-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, R9Iock8sYUEA+Rnwuw7FN/S4n7ZD9CyMsiPDEOCgEdl7r+0OX7gIhsSScnTJuNO9 9gWI7Ab6muDMwZk+W7lVWw== 0000927016-99-001508.txt : 19990419 0000927016-99-001508.hdr.sgml : 19990419 ACCESSION NUMBER: 0000927016-99-001508 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990415 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19990416 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BANKBOSTON CORP CENTRAL INDEX KEY: 0000036672 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 042471221 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-06522 FILM NUMBER: 99595921 BUSINESS ADDRESS: STREET 1: 100 FEDERAL ST CITY: BOSTON STATE: MA ZIP: 02110 BUSINESS PHONE: 6174342200 FORMER COMPANY: FORMER CONFORMED NAME: BANK OF BOSTON CORP DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: FIRST NATIONAL BOSTON CORP DATE OF NAME CHANGE: 19830414 8-K 1 FORM 8-K ________________________________________________________________________________ ________________________________________________________________________________ SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): April 15, 1999 BANKBOSTON CORPORATION (Exact name of registrant as specified in its charter) Massachusetts 1-6522 04-2471221 (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 100 Federal Street, Boston, Massachusetts 02110 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (617) 434-2200 ________________________________________________________________________________ ________________________________________________________________________________ -2- Item 5. Other Events. - ---------------------- On April 15, 1999, BankBoston Corporation (the Corporation) issued a press release announcing its earnings for the quarter ended March 31, 1999. The financial information that is included herewith as Exhibit 99(a) was included in the Corporation's press release and is incorporated herein by reference. Item 7. Financial Statements and Exhibits. - ------------------------------------------- (c) Exhibits. 99(a) Financial information included in the Corporation's Press Release dated April 15, 1999. -3- SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. BANKBOSTON CORPORATION /s/ Robert T. Jefferson Dated: April 16, 1999 ---------------------------- Robert T. Jefferson Comptroller EX-99.A 2 FINANCIAL INFORMATION INCLUDED IN PRESS RELEASE EXHIBIT 99 (A) BANKBOSTON REPORTS FIRST QUARTER NET INCOME OF $223 MILLION OR $.75 PER SHARE BOSTON, April 15, 1999 -- BankBoston Corporation (NYSE: BKB) reported today first quarter net income of $223 million, or $.75 per common share on a diluted basis. This compares with $207 million, or $.70 per share, in the fourth quarter of 1998 and $238 million, or $.79 per share, in the first quarter of 1998. Highlights were as follows: . Revenues, on a fully taxable equivalent basis and excluding prior period business sale gains and asset writedowns, were $1,234 million, compared with $1,202 million in the prior quarter and $1,031 million in the first quarter of 1998; . Total expenses were $806 million in the first quarter, compared with $816 million in the prior quarter and $661 million in the first quarter of 1998; . Robertson Stephens achieved record revenue levels and posted pre-tax income, excluding bonus payments due to employees under the acquisition agreement and goodwill amortization, of approximately $30 million. This compared with approximately $15 million in the fourth quarter of 1998; . The Corporation's Brazilian operations reported an increase in net income of nearly 40% compared with the first quarter of 1998. During the first quarter of 1999, the Brazilian government devalued its currency by allowing it to float freely against the U.S. dollar. Included in the first quarter of 1999 results were gains that arose from currency positions maintained during the quarter; these gains were offset by other factors, mainly related to various aspects of fiscal reforms recently passed by the Brazilian government, including certain tax measures. Net income from the Corporation's Argentine operations improved by approximately 25% from the first quarter of 1998; . Provision for credit losses was $70 million in the first quarter, compared with $120 million in the prior quarter and $140 million in the first quarter of 1998. Net credit losses were $66 million in the current quarter, $113 million in the prior quarter and $141 million in the first quarter of 1998. The reserve for credit losses was 1.77% of outstanding loans and leases at March 31, 1999, compared with 1.76% at December 31, 1998 and 1.65% at March 31, 1998; . Nonaccrual loans and OREO totaled $382 million at March 31, 1999, $402 million at December 31, 1998 and $369 million at March 31, 1998; . Return on average common equity was 18.54% in the first quarter, compared with 17.21% in the prior quarter and 21.31% in the first quarter of 1998; . Return on average assets was 1.19% in the first quarter, compared with 1.09% in the prior quarter and 1.39% in the first quarter of 1998. Noninterest income The components of noninterest income are as follows:
Fourth Quarter First Quarter ------- ------------- 1998 (in millions) 1999 1998 Change ---- ---- ---- ------ $ 295 Financial service fees and commissions $ 334 $ 165 $ 169 42 Net equity and mezzanine profits 34 52 (18) 37 Mutual fund fees 33 31 2 40 Personal trust fees 39 40 (1) 5 Other trust and agency fees 7 8 (1) 19 Trading profits and commissions 39 34 5 32 Net foreign exchange profits 45 28 17 (12) Securities gains/(losses), net (2) 25 (27) 54 Other income 66 41 25 ----- ----- ----- ----- 512 Subtotal 595 424 171 89 Gains on sales of businesses 0 165 (165) ----- ----- ----- ----- $ 601 Total $ 595 $ 589 $ 6 ===== ===== ===== =====
. Changes in financial service fees and commissions are detailed below. . Equity and mezzanine profits declined in both comparisons mainly due to a lower level of sales activity. At March 31, 1999, the Private Equity portfolio had a carrying value of $1.4 billion compared with $1.2 billion at March 31, 1998. . Mutual fund fees declined from the prior quarter due to a lower level of fees from Brazil. While assets under management and fee income in Brazil grew in local currency terms, the decline in dollar value reflected the devaluation of Brazil's local currency. The Corporation remains among the top mutual fund providers in Brazil and Argentina at March 31, 1999, ranking fourth in Brazil with assets under management of $4.5 billion and first in Argentina with assets under management of $1.8 billion. . The improvement in trading account profits and commissions from the prior quarter mainly reflects profits earned during the first quarter by the Boston-based emerging markets and high yield trading units compared with losses incurred during the fourth quarter of last year. The growth in trading account profits from the first quarter of last year is due, in part, to the acquisition of Robertson Stephens during the third quarter of 1998. . Foreign exchange profits were up sharply in both comparisons as the Corporation's Boston-based business benefited from a greater volume of customer transactions due, in part, to a higher demand for products arising out of volatile market conditions. In addition, results from the Southern Cone region of Latin America (Argentina, Chile and Uruguay) also improved. . Net securities losses declined from the fourth quarter when the Corporation recorded a $22 million charge for impairment related to certain available for sale securities held in the Corporation's Boston-based emerging markets portfolio. This was partially offset by a lower level of domestic securities gains. The $25 million of net gains registered in the first quarter of last year reflected gains from sales of domestic and emerging markets securities. . The increase in other income in both comparisons was primarily due to gains that arose in Brazil from currency positions maintained during the first quarter of 1999, as the Brazilian government devalued its currency by allowing it to float freely against the U.S. dollar. These gains, however, were offset by other factors, mainly related to various aspects of fiscal reforms recently passed by the Brazilian government, including certain tax measures. Both other income comparisons were also affected by changes in the levels of earnings from equity subsidiaries, earnings on investments in bank owned life insurance policies, and loan sale gains. . During the fourth quarter of 1998, the Corporation recorded a $51 million gain in connection with the sale of its Berkshire branch network in western Massachusetts and recorded a $38 million gain in connection with the sale of its domestic institutional custody business. During the first quarter of 1998, the Corporation recorded a gain of $165 million related to the sale of its 26% ownership interest in HomeSide Inc., a mortgage banking company. The components of financial service fees and commissions are as follows:
Fourth Quarter First Quarter ------- ------------- 1998 (in millions) 1999 1998 Change ---- ---- ---- ------ $ 87 Deposit and ATM-related fees $ 80 $ 70 $ 10 19 Letters of credit and acceptance fees 20 18 2 18 Other loan-related fees 18 13 5 24 Credit card fees 21 10 11 17 Syndication and agent fees 28 15 13 16 Underwriting fees 60 5 55 43 Brokerage fees and commissions 55 3 52 38 Advisory fees 20 5 15 33 Other 32 26 6 ----- ----- ----- ---- $ 295 Total $ 334 $ 165 $169 ===== ===== ===== ====
. Deposit and ATM-related fees declined from the fourth quarter due to lower levels of fees from domestic retail banking and Argentina. These declines were due, in part, to seasonal factors that resulted in a lower volume of transactions. The growth in fees from the first quarter of last year was mainly driven by increases in Argentina and domestic electronic banking fees. . The decline in credit card fees from the fourth quarter is mainly due to a decrease in fees from Argentina, while the increase from the first quarter of last year is due to growth in Brazil and Uruguay. The latter was affected by the acquisition of OCA (a consumer finance company in Uruguay) during 1998. . Syndication and agent fees increased in both comparisons due to a higher level of activity. . The growth in underwriting fees and brokerage fees and commissions in both comparisons relates to Robertson Stephens and includes a very strong performance in both of these fee categories during the first quarter of 1999. . The change in advisory fees in both comparisons relates to Robertson Stephens, an investment banking company acquired by the Corporation during the third quarter of 1998, and includes a very strong performance in the fourth quarter of last year. . Other financial service fees improved from the first quarter of last year due, in part, to a higher level of fees from Argentina. Net interest revenue Net interest revenue, on a fully taxable equivalent basis, was $639 million for the first quarter of 1999, compared with $668 million in the prior quarter and $607 million in the first quarter of 1998. Net interest margin was 4.03% for the first quarter of 1999, compared with 4.13% in the fourth quarter of 1998 and 4.07% in the first quarter of last year. The $29 million decline in net interest revenue and the 10 basis point decline in net interest margin from the prior quarter were affected by a decrease of approximately $20 million in dividends from private equity investments and the impact of fiscal reforms recently passed by the Brazilian government, including certain tax measures. These factors were partially offset by wider spreads in Brazil stemming from economic volatility in the country and higher domestic loan fees. Two fewer days in the first quarter accrual period also contributed to the decline in net interest revenue. The decline in net interest margin was also affected by a $2 billion increase in the average balance of liquid, lower-yielding assets in the Corporation's Section 20 subsidiary, reflecting a much higher level of activity in Robertson Stephens. Domestic average loans and leases declined by approximately $2 billion mainly due to securitizations of domestic commercial and home equity loans which were completed in December, 1998. The commercial loan securitization had a favorable impact on net interest margin. Compared with the first quarter of 1998, net interest revenue increased $32 million while net interest margin declined 4 basis points. The increase in net interest revenue was mainly driven by international operations, as Argentina benefited from wider spreads and an increase in average earning assets of approximately $1.5 billion. The latter reflected expansion activities that occurred during 1998, including the acquisition of Deutsche Bank Argentina and the opening of new branches. In addition, the net interest revenue comparison also benefited from last year's acquisition of OCA and wider spreads in Brazil. Partially offsetting these improvements was a decline in Brazilian average earning assets, reflecting the current recessionary environment, and the impact of fiscal reforms recently passed by the Brazilian government, including certain tax measures. Net interest revenue from domestic operations declined due to the absence of net interest revenue from the national credit card business, which was contributed into a joint venture during the first quarter of 1998, and narrower spreads. These factors were also the main reasons for the decline in consolidated margin, partially offset by the aforementioned wider spreads in Argentina and Brazil. Noninterest expense The components of noninterest expense are as follows:
Fourth Quarter First Quarter ------- ------------- 1998 (in millions) 1999 1998 Change ---- ---- ---- ------ $ 459 Employee costs $ 473 $ 354 $119 109 Occupancy & equipment 109 94 15 36 Professional fees 27 24 3 25 Advertising and public relations 25 22 3 38 Communications 35 30 5 13 Goodwill amortization 13 8 5 136 Other 124 129 (5) ----- ----- ----- ---- $ 816 Total $ 806 $ 661 $145 ===== ===== ===== ====
Noninterest expense was $806 million in the first quarter of 1999, compared with $816 million in the prior quarter and $661 million in the first quarter of 1998. Below is an analysis of the changes in noninterest expense from the fourth quarter: Noninterest expense: fourth quarter 1998 $816 . Increase in compensation expense for Robertson Stephens associated with quarterly growth in revenue 19 . Absence of Q4 charges associated with the write-off of software in connection with converting to a new trust system and branch closings (9) . Lower professional fees, mainly consulting (9) . Other factors net, including impact of Brazil's devaluation (11) ---- Noninterest expense: first quarter 1999 $806 ====
Noninterest expense increased $145 million from the first quarter of 1998. This mainly reflects expansion activities by the Corporation and includes an increase of approximately $120 million (including bonus payments due to employees under the acquisition agreement and goodwill amortization) from Robertson Stephens, which was acquired during the third quarter of last year, and an increase of approximately $45 million from Latin America, mainly reflecting branch expansion in Argentina and Brazil. In addition, higher levels of incentive compensation associated with the growth in revenue also contributed to the increase. These factors were partially offset by the absence of $48 million of charges recorded in the first quarter of 1998 related to the Regional Bank, as well as the realignments of the European and the private banking businesses. Credit Profile Loan and Lease Portfolio The segments of the lending portfolio are as follows: (in millions) 3-31-99 12-31-98 9-30-98 6-30-98 3-31-98 ------- -------- ------- ------- ------- United States Operations: Commercial, industrial and financial $ 17,028 $ 16,294 $ 18,218 $ 16,275 $ 15,887 Commercial real estate: Construction 228 215 209 219 260 Other commercial real estate 3,531 3,871 4,089 3,876 3,736 Consumer-related loans: Residential mortgages 1,840 2,035 2,111 2,229 2,551 Home equity 2,325 2,294 2,672 2,871 2,802 Credit card 379 404 393 412 503 Other 2,433 2,532 2,693 2,753 2,801 Lease financing 1,768 1,801 1,607 1,609 2,017 Unearned income (291) (275) (231) (232) (303) -------- --------- -------- -------- -------- 29,241 29,171 31,761 30,012 30,254 -------- --------- -------- -------- -------- International Operations: Commercial 10,308 10,356 10,636 10,218 10,682 Consumer-related loans: Residential mortgages 1,249 1,251 1,383 1,318 1,302 Credit card 327 362 339 248 226 Other 1,162 1,192 1,164 1,087 987 Lease financing 705 725 652 519 517 Unearned income (217) (251) (188) (148) (146) -------- --------- -------- -------- -------- 13,534 13,635 13,986 13,242 13,568 -------- --------- -------- -------- -------- Total loans and lease financing $ 42,775 $ 42,806 $ 45,747 $ 43,254 $ 43,822 ======== ========= ======== ======== ========
Loans and leases were $42.8 billion at March 31, 1999 and December 31, 1998. The domestic portfolio increased $70 million from the end of 1998 as increases in certain commercial and industrial portfolios, including asset based finance, were offset by lower levels of consumer and commercial real estate loans. The latter is affected by the timing of syndication activity. The international portfolio declined slightly from the end of 1998 as an increase in Argentine loans was offset by declines in the Brazilian and Asian portfolios. The decline in Brazil related to the recessionary environment in that country and the devaluation of Brazil's local currency. The decrease in Asia reflects downsizing in the region as announced by the Corporation in October 1998, including the closing of four offices. Nonaccrual Loans and OREO Nonaccrual loans and OREO amounted to $382 million at March 31, 1999, compared with $402 million at December 31, 1998, and $369 million at March 31, 1998. Nonaccrual loans and OREO represented .9% of related assets at March 31, 1999 and December 31, 1998, compared with .8% at March 31, 1998. The components of consolidated nonaccrual loans and OREO are as follows:
(in millions) 3-31-99 12-31-98 9-30-98 6-30-98 3-31-98 -------- --------- -------- -------- -------- Domestic nonaccrual loans: Commercial, industrial and financial $ 81 $ 86 $ 71 $ 63 $ 43 Commercial real estate: Construction 2 2 2 2 3 Other commercial real estate 17 19 30 33 41 Consumer-related loans: Residential mortgages 30 36 36 42 46 Home equity 16 17 18 15 15 Credit card 6 6 6 6 6 Other 16 20 21 18 20 -------- --------- -------- -------- -------- 168 186 184 179 174 -------- --------- -------- -------- -------- International nonaccrual loans: Commercial 77 86 103 107 97 Consumer-related loans: Residential mortgages 56 50 39 36 34 Credit card 8 6 7 6 4 Other 49 47 33 26 18 -------- --------- -------- -------- -------- 190 189 182 175 153 -------- --------- -------- -------- -------- Total nonaccrual loans 358 375 366 354 327 OREO 24 27 29 28 42 -------- --------- -------- -------- -------- Total $ 382 $ 402 $ 395 $ 382 $ 369 ======== ========= ======== ======== ========
Provision and Reserve for Credit Losses The reserve for credit losses at March 31, 1999 was $758 million, or 1.77% of outstanding loans and leases, compared with $754 million, or 1.76% at December 31, 1998, and $725 million, or 1.65% at March 31, 1998. The reserve for credit losses was 212% of nonaccrual loans at March 31, 1999, compared with 201% at December 31, 1998 and 222% at March 31, 1998. The provision for credit losses was $70 million in the first quarter of 1999, compared with $120 million in the fourth quarter of 1998 and $140 million in the first quarter of 1998. Net credit losses were $66 million in the first quarter of 1999, compared with $113 million in the fourth quarter of 1998 and $141 million in the first quarter of 1998. The improvement in net credit losses from the fourth quarter reflected declines from the domestic commercial, Asian, Argentine and Brazilian portfolios. Net credit losses in the first quarter of 1998 included $66 million related to a previously discussed situation surrounding a series of loans made by a former officer in the Corporation's international private banking office in New York, as well as $16 million related to the national credit card portfolio that was subsequently contributed to a joint venture. Net credit losses as a percent of average loans and leases on an annualized basis were .63% in the first quarter of 1999, compared with .98% for the fourth quarter of 1998 and 1.30% in the first quarter of 1998. Net credit losses were as follows:
Fourth Quarter First Quarter ------- ------------- 1998 (in millions) 1999 1998 ---- ---- ---- Domestic $ 38 Commercial, industrial and financial $ 21 $ 13 0 Commercial real estate (3) (1) Consumer-related loans: 2 Residential mortgages 0 2 5 Credit card 4 20 2 Home equity 1 2 13 Other 13 19 ----- ----- ----- 60 36 55 International 34 Commercial 8 76 Consumer-related loans: 5 Credit card 4 2 14 Other 18 8 ----- ----- ----- 53 30 86 ----- ----- ----- $ 113 Total $ 66 $ 141 ===== ===== =====
The Corporation BankBoston, with assets of $75.7 billion and some 25,000 employees, is the nation's oldest commercial bank and New England's only global bank. BankBoston is engaged in consumer, small business and corporate banking in New England; delivering sophisticated financial solutions to corporations and governments nationally and internationally; and full service banking in leading Latin American markets. The Corporation's common stock is listed on the New York and Boston stock exchanges. On March 14, 1999, the Corporation entered into an agreement and plan of merger with Fleet Financial Group, Inc. The merger, which will be accounted for as a pooling of interests, is subject to shareholder and regulatory approvals, and is expected to be completed in the latter half of 1999. ************ This press release contains forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from estimates. These risks and uncertainties include, among other things, (1) significant changes in world financial markets, particularly in Latin America and Asia; (2) the ability of various countries in Asia and Latin America, particularly in Brazil, to institute timely and effective economic policies; (3) developments in general economic conditions, both domestic and international, including interest rate and currency fluctuations, market fluctuations and perceptions, and inflation; (4) legislative or regulatory developments, including changes in laws concerning taxes, banking, securities, insurance and other aspects of the financial services industry; (5) changes in the competitive environment for financial services organizations and the Corporation's ability to manage those changes; and (6) the Corporation's ability and resources, in both its domestic and international operations, to effectively execute its articulated business strategies and manage risks associated with the Year 2000 issue. In addition to these factors, the forward-looking statements in this press release relating to the Corporation's pending merger with Fleet Financial Group, Inc. are subject to a number of risks and uncertainties including, among other things, (1) the ability of the combined entity to fully realize expected cost savings from the merger or to realize those savings within the expected timeframe; (2) the level of revenues following the merger; (3) the level of costs related to the integration of the businesses of the Corporation and Fleet. Consolidated Balance Sheet (dollars in millions)
December 31 March 31 ----------- --------------------- 1998 1999 1998 ----- ------- ------- Assets Securities: $12,075 Available for sale $13,472 $10,669 459 Held to maturity 410 535 42,806 Loans and lease financing 42,775 43,822 (754) Reserve for credit losses (758) (725) ------- ------- ------- 42,052 Net loans and lease financing 42,017 43,097 5,733 Other earning assets 6,939 5,875 13,194 Cash and other assets 12,870 11,252 ------- ------- ------- $73,513 Total Assets $75,708 $71,428 ======= ======= ======= Liabilities and Stockholders' Equity $48,500 Deposits $48,468 $46,397 12,016 Funds borrowed 13,878 13,954 4,593 Notes payable 4,616 3,469 2,592 Other liabilities 2,788 2,054 Guaranteed preferred beneficial interests in 995 corporation's junior subordinated debentures 995 747 ------- ------- ------- 68,696 Total Liabilities 70,745 66,621 ------- ------- ------- Stockholders' Equity 0 Preferred equity 0 278 4,817 Common equity 4,963 4,529 ------- ------- ------- 4,817 Total Stockholders' Equity 4,963 4,807 ------- ------- ------- $73,513 Total Liabilities and Stockholders' Equity $75,708 $71,428 ======= ======= =======
Selected Average Balances
Quarter Ended Quarters Ended December 31 March 31 ----------- -------- 1998 1999 1998 ------ ------- ------- Assets $45,731 Loans and lease financing $42,536 $43,706 12,171 Securities 13,247 10,606 64,204 Total earning assets 64,280 60,487 75,331 Total assets 76,110 69,710 Liabilities and Stockholders' Equity 40,535 Interest bearing deposits 40,378 37,158 6,854 Noninterest bearing deposits 7,038 8,616 ------- ------- ------- 47,389 Total deposits 47,416 45,774 5,477 Notes payable (1) 5,526 3,749 59,291 Total interest bearing liabilities 59,280 53,216 4,769 Common stockholders' equity 4,877 4,452 4,769 Total stockholders' equity 4,877 4,730
(1) Amounts include guaranteed beneficial interests in the Corporation's junior subordinated debentures. Consolidated Statement of Income (dollars in millions, except per share amounts)
Quarter Ended Quarters Ended December 31 March 31 ----------- -------------- 1998 1999 1998 ----- ------ ------ $1,439.6 Interest income $1,371.7 $1,337.4 780.7 Interest expense 736.9 734.1 -------- -------- -------- 658.9 Net interest revenue 634.8 603.3 120.0 Provision for credit losses 70.0 140.0 -------- -------- -------- Net interest revenue after provision 538.9 for credit losses 564.8 463.3 -------- -------- -------- Noninterest income: 294.5 Financial service fees and commissions 333.5 165.1 82.4 Trust and investment management fees 79.1 79.3 19.0 Trading profits and commissions 39.0 34.0 (12.2) Securities gains/(losses), net (2.0) 24.8 216.8 Other income 145.1 285.8 -------- -------- -------- 600.5 Total noninterest income 594.7 589.0 -------- -------- -------- Noninterest expense: 390.9 Salaries 401.9 292.7 68.2 Employee benefits 71.5 60.9 62.9 Occupancy expense 64.0 54.4 45.9 Equipment expense 44.6 40.1 248.0 Other expense 223.5 212.9 -------- -------- -------- 815.9 Total noninterest expense 805.5 661.0 -------- -------- -------- 323.5 Income before income taxes 354.0 391.3 116.6 Provision for income taxes 131.0 153.0 -------- -------- -------- $ 206.9 NET INCOME $ 223.0 $ 238.3 ======== ======== ======== Net Income Per Common Share: $ .70 Basic $ .75 $ .80 $ .70 Diluted $ .75 $ .79 $ .29 Dividends Paid Per Common Share $ .32 $ .29 Average number of common shares, in thousands: 294,774 Basic 295,935 292,542 296,755 Diluted 298,477 296,840 $ 0 Preferred dividends $ 0 $ 4.4
Number of Employees
Mar. 31 Dec. 31 Mar. 31 1999 1998 1998 --------- --------- ---------- Full time equivalent employees 24,700 24,500 22,500
Other Data (dollars in millions, except per share amounts)
Quarter Ended Quarters Ended December 31 March 31 ----------- -------- 1998 1999 1998 ------- ------ ------ 1.09% Return on average total assets (annualized) 1.19% 1.39% 17.21% Return on average common equity (annualized) 18.54% 21.31% $668.2 Net interest revenue, fully taxable equivalent basis $639.0 $607.0 4.13% Consolidated net interest margin 4.03% 4.07% 3.64% Domestic net interest margin (estimated) 3.55% 4.14% 5.34% International net interest margin (estimated) 5.23% 3.92%
December 31 March 31 ----------- -------- 1998 1999 1998 ------ ------- ------ Common stockholders' equity: $ 4,817 Common stockholders' equity $ 4,963 $ 4,529 294,972 Common shares outstanding, in thousands 296,626 293,413 Per common share: $ 16.33 Book value $ 16.73 $ 15.44 38.94 Market value 43.31 55.13 Capital ratios/regulatory capital: 5.54% Tangible common equity ratio 5.56% 5.75% Risk-based capital ratios: Estimate 7.1% Tier 1 capital ratio (minimum required 4.00%) 7.2% 7.9% 11.7% Total capital ratio (minimum required 8.00%) 11.6% 12.3% 6.7% Leverage ratio 6.9% 7.3% $ 5,021 Tier 1 capital $ 5,182 $ 5,049 8,239 Total capital 8,331 7,874 70,377 Total risk-adjusted assets 71,671 63,848
Reserve for Credit Losses (dollars in millions)
Quarter Ended Quarters Ended December 31 March 31 ----------- -------------------- 1998 1999 1998 ------- ------ ------ $ 740.0 Beginning balance $753.5 $ 711.6 120.0 Provision for credit losses 70.0 140.0 6.6 Reserve of acquired companies 0.0 14.0 (132.9) Credit losses (83.6) (156.1) 19.8 Recoveries 17.5 15.6 -------- ------ ------- (113.1) Net credit losses (66.1) (140.5) -------- ------ ------- $ 753.5 Ending balance $757.4 $ 725.1 ======== ====== ======= 1.76% Reserve as a % of loans and leases 1.77% 1.65% ======== ====== ======= 201% Reserve as a % of nonaccrual loans 212% 222% ======== ====== =======
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