Commercial Federal Reports First Quarter Earnings of $23.1 Million.Business Editors OMAHA Omaha, city, United States Omaha (ō`məhä, –hô), city (1990 pop. 335,795), seat of Douglas co., E Nebr., on the west bank of the Missouri River; inc. 1857. , Neb.--(BUSINESS WIRE)--April 24, 2003 Commercial Federal Corporation today announced net income of $0.51 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 or $23.1 million, for the quarter ended March 31, 2003, compared to net income of $0.61 per diluted share or $28.0 million for the same period a year ago. Results for the period reflect compression compression, external stress applied to an object or substance, tending to cause a decrease in volume (see pressure). Gases can be compressed easily, solids and liquids to a very small degree if at all. in the net interest margin brought about by the prolonged pro·long tr.v. pro·longed, pro·long·ing, pro·longs 1. To lengthen in duration; protract. 2. To lengthen in extent. low interest rate environment. In the first half of 2002 the Company benefited from declining costs on deposits and borrowings. Since that time, the net interest margin has continued to decrease as more assets continue to re-price at lower rate levels. 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 A. Fitzgerald, chairman of the board and chief executive officer stated, "Despite the protracted pro·tract tr.v. pro·tract·ed, pro·tract·ing, pro·tracts 1. To draw out or lengthen in time; prolong: disputants who needlessly protracted the negotiations. 2. low interest rate environment's impact, operationally, Commercial Federal had a solid quarter with good underlying growth in many of our key loan and deposit categories." Mr. Fitzgerald also stated, "Performance of our core banking units remains on target. We continue to execute To run a program, which causes the computer to carry out its instructions. See executable code, instruction and EXE file. execute - execution on our strategic plan to grow core deposits and higher margin loans, taking advantage of growth opportunities in our strong markets. The long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. drivers of value will be expanding our customer base and changing the mix in our balance sheet, adding higher margin loans and core deposits. The Company will continue to position itself to achieve its long-term growth objectives while managing the challenges presented in the near-term near-term adj. Of, for, or involving a short period of time in the near future. by the low level of interest rates." Key Growth Indicators: -- Core deposit balances increased $430 million or 12% year over year -- Commercial operating loans average outstanding up 29% year over year -- Home equity loans up 9% year over year -- Checking account growth 4% year over year Chief Financial Officer David S. Fisher fisher, name of a large North American marten, Martes pennanti. This carnivorous, largely arboreal mammal is found in hardwood forests of Canada, the extreme N United States, and mountain ranges of the W United States. stated, "For the first quarter, the growth numbers in our key benchmarks extend the very positive trends established last year. Deposit growth in checking and savings has been strong. We have seen good growth in our commercial operating and consumer loan portfolios on a year over year basis as well. Record mortgage volumes continued with loan production reaching $1.8 billion in the first quarter of 2003, up 85% year over year." Mr. Fisher concluded, "While Commercial Federal's core business continues to be strong, earnings for the balance of 2003 will be challenged by the compression in net interest margin and declining net interest income as the weakness in the economy continues. These conditions will not alter our emphasis on adding to our customer base and growing revenues in order to achieve our long-term performance goals." Results for the Quarter: Net Interest Income Net interest income totaled $74.8 million for the first quarter, down 7% from the fourth quarter of 2002 and 12% from the first quarter of 2002. The net interest spread for the quarter fell to 2.56%, compared with 2.94% for the same period last year and 2.67% in the prior quarter. The Company's net interest margin continued to compress as the rate on the Company's 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 declined 25 basis points, while the rate on the Company's interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid liabilities fell by only 14 basis points from the prior quarter ended December December: see month. 31, 2002. Further interest rate reductions during 2003 would place additional pressure on the Company's net interest margin. With interest rates at 40-year lows, management has intentionally in·ten·tion·al adj. 1. Done deliberately; intended: an intentional slight. See Synonyms at voluntary. 2. Having to do with intention. maintained an interest rate risk profile that is asset sensitive. Credit Risk Management Overall credit quality remained stable with net loan charge-offs for the quarter down significantly to $4.5 million, compared with $13.1 million for 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. were up 6% for the first quarter following an 8% decline in the previous quarter. For the quarter ended March 31, 2003, total nonperforming assets were $120.6 million, compared with $114.0 million and $117.7 million at December 31, and March 31, 2002. The majority of the change in nonperforming loans for the quarter was in the residential and commercial construction categories relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc a few specific borrowers. Total NPAs represented 0.90% of total assets at March 31, 2003. During the first quarter, the Company continued to increase its allowance for loan losses by adding a provision of $7.1 million. At March 31, 2003, the allowance for loan losses totaled $108.9 million, compared with $106.3 million and $102.6 million at December 31, and March 31, 2002. Noninterest Income The Company's retail and mortgage banking operations continued to generate strong results in the first quarter. For the quarter ended March 31, 2003, retail fees totaled $13.5 million compared with $12.4 million for the first quarter of 2002, a 9% increase on a year over year basis. The mortgage banking operations includes activities associated with the Company's mortgage servicing Mortgage servicing The collection of monthly payments and penalties, record keeping, payment of insurance and taxes, and possible settlement of default , involved with a mortgage loan. and mortgage banking operations, offset by the amortization of and valuation adjustments related to its mortgage servicing rights asset. During the first quarter 2003, the Company recorded an impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. adjustment of $13.5 million, and the amortization expense of existing mortgage servicing rights was $12.1 million. The Company offset this impairment and amortization by realizing $19.0 million in pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta gains on the sales of securities and changes in fair values of hedging hedging, in commerce, method by which traders use two counterbalancing investment strategies so as to minimize any losses caused by price fluctuations. It is generally used by traders on the commodities market. instruments. In addition, the gain on the sale of loans for the quarter totaled $5.5 million. Overall, this net activity contributed $9.9 million to pre-tax revenue for the quarter, compared to $16.9 million for the quarter ended December 31, 2002. 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. Expenses remained on target for the quarter ended March 31, 2003. Total administrative expenses totaled $66.6 million, compared to $72.7 million for the previous quarter. Expenses are expected to increase approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 1% per quarter for the remainder of the year. Balance Sheet and Capital Ratios Total assets at March 31, 2003 were $13.3 billion, compared with $13.1 billion and $12.7 billion at December 31, and March 31, 2002. Core deposit balances, including checking, money market and savings accounts Savings Account A deposit account intended for funds that are expected to stay in for the short term. A savings account offers lower returns than the market rates. Notes: grew by $282 million or 8% for the quarter. At March 31, 2003, stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. increased to $758.4 million after spending $10.3 million on our 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. Stockholders' equity was $756.5 million at December 31, 2002. The capital ratios of the Company's banking subsidiary continued to exceed regulatory requirements Regulatory requirements are part of the process of drug discovery and drug development. Regulatory requirements describe what is necessary for a new drug to be approved for marketing in any particular country. for classification as "well-capitalized," the highest 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. standard. The five million-share buyback Buyback The buying back of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies will buyback shares either to increase the value of shares still available (reducing supply), or to eliminate any threats by shareholders who may program announced in November November: see month. 2002 was started in the first quarter with a total of 464,400 shares repurchased. The Company has 4.8 million shares remaining in its share repurchase authorizations. As of March 31, 2003, shares outstanding totaled 44,808,282. Commercial Federal Corporation (NYSE NYSE See: New York Stock Exchange :CFB CFB Canadian Forces Base ) is the parent company of Commercial Federal Bank, a $13.3 billion federal savings bank Noun 1. federal savings bank - a federally chartered savings bank FSB savings bank - a thrift institution in the northeastern United States; since deregulation in the 1980s they offer services competitive with many commercial banks that currently operates branches located in Nebraska Nebraska (nəbrăs`kə), Great Plains state of the central United States. It is bordered by Iowa and Missouri, across the Missouri R. (E), Kansas (S), Colorado (SW), Wyoming (NW), and South Dakota (N). , Iowa, Colorado Colorado, state, United States Colorado (kŏlərăd`ə, –răd`ō, –rä`dō), state, W central United States, one of the Rocky Mt. states. , Kansas, Oklahoma Kansas is a town in Delaware County, Oklahoma, United States. The population was 685 at the 2000 census. Geography Kansas is located at (36.202423, -94.795122)GR1. , Missouri Missouri, state, United States Missouri (mĭz  r`ē, –ə), one of the midwestern states of the United States. and Arizona Arizona (âr'əzō`nə), state in the southwestern United States. It is bordered by Utah (N), New Mexico (E), Mexico (S), and, across the Colorado R., Nevada and California (W). . Commercial Federal operations include
consumer and commercial banking services including mortgage origination OriginationThe 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 and servicing, commercial and industrial lending, small business banking, construction lending, cash management, insurance and investment services, and Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the banking. Commercial Federal's Web site, http://www.comfedbank.com, will host a live webcast of the investor conference call to discuss first quarter results on Thursday Thursday: see week. , April 24, 2003 at 10:30 a.m. Central Time. The site also includes access to company news releases, annual reports, quarterly financial statements, and SEC filings. Certain statements contained in this release are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. in nature. These statements are subject to risks and uncertainties that could cause Commercial Federal's actual results or financial condition to differ materially from those expressed in or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such statements. Factors of particular importance to Commercial Federal include, but are not limited to, changes in general economic conditions, changes in interest rates, changes in regulations or accounting methods, and price levels and conditions in the public securities markets generally.
COMMERCIAL FEDERAL CORPORATION
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
(Dollars in Thousands)
----------------------------------------------------------------------
March 31, December 31, March 31,
ASSETS 2003 2002 2002
----------------------------------------------------------------------
Cash (including short-term
investments of $842, $505 and
$392) $223,129 $200,581 $149,697
Investment securities available
for sale, at fair value 1,271,810 1,296,050 1,090,650
Mortgage-backed securities
available for sale, at fair
value 1,588,715 1,632,622 1,826,708
Loans held for sale, net 1,013,067 868,569 472,029
Loans receivable, net of
allowances of $108,857,
$106,148 and $102,287 7,808,986 7,703,016 7,831,457
Federal Home Loan Bank stock 264,028 283,193 250,554
Foreclosed real estate 41,316 40,008 45,459
Premises and equipment, net 143,904 148,374 153,161
Bank owned life insurance 232,262 228,958 217,937
Other assets 557,290 495,014 519,104
Core value of deposits, net of
accumulated amortization of
$62,817, $61,268 and $56,533 20,816 22,365 27,100
Goodwill 162,717 162,717 162,717
----------------------------------------------------------------------
Total Assets $13,328,040 $13,081,467 $12,746,573
----------------------------------------------------------------------
LIABILITIES AND STOCKHOLDERS'
EQUITY
----------------------------------------------------------------------
Liabilities:
Deposits $6,740,117 $6,439,041 $6,282,480
Advances from Federal Home
Loan Bank 4,770,335 4,848,997 4,905,581
Other borrowings 569,943 603,306 540,409
Other liabilities 489,290 433,602 272,609
----------------------------------------------------------------------
Total Liabilities 12,569,685 12,324,946 12,001,079
----------------------------------------------------------------------
Commitments and Contingencies - - -
----------------------------------------------------------------------
Stockholders' Equity:
Preferred stock, $.01 par
value; 10,000,000 shares
authorized; none issued - - -
Common stock, $.01 par value;
120,000,000 shares
authorized; 44,808,282,
45,270,360 and 45,258,495
shares issued and
outstanding 448 453 453
Additional paid-in capital 51,837 61,712 63,441
Retained earnings 816,909 797,778 729,523
Accumulated other
comprehensive loss, net (110,839) (103,422) (47,923)
----------------------------------------------------------------------
Total Stockholders' Equity 758,355 756,521 745,494
----------------------------------------------------------------------
Total Liabilities and
Stockholders' Equity $13,328,040 $13,081,467 $12,746,573
----------------------------------------------------------------------
Certain amounts in prior periods have been reclassified for
comparative purposes to conform to the March 31, 2003 presentation.
COMMERCIAL FEDERAL CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars in Thousands Except Per Share Data)
----------------------------------------------------------------------
Three Months Ended
March 31, December 31, March 31,
------------------------------------
2003 2002 2002
----------------------------------------------------------------------
Interest Income:
Investment securities $17,576 $18,554 $19,119
Mortgage-backed securities 16,447 19,885 26,858
Loans receivable 142,351 151,573 152,039
----------------------------------------------------------------------
Total interest
income 176,374 190,012 198,016
Interest Expense:
Deposits 39,614 42,043 48,804
Advances from Federal Home
Loan Bank 56,920 60,989 58,894
Other borrowings 5,012 6,597 5,735
----------------------------------------------------------------------
Total interest
expense 101,546 109,629 113,433
Net Interest Income 74,828 80,383 84,583
Provision for Loan Losses (7,146) (9,731) (6,589)
----------------------------------------------------------------------
Net Interest Income After
Provision for Loan Losses 67,682 70,652 77,994
Other Income (Loss):
Retail fees and charges 13,503 14,344 12,408
Loan servicing fees, net (1,025) (318) 2,836
Mortgage servicing rights
valuation adjustment (13,528) (9,585) 529
Gain (loss) on sales of
securities and changes
in fair values of
derivatives, net 19,000 12,268 (4,843)
Gain on sales of loans 5,480 14,537 3,439
Bank owned life insurance 3,304 3,857 3,345
Other operating income 5,656 4,593 7,876
----------------------------------------------------------------------
Total other income 32,390 39,696 25,590
Other Expense:
General and administrative
expenses -
Compensation and benefits 30,813 28,116 28,495
Occupancy and equipment 10,436 10,448 9,326
Data processing 4,675 4,614 4,434
Advertising 4,130 4,446 2,915
Communication 3,414 3,581 3,056
Item processing 3,469 3,560 3,461
Outside services 2,391 3,078 3,638
Foreclosed real estate,
net 1,381 2,105 1,442
Other operating expenses 5,923 12,711 5,799
----------------------------------------------------------------------
Total general and
administrative
expenses 66,632 72,659 62,566
Amortization of core value
of deposits 1,549 1,549 1,633
----------------------------------------------------------------------
Total other
expense 68,181 74,208 64,199
----------------------------------------------------------------------
Income Before Income Taxes 31,891 36,140 39,385
Income Tax Provision 8,760 9,861 11,402
----------------------------------------------------------------------
Net Income $23,131 $26,279 $27,983
----------------------------------------------------------------------
Per Diluted Common Share:
Net Income $.51 $.58 $.61
----------------------------------------------------------------------
Dividends Declared Per Common
Share $.09 $.09 $.08
----------------------------------------------------------------------
Weighted Average Shares
Outstanding 45,421,360 45,485,399 45,910,702
----------------------------------------------------------------------
Certain amounts in prior periods have been reclassified for
comparative purposes to conform to the March 31, 2003 presentation.
COMMERCIAL FEDERAL CORPORATION
MORTGAGE SERVICING RIGHTS AND MORTGAGE BANKING OPERATIONS
(Dollars in Thousands)
----------------------------------------------------------------------
Three Months Ended
March 31, December 31, March 31,
-------------------------------------
2003 2002 2002
----------------------------------------------------------------------
Mortgage Servicing Rights:
Beginning balance $88,353 $74,214 $114,146
Mortgage servicing rights
retained through loan
sales 16,753 18,511 9,614
Purchases of mortgage
servicing rights 6,758 15,925 -
Amortization expense (12,062) (10,712) (6,668)
------------ ------------ -----------
Balance before valuation
adjustments 99,802 97,938 117,092
Valuation adjustments (13,528) (9,585) 529
------------ ------------ -----------
Ending balance $86,274 $88,353 $117,621
============ ============ ===========
Fair value at the periods
ended $86,274 $89,078 $124,841
============ ============ ===========
Valuation allowances $93,586 $80,058 $19,112
============ ============ ===========
Mortgage servicing rights as a
percentage of servicing
portfolio 0.73% 0.77% 1.23%
============ ============ ===========
Mortgage servicing rights as a
multiple of servicing fees 2.28x 2.39x 3.74x
============ ============ ===========
----------------------------------------------------------------------
Loans Serviced for Other
Institutions:
Beginning balance $11,531,755 $9,773,436 $9,488,658
Additions to portfolio 1,220,373 1,412,803 619,235
Purchases of loans to
service 559,688 1,776,291 -
Loan payments (1,457,944) (1,427,804) (581,686)
Other items, net (5,814) (2,971) (1,714)
------------ ------------ -----------
Ending balance $11,848,058 $11,531,755 $9,524,493
============ ============ ===========
Weighted average servicing
fee 0.32% 0.32% 0.33%
============ ============ ===========
Weighted average coupon
note rate 6.66% 6.82% 7.16%
============ ============ ===========
----------------------------------------------------------------------
Components of Mortgage Banking
Activities:
Loan servicing fees $11,037 $10,394 $9,504
Amortization of mortgage
servicing rights (12,062) (10,712) (6,668)
------------ ------------ -----------
Loan servicing fees, net (1,025) (318) 2,836
Mortgage servicing rights
valuation adjustment (13,528) (9,585) 529
Gain (loss) on sales of
securities and changes in
fair values of
deriviatives, net 19,000 12,268 (4,843)
------------ ------------ -----------
Mortgage servicing
rights valuation
adjustment, net 5,472 2,683 (4,314)
Gain on sales of loans 5,480 14,537 3,439
------------ ------------ -----------
Total mortgage banking
activities $9,927 $16,902 $1,961
============ ============ ===========
----------------------------------------------------------------------
COMMERCIAL FEDERAL CORPORATION
DEPOSITS AND LOANS
(In Thousands)
----------------------------------------------------------------------
March 31, December 31, March 31,
2003 2002 2002
----------------------------------------------------------------------
Deposits by State:
Colorado $2,049,818 $2,015,845 $2,102,105
Nebraska 1,934,980 1,740,421 1,340,506
Iowa 1,030,771 982,714 1,031,185
Kansas 659,169 659,671 688,143
Oklahoma 556,166 555,275 614,044
Missouri 299,507 287,587 291,934
Arizona 209,706 197,528 192,950
Minnesota - - 21,613
----------- ------------ -----------
Total deposits $6,740,117 $6,439,041 $6,282,480
=========== ============ ===========
Deposits by Type:
Checking accounts -
Interest bearing $510,597 $494,847 $502,946
Noninterest bearing 1,108,285 974,483 654,099
----------- ------------ -----------
Total checking 1,618,882 1,469,330 1,157,045
Money market accounts 740,292 505,679 294,450
Savings accounts 1,516,231 1,618,593 1,994,326
----------- ------------ -----------
Total core
deposits 3,875,405 3,593,602 3,445,821
Certificates of deposit -
non core 2,864,712 2,845,439 2,836,659
----------- ------------ -----------
Total deposits $6,740,117 $6,439,041 $6,282,480
=========== ============ ===========
----------------------------------------------------------------------
Loans Receivable, before
allowance for losses:
Single-family fixed $1,765,371 $1,874,930 $2,171,465
Single-family adjustable 1,966,394 1,905,272 1,978,372
----------- ------------ -----------
Total single-family 3,731,765 3,780,202 4,149,837
Commercial real estate 1,517,022 1,503,213 1,347,636
Construction (net of LIP) 587,280 568,170 567,638
Multi-family 287,788 273,072 327,684
Commercial operating 260,109 187,647 167,650
Consumer and other 1,533,879 1,496,860 1,373,299
----------- ------------ -----------
Total loans receivable,
before allowance for losses $7,917,843 $7,809,164 $7,933,744
=========== ============ ===========
----------------------------------------------------------------------
COMMERCIAL FEDERAL CORPORATION
ALLOWANCE FOR LOSSES ON LOANS
(In Thousands)
----------------------------------------------------------------------
March 31, December 31, March 31,
2003 2002 2002
----------------------------------------------------------------------
THREE MONTHS ENDED:
-------------------
Beginning balance $106,291 $109,724 $102,451
Provision charged to operations 7,146 9,731 6,589
Charge-offs (7,295) (14,550) (8,002)
Recoveries 2,810 1,430 1,572
Change in estimate of allowance for
bulk purchased loans (32) (44) (29)
----------------------------------------------------------------------
Ending balance $108,920 $106,291 $102,581
----------------------------------------------------------------------
Summary of charge-offs, net of recoveries:
------------------------------------------
Three months ended $(4,485) $(13,120) $(6,430)
========= ============ =========
----------------------------------------------------------------------
Allocation of allowance:
------------------------
Specific $4,616 $3,561 $9,430
Special problem 35,661 35,766 34,117
Nonspecific 68,643 66,964 59,034
--------- ------------ ---------
$108,920 $106,291 $102,581
========= ============ =========
----------------------------------------------------------------------
COMMERCIAL FEDERAL CORPORATION
NONPERFORMING ASSETS AND LOANS
(Dollars in Thousands)
----------------------------------------------------------------------
March 31, December 31, March 31,
2003 2002 2002
----------------------------------------------------------------------
Nonperforming Assets:
Nonperforming loans:
Residential real
estate $42,012 $43,939 $47,101
Residential
construction 6,276 2,455 2,543
Commercial real
estate 14,037 15,306 14,100
Commercial
construction 4,130 2,584 235
All other 7,832 8,130 5,139
------------ ------------ ------------
Total nonperforming
loans 74,287 72,414 69,118
------------ ------------ ------------
Real estate:
Residential 13,045 14,648 14,056
Residential
construction 25,003 22,810 23,442
Commercial 3,268 2,550 4,091
Commercial
construction - - 3,870
------------ ------------ ------------
Total real estate 41,316 40,008 45,459
------------ ------------ ------------
Troubled debt
restructurings:
Residential - - 82
Commercial 4,972 1,547 3,021
------------ ------------ ------------
Total troubled debt
restructurings 4,972 1,547 3,103
------------ ------------ ------------
Total nonperforming assets $120,575 $113,969 $117,680
============ ============ ============
Total assets $13,328,040 $13,081,467 $12,746,573
============ ============ ============
Nonperforming assets to total
assets .90% .87% .92%
============ ============ ============
Summary of Nonperforming
Assets:
Residential $86,336 $83,852 $87,224
Nonresidential 34,239 30,117 30,456
------------ ------------ ------------
$120,575 $113,969 $117,680
============ ============ ============
----------------------------------------------------------------------
Nonperforming loans to loans
receivable (excluding loans
held for sale) (1) .94% .93% .87%
Nonperforming loans to total
loans (including loans held
for sale) (2) .83% .83% .82%
Nonperforming assets to total
assets .90% .87% .92%
Allowance for loan losses to:
Loans receivable
(excluding loans held for
sale) (1) 1.38% 1.36% 1.29%
Total loans (including
loans held for sale) (2) 1.22% 1.22% 1.22%
Nonperforming assets 90.33% 93.26% 87.17%
Total nonperforming loans 146.62% 146.78% 148.41%
Nonresidential
nonperforming assets 318.12% 352.93% 336.82%
----------------------------------------------------------------------
(1) Ratios are calculated based on the net book value of loans
receivable before deducting allowance for loan losses.
(2) Ratios are calculated based on the net book value of total loans,
including loans held for sale, before deducting allowance for loan
losses.
COMMERCIAL FEDERAL CORPORATION
SUMMARY OF CONSOLIDATED FINANCIAL HIGHLIGHTS AND RATIOS
(Dollars in Thousands Except Per Share Data)
----------------------------------------------------------------------
March 31, December 31, March 31,
2003 2002 2002
----------------------------------------------------------------------
Cash, investment securities and
FHLB stock $1,758,967 $1,779,824 $1,490,901
Mortgage-backed securities 1,588,715 1,632,622 1,826,708
Loans held for sale, net 1,013,067 868,569 472,029
Loans receivable, net 7,808,986 7,703,016 7,831,457
Intangible assets 183,533 185,082 189,817
Other assets 974,772 912,354 935,661
Total assets 13,328,040 13,081,467 12,746,573
----------------------------------------------------------------------
Deposits 6,740,117 6,439,041 6,282,480
Advances from Federal Home Loan
Bank 4,770,335 4,848,997 4,905,581
Other borrowings 569,943 603,306 540,409
Other liabilities 489,290 433,602 272,609
Stockholders' equity 758,355 756,521 745,494
Total liabilities and
stockholders' equity 13,328,040 13,081,467 12,746,573
----------------------------------------------------------------------
Book value per common share $16.92 $16.71 $16.47
Stock price $21.72 $23.35 $26.90
Common shares outstanding 44,808,282 45,270,360 45,258,495
Weighted average shares
outstanding 45,421,360 45,485,399 45,910,702
----------------------------------------------------------------------
Nonperforming assets $120,575 $113,969 $117,680
Nonperforming assets to total
assets .90% .87% .92%
Weighted average interest rates
(durings):
Yield on interest-earning
assets 5.98% 6.23% 6.83%
Rate on interest-bearing
liabilities 3.42% 3.56% 3.89%
Net interest rate spread 2.56% 2.67% 2.94%
Net yield on interest-
earning assets 2.53% 2.64% 2.91%
Loans serviced for other
institutions $11,848,058 $11,531,755 $9,524,493
----------------------------------------------------------------------
Three months ended:
--------------------------------
Return on average assets .71% .78% .87%
Return on average equity 12.09% 14.27% 15.17%
Average equity to average assets 5.84% 5.49% 5.74%
G & A expenses to average assets 2.03% 2.17% 1.95%
Operating efficiency ratio 62.15% 60.51% 56.79%
----------------------------------------------------------------------
COMMERCIAL FEDERAL CORPORATION
AVERAGE BALANCES AND REGULATORY CAPITAL
(Dollars in Thousands)
----------------------------------------------------------------------
March 31, December 31, September 30,
2003 2002 2002
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Three Months Ended:
-------------------
Average Balances:
Total assets $13,101,428 $13,408,194 $13,511,423
Total loans, net 8,668,060 8,851,961 8,865,656
Total loans, before allowances 8,773,891 8,960,880 8,971,536
Total mortgage-backed
securities 1,584,690 1,741,933 1,797,775
Total deposits 6,465,854 6,277,235 6,186,698
Total stockholders' equity 765,112 736,489 783,612
Total interest-earning assets 11,825,331 12,191,686 12,205,340
Total interest-bearing
liabilities 11,947,339 12,286,057 12,296,090
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June 30, March 31,
2002 2002
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Three Months Ended:
-------------------
Average Balances:
Total assets $12,924,321 $12,846,461
Total loans, net 8,447,815 8,381,332
Total loans, before allowances 8,550,402 8,484,475
Total mortgage-backed securities 1,834,009 1,832,143
Total deposits 6,256,952 6,313,508
Total stockholders' equity 776,414 737,862
Total interest-earning assets 11,703,685 11,625,386
Total interest-bearing liabilities 11,815,264 11,741,746
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Three Months Year Year
Ended Ended Ended
Year to Date: 3/31/03 12/31/02 12/31/01
------------- --------------------------------------
Average Balances:
Total assets $13,101,428 $13,175,562 $12,857,135
Total loans, net 8,668,060 8,638,609 8,782,321
Total loans, before allowances 8,773,891 8,743,759 8,872,003
Total mortgage-backed
securities 1,584,690 1,799,174 1,690,967
Total deposits 6,465,854 6,258,302 7,122,069
Total stockholders' equity 765,112 758,659 798,889
Total interest-earning assets 11,825,331 11,931,794 11,724,847
Total interest-bearing
liabilities 11,947,339 12,034,963 11,704,421
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March 31, December September June 30, March 31,
31, 30,
Regulatory Capital: 2003 2002 2002 2002 2002
------------------- -------------------------------------------------
Tangible $768,827 $743,048 $752,804 $723,100 $702,648
Core 760,612 734,870 746,244 715,665 705,428
Total risk-based 900,175 871,408 882,768 846,021 847,013
Tier 1 risk-based 760,612 734,870 746,244 715,665 705,428
Tangible % 5.88% 5.81% 5.71% 5.60% 5.60%
Core % 5.82% 5.75% 5.67% 5.61% 5.62%
Total risk-based % 10.92% 10.92% 10.88% 10.77% 11.37%
Tier 1 risk-based % 9.23% 9.21% 9.20% 9.11% 9.47%
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