Allfirst Reports 30% Earnings Growth for Third Quarter 1999.DUBLIN Dublin, city, Republic of Ireland Dublin, Irish Baile Átha Cliath, county borough (1991 pop. 915,516), Leinster, capital of the Republic of Ireland, on Dublin Bay at the mouth of the Liffey River. , Ireland--(BUSINESS WIRE)--Nov. 3, 1999-- Allied Irish Banks Allied Irish Banks, p.l.c. (AIB) (Irish: Bainc-Aontas Éireann),ISEQ: ALBK, LSE: ALBK, NYSE: AIB, FWB: AIB is a commercial bank based in Ireland not to be mistaken for Anglo Irish Bank. AIB is one of the so called Big Four commercial banks in Ireland. , plc ("AIB AIB n abbr (BRIT) (= Accident Investigation Bureau) → oficina de investigación de accidentes AIB n abbr (Brit) (= Accident Investigation Bureau) → ") [NYSE NYSE See: New York Stock Exchange : AIB;AIBPR:FMBPR] today announced that its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. Allfirst Financial Inc. ("Allfirst") reported net income to common shareholders of $48.0 million for the third quarter of 1999, representing a 30% increase over the 1998 third quarter results of $37.0 million, and a 37% increase over the quarter ended June June: see month. 1999 of $35.1 million. Net income to common shareholders represents net income after deducting dividends declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. on preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. . Net income to common shareholders for the first nine months of 1999 was $122.4 million compared to $174.0 million for the same period in 1998. The nine-month results represent a 14% increase after adjusting for the following items: -0-
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Nine Months September 30
$ million 1998 1999 %
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Net Income to Common Shareholders 174.0 122.4 (30)
Gain on Sale of Credit Card Portfolio (37.4) -
Name Change - 6.1
Securities Gains (26.1) (3.0)
------ -----
Adjusted Net Income 110.5 125.5 14
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Performance highlights included solid loan growth since December December: see month. 31, 1998 with a 9% increase in commercial lending and 7% increase in retail lending. Overall loan growth at 4% was affected by an intentional in·ten·tion·al adj. 1. Done deliberately; intended: an intentional slight. See Synonyms at voluntary. 2. Having to do with intention. reduction in the residential mortgage and foreign maritime portfolios. There was good growth in trust and investment advisory fees, up 15% and a 21% increase in electronic banking income driven by growth in the debit card debit card, card that allows the cost of goods or services that are purchased to be deducted directly from the purchaser's checking account. They can also be used at automated teller machines for withdrawing cash from the user's checking account. customer base. Underlying noninterest income was up 5% on the June 1999 quarter when taking into account leasing gains of $7 million in that quarter, and up 12% from the September September: see month. 1998 quarter, adjusting for revenues from businesses sold in 1998. Noninterest expenses declined 14%, compared with the third quarter 1998, primarily due to the rlosses represented 304% of nonperforming loans ed to 3.56% from 3.64% in the June 1999 quarter. "We're we're Contraction of we are. we're we are pleased with the performance of Allfirst Bank for the third quarter of 1999. The solid loan growth, good undg officer. Allfirst has reclassified certad income was presented with credit card income.ylvania, Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. D.C., northern Virginia Northern Virginia (NoVA) consists of Arlington, Fairfax, Loudoun, and Prince William counties and the independent cities of Alexandria, Falls Church, Fairfax, Manassas, and Manassas Park. and Delaware Delaware, state, United States Delaware (dĕl`əwâr, –wər), one of the Middle Atlantic states of the United States, the country's second smallest state (after Rhode Island). . Allfirst Financial Inc.'s assets amounted to approx. $18 billion as of September 30, 1999. Information about Alminology such as "may", "will", "believe", "expults to differ materially from those in the forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. include, but are not limited to: global, national and regional economic conditions; levels of market interest rate; credit or other risks of lending and investment activities; competitive and regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. factors; and technological change. -0-
ALLFIRST FINANCIAL INC.
Consolidated Statements of Condition
(Unaudited)
September 30, December 31,
1999 1998
(in thousands)
ASSETS
Cash and due from banks $860,436 $1,206,178
Interest-bearing deposits in other banks 1,337 1,478
Trading account securities 45,583 42,528
Federal funds sold and securities purchased
under resale agreements 63,965 130,916
Investment securities available-for-sale 4,486,040 4,815,087
Loans held-for-sale 10,166 84,254
Loans, net of unearned income of $205,921 and $199,471
Commercial 3,761,291 3,452,416
Commercial real estate 2,350,310 2,305,639
Residential mortgage 696,224 827,103
Retail 2,916,118 2,739,984
Credit card 14,746 15,234
Commercial leases receivable 578,935 540,395
Retail leases receivable 362,164 318,582
Foreign 290,049 365,067
---------- ----------
Total loans, net of
unearned income 10,969,837 10,564,420
Allowance for credit losses (157,351) (157,351)
----------- ----------
Loans, net 10,812,486 10,407,069
----------- ----------
Premises and equipment 205,732 203,903
Due from customers on acceptances 5,531 12,253
Intangible assets 854,471 893,584
Other assets 645,616 497,670
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Total assets $17,991,363 $18,294,920
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LIABILITIES AND STOCKHOLDERS' EQUITY
Domestic deposits:
Non-interest bearing deposits $2,839,570 $3,276,589
Interest bearing deposits 9,205,489 8,623,861
Interest bearing deposits in foreign
banking office 247,742 356,601
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Total deposits 12,292,801 12,257,051
Federal funds purchased and securities
sold under repurchase agreements 1,346,472 2,185,794
Other borrowed funds, short-term 617,400 377,927
Bank acceptances outstanding 5,531 12,253
Accrued taxes and other liabilities 721,436 586,137
Long-term debt 1,195,239 856,320
---------- ----------
Total liabilities 16,178,879 16,275,482
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Redeemable preferred stock 8,282 8,111
Total stockholders' equity 1,804,202 2,011,327
========== ==========
Total liabilities, preferred stock
and stockholders' equity $17,991,363 $18,294,920
========== ==========
ALLFIRST FINANCIAL INC.
Consolidated Statements of Income
(Unaudited)
Three Months Ended
September 30,
1999 1998
(in thousands)
INTEREST INCOME
Interest and fees on loans and leases $200,180 $200,206
Interest and dividends on investment securities 65,288 62,168
Interest on loans held-for-sale 181 3,303
Other interest income 902 1,673
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Total interest and dividend income 266,551 267,350
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INTEREST EXPENSE
Interest on deposits 88,955 98,684
Interest on federal funds purchased and
other short-term borrowings 27,142 23,946
Interest on long-term debt 17,028 12,126
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Total interest expense 133,125 134,756
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NET INTEREST INCOME 133,426 132,594
Provision for credit losses 6,185 2,808
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NET INTEREST INCOME AFTER
PROVISION FOR CREDIT LOSSES 127,241 129,786
------- -------
NON INTEREST INCOME
Service charges on deposit accounts(a) 23,060 21,665
Trust and investment advisory fees 20,662 17,994
Electronic banking income(a) 6,524 5,384
Mortgage banking income 2,545 5,304
Other income(a) 22,441 28,602
Securities gains, net (12) 1,042
Gain on sale of credit card loans - -
------ ------
Total non interest income 75,220 79,991
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NON INTEREST EXPENSES
Salaries and other personnel costs 67,883 77,220
Equipment costs 9,292 10,455
Occupancy costs 9,158 9,483
Other operating expenses(a) 26,747 35,333
Intangible assets amortization expense 12,741 13,789
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Total non interest expenses 125,821 146,280
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INCOME BEFORE INCOME TAXES 76,640 63,497
Income tax expense 28,534 23,444
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NET INCOME $48,106 $40,053
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NET INCOME
TO COMMON SHAREHOLDERS $48,005 $36,997
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(a) Allfirst has reclassified certain categories of income and costs.
Network service fees and VISA(R) royalties, previously shown as
cost items, are now offset against the associated revenue and
shown as noninterest income. A new category titled electronic
banking income captures ATM fees, surcharge revenue and
interchange income from VISA(R) debit card transactions.
Previously ATM fees were presented with deposit service charges
and debit card income was presented with credit card income. All
comparatives have been restated accordingly.
ALLFIRST FINANCIAL INC.
Consolidated Statements of Income
(Unaudited)
Nine Months Ended
September 30,
1999 1998
(in thousands)
INTEREST INCOME
Interest and fees on loans and leases $589,053 $ 594,349
Interest and dividends on investment securities 199,734 189,232
Interest on loans held-for-sale 1,178 16,001
Other interest income 2,284 7,711
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Total interest and dividend income 792,249 807,293
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INTEREST EXPENSE
Interest on deposits 269,496 297,592
Interest on federal funds purchased and
other short-term borrowings 78,996 66,750
Interest on long-term debt 44,341 37,035
-------- ------
Total interest expense 392,833 401,377
------- -------
NET INTEREST INCOME 399,416 405,916
Provision for credit losses 27,164 16,930
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NET INTEREST INCOME AFTER
PROVISION FOR CREDIT LOSSES 372,252 388,986
------- -------
NON INTEREST INCOME
Service charges on deposit accounts(a) 70,918 66,149
Trust and investment advisory fees 60,556 52,082
Electronic banking income(a) 17,991 15,316
Mortgage banking income 8,367 26,659
Other income(a) 71,205 81,835
Securities gains, net 4,979 41,395
Gain on sale of credit card loans - 60,000
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Total non interest income 234,016 343,436
------- -------
NON INTEREST EXPENSES
Salaries and other personnel costs 205,127 231,653
Equipment costs 33,826 32,155
Occupancy costs 27,411 28,907
Other operating expenses(a) 98,385 107,422
Intangible assets amortization expense 38,255 41,800
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Total non interest expenses 403,004 441,937
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INCOME BEFORE INCOME TAXES 203,264 290,485
Income tax expense 75,189 107,279
------- -------
NET INCOME $128,075 $183,206
======== ========
NET INCOME
TO COMMON SHAREHOLDERS $122,416 $174,037
(a) Allfirst has reclassified certain categories of income and costs. Network service fees and VISA See VESA. (R) royalties Not to be confused with Royal family. Royalties (sometimes, running royalties) are usage-based payments made by one party (the "licensee") to another (the "licensor") for ongoing use of an asset, most typically an intellectual property (IP) right. , previously shown as cost items, are now offset against the associated revenue and shown as noninterest income. A new category titled electronic banking income captures ATM fees, surcharge An overcharge or additional cost. A surcharge is an added liability imposed on something that is already due, such as a tax on tax. It also refers to the penalty a court can impose on a fiduciary for breaching a duty. revenue and interchange An interchange is a location where two things meet, usually perform some kind of exchange, and possibly go on their ways again. It is most commonly used in four contexts:
Previously ATM fees were presented with deposit service charges and debit card income was presented with credit card income. All comparatives have been restated accordingly. |
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