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,
---------------------------------------------------------------
2000 1999 1998 1997 1996
----------- ----------- ----------- ----------- -----------
Summary of Operations
Interest income........ $ 4,457,806 $ 3,879,276 $ 3,587,453 $ 3,246,750 $ 2,929,178
Interest expense....... 2,388,158 1,896,475 1,780,961 1,579,999 1,403,531
----------- ----------- ----------- ----------- -----------
Net interest income.... 2,069,648 1,982,801 1,806,492 1,666,751 1,525,647
Provision for loan and
lease losses.......... 137,131 119,441 116,826 124,905 78,602
----------- ----------- ----------- ----------- -----------
Net interest income
after provision for
loan and lease
losses................ 1,932,517 1,863,360 1,689,666 1,541,846 1,447,045
Noninterest income..... 789,222 894,205 707,519 601,326 456,509
Noninterest expense.... 1,813,941 1,695,777 1,421,901 1,364,374 1,196,854
----------- ----------- ----------- ----------- -----------
Income before income
taxes................. 907,798 1,061,788 975,284 778,798 706,700
Provision for income
taxes................. 279,023 345,785 314,114 265,904 231,658
----------- ----------- ----------- ----------- -----------
Net income............. $ 628,775 $ 716,003 $ 661,170 $ 512,894 $ 475,042
=========== =========== =========== =========== ===========
Per Common Share
Average shares
outstanding (000's):
Basic................. 407,562 404,368 399,159 396,002 395,967
Diluted............... 412,686 411,220 407,214 403,506 404,631
Basic earnings per
share................. $ 1.54 $ 1.77 $ 1.66 $ 1.30 $ 1.20
=========== =========== =========== =========== ===========
Diluted earnings per
share................. $ 1.52 $ 1.74 $ 1.62 $ 1.27 $ 1.17
=========== =========== =========== =========== ===========
Cash dividends paid.... $ .86 $ .75 $ .66 $ .58 $ .50
Shareholders' equity... 11.88 10.20 10.21 9.17 8.67
Average Balances
Securities, at
amortized cost........ $13,845,816 $13,659,529 $11,891,953 $10,828,957 $ 9,918,642
Loans and leases *..... 38,535,862 34,760,317 31,322,864 27,799,754 25,039,906
Other assets........... 4,144,574 3,874,498 3,522,728 2,820,272 2,551,984
----------- ----------- ----------- ----------- -----------
Total assets.......... $56,526,252 $52,294,344 $46,737,545 $41,448,983 $37,510,532
=========== =========== =========== =========== ===========
Deposits............... $36,956,468 $34,700,259 $32,073,442 $30,030,550 $28,371,665
Other liabilities...... 7,573,889 7,299,729 6,156,124 4,657,435 3,677,983
Long-term debt......... 7,602,588 6,156,798 4,665,185 3,303,968 2,237,906
Common shareholders'
equity................ 4,393,307 4,137,558 3,842,794 3,453,258 3,200,255
Preferred shareholders'
equity................ -- -- -- 3,772 22,723
----------- ----------- ----------- ----------- -----------
Total liabilities and
shareholders'
equity............... $56,526,252 $52,294,344 $46,737,545 $41,448,983 $37,510,532
=========== =========== =========== =========== ===========
Period End Balances
Total assets........... $60,930,318 $54,505,555 $49,650,214 $44,785,646 $39,614,537
Deposits............... 39,176,398 35,176,502 34,176,893 31,431,710 29,498,020
Long-term debt......... 8,625,074 6,191,946 5,540,123 4,183,462 2,611,973
Shareholders' equity... 4,876,090 4,153,384 4,129,784 3,643,068 3,364,127
Selected Ratios
Rate of return on:
Average total assets.. 1.11% 1.37% 1.41% 1.24% 1.27%
Average common
shareholders'
equity............... 14.31 17.30 17.21 14.85 14.82
Dividend payout........ 55.84 42.37 39.76 44.62 41.67
Average equity to
average assets........ 7.77 7.91 8.22 8.34 8.59
- --------
* Loans and leases are net of unearned income and include loans held for sale.
55
Table 1
Selected Financial Data of Significant Banking & Thrift Subsidiaries
(Dollars in thousands)
As of / For the Year Ended December 31, 2000
--------------------------------------------
BB&T-NC BB&T-SC BB&T-VA FCNB BANK
----------- ---------- ---------- ----------
Total assets..................... $46,991,799 $5,249,100 $6,254,434 $1,574,271
Securities....................... 12,557,947 389,331 564,472 437,865
Loans and leases, net of unearned
income*......................... 30,452,881 4,008,789 4,028,827 992,243
Deposits......................... 28,540,937 3,952,819 4,877,131 1,101,644
Shareholder's equity............. 3,690,959 378,740 595,603 82,930
Net interest income.............. 1,421,898 230,877 235,543 46,961
Provision for loan and lease
losses.......................... 79,612 12,554 12,529 9,700
Noninterest income............... 633,992 55,306 23,704 18,794
Noninterest expense.............. 1,323,816 125,123 178,203 52,550
Net income....................... 458,903 95,175 42,122 2,294
As of / For the Year Ended December 31, 1999
--------------------------------------------
BB&T-NC BB&T-SC BB&T-VA FCNB BANK
----------- ---------- ---------- ----------
Total assets..................... $41,060,416 $4,842,462 $6,550,666 $1,486,470
Securities....................... 10,196,460 477,705 1,681,540 426,106
Loans and leases, net of unearned
income*......................... 26,852,336 3,698,046 4,265,276 903,810
Deposits......................... 25,765,790 3,686,484 4,563,833 1,036,045
Shareholder's equity............. 3,053,222 364,060 617,758 103,359
Net interest income.............. 1,349,554 216,781 237,715 52,607
Provision for loan and lease
losses.......................... 75,796 15,491 7,376 5,008
Noninterest income............... 700,251 68,473 59,324 17,944
Noninterest expense.............. 1,228,596 126,689 180,430 47,997
Net income....................... 519,577 91,059 68,756 12,067
As of / For the Year Ended December 31, 1998
--------------------------------------------
BB&T-NC BB&T-SC BB&T-VA FCNB BANK
----------- ---------- ---------- ----------
Total assets..................... $36,404,453 $4,641,393 $6,669,554 $1,442,254
Securities....................... 9,067,377 783,727 1,607,902 451,767
Loans and leases, net of unearned
income*......................... 24,143,314 3,266,871 4,159,735 823,295
Deposits......................... 25,131,437 3,702,383 4,636,337 973,688
Shareholder's equity............. 2,932,664 429,572 765,964 108,911
Net interest income.............. 1,255,010 201,132 236,198 47,682
Provision for loan and lease
losses.......................... 66,652 13,455 13,915 2,097
Noninterest income............... 570,295 71,945 59,549 16,538
Noninterest expense.............. 1,059,878 119,224 176,466 44,593
Net income....................... 489,572 89,653 66,155 9,897
- --------
* Includes loans held for sale.
56
The following table presents BB&T's total loan and lease portfolio based on
the underlying collateral rather than the primary purpose of the loan:
Table 2
Composition of Loan and Lease Portfolio*
December 31,
-----------------------------------------------------------
2000 1999 1998 1997 1996
----------- ----------- ----------- ----------- -----------
(Dollars in thousands)
Commercial, financial
and agricultural....... $ 6,053,750 $ 5,542,420 $ 5,203,046 $ 4,731,878 $ 4,116,294
Lease receivables....... 4,453,598 2,606,002 1,620,326 788,462 576,991
Real estate-construction
and land development... 3,932,726 3,947,389 3,054,729 2,875,980 2,190,122
Real estate-mortgage.... 23,020,980 20,767,336 18,734,183 16,884,169 15,029,300
Consumer................ 5,464,512 4,673,287 4,115,912 4,026,580 4,065,445
----------- ----------- ----------- ----------- -----------
Loans and leases held
for investment....... 42,925,566 37,536,434 32,728,196 29,307,069 25,978,152
Loans held for sale... 846,830 368,121 1,345,656 628,809 306,794
----------- ----------- ----------- ----------- -----------
Total loans and
leases............. $43,772,396 $37,904,555 $34,073,852 $29,935,878 $26,284,946
=========== =========== =========== =========== ===========
- --------
* Balances include unearned income.
57
Table 3
Composition of Loan and Lease Portfolio Based on Loan Purpose*
December 31,
-----------------------------------------------------------
2000 1999 1998 1997 1996
----------- ----------- ----------- ----------- -----------
(Dollars in thousands)
Business Loans.......... $19,950,471 $17,172,713 $14,713,171 $14,473,010 $11,357,944
Lease Receivables....... 2,100,965 1,508,396 992,684 616,302 470,456
----------- ----------- ----------- ----------- -----------
Total commercial loans
and leases........... 22,051,436 18,681,109 15,705,855 15,089,312 11,828,400
Sales Finance........... 2,774,902 2,501,086 2,192,217 1,713,383 1,623,579
Revolving Credit........ 844,178 696,384 586,028 555,876 554,767
Direct Retail........... 7,617,139 6,892,787 5,879,150 5,179,498 5,620,225
----------- ----------- ----------- ----------- -----------
Total consumer loans.. 11,236,219 10,090,257 8,657,395 7,448,757 7,798,571
Mortgage Loans.......... 8,006,244 7,887,813 8,985,412 6,887,893 6,452,686
----------- ----------- ----------- ----------- -----------
Total loans and
leases............... $41,293,899 $36,659,179 $33,348,662 $29,425,962 $26,079,657
=========== =========== =========== =========== ===========
- --------
* Loans and leases are net of unearned income and include loans held for sale.
58
Table 4
Selected Loan Maturities and Interest Sensitivity*
December 31, 2000
------------------------------------
Commercial,
Financial
and Real Estate:
Agricultural Construction Total
------------ ------------ ----------
(Dollars in thousands)
Fixed rate:
1 year or less(2)....................... $ 306,543 $ 587,943 $ 894,486
1-5 years............................... 1,301,641 316,584 1,618,225
After 5 years........................... 336,886 -- 336,886
---------- ---------- ----------
Total................................. 1,945,070 904,527 2,849,597
---------- ---------- ----------
Variable rate:
1 year or less(2)....................... 2,150,894 2,059,175 4,210,069
1-5 years............................... 1,770,841 969,024 2,739,865
After 5 years........................... 186,945 -- 186,945
---------- ---------- ----------
Total................................. 4,108,680 3,028,199 7,136,879
---------- ---------- ----------
Total loans and leases(1)........... $6,053,750 $3,932,726 $9,986,476
========== ========== ==========
- --------
* 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.
(Dollars in
thousands)
-----------
(1) The table excludes:
(i) consumer loans to individuals for household, family and
other personal expenditures.............................. $ 5,464,512
(ii) real estate mortgage loans................................. 23,020,980
(iii) loans held for sale........................................ 846,830
(iv) leases..................................................... 4,453,598
-----------
$33,785,920
===========
(2) Includes loans due on demand.
59
Table 5
Allocation of Allowance for Loan and Lease Losses by Category
December 31,
-----------------------------------------------------------------------------------------
2000 1999 1998 1997 1996
----------------- ----------------- ----------------- ----------------- -----------------
% 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)
Business loans and
leases................. $295,918 53% $247,005 51% $212,472 47% $191,337 51% $169,256 45%
-------- --- -------- --- -------- --- -------- --- -------- ---
Direct Retail........... 20,665 18 23,174 19 19,041 18 16,769 18 12,935 22
Sales Finance........... 28,058 7 30,620 7 27,701 6 29,082 6 22,418 6
Revolving Credit........ 25,901 2 26,664 2 25,805 2 20,093 2 13,973 2
-------- --- -------- --- -------- --- -------- --- -------- ---
Total Consumer......... 74,624 27 80,458 28 72,547 26 65,944 26 49,326 30
-------- --- -------- --- -------- --- -------- --- -------- ---
Mortgage................ 2,700 20 2,420 21 3,533 27 2,757 23 2,647 25
Recently Acquired
Subsidiaries*.......... 37,355 -- 21,995 -- 19,775 -- 18,789 -- 17,833 --
Unallocated............. 121,606 -- 135,461 -- 142,251 -- 117,651 -- 113,865 --
-------- --- -------- --- -------- --- -------- --- -------- ---
Total.................. $532,203 100% $487,339 100% $450,578 100% $396,478 100% $352,927 100%
======== === ======== === ======== === ======== === ======== ===
- --------
* Acquired companies that had not been converted to BB&T's operating systems
at December 31, 2000.
60
Table 6
Analysis of Allowance for Loan and Lease Losses
December 31,
---------------------------------------------------------------
2000 1999 1998 1997 1996
----------- ----------- ----------- ----------- -----------
(Dollars in thousands)
Balance, beginning of
period................. $ 487,339 $ 450,578 $ 396,478 $ 352,927 $ 327,701
Charge-offs:
Commercial, financial
and agricultural..... (30,221) (31,766) (19,551) (24,566) (17,762)
Real estate........... (19,743) (17,894) (14,008) (17,027) (13,605)
Consumer.............. (87,682) (75,665) (81,936) (82,851) (60,241)
Lease receivables..... (3,502) (993) (1,167) (671) (768)
----------- ----------- ----------- ----------- -----------
Total charge-offs..... (141,148) (126,318) (116,662) (125,115) (92,376)
----------- ----------- ----------- ----------- -----------
Recoveries:
Commercial, financial
and agricultural..... 11,844 12,312 9,399 8,613 10,524
Real estate........... 3,532 4,325 4,203 5,930 7,220
Consumer.............. 20,259 16,197 14,758 11,547 10,965
Lease receivables..... 312 107 425 232 136
----------- ----------- ----------- ----------- -----------
Total recoveries...... 35,947 32,941 28,785 26,322 28,845
----------- ----------- ----------- ----------- -----------
Net charge-offs........ (105,201) (93,377) (87,877) (98,793) (63,531)
----------- ----------- ----------- ----------- -----------
Provision charged to
expense............... 137,131 119,441 116,826 124,905 78,602
----------- ----------- ----------- ----------- -----------
Allowance of loans
acquired in purchase
transactions.......... 12,934 10,697 25,151 17,439 10,155
----------- ----------- ----------- ----------- -----------
Balance, end of period.. $ 532,203 $ 487,339 $ 450,578 $ 396,478 $ 352,927
=========== =========== =========== =========== ===========
Average loans and leases
*...................... $38,535,862 $34,760,317 $31,322,864 $27,799,754 $25,039,906
Net charge-offs as a
percentage of average
loans and leases....... .27% .27% .28% .36% .25%
=========== =========== =========== =========== ===========
- --------
* Loans and leases are net of unearned income and include loans held for sale.
61
Table 7
Composition of Securities Portfolio
December 31,
-----------------------------------
2000 1999 1998
----------- ----------- -----------
(Dollars in thousands)
Trading Securities (at estimated fair
value): $ 96,719 $ 93,221 $ 60,422
----------- ----------- -----------
Securities held to maturity (at amortized
cost):
U.S. Treasury, government and agency
obligations............................ 33,739 34,184 75,829
States and political subdivisions....... 35,535 384,876 539,041
Mortgage-backed securities.............. -- 5,209 80,032
Other securities........................ -- 1,891 8,786
----------- ----------- -----------
Total securities held to maturity..... 69,274 426,160 703,688
----------- ----------- -----------
Securities available for sale (at
estimated fair value):
U.S. Treasury, government and agency
obligations............................ 8,940,827 5,776,834 5,074,923
States and political subdivisions....... 962,942 620,374 233,398
Mortgage-backed securities.............. 2,760,476 4,390,952 4,783,384
Other securities........................ 1,556,625 1,890,541 1,496,435
----------- ----------- -----------
Total securities available for sale... 14,220,870 12,678,701 11,588,140
----------- ----------- -----------
Total securities.................... $14,386,863 $13,198,082 $12,352,250
=========== =========== ===========
62
Table 8
Scheduled Maturities of Time Deposits $100,000 and Greater
December 31, 2000
----------------------
(Dollars in thousands)
Maturity Schedule
Less than three months................................. $1,564,305
Three through six months............................... 1,064,248
Seven through twelve months............................ 1,195,926
Over twelve months..................................... 1,326,742
----------
Total................................................ $5,151,221
==========
63
Table 9
Short-Term Borrowed Funds
The following information summarizes certain pertinent information for the
past three years on short-term borrowed funds:
2000 1999 1998
---------- ---------- ----------
(Dollars in thousands)
Maximum outstanding at any month-end
during the year.......................... $8,500,544 $8,450,443 $7,214,982
Balance outstanding at end of year........ 7,012,313 8,222,868 5,158,570
Average outstanding during the year....... 6,755,085 6,579,973 5,501,883
Average interest rate during the year..... 6.01% 4.90% 5.21%
Average interest rate at end of year...... 6.11 4.31 4.83
64
Table 10
Capital Adequacy for BB&T Corporation and Principal Banking Subsidiaries
December 31, 2000
Regulatory
Minimums to
Regulatory be Well BB&T- BB&T- BB&T- FCNB
Minimums Capitalized BB&T NC SC VA BANK
---------- ----------- ---- ----- ----- ----- ----
Risk-based capital ratios:
Tier 1 capital(1)....... 4.0% 6.0% 9.4% 9.6% 9.0% 10.2% 7.2%
Total risk-based
capital(2)............. 8.0 10.0 12.0 10.7 10.2 11.4 10.4
Tier 1 leverage ratio(3).. 3.0 5.0 7.1 6.9 7.4 7.4 5.3
- --------
(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.
65
Table 11
Securities
December 31, 2000
--------------------
Carrying Average
Value Yield(3)
----------- --------
(Dollars in
thousands)
U.S. Treasury, government and agency obligations(1):
Within one year.......................................... $ 328,551 6.61%
One to five years........................................ 5,128,737 7.33
Five to ten years........................................ 3,942,930 7.60
After ten years.......................................... 2,334,824 6.98
----------- ----
Total.................................................. 11,735,042 7.33
----------- ----
States and political subdivisions:
Within one year.......................................... 26,773 7.48
One to five years........................................ 165,775 7.69
Five to ten years........................................ 502,216 7.55
After ten years.......................................... 303,713 7.51
----------- ----
Total.................................................. 998,477 7.56
----------- ----
Other securities:
Within one year.......................................... 5,393 6.35
One to five years........................................ 34,921 6.71
Five to ten years........................................ 17,427 7.55
After ten years.......................................... 145,878 7.92
----------- ----
Total.................................................. 203,619 7.64
----------- ----
Securities with no stated maturity......................... 1,449,725 5.81
----------- ----
Total securities(2).................................... $14,386,863 7.20%
=========== ====
- --------
(1) Included in U.S. Treasury, government and agency obligations are mortgage-
backed securities totaling $2.8 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 $69.3 million carried at amortized
cost and securities available for sale and trading securities carried at
estimated fair values of $14.2 billion and $96.7 million, respectively.
(3) Taxable equivalent basis as applied to amortized cost.
66
Table 12
Asset Quality
December 31,
----------------------------
2000 1999 1998
-------- -------- --------
(Dollars in thousands)
Nonaccrual loans and leases(1)................... $156,342 $129,580 $126,966
Restructured loans............................... 492 1,681 3,744
Foreclosed property.............................. 44,364 32,856 39,066
-------- -------- --------
Nonperforming assets........................... $201,198 $164,117 $169,776
======== ======== ========
Loans 90 days or more past due and still
accruing...................................... $ 73,699 $ 60,648 $ 64,901
======== ======== ========
Asset Quality Ratios:
Nonaccrual and restructured loans and leases as
a percentage of loans and leases(2)........... .38% .36% .39%
Nonperforming assets as a percentage of:
Total assets................................. .33 .30 .34
Loans and leases plus foreclosed
property(2)................................. .49 .45 .51
Net charge-offs as a percentage of average
loans and leases(2)........................... .27 .27 .28
Allowance for losses as a percentage of loans
and leases(2)................................. 1.29 1.33 1.36
Ratio of allowance for losses to:
Net charge-offs.............................. 5.06x 5.22x 5.13x
Nonaccrual and restructured loans and
leases...................................... 3.39 3.71 3.45
- --------
(1) Includes $47.3 million, $49.7 million and $58.0 million of impaired loans
at December 31, 2000, 1999 and 1998, respectively. See Note D. in the
"Notes to Consolidated Financial Statements."
(2) Items referring to loans and leases are net of unearned income and include
loans held for sale.
67
Table 13
FTE Net Interest Income and Rate / Volume Analysis
For the Years Ended December 31, 2000, 1999 and 1998
Average Balances Yield / Rate Income / Expense
----------------------------------- ---------------- --------------------------------
2000 1999 1998 2000 1999 1998 2000 1999 1998
----------- ----------- ----------- ---- ---- ---- ---------- ---------- ----------
(Dollars in thousands)
Assets
Securities(1):
U.S. Treasury,
government and
other(5)........... $12,865,423 $12,693,270 $11,234,772 6.95% 6.48% 6.65% $ 893,990 $ 822,250 $ 746,701
States and
political
subdivisions....... 980,393 966,259 657,181 7.47 7.65 8.00 73,259 73,949 52,559
----------- ----------- ----------- ---- ---- ---- ---------- ---------- ----------
Total
securities(5).... 13,845,816 13,659,529 11,891,953 6.99 6.56 6.72 967,249 896,199 799,260
Other earning
assets(2)........... 341,794 461,179 470,057 6.74 5.07 5.56 23,046 23,395 26,147
Loans and leases,
net of unearned
income(1)(3)(4)(5).. 38,535,862 34,760,317 31,322,864 9.34 8.79 9.07 3,597,880 3,056,735 2,840,986
----------- ----------- ----------- ---- ---- ---- ---------- ---------- ----------
Total earning
assets........... 52,723,472 48,881,025 43,684,874 8.70 8.13 8.39 4,588,175 3,976,329 3,666,393
----------- ----------- ----------- ---- ---- ---- ---------- ---------- ----------
Non-earning
assets........... 3,802,780 3,413,319 3,052,671
----------- ----------- -----------
Total assets.... $56,526,252 $52,294,344 $46,737,545
=========== =========== ===========
Liabilities and
Shareholders' Equity
Interest-bearing
deposits:
Savings and
interest-
checking........... $ 2,849,134 $ 3,400,459 $ 3,695,360 1.73 1.93 2.14 49,236 65,540 79,082
Money rate
savings............ 9,988,636 8,968,251 7,263,801 3.64 2.98 3.13 363,945 267,436 227,711
Other time
deposits........... 19,051,187 17,497,903 16,738,435 5.82 5.16 5.48 1,108,468 903,009 917,041
----------- ----------- ----------- ---- ---- ---- ---------- ---------- ----------
Total interest-
bearing
deposits......... 31,888,957 29,866,613 27,697,596 4.77 4.14 4.42 1,521,649 1,235,985 1,223,834
Short-term borrowed
funds............... 6,755,085 6,579,973 5,501,883 6.01 4.90 5.21 405,752 322,519 286,374
Long-term debt...... 7,602,588 6,156,798 4,665,185 6.06 5.49 5.80 460,757 337,971 270,753
----------- ----------- ----------- ---- ---- ---- ---------- ---------- ----------
Total interest-
bearing
liabilities...... 46,246,630 42,603,384 37,864,664 5.16 4.45 4.70 2,388,158 1,896,475 1,780,961
----------- ----------- ----------- ---- ---- ---- ---------- ---------- ----------
Noninterest-bearing
deposits............ 5,067,511 4,833,646 4,375,846
Other liabilities... 818,804 719,756 654,241
Shareholders'
equity.............. 4,393,307 4,137,558 3,842,794
----------- ----------- -----------
Total liabilities
and shareholders'
equity........... $56,526,252 $52,294,344 $46,737,545
=========== =========== ===========
Average interest
rate spread......... 3.53 3.69 3.69
Net yield on earning
assets.............. 4.17% 4.25% 4.32% $2,200,017 $2,079,854 $1,885,432
==== ==== ==== ========== ========== ==========
Taxable equivalent
adjustment.......... $ 130,369 $ 97,053 $ 78,940
========== ========== ==========
2000 v. 1999 1999 v. 1998
------------------------------ -------------------------------
Change due to Change due to
Increase ------------------- Increase --------------------
(Decrease) Rate Volume (Decrease) Rate Volume
---------- --------- --------- ---------- ---------- ---------
Assets
Securities(1):
U.S. Treasury,
government and
other(5)........... $ 71,740 $ 60,461 $ 11,279 $ 75,549 $ (19,332) $ 94,881
States and
political
subdivisions....... (690) (1,762) 1,072 21,390 (2,353) 23,743
---------- --------- --------- ---------- ---------- ---------
Total
securities(5).... 71,050 58,699 12,351 96,939 (21,685) 118,624
Other earning
assets(2)........... (349) 6,585 (6,934) (2,752) (2,266) (486)
Loans and leases,
net of unearned
income(1)(3)(4)(5).. 541,145 196,067 345,078 215,749 (88,595) 304,344
---------- --------- --------- ---------- ---------- ---------
Total earning
assets........... 611,846 261,351 350,495 309,936 (112,546) 422,482
---------- --------- --------- ---------- ---------- ---------
Non-earning
assets...........
Total assets....
Liabilities and
Shareholders' Equity
Interest-bearing
deposits:
Savings and
interest-
checking........... (16,304) (6,349) (9,955) (13,542) (7,510) (6,032)
Money rate
savings............ 96,509 63,792 32,717 39,725 (11,550) 51,275
Other time
deposits........... 205,459 121,105 84,354 (14,032) (54,581) 40,549
---------- --------- --------- ---------- ---------- ---------
Total interest-
bearing
deposits......... 285,664 178,548 107,116 12,151 (73,641) 85,792
Short-term borrowed
funds............... 83,233 74,446 8,787 36,145 (17,448) 53,593
Long-term debt...... 122,786 37,699 85,087 67,218 (15,342) 82,560
---------- --------- --------- ---------- ---------- ---------
Total interest-
bearing
liabilities...... 491,683 290,693 200,990 115,514 (106,431) 221,945
---------- --------- --------- ---------- ---------- ---------
Noninterest-bearing
deposits............
Other liabilities...
Shareholders'
equity..............
Total liabilities
and shareholders'
equity...........
Average interest
rate spread.........
Net yield on earning
assets.............. $120,163 $(29,342) $149,505 $194,422 $ (6,115) $200,537
========== ========= ========= ========== ========== =========
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.
68
Table 14
Noninterest Income
% Change
--------------
Years Ended December 31, 2000 1999
----------------------------- v. v.
2000 1999 1998 1999 1998
--------- -------- -------- ----- ------
(Dollars in thousands)
Service charges on deposits.... $ 269,307 $244,688 $219,638 10.1 % 11.4 %
Mortgage banking income........ 103,365 164,434 127,873 (37.1) 28.6
Trust income................... 76,690 70,490 55,012 8.8 28.1
Agency insurance commissions... 137,737 85,498 57,518 61.1 48.6
Other insurance commissions.... 14,246 13,991 13,099 1.8 6.8
Securities (losses) gains,
net........................... (219,517) (5,223) 11,675 NM (144.7)
Bankcard fees and merchant
discounts..................... 52,668 42,883 36,657 22.8 17.0
Investment banking and
brokerage fees and
commissions................... 162,498 129,248 46,029 25.7 180.8
Other bank service fees and
commissions................... 92,561 73,153 63,855 26.5 14.6
International income........... 7,337 6,120 4,563 19.9 34.1
Amortization of negative
goodwill...................... 6,243 6,243 6,243 -- --
Other noninterest income....... 86,087 62,680 65,357 37.3 (4.1)
--------- -------- -------- ----- ------
Total noninterest income..... $ 789,222 $894,205 $707,519 (11.7)% 26.4 %
========= ======== ======== ===== ======
- --------
NM -- not meaningful.
69
Table 15
Noninterest Expense
% Change
----------------
Years Ended December 31,
-------------------------------- 2000 v. 1999 v.
2000 1999 1998 1999 1998
---------- ---------- ---------- ------- -------
(Dollars in thousands)
Salaries and wages.......... $ 781,797 $ 705,403 $ 597,082 10.8 % 18.1 %
Pension and other employee
benefits................... 161,801 155,088 126,730 4.3 22.4
Net occupancy expense on
bank premises.............. 120,812 109,557 93,913 10.3 16.7
Furniture and equipment
expense.................... 153,264 146,146 122,976 4.9 18.8
Federal deposit insurance
premiums................... 11,090 10,918 7,227 1.6 51.1
Foreclosed property
expense.................... 5,230 4,974 3,130 5.1 58.9
Amortization of intangibles
and mortgage servicing
rights..................... 80,850 82,185 61,935 (1.6) 32.7
Software.................... 21,247 19,299 11,610 10.1 66.2
Telephone................... 41,500 33,522 27,860 23.8 20.3
Donations................... 12,995 14,618 7,891 (11.1) 85.2
Advertising and public
relations.................. 33,841 34,110 36,569 (0.8) (6.7)
Travel and transportation... 21,579 16,858 12,949 28.0 30.2
Professional services....... 68,673 81,698 73,080 (15.9) 11.8
Supplies.................... 30,988 28,429 26,897 9.0 5.7
Loan and lease expense...... 38,467 38,862 28,904 (1.0) 34.5
Deposit related expense..... 19,870 19,721 16,109 0.8 22.4
Other noninterest expenses.. 209,937 194,389 167,039 8.0 16.4
---------- ---------- ---------- ----- ----
Total noninterest
expense.................. $1,813,941 $1,695,777 $1,421,901 7.0 % 19.3 %
========== ========== ========== ===== ====
70
Table 16
Interest Rate Sensitivity Gap Analysis
December 31, 2000
Expected Repricing or Maturity Date
-------------------------------------------------------------
Within One One to Three to After Five
Year Three Years Five Years Years Total
----------- ----------- ---------- ---------- -----------
(Dollars in thousands)
Assets
Securities and other
interest-earning
assets*.............. $ 1,204,447 $ 2,918,983 $5,272,771 $4,875,165 $14,271,366
Federal funds sold and
securities purchased
under resale
agreements or similar
arrangements......... 261,156 -- -- -- 261,156
Loans and leases**.... 25,700,239 6,754,081 4,165,240 4,674,339 41,293,899
----------- ----------- ---------- ---------- -----------
Total interest-earning
assets................. 27,165,842 9,673,064 9,438,011 9,549,504 55,826,421
----------- ----------- ---------- ---------- -----------
Liabilities
Savings and interest
checking***.......... -- 1,380,625 460,208 460,209 2,301,042
Money rate
savings***........... 5,659,181 5,659,181 -- -- 11,318,362
Other time deposits... 14,243,926 5,550,917 422,099 27,924 20,244,866
Federal funds
purchased and
securities sold under
repurchase agreements
or similar
arrangements......... 4,045,632 -- -- -- 4,045,632
Long-term debt and
other borrowings..... 4,765,995 278,998 721,103 5,825,659 11,591,755
----------- ----------- ---------- ---------- -----------
Total interest-bearing
liabilities............ 28,714,734 12,869,721 1,603,410 6,313,792 $49,501,657
----------- ----------- ---------- ---------- ===========
Asset-liability gap..... (1,548,892) (3,196,657) 7,834,601 3,235,712
----------- ----------- ---------- ----------
Derivatives affecting
interest rate
sensitivity:
Pay fixed interest
rate swaps........... 226,828 (185,000) (18,943) (22,885)
Receive fixed interest
rate swaps........... (123,000) 20,000 10,000 93,000
Caps, floors and
collars.............. (76,050) 47,250 28,800 --
----------- ----------- ---------- ----------
27,778 (117,750) 19,857 70,115
----------- ----------- ---------- ----------
Interest rate
sensitivity gap........ $(1,521,114) $(3,314,407) $7,854,458 $3,305,827
=========== =========== ========== ==========
Cumulative interest rate
sensitivity gap........ $(1,521,114) $(4,835,521) $3,018,937 $6,324,764
=========== =========== ========== ==========
- --------
* 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.
71
Table 17
Capital--Components and Ratios
December 31,
----------------------
2000 1999
---------- ----------
(Dollars in
thousands)
Tier 1 capital....................................... $4,095,132 $3,806,062
Tier 2 capital....................................... 1,167,055 1,239,272
---------- ----------
Total regulatory capital........................... $5,262,187 $5,045,334
========== ==========
Risk-based capital ratios:
Tier 1 capital..................................... 9.4% 10.0%
Total regulatory capital........................... 12.0 13.2
Tier 1 leverage ratio................................ 7.1 7.1
72
Table 18
Quarterly Financial Summary--Unaudited
2000 1999
------------------------------------------------- --------------------------------------------------
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.................. $ 563,409 $ 551,790 $ 545,440 $ 539,378 $ 540,151 $ 530,029 $ 517,927 $ 491,747
FTE adjustment........ 53,144 28,376 24,645 24,204 24,720 25,754 24,954 21,625
Provision for loan and
lease losses......... 43,300 38,650 28,414 26,767 40,862 27,642 26,468 24,469
Securities (losses)
gains, net........... 2,539 (180,838) (41,114) (104) (1,848) (1,723) (2,631) 979
Other noninterest
income............... 260,184 257,531 251,348 239,676 230,476 229,155 232,832 206,965
Noninterest expense... 422,430 490,252 452,573 448,686 447,218 446,785 413,718 388,056
Provision for income
taxes................ 90,637 17,786 81,142 89,458 85,728 82,903 91,363 85,791
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Net income............ $ 216,621 $ 53,419 $ 168,900 $ 189,835 $ 170,251 $ 174,377 $ 191,625 $ 179,750
=========== =========== =========== =========== =========== =========== =========== ===========
Diluted net income per
share................ $ .53 $ .13 $ .41 $ .46 $ .41 $ .43 $ .47 $ .44
=========== =========== =========== =========== =========== =========== =========== ===========
Selected Average
Balances:
Assets................ $58,346,940 $57,174,136 $55,865,917 $54,690,887 $54,106,493 $53,104,983 $52,067,664 $49,843,167
Securities, at
amortized cost....... 13,931,823 13,935,804 13,792,839 13,720,864 13,880,602 14,256,867 13,887,170 12,592,519
Loans and leases *.... 39,966,886 38,968,281 38,091,353 37,096,449 36,234,726 35,001,848 34,259,492 33,512,600
Total earning assets.. 54,206,158 53,202,895 52,235,280 51,230,425 50,547,818 49,780,716 48,644,219 46,496,834
Deposits.............. 37,558,392 37,491,540 36,757,886 36,005,560 35,140,783 34,822,383 34,323,651 33,893,444
Short-term borrowed
funds................ 6,767,210 5,830,818 7,071,840 7,360,496 7,243,583 6,986,143 6,642,733 5,422,715
Long-term debt........ 8,573,078 8,524,415 6,943,631 6,348,433 6,622,512 6,356,404 6,088,806 5,545,439
Total interest-bearing
liabilities.......... 47,897,825 46,720,106 45,569,932 44,775,308 44,159,341 43,434,960 42,408,100 40,360,862
Shareholders' equity.. 4,545,324 4,508,114 4,312,344 4,204,515 4,189,991 4,058,347 4,154,538 4,147,625
- --------
* Loans and leases are net of unearned income and include loans held for sale.
73