EXHIBIT 99.2
Consolidated Balance Sheets
|
1 | |||
Credit Exposure Composition
|
2 | |||
Deposit Composition
|
3 | |||
Consolidated Quarterly Average Balance Sheets
|
4 | |||
Consolidated Quarterly Net Interest Margin Analysis
|
5 | |||
Quarterly Average Loans and Direct Financing Leases and Deposit
Composition By Business Segment
|
6 | |||
Selected Quarterly Income Statement Data
|
7 | |||
Quarterly Credit Reserves Analysis
|
8 | |||
Quarterly Net Charge-Off Analysis
|
9 | |||
Quarterly Non-Performing Assets and Past Due Loans and Leases
|
10 | |||
Quarterly Stock Summary, Capital, and Other Data
|
11 | |||
Quarterly Operating Lease Performance
|
12 | |||
Consolidated Year To Date Average Balance Sheets
|
13 | |||
Consolidated Year To Date Net Interest Margin Analysis
|
14 | |||
Selected Year To Date Income Statement Data
|
15 | |||
Year To Date Credit Reserves Analysis
|
16 | |||
Year To Date Net Charge-Off Analysis
|
17 | |||
Year To Date Operating Lease Performance
|
18 |
Change | |||||||||||||||||||||
2005 | 2004 | September 05 vs 04 | |||||||||||||||||||
(in thousands of dollars, except per share amounts) | September 30, | December 31, | September 30, | Amount | Percent | ||||||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||||||||
Assets |
|||||||||||||||||||||
Cash and due from banks |
$ | 803,425 | $ | 877,320 | $ | 1,053,358 | $ | (249,933 | ) | (23.7) | % | ||||||||||
Federal funds sold and securities
purchased under resale agreements |
78,325 | 628,040 | 838,833 | (760,508 | ) | (90.7 | ) | ||||||||||||||
Interest bearing deposits in banks |
22,379 | 22,398 | 36,155 | (13,776 | ) | (38.1 | ) | ||||||||||||||
Trading account securities |
191,418 | 309,630 | 120,334 | 71,084 | 59.1 | ||||||||||||||||
Loans held for sale |
449,096 | 223,469 | 205,913 | 243,183 | N.M. | ||||||||||||||||
Investment securities |
4,304,898 | 4,238,945 | 4,150,044 | 154,854 | 3.7 | ||||||||||||||||
Loans and leases (1) |
24,496,287 | 23,560,277 | 22,587,259 | 1,909,028 | 8.5 | ||||||||||||||||
Allowance for loan and lease losses |
(253,943 | ) | (271,211 | ) | (282,650 | ) | 28,707 | (10.2 | ) | ||||||||||||
Net loans and leases |
24,242,344 | 23,289,066 | 22,304,609 | 1,937,735 | 8.7 | ||||||||||||||||
Operating lease assets |
274,190 | 587,310 | 717,411 | (443,221 | ) | (61.8 | ) | ||||||||||||||
Bank owned life insurance |
993,407 | 963,059 | 954,911 | 38,496 | 4.0 | ||||||||||||||||
Premises and equipment |
358,876 | 355,115 | 356,438 | 2,438 | 0.7 | ||||||||||||||||
Goodwill and other intangible assets |
217,703 | 215,807 | 216,011 | 1,692 | 0.8 | ||||||||||||||||
Customers acceptance liability |
7,463 | 11,299 | 8,787 | (1,324 | ) | (15.1 | ) | ||||||||||||||
Accrued income and other assets |
819,464 | 844,039 | 845,436 | (25,972 | ) | (3.1 | ) | ||||||||||||||
Total Assets |
$ | 32,762,988 | $ | 32,565,497 | $ | 31,808,240 | $ | 954,748 | 3.0 | % | |||||||||||
Liabilities and Shareholders Equity |
|||||||||||||||||||||
Liabilities |
|||||||||||||||||||||
Deposits (2) |
$ | 22,349,122 | $ | 20,768,161 | $ | 20,109,025 | $ | 2,240,097 | 11.1 | % | |||||||||||
Short-term borrowings |
1,502,566 | 1,207,233 | 1,215,887 | 286,679 | 23.6 | ||||||||||||||||
Federal Home Loan Bank advances |
1,155,656 | 1,271,088 | 1,270,454 | (114,798 | ) | (9.0 | ) | ||||||||||||||
Other long-term debt |
2,795,431 | 4,016,004 | 4,094,185 | (1,298,754 | ) | (31.7 | ) | ||||||||||||||
Subordinated notes |
1,034,343 | 1,039,793 | 1,040,901 | (6,558 | ) | (0.6 | ) | ||||||||||||||
Allowance for unfunded loan commitments and
letters of credit |
38,098 | 33,187 | 30,007 | 8,091 | 27.0 | ||||||||||||||||
Bank acceptances outstanding |
7,463 | 11,299 | 8,787 | (1,324 | ) | (15.1 | ) | ||||||||||||||
Deferred federal income tax liability |
768,344 | 783,628 | 723,525 | 44,819 | 6.2 | ||||||||||||||||
Accrued expenses and other liabilities |
489,290 | 897,466 | 854,552 | (365,262 | ) | (42.7 | ) | ||||||||||||||
Total Liabilities |
30,140,313 | 30,027,859 | 29,347,323 | 792,990 | 2.7 | ||||||||||||||||
Shareholders equity |
|||||||||||||||||||||
Preferred stock authorized 6,617,808 shares;
none outstanding |
| | | | | ||||||||||||||||
Common stock without par value; authorized
500,000,000 shares; issued 257,866,255
shares; outstanding 229,005,823; 231,605,281
and 230,153,486 shares, respectively. |
2,490,919 | 2,484,204 | 2,482,904 | 8,015 | 0.3 | ||||||||||||||||
Less 28,860,432; 26,260,974 and 27,712,769
treasury shares, respectively |
(575,941 | ) | (499,259 | ) | (526,967 | ) | (48,974 | ) | 9.3 | ||||||||||||
Accumulated other comprehensive loss |
(21,839 | ) | (10,903 | ) | (13,812 | ) | (8,027 | ) | 58.1 | ||||||||||||
Retained earnings |
729,536 | 563,596 | 518,792 | 210,744 | 40.6 | ||||||||||||||||
Total
Shareholders Equity |
2,622,675 | 2,537,638 | 2,460,917 | 161,758 | 6.6 | ||||||||||||||||
Total
Liabilities and Shareholders Equity |
$ | 32,762,988 | $ | 32,565,497 | $ | 31,808,240 | $ | 954,748 | 3.0 | % | |||||||||||
N.M., not a meaningful value. |
||
(1) | See page 2 for detail of loans and leases. |
|
(2) | See page 3 for detail of deposits. |
1
Change | |||||||||||||||||||||||||||||||||
2005 | 2004 | September 05 vs 04 | |||||||||||||||||||||||||||||||
(in thousands of dollars) | September 30, | December 31, | September 30 | Amount | Percent | ||||||||||||||||||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||||||||||||||||||||
By Type |
|||||||||||||||||||||||||||||||||
Commercial: |
|||||||||||||||||||||||||||||||||
Middle market commercial and industrial |
$ | 4,790,680 | 19.3 | % | $ | 4,660,141 | 19.3 | % | $ | 4,352,952 | 18.7 | % | $ | 437,728 | 10.1 | % | |||||||||||||||||
Construction |
1,762,237 | 7.1 | 1,592,125 | 6.6 | 1,538,135 | 6.6 | 224,102 | 14.6 | |||||||||||||||||||||||||
Commercial |
1,885,027 | 7.6 | 1,881,835 | 7.8 | 1,898,015 | 8.1 | (12,988 | ) | (0.7 | ) | |||||||||||||||||||||||
Middle market commercial real estate |
3,647,264 | 14.7 | 3,473,960 | 14.4 | 3,436,150 | 14.7 | 211,114 | 6.1 | |||||||||||||||||||||||||
Small business commercial and industrial
and commercial real estate |
2,234,988 | 9.1 | 2,168,877 | 8.9 | 2,124,602 | 9.2 | 110,386 | 5.2 | |||||||||||||||||||||||||
Total commercial |
10,672,932 | 43.1 | 10,302,978 | 42.6 | 9,913,704 | 42.6 | 759,228 | 7.7 | |||||||||||||||||||||||||
Consumer: |
|||||||||||||||||||||||||||||||||
Automobile loans |
2,063,285 | 8.3 | 1,948,667 | 8.1 | 1,884,924 | 8.1 | 178,361 | 9.5 | |||||||||||||||||||||||||
Automobile leases |
2,381,004 | 9.6 | 2,443,455 | 10.1 | 2,316,801 | 9.9 | 64,203 | 2.8 | |||||||||||||||||||||||||
Home equity |
4,684,904 | 18.9 | 4,554,540 | 18.9 | 4,429,626 | 19.0 | 255,278 | 5.8 | |||||||||||||||||||||||||
Residential mortgage |
4,180,350 | 16.9 | 3,829,234 | 15.9 | 3,565,670 | 15.3 | 614,680 | 17.2 | |||||||||||||||||||||||||
Other loans |
513,812 | 2.1 | 481,403 | 2.0 | 476,534 | 2.0 | 37,278 | 7.8 | |||||||||||||||||||||||||
Total consumer |
13,823,355 | 55.8 | 13,257,299 | 55.0 | 12,673,555 | 54.3 | 1,149,800 | 9.1 | |||||||||||||||||||||||||
Total loans and direct financing leases |
$ | 24,496,287 | 98.9 | $ | 23,560,277 | 97.6 | $ | 22,587,259 | 96.9 | $ | 1,909,028 | 8.5 | |||||||||||||||||||||
Operating lease assets |
274,190 | 1.1 | 587,310 | 2.4 | 717,411 | 3.1 | (443,221 | ) | (61.8 | ) | |||||||||||||||||||||||
Total credit exposure |
$ | 24,770,477 | 100.0 | % | $ | 24,147,587 | 100.0 | % | $ | 23,304,670 | 100.0 | % | $ | 1,465,807 | 6.3 | % | |||||||||||||||||
Total automobile exposure (1) |
$ | 4,718,479 | 19.0 | % | $ | 4,979,432 | 20.6 | % | $ | 4,919,136 | 21.1 | % | $ | (200,657 | ) | (4.1 | )% | ||||||||||||||||
By Business Segment (2) |
|||||||||||||||||||||||||||||||||
Regional Banking: |
|||||||||||||||||||||||||||||||||
Central Ohio |
$ | 3,223,920 | 13.0 | % | $ | 3,096,709 | 12.8 | % | $ | 3,029,332 | 13.0 | % | $ | 194,588 | 6.4 | % | |||||||||||||||||
Northern Ohio |
2,952,508 | 11.9 | 2,857,746 | 11.8 | 2,810,332 | 12.1 | 142,176 | 5.1 | |||||||||||||||||||||||||
Southern Ohio / Kentucky |
2,064,617 | 8.3 | 1,895,180 | 7.8 | 1,825,652 | 7.8 | 238,965 | 13.1 | |||||||||||||||||||||||||
West Michigan |
2,369,813 | 9.6 | 2,271,682 | 9.4 | 2,236,001 | 9.6 | 133,812 | 6.0 | |||||||||||||||||||||||||
East Michigan |
1,530,757 | 6.2 | 1,430,169 | 5.9 | 1,387,543 | 6.0 | 143,214 | 10.3 | |||||||||||||||||||||||||
West Virginia |
948,854 | 3.8 | 882,016 | 3.7 | 867,271 | 3.7 | 81,583 | 9.4 | |||||||||||||||||||||||||
Indiana |
967,324 | 3.9 | 961,700 | 4.0 | 862,833 | 3.7 | 104,491 | 12.1 | |||||||||||||||||||||||||
Mortgage and equipment leasing groups |
3,505,072 | 14.2 | 3,196,762 | 13.2 | 2,978,350 | 12.8 | 526,722 | 17.7 | |||||||||||||||||||||||||
Regional Banking |
17,562,865 | 70.8 | 16,591,964 | 68.7 | 15,997,314 | 68.7 | 1,565,551 | 9.8 | |||||||||||||||||||||||||
Dealer Sales (3) |
5,492,278 | 22.2 | 5,920,256 | 24.5 | 5,765,184 | 24.7 | (272,906 | ) | (4.7 | ) | |||||||||||||||||||||||
Private Financial and Capital Markets Group |
1,715,334 | 7.0 | 1,635,367 | 6.8 | 1,542,172 | 6.6 | 173,162 | 11.2 | |||||||||||||||||||||||||
Treasury / Other |
| | | | | | | | |||||||||||||||||||||||||
Total credit exposure |
$ | 24,770,477 | 100.0 | % | $ | 24,147,587 | 100.0 | % | $ | 23,304,670 | 100.0 | % | $ | 1,465,807 | 6.3 | % | |||||||||||||||||
(1) | Sum of automobile loans and leases and automobile operating lease assets. |
|
(2) | Prior period amounts have been reclassified to conform to the current period business segment structure. | |
(3) | Includes operating lease inventory. |
2
Change | |||||||||||||||||||||||||||||||||
2005 | 2004 | September 05 vs 04 | |||||||||||||||||||||||||||||||
(in thousand dollers) | September 30, | December 31, | September 30, | Amount | Percent | ||||||||||||||||||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||||||||||||||||||||
By Type |
|||||||||||||||||||||||||||||||||
Demand deposits non-interest bearing |
$ | 3,361,749 | 15.0 | % | $ | 3,392,123 | 16.3 | % | $ | 3,264,145 | 16.2 | % | $ | 97,604 | 3.0 | % | |||||||||||||||||
Demand deposits interest bearing |
7,481,019 | 33.5 | 7,786,377 | 37.5 | 7,471,779 | 37.2 | 9,240 | 0.1 | |||||||||||||||||||||||||
Savings and other domestic time
deposits |
3,186,354 | 14.3 | 3,502,552 | 16.9 | 3,570,494 | 17.8 | (384,140 | ) | (10.8 | ) | |||||||||||||||||||||||
Retail certificates of deposit |
3,281,457 | 14.7 | 2,466,965 | 11.9 | 2,441,387 | 12.1 | 840,070 | 34.4 | |||||||||||||||||||||||||
Total core deposits |
17,310,579 | 77.5 | 17,148,017 | 82.6 | 16,747,805 | 83.3 | 562,774 | 3.4 | |||||||||||||||||||||||||
Domestic time deposits of $100,000 or more |
1,356,875 | 6.1 | 1,081,660 | 5.2 | 997,952 | 5.0 | 358,923 | 36.0 | |||||||||||||||||||||||||
Brokered deposits and negotiable CDs |
3,228,083 | 14.4 | 2,097,537 | 10.1 | 1,896,135 | 9.4 | 1,331,948 | 70.2 | |||||||||||||||||||||||||
Deposits in foreign offices |
453,585 | 2.0 | 440,947 | 2.1 | 467,133 | 2.3 | (13,548 | ) | (2.9 | ) | |||||||||||||||||||||||
Total deposits |
$ | 22,349,122 | 100.0 | % | $ | 20,768,161 | 100.0 | % | $ | 20,109,025 | 100.0 | % | $ | 2,240,097 | 11.1 | % | |||||||||||||||||
Total core deposits: |
|||||||||||||||||||||||||||||||||
Commercial |
$ | 5,424,728 | 31.3 | % | $ | 5,293,666 | 30.9 | % | $ | 5,227,613 | 31.2 | % | $ | 197,115 | 3.8 | % | |||||||||||||||||
Personal |
11,885,851 | 68.7 | 11,854,351 | 69.1 | 11,520,192 | 68.8 | 365,659 | 3.2 | |||||||||||||||||||||||||
Total core deposits |
$ | 17,310,579 | 100.0 | % | $ | 17,148,017 | 100.0 | % | $ | 16,747,805 | 100.0 | % | $ | 562,774 | 3.4 | % | |||||||||||||||||
By Business Segment (1) |
|||||||||||||||||||||||||||||||||
Regional Banking: |
|||||||||||||||||||||||||||||||||
Central Ohio |
$ | 4,433,948 | 19.8 | % | $ | 4,500,840 | 21.7 | % | $ | 4,227,005 | 21.0 | % | $ | 206,943 | 4.9 | % | |||||||||||||||||
Northern Ohio |
4,035,762 | 18.1 | 4,068,385 | 19.6 | 4,012,247 | 20.0 | 23,515 | 0.6 | |||||||||||||||||||||||||
Southern Ohio / Kentucky |
1,915,034 | 8.6 | 1,742,353 | 8.4 | 1,599,685 | 8.0 | 315,349 | 19.7 | |||||||||||||||||||||||||
West Michigan |
2,783,571 | 12.5 | 2,643,510 | 12.7 | 2,699,059 | 13.4 | 84,512 | 3.1 | |||||||||||||||||||||||||
East Michigan |
2,311,421 | 10.3 | 2,222,191 | 10.7 | 2,165,533 | 10.8 | 145,888 | 6.7 | |||||||||||||||||||||||||
West Virginia |
1,428,172 | 6.4 | 1,375,151 | 6.6 | 1,380,934 | 6.9 | 47,238 | 3.4 | |||||||||||||||||||||||||
Indiana |
770,834 | 3.4 | 663,927 | 3.2 | 665,368 | 3.3 | 105,466 | 15.9 | |||||||||||||||||||||||||
Mortgage and equipment leasing
groups |
177,026 | 0.8 | 194,624 | 0.9 | 199,944 | 1.0 | (22,918 | ) | (11.5 | ) | |||||||||||||||||||||||
Regional Banking |
17,855,768 | 79.9 | 17,410,981 | 83.8 | 16,949,775 | 84.4 | 905,993 | 5.3 | |||||||||||||||||||||||||
Dealer Sales |
72,411 | 0.3 | 74,969 | 0.4 | 68,944 | 0.3 | 3,467 | 5.0 | |||||||||||||||||||||||||
Private Financial and Capital Markets Group |
1,186,360 | 5.3 | 1,176,303 | 5.7 | 1,126,807 | 5.6 | 59,553 | 5.3 | |||||||||||||||||||||||||
Treasury / Other (2) |
3,234,583 | 14.5 | 2,105,908 | 10.1 | 1,963,499 | 9.7 | 1,271,084 | 64.7 | |||||||||||||||||||||||||
Total deposits |
$ | 22,349,122 | 100.0 | % | $ | 20,768,161 | 100.0 | % | $ | 20,109,025 | 100.0 | % | $ | 2,240,097 | 11.1 | % | |||||||||||||||||
(1) | Prior period amounts have been reclassified to conform to the current period business segment structure. |
|
(2) | Comprised largely of brokered deposits and negotiable CDs. |
3
Average Balances | Change | ||||||||||||||||||||||||||||
Fully taxable equivalent basis | 2005 | 2004 | 3Q05 vs 3Q04 | ||||||||||||||||||||||||||
(in millions of dollars) | Third | Second | First | Fourth | Third | Amount | Percent | ||||||||||||||||||||||
Assets |
|||||||||||||||||||||||||||||
Interest bearing deposits in banks |
$ | 54 | $ | 54 | $ | 53 | $ | 60 | $ | 55 | $ | (1 | ) | (1.8 | )% | ||||||||||||||
Trading account securities |
274 | 236 | 200 | 228 | 148 | 126 | 85.1 | ||||||||||||||||||||||
Federal funds sold and securities purchased
under resale agreements |
142 | 225 | 475 | 695 | 318 | (176 | ) | (55.3 | ) | ||||||||||||||||||||
Loans held for sale |
427 | 276 | 203 | 229 | 283 | 144 | 50.9 | ||||||||||||||||||||||
Investment securities: |
|||||||||||||||||||||||||||||
Taxable |
3,523 | 3,589 | 3,932 | 3,858 | 4,340 | (817 | ) | (18.8 | ) | ||||||||||||||||||||
Tax-exempt |
537 | 411 | 409 | 404 | 398 | 139 | 34.9 | ||||||||||||||||||||||
Total investment securities |
4,060 | 4,000 | 4,341 | 4,262 | 4,738 | (678 | ) | (14.3 | ) | ||||||||||||||||||||
Loans and leases: (1)
|
|||||||||||||||||||||||||||||
Commercial: |
|||||||||||||||||||||||||||||
Middle market commercial and industrial |
4,708 | 4,901 | 4,710 | 4,503 | 4,298 | 410 | 9.5 | ||||||||||||||||||||||
Construction |
1,720 | 1,678 | 1,642 | 1,577 | 1,514 | 206 | 13.6 | ||||||||||||||||||||||
Commercial |
1,922 | 1,905 | 1,883 | 1,852 | 1,913 | 9 | 0.5 | ||||||||||||||||||||||
Middle market commercial real estate |
3,642 | 3,583 | 3,525 | 3,429 | 3,427 | 215 | 6.3 | ||||||||||||||||||||||
Small business commercial and industrial
and commercial real estate |
2,251 | 2,230 | 2,183 | 2,136 | 2,081 | 170 | 8.2 | ||||||||||||||||||||||
Total commercial |
10,601 | 10,714 | 10,418 | 10,068 | 9,806 | 795 | 8.1 | ||||||||||||||||||||||
Consumer: |
|||||||||||||||||||||||||||||
Automobile loans |
2,078 | 2,069 | 2,008 | 1,913 | 1,857 | 221 | 11.9 | ||||||||||||||||||||||
Automobile leases |
2,424 | 2,468 | 2,461 | 2,388 | 2,250 | 174 | 7.7 | ||||||||||||||||||||||
Automobile loans and leases |
4,502 | 4,537 | 4,469 | 4,301 | 4,107 | 395 | 9.6 | ||||||||||||||||||||||
Home equity |
4,681 | 4,636 | 4,570 | 4,489 | 4,337 | 344 | 7.9 | ||||||||||||||||||||||
Residential mortgage |
4,157 | 4,080 | 3,919 | 3,695 | 3,484 | 673 | 19.3 | ||||||||||||||||||||||
Other loans |
507 | 491 | 480 | 479 | 461 | 46 | 10.0 | ||||||||||||||||||||||
Total consumer |
13,847 | 13,744 | 13,438 | 12,964 | 12,389 | 1,458 | 11.8 | ||||||||||||||||||||||
Total loans and leases |
24,448 | 24,458 | 23,856 | 23,032 | 22,195 | 2,253 | 10.2 | ||||||||||||||||||||||
Allowance for loan and lease losses |
(256 | ) | (270 | ) | (282 | ) | (283 | ) | (288 | ) | 32 | 11.1 | |||||||||||||||||
Net loans and leases |
24,192 | 24,188 | 23,574 | 22,749 | 21,907 | 2,285 | 10.4 | ||||||||||||||||||||||
Total earning assets |
29,405 | 29,249 | 29,128 | 28,506 | 27,737 | 1,668 | 6.0 | ||||||||||||||||||||||
Operating lease assets |
309 | 409 | 529 | 648 | 800 | (491 | ) | (61.4 | ) | ||||||||||||||||||||
Cash and due from banks |
867 | 865 | 909 | 880 | 928 | (61 | ) | (6.6 | ) | ||||||||||||||||||||
Intangible assets |
217 | 218 | 218 | 216 | 216 | 1 | 0.5 | ||||||||||||||||||||||
All other assets |
2,197 | 2,149 | 2,079 | 2,094 | 2,066 | 131 | 6.3 | ||||||||||||||||||||||
Total Assets |
$ | 32,739 | $ | 32,620 | $ | 32,581 | $ | 32,061 | $ | 31,459 | $ | 1,280 | 4.1 | % | |||||||||||||||
Liabilities and Shareholders Equity |
|||||||||||||||||||||||||||||
Deposits: |
|||||||||||||||||||||||||||||
Demand
deposits - non-interest bearing |
$ | 3,406 | $ | 3,352 | $ | 3,314 | $ | 3,401 | $ | 3,276 | $ | 130 | 4.0 | % | |||||||||||||||
Demand
deposits - interest bearing |
7,539 | 7,677 | 7,925 | 7,658 | 7,384 | 155 | 2.1 | ||||||||||||||||||||||
Savings and other domestic time deposits |
3,095 | 3,230 | 3,317 | 3,395 | 3,436 | (341 | ) | (9.9 | ) | ||||||||||||||||||||
Retail certificates of deposit |
3,157 | 2,720 | 2,496 | 2,454 | 2,414 | 743 | 30.8 | ||||||||||||||||||||||
Total core deposits |
17,197 | 16,979 | 17,052 | 16,908 | 16,510 | 687 | 4.2 | ||||||||||||||||||||||
Domestic time deposits of $100,000 or more |
1,271 | 1,248 | 1,249 | 990 | 886 | 385 | 43.5 | ||||||||||||||||||||||
Brokered deposits and negotiable CDs |
3,286 | 3,249 | 2,720 | 1,948 | 1,755 | 1,531 | 87.2 | ||||||||||||||||||||||
Deposits in foreign offices |
462 | 434 | 442 | 465 | 476 | (14 | ) | (2.9 | ) | ||||||||||||||||||||
Total deposits |
22,216 | 21,910 | 21,463 | 20,311 | 19,627 | 2,589 | 13.2 | ||||||||||||||||||||||
Short-term borrowings |
1,559 | 1,301 | 1,179 | 1,302 | 1,342 | 217 | 16.2 | ||||||||||||||||||||||
Federal Home Loan Bank advances |
935 | 1,136 | 1,196 | 1,270 | 1,270 | (335 | ) | (26.4 | ) | ||||||||||||||||||||
Subordinated notes and other long-term debt |
3,960 | 4,100 | 4,517 | 5,099 | 5,244 | (1,284 | ) | (24.5 | ) | ||||||||||||||||||||
Total interest bearing liabilities |
25,264 | 25,095 | 25,041 | 24,581 | 24,207 | 1,057 | 4.4 | ||||||||||||||||||||||
All other liabilities |
1,458 | 1,554 | 1,699 | 1,598 | 1,564 | (106 | ) | (6.8 | ) | ||||||||||||||||||||
Shareholders equity |
2,611 | 2,619 | 2,527 | 2,481 | 2,412 | 199 | 8.3 | ||||||||||||||||||||||
Total Liabilities and Shareholders Equity |
$ | 32,739 | $ | 32,620 | $ | 32,581 | $ | 32,061 | $ | 31,459 | $ | 1,280 | 4.1 | % | |||||||||||||||
(1) | For purposes of this analysis, non-accrual loans are reflected in the average balances of loans. |
4
Average Rates(2) | ||||||||||||||||||||
2005 | 2004 | |||||||||||||||||||
Fully taxable equivalent basis (1) | Third | Second | First | Fourth | Third | |||||||||||||||
Assets |
||||||||||||||||||||
Interest bearing deposits in banks |
2.13 | % | 1.47 | % | 1.88 | % | 1.61 | % | 0.91 | % | ||||||||||
Trading account securities |
3.95 | 3.94 | 4.14 | 4.15 | 4.44 | |||||||||||||||
Federal funds sold and securities purchased
under resale agreements |
3.41 | 2.76 | 2.36 | 1.99 | 1.53 | |||||||||||||||
Loans held for sale |
5.43 | 6.04 | 5.55 | 5.69 | 5.25 | |||||||||||||||
Investment securities: |
||||||||||||||||||||
Taxable |
4.37 | 4.13 | 3.87 | 3.77 | 3.83 | |||||||||||||||
Tax-exempt |
6.62 | 6.76 | 6.73 | 6.89 | 7.06 | |||||||||||||||
Total investment securities |
4.67 | 4.40 | 4.14 | 4.07 | 4.10 | |||||||||||||||
Loans and leases: (3) |
||||||||||||||||||||
Commercial: |
||||||||||||||||||||
Middle market commercial and industrial |
5.87 | 5.65 | 5.02 | 4.80 | 4.46 | |||||||||||||||
Construction |
6.16 | 5.70 | 5.13 | 4.65 | 4.13 | |||||||||||||||
Commercial |
5.90 | 5.44 | 5.15 | 4.80 | 4.45 | |||||||||||||||
Middle market commercial real estate |
6.02 | 5.56 | 5.14 | 4.73 | 4.31 | |||||||||||||||
Small business commercial and industrial
and commercial real estate |
6.17 | 5.99 | 5.81 | 5.67 | 5.45 | |||||||||||||||
Total commercial |
5.98 | 5.69 | 5.23 | 4.96 | 4.62 | |||||||||||||||
Consumer: |
||||||||||||||||||||
Automobile loans |
6.44 | 6.57 | 6.83 | 7.31 | 7.65 | |||||||||||||||
Automobile leases |
4.94 | 4.91 | 4.92 | 5.00 | 5.02 | |||||||||||||||
Automobile loans and leases |
5.63 | 5.67 | 5.78 | 6.02 | 6.21 | |||||||||||||||
Home equity |
6.60 | 6.24 | 5.77 | 5.30 | 4.84 | |||||||||||||||
Residential mortgage |
5.45 | 5.37 | 5.36 | 5.53 | 5.48 | |||||||||||||||
Other loans |
5.92 | 6.22 | 6.42 | 6.87 | 6.54 | |||||||||||||||
Total consumer |
5.91 | 5.79 | 5.67 | 5.66 | 5.54 | |||||||||||||||
Total loans and leases |
5.94 | 5.75 | 5.48 | 5.34 | 5.12 | |||||||||||||||
Total earning assets |
5.72 | % | 5.52 | % | 5.21 | % | 5.05 | % | 4.89 | % | ||||||||||
Liabilities and Shareholders Equity |
||||||||||||||||||||
Deposits: |
||||||||||||||||||||
Demand
deposits - non-interest bearing |
| % | | % | | % | | % | | % | ||||||||||
Demand
deposits - interest bearing |
1.87 | 1.64 | 1.45 | 1.21 | 1.06 | |||||||||||||||
Savings and other domestic time deposits |
1.39 | 1.34 | 1.27 | 1.26 | 1.24 | |||||||||||||||
Retail certificates of deposit |
3.58 | 3.49 | 3.43 | 3.38 | 3.32 | |||||||||||||||
Total core deposits |
2.15 | 1.94 | 1.76 | 1.62 | 1.52 | |||||||||||||||
Domestic time deposits of $100,000 or more |
3.60 | 3.27 | 2.92 | 2.51 | 2.40 | |||||||||||||||
Brokered deposits and negotiable CDs |
3.66 | 3.25 | 2.80 | 2.26 | 1.84 | |||||||||||||||
Deposits in foreign offices |
2.28 | 1.95 | 1.41 | 0.98 | 0.83 | |||||||||||||||
Total deposits |
2.52 | 2.26 | 1.99 | 1.73 | 1.58 | |||||||||||||||
Short-term borrowings |
2.74 | 2.16 | 1.66 | 1.17 | 0.92 | |||||||||||||||
Federal Home Loan Bank advances |
3.08 | 3.02 | 2.90 | 2.68 | 2.60 | |||||||||||||||
Subordinated notes and other long-term debt |
4.20 | 3.91 | 3.39 | 2.67 | 2.62 | |||||||||||||||
Total interest bearing liabilities |
2.82 | % | 2.56 | % | 2.27 | % | 1.94 | % | 1.82 | % | ||||||||||
Net interest rate spread |
2.90 | % | 2.96 | % | 2.94 | % | 3.11 | % | 3.07 | % | ||||||||||
Impact of non-interest bearing funds on margin |
0.41 | 0.40 | 0.37 | 0.27 | 0.23 | |||||||||||||||
Net interest margin |
3.31 | % | 3.36 | % | 3.31 | % | 3.38 | % | 3.30 | % | ||||||||||
(1) | Fully taxable equivalent (FTE) yields are calculated assuming a 35% tax rate. See page 7 for the FTE adjustment. | |
(2) | Loan, lease, and deposit average rates include impact of applicable derivatives and non-deferrable fees. | |
(3) | For purposes of this analysis, non-accrual loans are reflected in the average balances of loans. |
5
Average Balances | Change | ||||||||||||||||||||||||||||
2005 | 2004 | 3Q05 vs 3Q04 | |||||||||||||||||||||||||||
(in millions of dollars) | Third | Second | First | Fourth | Third | Amount | Percent | ||||||||||||||||||||||
Loans and direct financing leases (1) |
|||||||||||||||||||||||||||||
Regional Banking: |
|||||||||||||||||||||||||||||
Central Ohio |
$ | 3,181 | $ | 3,173 | $ | 3,105 | $ | 3,073 | $ | 3,008 | $ | 173 | 5.8 | % | |||||||||||||||
Northern Ohio |
2,926 | 2,921 | 2,867 | 2,810 | 2,747 | 179 | 6.5 | ||||||||||||||||||||||
Southern Ohio / Kentucky |
2,080 | 2,067 | 1,967 | 1,862 | 1,794 | 286 | 15.9 | ||||||||||||||||||||||
West Michigan |
2,377 | 2,366 | 2,297 | 2,255 | 2,230 | 147 | 6.6 | ||||||||||||||||||||||
East Michigan |
1,507 | 1,479 | 1,444 | 1,402 | 1,376 | 131 | 9.5 | ||||||||||||||||||||||
West Virginia |
944 | 907 | 878 | 875 | 840 | 104 | 12.4 | ||||||||||||||||||||||
Indiana |
983 | 1,022 | 980 | 906 | 835 | 148 | 17.7 | ||||||||||||||||||||||
Mortgage and equipment leasing groups |
3,433 | 3,364 | 3,266 | 3,064 | 2,847 | 586 | 20.6 | ||||||||||||||||||||||
Regional Banking |
17,431 | 17,299 | 16,804 | 16,247 | 15,677 | 1,754 | 11.2 | ||||||||||||||||||||||
Dealer Sales |
5,316 | 5,496 | 5,410 | 5,204 | 4,982 | 334 | 6.7 | ||||||||||||||||||||||
Private Financial and Capital Markets Group |
1,701 | 1,663 | 1,642 | 1,581 | 1,536 | 165 | 10.7 | ||||||||||||||||||||||
Treasury / Other |
| | | | | | | ||||||||||||||||||||||
Total loans and direct financing leases |
$ | 24,448 | $ | 24,458 | $ | 23,856 | $ | 23,032 | $ | 22,195 | $ | 2,253 | 10.2 | % | |||||||||||||||
Deposit composition (1) |
|||||||||||||||||||||||||||||
Regional Banking: |
|||||||||||||||||||||||||||||
Central Ohio |
$ | 4,494 | $ | 4,555 | $ | 4,487 | $ | 4,344 | $ | 4,190 | $ | 304 | 7.3 | % | |||||||||||||||
Northern Ohio |
4,072 | 3,931 | 4,085 | 4,028 | 3,937 | 135 | 3.4 | ||||||||||||||||||||||
Southern Ohio / Kentucky |
1,861 | 1,750 | 1,764 | 1,665 | 1,573 | 288 | 18.3 | ||||||||||||||||||||||
West Michigan |
2,671 | 2,638 | 2,684 | 2,672 | 2,641 | 30 | 1.1 | ||||||||||||||||||||||
East Michigan |
2,267 | 2,270 | 2,298 | 2,199 | 2,132 | 135 | 6.3 | ||||||||||||||||||||||
West Virginia |
1,408 | 1,387 | 1,367 | 1,359 | 1,373 | 35 | 2.5 | ||||||||||||||||||||||
Indiana |
746 | 723 | 698 | 679 | 665 | 81 | 12.2 | ||||||||||||||||||||||
Mortgage and equipment leasing groups |
215 | 197 | 179 | 213 | 202 | 13 | 6.4 | ||||||||||||||||||||||
Regional Banking |
17,734 | 17,451 | 17,562 | 17,159 | 16,713 | 1,021 | 6.1 | ||||||||||||||||||||||
Dealer Sales |
72 | 69 | 71 | 72 | 72 | | | ||||||||||||||||||||||
Private Financial and Capital Markets Group |
1,116 | 1,133 | 1,094 | 1,116 | 1,049 | 67 | 6.4 | ||||||||||||||||||||||
Treasury / Other |
3,294 | 3,257 | 2,736 | 1,964 | 1,793 | 1,501 | 83.7 | ||||||||||||||||||||||
Total deposits |
$ | 22,216 | $ | 21,910 | $ | 21,463 | $ | 20,311 | $ | 19,627 | $ | 2,589 | 13.2 | % | |||||||||||||||
(1) | Prior period amounts have been reclassified to conform to the current period business segment structure. |
6
2005 | 2004 | 3Q05 vs 3Q04 | |||||||||||||||||||||||||||
(in thousands of dollars, except per share amounts) | Third | Second | First | Fourth | Third | Amount | Percent | ||||||||||||||||||||||
Interest income |
$ | 420,858 | $ | 402,326 | $ | 376,105 | $ | 359,215 | $ | 338,002 | $ | 82,856 | 24.5 | % | |||||||||||||||
Interest expense |
179,221 | 160,426 | 140,907 | 120,147 | 110,944 | 68,277 | 61.5 | ||||||||||||||||||||||
Net interest income |
241,637 | 241,900 | 235,198 | 239,068 | 227,058 | 14,579 | 6.4 | ||||||||||||||||||||||
Provision for credit losses |
17,699 | 12,895 | 19,874 | 12,654 | 11,785 | 5,914 | 50.2 | ||||||||||||||||||||||
Net interest income after provision for credit losses |
223,938 | 229,005 | 215,324 | 226,414 | 215,273 | 8,665 | 4.0 | ||||||||||||||||||||||
Service charges on deposit accounts |
44,817 | 41,516 | 39,418 | 41,747 | 43,935 | 882 | 2.0 | ||||||||||||||||||||||
Trust services |
19,671 | 19,113 | 18,196 | 17,315 | 17,064 | 2,607 | 15.3 | ||||||||||||||||||||||
Brokerage and insurance income |
13,948 | 13,544 | 13,026 | 12,879 | 13,200 | 748 | 5.7 | ||||||||||||||||||||||
Bank owned life insurance income |
10,104 | 10,139 | 10,104 | 10,484 | 10,019 | 85 | 0.8 | ||||||||||||||||||||||
Other service charges and fees |
11,449 | 11,252 | 10,159 | 10,617 | 10,799 | 650 | 6.0 | ||||||||||||||||||||||
Mortgage banking income (loss) |
21,116 | (2,376 | ) | 12,061 | 8,822 | 4,448 | 16,668 | N.M. | |||||||||||||||||||||
Securities gains (losses) |
101 | (343 | ) | 957 | 2,100 | 7,803 | (7,702 | ) | (98.7 | ) | |||||||||||||||||||
Gains on sales of automobile loans |
502 | 254 | | | 312 | 190 | 60.9 | ||||||||||||||||||||||
Other income |
9,770 | 24,974 | 17,397 | 23,870 | 17,899 | (8,129 | ) | (45.4 | ) | ||||||||||||||||||||
Sub-total before operating lease income |
131,478 | 118,073 | 121,318 | 127,834 | 125,479 | 5,999 | 4.8 | ||||||||||||||||||||||
Operating lease income |
29,262 | 38,097 | 46,732 | 55,106 | 64,412 | (35,150 | ) | (54.6 | ) | ||||||||||||||||||||
Total non-interest income |
160,740 | 156,170 | 168,050 | 182,940 | 189,891 | (29,151 | ) | (15.4 | ) | ||||||||||||||||||||
Personnel costs |
117,476 | 124,090 | 123,981 | 122,738 | 121,729 | (4,253 | ) | (3.5 | ) | ||||||||||||||||||||
Net occupancy |
16,653 | 17,257 | 19,242 | 26,082 | 16,838 | (185 | ) | (1.1 | ) | ||||||||||||||||||||
Outside data processing and other services |
18,062 | 18,113 | 18,770 | 18,563 | 17,527 | 535 | 3.1 | ||||||||||||||||||||||
Equipment |
15,531 | 15,637 | 15,863 | 15,733 | 15,295 | 236 | 1.5 | ||||||||||||||||||||||
Professional services |
8,323 | 9,347 | 9,459 | 9,522 | 12,219 | (3,896 | ) | (31.9 | ) | ||||||||||||||||||||
Marketing |
6,779 | 7,441 | 6,454 | 5,581 | 5,000 | 1,779 | 35.6 | ||||||||||||||||||||||
Telecommunications |
4,512 | 4,801 | 4,882 | 4,596 | 5,359 | (847 | ) | (15.8 | ) | ||||||||||||||||||||
Printing and supplies |
3,102 | 3,293 | 3,094 | 3,148 | 3,201 | (99 | ) | (3.1 | ) | ||||||||||||||||||||
Amortization of intangibles |
203 | 204 | 204 | 205 | 204 | (1 | ) | (0.5 | ) | ||||||||||||||||||||
Restructuring reserve releases |
| | | | (1,151 | ) | 1,151 | N.M. | |||||||||||||||||||||
Other expense |
19,588 | 19,074 | 18,380 | 26,526 | 22,317 | (2,729 | ) | (12.2 | ) | ||||||||||||||||||||
Sub-total before operating lease expense |
210,229 | 219,257 | 220,329 | 232,694 | 218,538 | (8,309 | ) | (3.8 | ) | ||||||||||||||||||||
Operating lease expense |
22,823 | 28,879 | 37,948 | 48,320 | 54,885 | (32,062 | ) | (58.4 | ) | ||||||||||||||||||||
Total non-interest expense |
233,052 | 248,136 | 258,277 | 281,014 | 273,423 | (40,371 | ) | (14.8 | ) | ||||||||||||||||||||
Income before income taxes |
151,626 | 137,039 | 125,097 | 128,340 | 131,741 | 19,885 | 15.1 | ||||||||||||||||||||||
Provision for income taxes |
43,052 | 30,614 | 28,578 | 37,201 | 38,255 | 4,797 | 12.5 | ||||||||||||||||||||||
Net income |
$ | 108,574 | $ | 106,425 | $ | 96,519 | $ | 91,139 | $ | 93,486 | $ | 15,088 | 16.1 | % | |||||||||||||||
Average
common shares - diluted |
233,456 | 235,671 | 235,053 | 235,502 | 234,348 | (892 | ) | (0.4) | % | ||||||||||||||||||||
Per common share |
|||||||||||||||||||||||||||||
Net income - diluted |
$ | 0.47 | $ | 0.45 | $ | 0.41 | $ | 0.39 | $ | 0.40 | $ | 0.07 | 17.5 | ||||||||||||||||
Cash dividends declared |
0.215 | 0.215 | 0.200 | 0.200 | 0.200 | 0.015 | 7.5 | ||||||||||||||||||||||
Return on average total assets |
1.32 | % | 1.31 | % | 1.20 | % | 1.13 | % | 1.18 | % | 0.14 | % | 11.9 | ||||||||||||||||
Return on average total shareholders equity |
16.5 | 16.3 | 15.5 | 14.6 | 15.4 | 1.1 | 7.1 | ||||||||||||||||||||||
Net interest margin (1) |
3.31 | 3.36 | 3.31 | 3.38 | 3.30 | 0.01 | 0.3 | ||||||||||||||||||||||
Efficiency ratio (2) |
57.4 | 61.8 | 63.7 | 66.4 | 66.3 | (8.9 | ) | (13.4 | ) | ||||||||||||||||||||
Effective tax rate |
28.4 | 22.3 | 22.8 | 29.0 | 29.0 | (0.6 | ) | (2.1 | ) | ||||||||||||||||||||
Revenue fully taxable equivalent (FTE) |
|||||||||||||||||||||||||||||
Net interest income |
$ | 241,637 | $ | 241,900 | $ | 235,198 | $ | 239,068 | $ | 227,058 | $ | 14,579 | 6.4 | ||||||||||||||||
FTE adjustment |
3,734 | 2,961 | 2,861 | 2,847 | 2,864 | 870 | 30.4 | ||||||||||||||||||||||
Net interest income (1) |
245,371 | 244,861 | 238,059 | 241,915 | 229,922 | 15,449 | 6.7 | ||||||||||||||||||||||
Non-interest income |
160,740 | 156,170 | 168,050 | 182,940 | 189,891 | (29,151 | ) | (15.4 | ) | ||||||||||||||||||||
Total revenue (1) |
$ | 406,111 | $ | 401,031 | $ | 406,109 | $ | 424,855 | $ | 419,813 | $ | (13,702 | ) | (3.3) | % | ||||||||||||||
N.M., not a meaningful value. | ||
(1) | On a fully taxable equivalent (FTE) basis assuming a 35% tax rate. | |
(2) | Non-interest expense less amortization of intangibles divided by the sum of FTE net interest income and non-interest income excluding securities gains (losses). |
7
2005 | 2004 | |||||||||||||||||||
(in thousands of dollars) | Third | Second | First | Fourth | Third | |||||||||||||||
Allowance for loan and lease losses,
beginning of period |
$ | 254,784 | $ | 264,390 | $ | 271,211 | $ | 282,650 | $ | 286,935 | ||||||||||
Loan and lease losses |
(25,830 | ) | (25,733 | ) | (37,213 | ) | (31,737 | ) | (26,366 | ) | ||||||||||
Recoveries of loans previously charged off |
7,877 | 9,469 | 8,941 | 10,824 | 9,886 | |||||||||||||||
Net loan and lease losses |
(17,953 | ) | (16,264 | ) | (28,272 | ) | (20,913 | ) | (16,480 | ) | ||||||||||
Provision for loan and lease losses |
17,112 | 13,247 | 21,451 | 9,474 | 12,971 | |||||||||||||||
Economic reserve transfer |
| (6,253 | ) | | | | ||||||||||||||
Allowance of assets sold and securitized |
| (336 | ) | | | (776 | ) | |||||||||||||
Allowance for loan and lease losses, end of period |
$ | 253,943 | $ | 254,784 | $ | 264,390 | $ | 271,211 | $ | 282,650 | ||||||||||
Allowance for unfunded loan commitments
and letters of credit, beginning of period |
$ | 37,511 | $ | 31,610 | $ | 33,187 | $ | 30,007 | $ | 31,193 | ||||||||||
Provision for unfunded loan commitments and
letters of credit losses |
587 | (352 | ) | (1,577 | ) | 3,180 | (1,186 | ) | ||||||||||||
Economic reserve transfer |
| 6,253 | | | | |||||||||||||||
Allowance for unfunded loan commitments
and letters of credit, end of period |
$ | 38,098 | $ | 37,511 | $ | 31,610 | $ | 33,187 | $ | 30,007 | ||||||||||
Total allowances for credit losses |
$ | 292,041 | $ | 292,295 | $ | 296,000 | $ | 304,398 | $ | 312,657 | ||||||||||
Allowance for loan and lease losses (ALLL) as % of: |
||||||||||||||||||||
Transaction reserve |
0.81 | % | 0.77 | % | 0.81 | % | 0.78 | % | 0.84 | % | ||||||||||
Economic reserve |
0.20 | 0.22 | 0.27 | 0.32 | 0.33 | |||||||||||||||
Specific reserve |
0.03 | 0.05 | 0.01 | 0.05 | 0.08 | |||||||||||||||
Total loans and leases |
1.04 | % | 1.04 | % | 1.09 | % | 1.15 | % | 1.25 | % | ||||||||||
Non-performing loans and leases (NPLs) |
283 | 304 | 441 | 424 | 417 | |||||||||||||||
Non-performing assets (NPAs) |
249 | 262 | 361 | 250 | 351 | |||||||||||||||
Total allowances for credit losses (ACL) as % of: |
||||||||||||||||||||
Total loans and leases |
1.19 | % | 1.19 | % | 1.22 | % | 1.29 | % | 1.38 | % | ||||||||||
Non-performing loans and leases |
326 | 349 | 494 | 476 | 461 | |||||||||||||||
Non-performing assets |
287 | 300 | 404 | 280 | 389 | |||||||||||||||
8
2005 | 2004 | |||||||||||||||||||
(in thousands of dollars) | Third | Second | First | Fourth | Third | |||||||||||||||
Net charge-offs by loan and lease type: |
||||||||||||||||||||
Commercial: |
||||||||||||||||||||
Middle market commercial and industrial |
$ | (1,082 | ) | $ | 1,312 | $ | 14,092 | $ | 1,239 | $ | (102 | ) | ||||||||
Construction |
495 | (134 | ) | (51 | ) | 704 | (19 | ) | ||||||||||||
Commercial |
1,779 | 2,269 | (152 | ) | 1,834 | 1,490 | ||||||||||||||
Middle market commercial real estate |
2,274 | 2,135 | (203 | ) | 2,538 | 1,471 | ||||||||||||||
Small business commercial and industrial
and commercial real estate |
3,062 | 2,141 | 2,283 | 1,386 | 1,195 | |||||||||||||||
Total commercial |
4,254 | 5,588 | 16,172 | 5,163 | 2,564 | |||||||||||||||
Consumer: |
||||||||||||||||||||
Automobile loans |
3,895 | 1,664 | 3,216 | 4,406 | 5,142 | |||||||||||||||
Automobile leases |
3,105 | 2,123 | 3,014 | 3,104 | 2,415 | |||||||||||||||
Automobile loans and leases |
7,000 | 3,787 | 6,230 | 7,510 | 7,557 | |||||||||||||||
Home equity |
4,093 | 5,065 | 3,963 | 5,346 | 4,259 | |||||||||||||||
Residential mortgage |
522 | 430 | 439 | 608 | 534 | |||||||||||||||
Other loans |
2,084 | 1,394 | 1,468 | 2,286 | 1,566 | |||||||||||||||
Total consumer |
13,699 | 10,676 | 12,100 | 15,750 | 13,916 | |||||||||||||||
Total net charge-offs |
$ | 17,953 | $ | 16,264 | $ | 28,272 | $ | 20,913 | $ | 16,480 | ||||||||||
Net
charge-offs - annualized percentages: |
||||||||||||||||||||
Commercial: |
||||||||||||||||||||
Middle market commercial and industrial |
(0.09 | )% | 0.11 | % | 1.20 | % | 0.11 | % | (0.01 | )% | ||||||||||
Construction |
0.12 | (0.03 | ) | (0.01 | ) | 0.18 | (0.01 | ) | ||||||||||||
Commercial |
0.37 | 0.48 | (0.03 | ) | 0.40 | 0.31 | ||||||||||||||
Middle market commercial real estate |
0.25 | 0.24 | (0.02 | ) | 0.30 | 0.17 | ||||||||||||||
Small business commercial and industrial
and commercial real estate |
0.54 | 0.38 | 0.42 | 0.26 | 0.23 | |||||||||||||||
Total commercial |
0.16 | 0.21 | 0.62 | 0.21 | 0.10 | |||||||||||||||
Consumer: |
||||||||||||||||||||
Automobile loans |
0.75 | 0.32 | 0.64 | 0.92 | 1.11 | |||||||||||||||
Automobile leases |
0.51 | 0.34 | 0.49 | 0.52 | 0.43 | |||||||||||||||
Automobile loans and leases |
0.62 | 0.33 | 0.56 | 0.70 | 0.74 | |||||||||||||||
Home equity |
0.35 | 0.44 | 0.35 | 0.48 | 0.39 | |||||||||||||||
Residential mortgage |
0.05 | 0.04 | 0.04 | 0.07 | 0.06 | |||||||||||||||
Other loans |
1.64 | 1.14 | 1.22 | 1.91 | 1.36 | |||||||||||||||
Total consumer |
0.40 | 0.31 | 0.36 | 0.49 | 0.45 | |||||||||||||||
Net charge-offs as a % of average loans |
0.29 | % | 0.27 | % | 0.47 | % | 0.36 | % | 0.30 | % | ||||||||||
9
2005 | 2004 | |||||||||||||||||||
(in thousands of dollars) | September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||
Non-accrual loans and leases: |
||||||||||||||||||||
Middle market commercial and industrial |
$ | 25,431 | $ | 26,856 | $ | 16,993 | $ | 24,179 | $ | 20,098 | ||||||||||
Middle market commercial real estate |
13,073 | 15,331 | 6,682 | 4,582 | 14,717 | |||||||||||||||
Small business commercial and industrial
and commercial real estate |
26,098 | 19,788 | 16,387 | 14,601 | 12,087 | |||||||||||||||
Residential mortgage |
16,402 | 14,137 | 12,498 | 13,545 | 13,197 | |||||||||||||||
Home equity |
8,705 | 7,748 | 7,333 | 7,055 | 7,685 | |||||||||||||||
Total non-performing loans and leases |
89,709 | 83,860 | 59,893 | 63,962 | 67,784 | |||||||||||||||
Other real estate, net: |
||||||||||||||||||||
Residential |
11,182 | 10,758 | 10,571 | 8,762 | 8,840 | |||||||||||||||
Commercial (1) |
909 | 2,800 | 2,839 | 35,844 | 3,852 | |||||||||||||||
Total other real estate, net |
12,091 | 13,558 | 13,410 | 44,606 | 12,692 | |||||||||||||||
Total non-performing assets |
$ | 101,800 | $ | 97,418 | $ | 73,303 | $ | 108,568 | $ | 80,476 | ||||||||||
Non-performing loans and leases as a % of
total loans and leases |
0.37 | % | 0.34 | % | 0.25 | % | 0.27 | % | 0.30 | % | ||||||||||
Non-performing assets as a % of total loans
and leases and other real estate |
0.42 | 0.40 | 0.30 | 0.46 | 0.36 | |||||||||||||||
Accruing loans and leases past due 90
days or more |
$ | 50,780 | $ | 53,371 | $ | 50,086 | $ | 54,283 | $ | 53,456 | ||||||||||
Accruing loans and leases past due 90 days or
more as a percent of total loans and leases |
0.21 | % | 0.22 | % | 0.21 | % | 0.23 | % | 0.24 | % |
2005 | 2004 | |||||||||||||||||||
(in thousands of dollars) | Third | Second | First | Fourth | Third | |||||||||||||||
Non-performing assets, beginning
of period |
$ | 97,418 | $ | 73,303 | $ | 108,568 | $ | 80,476 | $ | 74,696 | ||||||||||
New non-performing assets (1) |
37,570 | 47,420 | 33,607 | 61,684 | 22,740 | |||||||||||||||
Returns to accruing status |
(231 | ) | (250 | ) | (3,838 | ) | (2,248 | ) | | |||||||||||
Loan and lease losses |
(5,897 | ) | (6,578 | ) | (17,281 | ) | (8,578 | ) | (5,424 | ) | ||||||||||
Payments |
(21,203 | ) | (11,925 | ) | (10,404 | ) | (8,829 | ) | (10,202 | ) | ||||||||||
Sales (1) |
(5,857 | ) | (4,552 | ) | (37,349 | ) | (13,937 | ) | (1,334 | ) | ||||||||||
Non-performing assets, end of period |
$ | 101,800 | $ | 97,418 | $ | 73,303 | $ | 108,568 | $ | 80,476 | ||||||||||
(1) | At December 31, 2004, other real estate owned included $35.7 million of properties that related to the work-out of $5.9 million of mezzanine loans. These properties were subject to $29.8 million of non-recourse debt to another financial institution. Both properties were sold in the first quarter of 2005. |
10
2005 | 2004 | |||||||||||||||||||
(in thousands, except per share amounts) | Third | Second | First | Fourth | Third | |||||||||||||||
Common stock price, per share |
||||||||||||||||||||
High (1) |
$ | 25.410 | $ | 24.750 | $ | 24.780 | $ | 25.380 | $ | 25.150 | ||||||||||
Low (1) |
22.310 | 22.570 | 22.150 | 23.110 | 22.700 | |||||||||||||||
Close |
22.470 | 24.140 | 23.900 | 24.740 | 24.910 | |||||||||||||||
Average closing price |
24.227 | 23.771 | 23.216 | 24.241 | 24.105 | |||||||||||||||
Dividends, per share |
||||||||||||||||||||
Cash dividends declared on common stock |
$ | 0.215 | $ | 0.215 | $ | 0.200 | $ | 0.200 | $ | 0.200 | ||||||||||
Common shares outstanding |
||||||||||||||||||||
Average basic |
229,830 | 232,217 | 231,824 | 231,147 | 229,848 | |||||||||||||||
Average diluted |
233,456 | 235,671 | 235,053 | 235,502 | 234,348 | |||||||||||||||
Ending |
229,006 | 230,842 | 232,192 | 231,605 | 230,153 | |||||||||||||||
Book value per share |
$ | 11.45 | $ | 11.40 | $ | 11.15 | $ | 10.96 | $ | 10.69 | ||||||||||
Common share repurchase program
|
||||||||||||||||||||
Number of shares repurchased |
2,598 | 1,818 | | | | |||||||||||||||
2005 | 2004 | |||||||||||||||||||
(in millions of dollars) | September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||
Total risk-weighted assets (2) |
$ | 29,157 | $ | 29,973 | $ | 30,267 | $ | 29,542 | $ | 28,679 | ||||||||||
Tier 1 leverage ratio (2) |
8.51 | % | 8.50 | % | 8.45 | % | 8.42 | % | 8.36 | % | ||||||||||
Tier 1 risk-based capital ratio (2) |
9.49 | 9.18 | 9.04 | 9.08 | 9.10 | |||||||||||||||
Total risk-based capital ratio (2) |
12.79 | 12.39 | 12.33 | 12.48 | 12.53 | |||||||||||||||
Tangible equity / asset ratio |
7.39 | 7.36 | 7.42 | 7.18 | 7.11 | |||||||||||||||
Tangible equity / risk-weighted assets ratio (2) |
8.25 | 8.05 | 7.84 | 7.86 | 7.83 | |||||||||||||||
Average equity / average assets |
7.97 | 8.03 | 7.76 | 7.74 | 7.67 | |||||||||||||||
Other data |
||||||||||||||||||||
Number of employees (full-time equivalent) |
7,586 | 7,713 | 7,813 | 7,812 | 7,906 | |||||||||||||||
Number of domestic full-service banking offices (3) |
346 | 344 | 343 | 342 | 341 | |||||||||||||||
(1) | High and low stock prices are intra-day quotes obtained from NASDAQ. | |
(2) | September 30, 2005 figures are estimated. | |
(3) | Includes three Private Financial Group offices in Florida. |
11
2005 | 2004 | 3Q05 vs 3Q04 | |||||||||||||||||||||||||||
(in thousands of dollars) | Third | Second | First | Fourth | Third | Amount | Percent | ||||||||||||||||||||||
Balance Sheet: |
|||||||||||||||||||||||||||||
Average operating lease assets outstanding |
$ | 308,952 | $ | 408,798 | $ | 529,245 | $ | 647,970 | $ | 800,145 | $ | (491,193 | ) | (61.4 | )% | ||||||||||||||
Income Statement: |
|||||||||||||||||||||||||||||
Net rental income |
$ | 26,729 | $ | 34,562 | $ | 43,554 | $ | 51,016 | $ | 60,267 | $ | (33,538 | ) | (55.6 | )% | ||||||||||||||
Fees |
1,419 | 1,773 | 1,857 | 2,111 | 2,965 | (1,546 | ) | (52.1 | ) | ||||||||||||||||||||
Recoveries early terminations |
1,114 | 1,762 | 1,321 | 1,979 | 1,180 | (66 | ) | (5.6 | ) | ||||||||||||||||||||
Total operating lease income |
29,262 | 38,097 | 46,732 | 55,106 | 64,412 | (35,150 | ) | (54.6 | ) | ||||||||||||||||||||
Depreciation and residual losses at
termination |
20,856 | 26,560 | 34,703 | 45,293 | 49,917 | (29,061 | ) | (58.2 | ) | ||||||||||||||||||||
Losses early terminations |
1,967 | 2,319 | 3,245 | 3,027 | 4,968 | (3,001 | ) | (60.4 | ) | ||||||||||||||||||||
Total operating lease expense |
22,823 | 28,879 | 37,948 | 48,320 | 54,885 | (32,062 | ) | (58.4 | ) | ||||||||||||||||||||
Net earnings contribution |
$ | 6,439 | $ | 9,218 | $ | 8,784 | $ | 6,786 | $ | 9,527 | $ | (3,088 | ) | (32.4 | )% | ||||||||||||||
Earnings ratios (1) |
|||||||||||||||||||||||||||||
Net rental income |
34.6 | % | 33.8 | % | 32.9 | % | 31.5 | % | 30.1 | % | 4.5 | % | 15.0 | % | |||||||||||||||
Depreciation and residual losses at
termination |
27.0 | 26.0 | 26.2 | 28.0 | 25.0 | 2.0 | 8.0 | ||||||||||||||||||||||
(1) | As a percent of average operating lease assets, annualized. |
12
YTD Average Balances | ||||||||||||||||
Fully taxable equivalent basis | Nine Months Ended September 30, | Change | ||||||||||||||
(in millions of dollars) | 2005 | 2004 | Amount | Percent | ||||||||||||
Assets |
||||||||||||||||
Interest bearing deposits in banks |
$ | 53 | $ | 67 | $ | (14 | ) | (20.9 | )% | |||||||
Trading account securities |
237 | 64 | 173 | N.M. | ||||||||||||
Federal funds sold and securities purchased
under resale agreements |
298 | 193 | 105 | 54.4 | ||||||||||||
Loans held for sale |
303 | 248 | 55 | 22.2 | ||||||||||||
Investment securities: |
||||||||||||||||
Taxable |
3,662 | 4,615 | (953 | ) | (20.7 | ) | ||||||||||
Tax-exempt |
453 | 415 | 38 | 9.2 | ||||||||||||
Total investment securities |
4,115 | 5,030 | (915 | ) | (18.2 | ) | ||||||||||
Loans and leases: (1) |
||||||||||||||||
Commercial: |
||||||||||||||||
Middle market commercial and industrial |
4,773 | 4,431 | 342 | 7.7 | ||||||||||||
Construction |
1,680 | 1,355 | 325 | 24.0 | ||||||||||||
Commercial |
1,903 | 1,902 | 1 | 0.1 | ||||||||||||
Middle market commercial real estate |
3,583 | 3,257 | 326 | 10.0 | ||||||||||||
Small business commercial and industrial
and commercial real estate |
2,222 | 2,024 | 198 | 9.8 | ||||||||||||
Total commercial |
10,578 | 9,712 | 866 | 8.9 | ||||||||||||
Consumer: |
||||||||||||||||
Automobile loans |
2,052 | 2,410 | (358 | ) | (14.9 | ) | ||||||||||
Automobile leases |
2,451 | 2,126 | 325 | 15.3 | ||||||||||||
Automobile loans and leases |
4,503 | 4,536 | (33 | ) | (0.7 | ) | ||||||||||
Home equity |
4,630 | 4,086 | 544 | 13.3 | ||||||||||||
Residential mortgage |
4,053 | 3,049 | 1,004 | 32.9 | ||||||||||||
Other loans |
492 | 440 | 52 | 11.8 | ||||||||||||
Total consumer |
13,678 | 12,111 | 1,567 | 12.9 | ||||||||||||
Total loans and leases |
24,256 | 21,823 | 2,433 | 11.1 | ||||||||||||
Allowance for loan and lease losses |
(269 | ) | (303 | ) | 34 | 11.2 | ||||||||||
Net loans and leases |
23,987 | 21,520 | 2,467 | 11.5 | ||||||||||||
Total earning assets |
29,262 | 27,425 | 1,837 | 6.7 | ||||||||||||
Operating lease assets |
415 | 980 | (565 | ) | (57.7 | ) | ||||||||||
Cash and due from banks |
880 | 814 | 66 | 8.1 | ||||||||||||
Intangible assets |
218 | 216 | 2 | 0.9 | ||||||||||||
All other assets |
2,141 | 2,074 | 67 | 3.2 | ||||||||||||
Total Assets |
$ | 32,647 | $ | 31,206 | $ | 1,441 | 4.6 | % | ||||||||
Liabilities and Shareholders Equity |
||||||||||||||||
Deposits: |
||||||||||||||||
Demand deposits non-interest bearing |
$ | 3,358 | $ | 3,172 | $ | 186 | 5.9 | % | ||||||||
Demand deposits interest bearing |
7,712 | 7,055 | 657 | 9.3 | ||||||||||||
Savings and other domestic time deposits |
3,213 | 3,444 | (231 | ) | (6.7 | ) | ||||||||||
Retail certificates of deposit |
2,793 | 2,404 | 389 | 16.2 | ||||||||||||
Total core deposits |
17,076 | 16,075 | 1,001 | 6.2 | ||||||||||||
Domestic time deposits of $100,000 or more |
1,256 | 823 | 433 | 52.6 | ||||||||||||
Brokered deposits and negotiable CDs |
3,088 | 1,800 | 1,288 | 71.6 | ||||||||||||
Deposits in foreign offices |
446 | 522 | (76 | ) | (14.6 | ) | ||||||||||
Total deposits |
21,866 | 19,220 | 2,646 | 13.8 | ||||||||||||
Short-term borrowings |
1,347 | 1,447 | (100 | ) | (6.9 | ) | ||||||||||
Federal Home Loan Bank advances |
1,088 | 1,271 | (183 | ) | (14.4 | ) | ||||||||||
Subordinated notes and other long-term debt |
4,190 | 5,474 | (1,284 | ) | (23.5 | ) | ||||||||||
Total interest bearing liabilities |
25,133 | 24,240 | 893 | 3.7 | ||||||||||||
All other liabilities |
1,570 | 1,456 | 114 | 7.8 | ||||||||||||
Shareholders equity |
2,586 | 2,338 | 248 | 10.6 | ||||||||||||
Total Liabilities and Shareholders Equity |
$ | 32,647 | $ | 31,206 | $ | 1,441 | 4.6 | % | ||||||||
(1) | For purposes of this analysis, non-accrual loans are reflected in the average balances of loans. |
13
YTD Average Rates (2) | ||||||||
Nine Months Ended September 30, | ||||||||
Fully Taxable Equivalent basis (1) | 2005 | 2004 | ||||||
Assets |
||||||||
Interest bearing deposits in banks |
1.82 | % | 0.88 | % | ||||
Trading account securities |
4.00 | 4.17 | ||||||
Federal funds sold and securities purchased
under resale agreements |
2.79 | 1.42 | ||||||
Loans held for sale |
5.63 | 5.24 | ||||||
Investment securities: |
||||||||
Taxable |
4.09 | 3.91 | ||||||
Tax-exempt |
6.69 | 7.00 | ||||||
Total investment securities |
4.37 | 4.17 | ||||||
Loans and leases: |
||||||||
Commercial: |
||||||||
Middle market commercial and industrial |
5.52 | 4.28 | ||||||
Construction |
5.67 | 3.86 | ||||||
Commercial |
5.50 | 4.32 | ||||||
Middle market commercial real estate |
5.58 | 4.13 | ||||||
Small business commercial and industrial
and commercial real estate |
5.99 | 5.41 | ||||||
Total commercial |
5.64 | 4.46 | ||||||
Consumer: |
||||||||
Automobile loans |
6.61 | 7.20 | ||||||
Automobile leases |
4.92 | 5.00 | ||||||
Automobile loans and leases |
5.69 | 6.17 | ||||||
Home equity |
6.21 | 4.84 | ||||||
Residential mortgage |
5.39 | 5.36 | ||||||
Other loans |
6.18 | 6.21 | ||||||
Total consumer |
5.79 | 5.52 | ||||||
Total loans and leases |
5.73 | 5.03 | ||||||
Total earning assets |
5.49 | % | 4.84 | % | ||||
Liabilities and Shareholders Equity |
||||||||
Deposits: |
||||||||
Demand
deposits - non-interest bearing |
| % | | % | ||||
Demand
deposits - interest bearing |
1.65 | 0.96 | ||||||
Savings and other domestic time deposits |
1.33 | 1.29 | ||||||
Retail certificates of deposit |
3.50 | 3.35 | ||||||
Total core deposits |
1.95 | 1.50 | ||||||
Domestic time deposits of $100,000 or more |
3.27 | 2.31 | ||||||
Brokered deposits and negotiable CDs |
3.27 | 1.64 | ||||||
Deposits in foreign offices |
1.89 | 0.77 | ||||||
Total deposits |
2.26 | 1.53 | ||||||
Short-term borrowings |
2.23 | 0.85 | ||||||
Federal Home Loan Bank advances |
2.99 | 2.54 | ||||||
Subordinated notes and other long-term debt |
3.82 | 2.39 | ||||||
Total interest bearing liabilities |
2.55 | 1.74 | ||||||
Net interest rate spread |
2.94 | 3.10 | ||||||
Impact of non-interest bearing funds on margin |
0.39 | 0.21 | ||||||
Net interest margin |
3.33 | % | 3.31 | % | ||||
(1) | Fully taxable equivalent (FTE) yields are calculated assuming a 35% tax rate. See page 15 for the FTE adjustment. | |
(2) | Loan and lease and deposit average rates include impact of applicable derivatives and non-deferrable fees. | |
(3) | For purposes of this analysis, non-accrual loans are reflected in the average balances of loans. |
14
Nine Months Ended September 30, | Change | |||||||||||||||
(in thousands of dollars, except per share amounts) | 2005 | 2004 | Amount | Percent | ||||||||||||
Interest income |
$ | 1,199,289 | $ | 988,100 | $ | 211,189 | 21.4 | % | ||||||||
Interest expense |
480,554 | 315,794 | 164,760 | 52.2 | ||||||||||||
Net interest income |
718,735 | 672,306 | 46,429 | 6.9 | ||||||||||||
Provision for credit losses |
50,468 | 42,408 | 8,060 | 19.0 | ||||||||||||
Net interest income after provision for credit losses |
668,267 | 629,898 | 38,369 | 6.1 | ||||||||||||
Service charges on deposit accounts |
125,751 | 129,368 | (3,617 | ) | (2.8 | ) | ||||||||||
Trust services |
56,980 | 50,095 | 6,885 | 13.7 | ||||||||||||
Brokerage and insurance income |
40,518 | 41,920 | (1,402 | ) | (3.3 | ) | ||||||||||
Bank owned life insurance income |
30,347 | 31,813 | (1,466 | ) | (4.6 | ) | ||||||||||
Other service charges and fees |
32,860 | 30,957 | 1,903 | 6.1 | ||||||||||||
Mortgage banking income |
30,801 | 23,474 | 7,327 | 31.2 | ||||||||||||
Securities gains |
715 | 13,663 | (12,948 | ) | (94.8 | ) | ||||||||||
Gains on sales of automobile loans |
756 | 14,206 | (13,450 | ) | (94.7 | ) | ||||||||||
Other income |
52,141 | 68,177 | (16,036 | ) | (23.5 | ) | ||||||||||
Sub-total before operating lease income |
370,869 | 403,673 | (32,804 | ) | (8.1 | ) | ||||||||||
Operating lease income |
114,091 | 231,985 | (117,894 | ) | (50.8 | ) | ||||||||||
Total non-interest income |
484,960 | 635,658 | (150,698 | ) | (23.7 | ) | ||||||||||
Personnel costs |
365,547 | 363,068 | 2,479 | 0.7 | ||||||||||||
Net occupancy |
53,152 | 49,859 | 3,293 | 6.6 | ||||||||||||
Outside data processing and
other services |
54,945 | 53,552 | 1,393 | 2.6 | ||||||||||||
Equipment |
47,031 | 47,609 | (578 | ) | (1.2 | ) | ||||||||||
Professional services |
27,129 | 27,354 | (225 | ) | (0.8 | ) | ||||||||||
Marketing |
20,674 | 20,908 | (234 | ) | (1.1 | ) | ||||||||||
Telecommunications |
14,195 | 15,191 | (996 | ) | (6.6 | ) | ||||||||||
Printing and supplies |
9,489 | 9,315 | 174 | 1.9 | ||||||||||||
Amortization of intangibles |
611 | 612 | (1 | ) | (0.2 | ) | ||||||||||
Restructuring reserve releases |
| (1,151 | ) | 1,151 | N.M. | |||||||||||
Other expense |
57,042 | 66,755 | (9,713 | ) | (14.6 | ) | ||||||||||
Sub-total before operating lease expense |
649,815 | 653,072 | (3,257 | ) | (0.5 | ) | ||||||||||
Operating lease expense |
89,650 | 188,158 | (98,508 | ) | (52.4 | ) | ||||||||||
Total non-interest expense |
739,465 | 841,230 | (101,765 | ) | (12.1 | ) | ||||||||||
Income before income taxes |
413,762 | 424,326 | (10,564 | ) | (2.5 | ) | ||||||||||
Provision for income taxes |
102,244 | 116,540 | (14,296 | ) | (12.3 | ) | ||||||||||
Net income |
$ | 311,518 | $ | 307,786 | $ | 3,732 | 1.2 | % | ||||||||
Average common shares diluted |
234,727 | 233,307 | 1,420 | 0.6 | % | |||||||||||
Per common share |
||||||||||||||||
Net income per common share diluted |
$ | 1.33 | $ | 1.32 | $ | 0.01 | 0.8 | % | ||||||||
Cash dividends declared |
0.630 | 0.550 | 0.080 | 14.5 | ||||||||||||
Return on average total assets |
1.28 | % | 1.32 | % | (0.04 | )% | (3.0 | )% | ||||||||
Return on average total shareholders equity |
16.1 | 17.6 | (1.5 | ) | (8.5 | ) | ||||||||||
Net interest
margin (1) |
3.33 | 3.31 | 0.02 | 0.6 | ||||||||||||
Efficiency
ratio (2) |
60.9 | 64.5 | (3.6 | ) | (5.6 | ) | ||||||||||
Effective tax rate |
24.7 | 27.5 | (2.8 | ) | (10.2 | ) | ||||||||||
Revenue fully taxable equivalent (FTE) |
||||||||||||||||
Net interest income |
$ | 718,735 | $ | 672,306 | $ | 46,429 | 6.9 | % | ||||||||
FTE
adjustment (1) |
9,556 | 8,806 | 750 | 8.5 | ||||||||||||
Net interest income |
728,291 | 681,112 | 47,179 | 6.9 | ||||||||||||
Non-interest income |
484,960 | 635,658 | (150,698 | ) | (23.7 | ) | ||||||||||
Total revenue |
$ | 1,213,251 | $ | 1,316,770 | $ | (103,519 | ) | (7.9 | )% | |||||||
N.M., not a meaningful value. |
(1) | On a fully taxable equivalent (FTE) basis assuming a 35% tax rate. | |
(2) | Non-interest expense less amortization of intangibles divided by the sum of FTE net interest income and non-interest income excluding securities gains. |
15
Nine Months Ended September 30, | ||||||||
(in thousands of dollars) | 2005 | 2004 | ||||||
Allowance for loan and lease losses,
beginning of period |
$ | 271,211 | $ | 299,732 | ||||
Loan and lease losses |
(88,776 | ) | (94,378 | ) | ||||
Recoveries of loans previously charged off |
26,287 | 36,756 | ||||||
Net loan and lease losses |
(62,489 | ) | (57,622 | ) | ||||
Provision for loan and lease losses |
51,810 | 47,923 | ||||||
Economic reserve transfer |
(6,253 | ) | | |||||
Allowance of assets sold and securitized |
(336 | ) | (7,383 | ) | ||||
Allowance for loan and lease losses, end of period |
$ | 253,943 | $ | 282,650 | ||||
Allowance for unfunded loan commitments
and letters of credit, beginning of period |
$ | 33,187 | $ | 35,522 | ||||
Provision for unfunded loan commitments and
letters of credit losses |
(1,342 | ) | (5,515 | ) | ||||
Economic reserve transfer |
6,253 | | ||||||
Allowance for unfunded loan commitments
and letters of credit, end of period |
$ | 38,098 | $ | 30,007 | ||||
Total allowances for credit losses |
$ | 292,041 | $ | 312,657 | ||||
16
Nine Months Ended September 30, | ||||||||
(in thousands of dollars) | 2005 | 2004 | ||||||
Net charge-offs by loan and lease type: |
||||||||
Commercial: |
||||||||
Middle market commercial and industrial |
$ | 14,322 | $ | 681 | ||||
Construction |
310 | 1,761 | ||||||
Commercial |
3,896 | 3,672 | ||||||
Middle market commercial real estate |
4,206 | 5,433 | ||||||
Small business commercial and industrial
and commercial real estate |
7,486 | 4,180 | ||||||
Total commercial |
26,014 | 10,294 | ||||||
Consumer: |
||||||||
Automobile loans |
8,775 | 24,168 | ||||||
Automobile leases |
8,242 | 7,733 | ||||||
Automobile loans and leases |
17,017 | 31,901 | ||||||
Home equity |
13,121 | 9,728 | ||||||
Residential mortgage |
1,391 | 1,152 | ||||||
Other loans |
4,946 | 4,547 | ||||||
Total consumer |
36,475 | 47,328 | ||||||
Total net charge-offs |
$ | 62,489 | $ | 57,622 | ||||
Net
charge-offs - annualized percentages: |
||||||||
Commercial: |
||||||||
Middle market commercial and industrial |
0.40 | % | 0.02 | % | ||||
Construction |
0.02 | 0.17 | ||||||
Commercial |
0.27 | 0.26 | ||||||
Middle market commercial real estate |
0.16 | 0.22 | ||||||
Small business commercial and industrial
and commercial real estate |
0.45 | 0.28 | ||||||
Total commercial |
0.33 | 0.14 | ||||||
Consumer: |
||||||||
Automobile loans |
0.57 | 1.34 | ||||||
Automobile leases |
0.45 | 0.48 | ||||||
Automobile loans and leases |
0.50 | 0.94 | ||||||
Home equity |
0.38 | 0.32 | ||||||
Residential mortgage |
0.05 | 0.05 | ||||||
Other loans |
1.34 | 1.38 | ||||||
Total consumer |
0.36 | 0.52 | ||||||
Net charge-offs as a % of average loans |
0.34 | % | 0.35 | % | ||||
17
Nine Months Ended September 30, | 2005 vs 2004 | |||||||||||||||
(in thousands of dollars) | 2005 | 2004 | Amount | Percent | ||||||||||||
Balance Sheet: |
||||||||||||||||
Average operating lease assets outstanding |
$ | 414,858 | $ | 980,312 | $ | (565,454 | ) | (57.7 | )% | |||||||
Income Statement: |
||||||||||||||||
Net rental income |
$ | 104,845 | $ | 216,186 | $ | (111,341 | ) | (51.5 | ) | |||||||
Fees |
5,049 | 11,346 | (6,297 | ) | (55.5 | ) | ||||||||||
Recoveries early terminations |
4,197 | 4,453 | (256 | ) | (5.7 | ) | ||||||||||
Total operating lease income |
114,091 | 231,985 | (117,894 | ) | (50.8 | ) | ||||||||||
Depreciation and residual losses at
termination |
82,119 | 171,152 | (89,033 | ) | (52.0 | ) | ||||||||||
Losses early terminations |
7,531 | 17,006 | (9,475 | ) | (55.7 | ) | ||||||||||
Total operating lease expense |
89,650 | 188,158 | (98,508 | ) | (52.4 | ) | ||||||||||
Net earnings contribution |
$ | 24,441 | $ | 43,827 | $ | (19,386 | ) | (44.2 | )% | |||||||
Earnings
ratios(1) |
||||||||||||||||
Net rental income |
33.7 | % | 29.4 | % | 4.3 | % | 14.6 | % | ||||||||
Depreciation and residual losses at
termination |
26.4 | 23.3 | 3.1 | 13.3 | ||||||||||||
(1) | As a percent of average operating lease assets, annualized. |
18