<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) July 20, 1999
-----------------------------
NORTHERN TRUST CORPORATION
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware
- --------------------------------------------------------------------------------
(State or other jurisdiction of incorporation)
0-5965 36-2723087
--------------------------------- ----------------------------------
(Commission File Number) (IRS Employer Identification No.)
Fifty South LaSalle Street, Chicago, Illinois 60675
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (312) 630-6000
---------------------------
<PAGE>
Item 5. Other Events
The information contained in the registrant's July 19, 1999 press release,
reporting on the registrant's earnings for the second quarter of 1999, a copy of
which is filed as Exhibit 99 hereto, is incorporated herein by reference.
Item 7. Financial Statements and Exhibits
(c) Exhibits:
Exhibit 99 July 19, 1999 Press Release
-2-
<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 thereunto duly authorized.
NORTHERN TRUST CORPORATION
--------------------------
(Registrant)
Dated: July 20, 1999 By: Perry R. Pero
-------------
Perry R. Pero
Senior Executive Vice President
and Chief Financial Officer
-3-
<PAGE>
EXHIBIT INDEX
-------------
Number Description Page Number
- ------ ----------- -----------
99 July 19, 1999 Press Release 5
-4-
<PAGE>
Exhibit 99
- --------------------------------------------------------------------------------
NEWS RELEASE
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Northern Trust Corporation
50 South LaSalle Street
Chicago, Illinois 60675
Contact: Laurie McMahon, Investor Relations
(312) 444-7811 or
Dianne Kotsogiannis, Public Relations
Release #01489 (312) 444-4281 http://www.northerntrust.com
- --------------------------------------------------------------------------------
FOR IMMEDIATE RELEASE
- ---------------------
NORTHERN TRUST CORPORATION REPORTS RECORD 1999 SECOND QUARTER EARNINGS OF $.86
PER SHARE, UP 15%.
(Chicago, July 19, 1999) Northern Trust Corporation reported record net income
per share of $.86 for the second quarter, an increase of 15% from the $.75
earned a year ago. Net income increased 14% to a record $99.7 million from the
$87.2 million earned in the second quarter of last year. This performance
resulted in a return on average common equity of 20.6%.
William A. Osborn, Chairman and Chief Executive Officer, commented, "The
earnings momentum with which we started 1999 built further in the second
quarter. Trust fee growth of 17%, driven by strong new business and a favorable
U.S. stock market, fueled an 11% increase in total revenues. We achieved
positive operating leverage in the second quarter because of strong revenue
growth combined with effective expense management. Earnings per share increased
15%, well above our minimum goal of 10%, the return on average common equity of
20.6% exceeded our 18-20% target range for the ninth consecutive quarter, and
the productivity ratio of 161% exceeded our 160% target for this key measure.
Mr. Osborn continued, "Our positive outlook for the balance of 1999 is
bolstered by our exceptional success in winning new business during the first
half of the year."
<PAGE>
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SECOND QUARTER PERFORMANCE HIGHLIGHTS
Revenues increased 11% to $438.1 million. Trust fees grew 17% to a record
$236.2 million in the quarter compared to $202.3 million in the second quarter
of last year, representing 54% of total revenues and 78% of noninterest income.
Trust assets under administration have grown 11% to $1.34 trillion since June
30, 1998, with assets under management increasing 13% to $258.6 billion.
Trust fees from Personal Financial Services (PFS) in the quarter increased
21% and totaled $116.8 million compared to $96.8 million in the year-ago
quarter. The increase resulted primarily from continued strong new business
throughout Northern Trust's national PFS network and from favorable equity
markets. All states recorded double-digit increases in trust fees, with Florida,
Arizona and Texas each up 20% or more. The Wealth Management Group also had
excellent performance, with trust fees increasing 19%. Wealth Management now
administers $40.7 billion in assets nationwide, up 25% from last year.
With the opening of three new offices during the second quarter - in
Hinsdale, Illinois, Marin County, California and Lakewood Ranch, Florida -
Northern Trust's network of Personal Financial Services offices now includes 72
locations in seven states. Total personal trust assets under administration
increased to $131.0 billion at June 30, 1999, up 19% from June 30, 1998 and 8%
from December 31, 1998. Of these assets under administration, $79.6 billion is
managed by Northern Trust, up 19% from June 30, 1998.
Trust fees from Corporate & Institutional Services (C&IS) in the quarter
increased 13% and totaled $119.4 million compared to $105.5 million in the year-
ago quarter, reflecting strong new business. C&IS trust fees are derived from a
full range of custody, investment and advisory services rendered to retirement
and other asset pools of corporate and institutional clients worldwide, and all
of these services contributed to the second quarter fee growth. Fees from asset
management increased 19% to $35.9 million. Excellent new business results drove
fees generated by Northern Trust Retirement Consulting, L.L.C. up 34% to $11.4
million from last
<PAGE>
-3-
SECOND QUARTER PERFORMANCE HIGHLIGHTS (continued)
year's second quarter. Securities lending fees increased 6% to $24.0 million,
while custody fees increased to $39.2 million or 5% from the year-ago period.
Total C&IS trust assets under administration increased to $1.21 trillion at
June 30, 1999, up 11% from June 30, 1998 and 6% from December 31, 1998. Of the
C&IS trust assets under administration, $179.0 billion is managed by Northern
Trust, up 11% from June 30, 1998. Trust assets under administration included
approximately $217 billion of global custody assets.
Foreign exchange trading profits were $28.9 million compared to $23.1
million in the second quarter of the prior year, benefiting from the weakness in
the euro and increased client trading volume. More stable global equity markets
resulted in increased cross-border trading in both Asia and Europe, which led to
a higher level of foreign exchange transactions.
Total treasury management revenues from both fees and the computed value of
compensating deposit balances increased 2% from the second quarter of 1998 to
$24.5 million. The fee portion of these revenues in the quarter was $17.3
million, virtually unchanged from the comparable quarter last year. Security
commissions and trading income of $7.7 million were up 7% from a year ago. This
reflects a 14% increase in brokerage commissions at Northern Trust Securities,
Inc. offset in part by the absence of futures commissions resulting from
Northern Trust's exit from the futures business during the second quarter of
last year. Other operating income was $12.1 million for the second quarter
compared with $15.2 million in the same period of last year. The decline from
the prior period is due primarily to the sale of mortgage loans and gains from
the sale of futures exchange memberships reflected in last year's second
quarter.
Net interest income for the quarter, stated on a fully taxable equivalent
basis, totaled $135.8 million, up 6% from the $128.2 million reported in the
prior year quarter. The increase in net interest income reflects 9% growth in
average earning assets and higher levels of noninterest-related funds. The asset
growth included a 9% or $1.2 billion increase in loans and leases, a 7% or $566
million increase in securities and a 15% or $516 million increase in
<PAGE>
-4-
SECOND QUARTER PERFORMANCE HIGHLIGHTS (continued)
money market assets. The net interest margin was 2.07%, unchanged from the first
quarter, versus 2.14% for the year-ago quarter. The decline in the margin from a
year ago is largely attributable to the growth in low risk short-term securities
and money market assets.
Nonperforming assets of $45.2 million at quarter-end increased from $29.0
million at June 30, 1998 and $32.3 million at March 31, 1999. The increase is
principally the result of one loan that was placed on nonperforming status
during the quarter due to the borrower's Chapter 11 reorganization filing. The
provision for credit losses of $5.0 million in the second quarter compares to
$3.0 million for the same quarter of 1998. The overall quality of the loan
portfolio remains strong. Nonaccrual and restructured loans of $44.1 million at
quarter-end represent .29% of total loans and were covered 3.4 times by the
$151.9 million reserve for credit losses. Second quarter net charge-offs totaled
$.3 million.
Noninterest expenses totaled $271.7 million for the quarter, an increase of
10% or $24.0 million from the $247.7 million in the year-ago quarter.
Approximately two-thirds of the increase in noninterest expenses related to
salaries, incentives and employee benefits. In addition, the expense growth
reflects costs associated with technology investments, business promotion, and
expansion of the PFS office network.
The increase in compensation and benefits was primarily attributable to
staff growth, merit increases and performance-based incentives. Staff levels
increased from one year ago to support growth initiatives and strong new
business in both PFS and C&IS. Staff on a full-time equivalent basis at June 30,
1999 totaled 8,253, up 5% from 7,883 at June 30, 1998. Staff levels would have
been 8% higher than a year ago and compensation and benefits expense would have
increased more had the Corporation not outsourced Illinois check processing at
year-end. Higher performance-based compensation is principally attributable to
increased costs for incentive plans as a result of strong performance and the
impact of a higher share price on stock-based compensation plans.
<PAGE>
-5-
BALANCE SHEET
Balance sheet assets averaged $29.1 billion for the quarter, up 10% from
last year's average of $26.6 billion, reflecting growth in loans, securities and
money market assets. Loans and leases averaged $14.3 billion for the quarter, an
increase of $1.2 billion or 9%. Residential mortgages increased $551 million or
10% to average $6.0 billion for the quarter and represented 42% of the total
loan portfolio. Commercial and industrial loans averaged $4.4 billion during the
quarter compared to $4.0 billion in the second quarter of 1998. The securities
portfolio increased 7% to $8.1 billion on average during the period while money
market assets averaged $3.9 billion in the quarter, up 15% from $3.4 billion
last year.
Common stockholders' equity averaged $1.9 billion, up 14% from last year's
second quarter. The increase primarily reflects the retention of earnings offset
in part by the repurchase of common stock pursuant to the Corporation's share
buyback program. On May 18, 1999, the Board of Directors increased the
Corporation's stock buy-back authorization by approximately 4.9 million shares.
As a result, an additional 5.8 million shares may be purchased after June 30,
1999 under the current share buyback program. During the quarter, the
Corporation acquired a total of 412,908 shares at a cost of $37.1 million.
SIX-MONTH PERFORMANCE HIGHLIGHTS
Net income per common share increased 13% to $1.67 for the six-month period
ended June 30, 1999. Net income also increased 13% to $194.8 million compared
with $172.1 million last year and resulted in a return on average common equity
of 20.6% and a productivity ratio of 160%.
Total revenues increased 11% from 1998 levels. Trust fees totaled
$460.7 million, up 16% from $396.0 million last year. Foreign exchange trading
profits totaled $54.5 million, up 7% from last year's performance. Treasury
management revenues from both fees and the computed value of compensating
deposit balances increased 4% to $49.4 million. Net interest income, stated on a
fully taxable equivalent basis, totaled $270.3 million, up 8% from $250.2
million reported last year.
<PAGE>
-6-
SIX-MONTH PERFORMANCE HIGHLIGHTS (continued)
The $5.5 million provision for credit losses was $1.5 million below the
$7.0 million required in the first half of 1998. Noninterest expenses were up
11% and totaled $538.1 million compared to $483.9 million a year ago.
FORWARD-LOOKING STATEMENTS
This news release may be deemed to include forward-looking statements,
such as statements that relate to financial goals, business outlook, expansion
plans, new business and credit quality. Actual results could differ materially
from those indicated by these statements. Northern Trust's 1998 Annual Report
to Stockholders, including the section of Management's Discussion and Analysis
captioned "Forward-Looking Information," and periodic reports to the SEC contain
additional information about factors that could affect actual results.
/ / /
<PAGE>
NORTHERN TRUST CORPORATION Page 1
(Supplemental Consolidated Financial Information)
STATEMENT OF INCOME STATISTICS ($ IN MILLIONS)
- ----------------------------------------------
<TABLE>
<CAPTION>
SECOND QUARTER
---------------------------------------------------------------
1999 1998 % Change (*)
---------------------------------------------------------------
<S> <C> <C> <C>
Noninterest Income
Trust Fees $236.2 $202.3 17 %
Foreign Exchange Trading Profits 28.9 23.1 26
Treasury Management Fees 17.3 17.4 (1)
Security Commissions & Trading Income 7.7 7.2 7
Other Operating Income 12.1 15.2 (20)
Investment Security Transactions 0.1 0.5 N/M
------------ ------------ ------------
Total Noninterest Income 302.3 265.7 14
Interest Income (Taxable Equivalent) 379.2 379.3 N/M
Interest Expense 243.4 251.1 (3)
------------ ------------ ------------
Net Interest Income (Taxable Equivalent) 135.8 128.2 6
Total Revenue (Taxable Equivalent) 438.1 393.9 11
Noninterest Expenses
Compensation 139.9 125.2 12
Employee Benefits 24.6 22.8 8
Occupancy Expense 18.1 17.3 4
Equipment Expense 15.6 14.9 4
Other Operating Expenses 73.5 67.5 9
------------ ------------ ------------
Total Noninterest Expenses 271.7 247.7 10
Provision for Credit Losses 5.0 3.0 67
Taxable Equivalent Adjustment 9.2 9.0 3
------------ ------------ ------------
Income before Income Taxes 152.2 134.2 13
Provision for Income Taxes 52.5 47.0 12
------------ ------------ ------------
NET INCOME $ 99.7 $ 87.2 14%
============ ============== ============
Net Income Per Common Share
Basic $ 0.89 $ 0.78 14%
Diluted 0.86 0.75 15
Return on Average Common Equity 20.65% 20.48%
Average Common Equity $1,915.2 $1,685.4 14%
Return on Average Assets 1.37% 1.32%
Common Dividend Declared per Share $ 0.24 $ 0.21 14%
Preferred Dividends (millions) 1.1 1.2 (8)
Average Common Shares Outstanding (000s)
Basic 110,975 110,809
Diluted 115,147 115,007
---------------
</TABLE>
(N/M) Not Meaningful
(*) Percentage change calculations are based on actual balances rather than
the rounded amounts presented in Supplemental Consolidated Financial
Information.
Note: Certain reclassifications have been made to prior periods' financial
statements to place them on a basis comparable with the current period's
financial statements.
<PAGE>
NORTHERN TRUST CORPORATION Page 2
(Supplemental Consolidated Financial Information)
STATEMENT OF INCOME STATISTICS ($ IN MILLIONS)
- ----------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS
------------------------------------------------
1999 1998 % Change (*)
------------------------------------------------
<S> <C> <C> <C>
Noninterest Income
Trust Fees $ 460.7 $ 396.0 16 %
Foreign Exchange Trading Profits 54.5 51.2 7
Treasury Management Fees 35.4 33.3 6
Security Commissions & Trading Income 15.2 14.4 6
Other Operating Income 22.5 26.2 (15)
Investment Security Transactions 0.1 1.2 N/M
----------- ----------- ----------
Total Noninterest Income 588.4 522.3 13
Interest Income (Taxable Equivalent) 758.3 745.0 2
Interest Expense 488.0 494.8 (1)
----------- ----------- ----------
Net Interest Income (Taxable Equivalent) 270.3 250.2 8
Total Revenue (Taxable Equivalent) 858.7 772.5 11
Noninterest Expenses
Compensation 275.6 246.9 12
Employee Benefits 50.6 46.3 10
Occupancy Expense 35.8 34.2 4
Equipment Expense 31.2 31.4 (1)
Other Operating Expenses 144.9 125.1 16
----------- ----------- ----------
Total Noninterest Expenses 538.1 483.9 11
Provision for Credit Losses 5.5 7.0 (21)
Taxable Equivalent Adjustment 18.1 17.4 4
----------- ----------- ----------
Income before Income Taxes 297.0 264.2 12
Provision for Income Taxes 102.2 92.1 11
----------- ----------- ----------
NET INCOME $ 194.8 $ 172.1 13%
=========== =========== ==========
Net Income Per Common Share
Basic $ 1.74 $ 1.53 14%
Diluted 1.67 1.48 13
Return on Average Common Equity 20.63% 20.60%
Average Common Equity $1,882.2 $1,660.8 13%
Return on Average Assets 1.34% 1.32%
Common Dividends Declared per Share $ 0.48 $ 0.42 14%
Preferred Dividends (millions) 2.2 2.5 (8)
Average Common Shares Outstanding (000s)
Basic 110,898 110,855
Diluted 115,109 115,031
Common Shares Outstanding (EOP) 111,473 111,307
</TABLE>
<PAGE>
NORTHERN TRUST CORPORATION Page 3
(Supplemental Consolidated Financial Information)
<TABLE>
<CAPTION>
BALANCE SHEET ($ IN MILLIONS)
- ----------------------------- JUNE 30
------------------------------------------------
1999 1998 % Change (*)
------------------------------------------------
<S> <C> <C> <C>
Assets
- ------
Money Market Assets $ 3,461.8 $ 5,234.7 (34)%
Securities
U.S. Government 283.4 344.6 (18)
Federal Agency and Other 8,024.5 7,352.6 9
Municipal 493.5 449.8 10
Trading Account 9.1 11.6 (21)
--------- --------- ---------
Total Securities 8,810.5 8,158.6 8
Loans and Leases 15,006.0 13,617.7 10
--------- --------- ---------
Total Earning Assets 27,278.3 27,011.0 1
Reserve for Credit Losses (151.9) (146.7) 4
Cash and Due from Banks 1,274.3 1,389.4 (8)
Trust Security Settlement Receivables 392.6 346.0 13
Buildings and Equipment 350.0 329.5 6
Other Nonearning Assets 1,047.5 847.8 24
--------- --------- ---------
Total Assets $30,190.8 $29,777.0 1 %
========= ========= =========
Liabilities and Stockholders' Equity
- ------------------------------------
Interest-Bearing Deposits
Savings $ 6,766.9 $ 6,506.3 4 %
Other Time 731.0 483.7 51
Foreign Office Time 5,871.1 6,208.2 (5)
--------- --------- ---------
Total Interest-Bearing Deposits 13,369.0 13,198.2 1
Borrowed Funds 7,650.7 8,820.5 (13)
Senior Notes and Long-Term Debt 1,326.3 1,309.8 1
--------- --------- ---------
Total Interest-Related Funds 22,346.0 23,328.5 (4)
Demand & Other Noninterest-Bearing Deposits 4,911.3 3,926.1 25
Other Liabilities 857.1 681.3 26
--------- --------- ---------
Total Liabilities 28,114.4 27,935.9 1
Common Equity 1,956.4 1,721.1 14
Preferred Equity 120.0 120.0 -
--------- --------- ---------
Total Liabilities and Stockholders' Equity $30,190.8 $29,777.0 1 %
========= ========= =========
</TABLE>
<PAGE>
NORTHERN TRUST CORPORATION Page 4
(Supplemental Consolidated Financial Information)
<TABLE>
<CAPTION>
AVERAGE BALANCE SHEET ($ IN MILLIONS)
- -------------------------------------
SECOND QUARTER
----------------------------------------------------
1999 1998 % Change (*)
----------------------------------------------------
<S> <C> <C> <C>
Assets
- ------
Money Market Assets $ 3,896.9 $ 3,381.0 15 %
Securities
U.S. Government 306.7 369.0 (17)
Federal Agency and Other 7,312.6 6,757.3 8
Municipal 502.8 432.1 16
Trading Account 14.3 12.1 18
--------- --------- ---
Total Securities 8,136.4 7,570.5 7
Loans and Leases 14,271.2 13,100.7 9
--------- --------- ---
Total Earning Assets 26,304.5 24,052.2 9
Reserve for Credit Losses (149.6) (147.2) 2
Nonearning Assets 2,969.4 2,667.1 11
--------- --------- ---
Total Assets $29,124.3 $26,572.1 10 %
========= ========= ===
Liabilities and Stockholders' Equity
- ------------------------------------
Interest-Bearing Deposits
Savings $ 6,921.1 $ 6,429.5 8 %
Other Time 716.4 517.4 38
Foreign Office Time 5,869.7 5,183.7 13
--------- --------- ---
Total Interest-Bearing Deposits 13,507.2 12,130.6 11
Borrowed Funds 7,376.7 6,739.4 9
Senior Notes and Long-Term Debt 1,366.7 1,491.2 (8)
--------- --------- ---
Total Interest-Related Funds 22,250.6 20,361.2 9
Demand & Other Noninterest-Bearing Deposits 4,006.2 3,750.8 7
Other Liabilities 832.3 654.7 27
--------- --------- ---
Total Liabilities 27,089.1 24,766.7 9
Common Equity 1,915.2 1,685.4 14
Preferred Equity 120.0 120.0 -
--------- --------- ---
Total Liabilities and Stockholders' Equity $29,124.3 $26,572.1 10 %
========= ========= ===
</TABLE>
<PAGE>
NORTHERN TRUST CORPORATION Page 5
(Supplemental Consolidated Financial Information)
<TABLE>
<CAPTION>
Quarterly Trend Data ($ In Millions)
- ----------------------------------- 1999 1998
Quarters Quarters
--------------------- ------------------------------------
Second First Fourth Third Second
--------------------- ------------------------------------
<S> <C> <C> <C> <C> <C>
Net Income Summary
- ------------------
Trust Fees $ 236.2 $ 224.5 $ 216.7 $ 203.6 $ 202.3
Other Noninterest Income 66.1 61.6 67.9 61.1 63.4
Net Interest Income (Taxable Equivalent) 135.8 134.5 135.2 127.7 128.2
-------- -------- -------- -------- --------
Total Revenue (Taxable Equivalent) 438.1 420.6 419.8 392.4 393.9
Provision for Credit Losses 5.0 0.5 1.0 1.0 3.0
Noninterest Expenses 271.7 266.4 269.4 243.8 247.7
-------- -------- -------- -------- --------
Pretax Income (Taxable Equivalent) 161.4 153.7 149.4 147.6 143.2
Taxable Equivalent Adjustment 9.2 8.9 8.8 9.7 9.0
Provision for Income Taxes 52.5 49.7 49.0 47.7 47.0
-------- -------- -------- -------- --------
Net Income $ 99.7 $ 95.1 $ 91.6 $ 90.2 $ 87.2
======== ======== ======== ======== ========
Per Common Share
- ----------------
Net Income - Basic $ 0.89 $ 0.85 $ 0.82 $ 0.81 $ 0.78
- Diluted 0.86 0.82 0.79 0.78 0.75
Dividend Declared 0.24 0.24 0.24 0.21 0.21
Book Value (EOP) $ 17.55 $ 17.12 $ 16.37 $ 15.84 $ 15.46
Market Value (EOP) 97.00 88.81 87.31 68.25 76.25
Ratios
- ------
Return on Average Common Equity 20.65 % 20.62 % 20.16 % 20.55 % 20.48 %
Return on Average Assets 1.37 1.31 1.27 1.30 1.32
Net Interest Margin 2.07 2.07 2.08 2.01 2.14
Productivity Ratio (*) 161 % 158 % 156 % 161 % 159 %
Risk-based Capital Ratios
Tier 1 9.5 % 9.9 % 9.8 % 9.4 % 9.3 %
Total (Tier 1 + Tier 2) 12.4 13.1 13.1 12.7 12.6
Leverage 7.3 7.0 6.9 6.9 7.0
Trust Assets ($ in Billions) - EOP
- ----------------------------------
Corporate $1,205.7 $1,170.4 $1,138.5 $1,024.5 $1,090.3
Personal 131.0 125.6 121.2 104.8 110.2
-------- -------- -------- -------- --------
Total Trust Assets $1,336.7 $1,296.0 $1,259.7 $1,129.3 $1,200.5
======== ======== ======== ======== ========
Memo: Managed Assets $ 258.6 $242.7 $ 236.0 $ 220.7 $ 228.7
Asset Quality ($ in Millions) - EOP
- -----------------------------------
Nonaccrual and Restructured Loans $ 44.1 $ 30.2 $ 32.9 $ 29.6 $ 27.0
Other Real Estate Owned (OREO) 1.1 2.1 2.3 1.6 2.0
-------- -------- -------- -------- --------
Total Nonperforming Assets $ 45.2 $ 32.3 $ 35.2 $ 31.2 $ 29.0
======== ======== ======== ======== ========
Nonperforming Assets / Loans & OREO 0.30 % 0.23 % 0.26 % 0.23 % 0.21 %
Gross Charge-offs $ 0.9 $ 0.4 $ 1.0 $ 1.5 $ 4.6
Gross Recoveries 0.6 0.3 0.2 0.4 0.4
-------- -------- -------- -------- --------
Net Charge-offs $ 0.3 $ 0.1 $ 0.8 $ 1.1 $ 4.2
======== ======== ======== ======== ========
Net Charge-offs (Annualized) to Average Loans 0.01 % .002 % 0.02 % 0.03 % 0.13 %
Reserve for Credit Losses $ 151.9 $ 147.2 $ 146.8 $ 146.6 $ 146.7
Reserve to Nonaccrual and Restructured Loans 345 % 487 % 446 % 496 % 543 %
</TABLE>
(*) The productivity ratio is defined as total revenue on a taxable equivalent
basis divided by noninterest expenses.
