EXHIBIT 99.1
| OLD KENT | |
| N e w s R e l e a s e | Old
Kent Financial Corporation 111 Lyon Street NW Grand Rapids, MI 49503-2406 |
| NYSE: |
OK
|
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| FOR RELEASE: |
Immediate
|
||||||||||
| DATE: |
April
14, 2000
|
||||||||||
| CONTACT: |
Albert
T. Potas
|
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|
(616)
771-1931
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Old Kent Reports
First Quarter Earnings
- Operating EPS increased 17.3% to $0.61 per share -
- Net income per share, inclusive of merger related charges, of $0.47 -
Grand Rapids, Michigan -- Old Kent reported its operating results for the three months ended March 31, 2000. David Wagner, Chairman, President and CEO said "In view of the challenging interest rate environment, we are pleased with our results for the quarter."
As discussed below, during the quarter, Old Kent completed its acquisition of Merchants Bancorp, Inc. ("Merchants") as a "pooling-of-interests" transaction. Accordingly, prior period amounts reported in this release have been adjusted to reflect the inclusion of Merchants on a comparable basis.
First Quarter 2000 Financial
Highlights:
Excluding $17.5 million (or $0.14 per
share) of after-tax merger related charges:
| • | Operating earnings per share was $0.61 for the first quarter of 2000, a 17.3% increase over 1999. | ||||||||||
| • | Operating earnings were $74.5 million, or 13.7% better than the first quarter of 1999. | ||||||||||
| • | Total (taxable-equivalent) revenues increased 3.8% with no increase in operating expenses. | ||||||||||
| • | Non-interest revenues grew 6.7% and represented 37.9% of total revenues, up from 36.8% last year. | ||||||||||
| • | Operating return on average total equity was 22.76% compared to 19.30% for the first quarter of 1999. | ||||||||||
| • | Operating return on average total assets was 1.56% versus 1.37% for the preceding year's first quarter. | ||||||||||
| • | Commercial loans increased to $7.7 billion at March 31, 2000, up 22% over last year. | ||||||||||
| • | Consumer loans totaled $4 billion at March 31, 2000, an increase of 37%. | ||||||||||
| • | Credit quality remained strong -- net loan losses were $6.1 million and included $2 million of loan charge-offs recognized to conform the credit evaluation practices of Merchants to those of Old Kent. | ||||||||||
Revenues:
Total taxable equivalent revenues, exclusive
of security transactions, were $289.7 million for the first quarter of 2000,
a 3.8% increase over last year's first quarter. This improvement includes a
higher level of net interest income attributable to the growth in commercial
and consumer loans and improved non-interest revenues.
Net interest income increased 2% to $175.1 million despite the effects of margin compression associated with higher interest rates. An improved mix of interest-earning assets, more heavily weighted in loans, along with growth in total interest-earning assets contributed to the increase. At March 31, 2000, total loans were $13.6 billion, 20.4% more than the total one year earlier, and interest-earning assets were $18 billion, 5.4% more than last year. The net interest margin for the first quarter of 2000 was 4.14% compared to 4.04% for the first three months of 1999.
Non-interest revenues, excluding security transactions, increased by 6.7% to $109.8 million. Mortgage banking revenues decreased as expected, by 5.4% to $42.7 million. Investment management and trust revenues were $20.9 million for the quarter ended March 31, 2000, a 10.4% increase over last year's first quarter. Deposit account revenues grew 10.2% over the comparable 1999 period. Total non-interest revenues were 37.9% of total taxable-equivalent revenues for the first three months of 2000 compared to 36.8% for the same period of 1999.
Expenses:
Total non-interest expenses were $169.5 million
for the quarter ended March 31, 2000, unchanged from the prior year's first
quarter and accompanied by a 3.8% increase in total revenues. This favorable
result reflected efficiencies attained by the Corporation from its acquisitions
of banking franchises over the past few quarters. It also reflects the successful
efforts of Old Kent Mortgage Company in reducing its production capacity to
align resources with demand levels in a higher interest rate environment. The
efficiency ratio expresses how much of each revenue dollar is used to pay operating
expenses and was 58.5% for the first quarter of 2000, comparing favorably to
60.7% for the year ago quarter.
Asset Quality:
The Corporation's provision for credit losses,
excluding the special merge-related provision, was $6.4 million for the
first quarter of 2000, compared to $7.3 million for the same period in 1999.
Net loan losses for the three months ended March 31, 2000, exclusive of those
related to conforming Merchants credit evaluation practices, were
$4.1 million in comparison to $6.3 million for last year's first quarter. The
decrease in net loan losses is the direct
result of Old Kent's ongoing emphasis on strong underwriting. At March 31, 2000,
the allowance for credit losses
was 1.46% of total loans compared to 1.68% at March 31, 1999. Nonperforming
assets were $74.2 million at
March 31, 2000, or 0.38% of total assets, compared to $77.5 million, or 0.41%
of total assets one year earlier.
Acquisitions:
Effective February 11, 2000, Old Kent completed
its acquisition of Merchants Bancorp, Inc., a bank holding company
headquartered in Aurora, Illinois, in a "pooling-of-interests" transaction.
When acquired, Merchants had total
assets of $1 billion and deposits of $0.7 billion. As a result of this acquisition,
Old Kent now enjoys the #1 deposit
market share in Illinois' prosperous Kane County. In connection with this acquisition,
Old Kent recognized approximately
$17.5 million, or $0.14 per share, of after tax charges related to this merger.
Management has identified the
following charges (on a pre-tax basis) as such: a special loan loss provision
of $4 million to conform Merchants asset
quality measurements with Old Kent's more conservative practices; security losses
of $6.1 million resulting from the
sale of $266 million of securities to realign the balance sheet composition
of the newly combined companies to Old
Kent's profile; and $16 million of costs associated with completion of the transaction,
elimination of redundant operations,
asset obsolescence and other nonrecurring costs. Old Kent anticipates realizing
approximately $9 million of
annual pre-tax cost savings beginning in April 2000.
Effective April 1, 2000, subsequent to the March 31, 2000 "as of" date for this release, Old Kent acquired Grand Premier Financial, Inc. ("Grand Premier"), a bank holding company headquartered in Wauconda, Illinois, in a "pooling-of-interests" transaction. When acquired, Grand Premier had total assets of $1.7 billion and deposits of $1.3 billion and a sizable presence in growing communities located in Lake and McHenry Counties, north and northwest of Chicago.
Stock Repurchase Program:
As of March 31, 2000, the Corporation
had completed the repurchase of 2.25 million shares of its common stock under
a June 1999 authorization allowing for the repurchase of 3 million shares of
its common stock within the ensuing year. As in past programs, shares are to
be acquired ratably on a quarterly basis for use in future stock dividends and for
issuances related to the Corporation's direct stock purchase plan, OK Invest
Direct, and to employee stock plans.
Conference Call:
Old Kent's management will host a conference
call to discuss the operating results for the quarter ended March 31, 2000,
at 11:00 a.m. (Eastern Daylight Time) on April 14, 2000. The conference may
be accessed by dialing 800-491-4331 ("listen only" mode) just prior to the scheduled
start time. A replay of the call will be available through April 21, 2000,
by dialing 800-696-1588 (passcode: 686815). The call, on a "live" or replay basis,
may also be accessed through Old Kent's website, www.oldkent.com.
Websites:
During February, 2000, Old Kent launched
its internet banking distribution channel. To date, about 8,000 new and existing
customers have elected to take advantage of this new capability.
Information about Old Kent and its products and services, including the OK Cafe and OK Invest Direct, is available through its website, www.oldkent.com, and through related sites: www.oldkentfinadvisors.com; www.kentfunds.com; www.oldkentinsurance.com; and www.oldkentmortgage.com.
Description of Old Kent:
Old Kent is a financial services company
headquartered in Grand Rapids, Michigan, with a 41 year history of consecutive
increases in annual per share earnings and dividends. It operates nearly 300
banking offices in Michigan, Illinois and Indiana, as well as a nationwide mortgage
lending franchise. At March 31, 2000, Old Kent had total assets of approximately
$20 billion.
|
Percentage
|
||||
| EARNINGS SUMMARY: | 2000 | 1999 (a) (b) |
Change
|
|
| Quarter ended March 31: | ||||
| Before merger-related charges: | ||||
| Basic Earnings per Share | $0.61 | $0.53 | 15.1% | |
| Diluted Earnings per Share | $0.61 | $0.52 | 17.3% | |
| Net Income | $74,502,000 | $65,531,000 | 13.7% | |
| After merger-related charges: | ||||
| Basic Earnings per Share | $0.47 | $0.53 | -11.3% | |
| Diluted Earnings per Share | $0.47 | $0.52 | -9.6% | |
| Net Income | $56,996,000 | $65,531,000 | -13.0% | |
| Balance Sheet Data at March 31: | ||||
| Commercial Loans | $7,678,262,000 | $6,298,543,000 | 21.9% | |
| Consumer Loans | 4,003,434,000 | 2,919,704,000 | 37.1% | |
| Residential Mortgage Loans | 1,877,828,000 | 2,045,959,000 | -8.2% | |
| Total Loans | 13,559,524,000 | 11,264,206,000 | 20.4% | |
| Total Interest-earning Assets | 17,988,295,000 | 17,059,061,000 | 5.4% | |
| Core Deposits | 13,274,930,000 | 13,288,387,000 | -0.1% | |
| Total Deposits | 14,572,987,000 | 14,683,371,000 | -0.8% | |
| Total Assets | 19,664,874,000 | 18,722,161,000 | 5.0% | |
| Shareholders' Equity | 1,314,125,000 | 1,352,444,000 | -2.8% |
|
(a)
|
adjusted
to reflect a five percent stock dividend paid July 17, 1999.
|
|||
| (b) |
restated
to include CFSB Bancorp, Inc. and Pinnacle Banc Group, Inc. acquired during
the third quarter of 1999 and to include Merchants Bancorp, Inc.
acquired February 11, 2000 , in "pooling-of-interests" transactions.
|
|||
|
This
press release contains certain forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include expressions such as "expects," "intends," "believes,"
and "should," which are necessarily statements of belief as to the expected
outcomes of future events. Actual results could materially
differ from those presented. Internal and external factors that might
cause such a difference include, but are not limited
to, the possibility that anticipated cost savings from mergers and other
initiatives may not be fully realized within the expected
time frames. Actual results could materially differ from those contained in,
or implied by such statements. Old Kent undertakes no obligation to release
revisions to these forward looking statements or
reflect events or conditions after the date of this release.
|
| |
Consolidated
Key Financial Data (a) |
||||||||||||
| [Amounts
in thousands, (except per share data] |
1st Quarter | 3rd Quarter | |||||||||||
| 2000 | 1999 | ||||||||||||
Unaudited) |
Excluding Merger |
1st Quarter | 4th Quarter | Excluding Merger |
3rd Quarter | 2nd Quarter | 1st Quarter | ||||||
| Key
Statistics |
Charges |
2000 |
1999 |
Charges |
1999 |
1999 |
1999 |
||||||
| Net income. | $74,502 | $56,996 | $71,014 | $72,337 | $54,737 | $67,828 | $65,531 | ||||||
| Basic earnings per share | $0.61 | $0.47 | $0.58 | $0.59 | $0.45 | $0.55 | $0.53 | ||||||
| Diluted earnings per share | $0.61 | $0.47 | $0.58 | $0.58 | $0.44 | $0.55 | $0.52 | ||||||
| Cash basis earnings per share (b) | $0.64 | $0.50 | $0.61 | $0.62 | $0.48 | $0.58 | $0.55 | ||||||
| Operating revenue per share (c) | $2.36 | $2.36 | $2.39 | $2.38 | $2.38 | $2.34 | $2.22 | ||||||
| Operating expense per share (c) | $1.38 | $1.38 | $1.40 | $1.39 | $1.39 | $1.45 | $1.35 | ||||||
| Return on average total assets | 1.56 | 1.20 | 1.51 | 1.54 | 1.16 | 1.42 | 1.37 | ||||||
| Return on average total equity | 22.76 | 17.57 | 21.57 | 21.67 | 16.53 | 20.56 | 19.30 | ||||||
| Net interest margin | 4.14 | 4.14 | 4.24 | 4.32 | 4.32 | 4.16 | 4.04 | ||||||
| Yield on average earning assets | 8.18 | 8.18 | 8.01 | 7.95 | 7.95 | 7.75 | 7.72 | ||||||
| Cost of average paying liabilities | 4.57 | 4.57 | 4.34 | 4.17 | 4.17 | 4.10 | 4.21 | ||||||
| Efficiency ratio (c) | 58.52 | 58.52 | 58.36 | 58.09 | 58.09 | 61.80 | 60.75 | ||||||
| Net profit margin | 25.72 | 19.68 | 24.17 | 24.52 | 18.55 | 23.36 | 23.48 | ||||||
| Common Stock Information
(adjusted for stock dividends) |
|||||||||||||
| Book value per share | $10.81 | $10.81 | $10.65 | $10.72 | $10.72 | $10.73 | $10.93 | ||||||
| Dividends paid per share | 0.220 | 0.220 | 0.220 | 0.200 | 0.200 | 0.190 | 0.190 | ||||||
| Per share price: | |||||||||||||
| High | 34.88 | 34.88 | 42.25 | 44.75 | 44.75 | 46.85 | 45.00 | ||||||
| Low | 23.88 | 23.88 | 33.56 | 36.63 | 36.63 | 40.00 | 39.52 | ||||||
| Close | 32.31 | 32.31 | 35.38 | 37.13 | 37.13 | 41.88 | 40.30 | ||||||
| Outstanding shares at end of period | 121,578 | 121,578 | 121,930 | 122,420 | 122,420 | 122,950 | 123,752 | ||||||
| Number of shares used to compute: | |||||||||||||
| Basic earnings per share | 121,831 | 121,831 | 121,978 | 122,760 | 122,760 | 123,013 | 124,298 | ||||||
| Diluted
earnings per share |
122,537 |
122,537 |
122,891 |
123,734 |
123,734 |
124,116 |
125,587 |
||||||
| (a) |
Restated
to include "pooling-of-interests" transactions: Merchants Bancorp, Inc.,
acquired February 11, 2000; CFSB Bancorp, Inc., acquired July 9, 1999;
and Pinnacle Banc Group, Inc., acquired September 3 , 1999.
|
||||||||||||
|
(b)
|
Cash
basis earnings per share excludes the effect of amortization of intangibles.
|
||||||||||||
|
(c)
|
Excludes
non-recurring items.
|
||||||||||||
OLD KENT
Financial
Corporation
|
Consolidated
Key Financial Data (a)
|
|||||||||||||
| [Amounts
in thousands, except per share data] |
1st Quarter | 3rd Quarter | |||||||||||
| 2000 | 1999 | ||||||||||||
| (Unaudited) | Excluding Merger |
1st Quarter | 4th Quarter | Excluding Merger |
3rd Quarter | 2nd Quarter | 1st Quarter | ||||||
| Summary
Income Statement |
Charges |
2000 |
1999 |
Charges |
1999 |
1999 |
1999 |
||||||
| Taxable equivalent net interest income | $179,899 | $179,899 | $183,520 | $187,725 | $187,725 | $181,637 | $176,279 | ||||||
| Interest income | 350,497 | 350,497 | 342,780 | 341,038 | 341,038 | 333,134 | 330,872 | ||||||
| Interest expense | 175,389 |
175,389 |
164,232 |
158,266 |
158,266 |
156,248 |
159,196 |
||||||
| Net interest income | 175,108 |
175,108 |
178,548 |
182,772 |
182,772 |
176,886 |
171,676 |
||||||
| Provision for credit losses (operating) | 6,372 | 6,372 | 10,620 | 7,608 | 7,608 | 5,514 | 7,346 | ||||||
| Provision for credit losses (merger related) | -- |
4,000 |
-- |
-- |
-- |
-- |
-- |
||||||
| Other income: | |||||||||||||
| Mortgage banking revenues - net | 42,709 | 42,709 | 49,721 | 46,956 | 46,956 | 49,673 | 45,140 | ||||||
| Investment management & trust revenues | 20,911 | 20,911 | 19,491 | 19,293 | 19,293 | 19,163 | 18,946 | ||||||
| Deposit account revenues | 18,831 | 18,831 | 19,323 | 18,879 | 18,879 | 18,304 | 17,093 | ||||||
| Insurance sales commissions | 6,038 | 6,038 | 5,432 | 5,956 | 5,956 | 5,979 | 5,974 | ||||||
| Other revenues and fees | 21,270 |
21,270 |
16,277 |
16,213 |
16,213 |
15,547 |
15,666 |
||||||
| Total other income | 109,759 |
109,759 |
110,244 |
107,297 |
107,297 |
108,666 |
102,819 |
||||||
| Securities gains | 3 | 3 | 36 | 5 | 5 | 5,216 | 2,718 | ||||||
| Securities gain/(losses) (merger related) | -- |
(6,125 |
) | -- |
-- |
-- |
-- |
-- |
|||||
| Total | 109,762 |
103,637 |
110,280 |
107,302 |
107,302 |
113,882 |
105,537 |
||||||
| Other expense: | |||||||||||||
| Salaries and employee benefits | 90,043 | 90,043 | 87,324 | 89,871 | 89,871 | 91,044 | 89,079 | ||||||
| Occupancy expense | 13,573 | 13,573 | 14,009 | 13,253 | 13,253 | 13,096 | 13,254 | ||||||
| Equipment expense | 11,148 | 11,148 | 12,286 | 11,162 | 11,162 | 11,649 | 10,509 | ||||||
| Amortization of goodwill & intangibles | 4,340 | 4,340 | 4,444 | 4,542 | 4,542 | 4,671 | 4,554 | ||||||
| Other | 50,414 |
50,414 |
53,376 |
52,557 |
52,557 |
58,939 |
52,160 |
||||||
| Total other expense | 169,518 |
169,518 |
171,439 |
171,385 |
171,385 |
179,399 |
169,556 |
||||||
| Merger charges | -- |
16,000 |
-- |
-- |
26,000 |
-- |
-- |
||||||
| Total. | 169,518 |
185,518 |
171,439 |
171,385 |
197,385 |
179,399 |
169,556 |
||||||
| Income before income taxes | 108,980 | 82,855 | 106,769 | 111,081 | 85,081 | 105,855 | 100,311 | ||||||
| Income taxes | 34,478 | 34,478 | 35,755 | 38,744 | 38,744 | 38,027 | 34,780 | ||||||
| Income taxes (applicable to merger charges) | -- |
(8,619 |
) | -- |
-- |
(8,400 |
) | -- |
-- |
||||
| Net income | $74,502 |
$56,996 |
$71,014 |
$72,337 |
$54,737 |
$67,828 |
$65,531 |
OLD KENT
Financial
Corporation
|
Five
Quarter Average Balances, Yields and Rates (a)
|
|||||||||||||||
| (Unaudited) | 1st
Quarter 2000 |
4th
Quarter 1999 |
3rd
Quarter 1999 |
||||||||||||
| (Yields and rates are on a fully taxable- | Ending |
Average
|
Yield/
|
Ending |
Average
|
Yield/
|
Ending |
Average
|
Yield/
|
||||||
| equivalent basis, dollars in millions) | Balance
|
Balance
|
Rate
|
Balance
|
Balance
|
Rate
|
Balance
|
Balance
|
Rate
|
||||||
| Assets: | |||||||||||||||
| Loans: | |||||||||||||||
| Commercial loans and leases | $7,678 | $7,469 | 8.74 | % | $7,297 | $7,043 | 8.55 | % | $6,921 | $6,767 | 8.45 | % | |||
| Consumer loans | 4,003 | 3,712 | 9.04 | 3,639 | 3,425 | 8.96 | 3,305 | 3,205 | 8.93 | ||||||
| Residential mortgages | 1,878 |
1,857 |
7.70 | 1,829 |
1,746 |
7.64 | 1,713 |
2,082 |
7.70 | ||||||
| Total loans | 13,559 | 13,038 | 8.68 | 12,765 | 12,214 | 8.53 | 11,939 | 12,054 | 8.45 | ||||||
| Securities | 3,465 | 3,472 | 6.36 | 3,530 | 3,648 | 6.37 | 3,619 | 3,796 | 6.56 | ||||||
| Mortgages held-for-sale | 913 | 883 | 8.12 | 901 | 1,247 | 8.02 | 1,452 | 1,404 | 7.53 | ||||||
| Other interest - earning assets | 51 |
44 |
5.83 | 29 |
152 |
5.48 | 50 |
60 |
5.34 | ||||||
| Total earning assets | 17,988 | 17,437 | 8.18 | 17,225 | 17,261 | 8.01 | 17,060 | 17,314 | 7.95 | ||||||
| Unrealized gain/(loss) on S.A.F.S. | (97 | ) | (104 | ) | (93 | ) | (69 | ) | (57 | ) | (43 | ) | |||
| Allowance for credit losses | (198 | ) | (195 | ) | (193 | ) | (194 | ) | (194 | ) | (192 | ) | |||
| Cash and due from banks | 567 | 559 | 630 | 602 | 586 | 620 | |||||||||
| Goodwill and other intangibles | 133 | 136 | 137 | 140 | 141 | 144 | |||||||||
| Mortgage servicing rights | 287 | 285 | 277 | 296 | 285 | 287 | |||||||||
| Other assets | 985 |
936 |
956 |
801 |
779 |
701 |
|||||||||
| Total assets | $19,665
|
$19,054
|
$18,939
|
$18,837
|
$18,600
|
$18,831
|
|||||||||
| Liabilities and shareholders' equity: | |||||||||||||||
| Savings deposits | $5,723 | $5,709 | 3.21 | % | $5,641 | $5,626 | 3.05 | % | $5,568 | $5,644 | 2.85 | % | |||
| Negotiable and foreign deposits | 1,298 | 1,268 | 5.82 | 1,266 | 1,223 | 5.57 | 1,120 | 1,109 | 5.15 | ||||||
| Consumer time deposits | 5,443 |
5,375 |
5.08 | 5,349 |
5,440 |
4.85 | 5,490 |
5,577 |
4.79 | ||||||
| Total interest - bearing deposits | 12,464 | 12,352 | 4.29 | 12,256 | 12,289 | 4.10 | 12,178 | 12,330 | 3.94 | ||||||
| Federal funds purchased and | |||||||||||||||
| repurchase agreements | 1,440 | 1,062 | 5.04 | 990 | 822 | 4.51 | 751 | 925 | 4.38 | ||||||
| Other borrowed funds | 1,828 | 1,816 | 5.93 | 1,739 | 1,721 | 5.65 | 1,719 | 1,618 | 5.50 | ||||||
| Subordinated debt | 100 | 100 | 6.74 | 100 | 100 | 6.74 | 100 | 100 | 6.74 | ||||||
| Floating rate subordinated securities | 100 |
100 |
7.21 | 100 |
100 |
7.09 | 100 |
100 |
6.37 | ||||||
| Total interest - bearing funds | 15,932 | 15,430 | 4.57 | 15,185 | 15,032 | 4.34 | 14,848 | 15,073 | 4.17 | ||||||
| Demand deposits | 2,109 | 2,031 | 2,160 | 2,182 | 2,138 | 2,176 | |||||||||
| Other liabilities | 310 | 295 | 296 | 324 | 302 | 257 | |||||||||
| Shareholders' equity: | |||||||||||||||
| Common stock, surplus and retained earnings | 1,391 | 1,370 | 1,373 | 1,344 | 1,349 | 1,352 | |||||||||
| Net unrealized gain/(loss) on S.A.F.S. | (77 |
) | (72 |
) | (75 |
) | (45 |
) | (37 |
) | (27 |
) | |||
| Total liabilities and | |||||||||||||||
| shareholders' equity | $19,665
|
$19,054
|
$18,939
|
$18,837
|
$18,600
|
$18,831
|
|||||||||
| Selected Ratios | |||||||||||||||
| Net interest spread | 3.61 | % | 3.67 | % | 3.78 | % | |||||||||
| Net interest income as a percent | |||||||||||||||
| of average earning assets | 4.14 | % | 4.24 | % | 4.32 | % | |||||||||
| Total equity to total assets | 6.68 | % | 6.86 | % | 7.05 | % | |||||||||
| Tangible equity to tangible assets | 6.05 | % | 6.18 | % | 6.34 | % | |||||||||
| Memoranda | |||||||||||||||
| Core deposits | 13,275
|
13,115
|
13,149
|
13,248
|
13,196
|
13,397
|
|||||||||
| Total deposits | 14,573
|
14,384
|
14,416
|
14,471
|
14,316
|
14,506
|
|||||||||
| Mortgage servicing portfolio | 15,358
|
14,726
|
15,113
|
||||||||||||
| Mortgage banking full-time equivalent employees | 2,736
|
2,778
|
2,951
|
||||||||||||
| Total full-time equivalent employees | 8,241
|
8,327
|
8,627
|
||||||||||||
| (Unaudited) |
| Credit Quality |
1st Quarter 2000
|
4th
Quarter 1999
|
3rd
Quarter 1999
|
||||||||||||
| Ending allowance for credit losses | $197.7 |
$192.8 |
$193.8 |
||||||||||||
| Nonperforming assets: | |||||||||||||||
| Nonaccrual | 65.1 | 59.4 | 56.3 | ||||||||||||
| Renegotiated | 1.9 |
2.2 |
2.2 |
||||||||||||
| Total impaired loans | 67.0 | 61.6 | 58.5 | ||||||||||||
| Other real estate owned | 7.2 |
8.3 |
6.8 |
||||||||||||
| Total nonperforming assets | 74.2 |
69.9 |
65.3 |
||||||||||||
| Loans delinquent over 90 days | 13.5 |
14.2 |
17.1 |
||||||||||||
| Gross charge-offs | 11.7 | 16.4 | 10.8 | ||||||||||||
| Recoveries | 5.6 |
4.8 |
6.8 |
||||||||||||
| Net charge-offs | 6.1 |
11.6 |
4.0 |
||||||||||||
| Provision for credit losses | 10.4 |
10.6 |
7.6 |
||||||||||||
| Key Ratios: | |||||||||||||||
| Allowance to loans | 1.46 | % | 1.51 | % | 1.62 | % | |||||||||
| Allowance to impaired loans | 295.17 | 313.08 | 331.19 | ||||||||||||
| Impaired loans to loans | 0.49 | 0.48 | 0.49 | ||||||||||||
| Nonperforming assets to assets | 0.38 | 0.37 | 0.35 | ||||||||||||
| 90 days delinquent to loans | 0.10 | 0.11 | 0.14 | ||||||||||||
| Net charge-offs to average loans | 0.19 | 0.40 | 0.14 |
OLD KENT
Financial
Corporation
|
Five
Quarter Average Balances, Yields and Rates (a)
|
|||||||||||||||
| (Unaudited) | 2nd Quarter 1999 | 1st Quarter 1999 | ||||||||
| (Yields and rates are on a fully taxable- | Ending |
Average
|
Yield/
|
Ending |
Average
|
Yield/
|
||||
| equivalent basis, dollars in millions) | Balance
|
Balance
|
Rate
|
Balance
|
Balance
|
Rate
|
||||
| Assets: | ||||||||||
| Loans: | ||||||||||
| Commercial loans and leases | $6,638 | $6,465 | 8.27 | % | $6,298 | $6,222 | 8.39 | % | ||
| Consumer loans | 3,074 | 2,990 | 8.98 | 2,920 | 2,671 | 9.07 | ||||
| Residential mortgages | 2,090 |
2,043 |
7.65 | 2,046 |
1,986 |
7.58 | ||||
| Total loans | 11,802 | 11,498 | 8.34 | 11,264 | 10,879 | 8.41 | ||||
| Securities | 3,883 | 4,328 | 6.54 | 4,321 | 4,366 | 6.56 | ||||
| Mortgages held-for-sale | 1,383 | 1,616 | 6.83 | 1,441 | 2,127 | 6.79 | ||||
| Other interest - earning assets | 17 |
32 |
4.83 | 33 |
155 |
5.27 | ||||
| Total earning assets | 17,085 | 17,474 | 7.75 | 17,059 | 17,527 | 7.72 | ||||
| Unrealized gain/(loss) on S.A.F.S. | (40 | ) | 2 | 19 | 26 | |||||
| Allowance for credit losses | (190 | ) | (190 | ) | (189 | ) | (188 | ) | ||
| Cash and due from banks | 678 | 651 | 604 | 661 | ||||||
| Goodwill and other intangibles | 146 | 148 | 150 | 149 | ||||||
| Mortgage servicing rights | 281 | 271 | 266 | 240 | ||||||
| Other assets | 772 |
751 |
813 |
760 |
||||||
| Total assets | $18,732
|
$19,107
|
$18,722
|
$19,175
|
||||||
| Liabilities and shareholders' equity: | ||||||||||
| Savings deposits | $5,547 | $5,549 | 2.74 | % | $5,486 | $5,428 | 2.76 | % | ||
| Negotiable and foreign deposits | 1,125 | 1,371 | 4.96 | 1,395 | 1,618 | 5.09 | ||||
| Consumer time deposits | 5,663 |
5,653 |
4.87 | 5,667 |
5,721 |
5.05 | ||||
| Total interest - bearing deposits | 12,335 | 12,573 | 3.94 | 12,548 | 12,767 | 4.08 | ||||
| Federal funds purchased and | ||||||||||
| repurchase agreements | 912 | 1,127 | 4.36 | 908 | 1,145 | 4.35 | ||||
| Other borrowed funds | 1,453 | 1,368 | 5.07 | 1,218 | 1,220 | 5.05 | ||||
| Subordinated debt | 100 | 100 | 6.74 | 100 | 100 | 6.74 | ||||
| Floating rate subordinated securities | 100 |
100 |
6.08 | 100 |
100 |
6.09 | ||||
| Total interest - bearing funds | 14,900 | 15,268 | 4.10 | 14,874 | 15,332 | 4.21 | ||||
| Demand deposits | 2,244 | 2,235 | 2,135 | 2,168 | ||||||
| Other liabilities | 268 | 284 | 361 | 317 | ||||||
| Shareholders' equity: | ||||||||||
| Common
stock, surplus and retained earnings |
1,345 | 1,319 | 1,338 | 1,340 | ||||||
| Net unrealized gain/(loss) on S.A.F.S. | (25 |
) | 1 |
14 |
18 |
|||||
| Total liabilities and | ||||||||||
| shareholders' equity | $18,732
|
$19,107
|
$18,722
|
$19,175
|
||||||
| Selected Ratios | ||||||||||
| Net interest spread | 3.65 | % | 3.51 | % | ||||||
| Net interest income as a percent | ||||||||||
| of average earning assets | 4.16 | % | 4.04 | % | ||||||
| Total equity to total assets | 7.05 | % | 7.22 | % | ||||||
| Tangible equity to tangible assets | 6.32 | % | 6.47 | % | ||||||
| Memoranda | ||||||||||
| Core deposits | 13,454
|
13,437
|
13,288
|
13,317
|
||||||
| Total deposits | 14,579
|
14,808
|
14,683
|
14,935
|
||||||
| Mortgage servicing portfolio | 14,729
|
14,653
|
||||||||
| Mortgage banking full-time equivalent employees | 3,014
|
2,760
|
||||||||
| Total full-time equivalent employees | 8,827
|
8,576
|
||||||||
| (Unaudited) |
| Credit
Quality |
|
|
||||||||
| Ending allowance for credit losses | $190.2 |
$189.3 |
||||||||
| Nonperforming assets: | ||||||||||
| Nonaccrual | 60.1 | 67.2 | ||||||||
| Renegotiated | 3.3 |
3.3 |
||||||||
| Total impaired loans | 63.4 | 70.5 | ||||||||
| Other real estate owned | 6.6 |
7.0 |
||||||||
| Total nonperforming assets | 70.0 |
77.5
|
||||||||
| Loans delinquent over 90 days | 16.1 |
10.6 |
||||||||
| Gross charge-offs | 10.0 | 11.0 | ||||||||
| Recoveries | 5.4 |
4.7 |
||||||||
| Net charge-offs | 4.6 |
6.3 |
||||||||
| Provision for credit losses | 5.5 |
7.3 |
||||||||
| Key Ratios: | ||||||||||
| Allowance to loans | 1.61 | % | 1.68 | % | ||||||
| Allowance to impaired loans | 317.98 | 275.98 | ||||||||
| Impaired loans to loans | 0.51 | 0.61 | ||||||||
| Nonperforming assets to assets | 0.37 | 0.41 | ||||||||
| 90 days delinquent to loans | 0.14 | 0.09 | ||||||||
| Net charge-offs to average loans | 0.16 | 0.23 |
OLD KENT
Financial
Corporation
Credit Loss Reserve Summary
| (Unaudited) | |||||||||
| (Amounts in thousands) | |||||||||
| |
|
|
|
|
|
|
|
|
|
|
Q1-00
|
|
Q4-99
|
|
Q3-99
|
|
Q2-99
|
|
Q1-99
|
|
| |
|
|
|
|
|
|
|
|
|
| Beginning Reserve | $192,805 | $193,788 | $190,206 | $189,306 | $188,111 | ||||
| Provision | 10,372 | 10,620 | 7,608 | 5,514 | 7,346 | ||||
| Net Charge - offs | 6,102 | 11,603 | 4,026 | 4,614 | 6,271 | ||||
| Other | 584 |
0 |
0 |
0 |
120 |
||||
| Ending Reserve | $197,659 |
$192,805 |
$193,788 |
$190,206 |
$189,306 |
||||
| Net Loan Charge - offs | |||||||||
| Commercial Loans | $2,762 | $8,114 | $1,014 | $1,716 | $2,791 | ||||
| Consumer Loans | 2,833 | 3,421 | 2,404 | 2,658 | 3,746 | ||||
| Real Estate - Mortgages | 507 |
68 |
608 |
240 |
(266) |
||||
| Total Net Loan Charge - offs | $6,102 |
$11,603 |
$4,026 |
$4,614 |
$6,271 |
||||
| Net Charge - off Ratio | 0.19% | 0.40% | 0.14% | 0.16% | 0.23% |
OLD KENT
Financial
Corporation
Selected
Mortgage Banking Information
| (Unaudited) | ||||||||||
| For the Quarter Ended | ||||||||||
|
3/31/00
|
12/31/99
|
9/30/99
|
6/30/99
|
3/31/99
|
||||||
|
|
|
|
|
|
||||||
| Net mortgage banking revenue (thousands) |
$42,709
|
$49,721
|
$46,956
|
$49,673
|
$45,140
|
|||||
| Mortgage originations (millions) |
$1,960
|
$2,216
|
$2,739
|
$3,503
|
$3,633
|
|||||
| Retail originations as a percentage of mortgage originaitons |
55%
|
56%
|
55%
|
53%
|
49%
|
|||||
| Home purchases as a percentage of mortgage originations |
72%
|
72%
|
73%
|
56%
|
38%
|
|||||
| Mortgage originations percentage by loan type: |
|
|
|
|
|
|||||
| Conventional loans |
60%
|
56%
|
58%
|
70%
|
75%
|
|||||
| FHA/VA loans |
30%
|
34%
|
33%
|
27%
|
23%
|
|||||
| Sub-prime loans |
10%
|
10%
|
9%
|
3%
|
2%
|
|||||
| Mortgage loan sales (millions) |
$1,819
|
$2,349
|
$2,804
|
$3,330
|
$4,279
|
|||||
| Loans serviced for others (millions) |
$15,358
|
$14,726
|
$15,113
|
$14,729
|
$14,653
|
|||||
| Mortgage servicing rights (millions) |
$287
|
$278
|
$285
|
$282
|
$266
|
|||||
| Servicing portfolio weighted average coupon |
7.54%
|
7.45%
|
7.41%
|
7.38%
|
7.36%
|
|||||
| Number of branch offices/states |
149/31
|
147/32
|
152/31
|
167/32
|
160/32
|
|||||
|
|
|
|
|
|
||||||
|
|
|
|
|
|
||||||
| Mortgage Servicing Rights |
|
|
|
|
|
|||||
| Balance at beginning of period |
$277,544
|
$284,616
|
$281,559
|
$265,652
|
$228,659
|
|||||
| Additions |
51,934
|
45,858
|
54,663
|
68,212
|
91,645
|
|||||
| Sales |
(34,461
|
) |
(43,051
|
) |
(38,181
|
) |
(36,082
|
) |
(38,525)
|
|
| Amortization |
(8,310
|
) |
(9,879
|
) |
(13,425
|
) |
(16,223
|
) |
(16,127)
|
|
| Balance at end of period |
$286,707
|
$277,544
|
$284,616
|
$281,559
|
$265,652
|
|||||
| Estimated fair value of mortgage servicing rights |
$343,000
|
$323,000
|
$340,000
|
$328,000
|
$304,000
|
|||||
