<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) October 13, 1997
DONALDSON, LUFKIN & JENRETTE, INC.
------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware
- ------------------------------------------------------------------------------
(State or other jurisdiction of incorporation or organization)
1-6862 13-1898818
- ------------------------- ----------------------
(Commission File Number) (I.R.S. Employer
Identification No.)
140 Broadway, New York, New York 10005
- --------------------------------------- ----------------------
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code: (212) 504-3000
<PAGE>
Item 5. Other Events
- --------------------
A press release concerning third quarter financial results dated
October 13, 1997 issued by Donaldson, Lufkin & Jenrette, Inc. is filed
herewith as an exhibit hereto and the information concerning the Company
contained therein is hereby incorporated in its entirety by reference herein.
(c) Exhibit
-------
Exhibit 99.1 Press release dated October 13, 1997
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.
Donaldson, Lufkin & Jenrette, Inc.
/s/ Anthony F. Daddino
---------------------------------------
Anthony F. Daddino
Executive Vice President and
Chief Financial Officer
(On behalf of the Registrant and as
Principal Financial Officer)
October 15, 1997
<PAGE>
[DONALDSON, LUFKIN & JENRETTE LETTERHEAD]
FOR IMMEDIATE RELEASE
Contacts:
Media Investors
Catherine M. Conroy Kevin Zuccala
212-892-3275 212-892-4693
DLJ'S THIRD QUARTER EARNINGS MORE THAN DOUBLE
RISING TO A RECORD $1.80 PER SHARE
New York, NY, October 13, 1997 --- Donaldson, Lufkin & Jenrette, Inc.
<NYSE: DLJ> today reported record net income of $120.3 million, or $1.80 per
share on a primary basis, for the third quarter of 1997. The previous record
was set in this year's second quarter when DLJ reported net income of $100.2
million. DLJ's third quarter results represent increases of 114 percent and
109 percent, respectively, over the $56.1 million, or $0.86 per share,
reported for the comparable quarter a year ago.
Average return on equity for the quarter was approximately 28 percent
and book value at September 30, 1997 was $29.85 per common share.
DLJ's net income of $306.9 million, or $4.68 per share on a primary
basis, for the nine months ended September 30, 1997, surpassed the record
$291.3 million, or $4.55 per share, the firm reported for the full year of
1996.
In the third quarter of 1997, income available for common shares rose
130 percent from the comparable period a year ago to $117.3 million. Fully
diluted earnings per share were $1.77 versus $0.84 for the same quarter a year
ago.
John S. Chalsty, Chairman and Chief Executive Officer of Donaldson,
Lufkin & Jenrette, said, "These outstanding results underscore the momentum
and growth that DLJ has achieved in all of our businesses by adhering to a
strategy of recruiting and retaining exceptionally talented individuals who
can provide clients with superior information and
<PAGE>
ideas, and flawless execution of those ideas. DLJ's competitive advantage
continues to be the quality of our people."
Joe L. Roby, DLJ's President and Chief Operating Officer, said, "The
performance of our investment banking, merchant banking and real estate
banking groups was exceptionally strong during the third quarter. We are
particularly pleased with the success we have achieved in building our
presence in mergers and acquisitions, where our current market share is
dramatically larger than it was last year, and in our continued leadership of
the high-yield marketplace. Fee income rose by more than 68 percent and
underwriting revenues almost doubled in the third quarter."
THIRD QUARTER HIGHLIGHTS
Total revenues for the third quarter of 1997 were a record $1.27
billion or 65 percent greater than the $771 million reported a year ago. Net
revenues for the current quarter, or total revenues minus interest expense,
rose 67 percent to a record $989 million.
Revenues from commissions for the third quarter of 1997 rose 38
percent to $178.3 million due primarily to sustained strong volume on the
nation's stock exchanges. DLJ and its Pershing correspondent clearing division
account for approximately 10 percent of the average daily volume on the New
York Stock Exchange.
Underwriting revenues rose 89 percent to $244.8 million as a result
of a stronger new issue calendar in 1997's third quarter compared to the
comparable quarter a year ago. For the nine months ended September 30, 1997,
DLJ was the number four ranked lead manager of common stock offerings and the
number one ranked lead manager of high-yield bond offerings in the United
States.
Fee income, derived primarily from the firm's role as an advisor in
merger and acquisition assignments and as a placement agent for private equity
funds, surged 68 percent to $209.7 million. For the first nine months of the
year, DLJ moved to fifth place from tenth place as an advisor in announced
merger and acquisition transactions with U.S. targets.
2
<PAGE>
Trading gains increased 48 percent to $134.6 million reflecting
improved conditions in the fixed income markets. Investment gains related to
DLJ's merchant banking activities increased to $85.6 million as a result of
several significant dispositions during the quarter by one of the firm's
merchant banking funds.
RECORD INCOME AND REVENUES FOR NINE MONTHS 1997
Net income for the first nine months of 1997 totaled $306.9 million,
41 percent greater than the comparable period of 1996 and 5 percent more than
DLJ's record net income of $291.3 million for the full year of 1996.
Primary earnings per share for the nine months ended September 30,
1997 were $4.68, or 38 percent greater than the $3.40 the firm reported for
the comparable period of 1996. Average return on equity for the first nine
months of 1997 approximated 25.0 percent versus 21.0 percent for the first
nine months of 1996.
Total revenues for the first nine months of 1997 grew 30 percent to a
record $3.31 billion. Net revenues, or total revenues minus interest expense,
rose 28 percent to a record $2.57 billion.
Donaldson, Lufkin & Jenrette is a leading integrated investment and
merchant bank serving institutional, corporate, government and individual
clients. DLJ's businesses include securities underwriting; sales and trading;
merchant banking; financial advisory services; investment research; venture
capital; correspondent brokerage services; on-line, interactive brokerage
services; and asset management. Founded in 1959 and headquartered in New York
City, DLJ employs approximately 6,800 people worldwide and maintains offices
in 12 cities in the United States and 11 cities in Europe, Latin America, Asia
and South Africa. The company's common stock trades on the New York Stock
Exchange under the ticker symbol DLJ. For more information on Donaldson,
Lufkin & Jenrette, refer to the company's world wide web site at
http://www.dlj.com.
Seven pages of financial statements follow.
3
<PAGE>
DONALDSON, LUFKIN & JENRETTE, INC. AND SUBSIDIARIES
CONSOLIDATED SUMMARY OF OPERATIONS (UNAUDITED)
(in thousands, except per share data and financial ratios)
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------
QUARTERS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
1997 1996 1997 1996
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Revenues:
Commissions $ 178,301 $ 129,133 $ 504,997 $ 428,180
Underwritings 244,805 129,506 583,269 520,473
Fees 209,703 124,576 532,530 309,319
Interest-net (1) 400,413 278,259 1,090,133 760,159
Principal transactions-net:
Trading 134,555 90,719 400,759 365,759
Investment 85,587 5,597 149,967 116,723
Other 15,132 13,217 49,424 37,513
----------- ---------- ----------- ------------
Total revenues 1,268,496 771,007 3,311,079 2,538,126
----------- ---------- ----------- ------------
Costs and expenses:
Compensation and benefits 545,493 329,260 1,411,272 1,138,212
Interest 279,287 178,967 744,464 531,483
Brokerage, clearing, exchange
fees, and other 56,409 36,922 166,194 134,615
Occupancy and equipme 47,452 39,550 132,757 107,462
Communications 16,141 13,169 45,912 36,982
Other operating expenses 135,614 81,139 311,380 231,572
----------- ---------- ----------- -----------
Total costs and expense 1,080,396 679,007 2,811,979 2,180,326
----------- ---------- ----------- -----------
Income before provision for
income taxes 188,100 92,000 499,100 357,800
----------- ---------- ----------- -----------
Provision for income taxes 67,800 35,900 192,200 139,600
----------- ---------- ----------- -----------
Net income $ 120,300 $ 56,100 $ 306,900 $ 218,200
=========== ========== =========== ===========
Dividends on preferred stock $ 2,970 $ 4,967 $ 9,174 $ 14,901
=========== ========== =========== ===========
Earnings applicable to
common shares $ 117,330 $ 51,133 $ 297,726 $ 203,299
=========== ========== =========== ===========
Earnings per share (2,3):
Primary $ 1.80 $ 0.86 $ 4.68 $ 3.40
Fully diluted $ 1.77 $ 0.84 $ 4.52 $ 3.35
=========== ========== =========== ===========
Weighted average common
shares (2,3):
Primary 65,214 59,611 63,604 59,763
Fully diluted 66,153 60,614 65,917 60,616
=========== ========== =========== ===========
</TABLE>
4
<PAGE>
DONALDSON, LUFKIN & JENRETTE, INC. AND SUBSIDIARIES
CONSOLIDATED SUMMARY OF OPERATIONS (UNAUDITED)
(in thousands, except per share data and financial ratios)
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------
QUARTERS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
1997 1996 1997 1996
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
BALANCE SHEET DATA AT END OF PERIOD:
Total assets (estimated) $ 72,000,000 $ 54,000,000
============ ============
Long-term borrowings (3,4) $ 2,207,069 $ 1,294,740
============ ============
Preferred stock (5) $ 200,000 $ 425,000
============ ============
Total stockholders' equity (3) $ 1,963,911 $ 1,382,215
============ ============
Book value per common share
outstanding $ 29.85 $ 23.65
============ ============
OTHER FINANCIAL DATA AT END OF PERIOD:
Ratio of net assets to total stockholders'
equity (6) 15.3x 16.4x
Ratio of long-term borrowings to total
capitalization (7) 50.5% 41.5%
Return on average common stockholders'
equity (8) 27.7% 15.1% 24.9% 21.0%
</TABLE>
(1) Interest-net is net of interest expense to finance U.S. Government and
agency instruments of $731.8 million, $544.7 million, $2,097.6 million
and $1,536.0 million, respectively.
(2) Primary and fully diluted earnings per common share amounts have been
calculated by dividing earnings applicable to common shares (net income
less preferred dividends) by the respective weighted average number of
common shares and respective common share equivalents outstanding.
Common share equivalents include shares of common stock issuable under
the Restricted Stock Unit Plan (RSU) and the dilutive effect of options
under the Treasury Stock Method. In addition, in calculating fully
diluted earnings per common share, common share equivalents also include
the dilutive effect of convertible debt using the "if-converted" method.
(3) In August 1997, the Company exercised its option to redeem all the
outstanding convertible debentures issued in connection with the
acquisition of a London based advisory firm. Such debentures were
converted into an aggregate of 685,204 shares of common stock of the
Company.
(4) In September 1997, the Company issued $350 million Global Floating Rate
Notes from a $1 billion shelf registration statement previously filed by
the Company. The notes bear interest at LIBOR + 0.25% and mature on
September 18, 2002.
(5) In the third quarter of 1996, the Company and a wholly owned Trust
completed an offering from a shelf registration of $200 million of the
Trust's 8.42% mandatorily redeemable preferred stock. The preferred
stock is redeemable, in whole or in part, at the option of the Company
on or after August 31, 2001. The only assets of the Trust are Junior
Subordinated Debt Securities of the Company.
In October 1996, the Company exercised its option under the terms of the
$8.83 Cumulative Preferred Stock agreement to exchange all 2.25 million
shares outstanding for $225 million in aggregate principal amount of
9.58% Subordinated Exchange Notes due October 15, 2003. The notes are
redeemable in whole or in part, at the option of the Company at any
time.
(6) Net assets (total assets excluding securities purchased under agreements
to resell and securities borrowed) divided by stockholders' equity.
(7) Long-term borrowings and total capitalization (the sum of long-term
borrowings, preferred stock, and stockholders' equity) exclude current
maturities (one year or less) of long-term borrowings.
(8) Return on average common stockholders' equity is calculated on an
annualized basis for periods of less than one full year using a
four-point average and is based on earnings applicable to common shares.
(9) In October 1997, the Company acquired London Global Securities, a
premier securities lending organization located in London.
5
<PAGE>
DONALDSON, LUFKIN & JENRETTE, INC. AND SUBSIDIARIES
CONSOLIDATED FINANCIAL DATA (UNAUDITED)
(in thousands, except per share data)
<TABLE>
<CAPTION>
------------------------------------------------------------------------------
NINE MONTHS
ENDED SEPTEMBER 30, 1997 VS. 1996
1997 1996 $ %
------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Revenues:
Commissions $ 504,997 $ 428,180 $ 76,817 17.9%
Underwritings 583,269 520,473 62,796 12.1%
Fees 532,530 309,319 223,211 72.2%
Interest-net 1,090,133 760,159 329,974 43.4%
Principal transactions-net:
Trading 400,759 365,759 35,000 9.6%
Investment 149,967 116,723 33,244 28.5%
Other 49,424 37,513 11,911 31.8%
------------ ----------- ---------- ----------
Total revenues 3,311,079 2,538,126 772,953 30.5%
------------ ----------- ---------- ----------
Costs and expenses:
Compensation and benefits 1,411,272 1,138,212 273,060 24.0%
Interest 744,464 531,483 212,981 40.1%
Brokerage, clearing, exchange
fees, and other 166,194 134,615 31,579 23.5%
Occupancy and equipment 132,757 107,462 25,295 23.5%
Communications 45,912 36,982 8,930 24.1%
Other operating expenses 311,380 231,572 79,808 34.5%
------------ ----------- ---------- ----------
Total costs and expenses 2,811,979 2,180,326 631,653 29.0%
------------ ----------- ---------- ----------
Income before provision for
income taxes $ 499,100 $ 357,800 $ 141,300 39.5%
------------ ----------- ---------- ----------
Provision for income taxes $ 192,200 $ 139,600 $ 52,600 37.7%
------------ ----------- ---------- ----------
Net income $ 306,900 $ 218,200 $ 88,700 40.7%
============ =========== ========== ==========
Dividends on preferred stock $ 9,174 $ 14,901 $ (5,727) (38.4)%
============ =========== ========== ==========
Earnings applicable to
common shares $ 297,726 $ 203,299 $ 94,427 46.4%
============ =========== ========== ==========
Earnings per share (2,3):
Primary $ 4.68 $ 3.40 $ 1.28 37.6%
Fully diluted $ 4.52 $ 3.35 $ 1.17 34.9%
============ =========== ========== ==========
Weighted average common shares (2,3):
Primary 63,604 59,763 3,841 6.4%
Fully diluted 65,917 60,616 5,301 8.7%
============ =========== ========== ==========
</TABLE>
6
<PAGE>
DONALDSON, LUFKIN & JENRETTE, INC. AND SUBSIDIARIES
CONSOLIDATED FINANCIAL DATA (UNAUDITED)
(in thousands, except per share data)
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------
3Q97 2Q97 1Q97 4Q96 3Q96
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Revenues:
Commissions $ 178,301 $ 158,346 $ 168,350 $ 145,155 $ 129,133
Underwritings 244,805 164,544 173,920 193,710 129,506
Fees 209,703 176,695 146,132 160,667 124,576
Interest-net 400,413 369,992 319,728 314,064 278,259
Principal transactions-net:
Trading 134,555 109,886 156,318 69,623 90,719
Investment 85,587 63,533 847 46,252 5,597
Other 15,132 18,184 16,108 23,159 13,217
----------- ----------- --------- --------- ---------
Total revenues 1,268,496 1,061,180 981,403 952,630 771,007
----------- ----------- --------- --------- ---------
Interest expense 279,287 247,006 218,171 201,724 178,967
----------- ----------- --------- --------- ---------
Net revenues 989,209 814,174 763,232 750,906 592,040
----------- ----------- --------- --------- ---------
Non-interest expenses:
Compensation and benefits 545,493 442,330 423,449 400,542 329,260
Brokerage, clearing, exchange
fees, and other 56,409 51,305 58,480 66,677 36,922
Occupancy and equipment 47,452 45,335 39,970 51,868 39,550
Communications 16,141 15,927 13,844 16,675 13,169
Other operating expense 135,614 92,277 83,489 99,144 81,139
----------- ----------- --------- --------- ---------
Total non-interest expenses 801,109 647,174 619,232 634,906 500,040
----------- ----------- --------- --------- ---------
Income before provision for
income taxes 188,100 167,000 144,000 116,000 92,000
----------- ----------- --------- --------- ---------
Provision for income taxes 67,800 66,800 57,600 42,900 35,900
----------- ----------- --------- --------- ---------
Net income $ 120,300 $ 100,200 $ 86,400 $ 73,100 $ 56,100
=========== =========== ========= ========= =========
Dividends on preferred stock $ 2,970 $ 2,970 $ 3,234 $ 3,752 $ 4,967
=========== =========== ========= ========= =========
Earnings applicable to
common shares $ 117,330 $ 97,230 $ 83,166 $ 69,348 $ 51,133
=========== =========== ========= ========= =========
Earnings per share (2,3):
Primary $ 1.80 $ 1.54 $ 1.35 $ 1.15 $ 0.86
Fully diluted $ 1.77 $ 1.49 $ 1.35 $ 1.14 $ 0.84
=========== =========== ========= ========= =========
Weighted average common shares (2,3):
Primary 65,214 63,096 61,743 60,351 59,611
Fully diluted 66,153 65,185 61,743 60,788 60,614
=========== =========== ========= ========= =========
</TABLE>
7
<PAGE>
DONALDSON, LUFKIN & JENRETTE, INC. AND SUBSIDIARIES
CONSOLIDATED FINANCIAL DATA (UNAUDITED)
<TABLE>
<CAPTION>
------------------------------------------------------------------------------
NINE MONTHS ENDED
SEPTEMBER 30,
1997 1996 3Q97 2Q97 1Q97 4Q96 3Q96
------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Other financial data:
Net interest profit (in thousands) $ 345,669 $ 228,676 $ 121,126 $ 122,986 $ 101,557 $ 112,340 $ 99,292
Compensation and benefits as a
% of net revenues 55.0% 56.7% 55.1% 54.3% 55.5% 53.3% 55.6%
Compensation and benefits as a
% of pre-tax income before
compensation & benefits 73.9% 76.1% 74.4% 72.6% 74.6% 77.5% 78.2%
Non-compensation expenses as a
% of net revenues 25.6% 25.4% 25.8% 25.2% 25.7% 31.2% 28.8%
Income before provision for income
taxes as a % of net revenues 19.4% 17.8% 19.0% 20.5% 18.9% 15.4% 15.5%
Net income as a % of net revenues 12.0% 10.9% 12.2% 12.3% 11.3% 9.7% 9.5%
Return on common equity 24.9% 21.0% 27.7% 24.7% 22.3% 19.6% 15.1%
Common shares and RSUs outstanding
at end of period (in thousands) 59,089 58,440 59,089 58,382 58,377 58,382 58,440
Book value per common share
outstanding $ 29.85 $ 23.65 $ 29.85 $ 27.82 $ 26.26 $ 24.79 $ 23.65
Full-time employees 6,815 5,706 6,815 6,468 6,046 5,885 5,706
</TABLE>
8
<PAGE>
DONALDSON, LUFKIN & JENRETTE, INC. & SUBSIDIARIES
CONSOLIDATED FINANCIAL DATA (UNAUDITED)
(in thousands, except per share data)
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------
3Q97 3Q97
VS VS
3Q97 2Q97 3Q96 2Q97 3Q96
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Revenues:
Commissions $ 178,301 $ 158,346 $ 129,133 12.6% 38.1%
Underwritings 244,805 164,544 129,506 48.8% 89.0%
Fees 209,703 176,695 124,576 18.7% 68.3%
Interest-net 400,413 369,992 278,259 8.2% 43.9%
Principal transactions-net:
Trading 134,555 109,886 90,719 22.4% 48.3%
Investment 85,587 63,533 5,597 34.7% n/m
Other 15,132 18,184 13,217 (16.8)% 14.5%
----------- ----------- --------- --------- ---------
Total revenues 1,268,496 1,061,180 771,007 19.5% 64.5%
----------- ----------- --------- --------- ---------
Interest expense 279,287 247,006 178,967 13.1% 56.1%
---------- ----------- --------- --------- ---------
Net revenues 989,209 814,174 592,040 21.5% 67.1%
---------- ----------- --------- --------- ---------
Non-interest expenses:
Compensation and benefits 545,493 442,330 329,260 23.3% 65.7%
Brokerage, clearing, exchange
fees, and other 56,409 51,305 36,922 9.9% 52.8%
Occupancy and equipment 47,452 45,335 39,550 4.7% 20.0%
Communications 16,141 15,927 13,169 1.3% 22.6%
Other operating expenses 135,614 92,277 81,139 47.0% 67.1%
---------- ----------- --------- --------- ---------
Total non-interest expenses 801,109 647,174 500,040 23.8% 60.2%
---------- ----------- --------- --------- ---------
Income before provision for
income taxes 188,100 167,000 92,000 12.6% 104.5%
---------- ----------- --------- --------- ---------
Provision for income taxes 67,800 66,800 35,900 1.5% 88.9%
---------- ----------- --------- --------- ---------
Net income $ 120,300 $ 100,200 $ 56,100 20.1% 114.4%
=========== =========== ========= ========= =========
Preferred stock dividend $ 2,970 $ 2,970 $ 4,967 0.0% (40.2)%
=========== =========== ========= ========= =========
Earnings applicable to
common shares $ 117,330 $ 97,230 $ 51,133 20.7% 129.5%
=========== =========== ========= ========= =========
Earnings per share (2,3):
Primary $ 1.80 $ 1.54 $ 0.86 16.9% 109.3%
Fully diluted $ 1.77 $ 1.49 $ 0.84 18.8% 110.7%
=========== =========== ========= ========= =========
Weighted average common
shares (2,3):
Primary 65,214 63,096 59,611 3.4% 9.4%
Fully diluted 66,153 65,185 60,614 1.5% 9.1%
=========== =========== ========= ========= =========
</TABLE>
9
<PAGE>
DONALDSON, LUFKIN & JENRETTE, INC. AND SUBSIDIARIES
CONSOLIDATED REVENUES AND EXPENSES AS A
PERCENTAGE OF NET REVENUES (UNAUDITED)
<TABLE>
<CAPTION>
--------------------------------------------------------------------
3Q97 2Q97 1Q97 4Q96 3Q96
--------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Revenues:
Commissions 18.0% 19.4% 22.1% 19.3% 21.8%
Underwritings 24.7% 20.2% 22.8% 25.8% 21.9%
Fees 21.2% 21.7% 19.1% 21.4% 21.0%
Interest-net 40.5% 45.4% 41.9% 41.8% 47.0%
Principal transactions-net:
Trading 13.6% 13.5% 20.5% 9.3% 15.3%
Investment 8.7% 7.8% 0.1% 6.2% 0.9%
Other 1.5% 2.2% 2.1% 3.1% 2.2%
--------- --------- --------- --------- ---------
Total revenues 128.2% 130.3% 128.6% 126.9% 130.2%
--------- --------- --------- --------- ---------
Interest expense 28.2% 30.3% 28.6% 26.9% 30.2%
--------- --------- --------- --------- ---------
Net revenues 100.0% 100.0% 100.0% 100.0% 100.0%
--------- --------- --------- --------- ---------
Non-interest expenses:
Compensation and benefits 55.1% 54.3% 55.5% 53.3% 55.6%
Brokerage, clearing, exchange
fees, and other 5.7% 6.3% 7.7% 8.9% 6.2%
Occupancy and equipment 4.8% 5.6% 5.2% 6.9% 6.7%
Communications 1.6% 2.0% 1.8% 2.2% 2.2%
Other operating expenses 13.7% 11.3% 10.9% 13.2% 13.7%
--------- --------- --------- --------- ---------
Total non-interest expenses 81.0% 79.5% 81.1% 84.6% 84.5%
--------- --------- --------- --------- ---------
Income before provision for income taxes 19.0% 20.5% 18.9% 15.4% 15.5%
--------- --------- --------- --------- ---------
Provision for income taxes 6.9% 8.2% 7.5% 5.7% 6.1%
--------- --------- --------- --------- ---------
Net income 12.2% 12.3% 11.3% 9.7% 9.5%
========= ========= ========= ========= =========
Dividends on preferred stock 0.3% 0.4% 0.4% 0.5% 0.8%
========= ========= ========= ========= =========
Earnings applicable to common shares 11.9% 11.9% 10.9% 9.2% 8.6%
========= ========= ========= ========= =========
</TABLE>
10
