EXHIBIT 99.4
The statistical information on the following pages further describes
certain aspects of the business of Old Kent. Additional statistical
information describing the business of Old Kent appears in the following
sections of set forth in Exhibit 99.3 ("Financial Review"), the Selected
Financial Data set forth in Exhibit 99.2 ("Selected Financial Data"), and
the financial statements and notes set forth in Exhibit 99.1 ("Financial
Statements"):
PAGES
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FINANCIAL REVIEW (EXHIBIT 99.3)
Net Interest Income 6
Average Consolidated Balance Sheets 8
Loan Portfolio 9
Provision for Credit Losses 10
Nonperforming Assets 12
SELECTED FINANCIAL DATA (EXHIBIT 99.2)
Dividend payout ratio
Return on average total equity
Return on average assets
Average equity to average assets
FINANCIAL STATEMENTS (EXHIBIT 99.1)
Note 4. Securities Available-for-Sale 12
Note 5. Securities Held-to-Maturity 13
Note 6. Loans and Nonperforming Assets 14
Note 17. Reportable Operating Segments 24
INVESTMENT PORTFOLIO
The following table shows, by class of maturities as of December 31, 1999,
the amounts and weighted average yields of securities available-for-sale and
securities held-to-maturity on the basis of amortized cost:
MATURING
---------------------------------------------------------------------------
AFTER ONE BUT AFTER FIVE BUT
WITHIN ONE YEAR WITHIN FIVE YEARS WITHIN TEN YEARS AFTER TEN YEARS
----------------- ------------------- ------------------ -----------------
AMOUNT YIELD AMOUNT YIELD AMOUNT YIELD AMOUNT YIELD
------ ----- ------ ----- ------ ----- ------ -----
(Dollars in Thousands)
U.S. Treasury and other
U.S. government
agencies
and corporations $ 90,679 5.46% $ 462,844 5.45% $ 194,281 6.72% $ 54,590 6.73%
States and other
political subdivisions 63,052 5.72 190,861 5.46 187,036 5.03 277,421 4.75
Other Securities 1,522 5.83 54,127 5.66 13,717 6.44 153,863 7.46
--------- ----- ---------- ------ ---------- ------ --------- -----
Total $ 155,253 5.57% $ 707,832 5.47% $ 395,034 5.91% $ 485,874 5.83%
========= ===== ========== ====== ========== ====== ========= =====
- ----------------
(1) The effective yields are weighted for the scheduled maturity of each
security.
(2) Collateralized mortgage obligations and mortgage-backed securities of
$2,200,463, having a weighted average yield of 6.29% at December 31,
1999, are not included in the table shown above.
(3) Weighted average interest rates have been computed on a fully taxable
equivalent basis. The rates shown on securities issued by states and
political subdivisions have been restated, assuming a 35% tax rate. The
amount of the adjustment, due to restating the rates, is as follows:
TAX- RATE OF TAXABLE
EXEMPT EQUIVALENTS
RATE ADJUSTMENT BASIS
------ ---------- ---------------
Under 1 Year 5.72% 3.08% 8.80%
1 to 5 Years 5.46 2.94 8.40
5 to 10 Years 5.03 2.71 7.74
Over 10 Years 4.75 2.56 7.31
---- ---- ----
Total 5.08% 2.74% 7.82%
==== ==== ====
(4) The aggregate book value of securities of no single issuer except the
U.S. Government exceeds 10% of Old Kent's consolidated shareholders'
equity.
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INVESTMENT PORTFOLIO -- CONTINUED
The table below identifies the critical characteristics of Old Kent's three
classes of mortgage-backed related securities for December 31, 1999 and 1998.
WEIGHTED ESTIMATED
AMORTIZED AVERAGE AVERAGE
COST YIELD LIFE*
---------- -------- ---------
(IN THOUSANDS)
December 31, 1999
Collateralized mortgage obligations:
U.S. Government issued $1,082,333 6.17% 3.7
Privately issued 430,251 6.43 3.6
Mortgage-backed pass-through securities 687,879 6.40 7.3
---------- ---- ---
Total $2,200,463 6.29% 4.8
========== ==== ===
December 31, 1998
Collateralized mortgage obligations:
U.S. Government issued $1,539,224 6.24% 3.5
Privately issued 392,517 6.32 4.1
Mortgage-backed pass-through securities 287,402 6.67 4.7
---------- ---- ---
Total $2,219,143 6.31% 3.8
========== ==== ===
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* Estimated average life is the amortization period, in years, used by Old
Kent in the preparation of its financial statement.
LOAN PORTFOLIO
The following table shows the maturity of loans (excluding residential
mortgages of 1-4 family residences, consumer loans, credit card loans, and
lease financing) outstanding at December 31, 1999. Also provided are the
amounts due after one year classified according to their sensitivity to
changes in interest rates.
DUE IN ONE DUE IN ONE DUE AFTER
YEAR OR LESS TO FIVE YEARS FIVE YEARS
------------ ------------- ----------
(IN THOUSANDS OF DOLLARS)
Commercial, financial and agricultural $2,037,763 $1,448,285 $256,186
Real estate-commercial(1) 562,922 1,966,802 458,862
Real estate-construction 461,633 473,204 269,454
---------- ---------- --------
Total $3,062,318 $3,888,291 $984,502
========== ========== ========
Loans due after one year:
With fixed rates $2,682,921 $767,912
With floating rates 1,205,370 216,590
---------- --------
Total $3,888,291 $984,502
========== ========
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(1) Includes real estate commercial loans secured by 1-4 family residences.
Old Kent had no significant foreign outstandings at the end of any of the
last three years.
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DEPOSITS
The daily average amounts of deposits and rates paid on such deposits for the
periods indicated are:
YEARS ENDED DECEMBER 31,
----------------------------------------------------
1999 1998 1997
---------------- ---------------- ----------------
AMOUNT RATE AMOUNT RATE AMOUNT RATE
------ ---- ------ ---- ------ ----
(Dollars in Thousands)
In Domestic Offices:
Non-interest-bearing
demand deposits $ 2,362,813 $ 2,318,006 $ 2,098,872
Savings deposits 6,210,846 2.88% 5,582,425 2.90% 4,653,588 2.72%
Time deposits 7,333,551 4.96 7,689,988 5.37 8,587,638 5.44
In Foreign Office:
Time deposits 75,232 5.11 37,384 5.37 38,792 5.45
----------- ----------- -----------
Total $15,982,442 $15,627,803 $15,378,890
=========== =========== ===========
The time remaining until maturity of time deposits of $100,000 or more issued
by domestic offices (all of which are time certificates of deposit) at December
31, 1999, is as follows:
TIME CERTIFICATES
OF DEPOSIT
----------------------
(DOLLARS IN THOUSANDS)
3 months or less $1,279,319
Over 3 through 6 months 647,431
Over 6 through 12 months 347,538
Over 12 months 185,009
----------
Total $2,459,297
==========
Time deposits in the foreign office are all in amounts of $100,000 or more.
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OTHER BORROWED FUNDS
Other borrowed funds consist of federal funds purchased, securities sold
under agreements to repurchase, bank notes, treasury tax, loan and demand
notes. The following amounts and rates applied during the last three years:
FEDERAL FUNDS PURCHASED AND
SECURITIES SOLD UNDER
AGREEMENTS TO REPURCHASE: BANK NOTES
-------------------------------- ------------------------------
1999 1998 1997 1999 1998 1997
---- ---- ---- ---- ---- ----
(DOLLARS IN THOUSANDS) (DOLLARS IN THOUSANDS)
Amounts outstanding at
year-end $1,003,760 $1,284,075 $938,952 $500,000 $ 250,000 $960,500
Average amount
outstanding during year $1,017,867 $1,051,951 $827,973 $409,997 $ 722,819 $590,886
Maximum amount
outstanding any month-
end $1,401,472 $1,338,607 $938,952 $500,000 $1,010,500 $960,500
Weighted average
interest rate at year-
end(1) 4.72% 4.98% 5.80% 5.78% 4.59% 5.88%
Weighted average
interest rate during
year(1) 4.39% 4.83% 4.93% 5.26% 5.70% 6.04%
FEDERAL HOME LOAN AGGREGATE OTHER
BANK ADVANCES BORROWED FUNDS
---------------------------- ----------------------------------
1999 1998 1997 1999 1998 1997
---- ---- ---- ---- ---- ----
(DOLLARS IN THOUSANDS) (DOLLARS IN THOUSANDS)
Amounts outstanding at
year-end $1,102,420 $849,085 $447,443 $2,824,034 $2,548,454 $2,597,514
Average amount
outstanding during year $ 964,542 $516,768 $373,060 $2,572,617 $2,510,707 $2,004,524
Maximum amount
outstanding any month-
end $1,112,765 $849,085 $447,443 $2,824,034 $2,900,197 $2,597,514
Weighted average
interest rate at year-
end(1) 5.97% 5.43% 6.06% 5.10% 4.99% 5.30%
Weighted average
interest rate during
year(1) 5.69% 5.83% 5.97% 5.00% 5.41% 5.63%
- --------
(1) The weighted average interest rates are derived by dividing the interest
expense for the period by the daily average balance during the period.
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