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STATE STREET CORPORATION |
EARNINGS RELEASE ADDENDUM |
AVERAGE STATEMENT OF CONDITION - RATES EARNED AND PAID - FULLY TAXABLE-EQUIVALENT BASIS(1) |
The following table presents average rates earned and paid, on a fully taxable-equivalent basis, on consolidated average interest-earning assets and average interest-bearing liabilities for the quarters indicated. Tax-equivalent adjustments were calculated using a federal income tax rate of 21%, adjusted for applicable state income taxes, net of related federal benefit. | |
| | Quarters | | % Change | |
| | 1Q21 | | 2Q21 | | 3Q21 | | 4Q21 | | 1Q22 | | 2Q22 | | | | | | 2Q22 vs. 2Q21 | | 2Q22 vs. 1Q22 | |
(Dollars in millions; fully-taxable equivalent basis) | | Average balance | | Average rates | | Average balance | | Average rates | | Average balance | | Average rates | | Average balance | | Average rates | | Average balance | | Average rates | | Average balance | | Average rates | | | | | | | | | | Average balance | | Average balance | |
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits with banks | | $ | 95,235 | | | (0.04) | % | | $ | 99,438 | | | (0.02) | % | | $ | 79,375 | | | — | % | | $ | 86,154 | | | (0.01) | % | | $ | 76,741 | | | 0.05 | % | | $ | 76,531 | | | 0.36 | % | | | | | | | | | | (23.0) | % | | (0.3) | % | |
Securities purchased under resale agreements(2) | | 4,568 | | | 0.88 | | | 3,958 | | | 0.28 | | | 4,061 | | | 0.65 | | | 4,191 | | | 0.69 | | | 3,150 | | | 1.31 | | | 2,022 | | | 7.47 | | | | | | | | | | | (48.9) | | | (35.8) | | |
Trading account assets | | 800 | | | — | | | 729 | | | — | | | 733 | | | 0.02 | | | 747 | | | 0.01 | | | 761 | | | — | | | 746 | | | 0.01 | | | | | | | | | | | 2.3 | | | (2.0) | | |
Investment securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment securities available-for-sale | | 59,191 | | | 0.95 | | | 66,225 | | | 0.88 | | | 69,621 | | | 0.86 | | | 71,134 | | | 0.83 | | | 75,226 | | | 0.83 | | | 54,767 | | | 0.91 | | | | | | | | | | | (17.3) | | | (27.2) | | |
Investment securities held-to-maturity | | 47,356 | | | 1.54 | | | 45,243 | | | 1.47 | | | 44,014 | | | 1.47 | | | 42,772 | | | 1.45 | | | 44,060 | | | 1.56 | | | 59,162 | | | 1.55 | | | | | | | | | | | 30.8 | | | 34.3 | |
Investment securities held-to-maturity purchased under money market liquidity facility | | 1,262 | | | 1.35 | | | 13 | | | 1.28 | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | | | | | | | | | (100.0) | | | — | | |
Total investment securities | | 107,809 | | | 1.21 | | | 111,481 | | | 1.12 | | | 113,635 | | | 1.10 | | | 113,906 | | | 1.06 | | | 119,286 | | | 1.10 | | | 113,929 | | | 1.24 | | | | | | | | | | | 2.2 | | | (4.5) | | |
Loans(3) | | 28,025 | | | 2.05 | | | 29,471 | | | 2.14 | | | 32,035 | | | 2.08 | | | 34,425 | | | 2.00 | | | 34,407 | | | 2.03 | | | 35,826 | | | 2.23 | | | | | | | | | | | 21.6 | | | 4.1 | | |
Other interest-earning assets | | 18,296 | | | 0.10 | | | 20,939 | | | 0.07 | | | 24,662 | | | 0.08 | | | 25,418 | | | 0.07 | | | 23,767 | | | 0.08 | | | 22,199 | | | 0.83 | | | | | | | | | | | 6.0 | | | (6.6) | | |
Total interest-earning assets | | 254,733 | | | 0.76 | | | 266,016 | | | 0.71 | | | 254,501 | | | 0.76 | | | 264,841 | | | 0.73 | | | 258,112 | | | 0.82 | | | 251,253 | | | 1.13 | | | | | | | | | | | (5.5) | | | (2.7) | | |
Cash and due from banks | | 4,529 | | | | | 5,594 | | | | | 5,103 | | | | | 4,998 | | | | | 4,018 | | | | | 3,829 | | | | | | | | | | | | | (31.6) | | | (4.7) | | |
Other assets | | 37,066 | | | | | 36,585 | | | | | 31,855 | | | | | 33,168 | | | | | 32,880 | | | | | 36,353 | | | | | | | | | | | | | (0.6) | | | 10.6 | | |
Total assets | | $ | 296,328 | | | | | $ | 308,195 | | | | | $ | 291,459 | | | | | $ | 303,007 | | | | | $ | 295,010 | | | | | $ | 291,435 | | | | | | | | | | | | | (5.4) | | | (1.2) | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. | | $ | 100,974 | | | 0.01 | % | | $ | 110,269 | | | — | % | | $ | 104,575 | | | 0.02 | % | | $ | 103,547 | | | — | % | | $ | 100,073 | | | 0.02 | % | | $ | 97,273 | | | 0.26 | % | | | | | | | | | | (11.8) | | | (2.8) | | |
Non-U.S.(4) | | 78,433 | | | (0.37) | | | 83,248 | | | (0.32) | | | 82,230 | | | (0.33) | | | 84,525 | | | (0.31) | | | 83,556 | | | (0.32) | | | 80,055 | | | (0.20) | | | | | | | | | | | (3.8) | | | (4.2) | | |
Total interest-bearing deposits(4) | | 179,407 | | | (0.16) | | | 193,517 | | | (0.14) | | | 186,805 | | | (0.13) | | | 188,072 | | | (0.14) | | | 183,629 | | | (0.14) | | | 177,328 | | | 0.05 | | | | | | | | | | | (8.4) | | | (3.4) | | |
Securities sold under repurchase agreements | | 1,017 | | | 0.05 | | | 477 | | | (0.02) | | | 332 | | | — | | | 847 | | | (0.05) | | | 2,279 | | | (0.02) | | | 4,486 | | | 0.26 | | | | | | | | | | | 840.5 | | | 96.8 | | |
Short-term borrowings under money market liquidity facility | | 1,264 | | | 1.21 | | | 13 | | | 1.25 | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | | | | | | | | | (100.0) | | | — | |
Other short-term borrowings | | 764 | | | 0.14 | | | 893 | | | 0.27 | | | 837 | | | 0.17 | | | 659 | | | 0.28 | | | 872 | | | — | | | 680 | | | 0.73 | | | | | | | | | | | (23.9) | | | (22.0) | | |
Long-term debt | | 13,819 | | | 1.74 | | | 13,461 | | | 1.60 | | | 13,021 | | | 1.59 | | | 13,243 | | | 1.62 | | | 14,265 | | | 1.82 | | | 13,702 | | | 2.12 | | | | | | | | | | | 1.8 | | | (3.9) | | |
Other interest-bearing liabilities | | 4,848 | | | 0.73 | | | 5,682 | | | 0.80 | | | 5,461 | | | 0.78 | | | 5,943 | | | 0.71 | | | 2,881 | | | 1.50 | | | 2,518 | | | 3.31 | | | | | | | | | | | (55.7) | | | (12.6) | | |
Total interest-bearing liabilities | | 201,119 | | | 0.01 | | | 214,043 | | | — | | | 206,456 | | | — | | | 208,764 | | | — | | | 203,926 | | | 0.02 | | | 198,714 | | | 0.24 | | | | | | | | | | | (7.2) | | | (2.6) | | |
Non-interest bearing deposits(5) | | 46,825 | | | | | 48,793 | | | | | 46,461 | | | | | 51,608 | | | | | 49,639 | | | | | 51,089 | | | | | | | | | | | | | 4.7 | | | 2.9 | | |
Other liabilities | | 22,423 | | | | | 20,131 | | | | | 12,775 | | | | | 15,266 | | | | | 14,678 | | | | | 15,969 | | | | | | | | | | | | | (20.7) | | | 8.8 | | |
Preferred shareholders' equity | | 2,378 | | | | | 1,976 | | | | | 1,976 | | | | | 1,976 | | | | | 1,976 | | | | | 1,976 | | | | | | | | | | | | | — | | | — | | |
Common shareholders' equity | | 23,583 | | | | | 23,252 | | | | | 23,791 | | | | | 25,393 | | | | | 24,791 | | | | | 23,687 | | | | | | | | | | | | | 1.9 | | | (4.5) | | |
Total liabilities and shareholders' equity | | $ | 296,328 | | | | | $ | 308,195 | | | | | $ | 291,459 | | | | | $ | 303,007 | | | | | $ | 295,010 | | | | | $ | 291,435 | | | | | | | | | | | | | (5.4) | | | (1.2) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total deposits | | $ | 226,232 | | | | | $ | 242,310 | | | | | $ | 233,266 | | | | | $ | 239,680 | | | | | $ | 233,268 | | | | | $ | 228,417 | | | | | | | | | | | | | (5.7) | | | (2.1) | | |
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Excess of rate earned over rate paid | | | | 0.75 | % | | | | 0.71 | % | | | | 0.76 | % | | | | 0.73 | % | | | | 0.80 | % | | | | 0.89 | % | | | | | | | | | | | | | |
Net interest margin | | | | 0.75 | % | | | | 0.71 | % | | | | 0.76 | % | | | | 0.73 | % | | | | 0.80 | % | | | | 0.94 | % | | | | | | | | | | | | | |
Net interest income, fully taxable-equivalent basis | | | | $ | 471 | | | | | $ | 470 | | | | | $ | 490 | | | | | $ | 487 | | | | | $ | 512 | | | | | $ | 587 | | | | | | | | | | | | | | |
Tax-equivalent adjustment | | | | (4) | | | | | (3) | | | | | (3) | | | | | (3) | | | | | (3) | | | | | (3) | | | | | | | | | | | | | | |
Net interest income, GAAP-basis(4) | | | | $ | 467 | | | | | $ | 467 | | | | | $ | 487 | | | | | $ | 484 | | | | | $ | 509 | | | | | $ | 584 | | | | | | | | | | | | | | |
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(1) Average rates earned and paid on interest-earning assets and interest-bearing liabilities include the impact of hedge activities associated with our asset and liability management activities where applicable. | |
(2) Reflects the impact of balance sheet netting under enforceable netting agreements of approximately $87 billion, $62 billion, $52 billion and $48 billion in the first, second, third and fourth quarters 2021, respectively, and approximately $55 billion and $71 billion in the first and second quarters of 2022. Excluding the impact of netting, the average interest rates would be approximately 0.04%, 0.02%, 0.05% and 0.06% in the first, second, third and fourth quarters of 2021, respectively, and approximately 0.07% and 0.21% in the first and second quarters of 2022. | |
(3) Average loans are presented on a gross basis. Average loans net of expected credit losses were approximately $27,904 million, $29,352 million, $31,935 million and $34,331 million in the first, second, third and fourth quarters of 2021 and approximately $34,320 million and $35,741 million in the first and second quarters of 2022. | |
(4) Average rates includes the impact of FX swap expense of approximately ($21) million, ($16) million, ($16) million and ($14) million in the first, second, third and fourth quarters of 2021, respectively, and approximately ($13) million and ($3) million in the first and second quarters of 2022. Average rates for total interest-bearing deposits excluding the impact of FX swap expense were approximately (0.11)%, (0.10)%, (0.10)% and (0.11)% in the first, second, third and fourth quarters of 2021, respectively, and approximately (0.11)% and 0.06% in the first and second quarters of 2022. | |
(5) Average non-interest bearing deposits are primarily composed of deposit balances denominated in U.S. dollars. | |