-----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, CLfygf57ZihgM+d606mEen7yo5SSWHU3bpmsv0kznyQi+GpiS92iQetq3idD6xr+ r/5ezxn9bPaUaH5UWSXuHg== 0000946275-03-000267.txt : 20030423 0000946275-03-000267.hdr.sgml : 20030423 20030423171434 ACCESSION NUMBER: 0000946275-03-000267 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030422 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030423 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WSFS FINANCIAL CORP CENTRAL INDEX KEY: 0000828944 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 222866913 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-16668 FILM NUMBER: 03660633 BUSINESS ADDRESS: STREET 1: 838 MARKET ST CITY: WILMINGTON STATE: DE ZIP: 19801 BUSINESS PHONE: 3027926000 MAIL ADDRESS: STREET 1: 838 MARKET STREET CITY: WILMINGTON STATE: DE ZIP: 19801 FORMER COMPANY: FORMER CONFORMED NAME: STAR STATES CORP DATE OF NAME CHANGE: 19920703 8-K 1 f8k_042203-0312.txt 8K UNITED STATES 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 22, 2003 WSFS Financial Corporation ------------------------------------------------------------------- (Exact name of Registrant as specified in its Charter) Delaware 0-16668 22-2866913 - ---------------------------- ----------------- ----------- (State or other jurisdictio (SEC Commission (IRS Employer of incorporation) File No.) Identification Number) 838 Market Street, Wilmington, Delaware 19899 - ---------------------------------------- -------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (302)792-6000 ------------- Not Applicable ---------------------------------------------------------------- (Former name or former address, if changed since last Report) WSFS FINANCIAL CORPORATION INFORMATION TO BE INCLUDED IN REPORT ------------------------------------ Item 7. Financial Statements, Pro Forma Financial Information and Exhibits ------------------------ (c) Exhibits: 99.1 Press Release dated April 22, 2003 Item 9. Regulation FD Disclosure - --------------------------------- Information under this Item 9 is being provided pursuant to Item 12 - Results of Operations and Financial Condition in accordance with Release No. 34-47583. On April 22, 2003, the Registrant issued a press release to report earnings for the quarter ended March 31, 2003. A copy of the press release is furnished with this Form 8-K as an exhibit. -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. WSFS FINANCIAL CORPORATION Date: April 23, 2003 By:/s/Mark A. Turner ---------------------- ------------------------------------ Mark A. Turner Chief Operating Officer Chief Financial Officer -4- EX-99 3 ex99.txt PRESS RELEASE NEWS RELEASE WSFS FINANCIAL CORPORATION 838 Market Street, Wilmington, DE 19899 For Release: April 22, 2003 Contact: Mark A. Turner (302) 571-7160 WSFS ANNOUNCES 1Q '03 EARNINGS of $5.08 PER SHARE WSFS Financial Corporation (NASDAQ/NMS: WSFS), the parent company of Wilmington Savings Fund Society, FSB, reported net income of $45.3 million, or $5.08 per diluted share, for the three months ended March 31, 2003. This compares to net income of $9.4 million, or $1.01 per diluted share, for the first quarter of 2002. Earnings for the first quarter of 2003 include a $41.1 million gain on the sale of the Corporation's subprime mortgage banking subsidiary, Wilmington Finance, Inc. (WF). Excluding gains on the sale of businesses, income from continuing operations was $4.1 million, or $0.46 per diluted share. However, included in income from continuing operations were certain charges incurred in connection with the sale of WF, which amounted to $1.3 million pretax, $860,000 after tax, or $0.10 per share. In addition to the gain on the sale of WF, highlights for the quarter included: (i) growth in loans of $60.4 million, or 6% over December 31, 2002; (ii) continued strong and stable asset quality with the ratio of nonperforming assets (NPA) to total assets of 40 basis points at March 31, 2003, and annualized net chargeoffs of only 10 basis points for the first quarter of 2003; (iii) growth in core deposits (non CD) of $18.5 million, or 3% over December 31, 2002; and (iv) the successful completion of the Bank's 18-month long re-engineering efforts, TOPS. (more) 2 The following is a brief discussion of the first quarter 2003 results. Gain on Businesses Held-For-Sale - -------------------------------- On January 2, 2003 the Corporation completed the sale of its majority-owned subprime mortgage banking subsidiary, Wilmington Finance, Inc. This sale resulted in an after-tax gain of $41.1 million, or $4.61 per diluted share, which is reported as a gain on sale of businesses held-for-sale, net of tax. In connection with the sale, the Corporation also incurred $1.3 million of expenses which included a special contribution to the recently formed WSFS Foundation, established in late 2002 to benefit the well being of the community WSFS serves, and special associate compensation. These expenses were recorded as a charge against continuing operations in accordance with generally accepted accounting principles. In addition, in the first quarter of 2003, the Corporation recorded an after tax gain of $117,000, or $0.01 per diluted share, related to the prior sale of the C1FN/Everbank segment based on the release of certain escrowed sale proceeds. Continuing Operations - --------------------- Net Interest Income Net interest income for the first quarter of 2003 was $14.2 million. This compares to $19.0 million for the same quarter in 2002; however, the first quarter of 2002 included $7.0 million in interest income from reverses mortgages. Substantially all of WSFS' reverse mortgages were sold effective October 1, 2002 at a significant gain. Net interest income was $12.0 million for the fourth quarter of 2002. The net interest margin percentage of 3.69% for the first quarter of 2003 declined from 3.78% for the fourth quarter of 2002 and was adversely affected by the liquidity generated by the sale of the aforementioned business components, share repurchases, and the current historically low interest rate environment, in which loan and investment rates are able to reprice down by more than funding costs. This was partially mitigated by WSFS' significant growth in loans and the continuing positive effect of the change in WSFS' deposit mix. (more) 3 Loans and Asset Quality Net loans grew $60.4 million, or 6%, during the first quarter of 2003 to $1.1 billion. Loan volume reflects the continued strong growth in commercial and commercial real estate (CRE) loans of $29.9 million, or 6% from balances at December 31, 2002. Residential real estate loans grew by $28.9 million, or 7%, during the same period. The table below summarizes the current loan composition and changes in composition.
At At Quarterly Change (Dollars in thousands) March 31, 2003 December 31, 2002 $ % --------------- ------------------ ------- ----- Amount % Amount % ------ ----- ------ ----- Commercial and CRE $ 525,273 46% $ 495,374 46% $ 29,899 6% Residential 448,157 40 419,274 39 28,883 7 Consumer 184,750 16 182,674 17 2,076 1 Allowance for loan losses (21,941) (2) (21,452) (2) (489) 2 ----------- ---- ----------- ---- -------- Net Loans $ 1,136,239 100% $ 1,075,870 100% $ 60,369 6 =========== =========== ========
Non-performing assets (NPAs) totaled $7.8 million at March 31, 2003, an increase from the $7.4 million at December 31, 2002, but improved from the $8.6 million at March 31, 2002. Including the growth in assets, NPA's as a percentage of total assets improved to 0.40% at March 31, 2003 compared to 0.44% at the end of 2002 and 0.46% at March 31, 2002. Annualized net charge-offs in the first quarter 2003 were 0.10% of average loans compared to 0.29% for the last quarter and 0.51% for the same quarter in 2002. The allowance for loan losses was 1.89% of total loans at March 31, 2003 and the coverage ratio (ratio of allowance to non-accruing loans) was 317%. Deposits Retail deposits (excluding nonretail jumbo deposits) decreased $5.2 million during the first quarter to $866.9 million at March 31, 2003. This decrease included a $23.6 million decline in retail time deposits reflecting the Bank's liability management strategy to allow more price-sensitive deposits to run-off in favor of attracting less price- sensitive core deposits and the use of less costly wholesale funding. As a result, this CD decline was partially offset by healthy growth in savings, demand and money market accounts of $18.5 million, or 3% during the quarter. The following table summarizes the current retail deposit composition and changes in composition. (more) 4
At At Quarterly Change (Dollars in thousands) March 31, 2003 December 31, 2002 $ % -------------- ----------------- - - Amount % Amount % ------ - ------ - Non-interest demand $ 185,946 21% $ 182,957 21% 2,989 2% Savings 304,846 36 292,917 33 11,929 4 Money market and int. demand 112,794 13 109,259 13 3,535 3 Retail time 263,290 30 286,939 33 (23,649) (8) ---------- --- ---------- --- --------- Retail deposits $ 866,876 100% $ 872,072 100% $ (5,196) (1) ========== ========== =========
Noninterest Income During the first quarter 2003, the Corporation recorded noninterest income of $5.8 million, which was $786,000, or 16% greater than the comparable quarter in 2002. Strong growth in ATM fee income continues to be primarily responsible for the improvement in noninterest income as well as the increase in the gains on the sales of residential mortgages, driven by the current high level of mortgage refinance activity. Noninterest Expenses Noninterest expenses for the three months ended March 31, 2003 totaled $13.0 million, and included the aforementioned $1.3 million recorded in connection with the WF sale. This compares to $12.0 million in total expenses recorded in the first quarter of 2002. Also during first quarter 2003, the Corporation successfully completed its TOPS re-engineering initiative. The net benefit (cost savings generated less expenses incurred) of the program in the first quarter of 2003 was $609,000 and was comprised of $876,000 in cost savings less $267,000 in costs incurred. As the program was substantially completed in the first quarter, program costs incurred in the future are expected to be nominal. Capital Management Management has identified the repurchase of the Corporation's common stock at appropriate prices as a primary short-term use of the significant capital generated by the aforementioned sales of business components. As a result, during the first quarter of 2003, the Corporation repurchased 890,000, or 10% of its shares of common stock pursuant to its Board authorized plan at an average price of $32.66 per share. The Corporation has 422,000 shares, or just over 5% of outstanding shares remaining under the current authorization. The Corporation currently has 7.8 million shares outstanding. (more) 5 Additionally, the Corporation redeployed some of its capital into high quality investments in the first quarter. In total, mortgage backed securities (MBS) and investments grew $328.4 million from December 31, 2002 to March 31, 2003. The growth was entirely in AAA-rated, shorter duration MBS. At March 31, 2003, the Corporation's total MBS portfolio had a duration of approximately 2.6 years and an effective yield of 3.63%. The earning impact from the significant share repurchases and MBS investments were not fully reflected in the first quarter's results, as the majority of the repurchases and investments were made in the latter portion of the quarter. Tangible equity to assets was 10.18% and tangible book value per share was $25.21 at March 31, 2003. * * * Marvin N. Schoenhals, Chairman and President of WSFS said, "WSFS' focus on our community banking operations is clearly showing results, as evidenced by the strong growth in loans and core deposits in the first quarter, accompanied by continued healthy asset quality. The significant capital generated from our strategic divestitures allows us to concentrate on our commitment to being the premier community bank in Delaware. As a continuing part of our commitment to, and relationship with our community, the Board has authorized that we set aside approximately 1% of the pretax gain on the sale of WF as a contribution to the WSFS Foundation, a charitable organization established for the benefit of our community. A similar percentage of the gain on sale of reverse mortgages established the Foundation in the fourth quarter of 2002. The WSFS Foundation, now with $1.7 million in funding, is intended to benefit the long-term well being of our community, to which WSFS' success is so closely related." (more) 6 WSFS Financial Corporation is a $1.9 billion financial services company. Its principal subsidiary, Wilmington Savings Fund Society, FSB, currently operates 21 retail banking offices in New Castle County and Dover, Delaware, as well as Chester and Delaware Counties in Pennsylvania. Other operating subsidiaries include WSFS Credit Corporation, and WSFS Investment Group, Inc. For more information, please visit the Bank's website at www.wsfsbank.com. - ----------------- * * * Statements contained in this news release, which are not historical facts, are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, factors discussed in documents filed by WSFS Financial Corporation with the Securities and Exchange Commission from time to time. The Corporation does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Corporation. # # # 7 WSFS FINANCIAL CORPORATION FINANCIAL HIGHLIGHTS STATEMENT OF OPERATIONS (Dollars in thousands, except per share data) (Unaudited)
Three months ended March 31, --------------------------- 2003 2002 ------------ ------------ Interest income: Interest and fees on loans $ 17,862 $ 18,227 Interest on mortgage-backed securities 3,482 1,630 Interest and dividends on investment securities 251 239 Interest on investments in reverse mortgages (77) 6,994 Other interest income 389 346 ---------- ---------- 21,907 27,436 ---------- ---------- Interest expense: Interest on deposits 2,479 3,248 Interest on Federal Home Loan Bank advances 4,481 4,528 Interest on federal funds purchased and securities sold under agreements to repurchase 140 536 Interest on trust preferred borrowings 496 636 Interest on other borrowed funds 96 100 Cost of funding businesses held-for-sale - (568) ---------- ---------- 7,692 8,480 ---------- ---------- Net interest income 14,215 18,956 Provision for loan losses 775 707 ----------- ---------- Net interest income after provision for loan losses 13,440 18,249 ----------- ---------- Noninterest income: Loan servicing fee income 672 791 Deposit service charges 1,905 2,025 Credit/debit card and ATM income 2,173 1,648 Securities gains - 2 Gain on sale of loans 404 19 Other income 656 539 ---------- ---------- 5,810 5,024 ---------- ---------- Noninterest expenses: Salaries, benefits and other compensation 6,819 6,342 Equipment expense 933 1,023 Data processing and operations expense 677 895 Occupancy expense 988 941 Marketing expense 407 314 Professional fees 501 820 Net costs of assets acquired through foreclosure (50) 30 ATM fraud recoveries (39) (198) Other operating expenses 2,734 1,859 ---------- ---------- 12,970 12,026 ---------- ---------- Income from continuing operations before taxes and cumulative effect of change in accounting principle 6,280 11,247 Income tax provision 2,199 4,160 ---------- ---------- Income from continuing operations before cumulative effect of change in accounting principle 4,081 7,087 Cumulative effect of change in accounting principle, net of taxes - 703 ---------- ---------- Income from continuing operations 4,081 7,790 Income on discontinued operations of businesses held-for-sale, net of taxes - 1,636 Gain on sale of businesses held-for-sale, net of taxes 41,181 - ---------- ---------- Net income $ 45,262 $ 9,426 ========== ========== Diluted earnings per share: Income from continuing operations before cumulative effect of change in accounting principle $ 0.46 $ 0.76 Cumulative effect of change in accounting principle - 0.08 ---------- ---------- Income from continuing operations 0.46 0.84 Income on discontinued operations of businesses held-for-sale - 0.17 Gain on sale of businesses held-for-sale 4.62 - ---------- ---------- Net income $ 5.08 $ 1.01 ========== ========== Weighted average shares outstanding for diluted EPS 8,905,581 9,316,438 - ----------------------------------------------------------------------------------------------------- Performance Ratios (continuing operations only): Return on average assets (a) 0.95% 2.32% Return on average equity (a) 7.32 29.55 Net interest margin (a)(b) 3.69 6.24 Efficiency ratio (c) 63.88 49.57 - -----------------------------------------------------------------------------------------------------
See "Notes" 8 WSFS FINANCIAL CORPORATION FINANCIAL HIGHLIGHTS (Continued) SUMMARY STATEMENT OF CONDITION (Dollars in thousands) (Unaudited)
March 31, December 31, March 31, 2003 2002 2002 ------------- -------------- ------------- Assets: Cash and due from banks $ 135,061 $ 162,258 $ 96,975 Investment securities (d) 21,673 21,777 13,408 Investment in reverse mortgages, net 779 1,131 35,570 Other investments 33,173 93,500 46,697 Mortgage-backed securities (d) 537,391 148,238 406,627 Net loans (f)(g) 1,136,239 1,075,870 1,052,394 Net loans of businesses held-for-sale - 117,646 - Loans held-for-sale (f) 2,439 3,516 67,086 Other assets 35,265 29,858 52,555 Other assets of businesses held-for-sale - 3,810 - Loans, operating leases and other assets of discontinued operations 36,086 47,396 96,753 ----------- ----------- ----------- Total assets $ 1,938,106 $ 1,705,000 $ 1,868,065 =========== =========== =========== Liabilities and Stockholders' Equity: Noninterest-bearing deposits $ 185,946 $ 182,957 $ 179,551 Interest-bearing deposits 680,930 689,115 957,302 ----------- ----------- ----------- Total retail deposits 866,876 872,072 1,136,853 Jumbo CD's - Non Retail 32,844 26,324 14,915 Brokered CD's - - - ----------- ----------- ----------- Total deposits 899,720 898,396 1,151,768 Federal Home Loan Bank advances 626,463 403,500 455,000 Other borrowings 175,767 112,506 125,725 Other liabilities 38,833 37,219 22,270 Other liabilities of businesses held-for-sale - 57,862 - ----------- ----------- ----------- Total liabilities 1,740,783 1,509,483 1,754,763 ----------- ----------- ----------- Minority Interest - 12,845 5,010 Stockholders' equity 197,323 182,672 108,292 ----------- ----------- ----------- Total liabilities, minority interest and stockholders' equity $ 1,938,106 $ 1,705,000 $ 1,868,065 =========== =========== =========== - ---------------------------------------------------------------------------------------------- Capital Ratios: Equity to asset ratio 10.18 % 10.71 % 5.80 % Core capital (h) (required: 4.00%) 12.50 13.74 8.03 Risk-based capital (h) (required: 8.00%) 21.11 20.12 12.82 - ---------------------------------------------------------------------------------------------- Asset Quality Indicators (continuing operations only): Nonperforming Assets: Nonaccruing loans $ 6,834 $ 6,529 $ 8,244 Assets acquired through foreclosure 942 904 325 ----------- ----------- ------------ Total nonperforming assets $ 7,776 $ 7,433 $ 8,569 =========== =========== =========== Past due loans (i) 211 529 625 Allowance for loan losses 21,941 21,452 20,995 Ratio of nonperforming assets to total assets 0.40 % 0.44 % 0.46 % Ratio of allowance for loan losses to total gross loans (e) 1.89 1.95 1.95 Ratio of allowance for loan losses to nonaccruing loans (k) 317 324 251 Ratio of quarterly net charge-offs to average gross loans (a)(f) 0.10 0.29 0.51 - ----------------------------------------------------------------------------------------------
See "Notes" 9 WSFS FINANCIAL CORPORATION FINANCIAL HIGHLIGHTS (Continued) AVERAGE BALANCE SHEET (Dollars in thousands) (Unaudited)
Three Months Ended March 31, -------------------------------------------------------------------------------------- 2003 2002 Average Yield/ Average Yield/ Balance Interest Rate (l) Balance Interest Rate (l) -------------- ----------- -------- ---------- ---------- --------- Assets: Interest-earning assets: Loans: (f) (m) Real estate loans (n) $ 726,378 $ 11,318 6.23 % $ 654,929 $ 11,539 7.05 % Commercial loans 213,764 2,983 6.11 183,975 2,703 6.49 Consumer loans 185,067 3,480 7.63 190,058 3,930 8.39 ------------ ---------- ----------- -------- Total loans 1,125,209 17,781 6.42 1,028,962 18,172 7.17 Mortgage-backed securities (d) 338,040 3,482 4.12 113,843 1,630 5.73 Loans held-for-sale (f) 5,460 81 5.93 3,325 55 6.62 Investment securities (d) 21,662 251 4.63 13,607 239 7.03 Investment in reverse mortgages 1,108 (77) (27.80) 33,269 6,994 84.09 Other interest-earning assets 80,078 389 1.97 40,896 346 3.42 ----------- ---------- ----------- -------- Total interest-earning assets 1,571,557 21,907 5.65 1,233,902 27,436 8.98 ---------- -------- Allowance for loan losses (21,592) (21,159) Cash and due from banks 130,004 93,746 Loans, operating leases and other assets of discontinued operations 41,911 104,695 Assets of businesses held-for-sale - 377,022 Other noninterest-earning assets 33,590 47,442 ----------- ----------- Total assets $ 1,755,470 $ 1,835,648 =========== =========== Liabilities and Stockholders' Equity: Interest-bearing liabilities: Interest-bearing deposits: Money market and interest- bearing demand $ 102,500 $ 106 0.42 $ 85,951 $ 107 0.50 Savings 299,737 480 0.65 310,655 812 1.06 Retail time deposits 276,375 1,788 2.63 253,120 2,243 3.59 Jumbo certificates of deposit-nonretail 22,197 105 1.92 10,411 76 2.96 Brokered certificates of deposit - - - 556 10 7.29 ----------- ---------- ------------ -------- Total interest-bearing deposits 700,809 2,479 1.44 660,693 3,248 1.99 FHLB of Pittsburgh advances 482,410 4,977 4.13 465,222 5,283 4.54 Trust preferred borrowings 50,000 496 3.97 50,000 636 5.09 Other borrowed funds 81,274 236 1.16 82,098 636 3.10 Cost of funding discontinued operations (496) (755) Cost of funding businesses held-for-sale - (568) ----------- ---------- ----------- -------- Total interest-bearing liabilities 1,314,493 7,692 2.34 1,258,013 8,480 2.70 ---------- -------- Noninterest-bearing demand deposits 170,266 154,763 Liabilities of businesses held-for-sale - 297,303 Other noninterest-bearing liabilities 47,632 13,885 Minority interest 17 6,247 Stockholders' equity 223,062 105,437 ----------- ----------- Total liabilities and stockholders' equity $ 1,755,470 $ 1,835,648 =========== =========== Excess (deficit) of interest-earning assets over interest-bearing liabilities $ 257,064 $ (24,111) =========== =========== Net interest and dividend income $ 14,215 $ 18,956 ========== ======== Interest rate spread 3.31% 6.28% ======= ======= Net interest margin 3.69% 6.24% ======= =======
10 WSFS FINANCIAL CORPORATION FINANCIAL HIGHLIGHTS (Continued) (Dollars in thousands, except per share data) (Unaudited) Three months ended -------------------------- March 31, March 31, 2003 2002 -------------------------- Stock Information: Market price of common stock: High $ 33.35 $ 18.71 Low 30.96 16.96 Close 31.60 18.12 Book value per share 25.21 11.88 Number of shares outstanding (000s) 7,826 9,117 - -------------------------------------------------------------------------------- Other Financial Data: One-year repricing gap to total assets (j) (4.04)% 3.55 Number of associates (FTEs) (p) 420 772 Number of branch offices 21 22 - -------------------------------------------------------------------------------- Notes: (a) Annualized. (b) Computed on a fully tax-equivalent basis. (c) Noninterest expense divided by (tax-equivalent) net interest income and other income. (d) Includes securities available-for-sale. (e) Excludes loans held-for-sale. (f) Net of unearned income. (g) Net of allowance for loan losses. (h) Represents capital ratios of Wilmington Savings Fund Society, FSB and subsidiaries. (i) Accruing loans which are contractually past due 90 days or more as to principal or interest. (j) The difference between projected amounts of interest-sensitive assets and interest-sensitive liabilities repricing within one year divided by total assets, based on a current interest rate scenario. (k) Includes general reserves only. (l) Weighted average yields have been computed on a tax-equivalent basis. (m) Nonperforming loans are included in average balance computations. (n) Includes commercial mortgage loans. (p) March 31, 2003 also includes the FTEs of WCC (discontinued operations); and March 31, 2002 also includes the FTEs of WCC (discontinued operations) and WF and C1FN (controlled, but not wholly-owned subsidiaries). -----END PRIVACY-ENHANCED MESSAGE-----