SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 10-Q
X Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarterly period ended September 30, 1995, or
Transition Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the transition period from _______ to ___________
Commission File Number 0-12216
OLD KENT FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter)
Michigan 38-1986608
(State of Incorporation) (I.R.S. Employer Identification Number)
One Vandenberg Center
Grand Rapids, Michigan 49503
(Address of principal executive (Zip Code)
Registrant's telephone number, including area code: (616) 771-5000
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes X No
The number of shares outstanding of the registrant's Common stock, par value
$1, as of October 31, 1995 was 45,141,990 shares.
INDEX
OLD KENT FINANCIAL CORPORATION
PART I. FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements (unaudited)
Consolidated Balance Sheets as of September 30, 1995
and December 31, 1994
Consolidated Statements of Income for the three
and nine months ended September 30, 1995 and 1994
Consolidated Statements of Cash Flows for the
nine months ended September 30, 1995 and 1994
Notes to Consolidated Financial Statements
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
SIGNATURES
OLD KENT FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets (Unaudited)_________________________________________________________
September 30, December 31,
(dollars in thousands) 1995 1994
ASSETS:
Cash and due from banks.......................................... $480,839 $486,281
Federal funds sold and resale agreements......................... 88,330 28,727
Total csh and cash equivalents.................................. 569,169 515,008
Interest-earning deposits........................................ 35,981 5,255
Trading account securities....................................... 6,187 10,651
Mortgages held-for-sale.......................................... 334,111 189,989
Securities available-for-sale:
Collateralized mortgage obligations and other mortgage-backed
securities................................................ 324,559 406,422
Other securities.............................................. 812,898 1,050,908
Total securities available-for-sale (amortized cost of
$1,138,622, and $1,518,208, respectively)................... 1,137,457 1,457,330
Securities held-to-maturity:
Collateralized mortgage obligations and other mortgage-backed
securities................................................ 1,285,784 1,092,797
Other securities.............................................. 881,825 990,695
Total securities held-to-maturity (market values of
$2,168,115 and $2,002,803, respectively).................... 2,167,609 2,083,492
Loans............................................................ 7,155,662 6,854,849
Allowance for credit losses...................................... (175,811) (167,253)
Net loans........................................................ 6,979,851 6,687,596
Premises and equipment........................................... 176,884 171,815
Other assets..................................................... 388,885 356,587
Total Assets..................................................... $11,796,134 $11,477,723
LIABILITIES AND SHAREHOLDERS' EQUITY:
Liabilities:
Deposits:
Non-interest bearing.......................................... $1,412,540 $1,449,460
Interest-bearing.............................................. 7,842,820 7,599,218
Foreign deposits -- interest-bearing.......................... 87,536 380,659
Total deposits.............................................. 9,342,896 9,429,337
Short-term borrowed funds........................................ 1,251,254 1,009,650
Other liabilities................................................ 201,692 141,621
Long-term debt................................................... 1,055 1,119
Total Liabilities................................................ 10,796,897 10,581,727
Shareholders' Equity:
Preferred stock: 25,000,000 shares authorized and unissued....... -- --
Common stock, $1 par value: 150,000,000 shares authorized;
45,279,508 and 43,178,291 shares issued and outstanding ....... 45,280 43,178
Capital surplus.................................................. 204,551 141,246
Retained earnings................................................ 750,164 751,163
Valuation adjustment of securities available-for-sale............ (758) (39,591)
Total Shareholders' Equity....................................... 999,237 895,996
Total Liabilities and Shareholders' Equity...................... $11,796,134 $11,477,723
See accompanying notes to consolidated financial statements.
OLD KENT FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Income (Unaudited)___________________________________________________
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
(in thousands, except per share data) 1995 1994 1995 1994
<C)
Interest Income:
Interest and fees on loans............................. $170,586 $134,626 $496,379 $360,158
Interest on mortgages held-for-sale.................... 6,354 2,926 13,151 11,732
Interest on securities available-for-sale.............. 16,166 19,399 55,270 62,846
Interest on securities held-to-maturity:
Taxable.............................................. 30,391 33,557 90,049 102,467
Tax-exempt........................................... 3,042 3,286 9,564 9,871
Interest on deposits................................... 733 343 1,155 882
Interest on federal funds sold and resale agreements... 3,510 1,281 12,444 2,772
Interest on trading account securities................. 126 163 1,074 880
Total interest income.................................. 230,908 195,581 679,086 551,608
Interest Expense:
Interest on domestic deposits.......................... 89,745 66,762 256,837 180,328
Interest on foreign deposits........................... 2,637 1,474 12,687 7,060
Interest on short-term borrowed funds.................. 18,120 10,221 52,338 26,086
Interest on long-term debt............................. 26 31 81 88
Total interest expense................................. 110,528 78,488 321,943 213,562
Net Interest Income...................................... 120,380 117,093 357,143 338,046
Provision for credit losses.............................. 6,073 5,245 16,631 16,380
Net interest income after provision
for credit losses.................................... 114,307 111,848 340,512 321,666
Other Income:
Trust income........................................... 11,185 10,885 32,149 31,929
Service charges on deposit accounts.................... 10,331 9,115 29,623 26,377
Securities transactions................................ 28 155 (139) 782
Credit card transaction revenue........................ 7,087 6,517 20,430 16,288
Mortgage banking gains................................. 6,983 1,488 11,879 7,140
Mortgage servicing revenue............................. 4,974 3,234 12,792 9,239
Nonrecurring and OREO income........................... 0 348 2,202 1,949
Other.................................................. 9,876 8,257 28,136 23,653
Total other income..................................... 50,464 39,999 137,072 117,357
Other Expenses:
Salaries and employee benefits......................... 47,361 43,777 139,997 127,275
Occupancy expense...................................... 7,334 7,070 21,129 20,873
Equipment expense...................................... 6,106 5,901 18,145 16,974
FDIC Insurance......................................... (256) 4,944 10,043 14,164
Interbank credit card transaction fees................. 4,540 4,395 13,038 11,156
Nonrecurring and OREO expense.......................... 4,972 -- 6,247 --
Other expenses......................................... 36,934 29,831 102,867 88,433
Total other expenses................................... 106,991 95,918 311,466 278,875
Income Before Income Taxes............................... 57,780 55,929 166,118 160,148
Income taxes........................................... 19,464 18,974 55,706 53,448
Net Income............................................... $38,316 $36,955 $110,412 $106,700
Per Common Share:
Net income............................................. $0.84 $0.81 $2.42 $2.35
Dividends.............................................. $0.310 $0.276 $0.900 $0.829
Number of Common Shares Used to Calculate
Primary Income Per Share (in thousands)................ 45,671 45,742 45,595 45,430
See accompanying notes to consolidated financial statements.
OLD KENT FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows (Unaudited)
Nine months ended September 30 (in thousands) 1995 1994
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income........................................................$ 110,412 $ 106,700
Adjustments to reconcile net income
to net cash provided by operating activities:
Provision for credit losses............................... 16,631 16,380
Depreciation, amortization and accretion.................. 32,075 29,492
Net gains on sales of assets.............................. 1,878 (3,959)
Net decrease in trading account securities................ 6,172 30,061
Originations and acquisitions of mortgages held-for-sale.. (1,489,953) (1,426,689)
Proceeds from sales of mortgages held-for-sale............ 1,341,311 1,785,198
Net change in other assets................................ (45,285) 1,999
Net change in other liabilities........................... 47,877 (54,335)
Net cash provided by operating activities......................... 21,118 484,847
CASH FLOWS FROM INVESTING ACTIVITIES:
Maturities and prepayments of securities available-for-sale....... 298,559 106,401
Proceeds from sales of securities available-for-sale.............. 1,240,313 1,636,010
Purchases of securities available-for-sale........................ (1,159,293) (1,499,483)
Maturities and prepayments of securities held-to-maturity......... 243,860 506,470
Purchases of securities held-to-maturity.......................... (329,386) (400,442)
Net change in interest-earning deposits........................... (30,771) 33,368
Net increase in loans............................................. (308,887) (852,212)
Purchases of leasehold improvements, premises and equipment, net.. (21,398) (21,804)
Acquisition of businesses net of cash acquired.................... - 23,763
Net cash used for investing activities............................ (67,004) (467,929)
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in time deposits......................................... 28,674 627,561
Decrease in demand and savings deposits........................... (115,114) (359,310)
Increase (decrease) in short-term borrowed funds.................. 234,961 (45,168)
Payments of long-term debt obligations............................ (64) (74)
Repurchases of common stock....................................... (12,500) (69,169)
Proceeds from common stock issuances.............................. 4,941 4,617
Dividends paid to shareholders.................................... (40,851) (36,789)
Net cash provided by financing activities......................... 100,047 121,668
Net change in cash and cash equivalents........................... 54,161 138,586
Cash and cash equivalents at beginning of year.................... 515,008 513,272
Cash and cash equivalents at end of year..........................$ 569,169 $ 651,858
Supplemental disclosures of cash flow information:
Interest paid on deposits, short-term borrowings and
long-term debt................................................$ 313,204 $ 207,994
Federal income taxes paid....................................... 52,016 58,917
See accompanying notes to consolidated financial statements.
OLD KENT FINANCIAL CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
September 30, 1995
NOTE A: BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-Q and
Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting
principles for complete financial statements. In the opinion of
management, all adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation have been included.
Operating results for the three and nine months ended September 30, 1995
are not necessarily indicative of the results that may be expected for the
year ending December 31, 1995. For further information, refer to the
consolidated financial statements and footnotes thereto included in the
Corporation's annual report on Form 10-K for the year ended December 31,
1994.
Prior period's amounts included in these financial statements have been
reclassified to place them on a basis comparable with the current periods'
financial statements.
NOTE B: LOANS AND NONPERFORMING ASSETS
The following summarizes loans and nonperforming assets at the
dates indicated (dollars in thousands):
September 30, December 31,
Loans: 1995 1994
Commercial..................................... $1,891,822 $1,655,764
Real estate - Commercial...................... 1,623,679 1,326,042
Real estate - Construction.................... 238,730 215,213
Real estate - Residential mortgages........... 821,316 1,160,614
Real estate - Consumer home equity ........... 613,131 561,975
Consumer....................................... 1,531,904 1,722,134
Credit card loans.............................. 246,799 102,252
Lease financing................................ 188,281 110,855
Total Loans.................................... $7,155,662 $6,854,849
September 30, December 31,
Nonperforming assets (dollars in thousands): 1995 1994
Impaired loans (on nonaccrual status).......... $35,929 $54,576
Restructured loans............................. 3,160 5,838
Other real estate owned........................ 9,496 12,366
Total nonperforming assets..................... $48,585 $72,780
NOTE C: ALLOWANCE FOR CREDIT LOSSES
The following summarizes the changes in the allowance for credit losses
(in thousands of dollars):
For the Nine Months
ended September 30,
Allowance for Credit Losses 1995 1994
Balance at January 1,............................ $167,253 $145,323
Changes in allowance due to purchased/sold loans.. (1,504) 9,237
Provision for credit losses....................... 16,631 16,380
Gross loans charged-off........................... (15,693) (13,294)
Gross recoveries of loans previously charged-off.. 9,124 9,327
Balance at end of period,......................... $175,811 $166,973
NOTE D: SECURITIES AVAILABLE-FOR-SALE
The following summarizes amortized costs and estimated market values of securities
available-for-sale at the dates indicated (in thousands of dollars):
Carrying
Gross Gross Value
Amortized Unrealized Unrealized at Market
September 30, 1995: Cost Gains Losses Value
U.S. Treasury and federal agencies...... $754,656 $3,931 $2,525 $756,062
Collateralized mortgage obligations and
other mortgage-backed securities...... 327,130 862 3,433 324,559
Equity securities....................... 56,836 0 0 56,836
Total securities available-for-sale..... $1,138,622 $4,793 $5,958 $1,137,457
December 31, 1994:
U.S. Treasury and federal agencies...... $1,054,962 $1,396 $30,178 $1,026,180
Collateralized mortgage obligations and
other mortgage-backed securities...... 439,904 78 33,560 406,422
Equity securities....................... 23,342 1,386 0 24,728
Total securities available-for-sale..... $1,518,208 $2,860 $63,738 $1,457,330
NOTE E: SECURITIES HELD-TO-MATURITY
The following summarizes amortized costs and estimated market values of securities
held-to-maturity at the dates indicated (in thousands of dollars):
Gross Gross
Amortized Unrealized Unrealized Market
September 30, 1995: Cost Gains Losses Value
U.S. Treasury and federal agencies........ $672,719 $8,446 $3,704 $677,461
Collateralized mortgage obligations and
other mortgage-backed securities........ 1,285,784 9,648 20,032 1,275,400
State and political subdivision securities 209,106 6,962 814 215,254
Total securities held-to-maturity......... $2,167,609 $25,056 $24,550 $2,168,115
December 31, 1994:
U.S. Treasury and federal agencies........ $769,576 $2,409 $11,752 $760,233
Collateralized mortgage obligations and
other mortgage-backed securities........ 1,092,797 1,590 72,355 1,022,032
State and political subdivision securities 221,119 3,645 4,226 220,538
Total securities held-to-maturity......... $2,083,492 $7,644 $88,333 $2,002,803
NOTE F: BUSINESS COMBINATIONS
In September, Old Kent announced a definitive agreement to purchase Guyot,
Hicks, Anderson & Associates, Inc., (GHA) an independent insurance agency
headquartered in Traverse City, Michigan, with five offices throughout
western Michigan. GHA provides a full line of personal and commercial
insurance products. The acquisition is expected to be completed during the
fourth quarter of 1995, at which time the agency will become a subsidiary of
Old Kent Bank. At September 30, 1995 GHA had total assets of approximately
$5.7 million.
Also during the third quarter of 1995, Old Kent signed a definitive agreement
to merge Republic Mortgage Corporation, a mortgage company headquartered in
Salt Lake City, Utah, with Old Kent Mortgage Company. As of September 30,
1995, Republic had total assets of approximately $50 million and a
residential servicing portfolio of $130 million. The merger is expected to
be completed during the fourth quarter of 1995.
On February 1, 1995, Old Kent acquired First National Bank Corp., a bank
holding company headquartered in Mount Clemens, Michigan. The merger was
effected through the exchange of 1.0813 shares of Old Kent Common Stock
(2,636,221 total shares) for each outstanding share of First National Bank
Corp. common stock. The merger was accounted for as a pooling-of-interests.
Accordingly, the accompanying consolidated financial statements have been
restated to include the financial position and results of operations of First
National Bank Corp. prior to the merger.
NOTE G: ADOPTION OF SFAS NO. 122
In May, 1995, the Financial Accounting Standards Board (FASB) issued Statement
of Financial Accounting Standard (SFAS) No. 122, "Accounting for Mortgage
Servicing Rights, an amendment of FASB Statement No. 65." This Statement
requires companies to recognize as separate assets for the rights to service
mortgage loans for others, however those servicing rights are acquired. The
Statement also requires companies to assess the capitalized mortgage servicing
rights for impairment based on the fair value of those rights. The provisions
of this Statement shall be applied prospectively in fiscal years beginning
after December 15, 1995, and earlier application is encouraged. The
Corporation has adopted the provisions of SFAS No. 122. The adoption did not
have a material impact on the Corporation's financial position or results of
operations.
NOTE H: CAPITAL STOCK
The Registrant paid a 5% stock dividend on August 15, 1995, to shareholders
of record on July 19, 1995. Per share amounts included in this report have
been adjusted to reflect this dividend.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL DISCUSSION
AND RESULTS OF OPERATIONS
The following is management's discussion and analysis of certain significant
factors which have affected the Registrant's financial condition and results
of operations during the periods included in the consolidated financial
statements included in this filing. The Registrant's Form 10-Q for each of
the quarterly periods ended March 31 and June 30, 1995 are herein
incorporated by reference.
RESULTS OF OPERATIONS
The Registrant's net income was $38,316,000 for the third quarter of 1995
compared to $36,955,000 for the same period in 1994. Third quarter net income
per share for 1995 was $.84, a 3.7% increase over last year's $.81.
Year-to-date net income was $110,412,000 compared to $106,700,000 a year ago
and earnings per share was $2.42, a 3.0% increase over last year's $2.35.
Total assets were $11.8 billion at quarter-end compared to total assets of
$11.1 billion at September 30, 1994. Return on average equity for the third
quarter of 1995 was 15.53% compared to 16.52% for the third quarter of 1994.
Return on assets was 1.31% for the third quarter of 1995 compared to 1.36%
for the third quarter of 1994.
The Registrant's net interest income for the third quarter of 1995 was
$120.4 million, a 2.8% increase over the $117.1 million recorded in the same
period of 1994. This increase primarily resulted from a 7.9% increase in
average interest-earning assets. The net interest margin was 4.47% for the
third quarter of 1995 compared to 4.69% for the third quarter of 1994.
The decrease in the net interest margin is primarily due to increased
borrowing costs.
The provision for credit losses was $6.1 million for the third quarter of
1995 and $5.2 million for the third quarter of 1994. Net credit losses were
$3.9 million or .21% of average loans for the third quarter of 1995 compared
to $1.7 million or .10% of average loans for the same period a year ago.
The allowance for credit losses as a percent of loans and leases outstanding
was 2.46% at September 30, 1995 and 2.55% at September 30, 1994.
Nonperforming assets as a percent of total loans was .68% at September 30,
1995 and 1.03% at September 30, 1994.
Total other operating income, excluding security transactions and
nonrecurring items, increased 27.7% to $50.4 million during the third
quarter of 1995 over the same period a year ago. Mortgage servicing revenue
increased $1.7 million or 53.8% during the third quarter of 1995 over the
same period a year ago. This reflects an increase of $1.9 billion in the
Registrant's third party mortgage servicing portfolio from a year ago.
Mortgage banking gains of $7.0 million was $5.5 million more than the year
ago quarter and includes approximately $3.3 million of gains on sales of
mortgage loans which had been included as a component of total loans. It
also includes approximately $2.0 million of gains on sales of servicing rights.
Service charges on deposits increased 13.3% or $1.2 million and trust income
increased 2.8%.
Total net securities gains for the third quarter of 1995 were $28,000 compared
to gains of $155,000 for the same period of 1994.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (CONTINUED)
Excluding nonrecurring items, total operating expenses for the third quarter
of 1995 increased 6.4% over the same period of 1994. Salaries, wages and
employee benefits increased 8.2% for the third quarter of 1995 over the third
quarter of 1994. The primary reason for this increase is the Registrants
increased use of incentive compensation and increased pension expense. The
number of full-time equivalent employees decreased by 117 (2.2%) over a
year-ago to 5,106 at September 30, 1995. During the third quarter of 1995
compared to the same period a year ago, equipment and net occupancy expenses
increased 3.6%, interbank credit card transaction expense increased 3.3%, and
other expenses increased 23.8%. The increase in other expenses includes a
$1.1 million loss on indirect auto loans sold and $1.4 million in
amortization of mortgage servicing rights.
During the third quarter, the FDIC decreased premium rates from $.23 per $100
in deposits to $.04, retroactively to June 1, 1995. This action resulted in
the Registrant recording a negative FDIC expense of $256,000 during the third
quarter of 1995. Excluding the portion of refund attributable to the second
quarter of 1995, FDIC insurance expense would have been approximately $1.3
million under the new rate for the third quarter of 1995.
A nonrecurring charge of $5.0 million was recognized during the third
quarter of 1995. This charge is related to a reengineering program aimed at
substantially reducing certain operating costs. The Registrant may recognize
additional charges in the range of $10 million to $15 million in the fourth
quarter of 1995, and expects there will be no further charges related to it's
current reengineering program after 1995. The Registrant anticipates that
reduced personnel costs and other efficiencies will result in pre-tax
benefits of up to $15 million in 1996, and that benefits should exceed $25
million annually beginning in 1997.
BALANCE SHEET CHANGES
Total loans increased 4.4% or $301 million from year-end 1994. For the nine
months ended September 30, 1995, commercial loans increased $453 million or
13.0% and consumer loans, excluding the effect of loan sales, increased $286
million or 12.2%. As a result of increased loan demand, securities
available-for-sale (excluding valuation adjustment) and securities
held-to-maturity, decreased $295 million since year-end 1994. Other
interest-earning assets increased $170 million since year-end 1994. Total
interest-earning assets (excluding securities available-for-sale valuation
adjustment) increased 2.2% or $236 million from December 31, 1994.
The Registrant sold approximately $539.7 million of mortgages held-for-sale
and $315 million of mortgage loans during the quarter (see "Liquidity and
Capital Resources"). The Registrant's third-party mortgage servicing
portfolio grew $1.6 billion or 35% from year end 1994, to a balance of $6.3
billion at September 30, 1995. The increase is primarily a result of a $981
million mortgage servicing portfolio purchased in the second quarter of 1995.
Total deposits decreased $86 million from year-end 1994. Non-interest bearing
deposits decreased 2.5% or $37 million and interest-bearing deposits decreased
.6% or $49 million. Short-term borrowed funds increased 23.9% or $242 million
from December 31, 1994.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (CONTINUED)
LIQUIDITY AND CAPITAL RESOURCES
The maintenance of an adequate level of liquidity is necessary to ensure that
sufficient funds are available to meet customers' loan demand and deposit
withdrawals. The banking subsidiaries' liquidity sources consist of
securities available-for-sale, maturing loans and securities held-to-maturity,
and other short-term investments. Liquidity has also been obtained through
liabilities such as customer-related core deposits, funds borrowed,
certificates of deposit and public funds deposits.
During the third quarter of 1995, in addition to its normal recurring sales
of mortgages held-for-sale, the Registrant sold $315 million of residential
mortgage loans that had been classified as a component of total loans on the
accompanying balance sheets. As a result of these sales, the Registrant
realized a gain of approximately $3.3 million. This transaction was the
result of the Registrant's ongoing management of its liquidity. In addition,
the Registrant sold $250 million of consumer loans (collateralized by
automobiles.) This transaction was effected through a sale and
securitization, with the retention of servicing rights by Old Kent.
Management expects that this transaction will not have a material impact on
the Corporation's financial condition or results of operations. In November
1995, the Registrant expects to issue $100 million in long-term subordinated
debt for general corporate purposes.
At September 30, 1995, shareholders' equity was $999 million, compared to
$896 million at December 31, 1994, an increase of $103 million, or 11.5%.
Total equity at September 30, 1995 was reduced by an after-tax unrealized
loss of $0.8 million on securities available-for-sale. Shareholders' equity
as a percentage of total assets as of September 30, 1995 was 8.47%. The
following table represents the Registrant's consolidated regulatory capital
position as of September 30, 1995.
Regulatory capital at September 30, 1995
(in millions) Tier 1 Total
Leverage Risk-Based Risk-Based
Ratio Capital Capital
Actual capital $895.8 $898.3 $1,003.3
Required regulatory minimum capital 350.8 335.8 671.7
Capital in excess of requirements $545.0 $562.5 $ 331.6
Actual ratio 7.66% 10.79% 12.05%
Regulatory Minimum Ratio 3.00% 4.00% 8.00%
Ratio considered "well capitalized"
by regulatory agencies 5.00% 6.00% 10.00%
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (CONTINUED)
The changes in book value per common share are shown in the table below.
Book value per common share, December 31, 1994 $20.75
Dilution effect of 5% stock dividend paid in August, 1995 (.99)
Book value per share, adjusted for 5% stock dividend 19.76
Net income per share for the nine months
ended September 30, 1995 2.42
Dividends per share (.90)
Net change in valuation adjustment of securities
available-for-sale .89
Other changes (.07)
Book value per share, September 30, 1995 $22.07
PART II OTHER INFORMATION
Item 1. Legal Proceedings.
This item is inapplicable or is omitted pursuant to the
instructions to Part II.
Item 2. Changes in Securities.
This item is inapplicable or is omitted pursuant to the
instructions to Part II.
Item 3. Defaults on Senior Securities.
This item is inapplicable or is omitted pursuant to the
instructions to Part II.
Item 4. Submission of Matters to a Vote of Security Holders.
This item is inapplicable or is omitted pursuant to the
instructions to Part II.
Item 5. Other Information.
This item is inapplicable or is omitted pursuant to the
instructions to Part II.
Item 6. Exhibits and Reports on Form 8-K.
a.) The following exhibits are filed as part of this report:
Exhibit 10 - (a) Executive Stock Option Plan of 1986
(as amended)
Exhibit 11 - Statement Re: Computation of Earnings Per Share
Exhibit 27 - Financial Data Schedules
b.) Reports on Form 8-K
No Form 8-K was filed during the second quarter of 1995.
EXHIBIT INDEX
Exhibit
10 Executive Stock Option Plan of 1986, as amended
11 Statement of Earnings per Share
27 Financial Data Schedule
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
OLD KENT FINANCIAL CORPORATION
Date: November 13, 1995 David J. Wagner
Chairman of the Board, President and
Chief Executive Officer
Date: November 13, 1995 Richard W. Wroten
Executive Vice President and
Chief Financial Officer