrual				Total Loans
As of December 31, 2010
Loan balances:
Commercial		$	4,820,931			$	1,024			$	759			$	—			$	8,017			$	82,146			$	4,912,877
Commercial real estate			2,572,816				10,264				12,346				—				60,019				202,724				2,858,169
Construction			491,087				—				1,895				—				4,348				33,403				530,733
Residential real estate			299,229				180				4,098				—				798				14,841				319,146
Personal and home equity			428,141				14,098				4,033				—				14,394				32,766				493,432
Total loans		$	8,612,204			$	25,566			$	23,131			$	—			$	87,576			$	365,880			$	9,114,357
Aging as a percent of loan balance:
Commercial			98.13	%			0.02	%			0.02	%			—				0.16	%			1.67	%			100.00	%
Commercial real estate			90.02	%			0.36	%			0.43	%			—				2.10	%			7.09	%			100.00	%
Construction			92.53	%			—				0.36	%			—				0.82	%			6.29	%			100.00	%
Residential real estate			93.76	%			0.06	%			1.28	%			—				0.25	%			4.65	%			100.00	%
Personal and home equity			86.78	%			2.86	%			0.80	%			—				2.92	%			6.64	%			100.00	%
Total loans			94.48	%			0.28	%			0.27	%			—				0.96	%			4.01	%			100.00	%

 

 

 

		4Q10				3Q10				2Q10				1Q10				4Q09
Nonaccrual loans:
Commercial		$	82,146			$	87,800			$	90,364			$	68,509			$	69,346
Commercial real estate			202,724				213,975				214,365				212,758				171,049
Construction			33,403				33,589				37,859				59,335				113,822
Residential real estate			14,841				9,101				9,717				16,776				14,481
Personal and home equity			32,766				26,691				17,874				23,829				26,749
Total		$	365,880			$	371,156			$	370,179			$	381,207			$	395,447
Nonaccrual loans as a percent of total loan type:
Commercial			1.67	%			1.90	%			2.07	%			1.60	%			1.61	%
Commercial real estate			7.09	%			7.12	%			6.90	%			6.70	%			5.52	%
Construction			6.29	%			6.03	%			6.63	%			9.89	%			14.81	%
Residential real estate			4.65	%			2.81	%			3.14	%			5.31	%			4.53	%
Personal and home equity			6.64	%			5.57	%			3.52	%			4.62	%			4.94	%
Total			4.01	%			4.13	%			4.18	%			4.28	%			4.37	%
Loans past due 60-89 days and still accruing:
Commercial		$	759			$	435			$	3,620			$	4,245			$	9,955
Commercial real estate			12,346				8,864				14,884				35,454				30,638
Construction			1,895				6,200				—				6,400				751
Residential real estate			4,098				2,767				1,347				170				1,654
Personal and home equity			4,033				1,104				1,147				2,112				8,595
Total		$	23,131			$	19,370			$	20,998			$	48,381			$	51,593
Loans past due 60-89 days and still accruing as a percent of total loan type:
Commercial			0.02	%			0.01	%			0.08	%			0.10	%			0.23	%
Commercial real estate			0.43	%			0.29	%			0.48	%			1.12	%			0.99	%
Construction			0.36	%			1.11	%			—				1.07	%			0.10	%
Residential real estate			1.28	%			0.85	%			0.44	%			0.05	%			0.52	%
Personal and home equity			0.80	%			0.23	%			0.23	%			0.41	%			1.59	%
Total			0.27	%			0.22	%			0.24	%			0.54	%			0.57	%
Loans past due 30-59 days and still accruing:
Commercial		$	1,024			$	2,772			$	2,741			$	11,641			$	13,427
Commercial real estate			10,264				18,869				26,073				36,740				23,983
Construction			—				3,327				258				3,252				3,391
Residential real estate			180				1,174				—				6,656				4,170
Personal and home equity			14,098				2,188				2,065				2,189				6,097
Total		$	25,566			$	28,330			$	31,137			$	60,478			$	51,068
Loans past due 30-59 days and still accruing as a percent of total loan type:
Commercial			0.02	%			0.06	%			0.06	%			0.27	%			0.31	%
Commercial real estate			0.36	%			0.63	%			0.84	%			1.16	%			0.77	%
Construction			—				0.60	%			0.05	%			0.54	%			0.44	%
Residential real estate			0.06	%			0.36	%			—				2.11	%			1.31	%
Personal and home equity			2.86	%			0.46	%			0.41	%			0.42	%			1.13	%
Total			0.28	%			0.32	%			0.35	%			0.68	%			0.56	%

 

(1)	Refer to Glossary of Terms for definition.

---

Foreclosed Real Estate (OREO), excluding covered assets(1)
Unaudited
(Dollars in thousands)

 

OREO Properties by Type
		December 31, 2010								September 30, 2010								December 31, 2009
		Number of Properties				Amount				Number of Properties				Amount				Number of Properties				Amount
Single family home			24			$	21,534				28			$	24,479				18			$	9,538
Land parcels			320				34,122				232				17,040				229				17,856
Multi-family units			14				6,061				3				1,465				3				1,888
Office/industrial			20				26,511				16				47,460				6				11,484
Retail			1				500				1				500				3				731
Total			379			$	88,728				280			$	90,944				259			$	41,497
OREO Property Location
		Illinois				Georgia				Michigan				Missouri				Other				Total
December 31, 2010
Single family home		$	14,943			$	139			$	6,194			$	258			$	—			$	21,534
Land parcels			10,874				4,772				3,626				2,747				12,103				34,122
Multi-family units			5,166				—				895				—				—				6,061
Office/industrial			13,505				1,104				3,787				—				8,115				26,511
Retail			500				—				—				—				—				500
Total		$	44,988			$	6,015			$	14,502			$	3,005			$	20,218			$	88,728
September 30, 2010
Single family home		$	16,790			$	268			$	6,014			$	997			$	410			$	24,479
Land parcels			7,141				3,424				3,479				2,996				—				17,040
Multi-family units			570				—				895				—				—				1,465
Office/industrial			20,471				1,500				5,025				—				20,464				47,460
Retail			500				—				—				—				—				500
Total		$	45,472			$	5,192			$	15,413			$	3,993			$	20,874			$	90,944
December 31, 2009
Single family home		$	2,648			$	960			$	4,250			$	1,488			$	192			$	9,538
Land parcels			7,246				3,522				4,957				2,131				—				17,856
Multi-family units			1,888				—				—				—				—				1,888
Office/industrial			—				1,548				1,200				—				8,736				11,484
Retail			500				—				231				—				—				731
Total		$	12,282			$	6,030			$	10,638			$	3,619			$	8,928			$	41,497

 

(1)	Refer to Glossary of Terms for definition.

---

Allowance for Loan Losses (excluding covered assets(1))
Unaudited
(Dollars in thousands)

 

 

 

		4Q10				3Q10				2Q10				1Q10				4Q09
Change in allowance for loan losses:
Balance at beginning of period		$	223,392			$	232,411			$	236,851			$	221,688			$	192,791
Loans charged off:
Commercial		$	(3,050	)		$	(2,541	)		$	(8,440	)		$	(18,129	)		$	(11,082	)
Commercial real estate			(21,909	)			(31,809	)			(24,956	)			(21,793	)			(13,120	)
Construction			(1,709	)			(4,882	)			(10,644	)			(10,264	)			(14,438	)
Residential real estate			(544	)			(1,715	)			(886	)			(1,590	)			(970	)
Home equity			(1,234	)			(736	)			(651	)			(1,087	)			(805	)
Personal			(8,602	)			(8,939	)			(6,346	)			(4,584	)			(1,086	)
Total loans charged off			(37,048	)			(50,622	)			(51,923	)			(57,447	)			(41,501	)
Recoveries:
Commercial		$	1,243			$	730			$	664			$	330			$	410
Commercial real estate			75				304				896				53				126
Construction			274				131				444				134				240
Residential real estate			12				4				11				6				12
Home equity			79				9				3				4				52
Personal			259				394				73				17				34
Total recoveries:			1,942				1,572				2,091				544				874
Total net loan charge-offs			(35,106	)			(49,050	)			(49,832	)			(56,903	)			(40,627	)
Provision			34,535				40,031				45,392				72,066				69,524
Balance at end of period		$	222,821			$	223,392			$	232,411			$	236,851			$	221,688
Allocation of allowance for loan losses:
General allocated reserve:
Commercial		$	52,100			$	50,863			$	55,408			$	55,324			$	43,350
Commercial real estate			72,850				75,701				76,193				77,698				77,223
Construction			16,000				17,048				17,869				18,479				23,581
Residential real estate			4,275				3,842				3,999				3,658				3,635
Home equity			3,475				2,312				2,552				2,664				2,862
Personal			3,150				4,910				5,602				5,909				5,277
Total general allocated		$	151,850			$	154,676			$	161,623			$	163,732			$	155,928
Specific reserve			70,971				68,716				70,788				73,119				65,760
Unallocated reserve			—				—				—				—				—
Total		$	222,821			$	223,392			$	232,411			$	236,851			$	221,688
Allocation of reserve by a percent of total allowance for loan losses:
General allocated reserve:
Commercial			23	%			23	%			24	%			23	%			20	%
Commercial real estate			33	%			34	%			33	%			33	%			35	%
Construction			7	%			8	%			8	%			8	%			10	%
Residential real estate			2	%			2	%			2	%			2	%			2	%
Home equity			2	%			1	%			1	%			1	%			1	%
Personal			1	%			2	%			2	%			2	%			2	%
Total general allocated			68	%			70	%			70	%			69	%			70	%
Specific reserve			32	%			30	%			30	%			31	%			30	%
Unallocated reserve			—				—				—				—				—
Total			100	%			100	%			100	%			100	%			100	%
Allowance for loan losses to:
total loans			2.44	%			2.48	%			2.63	%			2.66	%			2.45	%
non-performing loans			61	%			60	%			63	%			62	%			56	%
nonaccrual loans			61	%			60	%			63	%			62	%			56	%

 

(1)	Refer to Glossary of Terms for definition.

---

Deposits (Dollars in thousands)

 

		12/31/10				% of Total				09/30/10				% of Total				06/30/10				% of Total				03/31/10				% of Total				12/31/09				% of Total
		unaudited								unaudited								unaudited								unaudited								audited
Non-interest bearing deposits		$	2,253,661				21	%		$	2,173,419				20	%		$	2,090,222				20	%		$	1,886,427				18	%		$	1,840,900				19	%
Interest-bearing deposits			616,761				6	%			614,049				6	%			738,631				7	%			714,700				7	%			752,728				7	%
Savings deposits			190,685				2	%			178,533				2	%			170,087				1	%			163,613				1	%			141,614				1	%
Money market accounts			4,631,138				44	%			4,861,437				46	%			4,896,566				46	%			4,527,557				43	%			3,912,361				40	%
Brokered deposits:
Traditional			329,107				3	%			150,183				1	%			103,774				1	%			294,346				3	%			389,590				4	%
Client CDARS (1)			852,458				8	%			828,508				8	%			1,013,115				10	%			1,129,471				10	%			979,728				10	%
Non-client CDARS (1)			269,262				3	%			262,675				3	%			119,700				1	%			407,489				4	%			196,821				2	%
Total brokered deposits			1,450,827				14	%			1,241,366				12	%			1,236,589				12	%			1,831,306				17	%			1,566,139				16	%
Time deposits			1,392,357				13	%			1,461,668				14	%			1,437,204				14	%			1,498,322				14	%			1,678,172				17	%
Total deposits		$	10,535,429				100	%		$	10,530,472				100	%		$	10,569,299				100	%		$	10,621,925				100	%		$	9,891,914				100	%
Client deposits (1)		$	9,937,060				94	%		$	10,117,614				96	%		$	10,345,825				98	%		$	9,920,090				93	%		$	9,305,503				94	%

 

(1)	Refer to Glossary of Terms for definition.

 

---

Net Interest Margin
Unaudited
(Dollars in thousands)

 

		Three Months Ended December 31,
		2010												2009
		Average Balance				Interest				Rate				Average Balance				Interest				Rate
Assets:
Fed funds sold and other short-term investments		$	570,264			$	366				0.26	%		$	335,990			$	340				0.40	%
Securities:
Taxable			1,718,338				15,453				3.60	%			1,424,474				15,672				4.40	%
Tax-exempt (1)			164,241				2,520				6.14	%			159,021				2,602				6.55	%
Total securities			1,882,579				17,973				3.82	%			1,583,495				18,274				4.62	%
Loans, excluding covered assets:
Commercial			4,699,681				53,922				4.55	%			4,202,797				49,161				4.64	%
Commercial real estate			2,966,730				31,960				4.22	%			2,956,904				33,315				4.41	%
Construction			549,967				5,261				3.80	%			946,258				7,042				2.95	%
Residential			366,637				4,239				4.62	%			335,005				4,282				5.11	%
Personal and home equity			495,845				4,482				3.59	%			537,379				5,191				3.83	%
Total loans, excluding covered assets (2)			9,078,860				99,864				4.35	%			8,978,343				98,991				4.36	%
Total interest-earning assets before covered assets (1)			11,531,703				118,203				4.06	%			10,897,828				117,605				4.27	%
Covered assets (3)			387,146				5,511				5.57	%			513,038				16,149				12.34	%
Total interest-earning assets (1)		$	11,918,849			$	123,714				4.11	%		$	11,410,866			$	133,754				4.63	%
Cash and due from banks			143,504												269,436
Allowance for loan and covered loan losses			(240,720	)											(190,512	)
Other assets			692,026												550,577
Total assets		$	12,513,659											$	12,040,367
Liabilities and Equity:
Interest-bearing demand deposits		$	696,877			$	702				0.40	%		$	628,760			$	848				0.54	%
Savings deposits			184,704				206				0.44	%			138,211				283				0.81	%
Money market accounts			4,812,571				7,231				0.60	%			4,024,286				8,739				0.86	%
Time deposits			1,427,904				4,954				1.38	%			1,727,566				7,384				1.70	%
Brokered deposits			1,165,207				2,413				0.82	%			1,572,292				6,575				1.66	%
Total interest-bearing deposits			8,287,263				15,506				0.74	%			8,091,115				23,829				1.17	%
Short term borrowings			124,716				962				3.02	%			306,347				1,613				2.06	%
Long term debt			432,264				6,023				5.54	%			556,126				7,820				5.58	%
Total interest-bearing liabilities			8,844,243				22,491				1.01	%			8,953,588				33,262				1.47	%
Non-interest bearing demand deposits			2,224,807												1,770,036
Other liabilities			185,437												150,476
Equity			1,259,172												1,166,267
Total liabilities and equity		$	12,513,659											$	12,040,367
Net interest spread (4)											3.10	%											3.16	%
Effect of non interest-bearing funds											0.26	%											0.32	%
Net interest income/margin (1) (4) (5)						$	101,223				3.36	%						$	100,492				3.48	%

 

(1)	Interest income and yields are presented on a tax-equivalent basis, assuming a federal income tax rate of 35%. This is a non-GAAP measure, refer to Non-GAAP Measures for a reconciliation of the effect of the tax-equivalent adjustment.

(2)	Non-accrual loans are included in the average balances. Interest foregone on these loans is estimated to be approximately $4.3 million and $4.4 million for the quarters ended December 31, 2010 and 2009, respectively, and is based on the average loan portfolio yield for the respective period.

(3)	Covered interest-earning assets consist of loans acquired through an FDIC-assisted transaction that are subject to a loss share agreement and the related indemnification asset.

(4)	Refer to Glossary of Terms for definition.

(5)	For the quarters ended December 31, 2010 and 2009, accretion related to covered assets contributed to net interest margin by 5 and 35 basis points, respectively.

Note: Certain reclassifications have been made to prior period presentation of loan portfolio composition to align loan categories to be consistent with those used for purposes of credit quality disclosures.

---

Net Interest Margin
Unaudited
(Dollars in thousands)

 

		Three Months Ended December 31,												Three Months Ended September 30,
		2010												2010
		Average Balance				Interest				Rate				Average Balance				Interest				Rate
Assets:
Fed funds sold and other short-term investments		$	570,264			$	366				0.26	%		$	594,319			$	376				0.25	%
Securities:
Taxable			1,718,338				15,453				3.60	%			1,809,969				16,996				3.76	%
Tax-exempt (1)			164,241				2,520				6.14	%			166,252				2,552				6.14	%
Total securities			1,882,579				17,973				3.82	%			1,976,221				19,548				3.96	%
Loans, excluding covered assets:
Commercial			4,699,681				53,922				4.55	%			4,426,851				51,835				4.65	%
Commercial real estate			2,966,730				31,960				4.22	%			3,096,387				33,777				4.27	%
Construction			549,967				5,261				3.80	%			580,692				5,551				3.79	%
Residential			366,637				4,239				4.62	%			352,179				4,205				4.78	%
Personal and home equity			495,845				4,482				3.59	%			501,825				4,850				3.83	%
Total loans, excluding covered assets (2)			9,078,860				99,864				4.35	%			8,957,934				100,218				4.42	%
Total interest-earning assets before covered assets (1)			11,531,703				118,203				4.06	%			11,528,474				120,142				4.13	%
Covered assets (3)			387,146				5,511				5.57	%			410,431				5,390				5.15	%
Total interest-earning assets (1)		$	11,918,849			$	123,714				4.11	%		$	11,938,905			$	125,532				4.16	%
Cash and due from banks			143,504												133,126
Allowance for loan and covered loan losses			(240,720	)											(245,204	)
Other assets			692,026												694,956
Total assets		$	12,513,659											$	12,521,783
Liabilities and Equity:
Interest-bearing demand deposits		$	696,877			$	702				0.40	%		$	655,028			$	675				0.41	%
Savings deposits			184,704				206				0.44	%			176,308				216				0.49	%
Money market accounts			4,812,571				7,231				0.60	%			4,889,762				8,296				0.67	%
Time deposits			1,427,904				4,954				1.38	%			1,463,500				5,482				1.49	%
Brokered deposits			1,165,207				2,413				0.82	%			1,095,932				2,648				0.96	%
Total interest-bearing deposits			8,287,263				15,506				0.74	%			8,280,530				17,317				0.83	%
Short term borrowings			124,716				962				3.02	%			163,626				1,297				3.10	%
Long term debt			432,264				6,023				5.54	%			468,425				7,068				6.00	%
Total interest-bearing liabilities			8,844,243				22,491				1.01	%			8,912,581				25,682				1.14	%
Non-interest bearing demand deposits			2,224,807												2,164,147
Other liabilities			185,437												187,570
Equity			1,259,172												1,257,485
Total liabilities and equity		$	12,513,659											$	12,521,783
Net interest spread (4)											3.10	%											3.02	%
Effect of non interest-bearing funds											0.26	%											0.29	%
Net interest income/margin (1) (4) (5)						$	101,223				3.36	%						$	99,850				3.31	%

 

(1)	Interest income and yields are presented on a tax-equivalent basis, assuming a federal income tax rate of 35%. This is a non-GAAP measure, refer to Non-GAAP Measures for a reconciliation of the effect of the tax-equivalent adjustment.

(2)

Non-accrual loans are included in the average balances. Interest foregone on these loans is estimated to be approximately $4.3 million and $4.2 million for the quarters ended December 31 and September 30, 2010, respectively, and is based on the average loan portfolio yield for the respective period.

(3)	Covered interest-earning assets consist of loans acquired through an FDIC-assisted transaction that are subject to a loss share agreement and the related indemnification asset.

(4)	Refer to Glossary of Terms for definition.

(5)	For the quarters ended December 31 and September 30, 2010, accretion related to covered assets contributed to net interest margin by 5 and 3 basis points, respectively.

Note: Certain reclassifications have been made to prior period presentation of loan portfolio composition to align loan categories to be consistent with those used for purposes of credit quality disclosures.

---

Net Interest Margin
Unaudited
(Dollars in thousands)

 

		Year Ended December 31,
		2010												2009
		Average Balance				Interest				Rate				Average Balance				Interest				Rate
Assets:
Fed funds sold and other short-term investments		$	733,841			$	1,950				0.27	%		$	205,104			$	1,112				0.54	%
Securities:
Taxable			1,654,885				64,316				3.89	%			1,293,857				58,663				4.53	%
Tax-exempt (1)			165,535				10,352				6.25	%			163,375				10,719				6.56	%
Total securities			1,820,420				74,668				4.10	%			1,457,232				69,382				4.76	%
Loans, excluding covered assets:
Commercial			4,442,350				206,013				4.64	%			4,032,551				182,390				4.52	%
Commercial real estate			3,080,086				133,903				4.35	%			2,914,125				133,544				4.58	%
Construction			620,937				22,047				3.55	%			889,226				30,012				3.38	%
Residential			349,494				16,546				4.73	%			463,493				18,170				3.92	%
Personal and home equity			508,274				19,163				3.77	%			516,850				19,995				3.87	%
Total loans, excluding covered assets (2)			9,001,141				397,672				4.42	%			8,816,245				384,111				4.36	%
Total interest-earning assets before covered assets (1)			11,555,402				474,290				4.10	%			10,478,581				454,605				4.34	%
Covered assets (3)			422,962				37,212				8.80	%			261,538				27,719				10.60	%
Total interest-earning assets (1)		$	11,978,364			$	511,502				4.27	%		$	10,740,119			$	482,324				4.49	%
Cash and due from banks			152,346												161,513
Allowance for loan and covered loan losses			(244,484	)											(145,187	)
Other assets			669,219												463,579
Total assets		$	12,555,445											$	11,220,024
Liabilities and Equity:
Interest-bearing demand deposits		$	699,598			$	3,148				0.45	%		$	492,466			$	2,646				0.54	%
Savings deposits			170,268				948				0.56	%			76,785				598				0.78	%
Money market accounts			4,690,019				33,483				0.71	%			3,391,521				29,037				0.86	%
Time deposits			1,499,713				22,387				1.49	%			1,657,781				35,397				2.14	%
Brokered deposits			1,341,254				14,071				1.05	%			1,820,613				43,938				2.41	%
Total interest-bearing deposits			8,400,852				74,037				0.88	%			7,439,166				111,616				1.50	%
Short term borrowings			180,439				5,088				2.82	%			673,071				8,094				1.20	%
Long term debt			476,400				27,843				5.84	%			611,866				34,018				5.56	%
Total interest-bearing liabilities			9,057,691				106,968				1.18	%			8,724,103				153,728				1.76	%
Non-interest bearing demand deposits			2,083,874												1,236,053
Other liabilities			166,742												111,826
Equity			1,247,138												1,148,042
Total liabilities and equity		$	12,555,445											$	11,220,024
Net interest spread (4)											3.09	%											2.73	%
Effect of non interest-bearing funds											0.29	%											0.33	%
Net interest income/margin (1) (4) (5)						$	404,534				3.38	%						$	328,596				3.06	%

 

(1)	Interest income and yields are presented on a tax-equivalent basis, assuming a federal income tax rate of 35%. This is a non-GAAP measure, refer to Non-GAAP Measures for a reconciliation of the effect of the tax-equivalent adjustment.

(2)	Non-accrual loans are included in the average balances. Interest foregone on these loans is estimated to be approximately $17.7 million and $10.7 million for the years ended December 31, 2010 and 2009, respectively, and is based on the average loan portfolio yield for the respective year

(3)	Covered interest-earning assets consist of loans acquired through an FDIC-assisted transaction that are subject to a loss share agreement and the related indemnification asset.

(4)	Refer to Glossary of Terms for definition.

(5)	For the years ended December 31, 2010 and 2009, accretion related to covered assets contributed to net interest margin by 15 and 13 basis points, respectively.

Note: Certain reclassifications have been made to prior period presentation of loan portfolio composition to align loan categories to be consistent with those used for purposes of credit quality disclosures.

---

Non-GAAP Measures Unaudited (Amounts in thousands except per share data)

This press release contains both financial measures based on accounting principles generally accepted in the United States (GAAP) and non-GAAP based financial measures. These non-GAAP measures include net interest income, net interest margin, net revenue, operating profit and efficiency ratio all on a fully taxable-equivalent basis; tier 1 common capital, tangible book value, and tangible common equity to tangible assets. We believe that presenting these non-GAAP financial measures will provide information useful to investors in understanding our underlying operational performance, our business, and performance trends and facilitates comparisons with the performance of others in the banking industry.

We use net interest income on a taxable-equivalent basis in calculating various performance measures by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments assuming a 35% tax rate. Management believes this measure to be the preferred industry measurement of net interest income as it enhances comparability to net interest income arising from taxable and tax-exempt sources, and accordingly believes that providing this measure may be useful for peer comparison purposes.

We also consider various measures when evaluating capital utilization and adequacy, including tier 1 common capital, tangible book value, and tangible common equity ratio, in addition to capital ratios defined by banking regulators. These calculations are intended to complement the capital ratios defined by banking regulators for both absolute and comparative purposes. Certain of these measures exclude the ending balances of goodwill and other intangibles and/or preferred capital components. Because GAAP does not include capital ratio measures, we believe there are no comparable GAAP financial measures to these ratios. We believe these non-GAAP measures are relevant because they reflect the level of capital available to withstand unexpected market conditions. Additionally, presentation of these measures allows readers to compare certain aspects of our capitalization to other companies. However, because there are no standardized definitions for these ratios, our calculations may not be comparable with other companies, and the usefulness of these measures to investors may be limited.

Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although these non-GAAP financial measures are frequently used by stakeholders in the evaluation of a company, they have limitations as analytical tools, and should not be considered in isolation or as a substitute for analyses of results as reported under GAAP. As a result, we encourage readers to consider our Consolidated Financial Statements in their entirety and not to rely on any single financial measure. The following table reconciles Non-GAAP financial measures to GAAP:

 

		Quarters Ending
		4Q10				3Q10				2Q10				1Q10				4Q09
Taxable-equivalent interest income
GAAP net interest income		$	100,347			$	98,959			$	103,332			$	98,319			$	99,562
Taxable-equivalent adjustment			876				891				924				886				930
Taxable-equivalent net interest income (a)		$	101,223			$	99,850			$	104,256			$	99,205			$	100,492
Average Earning Assets (b)		$	11,918,849			$	11,938,905			$	12,182,872			$	11,889,538			$	11,410,866
Net Interest Margin ((a) annualized) / (b)			3.36	%			3.31	%			3.41	%			3.36	%			3.48	%
Net Revenue
Taxable-equivalent net interest income (a)		$	101,223			$	99,850			$	104,256			$	99,205			$	100,492
GAAP non-interest income			34,865				23,360				19,953				15,068				14,310
Net revenue		$	136,088			$	123,210			$	124,209			$	114,273			$	114,802
Operating Profit
Taxable-equivalent net interest income (a)		$	101,223			$	99,850			$	104,256			$	99,205			$	100,492
GAAP non-interest income			34,865				23,360				19,953				15,068				14,310
Less: GAAP non-interest expense			82,148				68,077				76,002				73,371				68,528
Operating profit		$	53,940			$	55,133			$	48,207			$	40,902			$	46,274
Efficiency Ratio
GAAP non-interest expense (c)		$	82,148			$	68,077			$	76,002			$	73,371			$	68,528
Taxable-equivalent net interest income (a)		$	101,223			$	99,850			$	104,256			$	99,205			$	100,492
GAAP non-interest income			34,865				23,360				19,953				15,068				14,310
Net revenue (d)		$	136,088			$	123,210			$	124,209			$	114,273			$	114,802
Efficiency ratio (c) / (d)			60.36	%			55.25	%			61.19	%			64.21	%			59.69	%

---

Non-GAAP Measures (continued) Unaudited (Amounts in thousands except per share data)

 

		Years Ending December 31,
		2010				2009
Taxable-equivalent interest income
GAAP net interest income		$	400,957			$	324,984
Taxable-equivalent adjustment			3,577				3,612
Taxable-equivalent net interest income (a)		$	404,534			$	328,596
Average Earning Assets (b)		$	11,978,364			$	10,740,119
Net Interest Margin ((a) annualized) / (b)			3.38	%			3.06	%
Net Revenue
Taxable-equivalent net interest income (a)		$	404,534			$	328,596
GAAP non-interest income			93,246				71,470
Net revenue		$	497,780			$	400,066
Operating Profit
Taxable-equivalent net interest income (a)		$	404,534			$	328,596
GAAP non-interest income			93,246				71,470
Less: GAAP non-interest expense			299,598				247,415
Operating profit		$	198,182			$	152,651
Efficiency Ratio
GAAP non-interest expense (c)		$	299,598			$	247,415
Taxable-equivalent net interest income (a)		$	404,534			$	328,596
GAAP non-interest income			93,246				71,470
Net revenue (d)		$	497,780			$	400,066
Efficiency ratio (c) / (d)			60.19	%			61.84	%
		Quarters Ending
		4Q10				3Q10				2Q10				1Q10				4Q09
Tier 1 Common Capital
GAAP total equity		$	1,227,910			$	1,245,139			$	1,236,092			$	1,220,227			$	1,235,616
Trust preferred securities			244,793				244,793				244,793				244,793				244,793
Less: unrealized gains on available-for-sale securities			20,078				48,776				47,758				33,403				27,896
Less: disallowed deferred tax assets			5,377				—				6,360				17,267				7,619
Less: goodwill			94,621				94,633				94,646				94,658				94,671
Less: other intangibles			16,840				17,242				17,655				18,070				18,485
Tier 1 risk-based capital			1,335,787				1,329,281				1,314,466				1,301,622				1,331,738
Less: preferred stock			238,903				238,542				238,185				237,833				237,487
Less: trust preferred securities			244,793				244,793				244,793				244,793				244,793
Less: noncontrolling interests			33				250				179				103				33
Tier 1 common capital (e)		$	852,058			$	845,696			$	831,309			$	818,893			$	849,425
Tangible Common Equity
GAAP total equity		$	1,227,910			$	1,245,139			$	1,236,092			$	1,220,227			$	1,235,616
Less: goodwill			94,621				94,633				94,646				94,658				94,671
Less: other intangibles			16,840				17,242				17,655				18,070				18,485
Less: preferred stock			238,903				238,542				238,185				237,833				237,487
Tangible common equity (f)		$	877,546			$	894,722			$	885,606			$	869,666			$	884,973
Tangible Assets
GAAP total assets		$	12,465,621			$	12,583,965			$	12,611,040			$	12,780,236			$	12,032,584
Less: goodwill			94,621				94,633				94,646				94,658				94,671
Less: other intangibles			16,840				17,242				17,655				18,070				18,485
Tangible assets (g)		$	12,354,160			$	12,472,090			$	12,498,739			$	12,667,508			$	11,919,428
Period-end Shares Outstanding (h)			71,327				71,386				71,403				71,333				71,332
Risk-weighted Assets (i)		$	11,080,051			$	10,850,399			$	10,467,182			$	10,417,704			$	10,812,856
Ratios:
Tier 1 common capital (e) / (i)			7.69	%			7.79	%			7.94	%			7.86	%			7.86	%
Tangible book value (f) / (h)		$	12.30			$	12.53			$	12.40			$	12.19			$	12.41
Tangible common equity to tangible assets (f) / (g)			7.10	%			7.17	%			7.09	%			6.87	%			7.42	%

---

Glossary of Terms

Assets under management and administration (“AUMA”) - Assets held in trust where we serve as trustee or in accounts where we make investment decisions on behalf of clients. AUMA also includes non-managed assets we hold in custody for clients or for which we receive fees for advisory or brokerage services. We do not include these assets on our Consolidated Balance Sheets.

Book value - Total common equity divided by outstanding shares of common stock at end of period.

CDARS^® deposit program - is a deposit services arrangement that effectively achieves FDIC deposit insurance for jumbo deposit relationships. These deposits are classified as brokered deposits for regulatory deposit purposes; however, we classify these deposits as client CDARS^® due to the source being our existing and new client relationships and are, therefore, not traditional ‘brokered’ deposits. We also participate in a non-client CDARS^® program that is more like a traditional brokered deposit program in that our relationship is with the underlying depositor.

Client deposits - Total deposits less brokered deposits plus client CDARS^TM

Common equity - Total equity less preferred stock.

Covered assets - Assets acquired through an FDIC-assisted transaction that are subject to a loss share agreement and are presented separately on the Consolidated Balance Sheets.

Credit valuation adjustment (“CVA”) - An adjustment may need to be incorporated into the valuation of derivative instruments for nonperformance risk to include the counterparty’s credit risk and the Company’s own credit risk. This adjustment is referred to as the CVA. The CVA represents the credit component of fair value with regard to both client-based trades and the related matched trades with interbank dealer counterparties.

Efficiency ratio - Total non-interest expense divided by the sum of net interest income on a tax equivalent basis and non-interest income. This is a non-GAAP financial measure.

Fee revenue as percent of total revenue ratio - Total non-interest income less acquisition related gains, net securities gains (losses), and early extinguishment of debt divided by the sum of net interest income and non-interest income less acquisition related gains, net securities gains (losses) and early extinguishment of debt.

GAAP - Accounting principles generally accepted in the United States of America.

Net interest margin - Expressed as a percentage, net interest margin is a ratio computed as annualized taxable-equivalent net interest income divided by average earning assets. This is a non-GAAP financial measure.

Net interest spread - The difference between the average yield earned on interest-earning assets on a taxable-equivalent basis and the average rate paid for interest-bearing liabilities.

Net overhead ratio - Total non-interest expense less non-interest income divided by average total assets.

Net revenue - The sum of taxable equivalent net interest income and non-interest income. This is a non-GAAP financial measure.

Non-GAAP - Certain financial measures within this document that are not formally defined by GAAP or codified in the federal banking regulations. A reconciliation of these non-GAAP measures may be found on the previous page.

Operating profit - The sum of taxable equivalent net interest income and non-interest income, less non-interest expense. This is a non-GAAP financial measure.

Risk-weighted assets - Computed by the assignment of specific risk-weights (as defined by the Board of Governors of the Federal Reserve System) to assets and off-balance sheet instruments.

Tangible book value - Total common equity less goodwill and other intangibles divided by outstanding shares of common stock at end of period. This is a non-GAAP financial measure.

Tangible common equity to tangible assets ratio - Tangible common equity divided by tangible assets, where tangible common equity equals total equity less preferred stock, goodwill and other intangible assets and tangible assets equals total assets less goodwill and other intangible assets. This is a non-GAAP financial measure.

Taxable-equivalent interest income - The interest income earned on certain assets is completely or partially exempt from Federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. To provide more meaningful comparisons of yields and margins for all interest-earning assets, we use interest income on a taxable-equivalent basis in calculating average yields and net interest margins by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on other taxable investments. This adjustment is not permitted under GAAP on the Consolidated Income Statement.

Tier 1 common capital - Tier 1 risk-based capital, less preferred equity, less trust preferred capital securities, and less noncontrolling interests.

Tier 1 common capital ratio - Tier 1 common capital divided by period-end risk-weighted assets.

Tier 1 risk-based capital - Total equity, plus trust preferred capital securities, plus certain noncontrolling interests that are held by others; less goodwill and certain other intangible assets, less equity investments in nonfinancial companies, less ineligible servicing assets, less disallowed deferred tax assets and less net unrealized holding losses on available for sale equity securities. Net unrealized holding gains on available-for-sale equity securities, net unrealized holding gains (losses) on available for sale debt securities and net unrealized holding gains (losses) on cash flow hedge derivatives are excluded from total equity for Tier 1 capital purposes.

Tier 1 risk-based capital ratio - Tier 1 risk-based capital divided by period-end risk-weighted assets.

Leverage ratio - Tier 1 risk-based capital divided by adjusted average total assets.

Total risk-based capital - Tier 1 risk-based capital plus qualifying subordinated debt, other noncontrolling interest not qualified as Tier 1, eligible gains on available-for-sale equity securities and the allowance for loan and lease losses, subject to certain limitations.

Total risk-based capital ratio - Total risk-based capital divided by period-end risk-weighted assets.