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........ $ 3,262,261 $ 2,999,395 $ 2,716,850 $ 2,439,329 $ 2,299,880
Interest expense....... 1,604,179 1,501,908 1,333,052 1,182,773 1,158,425
----------- ----------- ----------- ----------- -----------
Net interest income.... 1,658,082 1,497,487 1,383,798 1,256,556 1,141,455
Provision for loan and
lease losses.......... 104,667 103,148 113,679 71,474 47,948
----------- ----------- ----------- ----------- -----------
Net interest income
after provision for
loan and lease
losses................ 1,553,415 1,394,339 1,270,119 1,185,082 1,093,507
Noninterest income..... 793,686 621,532 529,106 395,831 300,890
Noninterest expense.... 1,436,056 1,183,224 1,151,308 988,865 961,668
----------- ----------- ----------- ----------- -----------
Income before income
taxes................. 911,045 832,647 647,917 592,048 432,729
Provision for income
taxes................. 296,685 265,699 221,706 192,929 142,022
----------- ----------- ----------- ----------- -----------
Net income............. $ 614,360 $ 566,948 $ 426,211 $ 399,119 $ 290,707
=========== =========== =========== =========== ===========
Per Common Share
Average shares
outstanding (000's):
Basic.................. 344,599 340,319 339,172 338,216 336,264
Diluted................ 350,798 347,357 345,404 345,843 350,101
Basic earnings per
share................. $ 1.78 $ 1.67 $ 1.26 $ 1.18 $ .85
=========== =========== =========== =========== ===========
Diluted earnings per
share................. $ 1.75 $ 1.63 $ 1.23 $ 1.15 $ .83
=========== =========== =========== =========== ===========
Cash dividends paid.... $ .75 $ .66 $ .58 $ .50 $ .43
Shareholders' equity... 9.76 9.68 8.65 8.00 7.56
Average Balances
Securities............. $11,316,722 $ 9,707,822 $ 8,880,129 $ 8,156,024 $ 7,920,860
Loans and leases *..... 29,118,123 26,266,844 23,366,132 20,938,577 19,487,828
Other assets........... 3,267,528 2,928,989 2,312,405 2,140,173 2,036,939
----------- ----------- ----------- ----------- -----------
Total assets......... $43,702,373 $38,903,655 $34,558,666 $31,234,774 $29,445,627
=========== =========== =========== =========== ===========
Deposits............... $28,422,050 $26,117,721 $24,637,767 $23,348,680 $21,640,549
Other liabilities...... 6,116,419 5,119,942 3,897,586 3,096,108 4,005,588
Long-term debt......... 5,800,764 4,583,995 3,237,492 2,199,316 1,369,453
Common shareholders'
equity................ 3,363,140 3,081,997 2,782,049 2,567,947 2,350,128
Preferred shareholders'
equity................ -- -- 3,772 22,723 79,909
----------- ----------- ----------- ----------- -----------
Total liabilities and
shareholders'
equity.............. $43,702,373 $38,903,655 $34,558,666 $31,234,774 $29,445,627
=========== =========== =========== =========== ===========
Period End Balances
Total assets........... $45,479,056 $41,243,749 $37,489,552 $32,932,082 $30,621,861
Deposits............... 28,791,574 27,842,986 25,858,066 24,165,136 22,812,095
Long-term debt......... 5,520,484 5,445,800 4,113,387 2,564,578 1,667,689
Shareholders' equity... 3,396,411 3,326,602 2,943,060 2,704,077 2,616,156
Selected Ratios
Rate of return on:
Average total assets... 1.41% 1.46% 1.23% 1.28% .99%
Average common
shareholders'
equity................ 18.27 18.40 15.32 15.50 12.12
Dividend payout........ 42.13 39.52 46.03 42.37 50.59
Average equity to
average assets........ 7.70 7.92 8.06 8.29 8.25
- --------
* Loans and leases are net of unearned income and include loans held for sale.
NM--Not meaningful.
49
Table 1
Selected Financial Data of Significant Banking & Thrift Subsidiaries
As of / For the Years Ended December 31, 1999, 1998 and 1997
First
BB&T-NC BB&T-SC BB&T-VA Liberty Premier
----------- ---------- ---------- ---------- ----------
(Dollars in thousands)
1999
Total assets............ $29,631,391 $4,842,462 $5,098,872 $1,765,277 $1,542,443
Securities.............. 7,740,265 477,705 1,308,673 399,005 160,119
Loans and leases, net of
unearned income*....... 19,402,829 3,698,046 3,294,038 1,201,689 802,712
Deposits................ 18,021,189 3,686,484 3,462,041 1,047,686 1,217,053
Shareholder's equity.... 2,130,303 364,060 471,938 123,658 147,098
Net interest income..... 968,187 216,781 188,522 59,626 63,852
Provision for loan and
lease losses........... 43,053 15,491 6,689 9,728 8,824
Noninterest income...... 564,174 68,473 51,170 22,072 8,926
Noninterest expense..... 896,799 126,689 145,242 59,615 44,050
Net income.............. 417,751 91,059 54,457 8,463 14,675
1998
Total assets............ $26,868,711 $4,641,393 $5,257,737 $1,506,352 $ 919,166
Securities.............. 6,735,729 783,727 1,177,446 322,152 80,423
Loans and leases, net of
unearned income*....... 17,845,119 3,266,871 3,321,677 1,034,511 746,185
Deposits................ 17,858,406 3,702,383 3,496,787 1,075,832 805,853
Shareholder's equity.... 2,170,812 429,572 612,083 123,333 94,776
Net interest income..... 902,319 201,132 187,189 49,653 45,596
Provision for loan and
lease losses........... 47,167 13,455 12,227 5,116 480
Noninterest income...... 459,246 71,945 52,550 20,080 7,972
Noninterest expense..... 801,036 119,224 143,515 40,632 26,365
Net income.............. 365,517 89,653 52,526 15,057 17,976
1997
Total assets............ $23,253,933 $4,364,982 $5,260,598 $1,269,997 $ 366,053
Securities.............. 5,590,186 1,020,554 1,469,392 245,277 42,177
Loans and leases, net of
unearned income*....... 15,749,571 3,052,755 3,274,679 910,502 292,194
Deposits................ 16,419,895 3,401,236 3,507,108 936,502 311,328
Shareholder's equity.... 1,816,733 374,871 574,742 101,457 27,365
Net interest income..... 867,392 184,341 123,738 43,105 14,690
Provision for loan and
lease losses........... 54,197 14,109 8,537 6,316 350
Noninterest income...... 439,772 70,916 27,008 15,650 1,994
Noninterest expense..... 825,898 135,018 90,649 35,320 10,520
Net income.............. 285,209 68,024 34,089 8,850 3,692
- --------
* Includes loans held for sale.
50
Table 2
Composition of Loan and Lease Portfolio*
December 31,
-----------------------------------------------------------
1999 1998 1997 1996 1995
----------- ----------- ----------- ----------- -----------
(Dollars in thousands)
Loans:
Commercial, financial
and agricultural..... $ 4,808,742 $ 4,465,713 $ 4,086,922 $ 3,554,955 $ 3,042,383
Real estate--
construction and land
development.......... 3,672,191 2,803,085 2,688,239 2,023,971 1,487,937
Real estate--
mortgage............. 16,784,223 15,163,133 13,822,249 12,184,992 11,873,917
Consumer.............. 3,745,626 3,322,275 3,285,231 3,331,258 2,940,155
----------- ----------- ----------- ----------- -----------
Loans held for
investment......... 29,010,782 25,754,206 23,882,641 21,095,176 19,344,392
Loans held for
sale............... 363,255 1,296,315 616,400 293,632 322,271
----------- ----------- ----------- ----------- -----------
Total loans....... 29,374,037 27,050,521 24,499,041 21,388,808 19,666,663
Leases.................. 2,605,911 1,620,326 788,462 576,991 376,152
----------- ----------- ----------- ----------- -----------
Total loans and
leases........... $31,979,948 $28,670,847 $25,287,503 $21,965,799 $20,042,815
=========== =========== =========== =========== ===========
- --------
* Balances include unearned income.
51
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)...................... $ 243,500 $ 548,993 $ 792,493
1-5 years............................... 1,033,947 295,611 1,329,558
After 5 years........................... 267,601 -- 267,601
---------- ---------- ----------
Total................................. 1,545,048 844,604 2,389,652
---------- ---------- ----------
Variable rate:
1 year or less (2)...................... 1,708,543 1,922,759 3,631,302
1-5 years............................... 1,406,652 904,828 2,311,480
After 5 years........................... 148,499 -- 148,499
---------- ---------- ----------
Total................................. 3,263,694 2,827,587 6,091,281
---------- ---------- ----------
Total loans and leases (1).......... $4,808,742 $3,672,191 $8,480,933
========== ========== ==========
- --------
* 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....................... $ 3,745,626
(ii)real estate mortgage loans............................ 16,784,223
(iii)loans held for sale.................................. 363,255
(iv)leases................................................ 2,605,911
-----------
$23,499,015
===========
(2) Includes loans due on demand.
52
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....... $ 65,278 15% $ 57,934 16% $ 60,181 16% $ 60,583 16% $ 59,906 15%
Real estate:
Construction and land
development........... 41,465 11 34,420 10 26,224 11 18,831 9 23,131 7
Mortgage............... 145,385 52 115,079 53 112,365 55 97,548 55 94,674 59
-------- --- -------- --- -------- --- -------- --- -------- ---
Real estate--total..... 186,850 63 149,499 63 138,589 66 116,379 64 117,805 66
-------- --- -------- --- -------- --- -------- --- -------- ---
Consumer................ 34,940 14 39,148 15 36,247 15 29,708 17 22,890 17
Leases.................. 21,726 8 12,737 6 8,021 3 5,207 3 3,325 2
Unallocated............. 102,394 -- 119,213 -- 89,603 -- 78,162 -- 63,254 --
-------- --- -------- --- -------- --- -------- --- -------- ---
Total.................. $411,188 100% $378,531 100% $332,641 100% $290,039 100% $267,180 100%
======== === ======== === ======== === ======== === ======== ===
53
Table 5
Analysis of Allowance for Loan and Lease Losses
December 31,
---------------------------------------------------------------
1999 1998 1997 1996 1995
----------- ----------- ----------- ----------- -----------
(Dollars in thousands)
Balance, beginning of
period................. $ 378,531 $ 332,641 $ 290,039 $ 267,180 $ 256,110
Charge-offs:
Commercial, financial
and agricultural..... (27,094) (16,067) (20,599) (14,893) (14,066)
Real estate........... (16,347) (13,001) (15,027) (12,475) (14,236)
Consumer.............. (67,800) (73,913) (74,833) (53,882) (33,743)
Lease receivables..... (993) (1,167) (671) (768) (614)
----------- ----------- ----------- ----------- -----------
Total charge-offs... (112,234) (104,148) (111,130) (82,018) (62,659)
----------- ----------- ----------- ----------- -----------
Recoveries:
Commercial, financial
and agricultural..... 11,218 8,501 7,372 9,684 7,617
Real estate........... 4,035 3,883 5,366 6,789 4,059
Consumer.............. 14,167 12,759 9,644 9,327 9,602
Lease receivables..... 107 425 232 136 395
----------- ----------- ----------- ----------- -----------
Total recoveries.... 29,527 25,568 22,614 25,936 21,673
----------- ----------- ----------- ----------- -----------
Net charge-offs....... (82,707) (78,580) (88,516) (56,082) (40,986)
----------- ----------- ----------- ----------- -----------
Provision charged to
expense.............. 104,667 103,148 113,679 71,474 47,958
----------- ----------- ----------- ----------- -----------
Allowance of loans
acquired in purchase
transactions......... 10,392 21,258 17,439 7,467 4,098
Reconciliation of
fiscal year of merged
companies to calender
year................. 305 64 -- -- --
----------- ----------- ----------- ----------- -----------
Balance, end of period.. $ 411,188 $ 378,531 $ 332,641 $ 290,039 $ 267,180
=========== =========== =========== =========== ===========
Average loans and leases
*...................... $29,118,123 $26,266,844 $23,366,132 $20,937,716 $19,599,374
Net charge-offs as a
percentage of average
loans and leases....... .28% .30% .38% .27% .21%
=========== =========== =========== =========== ===========
- --------
* Loans and leases are net of unearned income and include loans held for sale.
54
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........................... 23,117 59,656 126,608
States and political subdivisions...... 74,005 235,233 272,591
Mortgage-backed securities............. -- 71,663 147,680
Other securities....................... -- 6,920 1,315
----------- ----------- ----------
Total securities held to maturity........ 97,122 373,472 548,194
----------- ----------- ----------
Securities available for sale (at estimated
fair value):
U.S. Treasury, government and agency
obligations........................... 4,682,816 3,944,528 4,755,355
States and political subdivisions...... 568,070 188,095 106,358
Mortgage-backed securities............. 3,886,646 4,243,343 3,421,009
Other securities....................... 1,633,715 1,283,367 507,557
----------- ----------- ----------
Total securities available for sale...... 10,771,247 9,659,333 8,790,279
----------- ----------- ----------
Total securities........................... $10,961,590 $10,093,227 $9,406,351
=========== =========== ==========
55
Table 7
Scheduled Maturities of Time Deposits of $100,000 or Greater
December 31, 1999
(Dollars in thousands)
Maturity Schedule
Less than three months............................................ $1,576,249
Three through six months.......................................... 755,278
Seven through twelve months....................................... 890,130
Over twelve months................................................ 695,079
----------
Total........................................................... $3,916,736
==========
56
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.......................... $7,080,882 $5,850,673 $4,202,356
Average outstanding during the year....... 5,463,467 4,535,876 3,451,085
Average interest rate during the year..... 4.87% 5.23% 5.33%
Average interest rate at end of year...... 4.16 4.87 5.57
57
Table 9
Capital Adequacy for BB&T Corporation and Principal Banking and Thrift
Subsidiaries
Regulatory BB&T- BB&T- BB&T- First
Minimums BB&T NC SC VA Liberty Premier
---------- ---- ----- ----- ----- ------- -------
Risk-based capital ratios:
Tier 1 capital (1)........ 4.0% 9.4% 9.8% 9.7% 11.3% 9.3% 11.6%
Total risk-based capital
(2)...................... 8.0 13.0 11.0 11.0 12.5 10.5 12.9
Tier 1 leverage ratio (3)... 3.0 6.8 6.7 7.7 7.5 6.9 9.6
- --------
(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.
58
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............................ $ 1,002,138 6.37%
One to five years.......................... 2,839,249 6.25
Five to ten years.......................... 1,392,834 6.53
After ten years............................ 3,358,358 6.45
----------- ----
Total.................................... 8,592,579 6.39
----------- ----
States and political subdivisions:
Within one year............................ 34,698 8.41
One to five years.......................... 130,085 8.18
Five to ten years.......................... 228,156 7.19
After ten years............................ 249,136 7.53
----------- ----
Total.................................... 642,075 7.59
----------- ----
Other securities:
Within one year............................ 14,806 6.82
One to five years.......................... 11,678 7.34
Five to ten years.......................... 6,602 6.19
After ten years............................ 342,191 6.54
----------- ----
Total.................................... 375,277 6.57
----------- ----
Securities with no stated maturity........... 1,351,659 5.84
----------- ----
Total securities (2)....................... $10,961,590 6.40%
=========== ====
- --------
(1) Included in U.S. Treasury, government and agency obligations are mortgage-
backed securities totaling $3.9 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 $97.1 million carried at amortized
cost and securities available for sale and trading securities carried at
estimated fair values of $10.8 billion and $93.2 million, respectively.
(3) Taxable equivalent basis as applied to amortized cost.
59
Table 11
Asset Quality
December 31,
----------------------------
1999 1998 1997
-------- -------- --------
(Dollars in thousands)
Nonaccrual loans and leases*..................... $108,708 $110,647 $120,129
Restructured loans............................... 1,094 3,214 2,492
Foreclosed property.............................. 28,521 34,277 43,531
-------- -------- --------
Nonperforming assets........................... $138,323 $148,138 $166,152
======== ======== ========
Loans 90 days or more past due and still
accruing...................................... $ 54,493 $ 55,000 $ 50,121
======== ======== ========
Asset Quality Ratios:
Nonaccrual and restructured loans and leases as
a percentage of loans and leases.............. .41% .41% .49%
Nonperforming assets as a percentage of:
Total assets................................. .30 .36 .44
Loans and leases plus foreclosed property.... .45 .53 .66
Net charge-offs as a percentage of average
loans and leases.............................. .28 .30 .38
Allowance for losses as a percentage of loans
and leases.................................... 1.34 1.36 1.33
Ratio of allowance for losses to:
Net charge-offs.............................. 4.97x 4.82x 3.76x
Nonaccrual and restructured loans and
leases...................................... 3.74 3.32 2.71
- --------
NOTE: Items referring to loans and leases are net of unearned income and
include loans held for sale.
* Includes $30.7 million, $45.8 million and $50.7 million of impaired loans
at December 31, 1999, 1998 and 1997, respectively.
See Note D in the "Notes to Consolidated Financial Statements."
60
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)....... $ 10,705,676 $ 9,352,840 $ 8,540,926 6.52% 6.70% 6.71% $ 698,455 $ 626,555 $ 573,310
States and
political
subdivisions.... 611,046 354,982 339,203 7.76 8.39 8.31 47,407 29,782 28,193
------------ ----------- ----------- ---- ---- ---- ---------- ---------- ----------
Total securities
(5)............. 11,316,722 9,707,822 8,880,129 6.59 6.76 6.77 745,862 656,337 601,503
Other earning
assets (2)...... 367,113 364,674 232,896 5.05 5.60 6.18 18,544 20,429 14,395
Loans and
leases, net of
unearned income
(1)(3)(4)(5).... 29,118,123 26,266,844 23,366,132 8.88 9.11 9.24 2,584,847 2,392,578 2,158,921
------------ ----------- ----------- ---- ---- ---- ---------- ---------- ----------
Total earning
assets.......... 40,801,958 36,339,340 32,479,157 8.21 8.45 8.54 3,349,253 3,069,344 2,774,819
------------ ----------- ----------- ---- ---- ---- ---------- ---------- ----------
Non-earning
assets.......... 2,900,415 2,564,315 2,079,509
------------ ----------- -----------
Total assets.... $ 43,702,373 $38,903,655 $34,558,666
============ =========== ===========
Liabilities and
Shareholders'
Equity
Interest-bearing
deposits:
Savings and
interest-
checking........ $ 2,183,793 $ 2,335,781 $ 2,767,257 1.69 2.15 1.96 36,843 50,217 54,376
Money rate
savings......... 7,742,709 6,476,392 5,344,760 2.98 3.03 3.20 230,382 196,330 170,975
Other time
deposits........ 14,523,913 13,708,684 13,282,257 5.17 5.49 5.52 750,381 752,785 733,205
------------ ----------- ----------- ---- ---- ---- ---------- ---------- ----------
Total interest-
bearing
deposits........ 24,450,415 22,520,857 21,394,274 4.16 4.44 4.48 1,017,606 999,332 958,556
Short-term
borrowed funds.. 5,463,467 4,535,876 3,451,085 4.87 5.23 5.33 266,275 237,158 183,814
Long-term debt.. 5,800,764 4,583,995 3,237,492 5.52 5.79 5.89 320,298 265,418 190,682
------------ ----------- ----------- ---- ---- ---- ---------- ---------- ----------
Total interest-
bearing
liabilities..... 35,714,646 31,640,728 28,082,851 4.49 4.75 4.75 1,604,179 1,501,908 1,333,052
------------ ----------- ----------- ---- ---- ---- ---------- ---------- ----------
Noninterest-
bearing
deposits........ 3,971,635 3,596,864 3,243,493
Other
liabilities..... 652,952 584,066 446,501
Shareholders'
equity.......... 3,363,140 3,081,997 2,785,821
------------ ----------- -----------
Total
liabilities and
shareholders'
equity.......... $ 43,702,373 $38,903,655 $34,558,666
============ =========== ===========
Average interest
rate spread..... 3.72 3.70 3.79
Net yield on
earning assets.. 4.28% 4.31% 4.44% $1,745,074 $1,567,436 $1,441,767
==== ==== ==== ========== ========== ==========
Taxable
equivalent
adjustment...... $ 86,992 $ 69,949 $ 57,969
========== ========== ==========
1998 v. 1997 1997 v. 1996
------------------------------ ------------------------------
Change due to Change due to
Increase ------------------- Increase -------------------
(Decrease) Rate Volume (Decrease) Rate Volume
---------- --------- --------- ---------- --------- ---------
Assets
Securities (1):
U.S. Treasury,
government and
other (5)....... $ 71,900 $(16,723) $ 88,623 $ 53,245 $ (1,148) $ 54,393
States and
political
subdivisions.... 17,625 (2,394) 20,019 1,589 267 1,322
---------- --------- --------- ---------- --------- ---------
Total securities
(5)............. 89,525 (19,117) 108,642 54,834 (881) 55,715
Other earning
assets (2)...... (1,885) (2,021) 136 6,034 (1,457) 7,491
Loans and
leases, net of
unearned income
(1)(3)(4)(5).... 192,269 (62,096) 254,365 233,657 (30,950) 264,607
---------- --------- --------- ---------- --------- ---------
Total earning
assets.......... 279,909 (83,234) 363,143 294,525 (33,288) 327,813
---------- --------- --------- ---------- --------- ---------
Non-earning
assets..........
Total assets....
Liabilities and
Shareholders'
Equity
Interest-bearing
deposits:
Savings and
interest-
checking........ (13,374) (10,270) (3,104) (4,159) 4,817 (8,976)
Money rate
savings......... 34,052 (3,688) 37,740 25,355 (9,326) 34,681
Other time
deposits........ (2,404) (45,843) 43,439 19,580 (3,854) 23,434
---------- --------- --------- ---------- --------- ---------
Total interest-
bearing
deposits........ 18,274 (59,801) 78,075 40,776 (8,363) 49,139
Short-term
borrowed funds.. 29,117 (16,911) 46,028 53,344 (3,433) 56,777
Long-term debt.. 54,880 (12,791) 67,671 74,736 (3,280) 78,016
---------- --------- --------- ---------- --------- ---------
Total interest-
bearing
liabilities..... 102,271 (89,503) 191,774 168,856 (15,076) 183,932
---------- --------- --------- ---------- --------- ---------
Noninterest-
bearing
deposits........
Other
liabilities.....
Shareholders'
equity..........
Total
liabilities and
shareholders'
equity..........
Average interest
rate spread.....
Net yield on
earning assets.. $177,638 $ 6,269 $171,369 $125,669 $(18,212) $143,881
========== ========= ========= ========== ========= =========
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.
61
Table 13
Noninterest Income
% Change
----------------
Years Ended December 31,
--------------------------- 1999 v. 1998 v.
1999 1998 1997 1998 1997
-------- -------- -------- ------- -------
(Dollars in thousands)
Service charges on deposits...... $211,491 $190,394 $170,375 11.1% 11.7%
Mortgage banking income.......... 153,020 118,200 75,973 29.5 55.6
Trust income..................... 55,416 42,603 36,849 30.1 15.6
Agency insurance commissions..... 78,945 52,186 40,149 51.3 30.0
Other insurance commissions...... 11,814 11,284 14,069 4.7 (19.8)
Securities (losses) gains, net... (5,202) 8,841 4,843 (158.8) 82.6
Bankcard fees and merchant
discounts....................... 37,707 30,579 24,104 23.3 26.9
Investment banking and brokerage
fees and commissions............ 127,366 44,326 27,180 187.3 63.1
Other bank service fees and
commissions..................... 61,614 57,170 44,037 7.8 29.8
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......... 49,152 55,143 81,662 (10.9) (32.5)
-------- -------- -------- ------ -----
Total noninterest income....... $793,686 $621,532 $529,106 27.7% 17.5%
======== ======== ======== ====== =====
62
Table 14
Noninterest Expense
% Change
---------------
Years Ended December 31,
-------------------------------- 1999 v. 1998 v.
1999 1998 1997 1998 1997
---------- ---------- ---------- ------- -------
(Dollars in thousands)
Salaries and wages........... $ 601,394 $ 503,834 $ 456,367 19.4% 10.4%
Pension and other employee
benefits.................... 129,308 100,953 110,506 28.1 (8.6)
Net occupancy expense on bank
premises.................... 90,834 78,358 94,578 15.9 (17.1)
Furniture and equipment
expense..................... 124,449 104,045 92,316 19.6 12.7
Federal deposit insurance
premiums.................... 9,406 5,522 6,975 70.3 (20.8)
Foreclosed property expense.. 4,483 2,316 3,548 93.6 (34.7)
Amortization of intangibles
and mortgage servicing
rights...................... 74,267 54,769 27,729 35.6 97.5
Software..................... 19,216 11,560 15,494 66.2 (25.4)
Telephone.................... 28,669 23,770 21,669 20.6 9.7
Donations.................... 12,046 6,643 7,536 81.3 (11.8)
Advertising and public
relations................... 23,880 29,441 31,231 (18.9) (5.7)
Travel and transportation.... 14,939 11,168 9,636 33.8 15.9
Professional services........ 72,354 54,514 53,600 32.7 1.7
Supplies..................... 20,857 19,786 18,494 5.4 7.0
Loan and lease expense....... 33,133 26,938 43,560 23.0 (38.2)
Deposit related expense...... 17,075 15,335 17,154 11.3 (10.6)
Other noninterest expenses... 159,746 134,272 140,915 19.0 (4.7)
---------- ---------- ---------- ----- -----
Total noninterest expense.. $1,436,056 $1,183,224 $1,151,308 21.4% 2.8%
========== ========== ========== ===== =====
63
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*.............. $ 2,899,391 $ 2,770,785 $3,880,017 $1,932,545 $11,482,738
Federal funds sold and
securities purchased
under resale
agreements or similar
arrangements......... 244,520 -- -- -- 244,520
Loans and leases**.... 17,129,553 4,659,681 5,040,816 3,906,633 30,736,683
----------- ----------- ---------- ---------- -----------
Total interest-earning
assets................. 20,273,464 7,430,466 8,920,833 5,839,178 42,463,941
----------- ----------- ---------- ---------- -----------
Liabilities
Savings and interest
checking***.......... -- 1,188,566 396,189 396,189 1,980,944
Money rate
savings***........... 4,240,143 4,240,142 -- -- 8,480,285
Other time deposits... 10,970,202 2,353,880 274,597 62,843 13,661,522
Foreign deposits...... 529,401 -- -- -- 529,401
Federal funds
purchased and
securities sold under
repurchase agreements
or similar
arrangements......... 2,197,655 -- -- -- 2,197,655
Long-term debt and
other borrowings..... 6,427,413 442,158 145,652 3,388,488 10,403,711
----------- ----------- ---------- ---------- -----------
Total interest-bearing
liabilities............ 24,364,814 8,224,746 816,438 3,847,520 $37,253,518
----------- ----------- ---------- ---------- ===========
Asset-liability gap..... (4,091,350) (794,280) 8,104,395 1,991,658
----------- ----------- ---------- ----------
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........ $(4,222,454) $ (798,641) $7,980,609 $2,250,909
=========== =========== ========== ==========
Cumulative interest rate
sensitivity gap........ $(4,222,454) $(5,021,095) $2,959,514 $5,210,423
=========== =========== ========== ==========
- --------
* 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.
64
Table 16
Capital--Components and Ratios
December 31,
------------------------
1999 1998
----------- -----------
(Dollars in thousands)
Tier 1 capital........................................ $ 3,037,105 $ 2,906,707
Tier 2 capital........................................ 1,161,040 1,173,484
----------- -----------
Total regulatory capital.............................. $ 4,198,145 $ 4,080,191
=========== ===========
Risk-based capital ratios:
Tier 1 capital...................................... 9.4% 10.6%
Total regulatory capital............................ 13.0 14.8
Tier 1 leverage ratio................................. 6.8 7.3
65
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
===== =====
66
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.................. $ 455,872 $ 445,899 $ 433,411 $ 409,892 $ 400,531 $ 390,024 $ 398,484 $ 378,397
FTE adjustment........ 22,278 23,149 22,388 19,177 19,106 17,414 17,006 16,423
Provision for loan and
lease losses......... 37,737 21,862 23,499 21,569 25,850 23,029 28,224 26,045
Securities (losses)
gains, net........... (926) (1,575) (2,895) 194 2,126 2,542 1,351 2,822
Other noninterest
income............... 205,426 202,940 207,532 182,990 158,023 157,857 154,396 142,415
Noninterest expense... 380,443 381,241 349,122 325,250 306,207 300,712 292,999 283,306
Provision for income
taxes................ 74,270 71,177 78,166 73,072 65,659 66,072 69,849 64,119
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Net income............ $ 145,644 $ 149,835 $ 164,873 $ 154,008 $ 143,858 $ 143,196 $ 146,153 $ 133,741
=========== =========== =========== =========== =========== =========== =========== ===========
Diluted net income per
share................ $ .41 $ .43 $ .47 $ .44 $ .41 $ .42 $ .42 $ .39
=========== =========== =========== =========== =========== =========== =========== ===========
Selected Average
Balances:
Assets................ $45,292,012 $44,416,597 $43,491,518 $41,560,422 $40,240,901 $38,020,660 $38,491,440 $37,700,027
Securities, at
amortized cost....... 11,529,896 11,851,013 11,516,038 10,351,116 10,223,946 9,404,725 9,602,955 9,447,202
Loans and leases *.... 30,382,190 29,295,979 28,688,111 28,078,948 26,938,336 25,901,741 26,039,929 25,362,679
Total earning assets.. 42,237,405 41,590,038 40,593,748 38,739,454 37,436,001 35,597,872 36,084,042 35,307,295
Deposits.............. 28,955,497 28,683,773 28,210,933 27,822,672 26,753,133 25,451,404 25,888,435 25,421,752
Short-term borrowed
funds................ 6,142,365 5,828,576 5,546,130 4,312,588 4,452,967 4,281,779 4,829,209 4,530,303
Long-term debt........ 6,084,206 5,939,927 5,717,413 5,453,044 5,148,796 4,762,526 4,173,606 4,196,302
Total interest-bearing
liabilities.......... 37,040,541 36,442,901 35,550,763 33,780,461 32,567,493 30,917,956 31,326,542 30,765,957
Shareholders' equity.. 3,429,785 3,302,696 3,374,246 3,345,572 3,304,732 2,942,666 2,991,571 2,975,744
- ------
* Loans and leases are net of unearned income and include loans held for sale.
67