SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported):April 19, 2004
CHARTER ONE FINANCIAL, INC.
(Exact name of registrant as specified in its charter)
Delaware | 001-15495 | 34-1567092 | ||
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||
1215 Superior Avenue, Cleveland, Ohio (Address of principal executive offices) | 44114 (Zip Code) |
(216) 566-5300
(Registrant’s telephone number, including area code)
NOT APPLICABLE
(Former name or former address, if changed since report)
ITEM 12. Results of Operations and Financial Condition
On April 19, 2004, the Registrant issued the following earnings release for the quarterly period ended March 31, 2004:
News Release
CONTACT: ELLEN BATKIE (800) 262-6301
CHARTER ONE ANNOUNCES FIRST QTR 2004 FINANCIAL RESULTS
Highlights for the quarter ended 3/31/04:
• | Net earnings of $.22 per share; $.71 per share before debt prepayment penalty | |
• | Opened 24 banking centers; total now 616 locations, up 29% in 12 months | |
• | Deposit-related revenue up 21% over 1Q 2003 | |
• | Retail checking accounts up 58,900 in 1Q 2004, an annualized rate of 16%; up 13% in 12 months | |
• | Noninterest-bearing deposits (excluding custodial balances) up $853 million in 1Q 2004; up $1.4 billion, or 80%, in 12 months | |
• | Permanent single-family loans and MBSs down $1.9 billion in 1Q 2004 and $5.3 billion since 6/30/03 | |
• | Non-single family lending portfolio up annualized 14% in 1Q 2004; 19% in 12 months | |
• | Net yield of 3.04% for 1Q 2004, up from 2.84% in 4Q 2003 and 2.99% in 1Q 2003 | |
• | Annualized net charge-offs of .24% of loans and leases, down from .32% in 4Q 2003 and .52% in 1Q 2003 | |
• | NPAs .67% to loans, down from .73% at 12/31/03 |
CLEVELAND, Ohio, April 19, 2004 — Charter One Financial, Inc. (NYSE:CF), the holding company of Charter One Bank, N.A., today reported net income of $50.3 million, or $.22 per diluted share, for the three months ended March 31, 2004. The quarter included $113.1 million, or $.49 per diluted share, in after-tax charges resulting from the prepayment of long-term debt positions. Because of the unusual nature of the debt prepayment, we believe it is important for comparability purposes to present selected financial information excluding the debt prepayment penalty. Earnings for the three months ended March 31, 2004 excluding the prepayment penalty were $163.3 million, or $.71 per diluted share, up 10.9% from $.64 per diluted share reported in the year-ago quarter.
Including the debt prepayment penalty, net income for the quarter generated annualized returns of .47% on average assets, 6.18% on average equity, and 7.21% on average tangible equity. The prepayment penalty reduced the annualized return on average assets by 1.06%, the annualized return of average equity by 13.91%, and the annualized return on average tangible equity by 16.14%. Excluding the debt prepayment penalty, the annualized returns were 1.53% on average assets, 20.09% on average equity, and 23.35% on average tangible equity. In the year-ago quarter, the returns were 1.38% on average assets, 18.48% on average equity and 21.29% on average tangible equity.
“We have a great deal to be pleased with coming out of the first quarter,” commented Charles John Koch, Charter One’s Chairman and Chief Executive Officer. “First and foremost, last year’s retail momentum carried through to this quarter. The easiest benchmarks to point to include the $853 million increase (excluding custodial balances) in noninterest-bearing deposits since year end, and the 21% year-over-year increase in deposit-related revenue. The rollout of new banking centers continued unabated and results are surpassing our expectations. We operate through 29% more banking centers today than a year ago, and continue to realize the benefits of the expansion initiated in 2003.
“Another major highlight was the $1.9 billion decrease in the combined single-family loan and security position during the quarter. This reduction was made possible by the decision we announced in January to prepay $2.3 billion in high-cost debt. The combined single-family loan and security position was $17.4 billion at March 31, 2004, down $5.3 billion, a dramatic 23% reduction, since June 30, 2003, when we established a goal to significantly reduce our overall single-family exposure. Finally, we posted very solid credit quality metrics in the first quarter with annualized net charge-offs of .24% of loans and the ratio of nonperforming assets to loans declining to .67% from .73% at the beginning of the year.
“Based on the strength of these results, and the pipeline of activity we see in process, we are comfortable confirming our original expectation for 2004 earnings, including the debt prepayment penalty, in the range of $2.41 to $2.51 per share. Excluding the prepayment penalty of $.49 per share, the anticipated range for 2004 is $2.90 to $3.00 per share.”
Overview
Net yield and net interest income — Net interest margin, or net yield, was 3.04% during the three months ended March 31, 2004, up from 2.84% during the fourth quarter of 2003 and 2.99% during the year-ago quarter. The improvement was attributable to the increase in average noninterest-bearing deposits, as well as two months’ benefit from the prepayment of $2.3 billion in fixed-rate FHLB advances that carried an average rate of 6.27%.
The increase in net yield drove an increase in net interest income during the first quarter of 2004. Net interest income totaled $304.6 million in the three months ended March 31, 2004, compared to $299.0 million in the same period last year and $289.2 million in the fourth quarter of 2003.
Net gains (losses) — During the first quarter of 2004, we reported net losses of $91.0 million as part of Other Income. This included the $164.5 million penalty from prepaying the debt positions, offset by $73.5 million in net gains primarily from the sale of $3.2 billion of mortgage-backed securities. As of March 31, 2004, there were approximately $91.4 million in unrealized pretax gains in the mortgage-backed securities portfolio.
Operating expenses — Administrative expenses totaled $218.0 million in the three months ended March 31, 2004, essentially unchanged from the previous quarter and up 19% from the year-ago quarter. We continued to dedicate significant marketing resources to support our successful retail banking strategy and other franchise enhancing initiatives. Marketing costs were $28.8 million for the first quarter of 2004, compared to $24.0 million in the previous quarter and $13.6 million
2
in the year-ago quarter. The higher level of expenses also included operating 139 more banking centers than a year earlier (a 29% increase in locations). Because of the penalty associated with the debt prepayment, the stated efficiency ratio was an artificially high 70.39% for the first quarter of 2004. Excluding the $164.5 million penalty, the “normalized” efficiency ratio was 45.98% for the three months ended March 31, 2004, compared to 46.61% for the fourth quarter of 2003 and 39.77% for the first quarter of 2003.
Deposits and Related Revenue
Deposits — As was the case in 2003, our 2004 business plan continues our emphasis on noninterest-bearing deposits. Noninterest-bearing deposits (excluding custodial balances) increased to $3.0 billion at March 31, 2004, up $853 million during the quarter and $1.4 billion, or 80%, in the past 12 months. Retail noninterest-bearing deposits now represent 11% of total retail deposits, up from 8% just three months ago and 6% a year ago. Custodial balances totaled $424 million at March 31, 2004, $355 million at December 31, 2003, and $705 million at March 31, 2003.
The success of our overall checking account sales campaigns was clearly illustrated by the strong net growth in the number of checking accounts, which increased by 58,900, or an annualized rate of 16%, during the quarter, and by 175,700, or 13%, in the past 12 months. We ended the first quarter with 1,524,800 checking accounts, up from 1,465,900 accounts at December 31, 2003 and 1,349,100 at March 31, 2003.
Total deposits were $26.9 billion at March 31, 2004, down $264 million in the first quarter, primarily due to a reduction in higher cost CD balances. Core deposits (checking, money market and savings accounts) accounted for $16.8 billion, or 62% of the total. Small business deposits, which are included in core deposits, increased to $2.3 billion at March 31, 2004, up $182 million, or 9%, during the first quarter, and $726 million, or 46%, in the past 12 months.
Retail banking revenue — Retail banking revenue totaled $99.6 million for the three months ended March 31, 2004, up 18% from the comparable 2003 quarter. The largest component of retail banking revenue is deposit-related revenue, which was driven primarily by the success we have had in attracting checking accounts. Deposit-related revenue totaled $87.0 million during the first quarter of 2004, up 21% over the first quarter of 2003. While comparability of the two quarters was masked by the impact of the MasterCard settlement that went into effect in August 2003, it is meaningful that the first quarter of 2004 debit card revenue ran at “pre-settlement” levels, indicating increased volumes have offset reduced interchange fees. The other components of retail banking revenue include fees from retail brokerage activities ($8.4 million, up 1% from the year-ago quarter), and other revenue related to retail operations ($4.2 million, up 16%).
Retail expansion update —During 2003, we initiated an aggressive de novo expansion plan, opening 118 net new banking centers in the year. For 2004, our plan is to continue the expansion with approximately 125 additional banking centers during the year, including approximately 73 in-store locations. During the first quarter, we opened 24 net new banking centers, including 14 in-store locations and 10 traditional locations.
3
Loans, Mortgage-Backed Securities and Mortgage Banking
Lending portfolio growth —Loans and leases before reserves totaled $30.2 billion at March 31, 2004, up 19% in the past 12 months and an annualized 21% in the quarter. Non-single family loans totaled $20.5 billion at March 31, 2004, up $3.2 billion, or 19% in the past 12 months, and $676 million in the quarter, a 14% annualized growth rate. The non-single family growth was led by a three-month increase of $526 million (up 10%, 38% annualized) in retail consumer loans (principally home equity lines and loans), $93 million (up 4%, 15% annualized) in commercial real estate loans, and $100 million (up 6%, 24% annualized) in corporate banking loans. Small business loans now represent $801 million of the $1.8 billion corporate banking portfolio, up 6% (23% annualized) from $757 million at the end of 2003. Single-family residential loans increased by $860 million during the quarter, up 10% (39% annualized).
Mortgage-backed securities available for sale —Mortgage-backed securities available for sale totaled $7.5 billion at March 31, 2004, down $2.7 billion, or 27%, during the quarter. At March 31, 2004, 7% of the portfolio was in floating-rate securities and 93% in fixed-rate securities that had an estimated duration of approximately 3.2 years.
Mortgage banking revenue — The mortgage banking category includes revenue associated with our mortgage banking operations, adjusted by the amortization and valuation adjustments related to its mortgage servicing rights asset (“MSR”). During the first quarter of 2004, MSR-related adjustments reduced revenue by $29.7 million, including a $13.1 million impairment in the value of MSRs, and a $16.7 million increase in the MSR valuation allowance to $99.3 million at March 31, 2004. The total mortgage banking revenue, excluding MSR-related adjustments, was $13.0 million in the first quarter of 2004, down from $20.6 million in the year-ago quarter. The reduction was due primarily to lower mortgage production during the first quarter of 2004. The portfolio serviced for others totaled $16.1 billion at March 31, 2004, and carried a weighted average coupon of 6.09%. The related MSR is now .88% of the portfolio at $142 million. With an average servicing spread of 35.6 basis points, that translates into an MSR valuation of 2.5 times the servicing spread.
Leasing operations — Income from leasing operations was $2.1 million in the first quarter of 2004, compared with a loss of $6.9 million in the first quarter of 2003. The loss in the year-ago quarter was attributable to residual value adjustments.
Credit quality and allowance for loan losses — Net charge-offs during the first quarter of 2004 totaled $17.5 million, or .24% of average loans and leases (annualized), down from .32% in the fourth quarter of 2003 and .52% in the first quarter of 2003. The allowance for loan and lease losses totaled $385 million at March 31, 2004, which was 1.28% of total loans and leases at March 31, 2004, and represented 5.5 years coverage of annualized first-quarter net charge-offs.
At March 31, 2004, nonperforming assets totaled $199 million or .67% of loans, leases and collateral owned, down from $206 million and .73% at December 31, 2003. Underperforming assets (including nonperforming assets, troubled debt restructuring and loans delinquent 90 days and still accruing) totaled $240 million or .81% of loans, leases and collateral owned, down from $251 million and .89% at December 31, 2003.
4
Stock repurchase update — On April 23, 2002, the Board of Directors authorized a repurchase program that permits the repurchase of 10% of its outstanding shares, or approximately 22 million shares. We repurchased 1,737,100 shares under the authorization during the first quarter of 2004 at an average cost of $35.73 per share. As of March 31, 2004, the total repurchased shares under the current authorization was 17.3 million shares at an average cost of $31.48 per share, leaving approximately 5 million shares remaining under the program.
Company profile —Charter One has more than $41 billion in total assets, making it one of the 25 largest bank holding companies in the country. The Bank has 616 banking center locations in Ohio, Michigan, New York, Illinois, Massachusetts, Vermont, Indiana, Connecticut and Pennsylvania. Charter One’s diverse product set includes: consumer banking, indirect auto finance, commercial leasing, business lending, commercial real estate lending, mortgage banking, and retail investment products. For additional information, including press releases, investor presentations, committee charters, and reports filed with the SEC, investors are directed to Charter One’s web site: www.charterone.com.
We have scheduled a conference call to discuss quarterly results for 10:00 a.m. eastern time on Tuesday, April 20, 2004. To participate in the call, dial (888) 428-4479 and ask for the Charter One 1st quarter earnings call. The call is available on a replay basis until April 27, 2004 by dialing (320) 365-3844, access code 725735. Alternatively, the call will be available through Charter One’s website, both on a live and a replay basis.
Forward-Looking Information
####
5
CHARTER ONE FINANCIAL, INC.
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
Three Months Ended | ||||||||||||||||||||
3/31/04 | 12/31/03 | 9/30/03 | 6/30/03 | 3/31/03 | ||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||||||
Interest income: | ||||||||||||||||||||
Loans and leases | $ | 367,344 | $ | 376,741 | $ | 368,952 | $ | 367,602 | $ | 377,724 | ||||||||||
Mortgage-backed securities: | ||||||||||||||||||||
Available for sale | 107,667 | 118,903 | 129,695 | 154,490 | 149,311 | |||||||||||||||
Held to maturity | 3,371 | 4,065 | 5,326 | 6,858 | 8,269 | |||||||||||||||
Investment securities: | ||||||||||||||||||||
Available for sale | 3,604 | 3,590 | 3,563 | 3,297 | 3,043 | |||||||||||||||
Held to maturity | 48 | 48 | 51 | 56 | 54 | |||||||||||||||
Other interest-earning assets | 7,793 | 7,619 | 7,531 | 7,856 | 7,385 | |||||||||||||||
Total interest income | 489,827 | 510,966 | 515,118 | 540,159 | 545,786 | |||||||||||||||
Interest expense: | ||||||||||||||||||||
Deposits | 95,886 | 110,746 | 115,862 | 126,734 | 133,743 | |||||||||||||||
Federal Home Loan Bank advances | 76,247 | 97,385 | 100,813 | 104,025 | 99,799 | |||||||||||||||
Other borrowings | 13,140 | 13,678 | 13,185 | 13,969 | 13,203 | |||||||||||||||
Total interest expense | 185,273 | 221,809 | 229,860 | 244,728 | 246,745 | |||||||||||||||
Net interest income | 304,554 | 289,157 | 285,258 | 295,431 | 299,041 | |||||||||||||||
Provision for loan and lease losses | 18,616 | 17,778 | 37,663 | 35,360 | 61,471 | |||||||||||||||
Net interest income after provision for loan and lease losses | 285,938 | 271,379 | 247,595 | 260,071 | 237,570 | |||||||||||||||
Other income: | ||||||||||||||||||||
Retail banking | 99,613 | 102,593 | 94,183 | 97,087 | 84,100 | |||||||||||||||
Mortgage banking | (16,682 | ) | 3,240 | 65,604 | (23,895 | ) | (27 | ) | ||||||||||||
Leasing operations | 2,125 | 1,668 | (4,118 | ) | (12,230 | ) | (6,856 | ) | ||||||||||||
Net gains (losses) | (91,027 | ) | 63,274 | 16,112 | 108,549 | 76,653 | ||||||||||||||
Bank owned life insurance and other | 11,168 | 7,489 | 8,638 | 8,450 | 7,956 | |||||||||||||||
Total other income | 5,197 | 178,264 | 180,419 | 177,961 | 161,826 | |||||||||||||||
Administrative expenses: | ||||||||||||||||||||
Compensation and employee benefits | 101,968 | 101,612 | 92,582 | 90,790 | 87,056 | |||||||||||||||
Net occupancy and equipment | 34,349 | 34,124 | 31,985 | 30,466 | 31,186 | |||||||||||||||
Marketing expenses | 28,809 | 24,010 | 22,411 | 20,205 | 13,647 | |||||||||||||||
Federal deposit insurance premiums | 1,083 | 1,066 | 1,118 | 1,125 | 1,142 | |||||||||||||||
Other administrative expenses | 51,826 | 57,034 | 46,733 | 52,168 | 50,261 | |||||||||||||||
Total administrative expenses | 218,035 | 217,846 | 194,829 | 194,754 | 183,292 | |||||||||||||||
Income before income taxes | 73,100 | 231,797 | 233,185 | 243,278 | 216,104 | |||||||||||||||
Income taxes | 22,844 | 73,583 | 74,036 | 77,241 | 68,613 | |||||||||||||||
Net income | $ | 50,256 | $ | 158,214 | $ | 159,149 | $ | 166,037 | $ | 147,491 | ||||||||||
Basic earnings per share | $ | .22 | $ | .71 | $ | .71 | $ | .74 | $ | .66 | ||||||||||
Diluted earnings per share | $ | .22 | $ | .69 | $ | .69 | $ | .72 | $ | .64 | ||||||||||
Average common shares outstanding: | ||||||||||||||||||||
Basic | 223,533,656 | 222,720,197 | 224,399,805 | 225,501,687 | 224,997,398 | |||||||||||||||
Diluted | 230,219,061 | 228,809,671 | 230,661,929 | 231,095,694 | 230,460,847 | |||||||||||||||
Cash dividends declared per share | $ | .26 | $ | .26 | $ | .26 | $ | .24 | $ | .22 | ||||||||||
6
CHARTER ONE FINANCIAL, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(unaudited)
3/31/04 | 12/31/03 | 9/30/03 | 6/30/03 | 3/31/03 | ||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and deposits with banks | $ | 543,962 | $ | 527,649 | $ | 526,534 | $ | 586,018 | $ | 507,726 | ||||||||||
Federal funds sold and other | 518 | 517 | 516 | 10,514 | 1,350,513 | |||||||||||||||
Total cash and cash equivalents | 544,480 | 528,166 | 527,050 | 596,532 | 1,858,239 | |||||||||||||||
Investments securities: | ||||||||||||||||||||
Available for sale | 231,967 | 273,260 | 270,511 | 336,126 | 227,137 | |||||||||||||||
Held to maturity | 3,696 | 3,505 | 3,952 | 3,691 | 4,157 | |||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||
Available for sale | 7,475,140 | 10,193,798 | 11,078,285 | 14,313,397 | 12,799,506 | |||||||||||||||
Held to maturity | 212,124 | 251,449 | 292,336 | 362,768 | 445,207 | |||||||||||||||
Loans and leases, net | 29,652,925 | 28,130,017 | 27,735,087 | 25,127,882 | 24,685,258 | |||||||||||||||
Loans held for sale | 132,507 | 120,431 | 296,078 | 362,270 | 291,729 | |||||||||||||||
Bank owned life insurance | 837,140 | 828,678 | 823,676 | 834,337 | 837,660 | |||||||||||||||
Federal Home Loan Bank and Federal Reserve Bank stock | 706,358 | 705,244 | 700,170 | 694,073 | 679,339 | |||||||||||||||
Premises and equipment, net | 417,908 | 404,086 | 391,615 | 375,256 | 355,084 | |||||||||||||||
Accrued interest receivable | 132,215 | 140,857 | 147,254 | 153,346 | 149,989 | |||||||||||||||
Real estate and other collateral owned | 30,127 | 36,643 | 48,198 | 40,220 | 42,106 | |||||||||||||||
Mortgage servicing rights, net | 142,340 | 177,244 | 168,697 | 115,242 | 139,085 | |||||||||||||||
Goodwill | 415,696 | 415,696 | 415,696 | 433,014 | 386,372 | |||||||||||||||
Other assets | 344,306 | 418,992 | 380,647 | 386,785 | 347,735 | |||||||||||||||
Total assets | $ | 41,278,929 | $ | 42,628,066 | $ | 43,279,252 | $ | 44,134,939 | $ | 43,248,603 | ||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Checking accounts: | ||||||||||||||||||||
Interest-bearing | $ | 4,944,405 | $ | 5,666,346 | $ | 5,810,478 | $ | 6,493,279 | $ | 7,267,602 | ||||||||||
Noninterest-bearing | 3,454,577 | 2,532,616 | 2,760,848 | 2,656,047 | 2,385,243 | |||||||||||||||
Total checking accounts | 8,398,982 | 8,198,962 | 8,571,326 | 9,149,326 | 9,652,845 | |||||||||||||||
Money market and savings accounts | 8,406,630 | 8,686,356 | 8,686,491 | 8,475,706 | 8,207,576 | |||||||||||||||
Certificates of deposit | 10,133,389 | 10,318,001 | 10,788,421 | 10,314,742 | 9,523,194 | |||||||||||||||
Total deposits | 26,939,001 | 27,203,319 | 28,046,238 | 27,939,774 | 27,383,615 | |||||||||||||||
Federal Home Loan Bank advances | 8,661,607 | 9,847,293 | 9,820,184 | 10,582,255 | 10,446,630 | |||||||||||||||
Federal funds purchased and repurchase agreements | 428,158 | 269,319 | 62,716 | 51,399 | 52,496 | |||||||||||||||
Other borrowings | 596,571 | 697,753 | 704,629 | 706,083 | 707,591 | |||||||||||||||
Advance payments by borrowers for taxes and insurance | 58,631 | 61,054 | 50,768 | 58,593 | 46,706 | |||||||||||||||
Accrued interest payable | 53,631 | 35,944 | 65,075 | 46,418 | 72,017 | |||||||||||||||
Accrued expenses and other liabilities | 1,284,298 | 1,237,515 | 1,288,801 | 1,387,835 | 1,307,416 | |||||||||||||||
Total liabilities | 38,021,897 | 39,352,197 | 40,038,411 | 40,772,357 | 40,016,471 | |||||||||||||||
Shareholders’ equity: | ||||||||||||||||||||
Preferred stock — $.01 par value per share; 20,000,000 shares authorized and unissued | — | — | — | — | — | |||||||||||||||
Common stock — $.01 par value per share; 360,000,000 shares authorized; 229,924,425; 229,940,729; 229,944,441; 229,946,762 and 227,571,468 shares issued | 2,299 | 2,299 | 2,299 | 2,299 | 2,276 | |||||||||||||||
Additional paid-in capital | 2,292,137 | 2,280,335 | 2,274,947 | 2,270,580 | 2,197,388 | |||||||||||||||
Retained earnings | 1,142,547 | 1,178,803 | 1,098,042 | 1,009,784 | 908,486 | |||||||||||||||
Less 6,272,992; 6,767,285; 6,953,759; 3,851,660 and 2,539,076 shares of common stock held in treasury at cost | (202,056 | ) | (209,653 | ) | (215,085 | ) | (116,652 | ) | (74,423 | ) | ||||||||||
Accumulated other comprehensive income | 22,105 | 24,085 | 80,638 | 196,571 | 198,405 | |||||||||||||||
Total shareholders’ equity | 3,257,032 | 3,275,869 | 3,240,841 | 3,362,582 | 3,232,132 | |||||||||||||||
Total liabilities and shareholders’ equity | $ | 41,278,929 | $ | 42,628,066 | $ | 43,279,252 | $ | 44,134,939 | $ | 43,248,603 | ||||||||||
7
CHARTER ONE FINANCIAL, INC.
SELECTED STATISTICAL DATA
(unaudited)
Three Months Ended | ||||||||||||||||||||
3/31/04 | 12/31/03 | 9/30/03 | 6/30/03 | 3/31/03 | ||||||||||||||||
Annualized returns and ratios based on net income: | ||||||||||||||||||||
Return on average assets | .47 | % | 1.46 | % | 1.46 | % | 1.50 | % | 1.38 | % | ||||||||||
Return on average equity | 6.18 | 19.24 | 20.12 | 19.86 | 18.48 | |||||||||||||||
Average equity to average assets | 7.61 | 7.58 | 7.25 | 7.55 | 7.46 | |||||||||||||||
Net interest income to administrative expenses | 1.40 | x | 1.33 | x | 1.46 | x | 1.52 | x | 1.63 | x | ||||||||||
Administrative expenses to average assets | 2.04 | % | 2.01 | % | 1.79 | % | 1.76 | % | 1.71 | % | ||||||||||
Efficiency ratio(1) | 70.39 | 46.61 | 41.84 | 41.14 | 39.77 | |||||||||||||||
Annualized return on average tangible equity(2) | 7.21 | 22.31 | 23.59 | 22.74 | 21.29 |
(1) | Computed as the ratio of total administrative expenses to net interest income and total other income. | |
(2) | Computed as the ratio of net income, excluding the amortization of other intangible assets, to average tangible equity. |
3/31/04 | 12/31/03 | 9/30/03 | 6/30/03 | 3/31/03 | ||||||||||||||||
End of period capitalization: | ||||||||||||||||||||
Equity to assets | 7.89 | % | 7.68 | % | 7.49 | % | 7.62 | % | 7.47 | % | ||||||||||
Tangible equity to assets | 6.80 | 6.63 | 6.45 | 6.56 | 6.50 | |||||||||||||||
Book value per share | $ | 14.56 | $ | 14.68 | $ | 14.53 | $ | 14.87 | $ | 14.36 | ||||||||||
Tangible book value per share | 12.56 | 12.67 | 12.52 | 12.81 | 12.50 | |||||||||||||||
Miscellaneous end-of-period data: | ||||||||||||||||||||
Number of employees (full-time equivalents) | 7,843 | 7,804 | 7,765 | 7,703 | 7,198 | |||||||||||||||
Number of loan production offices | 30 | 33 | 27 | 28 | 26 | |||||||||||||||
Number of ATMs | 988 | 969 | 956 | 953 | 918 |
3/31/04 | 12/31/03 | 9/30/03 | 6/30/03 | 3/31/03 | ||||||||||||||||
Number of banking centers: | ||||||||||||||||||||
Traditional banking centers | 456 | 446 | 435 | 433 | 413 | |||||||||||||||
In-store banking centers | 160 | 146 | 131 | 89 | 64 | |||||||||||||||
Total | 616 | 592 | 566 | 522 | 477 | |||||||||||||||
Number of banking centers by state: | ||||||||||||||||||||
New York | 186 | 180 | 176 | 154 | 137 | |||||||||||||||
Ohio | 143 | 138 | 130 | 126 | 116 | |||||||||||||||
Michigan | 108 | 107 | 106 | 105 | 104 | |||||||||||||||
Illinois | 108 | 105 | 99 | 99 | 84 | |||||||||||||||
Vermont | 27 | 27 | 27 | 27 | 26 | |||||||||||||||
Indiana | 23 | 16 | 11 | — | — | |||||||||||||||
Massachusetts | 13 | 13 | 13 | 10 | 10 | |||||||||||||||
Connecticut | 5 | 3 | 1 | 1 | — | |||||||||||||||
Pennsylvania | 3 | 3 | 3 | — | — |
8
CHARTER ONE FINANCIAL, INC.
AVERAGE BALANCE SHEET, YIELDS AND COSTS
(unaudited)
Three Months Ended | ||||||||||||||||||||
3/31/04 | 12/31/03 | 9/30/03 | 6/30/03 | 3/31/03 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Average balance sheet data: | ||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||
Loans and leases | $ | 29,220,076 | $ | 28,876,531 | $ | 26,993,081 | $ | 26,101,819 | $ | 25,851,471 | ||||||||||
Mortgage-backed securities | 9,761,887 | 10,849,575 | 12,732,102 | 14,405,655 | 13,137,545 | |||||||||||||||
Investment securities | 259,034 | 265,043 | 286,497 | 260,634 | 210,920 | |||||||||||||||
Other interest-earning assets | 823,199 | 715,197 | 723,721 | 839,597 | 762,760 | |||||||||||||||
Total interest-earning assets | 40,064,196 | 40,706,346 | 40,735,401 | 41,607,705 | 39,962,696 | |||||||||||||||
Allowance for loan and lease losses | (387,712 | ) | (396,096 | ) | (379,527 | ) | (360,448 | ) | (327,090 | ) | ||||||||||
Noninterest-earning assets(1) | 3,053,124 | 3,089,013 | 3,272,787 | 3,044,576 | 3,150,359 | |||||||||||||||
Total assets | $ | 42,729,608 | $ | 43,399,263 | $ | 43,628,661 | $ | 44,291,833 | $ | 42,785,965 | ||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||
Checking accounts | $ | 5,538,583 | $ | 5,716,427 | $ | 6,166,100 | $ | 6,951,974 | $ | 7,541,679 | ||||||||||
Money market and savings accounts | 8,553,416 | 8,736,844 | 8,545,286 | 8,332,278 | 7,929,274 | |||||||||||||||
Certificates of deposit | 10,172,127 | 10,699,475 | 10,708,517 | 9,733,110 | 9,562,013 | |||||||||||||||
Total interest-bearing deposits | 24,264,126 | 25,152,746 | 25,419,903 | 25,017,362 | 25,032,966 | |||||||||||||||
Federal Home Loan Bank advances | 10,189,502 | 10,147,668 | 10,265,634 | 11,397,410 | 10,410,188 | |||||||||||||||
Other borrowings | 1,102,005 | 925,641 | 871,430 | 874,062 | 866,495 | |||||||||||||||
Total interest-bearing liabilities | 35,555,633 | 36,226,055 | 36,556,967 | 37,288,834 | 36,309,649 | |||||||||||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||
Demand deposit accounts | 2,604,755 | 2,505,876 | 2,615,262 | 2,308,993 | 2,017,036 | |||||||||||||||
Other noninterest-bearing liabilities | 1,317,979 | 1,377,774 | 1,292,960 | 1,349,173 | 1,266,385 | |||||||||||||||
Total noninterest-bearing liabilities | 3,922,734 | 3,883,650 | 3,908,222 | 3,658,166 | 3,283,421 | |||||||||||||||
Total liabilities | 39,478,367 | 40,109,705 | 40,465,189 | 40,947,000 | 39,593,070 | |||||||||||||||
Shareholders’ equity | 3,251,241 | 3,289,558 | 3,163,472 | 3,344,833 | 3,192,895 | |||||||||||||||
Total liabilities and shareholders’ equity | $ | 42,729,608 | $ | 43,399,263 | $ | 43,628,661 | $ | 44,291,833 | $ | 42,785,965 | ||||||||||
Yields and costs during period: | ||||||||||||||||||||
Weighted average yield: | ||||||||||||||||||||
Loans and leases(2) | 5.03 | % | 5.19 | % | 5.46 | % | 5.64 | % | 5.86 | % | ||||||||||
Mortgage-backed securities | 4.55 | 4.53 | 4.24 | 4.48 | 4.80 | |||||||||||||||
Investment securities | 5.64 | 5.49 | 5.04 | 5.15 | 5.87 | |||||||||||||||
Other interest-earning assets | 3.75 | 4.17 | 4.07 | 3.70 | 3.87 | |||||||||||||||
Total interest-earning assets | 4.89 | 5.00 | 5.05 | 5.19 | 5.48 | |||||||||||||||
Weighted average cost(3): | ||||||||||||||||||||
Checking accounts | .76 | .88 | .96 | 1.35 | 1.65 | |||||||||||||||
Money market and savings accounts | .93 | 1.04 | 1.10 | 1.50 | 1.55 | |||||||||||||||
Certificates of deposit | 2.60 | 2.79 | 2.86 | 2.97 | 3.09 | |||||||||||||||
Total interest-bearing deposits | 1.59 | 1.75 | 1.81 | 2.03 | 2.17 | |||||||||||||||
Federal Home Loan Bank advances | 3.00 | 3.80 | 3.89 | 3.66 | 3.88 | |||||||||||||||
Other borrowings | 4.76 | 5.89 | 6.03 | 6.38 | 6.10 | |||||||||||||||
Total interest-bearing liabilities | 2.09 | 2.43 | 2.49 | 2.63 | 2.75 | |||||||||||||||
Interest rate spread | 2.80 | 2.57 | 2.56 | 2.56 | 2.73 | |||||||||||||||
Net yield on interest-earning assets | 3.04 | 2.84 | 2.80 | 2.84 | 2.99 |
(1) | Includes mark-to-market adjustments on securities available for sale. | |
(2) | Excludes impact of related tax benefits. | |
(3) | Includes the annualized effect of interest rate risk management instruments. |
9
CHARTER ONE FINANCIAL, INC.
LOAN AND LEASE ACTIVITY
(unaudited)
Three Months Ended | ||||||||||||||||||||
3/31/04 | 12/31/03 | 9/30/03 | 6/30/03 | 3/31/03 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Originations: | ||||||||||||||||||||
Real estate: | ||||||||||||||||||||
Permanent: | ||||||||||||||||||||
One-to-four family | $ | 1,161,546 | $ | 1,848,459 | $ | 3,896,869 | $ | 3,555,968 | $ | 3,095,718 | ||||||||||
Multifamily | 75,992 | 84,470 | 75,185 | 57,451 | 51,440 | |||||||||||||||
Commercial | 128,270 | 92,383 | 124,806 | 60,226 | 90,213 | |||||||||||||||
Total permanent loans | 1,365,808 | 2,025,312 | 4,096,860 | 3,673,645 | 3,237,371 | |||||||||||||||
Construction: | ||||||||||||||||||||
One-to-four family | 88,851 | 45,304 | 62,180 | 53,537 | 35,556 | |||||||||||||||
Multifamily | 30,741 | 84,815 | 30,371 | 7,613 | 19,283 | |||||||||||||||
Commercial | 117,233 | 29,921 | 16,656 | 30,246 | 10,830 | |||||||||||||||
Total construction loans | 236,825 | 160,040 | 109,207 | 91,396 | 65,669 | |||||||||||||||
Total real estate loans originated | 1,602,633 | 2,185,352 | 4,206,067 | 3,765,041 | 3,303,040 | |||||||||||||||
Retail consumer | 1,054,029 | 1,167,620 | 1,431,291 | 1,209,221 | 1,079,290 | |||||||||||||||
Automobile | 664,636 | 719,738 | 909,477 | 1,026,245 | 981,114 | |||||||||||||||
Consumer finance | 105,633 | 92,340 | 128,536 | 122,839 | 101,927 | |||||||||||||||
Leases | 155,279 | 127,148 | 152,279 | 73,946 | 101,571 | |||||||||||||||
Corporate banking | 515,264 | 582,832 | 443,732 | 473,677 | 448,326 | |||||||||||||||
Total loans and leases originated | 4,097,474 | 4,875,030 | 7,271,382 | 6,670,969 | 6,015,268 | |||||||||||||||
Acquired through business combinations and purchases | 470,472 | 3,058 | 2,737 | 403,324 | 3,765 | |||||||||||||||
Sales and principal reductions: | ||||||||||||||||||||
Loans sold | 314,460 | 670,456 | 1,067,083 | 885,179 | 763,051 | |||||||||||||||
Loans exchanged for mortgage-backed securities | 72,749 | 1,207,646 | 225,498 | 2,346,609 | 3,419,116 | |||||||||||||||
Principal reductions | 2,606,192 | 2,744,598 | 3,447,925 | 3,260,094 | 3,025,830 | |||||||||||||||
Total sales and principal reductions | 2,993,401 | 4,622,700 | 4,740,506 | 6,491,882 | 7,207,997 | |||||||||||||||
Increase (decrease) before net items | $ | 1,574,545 | $ | 255,388 | $ | 2,533,613 | $ | 582,411 | $ | (1,188,964 | ) | |||||||||
ALLOWANCE FOR LOAN AND LEASE LOSSES
(unaudited)
Three Months Ended | ||||||||||||||||||||
3/31/04 | 12/31/03 | 9/30/03 | 6/30/03 | 3/31/03 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Allowance for loan and lease losses: | ||||||||||||||||||||
Balance, beginning of period | $ | 383,733 | $ | 389,355 | $ | 376,393 | $ | 355,926 | $ | 328,017 | ||||||||||
Provision for loan and lease losses | 18,616 | 17,778 | 37,663 | 35,360 | 61,471 | |||||||||||||||
Acquired through business combination | — | — | — | 4,969 | — | |||||||||||||||
Loans and leases charged off: | ||||||||||||||||||||
One-to-four family | (827 | ) | (686 | ) | (655 | ) | (1,036 | ) | (670 | ) | ||||||||||
Commercial real estate | (872 | ) | (419 | ) | (474 | ) | (253 | ) | (500 | ) | ||||||||||
Retail consumer | (2,534 | ) | (2,234 | ) | (2,819 | ) | (2,596 | ) | (3,478 | ) | ||||||||||
Automobile | (13,679 | ) | (16,794 | ) | (15,869 | ) | (13,628 | ) | (16,450 | ) | ||||||||||
Consumer finance | (3,479 | ) | (3,811 | ) | (4,396 | ) | (3,975 | ) | (4,537 | ) | ||||||||||
Leases | — | — | — | (2,095 | ) | (6,061 | ) | |||||||||||||
Corporate banking | (2,516 | ) | (5,018 | ) | (6,610 | ) | (2,652 | ) | (7,245 | ) | ||||||||||
Total charge-offs | (23,907 | ) | (28,962 | ) | (30,823 | ) | (26,235 | ) | (38,941 | ) | ||||||||||
Recoveries: | ||||||||||||||||||||
One-to-four family | 11 | 24 | 31 | 41 | 17 | |||||||||||||||
Commercial real estate | 64 | 129 | 68 | 61 | 148 | |||||||||||||||
Retail consumer | 634 | 380 | 1,044 | 548 | 433 | |||||||||||||||
Automobile | 4,421 | 4,010 | 4,279 | 4,561 | 4,115 | |||||||||||||||
Consumer finance | 228 | 264 | 329 | 235 | 105 | |||||||||||||||
Leases | 433 | 253 | 228 | 606 | 393 | |||||||||||||||
Corporate banking | 609 | 502 | 143 | 321 | 168 | |||||||||||||||
Total recoveries | 6,400 | 5,562 | 6,122 | 6,373 | 5,379 | |||||||||||||||
Net loan and lease charge-offs | (17,507 | ) | (23,400 | ) | (24,701 | ) | (19,862 | ) | (33,562 | ) | ||||||||||
Balance, end of period | $ | 384,842 | $ | 383,733 | $ | 389,355 | $ | 376,393 | $ | 355,926 | ||||||||||
Net charge-offs to average loans and leases (annualized) | .24 | % | .32 | % | .37 | % | .30 | % | .52 | % |
10
CHARTER ONE FINANCIAL, INC.
NET CHARGE-OFFS TO AVERAGE LOANS AND LEASES
(unaudited)
Three Months Ended | ||||||||||||||||||||
3/31/04 | 12/31/03 | 9/30/03 | 6/30/03 | 3/31/03 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Average loans and leases: | ||||||||||||||||||||
Mortgage | $ | 12,193,635 | $ | 12,333,237 | $ | 11,481,071 | $ | 11,126,226 | $ | 11,083,170 | ||||||||||
Retail consumer | 5,699,052 | 5,346,225 | 4,535,869 | 4,329,896 | 4,510,460 | |||||||||||||||
Automobile | 6,322,555 | 6,360,687 | 6,317,768 | 6,088,204 | 5,763,289 | |||||||||||||||
Consumer finance | 1,107,101 | 1,079,984 | 1,055,588 | 1,023,295 | 995,653 | |||||||||||||||
Leases | 2,188,135 | 2,196,592 | 2,116,646 | 2,127,384 | 2,145,022 | |||||||||||||||
Corporate banking | 1,709,598 | 1,559,806 | 1,486,139 | 1,406,814 | 1,353,877 | |||||||||||||||
Total average loans and leases | $ | 29,220,076 | $ | 28,876,531 | $ | 26,993,081 | $ | 26,101,819 | $ | 25,851,471 | ||||||||||
Net charge-offs (recoveries) to average loans and leases (annualized): | ||||||||||||||||||||
Mortgage | .05 | % | .03 | % | .04 | % | .04 | % | .04 | % | ||||||||||
Retail consumer | .13 | .14 | .16 | .19 | .27 | |||||||||||||||
Automobile | .59 | .80 | .73 | .60 | .86 | |||||||||||||||
Consumer finance | 1.17 | 1.31 | 1.54 | 1.46 | 1.78 | |||||||||||||||
Leases | (.08 | ) | (.05 | ) | (.04 | ) | .28 | 1.06 | ||||||||||||
Corporate banking | .45 | 1.16 | 1.74 | .66 | 2.09 | |||||||||||||||
Total | .24 | .32 | .37 | .30 | .52 |
LOAN AND LEASE PORTFOLIO
(unaudited)
3/31/04 | 12/31/03 | 9/30/03 | 6/30/03 | 3/31/03 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Loan and lease portfolio, net(1): | ||||||||||||||||||||
One-to-four family: | ||||||||||||||||||||
Permanent: | ||||||||||||||||||||
Fixed rate | $ | 6,825,379 | $ | 6,001,695 | $ | 6,737,463 | $ | 5,411,639 | $ | 5,506,314 | ||||||||||
Adjustable rate | 2,867,295 | 2,830,677 | 2,600,507 | 2,577,778 | 2,546,426 | |||||||||||||||
Construction | 483,275 | 485,354 | 451,093 | 418,485 | 412,973 | |||||||||||||||
10,175,949 | 9,317,726 | 9,789,063 | 8,407,902 | 8,465,713 | ||||||||||||||||
Commercial real estate: | ||||||||||||||||||||
Multifamily | 800,524 | 776,528 | 752,006 | 739,464 | 705,851 | |||||||||||||||
Commercial | 1,242,304 | 1,193,377 | 1,181,362 | 1,148,073 | 1,058,610 | |||||||||||||||
Construction | 541,600 | 521,680 | 528,628 | 536,330 | 496,106 | |||||||||||||||
2,584,428 | 2,491,585 | 2,461,996 | 2,423,867 | 2,260,567 | ||||||||||||||||
Consumer: | ||||||||||||||||||||
Retail | 6,018,261 | 5,491,923 | 4,999,488 | 4,180,702 | 4,173,080 | |||||||||||||||
Automobile | 6,272,710 | 6,364,703 | 6,376,830 | 6,247,964 | 5,934,502 | |||||||||||||||
Consumer finance | 1,130,226 | 1,092,533 | 1,073,054 | 1,038,517 | 1,005,077 | |||||||||||||||
13,421,197 | 12,949,159 | 12,449,372 | 11,467,183 | 11,112,659 | ||||||||||||||||
Business: | ||||||||||||||||||||
Leases | 2,208,350 | 2,195,418 | 2,166,350 | 2,104,713 | 2,125,905 | |||||||||||||||
Corporate banking | 1,780,350 | 1,680,293 | 1,553,739 | 1,462,880 | 1,368,069 | |||||||||||||||
3,988,700 | 3,875,711 | 3,720,089 | 3,567,593 | 3,493,974 | ||||||||||||||||
Loans and leases before allowance for loan and lease losses | 30,170,274 | 28,634,181 | 28,420,520 | 25,866,545 | 25,332,913 | |||||||||||||||
Allowance for loan and lease losses | (384,842 | ) | (383,733 | ) | (389,355 | ) | (376,393 | ) | (355,926 | ) | ||||||||||
Loans and leases, net(1) | $ | 29,785,432 | $ | 28,250,448 | $ | 28,031,165 | $ | 25,490,152 | $ | 24,976,987 | ||||||||||
Portfolio of loans serviced for others | $ | 16,124,233 | $ | 16,877,169 | $ | 16,700,490 | $ | 18,948,077 | $ | 18,713,649 |
(1) | Includes loans held for sale. |
11
CHARTER ONE FINANCIAL, INC.
NONPERFORMING AND UNDERPERFORMING ASSETS
(unaudited)
3/31/04 | 12/31/03 | 9/30/03 | 6/30/03 | 3/31/03 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Nonperforming assets: | ||||||||||||||||||||
Nonaccrual loans and leases: | ||||||||||||||||||||
Real estate mortgage loans: | ||||||||||||||||||||
One-to-four family | $ | 24,143 | $ | 23,301 | $ | 22,784 | $ | 25,723 | $ | 27,867 | ||||||||||
Multifamily and commercial | 34,296 | 33,692 | 11,333 | 16,764 | 5,591 | |||||||||||||||
Construction and land | 25,114 | 25,161 | 22,974 | 27,483 | 8,015 | |||||||||||||||
Total real estate mortgage loans | 83,553 | 82,154 | 57,091 | 69,970 | 41,473 | |||||||||||||||
Retail consumer | 10,163 | 9,818 | 10,405 | 10,652 | 12,046 | |||||||||||||||
Automobile | — | — | — | — | — | |||||||||||||||
Consumer finance | 43,733 | 42,843 | 42,589 | 43,175 | 42,562 | |||||||||||||||
Leases | 6,201 | 6,360 | 6,569 | 6,877 | 15,264 | |||||||||||||||
Corporate banking | 25,073 | 28,408 | 25,078 | 35,595 | 42,068 | |||||||||||||||
Total nonaccrual loans and leases | 168,723 | 169,583 | 141,732 | 166,269 | 153,413 | |||||||||||||||
Restructured loans | — | 474 | 481 | 488 | 494 | |||||||||||||||
Total nonperforming loans and leases | 168,723 | 170,057 | 142,213 | 166,757 | 153,907 | |||||||||||||||
Real estate and other collateral owned | 29,793 | 35,654 | 47,249 | 39,278 | 40,020 | |||||||||||||||
Total nonperforming assets | $ | 198,516 | $ | 205,711 | $ | 189,462 | $ | 206,035 | $ | 193,927 | ||||||||||
Ratio of: | ||||||||||||||||||||
Nonperforming loans and leases to total loans and leases | .57 | % | .60 | % | .51 | % | .65 | % | .62 | % | ||||||||||
Nonperforming assets to total assets | .48 | .48 | .44 | .47 | .45 | |||||||||||||||
Nonperforming assets to total loans, leases and real estate and other collateral owned | .67 | .73 | .67 | .81 | .78 | |||||||||||||||
Allowance for loan and lease losses to: | ||||||||||||||||||||
Nonperforming loans and leases | 228.09 | 225.65 | 273.78 | 225.71 | 231.26 | |||||||||||||||
Total loans and leases before allowance | 1.28 | 1.34 | 1.37 | 1.46 | 1.40 | |||||||||||||||
Accruing loans and leases delinquent more than 90 days: | ||||||||||||||||||||
Real estate mortgage loans: | ||||||||||||||||||||
One-to-four family | $ | 21,576 | $ | 21,549 | $ | 21,239 | $ | 18,056 | $ | 23,507 | ||||||||||
Multifamily and commercial | — | — | — | 396 | — | |||||||||||||||
Construction and land | — | — | — | — | — | |||||||||||||||
Total real estate mortgage loans | 21,576 | 21,549 | 21,239 | 18,452 | 23,507 | |||||||||||||||
Retail consumer | 2,144 | 2,722 | 2,654 | 3,056 | 3,229 | |||||||||||||||
Automobile | 2,035 | 2,771 | 2,680 | 2,254 | 3,579 | |||||||||||||||
Consumer finance | 15,340 | 17,839 | 23,298 | 21,172 | 27,395 | |||||||||||||||
Leases | — | 52 | — | — | 181 | |||||||||||||||
Corporate banking | 412 | 522 | 311 | 117 | 471 | |||||||||||||||
Total accruing loans and leases delinquent more than 90 days | $ | 41,507 | $ | 45,455 | $ | 50,182 | $ | 45,051 | $ | 58,362 | ||||||||||
Total underperforming assets | $ | 240,023 | $ | 251,166 | $ | 239,644 | $ | 251,086 | $ | 252,289 | ||||||||||
Ratio of: | ||||||||||||||||||||
Underperforming assets to total assets | .58 | % | .59 | % | .55 | % | .57 | % | .58 | % | ||||||||||
Underperforming assets to total loans, leases and real estate and other collateral owned | .81 | .89 | .85 | .98 | 1.01 |
12
SIGNATURES
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 thereunto duly authorized.
CHARTER ONE FINANCIAL, INC. | ||||
Date: April 19, 2004 | By: | /s/ Robert J. Vana | ||
Robert J. Vana | ||||
Senior Vice President, Chief Corporate Counsel and Corporate Secretary | ||||