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....... $ 4,878,610 $ 4,233,162 $ 3,936,661 $ 3,576,789 $ 3,235,788
Interest expense...... 2,563,912 2,038,453 1,928,441 1,720,647 1,533,867
----------- ----------- ----------- ----------- -----------
Net interest income... 2,314,698 2,194,709 2,008,220 1,856,142 1,701,921
Provision for loan and
lease losses......... 147,187 126,559 126,269 136,863 83,931
----------- ----------- ----------- ----------- -----------
Net interest income
after provision for
loan and lease
losses............... 2,167,511 2,068,150 1,881,951 1,719,279 1,617,990
Noninterest income.... 846,649 957,428 765,712 645,572 492,435
Noninterest expense... 2,001,154 1,869,668 1,582,845 1,510,803 1,328,167
----------- ----------- ----------- ----------- -----------
Income before income
taxes................ 1,013,006 1,155,910 1,064,818 854,048 782,258
Provision for income
taxes................ 314,518 377,185 343,854 288,945 255,085
----------- ----------- ----------- ----------- -----------
Net income............ $ 698,488 $ 778,725 $ 720,964 $ 565,103 $ 527,173
=========== =========== =========== =========== ===========
Per Common Share
Average shares
outstanding (000's):
Basic................ 450,789 447,569 442,423 438,808 438,627
Diluted.............. 456,214 454,771 451,001 446,846 447,810
Basic earnings per
share................ $ 1.55 $ 1.74 $ 1.63 $ 1.29 $ 1.20
=========== =========== =========== =========== ===========
Diluted earnings per
share................ $ 1.53 $ 1.71 $ 1.60 $ 1.26 $ 1.18
=========== =========== =========== =========== ===========
Cash dividends paid... $ .86 $ .75 $ .66 $ .58 $ .50
Shareholders' equity.. 11.96 10.30 10.33 9.38 8.80
Average Balances
Securities, at
amortized cost....... $15,241,243 $14,820,477 $12,936,731 $11,791,115 $10,779,101
Loans and leases *.... 41,933,641 37,819,870 34,216,258 30,534,941 27,595,056
Other assets.......... 4,638,531 4,410,712 4,137,790 3,423,680 3,170,760
----------- ----------- ----------- ----------- -----------
Total assets....... $61,813,415 $57,051,059 $51,290,779 $45,749,736 $41,544,917
=========== =========== =========== =========== ===========
Deposits.............. $41,417,119 $38,741,240 $35,977,426 $33,658,603 $31,724,334
Other liabilities..... 7,857,696 7,469,542 6,300,849 4,855,886 3,920,174
Long-term debt........ 7,627,165 6,207,966 4,694,418 3,329,176 2,253,734
Common shareholders'
equity............... 4,911,435 4,632,311 4,318,086 3,902,299 3,623,952
Preferred
shareholders'
equity............... -- -- -- 3,772 22,723
----------- ----------- ----------- ----------- -----------
Total liabilities
and shareholders'
equity............ $61,813,415 $57,051,059 $51,290,779 $45,749,736 $41,544,917
=========== =========== =========== =========== ===========
Period End Balances
Total assets.......... $66,552,823 $59,380,433 $54,373,105 $49,240,765 $43,747,135
Deposits.............. 43,877,319 39,319,012 38,204,833 35,268,689 33,077,799
Long-term debt........ 8,646,018 6,222,561 5,561,216 4,202,137 2,625,211
Shareholders' equity.. 5,419,809 4,640,189 4,621,543 4,095,395 3,771,773
Selected Ratios
Rate of return on:
Average total
assets.............. 1.13% 1.36% 1.41% 1.24% 1.27%
Average common
shareholders'
equity.............. 14.22 16.81 16.70 14.48 14.53
Dividend payout....... 55.48 43.10 40.49 44.96 41.67
Average equity to
average assets....... 7.95 8.12 8.42 8.54 8.78
--------
* 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
----------- ---------- ----------
Total assets................................. $47,913,330 $5,249,100 $6,254,434
Securities................................... 12,716,995 389,331 564,472
Loans and leases, net of unearned income*.... 31,065,543 4,008,789 4,028,827
Deposits..................................... 29,215,971 3,952,819 4,877,131
Shareholder's equity......................... 3,831,554 378,740 595,603
Net interest income.......................... 1,421,898 230,877 235,543
Provision for loan and lease losses.......... 79,612 12,554 12,529
Noninterest income........................... 633,992 55,306 23,704
Noninterest expense.......................... 1,323,816 125,123 178,203
Net income................................... 458,903 95,175 42,122
-------------------------------------------------------------------------------
As of / For the Year Ended
December 31, 1999
---------------------------------
BB&T-NC BB&T-SC BB&T-VA
----------- ---------- ----------
Total assets................................. $41,060,416 $4,842,462 $6,550,666
Securities................................... 10,196,460 477,705 1,681,540
Loans and leases, net of unearned income*.... 26,852,336 3,698,046 4,265,276
Deposits..................................... 25,765,790 3,686,484 4,563,833
Shareholder's equity......................... 3,053,222 364,060 617,758
Net interest income.......................... 1,349,554 216,781 237,715
Provision for loan and lease losses.......... 75,796 15,491 7,376
Noninterest income........................... 700,251 68,473 59,324
Noninterest expense.......................... 1,228,596 126,689 180,430
Net income................................... 519,577 91,059 68,756
-------------------------------------------------------------------------------
As of / For the Year Ended
December 31, 1998
---------------------------------
BB&T-NC BB&T-SC BB&T-VA
----------- ---------- ----------
Total assets................................. $36,404,453 $4,641,393 $6,669,554
Securities................................... 9,067,377 783,727 1,607,902
Loans and leases, net of unearned income*.... 24,143,314 3,266,871 4,159,735
Deposits..................................... 25,131,437 3,702,383 4,636,337
Shareholder's equity......................... 2,932,664 429,572 765,964
Net interest income.......................... 1,255,010 201,132 236,198
Provision for loan and lease losses.......... 66,652 13,455 13,915
Noninterest income........................... 570,295 71,945 59,549
Noninterest expense.......................... 1,059,878 119,224 176,466
Net income................................... 489,572 89,653 66,155
--------
* Includes loans held for sale.
56
Table 2
Composition of Loan and Lease Portfolio*
December 31,
-----------------------------------------------------------
2000 1999 1998 1997 1996
----------- ----------- ----------- ----------- -----------
(Dollars in thousands)
Commercial, financial
and agricultural....... $ 6,555,578 $ 6,025,337 $ 5,675,978 $ 5,210,203 $ 4,535,907
Lease receivables....... 4,453,598 2,606,002 1,620,326 788,462 576,991
Real estate--
construction and land
development............ 4,264,275 4,227,146 3,288,411 3,085,299 2,368,051
Real estate--mortgage... 25,239,698 22,712,509 20,574,669 18,643,701 16,658,480
Consumer................ 5,891,059 5,091,840 4,505,704 4,386,600 4,413,139
----------- ----------- ----------- ----------- -----------
Loans and leases held
for investment....... 46,404,208 40,662,834 35,665,088 32,114,265 28,552,568
Loans held for sale... 906,244 390,338 1,375,135 668,732 342,652
----------- ----------- ----------- ----------- -----------
Total loans and leases.. $47,310,452 $41,053,172 $37,040,223 $32,782,997 $28,895,220
=========== =========== =========== =========== ===========
--------
* 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.......... $21,885,646 $18,884,501 $16,308,568 $16,001,851 $12,756,812
Lease Receivables....... 2,100,965 1,508,396 992,684 616,302 470,456
----------- ----------- ----------- ----------- -----------
Total commercial loans
and leases........... 23,986,611 20,392,897 17,301,252 16,618,153 13,227,268
Sales Finance........... 2,844,970 2,565,439 2,254,190 1,773,089 1,678,637
Revolving Credit........ 863,089 713,585 602,521 571,755 569,395
Direct Retail........... 8,336,368 7,526,163 6,466,926 5,742,350 6,134,684
----------- ----------- ----------- ----------- -----------
Total consumer loans.. 12,044,427 10,805,187 9,323,637 8,087,194 8,382,716
Mortgage Loans.......... 8,796,037 8,604,959 9,669,303 7,545,730 7,057,922
----------- ----------- ----------- ----------- -----------
Total loans and
leases............... $44,827,075 $39,803,043 $36,294,192 $32,251,077 $28,667,906
=========== =========== =========== =========== ===========
--------
* Loans and leases are net of unearned income and include loans held for sale.
58
Table 4
Selected Loan Maturities and Interest Sensitivity(/1/)
December 31, 2000
-------------------------------------
Commercial,
Financial
and Real Estate:
Agricultural Construction Total
------------ ------------ -----------
(Dollars in thousands)
Fixed rate:
1 year or less(2)...................... $ 499,393 $ 708,142 $ 1,207,535
1-5 years.............................. 1,435,620 352,092 1,787,712
After 5 years.......................... 358,060 8,585 366,645
---------- ---------- -----------
Total................................ 2,293,073 1,068,819 3,361,892
---------- ---------- -----------
Variable rate:
1 year or less(2)...................... 2,206,314 2,160,064 4,366,378
1-5 years.............................. 1,846,394 1,024,630 2,871,024
After 5 years.......................... 209,797 10,762 220,559
---------- ---------- -----------
Total................................ 4,262,505 3,195,456 7,457,961
---------- ---------- -----------
Total loans and leases(3).......... $6,555,578 $4,264,275 $10,819,853
========== ========== ===========
--------
(1) Balances include unearned income.
(2) Includes loans due on demand.
(Dollars in
thousands)
------------
(3) The table excludes:
(i) consumer loans to individuals for household, family
and other personal expenditures....................... $ 5,891,059
(ii) real estate mortgage loans........................ 25,239,698
(iii) loans held for sale.............................. 906,244
(iv) leases............................................ 4,453,598
------------
$ 36,490,599
============
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.
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 54% $247,005 51% $212,472 48% $191,337 52% $169,256 52%
-------- --- -------- --- -------- --- -------- --- -------- ---
Direct Retail........... 20,665 19 23,174 19 19,041 18 16,769 18 12,935 18
Sales Finance........... 28,058 6 30,620 6 27,701 5 29,082 5 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 27 72,547 25 65,944 25 49,326 26
-------- --- -------- --- -------- --- -------- --- -------- ---
Mortgage................ 2,700 19 2,420 22 3,533 27 2,757 23 2,647 22
Recently Acquired
Subsidiaries*.......... 83,259 -- 63,892 -- 59,816 -- 58,004 -- 52,186 --
Unallocated............. 121,606 -- 135,461 -- 142,251 -- 117,651 -- 113,865 --
-------- --- -------- --- -------- --- -------- --- -------- ---
Total................. $578,107 100% $529,236 100% $490,619 100% $435,693 100% $387,280 100%
======== === ======== === ======== === ======== === ======== ===
-----
* 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................. $ 529,236 $ 490,619 $ 435,693 $ 387,280 $ 360,878
----------- ----------- ----------- ----------- ----------- ---
Charge-offs:
Commercial, financial
and agricultural..... (33,214) (34,693) (23,605) (26,531) (19,745)
Real estate........... (20,759) (19,239) (16,165) (19,670) (14,564)
Consumer.............. (93,040) (79,075) (85,505) (87,212) (63,146)
Lease receivables..... (3,502) (993) (1,167) (671) (768)
----------- ----------- ----------- ----------- -----------
Total charge-offs... (150,515) (134,000) (126,442) (134,084) (98,223)
----------- ----------- ----------- ----------- -----------
Recoveries:
Commercial, financial
and agricultural..... 12,358 13,087 9,649 9,537 10,836
Real estate........... 3,788 4,823 4,787 6,117 7,908
Consumer.............. 21,430 17,344 15,645 12,310 11,656
Lease receivables..... 312 107 425 232 136
----------- ----------- ----------- ----------- -----------
Total recoveries.... 37,888 35,361 30,506 28,196 30,536
----------- ----------- ----------- ----------- -----------
Net charge-offs........ (112,627) (98,639) (95,936) (105,888) (67,687)
----------- ----------- ----------- ----------- -----------
Provision charged to
expense............... 147,187 126,559 126,269 136,863 83,931
----------- ----------- ----------- ----------- -----------
Allowance of loans
acquired in purchase
transactions.......... 14,311 10,697 24,593 17,438 10,158
----------- ----------- ----------- ----------- -----------
Balance, end of period.. $ 578,107 $ 529,236 $ 490,619 $ 435,693 $ 387,280
=========== =========== =========== =========== ===========
Average loans and leases
*...................... $41,933,641 $37,819,870 $34,216,258 $30,534,941 $27,595,056
Net charge-offs as a
percentage of average
loans and leases....... .27% .26% .28% .35% .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............................ 536,863 468,243 459,981
States and political subdivisions....... 80,479 441,772 604,082
Mortgage-backed securities.............. 1,739 7,542 83,455
Other securities........................ 3,021 5,158 12,248
----------- ----------- -----------
Total securities held to maturity..... 622,102 922,715 1,159,766
----------- ----------- -----------
Securities available for sale (at
estimated fair value):
U.S. Treasury, government and agency
obligations............................ 9,727,118 6,316,552 5,556,162
States and political subdivisions....... 1,038,555 684,833 284,448
Mortgage-backed securities.............. 2,805,607 4,426,303 4,819,723
Other securities........................ 1,659,843 1,974,566 1,566,080
----------- ----------- -----------
Total securities available for sale... 15,231,123 13,402,254 12,226,413
----------- ----------- -----------
Total securities.................... $15,949,944 $14,418,190 $13,446,601
=========== =========== ===========
62
Table 8
Scheduled Maturities of Time Deposits $100,000 and Greater
December 31, 2000
(Dollars in thousands)
Maturity Schedule
Less than three months.................................... $1,718,070
Three through six months.................................. 1,193,255
Seven through twelve months............................... 1,381,691
Over twelve months........................................ 1,443,887
----------
Total................................................... $5,736,903
==========
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.......................... $8,822,265 $8,648,596 $7,338,476
Balance outstanding at end of year........ 7,309,978 8,392,344 5,281,475
Average outstanding during the year....... 6,987,954 6,709,177 5,605,738
Average interest rate during the year..... 5.96% 4.88% 5.18%
Average interest rate at end of year...... 6.07 4.31 4.80
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
Minimums Capitalized BB&T NC SC VA
---------- ----------- ---- ---- ---- ----
Risk-based capital ratios:
Tier 1 capital(1).............. 4.0% 6.0% 9.7% 9.5% 9.0% 10.2%
Total risk-based capital(2).... 8.0 10.0 12.2 10.7 10.2 11.4
Tier 1 leverage ratio(3)......... 3.0 5.0 7.3 6.8 7.4 7.4
--------
(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 Value Average Yield(3)
-------------- ----------------
(Dollars in thousands)
U.S. Treasury, government and agency
obligations(1):
Within one year............................. $ 459,116 6.45%
One to five years........................... 5,831,154 7.21
Five to ten years........................... 4,244,638 7.55
After ten years............................. 2,536,419 7.01
----------- ----
Total..................................... 13,071,327 7.26
----------- ----
States and political subdivisions:
Within one year............................. 33,446 7.51
One to five years........................... 215,990 7.63
Five to ten years........................... 553,320 7.53
After ten years............................. 316,278 7.52
----------- ----
Total..................................... 1,119,034 7.55
----------- ----
Other securities:
Within one year............................. 5,393 6.03
One to five years........................... 34,921 6.88
Five to ten years........................... 43,337 6.96
After ten years............................. 195,635 7.87
----------- ----
Total..................................... 279,286 7.43
----------- ----
Securities with no stated maturity............ 1,480,297 5.85
----------- ----
Total securities(2)....................... $15,949,944 7.15%
=========== ====
--------
(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 $622.1 million carried at
amortized cost and securities available for sale and trading securities
carried at estimated fair values of $15.2 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)................... $180,638 $144,247 $145,599
Restructured loans............................... 492 1,681 3,744
Foreclosed property.............................. 55,199 47,143 60,030
-------- -------- --------
Nonperforming assets........................... $236,329 $193,071 $209,373
======== ======== ========
Loans 90 days or more past due and still
accruing...................................... $ 81,629 $ 66,241 $ 68,360
======== ======== ========
Asset Quality Ratios:
Nonaccrual and restructured loans and leases as
a percentage of loans and leases(2)........... .40% .37% .41%
Nonperforming assets as a percentage of:
Total assets................................. .36 .33 .39
Loans and leases plus foreclosed
property(2)................................. .53 .48 .58
Net charge-offs as a percentage of average
loans and leases(2)........................... .27 .26 .28
Allowance for losses as a percentage of loans
and leases(2)................................. 1.29 1.33 1.35
Ratio of allowance for losses to:
Net charge-offs.............................. 5.13x 5.37x 5.11x
Nonaccrual and restructured loans and
leases...................................... 3.19 3.63 3.29
--------
(1) Includes $73.4 million, $68.4 million and $77.5 million of impaired loans
at December 31, 2000, 1999 and 1998, respectively. See Note D. in the
"Notes to Consolidated Financial Statements."
(2) 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).......... $14,144,391 $13,737,216 $12,161,781 6.90% 6.45% 6.62% $ 976,057 $ 886,367 $ 804,838
States and
political
subdivisions....... 1,096,852 1,083,261 774,950 7.49 7.61 7.81 82,143 82,428 60,504
----------- ----------- ----------- ---- ---- ---- ---------- ---------- ----------
Total securities
(5)............... 15,241,243 14,820,477 12,936,731 6.94 6.54 6.69 1,058,200 968,795 865,342
Other earning
assets (2)......... 440,804 617,589 695,174 6.71 5.14 5.42 29,585 31,774 37,705
Loans and leases,
net of unearned
income (1)(3)(4)(5).. 41,933,641 37,819,870 34,216,258 9.36 8.80 9.10 3,924,491 3,329,646 3,112,554
----------- ----------- ----------- ---- ---- ---- ---------- ---------- ----------
Total earning
assets............ 57,615,688 53,257,936 47,848,163 8.70 8.13 8.39 5,012,276 4,330,215 4,015,601
----------- ----------- ----------- ---- ---- ---- ---------- ---------- ----------
Non-earning
assets............ 4,197,727 3,793,123 3,442,616
----------- ----------- -----------
Total assets.... $61,813,415 $57,051,059 $51,290,779
=========== =========== ===========
Liabilities and
Shareholders'
Equity
Interest-bearing
deposits:
Savings and
interest-
checking........... $ 3,890,137 $ 4,592,046 $ 4,808,095 1.89 2.08 2.28 73,470 95,489 109,391
Money rate
savings............ 10,494,588 9,297,377 7,589,489 3.68 3.00 3.16 386,716 278,656 239,848
Other time
deposits........... 21,135,213 19,278,553 18,514,636 5.80 5.17 5.49 1,225,143 996,189 1,016,454
----------- ----------- ----------- ---- ---- ---- ---------- ---------- ----------
Total interest-
bearing
deposits........ 35,519,938 33,167,976 30,912,220 4.74 4.13 4.42 1,685,329 1,370,334 1,365,693
Short-term borrowed
funds.............. 6,987,954 6,709,177 5,605,738 5.96 4.88 5.18 416,303 327,148 290,318
Long-term debt..... 7,627,165 6,207,966 4,694,418 6.06 5.49 5.80 462,280 340,971 272,430
----------- ----------- ----------- ---- ---- ---- ---------- ---------- ----------
Total interest-
bearing
liabilities..... 50,135,057 46,085,119 41,212,376 5.11 4.42 4.68 2,563,912 2,038,453 1,928,441
----------- ----------- ----------- ---- ---- ---- ---------- ---------- ----------
Noninterest-bearing
deposits........... 5,897,181 5,573,264 5,065,206
Other liabilities.. 869,742 760,365 695,111
Shareholders'
equity............. 4,911,435 4,632,311 4,318,086
----------- ----------- -----------
Total
liabilities and
shareholders'
equity.......... $61,813,415 $57,051,059 $51,290,779
=========== =========== ===========
Average interest
rate spread........ 3.59 3.71 3.71
Net yield on
earning assets..... 4.25% 4.30% 4.36% $2,448,364 $2,291,762 $2,087,160
==== ==== ==== ========== ========== ==========
Taxable equivalent
adjustment......... $ 133,666 $ 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).......... $ 89,690 $ 62,872 $ 26,818 $ 81,529 $ (20,545) $102,074
States and
political
subdivisions....... (285) (1,312) 1,027 21,924 (1,573) 23,497
---------- --------- --------- ---------- ---------- ---------
Total securities
(5)............... 89,405 61,560 27,845 103,453 (22,118) 125,571
Other earning
assets (2)......... (2,189) 8,248 (10,437) (5,931) (1,871) (4,060)
Loans and leases,
net of unearned
income (1)(3)(4)(5).. 594,845 218,218 376,627 217,092 (102,638) 319,730
---------- --------- --------- ---------- ---------- ---------
Total earning
assets............ 682,061 288,026 394,035 314,614 (126,627) 441,241
---------- --------- --------- ---------- ---------- ---------
Non-earning
assets............
Total assets....
Liabilities and
Shareholders'
Equity
Interest-bearing
deposits:
Savings and
interest-
checking........... (22,019) (8,260) (13,759) (13,902) (9,132) (4,770)
Money rate
savings............ 108,060 69,218 38,842 38,808 (12,900) 51,708
Other time
deposits........... 228,954 127,854 101,100 (20,265) (61,187) 40,922
---------- --------- --------- ---------- ---------- ---------
Total interest-
bearing
deposits........ 314,995 188,812 126,183 4,641 (83,219) 87,860
Short-term borrowed
funds.............. 89,155 75,086 14,069 36,830 (17,740) 54,570
Long-term debt..... 121,309 37,806 83,503 68,541 (15,260) 83,801
---------- --------- --------- ---------- ---------- ---------
Total interest-
bearing
liabilities..... 525,459 301,704 223,755 110,012 (116,219) 226,231
---------- --------- --------- ---------- ---------- ---------
Noninterest-bearing
deposits...........
Other liabilities..
Shareholders'
equity.............
Total
liabilities and
shareholders'
equity..........
Average interest
rate spread........
Net yield on
earning assets..... $156,602 $(13,678) $170,280 $204,602 $ (10,408) $215,010
========== ========= ========= ========== ========== =========
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
Years Ended December 31, % Change
----------------------------- ---------------
1999
2000 v. v.
2000 1999 1998 1999 1998
--------- -------- -------- ------- -----
(Dollars in thousands)
Service charges on deposits... $ 292,492 $268,620 $242,126 8.9 % 10.9 %
Mortgage banking income....... 104,579 167,056 130,860 (37.4) 27.7
Trust income.................. 80,039 73,361 57,653 9.1 27.2
Agency insurance commissions.. 146,684 94,484 65,915 55.2 43.3
Other insurance commissions... 15,370 14,349 13,368 7.1 7.3
Securities (losses) gains,
net.......................... (219,366) (1,630) 14,512 NM NM
Bankcard fees and merchant
discounts.................... 57,851 47,825 41,011 21.0 16.6
Investment banking and
brokerage fees and
commissions.................. 163,480 129,746 46,448 26.0 NM
Other bank service fees and
commissions.................. 108,687 89,572 73,490 21.3 21.9
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...... 83,253 61,682 69,523 35.0 (11.3)
--------- -------- -------- ----- -----
Total noninterest income.... $ 846,649 $957,428 $765,712 (11.6) % 25.0 %
========= ======== ======== ===== =====
--------
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........... $ 870,931 $ 798,388 $ 680,660 9.1% 17.3%
Pension and other employee
benefits.................... 177,379 158,978 131,113 11.6 21.3
Net occupancy expense on bank
premises.................... 133,770 122,156 105,884 9.5 15.4
Furniture and equipment
expense..................... 168,317 160,231 135,271 5.0 18.5
Federal deposit insurance
premiums.................... 12,007 11,798 8,042 1.8 46.7
Foreclosed property expense.. 6,354 5,992 4,064 6.0 47.4
Amortization of intangibles
and mortgage servicing
rights...................... 83,401 83,956 64,581 (0.7) 30.0
Software..................... 22,147 20,070 12,335 10.3 62.7
Telephone.................... 45,600 37,317 31,379 22.2 18.9
Donations.................... 13,607 15,195 8,428 (10.5) 80.3
Advertising and public
relations................... 37,098 36,630 37,380 1.3 (2.0)
Travel and transportation.... 22,305 17,538 13,585 27.2 29.1
Professional services........ 71,677 86,090 76,115 (16.7) 13.1
Supplies..................... 34,634 31,846 30,064 8.8 5.9
Loan and lease expense....... 43,183 43,324 32,962 (0.3) 31.4
Deposit related expense...... 20,945 20,749 17,067 0.9 21.6
Other noninterest expenses... 237,799 219,410 193,915 8.4 13.1
---------- ---------- ---------- ----- ----
Total noninterest expense.. $2,001,154 $1,869,668 $1,582,845 7.0% 18.1%
========== ========== ========== ===== ====
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)............. $ 1,595,564 $ 3,281,868 $ 5,635,657 $ 5,498,561 $16,011,650
Federal funds sold and
securities purchased
under resale
agreements or similar
arrangements.......... 329,637 -- -- -- 329,637
Loans and leases(2).... 27,899,195 7,331,972 4,521,625 5,074,283 44,827,075
----------- ----------- ----------- ----------- -----------
Total interest-earning
assets................. 29,824,396 10,613,840 10,157,282 10,572,844 61,168,362
----------- ----------- ----------- ----------- -----------
Liabilities
Savings and interest
checking(3)........... -- 2,038,784 679,595 679,594 3,397,973
Money rate savings(3).. 5,926,807 5,926,807 -- -- 11,853,614
Other time deposits.... 15,793,658 6,154,854 468,024 30,963 22,447,499
Federal funds purchased
and securities sold
under repurchase
agreements or similar
arrangements.......... 4,211,593 -- -- -- 4,211,593
Long-term debt and
other borrowings...... 4,896,504 285,313 727,002 5,835,584 11,744,403
----------- ----------- ----------- ----------- -----------
Total interest-bearing
liabilities............ 30,828,562 14,405,758 1,874,621 6,546,141 $53,655,082
----------- ----------- ----------- ----------- ===========
----------- ----------- ----------- -----------
Asset-liability gap..... (1,004,166) (3,791,918) 8,282,661 4,026,703
----------- ----------- ----------- -----------
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........ $ (976,388) $(3,909,668) $ 8,302,518 $ 4,096,818
=========== =========== =========== ===========
Cumulative interest rate
sensitivity gap........ $ (976,388) $(4,886,056) $ 3,416,462 $ 7,513,280
=========== =========== =========== ===========
--------
(1) Securities based on amortized cost.
(2) Loans and leases include loans held for sale and are net of unearned
income.
(3) 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.................................... $4,591,023 $4,277,531
Tier 2 capital.................................... 1,209,645 1,277,514
---------- ----------
Total regulatory capital.......................... $5,800,668 $5,555,045
========== ==========
Risk-based capital ratios:
Tier 1 capital.................................. 9.7% 10.3%
Total regulatory capital........................ 12.2 13.4
Tier 1 leverage ratio............................. 7.3 7.3
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.................. $ 628,589 $ 615,274 $ 606,755 $ 597,746 $ 593,826 $ 584,253 $ 570,691 $ 542,992
FTE adjustment........ 53,971 29,177 25,464 25,054 24,720 25,754 24,954 21,625
Provision for loan and
lease losses......... 47,958 40,714 30,232 28,283 42,958 29,165 28,428 26,008
Securities (losses)
gains, net........... 2,544 (180,778) (41,109) (23) (1,845) (1,690) (2,424) 4,329
Other noninterest
income............... 274,934 271,550 267,066 252,465 245,311 245,036 248,449 220,262
Noninterest expense... 474,223 536,084 499,189 491,658 494,814 490,222 455,965 428,667
Provision for income
taxes................ 98,193 27,597 90,596 98,132 91,916 91,129 99,532 94,608
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Net income............ $ 231,722 $ 72,474 $ 187,231 $ 207,061 $ 182,884 $ 191,329 $ 207,837 $ 196,675
=========== =========== =========== =========== =========== =========== =========== ===========
Diluted net income per
share................ $ .51 $ .16 $ .41 $ .45 $ .40 $ .42 $ .51 $ .43
=========== =========== =========== =========== =========== =========== =========== ===========
Selected Average
Balances:
Assets................ $63,917,592 $62,558,010 $61,050,669 $59,696,087 $58,963,340 $57,890,661 $56,818,889 $54,490,003
Securities, at
amortized cost....... 15,482,384 15,341,496 15,126,092 15,011,249 15,093,784 15,451,540 15,033,771 13,677,644
Loans and leases *.... 43,472,712 42,428,208 41,473,500 40,337,792 39,353,196 38,085,724 37,307,713 36,503,790
Total earning assets.. 59,349,356 58,183,365 57,040,202 55,866,969 55,007,797 54,194,849 53,045,846 50,777,243
Deposits.............. 42,225,800 42,001,836 41,153,215 40,272,313 39,248,327 38,883,289 38,369,770 37,843,796
Short-term borrowed
funds................ 7,050,743 6,105,917 7,279,774 7,524,386 7,431,940 7,148,757 6,784,001 5,558,701
Long-term debt........ 8,595,844 8,546,973 6,969,890 6,375,200 6,648,252 6,382,901 6,117,506 5,569,286
Total interest-bearing
liabilities.......... 52,017,185 50,690,975 49,371,788 48,433,486 47,723,381 46,930,023 45,876,747 43,766,492
Shareholders' equity.. 5,081,679 5,031,614 4,821,823 4,707,434 4,681,204 4,552,916 4,652,447 4,642,850
------
* Loans and leases are net of unearned income and include loans held for sale.
73