EX-99.1 2 exhibit991.htm PRESS RELEASE DATED OCTOBER 16, 2006 EXHIBIT 99.1

Exhibit 99.1

 

[exhibit991002.gif]

 
 

News Release

Marshall & Ilsley Corporation

770 North Water Street

Milwaukee, Wisconsin 53202

414 765-7700 Main

414 298-2921 Fax

mibank.com

 


 

For Release:

Immediately

   
 

Contact:

Greg Smith, senior vice president, chief financial officer

414 765-7727

Dave Urban, vice president, director of investor relations

414 765-7853



MARSHALL & ILSLEY CORPORATION ANNOUNCES THIRD QUARTER RESULTS


Milwaukee, Wis. – Oct. 16, 2006 – Marshall & Ilsley Corporation (NYSE: MI) today reported 2006 third quarter core operating income of $210.9 million, or $0.81 per diluted share, as compared to $179.7 million, or $0.75 per diluted share, in the third quarter of 2005. The Corporation reported 2006 third quarter net income of $238.9 million, or $0.92 per diluted share.  The $0.11 per diluted share difference between core operating income and net income as reported reflects an adjustment in the accounting treatment of derivatives used to manage interest rate risk as described in more detail below.  Third quarter core operating income increased 17.4 percent over the same period in 2005.


Core operating income for the nine months ended September 30, 2006 was $601.4 million, or $2.38 per diluted share, compared to $528.7 million, or $2.25 per diluted share, in the nine months ended September 30, 2005.  Net income for the nine months ended September 30, 2006 was $602.5 million, or $2.38 per diluted share.


Return on average assets based on core operating income for the third quarter was 1.53 percent, as compared to 1.62 percent for the same period in 2005. Return on average equity based on core operating income was 14.22 percent this quarter as compared to 15.85 percent for the third quarter of 2005.


The Corporation’s provision for loan and lease losses was $10.3 million in the third quarter of 2006, versus $9.9 million in the same period last year. Net charge-offs for the period were $8.1 million, or 0.08 percent of total average loans and leases outstanding this quarter, and $7.8 million a year ago or 0.10 percent of total average loans and leases. At September 30, 2006, the allowance for loan and lease losses was 1.01 percent of total loans and leases, compared to 1.09 percent a year earlier. Nonperforming loans and leases were 0.53 percent of total loans and leases at September 30, 2006, and 0.44 percent at September 30, 2005.


Assets at September 30, 2006 were $55.5 billion, compared to $45.0 billion at September 30, 2005. Book value per share was $23.51 at September 30, 2006, compared to $19.81 for the same date a year ago. Total loans and leases were $41.3 billion, compared to $33.1 billion at September 30, 2005.


Accounting Adjustment for Derivatives


The Corporation has elected early application of Staff Accounting Bulletin 108, and, as a result, has adjusted its opening financial position for 2006 and the financial results for the first two quarters of 2006 to reflect a change in its hedge accounting under Statement of Financial Accounting Standards (SFAS) No. 133, Accounting for Derivative Instruments and Hedging Activities.  The Corporation utilizes interest rate swaps to hedge its risk in connection with certain financial instruments, and the Corporation had applied hedge accounting under SFAS 133 to these transactions from inception.  Due to the recent expansion of certain highly technical interpretations of SFAS 133, specifically hedge designation under the “matched-term” method, certain of the derivative transactions entered into by the Corporation do not qualify for hedge accounting.  As a result, any fluctuation in the market value of the derivatives should have been recorded through the income statement with no corresponding offset to the hedged items, or accumulated other comprehensive income.


This adjustment results in Shareholders’ Equity at January 1, 2006 being reduced by $18.0 million, and earnings per diluted share for the first and second quarters of 2006 being reduced by $0.06 and $0.05, respectively.


The Corporation is taking various actions, including terminating existing swaps that no longer qualify for hedge accounting, such that the Corporation believes its financial results going forward will not be materially impacted by fluctuations in the market value of derivatives used to hedge interest rate risk.  The Corporation expects that these actions will result in fourth quarter 2006 charges of approximately $0.03 per diluted share.


“Our issue relates strictly to the evolving accounting interpretations related to hedge accounting.  It is important to understand that this adjustment does not impact our growth trends, our underlying credit quality, or our key performance ratios in any significant manner,” said Greg Smith, the Corporation’s chief financial officer.


Marshall & Ilsley Corporation (NYSE: MI) is a diversified financial services corporation headquartered in Milwaukee, Wis., with $55.5 billion in assets. Founded in 1847, M&I Marshall & Ilsley Bank is the largest Wisconsin-based bank. M&I Bank has 195 offices throughout the state. In addition, M&I has 42 locations throughout Arizona; 17 offices in Kansas City and nearby communities; 17 offices on Florida’s west coast; 16 offices in metropolitan Minneapolis/St. Paul, and one in Duluth, Minn.; three offices in Tulsa, Okla.; and one office in Las Vegas, Nev. M&I’s Southwest Bank subsidiary has 15 offices in the greater St. Louis area. Metavante Corporation, Marshall & Ilsley Corporation’s wholly owned technology subsidiary, provides virtually all of the technology an organization needs to offer financial services. M&I also provides trust and investment management, equipment leasing, mortgage banking, asset-based lending, financial planning, investments, and insurance services from offices throughout the country and on the Internet (www.mibank.com or www.micorp.com). M&I’s customer-based approach, internal growth, and strategic acquisitions have made M&I a nationally recognized leader in the financial services industry.


This press release contains non-GAAP financial measures.  For a reconciliation of the non-GAAP financial measures to the comparable financial measures calculated in accordance with GAAP, please see the reconciliation table included in the attachment to this press release.


This press release contains forward-looking statements concerning M&I’s future operations and financial results.  Such statements are subject to important factors that could cause M&I’s actual results to differ materially from those anticipated by the forward-looking statements. These factors include (i) the Risk Factors identified in Item 1A of M&I’s Annual Report on Form 10-K for the year ended December 31, 2005, which factors are incorporated herein by reference, and (ii) such other factors as may be described from time to time in M&I’s SEC filings.


Note:

Marshall & Ilsley Corporation will hold a conference call at 11:00 a.m. Central Daylight Time Monday, October 16, regarding third quarter earnings. For those interested in listening, please call 1-800-946-0720 and ask for M&I’s quarterly earnings release conference call. If you are unable to join us at this time, a replay of the call will run through October 23, 5:00 p.m. Central Daylight Time by calling 1-888-203-1112 and entering pass code 652 55 74 to listen.


Supplemental financial information referenced in the conference call can be found at www.micorp.com, Investor Relations, after 8:00 a.m. on October 16.


Marshall & Ilsley Corporation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

Nine Months Ended

 

 

 

 

 

September 30,

 

September 30,

 

Percent

 

 

September 30,

 

September 30,

 

Percent

 

 

 

2006

 

2005

 

Change

 

 

2006

 

2005

 

Change

 

PER SHARE DATA      

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted:  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Net  Income  

 

$0.92

 

$0.75

 

22.7

%

 

$2.38

 

$2.25

 

5.8

%

   Core Operating Income

 

$0.81

 

$0.75

 

8.0

%

 

$2.38

 

$2.25

 

5.8

%

Basic:  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Net  Income  

 

0.94

 

0.77

 

22.1

 

 

2.44

 

2.30

 

6.1

 

   Core Operating Income

 

0.83

 

0.77

 

7.8

 

 

2.43

 

2.30

 

5.7

 

Dividend Declared  

 

0.27

 

0.24

 

12.5

 

 

0.78

 

0.69

 

13.0

 

Book Value  

 

23.51

 

19.81

 

18.7

 

 

23.51

 

19.81

 

18.7

 

Shares  Outstanding (millions):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Average - Diluted  

 

259.7

 

238.2

 

9.0

 

 

252.8

 

234.8

 

7.7

 

     End of Period

 

254.8

 

234.4

 

8.7

 

 

254.8

 

234.4

 

8.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME STATEMENT ($millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Income (FTE)  

 

$400.5

 

$330.3

 

21.3

%

 

$1,118.1

 

$958.7

 

16.6

%

Provision for Loan and Lease Losses  

 

10.3

 

9.9

 

4.0

 

 

32.3

 

31.8

 

1.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Data Processing Services  

 

339.5

 

296.0

 

14.7

 

 

1,027.5

 

861.3

 

19.3

 

     Wealth Management

 

54.6

 

48.3

 

13.0

 

 

163.7

 

143.5

 

14.1

 

     Service Charge on Deposits  

 

25.7

 

23.6

 

8.9

 

 

73.3

 

70.7

 

3.7

 

     Mortgage Banking  

 

13.4

 

15.8

 

-15.2

 

 

38.1

 

35.1

 

8.5

 

     Net Investment Securities Gains (Losses)  

 

4.5

 

                    7.4

 

-39.2

 

 

6.6

 

                  42.6

 

-84.5

 

     Mark to Market Adjustments

 

43.8

 

  -  

 

n.m.

 

 

1.8

 

-  

 

n.m.

 

     All Other  

 

39.6

 

39.0

 

1.5

 

 

122.0

 

113.7

 

7.3

 

Total Non-Interest Revenues  

 

521.1

 

430.1

 

21.2

 

 

1,433.0

 

1,266.9

 

13.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Salaries and Employee Benefits  

 

314.3

 

278.0

 

13.1

 

 

898.8

 

792.1

 

13.5

 

     Occupancy and Equipment  

 

61.8

 

54.6

 

13.2

 

 

183.5

 

158.8

 

15.6

 

     Intangible Amortization   

 

12.1

 

6.1

 

98.4

 

 

33.0

 

22.3

 

48.0

 

     Other  

 

158.4

 

131.8

 

20.2

 

 

480.7

 

400.2

 

20.1

 

Total Non-Interest Expenses  

 

546.6

 

470.5

 

16.2

 

 

1,596.0

 

1,373.4

 

16.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax Equivalent Adjustment  

 

7.3

 

8.5

 

-14.1

 

 

23.0

 

25.1

 

-8.4

 

Pre-Tax Earnings  

 

357.4

 

271.5

 

31.6

 

 

899.8

 

795.3

 

13.1

 

Income Taxes  

 

118.5

 

91.8

 

29.1

 

 

297.3

 

266.6

 

11.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net  Income

 

$238.9

 

$179.7

 

32.9

%

 

$602.5

 

$528.7

 

14.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core Operating Income

 

$210.9

 

$179.7

 

17.4

%

 

$601.4

 

$528.7

 

13.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

KEY  RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Margin (FTE) / Avg. Earning Assets  

 

3.29

%

3.36

%

 

 

3.27

%

3.41

%

 

 

Interest Spread (FTE)  

 

2.67

 

2.87

 

 

 

 

2.67

 

2.97

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency  Ratio   

 

                  59.6

 

                  62.5

 

 

 

 

                  62.7

 

                  62.1

 

 

 

Efficiency  Ratio  without  Metavante   

 

48.5

 

50.8

 

 

 

 

50.8

 

50.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Assets    

 

1.74

 

1.62

 

 

 

 

1.56

 

1.66

 

 

 

Return on Equity   

 

16.17

 

15.85

 

 

 

 

14.78

 

16.63

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity / Assets (End of Period)  

 

10.73

 

10.25

 

 

 

 

10.73

 

10.25

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Core Operating Income to Net Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

Nine Months Ended

 

 

 

 

 

September 30, 2006

 

 

 

 

September 30, 2006

 

 

 

 

 

Amount

 

Per

 

 

 

 

Amount

 

Per

 

 

 

 

 

($ in millions)

 

Diluted Share

 

 

 

 

($ in millions)

 

Diluted Share

 

 

 

Net  Income

 

$238.9

 

$0.92

 

 

 

 

$602.5

 

$2.38

 

 

 

Mark to Market Adjustments (after-tax)

 

(28.0)

 

(0.11)

 

 

 

 

(1.1)

 

0.00

 

 

 

Core Operating Income

 

$210.9

 

$0.81

 

 

 

 

$601.4

 

$2.38

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Shareholders' Equity

 

$5,860

 

 

 

 

 

 

$5,450

 

 

 

 

 

Cumulative Mark to Market Adjustments (after-tax)

 

23

 

 

 

 

 

 

23

 

 

 

 

 

Adjusted Average Shareholders' Equity

 

$5,883

 

 

 

 

 

 

$5,473

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Based on Core Operating Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Return on Assets

 

1.53

%

 

 

 

 

 

1.56

%

 

 

 

     Return on Equity

 

14.22

 

 

 

 

 

 

14.69

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Efficiency  Ratio   

 

                  62.6

 

 

 

 

 

 

                  62.8

 

 

 

 

 

     Efficiency  Ratio  without  Metavante   

 

52.4

 

 

 

 

 

 

50.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marshall & Ilsley Corporation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

September 30,

 

Percent

 

 

 

 

 

 

 

 

ASSETS ($millions)

 

2006

 

2005

 

Change

 

 

 

 

 

 

 

 

Cash & Due  From  Banks  

 

$1,250

 

$1,080

 

15.7

%

 

 

 

 

 

 

 

Trading Securities  

 

45

 

28

 

60.7

 

 

 

 

 

 

 

 

Short - Term  Investments  

 

254

 

306

 

-17.0

 

 

 

 

 

 

 

 

Investment  Securities   

 

7,349

 

6,330

 

16.1

 

 

 

 

 

 

 

 

Loans and Leases:  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Commercial  Loans & Leases  

 

12,327

 

9,721

 

26.8

 

 

 

 

 

 

 

 

     Commercial  Real  Estate  

 

14,284

 

10,259

 

39.2

 

 

 

 

 

 

 

 

     Residential  Real  Estate   

 

8,611

 

6,491

 

32.7

 

 

 

 

 

 

 

 

     Home Equity Loans & Lines  

 

4,416

 

4,916

 

-10.2

 

 

 

 

 

 

 

 

     Personal  Loans and Leases  

 

1,627

 

1,719

 

-5.4

 

 

 

 

 

 

 

 

Total  Loans and Leases   

 

41,265

 

33,106

 

24.6

 

 

 

 

 

 

 

 

Reserve for Loan & Leases Losses  

 

(417)

 

(362)

 

15.2

 

 

 

 

 

 

 

 

Premises and Equipment, net  

 

568

 

469

 

21.1

 

 

 

 

 

 

 

 

Goodwill and Intangibles  

 

3,221

 

2,388

 

34.9

 

 

 

 

 

 

 

 

Other  Assets  

 

1,948

 

1,650

 

18.1

 

 

 

 

 

 

 

 

Total  Assets  

 

$55,483

 

$44,995

 

23.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES & SHAREHOLDERS' EQUITY ($millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Noninterest Bearing  

 

$5,566

 

$5,224

 

6.5

%

 

 

 

 

 

 

 

     Bank Issued Interest Bearing Activity  

 

12,141

 

10,075

 

20.5

 

 

 

 

 

 

 

 

     Bank Issued Time  

 

8,007

 

4,790

 

67.2

 

 

 

 

 

 

 

 

     Total Bank Issued Deposits  

 

25,714

 

20,089

 

28.0

 

 

 

 

 

 

 

 

     Wholesale Deposits  

 

7,746

 

6,902

 

12.2

 

 

 

 

 

 

 

 

Total  Deposits  

 

33,460

 

26,991

 

24.0

 

 

 

 

 

 

 

 

Short - Term  Borrowings  

 

7,006

 

5,497

 

27.5

 

 

 

 

 

 

 

 

Long - Term  Borrowings  

 

7,489

 

6,375

 

17.5

 

 

 

 

 

 

 

 

Other  Liabilities  

 

1,572

 

1,520

 

3.4

 

 

 

 

 

 

 

 

Shareholders'  Equity  

 

5,956

 

4,612

 

29.1

 

 

 

 

 

 

 

 

Total  Liabilities  &  Shareholders'  Equity  

 

$55,483

 

$44,995

 

23.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

Nine Months Ended

 

 

 

 

 

September 30,

 

September 30,

 

Percent

 

 

September 30,

 

September 30,

 

Percent

 

 

 

2006

 

2005

 

Change

 

 

2006

 

2005

 

Change

 

AVERAGE  ASSETS ($millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash & Due  From  Banks  

 

$1,039

 

$993

 

4.6

%

 

$1,017

 

$950

 

7.1

%

Trading Securities  

 

54

 

26

 

107.7

 

 

46

 

25

 

84.0

 

Short - Term  Investments  

 

302

 

273

 

10.6

 

 

331

 

244

 

35.7

 

Investment  Securities  

 

7,167

 

6,209

 

15.4

 

 

6,877

 

6,158

 

11.7

 

Loans and Leases:  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Commercial  Loans & Leases  

 

12,088

 

9,588

 

26.1

 

 

11,474

 

9,270

 

23.8

 

     Commercial  Real  Estate  

 

14,065

 

10,145

 

38.6

 

 

12,755

 

9,846

 

29.5

 

     Residential  Real  Estate   

 

8,395

 

6,170

 

36.1

 

 

7,890

 

5,427

 

45.4

 

     Home Equity Loans and Lines  

 

4,474

 

4,905

 

-8.8

 

 

4,591

 

5,044

 

-9.0

 

     Personal  Loans and Leases  

 

1,586

 

1,671

 

-5.1

 

 

1,640

 

1,642

 

-0.1

 

Total  Loans and Leases   

 

40,608

 

32,479

 

25.0

 

 

38,350

 

31,229

 

22.8

 

Reserve  for  Loan  &  Leases  Losses  

 

(420)

 

(364)

 

15.4

 

 

(402)

 

(362)

 

11.0

 

Premises and Equipment, net  

 

570

 

459

 

24.2

 

 

544

 

452

 

20.4

 

Goodwill and Intangibles  

 

3,169

 

2,317

 

36.8

 

 

2,937

 

2,205

 

33.2

 

Other  Assets

 

2,095

 

1,743

 

20.2

 

 

1,990

 

1,720

 

15.7

 

Total  Assets  

 

$54,584

 

$44,135

 

23.7

%

 

$51,690

 

$42,621

 

21.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Memo:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Earning Assets  

 

$48,131

 

$38,987

 

 

 

 

$45,604

 

$37,656

 

 

 

Average Earning Assets Excluding Investment Securities  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

             Unrealized Gains/Losses  

 

$48,250

 

$38,979

 

 

 

 

$45,699

 

$37,636

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AVG  LIABILITIES & SHAREHOLDERS' EQUITY ($millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Noninterest Bearing  

 

$5,462

 

$5,049

 

8.2

%

 

$5,271

 

$4,858

 

8.5

%

     Bank Issued Interest Bearing Activity  

 

12,027

 

10,028

 

19.9

 

 

11,383

 

9,919

 

14.8

 

     Bank Issued Time  

 

7,980

 

4,516

 

76.7

 

 

7,066

 

4,192

 

68.6

 

     Total Bank Issued Deposits  

 

25,469

 

19,593

 

30.0

 

 

23,720

 

18,969

 

25.0

 

     Wholesale Deposits  

 

7,452

 

6,759

 

10.3

 

 

7,347

 

6,720

 

9.3

 

Total  Deposits  

 

32,921

 

26,352

 

24.9

 

 

31,067

 

25,689

 

20.9

 

Short - Term  Borrowings  

 

3,664

 

2,859

 

28.2

 

 

3,485

 

3,048

 

14.3

 

Long - Term  Borrowings  

 

10,366

 

8,686

 

19.3

 

 

9,944

 

7,943

 

25.2

 

Other  Liabilities  

 

1,773

 

1,740

 

1.9

 

 

1,744

 

1,691

 

3.1

 

Shareholders'  Equity  

 

5,860

 

4,498

 

30.3

 

 

5,450

 

4,250

 

28.2

 

Total  Liabilities  &  Shareholders'  Equity  

 

$54,584

 

$44,135

 

23.7

%

 

$51,690

 

$42,621

 

21.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Memo:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Interest Bearing Liabilities  

 

$41,489

 

$32,848

 

 

 

 

$39,225

 

$31,822

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marshall & Ilsley Corporation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

Nine Months Ended

 

 

 

 

 

September 30,

 

September 30,

 

Percent

 

 

September 30,

 

September 30,

 

Percent

 

 

 

2006

 

2005

 

Change

 

 

2006

 

2005

 

Change

 

CREDIT  QUALITY (a)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Charge-Offs ($millions)  

 

$8.1

 

$7.8

 

3.8

%

 

$24.0

 

$27.7

 

-13.4

%

Net Charge-Offs / Average Loans & Leases  

 

0.08

%

0.10

%

 

 

0.08

%

0.12

%

 

 

Loan and Lease Loss  Reserve ($millions)  

 

$417.4

 

$362.3

 

15.2

%

 

$417.4

 

$362.3

 

15.2

%

Loan and Lease Loss  Reserve / Period-End  Loans & Leases  

 

1.01

%

1.09

%

 

 

1.01

%

1.09

%

 

 

Non-Performing Loans & Leases (NPL) ($millions)  

 

$219.2

 

$147.3

 

48.8

%

 

$219.2

 

$147.3

 

48.8

%

NPL's / Period-End Loans & Leases  

 

0.53

%

0.44

%

 

 

0.53

%

0.44

%

 

 

Loan and Lease Loss Reserve / Non-Performing Loans & Leases  

 

190

%

246

%

 

 

190

%

246

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MARGIN  ANALYSIS (b)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans and Leases:  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Commercial  Loans & Leases  

 

7.62

%

6.17

%

 

 

7.31

%

5.86

%

 

 

     Commercial  Real  Estate  

 

7.63

 

6.33

 

 

 

 

7.34

 

6.14

 

 

 

     Residential  Real  Estate   

 

7.12

 

6.18

 

 

 

 

7.00

 

5.99

 

 

 

     Home Equity Loans and Lines  

 

7.49

 

6.32

 

 

 

 

7.22

 

6.16

 

 

 

     Personal  Loans and Leases  

 

7.40

 

6.21

 

 

 

 

7.11

 

5.91

 

 

 

Total  Loans and Leases   

 

7.49

 

6.25

 

 

 

 

7.24

 

6.02

 

 

 

Investment  Securities  

 

5.20

 

4.99

 

 

 

 

5.19

 

5.01

 

 

 

Short - Term  Investments  

 

5.12

 

3.60

 

 

 

 

4.78

 

3.21

 

 

 

Interest Income (FTE) / Avg. Interest Earning Assets  

 

7.13

%

6.03

%

 

 

6.90

%

5.84

%

 

 

Interest Bearing Deposits:  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Bank Issued Interest Bearing Activity  

 

3.47

%

2.06

%

 

 

3.22

%

1.72

%

 

 

     Bank Issued Time  

 

4.55

 

3.29

 

 

 

 

4.27

 

3.03

 

 

 

     Total Bank Issued Deposits  

 

3.90

 

2.44

 

 

 

 

3.62

 

2.11

 

 

 

     Wholesale Deposits  

 

5.00

 

3.29

 

 

 

 

4.74

 

2.97

 

 

 

Total Interest Bearing Deposits  

 

4.20

 

2.71

 

 

 

 

3.94

 

2.39

 

 

 

Short - Term  Borrowings  

 

5.39

 

3.88

 

 

 

 

5.07

 

3.43

 

 

 

Long - Term  Borrowings  

 

4.84

 

4.04

 

 

 

 

4.69

 

3.94

 

 

 

Interest Expense / Avg. Interest Bearing Liabilities  

 

4.46

%

3.16

%

 

 

4.23

%

2.87

%

 

 

Net Interest Margin(FTE) / Avg. Earning Assets  

 

3.29

%

3.36

%

 

 

3.27

%

3.41

%

 

 

Interest Spread (FTE)  

 

2.67

%

2.87

%

 

 

2.67

%

2.97

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes:   (a)   Includes Loans past due 90 days or more.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

             (b)   Based on average balances excluding fair value adjustments for available for sale securities.