AmSouth Reports Fourth Quarter Earnings Up 16 Percent to $.44 Per Share; Achieved Record Earnings in 2002.Business Editors 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)--Jan. 14, 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 fourth quarter ended Dec. 31, 2002, 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 16 percent increase from $.38 per diluted share in the fourth quarter of 2001. Net income for the fourth quarter of 2002 was $155.2 million versus $140.5 million for the same period in 2001. For the year, reported earnings were $609.1 million compared with $536.3 million in 2001. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of were $1.68 for the year, a 16 percent increase from $1.45 per share in 2001. Return on equity for 2002 was 20.1 percent, return on assets Return on assets (ROA) Indicator of profitability. Determined by dividing net income for the past 12 months by total average assets. Result is shown as a percentage. ROA can be decomposed into return on sales (net income/sales) multiplied by asset utilization (sales/assets). was 1.58 percent and the efficiency ratio was 50.5 percent. "In 2002, our focus on internal growth driven by the execution of our strategic initiatives resulted in a year of solid performance despite an extremely challenging 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. "Strong loan and deposit growth during the quarter provides momentum as we enter the new year and we continue to be well-positioned for an improving economy." AmSouth's fourth quarter performance resulted in a return on average equity of 20.0 percent, a return on average assets of 1.55 percent and an efficiency ratio of 50.0 percent. Net interest income increased one percent on an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. basis compared to the third quarter, reaching $372.0 million. The net interest margin was 4.24 percent in the fourth quarter, declining 12 basis points from the third quarter. Average loans grew by $1.9 billion, or 7.5 percent, to $26.8 billion compared with the same quarter in 2001, while low-cost deposits grew $1.3 billion, or 8.2 percent. Noninterest income, which includes earnings from trust, investment management services and other sources of fee income, was $192.2 million, an increase of $6.3 million or 3.4 percent compared with the same quarter in 2001. Fourth quarter noninterest expenses were $288.2 million, down 6.5 percent compared with the same quarter in 2001. Net charge-offs were .77 percent of average net loans in the fourth quarter of 2002, compared with .66 percent in the previous quarter. The loan loss provision for the quarter exceeded charge-offs by $1.7 million. The ratio of loan loss reserves to total loans was 1.40 percent, down 5 basis points from the previous 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 Dec. 31, 2002, were $197.0 million, or .72 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 $188.7 million or .72 percent in the previous quarter. About AmSouth AmSouth is a regional bank holding company headquartered in Birmingham with $41 billion in assets, 600 branch banking offices and 1,250 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 (the Company) control - could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. The Company'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, 2001, and quarterly report on Form 10-Q Form 10-Q See 10-Q. for the quarter ended September September: see month. 30, 2002, describe 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 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. The Company 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. To hear a webcast of the conference call with analysts at 2 p.m. CST CST abbr. 1. Central Standard Time 2. convulsive shock treatment CST Central Standard Time Noun 1. , January January: see month. 14, go to www.amsouth.com, click on "About AmSouth," then "Investor Relations Investor relations The process by which the corporation communicates with its investors. ," and follow the links to the webcast.
EARNINGS SUMMARY
($'s in thousands
except per share data) Three Months Ended
----------------------------------
2002
December 31 September 30 June 30
----------------------------------
Net interest income $372,037 $371,350 $382,133
Provision for loan losses 53,450 51,400 52,600
----------- ------------ ---------
Net interest income after provision 318,587 319,950 329,533
Noninterest revenue 192,234 188,336 181,128
Noninterest expense excluding
goodwill amortization 288,238 282,996 292,795
Goodwill amortization - - -
----------- ------------ ---------
Income before income taxes 222,583 225,290 217,866
Income taxes 67,376 69,289 65,497
----------- ------------ ---------
Net income $155,207 $156,001 $152,369
=========== ============ =========
Earnings per common share $0.44 $0.44 $0.42
Earnings per common share - diluted 0.44 0.43 0.42
Earnings per common share - diluted
(excl. Goodwill) 0.44 0.43 0.42
Average common shares outstanding 353,792 357,567 359,782
Average common shares outstanding -
diluted 356,784 361,961 364,756
End of period common shares
outstanding 353,424 357,787 360,359
Percent
Three Months Ended Change
------------------- Versus
2001 Prior
March 31 December 31 Year
--------- ------------------
Net interest income $378,194 $375,630 (1.0%)
Provision for loan losses 56,100 53,600 (0.3%)
--------- ---------
Net interest income after provision 322,094 322,030 (1.1%)
Noninterest revenue 177,663 185,924 3.4%
Noninterest expense excluding
goodwill amortization 293,667 300,814 (4.2%)
Goodwill amortization - 7,328 (100.0%)
--------- ---------
Income before income taxes 206,090 199,812 11.4%
Income taxes 60,520 59,291 13.6%
--------- ---------
Net income $145,570 $140,521 10.5%
========= =========
Earnings per common share $0.40 $0.39 12.8%
Earnings per common share - diluted 0.40 0.38 15.8%
Earnings per common share - diluted
(excl. Goodwill) 0.40 0.40 10.0%
Average common shares outstanding 361,656 362,831
Average common shares outstanding -
diluted 365,919 366,374
End of period common shares
outstanding 362,147 363,035
Percent
YTD Change
----------------------- Versus
2002 2001 Prior
December 31 December 31 Year
----------- --------------------
Net interest income $1,503,714 $1,394,884 7.8%
Provision for loan losses 213,550 187,100 14.1%
----------- -----------
Net interest income after provision 1,290,164 1,207,784 6.8%
Noninterest revenue 739,361 748,222 (1.2%)
Noninterest expense excluding
goodwill amortization 1,157,696 1,156,009 0.1%
Goodwill amortization - 29,385 (100.0%)
----------- -----------
Income before income taxes 871,829 770,612 13.1%
Income taxes 262,682 234,266 12.1%
----------- -----------
Net income $609,147 $536,346 13.6%
=========== ===========
Earnings per common share $1.70 $1.46 16.4%
Earnings per common share - diluted 1.68 1.45 15.9%
Earnings per common share - diluted
(excl. Goodwill) 1.68 1.52 10.5%
Average common shares outstanding 358,176 367,404
Average common shares outstanding -
diluted 362,329 370,948
End of period common shares
outstanding 353,424 363,035
KEY PERFORMANCE RATIOS
Three Months Ended
----------------------------------
2002
December 31 September 30 June 30
----------- ------------ ---------
Average shareholders' equity to
average total assets 7.73% 7.93% 7.91%
End of period shareholders' equity to
end of period total assets 7.68 7.88 7.99
Loans net of unearned income to
total deposits 100.13 98.70 100.49
Return on average assets (annualized) 1.55 1.60 1.61
Return on average shareholders' equity
(annualized) 20.01 20.19 20.36
Book value per common share $8.82 $8.73 $8.53
Tangible book value per common share $7.96 $7.88 $7.69
Net interest margin - taxable equivalent 4.24% 4.36% 4.61%
Efficiency ratio 50.00 49.45 50.82
Three Months Ended
-------------------
2001
March 31 December 31
--------- ---------
Average shareholders' equity to
average total assets 7.88% 7.81%
End of period shareholders' equity to
end of period total assets 7.82 7.66
Loans net of unearned income to
total deposits 98.99 96.02
Return on average assets (annualized) 1.56 1.47
Return on average shareholders' equity
(annualized) 19.83 18.84
Book value per common share $8.25 $8.14
Tangible book value per common share $7.41 $7.29
Net interest margin - taxable equivalent 4.65% 4.58%
Efficiency ratio 51.60 53.06
YTD
-------------------
2002 2001
December 31 December 31
-------- --------
Average shareholders' equity to
average total assets 7.86% 7.56%
End of period shareholders' equity to
end of period total assets 7.68 7.66
Loans net of unearned income to
total deposits 100.13 96.02
Return on average assets (annualized) 1.58 1.40
Return on average shareholders' equity
(annualized) 20.10 18.56
Book value per common share $8.82 $8.14
Tangible book value per common share $7.96 $7.29
Net interest margin - taxable equivalent 4.46% 4.20%
Efficiency ratio 50.46 53.72
BALANCE SHEET SUMMARY Average Balance
($'s in thousands) Three Months Ended
--------------------------------------
2002
December 31 September 30 June 30
------------ ------------ ------------
Loans net of unearned income $26,817,982 $25,877,960 $25,701,987
Total investment securities(a) 8,523,874 8,436,889 8,294,361
Interest-earning assets(a) 35,911,164 34,935,229 34,392,612
Total assets 39,837,967 38,650,360 37,962,697
Noninterest-bearing deposits 5,050,493 4,892,434 4,852,478
Interest-bearing deposits 21,815,373 21,006,686 20,576,444
Total deposits 26,865,866 25,899,120 25,428,922
Shareholders' equity 3,077,837 3,065,629 3,001,774
Average Balance Percent
Three Months Ended Change
--------------------------- Versus
2001 Prior
March 31 December 31 Year
--------------- ----------------------
Loans net of unearned income $25,272,649 $24,947,167 7.5%
Total investment securities(a) 8,351,004 8,709,483 (2.1%)
Interest-earning assets(a) 34,109,717 34,209,666 5.0%
Total assets 37,783,732 37,877,957 5.2%
Noninterest-bearing deposits 4,830,915 4,729,238 6.8%
Interest-bearing deposits 20,735,520 20,929,524 4.2%
Total deposits 25,566,435 25,658,762 4.7%
Shareholders' equity 2,976,874 2,959,787 4.0%
Average Balance Percent
YTD Change
------------------------ Versus
2002 2001 Prior
December 31 December 31 Year
------------ -------------------------
Loans net of unearned income $25,921,769 $24,763,798 4.7%
Total investment securities(a) 8,402,103 8,711,280 (3.5%)
Interest-earning assets(a) 34,842,384 34,765,480 0.2%
Total assets 38,564,568 38,238,393 0.9%
Noninterest-bearing deposits 4,907,143 4,593,103 6.8%
Interest-bearing deposits 21,036,391 21,323,078 (1.3%)
Total deposits 25,943,534 25,916,181 0.1%
Shareholders' equity 3,030,901 2,889,248 4.9%
(a) Excludes adjustment for market valuation on available-for-sale
securities and certain noninterest-earning marketable equity
securities.
BALANCE SHEET SUMMARY Ending Balance
($'s in thousands) As of
--------------------------------------
2002
December 31 September 30 June 30
------------ ------------ ------------
Loans net of unearned income $27,350,918 $26,286,850 $25,652,908
Total investment securities(b) 8,966,778 8,455,635 8,593,323
Interest-earning assets(b) 36,475,398 35,424,764 34,679,735
Total assets 40,571,272 39,610,727 38,499,103
Noninterest-bearing deposits 5,494,657 5,181,668 4,981,783
Interest-bearing deposits 21,820,967 21,450,134 20,546,753
Total deposits 27,315,624 26,631,802 25,528,536
Shareholders' equity 3,115,997 3,122,747 3,074,263
BALANCE SHEET SUMMARY Ending Balance Percent
($'s in thousands) As of Change
-------------------------- Versus
2001 Prior
March 31 December 31 Year
------------ -------------------------
Loans net of unearned income $25,412,409 $25,124,493 8.9%
Total investment securities(b) 8,634,042 8,728,411 2.7%
Interest-earning assets(b) 34,771,599 34,598,122 5.4%
Total assets 38,223,507 38,600,414 5.1%
Noninterest-bearing deposits 4,850,399 5,280,621 4.1%
Interest-bearing deposits 20,822,393 20,886,396 4.5%
Total deposits 25,672,792 26,167,017 4.4%
Shareholders' equity 2,987,485 2,955,099 5.4%
(b) Excludes adjustment for market valuation on available-for-sale
securities and certain noninterest-earning marketable equity
securities.
LOANS NET OF UNEARNED INCOME Ending Balance
($'s in thousands) As of
--------------------------------------
2002
December 31 September 30 June 30
------------ ------------ ------------
Commercial:
Commercial & industrial $6,931,333 $6,756,011 $6,719,040
Commercial loans secured by
real estate 1,726,362 1,664,831 1,729,042
------------ ------------ ------------
Total commercial 8,657,695 8,420,842 8,448,082
Commercial real estate 4,392,626 4,348,878 4,366,696
Consumer:
Residential first mortgages 2,794,072 2,163,751 1,652,231
Equity loans and lines 6,359,945 6,179,910 5,948,664
Dealer indirect 3,731,364 3,725,620 3,770,161
Revolving credit 541,165 519,326 510,427
Other consumer 874,051 928,523 956,647
------------ ------------ ------------
Total consumer 14,300,597 13,517,130 12,838,130
------------ ------------ ------------
Total loans net of unearned
income $27,350,918 $26,286,850 $25,652,908
============ ============ ============
LOANS NET OF UNEARNED INCOME
($'s in thousands) Ending Balance Percent
As of Change
------------------------ Versus
2001 Prior
March 31 December 31 Year
------------ --------------------
Commercial:
Commercial & industrial $6,775,951 $6,890,989 0.6%
Commercial loans secured by
real estate 1,740,394 1,682,030 2.6%
------------ ------------
Total commercial 8,516,345 8,573,019 1.0%
Commercial real estate 4,384,326 4,501,967 (2.4%)
Consumer:
Residential first mortgages 1,819,727 1,666,287 67.7%
Equity loans and lines 5,649,781 5,404,662 17.7%
Dealer indirect 3,529,131 3,382,092 10.3%
Revolving credit 499,683 519,761 4.1%
Other consumer 1,013,416 1,076,705 (18.8%)
------------ ------------
Total consumer 12,511,738 12,049,507 18.7%
------------ ------------
Total loans net of unearned income $25,412,409 $25,124,493 8.9%
============ ============
NONPERFORMING ASSETS
($'s in thousands)
2002 2001
December 31 September 30 June 30 March 31 December 31
--------- --------- --------- --------- ---------
Nonaccrual loans $158,829 $151,442 $152,684 $158,435 $159,274
Foreclosed properties 33,828 32,567 32,838 29,462 27,443
Repossessions 4,346 4,716 3,982 5,080 4,365
--------- --------- --------- --------- ---------
Total nonperforming
assets $197,003 $188,725 $189,504 $192,977 $191,082
========= ========= ========= ========= =========
Nonperforming assets
to loans net of
unearned income,
foreclosed
properties and
repossessions 0.72% 0.72% 0.74% 0.76% 0.76%
Accruing loans 90
days past due $91,045 $93,700 $91,376 $117,068 $116,576
========= ========= ========= ========= =========
ALLOWANCE FOR LOAN LOSSES
($'s in thousands)
2002 2001
December 31 September 30 June 30 March 31 December 31
--------- --------- --------- --------- ---------
Balance at beginning
of period $379,878 $371,418 $367,819 $363,607 $360,717
Loans charged off (61,334) (53,928) (59,857) (62,806) (60,582)
Recoveries of loans
previously charged
off 9,585 10,988 10,856 10,918 9,872
--------- --------- --------- --------- ---------
Net Charge-offs (51,749) (42,940) (49,001) (51,888) (50,710)
Addition to allowance
charged to expense 53,450 51,400 52,600 56,100 53,600
--------- --------- --------- --------- ---------
Balance at end of
period $381,579 $379,878 $371,418 $367,819 $363,607
========= ========= ========= ========= =========
Allowance for loan
losses to loans net
of unearned income 1.40% 1.45% 1.45% 1.45% 1.45%
Net charge-offs to
average loans net of
unearned income(c) 0.77% 0.66% 0.76% 0.83% 0.81%
Allowance for loan
losses to
nonperforming loans 240.25% 250.84% 243.26% 232.16% 228.29%
Allowance for loan
losses to
nonperforming assets 193.69% 201.29% 195.99% 190.60% 190.29%
(c) Annualized
QUARTERLY AVERAGE DAILY BALANCES, REVENUE
& EXPENSE SUMMARY, YIELDS & RATES Three Months Ended
December 31, 2002
-----------------------------
(Taxable equivalent basis, $'s in Average Revenue/ Yield/
thousands) Balance Expense Rate
-----------------------------
ASSETS
Interest-earning assets:
Loans net of unearned income $26,817,982 $425,125 6.29%
Available-for-sale securities:
Taxable 4,223,650 79,130 7.43%
Tax-free 62,395 1,161 7.38%
------------ ---------
Total available-for-sale securities 4,286,045 80,291 7.43%
------------ ---------
Held-to-maturity securities:
Taxable 3,897,019 57,102 5.81%
Tax-free 340,810 6,288 7.32%
------------ ---------
Total 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 35,911,164 571,368 6.31%
Cash and other assets 4,120,379
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 demand deposits $11,240,091 25,667 0.91%
Savings deposits 1,302,920 1,185 0.36%
Time deposits 6,461,664 56,989 3.50%
Foreign time deposits 675,778 1,795 1.05%
Certificates of deposit of $100,000 or
more 2,134,920 16,864 3.13%
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 3.86%
======
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 384,225 4.24%
======
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 $372,037
=========
QUARTERLY AVERAGE DAILY BALANCES,
REVENUE & EXPENSE SUMMARY, YIELDS &
RATES Three Months Ended
September 30, 2002
-----------------------------
(Taxable equivalent basis, $'s in Average Revenue/ Yield/
thousands) Balance Expense Rate
-----------------------------
ASSETS
Interest-earning assets:
Loans net of unearned income $25,877,960 $426,248 6.53%
Available-for-sale securities:
Taxable 4,256,356 84,266 7.85%
Tax-free 64,756 1,252 7.67%
------------ ---------
Total available-for-sale securities 4,321,112 85,518 7.85%
------------ ---------
Held-to-maturity securities:
Taxable 3,773,509 60,081 6.32%
Tax-free 342,268 6,416 7.44%
------------ ---------
Total held-to-maturity securities 4,115,777 66,497 6.41%
------------ ---------
Total investment securities 8,436,889 152,015 7.15%
Other interest-earning assets 620,380 4,263 2.73%
------------ ---------
Total interest-earning assets 34,935,229 582,526 6.62%
Cash and other assets 3,914,917
Allowance for loan losses (377,708)
Market valuation on AFS securities 177,922
------------
$38,650,360
============
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Interest-bearing demand deposits $10,572,606 30,668 1.15%
Savings deposits 1,309,966 1,878 0.57%
Time deposits 6,462,647 59,145 3.63%
Foreign time deposits 482,911 1,668 1.37%
Certificates of deposit of $100,000 or
more 2,178,556 18,140 3.30%
Federal funds purchased and securities
sold under agreements to repurchase 1,973,865 7,452 1.50%
Other interest-bearing liabilities 6,406,880 79,613 4.93%
------------ ---------
Total interest-bearing liabilities 29,387,431 198,564 2.68%
--------- ------
Net interest spread 3.94%
======
Noninterest-bearing demand deposits 4,892,434
Other liabilities 1,304,866
Shareholders' equity 3,065,629
------------
$38,650,360
============
Net interest income/margin on a taxable
equivalent basis 383,962 4.36%
======
Taxable equivalent adjustment:
Loans 7,428
Available-for-sale securities 1,152
Held-to-maturity securities 4,032
---------
Total taxable equivalent adjustment 12,612
---------
Net interest income $371,350
=========
QUARTERLY AVERAGE DAILY BALANCES,
REVENUE & EXPENSE SUMMARY, YIELDS &
RATES Three Months Ended
December 31, 2001
-----------------------------
(Taxable equivalent basis, $'s in Average Revenue/ Yield/
thousands) Balance Expense Rate
-----------------------------
ASSETS
Interest-earning assets:
Loans net of unearned income $24,947,167 $463,816 7.38%
Available-for-sale securities:
Taxable 4,404,328 84,852 7.64%
Tax-free 79,009 1,580 7.93%
------------ ---------
Total available-for-sale securities 4,483,337 86,432 7.65%
------------ ---------
Held-to-maturity securities:
Taxable 3,884,256 64,628 6.60%
Tax-free 341,890 6,401 7.43%
------------ ---------
Total held-to-maturity securities 4,226,146 71,029 6.67%
------------ ---------
Total investment securities 8,709,483 157,461 7.17%
Other interest-earning assets 553,016 5,711 4.10%
------------ ---------
Total interest-earning assets 34,209,666 626,988 7.27%
Cash and other assets 3,841,728
Allowance for loan losses (359,404)
Market valuation on AFS securities 185,967
------------
$37,877,957
============
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Interest-bearing demand deposits $10,298,075 36,367 1.40%
Savings deposits 1,227,991 2,347 0.76%
Time deposits 6,991,178 78,340 4.45%
Foreign time deposits 360,579 1,430 1.57%
Certificates of deposit of $100,000 or
more 2,051,701 23,334 4.51%
Federal funds purchased and securities
sold under agreements to repurchase 2,035,112 8,239 1.61%
Other interest-bearing liabilities 6,164,694 82,086 5.28%
------------ ---------
Total interest-bearing liabilities 29,129,330 232,143 3.16%
--------- ------
Net interest spread 4.11%
======
Noninterest-bearing demand deposits 4,729,238
Other liabilities 1,059,602
Shareholders' equity 2,959,787
------------
$37,877,957
============
Net interest income/margin on a taxable
equivalent basis 394,845 4.58%
======
Taxable equivalent adjustment:
Loans 13,951
Available-for-sale securities 1,277
Held-to-maturity securities 3,987
---------
Total taxable equivalent adjustment 19,215
---------
Net interest income $375,630
=========
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.
AVERAGE DAILY BALANCES, REVENUE &
EXPENSE SUMMARY, YIELDS & RATES
Year-To-Date
December 31, 2002
(Taxable equivalent basis, $'s in -------------------------------
thousands) Average Revenue/ Yield/
Balance Expense Rate
------------ ----------- ------
ASSETS
Interest-earning assets:
Loans net of unearned income $25,921,769 $1,717,818 6.63%
Available-for-sale securities:
Taxable 4,251,715 335,083 7.88%
Tax-free 67,399 5,244 7.78%
------------ -----------
Total available-for-sale securities 4,319,114 340,327 7.88%
------------ -----------
Held-to-maturity securities:
Taxable 3,741,238 235,749 6.30%
Tax-free 341,751 25,574 7.48%
------------ -----------
Total held-to-maturity securities 4,082,989 261,323 6.40%
------------ -----------
Total investment securities 8,402,103 601,650 7.16%
Other interest-earning assets 518,512 16,740 3.23%
------------ -----------
Total interest-earning assets 34,842,384 2,336,208 6.71%
Cash and other assets 3,941,255
Allowance for loan losses (374,340)
Market valuation on AFS securities 155,269
------------
$38,564,568
============
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Interest-bearing demand deposits $10,706,524 114,290 1.07%
Savings deposits 1,300,563 6,769 0.52%
Time deposits 6,481,688 241,013 3.72%
Foreign time deposits 467,926 5,894 1.26%
Certificates of deposit of $100,000 or
more 2,079,690 70,727 3.40%
Federal funds purchased and securities
sold under agreements to repurchase 2,012,721 27,693 1.38%
Other interest-bearing liabilities 6,341,991 315,090 4.97%
------------ -----------
Total interest-bearing liabilities 29,391,103 781,476 2.66%
----------- ------
Net interest spread 4.05%
======
Noninterest-bearing demand deposits 4,907,143
Other liabilities 1,235,421
Shareholders' equity 3,030,901
------------
$38,564,568
============
Net interest income/margin on a taxable
equivalent basis 1,554,732 4.46%
======
Taxable equivalent adjustment:
Loans 30,459
Available-for-sale securities 4,705
Held-to-maturity securities 15,854
-----------
Total taxable equivalent adjustment 51,018
-----------
Net interest income $1,503,714
===========
AVERAGE DAILY BALANCES, REVENUE &
EXPENSE SUMMARY, YIELDS & RATES
Year-To-Date
December 31, 2001
(Taxable equivalent basis, $'s in -------------------------------
thousands) Average Revenue/ Yield/
Balance Expense Rate
------------ ----------- ------
ASSETS
Interest-earning assets:
Loans net of unearned income $24,763,798 $2,001,444 8.08%
Available-for-sale securities:
Taxable 4,204,448 324,128 7.71%
Tax-free 86,312 6,725 7.79%
------------ -----------
Total available-for-sale securities 4,290,760 330,853 7.71%
------------ -----------
Held-to-maturity securities:
Taxable 4,077,180 274,209 6.73%
Tax-free 343,340 25,422 7.40%
------------ -----------
Total held-to-maturity securities 4,420,520 299,631 6.78%
------------ -----------
Total investment securities 8,711,280 630,484 7.24%
Other interest-earning assets 1,290,402 66,303 5.14%
------------ -----------
Total interest-earning assets 34,765,480 2,698,231 7.76%
Cash and other assets 3,738,404
Allowance for loan losses (375,904)
Market valuation on AFS securities 110,413
------------
$38,238,393
============
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Interest-bearing demand deposits $9,999,114 253,996 2.54%
Savings deposits 1,218,198 15,714 1.29%
Time deposits 7,508,706 407,071 5.42%
Foreign time deposits 321,620 9,813 3.05%
Certificates of deposit of $100,000 or
more 2,275,440 125,919 5.53%
Federal funds purchased and securities
sold under agreements to repurchase 2,194,659 72,888 3.32%
Other interest-bearing liabilities 6,280,175 354,255 5.64%
------------ -----------
Total interest-bearing liabilities 29,797,912 1,239,656 4.16%
----------- ------
Net interest spread 3.60%
======
Noninterest-bearing demand deposits 4,593,103
Other liabilities 958,130
Shareholders' equity 2,889,248
------------
$38,238,393
============
Net interest income/margin on a
taxable equivalent basis 1,458,575 4.20%
======
Taxable equivalent adjustment:
Loans 42,642
Available-for-sale securities 4,999
Held-to-maturity securities 16,050
-----------
Total taxable equivalent adjustment 63,691
-----------
Net interest income $1,394,884
===========
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 $100,000 or more and other interest-bearing liabilities
are included in other liabilities.
NONINTEREST REVENUES
($'s in thousands) Three Months Ended
----------------------------------
2002
December 31 September 30 June 30
----------- ------------ ---------
Service charges on deposit accounts $78,873 $77,672 $67,551
Trust income 24,829 25,357 27,373
Consumer investment services income 16,329 18,912 21,641
Bank owned life insurance 13,629 14,587 15,046
Bankcard income 6,550 6,475 6,163
Mortgage income 6,691 7,112 4,469
Interchange income 16,971 16,418 16,165
Portfolio income 5,541 4,267 4,136
Other noninterest revenues 22,821 17,536 18,584
----------- ------------ ---------
Noninterest revenues $192,234 $188,336 $181,128
=========== ============ =========
Percent
NONINTEREST REVENUES Three Months Ended Change
($'s in thousands) --------------------- Versus
2001 Prior
March 31 December 31 Year
---------- -----------------
Service charges on deposit accounts $65,130 $66,961 17.8%
Trust income 27,869 26,940 (7.8%)
Consumer investment services income 20,911 23,023 (29.1%)
Bank owned life insurance 16,637 13,453 1.3%
Bankcard income 5,804 5,774 13.4%
Mortgage income 5,876 12,594 (46.9%)
Interchange income 13,875 15,123 12.2%
Portfolio income 3,567 3,389 63.5%
Other noninterest revenues 17,994 18,667 22.3%
---------- ---------
Noninterest revenues $177,663 $185,924 3.4%
========== =========
Percent
YTD Change
--------------------- Versus
2002 2001 Prior
December 31 December 31 Year
----------- -----------------
Service charges on deposit accounts $289,226 $258,089 12.1%
Trust income 105,428 112,078 (5.9%)
Consumer investment services income 77,793 95,387 (18.4%)
Bank owned life insurance 59,899 53,846 11.2%
Bankcard income 24,992 21,454 16.5%
Mortgage income 24,148 32,627 (26.0%)
Interchange income 63,429 56,581 12.1%
Portfolio income 17,511 13,191 32.7%
Other noninterest revenues 76,935 104,969 (26.7%)
----------- ---------
Noninterest revenues $739,361 $748,222 (1.2%)
=========== =========
NONINTEREST EXPENSES
($'s in thousands) Three Months Ended
----------------------------------
2002
December 31 September 30 June 30
----------- ------------ ---------
Salaries and employee benefits $154,229 $151,482 $152,824
Net occupancy expense 30,530 30,011 29,474
Equipment expense 29,030 30,155 30,115
Marketing expense 8,941 8,903 8,719
Postage and supplies expense 11,972 11,973 12,192
Communications expense 5,491 5,788 8,257
Professional fees 7,447 8,074 8,804
Other noninterest expenses 40,598 36,610 42,410
----------- ------------ ---------
Noninterest expenses excluding
amortization of goodwill 288,238 282,996 292,795
Goodwill amortization - - -
----------- ------------ ---------
Noninterest expenses $288,238 $282,996 $292,795
=========== ============ =========
NONINTEREST EXPENSES
($'s in thousands) Percent
Three Months Ended Change
------------------ Versus
2001 Prior
March 31 December 31 Year
--------- ------------------
Salaries and employee benefits $156,803 $151,949 1.5%
Net occupancy expense 28,533 29,295 4.2%
Equipment expense 29,429 32,128 (9.6%)
Marketing expense 9,046 8,271 8.1%
Postage and supplies expense 12,954 12,974 (7.7%)
Communications expense 8,902 9,202 (40.3%)
Professional fees 6,726 8,746 (14.9%)
Other noninterest expenses 41,274 48,249 (15.9%)
--------- ---------
Noninterest expenses excluding
amortization of goodwill 293,667 300,814 (4.2%)
Goodwill amortization - 7,328 (100.0%)
--------- ---------
Noninterest expenses $293,667 $308,142 (6.5%)
========= =========
NONINTEREST EXPENSES
($'s in thousands)
Percent
YTD Change
----------------------- Versus
2002 2001 Prior
December 31 December 31 Year
----------- --------------------
Salaries and employee benefits $615,338 $594,450 3.5%
Net occupancy expense 118,548 113,174 4.7%
Equipment expense 118,729 122,621 (3.2%)
Marketing expense 35,609 34,812 2.3%
Postage and supplies expense 49,091 49,472 (0.8%)
Communications expense 28,438 40,484 (29.8%)
Professional fees 31,051 28,433 9.2%
Other noninterest expenses 160,892 172,563 (6.8%)
----------- -----------
Noninterest expenses excluding
amortization of goodwill 1,157,696 1,156,009 0.1%
Goodwill amortization - 29,385 (100.0%)
----------- -----------
Noninterest expenses $1,157,696 $1,185,394 (2.3%)
=========== ===========
INTANGIBLE ASSETS
($'s in thousands)
Ending Balance
As of Percent
------------------------------------------------- Change Prior
2002 2001 Versus
December 31 September 30 June 30 March 31 December 31 Prior
Year
--------- --------- --------- --------- -----------------
Goodwill $288,365 $288,365 $288,365 $288,365 $288,365 0.0%
Core deposit
and other
intangibles 13,535 14,760 15,984 17,334 18,696 (27.6%)
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