<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):
January 18, 2000
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
------------
Fourth Quarter of 1999 Financial Results
---------------------------------------
On January 18, 2000, The Bank of New York Company, Inc. issued a press release
containing unaudited interim financial information and accompanying discussion
for the fourth quarter of 1999. Exhibit 99 is a copy of such press release and
is incorporated herein by reference.
ITEM 7. Financial Statements, Pro Forma Financial Information and Exhibits
------------------------------------------------------------------
(c) Exhibit Description
------- -----------
99 Unaudited interim financial information and
accompanying discussion for the fourth quarter
of 1999 contained in the press release dated
January 18, 2000, 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: January 18, 2000
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 fourth quarter of 1999 contained in the
press release dated January 18, 2000, 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 Fourth Quarter Diluted E.P.S. of 44 Cents
Record Fourth Quarter Return On Equity of 26%
Fiduciary and Servicing Fees Hit Record Levels for Year and Quarter
NEW YORK, N.Y., January 18, 2000 -- The Bank of New York Company, Inc. (NYSE:
BK) reports record fourth quarter diluted earnings per share of 44 cents, up
10% from the 40 cents earned in the fourth quarter of 1998. Net income for
the fourth quarter was a record $327 million, up 5% from the $313 million
earned in the same period last year. The prior period included the results of
BNY Financial Corporation ("BNYFC") which was divested in the third quarter of
1999. Diluted earnings per share were $2.27 for the year of 1999, up 48% from
the $1.53 earned last year. Net income for the year was a record $1,739
million, an increase of 46% over last year's $1,192 million. The 1999 results
reflect the gain on the sale of BNYFC and the decision to exit a portfolio of
credits on an accelerated basis.
"Record results for the year and fourth quarter reflect the successful
execution of the Company's consistent, long-term strategy to emphasize
fiduciary, securities servicing, and cash processing services to our global
clients. Our continued repositioning of the Company's business profile, as
evidenced by our acquisition of Royal Bank of Scotland Trust Bank and the
divestiture of our commercial finance business, drove noninterest income to
61% of total revenue, up from 58% last year," said Thomas A. Renyi, Chairman
and CEO. New business wins, greater processing volumes from existing clients
reflecting favorable markets worldwide, and the acquisition of Royal Bank of
Scotland Trust Bank (RBSTB) caused securities servicing revenues to rise 25%
for the quarter. Private client services and asset management fees grew 22%,
led by strong investment performance and significant new business wins as well
as the acquisition of Estabrook Capital Management, Inc.
Return on average common equity for the fourth quarter of 1999 was a
record 25.98% compared with 23.88% in the fourth quarter of 1998. Return on
average assets for the fourth quarter of 1999 was 1.84% compared with 1.86% in
the fourth quarter of 1998. For the year of 1999, return on average common
equity totaled 34.0% compared with 24.25% in 1998. Return on average assets
was 2.60% for the year compared with 1.89% in 1998. The 1999 annual ratios
reflect the gain on the sale of BNYFC.
Securities servicing revenues were up 24% to a record $1,245 million in
1999 reflecting particular strength in global custody, mutual funds,
securities lending, ADR's and execution services. Market share gains from new
business wins, as well as the RBSTB acquisition, resulted in assets under
custody reaching $6.3 trillion at year end. Fees from the Company's
securities servicing businesses reached $341 million for the fourth quarter
compared with $274 million last year. All areas contributed to an internal
growth rate of 15% for 1999.
Private client services and asset management fees were up 17% to a record
$244 million in 1999, led by strong results from personal trust, personal
asset management and retail investment products. Fees were $65 million for the
quarter, up a strong 22% over last year, driven by strong investment
performance which continues to attract new customers, combined with the
positive impact of acquisitions.
For the year, cash processing fees increased 7% to a record $274 million.
For the quarter, fees from cash management were up 16%, driven by continued
cross selling to the Company's securities servicing and specialized industry
customers. Fees from funds transfer grew by 12% from last year's fourth
quarter, the result of continued market share gains from the outsourcing of
electronic payments and from clients in the financial services and online
brokerage industries. Trade finance fees were down $3 million from a year ago
primarily due to the sale of BNYFC. Overall, cash processing fees grew by 4%
reaching $65 million for the quarter.
Higher transaction flows in the Company's European securities servicing
business drove foreign exchange and other trading revenues up 12% to a record
$189 million this year compared with $170 million last year. Foreign exchange
and other trading revenues were $56 million in the fourth quarter of 1999
compared with $51 million in 1998.
Net interest income on a taxable equivalent basis for the fourth quarter
increased to $453 million from $429 million in the third quarter of 1999. For
the year, net interest income on a taxable equivalent basis was $1,745 million
compared with $1,709 million in 1998.
Tangible diluted earnings per share (earnings before the amortization of
goodwill and intangibles) were 46 cents per share in the fourth quarter of
1999, up from 42 cents per share in the fourth quarter of 1998. Tangible
return on average common equity was 38.56% in the fourth quarter of 1999
compared with 36.28% in the fourth quarter of 1998; and tangible return on
average assets was 1.99% in the fourth quarter of 1999 compared with 2.03% in
the fourth quarter of 1998. Tangible diluted earnings per share were $2.37
per share in 1999, compared with $1.62 per share in 1998. On the same basis,
tangible return on average common equity was 50.23% in 1999 compared with
37.13% in 1998; and tangible return on average assets was 2.78% in 1999
compared with 2.06% in 1998. The 1999 annual ratios were impacted by the sale
of BNYFC. Amortization of intangibles for the fourth quarter and 1999 was $26
million and $102 million compared with $26 million and $101 million last year.
The Company's estimated Tier 1 capital and Total capital ratios were
7.66% and 11.90% at December 31, 1999 compared with 8.38% and 12.52% at
September 30, 1999, and 7.89% and 11.90% at December 31, 1998. The leverage
ratio was 7.20% at December 31, 1999 compared with 8.10% at September 30, 1999
and 7.46% one year ago. The Company's tangible common equity as a percent of
total assets was 4.80% at December 31, 1999 compared with 5.93% at September
30, 1999 and 6.25% at December 31, 1998. The decline in the leverage and
tangible common equity ratios reflects the acquisition of RBSTB, which brought
approximately $10 billion in highly liquid, short-term assets. In 1999, the
Company repurchased 44 million of the 48 million shares authorized under its
common stock repurchase programs. The Company's Board of Directors has
approved an additional 10 million share repurchase program.
NET INTEREST INCOME
<TABLE>
<CAPTION>
4th 3rd 4th
Quarter Quarter Quarter Year
------- ------- ------- ---------------
(In millions) 1999 1999 1998 1999 1998
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net Interest Income $453 $429 $451 $1,745 $1,709
Net Interest Rate
Spread 2.07% 2.21% 2.22% 2.19% 2.22%
Net Yield on Interest
Earning Assets 3.02 3.16 3.20 3.11 3.24
</TABLE>
Net interest income on a taxable equivalent basis was $453 million in the
fourth quarter of 1999 compared with $429 million in the third quarter of 1999
and $451 million in the fourth quarter of 1998. The net interest rate spread
was 2.07% in the fourth quarter of 1999, compared with 2.21% in the third
quarter of 1999 and 2.22% one year ago. The net yield on interest-earning
assets was 3.02% compared with 3.16% in the third quarter of 1999 and 3.20% in
last year's fourth quarter.
For the year of 1999, net interest income on a taxable equivalent basis,
amounted to $1,745 million compared with $1,709 million in 1998. The net
interest rate spread was 2.19% in 1999 compared with 2.22% in 1998, while the
net yield on interest-earning assets was 3.11% in 1999 and 3.24% in 1998.
The increase in net interest income and the decline in spread and yield
from the third quarter was caused by growth in highly liquid but lower
yielding assets acquired in the purchase of RBSTB.
NONINTEREST INCOME
<TABLE>
<CAPTION>
4th 3rd 4th
Quarter Quarter Quarter Year
------- ------- ------- ------------
(In millions) 1999 1999 1998 1999 1998
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Servicing Fees
Securities $341 $ 311 $274 $1,245 $1,000
Cash 65 69 63 274 256
---- ---- ---- ------ ------
406 380 337 1,519 1,256
Private Client Services and
Asset Management Fees 65 61 54 244 208
Service Charges and Fees 88 77 79 338 326
Foreign Exchange and
Other Trading Activities 56 45 51 189 170
Securities Gains 49 50 50 199 175
Gain on the Sale of BNYFC - 1,020 - 1,020 -
Liquidity Charge - Loans Available
for Sale - (124) - (124) -
Other 22 22 26 108 148
---- ---- ---- ------ ------
Total Noninterest Income $686 $1,531 $597 $3,493 $2,283
==== ====== ==== ====== ======
</TABLE>
Securities servicing fees grew 25% reaching $341 million compared with
$274 million from a year ago reflecting strong internal growth and the
acquisition of RBSTB. Fees from private client services and asset management
were $65 million up 22% from the fourth quarter of 1998. Securities gains
were $49 million, which compares to $50 million in the third quarter of 1999
and the fourth quarter of 1998. On a proforma basis, reflecting the sale of
BNYFC and excluding the liquidity charge on the accelerated disposition of
loans, noninterest income for the third quarter was $629 million.
NONINTEREST EXPENSE AND INCOME TAXES
Noninterest expense for the fourth quarter of 1999 was $570 million up
from $507 million in 1998. The increase was principally due to the
acquisition of RBSTB and other acquisitions, as well as growth in the
Company's securities servicing businesses.
The efficiency ratio for the fourth quarter of 1999 was 52.3% compared
with 50.7% in the third quarter of 1999 and 50.8% for the fourth quarter of
1998. The increase in the efficiency ratio is primarily attributable to the
acquisition of RBSTB. For the year of 1999, the efficiency ratio was 50.8%
compared with 50.5% last year excluding the gain on the sale of BNYFC and the
liquidity charge.
The effective tax rates for the fourth quarter and the year of 1999 were
34.3% and 37.3% compared with 34.7% and 35.2% last year.
NONPERFORMING ASSETS
<TABLE>
<CAPTION>
Change
12/31/99 vs.
(Dollars in millions) 12/31/99 9/30/99 9/30/99
-------- -------- --------
<S> <C> <C> <C>
Loans:
Commercial Real Estate $ - $ 1 $ (1)
Other Commercial 20 12 8
Foreign 63 69 (6)
Regional Commercial 30 29 1
Loans Available for Sale 33 31 2
---- ---- ----
Total Loans 146 142 4
Other Real Estate 12 13 (1)
---- ---- ----
Total $158 $155 $ 3
==== ==== ====
Nonperforming Assets Ratio 0.4% 0.4%
Allowance/Nonperforming Loans 407.7 420.1
Allowance/Nonperforming Assets 376.9 384.2
</TABLE>
Nonperforming assets totaled $158 million at December 31, 1999, compared
with $155 million at September 30, 1999, an increase of $3 million. At
December 31, 1999, remaining credit exposures available for sale totaled $538
million with outstandings of $313 million compared with $726 million and $466
million at September 30, 1999.
CREDIT LOSS PROVISION AND NET CHARGE-OFFS
<TABLE>
<CAPTION>
4th 3rd 4th
Quarter Quarter Quarter Year
------- ------- ------- ------------
(In millions) 1999 1999 1998 1999 1998
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Provision $ 15 $ 90 $ 5 $ 135 $ 20
==== ==== ==== ===== ====
Net(Charge-offs)Recoveries:
Commercial Real Estate $ 1 $ (1) $ - $ (1) $ 7
Other Commercial (11) (61) (3) (92) (24)
Consumer (1) (1) (1) (4) (5)
Foreign (2) (23) (1) (37) (4)
Other (1) (3) (2) (3) (3)
---- ---- ---- ----- ----
Total $(14) $(89) $ (7) $(137) $(29)
==== ==== ==== ===== ====
Other Real Estate Expenses $ - $ - $ - $ 1 $ 2
</TABLE>
The allowance for credit losses was $595 million, or 1.58% of loans at
December 31, 1999 compared with $594 million, or 1.57% of loans at
September 30, 1999 and $636 million, or 1.66% of loans at December 31, 1998.
The ratio of the allowance to nonperforming assets was 376.9% at
December 31, 1999 compared with 384.2% at September 30, 1999 and 328.9% at
December 31, 1998.
***************************
(Financial highlights and detailed financial statements are attached.)
<PAGE> 8
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 December 31:
- ----------------------------------------
Net Income $ 327 $ 313 4.5%
Per Common Share:
Basic $ 0.44 $ 0.41 7.3
Diluted 0.44 0.40 10.0
Cash Dividends Paid 0.16 0.14 14.3
Return on Average Common Shareholders'
Equity 25.98% 23.88%
Return on Average Assets 1.84 1.86
For the Twelve Months Ended December 31:
- ---------------------------------------
Net Income $ 1,739 $ 1,192 45.9%
Per Common Share:
Basic $ 2.31 $ 1.59 45.5
Diluted 2.27 1.53 48.4
Cash Dividends Paid 0.58 0.54 7.4
Return on Average Common Shareholders'
Equity 34.00% 24.25%
Return on Average Assets 2.60 1.89
As of December 31:
- -------------------
Assets $74,621 $63,503 17.5%
Loans 37,549 38,386 -2.2
Securities 6,900 6,415 7.6
Deposits - Domestic 27,853 27,468 1.4
- Foreign 27,748 17,164 61.7
Long-Term Debt 2,811 2,086 34.8
Minority Interest - Preferred Securities 1,500 1,300 15.4
Preferred Shareholders' Equity 1 1 -
Common Shareholders' Equity 5,142 5,447 -5.6
Common Shareholders' Equity Per Share 6.96 7.06 -1.4
Market Value Per Share of Common Stock 40.00 40.25 -0.6
Allowance for Credit Losses as a Percent
of Loans 1.58% 1.66%
Tier 1 Capital Ratio 7.66 7.89
Total Capital Ratio 11.90 11.90
Leverage Ratio 7.20 7.46
Tangible Common Equity Ratio 4.80 6.25
</TABLE>
<PAGE> 9
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 twelve
months ended months ended
December 31, December 31,
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Interest Income
- ---------------
Loans $ 674 $ 697 $2,636 $2,770
Securities
Taxable 67 61 257 271
Exempt from Federal Income Taxes 14 16 50 61
------ ----- ------ ------
81 77 307 332
Deposits in Banks 67 57 247 184
Federal Funds Sold and Securities Purchased
Under Resale Agreements 58 64 205 203
Trading Assets 63 5 78 21
------ ----- ------ ------
Total Interest Income 943 900 3,473 3,510
------ ----- ------ ------
Interest Expense
- ----------------
Deposits 402 340 1,363 1,374
Federal Funds Purchased and Securities Sold
Under Repurchase Agreements 32 42 131 145
Other Borrowed Funds 24 50 126 204
Long-Term Debt 44 36 152 136
------ ----- ------ ------
Total Interest Expense 502 468 1,772 1,859
------ ----- ------ ------
Net Interest Income 441 432 1,701 1,651
- -------------------
Provision for Credit Losses 15 5 135 20
------ ----- ------ ------
Net Interest Income After Provision for
Credit Losses 426 427 1,566 1,631
------ ----- ------ ------
Noninterest Income
- ------------------
Processing Fees
Securities 341 274 1,245 1,000
Cash 65 63 274 256
------ ----- ------ ------
406 337 1,519 1,256
Private Client Services and
Asset Management Fees 65 54 244 208
Service Charges and Fees 88 79 338 326
Securities Gains 49 50 199 175
Other 78 77 1,193 318
------ ----- ------ ------
Total Noninterest Income 686 597 3,493 2,283
------ ----- ------ ------
Noninterest Expense
- -------------------
Salaries and Employee Benefits 329 315 1,251 1,178
Net Occupancy 43 40 165 166
Furniture and Equipment 27 23 96 86
Other 171 129 595 498
------ ----- ------ ------
Total Noninterest Expense 570 507 2,107 1,928
------ ----- ------ ------
Income Before Income Taxes 542 517 2,952 1,986
Income Taxes 187 179 1,101 699
Distribution on Trust Preferred Securities 28 25 112 95
------ ----- ------ ------
Net Income $ 327 $ 313 $1,739 $1,192
- ---------- ====== ===== ====== ======
Net Income Available to Common Shareholders $ 327 $ 313 $1,739 $1,192
- ------------------------------------------- ====== ===== ====== ======
Per Common Share Data:
- ----------------------
Basic Earnings $ 0.44 $0.41 $ 2.31 $ 1.59
Diluted Earnings 0.44 0.40 2.27 1.53
Cash Dividends Paid 0.16 0.14 0.58 0.54
Diluted Shares Outstanding 751 782 765 781
</TABLE>
<PAGE> 10
THE BANK OF NEW YORK COMPANY, INC.
Consolidated Balance Sheets
(Dollars in millions, except per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
December 31, December 31,
1999 1998
---- ----
<S> <C> <C>
Assets
- ------
Cash and Due from Banks $ 3,276 $ 3,999
Interest-Bearing Deposits in Banks 6,849 4,504
Securities:
Held-to-Maturity 871 964
Available-for-Sale 6,029 5,451
------- -------
Total Securities 6,900 6,415
Trading Assets at Fair Value 8,541 1,637
Federal Funds Sold and Securities Purchased Under Resale
Agreements 5,383 3,281
Loans (less allowance for credit losses of $595 in 1999
and $636 in 1998) 36,954 37,750
Premises and Equipment 893 856
Due from Customers on Acceptances 739 946
Accrued Interest Receivable 319 355
Other Assets 4,767 3,760
------- -------
Total Assets $74,621 $63,503
======= =======
Liabilities and Shareholders' Equity
- ------------------------------------
Deposits
Noninterest-Bearing (principally domestic offices) $12,174 $11,480
Interest-Bearing
Domestic Offices 16,319 16,091
Foreign Offices 27,108 17,061
------- -------
Total Deposits 55,601 44,632
Federal Funds Purchased and Securities
Sold Under Repurchase Agreements 1,337 1,571
Other Borrowed Funds 3,882 4,536
Acceptances Outstanding 740 951
Accrued Taxes and Other Expenses 2,614 2,183
Accrued Interest Payable 100 188
Other Liabilities 893 608
Long-Term Debt 2,811 2,086
------- -------
Total Liabilities 67,978 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 $2.00 per share,
authorized 5,000,000 shares, outstanding 16,787 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
977,961,165 shares in 1999 and
970,767,767 shares in 1998 7,335 7,281
Additional Capital 315 142
Retained Earnings 2,620 1,318
Accumulated Other Comprehensive Income 30 312
------- -------
10,301 9,054
Less: Treasury Stock (237,747,242 shares in 1999
and 197,648,459 shares in 1998), at cost 5,148 3,593
Loan to ESOP (1,444,005 shares in 1999
and 1,801,003 in 1998), at cost 10 13
------- -------
Total Shareholders' Equity 5,143 5,448
------- -------
Total Liabilities and Shareholders' Equity $74,621 $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> 11
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 December 31, 1999 ended December 31, 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) $ 6,029 $ 67 4.44% $ 4,484 $ 57 5.03%
Federal Funds Sold and Securities
Purchased Under Resale Agreements 4,436 58 5.13 5,108 64 4.94
Loans
Domestic Offices 19,095 345 7.17 20,226 373 7.32
Foreign Offices 19,368 330 6.75 19,558 327 6.62
------- ----- ------- -----
Total Loans 38,463 675 6.95 39,784 700 6.98
------- ----- ------- -----
Securities
U.S. Government Obligations 2,490 37 5.88 2,602 37 5.59
U.S. Government Agency Obligations 877 14 6.53 691 11 6.50
Obligations of States and
Political Subdivisions 575 11 7.98 680 13 7.70
Other Securities, including
Trading Securities 6,687 93 5.51 2,578 37 5.76
------- ----- ------- -----
Total Securities 10,629 155 5.82 6,551 98 5.97
------- ----- ------- -----
Total Interest-Earning Assets 59,557 955 6.36% 55,927 919 6.51%
----- -----
Allowance for Credit Losses (594) (637)
Cash and Due from Banks 3,303 2,755
Other Assets 8,204 8,563
------- -------
TOTAL ASSETS $70,470 $66,608
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
- ------------------------------------
Interest-Bearing Deposits
Money Market Rate Accounts $ 5,307 62 4.60% $ 5,195 56 4.28%
Savings 7,651 46 2.40 7,661 46 2.37
Certificates of Deposit
$100,000 & Over 429 6 5.57 679 9 5.20
Other Time Deposits 2,365 28 4.63 2,366 28 4.70
Foreign Offices 23,818 260 4.35 17,836 201 4.48
------- ----- ------- -----
Total Interest-Bearing Deposits 39,570 402 4.03 33,737 340 4.00
Federal Funds Purchased and
Securities Sold Under Repurchase
Agreements 2,581 32 4.88 3,663 42 4.48
Other Borrowed Funds 1,682 24 5.61 3,782 50 5.26
Long-Term Debt 2,548 44 6.79 2,082 36 6.69
------- ----- ------- -----
Total Interest-Bearing Liabilities 46,381 502 4.29% 43,264 468 4.29%
----- -----
Noninterest-Bearing Deposits 11,180 10,273
Other Liabilities 6,413 6,569
Minority Interest-Preferred Securities 1,500 1,300
Preferred Stock 0 1
Common Shareholders' Equity 4,996 5,201
------- -------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $70,470 $66,608
======= =======
Net Interest Earnings
and Interest Rate Spread $ 453 2.07% $ 451 2.22%
===== ==== ===== ====
Net Yield on Interest-Earning Assets 3.02% 3.20%
==== ====
</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 twelve months For the twelve months
ended December 31, 1999 ended December 31, 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) $ 5,500 $ 247 4.49% $ 3,437 $ 184 5.35%
Federal Funds Sold and Securities
Purchased Under Resale Agreements 4,236 205 4.83 3,880 203 5.24
Loans
Domestic Offices 19,707 1,418 7.20 19,773 1,511 7.64
Foreign Offices 19,174 1,219 6.36 18,567 1,264 6.81
------- ------ ------- ------
Total Loans 38,881 2,637 6.78 38,340 2,775 7.24
------- ------ ------- ------
Securities
U.S. Government Obligations 2,511 146 5.82 3,057 175 5.73
U.S. Government Agency Obligations 862 56 6.45 581 38 6.52
Obligations of States and
Political Subdivisions 588 46 7.86 672 54 7.98
Other Securities, including
Trading Securities 3,584 180 5.01 2,844 139 4.87
------- ------ ------- ------
Total Securities 7,545 428 5.67 7,154 406 5.66
------- ------ ------- ------
Total Interest-Earning Assets 56,162 3,517 6.26% 52,811 3,568 6.76%
------ ------
Allowance for Credit Losses (613) (643)
Cash and Due from Banks 3,174 3,237
Other Assets 8,054 7,736
------- -------
TOTAL ASSETS $66,777 $63,141
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
- ------------------------------------
Interest-Bearing Deposits
Money Market Rate Accounts $ 5,142 221 4.30% $ 4,998 232 4.65%
Savings 7,757 177 2.28 7,682 193 2.51
Certificates of Deposit
$100,000 & Over 526 26 5.03 687 37 5.41
Other Time Deposits 2,238 99 4.42 2,299 110 4.80
Foreign Offices 20,193 840 4.16 16,411 802 4.88
------- ------ ------- ------
Total Interest-Bearing Deposits 35,856 1,363 3.80 32,077 1,374 4.28
Federal Funds Purchased and
Securities Sold Under Repurchase
Agreements 2,940 131 4.45 3,147 145 4.60
Other Borrowed Funds 2,362 126 5.36 3,761 204 5.42
Long-Term Debt 2,306 152 6.54 1,972 136 6.90
------- ------ ------- ------
Total Interest-Bearing Liabilities 43,464 1,772 4.07% 40,957 1,859 4.54%
------ ------
Noninterest-Bearing Deposits 10,708 10,185
Other Liabilities 6,004 5,850
Minority Interest-Preferred Securities 1,487 1,233
Preferred Stock 0 1
Common Shareholders' Equity 5,114 4,915
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TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $66,777 $63,141
======= =======
Net Interest Earnings
and Interest Rate Spread $1,745 2.19% $1,709 2.22%
====== ==== ====== ====
Net Yield on Interest-Earning Assets 3.11% 3.24%
==== ====
</TABLE>
