Exhibit 99.1
Third Quarter 2005 Earnings Release and Supplemental Financials
October 20, 2005 Expanding Horizons
[GRAPHIC]
FOR IMMEDIATE RELEASE
| | |
| CONTACT: | | Kevin T. Thompson |
| | | Executive Vice President |
| | | Chief Financial Officer |
| | | (419) 254-6068 |
Sky Financial Group Reports Third Quarter Results
October 20, 2005 - Bowling Green, Ohio - Sky Financial Group, Inc. (NASDAQ: SKYF) today reported third quarter net income of $51.0 million, or $.47 per diluted share, compared to $46.1 million, or $.43 per diluted share for the third quarter of 2004. Annualized return on assets and return on equity for the third quarter were 1.33% and 13.38%, respectively, compared with 1.26% and 13.21%, respectively, for the same period in 2004.
“We were very pleased with our solid financial performance in the third quarter,” stated Marty E. Adams, president, chairman and chief executive officer. “As expected, continued improvements in net interest margin and efficiency contributed to increased earnings this past quarter. While the banking industry continues to face many challenges to revenue growth, we expect our disciplined approach and focus on our strategic priorities to generate consistent strong financial results for our shareholders.”
Core operating earnings, which reflect net income adjusted to exclude discontinued operations and merger-related expenses that are not representative of ongoing operations, were $51.1 million for the third quarter, versus $48.6 million for the third quarter of 2004. Core operating earnings per diluted share for the third quarter were $.47, versus $.46 for the third quarter of 2004. For the third quarter, on a core operating earnings basis, annualized return on assets and return on equity were 1.33% and 13.40%, respectively, compared with 1.33% and 13.92%, respectively, for the same period in 2004.
Cash operating earnings, which reflect core operating earnings further adjusted to exclude the effects of amortization of intangibles, were $53.6 million, or $.49 per diluted share in the third quarter compared to $50.9 million, or $.48 per diluted share in the third quarter of 2004. On a cash operating basis, the annualized return on average tangible equity was 22.15% for the third quarter compared with 22.52% in the same period in 2004.
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For the nine months ended September 30, 2005, Sky reported net income of $131.0 million, or $1.22 per diluted share versus $145.0 million, or $1.47 per diluted share for the first nine months of 2004. The prior year to date included income from discontinued operations of $18.7 million, or $.19 per diluted share, due to a gain from Sky’s sale of its dental finance unit, Sky Financial Solutions (SFS). Core operating earnings, which reflect net income adjusted to exclude discontinued operations and merger-related expenses that are not representative of ongoing operations, were $131.7 million, or $1.22 per diluted share, for the current year to date versus $129.0 million, or $1.31 per diluted share, for the first nine months of 2004.
Third Quarter Results
Net interest income for the third quarter was $130.4 million, up 6.5% from $122.5 million in the third quarter of 2004. The net interest margin for the third quarter was 3.75%, up 6 basis points from the third quarter of 2004 and 2 basis points from the previous quarter. The net interest margin performance continued to reflect the benefits from rising short-term interest rates and pricing disciplines despite the effects of the flattened yield curve and increasingly competitive markets.
Average earning assets increased 4.5% over the third quarter of 2004 from a combination of organic growth and acquisitions. Average loans for the quarter increased 6.4% from the same quarter last year, with organic growth contributing 4.2% in addition to the acquisitions. Average deposits grew 5.4% from the third quarter of 2004, which included organic growth of 1.4% in addition to the acquisitions. Non-interest bearing deposits, Sky’s highest growth priority, were up 11.3% for the third quarter compared to the third quarter of 2004, including organic growth of 7.7%.
Non-interest revenues were $52.2 million for the third quarter, down 1.1% from $52.7 million in the third quarter of 2004, which includes a $1.7 million decrease in gains on securities transactions. Excluding securities transactions, non-interest revenues were up 2.3%, including the benefit from acquisitions, compared to the same quarter in 2004. Compared to the prior year quarter, mortgage banking revenues were up 12.2% mainly due to higher recapture of impairment charges. In addition, trust services income and service charges on deposits were up 10.2% and 7.0%, respectively. These increases were partly offset by decreased brokerage and insurance commissions, which were down 5.5% due to weaker market conditions.
Non-interest expenses for the third quarter, which included $0.1 million of merger, integration and restructuring expenses related to the pending acquisition of Falls Bank, were $96.4 million compared to $97.9 million in the third quarter of 2004, which included $3.8 million of merger, integration and restructuring expenses related to the acquisition of Second Bancorp. Excluding the merger, integration and restructuring expenses for both years, the third quarter of 2005 non-interest expenses were up 2.4% over the third quarter of 2004. Expenses have increased over 2004’s third quarter mainly due to the acquisitions of Prospect Bancshares in the fourth quarter of 2004, Belmont Bancorp in the second quarter
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of 2005 and an insurance agency this past quarter. Expenses were further impacted by the addition of five new financial centers over the last twelve months. The efficiency ratio, on a cash operating basis, excluding the merger, integration and restructuring expenses and amortization of intangible assets, was 50.40% for the quarter, compared to 51.38% for the same quarter in 2004.
Credit Quality
The provision for credit losses for the third quarter was $8.7 million increasing from $8.4 million in the same quarter in 2004. Net credit losses for the quarter were $8.0 million, or .29% annualized to average total loans, compared to $8.1 million, or .32%, for the third quarter of 2004. At September 30, 2005, non-performing loans to total loans was 1.16% versus 1.35% at year-end and 1.19% a year ago. The allowance for credit losses to non-performing loans at September 30, 2005 was 121% versus 105% at year-end and 120% at September 30, 2004. Non-performing loans 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. However, the total balance has decreased to $29.9 million from $34.4 million at September 30, 2004 as a result of payments received on the loans.
Continued Expansion
On June 21, 2005, Sky announced a definitive agreement to acquire Falls Bank, an $84 million bank that operates two full-service branches in the Akron, Ohio market. The merger is expected to close in the fourth quarter of 2005.
On August 1, 2005, Sky completed the acquisition of B.K.M.’s Benefit Design Agency of Ohio, Inc., located in Findlay, Ohio. In addition, on October 4, 2005, announced the acquisition of Becker-McDowell Agency, Inc. and Steiner Insurance Agency, Inc., both located in Wooster, Ohio. These businesses will all be integrated into Sky’s existing insurance business.
Outlook For 2005
Commenting on the remainder of 2005, Kevin Thompson, chief financial officer, stated, “With our third quarter earnings in line with expectations, we are tightening our projections of 2005 diluted earnings per share on a core operating basis, excluding merger-related expenses, to $1.70 to $1.71, and on a net income, or GAAP basis, of $1.69 to $1.70 per diluted share.”
Conference Call
Today, October 20, 2005, at 10 a.m., Mr. Adams and members of Sky’s leadership team will host a conference call to provide an overview of third quarter performance and business outlook. Participants are encouraged to call in beginning at 9:45 a.m. by dialing (800) 819-9193 (confirmation code: 7404581). 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 7 p.m., October 20 until midnight, October 25, by calling (888) 203-1112 (confirmation code: 7404581). 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 web site.
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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) available at the SEC’s Internet site (www.sec.gov). Sky undertakes no obligation to update or revise these statements following the date of this release.
About Sky Financial Group, Inc.
Sky Financial Group is a $15.3 billion diversified financial holding company with its headquarters located in Bowling Green, Ohio. Sky’s asset size places it among the 40 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, asset management services; and Sky Insurance, retail and commercial insurance agency services. Sky is located on the web at www.skyfi.com.
-end-
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Summary Financials - Third Quarter 2005
SKY FINANCIAL GROUP, INC.
STATEMENTS OF INCOME (Unaudited)
| | | | | | | | | | | | | | | | | | |
(Dollars in thousands, except per
share data)
| | Three Months Ended
September 30,
| | Percent
Change
| | | Nine Months Ended
September 30,
| | Percent
Change
| |
| | 2005
| | 2004
| | | 2005
| | 2004
| |
Interest income | | $ | 212,358 | | $ | 178,772 | | 18.8 | % | | $ | 606,981 | | $ | 475,820 | | 27.6 | % |
Interest expense | | | 81,939 | | | 56,256 | | 45.7 | | | | 224,555 | | | 148,814 | | 50.9 | |
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Net interest income | | | 130,419 | | | 122,516 | | 6.5 | | | | 382,426 | | | 327,006 | | 16.9 | |
Provision for credit losses | | | 8,725 | | | 8,360 | | 4.4 | | | | 45,442 | | | 26,045 | | 74.5 | |
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Net interest income after provision for credit losses | | | 121,694 | | | 114,156 | | 6.6 | | | | 336,984 | | | 300,961 | | 12.0 | |
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Non-interest income | | | | | | | | | | | | | | | | | | |
Trust services income | | | 5,598 | | | 5,079 | | 10.2 | | | | 16,407 | | | 13,285 | | 23.5 | |
Service charges and fees on deposit accounts | | | 14,786 | | | 13,820 | | 7.0 | | | | 40,991 | | | 34,569 | | 18.6 | |
Mortgage banking income | | | 7,681 | | | 6,845 | | 12.2 | | | | 19,360 | | | 19,169 | | 1.0 | |
Brokerage and insurance commissions | | | 13,896 | | | 14,703 | | (5.5 | ) | | | 44,654 | | | 42,462 | | 5.2 | |
Net securities gains (losses) | | | 147 | | | 1,854 | | (92.1 | ) | | | 2,109 | | | 6,259 | | (66.3 | ) |
Other income | | | 10,082 | | | 10,446 | | (3.5 | ) | | | 31,657 | | | 30,021 | | 5.4 | |
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Total non-interest income | | | 52,190 | | | 52,747 | | (1.1 | ) | | | 155,178 | | | 145,765 | | 6.5 | |
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Non-interest expenses | | | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | | 52,078 | | | 51,583 | | 1.0 | | | | 158,045 | | | 140,421 | | 12.6 | |
Occupancy and equipment expense | | | 16,754 | | | 15,962 | | 5.0 | | | | 51,193 | | | 42,272 | | 21.1 | |
Merger, integration and restructuring expense | | | 122 | | | 3,831 | | (96.8 | ) | | | 1,153 | | | 4,177 | | (72.4 | ) |
Other operating expenses | | | 27,444 | | | 26,516 | | 3.5 | | | | 85,283 | | | 71,823 | | 18.7 | |
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Total non-interest expense | | | 96,398 | | | 97,892 | | (1.5 | ) | | | 295,674 | | | 258,693 | | 14.3 | |
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Income from continuing operations before income taxes | | | 77,486 | | | 69,011 | | 12.3 | | | | 196,488 | | | 188,033 | | 4.5 | |
Income taxes from continuing operations | | | 26,463 | | | 22,863 | | 15.7 | | | | 65,519 | | | 61,732 | | 6.1 | |
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Income from continuing operations | | | 51,023 | | | 46,148 | | 10.6 | | | | 130,969 | | | 126,301 | | 3.7 | |
Income from discontinued operations, net of tax | | | — | | | — | | | | | | — | | | 18,725 | | (100.0 | ) |
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Net income | | $ | 51,023 | | $ | 46,148 | | 10.6 | | | $ | 130,969 | | $ | 145,026 | | (9.7 | ) |
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SHARE DATA: | | | | | | | | | | | | | | | | | | |
Earnings per share from continuing operations | | | | | | | | | | | | | | | | | | |
Basic | | $ | 0.48 | | $ | 0.44 | | 9.1 | | | $ | 1.23 | | $ | 1.30 | | (5.4 | ) |
Diluted | | | 0.47 | | | 0.43 | | 9.3 | | | | 1.22 | | | 1.28 | | (4.7 | ) |
Earnings per share from discontinued operations | | | | | | | | | | | | | | | | | | |
Basic | | | — | | | — | | — | | | | — | | | 0.19 | | (100.0 | ) |
Diluted | | | — | | | — | | — | | | | — | | | 0.19 | | (100.0 | ) |
Earnings per share | | | | | | | | | | | | | | | | | | |
Basic | | | 0.48 | | | 0.44 | | 9.1 | | | | 1.23 | | | 1.49 | | (17.5 | ) |
Diluted | | | 0.47 | | | 0.43 | | 9.3 | | | | 1.22 | | | 1.47 | | (17.0 | ) |
Core operating earnings per share* | | | | | | | | | | | | | | | | | | |
Basic | | | 0.48 | | | 0.46 | | 4.3 | | | | 1.24 | | | 1.33 | | (6.8 | ) |
Diluted | | | 0.47 | | | 0.46 | | 2.2 | | | | 1.22 | | | 1.31 | | (6.9 | ) |
Cash operating earnings per share* | | | | | | | | | | | | | | | | | | |
Basic | | | 0.50 | | | 0.48 | | 4.2 | | | | 1.30 | | | 1.38 | | (5.8 | ) |
Diluted | | | 0.49 | | | 0.48 | | 2.1 | | | | 1.29 | | | 1.36 | | (5.2 | ) |
Cash dividend declared per common share | | | 0.22 | | | 0.21 | | — | | | | 0.66 | | | 0.63 | | — | |
Average shares outstanding | | | | | | | | | | | | | | | | | | |
Basic | | | 107,236,000 | | | 105,479,000 | | — | | | | 106,443,000 | | | 97,298,000 | | — | |
Diluted | | | 108,431,000 | | | 106,408,000 | | — | | | | 107,620,000 | | | 98,297,000 | | — | |
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Summary Financials - Third Quarter 2005
PERFORMANCE RATIOS:
| | | | | | | | | | | | | | | | |
| | | Three Months Ended
September 30,
| | | Nine Months Ended
September 30,
| |
| | | 2005
| | | 2004
| | | 2005
| | | 2004
| |
Net Income | | $ | 51,023 | | | $ | 46,148 | | | $ | 130,969 | | | $ | 145,026 | |
Return on average equity | | | 13.38 | % | | | 13.21 | % | | | 11.90 | % | | | 16.67 | % |
Return on average assets | | | 1.33 | | | | 1.26 | | | | 1.16 | | | | 1.47 | |
CONTINUING OPERATIONS | | | | | | | | | | | | | | | | |
Income from continuing operations | | $ | 51,023 | | | $ | 46,148 | | | $ | 130,969 | | | $ | 126,301 | |
Return on average equity | | | 13.38 | % | | | 13.21 | % | | | 11.90 | % | | | 14.52 | % |
Return on average assets | | | 1.33 | | | | 1.26 | | | | 1.16 | | | | 1.31 | |
Efficiency ratio | | | 52.54 | | | | 55.57 | | | | 54.74 | | | | 54.42 | |
Net interest margin (FTE) | | | 3.75 | | | | 3.69 | | | | 3.72 | | | | 3.69 | |
CORE OPERATING * | | | | | | | | | | | | | | | | |
Core operating earnings | | $ | 51,102 | | | $ | 48,638 | | | $ | 131,718 | | | $ | 129,016 | |
Return on average equity | | | 13.40 | % | | | 13.92 | % | | | 11.96 | % | | | 14.83 | % |
Return on average assets | | | 1.33 | | | | 1.33 | | | | 1.17 | | | | 1.34 | |
Efficiency ratio | | | 52.47 | | | | 53.39 | | | | 54.53 | | | | 53.54 | |
CASH OPERATING* | | | | | | | | | | | | | | | | |
Cash operating earnings | | $ | 53,581 | | | $ | 50,947 | | | $ | 138,854 | | | $ | 133,828 | |
Return on average tangible equity | | | 22.15 | % | | | 22.52 | % | | | 19.75 | % | | | 21.13 | % |
Return on average tangible assets | | | 1.45 | | | | 1.44 | | | | 1.28 | | | | 1.42 | |
Efficiency ratio | | | 50.40 | | | | 51.38 | | | | 52.50 | | | | 51.99 | |
PERIOD END BALANCE SHEETS (Unaudited)
(Dollars in thousands)
| | | | | | | | | | | |
| | | September 30,
| | | Percent
Change
| |
| | 2005
| | | 2004
| | |
Cash and due from banks | | $ | 289,089 | | | $ | 238,820 | | | 21.0 | % |
Interest-earning deposits with banks | | | 14,196 | | | | 30,118 | | | (52.9 | ) |
Loans held for sale | | | 20,685 | | | | 31,107 | | | (33.5 | ) |
Securities available for sale | | | 3,052,117 | | | | 3,118,884 | | | (3.2 | ) |
Total loans | | | 10,914,530 | | | | 10,262,393 | | | 6.4 | |
Allowance for credit losses | | | (153,351 | ) | | | (147,479 | ) | | 4.0 | |
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Net loans | | | 10,761,179 | | | | 10,114,914 | | | 6.4 | |
Premises and equipment | | | 165,517 | | | | 154,252 | | | 7.3 | |
Goodwill and other intangibles | | | 582,798 | | | | 520,221 | | | 12.0 | |
Other assets | | | 451,384 | | | | 434,816 | | | 3.8 | |
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Total Assets | | $ | 15,336,965 | | | $ | 14,643,132 | | | 4.5 | |
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Total interest-earning assets | | $ | 14,001,528 | | | $ | 13,442,502 | | | 3.9 | |
Non-interest-bearing deposits | | $ | 1,722,735 | | | $ | 1,477,061 | | | 16.6 | |
Interest-bearing deposits | | | 9,132,059 | | | | 8,677,287 | | | 5.2 | |
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Total deposits | | | 10,854,794 | | | | 10,154,348 | | | 6.9 | |
Repos and federal funds purchased | | | 780,585 | | | | 921,175 | | | (15.3 | ) |
Debt and FHLB advances | | | 1,963,594 | | | | 1,989,806 | | | (1.3 | ) |
Other liabilities | | | 222,078 | | | | 161,388 | | | 17.8 | |
Shareholders’ equity | | | 1,515,914 | | | | 1,416,415 | | | 7.0 | |
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Total Liabilities and Shareholders’ Equity | | $ | 15,336,965 | | | $ | 14,643,132 | | | 4.5 | |
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6
Summary Financials - Third Quarter 2005
AVERAGE BALANCE SHEETS (Unaudited)
(Dollars in thousands)
| | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended
September 30,
| | | Percent
Change
| | | Nine Months Ended
September 30,
| | | Percent
Change
| |
| | 2005
| | | 2004
| | | | 2005
| | | 2004
| | |
Cash and due from banks | | $ | 266,045 | | | $ | 252,731 | | | 5.3 | % | | $ | 247,303 | | | $ | 222,960 | | | 10.9 | % |
Interest-earning deposits with banks | | | 30,680 | | | | 42,017 | | | (27.0 | ) | | | 34,429 | | | | 37,418 | | | (8.0 | ) |
Federal funds sold | | | 1,033 | | | | 2,065 | | | (50.0 | ) | | | 1,403 | | | | 2,703 | | | (48.1 | ) |
Loans held for sale | | | 27,661 | | | | 30,139 | | | (8.2 | ) | | | 23,830 | | | | 31,238 | | | (23.7 | ) |
Securities available for sale | | | 3,042,872 | | | | 3,078,861 | | | (1.2 | ) | | | 3,058,160 | | | | 2,701,042 | | | 13.2 | |
Total loans | | | 10,791,361 | | | | 10,139,711 | | | 6.4 | | | | 10,706,296 | | | | 9,147,692 | | | 17.0 | |
Allowance for credit losses | | | (152,901 | ) | | | (147,056 | ) | | 4.0 | | | | (151,252 | ) | | | (132,241 | ) | | 14.4 | |
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Net loans | | | 10,638,460 | | | | 9,992,655 | | | 6.5 | | | | 10,555,044 | | | | 9,015,451 | | | 17.1 | |
Premises and equipment | | | 167,698 | | | | 159,328 | | | 5.3 | | | | 161,534 | | | | 153,203 | | | 5.4 | |
Goodwill and other intangibles | | | 577,631 | | | | 516,673 | | | 11.8 | | | | 556,352 | | | | 336,718 | | | 65.2 | |
Assets of discontinued operations | | | — | | | | — | | | N/A | | | | — | | | | 287,208 | | | (100.0 | ) |
Other assets | | | 445,424 | | | | 448,680 | | | (0.7 | ) | | | 436,019 | | | | 392,740 | | | 11.0 | |
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Total Assets | | $ | 15,197,504 | | | $ | 14,523,149 | | | 4.6 | | | $ | 15,074,074 | | | $ | 13,180,681 | | | 14.4 | |
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Total interest-earning assets | | $ | 13,893,607 | | | $ | 13,292,793 | | | 4.5 | | | $ | 13,824,118 | | | $ | 11,920,093 | | | 16.0 | |
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Non-interest-bearing deposits | | $ | 1,679,171 | | | $ | 1,508,074 | | | 11.3 | | | $ | 1,622,080 | | | $ | 1,345,420 | | | 20.6 | |
Interest-bearing deposits | | | 9,083,148 | | | | 8,704,452 | | | 4.4 | | | | 8,946,699 | | | | 7,893,126 | | | 13.3 | |
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Total deposits | | | 10,762,319 | | | | 10,212,526 | | | 5.4 | | | | 10,568,779 | | | | 9,238,546 | | | 14.4 | |
Repos and federal funds purchased | | | 794,554 | | | | 867,547 | | | (8.4 | ) | | | 867,071 | | | | 881,539 | | | (1.6 | ) |
Debt and FHLB advances | | | 1,980,981 | | | | 1,916,452 | | | 3.4 | | | | 2,024,209 | | | | 1,492,717 | | | 35.6 | |
Liabilities of discontinued operations | | | — | | | | — | | | N/A | | | | — | | | | 269,614 | | | (100.0 | ) |
Other liabilities | | | 146,767 | | | | 136,611 | | | 7.4 | | | | 142,098 | | | | 136,054 | | | 4.4 | |
Shareholders’ equity | | | 1,512,883 | | | | 1,390,013 | | | 8.8 | | | | 1,471,917 | | | | 1,162,211 | | | 26.6 | |
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Total Liabilities and Shareholders' Equity | | $ | 15,197,504 | | | $ | 14,523,149 | | | 4.6 | | | $ | 15,074,074 | | | $ | 13,180,681 | | | 14.4 | |
| | |
|
|
| |
|
|
| |
|
| |
|
|
| |
|
|
| |
|
|
ASSET QUALITY DATA:
| | | | | | | | |
| | | September 30,
| |
| | | 2005
| | | 2004
| |
Non-accrual loans | | $ | 126,131 | | | $ | 122,050 | |
Restructured loans | | | 495 | | | | 556 | |
| | |
|
|
| |
|
|
|
Total non-performing loans | | | 126,626 | | | | 122,606 | |
Investment securities | | | 10,299 | | | | 11,705 | |
Other real estate owned | | | 14,700 | | | | 11,924 | |
| | |
|
|
| |
|
|
|
Total non-performing assets | | $ | 151,625 | | | $ | 146,235 | |
| | |
|
|
| |
|
|
|
Loans 90 days or more past due & still accruing | | $ | 24,424 | | | $ | 17,183 | |
Allowance for credit losses | | | 153,351 | | | | 147,479 | |
| | |
ASSET QUALITY RATIOS: | | | | | | | | |
Non-accrual loans to total loans | | | 1.16 | % | | | 1.19 | % |
Non-performing loans to total loans | | | 1.16 | | | | 1.19 | |
Non-performing assets to total assets | | | 0.99 | | | | 1.00 | |
Loans 90 days or more past due and still accruing to total loans | | | 0.22 | | | | 0.17 | |
Allowance for credit losses to non-performing loans | | | 121.11 | | | | 120.29 | |
Allowance for credit losses to non-performing assets | | | 101.14 | | | | 100.85 | |
Allowance for credit losses to total loans | | | 1.41 | | | | 1.44 | |
| | |
| NET CHARGE-OFFS | | | | | | | | |
| | | Three Months Ended
September 30,
| |
| | | 2005
| | | 2004
| |
Net charge-offs | | $ | 7,997 | | | $ | 8,106 | |
Net charge-offs to average loans | | | 0.29 | | | | 0.32 | |
| |
| | | Nine Months Ended
September 30,
| |
| | | 2005
| | | 2004
| |
Net charge-offs | | $ | 45,562 | | | $ | 25,073 | |
Net charge-offs to average loans | | | 0.57 | | | | 0.37 | |
7
Summary Financials - Third Quarter 2005
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 nine months ended September 30, 2005 and 2004:
| | | | | | | | | | | | | | | | |
| | | Three Months Ended
September 30,
| | | Nine Months Ended
September 30,
| |
| | | 2005
| | | 2004
| | | 2005
| | | 2004
| |
Income from continuing operations | | $ | 51,023 | | | $ | 46,148 | | | $ | 130,969 | | | $ | 126,301 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Merger, integration and restructuring expense | | | 122 | | | | 3,831 | | | | 1,153 | | | | 4,177 | |
Tax effect | | | (43 | ) | | | (1,341 | ) | | | (404 | ) | | | (1,462 | ) |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
After-tax non-operating items | | | 79 | | | | 2,490 | | | | 749 | | | | 2,715 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Core operating earnings | | $ | 51,102 | | | $ | 48,638 | | | $ | 131,718 | | | $ | 129,016 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Merger, integration and restructuring expense in 2005 reflect charges associated with the acquisition of Belmont Bancorp in the second quarter and the cost associated with the pending acquisition of Falls Bank recorded in the third quarter.
Merger, integration and restructuring expense in 2004 reflect charges associated with the sale of Sky Financial Solutions, Inc. in the first quarter and the purchase of Second Bancorp in the third 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.
Cash operating earnings
The following table reconciles core operating earnings to cash operating earnings for the three and nine months ended September 30, 2005 and 2004:
| | | | | | | | | | | | | | | | |
| | | Three Months Ended
September 30,
| | | Nine Months Ended
September 30,
| |
| | | 2005
| | | 2004
| | | 2005
| | | 2004
| |
Core operating earnings | | $ | 51,102 | | | $ | 48,638 | | | $ | 131,718 | | | $ | 129,016 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Amortization of core deposits and other intangible assets | | | 3,814 | | | | 3,553 | | | | 10,978 | | | | 7,403 | |
Tax effect | | | (1,335 | ) | | | (1,244 | ) | | | (3,842 | ) | | | (2,591 | ) |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
After-tax non-operating items | | | 2,479 | | | | 2,309 | | | | 7,136 | | | | 4,812 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Cash operating earnings | | $ | 53,581 | | | $ | 50,947 | | | $ | 138,854 | | | $ | 133,828 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
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.
8
Summary Financials - Third Quarter 2005
The following table reconciles average GAAP equity to average tangible equity for the nine months ended September 30, 2005 and 2004,
| | | | | | | | | | | | | | | | |
| | | Three Months Ended
September 30,
| | | Nine Months Ended
September 30,
| |
| | | 2005
| | | 2004
| | | 2005
| | | 2004
| |
Average GAAP equity | | $ | 1,512,883 | | | $ | 1,390,013 | | | $ | 1,471,917 | | | $ | 1,162,211 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Goodwill | | | 507,944 | | | | 440,734 | | | | 486,889 | | | | 278,165 | |
Core deposits and other intangibles | | | 69,687 | | | | 75,939 | | | | 69,463 | | | | 58,553 | |
Deferred taxes | | | (24,390 | ) | | | (26,579 | ) | | | (24,312 | ) | | | (20,494 | ) |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
| | | | 553,241 | | | | 490,094 | | | | 532,040 | | | | 316,224 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Average tangible equity | | $ | 959,642 | | | $ | 899,919 | | | $ | 939,877 | | | $ | 845,987 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
The following table reconciles average GAAP assets to average tangible assets for the three and nine months ended September 30, 2005 and 2004:
| | | | | | | | | | | | | | | | |
| | | Three Months Ended
September 30,
| | | Nine Months Ended
September 30,
| |
| | | 2005
| | | 2004
| | | 2005
| | | 2004
| |
Average GAAP assets (excluding discontinued operations) | | $ | 15,197,504 | | | $ | 14,523,149 | | | $ | 15,074,074 | | | $ | 12,893,473 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Goodwill | | | 507,944 | | | | 440,734 | | | | 486,889 | | | | 278,165 | |
Core deposits and other intangibles | | | 69,687 | | | | 75,939 | | | | 69,463 | | | | 58,553 | |
Deferred taxes | | | (24,390 | ) | | | (26,579 | ) | | | (24,312 | ) | | | (20,494 | ) |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
| | | | 553,241 | | | | 490,094 | | | | 532,040 | | | | 316,224 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Average tangible assets | | $ | 14,644,263 | | | $ | 14,033,055 | | | $ | 14,542,034 | | | $ | 12,577,249 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
|
The following table reconciles GAAP earnings per share to operating earnings per share, core operating earnings per share and cash operating earnings per share (certain information does not add due to rounding):
Basic EPS
| | | | | | | | | | | | | |
| | | Three Months Ended
September 30,
| | Nine Months Ended
September 30,
| |
| | | 2005
| | 2004
| | 2005
| | 2004
| |
Net income | | $ | 0.48 | | $ | 0.44 | | $ | 1.23 | | $ | 1.49 | |
After-tax earnings from discontinued operations | | | — | | | — | | | — | | | (0.19 | ) |
After-tax merger, integration and restructuring | | | 0.00 | | | 0.02 | | | 0.01 | | | 0.03 | |
| | |
|
| |
|
| |
|
| |
|
|
|
Core operating earnings | | | 0.48 | | | 0.46 | | | 1.24 | | | 1.33 | |
After-tax amortization of core deposits and other intangible assets | | | 0.02 | | | 0.02 | | | 0.07 | | | 0.05 | |
| | |
|
| |
|
| |
|
| |
|
|
|
Cash operating earnings | | $ | 0.50 | | $ | 0.48 | | $ | 1.30 | | $ | 1.38 | |
| | |
|
| |
|
| |
|
| |
|
|
|
Diluted EPS
| | | | | | | | | | | | | |
| | | Three Months Ended
September 30,
| | Nine Months Ended
September 30,
| |
| | | 2005
| | 2004
| | 2005
| | 2004
| |
Net income | | $ | 0.47 | | $ | 0.43 | | $ | 1.22 | | $ | 1.47 | |
After-tax earnings from discontinued operations | | | — | | | — | | | — | | | (0.19 | ) |
After-tax merger, integration and restructuring | | | 0.00 | | | 0.02 | | | 0.01 | | | 0.03 | |
| | |
|
| |
|
| |
|
| |
|
|
|
Core operating earnings | | | 0.47 | | | 0.46 | | | 1.22 | | | 1.31 | |
After-tax amortization of core deposits and other intangible assets | | | 0.02 | | | 0.02 | | | 0.07 | | | 0.05 | |
| | |
|
| |
|
| |
|
| |
|
|
|
Cash operating earnings | | $ | 0.49 | | $ | 0.48 | | $ | 1.29 | | $ | 1.36 | |
| | |
|
| |
|
| |
|
| |
|
|
|
— end —
9
Third Quarter 2005
Supplemental Financial Information
October 20, 2005
Supplemental Financials - Third Quarter 2005
SKY FINANCIAL GROUP, INC.
FIVE QUARTERS STATEMENTS OF INCOME (unaudited)
(Dollars in thousands)
| | | | | | | | | | | | | | | |
| | | 2005
| | 2004
|
| | | 3rd qtr
| | 2nd qtr
| | 1st qtr
| | 4th qtr
| | 3rd qtr
|
Fully taxable equivalent interest income | | $ | 213,223 | | $ | 203,841 | | $ | 192,410 | | $ | 186,929 | | $ | 179,675 |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
Interest income | | $ | 212,358 | | $ | 203,029 | | $ | 191,594 | | $ | 186,124 | | $ | 178,772 |
Interest expense | | | 81,939 | | | 75,029 | | | 67,587 | | | 61,819 | | | 56,256 |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
Net interest income | | | 130,419 | | | 128,000 | | | 124,007 | | | 124,305 | | | 122,516 |
Provision for credit losses | | | 8,725 | | | 5,894 | | | 30,823 | | | 11,615 | | | 8,360 |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
Net interest income after provision for credit losses | | | 121,694 | | | 122,106 | | | 93,184 | | | 112,690 | | | 114,156 |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
Non-interest income | | | | | | | | | | | | | | | |
Trust services income | | | 5,598 | | | 5,395 | | | 5,414 | | | 4,996 | | | 5,079 |
Service charges and fees on deposit accounts | | | 14,786 | | | 14,033 | | | 12,173 | | | 13,395 | | | 13,820 |
Mortgage banking income | | | 7,681 | | | 5,923 | | | 5,755 | | | 5,675 | | | 6,845 |
Brokerage and insurance commissions | | | 13,896 | | | 14,127 | | | 16,630 | | | 13,358 | | | 14,703 |
Net securities gains (losses) | | | 147 | | | 1,084 | | | 878 | | | 8,310 | | | 1,854 |
Other income | | | 10,082 | | | 10,954 | | | 10,621 | | | 11,918 | | | 10,446 |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
Total non-interest income | | | 52,190 | | | 51,516 | | | 51,471 | | | 57,652 | | | 52,747 |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
Non-interest expenses | | | | | | | | | | | | | | | |
Salaries and employee benefits | | | 52,078 | | | 53,619 | | | 52,348 | | | 53,190 | | | 51,583 |
Occupancy and equipment expense | | | 16,754 | | | 16,835 | | | 17,604 | | | 16,824 | | | 15,962 |
Merger, integration and restructuring expense | | | 122 | | | 1,031 | | | — | | | 365 | | | 3,831 |
Other operating expenses | | | 27,444 | | | 29,508 | | | 28,330 | | | 27,452 | | | 26,516 |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
Total non-interest expense | | | 96,398 | | | 100,993 | | | 98,282 | | | 97,831 | | | 97,892 |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
Income from continuing operations before income taxes | | | 77,486 | | | 72,629 | | | 46,373 | | | 72,511 | | | 69,011 |
Income taxes from continuing operations | | | 26,463 | | | 24,154 | | | 14,902 | | | 23,612 | | | 22,863 |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
Income from continuing operations | | | 51,023 | | | 48,475 | | | 31,471 | | | 48,899 | | | 46,148 |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
Income from discontinued operations, net of tax | | | — | | | — | | | — | | | 430 | | | — |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
Net income | | $ | 51,023 | | $ | 48,475 | | $ | 31,471 | | $ | 49,329 | | $ | 46,148 |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
Core operating earnings | | $ | 51,102 | | $ | 49,145 | | $ | 31,471 | | $ | 49,136 | | $ | 48,638 |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
1
Supplemental Financials - Third Quarter 2005
SKY FINANCIAL GROUP, INC.
FIVE QUARTER PERFORMANCE RATIOS AND SHARE DATA
(Unaudited)
PERFORMANCE RATIOS
| | | | | | | | | | | | | | | |
| | | 2005
| | | 2004
| |
| | | 3rd qtr
| | | 2nd qtr
| | | 1st qtr
| | | 4th qtr
| | | 3rd qtr
| |
Return on average equity | | 13.38 | % | | 13.52 | % | | 8.72 | % | | 13.55 | % | | 13.21 | % |
Return on average assets | | 1.33 | | | 1.29 | | | 0.86 | | | 1.33 | | | 1.26 | |
| | | | | |
CONTINUING OPERATIONS | | | | | | | | | | | | | | | |
| | |
| | | 2005
| | | 2004
| |
| | | 3rd qtr
| | | 2nd qtr
| | | 1st qtr
| | | 4th qtr
| | | 3rd qtr
| |
Return on average equity | | 13.38 | % | | 13.52 | % | | 8.72 | % | | 13.43 | % | | 13.21 | % |
Return on average assets | | 1.33 | | | 1.29 | | | 0.86 | | | 1.32 | | | 1.26 | |
Net interest rate spread (FTE) | | 3.35 | | | 3.37 | | | 3.36 | | | 3.37 | | | 3.43 | |
Net interest rate margin (FTE) | | 3.75 | | | 3.73 | | | 3.69 | | | 3.68 | | | 3.69 | |
Efficiency ratio | | 52.54 | | | 56.01 | | | 55.75 | | | 53.53 | | | 55.57 | |
| | | | | |
CORE OPERATING* | | | | | | | | | | | | | | | |
| | |
| | | 2005
| | | 2004
| |
| | | 3rd qtr
| | | 2nd qtr
| | | 1st qtr
| | | 4th qtr
| | | 3rd qtr
| |
Return on average equity | | 13.40 | % | | 13.70 | % | | 8.72 | % | | 13.50 | % | | 13.92 | % |
Return on average assets | | 1.33 | | | 1.31 | | | 0.86 | | | 1.33 | | | 1.33 | |
Efficiency ratio | | 52.47 | | | 55.43 | | | 55.75 | | | 53.33 | | | 53.39 | |
| | | | | |
CASH OPERATING* | | | | | | | | | | | | | | | |
| | |
| | | 2005
| | | 2004
| |
| | | 3rd qtr
| | | 2nd qtr
| | | 1st qtr
| | | 4th qtr
| | | 3rd qtr
| |
Return on average tangible equity | | 22.15 | % | | 22.63 | % | | 14.46 | % | | 21.64 | % | | 22.52 | % |
Return on average assets | | 1.45 | | | 1.42 | | | 0.95 | | | 1.44 | | | 1.44 | |
Efficiency ratio | | 50.40 | | | 53.43 | | | 53.73 | | | 51.37 | | | 51.38 | |
2
Supplemental Financials - Third Quarter 2005
SKY FINANCIAL GROUP, INC.
FIVE QUARTER SHARE DATA
(Unaudited)
| | | | | | | | | | | | | | | |
| | | 2005
| | 2004
|
| | | 3rd qtr
| | 2nd qtr
| | 1st qtr
| | 4th qtr
| | 3rd qtr
|
Earnings per share from continuing operations | | | | | | | | | | | | | | | |
Basic | | $ | 0.48 | | $ | 0.46 | | $ | 0.30 | | $ | 0.46 | | $ | 0.44 |
Diluted | | | 0.47 | | | 0.45 | | | 0.29 | | | 0.46 | | | 0.43 |
Earnings per share from discontinued operations | | | | | | | | | | | | | | | |
Basic | | | — | | | — | | | — | | | 0.00 | | | — |
Diluted | | | — | | | — | | | — | | | 0.00 | | | — |
Earnings per share | | | | | | | | | | | | | | | |
Basic | | | 0.48 | | | 0.46 | | | 0.30 | | | 0.47 | | | 0.44 |
Diluted | | | 0.47 | | | 0.45 | | | 0.29 | | | 0.46 | | | 0.43 |
Core operating earnings per share* | | | | | | | | | | | | | | | |
Basic | | | 0.48 | | | 0.46 | | | 0.30 | | | 0.46 | | | 0.46 |
Diluted | | | 0.47 | | | 0.46 | | | 0.29 | | | 0.46 | | | 0.46 |
Cash operating earnings per share* | | | | | | | | | | | | | | | |
Basic | | | 0.50 | | | 0.49 | | | 0.32 | | | 0.49 | | | 0.48 |
Diluted | | | 0.49 | | | 0.48 | | | 0.31 | | | 0.48 | | | 0.48 |
Cash dividend declared per common share | | | 0.22 | | | 0.22 | | | 0.22 | | | 0.22 | | | 0.21 |
Book value per share | | | 14.11 | | | 13.96 | | | 13.30 | | | 13.77 | | | 13.44 |
Average shares outstanding | | | | | | | | | | | | | | | |
Basic | | | 107,236,000 | | | 105,752,000 | | | 106,330,000 | | | 105,922,000 | | | 105,479,000 |
Diluted | | | 108,431,000 | | | 106,888,000 | | | 107,591,000 | | | 107,163,000 | | | 106,408,000 |
Book value calculation shares outstanding | | | 107,469,752 | | | 107,183,099 | | | 105,752,028 | | | 106,838,511 | | | 105,372,832 |
3
Supplemental Financials - Third Quarter 2005
SKY FINANCIAL GROUP, INC.
FIVE QUARTER AVERAGE BALANCE SHEETS (Unaudited)
(Dollars in thousands)
| | | | | | | | | | | | | | | | | | | | |
| | | 2005
| | | 2004
| |
| | | 3rd qtr
| | | 2nd qtr
| | | 1st qtr
| | | 4th qtr
| | | 3rd qtr
| |
Cash and due from banks | | $ | 266,045 | | | $ | 236,822 | | | $ | 238,742 | | | $ | 244,726 | | | $ | 252,731 | |
Interest-earning deposits with banks | | | 30,680 | | | | 34,747 | | | | 37,938 | | | | 36,498 | | | | 42,017 | |
Federal funds sold | | | 1,033 | | | | 3,164 | | | | — | | | | 2,186 | | | | 2,065 | |
Loans held for sale | | | 27,661 | | | | 21,832 | | | | 21,935 | | | | 27,601 | | | | 30,139 | |
Securities available for sale | | | 3,042,872 | | | | 3,077,456 | | | | 3,054,277 | | | | 3,075,580 | | | | 3,078,861 | |
Total loans | | | 10,791,361 | | | | 10,721,064 | | | | 10,604,408 | | | | 10,400,806 | | | | 10,139,711 | |
Allowance for loan losses | | | (152,901 | ) | | | (150,898 | ) | | | (149,925 | ) | | | (149,288 | ) | | | (147,056 | ) |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Net loans | | | 10,638,460 | | | | 10,570,166 | | | | 10,454,483 | | | | 10,251,518 | | | | 9,992,655 | |
Premises and equipment | | | 167,698 | | | | 159,843 | | | | 156,942 | | | | 154,329 | | | | 159,328 | |
Goodwill and other intangibles | | | 577,631 | | | | 549,951 | | | | 541,086 | | | | 527,525 | | | | 516,673 | |
Other assets | | | 445,424 | | | | 441,068 | | | | 421,298 | | | | 431,688 | | | | 448,680 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Total Assets | | $ | 15,197,504 | | | $ | 15,095,049 | | | $ | 14,926,701 | | | $ | 14,751,651 | | | $ | 14,523,149 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Total interest-earning assets | | $ | 13,893,607 | | | $ | 13,858,263 | | | $ | 13,718,558 | | | $ | 13,542,671 | | | $ | 13,292,793 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Non-interest-bearing deposits | | $ | 1,679,171 | | | $ | 1,622,138 | | | $ | 1,563,661 | | | $ | 1,573,004 | | | $ | 1,508,074 | |
Interest-bearing deposits | | | 9,083,148 | | | | 8,895,799 | | | | 8,858,682 | | | | 8,724,960 | | | | 8,704,452 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Total deposits | | | 10,762,319 | | | | 10,517,937 | | | | 10,422,343 | | | | 10,297,964 | | | | 10,212,526 | |
Repos and federal funds purchased | | | 794,554 | | | | 892,024 | | | | 915,969 | | | | 944,788 | | | | 867,547 | |
Debt and FHLB advances | | | 1,980,981 | | | | 2,109,609 | | | | 1,982,049 | | | | 1,927,205 | | | | 1,916,452 | |
Other liabilities | | | 146,767 | | | | 137,036 | | | | 142,437 | | | | 133,619 | | | | 136,611 | |
Shareholders’ equity | | | 1,512,883 | | | | 1,438,443 | | | | 1,463,903 | | | | 1,448,075 | | | | 1,390,013 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Total Liabilities and Shareholders’ Equity | | $ | 15,197,504 | | | $ | 15,095,049 | | | $ | 14,926,701 | | | $ | 14,751,651 | | | $ | 14,523,149 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
4
Supplemental Financials - Third Quarter 2005
SKY FINANCIAL GROUP, INC.
FIVE QUARTER PERIOD END BALANCE SHEETS (Unaudited)
(Dollars in thousands)
| | | | | | | | | | | | | | | | | | | | |
| | | 2005
| | | 2004
| |
| | | 3rd qtr
| | | 2nd qtr
| | | 1st qtr
| | | 4th qtr
| | | 3rd qtr
| |
Cash and due from banks | | $ | 289,089 | | | $ | 284,906 | | | $ | 217,333 | | | $ | 232,407 | | | $ | 238,820 | |
Interest-earning deposits with banks | | | 14,196 | | | | 19,245 | | | | 27,696 | | | | 32,919 | | | | 30,118 | |
Loans held for sale | | | 20,685 | | | | 14,979 | | | | 27,946 | | | | 9,433 | | | | 31,107 | |
Securities available for sale | | | 3,052,117 | | | | 3,056,836 | | | | 3,063,145 | | | | 3,091,813 | | | | 3,118,884 | |
Total loans | | | 10,914,530 | | | | 10,821,336 | | | | 10,662,957 | | | | 10,616,118 | | | | 10,262,393 | |
Allowance for loan losses | | | (153,351 | ) | | | (152,543 | ) | | | (150,122 | ) | | | (151,389 | ) | | | (147,479 | ) |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Net loans | | | 10,761,179 | | | | 10,668,793 | | | | 10,512,835 | | | | 10,464,729 | | | | 10,114,914 | |
Premises and equipment | | | 165,517 | | | | 167,132 | | | | 156,829 | | | | 155,466 | | | | 154,252 | |
Goodwill and other intangibles | | | 582,798 | | | | 577,008 | | | | 539,678 | | | | 546,932 | | | | 520,221 | |
Other assets | | | 451,384 | | | | 431,602 | | | | 432,350 | | | | 410,724 | | | | 434,816 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Total Assets | | $ | 15,336,965 | | | $ | 15,220,501 | | | $ | 14,977,812 | | | $ | 14,944,423 | | | $ | 14,643,132 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Total interest-earning assets | | $ | 14,001,528 | | | $ | 13,912,396 | | | $ | 13,781,744 | | | $ | 13,750,283 | | | $ | 13,442,502 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Non-interest-bearing deposits | | $ | 1,722,735 | | | $ | 1,689,340 | | | $ | 1,557,454 | | | $ | 1,592,510 | | | $ | 1,477,061 | |
Interest-bearing deposits | | | 9,132,059 | | | | 8,920,127 | | | | 8,883,838 | | | | 8,759,081 | | | | 8,677,287 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Total deposits | | | 10,854,794 | | | | 10,609,467 | | | | 10,441,292 | | | | 10,351,591 | | | | 10,154,348 | |
Repos and federal funds purchased | | | 780,585 | | | | 845,146 | | | | 942,150 | | | | 1,041,361 | | | | 921,175 | |
Debt and FHLB advances | | | 1,963,594 | | | | 2,110,206 | | | | 2,043,946 | | | | 1,924,840 | | | | 1,989,806 | |
Other liabilities | | | 222,078 | | | | 159,259 | | | | 143,648 | | | | 155,676 | | | | 161,388 | |
Shareholders’ equity | | | 1,515,914 | | | | 1,496,423 | | | | 1,406,776 | | | | 1,470,955 | | | | 1,416,415 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Total Liabilities and Shareholders’ Equity | | $ | 15,336,995 | | | $ | 15,220,501 | | | $ | 14,977,812 | | | $ | 14,944,423 | | | $ | 14,643,132 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
5
Supplemental Financials - Third Quarter 2005
SKY FINANCIAL GROUP, INC.
FIVE QUARTER LOAN TABLE (Unaudited)
(Dollars in thousands)
| | | | | | | | | | | | | | | | | | | | |
| | | 2005
| | | 2004
| |
| | | 3rd qtr
| | | 2nd qtr
| | | 1st qtr
| | | 4th qtr
| | | 3rd qtr
| |
PERIOD END | | | | | | | | | | | | | | | | | | | | |
Residential Mortgage | | $ | 1,096,703 | | | $ | 1,105,896 | | | $ | 1,082,756 | | | $ | 1,110,943 | | | $ | 1,037,229 | |
Home Equity | | | 1,737,937 | | | | 1,751,449 | | | | 1,701,716 | | | | 1,728,599 | | | | 1,658,344 | |
Consumer | | | 736,363 | | | | 768,837 | | | | 797,857 | | | | 807,686 | | | | 846,412 | |
Commercial Real Estate | | | 4,447,272 | | | | 4,479,275 | | | | 4,408,069 | | | | 4,406,151 | | | | 4,225,070 | |
Commercial & Industrial | | | 2,896,255 | | | | 2,715,879 | | | | 2,672,559 | | | | 2,562,739 | | | | 2,495,338 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Total Loans | | $ | 10,914,530 | | | $ | 10,821,336 | | | $ | 10,662,957 | | | $ | 10,616,118 | | | $ | 10,262,393 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Residential Mortgage | | | 10 | % | | | 10 | % | | | 10 | % | | | 10 | % | | | 10 | % |
Home Equity | | | 16 | % | | | 16 | % | | | 16 | % | | | 16 | % | | | 16 | % |
Consumer | | | 7 | % | | | 7 | % | | | 8 | % | | | 8 | % | | | 8 | % |
Commercial Real Estate | | | 41 | % | | | 42 | % | | | 41 | % | | | 42 | % | | | 42 | % |
Commercial & Industrial | | | 26 | % | | | 25 | % | | | 25 | % | | | 24 | % | | | 24 | % |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Total Loans | | | 100 | % | | | 100 | % | | | 100 | % | | | 100 | % | | | 100 | % |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
| | |
| | | 2005
| | | 2004
| |
| | | 3rd qtr
| | | 2nd qtr
| | | 1st qtr
| | | 4th qtr
| | | 3rd qtr
| |
AVERAGES | | | | | | | | | | | | | | | | | | | | |
Residential Mortgage | | $ | 1,102,936 | | | $ | 1,088,328 | | | $ | 1,103,778 | | | $ | 1,067,456 | | | $ | 1,058,878 | |
Home Equity | | | 1,745,278 | | | | 1,721,724 | | | | 1,717,047 | | | | 1,694,828 | | | | 1,630,492 | |
Consumer | | | 755,634 | | | | 777,458 | | | | 798,477 | | | | 826,807 | | | | 865,205 | |
Commercial Real Estate | | | 4,419,506 | | | | 4,451,084 | | | | 4,405,092 | | | | 4,281,441 | | | | 4,071,301 | |
Commercial & Industrial | | | 2,768,007 | | | | 2,682,470 | | | | 2,580,014 | | | | 2,530,274 | | | | 2,513,835 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Total Loans | | $ | 10,791,361 | | | $ | 10,721,064 | | | $ | 10,604,408 | | | $ | 10,400,806 | | | $ | 10,139,711 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Residential Mortgage | | | 10 | % | | | 10 | % | | | 10 | % | | | 10 | % | | | 10 | % |
Home Equity | | | 16 | % | | | 16 | % | | | 16 | % | | | 16 | % | | | 16 | % |
Consumer | | | 7 | % | | | 7 | % | | | 8 | % | | | 8 | % | | | 9 | % |
Commercial Real Estate | | | 41 | % | | | 42 | % | | | 42 | % | | | 42 | % | | | 40 | % |
Commercial & Industrial | | | 26 | % | | | 25 | % | | | 24 | % | | | 24 | % | | | 25 | % |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Total Loans | | | 100 | % | | | 100 | % | | | 100 | % | | | 100 | % | | | 100 | % |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
6
Supplemental Financials - Third Quarter 2005
SKY FINANCIAL GROUP, INC.
FIVE QUARTER FUNDING TABLE (Unaudited)
(Dollars in thousands)
| | | | | | | | | | | | | | | |
| | | 2005
| | 2004
|
| | | 3rd qtr
| | 2nd qtr
| | 1st qtr
| | 4th qtr
| | 3rd qtr
|
PERIOD END | | | | | | | | | | | | | | | |
Non-interest-bearing demand deposits | | $ | 1,722,735 | | $ | 1,689,340 | | $ | 1,557,454 | | $ | 1,592,510 | | $ | 1,477,061 |
Interest-bearing demand deposits | | | 410,783 | | | 367,174 | | | 359,620 | | | 325,751 | | | 389,986 |
Savings deposits | | | 3,585,227 | | | 3,670,735 | | | 3,825,900 | | | 3,874,943 | | | 3,979,107 |
Time deposits | | | 5,136,049 | | | 4,882,218 | | | 4,698,318 | | | 4,558,387 | | | 4,308,194 |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
Total deposits | | | 10,854,794 | | | 10,609,467 | | | 10,441,292 | | | 10,351,591 | | | 10,154,348 |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
Short-term borrowings | | | 780,585 | | | 846,268 | | | 942,150 | | | 1,041,361 | | | 921,175 |
Trust preferred securities | | | 187,790 | | | 190,491 | | | 188,326 | | | 189,558 | | | 185,067 |
Debt and FHLB advances | | | 1,775,804 | | | 1,918,593 | | | 1,855,620 | | | 1,735,282 | | | 1,804,739 |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
Total funding sources | | $ | 13,598,973 | | $ | 13,564,819 | | $ | 13,427,388 | | $ | 13,317,792 | | $ | 13,065,329 |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
| | |
| | | 2005
| | 2004
|
| | | 3rd qtr
| | 2nd qtr
| | 1st qtr
| | 4th qtr
| | 3rd qtr
|
AVERAGE | | | | | | | | | | | | | | | |
Non-interest-bearing demand deposits | | $ | 1,679,171 | | $ | 1,622,138 | | $ | 1,563,661 | | $ | 1,573,004 | | $ | 1,508,074 |
Interest-bearing demand deposits | | | 400,426 | | | 357,348 | | | 347,180 | | | 362,352 | | | 353,368 |
Savings deposits | | | 3,651,598 | | | 3,751,675 | | | 3,879,783 | | | 3,939,766 | | | 4,014,051 |
Time deposits | | | 5,031,124 | | | 4,786,776 | | | 4,631,719 | | | 4,422,842 | | | 4,337,033 |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
Total deposits | | | 10,762,319 | | | 10,517,937 | | | 10,422,343 | | | 10,297,964 | | | 10,212,526 |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
Short-term borrowings | | | 794,554 | | | 894,356 | | | 915,969 | | | 944,788 | | | 867,547 |
Trust preferred securities | | | 189,509 | | | 189,801 | | | 189,726 | | | 186,668 | | | 182,288 |
Debt and FHLB advances | | | 1,791,472 | | | 1,917,476 | | | 1,792,323 | | | 1,740,535 | | | 1,734,164 |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
Total funding sources | | $ | 13,537,854 | | $ | 13,519,570 | | $ | 13,320,361 | | $ | 13,169,955 | | $ | 12,996,525 |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
7
Supplemental Financials - Third Quarter 2005
ASSET QUALITY DATA:
| | | | | | | | | | | | | | | | | | | | |
| | | 2005
| | | 2004
| |
| | | 3rd qtr
| | | 2nd qtr
| | | 1st qtr
| | | 4th qtr
| | | 3rd qtr
| |
Non-accrual loans | | $ | 126,131 | | | $ | 126,537 | | | $ | 125,464 | | | $ | 143,207 | | | $ | 122,050 | |
Restructured loans | | | 495 | | | | 516 | | | | 526 | | | | 541 | | | | 556 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Total non-performing loans | | | 126,626 | | | | 127,053 | | | | 125,990 | | | | 143,748 | | | | 122,606 | |
Investment securities | | | 10,299 | | | | 10,395 | | | | 11,705 | | | | 11,705 | | | | 11,705 | |
Other real estate owned | | | 14,700 | | | | 11,511 | | | | 11,854 | | | | 10,055 | | | | 11,924 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Total non-performing assets | | $ | 151,625 | | | $ | 148,959 | | | $ | 149,549 | | | $ | 165,508 | | | $ | 146,235 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Loans 90 days or more past due & still accruing | | $ | 24,424 | | | $ | 25,848 | | | $ | 26,885 | | | $ | 16,243 | | | $ | 17,183 | |
Net charge-offs | | | 7,997 | | | | 5,817 | | | | 31,748 | | | | 9,864 | | | | 8,106 | |
Allowance for loan losses | | | 153,351 | | | | 152,543 | | | | 150,122 | | | | 151,389 | | | | 147,479 | |
| | | | | |
| ASSET QUALITY RATIOS: | | | | | | | | | | | | | | | | | | | | |
| | | 2005
| | | 2004
| |
| | | 3rd qtr
| | | 2nd qtr
| | | 1st qtr
| | | 4th qtr
| | | 3rd qtr
| |
| | | | | | | | | | | | | | | | | | | | | |
Non-accrual loans to total loans | | | 1.16 | % | | | 1.17 | % | | | 1.18 | % | | | 1.35 | % | | | 1.19 | % |
Non-performing loans to total loans | | | 1.16 | | | | 1.17 | | | | 1.18 | | | | 1.35 | | | | 1.19 | |
Non-performing assets to total assets | | | 0.99 | | | | 0.98 | | | | 1.00 | | | | 1.11 | | | | 1.00 | |
Loans 90 days or more past due and still accruing to total loans | | | 0.22 | | | | 0.24 | | | | 0.25 | | | | 0.15 | | | | 0.17 | |
Net charge-offs to average loans | | | 0.29 | | | | 0.22 | | | | 1.21 | | | | 0.38 | | | | 0.32 | |
Allowance for loan losses to non-performing loans | | | 121.11 | | | | 120.06 | | | | 119.15 | | | | 105.32 | | | | 120.29 | |
Allowance for loan losses to non-performing assets | | | 101.14 | | | | 102.41 | | | | 100.38 | | | | 91.47 | | | | 100.85 | |
Allowance for loan losses to total loans | | | 1.41 | | | | 1.41 | | | | 1.41 | | | | 1.43 | | | | 1.44 | |
8
Supplemental Financials - Third Quarter 2005
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 nine months ended September 30, 2005 and 2004 for each of the five quarters presented in the tables:
| | | | | | | | |
| | | Nine Months Ended
September 30,
| |
| | | 2005
| | | 2004
| |
Income from continuing operations | | $ | 130,969 | | | $ | 126,301 | |
Merger, integration and restructuring expense | | | 1,153 | | | | 4,177 | |
Tax effect | | | (404 | ) | | | (1,462 | ) |
| | |
|
|
| |
|
|
|
After-tax non-operating items | | | 749 | | | | 2,715 | |
| | |
|
|
| |
|
|
|
Core operating earnings | | $ | 131,718 | | | $ | 129,016 | |
| | |
|
|
| |
|
|
|
| | | | | | | | | | | | | | | | | | | |
| | | 2005
| | 2004
| |
| | | 3rd qtr
| | | 2nd qtr
| | | 1st qtr
| | 4th qtr
| | | 3rd qtr
| |
Income from continuing operations | | $ | 51,023 | | | $ | 48,475 | | | $ | 31,471 | | $ | 48,899 | | | $ | 46,148 | |
| | |
|
|
| |
|
|
| |
|
| |
|
|
| |
|
|
|
Merger, integration and restructuring expense | | | 122 | | | | 1,031 | | | | — | | | 365 | | | | 3,831 | |
Tax effect | | | (43 | ) | | | (361 | ) | | | — | | | (128 | ) | | | (1,341 | ) |
| | |
|
|
| |
|
|
| |
|
| |
|
|
| |
|
|
|
After-tax non-operating items | | | 79 | | | | 670 | | | | — | | | 237 | | | | 2,490 | |
| | |
|
|
| |
|
|
| |
|
| |
|
|
| |
|
|
|
Core operating earnings | | $ | 51,102 | | | $ | 49,145 | | | $ | 31,471 | | $ | 49,136 | | | $ | 48,638 | |
| | |
|
|
| |
|
|
| |
|
| |
|
|
| |
|
|
|
Merger, integration and restructuring expense in 2005 reflect charges associated with the acquisition of Belmont Bancorp in the second quarter and the cost associated with the pending acquisition of Falls Bank recorded in the third quarter. Merger, integration and restructuring expense in 2004 reflect charges associated with the sale of Sky Financial Solutions, Inc. in the first quarter, the acquisition of Second Bancorp in the second quarter and the acquisition of Prospect Bancshares 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 Financials - Third Quarter 2005
Cash operating earnings
The following reconciles core operating earnings to cash operating earnings for the nine months ended September 30, 2005 and 2004 as well as for each of the five quarters presented in these tables:
| | | | | | | | |
| | | Nine Months Ended
September 30,
| |
| | | 2005
| | | 2004
| |
Core operating earnings | | $ | 131,718 | | | $ | 129,016 | |
| | |
|
|
| |
|
|
|
Amortization of core deposits and other intangible assets | | | 10,978 | | | | 7,403 | |
Tax effect | | | (3,842 | ) | | | (2,591 | ) |
| | |
|
|
| |
|
|
|
After-tax non-operating items | | | 7,136 | | | | 4,812 | |
| | |
|
|
| |
|
|
|
Cash operating earnings | | $ | 138,854 | | | $ | 133,828 | |
| | |
|
|
| |
|
|
|
| | | | | | | | | | | | | | | | | | | | |
| | | 2005
| | | 2004
| |
| | | 3rd qtr
| | | 2nd qtr
| | | 1st qtr
| | | 4th qtr
| | | 3rd qtr
| |
Core operating earnings | | $ | 51,102 | | | $ | 49,145 | | | $ | 31,471 | | | $ | 49,136 | | | $ | 48,638 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Amortization of core deposits and other intangible assets | | | 3,814 | | | | 3,610 | | | | 3,554 | | | | 3,577 | | | | 3,553 | |
Tax effect | | | (1,335 | ) | | | (1,264 | ) | | | (1,244 | ) | | | (1,252 | ) | | | (1,244 | ) |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
After-tax non-operating items | | | 2,479 | | | | 2,346 | | | | 2,310 | | | | 2,325 | | | | 2,309 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Cash operating earnings | | $ | 53,581 | | | $ | 51,491 | | | $ | 33,781 | | | $ | 51,461 | | | $ | 50,947 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
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 Financials - Third Quarter 2005
The following table reconciles average GAAP equity to average tangible equity for the nine months ended September 30, 2005 and 2004, as well as each of the period ends presented in the tables.
| | | | | | | | |
| | | September 30,
| |
| | | 2005
| | | 2004
| |
Average GAAP equity | | $ | 1,471,917 | | | $ | 1,162,211 | |
| | |
|
|
| |
|
|
|
Goodwill | | | 486,889 | | | | 278,165 | |
Core deposits and other intangibles | | | 69,463 | | | | 58,553 | |
Deferred taxes | | | (24,312 | ) | | | (20,494 | ) |
| | |
|
|
| |
|
|
|
| | | | 532,040 | | | | 316,224 | |
| | |
|
|
| |
|
|
|
Average tangible equity | | $ | 939,877 | | | $ | 845,987 | |
| | |
|
|
| |
|
|
|
| | | | | | | | | | | | | | | | | | | | |
| | | 2005
| | | 2004
| |
| | | 3rd qtr
| | | 2nd qtr
| | | 1st qtr
| | | 4th qtr
| | | 3rd qtr
| |
Average GAAP equity | | $ | 1,512,883 | | | $ | 1,438,443 | | | $ | 1,463,903 | | | $ | 1,448,075 | | | $ | 1,390,013 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Goodwill | | | 507,944 | | | | 481,190 | | | | 471,141 | | | | 454,488 | | | | 440,734 | |
Core deposits and other intangibles | | | 69,687 | | | | 68,761 | | | | 69,945 | | | | 73,037 | | | | 75,939 | |
Deferred taxes | | | (24,390 | ) | | | (24,066 | ) | | | (24,481 | ) | | | (25,563 | ) | | | (26,579 | ) |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
| | | | 553,241 | | | | 525,885 | | | | 516,605 | | | | 501,962 | | | | 490,094 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Average tangible equity | | $ | 959,642 | | | $ | 912,558 | | | $ | 947,298 | | | $ | 946,113 | | | $ | 899,919 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
The following table reconciles average GAAP assets to average tangible assets for the nine months ended September 30, 2005 and 2004, as well as each of the period ends presented in the tables.
| | | | | | | | |
| | | September 30,
| |
| | | 2005
| | | 2004
| |
Average GAAP assets (excluding discontinued operations) | | $ | 15,074,074 | | | $ | 12,893,473 | |
| | |
|
|
| |
|
|
|
Goodwill | | | 486,889 | | | | 278,165 | |
Core deposits and other intangibles | | | 69,463 | | | | 58,553 | |
Deferred taxes | | | (24,312 | ) | | | (20,494 | ) |
| | |
|
|
| |
|
|
|
| | | | 532,040 | | | | 316,224 | |
| | |
|
|
| |
|
|
|
Average tangible assets | | $ | 14,542,034 | | | $ | 12,577,249 | |
| | |
|
|
| |
|
|
|
| | | | | | | | | | | | | | | | | | | | |
| | | 2005
| | | 2004
| |
| | | 3rd qtr
| | | 2nd qtr
| | | 1st qtr
| | | 4th qtr
| | | 3rd qtr
| |
Average GAAP assets | | $ | 15,197,504 | | | $ | 15,095,049 | | | $ | 14,926,701 | | | $ | 14,751,651 | | | $ | 14,523,149 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Goodwill | | | 507,944 | | | | 481,190 | | | | 471,141 | | | | 454,488 | | | | 440,734 | |
Core deposits and other intangibles | | | 69,687 | | | | 68,761 | | | | 69,945 | | | | 73,037 | | | | 75,939 | |
Deferred taxes | | | (24,390 | ) | | | (24,066 | ) | | | (24,481 | ) | | | (25,563 | ) | | | (26,579 | ) |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
| | | | 553,241 | | | | 525,885 | | | | 516,605 | | | | 501,962 | | | | 490,094 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
Average tangible assets | | $ | 14,644,263 | | | $ | 14,569,164 | | | $ | 14,410,096 | | | $ | 14,249,689 | | | $ | 14,033,055 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
11
Supplemental Financials - Third Quarter 2005
The following table reconciles GAAP earnings per share to core operating earnings per share and cash operating earnings per share (certain information does not add due to rounding):
Basic EPS
| | | | | | | |
| | | Nine Months Ended
September 30,
| |
| | | 2005
| | 2004
| |
Net income | | $ | 1.23 | | $ | 1.49 | |
After-tax earnings from discontinued operations | | | — | | | (0.19 | ) |
After-tax merger, integration and restructuring | | | 0.01 | | | 0.03 | |
| | |
|
| |
|
|
|
Core operating earnings | | | 1.24 | | | 1.33 | |
After-tax amortization of core deposits and other intangible assets | | | 0.07 | | | 0.05 | |
| | |
|
| |
|
|
|
Cash operating earnings | | $ | 1.30 | | $ | 1.38 | |
| | |
|
| |
|
|
|
| | | | | | | | | | | | | | | |
| | | 2005
| | 2004
|
| | | 3rd qtr
| | 2nd qtr
| | 1st qtr
| | 4th qtr
| | 3rd qtr
|
Net income | | $ | 0.48 | | $ | 0.46 | | $ | 0.30 | | $ | 0.47 | | $ | 0.44 |
After-tax earnings from discontinued operations | | | — | | | — | | | — | | | 0.00 | | | — |
After-tax merger, integration and restructuring | | | 0.00 | | | 0.01 | | | — | | | 0.00 | | | 0.02 |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
Core operating earnings | | | 0.48 | | | 0.46 | | | 0.30 | | | 0.47 | | | 0.46 |
After-tax amortization of core deposits and other intangible assets | | | 0.02 | | | 0.02 | | | 0.02 | | | 0.02 | | | 0.02 |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
Cash operating earnings | | $ | 0.50 | | $ | 0.49 | | $ | 0.32 | | $ | 0.49 | | $ | 0.48 |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
Diluted EPS
| | | | | | | |
| | | Nine Months Ended
September 30,
| |
| | | 2005
| | 2004
| |
Net income | | $ | 1.22 | | $ | 1.47 | |
After-tax earnings from discontinued operations | | | — | | | (0.19 | ) |
After-tax merger, integration and restructuring | | | 0.01 | | | 0.03 | |
| | |
|
| |
|
|
|
Core operating earnings | | | 1.22 | | | 1.31 | |
After-tax amortization of core deposits and other intangible assets | | | 0.07 | | | 0.05 | |
| | |
|
| |
|
|
|
Cash operating earnings | | $ | 1.29 | | $ | 1.36 | |
| | |
|
| |
|
|
|
| | | | | | | | | | | | | | | |
| | | 2005
| | 2004
|
| | | 3rd qtr
| | 2nd qtr
| | 1st qtr
| | 4th qtr
| | 3rd qtr
|
Net income | | $ | 0.47 | | $ | 0.45 | | $ | 0.29 | | $ | 0.46 | | $ | 0.43 |
After-tax earnings from discontinued operations | | | — | | | — | | | — | | | 0.00 | | | — |
After-tax merger, integration and restructuring | | | 0.00 | | | 0.01 | | | — | | | 0.00 | | | 0.02 |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
Core operating earnings | | | 0.47 | | | 0.46 | | | 0.29 | | | 0.46 | | | 0.46 |
After-tax amortization of core deposits and other intangible assets | | | 0.02 | | | 0.02 | | | 0.02 | | | 0.02 | | | 0.02 |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
Cash operating earnings | | $ | 0.49 | | $ | 0.48 | | $ | 0.31 | | $ | 0.48 | | $ | 0.48 |
| | |
|
| |
|
| |
|
| |
|
| |
|
|
— end —
12
