AmSouth Reports First Quarter Earnings of $155.4 Million or $0.44 Per Share.Business Editors To hear a webcast of the conference call with analysts at 2 p.m. CDT CDT abbr. Central Daylight Time CDT Central Daylight Time CDT n abbr (US) (= Central Daylight Time) → hora de verano del centro; (BRIT , April 15, go to www.amsouth.com and click on the webcast link under "Message Center." BIRMINGHAM Birmingham, cities, United States Birmingham (bûr`mĭnghăm') 1 City (1990 pop. 265,968), seat of Jefferson co., N central Ala., in the Jones Valley near the southern end of the Appalachian system; founded and inc. , Ala ALA aminolevulinic acid. Ala alanine. ala (a´lah) pl. a´lae [L.] a winglike process. .--(BUSINESS WIRE)--April 15, 2003 AmSouth Bancorporation AmSouth Bancorporation was a bank holding company headquartered in Birmingham, Alabama, operated as a subsidiary of Regions Financial Corporation. AmSouth was previously known as First National Bank of Birmingham first organized in 1872. (NYSE NYSE See: New York Stock Exchange :ASO ASO arteriosclerosis obliterans. ASO 1 Administrative services organization, see there 2 Allele-specific–oligonucleotide hybridization 3 Anti-streptolysin O, see there ) today reported earnings in the first quarter ended March 31, 2003, of $.44 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, a 10.0 percent increase from the $.40 per diluted share reported for the first quarter of 2002. Net income for the first quarter of 2003 was $155.4 million versus $145.6 million for the same period in 2002, a 6.7 percent increase. AmSouth's first quarter performance resulted in a return on average equity of 20.3 percent, a return on average assets of 1.54 percent and an efficiency ratio of 51 percent. "We continued to deliver solid results and create value even in this difficult environment," said Dowd Dowd is a derivation of an ancient surname which was once common in Ireland but is now quite rare. The name Dowd is an Anglicisation of the original Ui Dubhda, through its more common form O'Dowd. Ritter rit·ter n. pl. ritter A knight. [German, from Middle High German riter, from Middle Dutch ridder, from r , AmSouth's chairman, president and chief executive officer. "In the first quarter we produced solid loan growth with continued strength in commercial middle market and residential mortgages. Total deposits were also higher in the quarter." "In addition, we continued to see an improvement in credit quality, with net charge-offs declining in both the consumer and commercial loan portfolios," Ritter said. Net interest income was $363.0 million, while the net interest margin was 4.11 percent. Average loans for the quarter grew by $2.6 billion, a 10.1 percent increase over the same quarter in 2002, while average deposits were higher by $1.6 billion, or 6.3 percent during the same period, including a 9.2 percent increase in average low-cost deposits. Noninterest revenue, which includes earnings from service charges, trust, investment management services and other sources of fee income, was $192.9 million for the quarter, an increase of $15.2 million, or 8.6 percent, compared with the same quarter in 2002. Noninterest expenses in the first quarter were $289.6 million, up 1 percent compared with the first quarter of 2002. Net charge-offs were .62 percent of average net loans in the first quarter, improving from .77 percent in the previous quarter. The loan loss provision for the quarter exceeded charge-offs by $2.4 million. The ratio of loan loss reserves to total loans was 1.39 percent at the end of the first quarter. Total 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 March 31, 2003, were $191.3 million, or .69 percent of loans net of unearned income Unearned Income Any income that comes from investments and other sources unrelated to employment services. Notes: Examples of unearned income include interest from a savings account, bond interest, tips, alimony, and dividends from stock. , foreclosed properties and repossessions, compared to $197.0 million, or .72 percent, in the previous quarter. About AmSouth AmSouth is a regional bank holding company with $42 billion in assets, 600 branch banking offices and more than 1,200 ATMs. AmSouth operates in Tennessee Tennessee, state, United States Tennessee (tĕn`əsē', tĕn'əsē`), state in the south-central United States. , Alabama Alabama, indigenous people of North America Alabama (ăləbăm`ə), indigenous people of North America whose language belongs to the Muskogean branch of the Hokan-Siouan linguistic stock (see Native American languages). , Florida Florida, state, United States Florida (flôr`ĭdə, flŏr`–), state in the extreme SE United States. A long, low peninsula between the Atlantic Ocean (E) and the Gulf of Mexico (W), Florida is bordered by Georgia and , Mississippi Mississippi, state, United States Mississippi (mĭs'əsĭp`ē), one of the Deep South states of the United States. It is bordered by Alabama (E), the Gulf of Mexico (S), Arkansas and Louisiana, with most of the border formed by , Louisiana Louisiana (ləwē'zēăn`ə, l  ē'–), state in the S central United States. It is bounded by Mississippi, with the Mississippi R. and
Georgia Georgia, country, AsiaGeorgia (jôr`jə), Georgian Sakartvelo, Rus. Gruziya, officially Republic of Georgia, republic (2005 est. pop. 4,677,000), c.26,900 sq mi (69,700 sq km), in W Transcaucasia. . AmSouth is a leader among regional banks in the Southeast Southeast or south east is the ordinal direction halfway between south and east. It the opposite of northwest. Southeast or South East can refer to:
annuity Payment made at a fixed interval. A common example is the payment received by retirees from their pension plan. There are two main classes of annuities: annuities certain and contingent annuities. and mutual fund sales, and trust and investment management services. AmSouth also offers a complete line of banking products and services at its web site, www.amsouth.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. statement Statements made in this document which are not purely historical are 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. as defined in 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," including any statements regarding descriptions of management's plans, objectives or goals for future operations, products or services, and forecasts of its revenues, earnings or other measures of performance. Forward-looking statements are based on current management expectations and, by their nature, are subject to risks and uncertainties. A number of factors - many of which are beyond AmSouth's control - could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. AmSouth's most recent annual report filed with the Securities and Exchange Commission on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December December: see month. 31, 2002, describes some of these factors which could cause results to differ materially from management's current expectations including, but not limited to: the execution of AmSouth's strategic initiatives; legislation; general economic conditions, especially in the Southeast; the performance of stock and bond markets; changes in interest rates, yield curves and interest rate spread relationships; deposit flows; the cost of funds Cost of Funds The interest rate paid on an outstanding loan. Notes: Money isn't free! Cost of funds is the cost of borrowing money. See also: Interest Rate Cost of funds Interest rate associated with borrowing money. ; cost of federal deposit insurance premiums; demand for loan products; demand for 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. ; competition; changes in the quality or composition of AmSouth's loan and investment portfolios including capital market inefficiencies that may affect the marketability Marketability A negotiable security is said to have good marketability if there is an active secondary market in which it can easily be resold. marketability The ease with which an investment may be bought and sold in the secondary market. and valuation of available-for-sale securities; changes in accounting and tax principles, policies or guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. ; other economic, competitive, governmental, 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 affecting AmSouth's operations, products, services and prices; unexpected judicial actions and developments; and the outcome of litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , which is inherently uncertain and depends on the findings of judges and juries. To the extent that war, terrorist attacks or other geopolitical ge·o·pol·i·tics n. (used with a sing. verb) 1. The study of the relationship among politics and geography, demography, and economics, especially with respect to the foreign policy of a nation. 2. a. conflicts cause a prolonged pro·long tr.v. pro·longed, pro·long·ing, pro·longs 1. To lengthen in duration; protract. 2. To lengthen in extent. negative impact on the economy, the effects may include: adverse changes in customers' borrowing, investing or spending patterns; market disruptions Market Disruption A situation where markets cease to function in a regular manner, typically characterized by rapid and large market declines. Market disruptions can result from both physical threats to the stock exchange or a unusual trading (as in a crash). ; adverse effects on the performance of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and foreign equity markets; currency fluctuations; exchange controls; restriction restriction - A bug or design error that limits a program's capabilities, and which is sufficiently egregious that nobody can quite work up enough nerve to describe it as a feature. of asset growth; negative effects on credit quality; and other effects that could adversely impact the performance, earnings and revenue growth of the financial services industry, including AmSouth. Forward-looking statements speak only as of the date they are made. AmSouth does not undertake a duty to update forward-looking statements to reflect circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or or events that occur after the date the forward-looking statements are made.
EARNINGS SUMMARY
($'s in thousands except per share data)
Three Months Ended
-------------------------------------
2003
March 31 December 31 September 30
------------ ------------------------
Net interest income $363,042 $360,483 $364,385
Provision for loan losses 44,700 53,450 51,400
------------ ----------- ------------
Net interest income after
provision 318,342 307,033 312,985
Noninterest revenues 192,885 192,234 188,336
Noninterest expenses 289,606 276,684 276,031
------------ ----------- ------------
Income before income taxes 221,621 222,583 225,290
Income taxes 66,265 67,376 69,289
------------ ----------- ------------
Net income $155,356 $155,207 $156,001
============ =========== ============
Earnings per common share $0.44 $0.44 $0.44
Earnings per common share -
diluted 0.44 0.44 0.43
Average common shares
outstanding 351,981 353,792 357,567
Average common shares
outstanding - diluted 355,265 356,784 361,961
End of period common shares
outstanding 351,645 353,424 357,787
EARNINGS SUMMARY
($'s in thousands except per share data)
Three Months Ended Percent
------------------------ Change
2002 Versus Prior
June 30 March 31 Year
-------------------------------------
Net interest income $376,115 $371,657 (2.3%)
Provision for loan losses 52,600 56,100 (20.3%)
------------ -----------
Net interest income after
provision 323,515 315,557 0.9%
Noninterest revenues 181,128 177,663 8.6%
Noninterest expenses 286,777 287,130 0.9%
------------ -----------
Income before income taxes 217,866 206,090 7.5%
Income taxes 65,497 60,520 9.5%
------------ -----------
Net income $152,369 $145,570 6.7%
============ ===========
Earnings per common share $0.42 $0.40 10.0%
Earnings per common share -
diluted 0.42 0.40 10.0%
Average common shares
outstanding 359,782 361,656
Average common shares
outstanding - diluted 364,756 365,919
End of period common shares
outstanding 360,359 362,147
EARNINGS SUMMARY
($'s in thousands except per share data)
YTD Percent
------------------------ Change
2003 2002 Versus Prior
March 31 March 31 Year
--------------------------------------
Net interest income $363,042 $371,657 (2.3%)
Provision for loan losses 44,700 56,100 (20.3%)
------------ -----------
Net interest income after
provision 318,342 315,557 0.9%
Noninterest revenues 192,885 177,663 8.6%
Noninterest expenses 289,606 287,130 0.9%
------------ -----------
Income before income taxes 221,621 206,090 7.5%
Income taxes 66,265 60,520 9.5%
------------ -----------
Net income $155,356 $145,570 6.7%
============ ===========
Earnings per common share $0.44 $0.40 10.0%
Earnings per common share -
diluted 0.44 0.40 10.0%
Average common shares
outstanding 351,981 361,656
Average common shares
outstanding - diluted 355,265 365,919
End of period common shares
outstanding 351,645 362,147
KEY PERFORMANCE RATIOS
Three Months Ended
-------------------------------------
2003
March 31 December 31 September 30
------------ ------------------------
Average shareholders' equity to
average total assets 7.60% 7.73% 7.93%
End of period shareholders'
equity to end of period total
assets 7.42 7.68 7.88
Loans net of unearned income to
total deposits 98.92 100.13 98.70
Return on average assets
(annualized) 1.54 1.55 1.60
Return on average shareholders'
equity (annualized) 20.26 20.01 20.19
Book value per common share $8.89 $8.82 $8.73
Tangible book value per common
share $8.03 $7.96 $7.88
Net interest margin - taxable
equivalent 4.11% 4.12% 4.28%
Efficiency ratio 51.02 48.98 48.83
KEY PERFORMANCE RATIOS
Three Months Ended
-------------------------
2002
June 30 March 31
-------------------------
Average shareholders' equity to
average total assets 7.91% 7.88%
End of period shareholders'
equity to end of period total
assets 7.99 7.82
Loans net of unearned income to
total deposits 100.49 98.99
Return on average assets
(annualized) 1.61 1.56
Return on average shareholders'
equity (annualized) 20.36 19.83
Book value per common share $8.53 $8.25
Tangible book value per common
share $7.69 $7.41
Net interest margin - taxable
equivalent 4.54% 4.58%
Efficiency ratio 50.30 51.03
KEY PERFORMANCE RATIOS
YTD
-------------------------
2003 2002
March 31 March 31
-------------------------
Average shareholders' equity to
average total assets 7.60% 7.88%
End of period shareholders'
equity to end of period total
assets 7.42 7.82
Loans net of unearned income to
total deposits 98.92 98.99
Return on average assets
(annualized) 1.54 1.56
Return on average shareholders'
equity (annualized) 20.26 19.83
Book value per common share $8.89 $8.25
Tangible book value per common
share $8.03 $7.41
Net interest margin - taxable
equivalent 4.11% 4.58%
Efficiency ratio 51.02 51.03
BALANCE SHEET INFORMATION Average Balance
($'s in thousands) Three Months Ended
------------------------------------
2003
March 31 December 31 September 30
----------- ------------------------
Commercial $8,799,145 $8,534,535 $8,430,033
Commercial real estate 4,347,984 4,286,718 4,367,716
Consumer:
Residential first mortgages 3,091,003 2,581,052 1,822,806
Equity loans and lines 6,439,787 6,275,391 6,062,522
Dealer indirect 3,752,267 3,725,141 3,753,930
Revolving credit 528,825 526,956 517,152
Other consumer 870,787 888,189 923,801
----------- ----------- ------------
Total consumer 14,682,669 13,996,729 13,080,211
----------- ----------- ------------
Total loans net of unearned
income 27,829,798 26,817,982 25,877,960
Investment securities(a) 8,969,417 8,523,874 8,436,889
Interest-earning assets(a) 36,953,359 35,911,164 34,935,229
Total assets 40,942,836 39,837,967 38,650,360
Noninterest-bearing deposits 5,144,378 5,050,493 4,892,434
Interest-bearing checking 5,590,645 5,259,390 5,205,385
Money market and savings deposits 7,405,443 7,283,621 6,677,187
----------- ----------- ------------
Total low-cost deposits 18,140,466 17,593,504 16,775,006
Time deposits 8,359,791 8,596,584 8,641,203
Foreign time deposits 686,369 675,778 482,911
----------- ----------- ------------
Total deposits 27,186,626 26,865,866 25,899,120
Shareholders' equity 3,110,406 3,077,837 3,065,629
BALANCE SHEET INFORMATION Average Balance
($'s in thousands) Three Months Ended Percent
---------------------- Change
2002 Versus Prior
June 30 March 31 Year
------------------------------------
Commercial $8,490,986 $8,523,345 3.2%
Commercial real estate 4,385,399 4,437,073 (2.0%)
Consumer:
Residential first mortgages 1,863,833 1,768,540 74.8%
Equity loans and lines 5,806,799 5,526,816 16.5%
Dealer indirect 3,664,565 3,447,211 8.8%
Revolving credit 508,277 509,186 3.9%
Other consumer 982,128 1,060,478 (17.9%)
----------- -----------
Total consumer 12,825,602 12,312,231 19.3%
----------- -----------
Total loans net of unearned
income 25,701,987 25,272,649 10.1%
Investment securities(a) 8,294,361 8,351,004 7.4%
Interest-earning assets(a) 34,392,612 34,109,717 8.3%
Total assets 37,962,697 37,783,732 8.4%
Noninterest-bearing deposits 4,852,478 4,830,915 6.5%
Interest-bearing checking 5,280,315 5,234,011 6.8%
Money market and savings deposits 6,539,522 6,541,856 13.2%
----------- -----------
Total low-cost deposits 16,672,315 16,606,782 9.2%
Time deposits 8,385,356 8,621,767 (3.0%)
Foreign time deposits 371,251 337,886 103.1%
----------- -----------
Total deposits 25,428,922 25,566,435 6.3%
Shareholders' equity 3,001,774 2,976,874 4.5%
BALANCE SHEET INFORMATION Average Balance Percent
($'s in thousands) YTD Change
----------------------- Versus Prior
2003 2002 Year
March 31 March 31
----------- ------------------------
Commercial $8,799,145 $8,523,345 3.2%
Commercial real estate 4,347,984 4,437,073 (2.0%)
Consumer:
Residential first mortgages 3,091,003 1,768,540 74.8%
Equity loans and lines 6,439,787 5,526,816 16.5%
Dealer indirect 3,752,267 3,447,211 8.8%
Revolving credit 528,825 509,186 3.9%
Other consumer 870,787 1,060,478 (17.9%)
----------- -----------
Total consumer 14,682,669 12,312,231 19.3%
----------- -----------
Total loans net of
unearned income 27,829,798 25,272,649 10.1%
Investment securities(a) 8,969,417 8,351,004 7.4%
Interest-earning assets(a) 36,953,359 34,109,717 8.3%
Total assets 40,942,836 37,783,732 8.4%
Noninterest-bearing deposits 5,144,378 4,830,915 6.5%
Interest-bearing checking 5,590,645 5,234,011 6.8%
Money market and savings deposits 7,405,443 6,541,856 13.2%
----------- -----------
Total low-cost deposits 18,140,466 16,606,782 9.2%
Time deposits 8,359,791 8,621,767 (3.0%)
Foreign time deposits 686,369 337,886 103.1%
----------- -----------
Total deposits 27,186,626 25,566,435 6.3%
Shareholders' equity 3,110,406 2,976,874 4.5%
(a) Excludes adjustment for market valuation on available-for-sale
securities and certain noninterest-earning marketable equity
securities.
BALANCE SHEET INFORMATION Ending Balance
($'s in thousands) As of
------------------------------------
2003
March 31 December 31 September 30
----------- ------------------------
Commercial $8,870,116 $8,657,695 $8,420,842
Commercial real estate 4,387,843 4,392,626 4,348,878
Consumer:
Residential first mortgages 2,860,556 2,794,072 2,163,751
Equity loans and lines 6,511,687 6,359,945 6,179,910
Dealer indirect 3,756,628 3,731,364 3,725,620
Revolving credit 520,758 541,165 519,326
Other consumer 791,360 874,051 928,523
----------- ----------- ------------
Total consumer 14,440,989 14,300,597 13,517,130
----------- ----------- ------------
Total loans net of unearned
income 27,698,948 27,350,918 26,286,850
Investment securities(b) 9,623,430 8,966,778 8,455,635
Interest-earning assets(b) 37,811,324 36,475,398 35,424,764
Total assets 42,099,499 40,571,272 39,610,727
Noninterest-bearing deposits 5,569,319 5,494,657 5,181,668
Interest-bearing checking 5,767,727 5,470,243 5,150,492
Money market and savings deposits 7,636,685 7,270,541 7,101,223
----------- ----------- ------------
Total low-cost deposits 18,973,731 18,235,441 17,433,383
Time deposits 8,370,069 8,439,520 8,666,676
Foreign time deposits 656,649 640,663 531,743
----------- ----------- ------------
Total deposits 28,000,449 27,315,624 26,631,802
Shareholders' equity 3,125,179 3,115,997 3,122,747
BALANCE SHEET INFORMATION Ending Balance
($'s in thousands) As of Percent
---------------------- Change
2002 Versus Prior
June 30 March 31 Year
------------------------------------
Commercial $8,448,082 $8,516,345 4.2%
Commercial real estate 4,366,696 4,384,326 0.1%
Consumer:
Residential first mortgages 1,652,231 1,819,727 57.2%
Equity loans and lines 5,948,664 5,649,781 15.3%
Dealer indirect 3,770,161 3,529,131 6.4%
Revolving credit 510,427 499,683 4.2%
Other consumer 956,647 1,013,416 (21.9%)
----------- -----------
Total consumer 12,838,130 12,511,738 15.4%
----------- -----------
Total loans net of unearned
income 25,652,908 25,412,409 9.0%
Investment securities(b) 8,593,323 8,634,042 11.5%
Interest-earning assets(b) 34,679,735 34,771,599 8.7%
Total assets 38,499,103 38,223,507 10.1%
Noninterest-bearing deposits 4,981,783 4,850,399 14.8%
Interest-bearing checking 5,234,927 5,298,401 8.9%
Money market and savings deposits 6,455,526 6,632,665 15.1%
----------- -----------
Total low-cost deposits 16,672,236 16,781,465 13.1%
Time deposits 8,499,511 8,558,746 (2.2%)
Foreign time deposits 356,789 332,581 97.4%
----------- -----------
Total deposits 25,528,536 25,672,792 9.1%
Shareholders' equity 3,074,263 2,987,485 4.6%
(b) Excludes adjustment for market valuation on available-for-sale
securities and certain noninterest-earning marketable equity
securities.
NONPERFORMING ASSETS
($'s in thousands)
2003 2002
March 31 December 31 September 30 June 30 March 31
--------- ---------------------------------------
Nonaccrual loans(c) $149,551 $158,829 $151,442 $152,684 $158,435
Foreclosed properties 34,622 33,828 32,567 32,838 29,462
Repossessions 7,082 4,346 4,716 3,982 5,080
--------- --------- --------- --------- ---------
Total nonperforming
assets(c) $191,255 $197,003 $188,725 $189,504 $192,977
========= ========= ========= ========= =========
Nonperforming assets
to loans net of
unearned income,
foreclosed
properties and
repossessions 0.69% 0.72% 0.72% 0.74% 0.76%
Accruing loans 90
days past due $80,585 $91,045 $93,700 $91,376 $117,068
========= ========= ========= ========= =========
(c) Exclusive of accruing loans 90 days past due
ALLOWANCE FOR LOAN LOSSES
($'s in thousands)
2003 2002
March 31 December 31 September 30 June 30 March 31
--------- ---------------------------------------
Balance at beginning
of period $381,579 $379,878 $371,418 $367,819 $363,607
Loans charged off (52,988) (61,334) (53,928) (59,857) (62,806)
Recoveries of loans
previously charged
off 10,645 9,585 10,988 10,856 10,918
--------- --------- --------- --------- ---------
Net Charge-offs (42,343) (51,749) (42,940) (49,001) (51,888)
Addition to allowance
charged to expense 44,700 53,450 51,400 52,600 56,100
--------- --------- --------- --------- ---------
Balance at end of
period $383,936 $381,579 $379,878 $371,418 $367,819
========= ========= ========= ========= =========
Allowance for loan
losses to loans net
of unearned income 1.39% 1.40% 1.45% 1.45% 1.45%
Net charge-offs to
average loans net of
unearned income(d) 0.62% 0.77% 0.66% 0.76% 0.83%
Allowance for loan
losses to
nonperforming
loans(e) 256.73% 240.25% 250.84% 243.26% 232.16%
Allowance for loan
losses to
nonperforming
assets(e) 200.75% 193.69% 201.29% 195.99% 190.60%
(d) Annualized
(e) Exclusive of accruing loans 90 days past due
QUARTERLY AVERAGE DAILY BALANCES, REVENUE
& EXPENSE SUMMARY, YIELDS & RATES
Three Months Ended
March 31, 2003
-----------------------------
(Taxable equivalent basis, $'s in
thousands)
Average Revenue/ Yield/
Balance Expense Rate
-----------------------------
ASSETS
Interest-earning assets:
Loans net of unearned income $27,829,798 $405,383 5.91%
Available-for-sale securities 4,511,821 78,623 7.07%
Held-to-maturity securities 4,457,596 64,804 5.90%
------------ ---------
Total investment securities 8,969,417 143,427 6.49%
Other interest-earning assets 154,144 535 1.41%
------------ ---------
Total interest-earning assets 36,953,359 549,345 6.03%
Cash and due from banks 1,054,545
Other assets 3,137,890
Allowance for loan losses (382,501)
Market valuation on AFS securities 179,543
------------
$40,942,836
============
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Interest-bearing checking $5,590,645 8,035 0.58%
Money market and savings deposits 7,405,443 13,997 0.77%
Time deposits 8,359,791 67,779 3.29%
Foreign time deposits 686,369 1,684 1.00%
Federal funds purchased and securities
sold under agreements to repurchase 2,180,991 5,919 1.10%
Other interest-bearing liabilities 6,981,141 77,169 4.48%
------------ ---------
Total interest-bearing liabilities 31,204,380 174,583 2.27%
--------- ------
Net interest spread 3.76%
======
Noninterest-bearing demand deposits 5,144,378
Other liabilities 1,483,672
Shareholders' equity 3,110,406
------------
$40,942,836
============
Net interest income/margin on a
taxable equivalent basis 374,762 4.11%
======
Taxable equivalent adjustment:
Loans 6,840
Available-for-sale securities 941
Held-to-maturity securities 3,939
---------
Total taxable equivalent adjustment 11,720
---------
Net interest income $363,042
=========
QUARTERLY AVERAGE DAILY BALANCES, REVENUE
& EXPENSE SUMMARY, YIELDS & RATES
Three Months Ended
December 31, 2002
-----------------------------
(Taxable equivalent basis, $'s in
thousands) Average Revenue/ Yield/
Balance Expense Rate
-----------------------------
ASSETS
Interest-earning assets:
Loans net of unearned income $26,817,982 $413,571 6.12%
Available-for-sale securities 4,286,045 80,291 7.43%
Held-to-maturity securities 4,237,829 63,390 5.93%
------------ ---------
Total investment securities 8,523,874 143,681 6.69%
Other interest-earning assets 569,308 2,562 1.79%
------------ ---------
Total interest-earning assets 35,911,164 559,814 6.18%
Cash and due from banks 1,042,937
Other assets 3,077,442
Allowance for loan losses (381,463)
Market valuation on AFS securities 187,887
------------
$39,837,967
============
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Interest-bearing checking $5,259,390 9,300 0.70%
Money market and savings deposits 7,283,621 17,552 0.96%
Time deposits 8,596,584 73,853 3.41%
Foreign time deposits 675,778 1,795 1.05%
Federal funds purchased and securities
sold under agreements to repurchase 2,023,816 6,308 1.24%
Other interest-bearing liabilities 6,464,030 78,335 4.81%
------------ ---------
Total interest-bearing liabilities 30,303,219 187,143 2.45%
--------- ------
Net interest spread 3.73%
======
Noninterest-bearing demand deposits 5,050,493
Other liabilities 1,406,418
Shareholders' equity 3,077,837
------------
$39,837,967
============
Net interest income/margin on a
taxable equivalent basis 372,671 4.12%
======
Taxable equivalent adjustment:
Loans 7,198
Available-for-sale securities 1,043
Held-to-maturity securities 3,947
---------
Total taxable equivalent adjustment 12,188
---------
Net interest income $360,483
=========
QUARTERLY AVERAGE DAILY BALANCES, REVENUE
& EXPENSE SUMMARY, YIELDS & RATES
Three Months Ended
March 31, 2002
-----------------------------
(Taxable equivalent basis, $'s in
thousands) Average Revenue/ Yield/
Balance Expense Rate
-----------------------------
ASSETS
Interest-earning assets:
Loans net of unearned income $25,272,649 $426,577 6.85%
Available-for-sale securities 4,402,804 86,599 7.98%
Held-to-maturity securities 3,948,200 65,400 6.72%
------------ ---------
Total investment securities 8,351,004 151,999 7.38%
Other interest-earning assets 486,064 5,287 4.41%
------------ ---------
Total interest-earning assets 34,109,717 583,863 6.94%
Cash and due from banks 1,075,303
Other assets 2,833,241
Allowance for loan losses (365,104)
Market valuation on AFS securities 130,575
------------
$37,783,732
============
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Interest-bearing checking $5,234,011 11,970 0.93%
Money market and savings deposits 6,541,856 18,769 1.16%
Time deposits 8,621,767 82,923 3.90%
Foreign time deposits 337,886 1,102 1.32%
Federal funds purchased and securities
sold under agreements to repurchase 1,986,166 6,229 1.27%
Other interest-bearing liabilities 6,146,522 77,906 5.14%
------------ ---------
Total interest-bearing liabilities 28,868,208 198,899 2.79%
--------- ------
Net interest spread 4.15%
======
Noninterest-bearing demand deposits 4,830,915
Other liabilities 1,107,735
Shareholders' equity 2,976,874
------------
$37,783,732
============
Net interest income/margin on a
taxable equivalent basis 384,964 4.58%
======
Taxable equivalent adjustment:
Loans 8,119
Available-for-sale securities 1,291
Held-to-maturity securities 3,897
---------
Total taxable equivalent adjustment 13,307
---------
Net interest income $371,657
=========
NOTE: The taxable equivalent adjustment has been computed based on
the statutory federal income tax rate, adjusted for applicable
state income taxes net of the related federal tax benefit.
Loans net of unearned income includes nonaccrual loans for all
periods presented. Available-for-sale securities excludes
certain noninterest-earning, marketable equity securities.
Statement 133 valuation adjustments related to time deposits,
certificates of deposit of $100,000 or more and other
interest-bearing liabilities are included in other
liabilities. Included in interest revenue for the
available-for-sale portfolio for the three months ended March
31, 2003, December 31, 2002 and March 31, 2002, was
approximately $12,974,000, $14,141,000, and $15,519,000,
respectively, associated with retained interest on loans sold
or securitized which resulted in an increase in the yield on
the available-for-sale portfolio of approximately 115, 129 and
139 basis points, respectively.
NONINTEREST REVENUES
($'s in thousands) Three Months Ended
-------------------------------------
2003
March 31 December 31 September 30
------------ ------------------------
Service charges on deposit
accounts $75,556 $78,873 $77,672
Trust income 26,027 24,829 25,357
Consumer investment services
income 16,310 16,329 18,912
Bank owned life insurance 13,834 13,629 14,587
Bankcard income 6,201 6,550 6,475
Mortgage income 10,016 6,691 7,112
Interchange income 16,687 16,971 16,418
Portfolio income 5,930 5,541 4,267
Other noninterest revenues 22,324 22,821 17,536
------------ ----------- ------------
Noninterest revenues $192,885 $192,234 $188,336
============ =========== ============
NONINTEREST REVENUES Three Months Ended Percent
($'s in thousands) ----------------------- Change
2002 Versus Prior
June 30 March 31 Year
-------------------------------------
Service charges on deposit
accounts $67,551 $65,130 16.0%
Trust income 27,373 27,869 (6.6%)
Consumer investment services
income 21,641 20,911 (22.0%)
Bank owned life insurance 15,046 16,637 (16.8%)
Bankcard income 6,163 5,804 6.9%
Mortgage income 4,469 5,876 70.5%
Interchange income 16,165 13,875 20.3%
Portfolio income 4,136 3,567 66.3%
Other noninterest revenues 18,584 17,994 24.1%
------------ -----------
Noninterest revenues $181,128 $177,663 8.6%
============ ===========
NONINTEREST REVENUES
($'s in thousands) YTD Percent
------------------------ Change
2003 2002 Versus Prior
March 31 March 31 Year
--------------------------------------
Service charges on deposit
accounts $75,556 $65,130 16.0%
Trust income 26,027 27,869 (6.6%)
Consumer investment services
income 16,310 20,911 (22.0%)
Bank owned life insurance 13,834 16,637 (16.8%)
Bankcard income 6,201 5,804 6.9%
Mortgage income 10,016 5,876 70.5%
Interchange income 16,687 13,875 20.3%
Portfolio income 5,930 3,567 66.3%
Other noninterest revenues 22,324 17,994 24.1%
------------ -----------
Noninterest revenues $192,885 $177,663 8.6%
============ ===========
NONINTEREST EXPENSES
($'s in thousands) Three Months Ended
-------------------------------------
2003
March 31 December 31 September 30
------------ ------------------------
Salaries and employee benefits $154,065 $142,675 $144,517
Net occupancy expense 31,525 30,530 30,011
Equipment expense 27,968 29,030 30,155
Marketing expense 9,158 8,941 8,903
Postage and supplies expense 11,939 11,972 11,973
Communications expense 7,563 5,491 5,788
Professional fees 8,412 7,447 8,074
Other noninterest expenses 38,976 40,598 36,610
------------ ----------- ------------
Noninterest expenses $289,606 $276,684 $276,031
============ =========== ============
NONINTEREST EXPENSES Three Months Ended Percent
($'s in thousands) ----------------------- Change
2002 Versus Prior
June 30 March 31 Year
-------------------------------------
Salaries and employee benefits $146,806 $150,266 2.5%
Net occupancy expense 29,474 28,533 10.5%
Equipment expense 30,115 29,429 (5.0%)
Marketing expense 8,719 9,046 1.2%
Postage and supplies expense 12,192 12,954 (7.8%)
Communications expense 8,257 8,902 (15.0%)
Professional fees 8,804 6,726 25.1%
Other noninterest expenses 42,410 41,274 (5.6%)
------------ -----------
Noninterest expenses $286,777 $287,130 0.9%
============ ===========
NONINTEREST EXPENSES
($'s in thousands) YTD Percent
----------------------- Change
2003 2002 Versus Prior
March 31 March 31 Year
--------------------------------------
Salaries and employee benefits $154,065 $150,266 2.5%
Net occupancy expense 31,525 28,533 10.5%
Equipment expense 27,968 29,429 (5.0%)
Marketing expense 9,158 9,046 1.2%
Postage and supplies expense 11,939 12,954 (7.8%)
Communications expense 7,563 8,902 (15.0%)
Professional fees 8,412 6,726 25.1%
Other noninterest expenses 38,976 41,274 (5.6%)
----------- ----------
Noninterest expenses $289,606 $287,130 0.9%
=========== ==========
INTANGIBLE ASSETS Ending Balance
($'s in thousands) As of
-------------------------------------
2003
March 31 December 31 September 30
------------ ----------- ------------
Goodwill $288,365 $288,365 $288,365
Core deposit and other
intangibles 12,336 13,535 14,760
Ending Balance
INTANGIBLE ASSETS As of Percent
($'s in thousands) ------------------------- Change
2002 Versus Prior
June 30 March 31 Year
--------------------------------------
Goodwill $288,365 $288,365 0.0%
Core deposit and other
intangibles 15,984 17,334 (28.8%)
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