-----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, RWlnnHfFJ8ZQDrv/6LoSWHIaM2u5XrpYCAIgHzbSF/GSZnAGwvhVNSvu/NBP4ahY EQ6kJCfkx0KapZG01IWguA== 0000083246-99-000016.txt : 19991025 0000083246-99-000016.hdr.sgml : 19991025 ACCESSION NUMBER: 0000083246-99-000016 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19991022 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19991022 FILER: COMPANY DATA: COMPANY CONFORMED NAME: REPUBLIC NEW YORK CORP CENTRAL INDEX KEY: 0000083246 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 132764867 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-07436 FILM NUMBER: 99732674 BUSINESS ADDRESS: STREET 1: 452 FIFTH AVE CITY: NEW YORK STATE: NY ZIP: 10018 BUSINESS PHONE: 2125256100 8-K 1 8-K CURRENT REPORT FOR REPUBLIC NEW YORK CORP. 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: October 22, 1999 REPUBLIC NEW YORK CORPORATION (Exact name of registrant as specified in its charter) Maryland 1-7436 13-2764867 (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 452 Fifth Avenue, New York, New York 10018 (Address of principal executive (Zip Code) Registrant's telephone number, including area code: (212) 525-6100 Item 5. Other Events Republic New York Corporation is hereby filing the document listed under Item 7 below. Such document is hereby incorporated herein by reference in this Current Report on Form 8-K and a copy of the same is attached hereto as an exhibit. Item 7. Financial Statements, Pro Forma Financial Information and Exhibits. c. Exhibits 99 Press Release dated October 22, 1999, with attached financial statements, Announcing Results for the Third Quarter and Nine Month Periods Ended September 30, 1999. SIGNATURE Pursuant to the requirement 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. REPUBLIC NEW YORK CORPORATION By: /s/ William F. Rosenblum, Jr. ----------------------------------------------- William F. Rosenblum, Jr. Senior Vice President Date: October 22, 1999 Exhibit 99 Republic New York Corporation News Release For Immediate Release Press Contact : Melissa M. Krantz (212) 525-3800 NYSE Symbol: RNB Investor Contact: Michael G. Levine (212) 525-8870 To request release by e-mail: elizabeth.matuszewski@rnb.com Press Releases: http://www.rnb.com REPUBLIC NEW YORK CORPORATION ANNOUNCES THIRD QUARTER RESULTS New York - October 20, 1999: Republic New York Corporation today reported net income for the third quarter of 1999 of $126.5 million, or earnings per common share of $1.17 basic and $1.15 diluted. For the nine months ended September 30, 1999, net income was $316.1 million, which included on an after-tax basis, restructuring and one-time special charges of $67.6 million and a gain of $45.4 million on a real estate investment. Earnings per common share for the nine-month period of 1999 were $2.88 basic and $2.84 diluted. Dov C. Schlein, chairman and chief executive officer, said, "The third quarter's good results build upon the solid performance of the first half of 1999. Our core and special niche businesses have continued to perform to our expectations." Highlights of the quarter include: Net income was $126.5 million in the third quarter of 1999, or $1.15 per share diluted, compared to a net loss of $92.7 million in the third quarter of 1998, or 96 cents per share diluted. Net interest rate differential was 2.51 percent in the third quarter of 1999, compared to 2.20 percent in the third quarter of 1998 and 2.60 percent in the second quarter of 1999. Net interest income for the third quarter of 1999 was $260.6 million, compared to $256.4 million in the third quarter of 1998 and $271.2 million in the second quarter of 1999. The board of directors declared dividends of 26 cents per common share, 30.7534 cents per depositary share on the adjustable rate cumulative preferred stock, 45.3125 cents per share on the $1.8125 cumulative preferred stock and 71.4375 cents per share on the $2.8575 cumulative preferred stock. All dividends are payable January 1, 2000 to stockholders of record on December 15, 1999. Total revenue associated with trading activities in the third quarter of 1999 rose to $57.0 million, compared to $48.0 million in the third quarter of 1998, an increase of 19 percent. Such revenues were $56.5 million in the second quarter of 1999. Equity in the earnings of Safra Republic Holdings S.A. ("SRH") was $34.4 million in the third quarter of 1999, compared to $29.9 million in the third quarter of 1998 and $41.9 million in the second quarter of 1999. The total of the corporation's and SRH's private client account assets, both on- and off-balance-sheet, were $59.8 billion at September 30, 1999, compared to $53.0 billion at September 30, 1998 and $59.2 billion at June 30, 1999. On May 10, the corporation entered into an agreement providing for the acquisition of the corporation by HSBC Holdings plc ("HSBC") in consideration of its payment of $72 in cash per common share. Consummation of the transaction requires, in addition to various regulatory approvals, the approval of the corporation's common stockholders. As announced on October 19, 1999, the special meeting of common stockholders called to vote on the proposed acquisition will be adjourned until November 30, 1999. On September 1, 1999, the corporation announced that it had commenced an investigation of the Futures Division of its subsidiary Republic New York Securities Corporation ("RNYSC") as a result of a letter received from the Financial Supervisory Agency ("FSA") of Japan concerning the FSA's investigation of the Tokyo branch of an affiliate of Princeton Global Management Ltd, a client of RNYSC's Philadelphia office. The corporation is also cooperating with the relevant U.S. regulatory and law enforcement authorities in their investigation of this matter. HSBC has also offered $72 per share for the outstanding common shares of Safra Republic Holdings S.A. ("SRH") owned by shareholders other than the corporation and has extended the expiration of the period for SRH shareholders to respond to the offer until October 29, 1999. Net interest income The net interest rate differential was 2.51 percent in the third quarter of 1999, compared to 2.20 percent in the third quarter of 1998 and 2.60 percent in second quarter of 1999. The increase in the net interest rate differential in the third quarter from the year ago period reflected reductions of higher cost short-term liabilities and a corresponding decline in interest-bearing deposits with banks, investment securities, and federal funds. Average interest-earning assets were $42.3 billion in the third quarter of 1999, compared to $47.4 billion in the third quarter of 1998 and $42.7 billion in the second quarter of 1999. Net interest income on a fully taxable equivalent basis was $267.3 million in the third quarter of 1999, compared to $262.8 million in the third quarter of 1998 and $277.3 million in the second quarter of 1999. Included in the third quarters of 1999 and 1998 was mortgage prepayment income of $6.3 million and $6.9 million, respectively. Net interest income in the second quarter of 1999 included $3.0 million of past-due interest received on previously written down Russian obligations and $5.2 million of mortgage prepayment income. The net interest rate differential rose to 2.54 percent for the first nine months of 1999, compared to 2.29 percent for the corresponding period of 1998. Net interest income on a fully taxable equivalent basis was $808.2 million for the first nine months of 1999, compared to $806.1 million in the corresponding period of 1998. Average interest-earning assets declined to $42.5 billion for the first nine months of 1999, compared to $47.1 billion for the respective period of 1998. Provision for trading and credit losses The corporation's aggregate allowance for credit losses, which is presented in the table below, is available to absorb all credit losses: 1999 1998 -------------------------- -------------- 3rd Qtr 2nd Qtr 3rd Qtr (In thousands) Provision for trading and credit losses $4,000 $4,000 $4,000 ============== ============== ============== Net charge-offs $431 $4,615 $55,197 ============== ============== ============== Aggregate allowance for credit losses: Credit losses $293,161 $290,669 $290,490 Trading accounts 17,485 17,485 4,950 Off balance-sheet credit commitments 8,314 7,216 5,520 ------------- -------------- -------------- $318,960 $315,370 $300,960 ============== ============== ==============
The aggregate provisions in the second and third quarters of 1999 related to credit losses. The aggregate provision in the third quarter of 1998 related to trading credit losses. Net charge-offs in the third quarter of 1998 included $50.7 million attributable to the corporation's Russian exposure. The following table presents non-accrual loans and other non-performing assets at periods ended: 1999 1998 --------------------------------- --------------- Sept. 30 June 30 Sept. 30 (In thousands) Non-accrual loans $48,907 $57,994 $79,593 Other assets and real estate owned 12,176 10,785 15,378 -------------- --------------- --------------- Total non-performing assets $61,083 $68,779 $94,971 ============== =============== ===============
The corporation's Latin American exposure consists primarily of sovereign securities. The mark-to-market value of these securities is fully reflected, after tax benefit, as an adjustment to stockholders' equity through accumulated other comprehensive income. The following table presents information on the corporation's estimated cross-border exposure to Latin American countries at September 30, 1999: Net FASB 115 Net Outstandings Cross-border Pre-tax Market Less FASB 115 ($ millions) Outstandings* Value Adjustments Adjustments ---------------------- ----------------------- ------------------ Brazil** $ 415 $ (63) $ 352 Mexico 273 (10) 263 Argentina 238 (22) 216 Venezuela 87 (16) 71 Chile 63 1 64
* Net cross-border outstandings include foreign office local country claims on local residents less local country liabilities. ** Net outstandings exclude $662 million of sovereign risk assets, before the FASB 115 depreciation adjustment of $6 million, funded with U.S. dollars where the providers of funds agree that, in the event their claims cannot be repaid in the designated currency due to sovereign default or currency exchange restrictions in a given country, they will wait to receive the non-local currency until such time as such default is cured or the currency restrictions removed or such currency becomes available in the local market; under limited circumstances, the providers may receive either local currency or local market debt instruments. Also excluded is net exposure of approximately $155 million, which represented the corporation's share of SRH's net exposure. Other operating income (loss) Total trading revenue, including associated net interest income which is reported as net interest income, was $57.0 million in the third quarter of 1999, compared to $48.0 million in the third quarter of 1998 and $56.5 million in the second quarter of 1999. The third quarter to third quarter change reflected increased precious metals income and trading account profits and commissions, partially offset by a decrease in foreign exchange trading. For the nine-month period of 1999, such revenue amounted to $203.5 million, compared to $177.6 million for the nine-month period of 1998. The items of net interest income (expense) in the following table represent the net interest earned or paid on instruments held for trading, as well as an allocation by management to reflect the funding benefit or cost associated with the trading positions. 3rd Qtr 9 Months ------------------------ ------------------------ 1999 1998 1999 1998 (In thousands) Precious metals: Trading revenue (loss) $17,810 $(3,213) $19,864 $407 Net interest income 12,921 18,689 43,473 54,127 ---------- ---------- ---------- ---------- Total 30,731 15,476 63,337 54,534 ---------- ---------- ---------- ---------- Foreign exchange: Trading revenue 22,202 42,765 113,470 114,987 Net interest (expense) (2,950) (1,773) (5,457) (4,604) ---------- ---------- ---------- ---------- Total 19,252 40,992 108,013 110,383 ---------- ---------- ---------- ---------- Trading account profits and commissions: Trading revenue (loss) 3,720 (9,285) 24,126 (1,526) Net interest income 3,256 4,804 12,023 18,226 ---------- ---------- ---------- ---------- Total 6,976 (4,481) 36,149 16,700 ---------- ---------- ---------- ---------- Provision for trading credit losses - 4,000 4,000 4,000 ---------- ---------- ---------- ---------- Total: Trading revenue 43,732 26,267 153,460 109,868 Net interest income 13,227 21,720 50,039 67,749 ---------- ---------- ---------- ---------- Total $56,959 $47,987 $203,499 $177,617 ========== ========== ========== ==========
Net investment securities gains were $18.4 million in the third quarter of 1999, compared to net losses of $200.5 million in the third quarter of 1998 and net gains of $11.0 million in the second quarter of 1999. The net gains in the third quarter of 1999 were realized primarily on sales of the corporation's remaining sovereign Russian securities and certain sovereign Brazilian securities amounting to $11.8 million and $4.3 million, respectively. The net losses in the third quarter of 1998 included $210.9 million ($190.7 million after tax), on the corporation's Russian investment securities. The net gains in the second quarter of 1999 were realized from the repayment and sales of Russian securities. Commission income consists primarily of securities brokerage commissions, fees for the issuance of bankers acceptances and letters of credit and retail services. Such income was $25.8 million in the third quarter of 1999, compared to $25.1 million in the third quarter of 1998 and $24.6 million in the second quarter of 1999. Equity in the earnings of SRH was $34.4 million in the second quarter of 1999, compared to $29.9 million in the third quarter of 1998 and $41.9 million in the second quarter of 1999. Client account assets at SRH, both on- and off-balance sheet, were $34.1 billion at September 30, 1999 compared to $31.7 billion at September 30, 1998 and $33.9 billion at June 30, 1999. Other income was $26.5 million in the third quarter of 1999, compared to $19.1 million in the third quarter of 1998 and $90.1 million in the second quarter of 1999 which included a $69.8 million pre-tax gain relating to an investment in the Canary Wharf Group and the completion of its initial public offering. The consumer financial services group and the private banking group generate fee income through service charges to clients for deposit accounts and trust and securities activities. Other income included revenues of $19.2 million from these activities in the third quarter of 1999, compared to $15.6 million in the third quarter of 1998 and $17.0 million in the second quarter of 1999. Other operating expenses Total operating expenses were $232.4 million in the third quarter of 1999, $230.4 million in the third quarter of 1998 excluding $13.7 million of one-time expenses discussed below, and $251.4 million in the second quarter of 1999 excluding $20.3 million of merger-related executive pension and incentive accruals and certain other merger-related expenses. Included in total operating expenses were Year 2000 expenses of $1.8 million in the third quarter of 1999, $4.5 million in the third quarter of 1998 and $3.5 million in the second quarter of 1999. Salaries and employee benefits were $128.0 million in the third quarter of 1999 and $124.1 million in the third quarter of 1998. Such expenses were $141.1 million in the second quarter of 1999, excluding the charge of $16.5 million related to the implementation of a Supplemental Executive Retirement Plan to retain the services of certain executive officers. The third quarter to third quarter increase was due primarily to higher levels of incentive compensation accruals. Occupancy expense was $19.2 million in the third quarter of 1999, compared to $19.4 million in the third quarter of 1998 and $17.8 million in the second quarter of 1999. All other expenses were $85.2 million in the third quarter of 1999, $87.0 million in the third quarter of 1998 excluding one-time expenses of $11.2 million for losses related to unauthorized transactions in an offshore subsidiary and $2.5 million for losses on banknote shipments, and $92.5 million in the second quarter of 1999 excluding $3.8 million of merger-related professional fees. Amortization of goodwill and other intangible assets was $6.8 million in the third and second quarters of 1999 and $6.9 million in the third quarter of 1998. Income taxes Income taxes were $47.3 million in the third quarter of 1999, compared to $5.1 million in the third quarter of 1998 and $57.7 million in the second quarter of 1999. The effective book income tax rate was 27.2 percent in the third quarter of 1999 and 28.7 percent in the second quarter. The effective tax rate for the third quarter of 1998 was not meaningful due to the loss reported for the period. Capital The following table presents return on average common stockholders' equity (ROAE) and return on average total assets (ROAA), based on net income applicable to common stock - diluted: 3rd Qtr 9 Months --------------------------- ---------------------------- 1999 1998 1999 1998 ROAE 17.27% (14.18)% 14.66% 5.62% ROAA 1.02% (0.72)% 0.84% 0.30%
The book value of the corporation's common stock was $26.98 per share at September 30, 1999. At September 30, 1999, the corporation's total intangibles were $312 million, of which $207 million was goodwill. The following table presents capital ratios at periods ending: 1999 1998 ---------------------- --------- Sept. 30 June 30 Sept. 30 Common stockholders' equity/assets 5.24% 5.41% 4.92% Leverage 7.00%* 6.73% 5.95% Tier 1 "core" ratio 13.45%* 13.27% 13.45% Total capital ratio 21.40%* 21.61% 22.22% *Estimated
The corporation's leverage ratio (Tier 1 capital to quarterly average assets) and its risk-based capital ratios (Tier 1 and total qualifying capital to risk-weighted assets) include the assets and capital of SRH on a consolidated basis in accordance with the requirements of the Federal Reserve Board specifically applied to the corporation. These ratios do not reflect the effect on stockholders' equity related to the FASB 115 valuation of the corporation's portfolio of securities available for sale which is included in accumulated other comprehensive loss, net of taxes. ### In connection with the status of the merger transaction with HSBC, this press release contains statements that constitute forward-looking statements and are subject to certain risks and uncertainties that could cause the actual facts to differ materially from those contained in this press release. With respect to the proposed merger with HSBC, uncertainties could include the timing and receipt of regulatory approvals and stockholder approval, the effect, if any, of the matters relating to the investigation of the Futures Division of RNYSC, and the satisfaction of other customary closing conditions to the proposed merger. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only to the date of this report. REPUBLIC NEW YORK CORPORATION CONSOLIDATED STATEMENTS OF CONDITION (Dollars in thousands)
September 30, ---------------------------------- 1999 1998 ASSETS Cash and due from banks $ 836,086 $ 799,624 Interest-bearing deposits with banks 6,854,973 2,943,079 Precious metals 960,019 974,875 Securities held to maturity 5,266,123 7,398,835 Securities available for sale 16,441,611 16,423,528 -------------- ------------- Total investment securities 21,707,734 23,822,363 Trading account assets 2,896,278 3,568,791 Federal funds sold and securities purchased under resale agreements 2,188,012 789,443 Loans, net of unearned income 14,730,939 13,552,915 Allowance for credit losses (293,161) (290,490) Customers' liability on acceptances 57,724 73,420 Accounts receivable and accrued interest 866,265 1,923,273 Investment in affiliate 838,601 809,468 Premises and equipment 427,388 460,830 Other assets 980,743 945,795 -------------- ------------- Total assets $ 53,051,601 $ 50,373,386 ============== ============= LIABILITIES AND STOCKHOLDERS' EQUITY Noninterest-bearing deposits: In domestic offices $ 2,801,907 $ 2,807,638 In foreign offices 208,060 206,625 Interest-bearing deposits: In domestic offices 10,422,728 11,028,492 In foreign offices 18,423,525 17,795,693 -------------- ------------- Total deposits 31,856,220 31,838,448 Trading account liabilities 3,141,539 4,030,960 Short-term borrowings 8,584,987 4,491,399 Acceptances outstanding 59,743 73,599 Accounts payable and accrued expenses 1,033,810 1,244,181 Due to factored clients 792,705 696,283 Other liabilities 165,067 254,634 Long-term debt 1,164,745 1,764,306 Subordinated long-term debt and perpetual capital notes 2,624,700 2,650,000 Company-obligated mandatorily redeemable preferred securities of subsidiary trusts holding solely junior subordinated debt securities 350,000 350,000 Stockholders' equity: Cumulative preferred stock, no par value 7,501,250 shares outstanding in 1999 and 1998 500,000 500,000 Common stock, $5 par value 150,000,000 shares authorized; 104,756,204 shares issued in 1999 and 107,333,650 in 1998 523,781 536,668 Surplus 117,405 88,430 Retained earnings 2,589,320 2,302,168 Accumulated other comprehensive loss, net of taxes (366,239) (444,050) Common stock in treasury, at cost 1,770,875 shares in 1999 and 55,928 in 1998 (86,182) (3,640) ------------- ------------- Total stockholders' equity 3,278,085 2,979,576 ------------- ------------- Total liabilities and stockholders' equity $ 53,051,601 $ 50,373,386 ============= =============
REPUBLIC NEW YORK CORPORATION CONSOLIDATED STATEMENTS OF INCOME (In thousands except per share data)
Three Months Ended ------------------------------------------- Sept. 30, June 30, Sept. 30, 1999 1999 1998 ------------ ------------ ------------ INTEREST INCOME: Interest and fees on loans $ 260,291 $ 261,695 $ 287,095 Interest on deposits with banks 31,623 32,663 75,466 Interest and dividends on investment securities: Taxable 335,770 343,185 385,960 Exempt from federal income taxes 19,265 17,994 19,153 Interest on trading account assets 17,861 18,250 17,128 Interest on federal funds sold and securities purchased under resale agreements 22,632 24,959 46,326 ------------ ------------ ------------ Total interest income 687,442 698,746 831,128 ------------ ------------ ------------ INTEREST EXPENSE: Interest on deposits 302,704 286,304 383,285 Interest on short-term borrowings 57,729 76,014 113,520 Interest on long-term debt 66,415 65,208 77,904 ------------ ------------ ------------ Total interest expense 426,848 427,526 574,709 ------------ ------------ ------------ NET INTEREST INCOME 260,594 271,220 256,419 Provision for credit losses 4,000 4,000 - Net interest income after ------------ ------------ ------------ provision for credit losses 256,594 267,220 256,419 ------------ ------------ ------------ OTHER OPERATING INCOME (LOSS): Trading revenue 43,732 37,425 26,267 Investment securities transactions, net 18,390 11,038 (200,499) Loans sold or held for sale, net 757 239 229 Commission income 25,800 24,647 25,100 Equity in earnings of affiliate 34,366 41,887 29,947 Other income 26,512 90,062 19,079 ------------ ------------ ------------ Total other operating income (loss) 149,557 205,298 (99,877) ------------ ------------ ------------ OTHER OPERATING EXPENSES: Salaries and employee benefits 128,020 157,554 124,079 Occupancy, net 19,224 17,810 19,366 Other expenses 85,182 96,309 100,701 ------------ ------------ ------------ Total other operating expenses 232,426 271,673 244,146 ------------ ------------ ------------ INCOME (LOSS) BEFORE INCOME TAXES 173,725 200,845 (87,604) Income taxes 47,256 57,719 5,055 ------------ ------------ ------------ NET INCOME (LOSS) $ 126,469 $ 143,126 $ (92,659) ============ ============ ============ NET INCOME (LOSS) APPLICABLE TO COMMON STOCK - DILUTED $ 119,817 $ 136,669 $ (99,424) ============ ============ ============ Net income (loss) per common share: Basic $1.17 $1.33 $(0.96) Diluted 1.15 1.31 (0.96) Average common shares outstanding: Basic 102,331 102,541 103,985 Diluted 104,006 104,086 103,985
REPUBLIC NEW YORK CORPORATION CONSOLIDATED STATEMENTS OF INCOME (In thousands except per share data)
Nine Months Ended September 30, -------------------------------- 1999 1998 -------------- -------------- INTEREST INCOME: Interest and fees on loans $ 770,179 $ 835,989 Interest on deposits with banks 106,554 221,776 Interest and dividends on investment securities: Taxable 1,024,945 1,171,282 Exempt from federal income taxes 55,774 61,969 Interest on trading account assets 53,034 61,275 Interest on federal funds sold and securities purchased under resale agreements 69,463 138,023 -------------- -------------- Total interest income 2,079,949 2,490,314 -------------- -------------- INTEREST EXPENSE: Interest on deposits 884,194 1,132,543 Interest on short-term borrowings 208,542 342,260 Interest on long-term debt 198,100 230,456 -------------- -------------- Total interest expense 1,290,836 1,705,259 -------------- -------------- NET INTEREST INCOME 789,113 785,055 Provision for credit losses 12,000 8,000 -------------- -------------- Net interest income after provision for credit losses 777,113 777,055 -------------- -------------- OTHER OPERATING INCOME: Trading revenue 153,460 109,868 Investment securities transactions, net 35,711 (196,550) Loans sold or held for sale, net 839 3,733 Commission income 76,232 73,268 Equity in earnings of affiliate 106,769 102,673 Other income 136,325 74,043 -------------- -------------- Total other operating income 509,336 167,035 -------------- -------------- OTHER OPERATING EXPENSES: Salaries and employee benefits 431,119 390,728 Occupancy, net 55,884 56,373 Restructuring charge 97,000 - Other expenses 272,945 292,173 ------------- -------------- Total other operating expenses 856,948 739,274 -------------- -------------- INCOME BEFORE INCOME TAXES 429,501 204,816 Income taxes 113,404 61,164 ------------- -------------- NET INCOME $ 316,097 $ 143,652 ============== ============== NET INCOME APPLICABLE TO COMMON STOCK - DILUTED $ 296,597 $ 122,848 ============== ============== Net income per common share: Basic $2.88 $1.16 Diluted 2.84 1.15 Average common shares outstanding: Basic 102,727 104,522 Diluted 104,378 106,396
REPUBLIC NATIONAL BANK OF NEW YORK CONSOLIDATED STATEMENTS OF CONDITION (Dollars in thousands)
September 30, -------------------------------- 1999 1998 --------------- ------------- ASSETS Cash and due from banks $ 779,609 $ 786,210 Interest-bearing deposits with banks 6,557,236 2,964,278 Precious metals 958,630 973,730 Securities held to maturity 4,966,736 7,034,709 Securities available for sale 15,174,923 14,844,967 ------------- ------------- Total investment securities 20,141,659 21,879,676 Trading account assets 2,632,837 3,277,341 Federal funds sold and securities purchased under resale agreements 2,188,012 788,526 Loans, net of unearned income 13,340,263 12,283,253 Allowance for credit losses (268,779) (263,398) Customers' liability on acceptances 56,857 73,372 Accounts receivable and accrued interest 817,177 1,210,412 Investment in affiliate 838,601 809,468 Premises and equipment 407,870 410,745 Other assets 740,262 713,519 ------------- ------------- Total assets $ 49,190,234 $ 45,907,132 ============= ============= LIABILITIES AND STOCKHOLDER'S EQUITY Noninterest-bearing deposits: In domestic offices $ 2,665,737 $ 2,720,762 In foreign offices 208,547 207,466 Interest-bearing deposits: In domestic offices 10,176,808 10,792,550 In foreign offices 18,533,780 18,178,313 ------------- ------------- Total deposits 31,584,872 31,899,091 Trading account liabilities 2,985,719 3,710,959 Short-term borrowings 8,273,623 3,442,347 Acceptances outstanding 56,857 73,427 Accounts payable and accrued expenses 952,155 924,393 Other liabilities 113,584 206,888 Long-term debt 1,064,620 1,654,740 Subordinated long-term debt with parent 950,000 950,000 Stockholder's equity: Common stock, $100 par value 4,800,000 shares authorized; 4,000,000 shares outstanding 400,000 400,000 Surplus 1,634,603 1,635,316 Retained earnings 1,481,348 1,338,755 Accumulated other comprehensive loss, net of taxes (307,147) (328,784) ------------- ------------- Total stockholder's equity 3,208,804 3,045,287 ------------- ------------- Total liabilities and stockholder's equity $ 49,190,234 $ 45,907,132 ============= =============
REPUBLIC NEW YORK CORPORATION AVERAGE BALANCES, NET INTEREST DIFFERENTIAL, AVERAGE RATES EARNED AND PAID (Fully taxable equivalent basis) (Dollars in thousands)
Quarter Ended ------------------------------------------------------------------- September 30, 1999 June 30, 1999 ------------------------------------------------------------------- AVERAGE AVERAGE INTEREST RATES INTEREST RATES AVERAGE INCOME/ EARNED/ AVERAGE INCOME/ EARNED/ BALANCE EXPENSE PAID BALANCE EXPENSE PAID ------------------------------------------------------------------- Interest-earning assets: Interest-bearing deposits with banks $ 2,709,345 $ 31,623 4.63% $ 2,894,968 $ 32,663 4.53% Investment securities:(1) Taxable 20,613,347 335,770 6.46 20,996,437 343,185 6.56 Exempt from federal income taxes 1,367,773 25,947 7.53 1,330,929 24,105 7.26 ---------- ------- ---------- ------- Total investment securities 21,981,120 361,717 6.53 22,327,366 367,290 6.60 Trading account assets(2) 1,166,693 17,861 6.07 1,241,788 18,250 5.89 Federal funds sold and securities purchased under resale agreements 1,761,695 22,632 5.10 2,057,333 24,959 4.87 Loans, net of unearned income: Domestic offices 10,773,353 199,382 7.34 10,461,297 189,887 7.28 Foreign offices 3,894,178 60,909 6.21 3,755,721 71,808 7.67 ---------- ------- ---------- ------- Total loans, net of unearned income 14,667,531 260,291 7.04 14,217,018 261,695 7.38 ---------- ------- ---------- ------- Total interest-earning assets 42,286,384 $694,124 6.51% 42,738,473 $704,857 6.61% ======== ==== ======== ==== Cash and due from banks 927,770 918,170 Other assets 3,356,376 3,898,983 ----------- ----------- Total assets $46,570,530 $47,555,626 =========== =========== Interest-bearing funds: Consumer and other time deposits $ 9,782,489 $ 80,169 3.25% $9,982,356 $ 80,164 3.22% Certificates of deposit 688,824 7,377 4.25 654,344 6,564 4.02 Deposits in foreign offices 16,987,002 215,158 5.03 15,858,709 199,576 5.05 ---------- ------- ---------- ------- Total interest-bearing deposits 27,458,315 302,704 4.37 26,495,409 286,304 4.33 Trading account liabilities(2) 281,315 479 0.68 318,465 594 0.75 Short-term borrowings 5,123,435 57,250 4.43 6,596,960 75,420 4.59 Total long-term debt 4,260,765 66,415 6.18 4,345,990 65,208 6.02 ---------- ------- ---------- ------- Total interest-bearing funds 37,123,830 $426,848 4.56% 37,756,824 $427,526 4.54% ======== ==== ======== ==== Noninterest-bearing deposits: In domestic offices 2,896,060 2,918,842 In foreign offices 170,260 204,607 Other liabilities 3,128,046 3,388,111 Stockholders' equity: Preferred stock 500,000 500,000 Common stockholders' equity 2,752,334 2,787,242 ----------- ----------- Total stockholders' equity 3,252,334 3,287,242 ----------- ----------- Total liabilities and stockholders' equity $46,570,530 $47,555,626 =========== =========== Interest income/earning assets $694,124 6.51% $704,857 6.61% Interest expense/earning assets 426,848 4.00 427,526 4.01 -------- ---- -------- ---- Net interest differential $267,276 2.51% $277,331 2.60% ======== ==== ======== ==== (1) Based on amortized or historic cost with the mark-to-market adjustment on securities available for sale included in other assets (2) Excludes noninterest-bearing balances, which are included in other assets or other liabilities, respectively.
REPUBLIC NEW YORK CORPORATION AVERAGE BALANCES, NET INTEREST DIFFERENTIAL, AVERAGE RATES EARNED AND PAID (Fully taxable equivalent basis) (Dollars in thousands)
Quarter Ended ------------------------------- September 30, 1998 ------------------------------- AVERGAE INTEREST RATES AVERAGE INCOME/ EARNED/ BALANCE EXPENSE PAID ----------- -------- ------ Interest-earning assets: Interest-bearing deposits with banks $4,487,169 $75,466 6.67% Investment securities:(1) Taxable 23,236,182 385,960 6.59 Exempt from federal income taxes 1,349,946 25,533 7.50 ---------- ------- Total investment securities 24,586,128 411,493 6.64 Trading account assets(2) 1,018,907 17,128 6.67 Federal funds sold and securities purchased under resale agreements 3,275,722 46,326 5.61 Loans, net of unearned income: Domestic offices 10,013,229 209,880 8.32 Foreign offices 3,995,738 77,215 7.67 ---------- ------- Total loans, net of unearned income 14,008,967 287,095 8.13 ---------- ------- Total interest-earning assets 47,376,893 $837,508 7.01% ======== ==== Cash and due from banks 872,644 Other assets 6,159,305 ---------- Total assets $54,408,842 =========== Interest-bearing funds: Consumer and other time deposits $10,264,566 $97,879 3.78% Certificates of deposit 1,050,679 13,142 4.96 Deposits in foreign offices 18,067,907 272,264 5.98 ---------- ------- ---- Total interest-bearing deposits 29,383,152 383,285 5.18 Trading account liabilities(2) 449,127 1,999 1.77 Short-term borrowings 8,500,697 111,521 5.20 Total long-term debt 4,827,355 77,904 6.40 ---------- ------- ---- Total interest-bearing funds 43,160,331 $574,709 5.28% ======== ==== Noninterest-bearing deposits: In domestic offices 2,696,884 In foreign offices 218,525 Other liabilities 5,050,954 Stockholders' equity: Preferred stock 500,000 Common stockholders' equity 2,782,148 --------- Total stockholders' equity 3,282,148 --------- Total liabilities and stockholders' equity $54,408,842 =========== Interest income/earning assets $837,508 7.01% Interest expense/earning assets 574,709 4.81 -------- ---- Net interest differential $262,799 2.20% ======== ==== (1) Based on amortized or historic cost with the mark-to-market adjustment on securities available for sale included in other assets (2) Excludes noninterest-bearing balances, which are included in other assets or other liabilities, respectively.
REPUBLIC NEW YORK CORPORATION AVERAGE BALANCES NET INTEREST DIFFERENTIAL, AVERAGE RATES EARNED AND PAID (Fully taxable equivalent basis) (Dollars in thousands)
Nine Months Ended September 30, -------------------------------------------------------------------------------- 1999 1998 -------------------------------------------------------------------------------- AVERAGE AVERAGE INTEREST RATES INTEREST RATES AVERAGE INCOME/ EARNED/ AVERAGE INCOME/ EARNED/ BALANCE EXPENSE PAID BALANCE EXPENSE PAID ---------- -------- ------ ---------- ----------- ------- Interest-earning assets: Interest-bearing deposits with banks $2,858,877 $106,554 4.98% $4,530,358 $221,776 6.55% Investment securities:(1) Taxable 21,038,334 1,024,945 6.51 23,224,016 1,171,282 6.74 Exempt from federal income taxes 1,344,085 74,889 7.45 1,421,288 83,055 7.81 ---------- --------- ----------- ----------- Total investment securities 22,382,419 1,099,834 6.57 24,645,304 1,254,337 6.80 Trading account assets(2) 1,214,797 53,034 5.84 1,094,672 61,275 7.48 Federal funds sold and securities purchased under resale agreements 1,886,172 69,463 4.92 3,310,576 138,023 5.57 Loans, net of unearned income: Domestic offices 10,428,574 573,673 7.35 9,531,669 593,760 8.33 Foreign offices 3,733,961 196,506 7.04 3,982,318 242,229 8.13 ----------- --------- ----------- ---------- Total loans, net of unearned income 14,162,535 770,179 7.27 13,513,987 835,989 8.27 ----------- --------- ----------- ---------- Total interest-earning assets 42,504,800 $2,099,064 6.60% 47,094,897 $2,511,400 7.13% ========== ==== ========== ==== Cash and due from banks 930,398 856,123 Other assets 3,903,942 7,302,764 ----------- ---------- Total assets $47,339,140 $55,253,784 =========== =========== Interest-bearing funds: Consumer and other time deposits $9,954,036 $242,615 3.26% $10,442,183 $301,502 3.86% Certificates of deposit 703,435 22,238 4.23 1,289,526 49,068 5.09 Deposits in foreign offices 16,254,207 619,341 5.09 17,722,120 781,973 5.90 ----------- -------- ----------- ---------- Total interest-bearing deposits 26,911,678 884,194 4.39 29,453,829 1,132,543 5.14 Trading account liabilities(2) 327,324 1,968 0.80 413,049 10,849 3.51 Short-term borrowings 6,037,147 206,574 4.57 8,480,191 331,411 5.23 Total long-term debt 4,356,120 198,100 6.08 4,778,470 230,456 6.45 ----------- -------- ----------- ---------- Total interest-bearing funds 37,632,269 $1,290,836 4.59% 43,125,539 $1,705,259 5.29% ========== ==== ========== ==== Noninterest-bearing deposits: In domestic offices 2,886,316 2,634,408 In foreign offices 201,370 244,468 Other liabilities 3,414,139 5,825,957 Stockholders' equity: Preferred stock 500,000 500,000 Common stockholders' equity 2,705,046 2,923,412 ----------- ----------- Total stockholders' equity 3,205,046 3,423,412 ----------- ----------- Total liabilities and stockholders' equity $47,339,140 $55,253,784 ============ =========== Interest income/earning assets $2,099,064 6.60% $2,511,400 7.13% Interest expense/earning assets 1,290,836 4.06 1,705,259 4.84 ----------- ---- ---------- ---- Net interest differential $808,228 2.54% $806,141 2.29% =========== ==== ========== ==== (1) Based on amortized or historic cost with the mark-to-market adjustment on securities available for sale included in other assets (2) Excludes noninterest-bearing balances, which are included in other assets or other liabilities, respectively.
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