EXHIBIT 99
News Release
Associated 2nd quarter earnings per diluted share up 12 percent
GREEN BAY, Wis. — July 17, 2003 — Associated Banc-Corp (NASDAQ: ASBC) earned $.76 per diluted share in the quarter that ended June 30, 2003, a 12 percent increase from $.68 per diluted share for the same period in 2002. Net income was $56.7 million, compared to $52.3 million for the comparable quarter of 2002.
Return on average assets was 1.51 percent in the second quarter 2003 compared to 1.47 percent in the second quarter of 2002. Return on average equity was 17.37 percent compared to 16.79 percent in the year-earlier quarter.
For the six months ended June 30, 2003, diluted earnings per share were $1.53, up 12 percent from $1.37 per diluted share in the same period in 2002. Return on average assets was 1.55 percent and return on average equity was 17.86 percent, compared to 1.51 percent and 17.58 percent, respectively, for the six months ended June 30, 2002.
“Associated is pleased to have delivered such positive results in the second quarter,” Associated President and CEO Paul Beideman said. “While lower interest rates have put pressure on our net interest margin, they have also contributed to high levels of mortgage production and sales activity, which contributed significantly to our financial results,” he said.
Net interest income was $127 million for the second quarter, compared to $126 million in the year-earlier period, and $127 million for the previous quarter. The net interest margin for second quarter 2003 was 3.79 percent, down from 3.96 percent a year ago and 3.87 percent for first quarter 2003. For the first six months of 2003, net interest income was $255 million, up 5 percent compared to $243 million for the same period of 2002. Net interest margin was 3.83 percent for the first six months of 2003, compared to 3.94 percent for the same period in 2002.
Total loans at the end of the second quarter 2003 were $10.4 billion, an increase of $505 million or 5 percent compared to a year earlier. The growth occurred in commercial loans, up $557 million, or 9 percent, while consumer and residential real estate loans were relatively unchanged compared to a year ago. Total loans, again led by commercial loan growth, were up 4 percent on an annualized basis since March 31, 2003.
Total deposits were $9.5 billion at June 30, 2003, up 5 percent, or $427 million, compared to a year ago. Transaction deposit accounts (demand, savings, interest-bearing demand and money market accounts) were $6.2 billion, up 13 percent over June 30, 2002. Time deposits were $3.3 billion at June 30, 2003, compared to $3.5 billion last year, tempered by the prolonged lower interest rate environment and customer preference to keep funds liquid. Since March 31, 2003, total deposits were up 17 percent on an annualized basis.
The provision for loan losses was $12.1 million for the second quarter of 2003, compared to $12.0 million for the same quarter last year, and $13.0 million for the first quarter in 2003. For the first six months of 2003, the provision for loan losses was $25.1 million, compared to $23.3 million for the same period last year. The ratio of the allowance for loan losses was 1.66 percent of total loans at June 30, 2003, and at March 31, 2003, but up from 1.50 percent at June 30, 2002.
Net chargeoffs for the second quarter of 2003 were $10.1 million, compared to net chargeoffs of $7.6 million for second quarter 2002 and $5.1 million for the first quarter 2003. For the six months that ended June 30, 2003, annualized net chargeoffs were 0.29 percent of average loans, compared to 0.31 percent for the same period last year. Nonperforming loans were $117 million as of June 30, 2003, up from $94.7 million as of March 31, 2003, and $87.3 million a year ago. The increase in nonperforming loans from the first quarter of 2003 is principally related to two customers, one in the construction industry and one in the hospitality industry.
“Most of our commercial customers are managing effectively in the current environment and we are working with them as they plan for the future. We believe any significant improvement in asset quality depends on sustained economic improvement,” Beideman said.
Noninterest income grew to $70.2 million for the second quarter, compared to $49.9 million in the same period of 2002. The continued strong activity in the mortgage and mortgage refinancing market generated $1.2 billion of mortgages for sale into the secondary market for the second quarter of 2003, similar to the $1.1 billion in first quarter 2003, and up significantly from $0.4 billion in the second quarter of 2002. Mortgage banking revenue of $28.8 million in the second quarter of 2003 was nearly three times that of the year-earlier period. In comparison to the first quarter of 2003, noninterest income was up $5.0 million, with $2.7 million of the increase in mortgage banking income, as well as increased insurance revenue attributable primarily to our previously announced acquisition of CFG Insurance Services, Inc. as of April 1, 2003.
Noninterest expense for the second quarter 2003 grew by approximately $12.7 million, or 14 percent, compared to the second quarter of 2002, with $9.1 million of the increase coming from higher mortgage servicing rights expense. While the strong mortgage refinance activity benefited mortgage banking income in the second quarter, it increased the prepayment speeds of Associated’s mortgage portfolio serviced for others, a key factor behind the valuation of mortgage servicing rights. Mortgage servicing rights expense included an $8.5 million addition to the valuation allowance compared to a $.8 million addition in the second quarter of 2002. The mortgage servicing asset at June 30, 2003, represents 0.51 percent of the total $5.5 billion residential mortgage portfolio serviced for others. Compared to first quarter 2003, noninterest expense was up $5.8 million, with $3.0 million of the increase in personnel expense, directly attributable to the addition of CFG personnel, as well as a $1.4 million increase in mortgage servicing rights expense.
“Although our first half results are encouraging, our 2003 goal of 10 percent earnings per share growth was predicated on an improving economy, moderate interest rate increases, and increased confidence among consumers and businesses. While economic stimulus from Washington and recent stock market strength are helpful, a sustained economic recovery may take some time to materialize. The continuation of lower rates will put pressure on our margin, but mortgage banking should remain strong for the rest of the year. We remain cautiously optimistic about our financial performance in 2003,” Beideman said.
The company repurchased 476,000 shares of its common stock during the second quarter of 2003 at an average cost of $36.12 per share. Associated repurchased 1.2 million shares in the first six months of 2003 at an average cost of $34.66 per share.
Associated Banc-Corp, headquartered in Green Bay, Wis., is a diversified multibank holding company with total assets of $15.2 billion. Associated has more than 200 banking offices serving more than 150 communities in Wisconsin, Illinois, and Minnesota. The company offers a full range of traditional banking services and a variety of other financial products and services. More information about Associated Banc-Corp is available at www.AssociatedBank.com.
Statements made in this document which are not purely historical are forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. This includes any statements regarding descriptions of management’s plans, objectives, or goals for future operations, products or services, and forecasts of its revenues, earnings, or other measures of performance. Forward-looking statements are based on current management expectations and, by their nature, are subject to risks and uncertainties. These statements may be identified by the use of words such as “believe,” “expect,” “anticipate,” “plan,” “estimate,” “should,” “will,” “intend,” or similar expressions. Outcomes related to such statements are subject to numerous risk factors and uncertainties including those listed in the company’s Annual Report filed on Form 10-K.
— 30 —
Five pages of tables follow.
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Consolidated Balance Sheets (Unaudited)
Associated Banc-Corp
June 30, December 31, June 30,
(in thousands) 2003 2002 % Change 2002 % Change
- -------------------------------------------------------------------------------------------------------------------
Assets
Cash and due from banks $ 393,882 $ 430,691 (8.5%) $ 346,708 13.6%
Interest-bearing deposits in other
financial institutions 13,456 5,502 144.6% 11,853 13.5%
Federal funds sold and securities purchased
under agreements to resell 14,550 8,820 65.0% 51,275 (71.6%)
Securities available for sale, at fair value 3,374,834 3,362,669 0.4% 3,424,127 (1.4%)
Loans held for sale 392,563 305,836 28.4% 123,520 217.8%
Loans 10,387,364 10,303,225 0.8% 9,882,669 5.1%
Allowance for loan losses (172,440) (162,541) 6.1% (148,733) 15.9%
-------------------------- ---------
Loans, net 10,214,924 10,140,684 0.7% 9,733,936 4.9%
Premises and equipment 131,436 132,713 (1.0%) 134,766 (2.5%)
Goodwill 224,388 212,112 5.8% 212,112 5.8%
Other intangible assets 50,556 41,565 21.6% 47,239 7.0%
Other assets 408,227 402,683 1.4% 391,457 4.3%
-------------------------- ----------
Total assets $15,218,816 $15,043,275 1.2% $14,476,993 5.1%
=========================== ===========
Liabilities and Stockholders' Equity
Noninterest-bearing deposits $ 1,833,703 $ 1,773,699 3.4% $ 1,566,487 17.1%
Interest-bearing deposits, excluding
Brokered CDs 7,456,729 7,117,503 4.8% 7,225,789 3.2%
Brokered CDs 163,028 233,650 (30.2%) 233,968 (30.3%)
-------------------------- ----------
Total deposits 9,453,460 9,124,852 3.6% 9,026,244 4.7%
Short-term borrowings 2,079,371 2,389,607 (13.0%) 2,301,853 (9.7%)
Long-term debt 2,012,968 1,906,845 5.6% 1,513,131 33.0%
Company-obligated mandatorily redeemable
preferred securities 191,549 190,111 0.8% 174,636 9.7%
Accrued expenses and other liabilities 163,222 159,677 2.2% 185,560 (12.0%)
-------------------------- ----------
Total liabilities 13,900,570 13,771,092 0.9% 13,201,424 5.3%
Stockholders' Equity
Preferred stock -- -- -- -- --
Common stock 743 755 (1.6%) 767 (3.1%)
Surplus 606,660 643,956 (5.8%) 682,519 (11.1%)
Retained earnings 664,280 607,944 9.3% 552,554 20.2%
Accumulated other comprehensive income 65,822 60,313 9.1% 72,171 (8.8%)
Treasury stock and other (19,259) (40,785) (52.8%) (32,442) (40.6%)
-------------------------- ----------
Total stockholders' equity 1,318,246 1,272,183 3.6% 1,275,569 3.3%
-------------------------- ----------
Total liabilities and stockholders'
equity $15,218,816 $15,043,275 1.2% $14,476,993 5.1%
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Consolidated Statements of Income (Unaudited)
Associated Banc-Corp
For The Three Months For The Six Months Ended,
Ended,
June 30, June 30,
--------------------------- ---------------------------
(in thousands, except per share amounts) 2003 2002 % Change 2003 2002 % Change
- ------------------------------------------------------------------------------------------------------------------------------
Interest Income
- ---------------
Interest and fees on loans $147,785 $158,321 (6.7%) $296,281 $309,670 (4.3%)
Interest and dividends on investment securities
and deposits with other financial institutions
Taxable 25,923 33,372 (22.3%) 52,720 66,231 (20.4%)
Tax-exempt 9,942 9,988 (0.5%) 19,997 19,968 0.1%
Interest on federal funds sold and securities
purchased under agreements to resell 54 176 (69.3%) 89 294 (69.7%)
Total interest income 183,704 201,857 (9.0%) 369,087 396,163 (6.8%)
Interest Expense
Interest on deposits 31,558 45,560 (30.7%) 63,548 93,789 (32.2%)
Interest on short-term borrowings 8,442 13,840 (39.0%) 17,009 27,495 (38.1%)
Interest on long-term debt and capital
securities 16,509 16,689 (1.1%) 33,881 31,684 6.9%
Total interest expense 56,509 76,089 (25.7%) 114,438 152,968 (25.2%)
Net Interest Income 127,195 125,768 1.1% 254,649 243,195 4.7%
Provision for loan losses 12,132 12,003 1.1% 25,092 23,254 7.9%
Net interest income after provision for
loan losses 115,063 113,765 1.1% 229,557 219,941 4.4%
Noninterest Income
- ------------------
Trust service fees 7,796 7,722 1.0% 14,426 15,093 (4.4%)
Service charges on deposit accounts 12,462 11,733 6.2% 24,273 21,613 12.3%
Mortgage banking 28,845 9,637 199.3% 54,948 22,241 147.1%
Credit card and other nondeposit fees 5,192 7,094 (26.8%) 12,588 13,166 (4.4%)
Retail commissions 7,407 5,885 25.9% 10,710 10,501 2.0%
Bank owned life insurance income 3,450 3,469 (0.5%) 6,841 6,739 1.5%
Asset sale gains (losses), net (790) 41 N/M (668) 372 N/M
Investment securities gains, net 1,027 -- N/M 701 -- N/M
Other 4,771 4,322 10.4% 11,550 7,578 52.4%
Total noninterest income 70,160 49,903 40.6% 135,369 97,303 39.1%
Noninterest Expense
- -------------------
Personnel expense 53,245 48,764 9.2% 103,480 93,758 10.4%
Occupancy 7,151 6,650 7.5% 14,266 12,787 11.6%
Equipment 3,190 3,727 (14.4%) 6,434 7,217 (10.8%)
Data processing 5,602 5,304 5.6% 11,220 10,107 11.0%
Business development and advertising 3,553 3,126 13.7% 6,916 6,572 5.2%
Stationery and supplies 1,634 1,786 (8.5%) 3,313 3,830 (13.5%)
FDIC expense 359 402 (10.7%) 725 774 (6.3%)
Mortgage servicing rights expense 13,021 3,874 236.1% 24,619 6,771 263.6%
Other intangible amortization 870 634 37.2% 1,220 1,098 11.1%
Loan expense 950 3,534 (73.1%) 4,298 6,313 (31.9%)
Other 14,344 13,386 7.2% 25,585 24,376 5.0%
Total noninterest expense 103,919 91,187 14.0% 202,076 173,603 16.4%
Income before income taxes 81,304 72,481 12.2% 162,850 143,641 13.4%
Income tax expense 24,635 20,137 22.3% 48,188 39,835 21.0%
Net Income $56,669 $52,344 8.3% $114,662 $103,806 10.5%
Earnings Per Share:
Basic $ 0.77 $ 0.69 11.6% $ 1.55 $1.39 11.5%
Diluted $ 0.76 $ 0.68 11.8% $ 1.53 $1.37 11.7%
Average Shares Outstanding:
Basic 73,959 75,922 (2.6%) 74,104 74,540 (0.6%)
Diluted 74,683 77,041 (3.1%) 74,777 75,510 (1.0%)
N/M - Not meaningful.
Selected Quarterly Information
Associated Banc-Corp
- ----------------------------------------------------------------------------------------------------------------------------------
YTD YTD 2nd Qtr 1st Qtr 4th Qtr 3rd Qtr 2nd Qtr
(in thousands, except per share data) 2003 2002 2003 2003 2002 2002 2002
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Summary of Operations
- ---------------------
Net interest income 254,649 243,195 127,195 127,454 129,713 128,358 125,768
Provision for loan losses 25,092 23,254 12,132 12,960 14,614 12,831 12,003
Net interest income after provision
for loan losses 229,557 219,941 115,063 114,494 115,099 115,527 113,765
Asset sale gains (losses), net (668) 372 (790) 122 (373) 658 41
Investment securities gains (losses),
net 701 -- 1,027 (326) (801) 374 --
Noninterest income (excluding
securities & asset gains) 135,336 96,931 69,923 65,413 65,523 57,624 49,862
Noninterest expense 202,076 173,603 103,919 98,157 102,763 98,183 91,187
Income taxes 48,188 39,835 24,635 23,553 23,244 22,528 20,137
Net income 114,662 103,806 56,669 57,993 53,441 53,472 52,344
Taxable equivalent adjustment 12,508 12,100 6,231 6,277 5,981 5,991 6,037
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Per Common Share Data (1)
- -------------------------
Net income:
Basic $ 1.55 $ 1.39 $ 0.77 $ 0.78 $ 0.72 $ 0.71 $ 0.69
Diluted 1.53 1.37 0.76 0.77 0.71 0.70 0.68
Dividends 0.65 0.59 0.34 0.31 0.31 0.31 0.31
Market Value:
High $ 38.41 $ 38.25 $ 38.41 $ 35.22 $ 34.21 $ 36.96 $ 38.25
Low 32.15 30.37 32.15 32.33 27.20 30.64 33.63
Close 36.61 37.71 36.61 32.33 33.94 31.73 37.71
Book value 17.88 16.84 17.88 17.41 17.13 17.03 16.84
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Performance Ratios (annualized)
- -------------------------------
Net interest margin (FTE) 3.83% 3.94% 3.79% 3.87% 3.87% 3.96% 3.96%
Return on average assets 1.55 1.51 1.51 1.58 1.42 1.47 1.47
Return on average equity 17.86 17.58 17.37 18.36 16.62 16.73 16.79
Efficiency ratio (2) 50.21 49.29 51.10 49.29 51.07 51.14 50.19
Effective tax rate 29.59 27.73 30.30 28.88 30.31 29.64 27.78
Dividend payout ratio (basic) 41.94 42.58 44.16 39.74 43.06 43.66 44.93
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Average Balances
- ----------------
Assets $14,942,330 $13,907,262 $15,016,497 $14,867,339 $14,901,747 $14,460,358 $14,273,232
Earning assets 13,914,288 12,934,385 13,991,615 13,836,102 13,870,491 13,427,986 13,248,590
Interest-bearing liabilities 11,914,412 11,163,244 11,941,877 11,886,642 11,792,552 11,459,673 11,400,302
Loans 10,661,386 9,655,626 10,743,430 10,578,430 10,559,154 10,128,826 9,902,462
Deposits 9,011,930 8,883,742 9,121,204 8,901,441 8,934,668 8,947,047 9,081,434
Stockholders' equity 1,294,804 1,191,063 1,308,505 1,280,950 1,275,914 1,268,355 1,250,748
Stockholders' equity / assets 8.67% 8.56% 8.71% 8.62 8.56% 8.77% 8.76%
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At Period End
- -------------
Assets $15,218,816 $15,089,166 $15,043,275 $15,044,702 $14,476,993
Loans 10,387,364 10,275,469 10,303,225 10,086,510 9,882,669
Allowance for loan losses 172,440 170,391 162,541 155,288 148,733
Deposits 9,453,460 9,060,234 9,124,852 8,947,353 9,026,244
Stockholders' equity 1,318,246 1,285,866 1,272,183 1,270,691 1,275,569
Stockholders' equity / assets 8.66% 8.52% 8.46% 8.45% 8.81%
Shares outstanding, end of period 73,736 73,870 74,281 74,598 75,746
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(1) Per share data adjusted retroactively for stock splits and stock dividends.
(2) Efficiency ratio = Noninterest expense divided by sum of taxable equivalent
net interest income plus noninterest income, excluding investment
securities gains, net, and asset sales gains, net.
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Financial Summary and Comparison
Associated Banc-Corp Three months ended Six months ended
June 30, June 30,
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(in thousands, except per share data) 2003 2002 % Change 2003 2002 % Change
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Allowance for Loan Losses
- ------------------------
Beginning balance $170,391 $144,350 18.0% $162,541 $128,204 26.8%
Balance related to acquisitions -- -- -- -- 11,985 N/M
Provision for loan losses 12,132 12,003 1.1% 25,092 23,254 7.9%
Charge offs (11,537) (8,802) 31.1% (17,291) (16,787) 3.0%
Recoveries 1,454 1,182 23.0% 2,098 2,077 1.0%
--------------------- --------------------
Net charge offs (10,083) (7,620) 32.3% (15,193) (14,710) 3.3%
--------------------- --------------------
Ending Balance $172,440 $148,733 15.9% $172,440 $148,733 15.9%
===================== ====================
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Credit Quality 2nd Qtr 1st Qtr 4th Qtr 3rd Qtr 2nd Qtr
- -------------- 2003 2003 % Change 2002 2002 2002
---------------------------------------------------------------------------
Nonaccrual loans $110,820 $90,384 22.6% $ 94,132 $ 93,250 $ 82,474
Loans 90 or more days past due and
still accruing (1) 6,311 3,425 84.3% 3,912 5,981 4,683
Restructured loans 46 844 (94.5%) 1,258 1,110 115
------------------------ --------------------------------
Total nonperforming loans 117,177 94,653 23.8% 99,302 100,341 87,272
Other real estate owned 14,707 12,949 13.6% 11,448 3,331 2,610
------------------------ --------------------------------
Total nonperforming assets 131,884 107,602 22.6% 110,750 103,672 89,882
======================== ================================
Net charge offs 10,083 5,110 97.3% 7,361 6,276 7,620
Allowance for loan losses/loans 1.66% 1.66% 1.58% 1.54% 1.50%
Allowance for loan losses/
nonperforming loans 147.16 180.02 163.68 154.76 170.42
Nonperforming loans/total loans 1.13 0.92 0.96 0.99 0.88
Nonperforming assets/total assets 0.87 0.71 0.74 0.69 0.62
Net charge offs/average loans
(annualized) 0.38 0.20 0.28 0.25 0.31
Year-to-date net charge offs/average
loans 0.29 0.20 0.28 0.29 0.31
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Period End Loan Composition
- --------------------------- June 30, Dec 31, June 30,
2003 2002 % Change 2002 % Change
------------------------------------- ------------------------
Commercial, financial & agricultural $ 2,312,143 $ 2,213,986 4.4% $2,127,665 8.7%
Real estate-construction 975,415 910,581 7.1% 821,658 18.7%
Commercial real estate 3,255,918 3,128,826 4.1% 3,037,284 7.2%
Lease financing 38,666 38,352 0.8% 38,212 1.2%
------------------------ ----------
Commercial 6,582,142 6,291,745 4.6% 6,024,819 9.3%
Residential mortgage 2,202,690 2,430,746 (9.4%) 2,364,373 ( 6.8%)
Home equity 895,952 864,631 3.6% 777,347 15.3%
------------------------ ----------
Residential real estate 3,098,642 3,295,377 (6.0%) 3,141,720 (1.4%)
Consumer 706,580 716,103 (1.3%) 716,130 (1.3%)
------------------------ ----------
Total loans $10,387,364 $10,303,225 0.8% $9,882,669 5.1%
========================= ==========
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Period End Deposit Composition
- ------------------------------ June 30, Dec 31, June 30,
2003 2002 % Change 2002 % Change
------------------------------------- ------------------------
Demand $ 1,833,703 $ 1,773,699 3.4% $1,566,487 17.1%
Savings 942,027 895,855 5.2% 912,019 3.3%
Interest-bearing demand 1,797,065 1,468,193 22.4% 1,113,342 61.4%
Money market 1,598,317 1,754,313 (8.9%) 1,888,165 (15.4%)
Brokered CDs 163,028 233,650 (30.2%) 233,968 (30.3%)
Other time deposits 3,119,320 2,999,142 4.0% 3,312,263 (5.8%)
------------------------ ---------
Total deposits $ 9,453,460 $ 9,124,852 3.6% $9,026,244 4.7%
======================== ==========
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N/M = Not Meaningful
(1) Does not include guaranteed student loans. Guaranteed student loans 90+
days past due and still accruing totaled $16.0 million as of June 30, 2003.
- --------------------------------------------------------------------------------------------------------
Net Interest Income Analysis - Taxable Equivalent Basis
Associated Banc-Corp
Six months ended June 30, 2003 Six months ended June 30, 2002
----------------------------------------------------------------------
Interest Average Interest Average
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate
----------------------------------------------------------------------
Earning assets:
Loans: (1) (2) (3)
Commercial $ 6,399,244 $166,188 5.17% $ 5,720,820 $171,459 5.96%
Residential real estate 3,551,134 104,600 5.92 3,234,762 110,397 6.85
Consumer 711,008 26,003 7.37 700,044 28,393 8.17
---------------------- ----------------------
Total loans 10,661,386 296,791 5.56 9,655,626 310,249 6.42
Investments and other 3,252,902 84,804 5.22 3,278,759 98,014 5.98
---------------------- ----------------------
Total earning assets 13,914,288 381,595 5.48 12,934,385 408,263 6.31
Other assets, net 1,028,042 972,877
---------- ----------
Total assets $14,942,330 $13,907,262
=========== ===========
Interest-bearing liabilities:
Savings deposits $ 927,413 $ 2,884 0.63% $ 864,914 $ 3,329 0.78%
Interest-bearing demand
deposits 1,591,942 6,925 0.88 983,399 3,427 0.70
Money market deposits 1,668,467 8,264 1.00 1,950,679 13,466 1.39
Time deposits, excluding
Brokered CDs 3,032,656 43,614 2.90 3,403,593 70,393 4.17
----------------------- -----------------------
Total interest-bearing
deposits, excluding
Brokered CDs 7,220,478 61,687 1.72 7,202,585 90,615 2.54
Brokered CDs 203,484 1,861 1.84 307,796 3,174 2.08
----------------------- -----------------------
Total interest-bearing
deposits 7,423,962 63,548 1.73 7,510,381 93,789 2.52
Wholesale funding 4,490,450 50,890 2.26 3,652,863 59,179 3.22
----------------------- -----------------------
Total interest-bearing
liabilities 11,914,412 114,438 1.93 11,163,244 152,968 2.75
Noninterest-bearing demand 1,587,968 1,373,361
Other liabilities 145,146 179,594
Stockholders' equity 1,294,804 1,191,063
----------- -----------
Total liabilities and
stockholders' equity $14,942,330 $13,907,262
=========== ===========
-------- --------
Net interest income and rate
spread (1) $267,157 3.55% $255,295 3.56%
======== ========
Net interest margin (1) 3.83% 3.94%
Taxable equivalent adjustment $ 12,508 $ 12,100
======== ========
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Three months ended June 30, 2003 Three months ended June 30, 2002
----------------------------------------------------------------------
Interest Average Interest Average
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate
----------------------------------------------------------------------
Earning assets:
Loans: (1) (2) (3)
Commercial $ 6,470,954 $ 83,333 5.10% $ 5,968,167 $ 89,365 5.93%
Residential real estate 3,564,125 51,778 5.81 3,217,681 54,540 6.78
Consumer 708,351 12,940 7.32 716,614 14,690 8.22
------------------------- -----------------------
Total loans 10,743,430 148,051 5.48 9,902,462 158,595 6.37
Investments and other 3,248,185 41,884 5.16 3,346,128 49,299 5.89
------------------------ -----------------------
Total earning assets 13,991,615 189,935 5.41 13,248,590 207,894 6.25
Other assets, net 1,024,882 1,024,642
---------- -----------
Total assets $15,016,497 $14,273,232
=========== ===========
Interest-bearing liabilities:
Savings deposits $ 945,048 $ 1,431 0.61% $ 900,471 $ 1,769 0.79%
Interest-bearing demand
deposits 1,696,412 3,812 0.90 1,038,413 1,927 0.74
Money market deposits 1,632,710 3,999 0.98 1,992,669 6,751 1.36
Time deposits, excluding
Brokered CDs 3,052,513 21,549 2.83 3,411,891 33,580 3.95
------------------------ -----------------------
Total interest-bearing
deposits, excluding
Brokered CDs 7,326,683 30,791 1.69 7,343,444 44,027 2.40
Brokered CDs 174,748 767 1.76 289,676 1,533 2.12
------------------------ -----------------------
Total interest-bearing
deposits 7,501,431 31,558 1.69 7,633,120 45,560 2.39
Wholesale funding 4,440,446 24,951 2.23 3,767,182 30,529 3.21
------------------------ -----------------------
Total interest-bearing
liabilities 11,941,877 56,509 1.89 11,400,302 76,089 2.66
Noninterest-bearing demand 1,619,773 1,448,314
Other liabilities 146,342 173,868
Stockholders' equity 1,308,505 1,250,748
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Total liabilities and
stockholders' equity $15,016,497 $14,273,232
=========== ===========
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Net interest income and rate
spread (1) $133,426 3.52% $131,805 3.59%
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Net interest margin (1) 3.79% 3.96%
Taxable equivalent adjustment $ 6,231 $ 6,037
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(1) The yield on tax exempt loans and securities is computed on a taxable
equivalent basis using a tax rate of 35% for all periods presented and is
net of the effects of certain disallowed interest deductions.
(2) Nonaccrual loans and loans held for sale have been included in the average
balances.
(3) nterest income includes net loan fees.