Exhibit 99.1

For further information:

Media Contact:

Amy Yuhn

312-564-1378

ayuhn@theprivatebank.com

Investor Relations Contact:

Tracy Kessner

312-564-1467

tkessner@theprivatebank.com

For Immediate Release

PrivateBancorp Reports Second Quarter 2011 Results

Net income of $0.08 per share; Asset quality improves

CHICAGO, July 26, 2011 – PrivateBancorp, Inc. (NASDAQ: PVTB) today reported net income available to common shareholders of $5.5 million, or $0.08 per diluted share, for the second quarter 2011, compared to a net loss of $818,000, or $0.01 loss per diluted share, for the second quarter 2010, and net income of $7.5 million, or $0.10 per diluted share for the first quarter 2011. First quarter 2011 net income included a positive one-time tax adjustment of $2.8 million, or $0.04 per diluted share, relating to the revaluation of the Company’s deferred tax asset. For the six months ended June 30, 2011, the Company had net income available to common shareholders of $13.0 million, or $0.18 per diluted share, compared to a net loss of $25.1 million, or $0.36 loss per diluted share, for the six months ended June 30, 2010.

“We continue to build our commercial middle market bank and we are pleased to report a fourth consecutive profitable quarter, with meaningful progress in asset quality improvement as potential problem loans declined and we accelerated loan dispositions,” said Larry D. Richman. “Our team is focused on continuing to develop quality commercial banking relationships and we added approximately $200 million in loans from new commercial and industrial clients in the second quarter. However, total loans were down due to low borrowing demand, real estate refinancing, and problem loan sales. Overall we continue to employ a disciplined approach to the execution of our strategy and I believe this positions us well to continue the growth of our Company as the Midwest economy improves.”

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Second Quarter Results

 

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Net revenue was $122.8 million, operating profit was $47.1 million, and net interest margin was 3.36 percent for the quarter. These results were primarily driven by the lower rate environment, a decline in loan balances, and increased costs related to workout activities.

 

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Total loans at June 30, 2011, were $8.7 billion, down 4 percent from the prior quarter. Commercial and industrial loans comprise 57 percent of the loan portfolio compared to 49 percent a year ago and commercial real estate and construction loans comprise 34 percent compared to 43 percent a year ago, as the Company continues to reposition the loan portfolio. Commercial and industrial loans have increased $627.0 million from a year ago.

 

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Non-performing loans declined 7 percent and special mention and potential problem loans decreased 22 percent from March 31, 2011. These improvements in asset quality drove a reduction in the allowance for loan losses resulting in a 14 percent decline in loan loss provision.

 

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Non-performing assets at quarter-end were up slightly from last quarter to $454.4 million. Disposition activity for the quarter included $121.5 million in problem loans and $14.0 million in other real estate owned (OREO).

Operating Performance

Net revenue declined to $122.8 million in the second quarter 2011, from $124.2 million in the second quarter 2010 and $127.0 million in the first quarter 2011. Operating profit was $47.1 million in the second quarter 2011, compared to $48.2 million in the second quarter 2010 and $51.6 million in the first quarter 2011. While overall expenses were flat, both net interest income and non-interest income were negatively impacted by the lower rate environment and declining loan balances.

Net interest income was $100.5 million for the second quarter 2011, down from $103.3 million for the second quarter 2010 and $102.6 million in the first quarter 2011. The impact of covered asset accretion on net interest income was $854,000 for the second quarter 2011, compared to $8.6 million in the second quarter 2010 and $1.4 million in the first quarter 2011. Net interest margin was 3.36 percent for the second quarter 2011, compared to 3.39 percent in the second quarter 2010 and 3.46 percent in the first quarter 2011. Excluding covered asset accretion, the net interest margin was 3.33 percent for the second quarter 2011, compared to 3.11 percent in the second quarter 2010 and 3.41 percent in the first quarter 2011.

Non-interest income was $21.6 million in the second quarter 2011, compared to $20.0 million in the second quarter 2010 and $23.6 million in the first quarter 2011. Treasury management income was up 14 percent from the second quarter 2010 and 3 percent from the first quarter 2011, reflecting continued success in cross-selling this service to new and existing clients. Trust and investment fee income decreased 2 percent from second quarter 2010 and was up 1 percent compared to the first quarter 2011. Capital markets revenue, including the credit valuation adjustment, was $3.9 million in the

 

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second quarter, down from $4.1 million in the second quarter 2010 and $4.5 million in the first quarter 2011. The credit valuation adjustment was a negative $573,000 in the second quarter 2011, compared to a negative $1.3 million adjustment in the second quarter 2010 and a positive $817,000 adjustment in the first quarter 2011.

The prevailing market conditions in the mortgage industry led mortgage banking income to decrease to $704,000 for the second quarter 2011, compared to $1.8 million for the second quarter 2010 and $1.4 million for the first quarter 2011.

Expenses

Non-interest expense was $75.7 million in the second quarter 2011, compared to $76.0 million in the second quarter 2010 and $75.3 million in the first quarter 2011. The Company continued to manage expenses but credit costs negatively impacted total expenses as loan resolution efforts moved forward. Increased disposition activity and writedowns taken on OREO property during the quarter drove an increase in loan and collection costs and net foreclosed property expenses. Insurance costs declined $2.2 million from the first quarter 2011. The change in FDIC assessment methodology took effect at the beginning of the second quarter.

The efficiency ratio was 61.6 percent in the second quarter 2011, compared to 61.2 percent in the second quarter 2010 and 59.3 percent in the first quarter 2011.

Credit Quality

During the quarter, the Company made meaningful progress in reducing exposure to problem assets with loan and OREO dispositions of $121.5 million and $14.0 million, respectively. Our execution against net carrying values was strong. These dispositions were achieved at a net incremental charge of 8 percent. The amount of downgrades into special mention and potential problem loans continued to trend lower again this quarter and, together with our loan disposition efforts, are expected to result in further asset quality improvement in the second half of 2011. The non-performing loan inflows of $110.4 million were mostly composed of previously identified potential problem loans moving through the workout process to nonaccrual. The Company is actively moving problem loans through to resolution, resulting in higher OREO at June 30, 2011.

The second quarter 2011 provision for loan losses was $31.7 million, excluding covered loan provision, compared to $45.4 million in the second quarter 2010 and $36.7 million in the first quarter 2011. At June 30, 2011, the allowance for loan losses was $206.3 million, or 2.38 percent of total loans, compared to $232.4 million, or 2.63 percent of total loans, at June 30, 2010, and $218.2 million, or 2.41 percent of total loans, at March 31, 2011. The allowance for loan losses as a percentage of non-performing loans was 62 percent at June 30, 2011, compared to 63 percent at June 30, 2010, and 61 percent at March 31, 2011.

 

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Net charge-offs were $43.7 million for the quarter ended June 30, 2011, compared to $49.8 million for the second quarter 2010 and $41.3 million for the first quarter 2011. Net charge-offs were higher this quarter as a result of the increased loan sale activity.

Non-performing assets totaled $454.4 million at June 30, 2011, compared to $438.9 million at June 30, 2010, and $450.7 million at March 31, 2011. Non-performing assets to total assets were 3.75 percent at June 30, 2011, compared to 3.48 percent at June 30, 2010, and 3.61 percent at March 31, 2011. Non-performing loans were $330.4 million at quarter-end, down from $370.2 million at the end of second quarter 2010, and $356.9 million at the end of the first quarter 2011. OREO totaled $124.0 million at June 30, 2011, an increase from $68.7 million at June 30, 2010, and $93.8 million at March 31, 2011.

Restructured loans accruing interest were $124.6 million at the end of second quarter 2011, compared to $4.0 million at the end of the second quarter 2010 and $100.9 million at the end of first quarter 2011. The Company continues to utilize loan restructuring as a way to maximize economic recovery.

Credit quality results exclude $346.5 million in covered assets as of the end of the second quarter, referring to certain assets acquired through an FDIC-assisted transaction that are subject to a loss-sharing agreement, compared to $434.8 million in the second quarter 2010 and $364.4 million in the first quarter 2011.

Balance Sheet

The Company continued to focus on its commercial middle market expertise and value-driven relationships to reshape the loan portfolio composition. Commercial and industrial loans comprised 57 percent of the total portfolio at June 30, 2011, compared to 49 percent a year ago. Total loans decreased to $8.7 billion at quarter-end, compared to $8.9 billion at June 30, 2010 and $9.0 billion at March 31, 2011. During the quarter, the Company improved the overall risk profile of the loan portfolio. The 4 percent decline in loans during the quarter was driven by lower demand, disposition of problem loans, and the Company’s disciplined approach to optimize capital allocation and exit relationships that were inconsistent with its strategy.

Total assets were $12.1 billion at June 30, 2011, compared to $12.6 billion at June 30, 2010, and $12.5 billion at March 31, 2011. Total deposits were $10.2 billion at June 30, 2011, compared to $10.6 billion at June 30, 2010, and $10.6 billion at March 31, 2011. Client deposits were $9.8 billion at the end of the second quarter 2011, compared to $10.3 billion at the end of second quarter 2010, and $10.0 billion at March 31, 2011. Non-interest bearing deposits at June 30, 2011 were 25 percent of total deposits, an increase from 20 percent a year ago.

The Company’s investment securities portfolio was $2.1 billion at June 30, 2011, compared to $2.1 billion at June 30, 2010, and $1.9 billion at March 31, 2011. Net unrealized gains were $52.7 million,

 

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compared to $77.0 million at the end of the second quarter 2010 and $30.5 million at the end of the first quarter 2011. The securities portfolio is primarily composed of U.S. government agency backed mortgage pools, agency collateralized mortgage obligations, and investment grade municipal bonds.

Capital

As of June 30, 2011, the Company’s total risk-based capital ratio was 15.12 percent, the Tier 1 risk-based capital ratio was 12.95 percent, and the leverage ratio was 11.00 percent. Tier 1 common capital ratio was 8.34 percent and tangible common equity ratio was 7.58 percent at the end of the second quarter 2011.

Quarterly Conference Call and Webcast Presentation

PrivateBancorp will host a conference call on Tuesday, July 26, 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 #78029386. 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 July 28, 2011, by calling (800) 642-1687 (U.S. and Canada) or (706) 645-9291 (International) and entering passcode #78029386.

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 June 30, 2011, the Company had 34 offices in 10 states and $12.1 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 federal securities laws. Our ability to predict results or the actual effects 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 we have anticipated in our allowance for loan losses; adverse developments impacting one or more large credits; the extent of further deterioration in real estate values in our market areas, particularly in the Chicago area; difficulties in resolving problem credits or slower than anticipated dispositions of OREO which may result in increased losses or higher credit costs; slower than anticipated economic recovery or changes in economic outlook or market conditions that may affect demand for loans or other banking products and services; weakness in the commercial and industrial sector; unanticipated withdrawals of significant client deposits; lack of sufficient or cost-effective

 

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sources of liquidity or funding; the terms and availability of capital when and to the extent necessary or required to repay TARP or otherwise; loss of key personnel or an inability to recruit and retain 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 the legislation, including evolving regulatory capital standards; 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 our data processing or other information or operational systems. These factors should be considered in evaluating forward-looking statements and undue reliance should not be placed on our forward-looking statements. Forward-looking statements speak only as of the date they are made, and the Company assumes no obligation to update publicly any of these statements in light of future events unless required under the federal securities laws.

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.

 

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

 

		Three Months Ended June 30,								Six Months Ended June 30,
		2011				2010				2011				2010
Interest Income
Loans, including fees		$	102,391			$	112,839			$	208,038			$	223,901
Federal funds sold and other short-term investments			399				664				735				1,208
Securities:
Taxable			15,568				16,417				30,958				31,867
Exempt from Federal income taxes			1,387				1,752				2,873				3,470
Total interest income			119,745				131,672				242,604				260,446
Interest Expense
Interest-bearing demand deposits			587				805				1,229				1,771
Savings deposits and money market accounts			6,082				9,368				12,744				18,482
Brokered and time deposits			6,528				9,537				13,220				20,961
Short-term borrowings			566				1,383				1,393				2,829
Long-term debt			5,479				7,247				10,962				14,752
Total interest expense			19,242				28,340				39,548				58,795
Net interest income			100,503				103,332				203,056				201,651
Provision for loan and covered loan losses			31,093				45,392				68,671				117,940
Net interest income after provision for loan and covered loan losses			69,410				57,940				134,385				83,711
Non-interest Income
Trust and investments			4,720				4,836				9,382				9,260
Mortgage banking			704				1,797				2,106				3,918
Capital markets products			3,871				4,113				8,360				4,391
Treasury management			4,873				4,281				9,624				7,889
Loan and credit-related fees			5,290				4,128				11,188				7,581
Other income, service charges, and fees			1,464				983				3,522				2,138
Net securities gains (losses)			670				(185	)			1,037				(156	)
Total non-interest income			21,592				19,953				45,219				35,021
Non-interest Expense
Salaries and employee benefits			38,636				37,485				77,193				76,874
Net occupancy expense			7,545				7,747				15,077				15,042
Technology and related costs			2,729				2,424				5,390				5,467
Marketing			2,500				2,363				4,443				4,465
Professional services			2,312				3,000				4,646				7,203
Outsourced servicing costs			1,852				2,298				4,006				3,819
Net foreclosed property expenses			7,485				3,686				13,791				5,089
Postage, telephone, and delivery			931				866				1,819				1,831
Insurance			5,092				5,654				12,432				11,073
Loan and collection expense			4,247				4,610				6,800				7,189
Other expenses			2,335				5,869				5,416				11,321
Total non-interest expense			75,664				76,002				151,013				149,373
Income (loss) before income taxes			15,338				1,891				28,591				(30,641	)
Income tax provision (benefit)			6,320				(766	)			8,599				(12,442	)
Net income (loss)			9,018				2,657				19,992				(18,199	)
Net income (loss) attributable to noncontrolling interests			58				76				130				146
Net income (loss) attributable to controlling interests			8,960				2,581				19,862				(18,345	)
Preferred stock dividends and discount accretion			3,419				3,399				6,834				6,793
Net income (loss) available to common stockholders		$	5,541			$	(818	)		$	13,028			$	(25,138	)
Per Common Share Data
Basic		$	0.08			$	(0.01	)		$	0.18			$	(0.36	)
Diluted		$	0.08			$	(0.01	)		$	0.18			$	(0.36	)
Common dividends per share		$	0.01			$	0.01			$	0.02			$	0.02
Weighted-average shares outstanding			70,428				69,995				70,388				69,964
Weighted-average diluted shares outstanding			70,474				69,995				70,436				69,964

Note 1: Due to the net loss available to common stockholders reported for the three months and six months ended June 30, 2010, all potentially dilutive common stock equivalents were excluded from the diluted net loss per share computation as their inclusion would have been antidilutive.

Note 2: Certain reclassifications have been made to prior period financial statements to place them on a basis comparable with the current period financial statements.

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

 

		2Q11				1Q11				4Q10				3Q10				2Q10
Interest Income
Loans, including fees		$	102,391			$	105,647			$	105,375			$	105,608			$	112,839
Federal funds sold and other short-term investments			399				336				366				376				664
Securities:
Taxable			15,568				15,390				15,453				16,996				16,417
Exempt from Federal income taxes			1,387				1,486				1,644				1,661				1,752
Total interest income			119,745				122,859				122,838				124,641				131,672
Interest Expense
Interest-bearing demand deposits			587				642				702				675				805
Savings deposits and money market accounts			6,082				6,662				7,437				8,512				9,368
Brokered and time deposits			6,528				6,692				7,367				8,130				9,537
Short-term borrowings			566				827				962				1,297				1,383
Long-term debt			5,479				5,483				6,023				7,068				7,247
Total interest expense			19,242				20,306				22,491				25,682				28,340
Net interest income			100,503				102,553				100,347				98,959				103,332
Provision for loan and covered loan losses			31,093				37,578				35,166				41,435				45,392
Net interest income after provision for loan and covered loan losses			69,410				64,975				65,181				57,524				57,940
Non-interest Income
Trust and investments			4,720				4,662				4,574				4,306				4,836
Mortgage banking			704				1,402				3,479				2,790				1,797
Capital markets products			3,871				4,489				6,791				3,104				4,113
Treasury management			4,873				4,751				4,625				4,406				4,281
Loan and credit-related fees			5,290				5,898				4,710				4,234				4,128
Other income, service charges, and fees			1,464				2,058				1,377				1,491				983
Net securities gains (losses)			670				367				9,309				3,029				(185	)
Total non-interest income			21,592				23,627				34,865				23,360				19,953
Non-interest Expense
Salaries and employee benefits			38,636				38,557				38,577				34,412				37,485
Net occupancy expense			7,545				7,532				7,385				7,508				7,747
Technology and related costs			2,729				2,661				2,447				2,310				2,424
Marketing			2,500				1,943				1,997				2,039				2,363
Professional services			2,312				2,334				3,020				2,708				3,000
Outsourced servicing costs			1,852				2,154				1,950				2,038				2,298
Net foreclosed property expenses			7,485				6,306				7,028				3,075				3,686
Postage, telephone, and delivery			931				888				1,049				779				866
Insurance			5,092				7,340				8,348				7,113				5,654
Loan and collection expense			4,247				2,553				4,029				3,405				4,610
Other expenses			2,335				3,081				6,318				2,690				5,869
Total non-interest expense			75,664				75,349				82,148				68,077				76,002
Income (loss) before income taxes			15,338				13,253				17,898				12,807				1,891
Income tax provision (benefit)			6,320				2,279				5,919				4,786				(766	)
Net income (loss)			9,018				10,974				11,979				8,021				2,657
Net income (loss) attributable to noncontrolling interests			58				72				67				71				76
Net income (loss) attributable to controlling interests			8,960				10,902				11,912				7,950				2,581
Preferred stock dividends and discount accretion			3,419				3,415				3,409				3,405				3,399
Net income (loss) available to common stockholders		$	5,541			$	7,487			$	8,503			$	4,545			$	(818	)
Per Common Share Data
Basic		$	0.08			$	0.10			$	0.12			$	0.06			$	(0.01	)
Diluted		$	0.08			$	0.10			$	0.12			$	0.06			$	(0.01	)
Common dividends per share		$	0.01			$	0.01			$	0.01			$	0.01			$	0.01
Weighted-average shares outstanding			70,428				70,347				70,098				70,067				69,995
Weighted-average diluted shares outstanding			70,474				70,396				70,135				70,097				69,995

Note 1: Due to the net loss available to common stockholders reported for the second quarter 2010, all potentially dilutive common stock equivalents were excluded from the diluted net loss per share computation as their inclusion would have been antidilutive.

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Consolidated Balance Sheets
(Dollars in thousands)

 

		06/30/11				03/31/11				12/31/10				09/30/10				06/30/10
		unaudited				unaudited				audited				unaudited				unaudited
Assets
Cash and due from banks		$	160,289			$	181,738			$	112,772			$	144,298			$	111,997
Fed funds sold and other short-term investments			457,422				621,206				541,316				532,637				769,803
Loans held for sale			13,503				22,611				30,758				44,271				20,762
Securities available-for-sale, at fair value			2,057,290				1,892,304				1,881,786				2,033,527				2,029,962
Non-marketable equity investments			20,406				23,490				23,537				25,587				33,825
Loans - excluding covered assets, net of unearned fees			8,672,642				9,037,067				9,114,357				8,992,129				8,851,439
Allowance for loan losses			(206,286	)			(218,237	)			(222,821	)			(223,392	)			(232,411	)
Loans, net of allowance for loan losses and unearned fees			8,466,356				8,818,830				8,891,536				8,768,737				8,619,028
Covered assets			346,452				364,372				397,210				419,865				434,828
Allowance for covered loan losses			(16,904	)			(19,738	)			(15,334	)			(12,174	)			(5,176	)
Covered assets, net of allowance for covered loan losses			329,548				344,634				381,876				407,691				429,652
Other real estate owned			123,997				93,770				88,728				90,944				68,693
Premises, furniture, and equipment, net			38,171				39,019				40,975				42,347				40,599
Accrued interest receivable			32,128				33,960				33,854				34,697				35,278
Investment in bank owned life insurance			50,183				49,799				49,408				48,950				48,521
Goodwill			94,596				94,609				94,621				94,633				94,646
Other intangible assets			16,089				16,464				16,840				17,242				17,655
Derivative assets			93,453				87,273				100,250				128,891				113,493
Other assets			161,946				177,735				177,364				169,513				177,126
Total assets		$	12,115,377			$	12,497,442			$	12,465,621			$	12,583,965			$	12,611,040
Liabilities
Demand deposits:
Non-interest-bearing		$	2,527,230			$	2,438,709			$	2,253,661			$	2,173,419			$	2,090,222
Interest-bearing			531,107				540,215				616,761				614,049				738,631
Savings deposits and money market accounts			4,497,297				4,831,253				4,821,823				5,039,970				5,066,653
Brokered deposits			1,342,422				1,467,196				1,450,827				1,241,366				1,236,589
Time deposits			1,336,212				1,348,603				1,392,357				1,461,668				1,437,204
Total deposits			10,234,268				10,625,976				10,535,429				10,530,472				10,569,299
Short-term borrowings			63,311				88,468				118,561				179,651				164,069
Long-term debt			409,793				409,793				414,793				439,566				473,720
Accrued interest payable			5,767				5,529				5,968				7,603				7,727
Derivative liabilities			95,043				88,351				102,018				132,594				116,599
Other liabilities			46,547				41,193				60,942				48,940				43,534
Total liabilities			10,854,729				11,259,310				11,237,711				11,338,826				11,374,948
Equity
Preferred stock			239,642				239,270				238,903				238,542				238,185
Common stock			71,155				71,036				70,972				70,657				70,630
Treasury stock			(20,615	)			(20,312	)			(20,054	)			(19,023	)			(19,003	)
Additional paid-in capital			963,156				959,135				954,977				950,721				946,981
Accumulated deficit			(25,388	)			(30,223	)			(36,999	)			(44,784	)			(48,638	)
Accumulated other comprehensive income, net of tax			32,535				19,121				20,078				48,776				47,758
Total stockholders’ equity			1,260,485				1,238,027				1,227,877				1,244,889				1,235,913
Noncontrolling interests			163				105				33				250				179
Total equity			1,260,648				1,238,132				1,227,910				1,245,139				1,236,092
Total liabilities and equity		$	12,115,377			$	12,497,442			$	12,465,621			$	12,583,965			$	12,611,040

---

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

 

		2Q11				1Q11				4Q10				3Q10				2Q10
Selected Statement of Income Data:
Net interest income		$	100,503			$	102,553			$	100,347			$	98,959			$	103,332
Net revenue (1) (2)		$	122,811			$	126,970			$	136,088			$	123,210			$	124,209
Operating profit (1) (2)		$	47,147			$	51,621			$	53,940			$	55,133			$	48,207
Provision for loan and covered loan losses		$	31,093			$	37,578			$	35,166			$	41,435			$	45,392
Income (loss) before taxes		$	15,338			$	13,253			$	17,898			$	12,807			$	1,891
Net income (loss) available to common stockholders		$	5,541			$	7,487			$	8,503			$	4,545			$	(818	)
Per Common Share Data:
Basic earnings (loss) per share		$	0.08			$	0.10			$	0.12			$	0.06			$	(0.01	)
Diluted earnings (loss) per share (3)		$	0.08			$	0.10			$	0.12			$	0.06			$	(0.01	)
Dividends		$	0.01			$	0.01			$	0.01			$	0.01			$	0.01
Book value (period end) (1)		$	14.22			$	13.98			$	13.87			$	14.10			$	13.98
Tangible book value (period end) (1) (2)		$	12.68			$	12.43			$	12.30			$	12.53			$	12.40
Market value (close)		$	13.80			$	15.29			$	14.38			$	11.39			$	11.08
Book value multiple			0.97	x			1.09	x			1.04	x			0.81	x			0.79	x
Share Data:
Weighted average common shares outstanding			70,428				70,347				70,098				70,067				69,995
Diluted average common shares outstanding (3)			70,474				70,396				70,135				70,097				69,995
Common shares issued (at period end)			72,497				72,096				71,979				71,964				71,978
Common shares outstanding (at period end)			71,808				71,428				71,327				71,386				71,403
Performance Ratios:
Return on average assets			0.29	%			0.35	%			0.38	%			0.25	%			0.08	%
Return on average common equity			2.18	%			3.03	%			3.31	%			1.77	%			-0.33	%
Net interest margin (1) (2)			3.36	%			3.46	%			3.33	%			3.28	%			3.39	%
Covered asset accretion contribution to net interest margin			0.03	%			0.05	%			0.05	%			0.03	%			0.28	%
Net interest margin, excluding impact of covered asset accretion			3.33	%			3.41	%			3.28	%			3.25	%			3.11	%
Fee revenue as a percent of total revenue (1)			17.23	%			18.49	%			20.30	%			17.04	%			16.31	%
Non-interest income to average assets			0.69	%			0.77	%			1.11	%			0.74	%			0.63	%
Non-interest expense to average assets			2.43	%			2.44	%			2.61	%			2.16	%			2.39	%
Net overhead ratio (1)			1.74	%			1.68	%			1.50	%			1.42	%			1.76	%
Efficiency ratio (1) (2)			61.61	%			59.34	%			60.36	%			55.25	%			61.19	%
Selected Information:
Assets under management and administration (1)		$	4,395,516			$	4,313,843			$	4,271,602			$	4,023,821			$	3,746,934
Credit valuation adjustment (1)		$	(573	)		$	817			$	1,826			$	(830	)		$	(1,271	)
Balance Sheet Ratios:
Loans to Deposits (period end) (4)			84.74	%			85.05	%			86.51	%			85.39	%			83.75	%
Average interest-earning assets to average interest-bearing liabilities			139.77	%			134.88	%			134.76	%			133.96	%			130.58	%
Capital Ratios (period end):
Total risk-based capital (1)			15.12	%			14.55	%			14.18	%			14.40	%			14.83	%
Tier 1 risk-based capital (1)			12.95	%			12.41	%			12.06	%			12.25	%			12.43	%
Leverage (1)			11.00	%			10.91	%			10.78	%			10.71	%			10.39	%
Tier 1 common capital (1) (2)			8.34	%			7.97	%			7.69	%			7.79	%			7.86	%
Tangible common equity to tangible assets (1) (2)			7.58	%			7.17	%			7.10	%			7.17	%			7.09	%
Total equity to total assets			10.41	%			9.91	%			9.85	%			9.89	%			9.80	%

 

(1)	Refer to Glossary of Terms for definition.

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

(3)	For the second quarter 2010, diluted shares are equal to basic shares due to the net loss. The calculation of diluted earnings per share for that period results in anti-dilution.

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

---

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

 

		06/30/11				% of Total				03/31/11				% of Total				12/31/10				% of Total				09/30/10				% of Total				06/30/10				% of Total
		unaudited								unaudited								audited								unaudited								unaudited
Commercial and industrial		$	3,993,619				46	%		$	4,079,874				45	%		$	4,015,257				44	%		$	3,850,498				43	%		$	3,564,504				40	%
Commercial - owner-occupied CRE			988,540				11	%			990,342				11	%			897,620				10	%			774,678				9	%			790,629				9	%
Total commercial			4,982,159				57	%			5,070,216				56	%			4,912,877				54	%			4,625,176				52	%			4,355,133				49	%
Commercial real estate			2,191,127				25	%			2,289,259				25	%			2,400,923				26	%			2,534,600				28	%			2,604,977				30	%
Commercial real estate - multi-family			397,291				5	%			451,685				5	%			457,246				5	%			471,989				5	%			502,708				6	%
Total commercial real estate			2,588,418				30	%			2,740,944				30	%			2,858,169				31	%			3,006,589				33	%			3,107,685				36	%
Construction			366,061				4	%			464,253				5	%			530,733				6	%			556,960				6	%			571,437				7	%
Residential real estate			301,250				4	%			314,082				4	%			319,146				4	%			324,434				4	%			309,001				3	%
Home equity			190,691				2	%			188,900				2	%			197,179				2	%			197,977				2	%			203,053				2	%
Personal			244,063				3	%			258,672				3	%			296,253				3	%			280,993				3	%			305,130				3	%
Total loans		$	8,672,642				100	%		$	9,037,067				100	%		$	9,114,357				100	%		$	8,992,129				100	%		$	8,851,439				100	%

Commercial Real Estate and Construction Loans Portfolio by Collateral Type

Unaudited

 

		06/30/11								03/31/11								12/31/10
		Amount				% of Total				Amount				% of Total				Amount				% of Total
Commercial Real Estate Portfolio
Land		$	247,580				10	%		$	297,373				11	%		$	311,464				11	%
Residential 1-4 family			126,554				5	%			136,632				5	%			139,689				5	%
Multi-family			397,291				15	%			451,685				16	%			457,246				16	%
Industrial/warehouse			351,836				14	%			384,127				14	%			391,694				14	%
Office			509,758				20	%			525,013				19	%			531,193				18	%
Retail			427,397				16	%			420,766				15	%			450,135				16	%
Health care			79,651				3	%			79,854				3	%			114,545				4	%
Mixed use/other			448,351				17	%			445,494				17	%			462,203				16	%
Total commercial real estate		$	2,588,418				100	%		$	2,740,944				100	%		$	2,858,169				100	%
Construction Portfolio
Land		$	48,035				13	%		$	51,681				11	%		$	46,036				9	%
Residential 1-4 family			27,475				8	%			24,588				5	%			30,698				6	%
Multi-family			59,825				16	%			77,117				17	%			77,685				15	%
Industrial/warehouse			26,322				7	%			34,505				7	%			34,703				7	%
Office			55,544				15	%			83,629				18	%			92,369				17	%
Retail			64,985				18	%			78,155				17	%			92,268				17	%
Mixed use/other			83,875				23	%			114,578				25	%			156,974				29	%
Total construction		$	366,061				100	%		$	464,253				100	%		$	530,733				100	%

 

(1)	Refer to Glossary of Terms for definition.

---

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

 

 

 

		2Q11				1Q11				4Q10				3Q10				2Q10
Credit Quality Key Ratios
Net charge-offs (annualized) to average loans			1.95	%			1.83	%			1.54	%			2.17	%			2.24	%
Nonperforming loans to total loans			3.81	%			3.95	%			4.01	%			4.13	%			4.18	%
Nonperforming loans to total assets			2.73	%			2.86	%			2.94	%			2.95	%			2.94	%
Nonperforming assets to total assets			3.75	%			3.61	%			3.65	%			3.67	%			3.48	%
Allowance for loan losses to:
total loans			2.38	%			2.41	%			2.44	%			2.48	%			2.63	%
nonperforming loans			62	%			61	%			61	%			60	%			63	%
Nonperforming assets
Loans past due 90 days and accruing		$	—			$	—			$	—			$	—			$	—
Nonaccrual loans			330,448				356,932				365,880				371,156				370,179
OREO			123,997				93,770				88,728				90,944				68,693
Total nonperforming assets		$	454,445			$	450,702			$	454,608			$	462,100			$	438,872
Restructured loans accruing interest		$	124,614			$	100,895			$	87,576			$	53,397			$	4,030
Nonperforming Loans Rollforward
Beginning balance		$	356,932			$	365,880			$	371,156			$	370,179			$	381,207
Additions:
New nonaccrual loans			110,438				95,275				108,526				123,557				130,400
Reductions:
Return to performing status			(2,781	)			(11,059	)			(6,564	)			(5,969	)			(17,984	)
Paydowns and payoffs, net			(7,941	)			(16,301	)			(18,852	)			(18,208	)			(33,733	)
Net sales			(38,129	)			(11,288	)			(10,595	)			(3,200	)			(8,043	)
Transfer to OREO			(49,667	)			(23,655	)			(39,795	)			(44,979	)			(31,480	)
Charge-offs, net			(38,404	)			(41,920	)			(37,996	)			(50,224	)			(50,188	)
Total reductions			(136,922	)			(104,223	)			(113,802	)			(122,580	)			(141,428	)
Balance at end of period		$	330,448			$	356,932			$	365,880			$	371,156			$	370,179
OREO Rollforward
Beginning balance		$	93,770			$	88,728			$	90,944			$	68,693			$	60,755
New foreclosed property			49,667				23,661				40,178				44,979				31,688
Valuation adjustments			(5,483	)			(4,762	)			(1,994	)			(1,385	)			(2,108	)
Disposals:
Sales proceeds			(13,615	)			(12,277	)			(40,076	)			(20,277	)			(21,514	)
Net (loss) gain on sale			(342	)			(1,580	)			(324	)			(1,066	)			(128	)
Balance at end of period		$	123,997			$	93,770			$	88,728			$	90,944			$	68,693
Restructured Loans Accruing Interest Rollforward
Beginning balance		$	100,895			$	87,576			$	53,397			$	4,030			$	3,840
Additions:
New restructured loans accruing interest			54,656				19,328				45,582				49,404				—
Advances			—				—				1,215				—				190
Reductions:
Paydowns and payoffs			(21,007	)			(1,535	)			(181	)			(37	)			—
Move to nonperforming loans			(9,930	)			(4,474	)			(12,437	)			—				—
Balance at end of period		$	124,614			$	100,895			$	87,576			$	53,397			$	4,030

 

(1)	Refer to Glossary of Terms for definition.

---

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

 

 

Credit Quality Indicators ⁽¹⁾

 

		Special Mention				% of Loan Type				Potential Problem Loans				% of Loan Type				Non- Performing Loans				% of Loan Type				Total Loans
As of June 30, 2011
Transformational (1)
Commercial		$	23,805				0.5	%		$	141,998				3.2	%		$	48,429				1.1	%		$	4,459,172
Commercial real estate			73,216				5.7	%			71,531				5.6	%			38,208				3.0	%			1,274,904
Construction			14,171				6.2	%			15,243				6.7	%			12,580				5.5	%			229,184
Residential real estate			1,205				1.1	%			6,055				5.7	%			306				0.3	%			105,406
Home equity			—				—				346				0.9	%			—				—				39,110
Personal			—				—				810				0.6	%			365				0.3	%			128,648
Total transformational		$	112,397				1.8	%		$	235,983				3.8	%		$	99,888				1.6	%		$	6,236,424
Legacy (1)
Commercial		$	10,326				2.0	%		$	29,784				5.7	%		$	12,968				2.5	%		$	522,987
Commercial real estate			95,038				7.2	%			100,943				7.7	%			144,807				11.0	%			1,313,514
Construction			—				—				3,076				2.2	%			24,560				17.9	%			136,877
Residential real estate			7,069				3.6	%			10,683				5.5	%			18,190				9.3	%			195,844
Home equity			1,536				1.0	%			10,501				6.9	%			12,706				8.4	%			151,581
Personal			1,047				0.9	%			1,049				0.9	%			17,329				15.0	%			115,415
Total legacy			115,016				4.7	%			156,036				6.4	%			230,560				9.5	%			2,436,218
Total		$	227,413				2.6	%		$	392,019				4.5	%		$	330,448				3.8	%		$	8,672,642
As of March 31, 2011
Transformational (1)
Commercial		$	29,991				0.7	%		$	150,452				3.4	%		$	58,013				1.3	%		$	4,471,032
Commercial real estate			84,403				6.7	%			121,080				9.7	%			7,272				0.6	%			1,253,286
Construction			21,611				6.8	%			21,774				6.9	%			15,308				4.8	%			317,317
Residential real estate			1,219				1.2	%			5,723				5.7	%			272				0.3	%			100,137
Home equity			—				—				346				1.1	%			—				—				31,390
Personal			—				—				934				0.7	%			—				—				125,599
Total transformational		$	137,224				2.2	%		$	300,309				4.8	%		$	80,865				1.3	%		$	6,298,761
Legacy (1)
Commercial		$	28,107				4.7	%		$	34,719				5.8	%		$	20,018				3.3	%		$	599,184
Commercial real estate			81,614				5.5	%			152,548				10.3	%			184,062				12.4	%			1,487,658
Construction			15,453				10.5	%			10,378				7.1	%			26,335				17.9	%			146,936
Residential real estate			8,917				4.2	%			9,469				4.4	%			16,597				7.8	%			213,945
Home equity			3,121				2.0	%			8,410				5.3	%			11,397				7.2	%			157,510
Personal			1,083				0.8	%			2,311				1.7	%			17,658				13.3	%			133,073
Total legacy			138,295				5.1	%			217,835				8.0	%			276,067				10.1	%			2,738,306
Total		$	275,519				3.0	%		$	518,144				5.7	%		$	356,932				3.9	%		$	9,037,067

 

(1)	Refer to Glossary of Terms for definition.

---

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

 

 

Nonaccrual Loans Stratification

 

		$10.0 Million or More				$5.0 to $9.9 Million				$3.0 to $4.9 Million				$1.5 to $2.9 Million				Under $1.5 Million				Total
As of June 30, 2011
Amount:
Commercial		$	35,062			$	9,763			$	3,201			$	2,260			$	11,111			$	61,397
Commercial real estate			36,600				33,966				35,122				29,486				47,841				183,015
Construction			12,490				5,351				4,808				5,226				9,265				37,140
Residential real estate			—				—				7,789				—				10,707				18,496
Personal and home equity			11,040				—				—				2,165				17,195				30,400
Total		$	95,192			$	49,080			$	50,920			$	39,137			$	96,119			$	330,448
Number of borrowers:
Commercial			3				1				1				1				38				44
Commercial real estate			2				6				9				14				83				114
Construction			1				1				1				2				14				19
Residential real estate			—				—				2				—				19				21
Personal and home equity			1				—				—				1				40				42
Total			7				8				13				18				194				240
As of March 31, 2011
Amount:
Commercial		$	41,962			$	9,506			$	7,950			$	5,113			$	13,500			$	78,031
Commercial real estate			26,041				49,375				28,384				38,306				49,228				191,334
Construction			15,045				5,352				4,551				8,654				8,041				41,643
Residential real estate			—				—				7,789				—				9,080				16,869
Personal and home equity			—				11,049				—				3,766				14,240				29,055
Total		$	83,048			$	75,282			$	48,674			$	55,839			$	94,089			$	356,932
Number of borrowers:
Commercial			3				1				2				2				43				51
Commercial real estate			2				8				7				18				85				120
Construction			1				1				1				4				13				20
Residential real estate			—				—				2				—				16				18
Personal and home equity			—				1				—				2				35				38
Total			6				11				12				26				192				247

Restructured Loans Accruing Interest Stratification

 

		$10.0 Million or More				$5.0 to $9.9 Million				$3.0 to $4.9 Million				$1.5 to $2.9 Million				Under $1.5 Million				Total
As of June 30, 2011
Amount:
Commercial		$	32,780			$	14,313			$	3,462			$	1,734			$	5,744			$	58,033
Commercial real estate			21,435				5,207				8,152				1,985				5,237				42,016
Construction			—				5,936				3,076				—				—				9,012
Residential real estate			—				—				—				—				1,167				1,167
Personal and home equity			12,886				—				—				—				1,500				14,386
Total		$	67,101			$	25,456			$	14,690			$	3,719			$	13,648			$	124,614
Number of borrowers:
Commercial			2				2				1				1				13				19
Commercial real estate			1				1				3				1				9				15
Construction			—				1				1				—				—				2
Residential real estate			—				—				—				—				3				3
Personal and home equity			1				—				—				—				5				6
Total			4				4				5				2				30				45
As of March 31, 2011
Amount:
Commercial		$	—			$	5,265			$	3,342			$	1,774			$	4,669			$	15,050
Commercial real estate			36,250				5,229				10,048				8,724				7,169				67,420
Construction			—				—				3,094				—				—				3,094
Residential real estate			—				—				—				—				796				796
Personal and home equity			12,984				—				—				—				1,551				14,535
Total		$	49,234			$	10,494			$	16,484			$	10,498			$	14,185			$	100,895
Number of borrowers:
Commercial			—				1				1				1				10				13
Commercial real estate			2				1				3				4				10				20
Construction			—				—				1				—				—				1
Residential real estate			—				—				—				—				1				1
Personal and home equity			1				—				—				—				4				5
Total			3				2				5				5				25				40

 

(1)	Refer to Glossary of Terms for definition.

---

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

 

 

 

As of June 30, 2011		Current				30-59 Days Past Due				60-89 Days Past Due				90 Days Past Due and Accruing				Nonaccrual				Total Loans
Loan balances:
Commercial		$	4,915,061			$	1,723			$	3,978			$	—			$	61,397			$	4,982,159
Commercial real estate			2,391,727				3,384				10,292				—				183,015				2,588,418
Construction			328,921				—				—				—				37,140				366,061
Residential real estate			281,362				392				1,000				—				18,496				301,250
Personal and home equity			400,263				2,803				1,288				—				30,400				434,754
Total loans		$	8,317,334			$	8,302			$	16,558			$	—			$	330,448			$	8,672,642
Aging as a percent of loan balance:
Commercial			98.66	%			0.03	%			0.08	%			—				1.23	%			100.00	%
Commercial real estate			92.40	%			0.13	%			0.40	%			—				7.07	%			100.00	%
Construction			89.85	%			—				—				—				10.15	%			100.00	%
Residential real estate			93.40	%			0.13	%			0.33	%			—				6.14	%			100.00	%
Personal and home equity			92.07	%			0.64	%			0.30	%			—				6.99	%			100.00	%
Total loans			95.90	%			0.10	%			0.19	%			—				3.81	%			100.00	%
		2Q11				1Q11				4Q10				3Q10				2Q10
Nonaccrual loans:
Commercial		$	61,397			$	78,031			$	82,146			$	87,800			$	90,364
Commercial real estate			183,015				191,334				202,724				213,975				214,365
Construction			37,140				41,643				33,403				33,589				37,859
Residential real estate			18,496				16,869				14,841				9,101				9,717
Personal and home equity			30,400				29,055				32,766				26,691				17,874
Total		$	330,448			$	356,932			$	365,880			$	371,156			$	370,179
Nonaccrual loans as a percent of total loan type:
Commercial			1.23	%			1.54	%			1.67	%			1.90	%			2.07	%
Commercial real estate			7.07	%			6.98	%			7.09	%			7.12	%			6.90	%
Construction			10.15	%			8.97	%			6.29	%			6.03	%			6.63	%
Residential real estate			6.14	%			5.37	%			4.65	%			2.81	%			3.14	%
Personal and home equity			6.99	%			6.49	%			6.54	%			5.57	%			3.52	%
Total			3.81	%			3.95	%			4.01	%			4.13	%			4.18	%
Loans past due 60-89 days and still accruing:
Commercial		$	3,978			$	139			$	759			$	435			$	3,620
Commercial real estate			10,292				6,782				12,346				8,864				14,884
Construction			—				—				1,895				6,200				—
Residential real estate			1,000				396				4,098				2,767				1,347
Personal and home equity			1,288				2,935				4,033				1,104				1,147
Total		$	16,558			$	10,252			$	23,131			$	19,370			$	20,998
Loans past due 60-89 days and still accruing as a percent of total loan type:
Commercial			0.08	%			—				0.02	%			0.01	%			0.08	%
Commercial real estate			0.40	%			0.25	%			0.43	%			0.29	%			0.48	%
Construction			—				—				0.36	%			1.11	%			—
Residential real estate			0.33	%			0.13	%			1.28	%			0.85	%			0.44	%
Personal and home equity			0.30	%			0.66	%			0.80	%			0.23	%			0.23	%
Total			0.19	%			0.11	%			0.27	%			0.22	%			0.24	%
Loans past due 30-59 days and still accruing:
Commercial		$	1,723			$	3,997			$	1,024			$	2,772			$	2,741
Commercial real estate			3,384				23,409				10,264				18,869				26,073
Construction			—				4,835				—				3,327				258
Residential real estate			392				753				180				1,174				—
Personal and home equity			2,803				1,921				14,098				2,188				2,065
Total		$	8,302			$	34,915			$	25,566			$	28,330			$	31,137
Loans past due 30-59 days and still accruing as a percent of total loan type:
Commercial			0.03	%			0.08	%			0.02	%			0.06	%			0.06	%
Commercial real estate			0.13	%			0.85	%			0.36	%			0.63	%			0.84	%
Construction			—				1.04	%			—				0.60	%			0.05	%
Residential real estate			0.13	%			0.24	%			0.06	%			0.36	%			—
Personal and home equity			0.64	%			0.43	%			2.86	%			0.46	%			0.41	%
Total			0.10	%			0.39	%			0.28	%			0.32	%			0.35	%

 

(1)	Refer to Glossary of Terms for definition.

 

---

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

OREO Properties by Type

 

		June 30, 2011								March 31, 2011								December 31, 2010
		Number of Properties				Amount				Number of Properties				Amount				Number of Properties				Amount
Single family homes			61			$	24,081				24			$	18,219				24			$	21,534
Land parcels			285				58,403				322				37,079				320				34,122
Multi-family			14				14,393				13				8,464				14				6,061
Office/industrial			21				18,938				24				25,544				20				26,511
Retail			4				8,182				4				4,464				1				500
Total			385			$	123,997				387			$	93,770				379			$	88,728

OREO Property Location

 

		Illinois				Georgia				Michigan				South Eastern  (2)				Other				Total
June 30, 2011
Single family homes		$	19,628			$	1,259			$	2,504			$	690			$	—			$	24,081
Land parcels			36,846				3,496				3,188				8,837				6,036				58,403
Multi-family			12,116				—				2,277				—				—				14,393
Office/industrial			9,099				1,044				1,483				3,772				3,540				18,938
Retail			7,290				892				—				—				—				8,182
Total		$	84,979			$	6,691			$	9,452			$	13,299			$	9,576			$	123,997
March 31, 2011
Single family homes		$	16,054			$	139			$	1,954			$	—			$	72			$	18,219
Land parcels			12,325				5,706				4,531				10,396				4,121				37,079
Multi-family			5,854				—				2,610				—				—				8,464
Office/industrial			14,613				1,044				2,193				3,864				3,830				25,544
Retail			1,259				892				2,313				—				—				4,464
Total		$	50,105			$	7,781			$	13,601			$	14,260			$	8,023			$	93,770
December 31, 2010
Single family homes		$	14,943			$	139			$	6,194			$	—			$	258			$	21,534
Land parcels			10,874				4,772				3,626				10,396				4,454				34,122
Multi-family			5,166				—				895				—				—				6,061
Office/industrial			13,505				1,104				3,787				4,573				3,542				26,511
Retail			500				—				—				—				—				500
Total		$	44,988			$	6,015			$	14,502			$	14,969			$	8,254			$	88,728

 

(1)	Refer to Glossary of Terms for definition.

(2)	Represents the southeastern states of Arkansas and Florida.

---

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

 

 

 

		2Q11				1Q11				4Q10				3Q10				2Q10
Change in allowance for loan losses:
Balance at beginning of period		$	218,237			$	222,821			$	223,392			$	232,411			$	236,851
Loans charged-off:
Commercial		$	(10,512	)		$	(4,200	)		$	(3,050	)		$	(2,541	)		$	(8,440	)
Commercial real estate			(25,402	)			(29,409	)			(21,909	)			(31,809	)			(24,956	)
Construction			(8,275	)			(62	)			(1,709	)			(4,882	)			(10,644	)
Residential real estate			(186	)			(386	)			(544	)			(1,715	)			(886	)
Home equity			(508	)			(1,447	)			(1,234	)			(736	)			(651	)
Personal			(434	)			(6,787	)			(8,602	)			(8,939	)			(6,346	)
Total charge-offs			(45,317	)			(42,291	)			(37,048	)			(50,622	)			(51,923	)
Recoveries on loans previously charged-off:
Commercial		$	707			$	465			$	1,243			$	730			$	664
Commercial real estate			511				272				75				304				896
Construction			56				97				274				131				444
Residential real estate			40				2				12				4				11
Home equity			15				10				79				9				3
Personal			312				155				259				394				73
Total recoveries			1,641				1,001				1,942				1,572				2,091
Net charge-offs			(43,676	)			(41,290	)			(35,106	)			(49,050	)			(49,832	)
Provisions charged to operating expense			31,725				36,706				34,535				40,031				45,392
Balance at end of period		$	206,286			$	218,237			$	222,821			$	223,392			$	232,411
Allocation of allowance for loan losses:
General allocated reserve:
Commercial		$	46,000			$	50,250			$	52,100			$	50,863			$	55,408
Commercial real estate			67,000				75,500				72,850				75,701				76,193
Construction			9,600				12,900				16,000				17,048				17,869
Residential real estate			5,400				4,425				4,275				3,842				3,999
Home equity			3,500				3,425				3,150				2,312				2,552
Personal			3,100				3,325				3,475				4,910				5,602
Total allocated		$	134,600			$	149,825			$	151,850			$	154,676			$	161,623
Specific reserve			71,686				68,412				70,971				68,716				70,788
Total		$	206,286			$	218,237			$	222,821			$	223,392			$	232,411
Allocation of reserve by a percent of total allowance for loan losses:
General allocated reserve:
Commercial			22	%			23	%			23	%			23	%			24	%
Commercial real estate			32	%			35	%			33	%			34	%			33	%
Construction			5	%			6	%			7	%			8	%			8	%
Residential real estate			3	%			2	%			2	%			2	%			2	%
Home equity			2	%			2	%			1	%			1	%			1	%
Personal			2	%			2	%			2	%			2	%			2	%
Total allocated			66	%			70	%			68	%			70	%			70	%
Specific reserve			34	%			30	%			32	%			30	%			30	%
Total			100	%			100	%			100	%			100	%			100	%
Allowance for loan losses to:
total loans			2.38	%			2.41	%			2.44	%			2.48	%			2.63	%
nonperforming loans			62	%			61	%			61	%			60	%			63	%
nonaccrual loans			62	%			61	%			61	%			60	%			63	%

 

(1)	Refer to Glossary of Terms for definition.

---

Deposits
(Dollars in thousands)

 

		06/30/11				% of Total				03/31/11				% of Total				12/31/10				% of Total				09/30/10				% of Total				06/30/10				% of Total
		unaudited								unaudited								audited								unaudited								unaudited
Non-interest bearing deposits		$	2,527,230				25	%		$	2,438,709				23	%		$	2,253,661				21	%		$	2,173,419				20	%		$	2,090,222				20	%
Interest-bearing deposits			531,107				5	%			540,215				5	%			616,761				6	%			614,049				6	%			738,631				7	%
Savings deposits			202,427				2	%			203,550				2	%			190,685				2	%			178,533				2	%			170,087				1	%
Money market accounts			4,294,870				42	%			4,627,703				44	%			4,631,138				44	%			4,861,437				46	%			4,896,566				46	%
Brokered deposits:
Traditional			277,628				3	%			455,473				4	%			329,107				3	%			150,183				1	%			103,774				1	%
Client CDARS (1)			956,094				9	%			888,676				8	%			852,458				8	%			828,508				8	%			1,013,115				10	%
Non-client CDARS (1)			108,700				1	%			123,047				1	%			269,262				3	%			262,675				3	%			119,700				1	%
Total brokered deposits			1,342,422				13	%			1,467,196				13	%			1,450,827				14	%			1,241,366				12	%			1,236,589				12	%
Time deposits			1,336,212				13	%			1,348,603				13	%			1,392,357				13	%			1,461,668				14	%			1,437,204				14	%
Total deposits		$	10,234,268				100	%		$	10,625,976				100	%		$	10,535,429				100	%		$	10,530,472				100	%		$	10,569,299				100	%
Client deposits (1)		$	9,847,940				96	%		$	10,047,456				95	%		$	9,937,060				94	%		$	10,117,614				96	%		$	10,345,825				98	%

 

(1)	Refer to Glossary of Terms for definition.

---

Net Interest Margin
Unaudited
(Dollars in thousands)

 

		Three Months Ended June 30,
		2011												2010
		Average Balance				Interest (1)				Rate				Average Balance				Interest (1)				Rate
Assets:
Fed funds sold and other short-term investments		$	631,725			$	399				0.25	%		$	1,016,907			$	664				0.26	%
Securities:
Taxable			1,826,537				15,568				3.41	%			1,630,482				16,417				4.03	%
Tax-exempt (2)			139,620				2,103				6.02	%			170,103				2,676				6.29	%
Total securities			1,966,157				17,671				3.59	%			1,800,585				19,093				4.24	%
Loans, excluding covered assets:
Commercial			5,098,199				58,667				4.55	%			4,334,786				50,442				4.60	%
Commercial real estate			2,719,370				28,348				4.12	%			3,169,320				34,608				4.32	%
Construction			413,049				3,640				3.49	%			590,151				5,348				3.58	%
Residential			314,362				3,424				4.36	%			330,428				3,852				4.66	%
Personal and home equity			441,100				4,023				3.66	%			510,215				5,009				3.94	%
Total loans, excluding covered assets (3)			8,986,080				98,102				4.32	%			8,934,900				99,259				4.40	%
Total interest-earning assets before covered assets (2)			11,583,962				116,172				3.98	%			11,752,391				119,014				4.02	%
Covered assets (4)			332,076				4,289				5.12	%			430,480				13,580				12.52	%
Total interest-earning assets (2)		$	11,916,038			$	120,461				4.01	%		$	12,182,872			$	132,596				4.32	%
Cash and due from banks			156,678												152,495
Allowance for loan and covered loan losses			(245,608	)											(250,202	)
Other assets			672,575												684,659
Total assets		$	12,499,683											$	12,769,824
Liabilities and Equity:
Interest-bearing demand deposits		$	553,328			$	587				0.42	%		$	726,855			$	805				0.44	%
Savings deposits			204,794				209				0.41	%			169,258				240				0.57	%
Money market accounts			4,560,816				5,873				0.52	%			4,820,973				9,128				0.76	%
Time deposits			1,333,194				4,289				1.29	%			1,464,450				5,730				1.57	%
Brokered deposits			1,393,661				2,239				0.64	%			1,473,876				3,807				1.04	%
Total interest-bearing deposits			8,045,793				13,197				0.66	%			8,655,412				19,710				0.91	%
Short term borrowings			70,045				566				3.20	%			193,949				1,383				2.82	%
Long term debt			409,793				5,479				5.33	%			480,678				7,247				6.00	%
Total interest-bearing liabilities			8,525,631				19,242				0.90	%			9,330,039				28,340				1.21	%
Non-interest bearing demand deposits			2,556,527												2,039,396
Other liabilities			158,773												167,144
Equity			1,258,752												1,233,245
Total liabilities and equity		$	12,499,683											$	12,769,824
Net interest spread (5)											3.11	%											3.11	%
Effect of non interest-bearing funds											0.25	%											0.28	%
Net interest income/margin (2) (5) (6)						$	101,219				3.36	%						$	104,256				3.39	%

 

(1)	Interest income included $5.5 million and $5.6 million in loan fees for the three months ended June 30, 2011 and 2010, respectively.

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

(3)

Average loans on a nonaccrual basis for the recognition of interest income totaled $357.2 million and $403.0 million for the three months ended June 30, 2011 and 2010, respectively, and are included in loans for purposes of this analysis. Interest foregone on impaired loans was estimated to be approximately $3.7 million and $4.4 million for the three months ended June 30, 2011 and 2010, respectively, and was based on the average loan portfolio yield for the respective period.

(4)	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.

(5)	Refer to Glossary of Terms for definition.

(6)	For the three months ended June 30, 2011 and 2010, accretion related to covered assets contributed to net interest margin by 3 and 28 basis points, respectively.

Note: Prior period net interest margin computations were modified to conform with the current period presentation.

---

Net Interest Margin
Unaudited
(Dollars in thousands)

 

		Three Months Ended June 30, 2011												Three Months Ended March 31, 2011
		Average Balance				Interest (1)				Rate				Average Balance				Interest (1)				Rate
Assets:
Fed funds sold and other short-term investments		$	631,725			$	399				0.25	%		$	517,641			$	336				0.26	%
Securities:
Taxable			1,826,537				15,568				3.41	%			1,734,347				15,390				3.55	%
Tax-exempt (2)			139,620				2,103				6.02	%			149,260				2,276				6.10	%
Total securities			1,966,157				17,671				3.59	%			1,883,607				17,666				3.75	%
Loans, excluding covered assets:
Commercial			5,098,199				58,667				4.55	%			5,021,733				57,746				4.60	%
Commercial real estate			2,719,370				28,348				4.12	%			2,842,014				29,929				4.21	%
Construction			413,049				3,640				3.49	%			516,609				4,885				3.78	%
Residential			314,362				3,424				4.36	%			329,050				3,785				4.60	%
Personal and home equity			441,100				4,023				3.66	%			466,719				4,065				3.53	%
Total loans, excluding covered assets (3)			8,986,080				98,102				4.32	%			9,176,125				100,410				4.38	%
Total interest-earning assets before covered assets (2)			11,583,962				116,172				3.98	%			11,577,373				118,412				4.09	%
Covered assets (4)			332,076				4,289				5.12	%			353,378				5,237				5.94	%
Total interest-earning assets (2)		$	11,916,038			$	120,461				4.01	%		$	11,930,751			$	123,649				4.15	%
Cash and due from banks			156,678												171,007
Allowance for loan and covered loan losses			(245,608	)											(250,067	)
Other assets			672,575												656,053
Total assets		$	12,499,683											$	12,507,744
Liabilities and Equity:
Interest-bearing demand deposits		$	553,328			$	587				0.42	%		$	599,357			$	642				0.43	%
Savings deposits			204,794				209				0.41	%			197,501				200				0.41	%
Money market accounts			4,560,816				5,873				0.52	%			4,664,227				6,462				0.56	%
Time deposits			1,333,194				4,289				1.29	%			1,379,197				4,518				1.33	%
Brokered deposits			1,393,661				2,239				0.64	%			1,478,171				2,174				0.60	%
Total interest-bearing deposits			8,045,793				13,197				0.66	%			8,318,453				13,996				0.68	%
Short term borrowings			70,045				566				3.20	%			114,957				827				2.88	%
Long term debt			409,793				5,479				5.33	%			411,960				5,483				5.32	%
Total interest-bearing liabilities			8,525,631				19,242				0.90	%			8,845,370				20,306				0.93	%
Non-interest bearing demand deposits			2,556,527												2,264,100
Other liabilities			158,773												157,634
Equity			1,258,752												1,240,640
Total liabilities and equity		$	12,499,683											$	12,507,744
Net interest spread (5)											3.11	%											3.22	%
Effect of non interest-bearing funds											0.25	%											0.24	%
Net interest income/margin (2) (5) (6)						$	101,219				3.36	%						$	103,343				3.46	%

 

(1)	Interest income included $5.5 million and $5.9 million in loan fees for the three months ended June 30, 2011 and March 31, 2011, respectively.

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

(3)

Average loans on a nonaccrual basis for the recognition of interest income totaled $357.2 million and $377.3 million for the three months ended June 30, 2011 and March 31, 2011, respectively, and are included in loans for purposes of this analysis. Interest foregone on impaired loans was estimated to be approximately $3.7 million and $4.0 million for the three months ended June 30, 2011 and March 31, 2011, respectively, and was based on the average loan portfolio yield for the respective period.

(4)	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.

(5)	Refer to Glossary of Terms for definition.

(6)	For the quarters ended June 30, 2011 and March 31, 2011, accretion related to covered assets contributed to net interest margin by 3 and 5 basis points, respectively.

Note: Prior period net interest margin computations were modified to conform with the current period presentation.

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Net Interest Margin
Unaudited
(Dollars in thousands)

 

		Six Months Ended June 30,
		2011												2010
		Average Balance				Interest (1)				Rate				Average Balance				Interest (1)				Rate
Assets:
Fed funds sold and other short-term investments		$	574,998			$	735				0.25	%		$	887,902			$	1,208				0.27	%
Securities:
Taxable			1,780,697				30,958				3.48	%			1,543,805				31,867				4.13	%
Tax-exempt (2)			144,413				4,380				6.07	%			165,829				5,279				6.37	%
Total securities			1,925,110				35,338				3.67	%			1,709,634				37,146				4.35	%
Loans, excluding covered assets:
Commercial			5,060,294				116,412				4.58	%			4,330,364				100,256				4.60	%
Commercial real estate			2,780,249				58,277				4.17	%			3,129,613				68,166				4.33	%
Construction			464,498				8,525				3.65	%			675,535				11,235				3.31	%
Residential			321,562				7,209				4.48	%			332,451				8,102				4.87	%
Personal and home equity			453,866				8,089				3.59	%			515,613				9,831				3.85	%
Total loans, excluding covered assets (3)			9,080,469				198,512				4.35	%			8,983,576				197,590				4.38	%
Total interest-earning assets before covered assets (2)			11,580,577				234,585				4.03	%			11,581,112				235,944				4.06	%
Covered assets (4)			342,668				9,526				5.54	%			447,536				26,311				11.72	%
Total interest-earning assets (2)		$	11,923,245			$	244,111				4.08	%		$	12,028,648			$	262,255				4.34	%
Cash and due from banks			163,802												166,722
Allowance for loan and covered loan losses			(247,825	)											(246,031	)
Other assets			663,580												657,948
Total assets		$	12,502,802											$	12,607,287
Liabilities and Equity:
Interest-bearing demand deposits		$	576,216			$	1,229				0.43	%		$	723,636			$	1,771				0.49	%
Savings deposits			201,168				408				0.41	%			159,860				526				0.66	%
Money market accounts			4,612,237				12,336				0.54	%			4,526,198				17,956				0.80	%
Time deposits			1,356,068				8,807				1.31	%			1,554,618				11,952				1.55	%
Brokered deposits			1,435,683				4,413				0.62	%			1,555,430				9,009				1.17	%
Total interest-bearing deposits			8,181,372				27,193				0.67	%			8,519,742				41,214				0.98	%
Short term borrowings			92,377				1,393				3.00	%			217,285				2,829				2.59	%
Long term debt			410,870				10,962				5.32	%			502,887				14,752				5.84	%
Total interest-bearing liabilities			8,684,619				39,548				0.91	%			9,239,914				58,795				1.28	%
Non-interest bearing demand deposits			2,411,118												1,971,436
Other liabilities			157,315												160,170
Equity			1,249,750												1,235,767
Total liabilities and equity		$	12,502,802											$	12,607,287
Net interest spread (5)											3.17	%											3.06	%
Effect of non interest-bearing funds											0.24	%											0.30	%
Net interest income/margin (2) (5) (6)						$	204,563				3.41	%						$	203,460				3.36	%

 

(1)	Interest income included $11.5 million and $10.9 million in loan fees for the six months ended June 30, 2011 and 2010, respectively.

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

(3)

Average loans on a nonaccrual basis for the recognition of interest income totaled $368.7 million and $409.7 million for the six months ended June 30, 2011 and 2010, respectively, and are included in loans for purposes of this analysis. Interest foregone on impaired loans was estimated to be approximately $7.7 million and $8.9 million for the six months ended June 30, 2011 and 2010, respectively, and was based on the average loan portfolio yield for the respective period.

(4)	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.

(5)	Refer to Glossary of Terms for definition.

(6)	For the six months ended June 30, 2011 and 2010, accretion related to covered assets contributed to net interest margin by 4 and 26 basis points, respectively.

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Non-U.S. 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 (U.S. GAAP) and non-U.S. GAAP based financial measures. These non-U.S. 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 equity to risk-weighted assets, tangible equity to tangible assets, tangible equity to risk-weighted assets, tangible common equity to tangible assets, and tangible book value. We believe that presenting these non-U.S. 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 equity to risk-weighted assets, tangible equity to tangible assets, tangible equity to risk-weighted assets, tangible common equity to tangible assets, and tangible book value. These calculations are intended to complement the capital ratios defined by banking regulators for both absolute and comparative purposes. Certain of these measures exclude from capital the ending balances of goodwill and other intangibles and/or preferred capital components. Because U.S. GAAP does not include capital ratio measures, we believe there are no comparable U.S. GAAP financial measures to these ratios. We believe these non-U.S. 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-U.S. GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although these non-U.S. 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 U.S. 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-U.S. GAAP financial measures to U.S. GAAP:

 

		Quarters Ending
		2Q11				1Q11				4Q10				3Q10				2Q10
Taxable-equivalent interest income
U.S. GAAP net interest income		$	100,503			$	102,553			$	100,347			$	98,959			$	103,332
Taxable-equivalent adjustment			716				790				876				891				924
Taxable-equivalent net interest income (a)		$	101,219			$	103,343			$	101,223			$	99,850			$	104,256
Average Earning Assets (b)		$	11,916,038			$	11,930,751			$	11,918,849			$	11,938,905			$	12,182,872
Net Interest Margin ((a) annualized) / (b)			3.36	%			3.46	%			3.33	%			3.28	%			3.39	%
Net Revenue
Taxable-equivalent net interest income (a)		$	101,219			$	103,343			$	101,223			$	99,850			$	104,256
U.S. GAAP non-interest income			21,592				23,627				34,865				23,360				19,953
Net revenue		$	122,811			$	126,970			$	136,088			$	123,210			$	124,209
Operating Profit
Taxable-equivalent net interest income (a)		$	101,219			$	103,343			$	101,223			$	99,850			$	104,256
U.S. GAAP non-interest income			21,592				23,627				34,865				23,360				19,953
Less: U.S. GAAP non-interest expense			75,664				75,349				82,148				68,077				76,002
Operating profit		$	47,147			$	51,621			$	53,940			$	55,133			$	48,207
Efficiency Ratio
U.S. GAAP non-interest expense (c)		$	75,664			$	75,349			$	82,148			$	68,077			$	76,002
Taxable-equivalent net interest income (a)		$	101,219			$	103,343			$	101,223			$	99,850			$	104,256
U.S. GAAP non-interest income			21,592				23,627				34,865				23,360				19,953
Net revenue (d)		$	122,811			$	126,970			$	136,088			$	123,210			$	124,209
Efficiency ratio (c) / (d)			61.61	%			59.34	%			60.36	%			55.25	%			61.19	%

Note: Prior period net interest margin computations were modified to conform with the current period presentation.

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

 

		Six Months Ending June 30,
		2011				2010
Taxable-equivalent interest income
U.S. GAAP net interest income		$	203,056			$	201,651
Taxable-equivalent adjustment			1,507				1,809
Taxable-equivalent net interest income (a)		$	204,563			$	203,460
Average Earning Assets (b)		$	11,923,245			$	12,028,648
Net Interest Margin ((a) annualized) / (b)			3.41	%			3.36	%
Net Revenue
Taxable-equivalent net interest income (a)		$	204,563			$	203,460
U.S. GAAP non-interest income			45,219				35,021
Net revenue		$	249,782			$	238,481
Operating Profit
Taxable-equivalent net interest income (a)		$	204,563			$	203,460
U.S. GAAP non-interest income			45,219				35,021
Less: U.S. GAAP non-interest expense			151,013				149,373
Operating profit		$	98,769			$	89,108
Efficiency Ratio
U.S. GAAP non-interest expense (c)		$	151,013			$	149,373
Taxable-equivalent net interest income (a)		$	204,563			$	203,460
U.S. GAAP non-interest income			45,219				35,021
Net revenue (d)		$	249,782			$	238,481
Efficiency ratio (c) / (d)			60.46	%			62.64	%

 

		Quarters Ending
		2Q11				1Q11				4Q10				3Q10				2Q10
Tier 1 Common Capital
U.S. GAAP total equity		$	1,260,648			$	1,238,132			$	1,227,910			$	1,245,139			$	1,236,092
Trust preferred securities			244,793				244,793				244,793				244,793				244,793
Less: unrealized gains on available-for-sale securities			32,535				19,121				20,078				48,776				47,758
Less: disallowed deferred tax assets			—				—				5,377				—				6,360
Less: goodwill			94,596				94,609				94,621				94,633				94,646
Less: other intangibles			16,089				16,464				16,840				17,242				17,655
Tier 1 risk-based capital			1,362,221				1,352,731				1,335,787				1,329,281				1,314,466
Less: preferred stock			239,642				239,270				238,903				238,542				238,185
Less: trust preferred securities			244,793				244,793				244,793				244,793				244,793
Less: noncontrolling interests			163				105				33				250				179
Tier 1 common capital (e)		$	877,623			$	868,563			$	852,058			$	845,696			$	831,309
Tangible Common Equity
U.S. GAAP total equity		$	1,260,648			$	1,238,132			$	1,227,910			$	1,245,139			$	1,236,092
Less: goodwill			94,596				94,609				94,621				94,633				94,646
Less: other intangibles			16,089				16,464				16,840				17,242				17,655
Tangible equity (f)			1,149,963				1,127,059				1,116,449				1,133,264				1,123,791
Less: preferred stock			239,642				239,270				238,903				238,542				238,185
Tangible common equity (g)		$	910,321			$	887,789			$	877,546			$	894,722			$	885,606
Tangible Assets
U.S. GAAP total assets		$	12,115,377			$	12,497,442			$	12,465,621			$	12,583,965			$	12,611,040
Less: goodwill			94,596				94,609				94,621				94,633				94,646
Less: other intangibles			16,089				16,464				16,840				17,242				17,655
Tangible assets (h)		$	12,004,692			$	12,386,369			$	12,354,160			$	12,472,090			$	12,498,739
Risk-weighted Assets (i)		$	10,518,850			$	10,903,625			$	11,080,051			$	10,850,399			$	10,571,135
Period-end Shares Outstanding (j)			71,808				71,428				71,327				71,386				71,403
Ratios:
Tier 1 common equity to risk-weighted assets (e) / (i)			8.34	%			7.97	%			7.69	%			7.79	%			7.86	%
Tangible equity to tangible assets (f) / (h)			9.58	%			9.10	%			9.04	%			9.09	%			8.99	%
Tangible equity to risk-weighted assets (f) / (i)			10.93	%			10.34	%			10.08	%			10.44	%			10.63	%
Tangible common equity to tangible assets (g) / (h)			7.58	%			7.17	%			7.10	%			7.17	%			7.09	%
Tangible book value (g) / (j)		$	12.68			$	12.43			$	12.30			$	12.53			$	12.40

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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 reporting purposes; however, we classify these deposits as client CDARS^® due to the source being our 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 not 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 quality indicators - The Company has adopted an internal risk rating policy in which each loan is rated for credit quality with a numerical rating of 1 through 8. Loans rated 5 and better (1-5 ratings, inclusive) are credits that exhibit acceptable financial performance, cash flow, and leverage. If any risk exists, we attempt to mitigate by structure, collateral, monitoring, or other meaningful controls. Credits rated 6 are considered special mention as these credits demonstrate potential weakness and that if left unresolved, may result in deterioration in the Company’s credit position and/or the repayment prospects for the credit. Borrowers rated special mention may exhibit adverse operating trends, high leverage, tight liquidity or other credit concerns. Potential problem loans have a risk rating of 7 and are considered inadequately protected by the current net worth and paying capacity of the obligor, the collateral pledged, or guarantors. These loans generally have a well defined weakness or weaknesses that may jeopardize liquidation of the debt and are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not resolved. Nonperforming loans include nonaccrual loans risk rated 7 or 8 and have all the weaknesses inherent in a 7-rated potential problem loan with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Special mention, potential problem and nonperforming loans are reviewed at minimum on a quarterly basis, while all other rated credits are reviewed as the situation warrants.

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-U.S. GAAP financial measure.

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

U.S. 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 interest-earning assets. This is a non-U.S. 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-U.S. GAAP financial measure.

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

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

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Glossary of Terms (continued)

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 U.S. 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. This is a non-U.S. GAAP financial measure.

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 gains (losses) on available for sale equity securities, available for sale debt securities, and cash flow hedge derivatives.

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.

Transformational and legacy portfolios - We aggregate loans by originating line of business for reserve purposes because of observable similarities in the performance experience of loans underwritten by the business units. Loans originated by the business units that existed prior to the strategic changes in 2007 are considered “legacy” loans. Loans originated by a business unit that was established in connection with or following the business transformation plan are considered “transformational” loans. Renewals or restructurings of legacy loans may continue to be evaluated as legacy loans depending on the structure or defining characteristics of the new transaction. The Company has implemented a line of business model that has reorganized the legacy business units so that after 2009, all new loan originations are considered transformational.