EX-99 2 0002.txt 3RD 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 Third Quarter Diluted E.P.S. of 49 Cents Up 17% Securities Servicing Fee Revenue Up 37% Return on Average Common Equity of 25.75% NEW YORK, N.Y., October 16, 2000 -- The Bank of New York Company, Inc. (NYSE: BK) reports third quarter diluted earnings per share of 49 cents, up 17% from the 42 cents earned on a normalized basis in the third quarter of 1999. Net income for the third quarter was $363 million, up 16% from the $313 million earned on a normalized basis in the same period last year. Diluted earnings per share were $1.42 for the first nine months of 2000, up 16% from the $1.22 earned on a normalized basis last year. Net income for the first nine months was $1,057 million, an increase of 15% over last year's $916 million earned on a normalized basis. (See note 1) "Our continuing emphasis on offering diversified services to virtually all segments of the global securities markets results in superior growth in both revenue and profitability. This quarter's performance continues to reflect the fundamental strength of our long-term strategy," said Thomas A. Renyi, Chairman and CEO. In securities servicing, fee revenues increased to a 2 record $427 million, up 37% for the quarter. Foreign exchange and other trading revenue increased to $59 million or 31% over last year, benefiting from the continued increase in global trading volumes. Private client services and asset management fees grew 26% in the quarter, led by strong performance in all product areas. The Company's continued focus on fee-based businesses resulted in noninterest income growing to 62% of total revenue in the third quarter, up from 60% last year. Return on average common equity for the third quarter of 2000 was 25.75% compared with 25.33% on a normalized basis in the third quarter of 1999. Return on average assets for the third quarter of 2000 was 1.89% compared with 1.96% on a normalized basis in the third quarter of 1999. For the first nine months of 2000, return on average common equity totaled 26.55% compared with 25.34% on a normalized basis in 1999. Return on average assets was 1.83% for the first nine months of 2000 compared with 1.95% on a normalized basis in 1999. Fees from the Company's securities servicing businesses reached a record $427 million for the third quarter compared with $311 million last year. For the first nine months of 2000, fees from the Company's securities servicing businesses totaled a record $1,202 million, growing 33% compared with $904 million in 1999. Fee revenue was strong across all product lines with particular strength in global custody, depositary receipts ("DRs"), unit investment trust, and mutual funds as well as global execution and clearing services. Fee revenue also benefited from the acquisition of the Royal Bank of Scotland Trust Bank ("RBSTB") in the fourth quarter of 1999. The Company continues to be the world's leading custodian with assets of $6.9 trillion including $2 trillion of cross-border custody assets. DR trading activity reached $1 trillion for the first time during the first nine months of 2000. Cross-border mergers and acquisitions as well as U.S. investor interest in global telecommunication, media, and technology industries continued to be the major drivers of trading volume. 3 Private client services and asset management fees were $77 million for the quarter, up 26% over last year, led by continued superior investment performance by BNY Asset Management resulting in further new business, as well as by the acquisition of Estabrook Capital Management, Inc. Total revenues from global payment services, excluding trade finance, were up 10% in the first nine months of 2000. This growth was primarily due to strong increases in funds transfer with domestic financial service companies as well as increased cash management revenue associated with broad market acceptance of CA$H-Register PlusSM, the Company's new internet delivery system for cash management services. Trade finance revenues were down from a year ago primarily due to the sale of BNY Financial Corporation ("BNYFC") and reduced pricing, driven by the improved risk profiles of select Asian and Latin American markets. Foreign exchange and other trading revenues for the quarter increased 31% over the third quarter of last year to $59 million. In the first nine months of 2000, foreign exchange and other trading revenues were $206 million compared with $133 million last year. Despite seasonal fluctuations, foreign exchange revenues remained strong, driven by continued increased transaction flows from the Company's global securities servicing customer base. Net interest income on a taxable equivalent basis for the third quarter increased to $492 million from $477 million in the second quarter of 2000. For the first nine months of 2000, net interest income on a taxable equivalent basis was $1,429 million, compared with $1,292 million in the first nine months of 1999, benefiting from the acquisition of RBSTB, which brought approximately $10 billion in highly liquid, short-term assets and liabilities. Tangible diluted earnings per share (earnings before the amortization of goodwill and intangibles) were 52 cents per share in the third quarter of 2000, compared with 44 cents per share on a normalized basis in the third quarter of 1999. On the same basis, tangible return on average common equity was 38.89% in the third quarter of 2000 compared with 36.52% in 1999; and 4 tangible return on average assets was 2.05% in the third quarter of 2000 compared with 2.11% in 1999. Tangible diluted earnings per share were $1.50 per share for the first nine months of 2000, compared with $1.34 per share on a normalized basis in 1999. On the same basis, tangible return on average common equity was 41.11% in the first nine months of 2000 compared with 37.72% on a normalized basis in 1999; and tangible return on average assets was 1.98% in the first nine months of 2000 compared with 2.19% last year. Amortization of intangibles for the third quarter and the first nine months of 2000 was $29 million and $85 million compared with $23 million and $76 million last year. The Company's estimated Tier 1 capital and Total capital ratios were 8.29% and 12.68% at September 30, 2000, compared with 8.03% and 12.24% at June 30, 2000, and 8.38% and 12.52% at September 30, 1999. The leverage ratio was 7.42% at September 30, 2000, compared with 6.80% at June 30, 2000, and 8.10% one year ago. Tangible common equity as a percent of total assets was 5.75% at September 30, 2000, compared with 5.11% at June 30, 2000, and 5.93% one year ago. The decline in the leverage and tangible common equity ratios from 1999 primarily reflects the acquisition of RBSTB. In the third quarter of 2000, the Company repurchased approximately one million shares under its common stock repurchase programs. 5 NONINTEREST INCOME
3rd 2nd 3rd Quarter Quarter Quarter Year-to-date ------- ------- ------- ------------ (In millions) 2000 2000 1999 2000 1999 ---- ---- ---- ---- ---- Servicing Fees Securities $427 $403 $311 $1,202 $904 Cash 65 65 69 196 208 ---- ---- ------ ------ ------ 492 468 380 1,398 1,112 Private Client Services and Asset Management Fees 77 72 61 219 179 Service Charges and Fees 84 104 77 278 252 Foreign Exchange and Other Trading Activities 59 71 45 206 133 Securities Gains 20 45 50 105 149 Other 53 20 918 96 982 ---- ---- ------ ------ ------ Total Noninterest Income $785 $780 $1,531 $2,302 $2,807 ==== ==== ====== ====== ======
Total noninterest income reached $785 million, up 24% from $635 million in last year's third quarter, excluding the sale of BNYFC and the liquidity charge. The decline in cash servicing fees reflects both lower trade finance fees as well as lower cash management and funds transfer fees due to a rising rate environment positively impacting the value of customers' compensating balances. Service charges and fees declined from the second quarter reflecting a reduction of capital markets activity. Securities gains were $20 million compared with $45 million in the second quarter of 2000 and $50 million one year ago. Other income in the third quarter of 2000 includes a $26 million payment associated with the termination of a securities clearing contract entered into in conjunction with the acquisition of Everen Clearing Corporation. In 1999, other income in the third quarter included a $1,020 million gain on the sale of BNYFC and a $124 million liquidity charge on loans available for sale. 6 NET INTEREST INCOME
3rd 2nd 3rd Quarter Quarter Quarter Year-to-date (Dollars in millions on a ------- ------- ------- ------------ tax equivalent basis) 2000 2000 1999 2000 1999 ---- ---- ---- ---- ---- Net Interest Income $492 $477 $429 $1,429 $1,292 Net Interest Rate Spread 1.93% 1.93% 2.21% 1.94% 2.23% Net Yield on Interest- Earning Assets 3.05 2.91 3.16 2.95 3.14
Net interest income on a taxable equivalent basis was $492 million in the third quarter of 2000 compared with $477 million in the second quarter of 2000 and $429 million in the third quarter of 1999. The net interest rate spread was 1.93% in the third quarter of 2000, compared with 1.93% in the second quarter of 2000 and 2.21% one year ago. The net yield on interest-earning assets was 3.05% compared with 2.91% in the second quarter of 2000 and 3.16% in last year's third quarter. For the first nine months of 2000, net interest income on a taxable equivalent basis, amounted to $1,429 million compared with $1,292 million in 1999. The year-to-date net interest rate spread was 1.94% in 2000 compared with 2.23% in 1999, while the net yield on interest-earning assets was 2.95% in 2000 and 3.14% in 1999. The expansion of the Company's securities servicing, global payment services, and asset management businesses continues to generate increased levels of deposits. These additional deposits are being invested in high- quality liquid assets which increase net interest income, although lowering the net interest-rate spread. The improvement in the yield from the second quarter of 2000 reflects the Company's increased capital base combined with the growing level and value of interest-free deposits generated by the Company's securities and fiduciary businesses. 7 NONINTEREST EXPENSE AND INCOME TAXES Noninterest expense for the third quarter of 2000 was $635 million, compared with $515 million in 1999. The increase was principally due to acquisitions, technology investment, and new business wins. The efficiency ratio for the third quarter of 2000 improved to 50.4% compared with 51.9% in the second quarter of 2000, partially reflecting the increase in other income. For the first nine months of 2000, the efficiency ratio was 51.4% compared with 50.3% last year. The increase is primarily attributable to the acquisition of RBSTB in the fourth quarter of 1999. The computation of the efficiency ratio in 1999 excludes the gain on the sale of BNYFC and the liquidity charge. The effective tax rate for the third quarter of 2000 was 35.1% compared with 34.9% in the second quarter. NONPERFORMING ASSETS
Change 9/30/00 vs. (Dollars in millions) 9/30/00 6/30/00 6/30/00 -------- -------- -------- Loans: Other Commercial $ 69 $ 45 $24 Foreign 49 54 (5) Regional Commercial 28 33 (5) Loans Available for Sale 17 23 (6) ---- ---- ---- Total Loans 163 155 8 Other Real Estate 5 7 (2) ---- ---- ---- Total $168 $162 $ 6 ==== ==== ==== Nonperforming Assets Ratio 0.4% 0.4% Allowance/Nonperforming Loans 379.6 393.4 Allowance/Nonperforming Assets 367.5 376.4
Nonperforming assets totaled $168 million at September 30, 2000, compared with $162 million at June 30, 2000. The increase in nonperforming other commercial loans partially reflects a loan to an insurance company. At September 30, 2000, remaining credit exposures of loans available for sale 8 totaled $152 million with outstandings of $81 million compared with $246 million and $144 million, respectively at June 30, 2000. CREDIT LOSS PROVISION AND NET CHARGE-OFFS
3rd 2nd 3rd Quarter Quarter Quarter Year-to-date ------- ------- ------- ------------ (In millions) 2000 2000 1999 2000 1999 ---- ---- ---- ---- ---- Provision $ 25 $ 25 $ 90 $ 70 $120 ==== ==== ==== ==== ==== Net(Charge-offs)Recoveries: Commercial Real Estate $ - $ - $ (1) $ - $ (2) Other Commercial (14) (12) (61) (39) (82) Consumer (1) (1) (1) (3) (3) Foreign (3) - (23) (3) (34) Other - (2) (3) (3) (2) ----- ----- ----- ----- ------ Total $(18) $(15) $(89) $(48) $(123) ===== ===== ===== ===== ====== Other Real Estate Expenses $ 1 $ 1 $ - $ 3 $ 1
The allowance for credit losses increased to $617 million, or 1.65% of loans at September 30, 2000, compared with $610 million, or 1.60% of loans at June 30, 2000, and $594 million, or 1.57% of loans at September 30, 1999. The ratio of the allowance to nonperforming assets was 367.5% at September 30, 2000, compared with 376.4% at June 30, 2000, and 384.2% at September 30, 1999. *************************** Note 1: 1999 normalized earnings reflect net income adjusted for the results of BNY Financial Corporation ("BNYFC"), the $1,020 million gain on the sale of BNYFC, the related investment of proceeds, and repurchase of 25 million shares of Company common stock on a pro forma basis as of December 31, 1998; the $124 million liquidity charge related to the sale of loans; a provision adjustment of $75 million; and related tax effects. (Financial highlights and detailed financial statements are attached.) 9 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 September 30: ------------------------------------ Net Income $ 363 $ 773 (53.0)% Per Common Share: Basic $ 0.50 $ 1.04 (51.9) Diluted 0.49 1.02 (52.0) Cash Dividends Paid 0.16 0.14 14.3 Return on Average Common Shareholders' Equity 25.75% 61.23% Return on Average Assets 1.89 4.78 For the Nine Months Ended September 30: ------------------------------------ Net Income $ 1,057 $ 1,411 (25.1)% Per Common Share: Basic $ 1.44 $ 1.87 (23.0) Diluted 1.42 1.84 (22.8) Cash Dividends Paid 0.48 0.42 14.3 Return on Average Common Shareholders' Equity 26.55% 36.63% Return on Average Assets 1.83 2.88 As of September 30: ------------------ Assets $75,409 $63,158 19.4% Loans 37,433 37,757 (0.9) Securities 6,784 5,892 15.1 Deposits - Domestic 27,078 26,309 2.9 - Foreign 26,221 18,486 41.8 Long-Term Debt 2,957 2,416 22.4 Minority Interest - Preferred Securities 1,500 1,500 - Preferred Shareholders' Equity 1 1 - Common Shareholders' Equity 5,918 4,895 20.9 Common Shareholders' Equity Per Share 8.01 6.65 20.4 Market Value Per Share of Common Stock 56.50 33.44 69.0 Allowance for Credit Losses as a Percent of Loans 1.65% 1.57% Tier 1 Capital Ratio 8.29 8.38 Total Capital Ratio 12.68 12.52 Leverage Ratio 7.42 8.10 Tangible Common Equity Ratio 5.75 5.93
10 THE BANK OF NEW YORK COMPANY, INC. Consolidated Statements of Income (In millions, except per share amounts) (Unaudited)
For the three For the nine months ended months ended September 30, September 30, 2000 1999 2000 1999 ---- ---- ---- ---- Interest Income --------------- Loans $ 732 $ 643 $2,183 $1,962 Securities Taxable 79 63 236 190 Exempt from Federal Income Taxes 16 13 47 36 ----- ----- ----- ----- 95 76 283 226 Deposits in Banks 67 62 203 180 Federal Funds Sold and Securities Purchased Under Resale Agreements 80 49 198 147 Trading Assets 133 4 380 15 ----- ----- ----- ----- Total Interest Income 1,107 834 3,247 2,530 ----- ----- ----- ----- Interest Expense ---------------- Deposits 501 320 1,494 961 Federal Funds Purchased and Securities Sold Under Repurchase Agreements 38 32 107 99 Other Borrowed Funds 37 27 108 102 Long-Term Debt 52 38 149 108 ----- ----- ----- ----- Total Interest Expense 628 417 1,858 1,270 ----- ----- ----- ----- Net Interest Income 479 417 1,389 1,260 ------------------- Provision for Credit Losses 25 90 70 120 ----- ----- ----- ----- Net Interest Income After Provision for Credit Losses 454 327 1,319 1,140 ----- ----- ----- ----- Noninterest Income ------------------ Servicing Fees Securities 427 311 1,202 904 Cash 65 69 196 208 ----- ----- ----- ----- 492 380 1,398 1,112 Private Client Services and Asset Management Fees 77 61 219 179 Service Charges and Fees 84 77 278 252 Securities Gains 20 50 105 149 Other 112 963 302 1,115 ----- ----- ----- ----- Total Noninterest Income 785 1,531 2,302 2,807 ----- ----- ----- ----- Noninterest Expense ------------------- Salaries and Employee Benefits 371 300 1,097 922 Net Occupancy 47 41 137 122 Furniture and Equipment 27 25 80 69 Other 190 149 551 424 ----- ----- ----- ----- Total Noninterest Expense 635 515 1,865 1,537 ----- ----- ----- ----- Income Before Income Taxes 604 1,343 1,756 2,410 Income Taxes 213 542 614 915 Distribution on Trust Preferred Securities 28 28 85 84 ----- ----- ----- ----- Net Income $ 363 $ 773 $1,057 $1,411 ---------- ===== ===== ====== ====== Net Income Available to Common Shareholders $ 363 $ 773 $1,057 $1,411 ------------------------------------------- ===== ===== ====== ====== Per Common Share Data: ---------------------- Basic Earnings $ 0.50 $1.04 $1.44 $1.87 Diluted Earnings 0.49 1.02 1.42 1.84 Cash Dividends Paid 0.16 0.14 0.48 0.42 Diluted Shares Outstanding 747 754 744 769
11 THE BANK OF NEW YORK COMPANY, INC. Consolidated Balance Sheets (Dollars in millions, except per share amounts) (Unaudited)
September 30, December 31, 2000 1999 ---- ---- Assets ------ Cash and Due from Banks $ 4,222 $ 3,276 Interest-Bearing Deposits in Banks 5,047 6,850 Securities: Held-to-Maturity 849 871 Available-for-Sale 5,935 6,028 ------- ------- Total Securities 6,784 6,899 Trading Assets at Fair Value 10,157 8,715 Federal Funds Sold and Securities Purchased Under Resale Agreements 3,175 5,383 Loans (less allowance for credit losses of $617 in 2000 and $595 in 1999) 36,816 36,952 Premises and Equipment 901 893 Due from Customers on Acceptances 914 739 Accrued Interest Receivable 374 319 Other Assets 7,019 4,730 ------- ------- Total Assets $75,409 $74,756 ======= ======= Liabilities and Shareholders' Equity ------------------------------------ Deposits Noninterest-Bearing (principally domestic offices) $11,886 $12,162 Interest-Bearing Domestic Offices 15,688 16,319 Foreign Offices 25,725 27,270 ------- ------- Total Deposits 53,299 55,751 Federal Funds Purchased and Securities Sold Under Repurchase Agreements 1,478 1,318 Other Borrowed Funds 4,199 3,825 Acceptances Outstanding 917 740 Accrued Taxes and Other Expenses 3,135 2,644 Accrued Interest Payable 148 131 Other Liabilities 1,857 893 Long-Term Debt 2,957 2,811 ------- ------- Total Liabilities 67,990 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 16,320 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 983,594,524 shares in 2000 and 977,961,165 shares in 1999 7,377 7,335 Additional Capital 454 315 Retained Earnings 3,326 2,620 Accumulated Other Comprehensive Income 189 30 ------- ------- 11,347 10,301 Less: Treasury Stock (242,944,902 shares in 2000 and 237,747,242 shares in 1999), at cost 5,418 5,148 Loan to ESOP (1,444,005 shares in 2000 and 1999), at cost 10 10 ------- ------- Total Shareholders' Equity 5,919 5,143 ------- ------- Total Liabilities and Shareholders' Equity $75,409 $74,756 ======= ======= ---------------------------------------------------------------------------------------- Note: The balance sheet at December 31, 1999 has been derived from the audited financial statements at that date.
12 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 September 30, 2000 ended September 30, 1999 ------------------------------ ------------------------------ Average Average Average Average Balance Interest Rate Balance Interest Rate ------- -------- ------- ------- -------- ------- ASSETS ------ Interest-Bearing Deposits in Banks (primarily foreign) $ 4,941 $ 67 5.36% $ 5,641 $ 62 4.35% Federal Funds Sold and Securities Purchased Under Resale Agreements 4,863 80 6.55 4,051 49 4.76 Loans Domestic Offices 18,862 355 7.49 19,224 349 7.20 Foreign Offices 19,676 377 7.62 18,522 294 6.30 ------- ----- ------- ----- Total Loans 38,538 732 7.56 37,746 643 6.76 ------- ----- ------- ----- Securities U.S. Government Obligations 1,604 24 5.90 2,452 36 5.85 U.S. Government Agency Obligations 1,614 28 6.92 840 14 6.56 Obligations of States and Political Subdivisions 629 13 8.12 570 11 7.87 Other Securities, including Trading Securities 11,779 176 5.99 2,537 31 4.93 ------- ----- ------- ----- Total Securities 15,626 241 6.16 6,399 92 5.76 ------- ----- ------- ----- Total Interest-Earning Assets 63,968 1,120 6.97% 53,837 846 6.24% ----- ----- Allowance for Credit Losses (609) (593) Cash and Due from Banks 3,003 3,240 Other Assets 10,153 7,579 ------- ------- TOTAL ASSETS $76,515 $64,063 ======= ======= LIABILITIES AND SHAREHOLDERS' EQUITY ------------------------------------ Interest-Bearing Deposits Money Market Rate Accounts $ 5,879 73 4.96% $ 4,891 54 4.37% Savings 7,566 52 2.73 7,763 45 2.32 Certificates of Deposit $100,000 & Over 442 7 6.01 430 5 5.03 Other Time Deposits 1,877 25 5.23 2,208 24 4.27 Foreign Offices 26,411 344 5.20 18,664 192 4.07 ------- ----- ------- ----- Total Interest-Bearing Deposits 42,175 501 4.73 33,956 320 3.74 Federal Funds Purchased and Securities Sold Under Repurchase Agreements 2,517 38 6.06 2,827 32 4.50 Other Borrowed Funds 2,154 37 6.91 2,012 27 5.34 Long-Term Debt 2,872 52 7.13 2,313 38 6.59 ------- ----- ------- ----- Total Interest-Bearing Liabilities $49,718 628 5.04% 41,108 417 4.03% ----- ----- Noninterest-Bearing Deposits 11,232 10,580 Other Liabilities 8,448 5,870 Minority Interest-Preferred Securities 1,500 1,500 Preferred Stock 1 1 Common Shareholders' Equity 5,616 5,004 ------- ------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $76,515 $64,063 ======= ======= Net Interest Earnings and Interest Rate Spread $ 492 1.93% $ 429 2.21% ===== ==== ===== ==== Net Yield on Interest-Earning Assets 3.05% 3.16% ==== ====
13 THE BANK OF NEW YORK COMPANY, INC. Average Balances and Rates on a Taxable Equivalent Basis (Preliminary) (Dollars in millions)
For the nine months For the nine months ended September 30, 2000 ended September 30, 1999 ------------------------------ ------------------------------ Average Average Average Average Balance Interest Rate Balance Interest Rate ------- -------- ------- ------- -------- ------- ASSETS ------ Interest-Bearing Deposits in Banks (primarily foreign) $ 5,499 $ 203 4.94% $ 5,321 $ 180 4.52% Federal Funds Sold and Securities Purchased Under Resale Agreements 4,310 198 6.15 4,169 147 4.73 Loans Domestic Offices 19,477 1,075 7.37 19,913 1,073 7.21 Foreign Offices 20,039 1,109 7.39 19,109 890 6.23 ------- ----- ------- ----- Total Loans 39,516 2,184 7.38 39,022 1,963 6.73 ------- ----- ------- ----- Securities U.S. Government Obligations 2,165 97 6.01 2,518 109 5.79 U.S. Government Agency Obligations 1,192 61 6.82 857 41 6.43 Obligations of States and Political Subdivisions 612 37 8.04 592 35 7.82 Other Securities, including Trading Securities 11,382 507 5.94 2,538 87 4.56 ------- ----- ------- ----- Total Securities 15,351 702 6.11 6,505 272 5.59 ------- ----- ------- ----- Total Interest-Earning Assets 64,676 3,287 6.79% 55,017 2,562 6.23% ----- ----- Allowance for Credit Losses (606) (619) Cash and Due from Banks 3,239 3,130 Other Assets 10,021 8,002 ------- ------- TOTAL ASSETS $77,330 $65,530 ======= ======= LIABILITIES AND SHAREHOLDERS' EQUITY ------------------------------------ Interest-Bearing Deposits Money Market Rate Accounts $ 5,733 210 4.89% $ 5,086 160 4.20% Savings 7,630 146 2.56 7,793 131 2.24 Certificates of Deposit $100,000 & Over 443 19 5.59 559 20 4.89 Other Time Deposits 2,023 76 5.00 2,195 71 4.31 Foreign Offices 27,755 1,043 5.02 18,971 579 4.08 ------- ----- ------- ----- Total Interest-Bearing Deposits 43,584 1,494 4.58 34,604 961 3.71 Federal Funds Purchased and Securities Sold Under Repurchase Agreements 2,569 107 5.57 3,061 99 4.32 Other Borrowed Funds 2,197 108 6.54 2,591 102 5.31 Long-Term Debt 2,839 149 6.97 2,225 108 6.45 ------- ----- ------- ----- Total Interest-Bearing Liabilities $51,189 1,858 4.85% 42,481 1,270 4.00% ----- ----- Noninterest-Bearing Deposits 11,249 10,548 Other Liabilities 8,073 5,866 Minority Interest-Preferred Securities 1,500 1,482 Preferred Stock 1 1 Common Shareholders' Equity 5,318 5,152 ------- ------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $77,330 $65,530 ======= ======= Net Interest Earnings and Interest Rate Spread $1,429 1.94% $1,292 2.23% ====== ==== ====== ==== Net Yield on Interest-Earning Assets 2.95% 3.14% ==== ====