EXHIBIT 99
For Immediate Release
Oct. 11, 2000
For more information: Steven J. Goldstein Terry Earley
Chief Financial Officer Investor Relations
Centura Banks, Inc. Centura Banks, Inc.
(252) 454-8356 (252) 454-4453
[email protected] [email protected]
---------------------- -------------------
CENTURA BANKS, INC. REPORTS THIRD-QUARTER EARNINGS OF $0.85 PER DILUTED SHARE
ROCKY MOUNT, N.C., Oct. 11, 2000 - Centura Banks Inc. (NYSE: CBC) today
announced third-quarter earnings of $34 million, or $0.85 per diluted share.
Diluted earnings per share increased 18.1% from the previous quarter, before
merger related and other significant charges, and 7.6% from the year-ago period.
All prior-period financial data has been restated for the acquisition of
Triangle Bancorp Inc., which was completed Feb. 18, 2000.
Centura's third-quarter performance produced an annualized return on average
assets of 1.20% and an annualized return on average shareholder's equity of
15.00%. This compares with 1.15% and 14.58%, respectively, for the year-earlier
period.
For the nine months ended Sept. 30, Centura's net income totaled $98.7 million,
or $2.46 per diluted share, excluding $50.7 million of pre-tax merger related
and other significant charges associated with the acquisition of Triangle
Bancorp. This compares with net income for the same period a year ago of $100.8
million, or $2.49 per diluted share, excluding $8.4 million of pre-tax merger
related charges associated with the first quarter 1999 acquisition of First
Coastal Bankshares.
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<PAGE>
Centura also declared a dividend of $0.34 per share for the fourth quarter of
2000, payable Dec. 15, 2000, to shareholders of record Nov. 30. The annualized
dividend represents a 7.2% increase over the dividend paid in 1999.
"We executed according to plan in the third quarter," said Cecil W. Sewell,
chief executive officer. "Although, there is always room for improvement, we are
pleased with our expense management and the demonstrated progress in some key
areas against a highly competitive landscape for quality loans and core
deposits.
"The seven basis-point rise in nonperforming assets to total assets from the
second quarter was driven by a slowing economy," Sewell said. "This is
understandable in light of the environment, but the trend is evenly spread
across all areas and we aren't seeing pronounced weakness in any specific
industry sector. In addition, Centura's reserves for loan losses remain strong
at 1.35% of total loans and we are encouraged that the results of our recent
shared credit exam required no action from Centura regarding reclassification of
its small portfolio of $107 million in shared national credits.
"Centura experienced positive growth in a number of key areas that bode well
for the future," Sewell said. "During the month of September, overall loan
growth, which had been flat much of the quarter, achieved annualized increases
of 12% on the commercial side and almost 9% in consumer loans. September
deposits also grew 8%, excluding the acquisition of $138 million in deposits
from four Wachovia Corp. branches in western North Carolina. We also are
encouraged by the third-quarter deposit trends. Average core deposits were up
for the quarter in spite of the unexpected loss of 10 in-store branches in
Charlotte, N.C. when Hannaford Brothers closed its supermarkets in that region;
and the anticipated deposit loss associated with the repricing of the higher
yield Triangle CDs.
"In late September, we also completed the sale of $2.1 billion or 85% of the
mortgage servicing portfolio and reinvested the gain in the restructuring of
Centura's investment portfolio," Sewell said. "This transaction resulted in a
gain of $13.1 million, which was
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offset by the losses incurred in repositioning the investment portfolio.
Although the transaction will have little impact on future earnings, since, the
higher yield on investments are offset with lower mortgage servicing income, the
risk to income from mortgage prepayments is largely eliminated. We expect to
experience positive effects of the restructured portfolio in the fourth
quarter's net interest margin, which also should benefit from Centura's recent
Wachovia acquisitions."
The net interest margin for the third quarter of 2000 was 4.06% and 4.12% for
the month of September, compared with 4.10 in the second quarter and 4.25 in the
year-earlier period. The net interest margin in September reflects improvement
in our funding mix and the partial effect of the portfolio restructuring.
Third-quarter noninterest income was essentially flat from year-earlier levels,
after factoring out some unusual transactions that included the sale of
Centura's mortgage servicing portfolio and the restructuring of the investment
portfolio. Third-quarter noninterest expense declined 3% from the prior quarter
and was generally experienced across all categories.
"Centura has achieved good results retaining the most valuable Triangle
households," Sewell continued. "To date, we have retained 96% of these
households and our overall customer retention is 87%. In recent months, however,
we have been more willing to let go of CD-rate shoppers who show no interest in
expanding their relationship with Centura. We continue to believe our focus on
retention of our most valuable customers represents the best long-term strategy
for building loyal customers, reducing the need for wholesale funding and
strengthening the net interest margin."
Looking forward, the fourth quarter should benefit from the positive effects of
Centura's repositioned investment portfolio, the Wachovia branch acquisitions,
and the expected follow-through of strong September trends in loans and core
deposits. In addition, approximately 75% of Triangle's higher yield CDs have
repriced as of the end of the third quarter. "Despite the continued challenging
operating environment, we don't see
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anything on the horizon that would cause our outlook for the fourth quarter to
diverge from the First Call range of $.86 to $.92 per diluted share," Sewell
said.
About Centura
-------------
Centura Banks Inc., an $11 billion-asset financial services company based in
North Carolina, provides a complete line of banking, investment, insurance,
leasing and asset management services to individuals and businesses in North
Carolina, South Carolina and Virginia. Centura's broad range of financial
solutions is provided through more than 240 full-service financial offices and
Centura Highway, the bank's multifaceted customer access system that includes
telephone banking, an extensive ATM network, PC banking, online bill payment and
the bank's suite of Internet products and services. Additional information may
be found on Centura's Web site at www.centura.com.
Safe Harbor
-----------
Statements made in this press release, other than those containing historical
information, are forward-looking statements made pursuant to the safe-harbor
provisions of the Private Securities Litigation Act of 1995. These include
statements about Centura, including descriptions of plans or objectives of its
management for future operations, products or services, and forecasts of its
revenues, earnings or other measures of economic performance. Such statements
reflect current views, but are based on assumptions and are subject to risks,
uncertainties and other factors that may cause results to differ materially from
those set forth in such statements. Those factors include, but are not limited
to, the following: (i) expected cost savings from completed mergers may not be
fully realized or costs or difficulties related to the integration of the
businesses of Centura and merged institutions may be greater than expected; (ii)
customer and deposit attrition, or revenue loss, following completed mergers may
be greater than expected; (iii) competitive pressure in the banking industry may
increase significantly; (iv) changes in the interest rate environment may reduce
margins; (v) general economic conditions, either nationally or regionally, may
be less favorable than expected, resulting in, among other things, credit
quality deterioration and the possible impairment of collectibility of loans;
(vi) the impact of changes in monetary and fiscal policies, laws, rules and
regulations; (vii) the impact of the Gramm-Leach-Bliley Act of 1999; (viii)
changes in business conditions and inflation; and (ix) other risks and factors
identified in Centura's filings with the Securities and Exchange Commission and
other regulatory bodies.
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<PAGE>
FINANCIAL HIGHLIGHTS
CENTURA BANKS, INC. AND SUBSIDIARIES
<TABLE>
<CAPTION>
Three Months Ended September 30, Nine Months Ended September 30,
----------------------------------------- --------------------------------------
(Dollars in thousands, except per share data) 2000 1999 Change 2000 1999 Change
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
EARNINGS
Interest income $ 227,544 $ 204,747 11.1 % $ 660,694 $ 597,794 10.5 %
Interest expense 123,309 98,140 25.6 348,135 286,111 21.7
-----------------------------------------------------------------------------------------------------------------------------
Net interest income 104,235 106,607 (2.2) 312,559 311,683 0.3
Provision for loan losses 6,960 16,006 (56.5) 24,855 31,934 (22.2)
Noninterest income 40,216 46,381 (13.3) 102,388 132,887 (23.0)
Noninterest expense 85,417 88,515 (3.5) 288,333 269,367 7.0
Income taxes 18,071 16,514 9.4 38,798 48,481 (20.0)
-----------------------------------------------------------------------------------------------------------------------------
Net income $ 34,003 $ 31,953 6.4 % $ 62,961 $ 94,788 (33.6)%
=============================================================================================================================
Net interest income, taxable equivalent $ 106,644 $ 109,866 (2.9)% $ 320,068 $ 320,766 (0.2)%
=============================================================================================================================
PER COMMON SHARE
Earnings per share - basic $ 0.85 $ 0.80 6.3 % $ 1.58 $ 2.38 (33.6)%
Earnings per share - diluted 0.85 0.79 7.6 1.57 2.34 (32.9)
Cash dividends paid 0.34 0.29 17.2 1.00 0.83 20.5
Book value per share 23.05 21.74 6.0 23.05 21.74 6.0
Closing market price 38.313 41.375 (7.4) 38.313 41.375 (7.4)
SELECTED FINANCIAL DATA (A)
Earnings per share - diluted $ 0.85 $ 0.79 7.6 % $ 2.46 $ 2.49 (1.2)%
Return on average assets 1.20 1.15 5 bp 1.17 1.23 (6)bp
Return on average equity 15.00 14.58 42 15.02 15.59 (57)
FINANCIAL RATIOS
Return on average assets 1.20 % 1.15 % 5 bp 0.75 % 1.16 % (41)bp
Return on average equity 15.00 14.58 42 9.59 14.66 (507)
Average equity to average assets 8.01 7.86 15 7.81 7.88 (7)
AVERAGE BALANCES
Assets $ 11,261,701 $ 11,065,694 1.8 % $ 11,227,694 $ 10,969,541 2.4 %
Earning assets, net 10,323,647 10,164,652 1.6 10,297,963 10,059,135 2.4
Loans, gross 7,631,191 7,305,302 4.5 7,570,230 7,220,563 4.8
Investment securities, net 2,599,384 2,722,460 (4.5) 2,610,052 2,685,098 (2.8)
Noninterest-bearing deposits 1,118,636 1,153,228 (3.0) 1,118,159 1,141,089 (2.0)
Core deposits 6,841,722 6,914,464 (1.1) 6,871,605 6,890,391 (0.3)
Total deposits 7,584,598 7,770,777 (2.4) 7,661,626 7,708,297 (0.6)
Interest-bearing liabilities 9,114,564 8,897,333 2.4 9,115,246 8,810,552 3.5
Shareholders' equity 902,196 869,562 3.8 877,294 864,759 1.4
PERIOD END BALANCES
Assets $ 11,389,045 $ 11,172,791 1.9 % $ 11,389,045 $ 11,172,791 1.9 %
Earning assets, net 10,364,671 10,247,720 1.1 10,364,671 10,247,720 1.1
Loans, gross 7,688,712 7,322,504 5.0 7,688,712 7,322,504 5.0
Investment securities, net 2,585,970 2,792,209 (7.4) 2,585,970 2,792,209 (7.4)
Noninterest-bearing deposits 1,136,869 1,181,071 (3.7) 1,136,869 1,181,071 (3.7)
Core deposits 6,955,496 6,960,401 (0.1) 6,955,496 6,960,401 (0.1)
Total deposits 7,694,228 7,785,297 (1.2) 7,694,228 7,785,297 (1.2)
Shareholders' equity 919,094 866,733 6.0 919,094 866,733 6.0
====================================================================================================================================
</TABLE>
bp- Change is measured as difference in basis points.
(A) Calculation excludes $50.7 million of pre-tax merger-related and other
significant charges incurred for the nine months ended September 30, 2000.
Included in these charges are $22.1 million in losses related to sales of
certain investment securities incurred as a result of restructuring the
investment portfolio acquired with the Triangle merger, of which $15.1
million and $7.1 million were incurred during the first quarter and second
quarter 2000, respectively. Year-to-date 1999 excludes $8.4 million of
pre-tax merger-related items, all of which were incurred during the first
quarter.
All prior period financial data has been restated for the February 18, 2000
merger with Triangle which was accounted for as a pooling-of-interests.
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OTHER FINANCIAL DATA
CENTURA BANKS, INC. AND SUBSIDIARIES
<TABLE>
<CAPTION>
Three Months Ended September 30, Nine Months Ended September 30,
--------------------------------------- ------------------------------------
(Dollars in thousands) 2000 1999 Change 2000 1999 Change
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
SHARES OUTSTANDING
Average basic 39,896,138 39,798,446 0.2 % 39,760,138 39,789,052 (0.1)%
Average diluted 40,094,135 40,397,894 (0.8) 40,033,407 40,473,206 (1.1)
Outstanding at period end 39,878,329 39,859,180 - 39,878,329 39,859,180 -
COMPOSITION RATIOS (A)
Earning assets to total assets 91.67 % 91.86 % (19)bp 91.72 % 91.70 % 2 bp
Loans to earning assets 73.92 71.87 205 73.51 71.78 173
Interest-bearing liabilities to earning assets 88.29 87.53 76 88.52 87.59 93
Loans to total deposits 100.61 94.01 660 98.81 93.67 514
Noninterest-bearing deposits to total deposits 14.75 14.84 (9) 14.59 14.80 (21)
ALLOWANCE FOR LOAN LOSSES (AFLL)
Beginning balance $ 103,271 $ 96,125 7.4 % $ 95,500 $ 91,894 3.9 %
AFLL related to loans sold and subsidiary sale - (456) (100.0) - (556) (100.0)
Provision for loan losses 6,960 16,006 (56.5) 24,855 31,934 (22.2)
Allowance of acquired financial institutions - - - - 605 (100.0)
Charge-offs (7,017) (18,734) (62.5) (20,982) (32,742) (35.9)
Recoveries 822 760 8.2 4,663 2,566 81.7
-----------------------------------------------------------------------------------------------------------------------------
Net charge-offs (6,195) (17,974) (65.5) (16,319) (30,176) (45.9)
-----------------------------------------------------------------------------------------------------------------------------
Ending balance $ 104,036 $ 93,701 11.0 % $ 104,036 $ 93,701 11.0 %
=============================================================================================================================
Net charge-offs to average loans 0.32 % 0.98 % (66)bp 0.29 % 0.56 % (27)bp
COMPOSITION OF RISK ASSETS
Nonperforming loans $ 48,631 $ 41,577 17.0 %
Foreclosed property 6,000 5,294 13.3
-----------------------------------------------------------------------------------------------------------------------------
Nonperforming assets $ 54,631 $ 46,871 16.6 %
=============================================================================================================================
Loans 90+ days past due, still accruing $ 9,902 $ 13,407 (26.1)%
ASSET QUALITY RATIOS (B)
Nonperforming assets to:
Loans and foreclosed property 0.71 % 0.64 % 7 bp
Total assets 0.48 0.42 6
Nonperforming loans to total loans 0.63 0.57 6
Allowance for loan losses to total loans 1.35 1.28 7
Allowance for loan losses to nonperforming loans 2.14 x 2.25 x (11)
====================================================================================================================================
</TABLE>
bp- Change is measured as difference in basis points.
(A) Balance sheet amounts used in calculations are based on average balances.
(B) Balance sheet amounts used in calculations are based on period end balances.
All prior period financial data has been restated for the February 18, 2000
merger with Triangle which was accounted for as a pooling-of-interests.
Page 6
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OTHER FINANCIAL DATA, continued
CENTURA BANKS, INC. AND SUBSIDIARIES
<TABLE>
<CAPTION>
Three Months Ended September 30,
--------------------------------------------------
As a Percent of
Average Assets (A)
--------------------
(Dollars in thousands) 2000 1999 Change 2000 1999
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NONINTEREST INCOME
Service charges on deposit accounts $ 15,723 $ 16,251 (3.3) % 0.56 % 0.58 %
Credit card and related fees 2,603 2,816 (7.6) 0.09 0.10
Insurance and brokerage commissions 5,858 6,416 (8.7) 0.21 0.23
Other service charges, commissions and fees 3,325 3,116 6.7 0.12 0.11
Fees for trust services 2,549 2,586 (1.4) 0.09 0.09
Mortgage income 17,912 7,594 135.9 0.63 0.27
Negative goodwill amortization 334 334 - 0.01 0.01
Operating lease income, net 580 1,856 (68.8) 0.02 0.07
Other noninterest income 4,400 7,045 (37.5) 0.15 0.26
--------------------------------------------------------------------------------------------------------------------
Noninterest income, excluding securities transactions 53,284 48,014 11.0 1.88 1.72
Securities gains (losses), net (13,068) (1,633) 700.2 (0.46) (0.06)
Securities gains (losses), net - merger related - - - - -
--------------------------------------------------------------------------------------------------------------------
Total noninterest income $ 40,216 $ 46,381 (13.3) % 1.42 % 1.66 %
====================================================================================================================
NONINTEREST EXPENSE
Salaries and overtime $ 36,317 $ 36,068 0.7 % 1.28 % 1.29 %
Fringe benefits and other personnel costs 8,699 7,563 15.0 0.31 0.27
Occupancy 6,112 6,213 (1.6) 0.22 0.22
Equipment 6,255 7,020 (10.9) 0.22 0.25
Foreclosed real estate losses and related operating expense 409 615 (33.5) 0.01 0.02
Marketing 1,569 2,435 (35.6) 0.06 0.09
Fees for outsourced services 4,422 4,055 9.1 0.16 0.15
Professional and legal fees 3,202 3,607 (11.2) 0.11 0.13
Other administrative 2,602 3,055 (14.8) 0.09 0.11
FDIC insurance 28 477 (94.1) - 0.02
Deposit intangible and goodwill amortization 3,406 3,430 (0.7) 0.12 0.12
Office supplies, postage and telephone 5,765 6,052 (4.7) 0.20 0.22
Other operating 6,631 7,925 (16.3) 0.24 0.28
--------------------------------------------------------------------------------------------------------------------
Total NIE before merger-related and other significant charges 85,417 88,515 (3.5) 3.02 3.17
Merger-related expenses and other significant charges - - - - -
--------------------------------------------------------------------------------------------------------------------
Total noninterest expense $ 85,417 $ 88,515 (3.5) % 3.02 % 3.17 %
====================================================================================================================
OTHER PERFORMANCE RATIOS
Pretax operating profit margin (B)(D) 37.10 % 33.11 % 399 bp
Efficiency ratio (C)(D) 58.16 % 56.65 % 151 bp
Net interest income analysis-taxable equivalent:
Selected average yields/rates:
Loans 9.39 % 8.68 % 71 bp
Taxable securities 6.91 6.39 52
Tax-exempt securities 9.38 7.77 161
Short-term investments 7.30 5.55 175
Mortgage loans held-for-sale 10.19 7.86 233
--------------------------------------------------------------------------------------------------------------------
Interest-earning assets 8.76 8.05 71
--------------------------------------------------------------------------------------------------------------------
Total interest-bearing deposits 4.93 4.04 89
Borrowed funds 6.20 4.83 137
Long-term debt 6.67 5.95 72
--------------------------------------------------------------------------------------------------------------------
Total interest-bearing liabilities 5.35 4.36 99
--------------------------------------------------------------------------------------------------------------------
Interest rate spread 3.41 3.69 (28)
Net interest margin 4.06 4.25 (19)
====================================================================================================================
<CAPTION>
Nine Months Ended September 30,
------------------------------------------------------
As a Percent of
Average Assets(A)
------------------
(Dollars in thousands) 2000 1999 Change 2000 1999
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NONINTEREST INCOME
Service charges on deposit accounts $ 47,071 $ 47,175 (0.2)% 0.56 % 0.57 %
Credit card and related fees 6,724 6,673 0.8 0.08 0.08
Insurance and brokerage commissions 18,876 18,864 0.1 0.22 0.23
Other service charges, commissions and fees 10,244 9,882 3.7 0.12 0.12
Fees for trust services 8,058 7,768 3.7 0.10 0.09
Mortgage income 27,160 21,696 25.2 0.32 0.26
Negative goodwill amortization 1,003 1,003 - 0.01 0.01
Operating lease income, net 1,902 5,484 (65.3) 0.02 0.07
Other noninterest income 18,223 14,965 21.8 0.23 0.18
---------------------------------------------------------------------------------------------------------------------------
Noninterest income, excluding securities transactions 139,261 133,510 4.3 1.66 1.63
Securities gains (losses), net (14,735) (623) NM (0.18) (0.01)
Securities gains (losses), net - merger related (22,138) - - (0.26) -
---------------------------------------------------------------------------------------------------------------------------
Total noninterest income $ 102,388 $ 132,887 (23.0)% 1.22 % 1.62 %
===========================================================================================================================
NONINTEREST EXPENSE
Salaries and overtime $ 107,370 $ 106,038 1.3 % 1.28 % 1.29 %
Fringe benefits and other personnel costs 25,122 23,771 5.7 0.30 0.29
Occupancy 18,343 18,554 (1.1) 0.22 0.23
Equipment 18,284 21,091 (13.3) 0.22 0.26
Foreclosed real estate losses and related operating expense 1,515 1,338 13.2 0.02 0.02
Marketing 5,410 7,263 (25.5) 0.06 0.09
Fees for outsourced services 13,782 12,466 10.6 0.16 0.15
Professional and legal fees 10,203 10,930 (6.7) 0.12 0.13
Other administrative 8,963 8,838 1.4 0.11 0.11
FDIC insurance 791 1,418 (44.2) 0.01 0.02
Deposit intangible and goodwill amortization 10,108 10,187 (0.8) 0.12 0.12
Office supplies, postage and telephone 18,455 18,493 (0.2) 0.22 0.23
Other operating 21,471 22,122 (2.9) 0.25 0.26
---------------------------------------------------------------------------------------------------------------------------
Total NIE before merger-related and other significant charges 259,817 262,509 (1.0) 3.09 3.20
Merger-related expenses and other significant charges 28,516 6,858 315.8 0.34 0.08
---------------------------------------------------------------------------------------------------------------------------
Total noninterest expense $ 288,333 $ 269,367 7.0 % 3.43 % 3.28 %
===========================================================================================================================
OTHER PERFORMANCE RATIOS
Pretax operating profit margin (B)(D) 35.97 % 35.43 % 54 bp
Efficiency ratio (C)(D) 58.44 % 57.87 % 57 bp
Net interest income analysis-taxable equivalent:
Selected average yields/rates:
Loans 9.17 % 8.62 % 55 bp
Taxable securities 6.75 6.30 45
Tax-exempt securities 8.33 7.87 46
Short-term investments 5.54 4.99 55
Mortgage loans held-for-sale 9.56 7.87 169
------------------------------------------------------------------------------------------------
Interest-earning assets 8.54 8.00 54
------------------------------------------------------------------------------------------------
Total interest-bearing deposits 4.66 4.03 63
Borrowed funds 5.98 4.76 122
Long-term debt 6.35 5.84 51
------------------------------------------------------------------------------------------------
Total interest-bearing liabilities 5.07 4.32 75
------------------------------------------------------------------------------------------------
Interest rate spread 3.47 3.68 (21)
Net interest margin 4.08 4.22 (14)
===========================================================================================================================
</TABLE>
bp- Change is measured as difference in basis points.
(A) Data presented is annualized.
(B) Sum of income before taxes plus the taxable equivalent adjustment divided
by the sum of taxable equivalent net interest income plus noninterest
income.
(C) Noninterest expense divided by the sum of taxable equivalent net interest
income plus noninterest income.
(D) Calculation excludes merger-related and other significant charges.
All prior period financial data has been restated for the February 18, 2000
merger with Triangle which was accounted for as a pooling-of-interests.
Page 7
<PAGE>
QUARTERLY FINANCIAL TRENDS
CENTURA BANKS, INC. AND SUBSIDIARIES
<TABLE>
<CAPTION>
2000 1999
---------------------------------------- ----------------------- 3rd Qtr 00
Third Second First Fourth Third vs.
(Dollars in thousands, except per share data) Quarter Quarter Quarter Quarter Quarter 2nd Qtr 00
------------------------------------------------------------------------------------------------------------------ ----------
<S> <C> <C> <C> <C> <C> <C>
FINANCIAL SUMMARY (A)
Assets $11,261,701 $11,087,991 $11,333,016 $11,244,033 $11,065,694 1.6 %
Earning assets, net 10,323,647 10,161,950 10,408,008 10,311,262 10,164,652 1.6
Loans, gross 7,631,191 7,604,252 7,481,313 7,363,250 7,305,302 0.4
Investment securities, net 2,599,384 2,456,812 2,774,077 2,820,815 2,722,460 5.8
Total deposits 7,584,598 7,581,910 7,819,217 7,864,788 7,770,777 -
Interest-bearing liabilities 9,114,564 8,974,603 9,256,578 9,066,703 8,897,333 1.6
Shareholders' equity 902,196 869,319 860,095 861,593 869,562 3.8
Total market capitalization (period end) 1,527,838 1,353,339 1,817,042 1,742,779 1,649,174 12.9
Net income 34,003 20,923 8,035 35,549 31,953 62.5
PROFITABILITY/PERFORMANCE SUMMARY(A)
Pretax operating profit margin(B) 37.10 % 31.80 % 38.92 % 38.07 % 33.11 % 530 bp
Efficiency ratio(B) 58.16 60.07 57.12 55.94 56.65 (191)
Net interest margin 4.06 4.10 4.07 4.20 4.27 (4)
Return on average assets 1.20 0.76 0.29 1.25 1.15 44
Return on average equity 15.00 9.68 3.76 16.37 14.58 532
Average equity to average assets 8.01 7.84 7.59 7.66 7.86 17
PER SHARE SUMMARY
Earnings per share - basic $ 0.85 $ 0.53 $ 0.20 $ 0.90 $ 0.80 60.4 %
Earnings per share - diluted 0.85 0.52 0.20 0.89 0.79 63.5
Cash dividends paid 0.34 0.34 0.32 0.30 0.29 -
Book value per share 23.05 22.09 21.72 21.77 21.74 4.3
Closing market price 38.313 33.953 45.813 44.125 41.375 12.8
KEY INTANGIBLE ASSETS (C)
Goodwill $ 143,520 $ 125,606 $ 131,514 $ 134,851 $ 138,334 14.3 %
Mortgage servicing rights 6,037 31,797 35,076 35,916 36,979 (81.0)
ASSET QUALITY SUMMARY(C)
Nonperforming assets $ 54,631 $ 45,929 $ 37,161 $ 35,836 $ 46,871 18.9 %
Allowance for loan losses 104,036 103,271 97,450 95,500 93,701 0.7
Nonperforming assets to total assets 0.48 % 0.41 % 0.33 % 0.31 % 0.42 % 7 bp
Allowance for loan losses to total loans 1.35 1.35 1.29 1.28 1.28 -
Net charge-offs to average loans 0.32 0.32 0.22 0.38 0.98 -
==================================================================================================================================
</TABLE>
bp- Change is measured as difference in basis points.
(A) Balance sheet amounts are based on average balances unless otherwise noted.
(B) Calculation excludes merger-related and other significant charges.
(C) Balance sheet amounts are based on period end balances unless otherwise
noted.
All prior period financial data has been restated for the February 18, 2000
merger with Triangle which was accounted for as a pooling-of-interests.
Page 8
