-----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, Et4Eexkb1+NX4toIKfiK6jiXd3AHQF0DKl9+05+o+di9mb52KF5OcmwltkTKxBJC BttAtVYzPNFPn6ohOkjFCw== 0000950131-02-002692.txt : 20020715 0000950131-02-002692.hdr.sgml : 20020715 20020715122432 ACCESSION NUMBER: 0000950131-02-002692 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20020715 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20020715 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NORTHERN TRUST CORP CENTRAL INDEX KEY: 0000073124 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 362723087 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-05965 FILM NUMBER: 02702609 BUSINESS ADDRESS: STREET 1: 50 S LASALLE ST CITY: CHICAGO STATE: IL ZIP: 60675 BUSINESS PHONE: 3126306000 FORMER COMPANY: FORMER CONFORMED NAME: NORTRUST CORP DATE OF NAME CHANGE: 19780525 8-K 1 d8k.txt 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) July 15, 2002 ---------------------- NORTHERN TRUST CORPORATION - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware - -------------------------------------------------------------------------------- (State or other jurisdiction of incorporation) 0-5965 36-2723087 - ------------------------------ --------------------------------- (Commission File Number) (IRS Employer Identification No.) Fifty South LaSalle Street, Chicago, Illinois 60675 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (312) 630-6000 --------------------------- Item 5. Other Events The information contained in the registrant's July 15, 2002 press release, reporting on the registrant's earnings for the second quarter of 2002, a copy of which is filed as Exhibit 99 hereto, is incorporated herein by reference. Item 7. Financial Statements and Exhibits (c) Exhibits: Exhibit 99 July 15, 2002 Press Release 2 SIGNATURE 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 thereunto duly authorized. NORTHERN TRUST CORPORATION -------------------------- (Registrant) Dated: July 15, 2002 By: /s/ Perry R. Pero ------------------------ Perry R. Pero Vice Chairman and Chief Financial Officer 3 EXHIBIT INDEX Number Description Page Number 99 July 15, 2002 Press Release 5 4 EX-99 3 dex99.txt PRESS RELEASE NEWS RELEASE Exhibit 99 Northern Trust Corporation 50 South LaSalle Street Chicago, Illinois 60675 Contact: Bev Fleming, Investor Relations (312) 444-7811 or Katherine Sopranos, Public Relations Release #01524 (312) 444-4281 http://www.northerntrust.com FOR IMMEDIATE RELEASE NORTHERN TRUST CORPORATION REPORTS 2002 SECOND QUARTER EARNINGS OF $.56 PER SHARE. (Chicago, July 15, 2002) Northern Trust Corporation reported net income per common share of $.56 for the second quarter, a decrease of 2% from the $.57 per share earned a year ago. Net income totaled $126.8 million, compared to $131.3 million reported in the second quarter of last year. This performance resulted in a return on average common equity of 18.57%. William A. Osborn, Chairman and Chief Executive Officer, commented, "The business environment remains very challenging given the significant and prolonged weakness in equity markets. Nevertheless, Northern achieved earnings of $.56 per share, just below the record results in last year's second quarter. We achieved this performance by aggressively managing expenses, which were up just 1% compared to last year. Revenues were essentially unchanged from last year, after adjusting for a $9.2 million nonrecurring gain in the prior year's second quarter. Trust assets under administration totaled $1.66 trillion, a decrease of less than 1% from a year ago, and assets under management fell a modest 4% to $327.4 billion. We continue to invest the necessary resources in our business and remain confident in our competitive position and focused strategy." SECOND QUARTER PERFORMANCE HIGHLIGHTS Revenues of $563.6 million were flat relative to last year's second quarter, after adjusting for the $9.2 million nonrecurring gain on the sale of an 80% interest in Northern Trust's lockbox -more- -2- SECOND QUARTER PERFORMANCE HIGHLIGHTS (continued) operations last year. Trust fees were $312.6 million in the quarter, down 2% compared to $317.7 million in the second quarter of last year. Trust fees represented 55% of total second quarter revenues and total fee-related income represented 71% of total revenues. Trust fees from Personal Financial Services (PFS) in the quarter decreased slightly and totaled $153.9 million compared to $154.7 million in the year-ago quarter. The decline in PFS trust fees primarily resulted from the weakness in the equity markets, partially offset by new business. Personal trust assets under administration totaled $163.4 billion at June 30, 2002 compared to $161.1 billion at June 30, 2001 and $166.8 billion at December 31, 2001. Of the total assets under administration, $91.8 billion is managed by Northern Trust, compared to $94.7 billion one year ago. Net new recurring PFS trust business transitioned during the first six months totaled approximately $22 million in annualized fees. Trust fees from Corporate & Institutional Services (C&IS) in the quarter decreased 3% to $158.7 million compared to $163.0 million in the year-ago quarter. The decline resulted from lower securities lending fees, which totaled $33.4 million compared to $42.7 million in last year's second quarter. In the prior year, securities lending spreads benefited from three decreases in the federal funds rate during the quarter. Driven primarily by growth in institutional money market funds, fees from asset management increased 4% and totaled $46.4 million compared to $44.7 million in the year-ago quarter. Custody fees increased 1% to $51.1 million. Northern Trust Retirement Consulting, L.L.C. recorded fees of $17.2 million compared to $15.1 million in last year's second quarter. C&IS trust assets under administration totaled $1.50 trillion at June 30, 2002, compared to $1.52 trillion at both June 30, 2001 and December 31, 2001. Of the C&IS trust assets under administration, $235.6 billion is managed by Northern Trust, down from $246.8 billion at June 30, 2001, but essentially unchanged from $236.1 billion at year-end. Trust assets under administration include $496.4 billion of global custody assets, up 13% from a year ago, reflecting strong new business in this area. Net new recurring C&IS trust business transitioned during the first six months totaled approximately $26 million in annualized fees. -more- -3- SECOND QUARTER PERFORMANCE HIGHLIGHTS (continued) Foreign exchange trading profits were $36.9 million for the quarter, compared to $40.5 million in the second quarter of last year and $24.3 million in the first quarter of 2002. The improvement from the first quarter reflects higher client trading volumes and greater market volatility in the U.S. dollar against other major currencies. Treasury management revenues, which include both fees and the computed value of compensating deposit balances, were $29.3 million, up 2% from last year's second quarter, due to new business and higher transaction volumes from existing clients. The fee portion of these revenues in the quarter was $23.5 million, up 14% from $20.6 million in the comparable quarter last year, partly as a result of more clients electing to pay for services in fees rather than in compensating deposit balances. Revenues from security commissions and trading income were $9.7 million, up 13% from the prior year. Other operating income was $17.6 million for the second quarter compared to $27.0 million in the same period last year, which included a $9.2 million nonrecurring gain. After adjusting for this one-time gain, other operating income was essentially unchanged from last year. Net interest income for the quarter, stated on a fully taxable equivalent basis, totaled $163.2 million, up 2% from $160.7 million reported in the prior year quarter. Total average earning assets of $33.0 billion were essentially unchanged from last year's second quarter. The net interest margin improved to 1.99% from 1.96% in the prior year quarter and 1.92% in the first quarter of 2002. Loan volume averaged $17.6 billion in the quarter, down 2% from the prior year. The provision for credit losses was $5.0 million in the quarter compared to $11.5 million for the same quarter last year and $5.0 million in the first quarter of 2002. The prior year quarter included $6.5 million related to the sale of $44.5 million in nonperforming loans. Net charge-offs in the quarter also totaled $5.0 million. Nonperforming assets totaled $110.6 million at June 30, 2002, down from $118.7 million at March 31, 2002 and up from $109.4 million at June 30, 2001. The $160.3 million reserve for credit losses at June 30, 2002 represented a reserve to loan ratio -more- -4- SECOND QUARTER PERFORMANCE HIGHLIGHTS (continued) of .88%, unchanged from a year ago. Nonaccrual loans of $109.7 million at quarter-end represented .60% of total loans and were covered 1.46 times by the reserve. Noninterest expenses totaled $355.9 million for the quarter, up 1% from $351.8 million in the year-ago quarter. Expenses continue to be closely monitored through various initiatives implemented by management to control certain expense categories, including controlling staff levels and limiting staff-related and other discretionary costs. Compensation and employee benefits represented 56% of total operating expenses and totaled $200.9 million, down 3% from a year ago as lower performance-based pay and the transfer of staff to the lockbox joint venture more than offset salary increases and higher benefit costs. The cost of lockbox operations is now included in other operating expenses as a direct payment to the joint venture for services. Staff on a full-time equivalent basis at June 30, 2002 totaled 9,384, a decline of 69 positions since year-end and an increase of 1% from a year ago, after adjusting for the impact of the lockbox joint venture. Other expense categories reflect increased costs associated with processing errors incurred in servicing and managing financial assets and performing banking activities, technology investments, office expansion, and payments made to the lockbox joint venture. These increases were partially offset by initiatives to manage costs that resulted in decreases in various expenses, including travel, hiring and other discretionary costs. The adoption of new accounting requirements in 2002 to eliminate goodwill amortization costs also reduced expenses by $2.6 million or $2.1 million after-tax. BALANCE SHEET Balance sheet assets averaged $37.1 billion for the quarter, up 2% from last year's second quarter average of $36.3 billion. Money market assets averaged $8.7 billion, up from $4.5 billion last year while the securities portfolio averaged $6.6 billion, down from $10.3 billion last year. Loans and leases averaged $17.6 billion for the quarter, down 2% from the prior year. -more- -5- BALANCE SHEET (continued) Residential mortgages increased $641 million, or 9%, to average $7.6 billion for the quarter and represented 43% of the total loan portfolio. Commercial and industrial loans averaged $4.3 billion, down $780 million or 15% from a year ago, while the remainder of the loan portfolio had a net decline of $215 million on average. Common stockholders' equity averaged a record $2.7 billion, up 10% from last year's second quarter. The increase primarily reflects the retention of earnings, offset in part by the repurchase of common stock pursuant to the Corporation's share buyback program. During the quarter, the Corporation acquired a total of 773,031 shares at a cost of $40.7 million. An additional 3.0 million shares may be purchased after June 30, 2002 under the current share buyback program. SIX-MONTH PERFORMANCE HIGHLIGHTS Net income per common share of $1.12 was unchanged from the same period of 2001. Net income was $254.4 million compared to $258.5 million earned last year and resulted in a return on average common equity of 18.99%. Total revenues decreased 1% from 2001 levels. Trust fees totaled $629.0 million, up 1% from $622.9 million last year. Foreign exchange trading profits totaled $61.2 million, 19% below the $75.4 million in the prior year. Treasury management revenues from both fees and the computed value of compensating deposit balances increased 2% to $59.0 million. Net interest income, stated on a fully taxable equivalent basis, totaled $324.1 million compared to $322.7 million reported last year. The $10.0 million provision for credit losses was $6.5 million lower than the $16.5 million required in 2001. Net charge-offs totaled $11.3 million and represented .13% of average loans compared to $19.7 million or .22% of average loans in 2001. Noninterest expenses were up 1% and totaled $698.7 million compared to $693.4 million a year ago. -more- -6- FORWARD-LOOKING STATEMENTS This news release may be deemed to include forward-looking statements, such as statements that relate to Northern Trust's financial goals, dividend policy, expansion and business development plans, business prospects and positioning with respect to market and pricing trends, new business results and outlook, changes in securities market prices, credit quality, planned capital expenditures and technology spending, and the effect of any extraordinary events and various other matters (including changes in accounting standards and interpretations) on Northern Trust's business and results. Actual results could differ materially from those indicated by these statements. Northern Trust Corporation's 2001 Annual Report to Shareholders, including the section of Management's Discussion and Analysis captioned "Factors Affecting Future Results," and periodic reports to the Securities and Exchange Commission contain additional information about factors that could affect actual results, including certain economic, interest rate, market and credit risks, competitive conditions, Northern Trust's success in executing various parts of its business plans, technology risks, including material systems interruptions or errors, and risks associated with changes in the regulatory framework resulting from enactment of the Gramm-Leach-Bliley Act of 1999 and other regulatory changes and factors. All forward-looking statements included in this news release are based on information available at the time of the release, and Northern Trust Corporation assumes no obligation to update any forward-looking statement. WEBCAST OF SECOND QUARTER EARNINGS CONFERENCE CALL Northern Trust's second quarter earnings conference call will be webcast live on Monday, July 15, 2002. The Internet webcast opens the call to all investors, allowing them to listen to the Chief Financial Officer's comments. The live call will be conducted at 11 a.m. CDT and is accessible on Northern Trust's web site at: http://www.northerntrust.com/aboutus/news/financial_releases.html The only authorized rebroadcast of the live call will be available on Northern Trust's web site beginning at approximately 1:00 p.m. CDT on July 15, 2002 until 6:00 p.m. on July 22, 2002. Participants will need Windows Mediatm software, which can be downloaded free through Northern's web site. This earnings release can also be accessed at the above web address. /// NORTHERN TRUST CORPORATION Page 1 (Supplemental Consolidated Financial Information) STATEMENT OF INCOME STATISTICS
($ In Millions Except Per Share Data) SECOND QUARTER - -------------------------------------- ----------------------------------------------- 2002 2001 % Change (*) ----------------------------------------------- ---------- Noninterest Income Trust Fees $ 312.6 $ 317.7 (2)% Foreign Exchange Trading Profits 36.9 40.5 (9) Treasury Management Fees 23.5 20.6 14 Security Commissions & Trading Income 9.7 8.5 13 Other Operating Income 17.6 27.0 (35) Investment Security Transactions .1 - N/M -------- -------- ------ Total Noninterest Income 400.4 414.3 (3) Interest Income (Taxable Equivalent) 323.0 464.0 (30) Interest Expense 159.8 303.3 (47) -------- -------- ------ Net Interest Income (Taxable Equivalent) 163.2 160.7 2 Total Revenue (Taxable Equivalent) 563.6 575.0 (2) Noninterest Expenses Compensation 167.4 175.5 (5) Employee Benefits 33.5 31.5 6 Occupancy Expense 26.0 25.3 3 Equipment Expense 22.8 21.6 6 Other Operating Expenses 106.2 97.9 8 -------- -------- ------ Total Noninterest Expenses 355.9 351.8 1 Provision for Credit Losses 5.0 11.5 (57) Taxable Equivalent Adjustment 11.9 14.3 (16) -------- -------- ------ Income before Income Taxes 190.8 197.4 (3) Provision for Income Taxes 64.0 66.1 (3) -------- -------- ------ NET INCOME $ 126.8 $ 131.3 (3)% ======== ======== ====== Net Income Per Common Share Basic $ 0.57 $ 0.59 (3)% Diluted 0.56 0.57 (2) Return on Average Common Equity 18.57 % 21.10 % Average Common Equity $2,727.3 $2,474.9 10 % Return on Average Assets 1.37 % 1.45 % Common Dividend Declared per Share $ 0.17 $ 0.155 10 % Preferred Dividends (millions) 0.6 1.1 (50) Average Common Shares Outstanding (000s) Basic 220,864 221,701 Diluted 226,552 229,484 Common Shares Outstanding (EOP) 221,667 222,610 ----------
(*) Percentage change calculations are based on actual balances rather than the rounded amounts presented in Supplemental Consolidated Financial Information. NORTHERN TRUST CORPORATION Page 2 (Supplemental Consolidated Financial Information) STATEMENT OF INCOME STATISTICS
($ In Millions Except Per Share Data) SIX MONTHS - ------------------------------------- ---------------------------------------------------- 2002 2001 % Change (*) ---------------------------------------------------- ---------- Noninterest Income Trust Fees $ 629.0 $ 622.9 1 % Foreign Exchange Trading Profits 61.2 75.4 (19) Treasury Management Fees 46.9 40.7 15 Security Commissions & Trading Income 19.6 18.1 8 Other Operating Income 35.3 46.7 (25) Investment Security Transactions .1 - N/M -------- -------- ------ Total Noninterest Income 792.1 803.8 (1) Interest Income (Taxable Equivalent) 649.7 971.3 (33) Interest Expense 325.6 648.6 (50) -------- -------- ------ Net Interest Income (Taxable Equivalent) 324.1 322.7 N/M Total Revenue (Taxable Equivalent) 1,116.2 1,126.5 (1) Noninterest Expenses Compensation 329.8 345.9 (5) Employee Benefits 69.3 65.3 6 Occupancy Expense 52.0 50.0 4 Equipment Expense 45.4 42.8 6 Other Operating Expenses 202.2 189.4 7 -------- -------- ------ Total Noninterest Expenses 698.7 693.4 1 Provision for Credit Losses 10.0 16.5 (39) Taxable Equivalent Adjustment 23.6 28.2 (16) -------- -------- ------ Income before Income Taxes 383.9 388.4 (1) Provision for Income Taxes 129.5 129.9 N/M -------- -------- ------ NET INCOME $ 254.4 $ 258.5 (2)% ======== ======== ====== Net Income Per Common Share Basic $ 1.15 $ 1.16 (1)% Diluted 1.12 1.12 0 Return on Average Common Equity 18.99 % 21.31 % Average Common Equity $2,690.5 $2,423.2 11 % Return on Average Assets 1.37 % 1.45 % Common Dividends Declared per Share $ 0.34 $ 0.31 10 % Preferred Dividends (millions) 1.1 2.5 (57) Average Common Shares Outstanding (000s) Basic 220,859 221,635 Diluted 226,960 229,652 Common Shares Outstanding (EOP) 221,667 222,610 ----------
NORTHERN TRUST CORPORATION Page 3 (Supplemental Consolidated Financial Information) BALANCE SHEET ($ IN MILLIONS)
JUNE 30 ------------------------------------------------------ 2002 2001 % Change (*) ------------------------------------------------------ Assets - ------ ----------- Money Market Assets $7,732.6 $3,977.4 94 % Securities U.S. Government 159.6 175.5 (9) Federal Agency and Other 5,695.6 8,843.8 (36) Municipal 637.5 488.3 31 Trading Account 13.2 11.2 18 --------- --------- ------ Total Securities 6,505.9 9,518.8 (32) Loans and Leases 18,273.8 18,194.9 N/M --------- --------- ------ Total Earning Assets 32,512.3 31,691.1 3 Reserve for Credit Losses (160.3) (159.7) N/M Cash and Due from Banks 2,369.9 2,224.3 7 Trust Security Settlement Receivables 771.6 544.9 42 Buildings and Equipment 497.3 480.4 4 Other Nonearning Assets 1,803.6 1,402.8 29 --------- --------- ------ Total Assets $37,794.4 $36,183.8 4 % ========= ========= ====== Liabilities and Stockholders' Equity - ------------------------------------ Interest-Bearing Deposits Savings $8,005.2 $7,660.1 5 % Other Time 343.2 1,429.6 (76) Foreign Office Time 8,902.7 8,030.4 11 --------- --------- ------ Total Interest-Bearing Deposits 17,251.1 17,120.1 1 Borrowed Funds 8,806.5 7,749.6 14 Senior Notes and Long-Term Debt 1,484.1 1,534.9 (3) --------- --------- ------ Total Interest-Related Funds 27,541.7 26,404.6 4 Demand & Other Noninterest-Bearing Deposits 5,672.4 5,726.1 (1) Other Liabilities 1,667.0 1,392.0 20 --------- --------- ------ Total Liabilities 34,881.1 33,522.7 4 Common Equity 2,793.3 2,541.1 10 Preferred Equity 120.0 120.0 - --------- --------- ------ Total Liabilities and Stockholders' Equity $37,794.4 $36,183.8 4 % ========= ========= ====== -----------
NORTHERN TRUST CORPORATION Page 4 (Supplemental Consolidated Financial Information) AVERAGE BALANCE SHEET ($ IN MILLIONS)
SECOND QUARTER ------------------------------------------------------ 2002 2001 % Change (*) ------------------------------------------------------ Assets - ------ ----------- Money Market Assets $ 8,728.2 $ 4,511.2 93 % Securities U.S. Government 165.6 207.4 (20) Federal Agency and Other 5,858.7 9,627.3 (39) Municipal 602.8 487.4 24 Trading Account 9.2 16.6 (45) --------- --------- ------ Total Securities 6,636.3 10,338.7 (36) Loans and Leases 17,607.2 17,961.4 (2) --------- --------- ------ Total Earning Assets 32,971.7 32,811.3 N/M Reserve for Credit Losses (160.3) (163.8) (2) Nonearning Assets 4,267.4 3,654.9 17 --------- --------- ------ Total Assets $37,078.8 $36,302.4 2 % ========= ========= ====== Liabilities and Stockholders' Equity - ------------------------------------ Interest-Bearing Deposits Savings $ 7,952.4 $ 7,925.0 N/M % Other Time 385.7 1,519.3 (75) Foreign Office Time 9,361.5 8,306.9 13 --------- --------- ------ Total Interest-Bearing Deposits 17,699.6 17,751.2 N/M Borrowed Funds 8,636.2 8,335.9 4 Senior Notes and Long-Term Debt 1,484.1 1,547.0 (4) --------- --------- ------ Total Interest-Related Funds 27,819.9 27,634.1 1 Demand & Other Noninterest-Bearing Deposits 5,180.5 4,947.9 5 Other Liabilities 1,231.1 1,125.5 9 --------- --------- ------ Total Liabilities 34,231.5 33,707.5 2 Common Equity 2,727.3 2,474.9 10 Preferred Equity 120.0 120.0 - --------- --------- ------ Total Liabilities and Stockholders' Equity $37,078.8 $36,302.4 2 % ========= ========= ====== -----------
NORTHERN TRUST CORPORATION Page 5 (Supplemental Consolidated Financial Information)
QUARTERLY TREND DATA 2002 2001 - --------------------- ($ In Millions Except Per Share Data) Quarters Quarters - ------------------------------------- ----------------------- ------------------------------------- Second First Fourth Third Second ----------------------- ------------------------------------- Net Income Summary - ------------------ ---------- Trust Fees $ 312.6 $ 316.4 $ 304.1 $ 304.3 $ 317.7 Other Noninterest Income 87.8 75.3 82.3 85.5 96.6 Net Interest Income (Taxable Equivalent) 163.2 160.9 163.6 161.6 160.7 -------- -------- -------- -------- -------- Total Revenue (Taxable Equivalent) 563.6 552.6 550.0 551.4 575.0 Provision for Credit Losses 5.0 5.0 45.0 5.0 11.5 Noninterest Expenses 355.9 342.8 339.9 343.6 351.8 -------- -------- -------- -------- -------- Pretax Income (Taxable Equivalent) 202.7 204.8 165.1 202.8 211.7 Taxable Equivalent Adjustment 11.9 11.7 11.8 12.6 14.3 Provision for Income Taxes 64.0 65.5 50.9 63.6 66.1 -------- -------- -------- -------- -------- Net Income $ 126.8 $ 127.6 $ 102.4 $ 126.6 $ 131.3 ======== ======== ======== ======== ======== Per Common Share - ---------------- Net Income - Basic $ 0.57 $ 0.58 $ 0.46 $ 0.57 $ 0.59 - Diluted 0.56 0.56 0.45 0.55 0.57 Dividend Declared 0.17 0.17 0.17 0.155 0.155 Book Value (EOP) 12.60 12.23 11.97 11.73 11.42 Market Value (EOP) 44.06 60.11 60.22 52.48 62.50 Ratios - ------ Return on Average Common Equity 18.57 % 19.42 % 15.45 % 19.63 % 21.10 % Return on Average Assets 1.37 1.37 1.14 1.43 1.45 Net Interest Margin 1.99 1.92 2.04 2.05 1.96 Productivity Ratio (*) 158 % 161 % 162 % 160 % 163 % Risk-based Capital Ratios Tier 1 10.78 % 10.97 % 10.88 % 10.58 % 10.45 % Total (Tier 1 + Tier 2) 13.87 14.28 14.25 13.92 13.97 Leverage 7.95 7.63 7.93 7.88 7.43 Trust Assets ($ in Billions) - EOP - ---------------------------------- Corporate $1,498.7 $1,542.3 $1,517.8 $1,431.5 $1,516.0 Personal 163.4 173.4 166.8 149.8 161.1 -------- -------- -------- -------- -------- Total Trust Assets $1,662.1 $1,715.7 $1,684.6 $1,581.3 $1,677.1 ======== ======== ======== ======== ======== Memo: Managed Assets $ 327.4 $ 337.7 $ 330.1 $ 327.5 $ 341.5 Asset Quality ($ in Millions) - EOP Nonaccrual Loans $ 109.7 $ 117.9 $ 108.7 $ 114.2 $ 107.9 Other Real Estate Owned (OREO) 0.9 0.8 0.8 1.6 1.5 -------- -------- -------- -------- -------- Total Nonperforming Assets $ 110.6 $ 118.7 $ 109.5 $ 115.8 $ 109.4 ======== ======== ======== ======== ======== Nonperforming Assets / Loans & OREO 0.61 % 0.67 % 0.61 % 0.62 % 0.60 % Gross Charge-offs $ 5.4 $ 6.5 $ 41.7 $ 6.7 $ 19.9 Gross Recoveries 0.4 0.2 0.2 0.1 0.2 -------- -------- -------- -------- -------- Net Charge-offs $5.0 $ 6.3 $ 41.5 $6.6 $ 19.7 ======== ======== ======== ======== ======== Net Charge-offs (Annualized) to Average Loans 0.11 % 0.14 % 0.93 % 0.15 % 0.44 % Reserve for Credit Losses $ 160.3 $ 160.3 $ 161.6 $ 158.1 $ 159.7 Reserve to Nonaccrual and Restructured Loans 146 % 136 % 149 % 138 % 148 % ----------
(*) The productivity ratio is defined as total revenue on a taxable equivalent basis divided by noninterest expenses. -----END PRIVACY-ENHANCED MESSAGE-----