-----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, H9QpsZLrP5gt+jrfFoCSzC0AADbuAEsKA9KFwghK/Z5WGit8bCapBNDrAdZ5OFwb 4eWTNs55IhRxnNO6CV5Waw== 0000009626-00-000027.txt : 20000510 0000009626-00-000027.hdr.sgml : 20000510 ACCESSION NUMBER: 0000009626-00-000027 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20000331 FILED AS OF DATE: 20000509 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: 10-Q SEC ACT: SEC FILE NUMBER: 001-06152 FILM NUMBER: 622850 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 10-Q 1 FIRST QUARTER 2000 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2000 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 1-6152 THE BANK OF NEW YORK COMPANY, INC. (Exact name of registrant as specified in its charter) NEW YORK 13-2614959 (State or other jurisdiction of (I.R.S. employer incorporation or organization) identification number) One Wall Street, New York, New York 10286 (Address of principal executive offices) (Zip code) (212) 495-1784 (Registrant's telephone number, including area code) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months(or such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ] The number of shares outstanding of the issuer's Common Stock, $7.50 par value, was 737,523,395 shares as of April 30, 2000. THE BANK OF NEW YORK COMPANY, INC. FORM 10-Q TABLE OF CONTENTS PART 1. FINANCIAL INFORMATION - ------------------------------ Item 1. Financial Statements Consolidated Balance Sheets March 31, 2000 and December 31, 1999 3 Consolidated Statements of Income For the Three Months Ended March 31, 2000 and 1999 4 Consolidated Statement of Changes In Shareholders' Equity For the Three Months Ended March 31, 2000 5 Consolidated Statements of Cash Flows For the Three Months Ended March 31, 2000 and 1999 6 Notes to Consolidated Financial Statements 7 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 9 Item 3. Quantitative and Qualitative Disclosures about Market Risk. (See "Trading Activities") 12 PART 2. OTHER INFORMATION - -------------------------- Item 1. Legal Proceedings 21 Item 6. Exhibits and Reports on Form 8-K 22 SIGNATURE 23 PART 1. FINANCIAL INFORMATION Item 1. Financial Statements - ----------------------------- 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 (fair value of $850 in 2000 and $839 in 1999) 875 871 Available-for-Sale 6,080 6,028 ------- ------- Total Securities 6,955 6,899 Trading Assets at Fair Value 8,789 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 5,294 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. See accompanying Notes to Consolidated Financial Statements.
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 Preferred Trust 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 - ---------------------------------------------------------------------------------- See accompanying Notes to Consolidated Financial Statements
THE BANK OF NEW YORK COMPANY, INC. Consolidated Statement of Changes in Shareholders' Equity For the three months ended March 31, 2000 (In millions) (Unaudited) Preferred Stock Balance, January 1 $ 1 ------- Balance, March 31 1 ------- Common Stock Balance, January 1 7,335 Issuances in Connection with Employee Benefit Plans 19 ------- Balance, March 31 7,354 ------- Additional Capital Balance, January 1 315 Issuances in Connection with Employee Benefit Plans 40 ------- Balance, March 31 355 ------- Retained Earnings Balance, January 1 2,620 Net Income 338 Cash Dividends Common Stock (117) ------- Balance, March 31 2,841 ------- Accumulated Other Comprehensive Income Securities Valuation Allowance Balance, January 1 58 Change in Fair Value of Securities Available-for-Sale, Net of $10 Million in Taxes 19 Reclassification Adjustment, Net of ($11) Million in Taxes (20) ------- Balance, March 31 57 ------- Foreign Currency Items Balance, January 1 (28) Foreign Currency Translation Adjustment, Net of $1 Million in Taxes 2 ------- Balance, March 31 (26) ------- Less Treasury Stock Balance, January 1 5,148 Issued (46) Acquired 246 ------- Balance, March 31 5,348 ------- Less Loan to ESOP Balance, January 1 10 ------- Balance, March 31 10 ------- Total Shareholders' Equity, March 31 $ 5,224 ======= - ------------------------------------------------------------------------------------ Comprehensive Income for the three months ended March 31, 2000 and 1999 was $339 million and $258 million. See accompanying Notes to Consolidated Financial Statements.
THE BANK OF NEW YORK COMPANY, INC. Consolidated Statements of Cash Flows (In millions) (Unaudited)
For the three months Ended March 31, 2000 1999 ---- ---- Operating Activities Net Income $ 338 $ 316 Adjustments to Determine Net Cash (Used) Provided by Operating Activities: Provision for Losses on Loans and Other Real Estate 21 15 Depreciation and Amortization 61 49 Deferred Income Taxes 122 122 Securities Gains (40) (50) Change in Trading Activities (533) (6) Change in Accruals and Other, Net (290) (154) ------ ------ Net Cash (Used) Provided by Operating Activities (321) 292 ------ ------ Investing Activities Change in Interest-Bearing Deposits in Banks 413 (369) Purchases of Securities Held-to-Maturity (69) (89) Maturities of Securities Held-to-Maturity 57 162 Purchases of Securities Available-for-Sale (820) (752) Sales of Securities Available-for-Sale 521 403 Maturities of Securities Available-for-Sale 213 53 Net Principal Disbursed on Loans to Customers (3,299) (1,513) Sales of Loans and Other Real Estate 117 27 Change in Federal Funds Sold and Securities Purchased Under Resale Agreements 2,754 1,345 Purchases of Premises and Equipment (19) (34) Acquisitions, Net of Cash Acquired (93) (27) Proceeds from the Sale of Premises and Equipment - 20 Other, Net (91) 31 ------ ------ Net Cash (Used) by Investing Activities (316) (743) ------ ------ Financing Activities Change in Deposits (72) 406 Change in Federal Funds Purchased and Securities Sold Under Repurchase Agreements 122 1,618 Change in Other Borrowed Funds 1,347 (905) Proceeds from the Issuance of Preferred Trust Securities - 200 Proceeds from the Issuance of Long-Term Debt 15 100 Issuance of Common Stock 105 88 Treasury Stock Acquired (246) (382) Cash Dividends Paid (117) (106) ------ ------ Net Cash Provided by Financing Activities 1,154 1,019 ------ ------ Effect of Exchange Rate Changes on Cash 80 (21) ------ ------ Change in Cash and Due From Banks 597 547 Cash and Due from Banks at Beginning of Period 3,276 3,999 ------ ------ Cash and Due from Banks at End of Period $3,873 $4,546 ====== ====== - ---------------------------------------------------------------------------- Supplemental Disclosure of Cash Flow Information Cash Paid During the Period for: Interest $ 578 $ 458 Income Taxes 15 3 Noncash Investing Activity (Primarily Foreclosure of Real Estate) - 1 - ---------------------------------------------------------------------------- See accompanying Notes to Consolidated Financial Statements.
THE BANK OF NEW YORK COMPANY, INC. Notes to Consolidated Financial Statements 1. General ------- The accounting and reporting policies of The Bank of New York Company, Inc. (the Company), a bank holding company, and its subsidiaries, conform with generally accepted accounting principles and general practice within the banking industry. Such policies are consistent with those applied in the preparation of the Company's annual financial statements. The accompanying financial statements are unaudited. In the opinion of management, all adjustments necessary for a fair presentation of financial position, results of operations and cash flows for the interim periods have been made. Such adjustments are of a normal recurring nature. 2. Acquisitions and Dispositions ----------------------------- On January 4, 2000, the Company completed the acquisition of certain assets of Institutional Securities Trading LLC (IST). IST is a commission recapture and third-party services firm primarily serving Taft-Hartley organizations and other plan sponsors. On April 19, 2000, the Company announced that it has reached a definitive agreement to purchase certain assets of Global Execution Network Associates, Inc. (GENA). GENA is a U.S. based broker-dealer, specializing in quantitative and program equity trading in 52 markets globally. GENA's clients are both U.S. and U.K. institutional investors. The acquisition will significantly enhance the Company's non-dollar trading capabilities for the Company's institutional clients worldwide and furthers the Company's strategy to be a recognized leader in global institutional agency brokerage. In February 2000 the Company announced that it has signed a definitive agreement to acquire the correspondent clearing business of SG Cowen Securities Corporation. This transaction supports the Company's ongoing strategy of growth in the correspondent clearing business. In April 2000, the Company announced that it has signed a definitive agreement to acquire BHF Securities Corporation, a leading provider of domestic and international correspondent clearing services. On March 27, 2000, the Company acquired the corporate trust business of Harris Trust and Savings Bank located in Chicago, Illinois. The transaction involves the transfer of approximately 1,700 trustee and agency appointments for corporate and municipal issues of debt securities. Also during the quarter, the Company announced that it had signed a definitive agreement to acquire Sakura Trust Company's Corporate Trust business. The transaction is expected to close during the second quarter. On April 21, 2000, the Company completed the sale of its interest in Banco Credibanco S.A. to Unibanco-Uniao de Bancos Brasileiros S.A 3. Allowance for Credit Losses --------------------------- Transactions in the allowance for credit losses are summarized as follows: Three months ended March 31, (In millions) 2000 1999 ---- ---- Balance, Beginning of Period $595 $636 Charge-Offs (22) (22) Recoveries 7 3 ---- ---- Net Charge-Offs (15) (19) Provision 20 15 ---- ---- Balance, End of Period $600 $632 ==== ==== 4. Capital Transactions -------------------- As of April 30, 2000, the Company has approximately 7 million common shares remaining to repurchase under its share buyback programs. 5. New Accounting Pronouncements ----------------------------- Effective January 1, 2001, a new accounting standard will require the Company to record all derivatives on the balance sheet at fair value and apply new accounting practices for hedging activities. The Financial Accounting Standards Board ("FASB") continues to issue interpretative guidance related to this standard. In addition, the FASB is considering an amendment to the standard. As a result, the Company has not yet determined all of the effects of this new accounting standard. 6. Earnings Per Share ------------------ The following table illustrates the computations of basic and diluted earnings per share for the three months ended March 31, 2000 and 1999: Three Months Ended March 31, (In millions, except per share amounts) 2000 1999 ---- ---- Net Income $338 $316 Net Income Available to Common Shareholders $338 $316 Diluted Net Income $338 $316 ==== ==== Basic Weighted Average Shares Outstanding 732 766 Employee Stock Options 9 13 ---- ---- Diluted Weighted Average Shares Outstanding 741 779 ==== ==== Basic Earnings Per Share: $0.46 $0.41 Diluted Earnings Per Share: 0.46 0.41 7. Commitments and Contingent Liabilities -------------------------------------- In the ordinary course of business, there are various claims pending against the Company and its subsidiaries. In the opinion of management, liabilities arising from such claims, if any, would not have a material effect upon the Company's consolidated financial statements. Item 2. Management's Discussion and Analysis of Financial Condition and - ------------------------------------------------------------------------ Results of Operations - --------------------- The Company's actual results of future operations may differ from those set forth in certain forward-looking statements contained herein. Refer to further discussion under the heading "Forward Looking Statements". The Company's reported first quarter diluted earnings per share were a record 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. The 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. 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 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. CAPITAL 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 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. LIQUIDITY The Company maintains its liquidity through the management of its assets and liabilities, utilizing worldwide financial markets. The diversification of liabilities reflects the flexibility of the Company's funding sources under changing market conditions. Stable core deposits, including demand, retail time, and trust deposits from processing businesses, are generated through the Company's diversified network and managed with the use of trend studies and deposit pricing. The use of derivative products such as interest rate swaps and financial futures enhances liquidity through the issue of long-term liabilities with limited exposure to interest rate risk. Liquidity also results from the maintenance of a portfolio of assets, which can be easily reduced, and the monitoring of unfunded loan commitments, thereby reducing unanticipated funding requirements. 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. Interest income would have been increased by $3 million in both the first quarters of 2000 and 1999 if loans on nonaccrual status at March 31, 2000 and 1999 had been performing for the entire quarter. 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. TRADING ACTIVITIES The fair value and notional amounts of the Company's financial instruments held for trading purposes at March 31, 2000 are as follows: 1st Quarter 2000 March 31, 2000 Average ---------------------------- ------------------- (In millions) Fair Value Fair Value ------------------ ------------------- Notional Trading Account Amount Assets Liabilities Assets Liabilities - --------------- -------- ------ ----------- ------ ----------- Interest Rate Contracts: Futures and Forward Contracts $33,219 $ 1 $ - $ 25 $ - Swaps 99,649 1,263 1,001 1,318 959 Written Options 75,163 - 730 - 808 Purchased Options 39,666 69 - 71 - Foreign Exchange Contracts: Swaps 199 - - - - Written Options 28,245 - 52 - 60 Purchased Options 31,343 103 - 112 - Commitments to Purchase and Sell Foreign Exchange 65,821 909 925 836 832 Securities 6,444 29 6,668 25 ------ ------ ------ ------ Total Trading Account $8,789 $2,737 $9,030 $2,684 ====== ====== ====== ====== The Company manages trading risk through a system of position limits, a value at risk (VAR) methodology, based on a Monte Carlo simulation, stop loss advisory triggers, and other market sensitivity measures. Risk is monitored and reported to senior management by an independent unit on a daily basis. The VAR methodology captures, based on certain assumptions, the potential overnight pre-tax dollar loss from adverse changes in fair values of all trading positions. The calculation assumes a one day holding period for most instruments, utilizes a 99% confidence level, and incorporates the non-linear characteristics of options. As the VAR methodology does not evaluate risk attributable to extraordinary financial, economic or other occurrences, the risk assessment process includes a number of stress scenarios based upon the risk factors in the portfolio and management's assessment of market conditions. Additional stress scenarios based upon historic market events are also tested. The following table indicates the calculated VAR amounts for the trading portfolio for the periods indicated. During these periods, the daily trading loss did not exceed the calculated VAR amounts on any given day.
(In millions) 1st Quarter 2000 1st Quarter 1999 ----------------------------------- ----------------------------------- Market Risk Average Minimum Maximum 03/31/00 Average Minimum Maximum 03/31/99 - ----------- ------- ------- ------- -------- ------- ------- ------- -------- Interest Rate $4.3 $2.7 $6.1 $5.2 $4.9 $2.1 $10.9 $4.7 Foreign Exchange 2.0 1.3 3.8 2.0 1.6 0.8 4.0 1.2 Overall Portfolio 6.3 4.4 8.8 7.2 6.5 3.7 12.1 5.9
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. 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. At March 31, 2000, impaired loans (nonaccrual loans over $1 million) aggregated $96 million, of which $62 million exceeded their fair value by $30 million. Impaired loans at March 31, 1999, totaled $174 million, of which $145 million exceeded their fair value by $59 million. For the first quarters of 2000 and 1999, the average amounts of impaired loans were $96 million and $160 million. Interest income (cash received) on impaired loans was zero and $42 thousand for the first quarters of 2000 and 1999, respectively. CREDIT LOSS PROVISION AND NET CHARGE-OFFS The provision for credit losses was $20 million in the first quarter of 2000 compared with $15 million in the first quarter of 1999.
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. Based on an evaluation of individual credits, historical credit losses, and global economic factors, the Company has allocated its allowance for credit losses as follows: 3/31/00 12/31/99 3/31/99 ------- -------- ------- Real Estate 3% 4% 2% Domestic Commercial and Industrial 79 78 82 Foreign 12 12 13 Unallocated 6 6 3 --- --- --- 100% 100% 100% === === === Such an allocation is inherently judgmental, and the entire allowance for credit losses is available to absorb credit losses regardless of the nature of the loss. SEGMENT PROFITABILITY Segment Data The Company has an internal information system that produces performance data for its four segments along product and service lines. The Servicing and Fiduciary segment provides a broad array of fee based services. This segment includes the Company's securities servicing, global payment services, and private client services and asset management businesses. Securities servicing includes global custody, securities clearance, mutual funds, unit investment trust, securities lending, American Depositary Receipts, corporate trust, stock transfer and execution services. Global payment services products primarily relate to funds transfer, cash management and trade finance. Private client services and asset management provide traditional banking and trust services to affluent clients and asset management to institutional and private clients. The Corporate Banking segment provides lending services, such as term loans, lines of credit, asset based financings, and commercial mortgages, to domestic and international commercial enterprises. Through BNY Capital Markets, the Company provides syndicated loans, bond underwriting, private placements of corporate debt and equity securities, and merger, acquisition, and advisory services. The Retail Banking segment includes consumer lending, residential mortgage lending, and retail deposit services. The Company operates 352 branches in 22 counties in three states. The Financial Markets segment includes trading of foreign exchange and interest rate products, investing and leasing activities, and treasury services to other segments. The Company's segment data has been determined on an internal management basis of accounting, other than the generally accepted accounting principles used for consolidated financial reporting. These measurement principles ensure that reported results of the segments track their economic performance. Segment results are subject to restatement whenever improvements are made in the measurement principles or organizational changes are made. The measure of revenues and profit or loss by operating segment has been adjusted to present segment data on a taxable equivalent basis. The provision for credit losses allocated to each reportable segment is based on management's judgment as to average credit losses that will be incurred in the operations of the segment over a credit cycle of a period of years. Management's judgment includes the following factors among others: historical charge-off experience and the volume, composition and growth of the loan portfolio. This method is different from that required under generally accepted accounting principles as it anticipates future losses which are not yet probable and therefore not recognizable under generally accepted accounting principles. Assets and liabilities are match funded. Support and other indirect expenses are allocated to segments based on general guidelines. The segments contributed to the Company's profitability as follows:
In Millions Servicing and For the Quarter Ended Fiduciary Corporate Retail Financial Reconciling Consolidated March 31, 2000 Businesses Banking Banking Markets Items Total - --------------------- ---------- --------- ------- --------- ----------- ------------ Net Interest Income $ 164 $ 132 $ 128 $ 14 $ 9 $ 447 Provision for Credit Losses - 28 1 - (9) 20 Noninterest Income 573 75 24 63 2 737 Noninterest Expense 385 53 73 18 73 602 ------- ------- ------ ------- ------ ------- Income Before Taxes $ 352 $ 126 $ 78 $ 59 $ (53) $ 562 ======= ======= ====== ======= ======= ======= Average Assets $16,033 $31,223 $4,537 $23,096 $1,649 $76,538 ======= ======= ====== ======= ====== =======
In Millions Servicing and For the Quarter Ended Fiduciary Corporate Retail Financial Reconciling Consolidated March 31, 1999 Businesses Banking Banking Markets Items Total - --------------------- ---------- --------- ------- --------- ----------- ------------ Net Interest Income $ 106 $ 169 $ 114 $ 29 $ 9 $ 427 Provision for Credit Losses - 29 2 - (16) 15 Noninterest Income 447 86 21 49 22 625 Noninterest Expense 288 65 75 17 64 509 ------ ------- ------ ------- ------- ------- Income Before Taxes $ 265 $ 161 $ 58 $ 61 $ (17) $ 528 ====== ======= ====== ======= ======= ======= Average Assets $6,164 $32,556 $4,533 $21,188 $1,571 $66,012 ====== ======= ====== ======= ====== =======
Segment Highlights Servicing and Fiduciary Businesses - ---------------------------------- Net interest income in the Servicing and Fiduciary segment was $164 million compared with $106 million in 1999. In the first quarter of 2000, noninterest income was $573 million up from $447 million in 1999. 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. During the first quarter of 2000, the Company was appointed for 60% of all new depository receipt programs. 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. Assets under management were $62.8 billion while assets under administration were $32.4 billion at March 31, 2000. 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 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. Net charge-offs in the Servicing and Fiduciary Businesses segment were zero in the first quarters of 2000 and 1999. Noninterest expense for the first quarter of 2000 was $385 million compared with $288 million in 1999. The rise in noninterest expense is consistent with the increase in growth as well as the added salary and other expenses from acquisitions. Corporate Banking - ----------------- The Corporate Banking segment's net interest income was $132 million in the first quarter of 2000, down from last year's $169 million. The decline reflects the sale of BNYFC. The first quarter of 2000 provision for credit losses was $28 million compared with $29 million last year. Net charge-offs in the Corporate Banking segment were $14 million and $18 million in the first quarters of 2000 and 1999. Noninterest income was $75 million in the current year compared with $86 million last year. The decline is attributable to the sale of BNYFC partially offset by a 13% increase in revenues associated with capital markets activities and higher income from the Company's offshore banking subsidiaries. Noninterest expense declined to $53 million from $65 million reflecting the sale of BNYFC. Retail Banking - -------------- In the Retail Banking segment, net interest income in the first quarter of 2000 was $128 million as compared with $114 million in the first quarter of 1999. The increase reflects the higher value of demand deposits in an increasing rate environment. Noninterest income increased in this same period to $24 million from $21 million. Noninterest expense in the first quarter of 2000 was $73 million as compared with $75 million in the previous year's period. Net charge-offs were $1 million in the first quarters of 2000 and 1999. Financial Markets - ----------------- In the Financial Markets segment, net interest income for the quarter was $14 million compared with 1999's $29 million due to a decline in net interest income from leasing activities reflecting higher interest rates. Noninterest income was $63 million in the first quarter of 2000 up from $49 million in the first quarter of 1999 reflecting growth in interest rate derivatives and foreign exchange proprietary trading. Net charge-offs were zero in the first quarters of 2000 and 1999. Reconciling Items - ----------------- Reconciling items for net interest income primarily relate to the recording of interest income on a taxable equivalent basis, reallocation of capital and the funding of goodwill. Reconciling items for noninterest expense include $28 million and $26 million of amortization of intangibles in the first quarters of 2000 and 1999, Year 2000 expenses, and corporate overhead. The adjustment to the provision for credit losses reflects the difference between the aggregate of the credit provision over a credit cycle for the reportable segments and the Company's recorded provision. The reconciling items for average assets consist of goodwill and other intangible assets. YEAR 2000 READINESS DISCLOSURE The Company's data processing systems transitioned to the start of the Year 2000 without exhibiting any material problems. In addition to analysis, remediation, and testing of the Company's systems, the Company's compliance program focused on assessing the Year 2000 readiness of its global sub- custodians, major service providers, correspondents, business partners, and borrowers. The Company has not experienced any material problems due to the Year 2000 performance of any significant third party. The Company's current focus is to monitor continued performance, preparedness, and contingency planning. While contingency planning has been defined as part of the Year 2000 compliance program, owing to the Company's continued exposure to potential Y2K problems, all new measures have been incorporated into the Company's existing Business Continuity Plans. INTRODUCTION OF THE EURO In January 1999, eleven European countries adopted the euro as their common legal currency. In the transition period from adoption through December 31, 2001, commerce may be conducted in either the euro or the former national currencies. The Company has adapted its information technology systems and business practices to accommodate euro-denominated transactions. The introduction of the euro currency may result in increased price transparency in the euro-area countries as well as a loss of cross-currency trading in the former national currencies, and may ultimately have profound political and financial implications. Based on its knowledge at this time, the Company does not, anticipate that the introduction of the euro will have a material effect on the Company's financial condition or results of operations. FORWARD LOOKING STATEMENTS The information presented with respect to earnings growth, the Company's plans and objectives in moving toward fee based business, legal proceedings, and otherwise is forward looking information. Forward looking statements are the Company's current estimates or expectations of future events or future results. As such forward looking statements are subject to risks and uncertainties that could cause actual results to differ materially from projected results discussed in this Report. These include variations in management projections or market forecasts and the actions that management could take in response to these changes. The Company or its executive officers and directors on behalf of the Company, may from time to time make forward looking statements. When used in this report, any press release or oral statements, the words "estimate", "project", "anticipate", "expect", "intend", "believe", "plan", "goal", and words of like import are intended to identify forward looking statements in addition to statements specifically identified as forward looking statements. These statements, projections or future plans, could be affected by a number of factors that the Company is necessarily unable to predict with accuracy, including future changes in interest rates, general credit quality, economic activity, consumer behavior, government monetary policy, legislation and regulation, competition, credit, market and operating risk, and loan demand. In addition, the Company's future results of operations, discussions of future plans and other forward looking statements contained in Management's Discussion and Analysis and elsewhere in this Form 10-Q involve a number of risks and uncertainties, including risks relating to the uncertainties created by the enactment of the Gramm-Leach-Bliley Financial Modernization Act of 1999. As a result of variations in such factors, actual results may differ materially from any forward looking statements. Forward looking statements speak only as of the date they are made. The Company will not update forward looking statements to reflect factual assumptions, circumstances or events which have changed after a forward looking statement was made. Government Monetary Policies The Federal Reserve Board has the primary responsibility for monetary policy; accordingly, its actions have an important influence on the demand for credit and investments and the level of interest rates and thus on the earnings of the Company. Competition The businesses in which the Company operates are very competitive. Competition is provided by both unregulated and regulated financial services organizations, whose products and services span the local, national, and global markets in which the Company conducts operations. Savings banks, savings and loan associations, and credit unions actively compete for deposits, and money market funds and brokerage houses offer deposit-like services. These institutions, as well as consumer and commercial finance companies, national retail chains, factors, insurance companies and pension trusts, are important competitors for various types of loans. Issuers of commercial paper compete actively for funds and reduce demand for bank loans. For personal and corporate trust services and investment counseling services, insurance companies, investment counseling firms, and other business firms and individuals offer active competition. A wide variety of domestic and foreign companies compete for processing services. 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% ==== ====
PART 2. OTHER INFORMATION Item 1. Legal Proceedings - -------------------------- The Company is cooperating with investigations being conducted by federal and state law enforcement and bank regulatory authorities focusing on funds transfer activities in certain accounts at BNY, principally involving wire transfers from Russian and other sources in Eastern Europe, as well as certain other matters involving BNY and its affiliates. The funds transfer investigations center around accounts controlled by Peter Berlin, his wife, Lucy Edwards (until discharged in September 1999, an officer of BNY), and companies and persons associated with them. Berlin and Edwards have pleaded guilty to various federal criminal charges. On February 8, 2000, BNY entered into a written agreement with both the Federal Reserve Bank of New York and the New York State Banking Department, which imposed a number of reporting requirements and controls. Substantial portions of these were in place on the date the agreement was signed. Four purported shareholder derivative actions have been filed in connection with these Russian related matters - - two in the United States District Court for the Southern District of New York and two in the New York Supreme Court, New York County - - against certain directors and officers of the Company and BNY alleging that the defendants have breached their fiduciary duties of due care and loyalty by aggressively pursuing business with Russian banks and entities without implementing sufficient safeguards and failing to supervise properly those responsible for that business. The actions seek, on behalf of the Company and BNY, monetary damages from the defendants, corrective action and attorneys' fees. Additionally, on October 7, 1999, six alleged depositors of Joint Stock Bank Inkombank ("Inkombank"), a Russian Bank, filed a purported class action in the United States District Court for the Southern District of New York on behalf of all depositors of Inkombank who lost their deposits when that bank collapsed in 1998. The complaint, as subsequently amended, alleges that the Company and BNY and their senior officers knew about, and aided and abetted the looting of Inkombank by its principals. The amended complaint asserts causes of action for conversion and aiding and abetting conversion under New York law. In addition, the amended complaint states a claim under the Racketeer Influenced and Corrupt Organizations Act ("RICO"). It seeks an unspecified amount of damages believed to exceed $500 million, along with punitive damages of $500 million, interest, costs, attorneys' fees, expert fees, and other expenses. The amended compliant seeks a trebling of any RICO damages. The Company and BNY moved to dismiss the amended complaint, and the Court granted that motion with leave to replead. The Company and BNY believe that the allegations of the amended complaint are without merit and intend to defend the actions vigorously. The Company does not expect that any of the foregoing civil actions will have a material impact on the Company's consolidated financial statements. In the ordinary course of business, there are various legal claims pending against the Company and its subsidiaries. In the opinion of management, liabilities arising from such claims, if any, would not have a material effect on the Company's consolidated financial statements. Item 6. Exhibits and Reports on Form 8-K - ----------------------------------------- (a) The exhibits filed as part of this report are as follows: Exhibit 12 - Statement Re: Ratio of Earnings to Fixed Charges and Ratio of Earnings to Combined Fixed Charges and Distributions on Preferred Trust Securities for the Three Months Ended March 31, 2000 and 1999. Exhibit 27 - Statement Re: Financial Data Schedule containing selected financial data at March 31, 2000. (b) The Company filed the following reports on Form 8-K since December 31, 1999: On January 18, 2000, the Company filed a Form 8-K Current Report (Items 5 and 7), which report included unaudited interim financial information and accompanying discussion for the fourth quarter of 1999 contained in the Company's press release dated January 18, 2000. On April 17, 2000, the Company filed a Form 8-K Current Report (Items 5 and 7), which report included unaudited interim financial information and accompanying discussion for the first quarter of 2000 contained in the Company's press release dated April 17, 2000. 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. THE BANK OF NEW YORK COMPANY, INC. ---------------------------------- (Registrant) Date: May 9, 2000 By: \s\ Thomas J. Mastro --------------------------------- Name: Thomas J. Mastro Title: Comptroller EXHIBIT INDEX -------------- Exhibit Description - ------- ----------- 12 Ratio of Earnings to Fixed Charges and Ratio of Earnings to Combined Fixed Charges and Distributions on Preferred Trust Securities for the Three Months Ended March 31, 2000 and 1999. 27 Financial Data Schedule containing selected financial data at March 31, 2000. EX-12 2 EXHIBIT 12 EXHIBIT 12 THE BANK OF NEW YORK COMPANY, INC. Ratios of Earnings to Fixed Charges and Ratios of Earnings to Combined Fixed Charges, and Distributions on Preferred Trust Securities (Dollars in millions)
Three Months Ended March 31, 2000 1999 ---- ---- EARNINGS - -------- Income Before Income Taxes $ 562 $ 528 Fixed Charges, Excluding Interest on Deposits 123 122 ------ ------ Income Before Income Taxes and Fixed Charges Excluding Interest on Deposits 685 650 Interest on Deposits 472 317 ------ ------ Income Before Income Taxes and Fixed Charges, Including Interest on Deposits $1,157 $ 967 ====== ====== FIXED CHARGES - ------------- Interest Expense, Excluding Interest on Deposits $ 114 $ 113 One-Third Net Rental Expense* 9 9 ------ ------ Total Fixed Charges, Excluding Interest on Deposits 123 122 Interest on Deposits 472 317 ------ ------ Total Fixed Charges, Including Interest on Deposits $ 595 $ 439 ====== ====== DISTRIBUTION ON PREFERRED TRUST SECURITIES, PRE-TAX BASIS $ 28 $ 28 - ------------------------------- ====== ====== EARNINGS TO FIXED CHARGES RATIOS - -------------------------------- Excluding Interest on Deposits 5.57x 5.33x Including Interest on Deposits 1.94 2.20 EARNINGS TO COMBINED FIXED CHARGES AND DISTRIBUTION ON PREFERRED TRUST SECURITIES - ------------------------------------------- Excluding Interest on Deposits 4.54 4.33 Including Interest on Deposits 1.86 2.07 *The proportion deemed representative of the interest factor.
EX-27 3 FINANCIAL DATA SCHEDULE
9 This schedule contains summary financial information extracted from the Bank of New York Company, Inc.'s Form 10-Q for the period ended March 31, 2000 and is qualified entirely by reference to such Form 10-Q. 0000009626 THE BANK OF NEW YORK COMPANY, INC. 1,000,000 3-MOS DEC-31-2000 JAN-01-2000 MAR-31-2000 3,873 6,225 2,629 8,789 6,080 875 850 40,657 600 76,041 55,436 6,150 3,932 2,829 0 1 7,354 (2,131) 76,041 716 95 222 1,033 472 586 447 20 40 602 562 338 0 0 338 0.46 0.46 2.89 151 18 0 0 595 22 7 600 494 71 35
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