EX-99.3 6 0006.txt RESTATE SECURITIES ACT GUIDE 3 Exhibit 99.3 FIVE YEAR FINANCIAL SUMMARY AND SELECTED RATIOS (Dollars in thousands, except per share data)
As of/For the Years Ended December 31, --------------------------------------------------------------- 1999 1998 1997 1996 1995 ----------- ----------- ----------- ----------- ----------- Summary of Operations Interest income........ $ 3,775,553 $ 3,492,813 $ 3,163,890 $ 2,858,370 $ 2,681,366 Interest expense....... 1,842,605 1,733,108 1,540,561 1,371,882 1,325,225 ----------- ----------- ----------- ----------- ----------- Net interest income.... 1,932,948 1,759,705 1,623,329 1,486,488 1,356,141 Provision for loan and lease losses.......... 114,433 114,729 123,096 77,919 54,694 ----------- ----------- ----------- ----------- ----------- Net interest income after provision for loan and lease losses................ 1,818,515 1,644,976 1,500,233 1,408,569 1,301,447 Noninterest income..... 875,479 690,427 588,347 445,134 346,430 Noninterest expense.... 1,647,537 1,376,915 1,326,657 1,159,092 1,119,710 ----------- ----------- ----------- ----------- ----------- Income before income taxes................. 1,046,457 958,488 761,923 694,611 528,167 Provision for income taxes................. 340,883 306,744 260,197 227,302 173,453 ----------- ----------- ----------- ----------- ----------- Net income............. $ 705,574 $ 651,744 $ 501,726 $ 467,309 $ 354,714 =========== =========== =========== =========== =========== Per Common Share Average shares outstanding (000's): Basic.................. 395,871 390,777 387,667 387,598 386,109 Diluted................ 402,553 398,608 394,996 396,127 400,369 Basic earnings per share................. $ 1.78 $ 1.67 $ 1.29 $ 1.20 $ 0.90 =========== =========== =========== =========== =========== Diluted earnings per share................. $ 1.75 $ 1.64 $ 1.27 $ 1.18 $ 0.89 =========== =========== =========== =========== =========== Cash dividends paid.... $ .75 $ .66 $ .58 $ .50 $ .43 Shareholders' equity... 10.19 10.17 9.12 8.62 8.34 Average Balances Securities, at amortized cost........ $13,217,708 $11,548,592 $10,567,862 $ 9,731,073 $ 9,311,950 Loans and leases *..... 33,904,439 30,543,475 27,100,788 24,438,883 22,659,115 Other assets........... 3,742,090 3,389,861 2,715,990 2,522,365 2,417,805 ----------- ----------- ----------- ----------- ----------- Total assets.......... $50,864,237 $45,481,928 $40,384,640 $36,692,321 $34,388,870 =========== =========== =========== =========== =========== Deposits............... $33,726,798 $31,193,327 $29,243,442 $27,728,536 $25,665,570 Other liabilities...... 6,976,907 5,898,139 4,469,812 3,583,192 4,375,395 Long-term debt......... 6,116,548 4,647,116 3,303,968 2,232,005 1,398,506 Common shareholders' equity................ 4,043,984 3,743,346 3,363,646 3,125,865 2,869,490 Preferred shareholders' equity................ -- -- 3,772 22,723 79,909 ----------- ----------- ----------- ----------- ----------- Total liabilities and shareholders' equity............... $50,864,237 $45,481,928 $40,384,640 $36,692,321 $34,388,870 =========== =========== =========== =========== =========== Period End Balances Total assets........... $53,000,836 $48,190,494 $43,606,211 $38,612,527 $35,810,281 Deposits............... 34,147,643 33,214,094 30,601,384 28,731,109 26,966,326 Long-term debt......... 6,073,428 5,499,873 4,183,462 2,611,973 1,701,433 Shareholders' equity... 4,063,619 4,030,929 3,546,832 3,278,515 3,155,310 Selected Ratios Rate of return on: Average total assets... 1.39% 1.43% 1.24% 1.27% 1.03% Average common shareholders' equity.. 17.45 17.41 14.91 14.92 12.15 Dividend payout........ 42.13 39.52 44.96 41.67 47.78 Average equity to average assets........ 7.95 8.23 8.34 8.58 8.58
-------- * Loans and leases are net of unearned income and include loans held for sale. NM Not meaningful. 47 Table 1 Selected Financial Data of Significant Banking & Thrift Subsidiaries As of/For the Years Ended December 31, 1999, 1998 and 1997
One Valley One Valley - Central BB&T-NC BB&T-SC BB&T-VA Premier - National Va. ----------- ---------- ---------- ---------- ---------- ---------- (Dollars in thousands) 1999 -------------------------------------------------------------------------------------------- Total assets............ $31,396,668 $4,842,462 $5,098,872 $1,542,443 $2,499,477 $1,218,907 Securities.............. 8,139,270 477,705 1,308,673 160,119 574,153 331,880 Loans and leases, net of unearned income*....... 20,604,518 3,698,046 3,294,038 802,712 1,518,392 793,838 Deposits................ 19,068,875 3,686,484 3,462,041 1,217,053 1,389,653 901,062 Shareholder's equity.... 2,253,961 364,060 471,938 147,098 154,423 128,916 Net interest income..... 1,027,813 216,781 188,522 63,852 75,914 40,054 Provision for loan and lease losses........... 52,781 15,491 6,689 8,824 6,776 455 Noninterest income...... 586,246 68,473 51,170 8,926 48,021 6,017 Noninterest expense..... 956,414 126,689 145,242 44,050 72,812 29,458 Net income.............. 426,214 91,059 54,457 14,675 29,312 10,614 1998 -------------------------------------------------------------------------------------------- Total assets............ $28,375,063 $4,641,393 $5,257,737 $ 919,166 $2,136,229 $1,194,908 Securities.............. 7,057,881 783,727 1,177,446 80,423 506,502 380,867 Loans and leases, net of unearned income*....... 18,879,630 3,266,871 3,321,677 746,185 1,415,722 683,278 Deposits................ 18,934,238 3,702,383 3,496,787 805,853 1,434,102 940,389 Shareholder's equity.... 2,294,145 429,572 612,083 94,776 145,856 137,103 Net interest income..... 951,972 201,132 187,189 45,596 73,573 39,821 Provision for loan and lease losses........... 52,283 13,455 12,227 480 5,939 1,337 Noninterest income...... 479,326 71,945 52,550 7,972 40,551 5,135 Noninterest expense..... 841,668 119,224 143,515 26,365 65,894 26,364 Net income.............. 380,574 89,653 52,526 17,976 27,890 11,262 1997 -------------------------------------------------------------------------------------------- Total assets............ $24,523,930 $4,364,982 $5,260,598 $ 366,053 $1,876,021 $ 981,854 Securities.............. 5,835,463 1,020,554 1,469,392 42,177 489,421 406,969 Loans and leases, net of unearned income*....... 16,660,073 3,052,755 3,274,679 292,194 1,199,527 518,092 Deposits................ 17,356,397 3,401,236 3,507,108 311,328 1,363,028 689,015 Shareholder's equity.... 1,918,190 374,871 574,742 27,365 139,833 119,013 Net interest income..... 910,497 184,341 123,738 14,690 67,897 31,374 Provision for loan and lease losses........... 60,513 14,109 8,537 350 3,360 535 Noninterest income...... 455,422 70,916 27,008 1,994 33,719 2,760 Noninterest expense..... 861,218 135,018 90,649 10,520 58,709 19,109 Net income.............. 294,059 68,024 34,089 3,692 26,662 8,805
-------- * Includes loans held for sale. 48 Table 2 Composition of Loan and Lease Portfolio *
December 31, ----------------------------------------------------------- 1999 1998 1997 1996 1995 ----------- ----------- ----------- ----------- ----------- (Dollars in thousands) Loans: Commercial, financial and agricultural..... $ 5,382,373 $ 5,055,051 $ 4,602,571 $ 4,013,399 $ 3,502,071 Real estate-- construction and land development.......... 3,818,396 2,932,284 2,790,483 2,125,963 1,568,065 Real estate-- mortgage............. 20,237,959 18,272,695 16,424,868 14,616,876 13,953,171 Consumer.............. 4,589,510 4,035,015 3,952,321 3,997,544 3,603,052 ----------- ----------- ----------- ----------- ----------- Loans held for investment......... 34,028,238 30,295,045 27,770,243 24,753,782 22,626,359 Loans held for sale............... 367,243 1,340,420 627,900 303,632 328,971 ----------- ----------- ----------- ----------- ----------- Total loans....... 34,395,481 31,635,465 28,398,143 25,057,414 22,955,330 Leases.................. 2,606,002 1,620,326 788,462 576,991 376,152 ----------- ----------- ----------- ----------- ----------- Total loans and leases........... $37,001,483 $33,255,791 $29,186,605 $25,634,405 $23,331,482 =========== =========== =========== =========== ===========
-------- * Balances include unearned income. 49 Table 3 Selected Loan Maturities and Interest Sensitivity *
December 31, 1999 ------------------------------------- Commercial, Financial and Real Estate: Agricultural Construction Total ------------ ------------- ---------- (Dollars in thousands) Fixed rate: 1 year or less (2)..................... $ 272,548 $ 570,850 $ 843,398 1-5 years.............................. 1,157,285 307,381 1,464,666 After 5 years.......................... 299,524 -- 299,524 ---------- ---------- ---------- Total................................ 1,729,357 878,231 2,607,588 ---------- ---------- ---------- Variable rate: 1 year or less (2)..................... 1,912,354 1,999,312 3,911,666 1-5 years.............................. 1,574,450 940,853 2,515,303 After 5 years.......................... 166,212 -- 166,212 ---------- ---------- ---------- Total................................ 3,653,016 2,940,165 6,593,181 ---------- ---------- ---------- Total loans and leases (1)......... $5,382,373 $3,818,396 $9,200,769 ========== ========== ==========
-------- * Balances include unearned income. Scheduled repayments are reported in the maturity category in which the payment is due. Determinations of maturities are based upon contract terms. BB&T's credit policy does not permit automatic renewals of loans. At the scheduled maturity date (including balloon payment date), the customer must request a new loan to replace the matured loan and execute a new note with rate, terms and conditions negotiated at that time. (1)The table excludes:
(Dollars in thousands) ----------- (i) consumer loans to individuals for household, family and other personal expenditures...................... $ 4,589,510 (ii) real estate mortgage loans........................... 20,237,959 (iii) loans held for sale.................................. 367,243 (iv) leases............................................... 2,606,002 ----------- $27,800,714 ===========
(2)Includes loans due on demand. 50 Table 4 Allocation of Allowance for Loan and Lease Losses by Category
1999 1998 1997 1996 1995 ----------------- ----------------- ----------------- ----------------- ----------------- % Loans % Loans % Loans % Loans % Loans in each in each in each in each in each Amount category Amount category Amount category Amount category Amount category -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- (Dollars in thousands) Balance at end of period applicable to: Commercial, financial and agricultural...... $ 89,744 15% $ 80,508 16% $ 80,869 16% $ 82,291 15% $ 80,069 14% Real estate: Construction and land development........... 42,714 55 35,645 55 26,902 56 19,410 55 23,838 58 Mortgage............... 162,673 12 132,420 12 126,665 14 111,087 15 108,559 14 -------- --- -------- --- -------- --- -------- --- -------- --- Real estate--total..... 205,387 67 168,065 67 153,567 70 130,497 70 132,397 72 -------- --- -------- --- -------- --- -------- --- -------- --- Consumer............... 56,836 12 60,510 13 54,662 13 48,101 15 39,876 13 Leases................. 21,726 6 12,737 4 8,021 2 5,207 1 3,325 1 Unallocated............ 103,603 -- 120,521 -- 91,748 -- 80,015 -- 64,932 -- -------- --- -------- --- -------- --- -------- --- -------- --- Total................. $477,296 100% $442,341 100% $388,867 100% $346,111 100% $320,599 100% ======== === ======== === ======== === ======== === ======== ===
51 Table 5 Analysis of Allowance for Loan and Lease Losses
December 31, --------------------------------------------------------------- 1999 1998 1997 1996 1995 ----------- ----------- ----------- ----------- ----------- (Dollars in thousands) Balance, beginning of period................. $ 442,341 $ 388,867 $ 346,111 $ 320,599 $ 306,793 ----------- ----------- ----------- ----------- ----------- Charge-offs: Commercial, financial and agricultural...... (29,147) (18,765) (24,094) (16,793) (15,480) Real estate............ (17,192) (13,831) (16,226) (13,306) (15,005) Consumer............... (75,146) (80,989) (82,495) (59,862) (39,035) Lease receivables...... (993) (1,167) (671) (768) (614) ----------- ----------- ----------- ----------- ----------- Total charge-offs.... (122,478) (114,752) (123,486) (90,729) (70,134) ----------- ----------- ----------- ----------- ----------- Recoveries: Commercial, financial and agricultural...... 11,994 9,269 8,138 10,454 8,916 Real estate............ 4,146 4,153 5,882 7,171 4,424 Consumer............... 16,056 14,499 11,455 10,868 11,178 Lease receivables...... 107 425 232 136 395 ----------- ----------- ----------- ----------- ----------- Total recoveries..... 32,303 28,346 25,707 28,629 24,913 ----------- ----------- ----------- ----------- ----------- Net charge-offs........ (90,175) (86,406) (97,779) (62,100) (45,221) ----------- ----------- ----------- ----------- ----------- Provision charged to expense............... 114,433 114,729 123,096 77,919 54,694 ----------- ----------- ----------- ----------- ----------- Allowance of loans acquired in purchase transactions.......... 10,392 25,087 17,439 9,693 4,333 Reconciliation of fiscal year of merged companies to calender year.................. 305 64 -- -- -- ----------- ----------- ----------- ----------- ----------- Balance, end of period.. $ 477,296 $ 442,341 $ 388,867 $ 346,111 $ 320,599 =========== =========== =========== =========== =========== Average loans and leases *............... $33,904,439 $30,543,475 $27,100,788 $24,438,883 $22,659,115 Net charge-offs as a percentage of average loans and leases....... .27% .28% .36% .25% .20% =========== =========== =========== =========== ===========
-------- * Loans and leases are net of unearned income and include loans held for sale. 52 Table 6 Composition of Securities Portfolio
December 31, ----------------------------------- 1999 1998 1997 ----------- ----------- ----------- (Dollars in thousands) Trading Securities (at estimated fair value):.................................. $ 93,221 $ 60,422 $ 67,878 ----------- ----------- ----------- Securities held to maturity (at amortized cost): U.S. Treasury, government and agency obligations.......................... 23,184 59,823 178,016 States and political subdivisions..... 379,822 533,371 531,277 Mortgage-backed securities............ -- 71,663 210,436 Other securities...................... 1,891 8,786 9,405 ----------- ----------- ----------- Total securities held to maturity....... 404,897 673,643 929,134 ----------- ----------- ----------- Securities available for sale (at estimated fair value): U.S. Treasury, government and agency obligations.......................... 5,588,786 4,924,593 5,765,414 States and political subdivisions..... 615,878 229,343 135,791 Mortgage-backed securities............ 4,257,004 4,605,457 3,748,253 Other securities...................... 1,796,154 1,414,361 559,706 ----------- ----------- ----------- Total securities available for sale..... 12,257,822 11,173,754 10,209,164 ----------- ----------- ----------- Total securities.......................... $12,755,940 $11,907,819 $11,206,176 =========== =========== ===========
53 Table 7 Scheduled Maturities of Time Deposits $100,000 and Greater December 31, 1999 (Dollars in thousands) Maturity Schedule Less than three months............................................ $1,739,543 Three through six months.......................................... 840,924 Seven through twelve months....................................... 1,019,092 Over twelve months................................................ 831,267 ---------- Total........................................................... $4,430,826 ==========
54 Table 8 Short-Term Borrowed Funds The following information summarizes certain pertinent information for the past three years on short-term borrowed funds:
1999 1998 1997 ---------- ---------- ---------- (Dollars in thousands) Maximum outstanding at any month-end during the year.......................... $8,101,034 $6,851,348 $4,918,840 Average outstanding during the year....... 6,270,755 5,255,111 3,965,541 Average interest rate during the year..... 4.89% 5.20% 5.28% Average interest rate at end of year...... 4.28 4.82 5.51
55 Table 9 Capital Adequacy for BB&T Corporation and Principal Banking and Thrift Subsidiaries
One One Valley Regulatory BB&T- BB&T- BB&T- Valley Central Minimums BB&T NC SC VA Premier National Virginia ---------- ---- ----- ----- ----- ------- -------- -------- Risk-based capital ratios: Tier 1 capital(1)..... 4.0% 9.9% 9.8% 9.7% 11.3% 11.6% 10.4% 12.9% Total risk-based capital(2)........... 8.0 13.2 10.9 11.0 12.5 12.9 11.7 14.2 Tier 1 leverage ratio(3)............... 3.0 7.1 6.8 7.7 7.5 9.6 7.0 7.8
-------- (1) Shareholders' equity less nonqualifying intangible assets; computed as a ratio of risk- weighted assets, as defined in the risk-based capital guidelines. (2) Tier 1 capital plus qualifying loan loss allowance and subordinated debt; computed as a ratio of risk-weighted assets as defined in the risk-based capital guidelines. (3) Tier 1 capital computed as a percentage of fourth quarter average assets less nonqualifying intangibles. 56 Table 10 Securities
December 31, 1999 ------------------------------- Carrying Value Average Yield(3) -------------- ---------------- (Dollars in thousands) U.S. Treasury, government and agency obligations (1): Within one year............................. $ 1,176,090 6.42% One to five years........................... 3,380,495 6.22 Five to ten years........................... 1,684,880 6.47 After ten years............................. 3,627,509 6.46 ----------- ---- Total..................................... 9,868,974 6.37 ----------- ---- States and political subdivisions: Within one year............................. 71,372 9.51 One to five years........................... 285,836 8.01 Five to ten years........................... 370,338 7.27 After ten years............................. 268,154 7.51 ----------- ---- Total..................................... 995,700 7.70 ----------- ---- Other securities: Within one year............................. 76,434 6.34 One to five years........................... 42,630 6.36 Five to ten years........................... 15,338 7.11 After ten years............................. 342,191 6.54 ----------- ---- Total..................................... 476,593 6.51 ----------- ---- Securities with no stated maturity............ 1,414,673 5.85 ----------- ---- Total securities (2)........................ $12,755,940 6.43% =========== ====
-------- (1) Included in U.S. Treasury, government and agency obligations are mortgage- backed securities totaling $4.3 billion classified as available for sale and disclosed at estimated fair value. These securities are included in each of the categories based upon final stated maturity dates. The original contractual lives of these securities range from five to 30 years; however, a more realistic average maturity would be substantially shorter because of the monthly return of principal on certain securities. (2) Includes securities held to maturity of $404.9 million carried at amortized cost and securities available for sale and trading securities carried at estimated fair values of $12.3 billion and $93.2 million, respectively. (3) Taxable equivalent basis as applied to amortized cost. 57 Table 11 Asset Quality
December 31, ---------------------------- 1999 1998 1997 -------- -------- -------- (Dollars in thousands) Nonaccrual loans and leases*..................... $118,975 $119,138 $128,105 Restructured loans............................... 1,681 3,744 3,141 Foreclosed property.............................. 31,894 37,231 46,773 -------- -------- -------- Nonperforming assets........................... $152,550 $160,113 $178,019 ======== ======== ======== Loans 90 days or more past due and still accruing...................................... $ 59,974 $ 63,316 $ 57,047 ======== ======== ======== Asset Quality Ratios: Nonaccrual and restructured loans and leases as a percentage of loans and leases.............. .34% .38% .45% Nonperforming assets as a percentage of: Total assets................................... .29 .33 .41 Loans and leases plus foreclosed property...... .43 .49 .62 Net charge-offs as a percentage of average loans and leases.............................. .27 .28 .36 Allowance for losses as a percentage of loans and leases.................................... 1.33 1.37 1.35 Ratio of allowance for losses to: Net charge-offs.............................. 5.29x 5.12x 3.98x Nonaccrual and restructured loans and leases...................................... 3.96 3.60 2.96
-------- NOTE: Items referring to loans and leases are net of unearned income and include loans held for sale. * Includes $39.1 million, $50.7 million and $58.1 million of impaired loans at December 31, 1999, 1998 and 1997, respectively. See Note D in the "Notes to Consolidated Financial Statements." 58 Table 12 FTE Net Interest Income and Rate/Volume Analysis For the Years Ended December 31, 1999, 1998 and 1997
Average Balances Yield / Rate Income / Expense ----------------------------------- ---------------- -------------------------------- 1999 1998 1997 1999 1998 1997 1999 1998 1997 ----------- ----------- ----------- ---- ---- ---- ---------- ---------- ---------- (Dollars in thousands) Assets Securities (1): U.S. Treasury, government and other (5)....... $12,261,714 $10,899,209 $ 9,956,160 6.49% 6.65% 6.70% $ 795,483 $ 725,280 $ 667,284 States and political subdivision..... 955,994 649,383 611,702 7.65 7.99 8.09 73,100 51,888 49,496 ----------- ----------- ----------- ---- ---- ---- ---------- ---------- ---------- Total securities (5)............. 13,217,708 11,548,592 10,567,862 6.57 6.73 6.78 868,583 777,168 716,780 Other earning assets (2)...... 434,495 438,079 301,010 5.06 5.56 5.97 21,997 24,345 17,958 Loans and leases, net of unearned income(1)(3)(4)(5).. 33,904,439 30,543,475 27,100,788 8.79 9.07 9.21 2,981,635 2,769,855 2,495,684 ----------- ----------- ----------- ---- ---- ---- ---------- ---------- ---------- Total earning assets.......... 47,556,642 42,530,146 37,969,660 8.14 8.40 8.51 3,872,215 3,571,368 3,230,422 ----------- ----------- ----------- ---- ---- ---- ---------- ---------- ---------- Non-earning assets.......... 3,307,595 2,951,782 2,414,980 ----------- ----------- ----------- Total assets.... $50,864,237 $45,481,928 $40,384,640 =========== =========== =========== Liabilities and Shareholders' Equity Interest- bearing deposits: Savings and interest- checking........ $ 3,205,315 $ 3,519,414 $ 3,952,692 1.90 2.13 2.10 60,897 75,056 82,929 Money rate savings......... 8,795,744 7,123,108 5,698,302 2.98 3.13 3.21 262,344 222,767 182,922 Other time deposits........ 17,044,678 16,302,152 15,808,238 5.15 5.48 5.50 878,226 892,836 870,161 ----------- ----------- ----------- ---- ---- ---- ---------- ---------- ---------- Total interest- bearing deposits........ 29,045,737 26,944,674 25,459,232 4.14 4.42 4.46 1,201,467 1,190,659 1,136,012 Short-term borrowed funds.. 6,270,755 5,255,111 3,965,541 4.89 5.20 5.28 306,545 273,223 209,485 Long-term debt.. 6,116,548 4,647,116 3,303,968 5.47 5.79 5.90 334,593 269,226 195,064 ----------- ----------- ----------- ---- ---- ---- ---------- ---------- ---------- Total interest- bearing liabilities..... 41,433,040 36,846,901 32,728,741 4.45 4.70 4.71 1,842,605 1,733,108 1,540,561 ----------- ----------- ----------- ---- ---- ---- ---------- ---------- ---------- Noninterest- bearing deposits........ 4,681,061 4,248,653 3,784,210 Other liabilities..... 706,152 643,028 504,271 Shareholders' equity.......... 4,043,984 3,743,346 3,367,418 ----------- ----------- ----------- Total liabilities and shareholders' equity.......... $50,864,237 $45,481,928 $40,384,640 =========== =========== =========== Average interest rate spread..... 3.69 3.70 3.80 Net yield on earning assets.. 4.27% 4.32% 4.45% $2,029,610 $1,838,260 $1,689,861 ---- ---- ---- ---------- ---------- ---------- Taxable equivalent adjustment...... $ 96,662 $ 78,555 $ 66,532 ========== ========== ========== 1999 v. 1998 1998 v. 1997 ------------------------------ ------------------------------- Change due to Change due to Increase ------------------- Increase -------------------- (Decrease) Rate Volume (Decrease) Rate Volume ---------- --------- --------- ---------- ---------- --------- Assets Securities (1): U.S. Treasury, government and other (5)....... $ 70,203 $(18,570) $ 88,773 $ 57,996 $ (4,790) $ 62,786 States and political subdivision..... 21,212 (2,321) 23,533 2,392 (625) 3,017 ---------- --------- --------- ---------- ---------- --------- Total securities (5)............. 91,415 (20,891) 112,306 60,388 (5,415) 65,803 Other earning assets (2)...... (2,348) (2,150) (198) 6,387 (1,303) 7,690 Loans and leases, net of unearned income(1)(3)(4)(5).. 211,780 (85,779) 297,559 274,171 (38,549) 312,720 ---------- --------- --------- ---------- ---------- --------- Total earning assets.......... 300,847 (108,820) 409,667 340,946 (45,267) 386,213 ---------- --------- --------- ---------- ---------- --------- Non-earning assets.......... Total assets.... Liabilities and Shareholders' Equity Interest- bearing deposits: Savings and interest- checking........ (14,159) (7,789) (6,370) (7,873) 1,348 (9,221) Money rate savings......... 39,577 (10,710) 50,287 39,845 (4,824) 44,669 Other time deposits........ (14,610) (54,230) 39,620 22,675 (4,395) 27,070 ---------- --------- --------- ---------- ---------- --------- Total interest- bearing deposits........ 10,808 (72,729) 83,537 54,647 (7,871) 62,518 Short-term borrowed funds.. 33,322 (17,073) 50,395 63,738 (3,359) 67,097 Long-term debt.. 65,367 (15,727) 81,094 74,162 (3,717) 77,879 ---------- --------- --------- ---------- ---------- --------- Total interest- bearing liabilities..... 109,497 (105,529) 215,026 192,547 (14,947) 207,494 ---------- --------- --------- ---------- ---------- --------- Noninterest- bearing deposits........ Other liabilities..... Shareholders' equity.......... Total liabilities and shareholders' equity.......... Average interest rate spread..... Net yield on earning assets.. $191,350 $ (3,291) $194,641 $148,399 $ (30,320) $178,719 ---------- --------- --------- ---------- ---------- --------- Taxable equivalent adjustment......
---- (1) Yields related to securities, loans and leases exempt from income taxes are stated on a taxable equivalent basis assuming tax rates in effect for the periods presented. (2) Includes Federal funds sold and securities purchased under resale agreements or similar arrangements. (3) Loan fees, which are not material for any of the periods shown, have been included for rate calculation purposes. (4) Nonaccrual loans have been included in the average balances. Only the interest collected on such loans has been included as income. (5) Includes assets which were held for sale or available for sale at amortized cost and trading securities at estimated fair value. 59 Table 13 Noninterest Income
% Change ------------- Years Ended December 31, 1999 1998 --------------------------- v. v. 1999 1998 1997 1998 1997 -------- -------- -------- ------ ----- (Dollars in thousands) Service charges on deposits........ $241,904 $215,021 $191,158 12.5% 12.5% Mortgage banking income............ 163,562 127,122 82,107 28.7 54.8 Trust income....................... 70,079 54,851 47,716 27.8 15.0 Agency insurance commissions....... 79,499 52,186 40,149 52.3 30.0 Other insurance commissions........ 13,991 13,099 15,314 6.8 (14.5) Securities (losses) gains, net..... (6,149) 10,155 5,932 (160.6) 71.2 Bankcard fees and merchant discounts......................... 42,883 36,657 28,400 17.0 29.1 Investment banking and brokerage fees and commissions.............. 128,609 45,723 28,272 181.3 61.7 Other bank service fees and commissions....................... 70,751 63,855 51,931 6.2 28.0 International income............... 6,120 4,563 3,685 34.1 23.8 Amortization of negative goodwill.. 6,243 6,243 6,180 -- 1.0 Other noninterest income........... 57,987 60,952 87,503 (.4) (33.4) -------- -------- -------- ------ ----- Total noninterest income......... $875,479 $690,427 $588,347 26.8% 17.4% ======== ======== ======== ====== =====
60 Table 14 Noninterest Expense
% Change Years Ended December 31, --------------- -------------------------------- 1999 v. 1998 v. 1999 1998 1997 1998 1997 ---------- ---------- ---------- ------- ------- (Dollars in thousands) Salaries and wages........... $ 683,624 $ 578,696 $ 525,099 18.1% 10.2% Pension and other employee benefits.................... 151,264 121,563 131,365 24.4 (7.5) Net occupancy expense on bank premises.................... 103,896 89,018 104,177 16.7 (14.6) Furniture and equipment expense..................... 141,955 119,297 105,276 19.0 13.3 Federal deposit insurance premiums.................... 10,531 6,537 8,195 61.1 (20.2) Foreclosed property expense.. 4,816 2,880 3,944 67.2 (27.0) Amortization of intangibles and mortgage servicing rights...................... 81,699 61,523 31,402 32.8 95.9 Software..................... 19,299 11,610 15,541 66.2 (25.3) Telephone.................... 32,487 27,162 24,463 19.6 11.0 Donations.................... 14,526 7,828 8,332 85.6 (6.0) Advertising and public relations................... 32,057 34,751 36,266 (7.8) (4.2) Travel and transportation.... 16,526 12,640 10,668 30.7 18.5 Professional services........ 78,937 69,928 67,894 12.9 3.0 Supplies..................... 26,563 25,111 23,104 5.8 8.7 Loan and lease expense....... 38,137 28,657 44,431 33.1 (35.5) Deposit related expense...... 19,721 16,109 19,054 22.4 (15.5) Other noninterest expenses... 191,499 163,605 167,446 17.0 (2.3) ---------- ---------- ---------- ---- ----- Total noninterest expense.. $1,647,537 $1,376,915 $1,326,657 19.7% 3.8% ========== ========== ========== ==== =====
61 Table 15 Interest Rate Sensitivity Gap Analysis December 31, 1999
Expected Repricing or Maturity Date -------------------------------------------------------------- Within One to Three to After Five One Year Three Years Five Years Years Total ----------- ----------- ----------- ---------- ----------- (Dollars in thousands) Assets Securities and other interest-earning assets*.............. $ 3,134,690 $ 3,068,227 $ 4,270,939 $2,858,357 $13,332,213 Federal funds sold and securities purchased under resale agreements or similar arrangements......... 432,877 -- -- -- 432,877 Loans and leases**.... 19,260,950 5,890,213 5,970,931 4,634,212 35,756,306 ----------- ----------- ----------- ---------- ----------- Total interest-earning assets................. 22,828,517 8,958,440 10,241,870 7,492,569 49,521,396 ----------- ----------- ----------- ---------- ----------- Liabilities Savings and interest checking***.......... -- 1,787,287 595,762 595,762 2,978,811 Money rate savings***........... 4,796,163 4,796,163 -- -- 9,592,326 Other time deposits... 12,717,441 3,051,699 365,782 64,207 16,199,129 Foreign deposits...... 529,401 -- -- -- 529,401 Federal funds purchased and securities sold under repurchase agreements or similar arrangements......... 2,944,672 -- -- -- 2,944,672 Long-term debt and other borrowings..... 6,879,766 649,973 161,938 3,408,952 11,100,629 ----------- ----------- ----------- ---------- ----------- Total interest-bearing liabilities............ 27,867,443 10,285,122 1,123,482 4,068,921 $43,344,968 ----------- ----------- ----------- ---------- =========== Asset-liability gap..... (5,038,926) (1,326,682) 9,118,388 3,423,648 ----------- ----------- ----------- ---------- Derivatives affecting interest rate sensitivity: Pay fixed interest rate swaps........... 476,146 (4,361) (441,036) (30,749) Receive fixed interest rate swaps........... (560,000) -- 270,000 290,000 Caps, floors and collars.............. (47,250) -- 47,250 -- ----------- ----------- ----------- ---------- (131,104) (4,361) (123,786) 259,251 ----------- ----------- ----------- ---------- Interest rate sensitivity gap........ $(5,170,030) $(1,331,043) $ 8,994,602 $3,682,899 =========== =========== =========== ========== Cumulative interest rate sensitivity gap........ $(5,170,030) $(6,501,073) $ 2,493,529 $6,176,428 =========== =========== =========== ==========
-------- * Securities based on amortized cost. ** Loans and leases include loans held for sale and are net of unearned income. *** Projected runoff of deposits that do not have a contractual maturity date was computed based upon decay rate assumptions developed by bank regulators to assist banks in addressing FDICIA rule 305. 62 Table 16 Capital--Components and Ratios
December 31, ---------------------- 1999 1998 ---------- ---------- (Dollars in thousands) Tier 1 capital.......................................... $3,679,736 $3,536,006 Tier 2 capital.......................................... 1,221,886 1,226,951 ---------- ---------- Total regulatory capital................................ $4,901,622 $4,762,957 ========== ========== Risk-based capital ratios: Tier 1 capital........................................ 9.9% 11.1% Total regulatory capital.............................. 13.2 14.9 Tier 1 leverage ratio................................... 7.1 7.5
63 Table 17 Quarterly Common Stock Summary
1999 1998 ------------------------------ ------------------------------ Closing Sales Prices Closing Sales Prices -------------------- Dividends -------------------- Dividends High Low Last Paid High Low Last Paid ------ ------ ------ --------- ------ ------ ------ --------- Quarter Ended: March 31........ $40.44 $34.94 $36.19 $.175 $33.84 $29.03 $33.84 $.155 June 30......... 40.25 33.81 36.69 .175 34.06 32.03 33.81 .155 September 30.... 36.63 30.50 32.38 .20 36.03 28.00 29.94 .175 December 31..... 36.94 27.31 27.38 .20 40.63 27.31 40.31 .175 ----- ----- Year............ $40.44 $27.31 $27.38 $ .75 $40.63 $27.31 $40.31 $ .66 ===== =====
64 Table 18 Quarterly Financial Summary--Unaudited
1999 1998 -------------------------------------------------- ----------------------------------------------- Fourth Third Second First Fourth Third Second First Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- (Dollars in thousands, except per share data) Consolidated Summary of Operations: Net interest income FTE.................. $ 527,314 $ 517,565 $ 505,242 $ 479,489 $ 470,316 $ 459,299 $ 465,903 $ 442,742 FTE adjustment........ 24,729 25,620 24,817 21,496 21,258 19,566 19,157 18,574 Provision for loan and lease losses......... 40,032 24,352 26,078 23,971 28,729 26,012 30,933 29,055 Securities (losses) gains, net........... (1,969) (1,882) (2,895) 597 2,290 2,951 1,547 3,367 Other noninterest income............... 225,672 224,494 228,622 202,840 176,090 174,949 170,884 158,349 Noninterest expense... 435,382 433,583 401,785 376,787 357,168 349,459 341,028 329,260 Provision for income taxes................ 84,083 82,843 89,759 84,198 75,397 76,849 80,149 74,349 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- Net income............ $ 166,791 $ 173,779 $ 188,530 $ 176,474 $ 166,144 $ 165,313 $ 167,067 $ 153,220 =========== =========== =========== =========== =========== =========== =========== =========== Diluted net income per share................ $ .41 $ .43 $ .47 $ .44 $ .41 $ .42 $ .42 $ .39 =========== =========== =========== =========== =========== =========== =========== =========== Selected Average Balances: Assets................ $52,637,610 $51,666,605 $50,659,620 $48,438,057 $46,999,671 $44,751,958 $45,021,635 $43,985,980 Securities, at amortized cost....... 13,447,769 13,814,500 13,450,238 12,137,366 11,992,065 11,250,808 11,487,441 11,312,606 Loans and leases *.... 35,347,402 34,133,559 33,414,854 32,690,226 31,474,634 30,310,038 30,216,203 29,340,754 Total earning assets.. 49,182,038 48,447,313 47,342,887 45,200,706 43,965,871 41,876,879 42,170,942 41,166,403 Deposits.............. 34,276,123 33,991,978 33,523,225 33,100,026 32,010,188 30,614,237 30,920,835 30,266,399 Short-term borrowed funds................ 6,940,113 6,676,203 6,337,899 5,104,085 5,142,493 5,039,161 5,556,845 5,232,419 Long-term debt........ 6,582,262 6,316,154 6,048,556 5,505,189 5,206,440 4,825,067 4,239,944 4,262,363 Total interest-bearing liabilities.......... 42,951,801 42,256,418 41,264,928 39,208,742 37,865,445 36,224,625 36,515,021 35,793,474 Shareholders' equity.. 4,101,967 3,967,306 4,057,292 4,049,638 4,005,258 3,622,461 3,639,884 3,591,370
-------- * Loans and leases are net of unearned income and include loans held for sale. 65