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Previous: ONYX CAPITAL MANAGEMENT LLC, 13F-HR, 2000-11-15 |
Next: UNITY WIRELESS CORP, NT 10-Q, 2000-11-15 |
FEDERAL DEPOSIT INSURANCE CORPORATION
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): November 1, 2000
----------------
SANTANDER BANCORP
--------------------------------------------------------
(Exact name of registrant as specified in this charter)
Puerto Rico 001-15849 66-0573723
------------------------------- --------------------- -------------
(State or other jurisdiction of (Commission File No.) (IRS Employer
incorporation) Identification No.)
207 Ponce de León Avenue, San Juan, Puerto Rico 00917
-------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant´s telephone number, including area code: (787) 759-7070
---------------------------------------------------------------------
ITEM 5. OTHER EVENTS
On October 10, 2000, Santander BanCorp (the "Company") announced that its subsidiary, Santander Insurance Agency, had received from the Insurance Commissioner of Puerto Rico, Juan Antonio García, the required license for Insurance Agent and General Agent. A copy of the press release disclosing said events is attached as an exhibit to this Current Report on Form 8-K.
In addition, the Company, on October 16, 2000, released its unaudited earnings for the quarter ended September 30, 2000. The Company's press release also included certain unaudited balance sheet and operational data as of September 30, 2000. A copy of the press release disclosing the Company's unaudited earnings for September 30, 2000 is attached as an exhibit to this Current Report on Form 8-K.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA, FINANCIAL INFORMATION AND EXHIBITS
(c) Exhibits
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant had duly caused this report to be signed on its behalf of the undersigned hereunto duly authorized.
BANCO SANTANDER PUERTO RICO
By: /s/ María Calero Padrón
María Calero Padrón
First Senior Vice President
Date: November 1, 2000
FOR IMMEDIATE RELEASE
For more information contact:
Puerto Rico New York
José González de Castejón (787) 759-9094 Ana Calvo de Luis (212) 350-3903 Iris Rivera (787) 250-3042
SANTANDER INSURANCE AGENCY RECEIVES
INSURANCE AGENT LICENSE
(San Juan, Puerto Rico)October 10, 2000 - Santander BanCorp (NYSE: SBP; LATIBEX: XSBP), announced that its subsidiary, Santander Insurance Agency, had received from the Insurance Commissioner of Puerto Rico, Juan Antonio García, the required license for Insurance Agent and General Agent.
Jorge M. García, a Puerto Rican professional with extensive experience in the insurance industry, is Santander Insurance Agency´s General Manager. Santander Insurance Agency will offer, in its first phase, life, health and physical disability insurance as a corporate agent and will operate as a general agent.
Juan Arenado, President and Chief Executive Officer of Banco Santander Puerto Rico, main subsidiary of Santander BanCorp, stated, "we are very pleased to become the first financial holding company in the Island to receive the insurance and general agent licenses. This as a result of the new legislation created by the government of Puerto Rico, in accordance with the Gramm-Leach-Bliley Act. With this, Grupo Santander Central Hispano, which has vast experience in the insurance industry in Spain and Latin America, validates its support and commitment in this market."
Santander BanCorp is a publicly held financial holding company. The Company´s common shares are traded in the New York Stock Exchange and in the Madrid Stock Exchange, Latibex. Banco Santander Puerto Rico, the Company´s wholly owned subsidiary has been operating in Puerto Rico for 24 years and offers a full array of services in the areas of commercial, mortgage and consumer banking supported by a team of over 1,600 employees. The Bank has 75 branches, 15 are fully automated branches that operate under the name of "Red Express".
Banco Santander Central Hispano, S.A. (Spanish stock exchange: SCH; NYSE: STD), the leading financial group in Spain and Latin America and one of the largest banks by market capitalization in the Euro Zone, owns 82% of the outstanding shares of Santander BanCorp. According to its balance sheet as of June 30, 2000, Banco Santander Central Hispano, S.A. had US$384 billion in total managed funds and US$303 billion in assets, with 24 million customers and operations in 37 countries, including all of the world´s major financial centers. Banco Santander Central Hispano offers a wide range of commercial and consumer banking services in Europe and Latin America through its over 9,900 offices and more than 111,000 employees. The Group is first in total assets in the region and is among the leaders in managing funds in Europe and Latin America, with more than $74 billion in mutual and pension funds under management.
###
Contacts:
(Puerto Rico) (New York)
José González de Castejón (787) 759-9094 Ana Calvo de Luis (212) 350-3903 Iris Rivera (787) 250-3042
SANTANDER BANCORP ANNOUNCES EARNINGS FOR THE
QUARTER AND NINE MONTHS ENDED SEPTEMBER 30, 2000
San Juan, Puerto Rico, October 16, 2000 Santander BanCorp, (NYSE: SBP; LATIBEX: XSBP), holding company of Banco Santander Puerto Rico and Santander Insurance Agency, Inc., reported today its unaudited financial results for the third quarter ended September 30, 2000.
For the quarter ended September 30, 2000, net income amounted to $20 million or 45 cents per share, compared with $20 million or 44 cents per share reported for the same quarter in 1999. The net income for the quarter ended September 30, 2000 was favorably impacted by gains on sale of assets and mortgage servicing rights recognized, offset by an increase of $1.5 million in the provision for loan losses and a severance payment of $1.3 million. Return on Average Assets and Return on Average Common Equity (ROE) for the quarter ended September 30, 2000 were 1.03% and 14.73%, respectively. For the same quarter in 1999, these ratios were 1.01% and 15.90%, respectively. The decrease in ROE for the third quarter of 2000 results from a 7.45% growth in the shareholders´ equity average balance. The Efficiency Ratio1 improved by 114 basis points to 51.16% when compared to 52.30% for the same period in 1999.
For the first nine months of 2000, net income amounted to $59 million or $1.31 per share, sustaining the figures reported for the same period in 1999. Net income for the nine-month period includes gains on sale of mortgages and increase in service charges on deposit accounts. These were offset by an increase of $9.7 million in the provision for loan losses and a $3.8 million loss on the sale of securities. For the nine months ended September 30, 2000, Return on Average Assets and Return on Average Common Equity for the nine month ended September 30, 2000 were 1.00% and 14.93%, respectively. For the same period in 1999, these ratios were 1.04% and 16.0%, respectively. The Efficiency Ratio1 improved by 120 basis points to a level of 52.07% for the nine-month period ended September 30, 2000, when compared to the same period in 1999.
Juan Arenado, President and Chief Executive Officer of Santander BanCorp, stated, "we are now beginning to see the positive results of the reengineering and reorganizing process that our institution has been carrying out since the beginning of this year." Arenado further commented "we are poised to capitalize on the complementary and unique strengths of the segmentation of our customer base. This internal renewal process has allowed us to focus on our client needs while streamlining our operations. Moreover, it will allow us to continue improving operating margins in order to better focus on actively pursuing the development of new services and products, anticipating the needs of our customer base."
Earnings Results
Net interest income1 reached $69.3 million for the third quarter of 2000, compared to $69.7 million for the same quarter in 1999, a slight decrease of 0.5%. However, net interest margin reached 3.74%, when compared to 3.69% for the third quarter of 1999, mainly as a result of an increase on the higher yielding loan portfolio. Also, for the quarter ended September 30, 2000, the yield on earning assets increased to 8.82% from 7.91% for the same quarter in 1999.
Arenado further pointed out that, "our wholly owned subsidiary, Banco Santander Puerto Rico, has undergone a significant transformation of its balance sheet in order to decrease the exposure to a fluctuating interest rate environment, by reducing its investment portfolio, while concentrating its efforts mainly in its core deposit and lending business.
Net interest income for the first nine months of 2000 amounted to $206.4 million, compared to $210.1 million for the same period in 1999. For the nine-month ended September 30, 2000, net interest margin reached 3.68% compared to 3.87% during the same period in 1999.
For the quarter ended September 30, 2000, other operating income increased to $16.6 million, representing a 64.9% increase when compared to $10.1 million reported on September 30, 1999. Excluding a $2.4 million gain from sale of mortgage loans, the recognition of $2.1 million mortgage servicing rights and a $1.1 million gain on sale of property, other operating income improved mostly due to an increase of 20.8% in service charges on deposit accounts and 14.2% in credit card fees. Service charges on deposit accounts increased as a result of new accounts opened, new deposit products offered and strict compliance with fee policies. Credit card fees incremented mainly due to an increase of 11.2% in the average credit card portfolio and an ongoing effort to increase the number of points-of-sale terminals and transactions.
During the nine-month period ended September 30, 2000, other operating income increased to $44.6 million from $29.3 million for the same period in 1999, representing an increase of 52.3% or $15.3 million. This increase derives from a gain on sale of mortgages of $4.0 million, recognition of mortgage servicing rights in the amount of $4.9 million, a gain on sale of property of $1.1 million, and an increase in service charges and other fees of $5 million.
Cost Control
For the third quarter ended September 30, 2000, the efficiency ratio improved by 114 basis points when compared to the third quarter of 1999. For the nine-month period ended September 30, 2000, the Efficiency Ratio1 attained a level of 52.07%, an enhancement of 120 basis points over the same nine-month period in 1999, mainly due to an effective cost control program.
Operational expenses for the nine-month period ended September 30, 2000 had a minor increase of 2.3%, when compared to the same period in 1999. Adjusting the operational expense to exclude a charge of $l.3 million for severance payment as a result of the reorganization process, the increase for this nine month period would be 1.3%, when compared to the same period in 1999.
Strong Balance Sheet Reflects Increase in Business Activities
Total assets as of September 30, 2000 reached $7.8 billion, a slight decrease of 2.4% when compared to the balance reported over the same period in 1999, mostly caused by the reduction of 13.4% in the investment portfolio.
For the first nine months of 2000, the loan portfolio maintained an uninterrupted growing trend, reaching $4.6 billion at September 30, 2000, an increase of $148.4 million when compared to the figures reported as of September 30, 1999. Excluding the anticipated reduction in mortgage and auto loans, the commercial loan portfolio reached $2.8 billion, a growth of $298.2 million, which represents a 10% increase.
The commercial and industrial sectors are still the backbone of the lending activity as continued growth has been experienced over several consecutive quarters. As of September 30, 2000, these segments represent 60% of the total loan portfolio. Construction lending for the third quarter of 2000 grew from $296 million in the third quarter of 1999 to $396 million as of September 30, 2000, a substantial increase of 33.8%. The increase of the construction portfolio is consistent with the development of the construction sector in the local economy and the bank continuous to be an important participant in this lending activity. The commercial and industrial portfolio, excluding construction loans, grew from $2.188 billion in the third quarter of 1999 to $2.386 billion for the quarter ended September 30, 2000, representing a growth of 9.1%. Mortgage and consumer loan portfolios experienced a decrease of $149.8 million or 8%, mainly as a result of the sale of a residential mortgage portfolio.
Deposits as of September 30, 2000 amounted to $4.4 billion, representing a healthy increase of 13.04% or $509 million, when compared to $3.9 billion reported as of September 30, 1999. This growth is the result of the Company´s efforts to increase its deposit base by actively launching new products, together with a direct marketing campaign to maximize cross selling. The positive effect of new and well-received products has resulted in an increase of our deposit base.
Asset Quality and Financial Strength
The growth level of non-performing loans to total loans stands at 1.26% for the quarter ended September 30, 2000, as compared to .98% as of September 30, 1999 is not directly related to a significant business segment. As of September 30, 2000, the coverage ratio (allowance for loan losses to total non-performing loans) amounted to 89.31%, compared to 125.71% as of September 30, 1999. When real estate collateral is taken into account, the coverage ratio is 129.1%.
As of September 30, 2000, Tier I capital to risk-adjusted assets, total capital to risk-adjusted assets (BIS ratio) and leverage ratios reached 10.74%, 11.78% and 7.44%, respectively.
Strategies for Growth
Santander Insurance Agency, a wholly owned subsidiary of Santander BanCorp, has been approved by the Commissioner of Insurance of Puerto Rico to operate as an Insurance and General Agent, effective October 10, 2000.
Juan Arenado commented that, "Santander BanCorp, through its subsidiary, Santander Insurance Agency, is one of the first financial holding companies in the Island to obtain local insurance and general agent licenses. We continue to explore broadening our range of financial services including the area of securities. Once again, Santander BanCorp demonstrates its support and commitment to Puerto Rico by venturing into new businesses which offer our customers the broadest range of financial products and services."
Shareholders´ Programs
Santander BanCorp has further validated its commitment to enhance shareholders´ value with its Stock Repurchase Program, which was started only this past May, and as of September 30, 2000 has reached almost 60% of its targeted objective to repurchase up to 1,274,546 of the company´s issued and outstanding shares of common stock.
On this issue, Arenado explained that "although no time limit was previously set, we anticipate reaching our goal of 3% by year´s end and are already pursuing to launch a new Common Stock Repurchase Program for the year 2001. Our plans and actions once again demonstrate our ongoing commitment and objective to improve our common stock value to our shareholders."
Institutional Background
Santander BanCorp is a publicly held financial holding company. The Company´s common shares are traded in the New York Stock Exchange and in the Madrid Stock Exchange, Latibex. Banco Santander Puerto Rico, the Company´ s wholly owned subsidiary, has been operating in Puerto Rico for 24 years and offers a full array of services in the areas of commercial, mortgage and consumer banking supported by a team of approximately 1,500 employees. The Bank has 75 branches, 15 are fully automated and operate under the name "Red Express". For more information, visit the Bank´s web site at www.santandernet.com.
Banco Santander Central Hispano, S.A.(BSCH) (Spanish stock exchange: SCH; NYSE: STD), the leading financial group in Spain and Latin America and one of the largest banks by market capitalization in the Euro Zone, owns 82% of the outstanding shares of Santander BanCorp. According to its balance sheet as of June 30, 2000, BSCH had US$384 billion in total managed funds and US$303 billion in assets, with 24 million customers and operations in 37 countries, including all of the world´s major financial centers. BSCH offers a wide range of commercial and consumer banking services in Europe and Latin America through its over 9,900 offices and more than 111,000 employees. The Group is first in total assets in the region and is among the leaders in managing funds in Europe and Latin America, with more than $74 billion in mutual and pension funds under management.
###
--------------------------------------------------------------------------------------------------------------------------------------------------------
This earnings report may contain certain forward-looking statements with respect to the financial condition, results of operations and business of Santander BanCorp that are subject to various risk factors which could cause future results to differ materially from current management expectations or estimates. Such factors include, but are not limited, to the possibility that adverse general economic conditions or that an adverse interest rate environment could develop.
| 2000 | 1999 | ||||
| Year | Third | Second | Year | Third | |
| SELECTED RATIOS | to Date | Quarter | Quarter | to Date | Quarter |
| Net interest margin (1) | 3.68% | 3.74% | 3.65% | 3.87% | 3.69% |
| Return on average assets (2) | 1.00% | 1.03% | 1.00% | 1.04% | 1.01% |
| Return on average common equity (2) | 14.93% | 14.73% | 14.95% | 16.00% | 15.90% |
| Efficiency Ratio (3) | 52.07% | 51.16% | 52.98% | 53.27% | 52.30% |
| Capital: | |||||
| Tier I capital to risk-adjusted assets | - | 10.74% | 10.39% | - | 10.06% |
| Total capital to risk-adjusted assets | - | 11.78% | 11.52% | - | 11.27% |
| Leverage ratio | - | 7.44% | 7.17% | - | 6.64% |
| Non-performing loans to total loans | - | 1.26% | 1.05% | - | 0.98% |
| Non-performing loans plus accruing loans | |||||
| past-due 90 days or more to loans | - | 1.36% | 1.16% | - | 1.05% |
| Allowance for loan losses to non- | |||||
| performing loans | - | 89.31% | 109.75% | - | 125.71% |
| Allowance for loans losses to period- | |||||
| end loans | - | 1.13% | 1.15% | - | 1.24% |
| (1) On a tax-equivalent basis. | |||||
| (2) Ratios for the quarters are annualized. | |||||
| (3) Operating expenses divided by net interest income, on a tax equivalent basis, plus other income, excluding | |||||
| gain on sale of securities. | |||||
| SANTANDER BANCORP | ||||||
| SELECTED CONSOLIDATED FINANCIAL INFORMATION (Unaudited): | ||||||
| (DOLLARS IN THOUSANDS) | ||||||
| Quarter ended September 30, | Nine months ended September 30, | |||||
| 2000 | 1999 | Variation | 2000 | 1999 | Variation | |
| Interest Income | $ 154,548 | $ 142,459 | 8.5% | $ 458,290 | $ 408,152 | 12.3% |
| Tax equivalent adjustment | 9,091 | 6,953 | 30.7% | 19,941 | 22,152 | -10.0% |
| 163,639 | 149,412 | 9.5% | 478,231 | 430,304 | 11.1% | |
| Interest expense | 94,313 | 79,756 | 18.3% | 271,818 | 220,201 | 23.4% |
| Net interest income | 69,326 | 69,656 | -0.5% | 206,413 | 210,103 | -1.8% |
| Provision for loan losses | 8,750 | 7,200 | 21.5% | 26,250 | 16,600 | 58.1% |
| Net interest income | ||||||
| after provision | 60,576 | 62,456 | -3.0% | 180,163 | 193,503 | -6.9% |
| Other operating income | 16,661 | 10,106 | 64.9% | 44,608 | 29,296 | 52.3% |
| Gain on sale of MSRs | 282 | 595 | -52.6% | 1,239 | 1,656 | -25.2% |
| Gain on sale of securities | 7 | 48 | -85.4% | (3,806) | 328 | -1260.4% |
| Other operating expenses | 44,143 | 42,026 | 5.0% | 131,341 | 128,409 | 2.3% |
| Income before income taxes | 33,383 | 31,179 | 7.1% | 90,863 | 96,374 | -5.7% |
| Provision for income taxes | 4,299 | 4,266 | 0.8% | 11,968 | 15,133 | -20.9% |
| Tax equivalent adjustment | 9,091 | 6,953 | 30.7% | 19,941 | 22,152 | -10.0% |
| NET INCOME | $ 19,993 | $ 19,960 | 0.2% | $ 58,954 | $ 59,089 | -0.2% |
| SELECTED RATIOS: | ||||||
| Per share data (1): | ||||||
| Earnings per common share | $ 0.45 | $ 0.44 | $ 1.31 | $ 1.31 | ||
| Average common shares | ||||||
| outstanding | 42,115,099 | 42,484,870 | 42,348,183 | 42,484,870 | ||
| Common shares outstanding | ||||||
| at end of period | 41,765,470 | 42,484,870 | 41,765,470 | 42,484,870 | ||
| Cash Dividend per Share: | ||||||
| Preferred Stock | $ 0.44 | $ 0.44 | $ 1.31 | $ 1.31 | ||
| Common Stock | $ 0.11 | $ 0.11 | $ 0.33 | $ 0.33 | ||
| (1) Per share data are based on the average number of shares outstanding | ||||||
| during the period giving retroactive effect to the stock dividend declared January 11, 2000. | ||||||
| Basic and diluted earnings per share are the same. | ||||||
| SANTANDER BANCORP | ||||
| CONSOLIDATED BALANCE SHEETS--SEPTEMBER 30, 2000 AND 1999 AND DECEMBER 31, 1999 | ||||
| (Dollars in thousands, except per share data) | ||||
| ASSETS | ||||
| 30-Sep-00 | 30-Sep-99 | 31-Dec-99 | % Variation | |
| (Unaudited) | (Unaudited) | (Audited) | 9/00 - 9/99 | |
| CASH AND CASH EQUIVALENTS: | ||||
| Cash and due from banks | $ 136,903 | $ 140,525 | $ 190,435 | -2.58% |
| Interest bearing deposits | 21,210 | 50,617 | 104,676 | -58.10% |
| Federal funds sold and securities purchased under agreements to resell | 118,000 | 15,000 | 20,000 | 686.67% |
| Total cash and cash equivalents | 276,113 | 206,142 | 315,111 | 33.94% |
| INTEREST BEARING DEPOSITS | - | 10,550 | 200 | -100.00% |
| Trading Securities | - | - | #DIV/0! | |
| INVESTMENT SECURITIES AVAILABLE FOR SALE, at market value | 1,023,525 | 1,284,894 | 1,249,582 | -20.34% |
| INVESTMENT SECURITIES HELD TO MATURITY, at cost | 1,680,006 | 1,827,990 | 1,778,939 | -8.10% |
| LOANS, net | 4,606,764 | 4,458,365 | 4,509,046 | 3.33% |
| ALLOWANCE FOR LOAN LOSSES | (51,938) | (55,086) | (56,200) | -5.71% |
| BANK PREMISES AND EQUIPMENT, net | 75,913 | 82,732 | 82,447 | -8.24% |
| ACCRUED INTEREST RECEIVABLE | 68,151 | 59,430 | 58,150 | 14.67% |
| OTHER ASSETS | 132,039 | 125,251 | 101,075 | 5.42% |
| $ 7,810,573 | $ 8,000,268 | $ 8,038,350 | -2.37% | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
| DEPOSITS: | ||||
| Demand | $ 840,715 | $ 860,498 | $ 841,719 | -2.30% |
| Savings | 1,239,782 | 1,321,310 | 1,281,869 | -6.17% |
| Time | 2,332,381 | 1,722,033 | 1,937,664 | 35.44% |
| Total deposits | 4,412,878 | 3,903,841 | 4,061,252 | 13.04% |
| FEDERAL FUNDS PURCHASED AND OTHER BORROWINGS | 475,000 | 567,000 | 576,000 | -16.23% |
| SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | 986,894 | 1,752,360 | 1,873,876 | -43.68% |
| COMMERCIAL PAPER ISSUED | 797,439 | 654,156 | 413,374 | 21.90% |
| SUBORDINATED CAPITAL NOTES | 20,000 | 54,025 | 30,000 | -62.98% |
| TERM NOTES | 434,328 | 389,698 | 414,001 | 11.45% |
| ACCRUED INTEREST PAYABLE | 31,168 | 35,647 | 44,721 | -12.56% |
| OTHER LIABILITIES | 65,448 | 104,734 | 78,510 | -37.51% |
| 7,223,155 | 7,461,461 | 7,491,734 | -3.19% | |
| STOCKHOLDERS' EQUITY: | ||||
| Preferred stock $25 par value; 10,000,000 shares authorized, 2,610,008 outstanding | 65,250 | 65,250 | 65,250 | 0.00% |
| Common stock, $2.50 par value; 200,000,000 shares authorized, 42,484,870 and | ||||
| 38,622,651 shares issued and outstanding in 2000 and 1999, respectively | 106,212 | 96,557 | 96,557 | 10.00% |
| Common stock dividend distributable, 3,862,219 shares | - | - | 9,656 | |
| Capital paid in excess of par value | 122,457 | 71,282 | 122,457 | 71.79% |
| Treasury stock-at cost, 719,400 shares | (8,831) | - | - | |
| Accumulated other comprehensive income (loss) | (18,263) | (18,651) | (26,356) | -2.08% |
| Retained earnings- | ||||
| Reserve fund | 101,971 | 93,924 | 101,971 | 8.57% |
| Redemption fund | - | 32,596 | 10,000 | -100.00% |
| Undivided profits | 218,622 | 197,849 | 167,081 | 10.50% |
| Total stockholders' equity | 587,418 | 538,807 | 546,616 | 9.02% |
| $ 7,810,573 | $ 8,000,268 | $ 8,038,350 | -2.37% | |
| SANTANDER BANCORP | ||||
| CONSOLIDATED BALANCE SHEETS--SEPTEMBER 30, 2000 AND 1999 AND DECEMBER 31, 1999 | ||||
| (Dollars in thousands, except per share data) | ||||
| ASSETS | ||||
| 30-Sep-00 | 30-Sep-99 | 31-Dec-99 | % Variation | |
| (Unaudited) | (Unaudited) | (Audited) | 9/00 - 9/99 | |
| CASH AND CASH EQUIVALENTS: | ||||
| Cash and due from banks | $ 136,903 | $ 140,525 | $ 190,435 | -2.58% |
| Interest bearing deposits | 21,210 | 50,617 | 104,676 | -58.10% |
| Federal funds sold and securities purchased under agreements to resell | 118,000 | 15,000 | 20,000 | 686.67% |
| Total cash and cash equivalents | 276,113 | 206,142 | 315,111 | 33.94% |
| INTEREST BEARING DEPOSITS | - | 10,550 | 200 | -100.00% |
| Trading Securities | - | - | #DIV/0! | |
| INVESTMENT SECURITIES AVAILABLE FOR SALE, at market value | 1,023,525 | 1,284,894 | 1,249,582 | -20.34% |
| INVESTMENT SECURITIES HELD TO MATURITY, at cost | 1,680,006 | 1,827,990 | 1,778,939 | -8.10% |
| LOANS, net | 4,606,764 | 4,458,365 | 4,509,046 | 3.33% |
| ALLOWANCE FOR LOAN LOSSES | (51,938) | (55,086) | (56,200) | -5.71% |
| BANK PREMISES AND EQUIPMENT, net | 75,913 | 82,732 | 82,447 | -8.24% |
| ACCRUED INTEREST RECEIVABLE | 68,151 | 59,430 | 58,150 | 14.67% |
| OTHER ASSETS | 132,039 | 125,251 | 101,075 | 5.42% |
| $ 7,810,573 | $ 8,000,268 | $ 8,038,350 | -2.37% | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
| DEPOSITS: | ||||
| Demand | $ 840,715 | $ 860,498 | $ 841,719 | -2.30% |
| Savings | 1,239,782 | 1,321,310 | 1,281,869 | -6.17% |
| Time | 2,332,381 | 1,722,033 | 1,937,664 | 35.44% |
| Total deposits | 4,412,878 | 3,903,841 | 4,061,252 | 13.04% |
| FEDERAL FUNDS PURCHASED AND OTHER BORROWINGS | 475,000 | 567,000 | 576,000 | -16.23% |
| SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | 986,894 | 1,752,360 | 1,873,876 | -43.68% |
| COMMERCIAL PAPER ISSUED | 797,439 | 654,156 | 413,374 | 21.90% |
| SUBORDINATED CAPITAL NOTES | 20,000 | 54,025 | 30,000 | -62.98% |
| TERM NOTES | 434,328 | 389,698 | 414,001 | 11.45% |
| ACCRUED INTEREST PAYABLE | 31,168 | 35,647 | 44,721 | -12.56% |
| OTHER LIABILITIES | 65,448 | 104,734 | 78,510 | -37.51% |
| 7,223,155 | 7,461,461 | 7,491,734 | -3.19% | |
| STOCKHOLDERS' EQUITY: | ||||
| Preferred stock $25 par value; 10,000,000 shares authorized, 2,610,008 outstanding | 65,250 | 65,250 | 65,250 | 0.00% |
| Common stock, $2.50 par value; 200,000,000 shares authorized, 42,484,870 and | ||||
| 38,622,651 shares issued and outstanding in 2000 and 1999, respectively | 106,212 | 96,557 | 96,557 | 10.00% |
| Common stock dividend distributable, 3,862,219 shares | - | - | 9,656 | |
| Capital paid in excess of par value | 122,457 | 71,282 | 122,457 | 71.79% |
| Treasury stock-at cost, 719,400 shares | (8,831) | - | - | |
| Accumulated other comprehensive income (loss) | (18,263) | (18,651) | (26,356) | -2.08% |
| Retained earnings- | ||||
| Reserve fund | 101,971 | 93,924 | 101,971 | 8.57% |
| Redemption fund | - | 32,596 | 10,000 | -100.00% |
| Undivided profits | 218,622 | 197,849 | 167,081 | 10.50% |
| Total stockholders' equity | 587,418 | 538,807 | 546,616 | 9.02% |
| $ 7,810,573 | $ 8,000,268 | $ 8,038,350 | -2.37% | |
| SANTANDER BANCORP | ||||
| CONSOLIDATED STATEMENTS OF INCOME FOR THE NINE MONTH PERIODS | ||||
| AND THE QUARTERS ENDED SEPTEMBER 30, 2000 AND 1999 | ||||
| (Dollars in thousands, except per share data) | ||||
| (UNAUDITED) | ||||
| For the nine months ended | For the quarter ended | |||
| September 30, | September 30, | September 30, | September 30, | |
| 2000 | 1999 | 2000 | 1999 | |
| INTEREST INCOME: | ||||
| Loans | $ 324,162 | $ 268,498 | $ 111,028 | $ 94,931 |
| Investment securities | 130,286 | 136,137 | 42,316 | 46,251 |
| Interest bearing deposits | 1,493 | 2,750 | 235 | 942 |
| Federal funds sold and securities purchased under | ||||
| agreements to resell | 2,349 | 767 | 969 | 335 |
| Total interest income | 458,290 | 408,152 | 154,548 | 142,459 |
| INTEREST EXPENSE: | ||||
| Deposits | 124,782 | 91,214 | 45,741 | 33,369 |
| Securities sold under agreements to repurchase | ||||
| and other borrowings | 146,091 | 126,593 | 48,238 | 45,635 |
| Subordinated capital notes | 945 | 2,394 | 334 | 752 |
| Total interest expense | 271,818 | 220,201 | 94,313 | 79,756 |
| Net interest income | 186,472 | 187,951 | 60,235 | 62,703 |
| PROVISION FOR LOAN LOSSES | 26,250 | 16,600 | 8,750 | 7,200 |
| Net interest income after provision for loan losses | 160,222 | 171,351 | 51,485 | 55,503 |
| OTHER INCOME: | ||||
| Service charges, fees and other | 29,332 | 24,891 | 9,866 | 8,531 |
| (Loss) gain on sale of securities | (3,806) | 328 | 7 | 48 |
| Gain on sale of mortgage servicing rights | 1,239 | 1,656 | 282 | 595 |
| Other | 15,276 | 4,405 | 6,795 | 1,575 |
| Total other income | 42,041 | 31,280 | 16,950 | 10,749 |
| OTHER OPERATING EXPENSES: | ||||
| Salaries and employee benefits | 53,553 | 54,814 | 17,950 | 17,816 |
| Occupancy costs | 11,479 | 11,032 | 3,887 | 3,499 |
| Equipment expenses | 9,935 | 9,677 | 3,216 | 3,156 |
| Other operating expenses | 56,374 | 52,886 | 19,090 | 17,555 |
| Total other operating expenses | 131,341 | 128,409 | 44,143 | 42,026 |
| Income before provision for income tax | 70,922 | 74,222 | 24,292 | 24,226 |
| PROVISION FOR INCOME TAX | 11,968 | 15,133 | 4,299 | 4,266 |
| NET INCOME | $ 58,954 | $ 59,089 | $ 19,993 | $ 19,960 |
| INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ 55,528 | $ 55,663 | $ 18,851 | $ 18,818 |
| EARNINGS PER COMMON SHARE | $ 1.31 | $ 1.31 | $ 0.45 | $ 0.44 |
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