Commercial Federal Reports Third Quarter EPS of $0.48.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)--Oct. 25, 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 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 $24.0 million, or $0.48 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 September September: see month. 30, 2001, compared to a net loss of $21.8 million, or $0.39 loss per share, for the quarter ended September 30, 2000. For the nine-month period ending September 30, 2001, net income totaled $72.6 million, or $1.41 per diluted share, compared to net income of $29.0 million, or $0.51 per diluted share for the nine-month period ending September 30, 2000. Earnings for the period ending September 30, 2000 were impacted by one time charges totaling $38.2 million on an after-tax basis After-tax basis The comparison basis used to analyze the net after-tax returns on a corporate taxable bond and a municipal tax-free bond. . 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, "Commercial Federal's earnings for the third quarter and year to date demonstrate the continued successful execution of our business plan. Our key fundamentals are all positive and we continue to generate strong results in each of our core business segments. As a result, earnings continue to beat consensus estimates and reflect our commitment to delivering consistent profitability and earnings growth for 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. . "The significant drop in short-term interest rates Short-term interest rates Interest rates on loan contracts-or debt instruments such as Treasury bills, bank certificates of deposit or commerical paper-having maturities of less than one year. Often called money market rates. over the past several months has added to the company's profitability by reducing borrowing costs. During this period we have also significantly increased the level of non-interest income, while maintaining expense targets and a quality balance sheet. We remain confident in our ability to increase shareholder value by growing our strong Midwest franchise." Mr. Fitzgerald concluded, "We also want to thank our many customers and employees who have responded to our appeal to assist the victims of the September 11th tragedy. Commercial Federal has helped to promote and secure contributions to the Salvation Army Salvation Army, Protestant denomination and international nonsectarian Christian organization for evangelical and philanthropic work. Organization and Beliefs The Salvation Army has established branches in 100 countries throughout the world. Disaster Relief Fund from the communities we serve - and they have responded very generously." Highlights of the Quarter Net Interest Income Net interest income totaled $78.2 million for the third quarter, an improvement of $2.9 million over the prior quarter. The net interest margin for the quarter increased to 2.70 percent, compared to 2.45 percent for the same period last year and 2.58 percent in the second quarter of this year, reflecting the company's reduced cost of borrowings. Credit Quality As it did in the prior period, the company continued to build reserves in the third quarter. The loan loss allowance for all non-performing assets was increased by $14.9 million. This increase was driven by a provision of $19.8 million, less net charge-offs of $4.9 million. Total non-performing assets were $142.8 million as of September 30, 2001, compared to $138.6 million at June June: see month. 30, 2001. Total NPAs represented 1.10 percent of total assets at September 30, and June 30, 2001. The allowance for losses to non-residential non-performing assets at September 30, 2001 was 229 percent, compared to 235 percent at June 30, 2001. Non Interest Income Non-interest income is derived from the execution/processing business, the advisory business and any principal business that does not appear on the balance sheet. Financial institutions that wish to maximize execution/processing income depend on volume and efficiency for profits. The company continues to generate strong results in core business segments, including account and household growth, 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. and commercial and small business banking services. Robust refinancing Refinancing An extension and/or increase in amount of existing debt. activity in residential mortgages resulted in very strong loan volumes for the quarter. Retail banking and depositor fees reached $13.4 million for the quarter, compared to $12.7 million for the same period last year. For the nine-month period ending September 30, 2001, retail banking fees increased 11 percent from the same period last year. Mortgage service fees declined $1.6 million due to higher amortization expense of 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. rights from faster prepayment Prepayment 1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. of loans. In addition, temporary 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. of $17.4 million was recognized in this quarter. This impairment was partially offset by hedge gains of $15.4 million. No gains except those used to hedge mortgage servicing rights were recognized in the quarter. 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. Net of exit costs and termination The point where a line, channel or circuit ends. See SCSI termination and hybrid. benefits, general and administrative expenses were flat compared to the previous quarter. Expenses primarily due to production commissions and costs associated with residential mortgage loan volumes were up for the quarter. The revenue associated with these volumes is reflected in the gain on sale of loans of $3.4 million for the third quarter, compared to $250,000 in the previous quarter. Balance Sheet and Capital Ratios Total assets as of September 30, 2001 were $13.0 billion, compared to $12.6 billion at June 30, 2001 and $13.9 billion at September 30, 2000. Total deposits declined $439 million for the quarter, including $242.9 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. 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. As of September 30, 2001, transaction account balances including checking, savings and money market accounts, represented 50 percent of total deposits, compared to 42 percent at September 30, 2000. Stockholder's equity Stockholder's equity The residual claims that stockholders have against a firm's assets, calculated by subtracting all current liabilities and debt liabilities from total assets. at September 30, 2001 was $746 million and 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 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--"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. ." Capital Management 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 was completed in August 2001. The 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. of an additional 5 million shares approved by the Board in May 2001 has begun with 2,055,500 shares repurchased through September 30, 2001. Total shares outstanding at the end of the third quarter were 48,027,251. Branch Divestiture At the end of the third quarter, the company operated 203 branch offices compared to 255 offices as of June 30, 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 $11.5 million on the sale of nineteen branch offices. In the fourth quarter, the company is scheduled to close on the sale of seven branch offices. Four branches in Minnesota Minnesota, state, United States Minnesota (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 representing $20.6 million in deposits have been reoffered for sale. 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, "We are extremely pleased with the company's financial results for the third quarter. Over the past nine months, through the consistent execution of our business plan, we have been able to grow revenues, manage credit exposure, control expenses, improve operating efficiencies and exceed our earnings per share targets in each quarter. Net interest margin has improved and given our quality balance sheet, the company expects to be well positioned to withstand any short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. economic downturns." Mr. Fisher concluded, "We continue to see great progress in our core earnings as a result of the time, effort and financial resources invested in significantly improving our delivery systems, sales culture and customer service skills. These investments will continue to yield bottom-line bot·tom-line adj. 1. Concerned exclusively with costs and profits: bottom-line issues. 2. Ruthlessly realistic; pragmatic: a bottom-line political strategy. benefits as we build the company for long-term value and consistent earnings per share growth. While the steepness in the yield curve has provided a boost to short-term earnings, the company continues to show strength in our operating fundamentals. Therefore, we are comfortable that the company will meet or somewhat exceed analyst estimates for 2001, and we are maintaining our earnings outlook of $1.90 to $2.05 for 2002." Commercial Federal Corporation is the parent company of Commercial Federal Bank, a $13.0 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. Commercial Federal operations include
consumer and commercial banking, mortgage banking, agricultural lending,
insurance and investment services, and Internet InternetPublicly 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 third quarter results on October October: see month. 25, 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)
----------------------------------------------------------------------
Sept. 30, June 30, Sept. 30,
ASSETS 2001 2001 2000
----------------------------------------------------------------------
(Unaudited) (Unaudited) (Unaudited)
Cash (including short-term
investments of $887, $5,183
and $241,283) $ 162,903 $ 176,788 $ 433,756
Investment securities available
for sale, at fair value 1,075,632 881,301 590,786
Mortgage-backed securities
available for sale, at fair
value 1,780,174 1,572,037 1,274,186
Loans and leases held for sale,
net 404,121 372,733 240,891
Loans receivable, net of
allowances of $99,665,
$84,821 and $72,230 8,230,164 8,387,530 10,322,925
Federal Home Loan Bank stock 238,846 211,052 263,954
Real estate, net 59,624 54,780 41,094
Premises and equipment, net 158,433 160,390 168,620
Bank owned life insurance 211,100 207,607 --
Other assets 482,776 422,158 321,646
Intangible assets, net of
accumulated amortization of
$82,213, $78,541 and $70,572 195,251 198,923 211,503
----------------------------------------------------------------------
Total Assets $ 2,999,024 $12,645,299 $ 13,869,361
----------------------------------------------------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
----------------------------------------------------------------------
Liabilities:
Deposits $ 6,696,718 $ 7,135,451 $ 7,480,312
Advances from Federal Home
Loan Bank 4,728,515 4,076,440 5,034,460
Other borrowings 414,567 328,004 181,646
Other liabilities 413,565 261,990 270,107
----------------------------------------------------------------------
Total Liabilities 12,253,365 11,801,885 12,966,525
----------------------------------------------------------------------
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; 48,027,251,
50,583,104 and 54,684,887
shares issued and
outstanding 480 506 547
Additional paid-in capital 133,652 196,685 281,958
Retained earnings 683,715 663,624 674,063
Accumulated other
comprehensive loss, net (72,188) (17,401) (53,732)
----------------------------------------------------------------------
Total Stockholders' Equity 745,659 843,414 902,836
----------------------------------------------------------------------
Total Liabilities and
Stockholders' Equity $12,999,024 $12,645,299 $ 13,869,361
----------------------------------------------------------------------
COMMERCIAL FEDERAL CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars in Thousands Except Per Share Data)
(Unaudited)
----------------------------------------------------------------------
Three Months Ended
September 30, June 30, September 30,
-------------------------------------------
2001 2001 2000
----------------------------------------------------------------------
Interest Income:
Investment securities $ 20,116 $ 19,640 $ 22,338
Mortgage-backed securities 27,739 26,876 20,871
Loans receivable 170,059 174,347 208,506
----------------------------------------------------------------------
Total interest income 217,914 220,863 251,715
Interest Expense:
Deposits 73,438 82,661 89,287
Advances from Federal Home
Loan Bank 60,716 57,703 78,091
Other borrowings 5,533 5,218 3,784
----------------------------------------------------------------------
Total interest expense 139,687 145,582 171,162
Net Interest Income 78,227 75,281 80,553
Provision for Loan Losses (19,800) (6,437) (12,648)
----------------------------------------------------------------------
Net Interest Income After
Provision for Loan Losses 58,427 68,844 67,905
Other Income (Loss):
Retail fees and charges 13,428 13,647 12,740
Loan servicing fees, net 4,749 6,339 5,987
Mortgage servicing rights
valuation adjustment (17,385) (172) --
Gain (loss) on sales of
securities and changes
in fair values of
derivatives, net 15,438 (1,326) (3,184)
Gain (loss) on sales of
loans 3,395 250 (93)
Real estate operations (1,429) (1,222) (898)
Other operating income 11,234 11,837 6,884
----------------------------------------------------------------------
Total other income 29,430 29,353 21,436
Other Expense:
General and administrative
expenses -
Compensation and benefits 26,763 25,206 27,047
Occupancy and equipment 9,331 9,197 9,363
Data processing 4,398 4,421 4,739
Advertising 2,793 2,579 3,521
Communication 3,436 3,361 3,725
Item processing 4,216 4,343 4,098
Outside services 2,129 3,262 2,461
Other operating expenses 7,534 7,666 5,467
Exit costs and
termination benefits (11,043) (3,952) 22,968
----------------------------------------------------------------------
Total general and
administrative
expenses 49,557 56,083 83,389
Amortization of core value
of deposits 1,692 1,914 1,951
Amortization of goodwill 1,980 2,083 2,125
----------------------------------------------------------------------
Total other expense 53,229 60,080 87,465
----------------------------------------------------------------------
Income Before Income Taxes
and Cumulative Effect of
Change in Accounting
Principle 34,628 38,117 1,876
Income Tax Provision 10,646 11,767 4,577
----------------------------------------------------------------------
Income (Loss) Before
Cumulative Effect of
Change in Accounting
Principle 23,982 26,350 (2,701)
Cumulative Effect of
Change in Accounting
Principle, Net of Tax
Benefit -- -- (19,125)
----------------------------------------------------------------------
Net Income (Loss) $ 23,982 $ 26,350 $ (21,826)
----------------------------------------------------------------------
Per Common Share:
Net Income (Loss) $ .48 $ .51 $ (.39)
----------------------------------------------------------------------
Dividends Declared Per
Common Share $ .08 $ .08 $ .07
----------------------------------------------------------------------
Weighted Average Shares
Outstanding 50,269,384 51,605,783 55,454,067
----------------------------------------------------------------------
COMMERCIAL FEDERAL CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars in Thousands Except Per Share Data)
(Unaudited)
----------------------------------------------------------------------
Nine Months Ended
September 30, September 30,
-----------------------------
2001 2000
----------------------------------------------------------------------
Interest Income:
Investment securities $ 56,893 $ 65,458
Mortgage-backed securities 80,857 61,893
Loans receivable 525,105 596,173
----------------------------------------------------------------------
Total interest income 662,855 723,524
Interest Expense:
Deposits 248,679 254,266
Advances from Federal Home
Loan Bank 174,400 208,991
Other borrowings 14,439 11,518
----------------------------------------------------------------------
Total interest expense 437,518 474,775
Net Interest Income 225,337 248,749
Provision for Loan Losses (30,680) (19,648)
----------------------------------------------------------------------
Net Interest Income After
Provision for Loan Losses 194,657 229,101
Other Income (Loss):
Retail fees and charges 39,138 35,236
Loan servicing fees, net 17,640 18,962
Mortgage servicing rights
valuation adjustment (23,041) --
Gain (loss) on sales of
securities and changes
in fair values of derivatives, net 22,737 (3,184)
Gain (loss) on sales of loans 1,609 (444)
Real estate operations (3,166) (1,124)
Other operating income 34,576 19,813
----------------------------------------------------------------------
Total other income 89,493 69,259
Other Expense:
General and administrative
expenses -
Compensation and benefits 78,474 83,319
Occupancy and equipment 28,370 28,264
Data processing 13,424 14,528
Advertising 7,888 11,254
Communication 10,092 11,369
Item processing 12,513 12,329
Outside services 8,639 6,764
Other operating expenses 21,124 17,120
Exit costs and termination
benefits (13,040) 22,618
----------------------------------------------------------------------
Total general and
administrative expenses 167,484 207,565
Amortization of core value of deposits 5,549 5,440
Amortization of goodwill 6,183 6,605
----------------------------------------------------------------------
Total other expense 179,216 219,610
----------------------------------------------------------------------
Income Before Income Taxes and Cumulative
Effect of Change in Accounting Principle 104,934 78,750
Income Tax Provision 32,368 30,640
----------------------------------------------------------------------
Income Before Cumulative Effect
of Change in Accounting Principle 72,566 48,110
Cumulative Effect of Change in
Accounting Principle, Net of Tax Benefit -- (19,125)
----------------------------------------------------------------------
Net Income $ 72,566 $ 28,985
----------------------------------------------------------------------
Per Common Share:
Net Income $ 1.41 $ .51
----------------------------------------------------------------------
Dividends Declared Per Common Share $ .23 $ .21
----------------------------------------------------------------------
Weighted Average Shares Outstanding 51,602,646 56,622,391
----------------------------------------------------------------------
COMMERCIAL FEDERAL CORPORATION
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollars in Thousands)
(Unaudited)
----------------------------------------------------------------------
Sept. 30, June 30, Sept. 30,
2001 2001 2000
------------ ------------ ------------
Mortgage servicing rights (MSRs):
Beginning balance $ 117,647 $ 112,121 $ 86,371
Purchases of mortgage
servicing rights 6,401 8,284 3,808
Mortgage servicing rights
retained through loan sales 3,672 3,440 1,293
Valuation adjustment (17,385) (172) --
Other items, net (principally
derivative activity) 2,729 (2,451) (302)
Amortization expense (5,000) (3,575) (2,094)
------------ ------------ ------------
Ending balance $ 108,064 $ 117,647 $ 89,076
============ ============ ============
----------------------------------------------------------------------
Deposits by state:
Colorado $ 2,171,820 $ 2,198,272 $ 2,211,997
Nebraska 1,417,092 1,437,364 1,430,165
Iowa 1,071,048 1,325,874 1,417,335
Kansas 803,813 881,624 1,038,040
Oklahoma 671,978 712,851 757,405
Missouri 349,391 365,229 416,731
Arizona 191,148 194,013 193,509
Minnesota 20,428 20,224 15,130
------------ ------------ ------------
Total deposits $ 6,696,718 $ 7,135,451 $ 7,480,312
============ ============ ============
Deposits by type:
Checking accounts:
Interest bearing $ 459,962 $ 480,466 $ 514,567
Noninterest bearing 639,761 658,456 519,294
------------ ------------ ------------
Total 1,099,723 1,138,922 1,033,861
Money market accounts 316,960 331,457 438,498
Savings accounts 1,954,694 1,994,276 1,681,613
Certificates of deposit 3,325,341 3,670,796 4,326,340
------------ ------------ ------------
Total deposits $ 6,696,718 $ 7,135,451 $ 7,480,312
============ ============ ============
----------------------------------------------------------------------
COMMERCIAL FEDERAL CORPORATION
ALLOWANCE FOR LOSSES ON LOANS
(Dollars in Thousands)
(Unaudited)
----------------------------------------------------------------------
Sept. 30, June 30, Sept. 30,
2001 2001 2000
----------------------------------------------------------------------
THREE MONTHS ENDED:
------------------
Beginning balance $ 84,898 $ 83,873 $ 70,556
Provision charged to
operations 19,800 6,437 12,648
Charges (6,272) (6,880) (11,039)
Recoveries 1,369 1,519 1,391
Change in estimate of
allowance for bulk
purchased loans (40) (46) (46)
Reduction to allowance
on sale of securitized
loans -- (5) --
----------------------------------------------------------------------
Ending balance $ 99,755 $ 84,898 $ 73,510
----------------------------------------------------------------------
NINE MONTHS ENDED:
-----------------
Beginning balance $ 83,439 $ 79,536
Provision charged to
operations 30,680 19,648
Charges (18,147) (25,532)
Recoveries 3,910 4,174
Change in estimate of
allowance for bulk
purchased loans (122) (4,316)
Reduction to allowance
on sale of securitized
loans (5) --
----------------------------------------------------------------------
Ending balance $ 99,755 $ 73,510
----------------------------------------------------------------------
SUMMARY OF CHARGE-OFFS, NET
OF RECOVERIES:
Three months ended 9/30/01 $ (4,903)
Three months ended 6/30/01 (5,361)(1)
Three months ended 3/31/01 (3,973)
---------
Nine months ended 9/30/01 $(14,237)
=========
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.
----------------------------------------------------------------------
Sept. 30, June 30, Sept. 30,
2001 2001 2000
---------------------------------------
Reserves:
Specific $ 11,440 $ 7,544 $ 5,327
Nonspecific 88,315 77,354 68,183
--------- --------- ------------
$ 99,755 $ 84,898 $ 73,510
========= ========= ============
----------------------------------------------------------------------
COMMERCIAL FEDERAL CORPORATION
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollars in Thousands)
(Unaudited)
----------------------------------------------------------------------
Sept. 30, June 30, Sept. 30,
2001 2001 2000
------------ ----------- ------------
Nonperforming assets (NPAs):
Nonperforming loans:
Residential real estate $ 60,026 $ 58,907 $ 54,396
Residential construction 959 5,276 1,142
Commercial real estate 22,722 16,431 3,463
Commercial construction 1,198 4,137 --
All other 7,418 8,597 8,811
------------ ----------- ------------
Total nonperforming loans 92,323 93,348 67,812
------------ ----------- ------------
Real estate:
Residential 14,816 15,239 15,340
Residential construction 23,418 23,069 1,744
Commercial construction 3,870 -- --
All other 5,185 3,834 14,598
------------ ----------- ------------
Total real estate 47,289 42,142 31,682
Troubled debt restructurings 3,159 3,108 5,084
------------ ----------- ------------
Total nonperforming
assets $ 142,771 $ 138,598 $ 104,578
============ =========== ============
NPAs to total assets 1.10% 1.10% .75%
============ =========== ============
Summary of Nonperforming Assets:
Residential $ 99,219 $ 102,491 $ 72,622
Nonresidential 43,552 36,107 31,956
------------ ----------- ------------
$ 142,771 $ 138,598 $ 104,578
============ =========== ============
----------------------------------------------------------------------
Loans receivable,
before allowance for losses:
Single-family fixed $ 2,232,141 $ 2,199,651 $ 3,944,090
Single-family adjustable 2,317,986 2,498,962 3,067,909
------------ ----------- ------------
Total single-family 4,550,127 4,698,613 7,011,999
Commercial real estate 1,326,273 1,364,798 1,097,253
Construction (net of LIP) 543,674 515,837 498,882
Multi-family 322,273 283,571 228,342
Consumer and other 1,587,482 1,609,532 1,558,679
------------ ----------- ------------
Total loans receivable,
before allowance for
losses $ 8,329,829 $ 8,472,351 $10,395,155
============ =========== ============
----------------------------------------------------------------------
Nonperforming loans
to total loans 1.03% 1.03% .63%
Nonperforming assets to
total assets 1.10% 1.10% .75%
Allowance for losses to
total loans 1.11% .94% .68%
Allowance for losses to
nonperforming assets 69.87% 61.25% 70.29%
Allowance for losses to
nonresidential
nonperforming assets 229.05% 235.13% 230.04%
----------------------------------------------------------------------
COMMERCIAL FEDERAL CORPORATION
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Dollars in Thousands Except Per Share Data)
(Unaudited)
----------------------------------------------------------------------
Sept. 30, June 30, Sept 30,
2001 2001 2000
------------ ------------- ------------
Cash, investment securities
and FHLB stock $ 1,477,381 $ 1,269,141 $ 1,288,496
Mortgage-backed securities 1,780,174 1,572,037 1,274,186
Loans receivable, net 8,634,285 8,760,263 10,563,816
Intangible assets 195,251 198,923 211,503
Other assets 911,933 844,935 531,360
Total assets 12,999,024 12,645,299 13,869,361
----------------------------------------------------------------------
Deposits 6,696,718 7,135,451 7,480,312
Advances from Federal Home
Loan Bank 4,728,515 4,076,440 5,034,460
Other borrowings 414,567 328,004 181,646
Other liabilities 413,565 261,990 270,107
Stockholders' equity 745,659 843,414 902,836
Total liabilities and
stockholders' equity 12,999,024 12,645,299 13,869,361
----------------------------------------------------------------------
Book value per common share $ 15.53 $ 16.67 $ 16.51
Tangible book value per
common share 11.46 12.74 12.64
Stock price 24.27 23.10 19.63
Common shares outstanding 48,027,251 50,583,104 54,684,887
Weighted average shares
outstanding 50,269,384 51,605,783 55,454,067
----------------------------------------------------------------------
Nonperforming assets 142,771 138,598 104,578
Nonperforming assets to
total assets 1.10% 1.10% .75%
Weighted average interest
rates (durings):
Yield on interest-earning
assets 7.37% 7.53% 7.78%
Rate on interest-bearing
liabilities 4.67% 4.95% 5.33%
Net interest rate spread 2.70% 2.58% 2.45%
Net yield on interest-
earning assets 2.65% 2.57% 2.49%
Loans serviced for other
institutions $ 9,602,282 $ 9,487,668 $ 7,370,300
----------------------------------------------------------------------
Three months ended:
------------------
Return on average assets .74% .82% -.63%
Excluding nonrecurring
items, net .52% .74% .48%
Return on average equity 11.49% 12.95% -9.36%
Excluding nonrecurring
items, net 8.05% 11.68% 7.11%
Average equity to average
assets 6.47% 6.32% 6.73%
G & A expenses to average
assets 1.54% 1.74% 2.41%
Excluding nonrecurring
charges, net 1.88% 1.86% 1.74%
Operating efficiency ratio 54.91% 52.45% 78.55%
Excluding nonrecurring
items, net 67.14% 56.14% 56.91%
----------------------------------------------------------------------
Nine months ended:
-----------------
Return on average assets .75% .28%
Excluding nonrecurring
items, net .67% .66%
Return on average equity 11.68% 4.07%
Excluding nonrecurring
items, net 10.32% 9.44%
Average equity to average
assets 6.46% 6.99%
G & A expenses to average
assets 1.74% 2.04%
Excluding nonrecurring
charges, net 1.88% 1.82%
Operating efficiency ratio 57.04% 64.31%
Excluding nonrecurring
items, net 61.48% 57.30%
----------------------------------------------------------------------
COMMERCIAL FEDERAL CORPORATION
OPERATING EARNINGS/EPS AND CASH EPS
(Dollars in Thousands Except Per Share Data)
(Unaudited)
----------------------------------------------------------------------
Three Months Ended
Sept. 30, June 30, Sept. 30,
-------------------------------------------
2001 2001 2000
----------------------------------------------------------------------
OPERATING EARNINGS:
Reported net income
(loss) $ 23,982 $ 26,350 $ (21,826)
Exit costs and termination
benefits ($11,043 credit,
$3,952 credit, $22,968,
$13,040 credit and
$22,618, pretax) (7,178) (2,569) 19,294
Cumulative effect of change
in accounting principle
(net of tax) -- -- 19,125
-------------------------------------------
Operating Earnings $ 16,804 $ 23,781 $ 16,593
==========================================
Weighted Average Shares
Outstanding 50,269,384 51,605,783 55,454,067
==========================================
Operating Earnings EPS $ .33 $ .46 $ .30
==========================================
EPS - Reported Net Income
(Loss) $ .48 $ .51 $ (.39)
==========================================
----------------------------------------------------------------------
CASH EPS:
Reported net income (loss) $ 23,982 $ 26,350 $ (21,826)
Amortization of core value
of deposits 1,692 1,914 1,951
Amortization of goodwill 1,980 2,083 2,125
Less tax benefit associated
with amortization expense
of core value of deposits (520) (591) (647)
Less tax benefit associated
with amortization expense
of goodwill (32) (34) (36)
-------------------------------------------
Cash Earnings (Loss) 27,102 29,722 (18,433)
Adjustments to derive
operating earnings
(net of tax from above) (7,178) (2,569) 38,419
-------------------------------------------
Cash Operating Earnings $ 19,924 $ 27,153 $ 19,986
==========================================
Cash EPS (Loss) $ .54 $ .58 $ (.33)
==========================================
Cash Operating EPS $ .40 $ .53 $ .36
==========================================
EPS - Reported Net Income
(Loss) $ .48 $ .51 $ (.39)
==========================================
----------------------------------------------------------------------
Nine Months Ended
September 30,
---------------------------------
2001 2000
OPERATING EARNINGS:
Reported net income (loss) $ 72,566 $ 28,985
Exit costs and termination benefits
($11,043 credit, $3,952 credit,
$22,968, $13,040 credit and
$22,618, pretax) (8,476) 19,074
Cumulative effect of change in
accounting principle (net of tax) - 19,125
------------- ---------------
Operating Earnings $ 64,090 $ 67,184
============= ===============
Weighted Average Shares Outstanding 51,602,646 56,622,391
============= ===============
Operating Earnings EPS $ 1.24 $ 1.19
============= ===============
EPS - Reported Net Income (Loss) $ 1.41 $ .51
============= ===============
----------------------------------------------------------------------
CASH EPS:
Reported net income (loss) $ 72,566 $ 28,985
Amortization of core value
of deposits 5,549 5,440
Amortization of goodwill 6,183 6,605
Less tax benefit associated
with amortization expense of
core value of deposits (1,712) (1,865)
Less tax benefit associated
with amortization expense of
goodwill (99) (113)
------------- ---------------
Cash Earnings (Loss) 82,487 39,052
Adjustments to derive operating
earnings (net of tax from above) (8,476) 38,199
------------- ---------------
Cash Operating Earnings $ 74,011 $ 77,251
============= ===============
Cash EPS (Loss) $ 1.60 $ .69
============= ===============
Cash Operating EPS $ 1.43 $ 1.36
============= ===============
EPS - Reported Net Income (Loss) $ 1.41 $ .51
============= ===============
----------------------------------------------------------------------
COMMERCIAL FEDERAL CORPORATION
AVERAGE BALANCES AND REGULATORY CAPITAL
(Dollars in Thousands)
(Unaudited)
----------------------------------------------------------------------
September, 30, June 30, March 31,
Three Months Ended: 2001 2001 2001
------------------ ----------------------------------------
Average Balances:
Total assets $ 12,909,726 $ 12,883,522 $ 12,655,695
Total loans, net 8,747,301 8,886,895 8,974,298
Total loans, before
allowances 8,835,764 8,971,107 9,029,882
Total mortgage-backed
securities 1,741,497 1,624,851 1,555,555
Total deposits 6,907,935 7,355,395 7,683,554
Total stockholders' equity 835,077 814,176 834,932
Total interest-earning
assets 11,807,685 11,735,291 11,542,636
Total interest-earning
liabilities 11,786,039 11,722,353 11,515,863
----------------------------------------------------------------------
December 31, September 30,
Three Months Ended: 2000 2000
------------------ -------------------------------------
Average Balances:
Total assets $ 13,587,701 $ 13,861,796
Total loans, net 9,985,162 10,529,317
Total loans, before
allowances 10,059,683 10,600,729
Total mortgage-backed
securities 1,440,763 1,236,650
Total deposits 7,588,949 7,342,899
Total stockholders' equity 885,486 933,008
Total interest-earning
assets 12,391,536 12,927,919
Total interest-earning
liabilities 12,414,943 12,664,738
----------------------------------------------------------------------
Nine Months Six Months Year
Ended Ended Ended
Year to Date: 09/30/2001 12/31/00 06/30/2000
------------ ---------------------------------------
Average Balances:
Total assets $12,817,245 $13,724,748 $13,507,546
Total loans, net 8,859,341 10,257,240 9,798,198
Total loans, before
allowances 8,944,873 10,330,206 9,877,010
Total mortgage-backed
securities 1,641,316 1,338,706 1,291,061
Total deposits 7,312,788 7,465,924 7,433,114
Total stockholders' equity 828,061 909,247 958,664
Total interest-earning assets 11,696,175 12,659,728 12,328,807
Total interest-earning
liabilities 11,675,742 12,539,841 10,069,053
----------------------------------------------------------------------
Sept. 30, June 30, March 31,
Regulatory Capital: 2001 2001 2001
------------------ ----------------------------------------------
Tangible $ 753,914 $ 741,379 $ 785,620
Core 757,607 745,527 790,224
Total risk-based 845,990 822,995 865,581
Tier 1 risk-based 757,607 745,527 790,224
Tangible % 5.92% 5.97% 6.28%
Core % 5.95% 6.00% 6.32%
Total risk-based % 11.09% 10.80% 11.41%
Tier 1 risk-based % 9.93% 9.78% 10.41%
----------------------------------------------------------------------
December 31, September 30,
Regulatory Capital: 2000 2000
------------------ --------------------------------
Tangible $ 800,630 $ 873,078
Core 805,693 878,603
Total risk-based 879,845 945,623
Tier 1 risk-based 805,693 878,603
Tangible % 6.51% 6.37%
Core % 6.55% 6.41%
Total risk-based % 11.84% 12.09%
Tier 1 risk-based % 10.84% 11.23%
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion