EX-12 16 a2071612zex-12.txt EXHIBIT-12 COMMUNITY FIRST BANKSHARES, INC. HISTORICAL CONSOLIDATED FINANCIAL DATA EXHIBIT 12
NINE MONTHS ENDED SEPTEMBER 30, ------------------------------------- 2001 2000 ------------ ------------ HISTORICAL OPERATING DATA: Interest income ....................................... $ 334,421 $ 358,577 Interest expense ...................................... 131,637 156,648 ------------ ------------ Net interest income ................................... 202,784 201,929 Provision for loan losses ............................. 14,221 11,777 ------------ ------------ Net interest income after provision for loan losses .............................................. 188,563 190,152 Noninterest income .................................... 57,643 56,615 Noninterest expense ................................... 175,742 164,647 ------------ ------------ Income from continuing operations before income taxes and extraordinary item ........................ 70,464 82,120 Provision for income taxes ............................ 24,063 27,445 ------------ ------------ Income from continuing operations before extraordinary item .................................. 46,401 54,675 Discontinued Operations: Income from discontinued operations, net of taxes .. Disposal of discontinued operations ................ 0 0 ------------ ------------ Income before extraordinary item and cummulative effect of accounting change ............ 46,401 54,675 Extraordinary item, net of taxes ...................... 0 0 ------------ ------------ Net income ............................................ 46,401 54,675 Dividends on preferred stock .......................... 0 0 ------------ ------------ Net income applicable to common equity ................ $ 46,401 $ 54,675 ============ ============ EARNINGS PER COMMON AND COMMON EQUIVALENT SHARE: Basic income per share from continuing operations before extraordinary item and cummulative effect of accounting change ....................... $ 1.13 $ 1.15 Discontinued operations ........................... 0.00 0.00 Extraordinary item (1) ............................ 0.00 0.00 ------------ ------------ Basic net income .................................. $ 1.13 $ 1.15 ------------ ------------ Diluted income per share from continuing operations before extraordinary item and cummulative effect of accounting change ....................... $ 1.11 $ 1.14 Discontinued operations ........................... 0.00 0.00 Extraordinary item (1) ............................ 0.00 0.00 ------------ ------------ Diluted net income ................................ $ 1.11 $ 1.14 ------------ ------------ Average common shares outstanding Basic ............................................. 41,135,096 47,579,372 Diluted ........................................... 41,660,439 47,924,245 HISTORICAL OPERATING RATIOS AND OTHER DATA: Return on average assets .............................. 1.05% 1.17% Return on average common shareholders' equity ......... 17.91% 19.60% Net interest margin ................................... 5.18% 4.92% Net charge-offs to average loans ...................... 0.41% 0.31% Ratio of earnings to fixed charges (2): Excluding interest on deposits ...................... 4.55 3.50 Including interest on deposits ...................... 1.54 1.52 HISTORICAL FINANCIAL CONDITION DATA: Assets ................................................ $5,731,308 $ 6,092,935 Loans ................................................. 3,808,267 3,717,311 Investment securities (3) ............................. 1,416,250 1,826,905 Deposits .............................................. 4,755,377 5,030,914 Long-term debt ........................................ 139,988 99,422 Company-obligated mandatorily redeemable preferred securities of CFB Capital I and II .................. 120,000 120,000 Preferred shareholders' equity ........................ 0 0 Common shareholders' equity ........................... 358,130 332,081 Book value per common share ........................... 8.89 7.71 Tangible book value per common share .................. 6.41 4.98 HISTORICAL FINANCIAL CONDITION RATIOS: Nonperforming assets to total loans and OREO .......... 0.66% 0.75% Allowance for loan losses to total loans .............. 1.44% 1.40% Allowance for loan losses to nonperforming loans ...... 248% 216% REGULATORY CAPITAL RATIOS: Tier 1 capital ...................................... 8.29% 8.34% Total capital ....................................... 10.81% 10.34% Leverage ratio ...................................... 6.28% 6.10% NET INCOME AND RATIOS EXCLUDING GOODWILL AND OTHER INTANGIBLE ASSETS AMORTIZATION AND BALANCES ("CASH") Income applicable to common equity .................... 51,685 60,178 Diluted earnings per common share ..................... $ 1.24 $ 1.26 Return on average assets .............................. 1.19% 1.32% Return on average common shareholders equity .......... 19.95% 21.57% YEAR ENDED DECEMBER 31, --------------------------------------------------------------------------- 2000 1999 1998 1997 1996 ------------ ------------ ------------ ------------ ------------ (Dollars in thousands, except per share data) HISTORICAL OPERATING DATA: Interest income ......................................$ 477,558 $ 465,206 $ 467,270 $ 342,789 $ 285,063 Interest expense ..................................... 210,281 185,818 194,787 140,488 114,088 ------------ ------------ ------------ ------------ ------------ Net interest income .................................. 267,277 279,388 272,483 202,301 170,975 Provision for loan losses ............................ 15,781 20,184 23,136 6,604 8,545 ------------ ------------ ------------ ------------ ------------ Net interest income after provision for loan losses ............................................. 251,496 259,204 249,347 195,697 162,430 Noninterest income ................................... 75,205 72,509 63,267 49,947 39,195 Noninterest expense .................................. 219,319 218,227 240,648 159,633 134,511 ------------ ------------ ------------ ------------ ------------ Income from continuing operations before income taxes and extraordinary item ....................... 107,382 113,486 71,966 86,011 67,114 Provision for income taxes ........................... 35,748 38,573 22,595 25,848 24,189 ------------ ------------ ------------ ------------ ------------ Income from continuing operations before extraordinary item ................................. 71,634 74,913 49,371 60,163 42,925 Discontinued Operations: Income from discontinued operations, net of taxes . 0 0 (2,232) 967 0 Disposal of discontinued operations ............... 0 0 (1,676) 0 0 ------------ ------------ ------------ ------------ ------------ Income before extraordinary item and cummulative effect of accounting change ........... 71,634 74,913 45,463 61,130 42,925 Extraordinary item, net of taxes ..................... 0 0 0 (265) 0 ------------ ------------ ------------ ------------ ------------ Net income ........................................... 71,634 74,913 45,463 60,865 42,925 Dividends on preferred stock ......................... 0 0 0 0 1,610 ------------ ------------ ------------ ------------ ------------ Net income applicable to common equity ...............$ 71,634 $ 74,913 $ 45,463 $ 60,865 $ 41,315 ============ ============ ============ ============ ============ EARNINGS PER COMMON AND COMMON EQUIVALENT SHARE: Basic income per share from continuing operations before extraordinary item and cummulative effect of accounting change ......................$ 1.55 $ 1.50 $ 0.98 $ 1.30 $ 0.98 Discontinued operations .......................... 0.00 0.00 (0.08) 0.02 0.00 Extraordinary item (1) ........................... 0.00 0.00 0.00 (0.01) 0.00 ------------ ------------ ------------ ------------ ------------ Basic net income .................................$ 1.55 $ 1.50 $ 0.90 $ 1.31 $ 0.98 ------------ ------------ ------------ ------------ ------------ Diluted income per share from continuing operations before extraordinary item and cummulative effect of accounting change ......................$ 1.54 $ 1.48 $ 0.96 $ 1.25 $ 0.94 Discontinued operations .......................... 0.00 0.00 (0.07) 0.02 0.00 Extraordinary item (1) ........................... 0.00 0.00 0.00 0.00 0.00 ------------ ------------ ------------ ------------ ------------ Diluted net income ...............................$ 1.54 $ 1.48 $ 0.89 $ 1.27 $ 0.94 ------------ ------------ ------------ ------------ ------------ Average common shares outstanding Basic ............................................ 46,219,120 50,061,972 50,272,551 46,416,814 42,374,295 Diluted .......................................... 46,578,750 50,670,559 51,114,703 47,831,402 45,724,109 HISTORICAL OPERATING RATIOS AND OTHER DATA: Return on average assets ............................. 1.16% 1.20% 0.75% 1.42% 1.23% Return on average common shareholders' equity ........ 19.90% 18.07% 11.03% 19.04% 16.42% Net interest margin .................................. 4.90% 5.06% 5.12% 5.35% 5.53% Net charge-offs to average loans ..................... 0.34% 0.66% 0.43% 0.24% 0.22% Ratio of earnings to fixed charges (2): Excluding interest on deposits ..................... 3.62 4.27 3.58 6.54 5.71 Including interest on deposits ..................... 1.51 1.61 1.37 1.61 1.59 HISTORICAL FINANCIAL CONDITION DATA: Assets ...............................................$ 6,089,729 $ 6,302,235 $ 6,239,772 $ 5,660,218 $ 3,789,855 Loans ................................................ 3,738,202 3,690,353 3,537,537 3,160,501 2,514,573 Investment securities (3) ............................ 1,787,732 2,011,765 2,097,443 1,799,561 839,069 Deposits ............................................. 5,019,891 4,909,863 5,101,065 4,341,065 3,139,803 Long-term debt ....................................... 123,957 75,622 93,524 124,612 54,870 Company-obligated mandatorily redeemable preferred securities of CFB Capital I and II ................. 120,000 120,000 120,000 120,000 0 Preferred shareholders' equity ....................... 0 0 0 0 22,988 Common shareholders' equity .......................... 345,431 407,269 424,656 405,039 276,802 Book value per common share .......................... 8.25 8.12 8.49 8.11 6.40 Tangible book value per common share ................. 5.50 5.60 5.83 6.15 5.49 HISTORICAL FINANCIAL CONDITION RATIOS: Nonperforming assets to total loans and OREO ......... 0.70% 0.88% 0.78% 0.65% 0.86% Allowance for loan losses to total loans ............. 1.40% 1.32% 1.47% 1.31% 1.25% Allowance for loan losses to nonperforming loans ..... 221% 188% 228% 271% 181% REGULATORY CAPITAL RATIOS: Tier 1 capital ..................................... 8.13% 10.01% 9.44% 11.54% 9.30% Total capital ...................................... 10.73% 12.45% 12.09% 14.89% 11.26% Leverage ratio ..................................... 5.94% 7.16% 6.47% 7.53% 6.92% NET INCOME AND RATIOS EXCLUDING GOODWILL AND OTHER INTANGIBLE ASSETS AMORTIZATION AND BALANCES ("CASH") Income applicable to common equity ................... 78,972 82,263 54,384 65,330 44,129 Diluted earnings per common share ....................$ 1.70 $ 1.62 $ 1.06 $ 1.37 $ 1.00 Return on average assets ............................. 1.30% 1.35% 0.92% 1.54% 1.32% Return on average common shareholders equity ......... 21.94% 19.84% 13.20% 20.45% 17.57%
Page 1 COMMUNITY FIRST BANKSHARES, INC. CALCULATION OF EARNINGS TO FIXED CHARGES
NINE MONTHS ENDED SEPTEMBER 30, ------------------------------------- 2001 2000 ---------------- ---------------- Income before taxes & extraordinary item and cumulative effect of accounting change $ 70,464 $ 82,120 Add: fixed charges 131,637 156,648 ---------------- ---------------- Earnings including interest exp-deposits (a) 202,101 238,768 Less: interest expense - deposits (111,795) (123,814) ---------------- ---------------- Earnings excluding interest exp-deposits (b) $ 90,306 $ 114,954 ================ ================ Fixed charges: Interest expense - deposits $ 111,795 $ 123,814 Interest expense - borrowings 19,842 32,834 Interest expense on cap leases 0 0 Dividends on preferred stock (gross) 0 0 ---------------- ---------------- Fixed charges incl interest exp-deposits (c) 131,637 156,648 Less: interest expense - deposits (111,795) (123,814) ---------------- ---------------- Fixed charges excl interest exp-deposits (d) $ 19,842 $ 32,834 ================ ================ Preferred dividends 0 0 Effective tax rate 34.15% 33.42% Preferred dividends - grossed up (1 - tax rate) 0 0 EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS: Excluding interest on deposits (b) / (d) 4.55 3.50 Including interest on deposits (a) / (c) 1.54 1.52 YEAR ENDED DECEMBER 31, --------------------------------------------------------------------------------- 2000 1999 1998 1997 1996 -------------- -------------- -------------- -------------- -------------- Income before taxes & extraordinary item and cumulative effect of accounting change Add: fixed charges $ 107,382 $ 113,486 $ 71,966 $86,011 $ 67,114 210,281 185,818 194,787 140,488 114,088 Earnings including interest exp-deposits -------------- -------------- -------------- -------------- -------------- Less: interest expense - deposits 317,663 299,304 266,753 226,499 181,202 (169,281) (151,138) (166,873) (124,964) (99,838) Earnings excluding interest exp-deposits -------------- -------------- -------------- --------------- ------------- $ 148,382 $ 148,166 $ 99,880 $101,535 $ 81,364 ============== ============== ============== =============== ============= Fixed charges: Interest expense - deposits Interest expense - borrowings $ 169,281 $ 151,138 $ 166,873 $124,964 $ 99,838 Interest expense on cap leases 41,000 34,680 27,914 15,524 14,250 Dividends on preferred stock (gross) 0 0 0 0 0 0 0 0 0 0 Fixed charges incl interest exp-deposits -------------- -------------- -------------- -------------- -------------- 210,281 185,818 194,787 140,488 114,088 Less: interest expense - deposits (169,281) (151,138) (166,873) (124,964) (99,838) Fixed charges excl interest exp-deposits -------------- -------------- -------------- -------------- -------------- $ 41,000 $ 34,680 $ 27,914 $ 15,524 $ 14,250 ============== ============== ============== ============== ============== Preferred dividends 0 0 0 0 1,610 Effective tax rate 33.29% 33.99% 31.40% 30.05% 36.04% Preferred dividends - grossed up 0 0 0 0 2,517 (1 - tax rate) EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS: Excluding interest on deposits (b) / (d) 3.62 4.27 3.58 6.54 5.71 Including interest on deposits (a) / (c) 1.51 1.61 1.37 1.61 1.59
Page 2 CALCULATION OF FULLY DILUTED EARNINGS WITH REGARD TO CONVERTIBLE DEBENTURES
NINE MONTHS ENDED SEPTEMBER 30, ------------------------------------- 2001 2000 ---------------- ---------------- Income before taxes 70,464 82,120 Interest expense on convertible debentures 0 0 ---------------- ---------------- Adjusted income before interest on conv debentures 70,464 82,120 Adjusted income tax provision 24,063 27,445 ---------------- ---------------- Adjusted net income 46,401 54,675 YEAR ENDED DECEMBER 31, ----------------------------------------------------------------------------------- 2000 1999 1998 1997 1996 --------------- -------------- -------------- --------------- ------------- Income before taxes 107,382 113,486 71,966 86,011 67,114 Interest expense on convertible debentures 0 0 0 0 86 --------------- -------------- -------------- --------------- ------------- Adjusted income before interest on conv debentures 107,382 113,486 71,966 86,011 67,200 Adjusted income tax provision 35,748 38,624 22,646 26,002 24,236 --------------- -------------- -------------- --------------- ------------- Adjusted net income 71,634 74,862 49,320 60,009 42,964
Page 3 GENERAL LEDGER BALANCES KEY DATA (000)
NINE MONTHS ENDED SEPTEMBER 30, ------------------------------------- 2001 2000 ---------------- ---------------- Average Assets: 5,899,946 6,219,618 Average Common Equity: 346,398 372,592 Average Loans: 3,778,399 3,704,736 Net Charge Offs - End of Period 11,569 8,672 Intangibles - End of Period 99,914 117,526 Non Accruals Loans - End of Period 21,887 23,828 Restructured Loans - End of Period 257 241 Non Performing Loans - End of Period 22,144 24,069 OREO - End of Period 2,885 3,656 Non Performing Assets - End of Period 25,029 27,725 Allowance for Loan Losses - End of Period 54,820 51,983 Common Shares Outstanding - End of Period 40,301,388 43,085,988 Tier 1 Capital - End of Period 357,107 367,634 Total Capital - End of Period 465,726 455,617 Tangible Tier 1 Capital - End of Period 357,107 367,634 Total Tangible Assets - End of Period 5,686,214 6,027,392 Total Risk Weighted Assets - End of Period 4,309,030 4,406,364 YEAR ENDED DECEMBER 31, ------------------------------------------------------------------------------------------ 2000 1999 1998 1997 1996 ---------------- --------------- --------------- ---------------- ---------------- Average Assets: 6,179,192 6,245,294 6,035,121 4,298,381 3,502,288 Average Common Equity: 360,002 414,644 412,110 319,637 251,589 Average Loans: 3,706,144 3,573,060 3,383,724 2,747,123 2,296,370 Net Charge Offs - End of Period 12,491 23,436 14,613 6,636 5,079 Intangibles - End of Period 114,971 126,378 133,273 97,563 39,470 Non Accruals Loans - End of Period 23,426 25,764 22,609 15,151 15,902 Restructured Loans - End of Period 224 284 162 140 1,425 Non Performing Loans - End of Period 23,650 26,048 22,771 15,291 17,327 OREO - End of Period 2,437 6,525 4,763 5,433 4,238 Non Performing Assets - End of Period 26,087 32,573 27,534 20,724 21,565 Allowance for Loan Losses - End of Period 52,168 48,878 51,860 41,387 31,354 Common Shares Outstanding - End of Period 41,866,752 50,135,932 49,992,949 49,971,594 43,236,891 Tier 1 Capital - End of Period 358,255 445,605 397,659 420,913 261,570 Total Capital - End of Period 473,117 554,483 509,519 543,021 316,540 Tangible Tier 1 Capital - End of Period 358,255 445,605 397,659 420,913 261,570 Total Tangible Assets - End of Period 6,026,926 6,224,735 6,158,359 5,604,042 3,781,739 Total Risk Weighted Assets - End of Period 4,408,524 4,452,587 4,213,215 3,647,594 2,811,159
Page 4 NET INCOME AND RATIOS EXCLUDING GOODWILL AND OTHER INTANGIBLE ASSETS AMORTIZATION AND BALANCES ("CASH")
NINE MONTHS ENDED SEPTEMBER 30, ------------------------------------- 2001 2000 ---------------- ---------------- ----------------------------------------------------- Average Balance Calculation ----------------------------------------------------- TOTAL AVERAGE ASSETS 5,899,946 6,219,618 LESS: AVERAGE INTANGIBLE ASSETS (107,563) (121,078) AVERAGE ASSETS: CASH EPS 5,792,383 6,098,540 AVERAGE SHAREHOLDERS EQUITY 346,398 372,592 ----------------------------------------------------- Income Applicable to common shareholders equity adjusted for intangilbes ----------------------------------------------------- COMMUNITY FIRST BANKSHARES Current Earnings (Primary) 46,401 54,675 Plus: Non taxable intangibles 1,969 1,968 Taxable intangibles 5,525 5,892 Tax effect of intangibles (2,210) (2,357) ---------------- ---------------- CEPS net income 51,685 60,178 COMMUNITY FIRST BANKSHARES Current Earnings (Fully Diluted)) 46,401 54,675 Plus: Non taxable intangibles 1,969 1,968 Taxable intangibles 5,525 5,892 Tax effect of intangibles (2,210) (2,357) ---------------- ---------------- CEPS net income 51,685 60,178 YEAR ENDED DECEMBER 31, ---------------------------------------------------------------------------------- 2000 1999 1998 1997 1996 -------------- -------------- -------------- -------------- -------------- ------------------------------------------------- Average Balance Calculation ------------------------------------------------- TOTAL AVERAGE ASSETS 6,179,192 6,245,294 6,035,121 4,298,381 3,502,288 LESS: AVERAGE INTANGIBLE ASSETS (119,932) (129,721) (135,056) (64,002) (65,800) AVERAGE ASSETS: CASH EPS 6,059,260 6,115,573 5,900,065 4,234,379 3,436,488 AVERAGE SHAREHOLDERS EQUITY 360,002 414,644 412,110 319,637 251,589 ------------------------------------------------- Income Applicable to common shareholders equity adjusted for intangilbes ------------------------------------------------- COMMUNITY FIRST BANKSHARES Current Earnings (Primary) 71,634 74,913 45,463 60,865 41,315 Plus: Non taxable intangibles 2,624 2,625 4,182 2,637 1,993 Taxable intangibles 7,857 7,875 7,898 3,047 1,369 Tax effect of intangibles (3,143) (3,150) (3,159) (1,219) (548) -------------- -------------- -------------- -------------- -------------- CEPS net income 78,972 82,263 54,384 65,330 44,129 COMMUNITY FIRST BANKSHARES Current Earnings (Fully Diluted)) 71,634 74,913 45,463 60,865 42,925 Plus: Non taxable intangibles 2,624 2,625 4,182 2,637 1,993 Taxable intangibles 7,857 7,875 7,898 3,047 1,369 Tax effect of intangibles (3,143) (3,150) (3,159) (1,219) (548) -------------- -------------- -------------- -------------- -------------- CEPS net income 78,972 82,263 54,384 65,330 45,739
Page 5 IMPACT OF CASH EARNINGS PER SHARE BASIS
NINE MONTHS ENDED SEPTEMBER 30, ------------------------------------- 2001 2000 ---------------- ---------------- Intangible Assets, End of Period 99,914 117,526 Intangible Assets, Period Average 107,563 121,078 FULLY DILUTED EARNINGS PER SHARE: Reported $1.11 $1.14 Cash earnings per share $1.24 $1.26 ---------------- ---------------- Effect of cash basis $0.13 $0.11 RETURN ON AVERAGE ASSETS: Reported 1.05% 1.17% Cash earnings per share 1.19% 1.32% ---------------- ---------------- Effect of cash basis 0.14% 0.14% RETURN ON AVERAGE SHAREHOLDERS' EQUITY Reported 17.91% 19.60% Cash earnings per share 19.95% 21.57% ---------------- ---------------- Effect of cash basis 2.04% 1.97% YEAR ENDED DECEMBER 31, ----------------------------------------------------------------------------------------- 2000 1999 1998 1997 1996 ---------------- --------------- --------------- ---------------- --------------- Intangible Assets, End of Period 114,971 126,378 133,273 97,563 39,470 Intangible Assets, Period Average 119,932 129,721 135,056 64,002 65,800 FULLY DILUTED EARNINGS PER SHARE: Reported $1.54 $1.48 $0.89 $1.27 $0.94 Cash earnings per share $1.70 $1.62 $1.06 $1.37 $1.00 ---------------- --------------- --------------- ---------------- --------------- Effect of cash basis $0.16 $0.15 $0.18 $0.10 $0.06 RETURN ON AVERAGE ASSETS: Reported 1.16% 1.20% 0.75% 1.42% 1.23% Cash earnings per share 1.30% 1.35% 0.92% 1.54% 1.32% ---------------- --------------- --------------- ---------------- --------------- Effect of cash basis 0.14% 0.15% 0.17% 0.13% 0.10% RETURN ON AVERAGE SHAREHOLDERS' EQUITY Reported 19.90% 18.07% 11.03% 19.04% 16.42% Cash earnings per share 21.94% 19.84% 13.20% 20.45% 17.57% ---------------- --------------- --------------- ---------------- --------------- Effect of cash basis 2.04% 1.77% 2.16% 1.41% 1.15%
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