Exhibit 99.3
FIVE YEAR FINANCIAL SUMMARY AND SELECTED RATIOS
(Dollars in thousands, except per share data)
As of/For the Years Ended December 31,
---------------------------------------------------------------
1999 1998 1997 1996 1995
----------- ----------- ----------- ----------- -----------
Summary of Operations
Interest income........ $ 3,775,553 $ 3,492,813 $ 3,163,890 $ 2,858,370 $ 2,681,366
Interest expense....... 1,842,605 1,733,108 1,540,561 1,371,882 1,325,225
----------- ----------- ----------- ----------- -----------
Net interest income.... 1,932,948 1,759,705 1,623,329 1,486,488 1,356,141
Provision for loan and
lease losses.......... 114,433 114,729 123,096 77,919 54,694
----------- ----------- ----------- ----------- -----------
Net interest income
after provision for
loan and lease
losses................ 1,818,515 1,644,976 1,500,233 1,408,569 1,301,447
Noninterest income..... 875,479 690,427 588,347 445,134 346,430
Noninterest expense.... 1,647,537 1,376,915 1,326,657 1,159,092 1,119,710
----------- ----------- ----------- ----------- -----------
Income before income
taxes................. 1,046,457 958,488 761,923 694,611 528,167
Provision for income
taxes................. 340,883 306,744 260,197 227,302 173,453
----------- ----------- ----------- ----------- -----------
Net income............. $ 705,574 $ 651,744 $ 501,726 $ 467,309 $ 354,714
=========== =========== =========== =========== ===========
Per Common Share
Average shares
outstanding (000's):
Basic.................. 395,871 390,777 387,667 387,598 386,109
Diluted................ 402,553 398,608 394,996 396,127 400,369
Basic earnings per
share................. $ 1.78 $ 1.67 $ 1.29 $ 1.20 $ 0.90
=========== =========== =========== =========== ===========
Diluted earnings per
share................. $ 1.75 $ 1.64 $ 1.27 $ 1.18 $ 0.89
=========== =========== =========== =========== ===========
Cash dividends paid.... $ .75 $ .66 $ .58 $ .50 $ .43
Shareholders' equity... 10.19 10.17 9.12 8.62 8.34
Average Balances
Securities, at
amortized cost........ $13,217,708 $11,548,592 $10,567,862 $ 9,731,073 $ 9,311,950
Loans and leases *..... 33,904,439 30,543,475 27,100,788 24,438,883 22,659,115
Other assets........... 3,742,090 3,389,861 2,715,990 2,522,365 2,417,805
----------- ----------- ----------- ----------- -----------
Total assets.......... $50,864,237 $45,481,928 $40,384,640 $36,692,321 $34,388,870
=========== =========== =========== =========== ===========
Deposits............... $33,726,798 $31,193,327 $29,243,442 $27,728,536 $25,665,570
Other liabilities...... 6,976,907 5,898,139 4,469,812 3,583,192 4,375,395
Long-term debt......... 6,116,548 4,647,116 3,303,968 2,232,005 1,398,506
Common shareholders'
equity................ 4,043,984 3,743,346 3,363,646 3,125,865 2,869,490
Preferred shareholders'
equity................ -- -- 3,772 22,723 79,909
----------- ----------- ----------- ----------- -----------
Total liabilities and
shareholders'
equity............... $50,864,237 $45,481,928 $40,384,640 $36,692,321 $34,388,870
=========== =========== =========== =========== ===========
Period End Balances
Total assets........... $53,000,836 $48,190,494 $43,606,211 $38,612,527 $35,810,281
Deposits............... 34,147,643 33,214,094 30,601,384 28,731,109 26,966,326
Long-term debt......... 6,073,428 5,499,873 4,183,462 2,611,973 1,701,433
Shareholders' equity... 4,063,619 4,030,929 3,546,832 3,278,515 3,155,310
Selected Ratios
Rate of return on:
Average total assets... 1.39% 1.43% 1.24% 1.27% 1.03%
Average common
shareholders' equity.. 17.45 17.41 14.91 14.92 12.15
Dividend payout........ 42.13 39.52 44.96 41.67 47.78
Average equity to
average assets........ 7.95 8.23 8.34 8.58 8.58
- --------
* Loans and leases are net of unearned income and include loans held for sale.
NM Not meaningful.
47
Table 1
Selected Financial Data of Significant Banking & Thrift Subsidiaries
As of/For the Years Ended December 31, 1999, 1998 and 1997
One Valley
One Valley - Central
BB&T-NC BB&T-SC BB&T-VA Premier - National Va.
----------- ---------- ---------- ---------- ---------- ----------
(Dollars in thousands)
1999
- --------------------------------------------------------------------------------------------
Total assets............ $31,396,668 $4,842,462 $5,098,872 $1,542,443 $2,499,477 $1,218,907
Securities.............. 8,139,270 477,705 1,308,673 160,119 574,153 331,880
Loans and leases, net of
unearned income*....... 20,604,518 3,698,046 3,294,038 802,712 1,518,392 793,838
Deposits................ 19,068,875 3,686,484 3,462,041 1,217,053 1,389,653 901,062
Shareholder's equity.... 2,253,961 364,060 471,938 147,098 154,423 128,916
Net interest income..... 1,027,813 216,781 188,522 63,852 75,914 40,054
Provision for loan and
lease losses........... 52,781 15,491 6,689 8,824 6,776 455
Noninterest income...... 586,246 68,473 51,170 8,926 48,021 6,017
Noninterest expense..... 956,414 126,689 145,242 44,050 72,812 29,458
Net income.............. 426,214 91,059 54,457 14,675 29,312 10,614
1998
- --------------------------------------------------------------------------------------------
Total assets............ $28,375,063 $4,641,393 $5,257,737 $ 919,166 $2,136,229 $1,194,908
Securities.............. 7,057,881 783,727 1,177,446 80,423 506,502 380,867
Loans and leases, net of
unearned income*....... 18,879,630 3,266,871 3,321,677 746,185 1,415,722 683,278
Deposits................ 18,934,238 3,702,383 3,496,787 805,853 1,434,102 940,389
Shareholder's equity.... 2,294,145 429,572 612,083 94,776 145,856 137,103
Net interest income..... 951,972 201,132 187,189 45,596 73,573 39,821
Provision for loan and
lease losses........... 52,283 13,455 12,227 480 5,939 1,337
Noninterest income...... 479,326 71,945 52,550 7,972 40,551 5,135
Noninterest expense..... 841,668 119,224 143,515 26,365 65,894 26,364
Net income.............. 380,574 89,653 52,526 17,976 27,890 11,262
1997
- --------------------------------------------------------------------------------------------
Total assets............ $24,523,930 $4,364,982 $5,260,598 $ 366,053 $1,876,021 $ 981,854
Securities.............. 5,835,463 1,020,554 1,469,392 42,177 489,421 406,969
Loans and leases, net of
unearned income*....... 16,660,073 3,052,755 3,274,679 292,194 1,199,527 518,092
Deposits................ 17,356,397 3,401,236 3,507,108 311,328 1,363,028 689,015
Shareholder's equity.... 1,918,190 374,871 574,742 27,365 139,833 119,013
Net interest income..... 910,497 184,341 123,738 14,690 67,897 31,374
Provision for loan and
lease losses........... 60,513 14,109 8,537 350 3,360 535
Noninterest income...... 455,422 70,916 27,008 1,994 33,719 2,760
Noninterest expense..... 861,218 135,018 90,649 10,520 58,709 19,109
Net income.............. 294,059 68,024 34,089 3,692 26,662 8,805
- --------
* Includes loans held for sale.
48
Table 2
Composition of Loan and Lease Portfolio *
December 31,
-----------------------------------------------------------
1999 1998 1997 1996 1995
----------- ----------- ----------- ----------- -----------
(Dollars in thousands)
Loans:
Commercial, financial
and agricultural..... $ 5,382,373 $ 5,055,051 $ 4,602,571 $ 4,013,399 $ 3,502,071
Real estate--
construction and land
development.......... 3,818,396 2,932,284 2,790,483 2,125,963 1,568,065
Real estate--
mortgage............. 20,237,959 18,272,695 16,424,868 14,616,876 13,953,171
Consumer.............. 4,589,510 4,035,015 3,952,321 3,997,544 3,603,052
----------- ----------- ----------- ----------- -----------
Loans held for
investment......... 34,028,238 30,295,045 27,770,243 24,753,782 22,626,359
Loans held for
sale............... 367,243 1,340,420 627,900 303,632 328,971
----------- ----------- ----------- ----------- -----------
Total loans....... 34,395,481 31,635,465 28,398,143 25,057,414 22,955,330
Leases.................. 2,606,002 1,620,326 788,462 576,991 376,152
----------- ----------- ----------- ----------- -----------
Total loans and
leases........... $37,001,483 $33,255,791 $29,186,605 $25,634,405 $23,331,482
=========== =========== =========== =========== ===========
- --------
* Balances include unearned income.
49
Table 3
Selected Loan Maturities and Interest Sensitivity *
December 31, 1999
-------------------------------------
Commercial,
Financial
and Real Estate:
Agricultural Construction Total
------------ ------------- ----------
(Dollars in thousands)
Fixed rate:
1 year or less (2)..................... $ 272,548 $ 570,850 $ 843,398
1-5 years.............................. 1,157,285 307,381 1,464,666
After 5 years.......................... 299,524 -- 299,524
---------- ---------- ----------
Total................................ 1,729,357 878,231 2,607,588
---------- ---------- ----------
Variable rate:
1 year or less (2)..................... 1,912,354 1,999,312 3,911,666
1-5 years.............................. 1,574,450 940,853 2,515,303
After 5 years.......................... 166,212 -- 166,212
---------- ---------- ----------
Total................................ 3,653,016 2,940,165 6,593,181
---------- ---------- ----------
Total loans and leases (1)......... $5,382,373 $3,818,396 $9,200,769
========== ========== ==========
- --------
* Balances include unearned income.
Scheduled repayments are reported in the maturity category in which the
payment is due. Determinations of maturities are based upon contract terms.
BB&T's credit policy does not permit automatic renewals of loans. At the
scheduled maturity date (including balloon payment date), the customer must
request a new loan to replace the matured loan and execute a new note with
rate, terms and conditions negotiated at that time.
(1)The table excludes:
(Dollars in
thousands)
-----------
(i) consumer loans to individuals for household, family
and other personal expenditures...................... $ 4,589,510
(ii) real estate mortgage loans........................... 20,237,959
(iii) loans held for sale.................................. 367,243
(iv) leases............................................... 2,606,002
-----------
$27,800,714
===========
(2)Includes loans due on demand.
50
Table 4
Allocation of Allowance for Loan and Lease Losses by Category
1999 1998 1997 1996 1995
----------------- ----------------- ----------------- ----------------- -----------------
% Loans % Loans % Loans % Loans % Loans
in each in each in each in each in each
Amount category Amount category Amount category Amount category Amount category
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
(Dollars in thousands)
Balance at end of period
applicable to:
Commercial, financial
and agricultural...... $ 89,744 15% $ 80,508 16% $ 80,869 16% $ 82,291 15% $ 80,069 14%
Real estate:
Construction and land
development........... 42,714 55 35,645 55 26,902 56 19,410 55 23,838 58
Mortgage............... 162,673 12 132,420 12 126,665 14 111,087 15 108,559 14
-------- --- -------- --- -------- --- -------- --- -------- ---
Real estate--total..... 205,387 67 168,065 67 153,567 70 130,497 70 132,397 72
-------- --- -------- --- -------- --- -------- --- -------- ---
Consumer............... 56,836 12 60,510 13 54,662 13 48,101 15 39,876 13
Leases................. 21,726 6 12,737 4 8,021 2 5,207 1 3,325 1
Unallocated............ 103,603 -- 120,521 -- 91,748 -- 80,015 -- 64,932 --
-------- --- -------- --- -------- --- -------- --- -------- ---
Total................. $477,296 100% $442,341 100% $388,867 100% $346,111 100% $320,599 100%
======== === ======== === ======== === ======== === ======== ===
51
Table 5
Analysis of Allowance for Loan and Lease Losses
December 31,
---------------------------------------------------------------
1999 1998 1997 1996 1995
----------- ----------- ----------- ----------- -----------
(Dollars in thousands)
Balance, beginning of
period................. $ 442,341 $ 388,867 $ 346,111 $ 320,599 $ 306,793
----------- ----------- ----------- ----------- -----------
Charge-offs:
Commercial, financial
and agricultural...... (29,147) (18,765) (24,094) (16,793) (15,480)
Real estate............ (17,192) (13,831) (16,226) (13,306) (15,005)
Consumer............... (75,146) (80,989) (82,495) (59,862) (39,035)
Lease receivables...... (993) (1,167) (671) (768) (614)
----------- ----------- ----------- ----------- -----------
Total charge-offs.... (122,478) (114,752) (123,486) (90,729) (70,134)
----------- ----------- ----------- ----------- -----------
Recoveries:
Commercial, financial
and agricultural...... 11,994 9,269 8,138 10,454 8,916
Real estate............ 4,146 4,153 5,882 7,171 4,424
Consumer............... 16,056 14,499 11,455 10,868 11,178
Lease receivables...... 107 425 232 136 395
----------- ----------- ----------- ----------- -----------
Total recoveries..... 32,303 28,346 25,707 28,629 24,913
----------- ----------- ----------- ----------- -----------
Net charge-offs........ (90,175) (86,406) (97,779) (62,100) (45,221)
----------- ----------- ----------- ----------- -----------
Provision charged to
expense............... 114,433 114,729 123,096 77,919 54,694
----------- ----------- ----------- ----------- -----------
Allowance of loans
acquired in purchase
transactions.......... 10,392 25,087 17,439 9,693 4,333
Reconciliation of
fiscal year of merged
companies to calender
year.................. 305 64 -- -- --
----------- ----------- ----------- ----------- -----------
Balance, end of period.. $ 477,296 $ 442,341 $ 388,867 $ 346,111 $ 320,599
=========== =========== =========== =========== ===========
Average loans and
leases *............... $33,904,439 $30,543,475 $27,100,788 $24,438,883 $22,659,115
Net charge-offs as a
percentage of average
loans and leases....... .27% .28% .36% .25% .20%
=========== =========== =========== =========== ===========
- --------
* Loans and leases are net of unearned income and include loans held for sale.
52
Table 6
Composition of Securities Portfolio
December 31,
-----------------------------------
1999 1998 1997
----------- ----------- -----------
(Dollars in thousands)
Trading Securities (at estimated fair
value):.................................. $ 93,221 $ 60,422 $ 67,878
----------- ----------- -----------
Securities held to maturity (at amortized
cost):
U.S. Treasury, government and agency
obligations.......................... 23,184 59,823 178,016
States and political subdivisions..... 379,822 533,371 531,277
Mortgage-backed securities............ -- 71,663 210,436
Other securities...................... 1,891 8,786 9,405
----------- ----------- -----------
Total securities held to maturity....... 404,897 673,643 929,134
----------- ----------- -----------
Securities available for sale (at
estimated fair value):
U.S. Treasury, government and agency
obligations.......................... 5,588,786 4,924,593 5,765,414
States and political subdivisions..... 615,878 229,343 135,791
Mortgage-backed securities............ 4,257,004 4,605,457 3,748,253
Other securities...................... 1,796,154 1,414,361 559,706
----------- ----------- -----------
Total securities available for sale..... 12,257,822 11,173,754 10,209,164
----------- ----------- -----------
Total securities.......................... $12,755,940 $11,907,819 $11,206,176
=========== =========== ===========
53
Table 7
Scheduled Maturities of Time Deposits $100,000 and Greater
December 31, 1999
(Dollars in thousands)
Maturity Schedule
Less than three months............................................ $1,739,543
Three through six months.......................................... 840,924
Seven through twelve months....................................... 1,019,092
Over twelve months................................................ 831,267
----------
Total........................................................... $4,430,826
==========
54
Table 8
Short-Term Borrowed Funds
The following information summarizes certain pertinent information for the
past three years on short-term borrowed funds:
1999 1998 1997
---------- ---------- ----------
(Dollars in thousands)
Maximum outstanding at any month-end
during the year.......................... $8,101,034 $6,851,348 $4,918,840
Average outstanding during the year....... 6,270,755 5,255,111 3,965,541
Average interest rate during the year..... 4.89% 5.20% 5.28%
Average interest rate at end of year...... 4.28 4.82 5.51
55
Table 9
Capital Adequacy for BB&T Corporation and Principal Banking and Thrift
Subsidiaries
One
One Valley
Regulatory BB&T- BB&T- BB&T- Valley Central
Minimums BB&T NC SC VA Premier National Virginia
---------- ---- ----- ----- ----- ------- -------- --------
Risk-based capital
ratios:
Tier 1 capital(1)..... 4.0% 9.9% 9.8% 9.7% 11.3% 11.6% 10.4% 12.9%
Total risk-based
capital(2)........... 8.0 13.2 10.9 11.0 12.5 12.9 11.7 14.2
Tier 1 leverage
ratio(3)............... 3.0 7.1 6.8 7.7 7.5 9.6 7.0 7.8
- --------
(1) Shareholders' equity less nonqualifying intangible assets; computed as a
ratio of risk- weighted assets, as defined in the risk-based capital
guidelines.
(2) Tier 1 capital plus qualifying loan loss allowance and subordinated debt;
computed as a ratio of risk-weighted assets as defined in the risk-based
capital guidelines.
(3) Tier 1 capital computed as a percentage of fourth quarter average assets
less nonqualifying intangibles.
56
Table 10
Securities
December 31, 1999
-------------------------------
Carrying Value Average Yield(3)
-------------- ----------------
(Dollars in thousands)
U.S. Treasury, government and agency
obligations (1):
Within one year............................. $ 1,176,090 6.42%
One to five years........................... 3,380,495 6.22
Five to ten years........................... 1,684,880 6.47
After ten years............................. 3,627,509 6.46
----------- ----
Total..................................... 9,868,974 6.37
----------- ----
States and political subdivisions:
Within one year............................. 71,372 9.51
One to five years........................... 285,836 8.01
Five to ten years........................... 370,338 7.27
After ten years............................. 268,154 7.51
----------- ----
Total..................................... 995,700 7.70
----------- ----
Other securities:
Within one year............................. 76,434 6.34
One to five years........................... 42,630 6.36
Five to ten years........................... 15,338 7.11
After ten years............................. 342,191 6.54
----------- ----
Total..................................... 476,593 6.51
----------- ----
Securities with no stated maturity............ 1,414,673 5.85
----------- ----
Total securities (2)........................ $12,755,940 6.43%
=========== ====
- --------
(1) Included in U.S. Treasury, government and agency obligations are mortgage-
backed securities totaling $4.3 billion classified as available for sale
and disclosed at estimated fair value. These securities are included in
each of the categories based upon final stated maturity dates. The
original contractual lives of these securities range from five to 30
years; however, a more realistic average maturity would be substantially
shorter because of the monthly return of principal on certain securities.
(2) Includes securities held to maturity of $404.9 million carried at
amortized cost and securities available for sale and trading securities
carried at estimated fair values of $12.3 billion and $93.2 million,
respectively.
(3) Taxable equivalent basis as applied to amortized cost.
57
Table 11
Asset Quality
December 31,
----------------------------
1999 1998 1997
-------- -------- --------
(Dollars in thousands)
Nonaccrual loans and leases*..................... $118,975 $119,138 $128,105
Restructured loans............................... 1,681 3,744 3,141
Foreclosed property.............................. 31,894 37,231 46,773
-------- -------- --------
Nonperforming assets........................... $152,550 $160,113 $178,019
======== ======== ========
Loans 90 days or more past due and still
accruing...................................... $ 59,974 $ 63,316 $ 57,047
======== ======== ========
Asset Quality Ratios:
Nonaccrual and restructured loans and leases as
a percentage of loans and leases.............. .34% .38% .45%
Nonperforming assets as a percentage of:
Total assets................................... .29 .33 .41
Loans and leases plus foreclosed property...... .43 .49 .62
Net charge-offs as a percentage of average
loans and leases.............................. .27 .28 .36
Allowance for losses as a percentage of loans
and leases.................................... 1.33 1.37 1.35
Ratio of allowance for losses to:
Net charge-offs.............................. 5.29x 5.12x 3.98x
Nonaccrual and restructured loans and
leases...................................... 3.96 3.60 2.96
- --------
NOTE: Items referring to loans and leases are net of unearned income and
include loans held for sale.
* Includes $39.1 million, $50.7 million and $58.1 million of impaired
loans at December 31, 1999, 1998 and 1997, respectively. See Note D in
the "Notes to Consolidated Financial Statements."
58
Table 12
FTE Net Interest Income and Rate/Volume Analysis
For the Years Ended December 31, 1999, 1998 and 1997
Average Balances Yield / Rate Income / Expense
----------------------------------- ---------------- --------------------------------
1999 1998 1997 1999 1998 1997 1999 1998 1997
----------- ----------- ----------- ---- ---- ---- ---------- ---------- ----------
(Dollars in thousands)
Assets
Securities (1):
U.S. Treasury,
government and
other (5)....... $12,261,714 $10,899,209 $ 9,956,160 6.49% 6.65% 6.70% $ 795,483 $ 725,280 $ 667,284
States and
political
subdivision..... 955,994 649,383 611,702 7.65 7.99 8.09 73,100 51,888 49,496
----------- ----------- ----------- ---- ---- ---- ---------- ---------- ----------
Total securities
(5)............. 13,217,708 11,548,592 10,567,862 6.57 6.73 6.78 868,583 777,168 716,780
Other earning
assets (2)...... 434,495 438,079 301,010 5.06 5.56 5.97 21,997 24,345 17,958
Loans and
leases, net of
unearned
income(1)(3)(4)(5).. 33,904,439 30,543,475 27,100,788 8.79 9.07 9.21 2,981,635 2,769,855 2,495,684
----------- ----------- ----------- ---- ---- ---- ---------- ---------- ----------
Total earning
assets.......... 47,556,642 42,530,146 37,969,660 8.14 8.40 8.51 3,872,215 3,571,368 3,230,422
----------- ----------- ----------- ---- ---- ---- ---------- ---------- ----------
Non-earning
assets.......... 3,307,595 2,951,782 2,414,980
----------- ----------- -----------
Total assets.... $50,864,237 $45,481,928 $40,384,640
=========== =========== ===========
Liabilities and
Shareholders'
Equity Interest-
bearing
deposits:
Savings and
interest-
checking........ $ 3,205,315 $ 3,519,414 $ 3,952,692 1.90 2.13 2.10 60,897 75,056 82,929
Money rate
savings......... 8,795,744 7,123,108 5,698,302 2.98 3.13 3.21 262,344 222,767 182,922
Other time
deposits........ 17,044,678 16,302,152 15,808,238 5.15 5.48 5.50 878,226 892,836 870,161
----------- ----------- ----------- ---- ---- ---- ---------- ---------- ----------
Total interest-
bearing
deposits........ 29,045,737 26,944,674 25,459,232 4.14 4.42 4.46 1,201,467 1,190,659 1,136,012
Short-term
borrowed funds.. 6,270,755 5,255,111 3,965,541 4.89 5.20 5.28 306,545 273,223 209,485
Long-term debt.. 6,116,548 4,647,116 3,303,968 5.47 5.79 5.90 334,593 269,226 195,064
----------- ----------- ----------- ---- ---- ---- ---------- ---------- ----------
Total interest-
bearing
liabilities..... 41,433,040 36,846,901 32,728,741 4.45 4.70 4.71 1,842,605 1,733,108 1,540,561
----------- ----------- ----------- ---- ---- ---- ---------- ---------- ----------
Noninterest-
bearing
deposits........ 4,681,061 4,248,653 3,784,210
Other
liabilities..... 706,152 643,028 504,271
Shareholders'
equity.......... 4,043,984 3,743,346 3,367,418
----------- ----------- -----------
Total
liabilities and
shareholders'
equity.......... $50,864,237 $45,481,928 $40,384,640
=========== =========== ===========
Average interest
rate spread..... 3.69 3.70 3.80
Net yield on
earning assets.. 4.27% 4.32% 4.45% $2,029,610 $1,838,260 $1,689,861
---- ---- ---- ---------- ---------- ----------
Taxable
equivalent
adjustment...... $ 96,662 $ 78,555 $ 66,532
========== ========== ==========
1999 v. 1998 1998 v. 1997
------------------------------ -------------------------------
Change due to Change due to
Increase ------------------- Increase --------------------
(Decrease) Rate Volume (Decrease) Rate Volume
---------- --------- --------- ---------- ---------- ---------
Assets
Securities (1):
U.S. Treasury,
government and
other (5)....... $ 70,203 $(18,570) $ 88,773 $ 57,996 $ (4,790) $ 62,786
States and
political
subdivision..... 21,212 (2,321) 23,533 2,392 (625) 3,017
---------- --------- --------- ---------- ---------- ---------
Total securities
(5)............. 91,415 (20,891) 112,306 60,388 (5,415) 65,803
Other earning
assets (2)...... (2,348) (2,150) (198) 6,387 (1,303) 7,690
Loans and
leases, net of
unearned
income(1)(3)(4)(5).. 211,780 (85,779) 297,559 274,171 (38,549) 312,720
---------- --------- --------- ---------- ---------- ---------
Total earning
assets.......... 300,847 (108,820) 409,667 340,946 (45,267) 386,213
---------- --------- --------- ---------- ---------- ---------
Non-earning
assets..........
Total assets....
Liabilities and
Shareholders'
Equity Interest-
bearing
deposits:
Savings and
interest-
checking........ (14,159) (7,789) (6,370) (7,873) 1,348 (9,221)
Money rate
savings......... 39,577 (10,710) 50,287 39,845 (4,824) 44,669
Other time
deposits........ (14,610) (54,230) 39,620 22,675 (4,395) 27,070
---------- --------- --------- ---------- ---------- ---------
Total interest-
bearing
deposits........ 10,808 (72,729) 83,537 54,647 (7,871) 62,518
Short-term
borrowed funds.. 33,322 (17,073) 50,395 63,738 (3,359) 67,097
Long-term debt.. 65,367 (15,727) 81,094 74,162 (3,717) 77,879
---------- --------- --------- ---------- ---------- ---------
Total interest-
bearing
liabilities..... 109,497 (105,529) 215,026 192,547 (14,947) 207,494
---------- --------- --------- ---------- ---------- ---------
Noninterest-
bearing
deposits........
Other
liabilities.....
Shareholders'
equity..........
Total
liabilities and
shareholders'
equity..........
Average interest
rate spread.....
Net yield on
earning assets.. $191,350 $ (3,291) $194,641 $148,399 $ (30,320) $178,719
---------- --------- --------- ---------- ---------- ---------
Taxable
equivalent
adjustment......
- ----
(1) Yields related to securities, loans and leases exempt from income taxes
are stated on a taxable equivalent basis assuming tax rates in effect for
the periods presented.
(2) Includes Federal funds sold and securities purchased under resale
agreements or similar arrangements.
(3) Loan fees, which are not material for any of the periods shown, have been
included for rate calculation purposes.
(4) Nonaccrual loans have been included in the average balances. Only the
interest collected on such loans has been included as income.
(5) Includes assets which were held for sale or available for sale at
amortized cost and trading securities at estimated fair value.
59
Table 13
Noninterest Income
% Change
-------------
Years Ended December 31, 1999 1998
--------------------------- v. v.
1999 1998 1997 1998 1997
-------- -------- -------- ------ -----
(Dollars in thousands)
Service charges on deposits........ $241,904 $215,021 $191,158 12.5% 12.5%
Mortgage banking income............ 163,562 127,122 82,107 28.7 54.8
Trust income....................... 70,079 54,851 47,716 27.8 15.0
Agency insurance commissions....... 79,499 52,186 40,149 52.3 30.0
Other insurance commissions........ 13,991 13,099 15,314 6.8 (14.5)
Securities (losses) gains, net..... (6,149) 10,155 5,932 (160.6) 71.2
Bankcard fees and merchant
discounts......................... 42,883 36,657 28,400 17.0 29.1
Investment banking and brokerage
fees and commissions.............. 128,609 45,723 28,272 181.3 61.7
Other bank service fees and
commissions....................... 70,751 63,855 51,931 6.2 28.0
International income............... 6,120 4,563 3,685 34.1 23.8
Amortization of negative goodwill.. 6,243 6,243 6,180 -- 1.0
Other noninterest income........... 57,987 60,952 87,503 (.4) (33.4)
-------- -------- -------- ------ -----
Total noninterest income......... $875,479 $690,427 $588,347 26.8% 17.4%
======== ======== ======== ====== =====
60
Table 14
Noninterest Expense
% Change
Years Ended December 31, ---------------
-------------------------------- 1999 v. 1998 v.
1999 1998 1997 1998 1997
---------- ---------- ---------- ------- -------
(Dollars in thousands)
Salaries and wages........... $ 683,624 $ 578,696 $ 525,099 18.1% 10.2%
Pension and other employee
benefits.................... 151,264 121,563 131,365 24.4 (7.5)
Net occupancy expense on bank
premises.................... 103,896 89,018 104,177 16.7 (14.6)
Furniture and equipment
expense..................... 141,955 119,297 105,276 19.0 13.3
Federal deposit insurance
premiums.................... 10,531 6,537 8,195 61.1 (20.2)
Foreclosed property expense.. 4,816 2,880 3,944 67.2 (27.0)
Amortization of intangibles
and mortgage servicing
rights...................... 81,699 61,523 31,402 32.8 95.9
Software..................... 19,299 11,610 15,541 66.2 (25.3)
Telephone.................... 32,487 27,162 24,463 19.6 11.0
Donations.................... 14,526 7,828 8,332 85.6 (6.0)
Advertising and public
relations................... 32,057 34,751 36,266 (7.8) (4.2)
Travel and transportation.... 16,526 12,640 10,668 30.7 18.5
Professional services........ 78,937 69,928 67,894 12.9 3.0
Supplies..................... 26,563 25,111 23,104 5.8 8.7
Loan and lease expense....... 38,137 28,657 44,431 33.1 (35.5)
Deposit related expense...... 19,721 16,109 19,054 22.4 (15.5)
Other noninterest expenses... 191,499 163,605 167,446 17.0 (2.3)
---------- ---------- ---------- ---- -----
Total noninterest expense.. $1,647,537 $1,376,915 $1,326,657 19.7% 3.8%
========== ========== ========== ==== =====
61
Table 15
Interest Rate Sensitivity Gap Analysis
December 31, 1999
Expected Repricing or Maturity Date
--------------------------------------------------------------
Within One to Three to After Five
One Year Three Years Five Years Years Total
----------- ----------- ----------- ---------- -----------
(Dollars in thousands)
Assets
Securities and other
interest-earning
assets*.............. $ 3,134,690 $ 3,068,227 $ 4,270,939 $2,858,357 $13,332,213
Federal funds sold and
securities purchased
under resale
agreements or similar
arrangements......... 432,877 -- -- -- 432,877
Loans and leases**.... 19,260,950 5,890,213 5,970,931 4,634,212 35,756,306
----------- ----------- ----------- ---------- -----------
Total interest-earning
assets................. 22,828,517 8,958,440 10,241,870 7,492,569 49,521,396
----------- ----------- ----------- ---------- -----------
Liabilities
Savings and interest
checking***.......... -- 1,787,287 595,762 595,762 2,978,811
Money rate
savings***........... 4,796,163 4,796,163 -- -- 9,592,326
Other time deposits... 12,717,441 3,051,699 365,782 64,207 16,199,129
Foreign deposits...... 529,401 -- -- -- 529,401
Federal funds
purchased and
securities sold under
repurchase agreements
or similar
arrangements......... 2,944,672 -- -- -- 2,944,672
Long-term debt and
other borrowings..... 6,879,766 649,973 161,938 3,408,952 11,100,629
----------- ----------- ----------- ---------- -----------
Total interest-bearing
liabilities............ 27,867,443 10,285,122 1,123,482 4,068,921 $43,344,968
----------- ----------- ----------- ---------- ===========
Asset-liability gap..... (5,038,926) (1,326,682) 9,118,388 3,423,648
----------- ----------- ----------- ----------
Derivatives affecting
interest rate
sensitivity:
Pay fixed interest
rate swaps........... 476,146 (4,361) (441,036) (30,749)
Receive fixed interest
rate swaps........... (560,000) -- 270,000 290,000
Caps, floors and
collars.............. (47,250) -- 47,250 --
----------- ----------- ----------- ----------
(131,104) (4,361) (123,786) 259,251
----------- ----------- ----------- ----------
Interest rate
sensitivity gap........ $(5,170,030) $(1,331,043) $ 8,994,602 $3,682,899
=========== =========== =========== ==========
Cumulative interest rate
sensitivity gap........ $(5,170,030) $(6,501,073) $ 2,493,529 $6,176,428
=========== =========== =========== ==========
- --------
* Securities based on amortized cost.
** Loans and leases include loans held for sale and are net of unearned
income.
*** Projected runoff of deposits that do not have a contractual maturity date
was computed based upon decay rate assumptions developed by bank
regulators to assist banks in addressing FDICIA rule 305.
62
Table 16
Capital--Components and Ratios
December 31,
----------------------
1999 1998
---------- ----------
(Dollars in
thousands)
Tier 1 capital.......................................... $3,679,736 $3,536,006
Tier 2 capital.......................................... 1,221,886 1,226,951
---------- ----------
Total regulatory capital................................ $4,901,622 $4,762,957
========== ==========
Risk-based capital ratios:
Tier 1 capital........................................ 9.9% 11.1%
Total regulatory capital.............................. 13.2 14.9
Tier 1 leverage ratio................................... 7.1 7.5
63
Table 17
Quarterly Common Stock Summary
1999 1998
------------------------------ ------------------------------
Closing Sales Prices Closing Sales Prices
-------------------- Dividends -------------------- Dividends
High Low Last Paid High Low Last Paid
------ ------ ------ --------- ------ ------ ------ ---------
Quarter Ended:
March 31........ $40.44 $34.94 $36.19 $.175 $33.84 $29.03 $33.84 $.155
June 30......... 40.25 33.81 36.69 .175 34.06 32.03 33.81 .155
September 30.... 36.63 30.50 32.38 .20 36.03 28.00 29.94 .175
December 31..... 36.94 27.31 27.38 .20 40.63 27.31 40.31 .175
----- -----
Year............ $40.44 $27.31 $27.38 $ .75 $40.63 $27.31 $40.31 $ .66
===== =====
64
Table 18
Quarterly Financial Summary--Unaudited
1999 1998
-------------------------------------------------- -----------------------------------------------
Fourth Third Second First Fourth Third Second First
Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
(Dollars in thousands, except per share data)
Consolidated Summary of
Operations:
Net interest income
FTE.................. $ 527,314 $ 517,565 $ 505,242 $ 479,489 $ 470,316 $ 459,299 $ 465,903 $ 442,742
FTE adjustment........ 24,729 25,620 24,817 21,496 21,258 19,566 19,157 18,574
Provision for loan and
lease losses......... 40,032 24,352 26,078 23,971 28,729 26,012 30,933 29,055
Securities (losses)
gains, net........... (1,969) (1,882) (2,895) 597 2,290 2,951 1,547 3,367
Other noninterest
income............... 225,672 224,494 228,622 202,840 176,090 174,949 170,884 158,349
Noninterest expense... 435,382 433,583 401,785 376,787 357,168 349,459 341,028 329,260
Provision for income
taxes................ 84,083 82,843 89,759 84,198 75,397 76,849 80,149 74,349
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Net income............ $ 166,791 $ 173,779 $ 188,530 $ 176,474 $ 166,144 $ 165,313 $ 167,067 $ 153,220
=========== =========== =========== =========== =========== =========== =========== ===========
Diluted net income per
share................ $ .41 $ .43 $ .47 $ .44 $ .41 $ .42 $ .42 $ .39
=========== =========== =========== =========== =========== =========== =========== ===========
Selected Average
Balances:
Assets................ $52,637,610 $51,666,605 $50,659,620 $48,438,057 $46,999,671 $44,751,958 $45,021,635 $43,985,980
Securities, at
amortized cost....... 13,447,769 13,814,500 13,450,238 12,137,366 11,992,065 11,250,808 11,487,441 11,312,606
Loans and leases *.... 35,347,402 34,133,559 33,414,854 32,690,226 31,474,634 30,310,038 30,216,203 29,340,754
Total earning assets.. 49,182,038 48,447,313 47,342,887 45,200,706 43,965,871 41,876,879 42,170,942 41,166,403
Deposits.............. 34,276,123 33,991,978 33,523,225 33,100,026 32,010,188 30,614,237 30,920,835 30,266,399
Short-term borrowed
funds................ 6,940,113 6,676,203 6,337,899 5,104,085 5,142,493 5,039,161 5,556,845 5,232,419
Long-term debt........ 6,582,262 6,316,154 6,048,556 5,505,189 5,206,440 4,825,067 4,239,944 4,262,363
Total interest-bearing
liabilities.......... 42,951,801 42,256,418 41,264,928 39,208,742 37,865,445 36,224,625 36,515,021 35,793,474
Shareholders' equity.. 4,101,967 3,967,306 4,057,292 4,049,638 4,005,258 3,622,461 3,639,884 3,591,370
- --------
* Loans and leases are net of unearned income and include loans held for sale.
65