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QUARTERLY REPORT PURSUANT TO SECTION 13 OR
15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1999
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR
15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
|
For
the transition period from__________________ to__________________
|
|
|
Missouri
(State of Incorporation)
|
43-0889454
(IRS Employer Identification No.)
|
Schedule 1: | Consolidated Balance Sheets | ||||
Schedule 2: | Consolidated Statements of Income | ||||
Schedule 3: | Statements of Changes in Stockholders Equity | ||||
Schedule 4: | Consolidated Statements of Cash Flows | ||||
Schedule 5: | Notes to Consolidated Financial Statements | ||||
Schedule 6: | Management
s Discussion and Analysis of Financial Condition and
Results of Operations, including Quantitative and Qualitative Disclosures about Market Risk |
(27) Financial Data Schedule
|
C
OMMERCE
BANCSHARES
, INC
.
|
/S
/ J. DANIEL
STINNETT
|
By
|
J. Daniel Stinnett
|
Vice President & Secretary
|
/S
/ JEFFERY
D. ABERDEEN
|
By
|
Jeffery D. Aberdeen
|
Controller (Chief Accounting Officer)
|
September 30
1999 |
December 31
1998 |
|||||
---|---|---|---|---|---|---|
(Unaudited) | ||||||
(In thousands) | ||||||
ASSETS | ||||||
Loans, net of unearned income | $ 7,422,270 | $ 7,046,852 | ||||
Allowance for loan losses | (121,239 | ) | (117,092 | ) | ||
Net loans | 7,301,031 | 6,929,760 | ||||
Investment securities: | ||||||
Available for sale | 2,592,299 | 2,988,230 | ||||
Trading account | 14,866 | 14,210 | ||||
Other non-marketable | 30,958 | 29,276 | ||||
Total investment securities | 2,638,123 | 3,031,716 | ||||
Federal funds sold and securities purchased under agreements to resell | 167,836 | 261,535 | ||||
Cash and due from banks | 604,315 | 738,672 | ||||
Land, buildings and equipment, net | 230,750 | 222,129 | ||||
Goodwill and core deposit premium, net | 70,614 | 77,009 | ||||
Customers acceptance liability | 2,405 | 808 | ||||
Other assets | 101,666 | 140,394 | ||||
Total assets | $11,116,740 | $11,402,023 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY | ||||||
Deposits: | ||||||
Non-interest bearing demand | $ 1,570,245 | $ 1,657,037 | ||||
Savings and interest bearing demand | 5,255,619 | 5,295,897 | ||||
Time open and C.D.s of less than $100,000 | 2,135,704 | 2,269,835 | ||||
Time open and C.D.s of $100,000 and over | 283,030 | 307,428 | ||||
Total deposits | 9,244,598 | 9,530,197 | ||||
Federal funds purchased and securities sold under agreements to repurchase | 712,778 | 617,830 | ||||
Long-term debt and other borrowings | 25,975 | 27,130 | ||||
Accrued interest, taxes and other liabilities | 55,219 | 145,273 | ||||
Acceptances outstanding | 2,405 | 808 | ||||
Total liabilities | 10,040,975 | 10,321,238 | ||||
Stockholders equity: | ||||||
Preferred stock, $1 par value. Authorized and unissued 2,000,000 shares | | | ||||
Common stock,
$5 par value. Authorized 100,000,000 shares; issued
61,352,684 shares |
306,763 | 306,763 | ||||
Capital surplus | 101,067 | 106,159 | ||||
Retained earnings | 718,972 | 624,256 | ||||
Treasury
stock of 1,493,103 shares in 1999 and 193,208 shares in 1998,
at cost |
(61,211 | ) | (8,561 | ) | ||
Unearned employee benefits | (896 | ) | (904 | ) | ||
Accumulated other comprehensive income | 11,070 | 53,072 | ||||
Total stockholders equity | 1,075,765 | 1,080,785 | ||||
Total liabilities and stockholders equity | $11,116,740 | $11,402,023 | ||||
For the Three Months
Ended September 30 |
For the Nine Months
Ended September 30 |
|||||||
---|---|---|---|---|---|---|---|---|
1999
|
1998
|
1999
|
1998
|
|||||
(Unaudited) | ||||||||
(In thousands, except per share data) | ||||||||
INTEREST INCOME | ||||||||
Interest and fees on loans | $146,684 | $140,403 | $423,723 | $412,463 | ||||
Interest on investment securities | 40,445 | 38,529 | 122,538 | 117,270 | ||||
Interest on
federal funds sold and securities purchased under
agreements to resell |
2,283 | 4,536 | 11,804 | 11,439 | ||||
Total interest income | 189,412 | 183,468 | 558,065 | 541,172 | ||||
INTEREST EXPENSE | ||||||||
Interest on deposits: | ||||||||
Savings and interest bearing demand | 32,932 | 36,972 | 98,019 | 107,468 | ||||
Time open and C.D.s of less than $100,000 | 26,639 | 29,782 | 83,244 | 88,268 | ||||
Time open and C.D.s of $100,000 and over | 3,468 | 3,442 | 10,921 | 9,904 | ||||
Interest on
federal funds purchased and securities sold under
agreements to repurchase |
7,199 | 6,591 | 19,029 | 19,364 | ||||
Interest on long-term debt and other borrowings | 182 | 76 | 624 | 293 | ||||
Total interest expense | 70,420 | 76,863 | 211,837 | 225,297 | ||||
Net interest income | 118,992 | 106,605 | 346,228 | 315,875 | ||||
Provision for loan losses | 8,293 | 7,777 | 25,584 | 29,903 | ||||
Net interest income after provision for loan losses | 110,699 | 98,828 | 320,644 | 285,972 | ||||
NON-INTEREST INCOME | ||||||||
Trust fees | 13,727 | 12,913 | 41,851 | 37,639 | ||||
Deposit account charges and other fees | 17,602 | 16,078 | 50,952 | 46,185 | ||||
Credit card transaction fees | 10,999 | 9,272 | 30,906 | 25,268 | ||||
Trading account profits and commissions | 2,518 | 1,976 | 7,923 | 6,084 | ||||
Net gains on securities transactions | | 87 | 993 | 6,175 | ||||
Other | 11,887 | 10,344 | 43,000 | 35,019 | ||||
Total non-interest income | 56,733 | 50,670 | 175,625 | 156,370 | ||||
NON-INTEREST EXPENSE | ||||||||
Salaries and employee benefits | 53,183 | 48,644 | 160,577 | 147,029 | ||||
Net occupancy | 7,240 | 6,336 | 20,726 | 17,995 | ||||
Equipment | 4,394 | 4,567 | 15,049 | 13,232 | ||||
Supplies and communication | 8,372 | 7,692 | 24,918 | 21,891 | ||||
Data processing | 8,963 | 7,157 | 26,194 | 21,211 | ||||
Marketing | 3,445 | 3,052 | 9,611 | 9,290 | ||||
Goodwill and core deposit | 2,129 | 2,296 | 6,395 | 6,887 | ||||
Other | 16,940 | 12,201 | 48,504 | 38,165 | ||||
Total non-interest expense | 104,666 | 91,945 | 311,974 | 275,700 | ||||
Income before income taxes | 62,766 | 57,553 | 184,295 | 166,642 | ||||
Less income taxes | 21,362 | 19,839 | 62,435 | 56,951 | ||||
Net income | $ 41,404 | $ 37,714 | $121,860 | $109,691 | ||||
Net income per sharebasic | $ .69 | $ .62 | $ 2.01 | $ 1.80 | ||||
Net income per sharediluted | $ .68 | $ .61 | $ 1.98 | $ 1.77 | ||||
Cash dividends per common share | $ .150 | $ .138 | $ .450 | $ .414 | ||||
Number
of Shares Issued |
Common
Stock |
Capital
Surplus |
Retained
Earnings |
Treasury
Stock |
Unearned
Employee Benefits |
Accumulated
Other Comprehensive Income |
Total |
|||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
(Unaudited) | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Balance January 1, 1999 | 61,352,684 | $306,763 | $106,159 | $624,256 | $ (8,561 | ) | $(904 | ) | $ 53,072 | $1,080,785 | ||||||||||||
Net income | 121,860 | 121,860 | ||||||||||||||||||||
Change in
unrealized gain (loss) on
available for sale securities |
(42,002 | ) | (42,002 | ) | ||||||||||||||||||
Total comprehensive income | 79,858 | |||||||||||||||||||||
Purchase of treasury stock | (62,903 | ) | (62,903) | |||||||||||||||||||
Sales under option and benefit plans | (5,073 | ) | 9,964 | 4,891 | ||||||||||||||||||
Issuance of
stock under restricted
stock award plan |
(19 | ) | 289 | (270 | ) | | ||||||||||||||||
Restricted stock award amortization | 278 | 278 | ||||||||||||||||||||
Cash dividends paid ($.45 per share) | (27,144 | ) | (27,144 | ) | ||||||||||||||||||
Balance September 30, 1999 | 61,352,684 | $306,763 | $101,067 | $718,972 | $(61,211 | ) | $(896 | ) | $ 11,070 | $1,075,765 | ||||||||||||
Balance January 1, 1998 | 58,285,813 | $291,429 | $ 48,704 | $626,387 | $(14,252 | ) | $(601 | ) | $ 29,117 | $ 980,784 | ||||||||||||
Net income | 109,691 | 109,691 | ||||||||||||||||||||
Change in
unrealized gain (loss) on
available for sale securities |
17,925 | 17,925 | ||||||||||||||||||||
Total comprehensive income | 127,616 | |||||||||||||||||||||
Pooling acquisition | 360,000 | 1,800 | (11,346 | ) | 7,639 | 16,101 | 139 | 14,333 | ||||||||||||||
Purchase of treasury stock | (63,692 | ) | (63,692 | ) | ||||||||||||||||||
Sales under option and benefit plans | (4,414 | ) | 9,079 | 4,665 | ||||||||||||||||||
Issuance of
stock under restricted
stock award plan |
11 | 499 | (510 | ) | | |||||||||||||||||
Restricted stock award amortization | 200 | 200 | ||||||||||||||||||||
Cash
dividends paid ($.414 per
share) |
(25,271 | ) | (25,271 | ) | ||||||||||||||||||
Balance September 30, 1998 | 58,645,813 | $293,229 | $ 32,955 | $718,446 | $(52,265 | ) | $(911 | ) | $ 47,181 | $1,038,635 | ||||||||||||
For the Nine Months
Ended September 30 |
||||||
---|---|---|---|---|---|---|
1999 |
1998 |
|||||
(Unaudited)
(In thousands) |
||||||
OPERATING ACTIVITIES: | ||||||
Net income | $ 121,860 | $109,691 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Provision for loan losses | 25,584 | 29,903 | ||||
Provision for depreciation and amortization | 26,127 | 24,201 | ||||
Accretion of investment security discounts | (2,376 | ) | (3,186 | ) | ||
Amortization of investment security premiums | 7,949 | 5,967 | ||||
Net gains on sales of investment securities (A) | (993 | ) | (6,175 | ) | ||
Net increase in trading account securities | (9,702 | ) | (11,833 | ) | ||
Decrease in interest receivable | 1,228 | 3,022 | ||||
Increase (decrease) in interest payable | (7,278 | ) | 1,439 | |||
Other changes, net | (18,925 | ) | (10,772 | ) | ||
Net cash provided by operating activities | 143,474 | 142,257 | ||||
INVESTING ACTIVITIES: | ||||||
Net cash received in acquisition | | 4,044 | ||||
Proceeds from sales of investment securities (A) | 113,933 | 269,520 | ||||
Proceeds from maturities of investment securities (A) | 1,148,760 | 783,400 | ||||
Purchases of investment securities (A) | (940,606 | ) | (895,818 | ) | ||
Net
(increase) decrease in federal funds sold and securities
purchased under
agreements to resell |
93,699 | (153,649 | ) | |||
Net increase in loans | (389,562 | ) | (504,108 | ) | ||
Purchases of premises and equipment | (31,216 | ) | (22,208 | ) | ||
Sales of premises and equipment | 5,104 | 5,163 | ||||
Net cash provided (used) by investing activities | 112 | (513,656 | ) | |||
FINANCING ACTIVITIES: | ||||||
Net decrease
in non-interest bearing demand, savings, and interest bearing
demand
deposits |
(127,070 | ) | (40,427 | ) | ||
Net increase (decrease) in time open and C.D.s | (158,649 | ) | 21,293 | |||
Net increase
in federal funds purchased and securities sold under
agreements to
repurchase |
94,948 | 86,185 | ||||
Repayment of long-term debt | (989 | ) | (3,440 | ) | ||
Additional borrowings | | 15,245 | ||||
Purchases of treasury stock | (61,379 | ) | (62,554 | ) | ||
Exercise of stock options by employees | 2,340 | 2,266 | ||||
Cash dividends paid on common stock | (27,144 | ) | (25,271 | ) | ||
Net cash used by financing activities | (277,943 | ) | (6,703 | ) | ||
Decrease in cash and cash equivalents | (134,357 | ) | (378,102 | ) | ||
Cash and cash equivalents at beginning of year | 738,672 | 978,239 | ||||
Cash and cash equivalents at September 30 | $ 604,315 | $600,137 | ||||
For the Three Months
Ended September 30 |
For the Nine Months
Ended September 30 |
|||||||
---|---|---|---|---|---|---|---|---|
1999
|
1998
|
1999
|
1998
|
|||||
(In thousands) | ||||||||
Balance, beginning of period | $120,225 | $112,990 | $117,092 | $105,918 | ||||
Additions: | ||||||||
Provision for loan losses | 8,293 | 7,777 | 25,584 | 29,903 | ||||
Allowance for loan losses of acquired banks | | | | 964 | ||||
Total additions | 8,293 | 7,777 | 25,584 | 30,867 | ||||
Deductions: | ||||||||
Loan losses | 9,998 | 10,594 | 29,700 | 31,550 | ||||
Less recoveries on loans | 2,719 | 2,790 | 8,263 | 7,728 | ||||
Net loan losses | 7,279 | 7,804 | 21,437 | 23,822 | ||||
Balance, September 30 | $121,239 | $112,963 | $121,239 | $112,963 | ||||
September
30
1999 |
December
31
1998 |
|||
---|---|---|---|---|
(In thousands) | ||||
Available for sale: | ||||
U.S. government and federal agency obligations | $1,182,603 | $1,448,547 | ||
State and municipal obligations | 91,695 | 101,785 | ||
CMOs and asset-backed securities | 1,177,550 | 974,377 | ||
Other debt securities | 92,626 | 419,413 | ||
Equity securities | 47,825 | 44,108 | ||
Trading account securities | 14,866 | 14,210 | ||
Other non-marketable securities | 30,958 | 29,276 | ||
Total investment securities | $2,638,123 | $3,031,716 | ||
For the Three
Months Ended September 30 |
For the Nine
Months Ended September 30 |
|||||||
---|---|---|---|---|---|---|---|---|
1999
|
1998
|
1999
|
1998
|
|||||
(In thousands) | ||||||||
Weighted average common shares outstanding | 60,106 | 60,758 | 60,587 | 61,054 | ||||
Stock options | 757 | 963 | 816 | 1,057 | ||||
60,863 | 61,721 | 61,403 | 62,111 | |||||
For the Three Months
Ended September 30 |
For the Nine Months
Ended September 30 |
|||||||||
---|---|---|---|---|---|---|---|---|---|---|
1999 |
1998
|
1999 |
1998
|
|||||||
(In thousands) | ||||||||||
Unrealized holding gains (losses) | $(11,494 | ) | $24,090 | $(66,751 | ) | $38,615 | ||||
Less:
reclassification adjustment for gains included in net
income |
| 388 | 993 | 5,496 | ||||||
Net unrealized gains (losses) on securities | (11,494 | ) | 23,702 | (67,744 | ) | 33,119 | ||||
Income tax expense (benefit) | 1,691 | 11,616 | (25,742 | ) | 15,194 | |||||
Other comprehensive income (loss) | $(13,185 | ) | $12,086 | $(42,002 | ) | $17,925 | ||||
Consumer
|
Commercial |
Money
Management |
Segment
Totals |
Other/
Elimination |
Consolidated
Totals |
||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
(In thousands) | |||||||||||||||
Nine Months Ended September 30, 1999 | |||||||||||||||
Net interest income after loan loss expense | $ 23,832 | $187,500 | $(13,746 | ) | $197,586 | $ 123,058 | $320,644 | ||||||||
Cost of funds allocation | 148,531 | (73,002 | ) | 18,108 | 93,637 | (93,637 | ) | | |||||||
Non-interest income | 94,389 | 20,861 | 53,712 | 168,962 | 6,663 | 175,625 | |||||||||
Total net revenue | 266,752 | 135,359 | 58,074 | 460,185 | 36,084 | 496,269 | |||||||||
Non-interest expense | 196,954 | 60,047 | 38,280 | 295,281 | 16,693 | 311,974 | |||||||||
Income before income taxes | $ 69,798 | $ 75,312 | $ 19,794 | $164,904 | $ 19,391 | $184,295 | |||||||||
Nine Months Ended September 30, 1998 | |||||||||||||||
Net interest income after loan loss expense | $ 1,235 | $183,002 | $(13,950 | ) | $170,287 | $ 115,685 | $285,972 | ||||||||
Cost of funds allocation | 163,973 | (75,568 | ) | 17,618 | 106,023 | (106,023 | ) | | |||||||
Non-interest income | 80,594 | 18,869 | 48,115 | 147,578 | 8,792 | 156,370 | |||||||||
Total net revenue | 245,802 | 126,303 | 51,783 | 423,888 | 18,454 | 442,342 | |||||||||
Non-interest expense | 167,927 | 54,970 | 33,924 | 256,821 | 18,879 | 275,700 | |||||||||
Income before income taxes | $ 77,875 | $ 71,333 | $ 17,859 | $167,067 | $ (425 | ) | $166,642 | ||||||||
Three Months Ended September 30, 1999 | |||||||||||||||
Net interest income after loan loss expense | $ 11,072 | $ 65,599 | $ (4,688 | ) | $ 71,983 | $ 38,716 | $110,699 | ||||||||
Cost of funds allocation | 48,474 | (26,258 | ) | 6,288 | 28,504 | (28,504 | ) | | |||||||
Non-interest income | 31,972 | 7,065 | 17,271 | 56,308 | 425 | 56,733 | |||||||||
Total net revenue | 91,518 | 46,406 | 18,871 | 156,795 | 10,637 | 167,432 | |||||||||
Non-interest expense | 66,673 | 20,786 | 12,761 | 100,220 | 4,446 | 104,666 | |||||||||
Income before income taxes | $ 24,845 | $ 25,620 | $ 6,110 | $ 56,575 | $ 6,191 | $ 62,766 | |||||||||
Three Months Ended September 30, 1998 | |||||||||||||||
Net interest income after loan loss expense | $ 540 | $ 62,416 | $ (5,359 | ) | $ 57,597 | $ 41,231 | $ 98,828 | ||||||||
Cost of funds allocation | 52,880 | (25,535 | ) | 6,731 | 34,076 | (34,076 | ) | | |||||||
Non-interest income | 27,069 | 6,325 | 16,409 | 49,803 | 867 | 50,670 | |||||||||
Total net revenue | 80,489 | 43,206 | 17,781 | 141,476 | 8,022 | 149,498 | |||||||||
Non-interest expense | 57,680 | 18,489 | 10,906 | 87,075 | 4,870 | 91,945 | |||||||||
Income before income taxes | $ 22,809 | $ 24,717 | $ 6,875 | $ 54,401 | $ 3,152 | $ 57,553 | |||||||||
Three Months
Ended September 30 |
Nine Months
Ended September 30 |
|||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
1999 |
1998 |
1999 |
1998 |
|||||||||
Per Share Data | ||||||||||||
Net income basic | $ .69 | $ .62 | $2.01 | $1.80 | ||||||||
Net income diluted | .68 | .61 | 1.98 | 1.77 | ||||||||
Cash dividends | .150 | .138 | .450 | .414 | ||||||||
Book value | 17.97 | 17.18 | ||||||||||
Market price | 35.38 | 37.50 | ||||||||||
Selected Ratios | ||||||||||||
(Based on average balance sheets) | ||||||||||||
Loans to deposits | 79.45 | % | 76.09 | % | 76.79 | % | 75.18 | % | ||||
Non-interest bearing deposits to total deposits | 14.70 | 15.07 | 14.70 | 19.54 | ||||||||
Equity to loans | 14.69 | 15.40 | 15.14 | 15.66 | ||||||||
Equity to deposits | 11.67 | 11.72 | 11.62 | 11.77 | ||||||||
Equity to total assets | 9.73 | 9.81 | 9.72 | 9.87 | ||||||||
Return on total assets | 1.49 | 1.43 | 1.47 | 1.42 | ||||||||
Return on realized stockholders equity | 15.53 | 15.14 | 15.58 | 14.95 | ||||||||
Return on total stockholders equity | 15.27 | 14.62 | 15.11 | 14.42 | ||||||||
(Based on end-of-period data) | ||||||||||||
Efficiency ratio | 58.35 | 57.03 | 58.67 | 57.68 | ||||||||
Tier I capital ratio | 11.57 | 12.11 | ||||||||||
Total capital ratio | 12.88 | 13.38 | ||||||||||
Leverage ratio | 9.08 | 8.89 |
Three Months Ended
September 30, 1999 vs. 1998 |
Nine Months Ended
September 30, 1999 vs. 1998 |
|||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Change due to |
Total |
Change due to |
Total |
|||||||||||||||
Average
Volume |
Average
Rate |
Average
Volume |
Average
Rate |
|||||||||||||||
(In thousands) | ||||||||||||||||||
Interest
income, fully taxable equivalent
basis: |
||||||||||||||||||
Loans | $13,867 | $(7,584 | ) | $ 6,283 | $37,824 | $(26,520 | ) | $11,304 | ||||||||||
Investment securities: | ||||||||||||||||||
U.S.
government and federal agency
securities |
(2,412 | ) | (602 | ) | (3,014 | ) | (5,736 | ) | (2,064 | ) | (7,800 | ) | ||||||
State and municipal obligations | (187 | ) | (24 | ) | (211 | ) | (287 | ) | (24 | ) | (311 | ) | ||||||
CMOs and asset-backed securities | 5,807 | (285 | ) | 5,522 | 14,370 | (1,167 | ) | 13,203 | ||||||||||
Other securities | (426 | ) | (28 | ) | (454 | ) | 466 | (362 | ) | 104 | ||||||||
Federal funds
sold and securities purchased
under agreements to resell |
(2,162 | ) | (91 | ) | (2,253 | ) | 1,925 | (1,560 | ) | 365 | ||||||||
Total interest income | 14,487 | (8,614 | ) | 5,873 | 48,562 | (31,697 | ) | 16,865 | ||||||||||
Interest expense: | ||||||||||||||||||
Deposits: | ||||||||||||||||||
Savings | 132 | (705 | ) | (573 | ) | 449 | (1,677 | ) | (1,228 | ) | ||||||||
Interest bearing demand | 3,276 | (6,743 | ) | (3,467 | ) | 17,258 | (25,479 | ) | (8,221 | ) | ||||||||
Time open
& C.D.s of less than
$100,000 |
(629 | ) | (2,514 | ) | (3,143 | ) | 513 | (5,537 | ) | (5,024 | ) | |||||||
Time open
& C.D.s of $100,000 and
over |
498 | (472 | ) | 26 | 2,100 | (1,083 | ) | 1,017 | ||||||||||
Federal funds
purchased and securities sold
under agreements to repurchase |
1,198 | (590 | ) | 608 | 2,703 | (3,038 | ) | (335 | ) | |||||||||
Long-term debt and other borrowings | 240 | (98 | ) | 142 | 623 | (288 | ) | 335 | ||||||||||
Total interest expense | 4,715 | (11,122 | ) | (6,407 | ) | 23,646 | (37,102 | ) | (13,456 | ) | ||||||||
Net
interest income, fully taxable equivalent
basis |
$ 9,772 | $ 2,508 | $12,280 | $24,916 | $ 5,405 | $30,321 | ||||||||||||
September 30
1999 |
December 31
1998 |
|||||
---|---|---|---|---|---|---|
(In thousands) | ||||||
Non-accrual loans | $11,867 | $17,831 | ||||
Past due 90 days and still accruing interest | 27,270 | 24,529 | ||||
Total impaired loans | 39,137 | 42,360 | ||||
Foreclosed real estate | 1,459 | 2,521 | ||||
Total non-performing assets | $40,596 | $44,881 | ||||
Non-performing assets to total loans | .55 | % | .64 | % | ||
Non-performing assets to total assets | .37 | % | .39 | % |
Three Months Ended |
Nine Months Ended
September 30 |
||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
June 30, 1999 |
Sept. 30, 1999 |
Sept. 30, 1998 |
1999 |
1998 |
|||||||||||
(Dollars in thousands) | |||||||||||||||
Provision for loan losses | $8,741 | $8,293 | $7,777 | $25,584 | $29,903 | ||||||||||
Net charge-offs | 8,073 | 7,279 | 7,804 | 21,437 | 23,822 | ||||||||||
Net
annualized charge-offs as a percentage of
average loans |
.46 | % | .39 | % | .47 | % | .40 | % | .49 | % |
Three Months Ended September 30 |
Nine Months Ended September 30 |
|||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
1999 |
1998 |
%
Change |
1999 |
1998 |
%
Change |
|||||||||||||
(Dollars in thousands) | ||||||||||||||||||
Trust fees | $13,727 | $12,913 | 6.3 | % | $ 41,851 | $ 37,639 | 11.2 | % | ||||||||||
Deposit account charges and other fees | 17,602 | 16,078 | 9.5 | 50,952 | 46,185 | 10.3 | ||||||||||||
Credit card transaction fees | 10,999 | 9,272 | 18.6 | 30,906 | 25,268 | 22.3 | ||||||||||||
Trading account profits and commissions | 2,518 | 1,976 | 27.4 | 7,923 | 6,084 | 30.2 | ||||||||||||
Net gains on securities transactions | | 87 | (100.0 | ) | 993 | 6,175 | (83.9 | ) | ||||||||||
Other | 11,887 | 10,344 | 14.9 | 43,000 | 35,019 | 22.8 | ||||||||||||
Total non-interest income | $56,733 | $50,670 | 12.0 | $175,625 | $156,370 | 12.3 | ||||||||||||
As a % of
operating income (net interest
income plus non-interest income) |
32.3 | % | 32.2 | % | 33.7 | % | 33.1 | % | ||||||||||
Three Months Ended September 30 |
Nine Months Ended September 30 |
|||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
1999
|
1998
|
%
Change |
1999
|
1998
|
%
Change |
|||||||||
(Dollars in thousands) | ||||||||||||||
Salaries and employee benefits | $ 53,183 | $48,644 | 9.3 | % | $160,577 | $147,029 | 9.2 | % | ||||||
Net occupancy | 7,240 | 6,336 | 14.3 | 20,726 | 17,995 | 15.2 | ||||||||
Equipment | 4,394 | 4,567 | (3.8 | ) | 15,049 | 13,232 | 13.7 | |||||||
Supplies and communication | 8,372 | 7,692 | 8.8 | 24,918 | 21,891 | 13.8 | ||||||||
Data processing | 8,963 | 7,157 | 25.2 | 26,194 | 21,211 | 23.5 | ||||||||
Marketing | 3,445 | 3,052 | 12.9 | 9,611 | 9,290 | 3.5 | ||||||||
Goodwill and core deposit | 2,129 | 2,296 | (7.3 | ) | 6,395 | 6,887 | (7.1 | ) | ||||||
Other | 16,940 | 12,201 | 38.8 | 48,504 | 38,165 | 27.1 | ||||||||
Total non-interest expense | $104,666 | $91,945 | 13.8 | $311,974 | $275,700 | 13.2 | ||||||||
Full-time equivalent employees | 5,301 | 5,247 | 1.0 | 5,313 | 5,184 | 2.5 | ||||||||
Consumer
|
Commercial
|
Money Management
|
Introduction
|
State of Readiness
|
*This statement is made pursuant to the Year 2000
Information and Readiness Disclosure Act. This statement
originated from the Company and concerns (1) assessments,
projections, or estimates of year 2000 processing
capabilities; (2) plans, objectives, or timetables for
implementing or verifying year 2000 processing capabilities;
(3) test plans, dates, or results; and/or (4) reviews and
comments concerning year 2000 processing capabilities as
defined by the Act.
|
Costs to Address Year 2000 Issues
|
Liquidity Issues
|
Year 2000 Contingency Plans
|
Risks of Companys Year 2000 Issues
|
September 30
1999 |
December 31
1998 |
Min. Ratios for Well-
Capitalized Banks |
|||||||
---|---|---|---|---|---|---|---|---|---|
(Dollars in thousands) | |||||||||
Risk-Adjusted Assets | $8,600,776 | $8,426,289 | |||||||
Tier I Capital | 995,421 | 952,488 | |||||||
Total Capital | 1,107,594 | 1,060,692 | |||||||
Tier I Capital Ratio | 11.57 | % | 11.30 | % | 6.00 | % | |||
Total Capital Ratio | 12.88 | 12.59 | 10.00 | ||||||
Leverage Ratio | 9.08 | 8.80 | 5.00 |
Scenario |
$
in
millions |
%
of Net
Int. Income |
|||
---|---|---|---|---|---|
100 basis points rising | $2.5 | 1% | |||
100 basis points falling | (1.7 | ) | |
Nine Months 1999 |
Nine Months 1998 |
|||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Average
Balance |
Interest
Income/ Expense |
Avg. Rates
Earned/ Paid |
Average
Balance |
Interest
Income/ Expense |
Avg. Rates
Earned/ Paid |
|||||||||||
(Unaudited) | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||
ASSETS: | ||||||||||||||||
Loans: | ||||||||||||||||
Business (A) | $ 2,391,342 | $130,019 | 7.27 | % | $ 2,181,961 | $128,000 | 7.84 | % | ||||||||
Construction and development | 352,174 | 20,443 | 7.76 | 241,561 | 15,079 | 8.35 | ||||||||||
Real estatebusiness | 1,045,227 | 62,334 | 7.97 | 946,610 | 59,441 | 8.40 | ||||||||||
Real estatepersonal | 1,330,874 | 72,424 | 7.28 | 1,238,250 | 70,243 | 7.58 | ||||||||||
Personal banking | 1,504,364 | 90,655 | 8.06 | 1,372,536 | 88,437 | 8.61 | ||||||||||
Credit card | 500,646 | 48,723 | 13.01 | 512,815 | 52,094 | 13.58 | ||||||||||
Total loans | 7,124,627 | 424,598 | 7.97 | 6,493,733 | 413,294 | 8.51 | ||||||||||
Investment securities: | ||||||||||||||||
U.S. government & federal agency | 1,297,070 | 58,124 | 5.99 | 1,420,763 | 65,924 | 6.20 | ||||||||||
State & municipal obligations (A) | 93,284 | 5,543 | 7.95 | 98,079 | 5,854 | 7.98 | ||||||||||
CMOs and asset-backed securities | 1,163,151 | 53,847 | 6.19 | 859,149 | 40,644 | 6.32 | ||||||||||
Trading account securities | 13,499 | 564 | 5.59 | 10,891 | 408 | 5.01 | ||||||||||
Other marketable securities (A) | 125,064 | 5,380 | 5.75 | 118,363 | 5,299 | 5.99 | ||||||||||
Other non-marketable securities | 33,172 | 1,272 | 5.13 | 31,645 | 1,405 | 5.94 | ||||||||||
Total investment securities | 2,725,240 | 124,730 | 6.12 | 2,538,890 | 119,534 | 6.29 | ||||||||||
Federal funds sold and securities purchased under agreements to resell | 320,777 | 11,804 | 4.92 | 275,195 | 11,439 | 5.56 | ||||||||||
Total interest earning assets | 10,170,644 | 561,132 | 7.38 | 9,307,818 | 544,267 | 7.82 | ||||||||||
Less allowance for loan losses | (118,917 | ) | (109,343 | ) | ||||||||||||
Unrealized gain on investment securities | 50,978 | 58,623 | ||||||||||||||
Cash and due from banks | 587,338 | 607,309 | ||||||||||||||
Land, buildings and equipment, net | 226,387 | 216,928 | ||||||||||||||
Other assets | 176,592 | 215,095 | ||||||||||||||
Total assets | $11,093,022 | $10,296,430 | ||||||||||||||
LIABILITIES AND EQUITY: | ||||||||||||||||
Interest bearing deposits: | ||||||||||||||||
Savings | $ 340,522 | 4,443 | 1.74 | $ 315,489 | 5,671 | 2.40 | ||||||||||
Interest bearing demand | 5,079,663 | 93,576 | 2.46 | 4,212,577 | 101,797 | 3.23 | ||||||||||
Time open & C.D. s of less than $100,000 | 2,201,116 | 83,244 | 5.06 | 2,180,206 | 88,268 | 5.41 | ||||||||||
Time open & C.D. s of $100,000 and over | 293,183 | 10,921 | 4.98 | 241,324 | 9,904 | 5.49 | ||||||||||
Total interest bearing deposits | 7,914,484 | 192,184 | 3.25 | 6,949,596 | 205,640 | 3.96 | ||||||||||
Borrowings: | ||||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 586,877 | 19,029 | 4.34 | 516,094 | 19,364 | 5.02 | ||||||||||
Long-term debt and other borrowings | 26,667 | 660 | 3.31 | 9,144 | 325 | 4.75 | ||||||||||
Total borrowings | 613,544 | 19,689 | 4.29 | 525,238 | 19,689 | 5.01 | ||||||||||
Total interest bearing liabilities | 8,528,028 | 211,873 | 3.32 | % | 7,474,834 | 225,329 | 4.03 | % | ||||||||
Non-interest bearing demand deposits | 1,363,511 | 1,688,182 | ||||||||||||||
Other liabilities | 123,100 | 116,724 | ||||||||||||||
Stockholders equity | 1,078,383 | 1,016,690 | ||||||||||||||
Total liabilities and equity | $11,093,022 | $10,296,430 | ||||||||||||||
Net interest margin (T/E) | $349,259 | $318,938 | ||||||||||||||
Net yield on interest earning assets | 4.59 | % | 4.58 | % | ||||||||||||
(A)
|
Stated on a tax equivalent basis using a federal
income tax rate of 35%.
|
Third Quarter 1999 |
Third Quarter 1998 |
|||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Average
Balance |
Interest
Income/ Expense |
Avg.Rates
Earned/ Paid |
Average
Balance |
Interest
Income/ Expense |
Avg.Rates
Earned/ Paid |
|||||||||||
(Unaudited)
(Dollars in thousands) |
||||||||||||||||
ASSETS: | ||||||||||||||||
Loans: | ||||||||||||||||
Business (A) | $ 2,455,461 | $45,732 | 7.39 | % | $ 2,223,565 | $43,673 | 7.79 | % | ||||||||
Construction and development | 351,832 | 6,979 | 7.87 | 248,608 | 5,163 | 8.24 | ||||||||||
Real estatebusiness | 1,087,146 | 21,767 | 7.94 | 954,814 | 19,980 | 8.30 | ||||||||||
Real estatepersonal | 1,333,624 | 23,961 | 7.13 | 1,279,439 | 23,758 | 7.37 | ||||||||||
Personal banking | 1,598,313 | 31,881 | 7.91 | 1,430,893 | 31,196 | 8.65 | ||||||||||
Credit card | 500,097 | 16,639 | 13.20 | 507,775 | 16,906 | 13.21 | ||||||||||
Total loans | 7,326,473 | 146,959 | 7.96 | 6,645,094 | 140,676 | 8.40 | ||||||||||
Investment securities: | ||||||||||||||||
U.S. government & federal agency | 1,232,052 | 18,376 | 5.92 | 1,388,667 | 21,390 | 6.11 | ||||||||||
State & municipal obligations (A) | 92,275 | 1,819 | 7.82 | 101,665 | 2,030 | 7.92 | ||||||||||
CMOs and asset-backed securities | 1,224,575 | 19,013 | 6.16 | 855,975 | 13,491 | 6.25 | ||||||||||
Trading account securities | 10,821 | 166 | 6.09 | 12,662 | 162 | 6.00 | ||||||||||
Other marketable securities (A) | 89,797 | 1,349 | 5.96 | 117,968 | 1,753 | 5.90 | ||||||||||
Other non-marketable securities | 33,666 | 425 | 5.01 | 32,200 | 479 | 5.90 | ||||||||||
Total investment securities | 2,683,186 | 41,148 | 6.08 | 2,509,137 | 39,305 | 6.21 | ||||||||||
Federal funds
sold and securities purchased under
agreements to resell |
170,238 | 2,283 | 5.32 | 325,354 | 4,536 | 5.53 | ||||||||||
Total interest earning assets | 10,179,897 | 190,390 | 7.42 | 9,479,585 | 184,517 | 7.72 | ||||||||||
Less allowance for loan losses | (120,113 | ) | (112,231 | ) | ||||||||||||
Unrealized gain on investment securities | 25,896 | 58,574 | ||||||||||||||
Cash and due from banks | 573,259 | 561,341 | ||||||||||||||
Land, buildings and equipment, net | 231,067 | 218,352 | ||||||||||||||
Other assets | 171,553 | 221,509 | ||||||||||||||
Total assets | $11,061,559 | $10,427,130 | ||||||||||||||
LIABILITIES AND EQUITY: |
Interest bearing deposits: | ||||||||||||||||
Savings | $ 339,570 | 1,341 | 1.57 | $ 317,675 | 1,914 | 2.39 | ||||||||||
Interest bearing demand | 5,095,865 | 31,591 | 2.46 | 4,659,678 | 35,058 | 2.98 | ||||||||||
Time open & C.D.s of less than $100,000 | 2,144,504 | 26,639 | 4.93 | 2,190,781 | 29,782 | 5.39 | ||||||||||
Time open & C.D.s of $100,000 and over | 285,193 | 3,468 | 4.82 | 249,164 | 3,442 | 5.48 | ||||||||||
|
|
|
|
|
|
|||||||||||
Total interest bearing deposits | 7,865,132 | 63,039 | 3.18 | 7,417,298 | 70,196 | 3.75 | ||||||||||
|
|
|
|
|
|
|||||||||||
Borrowings: | ||||||||||||||||
Federal funds
purchased and securities sold under
agreements to repurchase |
627,362 | 7,199 | 4.55 | 530,942 | 6,591 | 4.93 | ||||||||||
Long-term debt and other borrowings | 26,626 | 218 | 3.25 | 13,996 | 76 | 7.53 | ||||||||||
|
|
|
|
|
|
|||||||||||
Total borrowings | 653,988 | 7,417 | 4.50 | 544,938 | 6,667 | 4.85 | ||||||||||
|
|
|
|
|
|
|||||||||||
Total interest bearing liabilities | 8,519,120 | 70,456 | 3.28 | % | 7,962,236 | 76,863 | 3.83 | % | ||||||||
|
|
|
|
|||||||||||||
Non-interest bearing demand deposits | 1,355,799 | 1,316,402 | ||||||||||||||
Other liabilities | 110,553 | 125,099 | ||||||||||||||
Stockholders equity | 1,076,087 | 1,023,393 | ||||||||||||||
|
|
|||||||||||||||
Total liabilities and equity | $11,061,559 | $10,427,130 | ||||||||||||||
|
|
|||||||||||||||
Net interest margin (T/E) | $119,934 | $107,654 | ||||||||||||||
|
|
|||||||||||||||
Net yield on interest earning assets | 4.67 | % | 4.51 | % | ||||||||||||
|
|
(A)
|
Stated on a tax equivalent basis using a federal
income tax rate of 35%.
|
|