Commercial Federal Reports Second Quarter EPS of $0.51.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)--July 26, 2001 Commercial Federal Corporation (NYSE NYSE See: New York Stock Exchange :CFB CFB Canadian Forces Base ), the parent company of Commercial Federal Bank, one of the largest retail financial institutions in the Midwest Midwest or Middle West, region of the United States centered on the western Great Lakes and the upper-middle Mississippi valley. It is a somewhat imprecise term that has been applied to the northern section of the land between the Appalachians , today announced net income of $26.4 million, or $.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, for the quarter ended June June: see month. 30, 2001, compared to $24.3 million, or $.43 per diluted share, for the quarter ended June 30, 2000. This represents an increase of 19 percent in earnings per share over the three-month period ended June 30, 2000, and 21 percent over the first quarter of 2001. For the first six month period ending June 30, 2001, net income totaled $48.6 million, or $.93 per diluted share, compared to net income of $50.8 million, or $.89 per diluted share, for the six-month period ended June 30, 2000. Reflecting Commercial Federal's streamlining, operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before for the second quarter totaled $23.8 million, compared to $24.1 million for the three-month period ended June 30, 2000. On an earnings-per-share basis, second quarter 2001 operating earnings were $.46 per diluted share, up 7 percent from $.43 per diluted share for the three-month period ended June 30, 2000. The Company repurchased 1,192,700 shares of common stock during the second quarter of 2001. 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, "We are very pleased to exceed consensus earnings estimates for the second consecutive quarter since completing the majority of our 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. Commercial Federal is committed to delivering consistently solid earnings growth, and these results reaffirm re·af·firm tr.v. re·af·firmed, re·af·firm·ing, re·af·firms To affirm or assert again. re the successful implementation of our operational strategy. "Equally rewarding is the investment community's recognition of our efforts - the value of Commercial Federal's stock is up over 20 percent in 2001 and is trading near its 52-week high." Mr. Fitzgerald concluded, "Looking ahead, we are confident in our ability to achieve sustainable earnings per share growth and enhanced shareholder value." Highlights of the Quarter Net Interest Income Net interest income totaled $75.3 million for the second quarter, an improvement of $3.5 million over the prior quarter. Net interest margin spread was up thirteen basis points for the second quarter. Asset Quality Total assets declined to $12.6 billion from $12.7 billion at March 31, 2001, and 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 $843.9 million from $835.8 million in the first quarter. The Company remained well capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. with total risk-based capital of 10.80 percent at June 30, 2001. Non-performing assets closed for the quarter at $138.6 million. Total NPAs represented 1.10 percent of total assets. Net charge-offs of $4.0 million, excluding the write-offs of specific reserves, were flat compared to the previous quarter. Loan loss reserves increased approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $2.0 million for the quarter. Operating Efficiency The operating efficiency ratio, excluding nonrecurring Non`re`cur´ring a. 1. Nonrecurrent; as, the costs of a layoff are considered as a nonrecurring expense s>. items, improved to 56.14 percent from 62.08 percent at the end of the first quarter. Excluding effects of nonrecurring items, total general and administrative expenses were up $146,000 from the first quarter and down $4.4 million from the same period a year ago. Fees and Deposits Retail banking fees continued to increase, up $1.6 million, or 13 percent compared to the first quarter. For the six-month period ending June 30, 2001, retail banking fees were up 14 percent over the same period last year. Total deposits declined $506 million for the quarter, including $110 million in deposits sold through the branch divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). initiative and $76 million in brokered certificates of deposit. The additional run-off run-off n (in contest, election) → desempate m (= extra race); carrera de desempate run-off n (in contest, election) → was in the higher costing certificate of deposit portfolio and was part of the business plan. Branch Divestiture At second quarter end, the Company operated 221 branches compared to 255 branches as of June 30, 2000 and 241 as of December December: see month. 31, 2000. During the quarter, the Company recorded a non-recurring pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta gain of $4.8 million on the sale of eight branches. This gain is excluded from operating earnings. In July July: see month. 2001, five additional branches have been sold with the balance of 23 branch sales to be completed in this calendar year. Capital Management The Company repurchased 1,192,700 shares of common stock during the second quarter. Through July 17, 2001, shares totaling 5,314,700 were repurchased as part of the 5.5 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 August 2000. The Company plans to complete this repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. by August 15, 2001 and begin the repurchase of an additional 5 million shares as approved by the Board in May 2001. Outlook 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, "Second quarter results were ahead of target and provide additional confidence in the growth we project for the remainder of the year and into 2002. Every initiative undertaken has achieved its goal in the timeframe established. Key fundamentals of net interest margin, retail fee income, and loan originations 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. were all improved in the quarter with credit quality remaining unchanged." Mr. Fisher concluded, "We continue to improve core earnings from on-going Adj. 1. on-going - currently happening; "an ongoing economic crisis" ongoing current - occurring in or belonging to the present time; "current events"; "the current topic"; "current negotiations"; "current psychoanalytic theories"; "the ship's current position" operations as we move away from the one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. and restructuring-related items and concentrate our efforts on running and improving the Company's daily business. We are confident we can meet the current projected consensus operating earnings per share estimates for 2001. We are building the Company for 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. value and consistent earnings per share growth." Commercial Federal Corporation is the parent company of Commercial Federal Bank, a $12.6 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. , 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). , and Minnesota Minnesota, state, United StatesMinnesota (mĭn'ĭsō`tə), upper midwestern state of the United States. It is bordered by Lake Superior and Wisconsin (E), Iowa (S), South Dakota and North Dakota (W), and the Canadian provinces . Commercial Federal operations include consumer and commercial banking, mortgage banking, agricultural lending, 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 July 26, 2001 at 10:00 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, and price levels and conditions in the public securities markets generally.
COMMERCIAL FEDERAL CORPORATION
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
(Dollars in Thousands)
----------------------------------------------------------------------
June 30, March 31, June 30,
ASSETS 2001 2001 2000
----------------------------------------------------------------------
(Unaudited) (Unaudited) (Audited)
Cash (including short-term
investments of $5,183,
$1,183 and $1,086) $ 176,788 $ 176,300 $ 199,566
Investment securities available
for sale, at fair value 881,301 821,100 70,478
Mortgage-backed securities
available for sale, at fair
value 1,572,037 1,555,117 362,756
Loans and leases held for sale,
net 372,733 470,901 183,356
Investment securities held to
maturity (fair value of
$857,786) -- -- 922,689
Mortgage-backed securities held
to maturity (fair value of
$835,095) -- -- 857,382
Loans receivable, net of
allowances of $84,821, $83,594
and $70,497 8,387,530 8,540,727 10,224,336
Federal Home Loan Bank stock 211,052 197,302 255,756
Real estate, net 54,780 58,580 39,129
Premises and equipment, net 160,390 164,231 181,692
Bank owned life insurance 207,607 204,133 --
Other assets 422,953 351,410 265,048
Intangible assets, net of
accumulated amortization of
$78,541, $74,544 and $66,496 198,923 203,260 230,850
----------------------------------------------------------------------
Total Assets $12,646,094 $12,743,061 $13,793,038
----------------------------------------------------------------------
LIABILITIES AND STOCKHOLDERS'
EQUITY
----------------------------------------------------------------------
Liabilities:
Deposits $ 7,135,451 $ 7,641,095 $ 7,330,500
Advances from Federal Home
Loan Bank 4,076,440 3,718,940 5,049,582
Other borrowings 328,004 273,560 206,026
Other liabilities 262,278 273,652 218,952
----------------------------------------------------------------------
Total Liabilities 11,802,173 11,907,247 12,805,060
----------------------------------------------------------------------
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;
50,583,104, 51,717,331 and
55,922,884 shares issued and
outstanding 506 517 559
Additional paid-in capital 196,685 222,576 303,635
Retained earnings 663,624 641,274 699,724
Accumulated other
comprehensive loss, net (16,894) (28,553) (15,940)
----------------------------------------------------------------------
Total Stockholders' Equity 843,921 835,814 987,978
----------------------------------------------------------------------
Total Liabilities and
Stockholders' Equity $12,646,094 $12,743,061 $13,793,038
----------------------------------------------------------------------
COMMERCIAL FEDERAL CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars in Thousands Except Per Share Data)
(Unaudited)
----------------------------------------------------------------------
Three Months Ended
June 30, March 31, June 30,
--------------------------------------
2001 2001 2000
----------------------------------------------------------------------
Interest Income:
Investment securities $ 19,640 $ 17,137 $ 21,780
Mortgage-backed securities 26,876 26,242 20,036
Loans receivable 174,347 180,699 197,464
----------------------------------------------------------------------
Total interest income 220,863 224,078 239,280
Interest Expense:
Deposits 85,185 92,584 83,571
Advances from Federal Home
Loan Bank 55,179 55,977 68,721
Other borrowings 5,218 3,688 3,863
----------------------------------------------------------------------
Total interest expense 145,582 152,249 156,155
Net Interest Income 75,281 71,829 83,125
Provision for Loan Losses (6,437) (4,443) (3,300)
----------------------------------------------------------------------
Net Interest Income After
Provision for Loan Losses 68,844 67,386 79,825
Other Income (Loss):
Retail fees and charges 13,647 12,063 12,138
Loan servicing fees, net 6,339 6,552 6,310
Mortgage servicing rights
valuation adjustment (172) (5,484) --
Gain (loss) on sales of
securities and changes in fair
values of derivatives, net (1,326) 8,625 --
Gain (loss) on sales of loans 250 (2,036) (112)
Real estate operations (1,222) (515) (75)
Other operating income 11,837 11,505 6,508
----------------------------------------------------------------------
Total other income 29,353 30,710 24,769
Other Expense:
General and administrative
expenses -
Compensation and benefits 25,206 26,505 28,927
Occupancy and equipment 9,197 9,842 9,341
Data processing 4,421 4,605 5,033
Advertising 2,579 2,516 3,888
Communication 3,361 3,295 3,974
Item processing 4,343 3,954 4,211
Outside services 3,262 3,248 2,287
Other operating expenses 7,666 5,924 6,737
Exit costs and termination
benefits (3,952) 1,955 (350)
----------------------------------------------------------------------
Total general and
administrative expenses 56,083 61,844 64,048
Amortization of core value of
deposits 1,914 1,943 2,188
Amortization of goodwill 2,083 2,120 2,125
----------------------------------------------------------------------
Total other expense 60,080 65,907 68,361
----------------------------------------------------------------------
Income Before Income Taxes 38,117 32,189 36,233
Income Tax Provision 11,767 9,955 11,912
----------------------------------------------------------------------
Net Income $ 26,350 $ 22,234 $ 24,321
----------------------------------------------------------------------
Per Common Share:
Net Income $ .51 $ .42 $ .43
----------------------------------------------------------------------
Dividends Declared Per Common
Share $ .08 $ .07 $ .07
----------------------------------------------------------------------
Weighted Average Shares
Outstanding 51,605,783 52,932,771 56,550,165
----------------------------------------------------------------------
COMMERCIAL FEDERAL CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars in Thousands Except Per Share Data)
(Unaudited)
----------------------------------------------------------------------
Six Months Ended
June 30, June 30,
------------------------------
2001 2000
----------------------------------------------------------------------
Interest Income:
Investment securities $ 36,777 $ 43,120
Mortgage-backed securities 53,118 41,022
Loans receivable 355,046 387,667
----------------------------------------------------------------------
Total interest income 444,941 471,809
Interest Expense:
Deposits 177,769 164,979
Advances from Federal Home Loan Bank 111,156 130,900
Other borrowings 8,906 7,734
----------------------------------------------------------------------
Total interest expense 297,831 303,613
Net Interest Income 147,110 168,196
Provision for Loan Losses (10,880) (7,000)
----------------------------------------------------------------------
Net Interest Income After Provision
for Loan Losses 136,230 161,196
Other Income (Loss):
Retail fees and charges 25,710 22,496
Loan servicing fees, net 12,891 12,975
Mortgage servicing rights valuation
adjustment (5,656) --
Gain on sales of securities and
changes in fair values of
derivatives, net 7,299 --
Loss on sales of loans (1,786) (351)
Real estate operations (1,737) (226)
Other operating income 23,342 12,929
----------------------------------------------------------------------
Total other income 60,063 47,823
Other Expense:
General and administrative expenses-
Compensation and benefits 51,711 56,272
Occupancy and equipment 19,039 18,901
Data processing 9,026 9,789
Advertising 5,095 7,733
Communication 6,656 7,644
Item processing 8,297 8,231
Outside services 6,510 4,303
Other operating expenses 13,590 11,653
Exit costs and termination benefits (1,997) (350)
----------------------------------------------------------------------
Total general and
administrative expenses 117,927 124,176
Amortization of core value of
deposits 3,857 3,489
Amortization of goodwill 4,203 4,480
----------------------------------------------------------------------
Total other expense 125,987 132,145
----------------------------------------------------------------------
Income Before Income Taxes 70,306 76,874
Income Tax Provision 21,722 26,063
----------------------------------------------------------------------
Net Income $ 48,584 $ 50,811
----------------------------------------------------------------------
Per Common Share:
Net Income $ .93 $ .89
----------------------------------------------------------------------
Dividends Declared Per Common Share $ .15 $ .14
----------------------------------------------------------------------
Weighted Average Shares Outstanding 52,269,277 57,066,723
----------------------------------------------------------------------
COMMERCIAL FEDERAL CORPORATION
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollars in Thousands)
(Unaudited)
----------------------------------------------------------------------
June 30, March 31, June 30,
2001 2001 2000
------------ ------------ ------------
Mortgage servicing rights (MSRs):
Beginning balance $ 112,121 $ 111,110 $ 85,649
Purchases of mortgage
servicing rights 7,536 5,001 2,052
Mortgage servicing rights
retained through loan sales 3,441 1,805 653
Valuation adjustment (172) (5,484) --
Other items, net (principally
derivative activity) (2,451) 3,255 (66)
Amortization expense (2,828) (3,566) (1,917)
------------ ------------ ------------
Ending balance $ 117,647 $ 112,121 $ 86,371
============ ============ ============
----------------------------------------------------------------------
Deposits by state:
Colorado $ 2,198,272 $ 2,262,066 $ 2,173,554
Nebraska 1,437,364 1,541,824 1,290,097
Iowa 1,325,874 1,436,955 1,409,834
Kansas 881,624 1,013,810 1,122,750
Oklahoma 712,851 763,142 731,563
Missouri 365,229 396,502 403,222
Arizona 194,013 206,382 186,182
Minnesota 20,224 20,414 13,298
------------ ------------ ------------
Total deposits $ 7,135,451 $ 7,641,095 $ 7,330,500
============ ============ ============
Deposits by type:
Checking accounts:
Interest bearing $ 480,466 $ 504,836 $ 487,501
Noninterest bearing 658,456 659,783 541,139
------------ ------------ ------------
Total 1,138,922 1,164,619 1,028,640
Money market accounts 331,457 356,410 531,317
Savings accounts 1,994,276 1,978,329 1,575,380
Certificates of deposit 3,670,796 4,141,737 4,195,163
------------ ------------ ------------
Total deposits $ 7,135,451 $ 7,641,095 $ 7,330,500
============ ============ ============
----------------------------------------------------------------------
COMMERCIAL FEDERAL CORPORATION
ALLOWANCE FOR LOSSES ON LOANS
(Dollars in Thousands)
(Unaudited)
----------------------------------------------------------------------
June 30, March 31, June 30,
2001 2001 2000
----------------------------------------------------------------------
THREE MONTHS ENDED:
Beginning balance $ 83,873 $ 83,439 $ 78,128
Provision charged to operations 6,437 4,443 3,300
Charges (6,880) (4,995) (8,250)
Recoveries 1,519 1,022 1,505
Change in estimate of allowance
for bulk purchased loans (46) (36) (4,127)
Reduction to allowance on sale
of securitized loans (5) -- --
----------------------------------------------------------------------
Ending balance $ 84,898 $ 83,873 $ 70,556
----------------------------------------------------------------------
SIX MONTHS ENDED:
Beginning balance $ 83,439 $ 79,536
Provision charged to operations 10,880 7,000
Charges (11,875) (14,493)
Recoveries 2,541 2,783
Change in estimate of allowance
for bulk purchased loans (82) (4,270)
Reduction to allowance on sale
of securitized loans (5) --
----------------------------------------------------------------------
Ending balance $ 84,898 $ 70,556
----------------------------------------------------------------------
SUMMARY OF CHARGE-OFFS, NET OF RECOVERIES:
Three months ended 6/30/01 $ (5,361)(1)
Three months ended 3/31/01 (3,973)
---------
Six months ended 6/30/01 $ (9,334)
=========
Three months ended 12/31/00 $ (4,712)
Three months ended 9/30/00 (9,648)
---------
Six months ended 12/31/00 $(14,360)
=========
Three months ended 6/30/00 $ (6,745)
Three months ended 3/31/00 (4,965)
Three months ended 12/31/99 (3,460)
Three months ended 9/30/99 (3,159)
---------
Fiscal year ended 6/30/00 $(18,329)
=========
(1) Includes $1,400 of charge-offs with specific reserves recorded as
a provision in prior quarters.
----------------------------------------------------------------------
June 30, March 31, June 30,
2001 2001 2000
---------------------------------------
Reserves:
Specific $ 7,544 $ 8,568 $ 4,048
Nonspecific 77,354 75,305 66,508
------------ ----------- ----------
$ 84,898 $ 83,873 $ 70,556
============ =========== ==========
----------------------------------------------------------------------
COMMERCIAL FEDERAL CORPORATION
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollars in Thousands)
(Unaudited)
----------------------------------------------------------------------
June 30, March 31, June 30,
2001 2001 2000
------------ ------------ ------------
Nonperforming assets (NPAs):
Nonperforming loans:
Residential real estate $ 58,907 $ 57,229 $ 48,377
Residential construction 5,276 5,576 619
Commercial real estate 16,431 14,952 2,550
Commercial construction 4,137 1,510 --
All other 8,597 8,873 13,466
------------ ------------ ------------
Total nonperforming
loans 93,348 88,140 65,012
------------ ------------ ------------
Real estate:
Residential 15,239 15,665 14,553
Residential construction 23,069 23,145 2,250
All other 3,834 6,753 12,862
------------ ------------ ------------
Total real estate 42,142 45,563 29,665
Troubled debt restructurings 3,108 4,246 5,431
------------ ------------ ------------
Total nonperforming
assets $ 138,598 $ 137,949 $ 100,108
============ ============ ============
NPAs to total assets 1.10% 1.08% .73%
============ ============ ============
Summary of Nonperforming
Assets:
Residential $ 102,491 $ 101,615 $ 65,799
Nonresidential 36,107 36,334 34,309
------------ ------------ ------------
$ 138,598 $ 137,949 $ 100,108
============ ============ ============
----------------------------------------------------------------------
Loans receivable,
before allowance for losses:
Single-family fixed $ 2,199,651 $ 2,145,916 $ 4,443,080
Single-family adjustable 2,498,962 2,813,646 2,665,002
------------ ------------ ------------
Total single-family 4,698,613 4,959,562 7,108,082
Commercial real estate 1,364,798 1,231,739 1,009,301
Construction 515,837 485,526 404,954
Multi-family 283,571 307,760 193,711
Consumer and other 1,609,532 1,639,734 1,578,785
------------ ------------ ------------
Total loans receivable,
before allowance for
losses $ 8,472,351 $ 8,624,321 $10,294,833
============ ============ ============
----------------------------------------------------------------------
Nonperforming loans
to total loans 1.03% .95% .61%
Nonperforming assets to
total assets 1.10% 1.08% .73%
Allowance for losses to
total loans .94% .90% .66%
Allowance for losses to
nonperforming assets 61.25% 60.80% 70.48%
Allowance for losses to
nonresidential nonperforming
assets 235.13% 230.84% 205.65%
----------------------------------------------------------------------
COMMERCIAL FEDERAL CORPORATION
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollars in Thousands Except Per Share Data)
(Unaudited)
----------------------------------------------------------------------
June 30, March 31, June 30,
2001 2001 2000
------------- ------------ ------------
Cash, investment securities
and FHLB stock $ 1,269,141 $ 1,194,702 $ 1,448,489
Mortgage-backed securities 1,572,037 1,555,117 1,220,138
Loans receivable, net 8,760,263 9,011,628 10,407,692
Intangible assets 198,923 203,260 230,850
Other assets 845,730 778,354 485,869
Total assets 12,646,094 12,743,061 13,793,038
----------------------------------------------------------------------
Deposits 7,135,451 7,641,095 7,330,500
Advances from Federal Home
Loan Bank 4,076,440 3,718,940 5,049,582
Other borrowings 328,004 273,560 206,026
Other liabilities 262,278 273,652 218,952
Stockholders' equity 843,921 835,814 987,978
Total liabilities and
stockholders' equity 12,646,094 12,743,061 13,793,038
----------------------------------------------------------------------
Book value per common share $ 16.68 $ 16.16 $ 17.67
Tangible book value per
common share 12.75 12.23 13.54
Stock price 23.10 22.30 15.56
Common shares outstanding 50,583,104 51,717,331 55,922,884
----------------------------------------------------------------------
Nonperforming assets 138,598 137,949 100,108
Nonperforming assets to
total assets 1.10% 1.08% .73%
Weighted average interest
rates (durings):
Yield on interest-
earning assets 7.53% 7.78% 7.61%
Rate on interest-bearing
liabilities 4.95% 5.33% 5.07%
Net interest rate spread 2.58% 2.45% 2.54%
Net yield on interest-
earning assets 2.57% 2.49% 2.64%
Loans serviced for other
institutions $ 9,487,668 $ 9,240,315 $ 7,271,014
----------------------------------------------------------------------
Three months ended:
Return on average assets .82% .70% .72%
Excluding nonrecurring
items, net .74% .74% .71%
Return on average equity 12.95% 10.65% 10.32%
Excluding nonrecurring
items, net 11.68% 11.26% 10.23%
Average equity to average
assets 6.32% 6.60% 6.98%
G & A expenses to average
assets 1.74% 1.95% 1.90%
Excluding nonrecurring
charges, net 1.86% 1.89% 1.91%
Operating efficiency ratio 52.45% 64.11% 59.26%
Excluding nonrecurring
items, net 56.14% 62.08% 59.58%
----------------------------------------------------------------------
Six months ended:
Return on average assets .76% .76%
Excluding nonrecurring
items, net .74% .75%
Return on average equity 11.79% 10.63%
Excluding nonrecurring
items, net 11.47% 10.58%
Average equity to average
assets 6.46% 7.12%
G & A expenses to average
assets 1.85% 1.85%
Excluding nonrecurring
charges, net 1.88% 1.86%
Operating efficiency ratio 57.98% 57.33%
Excluding nonrecurring
items, net 58.96% 57.49%
----------------------------------------------------------------------
COMMERCIAL FEDERAL CORPORATION
OPERATING EARNINGS/EPS AND CASH EPS
(Dollars in Thousands Except Per Share Data)
(Unaudited)
----------------------------------------------------------------------
Three Months Ended Six Months Ended
June 30, March 31, June 30, June 30,
------------------------------- ---------------------
2001 2001 2000 2001 2000
----------------------------------------------------------------------
OPERATING
EARNINGS:
Reported net
income $ 26,350 $ 22,234 $ 24,321 $ 48,584 $ 50,811
Exit costs and
termination benefits
($3,952 credit, $1,955,
$350 credit, $1,997
credit and $350 credit,
pretax) (2,569) 1,271 (220) (1,298) (220)
------------------------------- ---------- ----------
Operating
Earnings $ 23,781 $ 23,505 $ 24,101 $ 47,286 $ 50,591
=============================== ========== ==========
Weighted Average
Shares
Outstanding 51,605,783 52,932,771 56,550,165 52,269,277 57,066,723
=============================== ========== ==========
Operating
Earnings EPS $ .46 $ .44 $ .43 $ .90 $ .89
=============================== ========== ==========
EPS - Reported
Net Income $ .51 $ .42 $ .43 $ .93 $ .89
=============================== ========== ==========
----------------------------------------------------------------------
CASH EPS:
Reported net
income $ 26,350 $ 22,234 $ 24,321 $ 48,584 $ 50,811
Amortization of
core value of
deposits 1,914 1,943 2,188 3,857 3,489
Amortization of
goodwill 2,083 2,120 2,125 4,203 4,480
Less tax benefit
associated with
amortization
expense of core
value of deposits (591) (601) (742) (1,192) (1,218)
Less tax benefit
associated with
amortization
expense of goodwill (34) (33) (37) (67) (77)
------------------------------- ---------- ----------
Cash Earnings 29,722 25,663 27,855 55,385 57,485
Adjustments to
derive operating
earnings (net of
tax from above) (2,569) 1,271 (220) (1,298) (220)
------------------------------- ---------- ----------
Cash Operating
Earnings $ 27,153 $ 26,934 $ 27,635 $ 54,087 $ 57,265
=============================== ========== ==========
Cash EPS $ .58 $ .48 $ .49 $ 1.06 $ 1.01
=============================== ========== ==========
Cash Operating
EPS $ .53 $ .51 $ .49 $ 1.03 $ 1.00
=============================== ========== ==========
EPS - Reported
Net Income $ .51 $ .42 $ .43 $ .93 $ .89
=============================== ========== ==========
----------------------------------------------------------------------
COMMERCIAL FEDERAL CORPORATION
AVERAGE BALANCES AND REGULATORY CAPITAL
(Dollars in Thousands)
(Unaudited)
----------------------------------------------------------------------
June 30, March 31, Dec. 31,
Three Months Ended: 2001 2001 2000
------------------- ----------- ----------- -----------
Average Balances:
Total assets $12,883,522 $12,655,695 $13,587,701
Total loans, net 8,886,895 8,974,298 9,985,162
Total loans, before allowances 8,971,107 9,029,882 10,059,683
Total mortgage-backed securities 1,624,851 1,555,555 1,440,763
Total deposits 7,355,395 7,683,554 7,588,949
Total stockholders' equity 814,176 834,932 885,486
Total interest-earning assets 11,735,291 11,542,636 12,391,536
Total interest-earning liabilities 11,722,353 11,515,863 12,414,943
Sept. 30, June 30,
Three Months Ended: 2000 2000
------------------- ----------- ------------
Average Balances:
Total assets $13,861,796 $13,500,470
Total loans, net 10,529,317 10,099,577
Total loans, before allowances 10,600,729 10,177,647
Total mortgage-backed securities 1,236,650 1,249,800
Total deposits 7,342,899 7,351,877
Total stockholders' equity 933,008 942,737
Total interest-earning assets 12,927,919 12,585,467
Total interest-earning liabilities 12,664,738 12,273,291
----------------------------------------------------------------------
Six Months Six Months Year
Ended Ended Ended
Year to Date: 06/30/2001 12/31/2000 06/30/2000
------------- -----------------------------------
Average Balances:
Total assets $12,770,238 $13,724,748 $13,507,546
Total loans, net 8,916,290 10,257,240 9,798,198
Total loans, before allowances 9,000,332 10,330,206 9,877,010
Total mortgage-backed securities 1,590,395 1,338,706 1,291,061
Total deposits 7,518,568 7,465,924 7,433,114
Total stockholders' equity 824,496 909,247 958,664
Total interest-earning assets 11,639,496 12,659,728 12,328,807
Total interest-earning liabilities 11,619,679 12,539,841 10,069,053
----------------------------------------------------------------------
June 30, March 31, Dec. 31,
Regulatory Capital: 2001 2001 2000
------------------- ------------ -------------- -----------------
Tangible $741,379 $785,620 $800,630
Core 745,527 790,224 805,693
Total risk-based 822,995 865,581 879,845
Tier 1 risk-based 745,527 790,224 805,693
Tangible % 5.97% 6.28% 6.51%
Core % 6.00% 6.32% 6.55%
Total risk-based % 10.80% 11.41% 11.84%
Tier 1 risk-based % 9.78% 10.41% 10.84%
Sept. 30, June 30,
Regulatory Capital: 2000 2000
------------------- -------------- --------------
Tangible $873,078 $890,051
Core 878,603 896,091
Total risk-based 945,623 961,520
Tier 1 risk-based 878,603 896,091
Tangible % 6.37% 6.55%
Core % 6.41% 6.59%
Total risk-based % 12.09% 12.59%
Tier 1 risk-based % 11.23% 11.74%
----------------------------------------------------------------------
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