Jaggesh pips Tara to council

While the party was unanimous about RSS member P V Krishna Bhatta's candidature to the legislative council, differences erupted in the BJP when actor and former MLA Jaggesh's name was proposed.

This increase principally stemmed from higher losses on otherreal estate owned, up $12.7 million linked-quarter, from reappraisals and apolicy change to write properties down to 70% of appraised value and higherlosses on nonmortgage loans held for sale, up $7.6 million linked-quarter,largely from a $5.5 million loss on the write down and transfer of one loan toOREO. Credit-related noninterest expenses, which includedloan collection and foreclosed asset expenses, losses on nonmortgage loans heldfor sale, and losses on other real estate owned, increased $22.7 millionlinked-quarter. This compares with a $3.0million net loss on securities for first quarter 2009. Noninterest ExpensesOperating noninterest expenses (which exclude the non-operating items mentionedbelow) totaled $112.8 million for second quarter 2009, a $23.1 millionlinked-quarter increase from $89.6 million for first quarter 2009, due to highercredit-related expenses. Total noninterest income, including non-operating items, was $32.3 million forsecond quarter 2009, compared with $23.7 million for first quarter 2009.Non-operating noninterest income for second quarter 2009 included a $4.6 millionnet gain on securities, which includes $805,000 of other than temporaryimpairment on community bank related investments.

Linked-quarter, second quarter 2009 noninterestincome benefited from recent mortgage leadership changes, which led to strongermortgage banking income, up $845,000, from higher mortgage loan originations (up68% linked-quarter). In addition, customer fee income, debit card income, andmerchant processing income increased, while wealth management income seasonallydeclined. Second quarter 2009 period-end wholesale borrowings,including brokered deposits and excluding customer sweep accounts, declined$534.9 million in connection with the sale of non-core loans and securities. Noninterest IncomeSecond quarter 2009 operating noninterest income (which excludes thenon-operating items mentioned below) totaled $27.7 million, up $997,000 or 3.7%,from the first quarter 2009. Second quarter 2009 period-end customer funding(defined as total deposits less brokered deposits plus customer sweep accounts)decreased $108.0 million, principally due to declines of $154.2 million incertificates of deposits.

Based on period-end balances, second quarter 2009 core deposits(noninterest-bearing, interest checking, money market, and savings) increased$102.6 million, or 2.4%. government agency securities with abook value of approximately $120 million (and a 3.6% yield) for a gain of $5.4million. In connection with this sale, TSFG also terminated $75 million (4.3%rate) in long-term repurchase agreements collateralized by those securities andrecognized a loss on extinguishment of $5.4 million in second quarter 2009. Second quarter 2009 average securities declined $193.9 million, or 9.1% linkedquarter, to $1.9 billion TSFG sold U.S. Going forward, TSFG plans to focuson growing core loans while decreasing its non-core loans.

The decline innon-core loans was accelerated in the quarter due to the sale in June ofapproximately $230 million of indirect auto loans for a net gain of $501,000.Additionally, TSFG liquidated or moved to held for sale approximately $90million of shared national credits for a loss of $4.4 million (includingapproximately $25 million associated with transactions that closed in July). Second quarter 2009 average loans decreased $313.1 million, or 3.1%linked-quarter, to $9.9 billion, and period-end loans held for investmentdecreased $680.7 million. For internal management purposes, TSFG segregates itsloan portfolio into core ($7.4 billion at period end) and non-core ($1.9 billionat period end) loans, principally based on its ability to build a bankingrelationship. During second quarter 2009, core loans declined $145.9 million, or1.9% linked-quarter, while non-core loans declined $534.8 million, or 21.8%linked-quarter ($765 million year-to-date). The net interestmargin increased as higher rate certificates of deposit, both customer andbrokered, repriced downward upon renewal reflecting lower market rates andpricing discipline to drive overall funding costs down by 15 basis pointslinked-quarter. The tax-equivalent net interest margin for second quarter 2009 increased to2.96%, up 13 basis points from 2.83% for first quarter 2009.