Allfirst Reports Net Income of $184.4 million for 2000.Business Editors BALTIMORE--(BUSINESS WIRE)--Feb. 21, 2001 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. p.l.c. (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 U.S. subsidiary Allfirst Financial Inc. (Allfirst) reported net income to common shareholders of $184.4 million for the year 2000, representing a 7% increase over the year 1999. Allfirst benefited from strong growth of 14% in non interest income Non-interest income is derived from the execution/processing business, the advisory business and any principal business that does not appear on the balance sheet. Financial institutions that wish to maximize execution/processing income depend on volume and efficiency for profits. from core banking activities (excluding securities gains), most notably 16% growth in electronic banking income, 12% growth in corporate deposit fees, and 8% growth in trust and asset management fees. These income streams were driven by both the acquisition of new customers and increased penetration of the existing customer base. Non interest expenses were well controlled, increasing 2% on a year over year basis (excluding name change costs of $10 million in 1999). The modest expense growth was driven by an increase in advertising costs to support the company's customer acquisition and expansion strategies. Allfirst experienced modest loan growth due to a decline in retail loans, but was buoyed by an 8% growth in commercial lending activities, primarily to middle market companies in the Mid-Atlantic Adj. 1. mid-Atlantic - of a region of the United States generally including Delaware; Maryland; Virginia; and usually New York; Pennsylvania; New Jersey; "mid-Atlantic states" middle Atlantic region. Net interest income was adversely affected, with a 0.25% decline in the net interest margin to 3.35% in 2000, due primarily to a higher interest rate environment and increased price competition. Deposit growth of 4% was achieved in the period, supported by 8% growth in non-interest bearing deposits. This reflected successful retail customer acquisition and commercial cash management activities and resulted in Allfirst achieving the number one market position for deposits in the Greater Baltimore Baltimore, city (1990 pop. 736,014), N central Md., surrounded by but politically independent of Baltimore co., on the Patapsco River estuary, an arm of Chesapeake Bay; inc. 1745. region. "We are pleased to deliver 7% growth in a very challenging economic and competitive environment" said Susan SUSAN Smallest Univalue Segment Assimilating Nucleus SUSAN Sub Saharan African Network SUSAN Smart Ultrasonic System for Aircraft NDE C. Keating Keating may refer refer to the following: People For people with the surname Keating, see Keating (surname) Places Several places in the US:
tr. & intr.v. deep·ened, deep·en·ing, deep·ens To make or become deep or deeper. Noun 1. deepening - a process of becoming deeper and more profound and broadening customer relationships is succeeding. More customers are using a wider array of both traditional and non-traditional banking products. In a rapidly changing market, influenced by technology and non-traditional alternatives, our recent announcements of an enhanced wealth management initiative and a number of strategic investments in e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. partnerships will serve our customers well into the future. The year 2000 was the first full year under the Allfirst brand and we are clearly establishing our identity as a dynamic regional financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. franchise." Asset quality remains sound. Nonperforming assets Nonperforming asset An asset that is not effectively producing income, such as an overdue loan. nonperforming asset An asset that produces no income. at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 2000 were $107.5 million (0.98% of loans, other real estate and other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. owned), a $27 million increase over the December December: see month. 31, 1999 level of $80.5 million (0.74%). The allowance for loan and lease losses at year-end of $153 million represented 191% of non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. and 1.40% of total loans. Allied Irish Banks p.l.c. the parent company of Allfirst, today also announced its preliminary annual results for the year ended December 31, 2000. AIB reported profit before tax and exceptional item of E1,251m, representing a 10.5% increase over the corresponding period. Adjusted earnings per share was 104c, up 15% and a return on equity of 21.6% was achieved. An increase in the final dividend of 15.6% to 25.25c has been proposed. Total assets of the group increased to E79.7 bn, up 19% from December 31, 1999. Allfirst Financial Inc. is a regional, diversified financial The diversified financial services segment includes a range of consumer and commercially-oriented companies offering a wide variety of products and services, including various lending products (such as home equity loans and credit cards), insurance, and securities and investment services company headquartered in Baltimore, MD, offering a full range of financial services including banking, trust, investment and insurance to retail, business and commercial customers. Its banking subsidiary, Allfirst Bank, operates over 250 bank branches and more than 575 ATMs throughout Maryland Maryland (mâr`ələnd), one of the Middle Atlantic states of the United States. It is bounded by Delaware and the Atlantic Ocean (E), the District of Columbia (S), Virginia and West Virginia (S, W), and Pennsylvania (N). , Pennsylvania Pennsylvania (pĕnsəlvā`nyə), one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York , 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 were $18.4 billion as of December 31, 2000. Information about Allfirst Financial is available at www.allfirst.com. Certain information included in this press release, other than historical information, may contain 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. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. The forward-looking statements are identified by terminology such as "may," "will," "believe," "expect," "estimate," "anticipate," "continue," or similar terms. Actual results may differ materially from those projected in the forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements 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.
ALLFIRST FINANCIAL INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Year Six Months
Ended Ended
December 31, December 31,
(in thousands)
2000 1999 2000 1999
Interest Income
Interest and fees on loans
and leases $863,090 $793,271 $443,339 $404,398
Interest and dividends on
investment securities:
Taxable 221,342 235,647 110,015 115,612
Tax-exempt 22,711 20,911 11,824 10,610
Dividends 13,428 11,656 8,126 7,546
Interest on loans held-for-sale 1,940 1,596 1,210 599
Other interest income 4,804 3,508 3,005 2,126
Total interest and
dividend income 1,127,315 1,066,589 577,519 540,891
Interest Expense
Interest on deposits 427,505 363,093 235,477 182,552
Interest on Federal funds
purchased and other short-
Term borrowings 119,031 102,306 52,871 50,452
Interest on long-term
debt 85,552 64,740 43,566 37,427
Total interest expense 632,088 530,139 331,914 270,431
Net Interest
Income 495,227 536,450 245,605 270,460
Provision for loan and
lease losses 28,540 34,150 11,665 13,171
Net Interest Income After
Provision for Loan and
Lease Losses 466,687 502,300 233,940 257,289
Noninterest Income
Service charges on deposit
accounts 100,350 93,948 51,762 46,090
Trust and investment advisory
income 88,472 82,081 44,645 42,187
Electronic banking income 28,329 24,485 14,988 13,018
Other income 130,595 104,538 72,801 50,358
Securities gains, net 304 4,975 129 (16)
Total noninterest income 348,050 310,027 184,325 151,637
Noninterest Expense
Salaries and other personnel
costs 278,283 275,942 142,602 138,698
Equipment costs 46,207 45,936 23,275 21,402
Occupancy costs 37,230 36,579 18,680 18,326
Postage and communications 19,890 20,216 9,831 9,626
Advertising and public
relations 16,486 13,626 9,528 3,075
Lending and collection 7,224 13,024 3,863 2,938
Other operating expenses 81,868 76,521 47,464 36,516
Intangible assets amortization
expense 47,784 50,996 23,948 25,482
Total noninterest expenses 534,972 532,840 279,191 256,063
Income before income taxes 279,765 279,487 139,074 152,863
Income tax expense 94,921 101,410 46,391 54,755
Net Income 184,844 178,077 92,683 98,108
Dividends on preferred stock 414 5,765 211 207
Net Income to Common
Shareholders $184,430 $172,312 $ 92,472 $ 97,901
ALLFIRST FINANCIAL INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
December 31, December 31,
2000 1999
(in thousands)
Assets
Cash and due from banks $ 933,969 $ 798,389
Interest bearing deposits in other banks 1,273 1,339
Trading account securities 4,222 1,716
Federal funds sold and securities purchased
under resale agreements 44,430 147,225
Investment securities
available-for-sale 4,375,037 4,287,343
Loans held-for-sale 57,255 4,808
Loans, net of unearned income of
$221,128 and $217,146:
Commercial 3,828,304 3,542,014
Commercial real estate 2,362,564 2,329,886
Residential mortgage 640,765 686,780
Retail 2,856,520 2,945,593
Commercial leases receivable 665,649 615,670
Retail leases receivable 353,364 383,880
Foreign 201,882 276,807
Total loans, net of unearned
income 10,909,048 10,780,630
Allowance for loan and lease losses (152,539) (157,351)
Loans, net 10,756,509 10,623,279
Premises and equipment 205,611 203,425
Due from customers on acceptances 3,791 4,601
Intangible assets 792,782 841,161
Other assets 1,233,033 593,964
Total assets $18,407,912 $17,507,250
Liabilities and Stockholders' Equity
Domestic deposits:
Noninterest bearing deposits $2,966,832 $2,735,959
Interest bearing deposits 9,401,871 9,074,884
Interest bearing deposits in
foreign banking office 308,879 331,744
Total deposits 12,677,582 12,142,587
Federal funds purchased and securities
sold under repurchase agreements 1,112,210 921,274
Other borrowed funds, short-term 540,386 709,762
Bank acceptances outstanding 3,791 4,602
Accrued taxes and other liabilities 1,117,127 702,150
Long-term debt 996,010 1,195,394
Total liabilities 16,447,106 15,675,769
Redeemable Preferred Stock 8,590 8,341
Minority interest 110 120
Common stockholders' equity 1,952,106 1,823,020
Total liabilities, redeemable
preferred stock, minority interest
and stockholders' equity $18,407,912 $17,507,250
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