-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, CC9/kzqIFRrC/2PFK98wd2wynYFZPBXH1v44krlRsTX1G+XXkoCukA4JqO7DOUL3 7tMyUxPwtxckohPA0TTGeg== 0000009626-00-000021.txt : 20000418 0000009626-00-000021.hdr.sgml : 20000418 ACCESSION NUMBER: 0000009626-00-000021 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000331 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20000417 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BANK OF NEW YORK CO INC CENTRAL INDEX KEY: 0000009626 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 132614959 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-06152 FILM NUMBER: 602782 BUSINESS ADDRESS: STREET 1: ONE WALL ST 10TH FL CITY: NEW YORK STATE: NY ZIP: 10286 BUSINESS PHONE: 2124951784 MAIL ADDRESS: STREET 1: 100 CHURCH STREET 9TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10286 8-K 1 FIRST QUARTER 2000 EARNINGS 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8 - K CURRENT REPORT Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): April 17, 2000 THE BANK OF NEW YORK COMPANY, INC. ---------------------------------- (exact name of registrant as specified in its charter) NEW YORK -------- (State or other jurisdiction of incorporation) 001-06152 13-2614959 --------- ---------- (Commission file number) (I.R.S. employer identification number) One Wall Street, New York, NY 10286 ----------------------------- ----- (Address of principal executive offices) (Zip code) 212-495-1784 ------------ (Registrant's telephone number, including area code) 2 ITEM 5. Other Events ------------ First Quarter of 2000 Financial Results --------------------------------------- On April 17, 2000, The Bank of New York Company, Inc. issued a press release containing unaudited interim financial information and accompanying discussion for the first quarter of 2000. Exhibit 99 is a copy of such press release and is incorporated herein by reference. ITEM 7. Financial Statements, Pro Forma Financial Information and Exhibits ------------------------------------------------------------------ (c) Exhibit Description ------- ----------- 99 Unaudited interim financial information and accompanying discussion for the first quarter of 2000 contained in the press release dated April 17, 2000, of The Bank of New York Company, Inc. 3 SIGNATURE --------- Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Dated: April 17, 2000 THE BANK OF NEW YORK COMPANY, INC. (Registrant) By: /s/ Thomas J. Mastro - ------------------------- Name: Thomas J. Mastro Title: Comptroller 4 EXHIBIT INDEX ------------- Exhibit No. Description - ----------- ----------- 99 Unaudited interim financial information and accompanying discussion for the first quarter of 2000 contained in the press release dated April 17, 2000, of The Bank of New York Company, Inc. EX-99 2 1ST QUARTER 2000 EARNINGS 1 EXHIBIT 99 The Bank of New York Company, Inc. NEWS - ------------------------------------------------------------------------------ One Wall Street, New York, NY 10286 ----------------------------------- Contact: PUBLIC AND INVESTOR RELATIONS IMMEDIATELY - ----------- Media: Investors: - ----- --------- Frank H. Scarangella, SVP Richard P. Stanley, SVP (212) 635-1590 (212) 635-1854 Cary J. Giacalone, VP Gregory A. Burton, AVP (212) 635-1590 (212) 635-1578 THE BANK OF NEW YORK COMPANY, INC. REPORTS Record First Quarter Diluted E.P.S. of 46 Cents, up 12% Securities Servicing Fee Revenue Up 28% Record Return on Average Common Equity of 27.07% NEW YORK, N.Y., April 17, 2000 -- The Bank of New York Company, Inc. (NYSE: BK) reports record first quarter diluted earnings per share of 46 cents, up 12% from the 41 cents earned in the first quarter of 1999. Net income for the first quarter was a record $338 million, up 7% from the $316 million earned in the same period last year. The prior period included the results of BNY Financial Corporation ("BNYFC") which was divested in the third quarter of 1999. "Our Company's continued gains in global market share, and the increased pace of investment activities world wide resulted in all areas of securities servicing exceeding expectations. The strategy of offering an industry leading array of products across multiple markets, combined with favorable global market activity fueled strong revenue growth in securities servicing and fiduciary services, producing record results for the first quarter," said 2 Thomas A. Renyi, Chairman and CEO. In securities servicing, fee revenues increased to $372 million or 28% for the quarter, while foreign exchange and other trading increased to $76 million or 80%, with both benefiting from the surge in global trading volumes and new business wins. Private client services and asset management fees grew 21%, led by new business growth and continued strong investment performance, as well as the acquisition of Estabrook Capital Management, Inc. The Company's continued focus on fee based businesses resulted in noninterest income growing to 62% of total revenues in the first quarter, up from 59% in the first quarter a year ago. Return on average common equity for the first quarter of 2000 was a record 27.07% compared with 25.98% and 24.48% in the fourth and first quarters of 1999, respectively. Return on average assets for the first quarter of 2000 was 1.78% compared with 1.84% and 1.94% in the fourth and first quarters of 1999, respectively. Fees from the Company's securities servicing businesses reached $372 million for the first quarter compared with $291 million in the prior year. Significant new business and continued expansion in existing clients' portfolios resulted in assets under custody reaching $6.7 trillion for the quarter. Fee revenue was strong across all product lines with particular strength in global custody, ADR's, and global execution and clearing services. Private client services and asset management fees were $70 million for the quarter, up a strong 21% over last year, driven by strong performance in BNY Asset Management, combined with the positive impact of the Estabrook acquisition. For the first quarter of 2000, fees in global payment services were $66 million. Revenues from cash management were up 12% from last year's first quarter, driven by significant new deposit and disbursement service business with the Company's specialized industries customers. Revenues from funds transfer grew by 10%, the result of additional electronic payment business received from foreign banks and domestic clients in the on-line brokerage 3 industries. Fees in cash management and funds transfer were up only slightly compared with last year's first quarter due to customers' expanded use of compensating balances in lieu of fees in a rising rate environment. Trade finance fees were down from a year ago primarily due to the sale of BNYFC and reduced pricing in the Asian and Latin American markets evidencing greater economic stability in those regions. Foreign exchange and other trading revenues for the quarter increased 36% versus the fourth quarter and 80% versus the first quarter of last year to a record $76 million driven by continued cross selling to the Company's global custody clients and greater market volatility. Foreign exchange revenues from the Company's European based securities servicing operations were particularly strong, complemented by the recent Royal Bank of Scotland Trust Bank ("RBSTB") acquisition. Net interest income on a taxable equivalent basis for the first quarter increased to $460 million from $453 million in the fourth quarter of 1999. Tangible diluted earnings per share (earnings before the amortization of goodwill and intangibles) were 48 cents per share in the first quarter of 2000, up from 43 cents per share in the first quarter of 1999. On the same basis, tangible return on average common equity was 43.03% in the first quarter of 2000 compared with 37.28% in 1999; and tangible return on average assets was 1.93% in the first quarter of 2000 compared with 2.11% in 1999. Amortization of intangibles for the first quarter of 2000 was $28 million compared with $26 million in the first quarter of 1999. The Company's estimated Tier 1 capital and Total capital ratios were 7.39% and 11.50% at March 31, 2000 compared with 7.51% and 11.67% at December 31, 1999, and 7.84% and 11.86% at March 31, 1999. The leverage ratio was 6.66% at March 31, 2000 compared with 7.20% at December 31, 1999 and 7.69% one year ago. The Company's tangible common equity as a percent of total assets was 4.74% at March 31, 2000 compared with 4.79% at December 31, 1999 and 5.88% at March 31, 1999. The decline in the capital ratios reflects growth in the 4 Company's securities servicing businesses and the acquisition of RBSTB, which brought approximately $10 billion in highly liquid, short-term assets and liabilities. In the first quarter of 2000, the Company repurchased approximately 6 million shares under its common stock repurchase programs. NET INTEREST INCOME
1st 4th 1st Quarter Quarter Quarter ------- ------- ------- (In millions) 2000 1999 1999 ---- ---- ---- Net Interest Income $460 $453 $436 Net Interest Rate Spread 1.96% 2.07% 2.29% Net Yield on Interest Earning Assets 2.89 3.02 3.18
Net interest income on a taxable equivalent basis was $460 million in the first quarter of 2000 compared with $453 million in the fourth quarter of 1999 and $436 million in the first quarter of 1999. The net interest rate spread was 1.96% in the first quarter of 2000, compared with 2.07% in the fourth quarter of 1999 and 2.29% one year ago. The net yield on interest-earning assets was 2.89% compared with 3.02% in the fourth quarter of 1999 and 3.18% in last year's first quarter. The increase in net interest income and the decline in spread and yield from the fourth quarter was primarily caused by growth in highly liquid but lower yielding assets associated with the Company's securities servicing business. 5 NONINTEREST INCOME
1st 4th 1st Quarter Quarter Quarter ------- ------- ------- (In millions) 2000 1999 1999 ---- ---- ---- Servicing Fees Securities $372 $341 $291 Cash 66 65 69 ---- ---- ---- 438 406 360 Private Client Services and Asset Management Fees 70 65 58 Service Charges and Fees 90 88 85 Foreign Exchange and Other Trading Activities 76 56 42 Securities Gains 40 49 50 Other 23 22 30 ---- ---- ---- Total Noninterest Income $737 $686 $625 ==== ==== ====
Securities servicing fees grew 28% reaching $372 million compared with $291 million from a year ago reflecting strong internal growth and the acquisition of RBSTB. Fees from private client services and asset management were $70 million, up 21% from the first quarter of 1999. Securities gains were $40 million, which compares to $49 million in the fourth quarter of 1999 and $50 million a year ago. NONINTEREST EXPENSE AND INCOME TAXES Noninterest expense for the first quarter of 2000 was $602 million, up from $571 million in the fourth quarter and $509 million in 1999. The increase was principally due to acquisitions including RBSTB, which closed on October 31, 1999, as well as growth in the Company's securities servicing businesses, including higher spending on technology projects. The efficiency ratio for the first quarter of 2000 was 52.1% compared with 52.3% in the fourth quarter of 1999 and 50.3% for the first quarter of 1999. 6 The effective tax rates for the first quarter of 2000 and 1999 were 34.8% and 34.9%. NONPERFORMING ASSETS
Change 3/31/00 vs. (Dollars in millions) 3/31/00 12/31/99 12/31/99 -------- -------- -------- Loans: Other Commercial $ 27 $ 20 $ 7 Foreign 63 63 - Regional Commercial 29 30 (1) Loans Available for Sale 32 33 (1) ---- ---- ---- Total Loans 151 146 5 Other Real Estate 8 12 (4) ---- ---- ---- Total $159 $158 $ 1 ==== ==== ==== Nonperforming Assets Ratio 0.4% 0.4% Allowance/Nonperforming Loans 398.2 407.7 Allowance/Nonperforming Assets 378.1 376.9
Nonperforming assets totaled $159 million at March 31, 2000, compared with $158 million at December 31, 1999, an increase of $1 million. At March 31, 2000, remaining credit exposures of loans available for sale totaled $389 million with outstandings of $275 million compared with $538 million and $318 million at December 31, 1999, respectively. 7 CREDIT LOSS PROVISION AND NET CHARGE-OFFS
1st 4th 1st Quarter Quarter Quarter ------- ------- ------- (In millions) 2000 1999 1999 ---- ---- ---- Provision $ 20 $ 15 $ 15 ==== ==== ==== Net(Charge-offs)Recoveries: Commercial Real Estate $ - $ 1 $ (2) Other Commercial (13) (11) (7) Consumer (1) (1) (1) Foreign - (2) (9) Other (1) (1) (-) ----- ----- ----- Total $(15) $(14) $(19) ===== ===== ===== Other Real Estate Expenses $ 1 $ - $ -
The allowance for credit losses was $600 million, or 1.48% of loans at March 31, 2000 compared with $595 million, or 1.58% of loans at December 31, 1999 and $632 million, or 1.59% of loans at March 31, 1999. The ratio of the allowance to nonperforming assets was 378.1% at March 31, 2000 compared with 376.9% at December 31, 1999 and 284.3% at March 31, 1999. *************************** (Financial highlights and detailed financial statements are attached.) 8 THE BANK OF NEW YORK COMPANY, INC. Financial Highlights (Dollars in millions, except per share amounts) (Unaudited)
2000 1999 Change ---- ---- ------ For the Three Months Ended March 31: - ------------------------------------ Net Income $ 338 $ 316 6.8% Per Common Share: Basic $ 0.46 $ 0.41 12.2 Diluted 0.46 0.41 12.2 Cash Dividends Paid 0.16 0.14 14.3 Return on Average Common Shareholders' Equity 27.07% 24.48% Return on Average Assets 1.78 1.94 As of March 31: - ------------------ Assets $76,041 $64,917 17.1% Loans 40,657 39,751 2.3 Securities 6,955 5,960 16.7 Deposits - Domestic 27,812 26,121 6.5 - Foreign 27,624 18,722 47.5 Long-Term Debt 2,829 2,189 29.2 Minority Interest - Preferred Securities 1,500 1,500 - Preferred Shareholders' Equity 1 1 - Common Shareholders' Equity 5,223 5,305 (1.5) Common Shareholders' Equity Per Share 7.09 6.92 2.4 Market Value Per Share of Common Stock 41.56 35.94 15.6 Allowance for Credit Losses as a Percent of Loans 1.48% 1.59% Tier 1 Capital Ratio 7.39 7.84 Total Capital Ratio 11.50 11.86 Leverage Ratio 6.66 7.69 Tangible Common Equity Ratio 4.74 5.88
9 THE BANK OF NEW YORK COMPANY, INC. Consolidated Statements of Income (In millions, except per share amounts) (Unaudited)
For the three months ended March 31, 2000 1999 ---- ---- Interest Income - --------------- Loans $ 716 $ 661 Securities Taxable 80 64 Exempt from Federal Income Taxes 15 10 ------ ----- 95 74 Deposits in Banks 71 64 Federal Funds Sold and Securities Purchased Under Resale Agreements 49 53 Trading Assets 102 5 ------ ----- Total Interest Income 1,033 857 ------ ----- Interest Expense - ---------------- Deposits 472 317 Federal Funds Purchased and Securities Sold Under Repurchase Agreements 36 31 Other Borrowed Funds 29 48 Long-Term Debt 49 34 ------ ----- Total Interest Expense 586 430 ------ ----- Net Interest Income 447 427 - ------------------- Provision for Credit Losses 20 15 ------ ----- Net Interest Income After Provision for Credit Losses 427 412 ------ ----- Noninterest Income - ------------------ Servicing Fees Securities 372 291 Cash 66 69 ------ ----- 438 360 Private Client Services and Asset Management Fees 70 58 Service Charges and Fees 90 85 Securities Gains 40 50 Other 99 72 ------ ----- Total Noninterest Income 737 625 ------ ----- Noninterest Expense - ------------------- Salaries and Employee Benefits 359 312 Net Occupancy 45 41 Furniture and Equipment 26 23 Other 172 133 ------ ----- Total Noninterest Expense 602 509 ------ ----- Income Before Income Taxes 562 528 Income Taxes 196 184 Distribution on Trust Preferred Securities 28 28 ------ ----- Net Income $ 338 $ 316 - ---------- ====== ===== Net Income Available to Common Shareholders $ 338 $ 316 - ------------------------------------------- ====== ===== Per Common Share Data: - ---------------------- Basic Earnings $ 0.46 $0.41 Diluted Earnings 0.46 0.41 Cash Dividends Paid 0.16 0.14 Diluted Shares Outstanding 741 779
10 THE BANK OF NEW YORK COMPANY, INC. Consolidated Balance Sheets (Dollars in millions, except per share amounts) (Unaudited)
March 31, December 31, 2000 1999 ---- ---- Assets - ------ Cash and Due from Banks $ 3,873 $ 3,276 Interest-Bearing Deposits in Banks 6,225 6,850 Securities: Held-to-Maturity 875 871 Available-for-Sale 6,080 6,028 ------- ------- Total Securities 6,955 6,899 Trading Assets at Fair Value 8,770 8,715 Federal Funds Sold and Securities Purchased Under Resale Agreements 2,629 5,383 Loans (less allowance for credit losses of $600 in 2000 and $595 in 1999) 40,057 36,952 Premises and Equipment 894 893 Due from Customers on Acceptances 969 739 Accrued Interest Receivable 356 319 Other Assets 5,313 4,730 ------- ------- Total Assets $76,041 $74,756 ======= ======= Liabilities and Shareholders' Equity - ------------------------------------ Deposits Noninterest-Bearing (principally domestic offices) $13,113 $12,162 Interest-Bearing Domestic Offices 15,548 16,319 Foreign Offices 26,775 27,270 ------- ------- Total Deposits 55,436 55,751 Federal Funds Purchased and Securities Sold Under Repurchase Agreements 1,440 1,318 Other Borrowed Funds 4,710 3,825 Acceptances Outstanding 970 740 Accrued Taxes and Other Expenses 2,696 2,644 Accrued Interest Payable 137 131 Other Liabilities 1,099 893 Long-Term Debt 2,829 2,811 ------- ------- Total Liabilities 69,317 68,113 ------- ------- Company-Obligated Mandatory Redeemable Preferred Trust Securities of Subsidiary Trust Holding Solely Junior Subordinated Debentures 1,500 1,500 ------- ------- Shareholders' Equity Class A Preferred Stock - par value $2.00 per share, authorized 5,000,000 shares, outstanding 16,787 shares in 2000 and 16,787 shares in 1999 1 1 Common Stock-par value $7.50 per share, authorized 1,600,000,000 shares, issued 980,496,116 shares in 2000 and 977,961,165 shares in 1999 7,354 7,335 Additional Capital 355 315 Retained Earnings 2,841 2,620 Accumulated Other Comprehensive Income 31 30 ------- ------- 10,582 10,301 Less: Treasury Stock (241,961,139 shares in 2000 and 237,747,242 shares in 1999), at cost 5,348 5,148 Loan to ESOP (1,444,005 shares in 2000 and 1,444,005 in 1999), at cost 10 10 ------- ------- Total Shareholders' Equity 5,224 5,143 ------- ------- Total Liabilities and Shareholders' Equity $76,041 $74,756 ======= ======= - ---------------------------------------------------------------------------------------- Note: The balance sheet at December 31, 1999 has been derived from the audited financial statements at that date.
11 THE BANK OF NEW YORK COMPANY, INC. Average Balances and Rates on a Taxable Equivalent Basis (Preliminary) (Dollars in millions)
For the three months For the three months ended March 31, 2000 ended March 31, 1999 ------------------------------ ------------------------------ Average Average Average Average Balance Interest Rate Balance Interest Rate ------- -------- ------- ------- -------- ------- ASSETS - ------ Interest-Bearing Deposits in Banks (primarily foreign) $ 6,395 $ 71 4.47% $ 5,294 $ 64 4.90% Federal Funds Sold and Securities Purchased Under Resale Agreements 3,647 49 5.40 4,513 53 4.76 Loans Domestic Offices 20,113 361 7.22 19,817 362 7.40 Foreign Offices 20,156 355 7.09 19,504 299 6.22 ------- ----- ------- ----- Total Loans 40,269 716 7.15 39,321 661 6.82 ------- ----- ------- ----- Securities U.S. Government Obligations 2,774 42 6.08 2,592 37 5.72 U.S. Government Agency Obligations 826 14 6.62 857 13 6.33 Obligations of States and Political Subdivisions 592 12 8.01 626 12 7.70 Other Securities, including Trading Securities 9,614 142 5.93 2,335 26 4.45 ------- ----- ------- ----- Total Securities 13,806 210 6.09 6,410 88 5.53 ------- ----- ------- ----- Total Interest-Earning Assets 64,117 1,046 6.56% 55,538 866 6.32% ----- ----- Allowance for Credit Losses (609) (635) Cash and Due from Banks 3,283 3,075 Other Assets 9,747 8,034 ------- ------- TOTAL ASSETS $76,538 $66,012 ======= ======= LIABILITIES AND SHAREHOLDERS' EQUITY - ------------------------------------ Interest-Bearing Deposits Money Market Rate Accounts $ 5,522 65 4.75% $ 5,176 52 4.10% Savings 7,647 47 2.46 7,793 42 2.20 Certificates of Deposit $100,000 & Over 465 6 5.44 657 8 4.92 Other Time Deposits 2,204 26 4.73 2,255 25 4.41 Foreign Offices 27,691 328 4.75 18,596 190 4.13 ------- ----- ------- ----- Total Interest-Bearing Deposits 43,529 472 4.36 34,477 317 3.72 Federal Funds Purchased and Securities Sold Under Repurchase Agreements 2,792 36 5.25 2,989 31 4.23 Other Borrowed Funds 1,996 29 5.80 3,627 48 5.32 Long-Term Debt 2,823 49 6.84 2,126 34 6.45 ------- ----- ------- ----- Total Interest-Bearing Liabilities 51,140 586 4.60% 43,219 430 4.03% ----- ----- Noninterest-Bearing Deposits 11,291 10,424 Other Liabilities 7,587 5,682 Minority Interest-Preferred Securities 1,500 1,447 Preferred Stock 1 1 Common Shareholders' Equity 5,019 5,239 ------- ------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $76,538 $66,012 ======= ======= Net Interest Earnings and Interest Rate Spread $ 460 1.96% $ 436 2.29% ===== ==== ===== ==== Net Yield on Interest-Earning Assets 2.89% 3.18% ==== ====
-----END PRIVACY-ENHANCED MESSAGE-----