Susquehanna Bancshares, Inc. Announces 2007 Full Year and Fourth Quarter Results

Susquehanna Bancshares, Inc. (Susquehanna) (Nasdaq:SUSQ) today announced net income for the year ended December 31, 2007 was $69.1 million, or $1.23 per diluted share, compared to $83.6 million, or $1.66 per diluted share, earned in 2006. Net income for the fourth quarter of 2007 was $18.7 million, or $0.27 per diluted share, compared to $21.4 million for the fourth quarter of 2006, or $0.41 per diluted share. Fourth quarter 2007 net income includes $13.1 million of pre-tax charges ($0.13 per diluted share) related to the November 2007 acquisition of Community Banks, Inc. This reflects the previously disclosed $11.1 million provision for allowance for loan and lease losses representing the impact of applying Susquehanna’s loan and lease reserve assessment process to the Community Banks’ loan portfolio and $2.0 million of severance and branch closure charges. Full Year/Fourth Quarter Financial Highlights: -- Net loans and leases, excluding securitizations and the November 16, 2007 acquisition of Community Banks, grew 15% from December 31, 2006. -- Commercial loans, excluding Community Banks, increased 38% from December 31, 2006. -- Residential real estate secured loans, excluding Community Banks, increased 11% from December 31, 2006. -- Commercial real estate secured loans, excluding Community Banks, increased 9% from December 31, 2006.   -- Total deposits, excluding Community Banks, grew 2% from December 31, 2006. -- Non-interest bearing demand deposits, excluding Community Banks, declined 5% from December 31, 2006.   -- Net interest margin for the year decreased 10 basis points to 3.67% compared to 3.77% for 2006. For the fourth quarter 2007, net interest margin increased 2 basis points to 3.69% compared to 3.67% for the fourth quarter of 2006.   -- Net charge-offs as a percentage of average loans and leases for the year ended December 31, 2007 were 0.25% compared to 0.10% for 2006. The charge-off ratio for 2007 is within the historic norm of 15 to 25 basis points. Non-performing assets as a percentage of loans, leases and other real estate owned were 0.81% for the year ended December 31, 2007 compared to 0.67% for 2006.   -- Wealth management fee income for the year ended December 31, 2007 increased 11% to $32.1 million from $28.9 million during 2006. Wealth management fee income for the fourth quarter 2007 increased 18% to $8.6 million from $7.3 million during the fourth quarter 2006.   -- Wealth management assets under management and administration increased 18% to $6.0 billion at December 31, 2007 from $5.1 billion at December 31, 2006. Linked Quarter Highlights (Fourth Quarter 2007 vs. Third Quarter 2007) -- Net loans and leases, excluding securitizations and Community Banks, grew 5% from September 30, 2007. -- Commercial loans, excluding Community Banks, increased 14% from September 30, 2007. -- Commercial real estate secured loans, excluding Community Banks, increased 6% from September 30, 2007.   -- Total deposits, excluding Community Banks, grew 1% from September 30, 2007. -- Non-interest bearing deposits, excluding Community Banks, grew 3% from September 30, 2007.   -- Net interest margin increased 5 basis points to 3.69% from 3.64% in the third quarter of 2007.   -- Wealth management fee income for the fourth quarter 2007 increased 6% to $8.6 million from $8.1 million during the third quarter 2007.   -- Wealth management assets under management and administration increased 5% to $6.0 billion at December 31, 2007 from $5.7 billion at September 30, 2007. Equity capital was $1.7 billion at December 31, 2007, or $20.12 per share, compared to $936 million, or $17.98 per share, at December 31, 2006. Return on average assets and average tangible equity(1) for the year ended December 31, 2007 were 0.78% and 11.56%, respectively. This compared to results of 1.05% and 15.42%, for the same measurements respectively for 2006. Return on average assets and average tangible equity(1) for the fourth quarter of 2007 were 0.69% and 10.94%, respectively. This compared to 1.05% and 14.96% for the fourth quarter of 2006. On December 12, 2007, the company issued Susquehanna Capital I retail hybrid trust preferred securities in the amount of $125.0 million. The securities bear interest at an annual rate of 9.375% with a call provision at the end of year five. Net proceeds from the issue were used to replenish the cash reserves used to pay for the cash portion of the consideration paid in the acquisition of Community Banks and for general corporate purposes. (1)A non-GAAP-based financial measure. The most comparable GAAP-based measurement for return on average tangible equity is return on average equity. A reconciliation of the differences between non-GAAP-based and GAAP-based measurements can be found at the end of this release under the heading "Supplemental Reporting of Non-GAAP-Based Financial Measures." Additional Activity: -- On November 16, 2007, Susquehanna completed the largest merger in its history by acquiring Community Banks, Inc., which had approximately $3.8 billion in assets and 80 branches in central Pennsylvania and Maryland. With the acquisition, Susquehanna now operates more than 230 branches in Pennsylvania, New Jersey, Maryland and West Virginia.   -- During the fourth quarter of 2007, Susquehanna's affiliate banks opened new branches in Wayne, Pennsylvania and Hanover, Pennsylvania and also relocated the Pasadena, Maryland branch to a new facility.   -- On January 2, 2008, Susquehanna announced an agreement to acquire Stratton Holding Company, an investment management firm with approximately $3 billion in assets under management. Pending regulatory and other approvals, the acquisition is expected to be completed early in the second quarter of 2008. Stratton will become a wholly-owned subsidiary of Susquehanna as part of the company's wealth management operations. The acquisition will enhance Susquehanna's spectrum of investment options by adding expertise in small-cap and mid-cap stocks, as well as increase total assets under management and administration to approximately $9 billion. "A highlight of our fourth quarter was the successful completion of the acquisition of Community Banks, Inc., and the addition of its customers, employees and shareholders to our company," said William J. Reuter, Susquehanna's Chairman, President and Chief Executive Officer. "We were able to complete the operational integration during merger weekend in mid-November, which we expect to yield greater efficiencies going forward. We already saw an improvement in our efficiency ratio in fourth-quarter 2007. "We are also pleased to report an improvement in net interest margin for the fourth quarter. At 3.69%, net interest margin was up two basis points from the same quarter in 2006, and up five basis points from third-quarter 2007," Reuter continued. Susquehanna will broadcast its fourth quarter and full year 2007 results conference call over the Internet on January 23, 2008 at 11:00 a.m. Eastern time. The conference call will include management’s discussion of fourth quarter and full year 2007 results. The discussion may also include forward-looking information and financial goals. Investors will have the opportunity to listen to the conference call through a live broadcast on Susquehanna’s Web site. The event may be accessed by selecting "Investor Relations" near the top right of the home page then "Overview” and clicking on the fourth quarter and full year webcast link. To listen to the live call, please go to the Web site at least fifteen minutes prior to the scheduled start time to download and install any necessary audio software. For those who are unable to listen to the live broadcast, an archived replay and podcast will be available on the Web site shortly after the call concludes. Susquehanna Bancshares, Inc. is a financial services holding company with assets of approximately $13 billion. Headquartered in Lititz, Pa., the company provides financial services through its three commercial banks at more than 230 branch locations and 250 ATM locations in the mid-Atlantic region. Through Susquehanna Wealth Management, the company offers investment, fiduciary, brokerage, insurance, retirement planning, and private banking services, with approximately $6 billion in assets under management and administration. Susquehanna also operates an insurance brokerage and employee benefits company, a commercial finance company and a vehicle leasing company. Investor information may be requested on Susquehanna’s Web site at www.susquehanna.net. This press release contains certain financial information determined by methods other than in accordance with GAAP. Susquehanna’s management uses these non-GAAP measures in its analysis of the company’s performance. These non-GAAP financial measures require management to make judgments about the exclusion of certain items, and if different judgments were made, the amounts reported would be different. These measures typically exclude the effects of intangibles and related amortization and include the tax benefit associated with revenue items that are tax-exempt. Disclosures regarding these non-GAAP financial measures are included in the accompanying financial information. The presentation of these non-GAAP financial measures is intended to supplement investors’ understanding of Susquehanna’s core business activities. These non-GAAP 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 which may be presented by other companies. This press release contains "forward-looking" statements as defined in the Private Securities Litigation Reform Act of 1995, including statements regarding the efficiencies of the Community Banks, Inc. acquisition, that are based on Susquehanna’s current expectations, estimates and projections about future events and financial trends affecting the financial condition of its business. These statements are not historical facts or guarantees of future performance, events or results. Such statements involve potential risks and uncertainties. Accordingly, actual results may differ materially. Susquehanna undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Susquehanna Bancshares, Inc. P.O. Box 1000 Lititz, PA 17543   SUMMARY FINANCIAL INFORMATION(Dollars in thousands, except per share data)       Twelve Months 4Q07 4Q06 2007   2006 Balance Sheet (EOP) Investments $2,063,952 $1,403,566 $2,063,952 $1,403,566 Loans and leases 8,751,590 5,560,997 8,751,590 5,560,997 Allowance for loan & lease losses (ALLL) 88,569 62,643 88,569 62,643 Total assets 13,077,994 8,225,134 13,077,994 8,225,134 Deposits 8,945,119 5,877,589 8,945,119 5,877,589 Short-term borrowings 568,412 401,964 568,412 401,964 FHLB borrowings 1,145,759 528,688 1,145,759 528,688 Long-term debt 416,985 222,280 416,985 222,280 Shareholders' equity 1,729,014 936,286 1,729,014 936,286   Stated Book Value per Share 20.12 17.98 20.12 17.98 Tangible Book Value per Share 8.44 11.18 8.44 11.18   Average Balance Sheet Investments 1,807,132 1,350,590 1,554,950 1,282,021 Loans and leases 7,222,442 5,529,081 5,979,878 5,517,812 Total earning assets 9,144,165 6,980,477 7,632,411 6,881,772 Total assets 10,733,204 8,104,511 8,904,728 7,949,820 Deposits 7,337,855 5,880,403 6,309,502 5,697,592 Short-term borrowings 523,764 325,376 423,827 324,326 FHLB borrowings 1,013,255 497,375 653,605 615,841 Long-term debt 284,784 222,369 237,910 207,765 Shareholders' equity 1,324,122 931,733 1,038,187 874,756   Income Statement Net interest income 83,344 63,792 275,903 256,770 Provision for loan and lease losses 15,497 2,488 21,844 8,680 Noninterest income 36,938 35,303 120,659 136,313 Noninterest expense 78,703 66,631 276,955 262,836 Income before taxes 26,082 29,976 97,763 121,567 Income taxes 7,427 8,620 28,670 37,929 Net income 18,655 21,356 69,093 83,638 Basic earnings per share 0.27 0.41 1.23 1.66 Diluted earnings per share 0.27 0.41 1.23 1.66 Cash dividends paid per share 0.26 0.25 1.01 0.97   Asset Quality Net charge-offs (NCO) $4,734 $988 $15,037 $5,265 Nonaccrual loans & leases 56,742 30,325 56,742 30,325 Restructured loans 2,582 5,376 2,582 5,376 OREO 11,927 1,544 11,927 1,544 Total nonperforming assets (NPA) 71,251 37,245 71,251 37,245 Loans & leases 90 days past due 12,199 9,364 12,199 9,364 Susquehanna Bancshares, Inc. P.O. Box 1000 Lititz, PA 17543         RATIO ANALYSIS 4Q07 4Q06 2007 2006   Credit Quality NCO / Average loans & leases 0.26 % 0.07 % 0.25 % 0.10 % NPA / Loans & leases & OREO 0.81 % 0.67 % 0.81 % 0.67 % ALLL / Nonperforming loans & leases 149.30 % 175.47 % 149.30 % 175.47 % ALLL / Total loans & leases 1.01 % 1.13 % 1.01 % 1.13 %   Capital Adequacy Equity / Assets 13.22 % 11.38 % 13.22 % 11.38 % Long-term debt / Equity 24.12 % 23.74 % 24.12 % 23.74 %   Profitability Return on average assets 0.69 % 1.05 % 0.78 % 1.05 % Return on average equity 5.59 % 9.09 % 6.66 % 9.56 % Return on average tangible equity (1) 10.94 % 14.96 % 11.56 % 15.42 % Net interest margin 3.69 % 3.67 % 3.67 % 3.77 % Efficiency ratio 64.46 % 66.77 % 69.10 % 66.43 % Efficiency ratio excluding Hann (1) 62.02 % 61.16 % 66.72 % 61.04 %   (1)Supplemental Reporting of Non-GAAP-based Financial Measures   Return on average tangible equity is a non-GAAP-based financial measure calculated using non-GAAP-based amounts. The most directly comparable measure is return on average equity which is calculated using GAAP-based amounts. We calculate return on average tangible equity by excluding the balance of intangible assets and their related amortization expense from our calculation of return on average equity. Management uses the return on average tangible equity in order to review our core operating results. Management believes that this is a better measure of our performance. In addition, this is consistent with the treatment by bank regulatory agencies, which excludes goodwill and other intangible assets from the calculation of risk-based capital ratios. A reconciliation of return on average equity to return on average tangible equity is set forth below.   Return on average equity (GAAP basis) 5.59 % 9.09 % 6.66 % 9.56 % Effect of excluding average intangible assets and related amortization 5.35 % 5.87 % 4.90 % 5.86 % Return on average tangible equity 10.94 % 14.96 % 11.56 % 15.42 %   Efficiency ratio excluding Hann is a non-GAAP-based financial measure calculated using non-GAAP-based amounts. The most directly comparable measure is efficiency ratio which is calculated using GAAP-based amounts. We measure our efficiency ratio by dividing noninterest expenses by the sum of net interest income, on a FTE basis, and noninterest income. The presentation of an efficiency ratio excluding Hann is computed as the efficiency ratio excluding the effect of our auto leasing subsidiary, Hann. Management believes this to be a preferred measure because it excludes the volatility of vehicle residual values and vehicle delivery and preparation expense of Hann and provides better visibility into our core business activities. A reconciliation of efficiency ratio to efficiency ratio excluding Hann is set forth below.   Efficiency ratio (GAAP basis) 64.46 % 66.77 % 69.10 % 66.43 % Effect of excluding Hann 2.44 % 5.61 % 2.38 % 5.39 % Efficiency ratio excluding Hann 62.02 % 61.16 % 66.72 % 61.04 % Susquehanna Bancshares, Inc. P.O. Box 1000 Lititz, PA 17543   CONSOLIDATED BALANCE SHEETS             December 312007 December 31,2006 (unaudited)   (in thousands, except share data) Assets Cash and due from banks $326,965 $194,785 Unrestricted short-term investments 143,042   70,996   Cash and cash equivalents 470,007 265,781 Restricted short-term investments 242 33,533 Securities available for sale 2,059,160 1,397,420 Securities held to maturity (fair values approximate $4,792 and $6,146) 4,792 6,146 Loans and leases, net of unearned income 8,751,590 5,560,997 Less: Allowance for loan and lease losses 88,569   62,643   Net loans and leases 8,663,021   5,498,354   Premises and equipment, net 179,740 106,305 Foreclosed assets 11,927 1,544 Accrued income receivable 46,765 31,044 Bank-owned life insurance 344,578 264,398 Goodwill 945,081 335,005 Intangible assets with finite lives 58,274 19,092 Investment in and receivables from unconsolidated entities 123,586 121,663 Other assets 170,821   144,849   Total assets $13,077,994   $8,225,134     Liabilities and Shareholders' Equity Deposits: Noninterest-bearing $1,292,791 $959,654 Interest-bearing 7,652,328   4,917,935   Total deposits 8,945,119 5,877,589 Short-term borrowings 568,412 401,964 Federal Home Loan Bank borrowings 1,145,759 528,688 Long-term debt 150,303 150,036 Junior subordinated debentures 266,682 72,244 Accrued interest, taxes, and expenses payable 60,869 54,800 Deferred taxes 136,076 145,825 Other liabilities 75,760   57,702   Total liabilities 11,348,980   7,288,848     Shareholders' equity: Common stock, $2.00 par value, 200,000,000 shares authorized; Issued: 85,935,315 at December 31, 2007 and 52,080,419 at December 31, 2006 171,810 104,161 Additional paid-in capital 1,038,894 345,840 Retained earnings 522,268 505,861 Accumulated other comprehensive loss, net of taxes of $(2,131) and ($10,541) (3,958 ) (19,576 ) Total shareholders' equity 1,729,014   936,286   Total liabilities and shareholders' equity $13,077,994   $8,225,134   Susquehanna Bancshares, Inc. P.O. Box 1000 Lititz, PA 17543         CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)   Three Months Ended Twelve Months Ended December 31, December 31, (In thousands, except per share data) 2007 2006 2007 2006 Interest Income: Loans and leases, including fees $131,864 $103,730 $444,690 $404,814 Securities: Taxable 20,632 13,655 69,265 49,810 Tax-exempt 1,609 291 2,848 845 Dividends 1,406 952 4,572 3,653 Short-term investments 1,372   1,118   4,782   3,669   Total interest income 156,883   119,746   526,157   462,791     Interest Expense: Deposits: Interest-bearing demand 13,590 14,784 61,572 51,424 Savings 1,356 1,466 4,278 4,960 Time 37,859 27,900 124,673 99,195 Short-term borrowings 4,658 3,540 17,464 13,495 FHLB borrowings 11,364 4,965 27,600 24,788 Long-term debt 4,712   3,299   14,667   12,159   Total interest expense 73,539   55,954   250,254   206,021   Net interest income 83,344 63,792 275,903 256,770 Provision for loan and lease losses 15,497   2,488   21,844   8,680   Net interest income, after provision for loan and lease losses 67,847   61,304   254,059   248,090     Noninterest Income: Service charges on deposit accounts 10,378 7,188 31,413 26,446 Vehicle origination, servicing, and securitization fees 2,759 4,159 14,323 18,524 Asset management fees 5,205 4,668 19,843 18,439 Income from fiduciary-related activities 2,542 1,592 7,479 6,160 Commissions on brokerage, life insurance and annuity sales 850 1,079 4,767 4,350 Commissions on property and casualty insurance sales 3,163 3,119 12,751 12,660 Income from bank-owned life insurance 3,341 2,665 11,405 10,000 Net gain on sale of loans and leases 1,605 2,414 8,427 16,816 Net gain on sale of bank branches 0 4,189 0 4,189 Net realized loss on securities (116 ) (955 ) (11,857 ) (949 ) Other 7,211   5,185   22,108   19,678   Total noninterest income 36,938   35,303   120,659   136,313     Noninterest Expenses: Salaries and employee benefits 39,873 32,795 144,508 128,465 Occupancy 6,928 5,243 24,371 20,905 Furniture and equipment 3,463 2,820 12,181 10,948 Advertising and marketing 3,351 3,350 10,216 9,627 Amortization of intangible assets 1,628 630 3,525 2,231 Vehicle lease disposal 3,390 3,376 12,651 14,220 Other 20,070   18,417   69,503   76,440   Total noninterest expenses 78,703   66,631   276,955   262,836   Income before income taxes 26,082 29,976 97,763 121,567 Provision for income taxes 7,427   8,620   28,670   37,929   Net Income $18,655   $21,356   $69,093   $83,638     Earnings per share: Basic $0.27 $0.41 $1.23 $1.66 Diluted $0.27 $0.41 $1.23 $1.66 Cash dividends paid $0.26 $0.25 $1.01 $0.97 Average shares outstanding: Basic 68,656 51,914 56,297 50,340 Diluted 68,695 52,053 56,366 50,507 Susquehanna Bancshares, Inc. P.O. Box 1000 Lititz, PA 17543   DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY   Interest rates and interest differential-taxable equivalent basis     For the Three-month Period Ended   For the Three-month Period Ended December 31, 2007 December 31, 2006 Average     Average     (Dollars in thousands) Balance   Interest   Rate (%) Balance   Interest   Rate (%) Assets Short-term investments $114,591 $1,372 4.75 $100,806 $1,118 4.40 Investment securities: Taxable 1,651,494 22,038 5.29 1,323,150 14,606 4.38 Tax-advantaged 155,638   2,475 6.31 27,440   448 6.48   Total investment securities 1,807,132   24,513 5.38 1,350,590   15,054 4.42 Loans and leases, (net): Taxable 7,079,534 130,104 7.29 5,442,374 102,715 7.49 Tax-advantaged 142,908   2,709 7.52 86,707   1,563 7.15   Total loans and leases 7,222,442   132,813 7.30 5,529,081   104,278 7.48   Total interest-earning assets 9,144,165 $158,698 6.89 6,980,477 $120,450 6.85 Allowance for loan and lease losses (72,619 ) (62,190 ) Other non-earning assets 1,661,658   1,186,224     Total assets $10,733,204   $8,104,511     Liabilities Deposits: Interest-bearing demand $2,385,351 $13,590 2.26 $1,946,816 $14,784 3.01 Savings 559,682 1,356 0.96 489,035 1,466 1.19 Time 3,346,362 37,859 4.49 2,488,896 27,900 4.45 Short-term borrowings 523,764 4,658 3.53 325,376 3,540 4.32 FHLB borrowings 1,013,255 11,364 4.45 497,375 4,965 3.96 Long-term debt 284,784   4,712 6.56 222,369   3,299 5.89   Total interest-bearing liabilities 8,113,198 $73,539 3.60 5,969,867 $55,954 3.72 Demand deposits 1,046,460 955,656 Other liabilities 249,424   247,255     Total liabilities 9,409,082 7,172,778   Equity 1,324,122   931,733     Total liabilities & shareholders' equity $10,733,204   $8,104,511     Net interest income / yield on average earning assets $85,159 3.69 $64,496 3.67     1. Average loan balances include non accrual loans. 2. Tax-exempt income has been adjusted to a tax-equivalent basis using a marginal tax rate of 35%. 3. For presentation in this table, average balances and the corresponding average rates for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts. Susquehanna Bancshares, Inc. P.O. Box 1000 Lititz, PA 17543   DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY (continued)     Interest rates and interest differential-taxable equivalent basis     For the Twelve-month Period Ended   For the Twelve-month Period Ended December 31, 2007 December 31, 2006 (Dollars in thousands) AverageBalance     Interest   Rate (%) AverageBalance     Interest   Rate (%) Assets         Short-term investments $97,583 $4,782 4.90 $81,939 $3,669 4.48 Investment securities: Taxable 1,485,561 73,837 4.97 1,261,515 53,463 4.24 Tax-advantaged 69,389   4,380 6.31 20,506   1,300 6.34   Total investment securities 1,554,950   78,217 5.03 1,282,021   54,763 4.27 Loans and leases, (net): Taxable 5,876,948 439,680 7.48 5,434,490 400,923 7.38 Tax-advantaged 102,930   7,708 7.49 83,322   5,987 7.19   Total loans and leases 5,979,878   447,388 7.48 5,517,812   406,910 7.37   Total interest-earning assets 7,632,411 $530,387 6.95 6,881,772 $465,342 6.76 Allowance for loan and lease losses (64,993 ) (59,465 ) Other non-earning assets 1,337,310   1,127,513     Total assets $8,904,728   $7,949,820     Liabilities Deposits: Interest-bearing demand $2,173,731 $61,572 2.83 $1,846,483 $51,424 2.78 Savings 480,065 4,278 0.89 496,056 4,960 1.00 Time 2,720,688 124,673 4.58 2,408,684 99,195 4.12 Short-term borrowings 423,827 17,464 4.12 324,326 13,495 4.16 FHLB borrowings 653,605 27,600 4.22 615,841 24,788 4.03 Long-term debt 237,910   14,667 6.16 207,765   12,159 5.85   Total interest-bearing liabilities 6,689,826 $250,254 3.74 5,899,155 $206,021 3.49 Demand deposits 935,018 946,369 Other liabilities 241,697   229,540     Total liabilities 7,866,541 7,075,064   Equity 1,038,187   874,756     Total liabilities & shareholders' equity $8,904,728   $7,949,820     Net interest income / yield on average earning assets $280,133 3.67 $259,321 3.77   1. Average loan balances include non accrual loans. 2. Tax-exempt income has been adjusted to a tax-equivalent basis using a marginal tax rate of 35%. 3. For presentation in this table, average balances and the corresponding average rates for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts. Susquehanna Bancshares, Inc. P.O. Box 1000 Lititz, PA 17543   LOANS AND LEASES   Loans and leases, net of unearned income, were as follows:     December 31, December 31, 2007 2006 (in thousands)   Commercial, financial, and agricultural $1,781,981 $978,522 Real estate - construction 1,292,953 1,064,452 Real estate secured - residential 2,151,923 1,147,741 Real estate secured - commercial 2,661,841 1,577,534 Consumer 411,159 313,848 Leases 451,733 478,900 Total loans and leases $8,751,590 $5,560,997