EX-99.1 2 l11908aexv99w1.txt EX-99.1 PRESS RELEASE Exhibit 99.1 [NATIONAL CITY LOGO] UNAUDITED MID-QUARTER UPDATE TO FINANCIAL SUPPLEMENT FEBRUARY 28, 2005 TABLE OF CONTENTS REVIEW OF FINANCIAL TRENDS 2 CONSOLIDATED SELECTED AVERAGE BALANCES 4 CAPITALIZATION 5 FULL-TIME EQUIVALENT EMPLOYEES BY LINE OF BUSINESS 5 CONSUMER AND SMALL BUSINESS FINANCIAL SERVICES PERFORMANCE MEASURES 6 ASSET MANAGEMENT PERFORMANCE MEASURES 7 MORTGAGE BANKING STATISTICS 7 FIRST FRANKLIN ORIGINATION AND PORTFOLIO STATISTICS 8 NATIONAL CITY CORPORATION REVIEW OF FINANCIAL TRENDS This section contains forward-looking statements. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance, nor should they be relied upon as representing management's views as of any subsequent date. The forward-looking statements are based on management's expectations and are subject to a number of risks and uncertainties. Although management believes the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include, without limitation, the Corporation's ability to effectively execute its business plans; changes in general economic and financial market conditions; changes in interest rates; changes in the competitive environment; continuing consolidation in the financial services industry; new litigation or changes in existing litigation; losses, customer bankruptcy, claims and assessments; changes in banking regulations or other regulatory or legislative requirements affecting the Corporation's business; and changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies. Additional information concerning factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements is available in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2004, and subsequent filings with the United States Securities and Exchange Commission (SEC). Copies of these filings are available at no cost on the SEC's Web site at www.sec.gov or on the Corporation's Web site at www.NationalCity.com. Management may elect to update forward-looking statements at some future point; however, it specifically disclaims any obligation to do so. EARNING ASSETS, NET INTEREST MARGIN, AND NET INTEREST INCOME Growth is evident across all major categories of the loan portfolio. Commercial loan activity has clearly picked up; however, spreads have tightened. Home equity growth continues to be very strong, while nonconforming lending production has slowed. Balances of mortgage loans held for sale have been trending down, reflecting lower levels of production, as expected. The flatter yield curve has reduced the carrying margin on loans held for sale. Consumer deposits are higher, and account retention and household profitability trends are positive. Total deposits are down slightly from the fourth quarter due to lower escrow-related balances and seasonal factors. Overall, net interest income for the first quarter is expected to be relatively flat compared to the fourth quarter, with earning asset growth offset by a lower net interest margin. NONINTEREST INCOME AND EXPENSE In general, core banking fees are expected to be flat compared to the fourth quarter. Mortgage banking revenue has been relatively strong due to sales of mortgage loans at National City Mortgage, servicing income, and positive net mortgage servicing hedging results through February, all of which have helped to offset the effects of lower sales and tighter gain-on-sale margins at First Franklin. 2 Non-interest expenses are trending below the run rate of the fourth quarter. Acquisition-related costs are expected to total $20 million to $25 million for the first quarter, including severance, retention, contract labor and other items, compared to approximately $39 million in the fourth quarter. With the successful conversion and integration of Provident in March, acquisition-related costs will decline further in subsequent quarters. In addition, National City is reassessing its accounting for operating leases with escalating rentals and expects to record a charge of up to $30 million in the first quarter to recognize rental expense on a straight-line basis. CREDIT QUALITY Asset quality in the corporate loan portfolio continues to improve, while credit trends in the consumer portfolio have been stable. There has been no significant change in risk areas highlighted in the 2004 Form 10-K. CAPITAL In the first two months of 2005, 8.9 million shares were repurchased in the open market, and through March 11 an additional 1.8 million shares were repurchased. Management intends to continue repurchasing shares over the next several months, subject to market conditions and applicable laws and regulations, in the context of a targeted tangible equity to tangible assets ratio of at least 6.5 percent. 3 Unaudited National City Corporation Mid-Quarter Update to Financial Supplement CONSOLIDATED SELECTED AVERAGE BALANCES ($ in millions)
------------------------------------------------------------------------------------------------------------------------------------ FEBRUARY JANUARY DECEMBER NOVEMBER OCTOBER SEPTEMBER AUGUST 2005 2005 2004 2004 2004 2004 2004 ------------------ ------------------------------------------------- ASSETS ----------------------------------------------------------- AVAILABLE FOR SALE SECURITIES, AT COST $ 8,646 $ 8,939 $ 9,348 $ 9,573 $ 9,653 $ 9,460 $ 9,618 PORTFOLIO LOANS: Commercial $ 25,405 $ 25,198 $ 25,147 $ 25,171 $ 25,199 $ 24,852 $ 24,523 Commercial construction 2,917 2,906 2,926 2,957 2,925 2,855 2,820 Real estate - commercial 12,274 12,217 12,063 11,976 11,956 12,005 12,026 Real estate - residential 30,330 30,277 30,743 30,551 30,348 30,063 29,592 Home equity lines of credit 19,423 19,053 18,581 18,080 17,584 16,839 16,294 Credit card and other unsecured lines of credit 2,338 2,400 2,393 2,327 2,329 2,309 2,282 Other consumer 8,325 8,309 7,966 7,911 7,884 7,719 7,545 ------------------ ------------------------------------------------- TOTAL PORTFOLIO LOANS $101,012 $100,360 $ 99,819 $ 98,973 $ 98,225 $ 96,642 $ 95,082 ================== ================================================= LOANS HELD FOR SALE OR SECURITIZATION: Commercial $ 17 $ 21 $ 22 $ 13 $ 13 $ 17 $ 17 Commercial real estate 214 315 384 371 223 278 348 Mortgage: National City Mortgage Co. 8,170 9,092 9,259 9,289 8,827 8,748 8,498 First Franklin 2,773 2,658 2,123 1,958 1,874 2,162 2,402 National City Home Loan Services (formerly Altegra) - 71 144 - - 7 3 Provident PCFS 2 3 3 - 10 47 86 ------------------ ------------------------------------------------- Total mortgage loans held for sale 10,945 11,824 11,529 11,247 10,711 10,964 10,989 Automobile loans held for securitization - - - - - - - ------------------ ------------------------------------------------- TOTAL LOANS HELD FOR SALE OR SECURITIZATION $ 11,176 $ 12,160 $ 11,935 $ 11,631 $ 10,947 $ 11,259 $ 11,354 ================== ================================================= LIABILITIES ----------------------------------------------------------- DEPOSITS: Noninterest bearing $ 17,686 $ 18,203 $ 18,726 $ 19,309 $ 18,628 $ 18,729 $ 18,722 NOW and money market accounts 29,145 29,260 29,730 29,893 29,928 29,449 29,715 Savings accounts 2,548 2,567 2,634 2,744 2,742 2,613 2,648 Consumer time 17,197 16,914 16,739 16,669 16,585 16,401 16,337 ------------------ ------------------------------------------------- CORE DEPOSITS 66,576 66,944 67,829 68,615 67,883 67,192 67,422 Other 4,895 4,821 4,822 5,183 5,140 5,065 5,373 Foreign 8,882 11,957 11,882 9,983 8,962 9,725 9,447 ------------------ ------------------------------------------------- TOTAL DEPOSITS $ 80,353 $ 83,722 $ 84,533 $ 83,781 $ 81,985 $ 81,982 $ 82,242 ================== ================================================= Federal funds borrowed and security repurchase agreements $ 6,984 $ 7,553 $ 7,623 $ 6,846 $ 6,900 $ 7,400 $ 8,012 Borrowed funds 1,607 1,298 1,270 1,507 2,175 1,616 800 Long-term debt 32,190 29,475 28,527 29,284 28,983 27,254 25,688 MEMO: Noninterest bearing mortgage escrow principal and interest (P&I) balances $ 2,462 $ 2,673 $ 3,017 $ 3,168 $ 2,902 $ 2,815 $ 2,720 Noninterest bearing mortgage escrow taxes and insurance (T&I) balances 1,210 1,159 1,202 1,436 1,540 1,421 1,381 Noninterest bearing mortgage escrow replacement reserve (NRR) balances 108 102 107 118 104 99 92 Interest bearing mortgage escrow replacement reserve (IRR) balances 143 139 132 126 127 122 119 Noninterest bearing deposits excluding P&I, T&I, and NRR balances 13,906 14,269 14,400 14,587 14,082 14,394 14,529 Core deposits excluding P&I, T&I, NRR, and IRR balances 62,653 62,871 63,371 63,767 63,210 62,735 63,110 --------------------------------------------------------------------------------------------------------------------------- JULY JUNE MAY APRIL MARCH FEBRUARY 2004 2004 2004 2004 2004 2004 ------------------------------------------------------------ ASSETS ----------------------------------------------------------- AVAILABLE FOR SALE SECURITIES, AT COST $ 9,923 $ 6,541 $ 6,656 $ 6,740 $ 6,423 $ 6,565 PORTFOLIO LOANS: Commercial $ 24,980 $ 19,596 $ 19,657 $ 19,337 $ 18,927 $ 18,843 Commercial construction 2,771 2,279 2,259 2,274 2,228 2,249 Real estate - commercial 11,947 10,967 10,940 10,550 9,820 9,817 Real estate - residential 29,277 28,352 27,945 27,649 27,105 26,950 Home equity lines of credit 15,626 13,342 12,845 12,270 11,732 11,373 Credit card and other unsecured lines of credit 2,252 2,189 2,257 2,248 2,251 2,281 Other consumer 7,435 7,040 7,130 7,458 7,391 7,412 ----------------------------------------------------------- TOTAL PORTFOLIO LOANS $ 94,288 $ 83,765 $ 83,033 $ 81,786 $ 79,454 $ 78,925 =========================================================== LOANS HELD FOR SALE OR SECURITIZATION: Commercial $ 148 $ 24 $ 15 $ 25 $ 7 $ 7 Commercial real estate 357 - - - - - Mortgage: National City Mortgage Co. 9,424 10,861 11,832 11,202 9,816 9,063 First Franklin 2,875 2,962 2,580 2,015 1,490 1,945 National City Home Loan Services (formerly Altegra) 3 5 68 122 - - Provident PCFS 145 - - - - - ----------------------------------------------------------- Total mortgage loans held for sale 12,447 13,828 14,480 13,339 11,306 11,008 Automobile loans held for securitization - - - - - 732 ----------------------------------------------------------- TOTAL LOANS HELD FOR SALE OR SECURITIZATION $ 12,952 $ 13,852 $ 14,495 $ 13,364 $ 11,313 $ 11,747 =========================================================== LIABILITIES ----------------------------------------------------------- DEPOSITS: Noninterest bearing $ 18,741 $ 17,279 $ 18,127 $ 17,850 $ 16,505 $ 15,383 NOW and money market accounts 30,159 28,626 28,696 28,518 27,758 27,252 Savings accounts 2,774 2,584 2,594 2,550 2,400 2,350 Consumer time 16,217 13,618 13,471 13,332 12,910 13,021 ----------------------------------------------------------- CORE DEPOSITS 67,891 62,107 62,888 62,250 59,573 58,006 Other 5,161 1,180 1,107 1,005 838 837 Foreign 10,253 9,701 10,100 7,617 6,135 6,633 ----------------------------------------------------------- TOTAL DEPOSITS $ 83,305 $ 72,988 $ 74,095 $ 70,872 $ 66,546 $ 65,476 =========================================================== Federal funds borrowed and security repurchase agreements $ 8,667 $ 8,236 $ 7,719 $ 8,825 $ 8,422 $ 7,976 Borrowed funds 958 1,803 1,297 1,550 907 1,042 Long-term debt 24,438 20,533 20,295 19,257 19,829 21,405 MEMO: Noninterest bearing mortgage escrow principal and interest (P&I) balances $ 2,771 $ 2,911 $ 3,916 $ 3,951 $ 3,046 $ 2,323 Noninterest bearing mortgage escrow taxes and insurance (T&I) balances 1,340 1,185 1,132 1,139 1,057 967 Noninterest bearing mortgage escrow replacement reserve (NRR) balances 93 - - - - - Interest bearing mortgage escrow replacement reserve (IRR) balances 116 - - - - - Noninterest bearing deposits excluding P&I, T&I, and NRR balances 14,537 13,183 13,079 12,760 12,402 12,093 Core deposits excluding P&I, T&I, NRR, and IRR balances 63,571 58,011 57,840 57,160 55,470 54,716
4 Unaudited National City Corporation Mid-Quarter Update to Financial Supplement CAPITALIZATION (Period End) (In millions, except per share and employee data)
---------------------------------------------------------------------------------------------------------------------------- FEBRUARY JANUARY DECEMBER NOVEMBER OCTOBER SEPTEMBER AUGUST JULY 2005 2005 2004 2004 2004 2004 2004 2004 ------------------ ---------------------------------------------------- COMMON STOCK REPURCHASE ACTIVITY ---------------------------------------------------- Number of common shares repurchased 6.0 2.9 5.1 4.4 3.4 5.6 2.4 8.0 Average price per share of repurchased common shares $ 35.90 $ 35.86 $ 37.10 $ 38.33 $ 38.40 $ 38.31 $ 37.09 $ 35.72 Total cost $ 216.8 $ 104.0 $ 189.3 $ 168.2 $ 130.7 $ 214.8 $ 87.5 $ 286.9 Common shares remaining under authorization(1) 28.2 34.2 37.1 17.2 21.6 25.0 30.6 33.0 Shares outstanding: Average basic 642.8 647.8 648.4 653.4 657.0 660.7 662.9 666.4 Average diluted 652.9 658.2 660.8 667.2 670.8 675.4 677.3 678.6 Ending common 640.1 646.0 646.7 651.5 655.4 658.3 662.6 662.7 --------------------------------------------------------------------------------------------- JUNE MAY APRIL MARCH FEBRUARY 2004 2004 2004 2004 2004 ----------------------------------------- COMMON STOCK REPURCHASE ACTIVITY ---------------------------------------------------- Number of common shares repurchased 9.0 - - - .8 Average price per share of repurchased common shares $ 35.06 - - - $ 34.86 Total cost $ 315.9 - - - $ 29.0 Common shares remaining under authorization(1) 41.0 50.0 50.0 50.0 50.0 Shares outstanding: Average basic 618.4 621.5 617.3 606.4 605.4 Average diluted 625.0 627.8 623.6 613.8 612.2 Ending common 612.9 621.6 621.3 606.6 605.5
(1) In December 2004, National City's Board of Directors authorized an additional 25 million shares of issued and outstanding common stock. This new authorization is incremental to the February 2004 share repurchase authorization, for 50 million shares, which replaced all previous share authorizations.
FULL-TIME EQUIVALENT EMPLOYEES BY LINE OF BUSINESS(1) ----------------------------------------------------------------------------------------------------------------------------------- FEBRUARY JANUARY DECEMBER NOVEMBER OCTOBER SEPTEMBER AUGUST JULY JUNE 2005 2005 2004 2004 2004 2004 2004 2004 2004 ---------------- --------------------------------------------------------------- LINE OF BUSINESS STAFF: Consumer and Small Business Financial Services 13,266 13,115 13,091 12,803 12,654 12,678 12,733 12,881 12,334 Wholesale Banking 2,328 2,296 2,282 2,280 2,259 2,272 2,257 2,288 1,683 National City Mortgage Co. 7,925 7,885 7,795 7,743 7,708 7,657 7,709 7,719 7,800 National Consumer Finance First Franklin Financial Corporation 2,393 2,380 2,391 2,492 2,488 2,481 2,450 2,369 2,241 National City Home Loan Services 333 325 325 326 333 326 326 332 338 National Home Equity 429 431 415 412 411 415 429 437 391 National City Warehouse Resources 87 86 69 70 68 63 64 66 - Provident PCFS(2) - - 245 262 369 437 448 455 - ---------------- --------------------------------------------------------------- Total National Consumer Finance 3,242 3,222 3,445 3,562 3,669 3,722 3,717 3,659 2,970 Asset Management 1,527 1,530 1,517 1,514 1,527 1,522 1,522 1,556 1,500 National Processing(3) - - - - - 1,608 1,621 1,673 1,655 CORPORATE SUPPORT STAFF(4) 7,024 7,004 7,100 7,244 7,253 6,933 7,018 7,199 6,120 ---------------- --------------------------------------------------------------- TOTAL EMPLOYEES 35,312 35,052 35,230 35,146 35,070 36,392 36,577 36,975 34,062 ================ =============================================================== ------------------------------------------------------------------------------------- MAY APRIL MARCH FEBRUARY 2004 2004 2004 2004 ----------------------------------- LINE OF BUSINESS STAFF: Consumer and Small Business Financial Services 12,229 12,232 11,996 11,966 Wholesale Banking 1,690 1,673 1,590 1,574 National City Mortgage Co. 7,776 7,798 7,678 7,691 National Consumer Finance First Franklin Financial Corporation 2,157 2,072 2,012 1,970 National City Home Loan Services 338 331 328 337 National Home Equity 365 331 312 305 National City Warehouse Resources - - - - Provident PCFS(2) - - - - ----------------------------------- Total National Consumer Finance 2,860 2,734 2,652 2,612 Asset Management 1,484 1,488 1,475 1,480 National Processing(3) 1,639 1,660 1,671 1,683 CORPORATE SUPPORT STAFF(4) 5,988 6,027 5,974 6,007 ----------------------------------- TOTAL EMPLOYEES 33,666 33,612 33,036 33,013 ===================================
(1) Represents period-end, active, full-time equivalent employees (2) In December 2004, the Provident PCFS business was sold (3) In October 2004, the National Processing business was sold (4) Personnel expense associated with corporate staff are allocated to the lines of business either directly based on usage or indirectly as part of the general overhead allocation process 5 Unaudited National City Corporation Mid-Quarter Update to Financial Supplement CONSUMER AND SMALL BUSINESS FINANCIAL SERVICES PERFORMANCE MEASURES
---------------------------------------------------------------------------------------------------------------------------------- FEBRUARY JANUARY DECEMBER NOVEMBER OCTOBER SEPTEMBER AUGUST 2005 2005 2004 2004 2004 2004 2004 --------------------- --------------------------------------------------------- AVERAGE TOTAL DEPOSITS (IN MILLIONS)(1) $52,115 $51,988 $52,062 $51,611 $51,578 $51,867 $52,087 PERIOD-END DEPOSIT ACCOUNT METRICS(1) ------------------------------------------------ PERSONAL DEPOSITS: Number of accounts (in thousands): Noninterest bearing checking 1,742 1,740 1,748 1,734 1,741 1,750 1,758 Interest bearing checking 867 857 844 837 831 830 825 Money market savings 620 599 583 557 549 541 531 Regular savings 738 749 761 766 779 796 808 --------------------- --------------------------------------------------------- TOTAL PERSONAL DEPOSIT ACCOUNTS 3,967 3,945 3,936 3,894 3,900 3,917 3,922 --------------------- --------------------------------------------------------- Average account size: Noninterest bearing checking $2,221 $2,132 $2,192 $2,044 $2,150 $2,012 $2,038 Interest bearing checking 9,196 9,220 9,671 9,435 9,554 9,575 9,893 Money market savings 22,674 23,488 24,025 25,179 25,781 26,334 27,090 Regular savings 2,903 2,853 2,847 2,786 2,771 2,735 2,727 --------------------- --------------------------------------------------------- TOTAL AVERAGE ACCOUNT SIZE $7,067 $7,052 $7,159 $7,088 $7,178 $7,123 $7,223 --------------------- --------------------------------------------------------- BUSINESS DEPOSITS: Number of accounts (in thousands) 377 376 374 370 369 368 363 Average account size $19,662 $19,441 $19,444 $20,429 $20,223 $20,173 $20,245 TIME DEPOSITS: Number of accounts (in thousands) 950 940 935 922 932 936 936 Average account size $17,683 $17,552 $17,392 $17,295 $17,036 $16,985 $16,927 CONSUMER LOAN PRODUCTION METRICS (# OF LOANS)(2) ------------------------------------------------ Installment loan originations: Home equity(3) 1,758 1,339 2,486 2,055 1,920 2,201 3,354 Other(4) 1,361 1,336 1,285 1,584 1,600 1,886 1,817 Home equity and other lines of credit 4,997 4,635 5,298 6,057 7,262 7,445 7,465 --------------------- --------------------------------------------------------- TOTAL CONSUMER LOAN ORIGINATIONS 8,116 7,310 9,069 9,696 10,782 11,532 12,636 --------------------- --------------------------------------------------------- BANK BRANCHES AND OTHER ------------------------------------------------ Total bank branches 1,226 1,227 1,222 1,222 1,224 1,206 1,207 ATMs 1,937 1,958 1,948 1,948 1,945 1,931 2,106 Online banking customers 1,038,882 1,023,818 1,014,403 1,005,659 997,355 975,392 968,093 ---------------------------------------------------------------------------------------------------------------------------------- JULY JUNE MAY APRIL MARCH FEBRUARY 2004 2004 2004 2004 2004 2004 --------------------------------------------------------------------------- AVERAGE TOTAL DEPOSITS (IN MILLIONS)(1) $52,411 $48,407 $48,391 $48,115 $46,714 $46,330 PERIOD-END DEPOSIT ACCOUNT METRICS(1) ------------------------------------------------ PERSONAL DEPOSITS: Number of accounts (in thousands): Noninterest bearing checking 1,756 1,660 1,659 1,664 1,651 1,648 Interest bearing checking 820 750 744 739 720 718 Money market savings 511 496 482 470 457 455 Regular savings 834 807 824 837 825 824 --------------------------------------------------------------------------- TOTAL PERSONAL DEPOSIT ACCOUNTS 3,921 3,713 3,709 3,710 3,653 3,645 --------------------------------------------------------------------------- Average account size: Noninterest bearing checking $2,037 $2,002 $2,129 $2,171 $1,957 $2,057 Interest bearing checking 10,330 10,549 10,987 11,099 11,097 11,103 Money market savings 28,678 28,858 30,088 30,801 30,743 30,649 Regular savings 2,712 2,822 2,812 2,776 2,607 2,543 --------------------------------------------------------------------------- TOTAL AVERAGE ACCOUNT SIZE $7,385 $7,492 $7,695 $7,716 $7,506 $7,518 --------------------------------------------------------------------------- BUSINESS DEPOSITS: Number of accounts (in thousands) 362 333 331 329 321 318 Average account size $20,679 $19,324 $19,327 $19,148 $19,651 $19,038 TIME DEPOSITS: Number of accounts (in thousands) 936 805 803 809 782 789 Average account size $16,832 $16,451 $16,290 $16,160 $15,900 $15,917 CONSUMER LOAN PRODUCTION METRICS (# OF LOANS)(2) ------------------------------------------------ Installment loan originations: Home equity(3) 2,375 2,414 2,565 2,369 2,568 1,661 Other(4) 1,574 1,762 1,571 1,727 1,739 1,213 Home equity and other lines of credit 9,865 7,314 8,121 7,163 6,402 4,519 --------------------------------------------------------------------------- TOTAL CONSUMER LOAN ORIGINATIONS 13,814 11,490 12,257 11,259 10,709 7,393 --------------------------------------------------------------------------- BANK BRANCHES AND OTHER ------------------------------------------------ Total bank branches 1,207 1,142 1,146 1,143 1,107 1,107 ATMs 2,101 1,642 1,631 1,624 1,565 1,567 Online banking customers 944,853 900,074 880,017 869,162 850,784 831,194
(1) Restated to reflect the reassignment of certain deposits to the Wholesale Banking line of business and the reclassification of certain Wayne Bancorp deposit balances into the fourth quarter results of Consumer and Small Business Financial Services (2) Excludes Dealer Finance, Education Finance, and National City Card Services. Additionally, home equity loans generated by the National Home Equity division of the National Consumer Finance line of business are excluded from these metrics. (3) Represents closed-end home equity installment loans included in real estate residential portfolio loans on the consolidated balance sheet (4) Includes automobile, truck, boat, recreational vehicle, and other secured installment loans 6 Unaudited National City Corporation Mid-Quarter Update to Financial Supplement ASSET MANAGEMENT PERFORMANCE MEASURES ($ in millions)
----------------------------------------------------------------------------------------------------------------------------------- FEBRUARY JANUARY DECEMBER NOVEMBER OCTOBER SEPTEMBER AUGUST 2005 2005 2004 2004 2004 2004 2004 --------------------- ----------------------------------------------------------- ASSETS UNDER ADMINISTRATION --------------------------------------------- Managed assets: Value at beginning of period $ 60,868 $ 63,038 $ 61,262 $ 60,332 $ 60,322 $ 60,743 $ 60,984 Acquisition - - - - 257 - - Estimated change due to market impact 809 (619) 944 994 (1,825) 265 360 Other activity, net 399 (1,551) 832 (64) 1,578 (686) (601) --------------------- ----------------------------------------------------------- Value at end of period 62,076 60,868 63,038 61,262 60,332 60,322 60,743 --------------------- ----------------------------------------------------------- Non-managed assets: Value at beginning of period 45,377 45,739 46,508 48,005 47,327 47,191 46,635 Acquisition - - - - 137 - - Divestiture(1) - - - - - - - Estimated change due to market impact 630 (844) 866 820 1,231 176 121 Other activity, net 275 482 (1,635) (2,317) (690) (40) 435 --------------------- ----------------------------------------------------------- Value at end of period 46,282 45,377 45,739 46,508 48,005 47,327 47,191 --------------------- ----------------------------------------------------------- TOTAL ASSETS AT END OF PERIOD $ 108,358 $ 106,245 $ 108,777 $ 107,770 $ 108,337 $ 107,649 $ 107,934 ===================== =========================================================== PROPRIETARY MUTUAL FUND ASSETS (included above) $ 12,763 $ 12,794 $ 13,483 $ 13,450 $ 13,621 $ 13,446 $ 13,308 --------------------------------------------------------------------------------------------------------------------- JULY JUNE MAY APRIL MARCH FEBRUARY 2004 2004 2004 2004 2004 2004 -------------------------------------------------------------------- ASSETS UNDER ADMINISTRATION --------------------------------------------- Managed assets: Value at beginning of period $ 59,757 $ 59,741 $ 58,892 $ 59,730 $ 61,037 $ 60,353 Acquisition 3,218 - - 645 - - Estimated change due to market impact (1,327) 919 124 (785) (370) 597 Other activity, net (664) (903) 725 (698) (937) 87 -------------------------------------------------------------------- Value at end of period 60,984 59,757 59,741 58,892 59,730 61,037 -------------------------------------------------------------------- Non-managed assets: Value at beginning of period 41,096 51,689 52,320 52,219 52,564 51,815 Acquisition 6,710 - - 54 - - Divestiture(1) - (10,805) - - - - Estimated change due to market impact (747) 358 237 (513) (450) 660 Other activity, net (424) (146) (868) 560 105 89 -------------------------------------------------------------------- Value at end of period 46,635 41,096 51,689 52,320 52,219 52,564 -------------------------------------------------------------------- TOTAL ASSETS AT END OF PERIOD $ 107,619 $ 100,853 $ 111,430 $ 111,212 $ 111,949 $ 113,601 ==================================================================== PROPRIETARY MUTUAL FUND ASSETS (included above) $ 13,611 $ 14,131 $ 14,042 $ 14,031 $ 14,361 $ 14,892
(1) Relates to the sale of the Corporate Trust Bond Administration business on June 30, 2004 MORTGAGE BANKING STATISTICS ($ in millions)
----------------------------------------------------------------------------------------------------------------------------------- FEBRUARY JANUARY DECEMBER NOVEMBER OCTOBER SEPTEMBER AUGUST 2005 2005 2004 2004 2004 2004 2004 ---------------------- --------------------------------------------------------- PRODUCTION DATA -------------------------------------------------- APPLICATIONS:(1) National City Mortgage Co. (NCMC) $ 8,585 $ 7,469 $ 7,694 $ 7,984 $ 8,633 $ 9,094 $ 9,096 First Franklin 3,225 3,088 3,607 3,748 3,956 4,098 4,492 ---------------------- --------------------------------------------------------- TOTAL APPLICATIONS $ 11,810 $ 10,557 $ 11,301 $ 11,732 $ 12,589 $ 13,192 $ 13,588 ---------------------- --------------------------------------------------------- Percentage of NCMC applications represented by refinances 56% 56% 57% 55% 54% 52% 48% ORIGINATIONS: NCMC Retail $ 2,231 $ 2,149 $ 2,684 $ 2,729 $ 2,644 $ 2,577 $ 2,648 NCMC Wholesale 2,337 2,599 2,980 2,892 2,483 2,710 2,659 Less: portfolio loan originations (378) (353) (437) (457) (449) (448) (466) ---------------------- --------------------------------------------------------- Total NCMC originations for sale 4,190 4,395 5,227 5,164 4,678 4,839 4,841 Total First Franklin loan originations 1,685 1,585 2,234 2,347 2,372 2,335 2,666 Less: portfolio loan originations (152) (664) (772) (813) (1,009) (773) (1,013) ---------------------- --------------------------------------------------------- Total First Franklin originations for sale 1,533 921 1,462 1,534 1,363 1,562 1,653 ---------------------- --------------------------------------------------------- TOTAL LOANS ORIGINATED FOR SALE $ 5,723 $ 5,316 $ 6,689 $ 6,698 $ 6,041 $ 6,401 $ 6,494 ====================== ========================================================= Percentage of NCMC originations represented by refinances 58% 57% 55% 57% 52% 47% 43% Percentage of First Franklin originations represented by refinances 39% 35% 34% 37% 35% 31% 33% LOAN SALES -------------------------------------------------- NCMC loans sold servicing retained $ 4,302 $ 4,787 $ 4,341 $ 4,451 $ 3,812 $ 4,381 $ 4,161 NCMC loans sold servicing released 126 162 136 154 210 237 92 ---------------------- --------------------------------------------------------- Total NCMC loan sales 4,428 4,949 4,477 4,605 $ 4,022 $ 4,618 $ 4,253 First Franklin loans sold servicing retained - 401 970 949 - - - First Franklin loans sold servicing released - 1,141 330 382 1,565 1,678 2,625 ---------------------- --------------------------------------------------------- Total First Franklin loan sales - 1,542 1,300 1,331 1,565 1,678 2,625 ---------------------- --------------------------------------------------------- TOTAL MORTGAGE LOAN SALES $ 4,428 $ 6,491 $ 5,777 $ 5,936 $ 5,587 $ 6,296 $ 6,878 ====================== ========================================================= SERVICING DATA -------------------------------------------------- NCMC mortgage loans serviced for third parties $ 155,781 $ 154,142 $ 152,367 $ 152,365 $ 151,280 $ 150,329 $ 150,290 First Franklin mortgage loans serviced for third parties 2,677 2,697 1,913 949 - - - ---------------------- --------------------------------------------------------- TOTAL MORTGAGE LOANS SERVICED FOR THIRD PARTIES $ 158,458 $ 156,839 $ 154,280 $ 153,314 $ 151,280 $ 150,329 $ 150,290 ====================== ========================================================= ----------------------------------------------------------------------------------------------------------------------- JULY JUNE MAY APRIL MARCH FEBRUARY 2004 2004 2004 2004 2004 2004 --------------------------------------------------------------------- PRODUCTION DATA -------------------------------------------------- APPLICATIONS:(1) National City Mortgage Co. (NCMC) $ 8,221 $ 8,429 $ 7,845 $ 9,032 $ 13,982 $ 8,315 First Franklin 4,385 5,920 5,127 4,656 3,809 3,450 --------------------------------------------------------------------- TOTAL APPLICATIONS $ 12,606 $ 14,349 $ 12,972 $ 13,688 $ 17,791 $ 11,765 --------------------------------------------------------------------- Percentage of NCMC applications represented by refinances 42% 39% 41% 49% 66% 59% ORIGINATIONS: NCMC Retail $ 2,510 $ 2,871 $ 3,026 $ 3,941 $ 3,254 $ 2,367 NCMC Wholesale 2,396 2,551 2,616 3,723 3,341 2,391 Less: portfolio loan originations (467) (521) (456) (475) (414) (298) --------------------------------------------------------------------- Total NCMC originations for sale 4,439 4,901 5,186 7,189 6,181 4,460 Total First Franklin loan originations 2,742 3,556 2,786 2,440 2,463 1,716 Less: portfolio loan originations (1,049) (1,285) (880) (891) (684) (429) --------------------------------------------------------------------- Total First Franklin originations for sale 1,693 2,271 1,906 1,549 1,779 1,287 --------------------------------------------------------------------- TOTAL LOANS ORIGINATED FOR SALE $ 6,132 $ 7,172 $ 7,092 $ 8,738 $ 7,960 $ 5,747 ===================================================================== Percentage of NCMC originations represented by refinances 39% 42% 53% 67% 64% 63% Percentage of First Franklin originations represented by refinances 33% 34% 33% 34% 35% 34% LOAN SALES -------------------------------------------------- NCMC loans sold servicing retained $ 5,500 $ 5,483 $ 5,820 $ 5,432 $ 4,529 $ 4,656 NCMC loans sold servicing released 88 119 79 114 102 84 --------------------------------------------------------------------- Total NCMC loan sales $ 5,588 $ 5,602 $ 5,899 $ 5,546 $ 4,631 $ 4,740 First Franklin loans sold servicing retained - - - - - - First Franklin loans sold servicing released 1,263 2,317 1,358 1,212 2,505 129 --------------------------------------------------------------------- Total First Franklin loan sales 1,263 2,317 1,358 1,212 2,505 129 --------------------------------------------------------------------- TOTAL MORTGAGE LOAN SALES $ 6,851 $ 7,919 $ 7,257 $ 6,758 $ 7,136 $ 4,869 ===================================================================== SERVICING DATA -------------------------------------------------- NCMC mortgage loans serviced for third parties $ 149,293 $ 146,958 $ 144,859 $ 143,750 $ 144,598 $ 145,888 First Franklin mortgage loans serviced for third parties - - - - - - --------------------------------------------------------------------- TOTAL MORTGAGE LOANS SERVICED FOR THIRD PARTIES $ 149,293 $ 146,958 $ 144,859 $ 143,750 $ 144,598 $ 145,888 =====================================================================
(1) Includes loans originated for sale and to be held in portfolio 7 Unaudited National City Corporation Mid-Quarter Update to Financial Supplement FIRST FRANKLIN ORIGINATION AND PORTFOLIO STATISTICS(1) ($ in millions)
------------------------------------------------------------------------------------------------------------------------------------ FEBRUARY JANUARY DECEMBER NOVEMBER OCTOBER SEPTEMBER AUGUST 2005 2005 2004 2004 2004 2004 2004 ----------------------- ---------------------------------------------------------- PRODUCTION DATA -------------------------------------------------- ORIGINATIONS: Total First Franklin originations $ 1,685 $ 1,585 $ 2,234 $ 2,347 $ 2,372 $ 2,335 $ 2,666 Weighted-average note rate 7.04% 7.01% 6.95% 6.88% 6.91% 7.02% 7.08% Weighted-average credit score(2) 651 651 653 652 654 653 653 SALES: Total sales of First Franklin loans to third parties - $ 1,542 $ 1,300 $ 1,331 $ 1,565 $ 1,678 $ 2,625 Total production revenue (5) 34 24 24 29 37 66 PORTFOLIO STATISTICS(3) -------------------------------------------------- Period-end portfolio balance $ 18,706 $ 18,519 $ 18,260 $ 18,597 $ 18,273 $ 18,116 $ 17,729 Weighted-average note rate 6.75% 6.74% 6.76% 6.85% 6.85% 6.84% 6.83% Weighted-average loan size $ 126,423 $ 127,577 $ 126,680 $ 121,520 $ 122,564 $ 124,399 $ 126,552 Weighted-average credit score(2)(4) 648 648 648 649 648 650 650 First-lien weighted-average loan-to-value ratio(5) 77.76% 77.76% 77.78% 77.79% 77.78% 77.80% 77.82% ------------------------------------------------------------------------------------------------------------------------- JULY JUNE MAY APRIL MARCH FEBRUARY 2004 2004 2004 2004 2004 2004 ----------------------------------------------------------------------- PRODUCTION DATA -------------------------------------------------- ORIGINATIONS: Total First Franklin originations $ 2,742 $ 3,556 $ 2,786 $ 2,440 $ 2,463 $ 1,716 Weighted-average note rate 7.04% 6.74% 6.61% 6.61% 6.64% 6.71% Weighted-average credit score(2) 654 660 660 654 651 651 SALES: Total sales of First Franklin loans to third parties $ 1,263 $ 2,317 $ 1,358 $ 1,212 $ 2,505 $ 129 Total production revenue 25 81 44 40 85 12 PORTFOLIO STATISTICS(3) -------------------------------------------------- Period-end portfolio balance $ 17,369 $ 16,714 $ 16,436 $ 16,062 $ 15,627 $ 15,557 Weighted-average note rate 6.83% 6.84% 6.91% 6.98% 7.06% 7.13% Weighted-average loan size $ 128,843 $ 131,240 $ 129,969 $ 128,621 $ 126,960 $ 126,186 Weighted-average credit score(2)(4) 650 649 648 647 648 648 First-lien weighted-average loan-to-value ratio(5) 77.83% 77.85% 77.94% 77.86% 77.84% 77.85%
(1) First Franklin loans are nonconforming residential real estate loans originated by First Franklin Financial Corp., a wholly-owned subsidiary of National City Corporation and a division of the National Consumer Finance line of business. (2) Represents the Fair Isaac Corporation FICO(R) score, a benchmark credit rating system used by most financial companies and National City Corporation. National City is not affiliated with Fair Isaac Corporation and obtains FICO(R) scores from third-party credit bureaus. (3) These loans retained in the residential real estate portfolio. (4) Based upon most recent available FICO(R)score for borrowers. FICO(R)scores are updated quarterly. (5) Based upon period-end first-lien mortgage loan balance divided by the most recent obtained value of the underlying mortgaged property. 8