SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended March 31, 1995 Commission File Number 1-10294
HIBERNIA CORPORATION
(Exact name of registrant as specified in its charter)
Louisiana 72-0724532
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
313 Carondelet Street, New Orleans, Louisiana 70130
(Address of principal executive offices and zip code)
Registrant's telephone number, including area code (504) 533-5332
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Class Outstanding at April 30, 1995
Class A Common Stock, no par value 111,260,491 Shares
<PAGE>
<TABLE>
Consolidated Balance Sheets
<CAPTION>
Hibernia Corporation and Subsidiaries March 31 December 31 March 31
Unaudited ($ in thousands) 1995 1994 1994
<S> <C> <C> <C>
Assets
Cash and due from banks $279,471 $359,483 $338,762
Short-term investments 83,730 193,210 352,440
Securities available for sale 546,360 539,570 717,978
Securities held to maturity (estimated fair values at
March 31, 1995, December 31, 1994 and March 31, 1994,
were $1,821,092, $1,685,096, and $1,938,159, respectively) 1,850,267 1,753,952 1,979,085
Loans, net of unearned income 3,599,398 3,435,599 3,034,827
Reserve for possible loan losses (149,441) (149,644) (179,525)
Loans, net 3,449,957 3,285,955 2,855,302
Bank premises and equipment 111,653 111,000 107,080
Customers' acceptance liability 2,850 4,589 12,350
Other assets 178,374 176,281 179,269
Total assets $6,502,662 $6,424,040 $6,542,266
Liabilities
Deposits:
Demand, noninterest-bearing $1,010,181 $1,077,583 $1,163,288
Interest-bearing 4,592,787 4,507,737 4,493,452
Total Deposits 5,602,968 5,585,320 5,656,740
Short-term borrowings 192,986 159,105 192,945
Liability on acceptances 2,850 4,589 12,350
Other liabilities 97,080 103,740 115,664
Debt 4,815 5,650 28,796
Total liabilities 5,900,699 5,858,404 6,006,495
Shareholders' equity
Preferred Stock, no par value:
Authorized - 100,000,000 shares; issued and
outstanding - none - - -
Class A Common Stock, no par value:
Authorized - 200,000,000 shares; issued 111,248,665,
111,145,265, and 110,507,443 at March 31, 1995,
December 31, 1994, and March 31, 1994, respectively 213,597 213,399 212,174
Surplus 388,174 387,939 384,939
Retained earnings 8,627 (11,187) (59,229)
Treasury stock at cost, 300,000 shares at December 31, 1994 - (2,414) -
Unrealized loss on securities available for sale (8,435) (22,101) (2,113)
Total shareholders' equity 601,963 565,636 535,771
Total liabilities and shareholders' equity $6,502,662 $6,424,040 $6,542,266
See notes to consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
Consolidated Income Statements
<CAPTION>
Hibernia Corporation and Subsidiaries
Three Months Ended March 31
Unaudited ($ in thousands, except per share data) 1995 1994
<S> <C> <C>
Interest income
Interest and fees on loans $79,570 $61,631
Interest on securities available for sale 9,119 9,243
Interest on securities held to maturity 26,764 26,472
Interest on short-term investments 2,370 2,087
Total interest income 117,823 99,433
Interest expense
Interest on deposits 47,748 32,734
Interest on short-term borrowings 2,087 1,181
Interest on debt 75 735
Total interest expense 49,910 34,650
Net interest income 67,913 64,783
Provision for possible loan losses - 475
Net interest income after provision for possible loan losses 67,913 64,308
Noninterest income
Trust fees 2,821 3,046
Service charges on deposits 10,275 10,132
Other service, collection and exchange charges 5,827 5,340
Gain on divestiture of banking offices 2,361 -
Other operating income 1,845 2,892
Securities gains, net - 162
Total noninterest income 23,129 21,572
Noninterest expense
Salaries and employee benefits 29,564 29,078
Occupancy expense, net 5,887 6,066
Equipment expense 4,250 3,559
Data processing expense 5,326 5,146
Foreclosed property expense, net (262) (3,710)
Other operating expense 17,859 21,490
Total noninterest expense 62,624 61,629
Income before income taxes 28,418 24,251
Income tax expense 2,059 1,135
Net income $26,359 $23,116
Net income per share $0.24 $0.21
See notes to consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
Consolidated Statements of Changes in Shareholders' Equity
Hibernia Corporation and Subsidiaries
<CAPTION>
Shares of
Common Retained
Three Months Ended March 31, 1995 Stock Common Earnings
Unaudited ($ in thousands) Outstanding Stock Surplus (Deficit)
<S> <C> <C> <C> <C>
Balances at December 31, 1994 110,845,265 $213,399 $387,939 ($11,187)
Net income - - - 26,359
Issuance of common stock:
Divdend Reinvestment Plan 80,589 154 428 -
Stock Option Plan 419 1 1 -
Retirement Security Plan 62,845 - (32) -
Performance Stock Awards 259,547 43 (160) -
Cash dividends declared ($.06 per share) - - - (6,545)
Change in unrealized gains (losses) on
securities available for sale - - - -
Other - - (2) -
Balances at March 31, 1995 111,248,665 $213,597 $388,174 $8,627
</TABLE>
<TABLE>
Consolidated Statements of Changes in Shareholders' Equity (continued)
Hibernia Corporation and Subsidiaries
<CAPTION>
Unrealized
Gains (Losses)
Three Months Ended March 31, 1995 Treasury on Securities ESOP
Unaudited ($ in thousands) Stock Available for Sale Commitment Total
<S> <C> <C> <C> <C> <C>
Balances at December 31, 1994 ($2,414) ($22,101) $ - $565,636
Net income - - - 26,359
Issuance of common stock:
Divdend Reinvestment Plan - - - 582
Stock Option Plan - - - 2
Retirement Security Plan 512 - - 480
Performance Stock Awards 1,902 - - 1,785
Cash dividends declared ($.06 per share) - - - (6,545)
Change in unrealized gains (losses) on
securities available for sale - 13,666 - 13,666
Other - - - (2)
Balances at March 31, 1995 $ - ($8,435) $ - $601,963
</TABLE>
<TABLE>
<CAPTION>
Shares of
Common Retained
Three Months Ended March 31, 1994 Stock Common Earnings
Unaudited ($ in thousands) Outstanding Stock Surplus (Deficit)
<S> <C> <C> <C> <C>
Balances at December 31, 1993 110,452,738 $212,069 $384,633 ($79,000)
Net income - - - 23,116
Issuance of common stock:
Divdend Reinvestment Plan 54,257 104 304 -
Stock Option Plan 448 1 2 -
Cash dividends declared ($.04 per share) - - - (3,345)
Change in unrealized gains (losses) on
securities available for sale - - - -
Reduction of ESOP commitment - - - -
Balances at March 31, 1994 110,507,443 $212,174 $384,939 ($59,229)
</TABLE>
<TABLE>
<CAPTION>
Unrealized
Gains (Losses)
Three Months Ended March 31, 1994 (continued) Treasury on Securities ESOP
Unaudited ($ in thousands) Stock Available for Sale Commitment Total
<S> <C> <C> <C> <C>
Balances at December 31, 1993 $ - $12,366 ($400) $529,668
Net income - - - 23,116
Issuance of common stock:
Divdend Reinvestment Plan - - - 408
Stock Option Plan - - - 3
Cash dividends declared ($.04 per share) - - - (3,345)
Change in unrealized gains (losses) on
securities available for sale - (14,479) - (14,479)
Reduction of ESOP commitment - - 400 400
Balances at March 31, 1994 $ - ($2,113) $ - $535,771
See notes to consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
CONSOLIDATED STATEMENTS OF CASH FLOWS
<CAPTION>
Hibernia Corporation and Subsidiaries
Three Months Ended March 31
Unaudited ($ in thousands) 1995 1994
<S> <C> <C>
Operating Activities
Net income $26,359 $23,116
Adjustments to reconcile net income to net cash
provided by operating activities:
Provision for possible loan losses - 475
Amortization of intangibles and deferred charges 889 1,525
Depreciation and amortization 3,745 3,282
Premium amortization, net of discount accretion 1,941 4,690
Realized securities gains, net - (162)
Gain on sale of assets (114) (4,189)
Gain on divestiture of banking offices (2,361) -
Provision for losses on foreclosed and other assets 83 273
Decrease in deferred income tax asset 1,062 535
Decrease (increase) in interest receivable and other assets (4,184) 2,435
Increase (decrease) in interest payable and other liabilities (6,547) 2,033
Net Cash Provided By Operating Activities 20,873 34,013
Investing Activities
Purchases of securities held to maturity (151,677) (142,236)
Purchases of securities available for sale (8,888) (193,452)
Proceeds from sales of securities avialable for sale - 1,094
Maturities of securities held to maturity 54,023 83,625
Maturities of securities available for sale 15,162 78,482
Net increase in loans (212,369) (104,840)
Proceeds from sales of loans 27,429 91,473
Purchases of premises, equipment and other assets (5,880) (4,935)
Proceeds from sales of foreclosed assets 906 9,139
Proceeds from divestiture of banking offices, net of $1,039 cash sold (13,708) -
Proceeds from sales of premises, equipment and other assets 212 3
Net Cash Used By Investing Activities (294,790) (181,647)
Financing Activities
Net increase in domestic deposits 51,378 226,331
Net increase in time deposits - foreign office 2,214 5,731
Net increase in short-term borrowings 35,364 37,154
Payments on debt (835) (1,398)
Issuance of common stock 2,849 411
Dividends paid (6,545) (3,345)
Net Cash Provided By Financing Activities 84,425 264,884
Increase (Decrease) in Cash and Cash Equivalents (189,492) 117,250
Cash and Cash Equivalents at Beginning of Year 552,693 573,952
Cash and Cash Equivalents at March 31 $363,201 $691,202
See notes to consolidated financial statements.
</TABLE>
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1 BASIS OF PRESENTATION The accompanying unaudited
consolidated financial statements have been prepared in accordance
with generally accepted accounting principles for interim financial
information and with the instructions to Form 10-Q and Article 10
of Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting
principles. In the opinion of management, all adjustments
(consisting of normal recurring accruals) considered necessary for
a fair presentation have been included. Operating results for the
three-month period ended March 31, 1995, are not necessarily
indicative of the results that may be expected for the year ending
December 31, 1995. For further information, refer to the audited
consolidated financial statements and notes included in Hibernia
Corporation's annual report on Form 10-K for the year ended
December 31, 1994.
Note 2 MERGER AGREEMENTS On March 1, 1995, Hibernia National Bank
merged with American Bank. This merger was accounted for as a
pooling of interests. Accordingly, financial data for all periods
presented have been restated.
On May 1, 1995 Hibernia Corporation (the Company) merged with STABA
Bancshares, Inc. in a transaction accounted for as a pooling of
interests, and the subsidiary banks of the holding companies merged
simultaneously. Mergers with Progressive Bancorporation, Inc. and
Bank of St. John are pending shareholder approval and are expected
to be consummated in the third quarter of 1995. It is anticipated
that these pending mergers will be accounted for as poolings of
interests.
Note 3 IMPAIRED LOANS On January 1, 1995 the Company adopted
Statement of Financial Accounting Standards (SFAS) No. 114,
"Accounting by Creditors for Impairment of a Loan." The adoption
of SFAS No. 114 did not have a material impact on the financial
condition or operating results of the Company. Interest payments
received on impaired loans are applied to principal if there is
doubt as to the collectibility of the principal; otherwise, theses
receipts are recorded as interest income.
As it relates to in-substance foreclosures, SFAS No. 114 requires
that a creditor continue to follow loan classification on the
balance sheet unless the creditor receives physical possession of
the collateral. Accordingly, on January 1, 1995 in-substance
foreclosures totaling $7.1 million were transferred from foreclosed
assets to nonperforming loans and the related reserve for losses of
$.2 million was transferred to the reserve for possible loan
losses. The Company reclassified in-substance foreclosures and the
related reserve for losses for all prior periods to conform to the
new classification requirements.
Note 4 PER SHARE DATA Income per common share is based on the
weighted average number of shares outstanding of 111,129,883 for
the three months ended March 31, 1995, and 110,476,124 for the
three months ended March 31, 1994.
Note 5 STOCK OPTIONS The Company's stock option plans provide
incentive and non-qualified options to various key employees and
non-employee directors to purchase shares of Class A Common Stock
at no less than the fair market value of the stock at the date of
grant. All options granted prior to 1992 became exercisable six
months from the date of grant. The remaining options granted under
the 1987 Stock Option Plan, the Long-Term Incentive Plan and the
1993 Directors' Stock Option Plan become exercisable in the
following increments: 50% after the expiration of two years from
the date of grant, an additional 25% three years from the date of
grant and the remaining 25% four years from the date of grant.
Options granted under the 1987 Stock Option Plan generally expire
10 years from the date granted. Options granted under the Long-
Term Incentive Plan and the 1993 Directors' Stock Option Plan do
not expire unless the holder dies, retires, becomes permanently
disabled or leaves the employ of the Company, at which time the
options expire at various times ranging from 30 to 365 days. All
options vest immediately upon a change in control of the Company.
At March 31, 1995, the number of shares available for grant under
the 1987 Stock Option Plan, the Long-Term Incentive Plan and the
1993 Directors' Stock Option Plan totaled 156,923; 587,932; and
845,000, respectively.
The table below summarizes the activity in the plans during the
first quarter of 1995:
Incentive Non-Qualified
1987 STOCK OPTION PLAN
Outstanding, December 31, 1994 190,741 1,359,694
Exercised - (419)
Outstanding, March 31, 1995 190,741 1,359,275
Exercisable, March 31, 1995 107,948 854,316
LONG-TERM INCENTIVE PLAN
Outstanding, December 31, 1994 12,598 2,518,548
Granted - 1,686,747
Canceled - (61,275)
Issuances - (259,547)
Outstanding, March 31, 1995 12,598 3,884,473
Exercisable, March 31, 1995 - 424,789
Non-qualified stock options outstanding at March 31, 1995 in the
1993 Directors' Stock Option Plan totaled 155,000, none of which
were exercisable. There was no activity in this plan for the first
quarter of 1995.
Note 6 SUBSEQUENT EVENT Effective April 1, 1995, the Company
instituted an employee stock ownership plan (ESOP). The ESOP is
expected to acquire up to $30 million of Hibernia Corporation Class
A Common Stock in open-market purchases.
<PAGE>
<TABLE>
QUARTERLY CONSOLIDATED SUMMARY OF INCOME
AND SELECTED FINANCIAL DATA (1)
Hibernia Corporation and Subsidiaries
<CAPTION>
****************Three Months Ended****************
($ in thousands, except March 31 December 31 March 31
per share data) 1995 1994 1994
<S> <C> <C> <C>
Interest income $117,823 $111,300 $ 99,433
Interest expense 49,910 44,186 34,650
Net interest income 67,913 67,114 64,783
Provision for possible loan losses 0 0 475
Net interest income after provision 67,913 67,114 64,308
Noninterest income:
Noninterest income 23,129 20,767 21,410
Securities gains (losses) 0 (3,479) 162
Noninterest income 23,129 17,288 21,572
Noninterest expense 62,624 67,804 61,629
Income before taxes 28,418 16,598 24,251
Income tax expense 2,059 537 1,135
Net Income $ 26,359 $ 16,061 $ 23,116
Income per common share (2) $ 0.24 $ 0.15 $ 0.21
Cash dividends declared per share (2) $ 0.06 $ 0.06 $ 0.04
Average shares outstanding (000s) 111,130 110,705 110,476
Selected Quarter-End Balances (in millions)
Loans $3,599.4 $3,435.6 $3,034.8
Deposits 5,603.0 5,585.3 5,656.7
Debt 4.8 5.6 28.8
Equity 602.0 565.6 535.8
Total assets 6,502.7 6,424.0 6,542.3
Selected Average Balances (in millions)
Loans $3,549.9 $3,383.0 $2,998.9
Deposits 5,622.1 5,481.2 5,449.5
Debt 4.9 5.7 29.4
Equity 581.1 566.6 538.0
Total assets 6,502.8 6,334.2 6,385.7
Selected Ratios (%)
Return on average assets 1.62 1.01 1.45
Return on average equity 18.14 11.34 17.19
Net interest margin (taxable-equivalent) 4.60 4.63 4.47
Efficiency (3) 67.87 76.07 70.30
Tier 1 risk-based capital 15.48 15.26 15.08
Total risk-based capital 16.76 16.54 16.38
Leverage 9.07 8.93 7.82
(1) All financial information has been restated for mergers accounted for as poolings of interests.
Prior periods have been conformed to current-period presentation.
(2) Income per share is based on the weighted average number of common shares outstanding in the
respective period. Dividends per share are historical amounts.
(3) Noninterest expense as a percentage of taxable equivalent net interest income
plus noninterest income (excluding securities transactions).
</TABLE>
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Management's Discussion presents a review of the major factors and
trends affecting the performance of Hibernia Corporation (the
"Company" or "Hibernia") and its bank subsidiary (the "Bank") and
should be read in conjunction with the accompanying consolidated
financial statements, notes and tables. In addition to Hibernia
National Bank, the Company also owns Zachary Taylor Life Insurance
Company. This wholly owned subsidiary is currently inactive and
the Company has an agreement with the Federal Reserve Bank whereby
the Company will not actively operate this subsidiary as an
insurance company without Federal Reserve Board approval.
Financial data for all periods presented have been restated for
mergers accounted for as poolings of interests.
FIRST-QUARTER 1995 HIGHLIGHTS
Hibernia Corporation's first-quarter 1995 results showed continued
improvement in earnings, along with strong loan growth and improved
efficiency and asset quality.
Net income totaled $26.4 million ($.24 per share), up 14%
from $23.1 million ($.21 per share) in the first quarter of 1994
and up 64% over the $16.1 million ($.15 per share) reported in the
fourth quarter of 1994.
Returns on assets (ROA) and equity (ROE) increased to 1.62%
and 18.14%, respectively, for the first quarter of 1995 compared to
1.45% and 17.19% for the first quarter of 1994 and 1.01% and 11.34%
for the fourth quarter of 1994.
Loans grew $564.6 million (19%) from a year ago to $3.6
billion at March 31, 1995. Consumer loans increased $338.5 million
(26%) to $1.6 billion and commercial loans grew $226.1 million
(13%) to $2.0 billion. Compared to December 31, 1994, loans
increased at an annual rate of 19% as consumer loans grew 24% and
commercial loans grew 15%.
Nonperforming assets declined to $29.5 million, down 64% from
a year ago and down 17% from $35.7 million at the end of 1994.
Nonperforming assets as a percentage of loans plus foreclosed
assets were reduced to .82%, compared to 2.67% at March 31, 1994
and 1.04% at December 31, 1994.
Completed a merger with American Bank (Norco, Louisiana) with
total assets of approximately $89 million on March 1, 1995.
Pending merger activity is summarized below:
<TABLE>
<CAPTION>
Assets @ 3/31/95
Bank Holding Company / Bank (millions) Merger Date
----------------------------- ------------------ -----------
<S> <C> <C>
STABA Bancshares, Inc. / $ 98 May 1, 1995
State Bank and Trust Co.
Progressive Bancorporation, Inc. / $156 Third Quarter 1995 *
Progressive Bank and Trust
Bank of St. John $116 Third Quarter 1995 *
* Estimated. Pending shareholder approval.
</TABLE>
In April, Hibernia's board of directors declared a regular
$.06 per share dividend, a 50% increase per share over the dividend
declared in the first quarter of 1994.
FINANCIAL CONDITION:
EARNING ASSETS
Earning assets averaged $6,056.5 million in the first quarter of
1995, a $83.8 million (1%) increase from the first-quarter 1994
average of $5,972.7 million. Compared to the first quarter of
1994, loans increased $551.0 million (18%) while securities
available for sale decreased $213.9 million (28%), securities held
to maturity decreased $155.9 million (8%) and short-term
investments decreased $97.4 million (37%). This change in the mix
of earning assets is primarily the result of the redeployment of
the proceeds from maturing securities into the loan portfolio. In
the current healthy lending environment, Hibernia has been able to
increase market share by offering quality service and innovative
lending products in historical markets as well as in the markets of
merger partners.
Loans. Average loans for the first quarter of 1995 of $3,549.9
million were up $166.9 million (5%) from the fourth quarter of 1994
and up $551.0 million (18%) compared to the first quarter of 1994.
Table 1 presents the Company's loan portfolio classified according
to industry concentration at March 31, 1995, December 31, 1994 and
March 31,1994. Total loans increased $163.8 million (5%) during
the first quarter of 1995. Commercial loans increased $72.6
million (4%), while consumer loans increased $91.2 million (6%),
primarily due to the continued growth in indirect lending and an
increase in adjustable-rate residential mortgage loans.
table 1 loans 4.62"
Compared to March 31,1994, loans increased $564.6 million (19%) as
consumer loans were up $338.5 million (26%), and commercial loans
increased $226.1 million (13%). Consumer loans comprised 45.6% of
the loan portfolio at March 31, 1995 compared to 42.9% at March 31,
1994. The change in the mix during this period evidences the
Company's strategy of seeking growth in consumer lending while
maintaining preeminence in Louisiana commercial lending.
Securities Available for Sale. Average securities available for
sale decreased $213.9 million (28%) from the first quarter of 1994
to $544.9 million. Securities classified as "available for sale"
are primarily mortgage-backed securities.
Securities Held to Maturity. Average securities held to maturity
for the first quarter of 1995 decreased $155.9 million (8%)
compared to the same period a year ago. The decrease is the result
of the reinvestment of principal received from matured securities
into higher-yielding loans.
Short-Term Investments. Average short-term investments (primarily
federal funds sold and reverse repurchase agreements) for the three
months ended March 31, 1995, decreased $97.4 million (37%) compared
to the first quarter of 1994.
table 2 npab 2.75"
ASSET QUALITY
Table 2 presents a summary of nonperforming assets at the end of
the past five quarters. Table 3 presents a summary of changes in
nonperforming loans for the first quarter of 1995.
Nonperforming assets -- which include nonaccrual loans,
restructured loans and foreclosed assets -- totaled $29.5 million
at March 31, 1995, down 64% compared to $81.4 million at March 31,
1994. Nonperforming loans, which totaled $21.3 million at March
31, 1995, declined $47.0 million (69%) from a year ago. Foreclosed
assets totaled $8.2 million at March 31, 1995, down $5.0 million
(38%) from a year earlier.
As illustrated in Table 3, $6.9 million of the decline in
nonperforming loans in 1995 was due to returns to performing
status. Also, payments on nonperforming loans totaled $3.4
million. As a percentage of total loans plus foreclosed assets,
nonperforming assets at March 31, 1995 improved to .82% from 2.67%
a year ago and 1.04% at year-end 1994.
As of January 1, 1995, the Company adopted Statement of Financial
Accounting Standards (SFAS) No. 114, "Accounting by Creditors for
Impairment of a Loan," which, as it relates to in-substance
foreclosures, requires that a creditor receives physical possession
of the collateral. Accordingly, upon adoption, $7.1 million of in-
substance foreclosures were transferred from foreclosed assets to
nonperforming loans and related loss reserves of $.2 million were
transferred to the reserve for possible loan losses. The Company
reclassified in-substance foreclosures and related loss reserves
for all prior periods to conform to the new classification
requirements. At March 31, 1995, the recorded investment in loans
that were considered to be impaired under SFAS No. 114 was $20.1
million. The related reserve for possible loan losses was $1.9
million. These loans are included in nonaccrual loans in table 2.
table 3 npaa 2.375"
In addition to the nonperforming assets discussed above,
management has identified other commercial loans for which payments
are current that are subject to potential future classification as
nonperforming. As of March 31, 1995, these loans totaled $6.8
million, compared to $53.0 million at March 31, 1994 and $12.0
million at year-end 1994.
RESERVE AND PROVISION FOR POSSIBLE LOAN LOSSES
The Company recorded no provision for possible loan losses for
the first quarter of 1995 compared to a provision of $.5 million
for the same period in 1994. The absence of a provision was the
result of continued improvement in asset quality, evidenced by
declines in net charge-offs and lower levels of nonperforming
loans. With the declining level of nonperforming loans and low net
charge-offs, the reserve coverage continued to strengthen. The
reserve for possible loan losses as a percentage of nonperforming
loans increased to 702% at March 31, 1995, compared to 263% a year
ago, and 555% at December 31, 1994.
Net charge-offs totaling $.2 million were recorded in the
first quarter of 1995, compared to $.5 million in the first quarter
of 1994. As a percentage of average loans, annualized net charge-
offs were .02% for the first quarter of 1995 compared to .06% for
the same quarter in 1994.
The reserve for possible loan losses totaled $149.4 million,
or 4.2% of total loans, at March 31, 1995, compared to $179.5
million, or 5.9%, a year earlier. Even though the reserve for
possible loan losses has been declining over the last five
quarters, in terms of both dollar amounts and as a percentage of
loans, the present level is considered adequate to absorb future
potential loan losses. In making this determination, management
considered the significant improvements in asset quality discussed
earlier, and the reduced levels of net loan charge-offs, as well as
current economic conditions and market trends. Because factors
such as loan growth and the future collectibility of loans are
uncertain, the level of future provisions (positive or negative),
if any, cannot be predicted. Table 4 presents an analysis of the
activity in the reserve for possible loan losses for the first
quarters of 1995 and 1994.
table 4 rlls 2.875"
FUNDING SOURCES:
DEPOSITS AND BORROWINGS
Deposits. Average deposits totaled $5,622.1 million in the
first quarter of 1995, a $172.6 million (3%) increase from the
first quarter of 1994. Average core deposits were up $85.9 million
(2%) due to increases in NOW and consumer time deposits, partially
offset by a moderate decrease in money market deposit accounts as
rising rates made these accounts less competitive with other
investment products. Hibernia's OneWay certificates of deposit
more than doubled in the last year totaling $727.5 million at March
31, 1995. These certificates of deposit allow customers to lock-in
attractive current yields and also provide a one-time option to
adjust the rate at any time during the two-year term. The OneWay
CD enabled Hibernia to retain much of the funds leaving money
market deposit accounts and attract new funds. Noncore deposits
increased $86.7 million (11%) from the first quarter of 1994 as
public fund certificates of deposit increased $80.8 million and
foreign time deposits increased $26.4 million, while other large
denomination certificates of deposits decreased $20.5 million.
Table 5 presents the composition of average deposits for the
first quarter of 1995 and the fourth and first quarters of 1994.
table 5
Borrowings. Average borrowings (which include federal funds
purchased, securities sold under agreements to repurchase and debt)
decreased $17.2 million to $174.4 million for the first quarter of
1995 compared to the first quarter of 1994. The decrease resulted
from a $24.5 million reduction in long-term debt. This reduction
is the result of the Company's practice of retiring debt acquired
through mergers if the terms of such debt are not favorable. The
Company's long-term debt at March 31, 1995 is comprised primarily
of Federal Home Loan Bank of Dallas advances totaling $3.6 million
obtained to fund specific loans. The Company maintains a $25
million line of credit from the Federal Home Loan Bank of Dallas as
one tool in managing interest rate risk and liquidity.
INTEREST RATE SENSITIVITY
The primary objective of asset/liability management is controlling
interest rate risk. On a monthly basis, management monitors the
sensitivity of net interest income to changes in interest rates
through methods that include simulation and gap reports, and
attempts to optimize the asset/liability mix to minimize the impact
of significant rate movements within a broad range of interest rate
scenarios. Management may alter the mix of floating- and fixed-
rate assets and liabilities, change pricing schedules and enter
into derivative contracts as a means of limiting interest rate
risk. On a limited basis, the Company has entered into interest
rate swap, forward and option contracts to hedge interest rate risk
on specific assets and liabilities. The total notional amount of
these contracts at March 31, 1995 was $15.0 million.
Derivative financial instruments are also held or issued by
the Company for trading purposes to provide Hibernia customers the
ability to manage their own interest rate risk. In general,
matched trading positions are established to minimize risk to the
Company. The notional value of these instruments totaled $293.4
million with no net current exposure at March 31, 1995.
table 6
RESULTS OF OPERATIONS:
NET INTEREST INCOME
Taxable-equivalent net interest income for the three months
ended March 31, 1995, totaled $69.1 million, a $2.9 million
increase from the same period in 1994 and a $.8 million increase
from the fourth quarter of 1994. Factors contributing to these
increases were the positive effect of the change in the mix of
earning assets from lower-yielding investments to loans (58.6% of
average earning assets in the first quarter of 1995 compared to
50.2% in the first quarter of 1994); the higher value of Hibernia's
net noninterest bearing funds (demand deposits, other liabilities
and equity net of nonearning assets); overall growth in earning
assets; interest income realized on loans previously charged-off;
and higher yields on securities and loans. These factors were
partially offset by higher rates paid on deposits, the shift of
deposits discussed above from lower rate money market deposits into
certificates of deposits, and a small decrease in noninterest
bearing deposits. Increases in earning asset yields have kept pace
with increases in the cost of funds in the current rising interest
rate environment. However, the spread between the yield on earning
assets and the average rate paid on interest-bearing liabilities
may continue to experience pressure as funding costs continue to
increase with market rates.
table 7
The net interest margin was 4.60% for the first quarter of
1995 compared to 4.47% in the first quarter of 1994 and 4.63% in
the fourth quarter of 1994. The net interest margin has remained
relatively stable over the past four quarters despite pressure on
interest spreads as the value of Hibernia's noninterest-bearing
funds has increased in the current rising rate environment. Table
6 details the net interest margin for the most recent five
quarters.
Table 7 presents an analysis of the Company's taxable-
equivalent net interest income and average balance sheets for the
three months ended March 31, 1995, December 31, 1994 and March 31,
1994. Table 8 presents an analysis of changes in taxable-
equivalent net interest income between the first quarter of 1995
and the fourth quarter of 1994 and between the first quarter of
1995 and the first quarter of 1994.
Table 8
NONINTEREST INCOME
Noninterest income for the first quarter of 1995 was up $1.6
million (7%) to $23.1 million compared to the same period of 1994.
The major categories of noninterest income for the three months
ended March 31, 1995 and the comparable period in 1994 are
presented in Table 9.
Other service, collection and exchange fees were up $.5
million (9%) primarily due to significant growth in fees generated
by the Bank's upgraded and expanded ATM network. This increase was
partially offset by a decline in retail investment service income
as rising rates on bank certificates of deposit made the fixed
annuity products offered by the Company less attractive. Other
income rose $1.3 million (45%) primarily due to a $2.4 million gain
related to the divestiture of three banking offices in Northwest
Louisiana in connection with Hibernia's merger with Pioneer
Bancshares Corporation. This increase was partially offset by
declines in gains from the sale of mortgage loans and decreases in
income from computer services provided to third parties.
There were no securities gains in the first quarter of 1995
compared to $.2 million in gains for the first quarter of 1994.
table 9
NONINTEREST EXPENSE
For the first quarter of 1995, noninterest expense totaled
$62.6 million, a $1.0 million (2%) increase from the first quarter
of 1994. Noninterest expense for the three months ended March 31,
1995 and March 31, 1994, is presented by major category in Table
10.
Staff costs, the largest component of noninterest expense,
increased $.5 million (2%) for the quarter compared to the same
period a year ago. Pay increases, severance costs and management
incentive programs based on the Company's profitability were
partially offset by decreases due to efficiencies achieved related
to merger activities.
Equipment expenses increased $.7 million (19%) due to higher
depreciation expenses related to the purchase of computer equipment
to facilitate mergers and to upgrade the Company's teller systems
and ATM network.
Data processing expenses increased $.2 million (3%) in the
first quarter of 1995 compared to the same period a year ago.
Hibernia completed its conversion to a new data processor during
the first quarter of 1995 resulting in approximately $1.0 million
in duplicate expenses.
Income from foreclosed property, net of expenses, totaled $.3
million in the first quarter of 1995, compared to $3.7 million for
the same period a year ago as the first quarter of 1994 included
several gains related to the sale of foreclosed assets.
Deposit insurance premiums decreased $.2 million (7%) in the
first quarter of 1995 compared to the same period a year ago.
Computed under the risk-based premium system, the deposit insurance
premium declined because of reductions in the assessment rate used
in the calculation of the premiums. These reductions reflect the
Bank's improved rating from the Office of the Comptroller of the
Currency.
Postage rose by more than 25% due to increased mailings
related to mergers and the postal rate increase which became
effective January 1, 1995.
Telecommunications expenses increased 126% as Hibernia built
and outsourced the operation of its own wide area network instead
of using the network of its data processing provider. In addition,
data line expenses related to its enhanced ATM network also
increased telecommunications expenses.
State taxes on equity increased $.3 million (47%) due to the
increased level of equity resulting from Hibernia's earnings over
the past 12 months. Advertising and promotional expenses rose
because of merger-related marketing efforts and a general increase
in advertising and product development. Other noninterest expenses
decreased $5.1 million (47%) to $5.7 million as amortization of
intangibles decreased $.6 million (40%) due to the lower level of
intangibles as the result of the writeoff of impaired goodwill in
the third quarter of 1994.
The Company's efficiency ratio, defined as noninterest expense
as a percentage of taxable-equivalent net interest income plus
noninterest income (excluding securities transactions), was 67.87%
for the first quarter of 1995 compared to 70.30% for the same
period in 1994. The improvement in efficiency reflects continued
cost control efforts and increases in net interest income and
noninterest income. The Company expects this ratio to decline
further in future periods. The declines are expected to result
from achievement of cost efficiencies contemplated in completed and
pending mergers, enhancement of noninterest revenue sources and
increased net interest income derived from improved asset quality
and a more advantageous earning asset mix.
table 10
INCOME TAXES
The Company recorded a $2.1 million provision for income taxes
in the first quarter of 1995 compared to $1.1 million for the first
quarter of 1994. During the first quarter of 1995, the Company
recorded federal income taxes at a lower-than-normal effective tax
rate due to previously unrecognized deferred tax benefits.
Hibernia will recognize federal income tax expense throughout 1995,
but at an estimated annual effective tax rate significantly less
than the statutory tax rate.
The Bank is subject to a Louisiana shareholder tax based
partly on income. The income portion of this tax is recorded as
state income tax. In addition, certain subsidiaries of the Company
and the Bank are subject to Louisiana state income tax.
CAPITAL
Shareholders' equity totaled $602.0 million at March 31, 1995,
compared to $535.8 million at March 31, 1994. The increase is
primarily the result of net income over the most recent 12 months
totaling $89.8 million, partially offset by $22.0 million in
dividends and a $6.3 million increase in unrealized losses on
securities available for sale. Risk-based capital and leverage
ratios for the Company and the Bank exceed the ratios required for
designation as a "well-capitalized" institution under regulatory
guidelines. Table 11 presents these ratios for the Company and the
Bank for the most recent five quarters.
table 11
LIQUIDITY
The Company's loan-to-deposit ratio, one measure of liquidity,
was 64.2% at March 31, 1995 compared to 61.5% at December 31, 1994
and 53.6% at March 31, 1994. Management believes that current and
projected levels of short-term investments and securities available
for sale are adequate to meet the Company's liquidity needs. The
Company's continuing improvement in certificate of deposit ratings
enhances its ability to raise funds in the open market. In
addition, membership in the Federal Home Loan Bank of Dallas
further enhances liquidity management by providing a readily
accessible source of funds such as the $25 million line of credit
previously discussed.
<TABLE>
TABLE 1 - COMPOSITION OF LOAN PORTFOLIO
<CAPTION>
March 31, 1995 December 31, 1994 March 31, 1994
Loans Percent Loans Percent Loans Percent
($ in millions) Outstanding of Total Outstanding of Total Outstanding of Total
<S> <C> <C> <C> <C> <C> <C>
Commercial:
Commercial and
industrial $ 656.2 18.2 % $ 611.6 17.8 % $ 465.3 15.3 %
Commercial real estate 449.9 12.5 461.0 13.4 486.2 16.0
Services 297.3 8.3 291.3 8.5 289.8 9.6
Health care 218.3 6.1 214.7 6.3 233.1 7.7
Transportation,
communications
and utilities 148.5 4.1 114.8 3.4 110.5 3.7
Individual 96.5 2.7 97.4 2.8 91.2 3.0
Energy 90.9 2.5 94.2 2.7 55.4 1.8
Total commercial 1,957.6 54.4 1,885.0 54.9 1,731.5 57.1
Consumer:
Residential mortgages:
1st mortgages 696.5 19.3 650.5 18.9 616.8 20.3
Junior liens 78.1 2.2 81.0 2.4 90.0 3.0
Indirect 535.1 14.9 486.0 14.1 337.0 11.1
Student 100.4 2.8 92.7 2.7 72.4 2.4
Revolving credit 75.3 2.1 73.4 2.1 55.2 1.8
Other 156.4 4.3 167.0 4.9 131.9 4.3
Total consumer 1,641.8 45.6 1,550.6 45.1 1,303.3 42.9
Total loans $3,599.4 100.0 % $3,435.6 100.0 % $3,034.8 100.0 %
</TABLE>
<TABLE>
TABLE 2 - NONPERFORMING ASSETS
<CAPTION>
March 31 Dec. 31 Sept. 30 June 30 March 31
($ in thousands) 1995 1994 1994 1994 1994
<S> <C> <C> <C> <C> <C>
Nonaccrual loans $ 21,274 $ 20,959 $ 28,738 $ 50,004 $ 66,851
Restructured loans - 6,024 4,706 1,005 1,438
Total nonperforming loans 21,274 26,983 33,444 51,009 68,289
Foreclosed assets 8,186 8,688 11,071 12,515 13,152
Total nonperforming assets $ 29,460 $ 35,671 $ 44,515 $ 63,524 $ 81,441
Accruing loans past due
90 days or more $ 2,923 $ 3,725 $ 2,371 $ 3,677 $ 5,508
Reserve for possible loan losses $149,441 $149,644 $158,411 $178,610 $179,525
Nonperforming assets as a percentage
of loans plus foreclosed assets 0.82 % 1.04 % 1.33 % 1.99 % 2.67 %
Reserve for possible loan losses as a
percentage of nonperforming loans 702.46 % 554.59 % 473.66 % 350.15 % 262.89 %
</TABLE>
<TABLE>
TABLE 3 - SUMMARY OF NONPERFORMING LOAN ACTIVITY
<CAPTION>
Three Months
Ended March 31
($ in thousands) 1995
<S> <C>
Nonperforming loans
at beginning of period $ 26,983
Additions 5,832
Charge-offs, gross (1,269)
Returns to performing status (6,884)
Sales -
Payments (3,388)
Nonperforming loans
at end of period $ 21,274
</TABLE>
<TABLE>
TABLE 4 - RESERVE FOR POSSIBLE LOAN LOSSES ACTIVITY
<CAPTION>
Three Months Three Months
Ended March 31 Ended March 31
($ in thousands) 1995 1994
<S> <C> <C>
Balance at beginning of period $149,644 $173,420
Loans charged off (5,587) (3,444)
Recoveries 5,384 2,970
Net loans charged off (203) (474)
Provision for possible loan losses - 475
Net activity related to
in-substance foreclosures - 6,104
Balance at end of period $149,441 $179,525
Reserve for possible loan losses
as a percentage of loans 4.15 % 5.92 %
Annualized net charge-offs as a
percentage of average loans 0.02 % 0.06 %
</TABLE>
<TABLE>
TABLE 5 - DEPOSIT COMPOSITION
<CAPTION>
First Quarter 1995 Fourth Quarter 1994 First Quarter 1994
Average % of Average % of Average % of
($ in millions) Balances Deposits Balances Deposits Balances Deposits
<S> <C> <C> <C> <C> <C> <C>
Demand, noninterest-bearing $1,012.3 18.0 % $ 994.3 18.2 % $1,021.6 18.7 %
NOW accounts 652.2 11.6 609.1 11.1 627.1 11.5
Money market deposit accounts 1,006.9 17.9 1,068.1 19.5 1,120.9 20.6
Savings accounts 303.3 5.4 313.1 5.7 329.8 6.1
Other consumer time deposits 1,780.6 31.7 1,692.9 30.9 1,570.0 28.8
Total core deposits 4,755.3 84.6 4,677.5 85.4 4,669.4 85.7
Public fund certificates of
deposit of $100,000 or more 670.5 11.9 619.1 11.3 589.7 10.8
Certificates of deposit of
$100,000 or more 160.8 2.9 160.4 2.9 181.3 3.3
Foreign time deposits 35.5 0.6 24.2 0.4 9.1 0.2
Total deposits $ 5,622.1 100.0 % $ 5,481.2 100.0 % $ 5,449.5 100.0 %
</TABLE>
<TABLE>
TABLE 6 - NET INTEREST MARGIN (taxable-equivalent)
<CAPTION>
1995 ***********************1994************************
First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter
<S> <C> <C> <C> <C> <C>
Yield on earning assets 7.95 % 7.60 % 7.34 % 7.03 % 6.82 %
Rate on interest-bearing liabilities 4.23 3.77 3.46 3.15 3.04
Net interest spread 3.72 3.83 3.88 3.88 3.78
Contribution of
noninterest-bearing funds 0.88 0.80 0.73 0.67 0.69
Net interest margin 4.60 % 4.63 % 4.61 % 4.55 % 4.47 %
Noninterest-bearing funds
supporting earning assets 21.01 % 21.36 % 21.11 % 21.30 % 22.66 %
</TABLE>
<TABLE>
TABLE 7 - CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES (1)
Taxable-equivalent basis (2)
<CAPTION>
First Quarter 1995 Fourth Quarter 1994
(Average balances $ in millions, Average Average
interest $ in thousands) Balances Interest Rate Balances Interest Rate
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Interest-earning assets:
Loans (3) $3,549.9 $ 80,634 9.21 % $3,383.0 $ 75,882 8.90 %
Securities available for sale (4) 544.9 9,119 6.69 611.5 9,965 6.52
Securities held to maturity 1,797.9 26,922 6.01 1,766.0 24,735 5.66
Short-term investments 163.8 2,371 5.87 147.9 1,972 5.29
Total interest-earning assets 6,056.5 $119,046 7.95 % 5,908.4 $112,554 7.60 %
Reserve for possible loan losses (149.1) (155.7)
Noninterest-earning assets:
Cash (excluding items in process of collection) 152.7 157.4
Items in process of collection 142.1 129.2
Other assets 300.6 294.9
Total noninterest-earning assets 595.4 581.5
Total assets $6,502.8 $6,334.2
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Interest-bearing deposits:
NOW accounts $ 652.2 $ 3,469 2.16 % $ 609.1 $ 2,943 1.92 %
Money market deposit accounts 1,006.9 7,073 2.85 1,068.1 7,348 2.73
Savings accounts 303.3 1,650 2.21 313.1 1,675 2.12
Other consumer time deposits 1,780.6 23,357 5.32 1,692.9 20,541 4.81
Public fund certificates of deposits
of $100,000 or more 670.5 9,717 5.88 619.1 7,949 5.09
Certificates of deposits of $100,000 or more 160.8 1,997 5.04 160.4 1,698 4.20
Foreign time deposits 35.5 485 5.54 24.2 331 5.44
Total interest-bearing deposits 4,609.8 47,748 4.20 4,486.9 42,485 3.76
Short-term borrowings 169.5 2,087 4.99 153.6 1,610 4.16
Debt 4.9 75 6.13 5.7 91 6.31
Total interest-bearing liabilities 4,784.2 $ 49,910 4.23 % 4,646.2 $ 44,186 3.77 %
Noninterest-bearing liabilities:
Demand deposits 1,012.3 994.3
Other liabilities 125.2 127.1
Total noninterest-bearing liabilities 1,137.5 1,121.4
Total shareholders' equity 581.1 566.6
Total liabilities and shareholders' equity $6,502.8 $6,334.2
SPREAD AND NET YIELD
Interest rate spread 3.72 % 3.83 %
Cost of funds supporting interest-earning assets 3.35 % 2.97 %
Net interest income/margin $ 69,136 4.60 % $ 68,368 4.63 %
(1) All financial information has been restated for mergers accounted for as poolings of interests.
(2) Based on the statutory income tax rate of 35%.
(3) Excludes unearned income. Yield computations include nonaccrual loans in loans outstanding.
(4) Yield computations are based on book values of securities available for sale.
</TABLE>
<TABLE>
TABLE 7 - CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES (1)
Taxable-equivalent basis (2)
<CAPTION>
First Quarter 1995 First Quarter 1994
(Average balances $ in millions, Average Average
interest $ in thousands) Balances Interest Rate Balances Interest Rate
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Interest-earning assets:
Loans (3) $3,549.9 $ 80,634 9.21 % $2,998.9 $ 62,532 8.46 %
Securities available for sale (4) 544.9 9,119 6.69 758.8 9,242 4.87
Securities held to maturity 1,797.9 26,922 6.01 1,953.8 27,041 5.56
Short-term investments 163.8 2,371 5.87 261.2 2,088 3.25
Total interest-earning assets 6,056.5 $119,046 7.95 % 5,972.7 $100,903 6.82 %
Reserve for possible loan losses (149.1) (180.5)
Noninterest-earning assets:
Cash (excluding items in process of collection) 152.7 178.6
Items in process of collection 142.1 110.1
Other assets 300.6 304.8
Total noninterest-earning assets 595.4 593.5
Total assets $6,502.8 $6,385.7
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing liabilities:
Interest-bearing deposits:
NOW accounts $ 652.2 $ 3,469 2.16 % $ 627.1 $ 2,459 1.59 %
Money market deposit accounts 1,006.9 7,073 2.85 1,120.9 6,572 2.38
Savings accounts 303.3 1,650 2.21 329.8 1,604 1.97
Other consumer time deposits 1,780.6 23,357 5.32 1,570.0 15,676 4.05
Public fund certificates of deposits of
$100,000 or more 670.5 9,717 5.88 589.7 4,848 3.33
Certificates of deposits of $100,000 or more 160.8 1,997 5.04 181.3 1,504 3.36
Foreign time deposits 35.5 485 5.54 9.1 70 3.13
Total interest-bearing deposits 4,609.8 47,748 4.20 4,427.9 32,733 3.00
Short-term borrowings 169.5 2,087 4.99 162.2 1,182 2.96
Debt 4.9 75 6.13 29.4 735 10.14
Total interest-bearing liabilities 4,784.2 $ 49,910 4.23 % 4,619.5 $ 34,650 3.04 %
Noninterest-bearing liabilities:
Demand deposits 1,012.3 1,021.6
Other liabilities 125.2 206.6
Total noninterest-bearing liabilities 1,137.5 1,228.2
Total shareholders' equity 581.1 538.0
Total liabilities and shareholders' equity $6,502.8 $6,385.7
SPREAD AND NET YIELD
Interest rate spread 3.72 % 3.78 %
Cost of funds supporting interest-earning assets 3.35 % 2.35 %
Net interest income/margin $ 69,136 4.60 % $ 66,253 4.47 %
(1) All financial information has been restated for mergers accounted for as poolings of interests.
(2) Based on the statutory income tax rate of 35%.
(3) Excludes unearned income. Yield computations include nonaccrual loans in loans outstanding.
(4) Yield computations are based on book values of securities available for sale.
</TABLE>
<TABLE>
TABLE 8 - CHANGES IN TAXABLE-EQUIVALENT NET INTEREST INCOME (1)
<CAPTION>
First Quarter 1995 Compared to:
Fourth Quarter 1994 First Quarter 1994
Increase (Decrease) Due to Change In:
Volume Rate Total Volume Rate Total
<S> <C> <C> <C> <C> <C> <C>
Taxable-equivalent
interest earned on:
Loans $ 3,782 $ 970 $ 4,752 $12,181 $ 5,921 $18,102
Securities available for sale (1,108) 262 (846) (3,024) 2,901 (123)
Securities held to maturity 453 1,734 2,187 (2,245) 2,126 (119)
Short-term investments 223 176 399 (977) 1,260 283
Total 3,350 3,142 6,492 5,935 12,208 18,143
Interest paid on:
NOW accounts 217 309 526 102 908 1,010
Money market
deposit accounts (427) 152 (275) (713) 1,214 501
Savings accounts (53) 28 (25) (135) 181 46
Other consumer time deposits 1,099 1,717 2,816 2,301 5,380 7,681
Public fund certificates of
deposit of $100,000 or more 693 1,075 1,768 741 4,128 4,869
Certificates of deposit
of $100,000 or more 3 296 299 (186) 679 493
Foreign deposits 154 0 154 328 87 415
Short-term borrowings 178 299 477 56 849 905
Long-term debt (12) (4) (16) (448) (212) (660)
Total 1,852 3,872 5,724 2,046 13,214 15,260
Taxable-equivalent
net interest income $ 1,498 $ (730) $ 768 $ 3,889 $(1,006) $ 2,883
(1) Change due to mix (both rate and volume) has been allocated to volume and rate changes in proportion to
the relationship of the absolute dollar amounts to the changes in each.
</TABLE>
<TABLE>
TABLE 9 - NONINTEREST INCOME
<CAPTION>
Three Months Ended Percentage
March 31 March 31 Increase
($ in thousands) 1995 1994 (Decrease)
<S> <C> <C> <C>
Trust fees $ 2,821 $ 3,046 (7)%
Service charges on deposits 10,275 10,132 1
Other service, collection and
exchange charges:
Mortgage loan servicing income 1,884 1,892 -
ATM fees 1,022 479 113
Retail investment service income 1,552 1,766 (12)
Other 1,369 1,203 14
Total other service collection and
exchange charges 5,827 5,340 9
Other income:
Gain on divestiture of banking offices 2,361 - -
Other income 1,845 2,892 (36)
Total other income 4,206 2,892 45
Securities gains (losses), net - 162 (100)
Total Noninterest Income $ 23,129 $ 21,572 7 %
</TABLE>
<TABLE>
TABLE 10 - NONINTEREST EXPENSE
<CAPTION>
Three Months Ended Percentage
March 31 March 31 Increase
($ in thousands) 1995 1994 (Decrease)
<S> <C> <C> <C>
Salaries $24,883 $23,899 4 %
Benefits 4,681 5,179 (10)
Total staff costs 29,564 29,078 2
Occupancy, net 5,887 6,066 (3)
Equipment 4,250 3,559 19
Total occupancy and equipment 10,137 9,625 5
Data processing 5,326 5,146 3
Foreclosed property expense, net (262) (3,710) 93
Deposit insurance and
examination fees 3,335 3,574 (7)
Postage 1,254 994 26
Stationery and supplies 1,424 1,301 9
Telecommunications 1,606 712 126
Professional fees 2,046 2,190 (7)
State taxes on equity 1,089 742 47
Advertising and promotional expenses 1,450 1,248 16
Other 5,655 10,729 (47)
Total Noninterest Expense $62,624 $61,629 2 %
Efficiency ratio (1) 67.87 % 70.30 %
(1) Noninterest expense as a percentage of taxable-equivalent net interest income plus noninterest
income (excluding securities transactions).
</TABLE>
<TABLE>
TABLE 11 - QUARTERLY SELECTED CAPITAL RATIOS
<CAPTION>
March 31 Dec. 31 Sept. 30 June 30 March 31
1995 1994 1994 1994 1994
<S> <C> <C> <C> <C> <C>
Hibernia Corporation
Risk-based capital:
Tier 1 risk-based capital ratio 15.48 % 15.26 % 15.42 % 15.04 % 15.08 %
Total risk-based capital ratio 16.76 % 16.54 % 16.73 % 16.46 % 16.38 %
Leverage ratio 9.07 % 8.93 % 8.74 % 8.12 % 7.82 %
Hibernia National Bank
Risk-based capital:
Tier 1 risk-based capital ratio 14.24 % 14.37 % 14.35 % 14.78 % 14.71 %
Total risk-based capital ratio 15.52 % 15.65 % 15.64 % 16.08 % 16.01 %
Leverage ratio 8.37 % 8.41 % 8.15 % 7.97 % 7.63 %
</TABLE>
<PAGE>
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
(b) Reports on Form 8-K
A report on Form 8-K dated January 27, 1995, was filed by the registrant
reporting Item 5 Other Events.
A report on Form 8-K dated February 15, 1995, was filed by the registrant
reporting Item 2 Acquisition of Assets.
A report on Form 8-K dated March 2, 1995, was filed by the registrant
reporting Item 5 Other Events.
A report on Form 8-K dated March 20, 1995, was filed by the registrant
reporting Item 5 Other Events.
<PAGE>
SIGNATURES
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 thereunto duly authorized to sign on behalf of the registrant.
HIBERNIA CORPORATION
(Registrant)
Date: May 15, 1995 By: /s/ Ron E. Samford, Jr.
Ron E. Samford, Jr.
Executive Vice President and
Controller (principal
accounting officer)
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1000
<CURRENCY> U.S. DOLLARS
<S> <C> <C> <C>
<PERIOD-TYPE> 3-MOS YEAR 3-MOS
<PERIOD-END> MAR-31-1995 DEC-31-1994 MAR-31-1994
<EXCHANGE-RATE> 1 1 1
<CASH> 279,471 359,483 338,762
<INT-BEARING-DEPOSITS> 195 224 152
<FED-FUNDS-SOLD> 83,535 192,986 350,121
<TRADING-ASSETS> 0 0 2,167
<INVESTMENTS-HELD-FOR-SALE> 546,360 539,570 717,978
<INVESTMENTS-CARRYING> 1,850,267 1,753,952 1,979,085
<INVESTMENTS-MARKET> 1,821,092 1,685,096 1,938,159
<LOANS> 3,599,398 3,435,599 3,034,827
<ALLOWANCE> 149,441 149,644 179,525
<TOTAL-ASSETS> 6,502,662 6,424,040 6,542,266
<DEPOSITS> 5,602,968 5,585,320 5,656,740
<SHORT-TERM> 192,986 159,105 192,945
<LIABILITIES-OTHER> 99,930 108,329 128,014
<LONG-TERM> 4,815 5,650 28,796
<COMMON> 213,597 213,399 212,174
0 0 0
0 0 0
<OTHER-SE> 388,366 352,237 323,597
<TOTAL-LIABILITIES-AND-EQUITY> 6,502,662 6,424,040 6,542,266
<INTEREST-LOAN> 79,570 272,391 61,631
<INTEREST-INVEST> 35,883 142,212 35,715
<INTEREST-OTHER> 2,370 6,841 2,087
<INTEREST-TOTAL> 117,823 421,444 99,433
<INTEREST-DEPOSIT> 47,748 148,354 32,734
<INTEREST-EXPENSE> 49,910 156,135 34,650
<INTEREST-INCOME-NET> 67,913 265,309 64,783
<LOAN-LOSSES> 0 (17,601) 475
<SECURITIES-GAINS> 0 3,652 162
<EXPENSE-OTHER> 62,624 274,949 61,629
<INCOME-PRETAX> 28,418 86,571 23,116
<INCOME-PRE-EXTRAORDINARY> 26,359 90,754 24,251
<EXTRAORDINARY> 0 0 0
<CHANGES> 0 0 0
<NET-INCOME> 26,359 86,571 23,116
<EPS-PRIMARY> .24 .15 .21
<EPS-DILUTED> .24 .15 .21
<YIELD-ACTUAL> 4.60 4.63 4.47
<LOANS-NON> 21,274 20,959 66,851
<LOANS-PAST> 2,923 3,725 5,508
<LOANS-TROUBLED> 0 6,024 1,438
<LOANS-PROBLEM> 6,695 11,976 53,000
<ALLOWANCE-OPEN> 149,644 173,420 173,420
<CHARGE-OFFS> 5,587 23,936 3,444
<RECOVERIES> 5,384 17,521 2,970
<ALLOWANCE-CLOSE> 149,441 149,644 179,525
<ALLOWANCE-DOMESTIC> 149,441 149,644 179,525
<ALLOWANCE-FOREIGN> 0 0 0
<ALLOWANCE-UNALLOCATED> 57,100 36,700 39,800
</TABLE>
