On February 1, 2006, the Company completed its acquisition of EFC Bancorp, Inc. (EFC) in a cash and stock transaction valued at $176.6 million. The Company paid $71.6 million in cash, issued 2.34 million shares and assumed EFC stock options. The Company funded the cash portion of the merger consideration primarily through a $52 million increase in its unsecured term bank loan. At the time of acquisition, EFC had total assets of approximately $1.1 billion, loans receivable of $865.2 million, deposits of $703.4 million and borrowings of $258.9 million. The closing of the EFC merger resulted in an overall increase in goodwill and core deposit intangibles of $97.2 million. As a result of the merger, the Company has expanded its Chicago area footprint with the addition of seven banking offices in northwest suburban Kane and Cook counties which operate under the Mid America Bank name.
Net Interest Income and Net Interest Margin
QE 3/31/06 QE 12/31/05 QE 3/31/05
---------- ----------- ----------
Net interest margin 2.64% 2.69% 3.04%
Interest rate spread 2.35% 2.44% 2.81%
Net interest income (000's) $ 67,442 $ 64,018 $ 67,539
Average assets:
Yield on interest-earning
assets 5.56% 5.38% 5.04%
Yield on loans receivable 5.88% 5.69% 5.22%
Yield on mortgage-backed
securities 4.51% 4.37% 4.05%
Average interest-earning
assets (000's) $10,230,506 $ 9,505,190 $ 8,899,553
Average liabilities:
Cost of interest-bearing
liabilities 3.21% 2.94% 2.22%
Cost of deposits 2.59% 2.30% 1.62%
Cost of borrowed funds 4.31% 4.10% 3.50%
Cost of junior
subordinated debt 6.13% 5.54% N/A
Average interest-bearing
liabilities (000's) $ 9,354,380 $ 8,671,094 $ 8,030,404
Net Interest Margin: 1st Quarter 2006 v. 4th Quarter 2005. Net interest income and average interest-earning assets have increased since the prior quarter as a result of the EFC acquisition. The net interest margin declined during the quarter as the cost of interest-bearing liabilities increased faster than the yield on interest-earning assets in the rising interest rate environment. The higher cost of interest-bearing liabilities reflects higher short-term rates, as well as a change in the mix of deposits as consumer preference has shifted toward higher-yielding certificates of deposit and out of passbook and money market accounts. Due to the pressure on net interest margin from the flat yield curve environment, the Company is limiting growth in its lowest yielding asset categories, one- to four-family loans and securities, and implemented a new stock repurchase program during the quarter to enhance shareholder return.
Net Interest Margin: 1st Quarter 2006 v. 1st Quarter 2005. On a year-over-year basis, the net interest margin declined by 40 basis points due to a combination of rising short-term interest rates, a flattening yield curve environment over the past 12 months, additional bank-owned life insurance investments, lower yield on the Company's investment in Federal Home Loan Bank of Chicago stock, and higher deposit pricing driven by increased pricing competition and a continued shift of funds out of lower cost core deposits into certificates of deposit.
Loan Portfolio Composition
3/31/06 12/31/05 3/31/05
------------ ------------ ------------
(Dollars in thousands)
One- to
four-family $4,674,897 58.0% $4,246,345 58.9% $4,038,442 58.9%
Home equity loans
and lines
of credit 1,403,037 17.4 1,346,750 18.7 1,316,755 19.3
Multi-family 734,879 9.1 687,205 9.5 654,574 9.6
Commercial
real estate 652,899 8.1 473,740 6.6 463,938 6.8
Commercial
business 165,324 2.0 146,746 2.0 147,842 2.2
Construction 217,346 2.7 154,873 2.1 121,395 1.8
Land 211,648 2.6 150,012 2.1 87,994 1.3
Consumer 7,506 0.1 5,566 0.1 8,479 0.1
Total loans ---------- ----- ---------- ----- ---------- -----
receivable,
net $8,067,536 100.0% $7,211,237 100.0% $6,839,419 100.0%
========== ===== ========== ===== ========== =====
The growth in the Company's loan portfolio since December 31, 2005, is primarily due to the $865 million of loans added in the EFC acquisition, although organic growth was strong in loan categories other than one- to four-family loans and equity lines of credit. Without the effect of the EFC acquisition, non one- to four-family and home equity loans grew at an annualized rate of 24%. The Company limited growth in its one- to four-family portfolio, other than through the EFC acquisition, electing to sell adjustable-rate as well as fixed-rate production. The home equity loans and lines of credit portfolio grew 1.6%, exclusive of EFC, as consumer demand for equity lines has lessened in the rising rate environment.
Non-Interest Income
QE 3/31/06 QE 12/31/05 QE 3/31/05
---------- ----------- ----------
Total non-interest
income (000's) $ 20,707 $ 24,141 $ 18,279
Non-interest income
/ total revenue(1) 23.5% 27.4% 21.3%
(1) Total revenue equals net interest income plus non-interest income.
Non-interest income decreased 14.2% compared to the fourth quarter of 2005 and increased 13.3% compared to the first quarter of 2005. The decrease from the fourth quarter of 2005 is due in part to a decline of $1.9 million in income from real estate operations. In addition, the prior quarter included a gain of $2.4 million on the sale of mortgage servicing rights. The majority of the increase in non-interest income compared to the prior year quarter is due to organic growth in almost all income categories except gain on sale of loans receivable and investments.
One- to four-family Mortgage Originations, Sales and Servicing
QE 3/31/06 QE 12/31/05 QE 3/31/05
--------- --------- ---------
(Dollars in thousands)
One- to four-family Originations
and Purchases
Fixed-rate $ 126,966 $ 159,512 $ 134,101
Adjustable rate 251,109 353,523 280,628
--------- --------- ---------
Total $ 378,075 $ 513,035 $ 414,729
========= ========= =========
Fixed-rate % 34% 31% 32%
Adjustable rate % 66% 69% 68%
Refinance % 32% 33% 40%
Loan Sales
One- to four-family
fixed-rate $ 135,725 $ 166,778 $ 145,525
One- to four-family
adjustable rate 91,900 - 8,364
--------- --------- ---------
Total one- to four-family 227,625 166,778 153,889
Equity lines of credit
and home equity loans 28,312 11,698 76,843
--------- --------- ---------
Total loans sold $ 255,937 $ 178,476 $ 230,732
========= ========= =========
Gain on sale of one- to
four-family mortgages $ 2,378 $ 1,575 $ 1,946
Gain on sale of equity
lines of credit 602 266 1,930
--------- --------- ---------
Total loan sale gains $ 2,980 $ 1,841 $ 3,876
========= ========= =========
Margin on one- to four-family
loan sales 1.04% .94% 1.26%
Loan Servicing
Gain on sale of mortgage
servicing rights $ - $ 2,400 $ -
Recovery on mortgage
servicing rights impairment - 46 125
Loan servicing fee income 785 443 681
Capitalized mortgage
servicing rights as a
percentage of loans
serviced for others .68% .69% .69%
Total one- to four-family residential mortgage loan volume decreased 26% during the current quarter compared to the fourth quarter of 2005, and was down 9% compared to the first quarter of 2005. Loan volume demand is declining due to rising market interest rates. Higher loan sale gains in the first quarter of 2006 compared to the fourth quarter of 2005 resulted from the increased sales of adjustable one- to four-family loans and also benefited from modestly higher margins. The decrease in loan sale gains compared to the prior year is due to lower sales of higher-margin equity lines of credit. Loan servicing income increased primarily due to lower amortization expense as loan prepayments have slowed.
Deposit Account Service Fees
QE 3/31/06 QE 12/31/05 QE 3/31/05
---------- ----------- ----------
Deposit service fees (000's) $ 8,722 $ 9,436 $ 7,646
Deposit service fees / total
revenue 9.9% 10.7% 8.9%
Number of checking accounts
(period end) 267,100 252,200 246,630
The 6% increase in the number of checking accounts during the current quarter is primarily due to the acquisition of EFC. The decrease on sequential quarter basis fee income is due to seasonal declines in consumer overdraft activity. Deposit account service fees increased 14% over fees recorded in last year's first quarter, primarily attributable to increases in debit card activity and a larger deposit base.
Real Estate Development Operations
QE 3/31/06 QE 12/31/05 QE 3/31/05
---------- ---------- ----------
Real estate development income -
total (000's) $ 852 $ 2,762 $ -
Residential lot sale closings 55 123 -
Pending lot sales at quarter end 28 85 169
Investment in real estate held for
development or sale (000's) $ 55,082 $ 50,066 $ 40,173
Activity during the first quarter of 2006 reflects closings of lots previously under contract in the initial phases of the Springbank project. Work is underway on the next phase where sales are expected to commence later in the year. Income from real estate for the fourth quarter of 2005 also includes $482,000 related to a prior land development project. Springbank has been selected as the site for the Northern Illinois Home Builders Association's 2006 Cavalcade of Homes, to be held this summer. This annual showcase of model homes is expected to bring considerable attention and customer traffic to the development and offers unique sales opportunities. Due to the timing of this event and the pace of improvements, sales in the project are expected to be higher in the second half of the year.
Non-Interest Expense
QE 3/31/06 QE 12/31/05 QE 3/31/05
---------- ---------- ----------
Total non-interest expense (000's) $ 49,668 $ 44,936 $ 48,599
Non-interest expense to average assets 1.78% 1.74% 2.01%
Efficiency ratio(1) 56.35% 52.40% 56.96%
(1) The efficiency ratio is calculated by dividing non-interest expense by
the sum of net interest income and non-interest income, excluding net
gain (loss) on sale and write-down of mortgage-backed and investment
securities and mortgage servicing rights.
1st Quarter 2006 v. 4th Quarter 2005. The increase in non-interest expense during the first quarter of 2006 is primarily attributable to the acquisition and costs related to the data processing conversion of EFC completed during the quarter. In addition, normal salary increases and higher incentive accruals, employment taxes and medical insurance expenses contributed to the increase relative to the prior quarter. Many of the projected cost savings from EFC will not be fully realized until the second quarter, including the closing of two branches. The increase in the Company's efficiency ratio compared to the prior quarter reflects the impact on non-interest expenses from the EFC acquisition, as well as the decline in non-interest income.
1st Quarter 2006 v. 1st Quarter 2005. Compared to a year ago, total non-interest expense increased $1.1 million, or 2.2%. Compensation and benefits were up modestly due to the impact of the EFC transaction and normal salary increases, offset by the efficiency improvements realized later in 2005, the reduction of incentive accruals and a workmen's compensation insurance refund based on insurance company audits of prior years' activity. Office occupancy and equipment increased by $1.0 million, or 14.4%, primarily due to occupancy expense related to ten new branches added over the past year, including seven branches acquired in the EFC acquisition. Other non-interest expenses declined by $937,000 primarily due to lower professional expense, lower telephone expense, reduced recording fees and lower fraud and bad check losses.
Income Tax Expense
Income tax expense totaled $13.0 million in the current quarter, equal to an effective income tax rate of 34.1%, lower than the 35.0% reported in the fourth quarter of 2005 and the quarter ended March 31, 2005. The decrease in the effective tax rate over the past three months was attributable in part to an increase in tax-exempt investments and tax-advantaged bank-owned life insurance (BOLI) investments acquired from EFC. The lower effective tax rate in the current quarter compared to the first quarter of 2005 was primarily attributable to the increase in tax-exempt and BOLI investments.
Asset Quality
3/31/06 12/31/05 3/31/05
------- -------- -------
(Dollars in thousands)
Non-performing loans (NPL) $ 37,530 $ 31,160 $ 30,309
Non-performing assets (NPA) 39,787 31,949 31,779
NPL / total loans .47% .43% .44%
NPA / total assets .34% .30% .33%
Allowance for loan losses (ALL) $ 41,021 $ 36,495 $ 36,249
ALL / total loans .51% .51% .53%
ALL / NPL 109.3% 117.1% 119.6%
Provision for loan losses for the
quarter ended $ 400 $ 1,500 $ -
Net charge-offs for the quarter ended 168 1,340 6
Asset quality at the end of the current quarter remained solid. The increase in non-performing loans during the quarter reflects higher delinquencies in the one- to four-family and equity lines of credit portfolios and the acquisition of EFC. The Company acquired a $4.3 million allowance in the EFC acquisition. Net charge-offs in the first quarter of 2006 consisted primarily of one- to four-family loans and equity lines of credit. At March 31, 2006, 91% of non-performing loans consisted of loans secured by one- to four-family residential properties, compared to 93% reported at December 31, 2005.
Balance Sheet & Capital
3/31/06 12/31/05 3/31/05
------- -------- -------
(Dollars in thousands)
Assets:
Total assets $ 11,534,062 $ 10,487,504 $ 9,715,529
Loans receivable 8,131,292 7,289,224 6,831,830
Mortgage-backed securities 1,526,426 1,556,570 1,314,000
Liabilities and Equity:
Total liabilities $ 10,467,758 $ 9,509,325 $ 8,762,459
Deposits 6,895,974 6,197,503 6,014,946
Borrowed funds 3,306,934 3,057,669 2,575,155
Junior subordinated debentures 67,011 67,011 -
Stockholders' equity 1,066,304 978,179 953,070
Other:
Core deposits / total deposits 51.6% 53.4% 59.0%
Book value per share $ 31.50 $ 30.50 $ 29.27
Stockholders' equity / total
assets 9.2% 9.3% 9.8%
Deposit Composition
3/31/06 12/31/05
------- --------
Weighted Weighted
Average Average
Amount Rate Amount Rate
------ -------- ------ --------
(Dollars in thousands)
Commercial checking $ 282,940 - $ 258,632 -
Non-interest bearing checking 304,902 - 291,462 -
Interest-bearing checking 827,039 1.01% 816,387 .98%
Commercial money market 103,347 3.91% 60,064 3.07%
Money market 711,950 2.66% 615,280 2.34%
Passbook 1,327,165 .69% 1,268,680 .60%
----------- -------- ------------ --------
Core deposits 3,557,343 1.14% 3,310,505 .96%
----------- -------- ------------ --------
Certificates of deposit 3,339,271 3.95% 2,885,998 3.65%
----------- -------- ------------ --------
Unamortized premium
(discount) (640) - 1,000 -
----------- -------- ------------ --------
Total deposits $ 6,895,974 2.50% $ 6,197,503 2.22%
=========== ======== =========== ========
3/31/05
-------
Weighted
Average
Amount Rate
------ --------
(Dollars in thousands)
Commercial checking $ 246,891 -
Non-interest bearing checking 251,769 -
Interest-bearing checking 906,577 .94%
Commercial money market 86,705 2.05%
Money market 667,740 1.38%
Passbook 1,386,562 .57%
------------ --------
Core deposits 3,546,244 .78%
------------ --------
Certificates of deposit 2,466,414 2.83%
------------ --------
Unamortized premium 2,288 -
------------ --------
Total deposits $ 6,014,946 1.62%
============ ========
Stockholders' Equity
The Company issued $101.0 million of stock, totaling 2.34 million shares, for the acquisition of EFC. During the current quarter, the Company paid $8.5 million in cash dividends, and spent $31.8 million for the repurchase of 738,005 shares of its common stock at an average price of $43.06. The Bank's tangible, core and risk-based capital ratios at March 31, 2006 exceeded minimum and well-capitalized regulatory capital requirements.
Company Profile
MAF Bancorp is the parent company of Mid America Bank, a federally chartered stock savings bank. The Bank currently operates a network of 82 retail banking offices throughout Chicago and Milwaukee and their surrounding areas. Offices in Wisconsin operate under the name "St. Francis Bank, a division of Mid America Bank." The Company's common stock trades on the Nasdaq Stock Market under the symbol MAFB.
Forward-Looking Information
Statements contained in this news release that are not historical facts, constitute forward-looking statements (within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended), which involve significant risks and uncertainties. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and is including this statement for purposes of invoking these safe harbor provisions. These forward-looking statements, which are based on certain assumptions and describe future plans, strategies and expectations of the Company, are generally identifiable by use of the words "believe," "expect," "intend," "anticipate," "estimate," "project," "plan," or similar expressions. The Company's ability to predict results or the actual effect of future plans or strategies is inherently uncertain and actual results may differ from those predicted. The Company undertakes no obligation to update these forward-looking statements in the future.
Factors which could have a material adverse effect on operations and could affect management's outlook or future prospects of the Company and its subsidiaries include, but are not limited to, unanticipated changes in interest rates or further flattening or inversion of the yield curve, unanticipated changes in secondary mortgage market conditions, deposit flows, competition, adverse federal or state legislative or regulatory developments, higher than expected compliance costs, changes in economic conditions which result in increased delinquencies in the Company's loan portfolio, the quality or composition of the Company's loan or investment portfolios, demand for loan products, financial services and residential real estate in the Company's market areas, delays in our real estate development project, difficulties relating to the integration of the EFC acquisition and the possible short-term dilutive effect of the EFC acquisition or other potential acquisitions, if any, and changes in accounting principles, policies and guidelines. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements.
MAF BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share data)
Three Months Ended
March 31,
--------------------------
2006 2005
------------ ------------
(Unaudited)
Interest income $ 141,515 $ 111,524
Interest expense 74,073 43,985
------------ ------------
Net interest income 67,442 67,539
Provision for loan losses 400 -
------------ ------------
Net interest income after provision for loan
losses 67,042 67,539
Non-interest income:
Net gain (loss) on sale of:
Loans receivable held for sale 2,980 3,876
Investment securities - 498
Foreclosed real estate (43) 134
Deposit account service charges 8,722 7,646
Other loan fees 1,916 1,140
Bank-owned life insurance 1,494 945
Brokerage and insurance commissions 1,507 1,158
Loan servicing fee income 785 681
Valuation recovery on mortgage servicing
rights - 125
Income from real estate operations 852 -
Other 2,494 2,076
------------ ------------
Total non-interest income 20,707 18,279
Non-interest expense:
Compensation and benefits 27,433 27,074
Office occupancy and equipment 7,989 6,981
Advertising and promotion 1,739 2,001
Data processing 2,666 2,044
Other 8,825 9,762
Amortization of core deposit intangibles 1,016 737
------------ ------------
Total non-interest expense 49,668 48,599
------------ ------------
Income before income taxes 38,081 37,219
Income taxes 13,001 13,042
------------ ------------
Net income $ 25,080 $ 24,177
============ ============
Basic earnings per share $ .75 $ .73
============ ============
Diluted earnings per share $ .74 $ .72
============ ============
Average common and common equivalent shares
outstanding (in thousands):
Basic 33,378 32,938
Diluted 34,019 33,686
MAF BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands)
March 31, December 31,
2006 2005
------------ ------------
(Unaudited)
Assets
Cash and due from banks $ 138,328 $ 183,799
Interest-bearing deposits 41,423 38,491
Federal funds sold 89,538 23,739
------------ ------------
Total cash and cash equivalents 269,289 246,029
Investment securities available for sale,
at fair value 517,712 475,152
Stock in Federal Home Loan Bank of Chicago,
at cost 178,286 165,663
Mortgage-backed securities available for sale,
at fair value 1,290,935 1,313,409
Mortgage-backed securities held to maturity
(fair value $227,020 and $237,489) 235,491 243,161
Loans receivable held for sale 104,777 114,482
Loans receivable, net 8,067,536 7,211,237
Allowance for loan losses (41,021) (36,495)
------------ ------------
Loans receivable, net of allowance for
loan losses 8,026,515 7,174,742
------------ ------------
Accrued interest receivable 49,248 44,339
Foreclosed real estate 2,275 789
Real estate held for development or sale 55,082 50,066
Premises and equipment, net 180,401 149,312
Bank-owned life insurance 128,688 107,253
Other assets 63,969 68,685
Goodwill 388,070 304,251
Intangibles, net 43,324 30,171
------------ ------------
Total assets 11,534,062 10,487,504
============ ============
Liabilities and Stockholders' Equity
Liabilities:
Deposits 6,895,974 6,197,503
Borrowed funds 3,306,934 3,057,669
Junior subordinated debentures 67,011 67,011
Advances by borrowers for taxes and insurance 50,060 45,115
Accrued expenses and other liabilities 147,779 142,027
------------ ------------
Total liabilities 10,467,758 9,509,325
------------ ------------
Stockholders' equity:
Preferred stock, $.01 par value; authorized
5,000,000 shares; none outstanding - -
Common stock, $.01 par value; 80,000,000
shares authorized; 34,499,494 and 33,634,642
shares issued; 33,854,382 and 32,066,721
shares outstanding 345 336
Additional paid-in capital 568,191 527,131
Retained earnings, substantially restricted 550,710 537,140
Accumulated other comprehensive loss, net of tax (25,134) (19,391)
Treasury stock, at cost 645,112 and
1,567,921 shares (27,808) (67,037)
------------ ------------
Total stockholders' equity 1,066,304 978,179
------------ ------------
$ 11,534,062 $ 10,487,504
------------ ------------
MAF BANCORP, INC. AND SUBSIDIARIES
SELECTED FINANCIAL DATA
(In thousands, except share data)
(Unaudited)
March 31, December 31, March 31,
2006 2005 2005
------------ ------------ ------------
Book value per share $ 31.50 $ 30.50 $ 29.27
Tangible book value per share(1) 19.37 20.70 19.52
Stockholders' equity to total
assets 9.24% 9.33% 9.81%
Tangible stockholders' equity to
tangible assets(1) 5.89 6.52 6.76
Tangible capital ratio (Bank
only) 7.20 7.07 7.42
Core capital ratio (Bank only) 7.20 7.07 7.42
Risk-based capital ratio (Bank
only) 11.18 11.15 11.78
Common shares outstanding 33,854,382 32,066,721 32,558,252
Mortgage loans serviced for
others $ 3,059,932 $ 2,919,075 $ 3,659,359
Capitalized mortgage servicing
rights, net 20,698 20,007 25,383
Core deposit intangibles, net 22,626 10,164 12,329
Three Months Ended
March 31,
--------------------------
2006 2005
------------ ------------
Average balance data:
Total assets $ 11,149,303 $ 9,658,497
Loans receivable 7,920,161 6,910,358
Interest-earning assets 10,230,506 8,899,553
Interest-bearing deposits 6,045,139 5,461,493
Interest-bearing liabilities 9,354,380 8,030,404
Stockholders' equity 1,043,472 968,343
Performance ratios (annualized):
Return on average assets .90% 1.00%
Return on average equity 9.61 9.99
Return on average tangible
equity(1) 15.03 14.87
Average yield on interest-earning
assets 5.56 5.03
Average cost of interest-bearing
liabilities 3.21 2.22
Interest rate spread 2.35 2.81
Net interest margin 2.64 3.04
Non-interest expense to average
assets 1.78 2.01
Non-interest expense to average
assets and loans serviced for
others 1.41 1.46
Efficiency ratio(2) 56.35 56.96
Loans sold $ 255,937 $ 230,732
Cash dividends declared per share .25 .23
(1) See "Reconciliation of GAAP to non-GAAP Financial Measures" on the
following page.
(2) The efficiency ratio is calculated by dividing non-interest expense
by the sum of net interest income and non-interest income, excluding
net gain (loss) on sale of mortgage-backed and investment securities
and mortgage servicing rights.
MAF BANCORP, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
This press release contains certain financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America, or GAAP. These measures include tangible book value per share, tangible stockholders' equity to tangible assets ratio and annualized return on average tangible equity. The Company's management uses these non-GAAP measures in its analysis of the Company's performance and financial condition and believes this presentation provides useful supplemental information that is helpful in understanding our financial condition and results, as they provide a method to assess management's success in managing and utilizing tangible capital. These disclosures should not be considered an alternative to GAAP, nor are they necessarily comparable to non-GAAP performance measures that might be presented by other companies.
Tangible Book Value Per Share
Tangible book value per share is calculated by dividing (a) stockholders' equity less the sum of goodwill and core deposit intangibles, by (b) common shares outstanding. The following table presents a reconciliation of stockholders' equity to tangible stockholders' equity (in thousands):
3/31/06 12/31/05 3/31/05
------------------- ---------------- ----------------
Per Per Per
Amount share Amount share Amount share
----------- ------ -------- ------ -------- ------
Stockholders'
equity - as
reported $ 1,066,304 $31.50 $978,179 $30.50 $953,070 $29.27
Goodwill (388,070) (11.46) (304,251) (9.49) (305,166) (9.37)
Core deposit
intangibles (22,626) ( .67) (10,164) ( .32) (12,329) ( .38)
----------- ------ -------- ------ -------- ------
Tangible
stockholders'
equity $ 655,608 $19.37 $663,764 $20.70 $635,575 $19.52
=========== ====== ======== ====== ======== ======
Tangible Stockholders' Equity to Tangible Assets
Tangible stockholders' equity to tangible assets is calculated by dividing (a) stockholders' equity less the sum of goodwill and core deposit intangibles, by (b) total assets less the sum of goodwill and core deposit intangibles. The following table presents a reconciliation of total assets to tangible assets (in thousands):
3/31/06 12/31/05 3/31/05
----------- ----------- -----------
Total assets - as reported $11,534,062 $10,487,504 $ 9,715,529
Goodwill (388,070) (304,251) (305,166)
Core deposit intangibles (22,626) (10,164) (12,329)
----------- ----------- -----------
Tangible total assets $11,123,366 $10,173,089 $ 9,398,034
=========== =========== ===========
Return on Average Tangible Stockholders' Equity
Return on average tangible stockholders' equity is calculated by dividing (a) annualized net income by (b) average stockholders' equity less the sum of average goodwill and core deposit intangibles. The following table presents a reconciliation of average stockholders' equity to average tangible stockholders' equity (in thousands):
3/31/06 12/31/05 3/31/05
----------- ----------- -----------
Average stockholders' equity $ 1,043,472 $ 974,797 $ 968,343
Average goodwill (357,331) (304,313) (305,178)
Average core deposit intangibles (18,712) (10,633) (12,812)
----------- ----------- -----------
Average tangible stockholders'
equity $ 667,429 $ 659,851 $ 650,353
=========== =========== ===========
