<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8 - K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of
the Securities Exchange Act of 1934
Date of Report
(Date of earliest event reported):
October 20, 1999
THE BANK OF NEW YORK COMPANY, INC.
----------------------------------
(exact name of registrant as specified in its charter)
NEW YORK
--------
(State or other jurisdiction of incorporation)
001-06152 13-2614959
--------- ----------
(Commission file number) (I.R.S. employer identification number)
One Wall Street, New York, NY 10286
----------------------------- -----
(Address of principal executive offices) (Zip code)
212-495-1784
------------
(Registrant's telephone number,
including area code)
<PAGE> 2
ITEM 5. Other Events
------------
Third Quarter of 1999 Financial Results
---------------------------------------
On October 18, 1999, The Bank of New York Company, Inc. issued a press release
containing unaudited interim financial information and accompanying discussion
for the third quarter of 1999. Exhibit 99 is a copy of such press release and
is incorporated herein by reference. In addition, as the Company has
previously announced, it is cooperating fully with regulatory and law
enforcement agencies in their investigations of various Russia
related financial activities.
ITEM 7. Financial Statements, Pro Forma Financial Information and Exhibits
------------------------------------------------------------------
(c) Exhibit Description
------- -----------
99 Unaudited interim financial information and
accompanying discussion for the third quarter
of 1999 contained in the press release dated
October 18, 1999, of The Bank of New York
Company, Inc.
<PAGE> 3
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.
Dated: October 20, 1999
THE BANK OF NEW YORK COMPANY, INC.
(Registrant)
By: /s/ Thomas J. Mastro
-------------------------
Name: Thomas J. Mastro
Title: Comptroller
<PAGE> 4
EXHIBIT INDEX
-------------
Exhibit No. Description
- ----------- -----------
99 Unaudited interim financial information and accompanying
discussion for the third quarter of 1999 contained in the
press release dated October 18, 1999, of The Bank of New York
Company, Inc.
<PAGE> 1
EXHIBIT 99
The Bank of New York Company, Inc. NEWS
- ------------------------------------------------------------------------------
One Wall Street, New York, NY 10286
-----------------------------------
Contact:
PUBLIC AND INVESTOR RELATIONS
IMMEDIATELY
- -----------
Media: Investors:
- ----- ---------
Frank H. Scarangella, SVP Richard P. Stanley, SVP
(212) 635-1590 (212) 635-1854
Cary J. Giacalone, VP Gregory A. Burton, AVP
(212) 635-1590 (212) 635-1578
THE BANK OF NEW YORK COMPANY, INC. REPORTS
Record Third Quarter Diluted E.P.S. of $1.02,
Reflecting Sale of BNY Financial Corp.
Fiduciary and Servicing Fees Up a Strong 17%
NEW YORK, N.Y., October 18, 1999 -- The Bank of New York Company, Inc. (NYSE:
BK) reports record third quarter diluted earnings per share of $1.02, up 162%
from the 39 cents earned in the third quarter of 1998. Net income for the
third quarter was a record $773 million, up 157% from the $301 million earned
in the same period last year. The third quarter results reflect a gain on the
sale of BNY Financial Corporation ("BNYFC") as well as certain charges related
to the decision to exit a portfolio of credits on an accelerated basis.
Diluted earnings per share were $1.84 for the first nine months of 1999, up
63% from the $1.13 earned last year. Net income for the first nine months was
a record $1,411 million, an increase of 61% over last year's $879 million.
"Continued momentum in our fee-based businesses drove strong core revenue
growth. Our exit from the commercial finance business and from select
commercial credits will result in a higher quality prospective earnings
profile. In addition, these sales will provide capital for reinvestment in
<PAGE> 2
our higher growth securities servicing and asset management businesses," said
Thomas A. Renyi, Chairman and CEO. New business wins and continued favorable
markets worldwide drove securities servicing revenues up 21%. Trust and
investment fees grew 15%, led by strong investment performance, new customers
and favorable U.S. equity markets. Overall, noninterest income contributed
60% of revenues for the quarter, excluding the gain on the sale of BNYFC and
the liquidity charges associated with the accelerated disposition of the
portfolio of credits.
In securities servicing, all areas did well with global custody, mutual
funds, securities lending, ADR's and execution services particularly strong.
Domestic and global custody continued to gain market share from new business
wins as assets under custody grew to $5.4 trillion at quarter end. Trust and
investment's results were driven by strong investment performance which
continues to attract new customers.
On July 22, 1999, the Company completed the sale of BNYFC to General
Motors Acceptance Corporation. Net income for the third quarter and year-to-
date periods included a pre-tax gain of $1,020 million ($573 million after-
tax) or 75 cents per share from the sale.
As part of its continuing strategy to align credit products with
fiduciary and servicing businesses, the Company reviewed its credit portfolio
and decided to accelerate the disposition of certain loans based on, in part,
cross-sell potential and overall relationship profitability. As a result, in
the third quarter of 1999, the Company identified exposures totaling
$1 billion and related outstandings of $759 million and categorized them as
available for sale and recorded a liquidity charge to noninterest income of
$124 million. At September 30, 1999, remaining exposures available for sale
totaled $728 million with related outstandings of $464 million. The provision
for credit losses for the quarter was $90 million. The increase from the $15
million in the prior quarter reflects the decision to accelerate the
disposition of certain loans, some of which were nonperforming, as well as
higher charge-offs in the Company's asset based lending businesses.
<PAGE> 3
Nonperforming assets declined to $155 million at September 30, 1999 from $220
million at June 30, 1999.
Return on average common equity for the third quarter of 1999 was 61.23%
compared with 24.19% in the third quarter of 1998. Return on average assets
for the third quarter of 1999 was 4.74% compared with 1.86% in the third
quarter of 1998. For the first nine months of 1999, return on average common
equity totaled 36.63% compared with 24.39% in 1998. Return on average assets
was 2.85% for the first nine months of 1999 compared with 1.90% in 1998.
Net interest income on a taxable equivalent basis for the third quarter
increased to $429 million from $427 million in the second quarter of 1999.
For the first nine months of 1999, net interest income on a taxable equivalent
basis was $1,292 million compared with $1,258 million in the first nine months
of 1998.
Fees from the Company's securities servicing businesses reached $311
million for the third quarter compared with $258 million last year. For the
first nine months of 1999 fees from the Company's securities servicing
businesses totaled $904 million, growing by 24% compared with the
corresponding period of the prior year.
In cash processing, fees from cash management were up 7% for the quarter
driven by continued cross selling to the Company's securities servicing
customers. Fees from funds transfer grew by 11% from the previous year, the
result of continued market share gains and the firming global economy. Trade
finance fees were down 6% from a year ago primarily due to the sale of BNYFC.
Overall, cash processing fees grew by 4% reaching $69 million for the quarter.
For the first nine months, cash processing fees increased 8% to $208 million.
Trust and investment fees were $61 million for the quarter, an increase
of 15% over last year, led by strong results from personal trust, personal
asset management and retail investment products. Higher transaction flows in
the Company's European securities servicing business drove foreign exchange
and other trading revenues up to $45 million this quarter compared with $30
million in the third quarter last year.
<PAGE> 4
Tangible diluted earnings per share (earnings before the amortization of
goodwill and intangibles) were $1.05 per share in the third quarter of 1999,
up from 41 cents per share in the third quarter of 1998. On the same basis,
tangible return on average common equity was 86.97% in 1999 compared with
37.56% in 1998; and tangible return on average assets was 4.96% in 1999
compared with 2.03% in 1998. Tangible diluted earnings per share were $1.91
per share for the first nine months of 1999, compared with $1.20 per share in
1998. Tangible return on average common equity was 54.08% in the first nine
months of 1999 compared with 37.47% in 1998; and tangible return on average
assets was 3.06% in the first nine months of 1999 compared with 2.07% last
year. Amortization of intangibles for the third quarter and the first nine
months of 1999 was $23 million and $76 million compared with $26 million and
$75 million last year.
The Company's estimated Tier 1 capital and Total capital ratios were
8.40% and 12.56% at September 30, 1999 compared with 7.63% and 11.52% at June
30, 1999, and 7.52% and 11.64% at September 30, 1998. The leverage ratio was
8.02% at September 30, 1999 compared with 7.65% at June 30, 1999 and 7.24% one
year ago. The Company's tangible common equity as a percent of total assets
was 5.93% at September 30, 1999 compared with 5.59% at June 30, 1999 and
September 30, 1998. In the first nine months of 1999, the Company repurchased
44 million shares of the 48 million authorized under its buyback programs.
NET INTEREST INCOME
<TABLE>
<CAPTION>
3rd 2nd 3rd
Quarter Quarter Quarter Year to Date
------- ------- ------- ---------------
(In millions) 1999 1999 1998 1999 1998
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net Interest Income $429 $427 $430 $1,292 $1,258
Net Interest Rate
Spread 2.21% 2.18% 2.14% 2.23% 2.21%
Net Yield on Interest
Earning Assets 3.16 3.07 3.15 3.14 3.25
</TABLE>
Net interest income on a taxable equivalent basis was $429 million in the
third quarter of 1999 compared with $427 million in the second quarter of 1999
<PAGE> 5
and $430 million in the third quarter of 1998. The net interest rate spread
was 2.21% in the third quarter of 1999, compared with 2.18% in the second
quarter of 1999 and 2.14% one year ago. The net yield on interest-earning
assets was 3.16% compared with 3.07% in the second quarter of 1999 and 3.15%
in last year's third quarter.
For the first nine months of 1999, net interest income on a taxable
equivalent basis, amounted to $1,292 million compared with $1,258 million in
the first nine months of 1998. The year-to-date net interest rate spread was
2.23% in 1999 compared with 2.21% in 1998, while the net yield on interest-
earning assets was 3.14% in 1999 and 3.25% in 1998.
The increase in net interest income from the second quarter was caused by
a higher yield, reflecting a rising rate environment which increases the value
of interest-free deposits, as well as by the temporary reinvestment of BNYFC
sale proceeds.
NONINTEREST INCOME
<TABLE>
<CAPTION>
3rd 2nd 3rd
Quarter Quarter Quarter Year-to-Date
------- ------- ------- ------------
(In millions) 1999 1999 1998 1999 1998
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Servicing Fees
Securities $ 311 $302 $258 $ 904 $ 726
Cash 69 70 66 208 193
------ ---- ---- ------ ------
380 372 324 1,112 919
Trust and Investment Fees 61 60 53 179 154
Service Charges and Fees 77 91 81 251 248
Foreign Exchange and
Other Trading Activities 45 46 30 133 118
Securities Gains 50 50 51 150 125
Gain on the Sale of BNYFC 1,020 - - 1,020 -
Liquidity Charge - Loans Available
for Sale (124) - - (124) -
Other 22 32 33 86 121
------ ---- ---- ------ ------
Total Noninterest Income $1,531 $651 $572 $2,807 $1,685
====== ==== ==== ====== ======
</TABLE>
Securities servicing fees grew 21% reaching $311 million compared with
$258 million from a year ago. Fees from trust and investment were $61 million
up 15% from the third quarter of 1998. The decline in service charges and
<PAGE> 6
fees and other income primarily reflects the sale of BNYFC. Securities gains
were $50 million, which compares to $50 million in the second quarter of 1999
and $51 million in the third quarter of 1998. On a pro forma basis,
reflecting the sale of BNYFC and excluding the liquidity charge on the
accelerated disposal of loans, noninterest income for the third quarter was
$629 million up 16% from $541 million in the third quarter of 1998.
NONINTEREST EXPENSE AND INCOME TAXES
Noninterest expense for the third quarter of 1999 was $515 million up
from $481 million in 1998. The increase was principally due to acquisitions
and growth in the Company's securities servicing businesses.
The efficiency ratio for the third quarter of 1999 was 50.7% compared
with 49.9% in the second quarter of 1999 and 50.6% for the third quarter of
1998. For the first nine months of 1999, the efficiency ratio was 50.3%
compared with 50.3% last year. The computation of the efficiency ratio
excludes the gain on the sale of BNYFC and the liquidity charge.
The effective tax rates for the third quarter and the first nine months
of 1999 were 40.4% and 37.9% compared with 35.1% and 35.4% last year. The
increase in these rates reflect the sale of BNYFC.
<PAGE> 7
NONPERFORMING ASSETS
<TABLE>
<CAPTION>
Change
9/30/99 vs.
(Dollars in millions) 9/30/99 6/30/99 6/30/99
-------- -------- --------
<S> <C> <C> <C>
Loans:
Commercial Real Estate $ 1 $ 1 $ -
Other Commercial 12 103 (91)
Foreign 69 68 1
Regional Commercial 29 33 (4)
Loans Available for Sale 31 - 31
---- ---- ----
Total Loans 142 205 (63)
Other Real Estate 13 15 (2)
---- ---- ----
Total $155 $220 $(65)
==== ==== ====
Nonperforming Assets Ratio 0.4% 0.6%
Allowance/Nonperforming Loans 420.1 290.2
Allowance/Nonperforming Assets 384.2 271.0
</TABLE>
The decline in nonperforming assets primarily reflects the decision to
sell certain loans as well as higher charge-offs in the Company's asset based
lending businesses. The June 30, 1999 nonperforming assets exclude $21
million of loans related to the BNYFC transaction.
CREDIT LOSS PROVISION AND NET CHARGE-OFFS
<TABLE>
<CAPTION>
3rd 2nd 3rd
Quarter Quarter Quarter Year-to-date
------- ------- ------- ------------
(In millions) 1999 1999 1998 1999 1998
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Provision $ 90 $ 15 $ 5 $ 120 $ 15
==== ==== ==== ===== ====
Net(Charge-offs)Recoveries:
Commercial Real Estate $ (1) $ 1 $ 5 $ (2) $ 7
Other Commercial (61) (13) (16) (82) (22)
Consumer (1) (1) (1) (3) (3)
Foreign (23) (2) (1) (34) (2)
Other (3) - - (2) (2)
---- ---- ---- ----- ----
Total $(89) $(15) $(13) $(123) $(22)
==== ==== ==== ===== ====
Other Real Estate Expenses $ - $ - $ - $ 1 $ 2
</TABLE>
The provision for credit losses for the quarter was $90 million
reflecting the decision to accelerate the disposition of certain loans and
higher charge-offs related to the Company's asset based lending businesses.
The allowance for credit losses was $594 million, or 1.57% of loans at
<PAGE> 8
September 30, 1999 compared with $595 million, or 1.55% of loans at June 30,
1999 and $638 million, or 1.66% of loans at September 30, 1998. The ratio of
the allowance to nonperforming assets was 384.2% at September 30, 1999
compared with 271.0% at June 30, 1999 and 327.8% at September 30, 1998.
***************************
(Financial highlights and detailed financial statements are attached.)
<PAGE> 9
THE BANK OF NEW YORK COMPANY, INC.
Financial Highlights
(Dollars in millions, except per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
1999 1998 Change
---- ---- ------
<S> <C> <C> <C>
For the Three Months Ended September 30:
- ----------------------------------------
Net Income $ 773 $ 301 157.0%
Per Common Share:
Basic $ 1.04 $ 0.40 160.0
Diluted 1.02 0.39 161.5
Cash Dividends Paid 0.14 0.14 -
Return on Average Common Shareholders'
Equity 61.23% 24.19%
Return on Average Assets 4.74 1.86
For the Nine Months Ended September 30:
- ---------------------------------------
Net Income $ 1,411 $ 879 60.5%
Per Common Share:
Basic $ 1.87 $ 1.18 58.5
Diluted 1.84 1.13 62.8
Cash Dividends Paid 0.42 0.40 5.0
Return on Average Common Shareholders'
Equity 36.63% 24.39%
Return on Average Assets 2.85 1.90
As of September 30:
- -------------------
Assets $63,158 $63,812 -1.0%
Loans 37,757 38,506 -1.9
Securities 5,892 5,911 -0.3
Deposits - Domestic 26,309 26,859 -2.0
- Foreign 18,486 17,633 4.8
Long-Term Debt 2,416 2,022 19.5
Minority Interest - Preferred Securities 1,500 1,300 15.4
Preferred Shareholders' Equity 1 1 -
Common Shareholders' Equity 4,895 5,013 -2.4
Common Shareholders' Equity Per Share 6.65 6.63 0.3
Market Value Per Share of Common Stock 33.44 27.38 22.1
Allowance for Credit Losses as a Percent
of Loans 1.57% 1.66%
Tier 1 Capital Ratio 8.40 7.52
Total Capital Ratio 12.56 11.64
Leverage Ratio 8.02 7.24
Tangible Common Equity Ratio 5.93 5.59
</TABLE>
<PAGE> 10
THE BANK OF NEW YORK COMPANY, INC.
Consolidated Statements of Income
(In millions, except per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
For the three For the nine
months ended months ended
September 30, September 30,
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Interest Income
- ---------------
Loans $ 643 $ 708 $1,962 $2,073
Securities
Taxable 63 64 190 209
Exempt from Federal Income Taxes 13 16 36 46
------ ----- ------ ------
76 80 226 255
Deposits in Banks 62 44 180 127
Federal Funds Sold and Securities Purchased
Under Resale Agreements 49 68 147 140
Trading Assets 4 6 15 15
------ ----- ------ ------
Total Interest Income 834 906 2,530 2,610
------ ----- ------ ------
Interest Expense
- ----------------
Deposits 320 367 961 1,034
Federal Funds Purchased and Securities Sold
Under Repurchase Agreements 32 38 99 104
Other Borrowed Funds 27 52 102 154
Long-Term Debt 38 34 108 100
------ ----- ------ ------
Total Interest Expense 417 491 1,270 1,392
------ ----- ------ ------
Net Interest Income 417 415 1,260 1,218
- -------------------
Provision for Credit Losses 90 5 120 15
------ ----- ------ ------
Net Interest Income After Provision for
Credit Losses 327 410 1,140 1,203
------ ----- ------ ------
Noninterest Income
- ------------------
Processing Fees
Securities 311 258 904 726
Cash 69 66 208 193
------ ----- ------ ------
380 324 1,112 919
Trust and Investment Fees 61 53 179 154
Service Charges and Fees 77 81 252 248
Securities Gains 50 51 149 125
Other 963 63 1,115 239
------ ----- ------ ------
Total Noninterest Income 1,531 572 2,807 1,685
------ ----- ------ ------
Noninterest Expense
- -------------------
Salaries and Employee Benefits 300 294 922 863
Net Occupancy 41 41 122 126
Furniture and Equipment 25 22 69 63
Other 149 124 424 368
------ ----- ------ ------
Total Noninterest Expense 515 481 1,537 1,420
------ ----- ------ ------
Income Before Income Taxes 1,343 501 2,410 1,468
Income Taxes 542 175 915 519
Distribution on Trust Preferred Securities 28 25 84 70
------ ----- ------ ------
Net Income $ 773 $ 301 $1,411 $ 879
- ---------- ====== ===== ====== ======
Net Income Available to Common Shareholders $ 773 $ 301 $1,411 $ 879
- ------------------------------------------- ====== ===== ====== ======
Per Common Share Data:
- ----------------------
Basic Earnings $ 1.04 $0.40 $ 1.87 $ 1.18
Diluted Earnings 1.02 0.39 1.84 1.13
Cash Dividends Paid 0.14 0.14 0.42 0.40
Diluted Shares Outstanding 754 779 769 781
</TABLE>
<PAGE> 11
THE BANK OF NEW YORK COMPANY, INC.
Consolidated Balance Sheets
(Dollars in millions, except per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
September 30, December 31,
1999 1998
---- ----
<S> <C> <C>
Assets
- ------
Cash and Due from Banks $ 6,430 $ 3,999
Interest-Bearing Deposits in Banks 4,543 4,504
Securities:
Held-to-Maturity 844 964
Available-for-Sale 5,048 5,451
------- -------
Total Securities 5,892 6,415
Trading Assets at Fair Value 1,787 1,637
Federal Funds Sold and Securities Purchased Under Resale
Agreements 1,614 3,281
Loans (less allowance for credit losses of $594 in 1999
and $636 in 1998) 37,163 37,750
Premises and Equipment 848 856
Due from Customers on Acceptances 399 946
Accrued Interest Receivable 284 355
Other Assets 4,198 3,760
------- -------
Total Assets $63,158 $63,503
======= =======
Liabilities and Shareholders' Equity
- ------------------------------------
Deposits
Noninterest-Bearing (principally domestic offices) $11,608 $11,480
Interest-Bearing
Domestic Offices 14,858 16,091
Foreign Offices 18,329 17,061
------- -------
Total Deposits 44,795 44,632
Federal Funds Purchased and Securities
Sold Under Repurchase Agreements 2,055 1,571
Other Borrowed Funds 3,834 4,536
Acceptances Outstanding 401 951
Accrued Taxes and Other Expenses 2,711 2,183
Accrued Interest Payable 116 188
Other Liabilities 434 608
Long-Term Debt 2,416 2,086
------- -------
Total Liabilities 56,762 56,755
------- -------
Guaranteed Preferred Beneficial Interests in the
Company's Junior Subordinated Deferrable Interest
Debentures 1,500 1,300
------- -------
Shareholders' Equity
Class A Preferred Stock - par value $25.00 per share,
authorized 5,000,000 shares, outstanding 16,887 shares
in 1999 and 22,820 shares in 1998 1 1
Common Stock-par value $7.50 per share,
authorized 1,600,000,000 shares, issued
975,695,998 shares in 1999 and
970,767,767 shares in 1998 7,318 7,281
Additional Capital 265 142
Retained Earnings 2,411 1,318
Accumulated Other Comprehensive Income 63 312
------- -------
10,058 9,054
Less: Treasury Stock (238,009,759 shares in 1999
and 197,648,459 shares in 1998), at cost 5,149 3,593
Loan to ESOP (1,801,003 shares in 1999
and 1998), at cost 13 13
------- -------
Total Shareholders' Equity 4,896 5,448
------- -------
Total Liabilities and Shareholders' Equity $63,158 $63,503
======= =======
<FN>
- ----------------------------------------------------------------------------------------
Note: The balance sheet at December 31, 1998 has been derived from the audited financial
statements at that date.
</FN>
</TABLE>
<PAGE> 12
THE BANK OF NEW YORK COMPANY, INC.
Average Balances and Rates on a Taxable Equivalent Basis
(Preliminary)
(Dollars in millions)
<TABLE>
<CAPTION>
For the three months For the three months
ended September 30, 1999 ended September 30, 1998
------------------------------ ------------------------------
Average Average Average Average
Balance Interest Rate Balance Interest Rate
------- -------- ------- ------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
- ------
Interest-Bearing
Deposits in Banks
(primarily foreign) $ 5,641 $ 62 4.35% $ 3,247 $ 44 5.43%
Federal Funds Sold and Securities
Purchased Under Resale Agreements 4,051 49 4.76 4,889 68 5.50
Loans
Domestic Offices 19,224 349 7.20 20,074 383 7.56
Foreign Offices 18,522 294 6.30 18,846 327 6.88
------- ----- ------- -----
Total Loans 37,746 643 6.76 38,920 710 7.23
------- ----- ------- -----
Securities
U.S. Government Obligations 2,452 36 5.85 2,907 42 5.73
U.S. Government Agency Obligations 840 14 6.56 465 8 6.67
Obligations of States and
Political Subdivisions 570 11 7.87 687 13 7.80
Other Securities, including
Trading Securities 2,537 31 4.93 2,984 36 4.76
------- ----- ------- -----
Total Securities 6,399 92 5.76 7,043 99 5.58
------- ----- ------- -----
Total Interest-Earning Assets 53,837 846 6.24% 54,099 921 6.75%
----- -----
Allowance for Credit Losses (593) (646)
Cash and Due from Banks 3,240 3,133
Other Assets 7,579 7,446
------- -------
TOTAL ASSETS $64,063 $64,032
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
- ------------------------------------
Interest-Bearing Deposits
Money Market Rate Accounts $ 4,891 54 4.37% $ 5,078 62 4.87%
Savings 7,763 45 2.32 7,645 50 2.60
Certificates of Deposit
$100,000 & Over 430 5 5.03 666 9 5.46
Other Time Deposits 2,208 24 4.27 2,228 27 4.78
Foreign Offices 18,664 192 4.07 17,542 219 4.94
------- ----- ------- -----
Total Interest-Bearing Deposits 33,956 320 3.74 33,159 367 4.39
Federal Funds Purchased and
Securities Sold Under Repurchase
Agreements 2,827 32 4.50 3,205 38 4.75
Other Borrowed Funds 2,012 27 5.34 3,827 52 5.31
Long-Term Debt 2,313 38 6.59 1,998 34 6.81
------- ----- ------- -----
Total Interest-Bearing Liabilities 41,108 417 4.03% 42,189 491 4.61%
----- -----
Noninterest-Bearing Deposits 10,580 10,220
Other Liabilities 5,870 5,391
Minority Interest-Preferred Securities 1,500 1,300
Preferred Stock - 1
Common Shareholders' Equity 5,005 4,931
------- -------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $64,063 $64,032
======= =======
Net Interest Earnings
and Interest Rate Spread $ 429 2.21% $ 430 2.14%
===== ==== ===== ====
Net Yield on Interest-Earning Assets 3.16% 3.15%
==== ====
</TABLE>
<PAGE> 13
THE BANK OF NEW YORK COMPANY, INC.
Average Balances and Rates on a Taxable Equivalent Basis
(Preliminary)
(Dollars in millions)
<TABLE>
<CAPTION>
For the nine months For the nine months
ended September 30, 1999 ended September 30, 1998
------------------------------ ------------------------------
Average Average Average Average
Balance Interest Rate Balance Interest Rate
------- -------- ------- ------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
- ------
Interest-Bearing
Deposits in Banks
(primarily foreign) $ 5,321 $ 180 4.52% $ 3,084 $ 127 5.51%
Federal Funds Sold and Securities
Purchased Under Resale Agreements 4,169 147 4.73 3,466 140 5.39
Loans
Domestic Offices 19,913 1,073 7.21 19,620 1,137 7.76
Foreign Offices 19,109 890 6.23 18,234 938 6.88
------- ------ ------- ------
Total Loans 39,022 1,963 6.73 37,854 2,075 7.33
------- ------ ------- ------
Securities
U.S. Government Obligations 2,518 109 5.79 3,211 139 5.77
U.S. Government Agency Obligations 857 41 6.43 544 27 6.53
Obligations of States and
Political Subdivisions 592 35 7.82 669 41 8.08
Other Securities, including
Trading Securities 2,538 87 4.56 2,933 101 4.61
------- ------ ------- ------
Total Securities 6,505 272 5.59 7,357 308 5.58
------- ------ ------- ------
Total Interest-Earning Assets 55,017 2,562 6.23% 51,761 2,650 6.84%
------ ------
Allowance for Credit Losses (619) (644)
Cash and Due from Banks 3,130 3,400
Other Assets 8,002 7,456
------- -------
TOTAL ASSETS $65,530 $61,973
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
- ------------------------------------
Interest-Bearing Deposits
Money Market Rate Accounts $ 5,086 160 4.20% $ 4,931 176 4.78%
Savings 7,793 131 2.24 7,689 147 2.56
Certificates of Deposit
$100,000 & Over 559 20 4.89 690 28 5.49
Other Time Deposits 2,195 71 4.31 2,276 82 4.83
Foreign Offices 18,971 579 4.08 15,931 601 5.04
------- ------ ------- ------
Total Interest-Bearing Deposits 34,604 961 3.71 31,517 1,034 4.39
Federal Funds Purchased and
Securities Sold Under Repurchase
Agreements 3,061 99 4.32 2,973 104 4.65
Other Borrowed Funds 2,591 102 5.31 3,754 154 5.48
Long-Term Debt 2,225 108 6.45 1,935 100 6.85
------- ------ ------- ------
Total Interest-Bearing Liabilities 42,481 1,270 4.00% 40,179 1,392 4.63%
------ ------
Noninterest-Bearing Deposits 10,548 10,156
Other Liabilities 5,866 5,609
Minority Interest-Preferred Securities 1,482 1,210
Preferred Stock - 1
Common Shareholders' Equity 5,153 4,818
------- -------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $65,530 $61,973
======= =======
Net Interest Earnings
and Interest Rate Spread $1,292 2.23% $1,258 2.21%
====== ==== ====== ====
Net Yield on Interest-Earning Assets 3.14% 3.25%
==== ====
</TABLE>
