Exhibit 99.1
Fourth Quarter 2004
Earnings Release and
Supplemental Financials
January 25, 2005
FOR IMMEDIATE RELEASE
| | |
| CONTACT: | | Kevin T. Thompson |
| | | Executive Vice President |
| | | Chief Financial Officer |
| | | (419) 254-6068 |
Sky Financial Group Reports Fourth Quarter and Year-End Results
January 25, 2005 - Bowling Green, Ohio - Sky Financial Group, Inc. (NASDAQ: SKYF) today reported fourth quarter net income of $49.3 million, or $0.46 per diluted share, compared to $41.5 million, or $0.45 per diluted share for the fourth quarter of 2003. Annualized return on assets and return on equity for the fourth quarter were 1.33% and 13.55%, respectively, compared with 1.28% and 16.82%, respectively, for the same period in 2003.
For the full year 2004, net income was $194.4 million, or $1.93 per diluted share, up 24.1% and 11.6%, respectively, from $156.6 million, or $1.73 per diluted share, for the prior year. Return on average assets and return on average equity were 1.43% and 15.75%, respectively, for 2004, versus 1.29% and 17.23%, respectively, for the prior year.
“Our solid performance for 2004 reflects another successful year for Sky,” stated Marty E. Adams, president, chairman and chief executive officer. “Our focus on our strategic priorities produced strong results and strengthened our growing franchise. Organic growth in our targeted loan and deposit portfolios was solid throughout the year. Sky’s fee-based businesses made excellent progress, while our expenses for both operations and credit losses remained well managed.”
“We look forward to meeting the challenges of 2005, including the merger of Belmont Bancorp. into our Ohio Valley Region in the second quarter of this year,” continued Mr. Adams.
Core operating earnings, which reflect net income adjusted to exclude merger-related expenses and discontinued operations that are not representative of ongoing operations, were $49.1 million for the fourth quarter, up 21.9% versus $40.3 million for the fourth quarter of 2003. Core operating earnings per diluted share for the fourth quarter were $0.46, up 7.0% from $0.43 for the fourth quarter of 2003. For the fourth quarter, on a core operating earnings basis, annualized return on assets and return on equity were 1.33% and 13.50%, respectively, compared with 1.34% and 16.34%, respectively, for the same period in 2003.
1
The current quarter’s results included merger-related expenses for the acquisition of Prospect Bancshares of $0.2 million after tax and income from discontinued operations of $0.4 million after tax. The fourth quarter last year included $0.7 million, or $0.01 per diluted share, of merger-related expenses after tax for the acquisition of GLB Bancorp.
Core operating earnings for the year 2004 were $178.2 million, or $1.77 per diluted share, up 14.5% and 2.9%, respectively, from $155.7 million, or $1.72 per diluted share, for the prior year. Sky’s core operating earnings excluded after-tax merger-related expenses of $3 million, or $0.03 per diluted share, for both 2004 and 2003. On a core operating basis, return on average assets and return on average equity were 1.33% and 14.44%, respectively, for 2004, versus 1.36% and 17.13%, respectively, for the prior year.
Cash operating earnings, which reflect core operating earnings further adjusted to exclude the effects of amortization of intangibles, were $51.5 million, or $0.48 per diluted share in the fourth quarter, up 23.9% and 6.7%, respectively, from the fourth quarter of 2003. On a cash operating basis, the annualized return on average tangible equity was 21.64% for the fourth quarter compared with 21.44% in the same period in 2003.
Cash operating earnings for the year 2004 were $185.3 million, or $1.84 per diluted share, up 15.7% and 4.0%, respectively, from the prior year. On a cash operating basis, return on average tangible equity was 21.27% for 2004 versus 21.98% for the prior year.
Fourth Quarter Results
Net interest income for the fourth quarter was $124.3 million, up 20.6% from $103.0 million in the fourth quarter of 2003. The net interest margin for the fourth quarter was 3.68%, down 1 basis point from last quarter and 2 basis points from the fourth quarter of 2003. The stable net interest margin performance reflects the benefits from rising short-term interest rates largely offset by the flattening of the yield curve and the effects of increasingly competitive markets.
Average earning assets increased 21.7% over the fourth quarter of 2003 from a combination of organic growth and acquisitions. Average loans for the quarter increased 21.7% from 2003’s volume during the same quarter, with organic growth, excluding indirect lending and sold loans, contributing 8.3% in addition to the acquisitions. Average deposits grew 19.2% from the fourth quarter of 2003, which included organic growth of 2.0% in addition to the acquisitions. Non-interest bearing deposits, Sky’s highest growth priority, were up 29.5% for the fourth quarter compared to the fourth quarter of 2003. This included organic growth of 14.5%.
2
Non-interest revenues were $57.7 million for the fourth quarter, up 37.1% from $42.0 million in the fourth quarter of 2003. Excluding mortgage banking and net securities transactions, non-interest revenues were up 26.7% in total and 11.0% excluding acquisitions with strong results compared to the same quarter in 2003. Trust services income was up 32.4%, service charges on deposits were up 31.6% and brokerage and insurance commissions were up 18.9%. Compared to the prior year quarter, mortgage originations increased and mortgage banking revenues were up 8.5%. Securities transactions this past quarter were derived primarily from the sale of bank equity holdings and included net gains of $8.3 million versus $2.3 million in the fourth quarter of 2003.
Non-interest expenses for the fourth quarter were $97.8 million, which included $0.4 million of merger and integration expenses. Excluding merger and integration expenses, non-interest expenses were $97.5 million compared to $75.6 million in the fourth quarter of 2003. Expenses have increased over 2003’s fourth quarter mainly due to the acquisitions of Second Bancorp, Prospect Bancshares and two insurance agencies in 2004 and higher expenses related to variable compensation and benefits plans. The efficiency ratio, on a cash operating basis, excluding the merger, integration and restructuring expenses and amortization of intangible assets, was 51.37% for the quarter, compared to 50.53% for the same quarter in 2003.
Credit Quality
The provision for credit losses for the fourth quarter was $11.6 million increasing from $10.0 million in the same quarter in 2003. The higher provision compared to the fourth quarter of 2003 was due to growth in the loan portfolio and net charge-offs. Net credit losses to average loans for the quarter were 0.38%, down from 0.43% for the fourth quarter of 2003. At December 31, 2004, non-performing loans to total loans was 1.35% versus 0.96% a year ago and the allowance for credit losses to non-performing loans was 105% versus 151% in 2003. Non-performing loans at year-end were increased versus the prior year as a result of the Second Bancorp merger and continue to reflect the non-accrual status of loans with payments guaranteed by surety bonds or insurance policies issued by three insurance companies, which remain in litigation.
Continued Expansion
On December 22, 2004, Sky announced a definitive agreement to acquire Belmont Bancorp., and its wholly-owned subsidiary, Belmont National Bank. Belmont National Bank, a $297 million commercial bank, operates twelve full-service branches located in Belmont, Harrison and Tuscarawas counties in Ohio and Ohio County in West Virginia. The merger is expected to close in the second quarter of 2005, and upon completion, the combined companies will have approximately $15.2 billion in total assets, and $10.6 billion in total deposits.
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Outlook For 2005
Commenting on 2005, Kevin Thompson, chief financial officer, stated, “We are pleased with the progress accomplished this past year and expect solid performance again in 2005. Including our pending acquisition of Belmont Bancorp., we currently project 2005 diluted earnings per share on a core operating basis, excluding merger related expenses, of $1.85 to $1.91, and on a net income, or GAAP basis, of $1.84 to $1.90 per diluted share.” This projection excludes the impact of implementing FAS 123 for stock option expense accounting, but includes the effect of completing the repurchase of two million shares as authorized by the Sky Board of Directors.
Conference Call
Today, January 25, 2005, at 10 a.m., Mr. Adams and Mr. Thompson will host a conference call to provide an overview of fourth quarter performance and business outlook. Participants are encouraged to call in beginning at 9:45 a.m. by dialing (800) 475-3716 (confirmation code: 491281). R.S.V.P. is not required. The webcast can be accessed via the Investor Relations/Webcasts section (http://investor.skyfi.com/medialist.cfm) of the Sky website. A replay of the call will be available from 2 p.m., January 25 until midnight, January 30, by calling (888) 203-1112 (confirmation code: 491281). The event will be archived on the Sky website indefinitely. For supplemental financial tables, please refer to the Investor Relations/Press Releases (http://investor.skyfi.com/releases.cfm) section on our website.
Non-GAAP Financial Measures
In addition to results presented in accordance with GAAP, this press release contains certain non-GAAP financial measures. Sky believes that providing certain non-GAAP financial measures provides investors with information useful in understanding Sky’s financial performance, its performance trends and financial position. Specifically, Sky provides measures based on “core operating earnings,” which exclude merger-related expenses and discontinued operations that are not reflective of on-going operations or not expected to recur. In addition, Sky provides measures based on “cash operating earnings,” which further adjusts core operating earnings to exclude the effect of amortization of intangibles. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results. A reconciliation of these non-GAAP measures to the most comparable GAAP equivalent is included in the financial tables.
Forward-looking Statement
The information in this press release contains forward-looking statements including certain projections, plans and forecasts of expected future performance that are not historical facts and are subject to a number of risks and uncertainties. Actual results and performance could differ materially from those contemplated or implied by these forward-looking statements. For a summary of important factors that could affect Sky’s forward-looking statements, please refer to Sky’s filings with the Securities and Exchange Commission (SEC) and available at the SEC’s Internet site (http://www.sec.gov). Sky undertakes no obligation to update or revise these statements following the date of this release. Sky specifically disclaims any obligation to update its earnings per share outlook for 2005 and all subsequent periods.
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About Sky Financial Group, Inc.
Sky Financial Group is a $14.9 billion diversified financial holding company with its headquarters located in Bowling Green, Ohio. Sky’s asset size places it among the 50 largest publicly-held bank holding companies in the nation. Sky operates over 280 financial centers and over 300 ATMs serving communities in Ohio, Pennsylvania, Michigan, Indiana and West Virginia. Sky’s financial service affiliates include: Sky Bank, commercial and retail banking; Sky Trust, an asset management organization; and Sky Insurance, retail and commercial insurance agency services. Sky is located on the web at www.skyfi.com.
-end-
5
Summary Financials - Fourth Quarter 2004
SKY FINANCIAL GROUP, INC.
STATEMENTS OF INCOME (Unaudited)
| | | | | | | | | | | | | | | | | | |
(Dollars in thousands,
except per share data)
| | Three Months Ended December 31,
| | Percent
Change
| | | Twelve months ended December 31,
| | Percent
Change
| |
| | 2004
| | 2003
| | | 2004
| | 2003
| |
Interest income | | $ | 186,124 | | $ | 150,407 | | 23.7 | % | | $ | 661,943 | | $ | 594,063 | | 11.4 | % |
Interest expense | | | 61,819 | | | 47,358 | | 30.5 | | | | 210,632 | | | 202,820 | | 3.9 | |
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Net interest income | | | 124,305 | | | 103,049 | | 20.6 | | | | 451,311 | | | 391,243 | | 15.4 | |
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Provision for credit losses | | | 11,615 | | | 9,975 | | 16.4 | | | | 37,660 | | | 34,125 | | 10.4 | |
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Net interest income after provision for credit losses | | | 112,690 | | | 93,074 | | 21.1 | | | | 413,651 | | | 357,118 | | 15.8 | |
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Non-interest income | | | | | | | | | | | | | | | | | | |
Trust services income | | | 4,996 | | | 3,773 | | 32.4 | | | | 18,281 | | | 14,348 | | 27.4 | |
Service charges and fees on deposit accounts | | | 13,395 | | | 10,182 | | 31.6 | | | | 47,964 | | | 38,207 | | 25.5 | |
Mortgage banking income | | | 5,675 | | | 5,231 | | 8.5 | | | | 24,844 | | | 47,832 | | (48.1 | ) |
Brokerage and insurance commissions | | | 13,358 | | | 11,233 | | 18.9 | | | | 55,820 | | | 42,686 | | 30.8 | |
Net securities gains (losses) | | | 8,310 | | | 2,345 | | 254.4 | | | | 14,569 | | | 871 | | 1,572.7 | |
Other income | | | 11,918 | | | 9,285 | | 28.4 | | | | 41,939 | | | 34,954 | | 20.0 | |
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Total non-interest income | | | 57,652 | | | 42,049 | | 37.1 | | | | 203,417 | | | 178,898 | | 13.7 | |
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Non-interest expenses | | | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | | 53,190 | | | 39,726 | | 33.9 | | | | 193,611 | | | 165,363 | | 17.1 | |
Occupancy and equipment expense | | | 16,824 | | | 13,312 | | 26.4 | | | | 59,096 | | | 50,025 | | 18.1 | |
Merger, integration and restructuring expense | | | 365 | | | 1,091 | | (66.5 | ) | | | 4,542 | | | 4,577 | | (0.8 | ) |
Other operating expenses | | | 27,452 | | | 22,513 | | 21.9 | | | | 99,275 | | | 87,221 | | 13.8 | |
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Total non-interest expense | | | 97,831 | | | 76,642 | | 27.6 | | | | 356,524 | | | 307,186 | | 16.1 | |
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Income from continuing operations before income taxes | | | 72,511 | | | 58,481 | | 24.0 | | | | 260,544 | | | 228,830 | | 13.9 | |
Income taxes from continuing operations | | | 23,612 | | | 18,896 | | 25.0 | | | | 85,344 | | | 76,150 | | 12.1 | |
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Income from continuing operations | | | 48,899 | | | 39,585 | | 23.5 | | | | 175,200 | | | 152,680 | | 14.7 | |
Income from discontinued operations, net of tax | | | 430 | | | 1,881 | | (77.1 | ) | | | 19,155 | | | 3,937 | | 386.5 | |
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Net income | | $ | 49,329 | | $ | 41,466 | | 19.0 | | | $ | 194,355 | | $ | 156,617 | | 24.1 | |
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SHARE DATA: | | | | | | | | | | | | | | | | | | |
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Earnings per share from continuing operations | | | | | | | | | | | | | | | | | | |
Basic | | $ | 0.46 | | $ | 0.43 | | 7.0 | | | $ | 1.76 | | $ | 1.70 | | 3.5 | |
Diluted | | | 0.46 | | | 0.43 | | 7.0 | | | | 1.74 | | | 1.69 | | 3.0 | |
| | | | | | |
Earnings per share from discontinued operations | | | | | | | | | | | | | | | | | | |
Basic | | | 0.00 | | | 0.02 | | (100.0 | ) | | | 0.19 | | | 0.05 | | 322.2 | |
Diluted | | | 0.00 | | | 0.02 | | (100.0 | ) | | | 0.19 | | | 0.04 | | 375.0 | |
| | | | | | |
Earnings per share | | | | | | | | | | | | | | | | | | |
Basic | | | 0.47 | | | 0.45 | | 4.4 | | | | 1.95 | | | 1.75 | | 11.4 | |
Diluted | | | 0.46 | | | 0.45 | | 2.2 | | | | 1.93 | | | 1.73 | | 11.6 | |
| | | | | | |
Core operating earnings per share* | | | | | | | | | | | | | | | | | | |
Basic | | | 0.46 | | | 0.44 | | 4.5 | | | | 1.79 | | | 1.74 | | 2.9 | |
Diluted | | | 0.46 | | | 0.43 | | 7.0 | | | | 1.77 | | | 1.72 | | 2.9 | |
| | | | | | |
Cash operating earnings per share* | | | | | | | | | | | | | | | | | | |
Basic | | | 0.49 | | | 0.45 | | 8.9 | | | | 1.86 | | | 1.79 | | 3.9 | |
Diluted | | | 0.48 | | | 0.45 | | 6.7 | | | | 1.84 | | | 1.77 | | 4.0 | |
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Cash dividend declared per common share | | | 0.22 | | | 0.21 | | — | | | | 0.85 | | | 0.81 | | — | |
Average shares outstanding | | | | | | | | | | | | | | | | | | |
Basic | | | 105,922,384 | | | 92,019,439 | | — | | | | 99,460,902 | | | 89,629,976 | | — | |
Diluted | | | 107,163,227 | | | 93,122,009 | | — | | | | 100,567,924 | | | 90,404,241 | | — | |
6
Summary Financials - Fourth Quarter 2004
PERFORMANCE RATIOS:
| | | | | | | | | | | | | | | | |
| | | Three months ended
December 31,
| | | Twelve months ended December 31,
| |
| | | 2004
| | | 2003
| | | 2004
| | | 2003
| |
ACTUAL | | | | | | | | | | | | | | | | |
Return on average equity | | | 13.55 | % | | | 16.82 | % | | | 15.75 | % | | | 17.23 | % |
Return on average assets | | | 1.33 | | | | 1.28 | | | | 1.43 | | | | 1.29 | |
| | | | |
CONTINUING OPERATIONS | | | | | | | | | | | | | | | | |
Return on average equity | | | 13.43 | % | | | 16.05 | % | | | 14.20 | % | | | 16.80 | % |
Return on average assets | | | 1.32 | | | | 1.31 | | | | 1.31 | | | | 1.34 | |
Efficiency ratio | | | 53.53 | | | | 52.59 | | | | 54.17 | | | | 53.59 | |
Net interest margin (FTE) | | | 3.68 | | | | 3.70 | | | | 3.69 | | | | 3.70 | |
| | | | |
CORE OPERATING * | | | | | | | | | | | | | | | | |
Core operating earnings | | $ | 49,136 | | | $ | 40,294 | | | $ | 178,152 | | | $ | 155,655 | |
Return on average equity | | | 13.50 | % | | | 16.34 | % | | | 14.44 | % | | | 17.13 | % |
Return on average assets | | | 1.33 | | | | 1.34 | | | | 1.33 | | | | 1.36 | |
Efficiency ratio | | | 53.33 | | | | 51.84 | | | | 53.48 | | | | 52.79 | |
| | | | |
CASH OPERATING* | | | | | | | | | | | | | | | | |
Return on average tangible equity | | | 21.64 | % | | | 21.44 | % | | | 21.27 | % | | | 21.98 | % |
Return on average tangible assets | | | 1.44 | | | | 1.40 | | | | 1.43 | | | | 1.42 | |
Efficiency ratio | | | 51.37 | | | | 50.53 | | | | 51.82 | | | | 51.58 | |
ACTUAL BALANCE SHEETS (Unaudited)
(Dollars in thousands)
| | | | | | | | | | | |
| | | December 31,
| | | Percent Change
| |
| | | 2004
| | | 2003
| | |
Cash and due from banks | | $ | 232,407 | | | $ | 251,364 | | | (7.5 | )% |
Interest-earning deposits with banks | | | 32,919 | | | | 22,808 | | | 44.3 | |
Loans held for sale | | | 9,433 | | | | 28,062 | | | (66.4 | ) |
Securities available for sale | | | 3,091,813 | | | | 2,511,369 | | | 23.1 | |
Total loans | | | 10,616,118 | | | | 8,644,645 | | | 22.8 | |
Allowance for credit losses | | | (151,389 | ) | | | (124,943 | ) | | 21.2 | |
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Net loans | | | 10,464,729 | | | | 8,519,702 | | | 22.8 | |
Premises and equipment | | | 155,466 | | | | 153,285 | | | 1.4 | |
Goodwill and other intangibles | | | 546,932 | | | | 237,014 | | | 130.8 | |
Assets of discontinued operations | | | — | | | | 874,765 | | | (100.0 | ) |
Other assets | | | 410,724 | | | | 348,609 | | | 17.8 | |
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Total Assets | | $ | 14,944,423 | | | $ | 12,946,978 | | | 15.4 | |
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Total interest-earning assets | | $ | 13,750,283 | | | $ | 11,206,884 | | | 22.7 | |
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Non-interest-bearing deposits | | $ | 1,592,510 | | | $ | 1,233,272 | | | 29.1 | |
Interest-bearing deposits | | | 8,759,081 | | | | 7,282,261 | | | 20.3 | |
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Total deposits | | | 10,351,591 | | | | 8,515,533 | | | 21.6 | |
Repos and federal funds purchased | | | 1,041,361 | | | | 994,896 | | | 4.7 | |
Debt and FHLB advances | | | 1,924,840 | | | | 1,476,564 | | | 30.4 | |
Liabilities of discontinued operations | | | — | | | | 822,498 | | | (100.0 | ) |
Other liabilities | | | 155,676 | | | | 138,911 | | | 12.1 | |
Shareholders’ equity | | | 1,470,955 | | | | 998,576 | | | 47.3 | |
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Total Liabilities and Shareholders’ Equity | | $ | 14,944,423 | | | $ | 12,946,978 | | | 15.4 | |
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7
Summary Financials - Fourth Quarter 2004
AVERAGE BALANCE SHEETS (Unaudited)
(Dollars in thousands)
| | | | | | | | | | | | | | | | | | | | | | |
| | | Three months ended December 31,
| | | Percent
Change
| | | Twelve months ended December 31,
| | | Percent
Change
| |
| | | 2004
| | | 2003
| | | | 2004
| | | 2003
| | |
Cash and due from banks | | $ | 244,726 | | | $ | 202,720 | | | 20.7 | % | | $ | 228,431 | | | $ | 191,458 | | | 19.3 | |
Interest-earning deposits with banks | | | 36,498 | | | | 39,238 | | | (7.0 | ) | | | 37,187 | | | | 33,534 | | | 10.9 | |
Federal funds sold | | | 2,186 | | | | 8,497 | | | (74.3 | ) | | | 2,573 | | | | 3,200 | | | (19.6 | ) |
Loans held for sale | | | 27,601 | | | | 28,980 | | | (4.8 | ) | | | 30,323 | | | | 71,552 | | | (57.6 | ) |
Securities available for sale | | | 3,075,580 | | | | 2,508,711 | | | 22.6 | | | | 2,795,189 | | | | 2,440,986 | | | 14.5 | |
Total loans | | | 10,400,806 | | | | 8,546,675 | | | 21.7 | | | | 9,462,682 | | | | 8,103,732 | | | 16.8 | |
Allowance for credit losses | | | (149,288 | ) | | | (123,629 | ) | | 20.8 | | | | (136,526 | ) | | | (118,177 | ) | | 15.5 | |
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Net loans | | | 10,251,518 | | | | 8,423,046 | | | 21.7 | | | | 9,326,156 | | | | 7,985,555 | | | 16.8 | |
Premises and equipment | | | 154,329 | | | | 153,866 | | | 0.3 | | | | 153,486 | | | | 146,322 | | | 4.9 | |
Goodwill and other intangibles | | | 527,525 | | | | 228,836 | | | 130.5 | | | | 384,681 | | | | 197,745 | | | 94.5 | |
Assets of discontinued operations | | | — | | | | 837,579 | | | (100.0 | ) | | | 215,013 | | | | 737,476 | | | (70.8 | ) |
Other assets | | | 431,688 | | | | 376,770 | | | 14.6 | | | | 402,530 | | | | 358,919 | | | 12.2 | |
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Total Assets | | $ | 14,751,651 | | | $ | 12,808,243 | | | 15.2 | | | $ | 13,575,569 | | | $ | 12,166,747 | | | 11.6 | |
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Total interest-earning assets | | $ | 13,542,671 | | | $ | 11,132,101 | | | 21.7 | | | $ | 12,327,954 | | | $ | 10,653,004 | | | 15.7 | |
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Non-interest-bearing deposits | | $ | 1,573,004 | | | $ | 1,214,826 | | | 29.5 | | | $ | 1,402,627 | | | $ | 1,107,941 | | | 26.6 | |
Interest-bearing deposits | | | 8,724,960 | | | | 7,427,640 | | | 17.5 | | | | 8,102,221 | | | | 7,292,802 | | | 11.1 | |
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|
Total deposits | | | 10,297,964 | | | | 8,642,466 | | | 19.2 | | | | 9,504,848 | | | | 8,400,743 | | | 13.1 | |
Repos and federal funds purchased | | | 944,788 | | | | 917,789 | | | 2.9 | | | | 897,438 | | | | 849,464 | | | 5.6 | |
Debt and FHLB advances | | | 1,927,205 | | | | 1,359,818 | | | 41.7 | | | | 1,601,932 | | | | 1,191,430 | | | 34.5 | |
Liabilities of discontinued operations | | | — | | | | 787,410 | | | (100.0 | ) | | | 201,842 | | | | 694,010 | | | (70.9 | ) |
Other liabilities | | | 133,619 | | | | 122,436 | | | 9.1 | | | | 135,442 | | | | 122,306 | | | 10.7 | |
Shareholders’ equity | | | 1,448,075 | | | | 978,324 | | | 48.0 | | | | 1,234,067 | | | | 908,794 | | | 35.8 | |
| | |
|
|
| |
|
|
| |
|
| |
|
|
| |
|
|
| |
|
|
Total Liabilities and Shareholders’ Equity | | $ | 14,751,651 | | | $ | 12,808,243 | | | 15.2 | | | $ | 13,575,569 | | | $ | 12,166,747 | | | 11.6 | |
| | |
|
|
| |
|
|
| |
|
| |
|
|
| |
|
|
| |
|
|
ASSET QUALITY DATA:
| | | | | | | | |
| | | December 31,
| |
| | | 2004
| | | 2003
| |
Non-accrual loans | | $ | 143,207 | | | $ | 81,979 | |
Restructured loans | | | 541 | | | | 599 | |
| | |
|
|
| |
|
|
|
Total non-performing loans | | | 143,748 | | | | 82,578 | |
Investment securities | | | 11,705 | | | | | |
Other real estate owned | | | 10,055 | | | | 10,441 | |
| | |
|
|
| |
|
|
|
Total non-performing assets | | $ | 165,508 | | | $ | 93,019 | |
| | |
|
|
| |
|
|
|
Loans 90 days or more past due & still accruing | | $ | 16,243 | | | $ | 13,841 | |
Allowance for credit losses | | | 151,389 | | | | 124,943 | |
| | |
ASSET QUALITY RATIOS: | | | | | | | | |
| | |
Non-accrual loans to total loans | | | 1.35 | % | | | 0.95 | % |
Non-performing loans to total loans | | | 1.35 | | | | 0.96 | |
Non-performing assets to total assets | | | 1.11 | | | | 0.72 | |
Loans 90 days or more past due and still accruing to total loans | | | 0.15 | | | | 0.16 | |
Allowance for credit losses to non-performing loans | | | 105.32 | | | | 151.30 | |
Allowance for credit losses to non-performing assets | | | 91.47 | | | | 134.32 | |
Allowance for credit losses to total loans | | | 1.43 | | | | 1.45 | |
NET CHARGE-OFFS
| | | | | | |
| | | Three months ended December 31,
|
| | | 2004
| | 2003
|
Net charge-offs | | $ | 9,864 | | $ | 9,330 |
Net charge-offs to average loans | | | 0.38 | | | 0.43 |
| |
| | | Twelve months ended December 31,
|
| | | 2004
| | 2003
|
Net charge-offs | | $ | 34,937 | | $ | 32,916 |
Net charge-offs to average loans | | | 0.37 | | | 0.40 |
8
Summary Financials - Fourth Quarter 2004
SKY FINANCIAL GROUP, INC.
*NON-GAAP DISCLOSURE RECONCILIATIONS
(Dollars in thousands)
Core operating earnings reflect net income adjusted to exclude the after-tax effect of discontinued operations, merger, integration and restructuring expenses that are not reflective of on-going operations or are not expected to recur. Cash operating earnings are core operating earnings adjusted to exclude the after-tax effect of amortizing core deposits and other intangibles. Management believes that both core operating earnings and cash operating earnings assist the investor in understanding the impact of merger, integration and restructuring expenses and amortization of intangibles on reported results.
Core operating earnings
The following reconciles GAAP income from continuing operations to core operating earnings for the three and twelve months ended December 31, 2004 and 2003:
| | | | | | | | | | | | | | | | |
| | | Three months ended
December 31,
| | | Twelve months ended
December 31,
| |
| | | 2004
| | | 2003
| | | 2004
| | | 2003
| |
Income from continuing operations | | $ | 48,899 | | | $ | 39,585 | | | $ | 175,200 | | | $ | 152,680 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Merger, integration and restructuring expense | | | 365 | | | | 1,091 | | | | 4,542 | | | | 4,577 | |
Tax effect | | | (128 | ) | | | (382 | ) | | | (1,590 | ) | | | (1,602 | ) |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
After-tax non-operating items | | | 237 | | | | 709 | | | | 2,952 | | | | 2,975 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Core operating earnings | | $ | 49,136 | | | $ | 40,294 | | | $ | 178,152 | | | $ | 155,655 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Merger, integration and restructuring expense in 2004 reflect charges associated with the acquisition of Prospect Bancshares, Inc., Second Bancorp, Inc. and the sale of Sky Financial Solutions, Inc. in the fourth, third and first quarters, respectively.
Core operating earnings is used as the numerator to calculate core operating return on average assets, core operating return on average equity and core operating earnings per share. Additionally, merger, integration and restructuring expenses are deducted from non-interest expense in the numerator of the core operating efficiency ratio disclosed in the tables. The comparable information on a GAAP basis is also provided in the tables.
Cash operating earnings
The following table reconciles core operating earnings to cash operating earnings for the three and twelve months ended December 31, 2004 and 2003:
| | | | | | | | | | | | | | | | |
| | | Three months ended
December 31,
| | | Twelve months ended
December 31,
| |
| | | 2004
| | | 2003
| | | 2004
| | | 2003
| |
Core operating earnings | | $ | 49,136 | | | $ | 40,294 | | | $ | 178,152 | | | $ | 155,655 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Amortization of core deposits and other intangible assets | | | 3,577 | | | | 1,903 | | | | 10,979 | | | | 6,896 | |
Tax effect | | | (1,252 | ) | | | (666 | ) | | | (3,843 | ) | | | (2,414 | ) |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
After-tax non-operating items | | | 2,325 | | | | 1,237 | | | | 7,136 | | | | 4,482 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Cash operating earnings | | $ | 51,461 | | | $ | 41,531 | | | $ | 185,289 | | | $ | 160,137 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Cash operating earnings is used as the numerator to calculate the cash operating return on average tangible equity and the cash operating return on average tangible assets. The denominator of each ratio is adjusted to deduct the average balance of intangible assets during the period. Additionally, amortization of core deposits and other intangible assets and merger, integration and restructuring expenses are deducted from non-interest expense in the numerator of the cash operating efficiency ratio disclosed in the tables. The comparable GAAP information is also included in the tables.
9
Summary Financials - Fourth Quarter 2004
The following table reconciles average GAAP equity to average tangible equity for the twelve months ended December 31, 2004 and 2003, as well as for each of the period ends presented in the tables.
| | | | | | | | | | | | | | | | |
| | | Three months ended
December 31,
| | | Twelve months ended
December 31,
| |
| | | 2004
| | | 2003
| | | 2004
| | | 2003
| |
Average GAAP equity | | $ | 1,448,075 | | | $ | 978,324 | | | $ | 1,234,067 | | | $ | 908,794 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Goodwill | | | 454,488 | | | | 174,660 | | | | 322,487 | | | | 147,370 | |
Core deposits and other intangibles | | | 73,037 | | | | 54,176 | | | | 62,194 | | | | 50,375 | |
Deferred taxes | | | (25,563 | ) | | | (18,962 | ) | | | (21,768 | ) | | | (17,631 | ) |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
| | | | 501,962 | | | | 209,874 | | | | 362,913 | | | | 180,114 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Average tangible equity | | $ | 946,113 | | | $ | 768,450 | | | $ | 871,154 | | | $ | 728,680 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
The following table reconciles average GAAP assets to average tangible assets for the three and twelve months ended December 31, 2004 and 2003:
| | | | | | | | | | | | | | | | |
| | | Three months ended December 31,
| | | Twelve months ended
December 31,
| |
| | | 2004
| | | 2003
| | | 2004
| | | 2003
| |
Average GAAP assets (excluding discontinued operations) | | $ | 14,751,651 | | | $ | 11,970,664 | | | $ | 13,360,556 | | | $ | 11,429,271 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Goodwill | | | 454,488 | | | | 174,660 | | | | 322,487 | | | | 147,370 | |
Core deposits and other intangibles | | | 73,037 | | | | 54,176 | | | | 62,194 | | | | 50,375 | |
Deferred taxes | | | (25,563 | ) | | | (18,962 | ) | | | (21,768 | ) | | | (17,631 | ) |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
| | | | 501,962 | | | | 209,874 | | | | 362,913 | | | | 180,114 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Average tangible assets | | $ | 14,249,689 | | | $ | 11,760,790 | | | $ | 12,997,643 | | | $ | 11,249,157 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
The following table reconciles GAAP earnings per share to operating earnings per share, core operating earnings per share and cash operating earnings per share:
| | | | | | | | | | | | | | | | |
| | | Three months ended
December 31,
| | | Twelve months ended December 31,
| |
Basic EPS
| | 2004
| | | 2003
| | | 2004
| | | 2003
| |
Net income | | $ | 0.47 | | | $ | 0.45 | | | $ | 1.95 | | | $ | 1.75 | |
After-tax earnings from discontinued operations | | $ | (0.00 | ) | | | (0.02 | ) | | | (0.19 | ) | | | (0.04 | ) |
After-tax merger, integration and restructuring | | $ | 0.00 | | | | 0.00 | | | | 0.03 | | | | 0.03 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Core operating earnings | | $ | 0.46 | | | | 0.43 | | | | 1.79 | | | | 1.74 | |
After-tax amortization of core deposits and other intangible assets | | | 0.02 | | | | 0.01 | | | | 0.07 | | | | 0.05 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Cash operating earnings | | $ | 0.49 | | | $ | 0.45 | | | $ | 1.86 | | | $ | 1.79 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
| | |
| | | Three months ended December 31,
| | | Twelve months ended December 31,
| |
Diluted EPS
| | 2004
| | | 2003
| | | 2004
| | | 2003
| |
Net income | | $ | 0.46 | | | $ | 0.45 | | | $ | 1.93 | | | $ | 1.73 | |
After-tax earnings from discontinued operations | | | (0.00 | ) | | | (0.02 | ) | | | (0.19 | ) | | | (0.04 | ) |
After-tax merger, integration and restructuring | | | 0.00 | | | | — | | | | 0.03 | | | | 0.03 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Core operating earnings | | | 0.46 | | | | 0.43 | | | | 1.77 | | | | 1.72 | |
After-tax amortization of core deposits and other intangible assets | | | 0.02 | | | | 0.01 | | | | 0.07 | | | | 0.05 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Cash operating earnings | | $ | 0.48 | | | $ | 0.45 | | | $ | 1.84 | | | $ | 1.77 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
- end -
10
Fourth Quarter 2004
Supplemental Financial Information
January 25, 2005
Supplemental Financial Information - Fourth Quarter 2004
SKY FINANCIAL GROUP, INC.
FIVE QUARTER STATEMENTS OF INCOME (unaudited)
(Dollars in thousands)
| | | | | | | | | | | | | | | |
| | | 2004
| | 2003
|
| | | 4th qtr
| | 3rd qtr
| | 2nd qtr
| | 1st qtr
| | 4th qtr
|
Fully taxable equivalent interest income | | $ | 186,929 | | $ | 179,675 | | $ | 148,839 | | $ | 149,872 | | $ | 151,054 |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
Interest income | | $ | 186,124 | | $ | 178,772 | | $ | 148,027 | | $ | 149,021 | | $ | 150,407 |
Interest expense | | | 61,819 | | | 56,256 | | | 45,339 | | | 47,218 | | | 47,358 |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
Net interest income | | | 124,305 | | | 122,516 | | | 102,688 | | | 101,803 | | | 103,049 |
Provision for credit losses | | | 11,615 | | | 8,360 | | | 11,020 | | | 6,665 | | | 9,975 |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
Net interest income after provision for credit losses | | | 112,690 | | | 114,156 | | | 91,668 | | | 95,138 | | | 93,074 |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
Non-interest income | | | | | | | | | | | | | | | |
Trust services income | | | 4,996 | | | 5,079 | | | 4,101 | | | 4,105 | | | 3,773 |
Service charges and fees on deposit accounts | | | 13,395 | | | 13,820 | | | 11,107 | | | 9,642 | | | 10,182 |
Mortgage banking income | | | 5,675 | | | 6,845 | | | 6,879 | | | 5,445 | | | 5,231 |
Brokerage and insurance commissions | | | 13,358 | | | 14,703 | | | 13,451 | | | 14,308 | | | 11,233 |
Net securities gains (losses) | | | 8,310 | | | 1,854 | | | 2,877 | | | 1,528 | | | 2,345 |
Other income | | | 11,918 | | | 10,446 | | | 11,192 | | | 8,381 | | | 9,285 |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
Total non-interest income | | | 57,652 | | | 52,747 | | | 49,607 | | | 43,409 | | | 42,049 |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
Non-interest expenses | | | | | | | | | | | | | | | |
Salaries and employee benefits | | | 53,190 | | | 51,583 | | | 44,190 | | | 44,648 | | | 39,726 |
Occupancy and equipment expense | | | 16,824 | | | 15,962 | | | 13,436 | | | 12,874 | | | 13,312 |
Merger, integration and restructuring expense | | | 365 | | | 3,831 | | | — | | | 346 | | | 1,091 |
Other operating expenses | | | 27,452 | | | 26,516 | | | 24,672 | | | 20,635 | | | 22,513 |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
Total non-interest expense | | | 97,831 | | | 97,892 | | | 82,298 | | | 78,503 | | | 76,642 |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
Income from continuing operations before income taxes | | | 72,511 | | | 69,011 | | | 58,977 | | | 60,044 | | | 58,481 |
Income taxes from continuing operations | | | 23,612 | | | 22,863 | | | 18,776 | | | 20,092 | | | 18,896 |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
Income from continuing operations | | | 48,899 | | | 46,148 | | | 40,201 | | | 39,952 | | | 39,585 |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
Income from discontinued operations, net of tax | | | 430 | | | — | | | — | | | 18,725 | | | 1,881 |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
Net income | | $ | 49,329 | | $ | 46,148 | | $ | 40,201 | | $ | 58,677 | | $ | 41,466 |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
Core operating earnings | | $ | 49,136 | | $ | 48,638 | | $ | 40,201 | | $ | 39,570 | | $ | 40,294 |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
1
Supplemental Financial Information - Fourth Quarter 2004
SKY FINANCIAL GROUP, INC.
FIVE QUARTER PERFORMANCE RATIOS AND SHARE DATA
(Unaudited)
PERFORMANCE RATIOS
| | | | | | | | | | | | | | | |
| | | 2004
| | | 2003
| |
ACTUAL
| | 4th qtr
| | | 3rd qtr
| | | 2nd qtr
| | | 1st qtr
| | | 4th qtr
| |
Return on average equity | | 13.55 | % | | 13.21 | % | | 15.25 | % | | 22.77 | % | | 16.82 | % |
Return on average assets | | 1.33 | | | 1.26 | | | 1.33 | | | 1.83 | | | 1.28 | |
| | |
| | | 2004
| | | 2003
| |
CONTINUING OPERATIONS
| | 4th qtr
| | | 3rd qtr
| | | 2nd qtr
| | | 1st qtr
| | | 4th qtr
| |
Return on average equity | | 13.43 | % | | 13.21 | % | | 15.25 | % | | 15.50 | % | | 16.05 | % |
Return on average assets | | 1.32 | | | 1.26 | | | 1.33 | | | 1.33 | | | 1.31 | |
Net interest rate spread (FTE) | | 3.37 | | | 3.43 | | | 3.41 | | | 3.42 | | | 3.45 | |
Net interest rate margin (FTE) | | 3.68 | | | 3.69 | | | 3.69 | | | 3.68 | | | 3.70 | |
Efficiency ratio | | 53.53 | | | 55.57 | | | 53.75 | | | 53.75 | | | 52.59 | |
| | |
| | | 2004
| | | 2003
| |
CORE OPERATING *
| | 4th qtr
| | | 3rd qtr
| | | 2nd qtr
| | | 1st qtr
| | | 4th qtr
| |
Return on average equity | | 13.50 | % | | 13.92 | % | | 15.25 | % | | 15.36 | % | | 16.34 | % |
Return on average assets | | 1.33 | | | 1.33 | | | 1.33 | | | 1.32 | | | 1.34 | |
Efficiency ratio | | 53.33 | | | 53.39 | | | 53.75 | | | 53.51 | | | 51.84 | |
| | |
| | | 2004
| | | 2003
| |
CASH OPERATING*
| | 4th qtr
| | | 3rd qtr
| | | 2nd qtr
| | | 1st qtr
| | | 4th qtr
| |
Return on average tangible equity | | 21.64 | % | | 22.52 | % | | 20.09 | % | | 20.28 | % | | 21.44 | % |
Return on average assets | | 1.44 | | | 1.44 | | | 1.40 | | | 1.39 | | | 1.40 | |
Efficiency ratio | | 51.37 | | | 51.38 | | | 52.48 | | | 52.20 | | | 50.53 | |
2
Supplemental Financial Information - Fourth Quarter 2004
SKY FINANCIAL GROUP, INC.
FIVE QUARTER SHARE DATA
(Unaudited)
| | | | | | | | | | | | | | | |
| | | 2004
| | 2003
|
| | | 4th qtr
| | 3rd qtr
| | 2nd qtr
| | 1st qtr
| | 4th qtr
|
Earnings per share from continuing operations | | | | | | | | | | | | | | | |
Basic | | $ | 0.46 | | $ | 0.44 | | $ | 0.43 | | $ | 0.43 | | $ | 0.43 |
Diluted | | | 0.46 | | | 0.43 | | | 0.43 | | | 0.42 | | | 0.43 |
| | | | | |
Earnings per share from discontinued operations | | | | | | | | | | | | | | | |
Basic | | | 0.00 | | | — | | | — | | | 0.20 | | | 0.02 |
Diluted | | | 0.00 | | | — | | | — | | | 0.20 | | | 0.02 |
| | | | | |
Earnings per share | | | | | | | | | | | | | | | |
Basic | | | 0.47 | | | 0.44 | | | 0.43 | | | 0.63 | | | 0.45 |
Diluted | | | 0.46 | | | 0.43 | | | 0.43 | | | 0.62 | | | 0.45 |
| | | | | |
Core operating earnings per share* | | | | | | | | | | | | | | | |
Basic | | | 0.46 | | | 0.46 | | | 0.43 | | | 0.43 | | | 0.44 |
Diluted | | | 0.46 | | | 0.46 | | | 0.43 | | | 0.42 | | | 0.43 |
| | | | | |
Cash operating earnings per share* | | | | | | | | | | | | | | | |
Basic | | | 0.49 | | | 0.48 | | | 0.44 | | | 0.44 | | | 0.45 |
Diluted | | | 0.48 | | | 0.48 | | | 0.44 | | | 0.44 | | | 0.45 |
| | | | | |
Cash dividend declared per common share | | | 0.22 | | | 0.21 | | | 0.21 | | | 0.21 | | | 0.21 |
| | | | | |
Book value per share | | | 13.77 | | | 13.44 | | | 11.13 | | | 11.46 | | | 10.80 |
| | | | | |
Average shares outstanding | | | | | | | | | | | | | | | |
Basic | | | 105,922,000 | | | 105,479,000 | | | 93,322,000 | | | 92,957,000 | | | 92,019,000 |
Diluted | | | 107,163,000 | | | 106,408,000 | | | 94,314,000 | | | 94,226,000 | | | 93,122,000 |
| | | | | |
Book value calculation shares outstanding | | | 106,838,511 | | | 105,372,832 | | | 93,420,000 | | | 93,063,000 | | | 92,459,000 |
3
Supplemental Financial Information - Fourth Quarter 2004
SKY FINANCIAL GROUP, INC.
FIVE QUARTER AVERAGE BALANCE SHEETS (Unaudited)
(Dollars in thousands)
| | | | | | | | | | | | | | | | | | | | |
| | | 2004
| | | 2003
| |
| | | 4th qtr
| | | 3rd qtr
| | | 2nd qtr
| | | 1st qtr
| | | 4th qtr
| |
Cash and due from banks | | $ | 244,726 | | | $ | 252,731 | | | $ | 198,246 | | | $ | 217,575 | | | $ | 202,720 | |
Interest-earning deposits with banks | | | 36,498 | | | | 42,017 | | | | 36,385 | | | | 33,800 | | | | 39,238 | |
Federal funds sold | | | 2,186 | | | | 2,065 | | | | 885 | | | | 5,165 | | | | 8,497 | |
Loans held for sale | | | 27,601 | | | | 30,139 | | | | 31,866 | | | | 31,720 | | | | 28,980 | |
Securities available for sale | | | 3,075,580 | | | | 3,078,861 | | | | 2,570,976 | | | | 2,449,138 | | | | 2,508,711 | |
Total loans | | | 10,400,806 | | | | 10,139,711 | | | | 8,631,914 | | | | 8,660,549 | | | | 8,546,675 | |
Allowance for credit losses | | | (149,288 | ) | | | (147,056 | ) | | | (124,752 | ) | | | (124,751 | ) | | | (123,629 | ) |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Net loans | | | 10,251,518 | | | | 9,992,655 | | | | 8,507,162 | | | | 8,535,798 | | | | 8,423,046 | |
Premises and equipment | | | 154,329 | | | | 159,328 | | | | 147,058 | | | | 153,155 | | | | 153,866 | |
Goodwill and other intangibles | | | 527,525 | | | | 516,673 | | | | 247,469 | | | | 244,035 | | | | 228,836 | |
Assets of discontinued operations | | | — | | | | — | | | | — | | | | 864,779 | | | | 837,579 | |
Other assets | | | 431,688 | | | | 448,680 | | | | 374,374 | | | | 354,550 | | | | 376,770 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Total Assets | | $ | 14,751,651 | | | $ | 14,523,149 | | | $ | 12,114,421 | | | $ | 12,889,715 | | | $ | 12,808,243 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Total interest-earning assets | | $ | 13,542,671 | | | $ | 13,292,793 | | | $ | 11,272,026 | | | $ | 11,180,372 | | | $ | 11,132,101 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Non-interest-bearing deposits | | $ | 1,573,004 | | | $ | 1,508,074 | | | $ | 1,297,932 | | | $ | 1,228,468 | | | $ | 1,214,826 | |
Interest-bearing deposits | | | 8,724,960 | | | | 8,704,452 | | | | 7,517,853 | | | | 7,448,158 | | | | 7,427,640 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Total deposits | | | 10,297,964 | | | | 10,212,526 | | | | 8,815,785 | | | | 8,676,626 | | | | 8,642,466 | |
Repos and federal funds purchased | | | 944,788 | | | | 867,547 | | | | 788,596 | | | | 988,628 | | | | 917,789 | |
Debt and FHLB advances | | | 1,927,205 | | | | 1,916,452 | | | | 1,309,167 | | | | 1,247,874 | | | | 1,359,818 | |
Liabilities of discontinued operations | | | — | | | | — | | | | — | | | | 811,805 | | | | 787,410 | |
Other liabilities | | | 133,619 | | | | 136,611 | | | | 140,355 | | | | 131,183 | | | | 122,436 | |
Shareholders’ equity | | | 1,448,075 | | | | 1,390,013 | | | | 1,060,518 | | | | 1,033,599 | | | | 978,324 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Total Liabilities and Shareholders’ Equity | | $ | 14,751,651 | | | $ | 14,523,149 | | | $ | 12,114,421 | | | $ | 12,889,715 | | | $ | 12,808,243 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
4
Supplemental Financial Information - Fourth Quarter 2004
SKY FINANCIAL GROUP, INC.
FIVE QUARTER ACTUAL BALANCE SHEETS (Unaudited)
(Dollars in thousands)
| | | | | | | | | | | | | | | | | | | | |
| | | 2004
| | | 2003
| |
| | | 4th qtr
| | | 3rd qtr
| | | 2nd qtr
| | | 1st qtr
| | | 4th qtr
| |
Cash and due from banks | | $ | 232,407 | | | $ | 238,820 | | | $ | 223,255 | | | $ | 200,783 | | | $ | 251,364 | |
Interest-earning deposits with banks | | | 32,919 | | | | 30,118 | | | | 27,100 | | | | 29,051 | | | | 22,808 | |
Loans held for sale | | | 9,433 | | | | 31,107 | | | | 15,834 | | | | 57,650 | | | | 28,062 | |
Securities available for sale | | | 3,091,813 | | | | 3,118,884 | | | | 2,541,687 | | | | 2,613,816 | | | | 2,511,369 | |
Total loans | | | 10,616,118 | | | | 10,262,393 | | | | 8,794,596 | | | | 8,555,651 | | | | 8,644,645 | |
Allowance for credit losses | | | (151,389 | ) | | | (147,479 | ) | | | (125,661 | ) | | | (125,043 | ) | | | (124,943 | ) |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Net loans | | | 10,464,729 | | | | 10,114,914 | | | | 8,668,935 | | | | 8,430,608 | | | | 8,519,702 | |
Premises and equipment | | | 155,466 | | | | 154,252 | | | | 145,315 | | | | 152,621 | | | | 153,285 | |
Goodwill and other intangibles | | | 546,932 | | | | 520,221 | | | | 246,586 | | | | 243,356 | | | | 237,014 | |
Assets of discontinued operations | | | — | | | | — | | | | — | | | | — | | | | 874,765 | |
Other assets | | | 410,724 | | | | 434,816 | | | | 373,171 | | | | 365,506 | | | | 348,609 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Total Assets | | $ | 14,944,423 | | | $ | 14,643,132 | | | $ | 12,241,883 | | | $ | 12,093,391 | | | $ | 12,946,978 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Total interest-earning assets | | $ | 13,750,283 | | | $ | 13,442,502 | | | $ | 11,379,217 | | | $ | 11,256,168 | | | $ | 11,206,884 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Non-interest-bearing deposits | | $ | 1,592,510 | | | $ | 1,477,061 | | | $ | 1,297,942 | | | $ | 1,229,981 | | | $ | 1,233,272 | |
Interest-bearing deposits | | | 8,759,081 | | | | 8,677,287 | | | | 7,484,259 | | | | 7,541,365 | | | | 7,282,261 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Total deposits | | | 10,351,591 | | | | 10,154,348 | | | | 8,782,201 | | | | 8,771,346 | | | | 8,515,533 | |
Repos and federal funds purchased | | | 1,041,361 | | | | 921,175 | | | | 844,738 | | | | 931,792 | | | | 994,896 | |
Debt and FHLB advances | | | 1,924,840 | | | | 1,989,806 | | | | 1,436,707 | | | | 1,156,419 | | | | 1,476,564 | |
Liabilities of discontinued operations | | | — | | | | — | | | | — | | | | — | | | | 822,498 | |
Other liabilities | | | 155,676 | | | | 161,388 | | | | 138,029 | | | | 167,677 | | | | 138,911 | |
Shareholders’ equity | | | 1,470,955 | | | | 1,416,415 | | | | 1,040,208 | | | | 1,066,157 | | | | 998,576 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Total Liabilities and Shareholders’ Equity | | $ | 14,944,423 | | | $ | 14,643,132 | | | $ | 12,241,883 | | | $ | 12,093,391 | | | $ | 12,946,978 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
5
Supplemental Financial Information - Fourth Quarter 2004
SKY FINANCIAL GROUP, INC.
FIVE QUARTER LOAN TABLE (Unaudited)
(Dollars in thousands)
| | | | | | | | | | | | | | | | | | | | |
| | | 2004
| | | 2003
| |
ACTUAL
| | 4th qtr
| | | 3rd qtr
| | | 2nd qtr
| | | 1st qtr
| | | 4th qtr
| |
Residential Mortgage | | $ | 1,110,943 | | | $ | 1,037,229 | | | $ | 905,249 | | | $ | 891,088 | | | $ | 905,007 | |
Home Equity | | | 1,728,599 | | | | 1,658,344 | | | | 1,266,508 | | | | 1,176,581 | | | | 1,140,310 | |
Consumer | | | 807,686 | | | | 846,412 | | | | 694,732 | | | | 717,789 | | | | 770,901 | |
Commercial Real Estate | | | 4,406,151 | | | | 4,225,070 | | | | 3,417,236 | | | | 3,455,525 | | | | 3,387,202 | |
Commercial & Industrial | | | 2,562,739 | | | | 2,495,338 | | | | 2,510,871 | | | | 2,314,668 | | | | 2,441,225 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Total Loans | | $ | 10,616,118 | | | $ | 10,262,393 | | | $ | 8,794,596 | | | $ | 8,555,651 | | | $ | 8,644,645 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Residential Mortgage | | | 14 | % | | | 10 | % | | | 10 | % | | | 10 | % | | | 10 | % |
Home Equity | | | 16 | % | | | 16 | % | | | 14 | % | | | 14 | % | | | 13 | % |
Consumer | | | 8 | % | | | 8 | % | | | 8 | % | | | 8 | % | | | 9 | % |
Commercial Real Estate | | | 38 | % | | | 42 | % | | | 39 | % | | | 41 | % | | | 40 | % |
Commercial & Industrial | | | 24 | % | | | 24 | % | | | 29 | % | | | 27 | % | | | 28 | % |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Total Loans | | | 100 | % | | | 100 | % | | | 100 | % | | | 100 | % | | | 100 | % |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
| | | | | | | | | | | | | | | | | | | | |
| | | 2004
| | | 2003
| |
AVERAGES
| | 4th qtr
| | | 3rd qtr
| | | 2nd qtr
| | | 1st qtr
| | | 4th qtr
| |
Residential Mortgage | | $ | 1,067,456 | | | $ | 1,058,878 | | | $ | 896,779 | | | $ | 897,703 | | | $ | 780,998 | |
Home Equity | | | 1,694,828 | | | | 1,630,492 | | | | 1,219,822 | | | | 1,159,333 | | | | 1,163,658 | |
Consumer | | | 826,807 | | | | 865,205 | | | | 710,848 | | | | 751,371 | | | | 778,355 | |
Commercial Real Estate | | | 4,281,441 | | | | 4,071,301 | | | | 3,523,316 | | | | 3,483,465 | | | | 3,440,354 | |
Commercial & Industrial | | | 2,530,274 | | | | 2,513,835 | | | | 2,281,149 | | | | 2,368,677 | | | | 2,383,310 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Total Loans | | $ | 10,400,806 | | | $ | 10,139,711 | | | $ | 8,631,914 | | | $ | 8,660,549 | | | $ | 8,546,675 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Residential Mortgage | | | 10 | % | | | 10 | % | | | 10 | % | | | 10 | % | | | 9 | % |
Home Equity | | | 16 | % | | | 16 | % | | | 14 | % | | | 13 | % | | | 14 | % |
Consumer | | | 8 | % | | | 9 | % | | | 8 | % | | | 9 | % | | | 9 | % |
Commercial Real Estate | | | 42 | % | | | 40 | % | | | 42 | % | | | 41 | % | | | 40 | % |
Commercial & Industrial | | | 24 | % | | | 25 | % | | | 26 | % | | | 27 | % | | | 28 | % |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Total Loans | | | 100 | % | | | 100 | % | | | 100 | % | | | 100 | % | | | 100 | % |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
6
Supplemental Financial Information - Fourth Quarter 2004
SKY FINANCIAL GROUP, INC.
FIVE QUARTER FUNDING TABLE (Unaudited)
(Dollars in thousands)
| | | | | | | | | | | | | | | |
| | | 2004
| | 2003
|
ACTUAL
| | 4th qtr
| | 3rd qtr
| | 2nd qtr
| | 1st qtr
| | 4th qtr
|
Non-interest-bearing demand deposits | | $ | 1,592,510 | | $ | 1,477,061 | | $ | 1,297,942 | | $ | 1,229,981 | | $ | 1,233,272 |
Interest-bearing demand deposits | | | 325,751 | | | 389,986 | | | 238,646 | | | 257,931 | | | 223,096 |
Savings deposits | | | 3,874,943 | | | 3,979,107 | | | 3,493,196 | | | 3,610,996 | | | 3,447,033 |
Time deposits | | | 4,558,387 | | | 4,308,194 | | | 3,752,417 | | | 3,672,438 | | | 3,612,132 |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
Total deposits | | | 10,351,591 | | | 10,154,348 | | | 8,782,201 | | | 8,771,346 | | | 8,515,533 |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
Short-term borrowings | | | 1,041,361 | | | 921,175 | | | 844,738 | | | 931,792 | | | 994,896 |
Trust preferred securities | | | 189,558 | | | 185,067 | | | 145,583 | | | 169,669 | | | 164,805 |
Debt and FHLB advances | | | 1,735,282 | | | 1,804,739 | | | 1,291,123 | | | 986,751 | | | 1,311,759 |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
Total funding sources | | $ | 13,317,792 | | $ | 13,065,329 | | $ | 11,063,645 | | $ | 10,859,558 | | $ | 10,986,210 |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
| | |
| | | 2004
| | 2003
|
AVERAGE
| | 4th qtr
| | 3rd qtr
| | 2nd qtr
| | 1st qtr
| | 4th qtr
|
Non-interest-bearing demand deposits | | $ | 1,573,004 | | $ | 1,508,074 | | $ | 1,297,932 | | $ | 1,228,468 | | $ | 1,214,826 |
Interest-bearing demand deposits | | | 362,352 | | | 353,368 | | | 239,174 | | | 238,777 | | | 262,812 |
Savings deposits | | | 3,939,766 | | | 4,014,051 | | | 3,554,212 | | | 3,558,869 | | | 3,517,407 |
Time deposits | | | 4,422,842 | | | 4,337,033 | | | 3,724,467 | | | 3,650,512 | | | 3,647,421 |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
Total deposits | | | 10,297,964 | | | 10,212,526 | | | 8,815,785 | | | 8,676,626 | | | 8,642,466 |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
Short-term borrowings | | | 944,788 | | | 867,547 | | | 788,596 | | | 988,628 | | | 917,789 |
Trust preferred securities | | | 186,669 | | | 182,288 | | | 163,503 | | | 164,859 | | | 165,800 |
Debt and FHLB advances | | | 1,740,535 | | | 1,734,164 | | | 1,145,664 | | | 1,083,015 | | | 1,194,018 |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
Total funding sources | | $ | 13,169,955 | | $ | 12,996,525 | | $ | 10,913,548 | | $ | 10,913,128 | | $ | 10,920,073 |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
7
Supplemental Financial Information - Fourth Quarter 2004
The following asset quality information does not include Sky Financial Solutions.
ASSET QUALITY DATA:
| | | | | | | | | | | | | | | | | | | | |
| | | 2004
| | | 2003
| |
| | | 4th qtr
| | | 3rd qtr
| | | 2nd qtr
| | | 1st qtr
| | | 4th qtr
| |
Non-accrual loans | | $ | 143,207 | | | $ | 122,050 | | | $ | 95,674 | | | $ | 90,132 | | | $ | 81,979 | |
Restructured loans | | | 541 | | | | 556 | | | | 575 | | | | 585 | | | | 599 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Total non-performing loans | | | 143,748 | | | | 122,606 | | | | 96,249 | | | | 90,717 | | | | 82,578 | |
Investment securities | | | 11,705 | | | | 11,705 | | | | — | | | | — | | | | — | |
Other real estate owned | | | 10,055 | | | | 11,924 | | | | 10,766 | | | | 10,775 | | | | 10,441 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Total non-performing assets | | $ | 165,508 | | | $ | 146,235 | | | $ | 107,015 | | | $ | 101,492 | | | $ | 93,019 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Loans 90 days or more past due & still accruing | | $ | 16,243 | | | $ | 17,183 | | | $ | 12,841 | | | $ | 26,039 | | | $ | 13,841 | |
Net charge-offs | | | 9,864 | | | | 8,106 | | | | 10,402 | | | | 6,565 | | | | 9,330 | |
Allowance for credit losses | | | 151,389 | | | | 147,479 | | | | 125,661 | | | | 125,043 | | | | 124,943 | |
| | | | | |
| ASSET QUALITY RATIOS: | | | | | | | | | | | | | | | | | | | | |
| | |
| | | 2004
| | | 2003
| |
| | | 4th qtr
| | | 3rd qtr
| | | 2nd qtr
| | | 1st qtr
| | | 4th qtr
| |
Non-accrual loans to total loans | | | 1.35 | % | | | 1.19 | % | | | 1.09 | % | | | 1.05 | % | | | 0.95 | % |
Non-performing loans to total loans | | | 1.35 | | | | 1.19 | | | | 1.09 | | | | 1.06 | | | | 0.96 | |
Non-performing assets to total assets | | | 1.11 | | | | 1.00 | | | | 0.87 | | | | 0.84 | | | | 0.72 | |
Loans 90 days or more past due and still accruing to total loans | | | 0.15 | | | | 0.17 | | | | 0.15 | | | | 0.30 | | | | 0.16 | |
Net charge-offs to average loans | | | 0.38 | | | | 0.32 | | | | 0.48 | | | | 0.30 | | | | 0.43 | |
Allowance for credit losses to non-performing loans | | | 105.32 | | | | 120.29 | | | | 130.56 | | | | 137.84 | | | | 151.30 | |
Allowance for credit losses to non-performing assets | | | 91.47 | | | | 100.85 | | | | 117.42 | | | | 123.20 | | | | 134.32 | |
Allowance for credit losses to total loans | | | 1.43 | | | | 1.44 | | | | 1.43 | | | | 1.46 | | | | 1.45 | |
8
Supplemental Financial Information - Fourth Quarter 2004
SKY FINANCIAL GROUP, INC.
*NON-GAAP DISCLOSURE RECONCILIATIONS
(Dollars in thousands)
Core operating earnings reflect net income adjusted to exclude the after-tax effect of discontinued operations, merger, integration and restructuring expenses that are not reflective of on-going operations or are not expected to recur. Cash operating earnings are core operating earnings adjusted to exclude the after-tax effect of amortizing core deposits and other intangibles. Management believes that both core operating earnings and cash operating earnings assist the investor in understanding the impact of merger, integration and restructuring expenses and amortization of intangibles on reported results.
Core operating earnings
The following reconciles GAAP income from continuing operations to core operating earnings for each of the five quarters presented in the tables:
| | | | | | | | | | | | | | | | | | | |
| | | 2004
| | | 2003
| |
| | | 4th qtr
| | | 3rd qtr
| | | 2nd qtr
| | 1st qtr
| | | 4th qtr
| |
Income from continuing operations | | $ | 48,899 | | | $ | 46,148 | | | $ | 40,201 | | $ | 39,952 | | | $ | 39,585 | |
| | |
|
|
| |
|
|
| |
|
| |
|
|
| |
|
|
|
Merger, integration and restructuring expense | | | 365 | | | | 3,831 | | | | — | | | 346 | | | | 1,091 | |
Tax effect | | | (128 | ) | | | (1,341 | ) | | | — | | | (121 | ) | | | (382 | ) |
| | |
|
|
| |
|
|
| |
|
| |
|
|
| |
|
|
|
After-tax non-operating items | | | 237 | | | | 2,490 | | | | — | | | 225 | | | | 709 | |
| | |
|
|
| |
|
|
| |
|
| |
|
|
| |
|
|
|
Core operating earnings | | $ | 49,136 | | | $ | 48,638 | | | $ | 40,201 | | $ | 40,177 | | | $ | 40,294 | |
| | |
|
|
| |
|
|
| |
|
| |
|
|
| |
|
|
|
Merger, integration and restructuring expense in 2004 reflect charges associated with the acquisition of Prospect Bancshares, Inc., Second Bancorp Inc. and the sale of Sky Financial Solutions, Inc. in the fourth, third and first quarters, respectively.
Merger, integration and restructuring expense in 2003 reflect the impact of charges for the acquisition GLB Bancorp, Inc. in the fourth quarter.
Core operating earnings is used as the numerator to calculate core operating return on average assets, core operating return on average equity and core operating earnings per share. Additionally, merger, integration and restructuring expenses are deducted from non-interest expense in the numerator of the core operating efficiency ratio disclosed in the tables. The comparable information on a GAAP basis is also provided in the tables.
9
Supplemental Financial Information - Fourth Quarter 2004
Cash operating earnings
The following reconciles core operating earnings to cash operating earnings for each of the five quarters presented in these
tables:
| | | | | | | | | | | | | | | | | | | | |
| | | 2004
| | | 2003
| |
| | | 4th qtr
| | | 3rd qtr
| | | 2nd qtr
| | | 1st qtr
| | | 4th qtr
| |
Core operating earnings | | $ | 49,136 | | | $ | 48,638 | | | $ | 40,201 | | | $ | 40,177 | | | $ | 40,294 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Amortization of core deposits and other intangible assets | | | 3,577 | | | | 3,553 | | | | 1,943 | | | | 1,907 | | | | 1,903 | |
Tax effect | | | (1,252 | ) | | | (1,244 | ) | | | (680 | ) | | | (667 | ) | | | (666 | ) |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
After-tax non-operating items | | | 2,325 | | | | 2,309 | | | | 1,263 | | | | 1,240 | | | | 1,237 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Cash operating earnings | | $ | 51,461 | | | $ | 50,947 | | | $ | 41,464 | | | $ | 41,417 | | | $ | 41,531 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Cash operating earnings is used as the numerator to calculate the cash operating return on average tangible equity and the cash operating return on average tangible assets. The denominator of each ratio is adjusted to deduct the average balance of intangible assets during the period. Additionally, amortization of core deposits and other intangible assets and merger, integration and restructuring expenses are deducted from non-interest expense in the numerator of the cash operating efficiency ratio disclosed in the tables. The comparable GAAP information is also included in the tables.
10
Supplemental Financial Information - Fourth Quarter 2004
The following table reconciles average GAAP equity to average tangible equity for the twelve months ended December 31, 2004 and 2003, as well as for each of the period ends presented in the tables.
| | | | | | | | |
| | | December 31,
| |
| | | 2004
| | | 2003
| |
Average GAAP equity | | $ | 1,234,067 | | | $ | 908,794 | |
| | |
|
|
| |
|
|
|
Goodwill | | | 322,487 | | | | 147,370 | |
Core deposits and other intangibles | | | 62,194 | | | | 50,375 | |
Deferred taxes | | | (21,768 | ) | | | (17,631 | ) |
| | |
|
|
| |
|
|
|
| | | | 362,913 | | | | 180,114 | |
| | |
|
|
| |
|
|
|
Average tangible equity | | $ | 871,154 | | | $ | 728,680 | |
| | |
|
|
| |
|
|
|
| | | | | | | | | | | | | | | | | | | | |
| | | 2004
| | | 2003
| |
| | | 4th qtr
| | | 3rd qtr
| | | 2nd qtr
| | | 1st qtr
| | | 4th qtr
| |
Average GAAP equity | | $ | 1,448,075 | | | $ | 1,390,013 | | | $ | 1,060,518 | | | $ | 1,033,599 | | | $ | 978,324 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Goodwill | | | 454,488 | | | | 440,734 | | | | 198,414 | | | | 193,561 | | | | 174,660 | |
Core deposits and other intangibles | | | 73,037 | | | | 75,939 | | | | 49,056 | | | | 50,474 | | | | 54,176 | |
Deferred taxes | | | (25,563 | ) | | | (26,579 | ) | | | (17,170 | ) | | | (17,666 | ) | | | (18,962 | ) |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
| | | | 501,962 | | | | 490,094 | | | | 230,300 | | | | 226,369 | | | | 209,874 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Average tangible equity | | $ | 946,113 | | | $ | 899,919 | | | $ | 830,218 | | | $ | 807,230 | | | $ | 768,450 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
The following table reconciles average GAAP assets to average tangible assets for the twelve months ended December 31, 2004 and 2003, as well as for each of the period ends presented in the tables.
| | | | | | | | |
| | | December 31,
| |
| | | 2004
| | | 2003
| |
| Average GAAP assets (excluding discontinued operations) | | $ | 13,360,556 | | | $ | 11,429,271 | |
| | |
|
|
| |
|
|
|
Goodwill | | | 322,487 | | | | 147,370 | |
Core deposits and other intangibles | | | 62,194 | | | | 50,375 | |
Deferred taxes | | | (21,768 | ) | | | (17,631 | ) |
| | |
|
|
| |
|
|
|
| | | | 362,913 | | | | 180,114 | |
| | |
|
|
| |
|
|
|
Average tangible assets | | $ | 12,997,643 | | | $ | 11,249,157 | |
| | |
|
|
| |
|
|
|
| | | | | | | | | | | | | | | | | | | | |
| | | 2004
| | | 2003
| |
| | | 4th qtr
| | | 3rd qtr
| | | 2nd qtr
| | | 1st qtr
| | | 4th qtr
| |
| Average GAAP assets (excluding discontinued operations) | | $ | 14,751,651 | | | $ | 14,523,149 | | | $ | 12,114,421 | | | $ | 12,024,936 | | | $ | 11,970,664 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Goodwill | | | 454,488 | | | | 440,734 | | | | 198,414 | | | | 193,561 | | | | 174,660 | |
Core deposits and other intangibles | | | 73,037 | | | | 75,939 | | | | 49,056 | | | | 50,474 | | | | 54,176 | |
Deferred taxes | | | (25,563 | ) | | | (26,579 | ) | | | (17,170 | ) | | | (17,666 | ) | | | (18,962 | ) |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
| | | | 501,962 | | | | 490,094 | | | | 230,300 | | | | 226,369 | | | | 209,874 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Average tangible assets | | $ | 14,249,689 | | | $ | 14,033,055 | | | $ | 11,884,121 | | | $ | 11,798,567 | | | $ | 11,760,790 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
11
Supplemental Financial Information - Fourth Quarter 2004
The following table reconciles GAAP earnings per share to core operating earnings per share and cash operating earnings per share:
| | | | | | | | |
Basic EPS
| | December 31,
| |
| | 2004
| | | 2003
| |
Net income | | $ | 1.95 | | | $ | 1.75 | |
After-tax earnings from discontinued operations | | | (0.19 | ) | | | (0.04 | ) |
After-tax merger, integration and restructuring | | | 0.03 | | | | 0.03 | |
| | |
|
|
| |
|
|
|
Core operating earnings | | | 1.79 | | | | 1.74 | |
After-tax amortization of core deposits and other intangible assets | | | 0.07 | | | | 0.05 | |
| | |
|
|
| |
|
|
|
Cash operating earnings | | $ | 1.86 | | | $ | 1.79 | |
| | |
|
|
| |
|
|
|
| | | | | | | | | | | | | | | | | | |
| | | 2004
| | | 2003
| |
| | | 4th qtr
| | | 3rd qtr
| | 2nd qtr
| | 1st qtr
| | | 4th qtr
| |
Net income | | $ | 0.47 | | | $ | 0.44 | | $ | 0.43 | | $ | 0.63 | | | $ | 0.45 | |
After-tax earnings from discontinued operations | | | (0.00 | ) | | | — | | | — | | | (0.20 | ) | | | (0.02 | ) |
After-tax merger, integration and restructuring | | | 0.00 | | | | 0.02 | | | — | | | — | | | | — | |
| | |
|
|
| |
|
| |
|
| |
|
|
| |
|
|
|
Core operating earnings | | | 0.46 | | | | 0.46 | | | 0.43 | | | 0.43 | | | | 0.43 | |
After-tax amortization of core deposits and other intangible assets | | | 0.02 | | | | 0.02 | | | 0.01 | | | 0.01 | | | | 0.01 | |
| | |
|
|
| |
|
| |
|
| |
|
|
| |
|
|
|
Cash operating earnings | | $ | 0.49 | | | $ | 0.48 | | $ | 0.44 | | $ | 0.44 | | | $ | 0.45 | |
| | |
|
|
| |
|
| |
|
| |
|
|
| |
|
|
|
12
Supplemental Financial Information - Fourth Quarter 2004
| | | | | | | | |
| | | December 31,
| |
Diluted EPS
| | 2004
| | | 2003
| |
Net income | | $ | 1.93 | | | $ | 1.73 | |
After-tax earnings from discontinued operations | | | (0.19 | ) | | | (0.04 | ) |
After-tax merger, integration and restructuring | | | 0.03 | | | | 0.03 | |
| | |
|
|
| |
|
|
|
Core operating earnings | | | 1.77 | | | | 1.72 | |
After-tax amortization of core deposits and other intangible assets | | | 0.07 | | | | 0.05 | |
| | |
|
|
| |
|
|
|
Cash operating earnings | | $ | 1.84 | | | $ | 1.77 | |
| | |
|
|
| |
|
|
|
| | | | | | | | | | | | | | | | | | |
| | | 2004
| | | 2003
| |
| | | 4th qtr
| | | 3rd qtr
| | 2nd qtr
| | 1st qtr
| | | 4th qtr
| |
Net income | | $ | 0.46 | | | $ | 0.43 | | $ | 0.43 | | $ | 0.62 | | | $ | 0.45 | |
After-tax earnings from discontinued operations | | | (0.00 | ) | | | — | | | — | | | (0.20 | ) | | | (0.02 | ) |
After-tax merger, integration and restructuring | | | 0.00 | | | | 0.02 | | | | | | 0.01 | | | | — | |
| | |
|
|
| |
|
| |
|
| |
|
|
| |
|
|
|
Core operating earnings | | | 0.46 | | | | 0.45 | | | 0.43 | | | 0.43 | | | | 0.43 | |
After-tax amortization of core deposits and other intangible assets | | | 0.02 | | | | 0.02 | | | 0.01 | | | 0.01 | | | | 0.01 | |
| | |
|
|
| |
|
| |
|
| |
|
|
| |
|
|
|
Cash operating earnings | | $ | 0.48 | | | $ | 0.47 | | $ | 0.44 | | $ | 0.44 | | | $ | 0.45 | |
| | |
|
|
| |
|
| |
|
| |
|
|
| |
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|
|
- end -
13
