EX-99.2 3 dex992.htm SUMMARY OF FINANCIAL RESULTS Summary of Financial Results

Exhibit 99.2

 

THE COLONIAL BANCGROUP, INC.

Summary of Financial Results as Originally Reported and as Restated

(dollars in thousands, except per share amounts) (unaudited)

 

    Nine Months Ended September 30,
     Three Months Ended September 30,
  
    2005
     2004
     2005
     2004
  

INCOME STATEMENT:    

  

As

Previously
Reported

     As
Restated
    

As

Previously
Reported

     As
Restated
    

As

Previously
Reported

     As
Restated
    

As

Previously
Reported

     As
Restated
  

Net interest income

   $ 532,080     $ 522,659     $ 426,577     $ 413,303     $ 188,015     $ 185,266     $ 149,835     $ 145,442  

Provision for loan losses

     20,946       20,946       21,606       21,606       6,007       6,007       7,153       7,153  

Noninterest Income:

                                                                

Net cash settlement of interest rate swap derivatives

     —         8,812       —         12,624       —         2,514       —         4,183  

Change in fair value of interest rate swap derivatives

     —         (5,382 )     —         726       —         (7,072 )     —         7,899  

Other noninterest income

     128,244       128,244       104,007       103,007       43,884       43,884       33,060       33,060  
   
 
 
 
 
 
 
 

Total noninterest income

     128,244       131,674       104,007       116,357       43,884       39,326       33,060       45,142  

Noninterest expense

     382,111       382,774       314,855       316,424       133,749       133,964       106,541       107,079  
   
 
 
 
 
 
 
 

Income before income taxes

     257,267       250,613       194,123       191,630       92,143       84,621       69,201       76,352  

Applicable income taxes

     86,027       83,618       66,002       65,100       30,868       28,145       23,528       26,117  
   
 
 
 
 
 
 
 

Net income

   $ 171,240     $ 166,995     $ 128,121     $ 126,530     $ 61,275     $ 56,476     $ 45,673     $ 50,235  
   
 
 
 
 
 
 
 

Diluted earnings per share:

                                                                

Net income

   $ 1.15     $ 1.12     $ 0.98     $ 0.97     $ 0.39     $ 0.36     $ 0.34     $ 0.38  

Impact of accounting correction

           $ (0.03 )           $ —               $ (0.03 )           $ 0.04  

Impact of other immaterial adjustments

           $ —               $ (0.01 )           $ —               $ —    

Average diluted shares outstanding

     149,171       149,171       131,405       131,405       155,510       155,510       134,730       134,730  

Impact on Certain Ratios (1):

                                                                

Net Interest Margin:

                                                                

Net interest income (taxable equivalent)

   $ 533,209     $ 523,788     $ 427,994     $ 414,720     $ 188,372     $ 185,623     $ 150,266     $ 145,873  

Average earning assets

   $ 18,823,952     $ 18,823,952     $ 15,839,564     $ 15,839,564     $ 19,559,172     $ 19,559,172     $ 16,464,943     $ 16,464,943  

Net interest margin (taxable equivalent)

     3.78 %     3.72 %     3.61 %     3.49 %     3.83 %     3.78 %     3.64 %     3.53 %

Noninterest Income:

                                                                

Noninterest income

   $ 128,244     $ 131,674     $ 104,007     $ 116,357     $ 43,884     $ 39,326     $ 33,060     $ 45,142  

Total revenue

   $ 660,324     $ 654,333     $ 530,584     $ 529,660     $ 231,899     $ 224,592     $ 182,895     $ 190,584  

Noninterest income as a % of total revenue

     19.42 %     20.12 %     19.60 %     21.97 %     18.92 %     17.51 %     18.08 %     23.69 %
(1) These ratios changed primarily due to the reclassification of net cash settlement of the affected swap derivatives from net interest income (taxable equivalent) to noninterest income and for the changes in fair values of the affected swap derivatives which are reflected in noninterest income.

THE COLONIAL BANCGROUP, INC.

Summary of Financial Results as Originally Reported and as Restated

(dollars in thousands, except per share amounts) (unaudited)

 

    Six Months Ended June 30,
     Three Months Ended June 30,
  
    2005
     2004
     2005
     2004
  

INCOME STATEMENT:        

  

As

Previously
Reported

     As
Restated
    

As

Previously
Reported

     As
Restated
    

As

Previously
Reported

     As
Restated
    

As

Previously
Reported

     As
Restated
  

Net interest income

   $ 344,065     $ 337,393     $ 276,742     $ 267,861     $ 177,423     $ 174,435     $ 143,635     $ 139,345  

Provision for loan losses

     14,939       14,939       14,453       14,453       9,010       9,010       6,519       6,519  

Noninterest Income:

                                                                

Net cash settlement of interest rate swap derivatives

     —         6,298       —         8,441       —         2,802       —         4,259  

Change in fair value of interest rate swap derivatives

     —         1,690       —         (7,173 )     —         8,034       —         (14,946 )

Other noninterest income

     84,360       84,360       70,947       69,947       49,761       49,761       33,244       33,244  
   
 
 
 
 
 
 
 

Total noninterest income

     84,360       92,348       70,947       71,215       49,761       60,597       33,244       22,557  

Noninterest expense

     248,362       248,810       208,314       209,345       131,747       131,982       104,702       105,234  
   
 
 
 
 
 
 
 

Income before income taxes

     165,124       165,992       124,922       115,278       86,427       94,040       65,658       50,149  

Applicable income taxes

     55,159       55,473       42,474       38,983       28,953       31,709       22,324       16,710  
   
 
 
 
 
 
 
 

Net income

   $ 109,965     $ 110,519     $ 82,448     $ 76,295     $ 57,474     $ 62,331     $ 43,334     $ 33,439  
   
 
 
 
 
 
 
 

Diluted earnings per share:

                                                                

Net income

   $ 0.75     $ 0.75     $ 0.64     $ 0.59     $ 0.38     $ 0.41     $ 0.33     $ 0.25  

Impact of accounting correction

           $ —               $ (0.04 )           $ 0.03             $ (0.08 )

Impact of other immaterial adjustments

           $ —               $ (0.01 )           $ —               $ —    

Average diluted shares outstanding

     145,960       145,960       129,726       129,726       151,568       151,568       131,228       131,228  

Impact on Certain Ratios (1):

                                                                

Net Interest Margin:

                                                                

Net interest income (taxable equivalent)

   $ 344,836     $ 338,164     $ 277,729     $ 268,848     $ 177,794     $ 174,806     $ 144,115     $ 139,825  

Average earning assets

   $ 18,450,249     $ 18,450,249     $ 15,523,439     $ 15,523,439     $ 18,819,018     $ 18,819,018     $ 16,057,829     $ 16,057,829  

Net interest margin (taxable equivalent)

     3.75 %     3.68 %     3.59 %     3.47 %     3.78 %     3.72 %     3.60 %     3.49 %

Noninterest Income:

                                                                

Noninterest income

   $ 84,360     $ 92,348     $ 70,947     $ 71,215     $ 49,761     $ 60,597     $ 33,244     $ 22,557  

Total revenue

   $ 428,425     $ 429,741     $ 347,689     $ 339,076     $ 227,184     $ 235,032     $ 176,879     $ 161,902  

Noninterest income as a % of total revenue

     19.69 %     21.49 %     20.41 %     21.00 %     21.90 %     25.78 %     18.79 %     13.93 %
(1) These ratios changed primarily due to the reclassification of net cash settlement of the affected swap derivatives from net interest income (taxable equivalent) to noninterest income and for the changes in fair values of the affected swap derivatives which are reflected in noninterest income.

THE COLONIAL BANCGROUP, INC.

Summary of Financial Results as Originally Reported and as Restated

(dollars in thousands, except per share amounts) (unaudited)

 

     Three Months Ended March 31,
  
     2005
     2004
  

INCOME STATEMENT:    

   

As

Previously
Reported

     As Restated
    

As

Previously
Reported

     As Restated
  

Net interest income

    $ 166,642     $ 162,958     $ 133,107     $ 128,516  

Provision for loan losses

      5,929       5,929       7,934       7,934  

Noninterest Income:

                                 

Net cash settlement of interest rate swap derivatives

      —         3,496       —         4,182  

Change in fair value of interest rate swap derivatives

      —         (6,344 )     —         7,773  

Other noninterest income

      34,599       34,599       37,703       36,703  
    
 
 
 

Total noninterest income

      34,599       31,751       37,703       48,658  

Noninterest expense

      116,615       116,828       103,612       104,111  
    
 
 
 

Income before income taxes

      78,697       71,952       59,264       65,129  

Applicable income taxes

      26,206       23,764       20,150       22,273  
    
 
 
 

Net income

    $ 52,491     $ 48,188     $ 39,114     $ 42,856  
    
 
 
 

Diluted earnings per share:

                                 

Net income

    $ 0.37     $ 0.34     $ 0.31     $ 0.34  

Impact of accounting correction

            $ (0.03 )           $ 0.04  

Impact of other immaterial adjustments

            $ —               $ (0.01 )

Average diluted shares outstanding

      140,280       140,280       128,029       128,029  

Impact on Certain Ratios (1):

                                 

Net Interest Margin:

                                 

Net interest income (taxable equivalent)

    $ 167,042     $ 163,358     $ 133,612     $ 129,021  

Average earning assets

    $ 18,077,383     $ 18,077,383     $ 14,989,049     $ 14,989,049  

Net interest margin (taxable equivalent)

      3.72 %     3.64 %     3.58 %     3.45 %

Noninterest Income:

                                 

Noninterest income

    $ 34,599     $ 31,751     $ 37,703     $ 48,658  

Total revenue

    $ 201,241     $ 194,709     $ 170,810     $ 177,174  

Noninterest income as a % of total revenue

      17.19 %     16.31 %     22.07 %     27.46 %
(1) These ratios changed primarily due to the reclassification of net cash settlement of the affected swap derivatives from net interest income (taxable equivalent) to noninterest income and for the changes in fair values of the affected swap derivatives which are reflected in noninterest income.

THE COLONIAL BANCGROUP, INC.

Summary of Financial Results as Originally Reported and as Restated

(in thousands) (unaudited)

 

     September 30, 2005
    June 30, 2005
    March 31, 2005

BALANCE SHEET:        

   

As

Previously
Reported

    As Restated
   

As

Previously
Reported

    As Restated
   

As

Previously
Reported (1)

    As Restated

Accrued interest and other assets

    $ 270,251    $ 272,104    $ 278,242    $ 276,609    $ 261,669    $ 262,978

Total assets

      21,114,927      21,116,780      20,984,308      20,982,675      20,001,209      20,002,518

Time deposits

      6,317,252      6,321,283      5,260,074      5,261,714      4,713,230      4,716,950

Total deposits

      15,265,794      15,269,825      14,146,735      14,148,375      12,980,143      12,983,863

Junior subordinated debt

      314,322      307,477      320,030      307,506      308,952      302,382

Accrued expenses and other liabilities

      94,218      98,454      83,258      87,279      99,675      98,111

Total liabilities

      19,212,503      19,213,925      19,064,675      19,057,812      18,376,012      18,376,948

Retained Earnings

      830,092      830,523      792,313      797,543      757,061      757,434

Total shareholders’ equity

    $ 1,902,424    $ 1,902,855    $ 1,919,633    $ 1,924,863    $ 1,625,197    $ 1,625,570
(1) Certain reclassifications were made to previously reported balances in order to be consistent with current presentation.

THE COLONIAL BANCGROUP, INC.

Summary of Financial Results as Originally Reported and as Restated

(dollars in thousands, except per share amounts) (unaudited)

 

     Years Ended December 31,
  
     2004
     2003
     2002
  

INCOME STATEMENT:    

   

As

Previously
Reported

     As Restated
    

As

Previously
Reported

     As Restated
    

As

Previously
Reported

     As Restated
  

Net interest income

    $ 584,516     $ 567,248     $ 506,643     $ 495,148     $ 461,170     $ 455,209  

Provision for loan losses

      26,994       26,994       37,378       37,378       35,980       35,980  

Noninterest Income:

                                                 

Net cash settlement of interest rate swap derivatives

      —         16,567       —         11,470       —         5,961  

Change in fair value of interest rate swap derivatives

      —         (393 )     —         (6,865 )     —         18,885  

Other noninterest income

      138,027       137,027       133,022       134,022       106,923       106,923  
    
 
 
 
 
 

Total noninterest income

      138,027       153,201       133,022       138,627       106,923       131,769  

Noninterest expense

      429,870       431,649       375,124       376,001       317,370       318,287  
    
 
 
 
 
 

Income from continuing operations before income taxes

      265,679       261,806       227,163       220,396       214,743       232,711  

Applicable income taxes

      90,331       88,929       77,236       74,785       73,872       80,377  

Loss from discontinued operations, net of income taxes

      —         —         —         —         (846 )     (846 )
    
 
 
 
 
 

Net income

    $ 175,348     $ 172,877     $ 149,927     $ 145,611     $ 140,025     $ 151,488  
    
 
 
 
 
 

Diluted earnings per share (net income):

                                                 

Net income

    $ 1.33     $ 1.31     $ 1.20     $ 1.16     $ 1.16     $ 1.26  

Impact of accounting correction

            $ (0.01 )           $ (0.04 )           $ 0.10  

Impact of other immaterial adjustments

            $ (0.01 )           $ —               $ —    

Average diluted shares outstanding

      132,315       132,315       125,289       125,289       120,648       120,648  

Impact on Certain Ratios (1):

                                                 

Net Interest Margin:

                                                 

Net interest income (taxable equivalent)

    $ 586,326     $ 569,058     $ 508,935     $ 497,440     $ 464,078     $ 458,117  

Average earning assets

    $ 16,173,539     $ 16,173,539     $ 14,736,974     $ 14,736,974     $ 12,909,926     $ 12,909,926  

Net interest margin (taxable equivalent)

      3.63 %     3.52 %     3.45 %     3.38 %     3.59 %     3.55 %

Noninterest Income:

                                                 

Noninterest income

    $ 138,027     $ 153,201     $ 133,022     $ 138,627     $ 106,923     $ 131,769  

Total revenue

    $ 722,543     $ 720,449     $ 639,665     $ 633,775     $ 568,093     $ 586,978  

Noninterest income as a % of total revenue

      19.10 %     21.26 %     20.80 %     21.87 %     18.82 %     22.45 %
(1) These ratios changed primarily due to the reclassification of net cash settlement of the affected swap derivatives from net interest income (taxable equivalent) to noninterest income and for the changes in fair values of the affected swap derivatives which are reflected in noninterest income.

THE COLONIAL BANCGROUP, INC.

Summary of Financial Results as Originally Reported and as Restated

(in thousands) (unaudited)

 

     December 31, 2004
    December 31, 2003

BALANCE SHEET:    

   

As

Previously
Reported (1)

    As Restated
   

As

Previously
Reported (1)

    As Restated

Accrued interest and other assets

    $ 261,743    $ 261,203    $ 259,169    $ 253,846

Total assets

      18,897,150      18,896,610      16,273,302      16,267,979

Time deposits

      4,315,645      4,317,657      3,900,944      3,900,999

Total deposits

      11,861,683      11,863,695      9,918,379      9,918,434

Junior subordinated debt

      313,213      302,412      299,917      286,598

Accrued expenses and other liabilities

      111,159      114,732      68,865      69,659

Total liabilities

      17,503,535      17,498,319      15,094,997      15,082,527

Retained Earnings

      725,039      729,715      625,326      632,473

Total shareholders’ equity

    $ 1,393,615    $ 1,398,291    $ 1,178,305    $ 1,185,452
(1) Certain reclassifications were made to previously reported balances in order to be consistent with current presentation.