EX-99.1 2 ex_991.htm EARNINGS RELEASE ex_991.htm

 
 
July 22, 2008                                                                                            FOR IMMEDIATE RELEASE
 
RAYMOND JAMES FINANCIAL, INC. ANNOUNCES
RECORD THIRD QUARTER RESULTS

ST. PETERSBURG, Fla. – Raymond James Financial, Inc. today reported a slight increase over the prior year’s quarterly net income to $69,938,000, or $0.59 per diluted share, for the third quarter ended June 30, 2008. In comparison, the firm earned $68,353,000, or $0.57 per diluted share, for 2007’s third quarter. Net revenues increased 8 percent to $742,024,000, while total revenues decreased 2 percent to $808,748,000.
Net income for the first nine months of fiscal 2008 was reported at $185,970,000, down 1 percent from 2007’s $187,463,000, while net revenues increased 10 percent to $2,119,538,000 from $1,918,279,000 the previous year. Diluted earnings per share were $1.56, down from $1.58 per diluted share for last year’s comparable period.
“In light of the continuing aftershocks emanating from the “earthquake” in the financial sector engendered by the subprime crisis, the record quarterly net revenues of $742 million and net income of $69.9 million, achieved in our 2008 third fiscal quarter, were gratifying. Unlike our peers, we managed to slightly exceed the earnings results of last year’s third quarter, which was previously our best quarter,” stated Chairman and CEO Thomas A. James.
“As contrasted to this year’s earlier quarters, pre-tax income wasn’t driven by the performance of our Private Client Group segment, which generated only flat commission and fee revenues compared to last year. Net revenues of $451 million only nominally exceeded those achieved in the third quarter of 2007. Pre-tax income of $36.6 million was 35 percent under that achieved last year, as net interest spreads declined by one-third and non-interest expenses grew by 5 percent. The Asset Management Group segment suffered from a 19 percent decline in pre-tax income to $13.4 million, as fee income mirrored that achieved last year due to a declining market, while non-interest expenses grew 6 percent. On the other side of the ledger, RJ Bank experienced excellent profit results, as we managed asset growth at a more sustainable level. Hence, net revenues grew 174 percent to $62.5 million, generating pre-tax income of $38 million, up 335 percent from the third quarter last year. Driven bydramatic increases in fixed income commissions, which more than offset Equity Capital Market’s decline in investment banking fees, the Capital Market segment’s net revenues increased 9 percent to $142 million, producing $27.9 million in pre-tax income, up 9 percent over last year’s comparable profits,” James continued.
“Although Raymond James and the financial services industry are susceptible to the vicissitudes of the economy and stock market in the short term, we believe Raymond James’ business model, over the long term, should generate excellent growth. In fact, our results prove the naysayers’ forecasts of reduced revenues and profits for industry participants to be ill-founded. There continues to be excellent demand for financial advisory services for retail investors. When market conditions improve, small- and middle-sized firms will require investment banking strategic advice as well as more equity funding. Institutional investors still value good research. Good asset management performance results, conjoined with lower beta risk, will stimulate vibrant growth in assets under management. Corporations and individuals still require reliable sources of debt capital, which RJ Bank can provide. In short, the demise of or substantial reduction in opportunity in the financial services industry long term is nonsense. Needless to say, the decline in real estate prices is continuing and risk of recession is still present, but I fully expect economic growth to return by the second half of 2009.”
The company will conduct its quarterly conference call Wednesday, July 23, at 8:15 a.m. EST. The telephone number is 877-777-1971. The call will also be available on demand on the company’s website, raymondjames.com, under “About Our Company,” “Investor Relations,” “Financial Reports,” “Quarterly Analyst Conference Call.” The subjects to be covered may also include forward-looking information. Questions may be posed to management by participants on the call, and in response the company may disclose additional material information.
Raymond James Financial (NYSE-RJF) is a Florida-based diversified holding company providing financial services to individuals, corporations and municipalities through its subsidiary companies. Its three wholly owned broker/dealers (Raymond James & Associates, Raymond James Financial Services and Raymond James Ltd.) and Raymond James Investment Services Limited, a majority-owned independent contractor subsidiary in the United Kingdom, have a total of more than 4,900 financial advisors serving approximately 1.8
million accounts in more than 2,200 locations throughout the United States, Canada and overseas. In addition, total client assets are approximately $212 billion, of which $35.8 billion are managed by the firm’s asset management subsidiaries.
To the extent that Raymond James makes or publishes forward-looking statements (regarding economic conditions, management expectations, strategic objectives, business prospects, anticipated expense savings, loan reserves/losses, financial results, anticipated results of litigation and regulatory proceedings, and other similar matters), a variety of factors, many of which are beyond Raymond James’ control, could cause actual results and experiences to differ materially from the expectations and objectives expressed in these statements. These factors are described in Raymond James’ 2007 annual report on Form 10-K, which is available on raymondjames.com and sec.gov.

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July 22, 2008                                                                                                            Raymond James Financial, Inc.
Page 2

Raymond James Financial, Inc.
Unaudited Report
For the third quarter ended June 30, 2008
(all data in thousands, except per share earnings)
                       
 
Third Quarter
  
Nine Months
 
2008
  
2007
  
% Change
  
2008
  
2007
  
% Change
Total revenues
$808,748
  
$822,753
  
(2%)
  
$2,445,073
  
$2,270,653
  
8% 
Net revenues
742,024
  
688,660
  
8% 
  
2,119,538
  
1,918,279
  
10% 
Net income
69,938
  
68,353
  
2% 
  
185,970
  
187,463
  
(1%)
                       
Net income per share - diluted
0.59
  
0.57
  
4% 
  
1.56
  
1.58
  
(1%)
                       
Weighted average common
                      
and common equivalent shares
                      
outstanding - diluted
118,272
  
119,140
      
119,212
  
118,425
    



 
Balance Sheet Data
           
 
June
March
December
September
June
 
2008
2008
2007
2007
2007
Total assets
$ 18.3 bil.
$ 18.1 bil.
$ 17.1 bil.
$ 16.3 bil.
$15.7 bil.
Shareholders' equity
$1,847 mil.
$1,772 mil.
$1,806 mil.
$1,758 mil.
$1,680mil.
Book value per share
$15.95
$15.40
$15.46
$15.07
$14.44

 
Management Data
 
Quarter Ended
 
June
March
December
September
June
 
2008
2008
2007
2007
2007
Total financial advisors:
          
United States
4,453
4,407
4,345
4,336
4,307
Canada
374
360
348
341
341
United Kingdom
86
87
82
81
76
           
# Lead managed/co-managed:
          
           
Corporate public
          
offerings in U.S.
18
10
19
9
22
Corporate public
          
offerings in Canada
7
5
8
6
14
           
Financial assets
          
under management
$35.8 bil.
$35.4 bil.
$37.3 bil.
$37.1 bil.
$ 36.1 bil.
           
Client Assets
$    212 bil.
$    209 bil.
$    217 bil.
$    215 bil.
$    207 bil.
Client Margin Balances
$1,675 mil.
$1,509 mil.
$1,525 mil.
$1,526 mil.
$1,441 mil.
           
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July 22, 2008                                                                                                 Raymond James Financial, Inc.
Page 3

 
Three Months Ended
 
June 30,
June 30,
  
March 31,
  
 
2008
2007
% Change
2008
% Change
 
(in 000’s)
Revenues:
          
Private Client Group
$ 472,843 
$ 499,475 
(5%)
$ 497,989 
(5%)
Capital Markets
147,047 
146,383 
0% 
124,202 
18% 
Asset Management
57,629 
58,094 
(1%)
59,016 
(2%)
RJBank
96,222 
79,221 
21% 
105,134 
(8%)
Emerging Markets
10,339 
14,676 
(30%)
9,988 
4% 
Stock Loan/Borrow
6,728 
19,573 
(66%)
8,411 
(20%)
Proprietary Capital
16,134 
6,715 
140% 
1,212 
1,231% 
Other
1,806 
(1,384)
230% 
1,182 
53% 
Total
$ 808,748 
$ 822,753 
(2%)
$ 807,134 
0% 
           

Income Before Provision for Income Taxes:
      
Private Client Group
$     36,654 
$  56,158 
(35%)
$     52,098 
(30%)
Capital Markets
27,882 
25,571 
9% 
7,477 
273% 
Asset Management
13,365 
16,480 
(19%)
14,170 
(6%)
RJBank
37,957 
8,729 
335% 
25,891 
47% 
Emerging Markets
(348)
(2,931)
88% 
276 
(226%)
Stock Loan/Borrow
1,893 
1,421 
33% 
1,291 
47% 
Proprietary Capital
5,794 
4,400 
32% 
(592) 
1,079% 
Other
(8,079)
70 
(11,641%)
(2,793) 
(189%)
Pre- Tax Income
$  115,118 
$ 109,898 
5% 
$     97,818 
18% 

 
Nine Months Ended
 
June 30,
June 30,
  
 
2008
2007
% Change
 
(in 000’s)
Revenues:
      
Private Client Group
$ 1,488,871 
$  1,421,824
5% 
Capital Markets
386,009 
373,508
3% 
Asset Management
179,826 
173,652
4% 
RJBank
303,945 
186,000
63% 
Emerging Markets
32,985 
43,126
(24%)
Stock Loan/Borrow
29,015 
49,284
(41%)
Proprietary Capital
18,475 
11,917 
55% 
Other
5,947 
11,342 
(48%)
Total
$ 2,445,073 
$ 2,270,653
8% 
       

Income Before Provision for Income Taxes:
  
Private Client Group
$    143,478 
$    161,527
(11%)
Capital Markets
41,722 
53,022
(21%)
Asset Management
45,050 
46,520
(3%)
RJBank
78,622 
24,962
215%
Emerging Markets
(1,618)
1,674
(197%)
Stock Loan/Borrow
4,827 
2,995
61% 
Proprietary Capital
4,563 
4,617
(1%)
Other
(12,951)
1,302
(1,095%)
Pre- Tax Income
$    303,693 
$   296,619
2% 
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July 22, 2008                                                                                                 Raymond James Financial, Inc.
Page 4

 
RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
Quarter-to-Date
(in thousands, except per share amounts)
 
Three Months Ended
 
June 30,
  
June 30,
  
%
  
March 31,
  
%
 
2008
  
2007
  
Change
  
2008
  
Change
Revenues:
                  
Securities commissions and fees
$ 483,225 
  
$ 462,047 
  
5% 
  
$ 481,497 
  
0% 
Investment banking
36,236 
  
51,818 
  
(30%)
  
27,232 
  
33% 
Investment advisory fees
51,492 
  
51,754 
  
(1%)
  
53,319 
  
(3%)
Interest
156,935 
  
191,691 
  
(18%)
  
191,314 
  
(18%)
Net trading profits
11,100 
  
7,050 
  
57% 
  
(6,946)
  
260% 
Financial service fees
31,774 
  
30,285 
  
5% 
  
32,763 
  
(3%)
Other
37,986 
  
28,108 
  
35% 
  
27,955 
  
36% 
                   
Total Revenues
808,748 
  
822,753 
  
(2%)
  
807,134 
  
0% 
Interest Expense
66,724 
  
134,093 
  
(50%)
  
115,447 
  
(42%)
Net Revenues
742,024 
  
688,660 
  
8% 
  
691,687 
  
7% 
                   
Non-Interest Expenses:
                  
Compensation, commissions
                  
and benefits
490,479 
  
462,459 
  
6% 
  
473,306 
  
4% 
Communications and information
                  
processing
30,899 
  
28,828 
  
7% 
  
31,230 
  
(1%)
Occupancy and equipment costs
26,102 
  
19,983 
  
31% 
  
24,101 
  
8% 
Clearance and floor brokerage
7,969 
  
8,180 
  
(3%)
  
7,093 
  
12% 
Business development
24,527 
  
22,416 
  
9% 
  
21,744 
  
13% 
Investment advisory fees
12,997 
  
12,111 
  
7% 
  
12,563 
  
3% 
Other
34,358 
  
29,156 
  
18% 
  
27,056 
  
27% 
Total Non-Interest Expenses
627,331 
  
583,133 
  
8% 
  
597,093 
  
5% 
                   
Minority Interest
(425)
  
(4,371)
  
90% 
  
(3,224)
  
87% 
                   
Income before provision
                  
for income taxes
115,118 
  
109,898 
  
5% 
  
97,818 
  
18% 
Provision for income taxes
45,180 
  
41,545 
  
9% 
  
38,028 
  
19% 
                   
Net Income
$  69,938 
  
$  68,353 
  
2% 
  
$  59,790 
  
17% 
Net Income per share-basic
$    0.60 
  
$    0.59 
  
2% 
  
$    0.51 
  
18% 
Net Income per share-diluted
$    0.59 
  
$    0.57 
  
4% 
  
$    0.50 
  
18% 
Weighted average common shares
                  
outstanding-basic
115,633 
  
116,135 
      
117,312 
    
Weighted average common
                  
and common equivalent
                  
shares outstanding-diluted
118,272 
  
119,140 
      
119,520 
    

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July 22, 2008                                                                                                 Raymond James Financial, Inc.
Page 5

 
RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
Year-to-Date
(in thousands, except per share amounts)
 
Nine Months Ended
 
June 30,
  
June 30,
  
%
 
2008
  
2007
  
Change
Revenues:
          
Securities commissions and fees
$ 1,437,327 
  
$ 1,281,204 
  
12% 
Investment banking
87,323 
  
131,682 
  
(34%)
Investment advisory fees
161,416 
  
152,487 
  
6% 
Interest
561,199 
  
514,727 
  
9% 
Net trading profits
5,256 
  
16,434 
  
(68%)
Financial service fees
97,512 
  
91,683 
  
6% 
Other
95,040 
  
82,436 
  
15% 
           
Total Revenues
2,445,073 
  
2,270,653 
  
8%  
Interest Expense
325,535 
  
352,374 
  
(8%)
Net Revenues
2,119,538 
  
1,918,279 
  
10%  
           
Non-Interest Expenses:
          
Compensation, commissions and  benefits
1,434,389 
  
1,299,862 
  
10% 
Communications and information processing
93,140 
  
83,080 
  
12%  
Occupancy and equipment costs
71,600 
  
59,849 
  
20% 
Clearance and floor brokerage
23,648 
  
22,662 
  
4% 
Business development
70,130 
  
66,252 
  
6% 
Investment advisory fees
38,490 
  
34,615 
  
11% 
Other
87,552 
  
60,686 
  
44% 
Total Non-Interest Expenses
1,818,949 
  
1,627,006 
  
12% 
           
Minority Interest
(3,104)
  
(5,346)
  
42% 
           
Income before provision for income taxes
303,693 
  
296,619 
  
2%  
Provision for income taxes
117,723 
  
109,156 
  
8%  
           
Net Income
$ 185,970 
  
$ 187,463 
  
(1%)
Net Income per share-basic
$    1.59 
  
$     1.63 
  
(2%)
Net Income per share-diluted
$    1.56 
  
$     1.58 
  
(1%)
Weighted average common shares
          
  outstanding-basic
116,573 
  
115,353 
    
Weighted average common and common
          
  equivalent shares outstanding-diluted
119,212 
  
118,425 
    
           
           
 


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July 22, 2008                                                                                                 Raymond James Financial, Inc.
Page 6

RAYMOND JAMES BANK
Supplemental Information

Raymond James Bank, FSB (RJBank) is a federally chartered savings bank, regulated by the Office of Thrift Supervision, which provides residential, consumer and commercial loans, as well as FDIC-insured deposit accounts, to clients of the Raymond James Financial, Inc. (RJF) broker-dealer subsidiaries and to the general public. RJBank also purchases residential whole loan packages to hold for investment and is active in bank participations and corporate loan syndications. RJBank operates from a single branch location adjacent to the Raymond James headquarters complex in St. Petersburg, Florida. RJBank’s deposits consist predominately of cash balances swept from the client investment accounts carried by Raymond James & Associates, Inc. in the Raymond James Bank Deposit Program (RJBDP). In all periods presented, RJBank was categorized as “well capitalized” under the bank regulatory framework. The most recent regulatory examination was as of March 31, 2008.

Corporate Loan Portfolio
RJBank's corporate loan portfolio is comprised of project finance real estate loans and commercial lines of credit and term loans. The majority of these loans are participations in Shared National Credits agented by approximately 30 different financial institutions with whom RJBank has a relationship. RJBank is sometimes involved in the initial syndication of the loan at inception and some of these loans have been purchased in secondary trading markets. Regardless of the source, all loans are independently underwritten to RJBank credit policies, are subject to loan committee approval, and credit quality is continually monitored by corporate lending staff. Approximately one-third of the corporate borrowers have a capital markets relationship with Raymond James. More than half of RJBank’s corporate borrowers are public companies and nearly two-thirds have annual EBITDA greater than $50 million. RJBank’s corporate loans are generally secured by all assets of the borrower and in some instances are secured by mortgages on specific real estate. In a limited number of transactions, loans in the portfolio are extended on an unsecured basis to very creditworthy borrowers. There are no subordinated loans or mezzanine financings in the corporate loan portfolio.  During the quarter, RJBank experienced some credit quality deterioration in a limited number of corporate credits associated with the Residential Acquisition and Development/Homebuilder industry. Three credits in this industry segment account for approximately $18.5 million in nonaccrual loans and two of those credits contributed $3.1 million in net charge-offs for the quarter. Total loan outstandings and commitments in this industry segment are $110 million and $130 million, respectively (outstandings are approximately 1.3% of RJBank total assets). Committed exposures to this industry segment have been reduced by more than 35% over the past year.

Residential Loan Portfolio
RJBank's residential loan portfolio consists primarily of first mortgage loans originated by RJBank via referrals from RJF Private Client Group financial advisors, and first mortgage loans purchased by RJBank originated by select large financial institutions. These purchased mortgage loans represent over 90% of RJBank’s residential portfolio. All of RJBank’s residential loans adhere to strict RJBank underwriting parameters pertaining to credit score and credit history, debt-to-income ratio of the borrower, loan-to-value (LTV), and combined loan-to-value (including second mortgage/ home equity loans). On average, three-fourths of the purchased residential loans are re-underwritten with new credit information and valuations, if warranted, by RJBank staff prior to purchase, with the remainder coming from long-standing sources and meeting extremely high credit criteria. Approximately 90% of the residential loans are fully documented loans to owner-occupant borrowers. More than three-fourths of RJBank's residential loan portfolio are adjustable rate mortgage (ARM) loans with interest-only payments based on a fixed rate for an initial period of the loan, typically 3-5 years, then become fully amortizing, subject to annual and lifetime interest rate caps. RJBank does not originate or purchase option ARM loans with negative amortization, reverse mortgages, or other types of exotic loan products. Loans with deeply discounted teaser rates are not originated or purchased. Adjustable mortgage rate resets in the next six months are expected to be to rates similar to or lower than the current loan rates. RJBank has a long history with these types of loans. Originated 15 or 30-year fixed rate mortgages are typically sold to correspondents and only retained on an exception basis. All of RJBank’s first mortgage loans are serviced by the seller or by third party professional firms.

Investments and Securities Purchased Under Agreement to Resell
RJBank’s investment portfolio consists of mortgage securities, Federal Home Loan Bank stock and a very small Community Reinvestment Act investment. About 40 percent of the portfolio is invested in relatively short average-life floating rate securities issued by Ginnie Mae, Fannie Mae or Freddie Mac. Other than approximately $7 million invested in securities rated less than “AAA,” the remainder of the mortgage-backed securities portfolio is comprised of “AAA” rated non-agency residential mortgage securities. These securities were purchased based on the underlying loan characteristics such as loan-to-value ratio, credit scores, property type, location and the current level of credit enhancement. Current characteristics of each security owned such as delinquency and foreclosure levels, credit enhancement, projected losses and coverage are reviewed monthly by management.

All mortgage securities are classified as Available for Sale and, although many securities are lower in market value due to ongoing market disruptions that resulted in an aggregate pretax unrealized loss of $58.8 million, none other than one security were considered to be other-than-temporarily impaired as of June 30, 2008. This is based on RJBank’s evaluation of the performance and underlying characteristics of the securities including the low levels of current and estimated credit losses relative to the level of credit enhancement, and RJBank’s consideration of its intent and ability to hold the securities for a period of time sufficient to allow for the anticipated recovery in the market value of the securities. RJBank determined that one residential mortgage-backed security in the portfolio was other-than-temporarily impaired and recognized a loss of $2.8 million in other income for the three months ended June 30, 2008.

RJBank manages its cash position primarily through overnight investments in repurchase agreements with the collateral held by third party custodians. Collateral for these repurchase agreements consists of agency-issued mortgage securities. Collateral backing these agreements is required to be a minimum of 102% of the principal amount.



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July 22, 2008                                                                                                            Raymond James Financial, Inc.
Page 7

$ in 000’s           UNAUDITED
Three Months
Three Months
Three Months
Three Months
Three Months
 
Ending
Ending
Ending
Ending
Ending
 
6/30/2008
3/31/2008
12/31/20071
9/30/20071
6/30/20071
Net Revenues
$62,452
$48,929
$36,074
$29,550
$22,780
Net Income
$24,036
$15,680
$9,495
$1,646
$5,471
Provision Expense to increase
          
Reserves for Loan Loss &
          
Unfunded Commitments
$12,732
$12,558
$12,016
$19,085
$6,247
Net Interest Margin
          
(% Earning Assets)
3.09%
2.57%
2.18%
1.97%
1.72%
Net Interest Spread
          
(IEA Yield - COF)
2.98%
2.38%
1.91%
1.68%
1.41%
Net Charge-offs in Quarter
$5,003
$150
$586
$906
$131
           
 
As of
As of
As of
As of
As of
 
6/30/2008
3/31/2008
   12/31/2007  1
   9/30/2007  1
   6/30/2007  1
Total Assets
$8,339,757
$8,299,105
$6,816,407
$6,311,983
$5,421,342
Total Loans, Net
$6,680,362
$6,175,866
$5,653,503
$4,664,209
$3,427,240
Total Deposits
$7,746,139
$7,712,295
$6,208,862
$5,585,259
$5,024,546
Raymond James Bank Deposit
          
Program Deposits (RJBDP)
$7,470,645
$7,426,870
$5,930,094
$5,313,429
$4,754,417
Available for Sale Securities,
          
at Market Value
$619,153
$654,845
$568,982
$569,911
$527,540
Change in Net Unrealized
          
Gain (Loss)  on Available for
          
Sale Securities, Before Tax
$2,912
($54,386)
($4,490)
($2,162)
($1,563)
Total Capital
$510,772
$484,899
$443,540
$366,927
$331,609
Corporate & Real Estate Loans2
$4,201,874
$3,974,254
$3,466,735
$2,769,517
$1,674,487
Retail/Residential Loans3
$2,556,070
$2,271,831
$2,266,024
$1,942,662
$1,783,306
Reserves for Loan Loss &
          
Unfunded Lending
          
Commitments
$85,373
$77,644
$65,236
$53,806
$35,626
Reserves for Loan Loss &
          
Unfunded Lending
          
Commitments (as % Loans)
1.26%
1.24%
1.14%
1.15%
1.03%
Total Nonaccrual Loans
$29,6194
$9,375
$4,015
$1,391
$5,193
Total Nonperforming Loans5
          
(as % Loans)
    0.54%
0.21%
0.11%
0.09%
0.15%
Number of 1-4 Family
          
Residential Loans
 6,353
5,810
5,860
5,394
5,051
Residential First Mortgage
          
Loan Weighted Average
          
LTV / FICO6
65% / 749
68% / 749
68% / 747
69% / 748
72% / 748
1-4 Family Mortgage
5.5% CA
4.9% CA
5.8% CA
5.5% CA
5.7% CA
Geographic Concentration
3.3% NY
3.1% FL
3.7% FL
3.9% FL
4.4% FL
(top 5 states, dollars
3.2% FL
2.4% NY
2.9% NY
1.9% NJ
2.1% VA
outstanding as a
2.3% NJ
2.3% NJ
2.9% NJ
1.9% NY
1.9% NJ
percent of total assets)
1.4% VA
1.3% VA
1.7% VA
1.8% VA
1.7% NY
Number of Corporate Borrowers
238
222
  201
  175
162
Corporate Loan Industry
 4.0% Consumer
3.4% Healthcare
3.8% Healthcare
3.6% Media
2.5% Retail Real
Concentration
  Products/Services
(excluding hospitals)
(excluding hospitals)
Communications
Estate
(top 5 categories,
 3.7% Healthcare
3.2% Telecom
3.3% Media
3.2% Industrial
2.4% Consumer
dollars outstanding
   (excluding hospitals)
  
Communications
Manufacturing
Products/Services
as a percent of total assets)
 3.5% Telecom
3.1% Consumer
3.2% Consumer
3.1% Consumer
2.0% Media
   
Products/Services
Products/Services
Products/Services
Communications
 
  3.4% Retail Real
3.1% Media
2.7% Retail Real
2.9% Gaming
2.0% Hospitals
 
   Estate
Communications
Estate
    
 
 3.2% Media
2.7% Industrial
2.5% Telecom
2.6% Retail Real
1.9% Gaming
 
  Communications
Manufacturing
  
Estate
  
 

 
1Data presented for all quarters utilizes the same format as used in the SEC filings. Some data presented previously was based on formats used by bank regulators. 2Commercial, Real Estate Construction, and Commercial Real Estate Loans, net of unearned income and deferred expenses. 3Residential Mortgage and Consumer Loans, net of unearned income and deferred expenses. 4 Non-Accrual Loans as of 6/30/08, consist of four corporate loans and 26 residential mortgage loans. 5Includes 90+ days Past Due plus Nonaccrual Loans. 6At origination. Small group of local loans representing less than 0.5% of residential portfolio excluded. Prior to 12/31/07 quarter, LTV/FICO averages presented are for Interest Only residential loans.

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