Citizens Banking Corporation First Quarter Results.Business Editors FLINT flint, mineral flint, variety of quartz that commonly occurs in rounded nodules and whose crystal structure is not visible to the naked eye. Flint is dark gray, smoky brown, or black in color; pale gray flint is called chert. , Mich.--(BUSINESS WIRE)--April 15, 2002 Citizens Banking Corporation (Nasdaq:CBCF CBCF Canadian Breast Cancer Foundation CBCF Congressional Black Caucus Foundation CBCF Community Based Corrections Facilities CBCF Commander, Base Communications Facility ) Highlights Include: -- Earnings per share up 3.9% -- Mortgage fee income increases 92% -- Operating expenses decrease 2.4% -- Net interest margin improves Citizens Banking Corporation announced net income of $24,103,000 for the quarter ended March 31, 2002, compared to $23,805,000 for the same quarter of 2001. 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. net income per share was $0.53, up 3.9% from $0.51 for the same quarter of 2001. Returns on average assets and average equity for the quarter ended March 31, 2002 were 1.29% and 13.94%, respectively, compared with 1.17% and 14.03%, respectively, in 2001. Last year's first quarter net income included gains on sale of securities of $2.2 million ($1.4 million after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. ) as a result of balance sheet restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). initiatives. Balance Sheet Citizens' total assets as of March 31, 2002, were $7.482 billion, compared to $7.679 billion at December December: see month. 31, 2001, a decrease of 2.6%. Total loans declined $200 million from year end as Citizens continued to sell current mortgage production into the secondary market during this low interest rate environment. Lower total asset balances compared to first quarter of 2001 primarily reflect Citizens' restructuring efforts and reduced loan demand from a soft economy. "During a time when many companies' accounting practices are being questioned, it is important to point out that Citizens has no off-balance sheet special purpose entities, no unconsolidated subsidiaries, limited other off-balance sheet exposure and no material derivative derivative: see calculus. derivative In mathematics, a fundamental concept of differential calculus representing the instantaneous rate of change of a function. contracts," commented William William, crown prince of Germany William or Frederick William, 1882–1951, crown prince of Germany, son of William II. In World War I he commanded (1914) an army on the Western Front and was nominal commander in the German attack R. Hartman Hartman may refer to: Surname
v. To moderate in force or intensity. mit  i·ga tion n. its interest rate risk and remain well-capitalized," Mr.
Hartman continued.Net Interest Margin and Net Interest Income Net interest margin was 4.45% for the first quarter 2002, up from 4.10% for the same quarter in 2001 and consistent with 4.48% in the fourth quarter of 2001. The improvement over the first quarter of 2001 resulted primarily from a 200 basis point decline in Citizens' 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. . The decline in the cost of funds was due to a lower interest rate environment and balance sheet restructuring efforts throughout 2001. Despite the improvement in net interest margin, net interest income declined 0.9% due to a lower level of earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin . Noninterest Income Noninterest income before securities gains was $24,724,000 an increase of 10.2% compared to the same period in 2001. Mortgage loan income increased $1.9 million (or 92%) due to higher origination Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real volume and gains realized upon the sale of new mortgage production. Brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. and investment fees increased 9.7% from first quarter 2001 while trust fees declined 11.6% during the same period. Trust fees were down $637,000, due to a lower level of assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. , continued weak equity markets and competitive factors. Expense Control Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. for the quarter decreased 2.4%, or $1,520,000 from first quarter 2001 levels. Intangible asset Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. amortization declined $1,650,000 or 61.4% from the same quarter of the prior year due to the adoption of a new accounting standard that eliminates goodwill amortization as an ongoing operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. . In addition to goodwill amortization, operating expenses for equipment, occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy , data processing data processing or information processing, operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a services and bankcard bank·card n. A card issued by a bank authorizing the holder to receive bank services and often functioning as a debit card. fees declined from the first quarter 2001. Compensation expenses increased 2.2% and professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. increased 19% from the first quarter 2001, partially offsetting the decline in all other categories. The increase in professional services was due to higher loan collection and recruiting costs, as well as cost associated with revenue enhancement revenue enhancement An increase in revenues, especially by way of increased taxes. Revenue enhancement includes reducing taxpayer deductions and eliminating tax credits. strategies. The costs associated with revenue enhancement strategies will be offset by higher noninterest income in future periods. Credit Quality Net loans charged off during the first quarter were $5.1 million, or 37 basis points of average loans (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. ). The allowance for loan losses increased to 1.43% at March 31, 2002, compared to 1.39% at year end 2001. 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. were $80.1 million at March 31, 2002, an increase from $79.2 million at the end of fourth quarter and $73.5 million at the end of first quarter of 2001. Nonperforming assets as a percent of total assets increased slightly to 1.07% at March 31, 2002 from 1.03% in the fourth quarter of 2001 and 0.90% for March 31, 2001. Other News William R. Hartman joined Citizens on February February: see month. 25, 2002, as president and CEO. Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. J. Vitito will remain as chairman of the board until his retirement in February 2003. Prior to joining Citizens, Mr. Hartman served as chairman and CEO of Bank One, NA - Ohio and Kentucky Kentucky, state, United States Kentucky (kəntŭk`ē, kĭn–), one of the so-called border states of the S central United States. It is bordered by West Virginia and Virginia (E); Tennessee (S); the Mississippi R. . He also served as chairman and CEO of Bank One, Lexington Lexington. 1 City (1990 pop. 225,366), seat of Fayette co., N central Ky., in the heart of the bluegrass region; inc. 1832, made coextensive with Fayette co. 1974. , NA. Prior to its acquisition by Bank One he held the position of chairman and CEO of First Security Bank of Kentucky. Additionally, he held the responsibility of president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. at Bank One, Dayton Dayton, city (1990 pop. 182,044), seat of Montgomery co., SW Ohio, on the Great Miami River where it is joined by the Stillwater River; inc. 1805. It is the trade center for a fertile farm area, but is best known for its involvement with industry, invention, and , NA. He spent 13 years with Corestates Financial Corporation and Hamilton Hamilton, city, Bermuda Hamilton, city (1990 est. pop. 3,100), capital of Bermuda, on Bermuda Island. It is a port at the head of Great Sound, a huge lagoon and deepwater harbor protected by coral reefs. Bank, Lancaster Lancaster, city, England Lancaster (lăng`kəstər), city (1991 pop. 43,902) and district, county seat of Lancashire, NW England, on the Lune River. PA, which was acquired by Corestates in 1983. In February, Citizens announced that it and two of its largest banking subsidiaries, Citizens Bank, Michigan Michigan (mĭsh`ĭgən), upper midwestern state of the United States. It consists of two peninsulas thrusting into the Great Lakes and has borders with Ohio and Indiana (S), Wisconsin (W), and the Canadian province of Ontario (N,E). , and F&M Bank-Wisconsin, have requested and received ratings from Moody's Investors Service Moody's Investors Service A leading global credit rating, research and risk analysis firm. Moody's Investors Service A leading firm engaged in credit rating, risk analysis, and research of fixed-income securities and their issuers. . Both banks are rated "A3" (long term) and "P-2" (short term) and have Bank Financial Strength Ratings of "C", and the Corporation's long and short term ratings are "Baa1" and "P-2", respectively. CB Wealth Management, NA, Citizens' new trust bank, began operations on March 1, 2002, in Michigan, with the conversion of existing trust accounts under the management of Citizens Bank's trust division to the new subsidiary. The trust bank will provide greater opportunities to increase client services, trust products and noninterest income for Citizens in the future. Effective March 2002, three of Citizens' Corporate Directors retired from the board. Hugo HUGO - A bytecode-interpreted transaction handler from Geac. E. Braun Braun , Eva 1912-1945. German lover and later wife of Adolf Hitler. They began living together in 1936, but the liaison was kept secret, and she was never seen in public with him. They were married hours before their double suicide on April 30, 1945. , Jr., William J. Hank hank n. 1. A coil or loop. 2. Nautical A ring on a stay attached to the head of a jib or staysail. 3. A looped bundle, as of yarn. , and Charles Charles, archduke of Austria Charles, 1771–1847, archduke of Austria; brother of Holy Roman Emperor Francis II. Despite his epilepsy, he was the ablest Austrian commander in the French Revolutionary and Napoleonic wars; however, he was handicapped by R. Weeks were honored hon·or n. 1. High respect, as that shown for special merit; esteem: the honor shown to a Nobel laureate. 2. a. Good name; reputation. b. for their years of service and contributions to the company at the Director's meeting in January January: see month. . During the first quarter of 2002 Citizens repurchased a total of 226,100 shares of its stock through its share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program. Since the plan was announced in October October: see month. 2001, Citizens has repurchased 413,800 shares at an average price of $32.29. Earnings Outlook Consistent with the previous earnings outlook, Citizens is anticipating full-year 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 growth in the four to six percent range, including the $0.12 per share benefit from the change in accounting for goodwill, from 2001 per share earnings of $2.25. Corporate Profile Citizens Banking Corporation is a 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 providing a full range of commercial, consumer, mortgage banking, trust and financial planning Financial planning Evaluating the investing and financing options available to a firm. Planning includes attempting to make optimal decisions, projecting the consequences of these decisions for the firm in the form of a financial plan, and then comparing future performance against services to a broad client base. Citizens operates 197 branch, private banking, and financial center locations throughout Michigan, Wisconsin Wisconsin, state, United States Wisconsin (wĭskŏn`sən, –sĭn), upper midwestern state of the United States. It is bounded by Lake Superior and the Upper Peninsula of Michigan, from which it is divided by the Menominee , Iowa and in suburban Chicago Chicago, city, United States Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. , Illinois Illinois, river, United States Illinois, river, 273 mi (439 km) long, formed by the confluence of the Des Plaines and Kankakee rivers, NE Ill., and flowing SW to the Mississippi at Grafton, Ill. It is an important commercial and recreational waterway. . 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 Discussions in this release that are not statements of historical fact (including statements in the "Earnings Outlook" or future tense future tense n. A verb tense expressing future time. Noun 1. future tense - a verb tense that expresses actions or states in the future future of those statements which include terms such as "believe", "expect", and "anticipate") 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. that involve risks and uncertainties, and the Corporation's actual future results could materially differ from those discussed. Factors that could cause or contribute to such differences include, but are not limited to, the Corporation's future lending and collections experience, the inability to complete announced acquisition transactions, the effects of acquisitions and the ability to integrate acquired operations, market acceptance of the Corporation's products and services, competition from other institutions, changes in the banking industry and its regulation, needs for technological change, and other factors, including those which are discussed in the Corporation's filings with the Securities and Exchange Commission. (Financial highlights follow) Visit our Web site at www.CitizensOnline.com
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Consolidated Balance Sheets (Unaudited)
Citizens Banking Corporation and Subsidiaries
March 31, December 31,
(in thousands) 2002 2001(1)
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Assets
Cash and due from banks $ 162,231 $ 224,416
Money market investments:
Federal funds sold 42 891
Interest-bearing deposits with banks 32,865 3,455
----------- -----------
Total money market investments 32,907 4,346
Securities available-for-sale:
Taxable 917,360 864,516
Nontaxable 429,155 433,180
----------- -----------
Total securities 1,346,515 1,297,696
Mortgage loans held for sale 109,912 150,443
Loans 5,612,699 5,771,963
Less: Allowance for loan losses (80,425) (80,299)
----------- -----------
Net loans 5,532,274 5,691,664
Premises and equipment 127,838 128,805
Goodwill 54,785 54,785
Other intangible assets 23,422 24,620
Other assets 92,408 102,100
----------- -----------
Total assets $ 7,482,292 $ 7,678,875
=========== ===========
Liabilities and Shareholders' Equity
Noninterest-bearing deposits $ 810,792 $ 903,900
Interest-bearing deposits 5,049,990 5,061,226
----------- -----------
Total deposits 5,860,782 5,965,126
Federal funds purchased
and securities sold
under agreements to repurchase 150,161 233,077
Other short-term borrowings 50,559 81,353
Other liabilities 90,669 72,756
Long-term debt 630,147 629,099
----------- -----------
Total liabilities 6,782,318 6,981,411
Shareholders' Equity
Preferred stock - no par value:
Common stock - no par value: 151,023 155,720
Retained earnings 532,889 521,191
Other accumulated comprehensive net income 16,062 20,553
----------- -----------
Total shareholders' equity 699,974 697,464
----------- -----------
Total liabilities and
shareholders' equity $ 7,482,292 $ 7,678,875
=========== ===========
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(1) Certain amounts have been reclassified to conform with current
year presentation.
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Consolidated Statements of Income (Unaudited)
Citizens Banking Corporation and Subsidiaries
Three Months Ended
(in thousands, March 31,
except per share amounts) 2002 2001
----------------------------------------------------------
Interest Income
Interest and fees on loans $100,163 $133,820
Interest and dividends on
investment securities:
Taxable 12,369 17,107
Nontaxable 5,384 5,331
Money market investments 359 300
-------- --------
Total interest income 118,275 156,558
-------- --------
Interest Expense
Deposits 34,570 60,879
Short-term borrowings 965 12,046
Long-term debt 7,781 8,013
-------- --------
Total interest expense 43,316 80,938
-------- --------
Net Interest Income 74,959 75,620
Provision for loan losses 5,250 4,049
-------- --------
Net interest income after
provision for loan losses 69,709 71,571
-------- --------
Noninterest Income
Service charges on deposit accounts 6,632 6,703
Trust fees 4,858 5,495
Mortgage and other loan income 4,025 2,094
Bankcard fees 2,758 2,906
Brokerage and investment fees 2,050 1,868
Investment securities gains 2 2,219
Other 4,401 3,376
-------- --------
Total noninterest income 24,726 24,661
-------- --------
Noninterest Expense
Salaries and employee benefits 32,200 31,518
Equipment 4,858 4,954
Occupancy 4,615 4,927
Data processing services 3,125 3,175
Professional services 2,835 2,382
Bankcard fees 2,082 2,288
Intangible asset amortization 1,039 2,689
Other 10,437 10,778
-------- --------
Total noninterest expense 61,191 62,711
-------- --------
Income Before Income Taxes 33,244 33,521
Income taxes 9,141 9,716
-------- --------
Net Income $ 24,103 $ 23,805
======== ========
Net Income Per Share:
Basic $ 0.53 $ 0.51
Diluted 0.53 0.51
Average Shares Outstanding:
Basic 45,062 46,476
Diluted 45,642 46,944
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Selected Quarterly Information
Citizens Banking Corporation and Subsidiaries
1st Qtr 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr
2002 2001 2001 2001 2001
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Summary of Operations
(thousands)
Interest income $118,275 $129,335 $140,406 $147,260 $156,558
Interest expense 43,316 51,659 62,146 70,835 80,938
Net interest income 74,959 77,676 78,260 76,425 75,620
Provision for
loan losses 5,250 7,496 8,500 6,362 4,049
Net interest income
after provision for
loan losses 69,709 70,180 69,760 70,063 71,571
Noninterest income
before securities
gains (losses) 24,724 25,599 34,658 28,587 22,442
Investment securities
gains (losses) 2 423 49 3,504 2,219
Noninterest expense 61,191 60,586 64,270 63,616 62,711
Income taxes 9,141 9,874 12,235 11,390 9,716
Net income 24,103 25,742 27,962 27,148 23,805
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At Period End (millions)
Total assets $ 7,482 $ 7,679 $ 7,715 $ 7,924 $ 8,199
Total earning assets 7,102 7,224 7,304 7,450 7,754
Total loans 5,723 5,922 5,982 6,110 6,183
Total deposits 5,861 5,965 5,890 5,922 6,118
Total shareholders'
equity 700 697 721 707 702
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Average Balances (millions)
Total assets $ 7,565 $ 7,701 $ 7,809 $ 7,977 $ 8,264
Total earning assets 7,157 7,287 7,388 7,557 7,816
Total loans 5,770 5,919 6,025 6,169 6,329
Total deposits 5,924 5,930 5,944 6,007 6,155
Total shareholders'
equity 701 708 713 700 688
Shareholders'
equity/assets 9.27% 9.19% 9.13% 8.78% 8.33%
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Credit Quality
Statistics (thousands)
Nonaccrual loans $ 67,998 $ 68,793 $ 66,875 $ 75,067 $ 67,258
Loans 90 or more days
past due and still
accruing 3,176 4,168 4,665 4,460 872
Restructured loans 336 337 171 625 954
-------- -------- -------- -------- --------
Total nonperforming
loans 71,510 73,298 71,711 80,152 69,084
Other repossessed
assets acquired (ORAA) 8,600 5,947 7,325 5,315 4,440
-------- -------- -------- -------- --------
Total nonperforming
assets $ 80,110 $ 79,245 $ 79,036 $ 85,467 $ 73,524
======== ======== ======== ======== ========
Allowance for loan
losses ratio 1.43% 1.39% 1.39% 1.35% 1.32%
Allowance for
loan losses as a
percent of
nonperforming assets 100.39 101.33 102.93 95.18 109.45
Allowance for
loan losses as a
percent of
nonperforming loans 112.47 109.55 113.45 101.50 116.48
Nonperforming assets
as a percent of
loans plus ORAA 1.43 1.37 1.35 1.42 1.20
Nonperforming assets
as a percent of
total assets 1.07 1.03 1.02 1.08 0.90
Net loans charged off
as a percent of
average loans
(annualized) 0.37 0.57 0.57 0.36 0.24
Net loans charged
off (000) $ 5,124 $ 8,312 $ 8,496 $ 5,481 $ 3,649
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Per Common Share Data
Net Income (loss):
Basic $ 0.53 $ 0.57 $ 0.60 $ 0.59 $ 0.51
Diluted 0.53 0.56 0.60 0.58 0.51
Dividends 0.275 0.275 0.275 0.275 0.26
Market Value:
High $ 33.20 $ 34.02 $ 32.75 $ 30.55 $ 29.38
Low 30.67 27.70 27.30 24.51 23.69
Close 32.47 32.88 32.08 29.25 26.69
Book value 15.55 15.46 15.77 15.27 15.13
Shares outstanding,
end of period (000) 45,028 45,098 45,742 46,273 46,428
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Performance Ratios (annualized)
Net interest
margin (FTE) 4.45% 4.48% 4.44% 4.26% 4.10%
Return on
average assets 1.29 1.33 1.42 1.37 1.17
Return on average
shareholders' equity 13.94 14.42 15.56 15.56 14.03
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Financial Summary and Comparison
Citizens Banking Corporation and Subsidiaries
March 31
2002 2001 % Change
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Summary of Operations (thousands)
Interest income $118,275 $156,558 (24.5)%
Interest expense 43,316 80,938 (46.5)
Net interest income 74,959 75,620 (0.9)
Provision for loan losses 5,250 4,049 29.7
Net interest income after
provision for loan losses 69,709 71,571 (2.6)
Noninterest income before
securities gains (losses) 24,724 22,442 10.2
Investment securities
gains (losses) 2 2,219 --
Noninterest expense 61,191 62,711 (2.4)
Income taxes 9,141 9,716 (5.9)
Net income 24,103 23,805 1.3
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At Period End (millions)
Total assets $ 7,482 $ 8,199 (8.7)%
Total earning assets 7,102 7,754 (8.4)
Total loans 5,723 6,183 (7.4)
Total deposits 5,861 6,118 (4.2)
Total shareholders' equity 700 702 (0.3)
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Average Balances (millions)
Total assets $ 7,565 $ 8,264 (8.5)%
Total earning assets 7,157 7,816 (8.4)
Total loans 5,770 6,329 (8.8)
Total deposits 5,924 6,155 (3.8)
Total shareholders' equity 701 688 1.9
Shareholders' equity / assets 9.27 % 8.33 % 11.3
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Per Common Share Data
Net Income:
Basic $ 0.53 $ 0.51 3.9%
Diluted 0.53 0.51 3.9
Dividends 0.275 0.260 5.8
Market Value:
High $ 33.20 $ 29.38 13.0
Low 30.67 23.69 29.5
Close 32.47 26.69 21.7
Book value 15.55 15.13 2.8
Tangible book value per share 13.81 13.23 4.4
Shares outstanding,
end of period (000) 45,028 46,428 (3.0)
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Performance Ratios (annualized)
Net interest margin (FTE) (1) 4.45% 4.10% 8.5%
Return on average assets 1.29 1.17 10.3
Return on average
shareholders' equity 13.94 14.03 (0.6)
Net loans charged off
as a percent of average loans 0.37 0.24 54.2
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(1) Average rates are presented on an annual basis and include taxable
equivalent adjustments to interest income of $3,640,000 and
$3,714,000 for the three months ended March 31, 2002 and 2001,
respectively, based on a tax rate of 35%.
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Noninterest Income and Noninterest Expenses (Unaudited)
Citizens Banking Corporation and Subsidiaries
Quarter Ended
-------------------------------------------
Mar 31 Dec 31 Sept 30 Jun 30 Mar 31
(in thousands) 2002 2001 2001 2001 2001
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NONINTEREST INCOME:
Service charges
on deposit accounts $ 6,632 $ 6,929 $ 6,960 $ 7,181 $ 6,703
Trust fees 4,858 5,168 5,096 5,269 5,495
Mortgage and
other loan income 4,025 3,764 2,840 4,461 2,094
Bankcard fees 2,758 2,767 2,922 3,204 2,906
Brokerage and
investment fees 2,050 2,224 2,030 2,035 1,868
Other 4,401 3,954 3,793 3,814 3,376
-------- -------- -------- -------- --------
Total fees and
other income 24,724 24,806 23,641 25,964 22,442
Investment securities
gains (losses) 2 423 49 245 106
-------- -------- -------- -------- --------
Total before
nonrecurring items 24,726 25,229 23,690 26,209 22,548
Gain on sale
of NYCE stock --- --- 11,017 --- ---
Gain on securitized
mortgages --- --- --- 3,259 2,113
Gain on sale of
credit card assets --- --- --- 2,623 ---
Gain on sale of bank --- 793 --- --- ---
-------- -------- -------- -------- --------
TOTAL NONINTEREST
INCOME $ 24,726 $ 26,022 $ 34,707 $ 32,091 $ 24,661
======== ======== ======== ======== ========
OPERATING EXPENSES:
Salaries and employee
benefits $ 32,200 $ 30,930 $ 32,304 $ 31,526 $ 31,518
Equipment 4,858 4,631 4,655 5,077 4,954
Occupancy 4,615 4,159 4,174 4,453 4,927
Data processing services 3,125 3,142 3,496 3,288 3,175
Professional services 2,835 3,219 3,646 3,030 2,382
Bankcard fees 2,082 2,130 2,334 2,556 2,288
Intangible asset
amortization 1,039 2,900 2,704 2,770 2,689
Other 10,437 9,475 10,957 10,916 10,778
-------- -------- -------- -------- --------
TOTAL NONINTEREST
EXPENSES $ 61,191 $ 60,586 $ 64,270 $ 63,616 $ 62,711
======== ======== ======== ======== ========
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Average Balances, Yields and Rates
Three Months Ended
--------------------------------------------------
03/31/2002 12/31/2001 03/31/2001
--------------------------------------------------
Average Average Average Average Average Average
(in thousands) Balance Rate(1) Balance Rate(1) Balance Rate(1)
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Earning Assets
Money market
investments $ 86,079 1.67% $ 52,114 2.36% $ 23,509 5.11%
Investment
securities(2):
Taxable 842,657 5.87 839,488 6.06 1,025,718 6.67
Tax-exempt 419,629 7.89 424,402 7.94 407,877 8.04
Mortgage loans
held for sale 147,181 7.37 133,150 7.97 58,647 7.22
Loans:
Commercial 3,340,999 6.56 3,363,455 7.15 3,491,068 8.64
Real estate 807,369 7.07 911,792 7.13 1,218,698 7.60
Direct consumer 817,145 8.12 818,361 8.34 854,778 9.81
Indirect consumer 657,138 8.34 692,355 8.51 706,244 8.84
--------- --------- ---------
Total earning
assets 7,118,197 6.92 7,235,117 7.31 7,786,539 8.31
Nonearning Assets
Cash and due
from banks 187,363 201,848 207,724
Investment security
fair value
adjustment 39,004 52,238 29,871
Other nonearning
assets 301,076 293,034 320,629
Allowance for
loan losses (80,933) (80,938) (80,849)
---------- ---------- ----------
Total assets $7,564,707 $7,701,299 $8,263,914
========== ========== ==========
Interest-Bearing
Liabilities
Deposits:
Demand deposits $1,068,838 1.57 $ 929,179 1.75 $ 571,321 1.58
Savings deposits 1,368,753 1.19 1,395,095 1.49 1,587,539 3.17
Time deposits 2,631,974 4.07 2,729,388 4.55 3,108,385 6.03
Short-term
borrowings 232,045 1.69 325,218 3.22 800,410 6.09
Long-term debt 628,399 5.02 640,379 5.21 538,566 6.03
--------- --------- ---------
Total
interest-bearing
liabilities 5,930,009 2.96 6,019,259 3.41 6,606,221 4.97
Noninterest-Bearing
Liabilities and
Shareholders'
Equity
Demand deposits 854,106 876,690 887,642
Other liabilities 79,994 97,488 81,652
Shareholders' equity 700,598 707,862 688,399
--------- --------- ---------
Total liabilities
and shareholders'
equity $7,564,707 $7,701,299 $8,263,914
========== ========== ==========
Net Interest Spread 3.96% 3.90% 3.34%
Net Interest Income
as a Percent of
Earning Assets 4.45% 4.48% 4.10%
----------------------------------------------------------------------
(1) Average rates are presented on an annual basis and include taxable
equivalent adjustments to interest income.
(2) For presentation in this table, average balances and the
corresponding average rates for investment securities are based
upon historical cost, adjusted for amortization of premiums and
accretion of discounts.
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