United Community Banks, Inc.
UNITED COMMUNITY BANKS INC (Form: 10-Q, Received: 05/09/2013 13:00:19)


 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-Q
 
x       QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the Quarterly Period Ended March 31, 2013
 
OR
 
o       TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the Transition Period from ___________ to ___________
 
Commission file number 001-35095
 
 
UNITED COMMUNITY BANKS, INC.
 
(Exact name of registrant as specified in its charter)
 
 
Georgia
 
   
58-1807304
 
(State of Incorporation)
 
(I.R.S. Employer Identification No.)
 
 
125 Highway 515 East
   
 
Blairsville, Georgia
     
30512
 
Address of Principal
Executive Offices
 
(Zip Code)
 
(706) 781-2265
(Telephone Number)
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
 
                                                                                                                                  YES x   NO o
 
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Date File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
 
                                                                                                                                 YES x   NO o
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer or a smaller reporting company.  See definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer o Accelerated filer x
Non-accelerated filer o (Do not check if a smaller reporting company) Smaller Reporting Company o
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).
 
                                                                                                                              YES o   NO x
 
Common stock, par value $1 per share 43,071,080 shares voting and 14,703,636 shares non-voting outstanding as of April 30, 2013.
 
 
 
 

 

INDEX
 
           
 
PART I - Financial Information
           
   
Item 1.
Financial Statements.
   
           
     
Consolidated Statement of Income (unaudited) for the Three Months Ended  March 31, 2013 and 2012
 
3
           
     
Consolidated Statement of Comprehensive Income (unaudited) for the Three Months Ended March 31, 2013 and 2012
 
4
           
     
Consolidated Balance Sheet at March 31, 2013 (unaudited), December 31, 2012 (audited) and March 31, 2012 (unaudited)
 
5
           
     
Consolidated Statement of Changes in Shareholders’ Equity (unaudited) for the Three Months Ended March 31, 2013 and 2012
 
6
           
     
Consolidated Statement of Cash Flows (unaudited) for the Three Months  Ended March 31, 2013 and 2012
 
7
           
     
Notes to Consolidated Financial Statements
 
8
           
   
Item 2. 
Management’s Discussion and Analysis of Financial Condition and Results of Operations.
 
33
           
   
Item 3. 
Quantitative and Qualitative Disclosures About Market Risk.
 
54
           
   
Item 4. 
Controls and Procedures.
 
54
           
 
PART II - Other Information
           
   
Item 1. 
Legal Proceedings.
 
55
   
Item 1A. 
Risk Factors.
 
55
   
Item 2. 
Unregistered Sales of Equity Securities and Use of Proceeds.
 
55
   
Item 3. 
Defaults Upon Senior Securities.
 
55
   
Item 4. 
Mine Safety Disclosures.
 
55
   
Item 5. 
Other Information.
 
55
   
Item 6. 
Exhibits.
 
56
 
 
2

 
 
Part I – Financial Information
Item 1 – Financial Statements
 
UNITED COMMUNITY BANKS, INC.
           
Consolidated Statement of Income (Unaudited)
           
             
   
Three Months Ended
 
   
March 31,
 
(in thousands, except per share data)
 
2013
   
2012
 
Interest revenue:
           
Loans, including fees
  $ 50,934     $ 55,759  
Investment securities, including tax exempt of $212 and $250
    9,965       13,004  
Deposits in banks and short-term investments
    870       1,012  
Total interest revenue
    61,769       69,775  
Interest expense:
               
Deposits:
               
NOW
    454       637  
Money market
    562       641  
Savings
    36       37  
Time
    3,226       6,159  
Total deposit interest expense
    4,278       7,474  
Short-term borrowings
    516       1,045  
Federal Home Loan Bank advances
    19       466  
Long-term debt
    2,662       2,372  
Total interest expense
    7,475       11,357  
Net interest revenue
    54,294       58,418  
Provision for loan losses
    11,000       15,000  
Net interest revenue after provision for loan losses
    43,294       43,418  
Fee revenue:
               
Service charges and fees
    7,403       7,783  
Mortgage loan and other related fees
    2,655       2,099  
Brokerage fees
    767       813  
Securities gains, net
    116       557  
Loss from prepayment of debt
    -       (482 )
Other
    1,885       4,609  
Total fee revenue
    12,826       15,379  
Total revenue
    56,120       58,797  
Operating expenses:
               
Salaries and employee benefits
    23,592       25,225  
Communications and equipment
    3,046       3,155  
Occupancy
    3,367       3,771  
Advertising and public relations
    938       846  
Postage, printing and supplies
    863       979  
Professional fees
    2,366       1,975  
Foreclosed property
    2,333       3,825  
FDIC assessments and other regulatory charges
    2,505       2,510  
Amortization of intangibles
    705       732  
Other
    4,055       3,937  
Total operating expenses
    43,770       46,955  
Net income before income taxes
    12,350       11,842  
Income tax expense
    585       314  
Net income
    11,765       11,528  
Preferred stock dividends and discount accretion
    3,052       3,030  
Net income available to common shareholders
  $ 8,713     $ 8,498  
Earnings per common share - basic / diluted
  $ .15     $ .15  
Weighted average common shares outstanding - basic / diluted
    58,081       57,764  
 
See accompanying notes to consolidated financial statements.
 
 
3

 
UNITED COMMUNITY BANKS, INC.
Consolidated Statement of Comprehensive Income (Unaudited)
       
        Three Months Ended  
      March 31,  
(in thousands)
 
    2013       2012  
         
Tax
               
Tax
       
   
Before-tax
   
(Expense)
   
Net of Tax
   
Before-tax
   
(Expense)
   
Net of Tax
 
   
Amount
   
Benefit
   
Amount
   
Amount
   
Benefit
   
Amount
 
                                     
Net income
    12,350       (585 )     11,765     $ 11,842     $ (314 )   $ 11,528  
Other comprehensive income (loss):
                                               
Unrealized (losses) gains on available-for-sale securities:
                                               
Unrealized holding gains (losses) arising during period
    1,641       (621 )     1,020       (3,340 )     1,299       (2,041 )
Reclassification adjustment for gains included in net income
    (116 )     45       (71 )     (557 )     217       (340 )
Valuation allowance for the change in deferred taxes arising from unrealized gains and losses on available-for-sale securities
          576       576             (1,516 )     (1,516 )
Net unrealized gains (losses)
    1,525             1,525       (3,897 )           (3,897 )
Amortization of gains included in net income (loss) on available-for-sale securities transferred to held-to-maturity
    (319 )     124       (195 )     (413 )     160       (253 )
Valuation allowance for the change in deferred taxes arising from the amortization of gains included in net income (loss) on available-for-sale securities transferred to held-to-maturity
          (124 )     (124 )           (160 )     (160 )
Net unrealized losses
    (319 )           (319 )     (413 )           (413 )
Amortization of gains included in net income on terminated derivative financial instruments that were previously accounted for as cash flow hedges
    (538 )     209       (329 )     (1,600 )     622       (978 )
Unrealized losses on derivative financial instruments accounted for as cash flow hedges
    430       (167 )     263                    
Valuation allowance for the change in deferred taxes arising from unrealized gains and losses and amortization of gains included in net income on cash flow hedges
          (42 )     (42 )           (622 )     (622 )
Net unrealized losses
    (108 )           (108 )     (1,600 )           (1,600 )
Net actuarial loss on defined benefit pension plan
    (415 )     161       (254 )                  
Amortization of prior service cost and actuarial losses included in net periodic pension cost for defined benefit pension plan
    132       (51 )     81       154       (60 )     94  
Valuation allowance for the change in deferred taxes arising from reclassification of unamortized prior service cost and actuarial losses and amortization of prior service cost and actuarial losses
          (110 )     (110 )             60       60  
Net defined benefit pension plan activity
    (283 )           (283 )     154             154  
Total other comprehensive income (loss)
    815             815       (5,756 )           (5,756 )
Comprehensive income
    13,165       (585 )     12,580     $ 6,086     $ (314 )   $ 5,772  
 
See accompanying notes to consolidated financial statements.
 

 
4

 

UNITED COMMUNITY BANKS, INC.
                   
   
March 31,
   
December 31,
   
March 31,
 
(in thousands, except share and per share data)
 
 
2013
   
2012
   
2012
 
ASSETS
                 
Cash and due from banks
  $ 57,638     $ 66,536     $ 53,147  
Interest-bearing deposits in banks
    107,390       124,613       139,439  
Short-term investments
    82,000       60,000       235,000  
Cash and cash equivalents
    247,028       251,149       427,586  
Securities available-for-sale
    1,909,426       1,834,593       1,898,815  
Securities held-to-maturity (fair value $247,087, $261,131 and $318,490)
    231,087       244,184       303,636  
Mortgage loans held for sale
    18,290       28,821       24,809  
Loans, net of unearned income
    4,193,560       4,175,008       4,127,566  
Less allowance for loan losses
    (105,753 )     (107,137 )     (113,601 )
Loans, net
    4,087,807       4,067,871       4,013,965  
Assets covered by loss sharing agreements with the FDIC
    42,096       47,467       72,854  
Premises and equipment, net
    168,036       168,920       174,419  
Bank owned life insurance
    82,114       81,867       80,956  
Accrued interest receivable
    18,302       18,659       20,292  
Goodwill and other intangible assets
    4,805       5,510       7,695  
Foreclosed property
    16,734       18,264       31,887  
Unsettled securities sales
          5,763       43,527  
Other assets
    23,643       29,191       73,252  
Total assets
  $ 6,849,368     $ 6,802,259     $ 7,173,693  
LIABILITIES AND SHAREHOLDERS’ EQUITY
                       
Liabilities:
                       
Deposits:
                       
Demand
  $ 1,298,425     $ 1,252,605     $ 1,101,757  
NOW
    1,281,454       1,316,453       1,389,016  
Money market
    1,165,836       1,149,912       1,123,734  
Savings
    243,347       227,308       214,150  
Time:
                       
Less than $100,000
    1,019,396       1,055,271       1,207,479  
Greater than $100,000
    685,174       705,558       796,882  
Brokered
    332,220       245,033       167,521  
Total deposits
    6,025,852       5,952,140       6,000,539  
Short-term borrowings
    51,999       52,574       101,925  
Federal Home Loan Bank advances
    125       40,125       215,125  
Long-term debt
    124,825       124,805       120,245  
Unsettled securities purchases
                119,565  
Accrued expenses and other liabilities
    54,349       51,210       36,755  
Total liabilities
    6,257,150       6,220,854       6,594,154  
Commitments and contingencies
                       
                         
Shareholders’ equity:
                       
Preferred stock, $1 par value; 10,000,000 shares authorized;
                       
Series A; $10 stated value; 21,700 shares issued and outstanding
    217       217       217  
Series B; $1,000 stated value; 180,000 shares issued and outstanding
    178,937       178,557       177,451  
Series D; $1,000 stated value; 16,613 shares issued and outstanding
    16,613       16,613       16,613  
Common stock, $1 par value; 100,000,000 shares authorized;
                       
43,063,761, 42,423,870 and 41,688,647 shares issued and outstanding
    43,064       42,424       41,689  
Common stock, non-voting, $1 par value; 30,000,000 shares authorized;
                       
14,703,636, 15,316,794 and 15,914,209 shares issued and outstanding
    14,704       15,317       15,914  
Common stock issuable; 133,469, 133,238 and 90,126 shares
    2,726       3,119       2,948  
Capital surplus
    1,059,222       1,057,951       1,056,135  
Accumulated deficit
    (700,440 )     (709,153 )     (722,363 )
Accumulated other comprehensive loss
    (22,825 )     (23,640 )     (9,065 )
Total shareholders’ equity
    592,218       581,405       579,539  
Total liabilities and shareholders’ equity
  $ 6,849,368     $ 6,802,259     $ 7,173,693  
 
See accompanying notes to consolidated financial statements.
 
 
5

 
 
UNITED COMMUNITY BANKS, INC.
For the Three Months Ended March 31,  

 
        Preferred Stock          
Non-Voting
   
Common
               
Accumulated
Other
       
(in thousands, except share
 
Series
   
Series
   
Series
   
Common
   
Common
   
Stock
   
Capital
   
Accumulated
   
Comprehensive
       
and per share data)
    A       B       D    
Stock
   
Stock
   
Issuable
   
Surplus
   
Deficit
   
Loss
   
Total
 
Balance, December 31, 2011
  $ 217     $ 177,092     $ 16,613     $ 41,647     $ 15,914     $ 3,233     $ 1,054,940     $ (730,861 )   $ (3,309 )   $ 575,486  
Net income
                                                            11,528               11,528  
Other comprehensive loss
                                                                    (5,756 )     (5,756 )
Common stock issued to
                                                                               
dividend reinvestment plan
                                                                               
and employee benefit plans
                                                                               
(35,648 shares)
                            36                       242                       278  
Amortization of stock options
                                                                               
and restricted stock awards
                                                    585                       585  
Vesting of restricted stock
                                                                               
(4,397 shares issued,
                                                                               
8,399 shares deferred)
                            4               (151 )     187                       40  
Deferred compensation plan,
                                                                               
net, including dividend
                                                                               
equivalents
                                            49                               49  
Shares issued from deferred
                                                                               
compensation plan
                                                                               
(1,502 shares)
                            2               (183 )     181                        
Preferred stock dividends:
                                                                               
Series A
                                                            (3 )             (3 )
Series B
            359                                               (2,608 )             (2,249 )
Series D
                                                            (419 )             (419 )
Balance, March 31, 2012
  $ 217     $ 177,451     $ 16,613     $ 41,689     $ 15,914     $ 2,948     $ 1,056,135     $ (722,363 )   $ (9,065 )   $ 579,539  
Balance, December 31, 2012
  $ 217     $ 178,557     $ 16,613     $ 42,424     $ 15,317     $ 3,119     $ 1,057,951     $ (709,153 )   $ (23,640 )   $ 581,405  
Net income
                                                            11,765               11,765  
Other comprehensive income
                                                                    815       815  
Common stock issued to
                                                                               
dividend reinvestment
                                                                               
plan and to employee
                                                                               
benefit plans (18,170
                                                                               
shares)
                            18                       171                       189  
Conversion of non-voting
                                                                               
common stock to voting
                                                                               
(613,158 shares)
                            613       (613 )                                      
Amortization of stock options
                                                                               
and restricted stock awards
                                                    626                       626  
Vesting of restricted stock,
                                                                               
net of shares surrendered
                                                                               
to cover payroll taxes
                                                                               
(4,042 shares issued,
                                                                               
259 shares deferred)
                            4                       40                       44  
Deferred compensation plan,
                                                                               
net, including dividend
                                                                               
equivalents
                                            46                               46  
Shares issued from deferred
                                                                               
compensation plan
                                                                               
(4,521 shares)
                            5               (439 )     434                        
Preferred stock dividends:
                                                                               
Series A
                                                            (3 )             (3 )
Series B
            380                                               (2,630 )             (2,250 )
Series D
                                                            (419 )             (419 )
Balance, March 31, 2013
  $ 217     $ 178,937     $ 16,613     $ 43,064     $ 14,704     $ 2,726     $ 1,059,222     $ (700,440 )   $ (22,825 )   $ 592,218  
 
See accompanying notes to consolidated financial statements.
 
 
6

 
 
UNITED COMMUNITY BANKS, INC.

 
   
Three Months Ended
 
   
March 31,
 
(in thousands)
   
2013
   
2012
 
Operating activities:
           
Net income
  $ 11,765     $ 11,528  
Adjustments to reconcile net income to net cash provided by operating activities:
               
Depreciation, amortization and accretion
    7,505       6,803  
Provision for loan losses
    11,000       15,000  
Stock based compensation
    626       585  
Securities gains, net
    (116 )     (557 )
Losses and write downs on sales of other real estate owned
    1,146       2,204  
Loss on prepayment of borrowings
          482  
Changes in assets and liabilities:
               
Other assets and accrued interest receivable
    7,915       (2,612 )
Accrued expenses and other liabilities
    3,225       646  
Mortgage loans held for sale
    10,531       (928 )
Net cash provided by operating activities
    53,597       33,151  
Investing activities:
               
Investment securities held-to-maturity:
               
Proceeds from maturities and calls
    17,501       25,653  
Purchases
    (4,993 )      
Investment securities available-for-sale:
               
Proceeds from sales
    15,751       61,585  
Proceeds from maturities and calls
    132,211       142,236  
Purchases
    (219,349 )     (253,229 )
Net increase in loans
    (36,224 )     (41,418 )
Funds collected from FDIC under loss sharing agreements
    2,452       2,568  
Proceeds from sales of premises and equipment
    550       14  
Purchases of premises and equipment
    (2,001 )     (1,614 )
Proceeds from sale of other real estate
    5,726       6,696  
Net cash used in investing activities
    (88,376 )     (57,509 )
Financing activities:
               
Net change in deposits
    73,712       (97,444 )
Net change in short-term borrowings
    (575 )     (652 )
Proceeds from Federal Home Loan Bank advances
    185,000       499,000  
Settlement of Federal Home Loan Bank advances
    (225,000 )     (324,982 )
Proceeds from issuance of common stock for dividend reinvestment and employee benefit plans
    189       278  
Cash dividends on preferred stock
    (2,668 )     (2,672 )
Net cash provided by financing activities
    30,658       73,528  
Net change in cash and cash equivalents
    (4,121 )     49,170  
Cash and cash equivalents at beginning of period
    251,149       378,416  
Cash and cash equivalents at end of period
  $ 247,028     $ 427,586  
Supplemental disclosures of cash flow information:
               
Cash paid during the period for:
               
Interest
  $ 8,025     $ 12,252  
Income taxes
    1,659       1,026  
Unsettled securities sales
          43,527  
Unsettled securities purchases
          119,565  
Transfers of loans to foreclosed property
    6,288       9,534  
 
See accompanying notes to consolidated financial statements.  
 
 
7

 
 
UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
 
Note 1 – Accounting Policies
 
The accounting and financial reporting policies of United Community Banks, Inc. (“United”) and its subsidiaries conform to accounting principles generally accepted in the United States of America (“GAAP”) and general banking industry practices.  The accompanying interim consolidated financial statements have not been audited.  All material intercompany balances and transactions have been eliminated.  A more detailed description of United’s accounting policies is included in its Annual Report on Form 10-K for the year ended December 31, 2012.
 
In management’s opinion, all accounting adjustments necessary to accurately reflect the financial position and results of operations on the accompanying financial statements have been made. These adjustments are normal and recurring accruals considered necessary for a fair and accurate presentation. The results for interim periods are not necessarily indicative of results for the full year or any other interim periods.
 
Foreclosed property is initially recorded at fair value, less the estimated cost to sell.  If the fair value less the estimated cost to sell at the time of foreclosure is less than the loan balance, the deficiency is charged against the allowance for loan losses.  If the fair value less the estimated cost to sell of the foreclosed property decreases during the holding period, a valuation allowance is established with a charge to operating expenses.  When the foreclosed property is sold, a gain or loss is recognized on the sale for the difference between the sales proceeds and the carrying amount of the property.  Financed sales of foreclosed property are accounted for in accordance with the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) 360-20, Real Estate Sales.
 
Certain 2012 amounts have been reclassified to conform to the 2013 presentation.  The 2012 reclassifications were not material to the financial statement presentation.
 
Note 2 –Accounting Standards Updates and Recently Adopted Standards
 
In January 2013, the FASB issued Accounting Standards Update No. 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.   This ASU limits the scope of the new balance sheet offsetting disclosures to derivatives, repurchase agreements, and securities lending transactions to the extent that they are (1) offset in the financial statements or (2) subject to an enforceable master netting agreement.  The disclosure requirements were effective for annual reporting periods beginning on or after January 1, 2013 and interim periods within those annual periods.  It did not have a material impact on United’s financial position or results of operations, and resulted in additional disclosures.
 
In February 2013, the FASB issued Accounting Standards Update No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income .  The amendments in this update require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component and by the respective line items of net income. The standard was effective for fiscal years, and interim periods within those years, beginning after December 15, 2012.  This guidance did not have a material impact on United’s financial position or results of operations, and resulted in additional disclosures.
 
There were no Accounting Standards Updates issued by the FASB since the filing of United’s 2012 Annual Report on Form 10-K that were applicable to United.
 
Note 3 – Offsetting Assets and Liabilities
 
United enters into reverse repurchase agreements in order to invest short-term funds.  In addition, United enters into repurchase agreements and reverse repurchase agreements with the same counterparty in transactions commonly referred to as collateral swaps that are subject to master netting agreements under which the balances are netted in the balance sheet in accordance with ASC 210-20, Offsetting .
 
United also enters into derivative transactions that are subject to master netting arrangements; however there were no offsetting positions at March 31, 2013, December 31, 2012 or March 31, 2012.
 
 
8

 
 
UNITED COMMUNITY BANKS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
 
The following table presents a summary of amounts outstanding under master netting agreements as of March 31, 2013 and December 31, 2012, and March 31, 2012 (in thousands) .
 
         
Gross
                         
   
Gross
   
Amounts
       
Gross Amounts not Offset
       
   
Amounts of
   
Offset on the
         
in the Balance Sheet
       
   
Recognized
   
Balance
   
Net Asset
   
Financial
   
Collateral
       
March 31, 2013
 
Assets
   
Sheet
   
Balance
   
Instruments
   
Received
   
Net Amount
 
                                     
Repurchase agreements / reverse repurchase agreements
  $ 332,000     $ (250,000 )   $ 82,000     $     $     $ 82,000  
Derivatives
    602             602                   602  
Total
  $ 332,602     $ (250,000 )   $ 82,602     $     $     $ 82,602  
Weighted average interest rate of reverse repurchase agreements
    1.28 %                                        
                                               
           
Gross
                                 
   
Gross
   
Amounts
            Gross Amounts not Offset          
   
Amounts of
   
Offset on the
   
Net
   
in the Balance Sheet
         
   
Recognized
   
Balance
   
Liability
   
Financial
   
Collateral
         
   
Liabilities
   
Sheet
   
Balance
   
Instruments
   
Pledged
   
Net Amount
 
                                                 
Repurchase agreements / reverse repurchase agreements
  $ 250,000     $ (250,000 )   $     $     $     $  
Derivatives
    14,556             14,556             14,585        
Total
  $ 264,556     $ (250,000 )   $ 14,556     $     $ 14,585     $  
Weighted average interest rate of repurchase agreements
    .37 %                                        
                                               
           
Gross
                                 
   
Gross
   
Amounts
            Gross Amounts not Offset          
   
Amounts of
   
Offset on the
           
in the Balance Sheet
         
   
Recognized
   
Balance
   
Net Asset
   
Financial
   
Collateral
         
December 31, 2012
 
Assets
   
Sheet
   
Balance
   
Instruments
   
Received
   
Net Amount
 
                                                 
Repurchase agreements / reverse repurchase agreements
  $ 325,000     $ (265,000 )   $ 60,000     $     $     $ 60,000  
Securities lending transactions
    50,000       (50,000 )                        
Derivatives
    658             658                   658  
Total
  $ 375,658     $ (315,000 )   $ 60,658     $     $     $ 60,658  
Weighted average interest rate of reverse repurchase agreements
    1.18 %                                        
                                               
           
Gross
                                 
   
Gross
   
Amounts
            Gross Amounts not Offset          
   
Amounts of
   
Offset on the
   
Net
   
in the Balance Sheet
         
   
Recognized
   
Balance
   
Liability
   
Financial
   
Collateral
         
   
Liabilities
   
Sheet
   
Balance
   
Instruments
   
Pledged
   
Net Amount
 
                                                 
Repurchase agreements / reverse repurchase agreements
  $ 265,000     $ (265,000 )   $     $     $     $  
Securities lending transactions
    50,000       (50,000 )                        
Derivatives
    1