Exhibit 99.3
SIX-YEAR FINANCIAL SUMMARY AND SELECTED RATIOS
(Dollars in thousands, except per share data)
As of / For the Years Ended December 31,
--------------------------------------------------------------------
1998 1997 1996 1995
----------- ----------- ----------- -----------
Summary of Operations
Interest income $ 2,633,407 $ 2,392,454 $ 2,168,146 $ 2,075,176
Interest expense 1,316,278 1,170,796 1,048,236 1,047,786
----------- ----------- ----------- -----------
Net interest income 1,317,129 1,221,658 1,119,910 1,027,390
Provision for loan and lease losses 90,470 102,680 65,795 44,492
----------- ----------- ----------- -----------
Net interest income after provision
for loan and lease losses 1,226,659 1,118,978 1,054,115 982,898
Noninterest income 543,629 472,454 353,407 266,277
Noninterest expense 1,019,920 1,014,877 869,121 866,736
----------- ----------- ----------- -----------
Income before income taxes 750,368 576,555 538,401 382,439
Provision for income taxes 237,347 198,268 176,953 127,184
----------- ----------- ----------- -----------
Income before cumulative effect of changes
in accounting principles 513,021 378,287 361,448 255,255
Less: cumulative effect of changes
in accounting principles, net of
income taxes - - - -
----------- ----------- ----------- -----------
Net income $ 513,021 $ 378,287 $ 361,448 $ 255,255
=========== =========== =========== ===========
Per Common Share
Average shares outstanding (000's):
Basic 303,923 303,174 303,210 302,673
Diluted 310,109 308,210 309,506 316,215
Basic earnings:
Income before cumulative effect $ 1.69 $ 1.25 $ 1.19 $ 0.83
Less: cumulative effect - - - -
----------- ----------- ----------- -----------
Net income $ 1.69 $ 1.25 $ 1.19 $ 0.83
=========== =========== =========== ===========
Diluted earnings:
Income before cumulative effect $ 1.65 $ 1.23 $ 1.17 $ 0.81
Less: cumulative effect - - - -
----------- ----------- ----------- -----------
Net income $ 1.65 $ 1.23 $ 1.17 $ 0.81
=========== =========== =========== ===========
Cash dividends paid $ .66 $ .58 $ .50 $ .43
Shareholders' equity 9.53 8.50 7.80 7.39
Average Balances
Securities, at amortized cost $ 8,668,520 $ 7,853,664 $ 7,250,145 $ 7,149,293
Loans and leases * 23,291,306 20,764,382 18,820,307 17,850,309
Other assets 2,461,715 1,884,488 1,750,535 1,743,872
----------- ----------- ----------- -----------
Total assets $34,421,541 $30,502,534 $27,820,987 $26,743,474
=========== =========== =========== ===========
Deposits $22,743,052 $21,492,886 $20,616,743 $19,502,585
Other liabilities 4,730,562 3,600,627 2,827,742 3,755,825
Long-term debt 4,236,980 2,965,271 2,087,998 1,310,658
Common shareholders' equity 2,710,947 2,443,750 2,273,345 2,102,061
Preferred shareholders' equity - - 15,159 72,345
----------- ----------- ----------- -----------
Total liabilities and shareholders'
equity $34,421,541 $30,502,534 $27,820,987 $26,743,474
=========== =========== =========== ===========
Period End Balances
Total assets $36,388,330 $33,165,141 $29,134,267 $27,396,168
Deposits 24,258,168 22,504,750 21,162,597 20,238,043
Long-term debt 4,964,797 3,750,484 2,392,688 1,544,236
Shareholders' equity 2,923,888 2,582,505 2,382,511 2,328,706
Selected Performance Ratios
Rate of return on:
Average total assets** 1.49% 1.24% 1.30% 0.95%
Average common shareholders' equity** 18.92 15.48 15.87 11.90
Dividend payout** 39.05 46.40 42.02 51.81
Average equity to average assets 7.88 8.01 8.23 8.13
As of / For the Years Ended December 31,
--------------------------------------- Compound
1994 1993 Growth Rate
----------- ----------- -------------------
Summary of Operations
Interest income $ 1,740,647 $ 1,569,404 10.9%
Interest expense 752,444 659,234 14.8
----------- -----------
Net interest income 988,203 910,170 7.7
Provision for loan and lease losses 29,359 64,019 7.2
----------- -----------
Net interest income after provision
for loan and lease losses 958,844 846,151 7.7
Noninterest income 273,679 276,234 14.5
Noninterest expense 787,890 846,363 3.8
----------- -----------
Income before income taxes 444,633 276,022 22.1
Provision for income taxes 152,603 100,564 18.7
----------- -----------
Income before cumulative effect of changes
in accounting principles 292,030 175,458 23.9
Less: cumulative effect of changes
in accounting principles, net of
income taxes - (31,972) NM
----------- -----------
Net income $ 292,030 $ 143,486 29.0
=========== ===========
Per Common Share
Average shares outstanding (000's):
Basic 298,190 287,150 1.1
Diluted 312,016 302,154 0.5
Basic earnings:
Income before cumulative effect $ 0.96 $ 0.59 23.4
Less: cumulative effect - (0.11) NM
----------- -----------
Net income $ 0.96 $ 0.48 28.7
=========== ===========
Diluted earnings:
Income before cumulative effect $ 0.94 $ 0.58 23.3
Less: cumulative effect - (0.11) NM
----------- -----------
Net income $ 0.94 $ 0.47 28.6
=========== ===========
Cash dividends paid $ .37 $ .32 15.6
Shareholders' equity 6.59 5.94 9.9
Average Balances
Securities, at amortized cost $ 6,796,950 $ 5,939,578 7.9
Loans and leases * 16,073,888 14,462,267 10.0
Other assets 1,787,281 1,756,293 7.0
----------- -----------
Total assets $24,658,119 $22,158,138 9.2
=========== ===========
Deposits $19,032,049 $17,835,005 5.0
Other liabilities 2,822,320 1,797,381 21.4
Long-term debt 879,864 742,441 41.7
Common shareholders' equity 1,849,743 1,709,168 9.7
Preferred shareholders' equity 74,143 74,143 NM
----------- -----------
Total liabilities and shareholders'
equity $24,658,119 $22,158,138 9.2
=========== ===========
Period End Balances
Total assets $25,868,138 $24,341,966 8.4
Deposits 19,222,773 19,213,065 4.8
Long-term debt 1,104,699 1,019,362 37.3
Shareholders' equity 2,059,666 1,843,764 9.7
Selected Performance Ratios
Rate of return on:
Average total assets** 1.18 % 0.79 %
Average common shareholders' equity** 15.51 9.96
Dividend payout** 38.54 54.24
Average equity to average assets 7.80 8.05
- ------------------------------------------------------
* Loans and leases are net of unearned income and include loans held for
sale.
** Based on income before cumulative effect of changes in accounting
principles, net of income taxes
NM Not meaningful.
Table 1
Selected Financial Data of Significant Banking Subsidiaries
As of / For the Years Ended December 31, 1998, 1997 and 1996
Piedmont
BB&T-NC BB&T-SC BB&T-VA Franklin Trust
----------------- ----------------- ------------------ ---------------- ----------------
1998 (Dollars in thousands)
Total assets $ 25,985,004 $ 4,641,393 $ 3,473,368 $ 800,786 $ 564,748
Securities 6,531,178 783,727 578,224 175,386 161,107
Loans and leases, net of
unearned income* 17,414,700 3,266,871 2,341,767 390,086 340,993
Deposits 17,275,566 3,702,383 2,320,244 536,586 336,323
Shareholder's equity 2,124,446 429,572 457,600 40,848 45,713
Net interest income 871,515 201,132 121,030 27,257 21,588
Provision for loan and
lease losses 44,227 13,455 3,122 1,885 3,875
Noninterest income 455,760 71,945 41,671 2,771 4,955
Noninterest expense 776,574 119,224 98,452 21,512 12,835
Net income 361,058 89,653 36,738 4,299 6,748
- --------------------------------------------------------------------------------------------------------------------------------
1997
Total assets $ 22,530,009 $ 4,364,982 $ 3,529,844 $ 647,448 $ 552,601
Securities 5,392,894 1,020,554 887,381 179,388 153,407
Loans and leases, net of
unearned income* 15,402,775 3,052,755 2,287,651 300,441 347,555
Deposits 15,931,795 3,401,236 2,333,873 427,798 332,524
Shareholder's equity 1,771,589 374,871 435,248 39,283 42,907
Net interest income 842,745 184,341 59,122 21,532 21,516
Provision for loan and
lease losses 53,533 14,109 3,400 484 1,925
Noninterest income 436,607 70,916 16,149 2,447 4,535
Noninterest expense 809,599 135,018 47,349 13,915 13,047
Net income 278,536 68,024 15,388 5,968 7,529
- --------------------------------------------------------------------------------------------------------------------------------
1996
Total assets $ 20,652,519 $ 4,213,458 $ 2,209,614 $ 497,817 $ 495,542
Securities 4,962,941 1,034,385 883,771 164,116 113,883
Loans and leases, net of
unearned income* 14,149,983 2,901,930 1,180,681 232,581 337,849
Deposits 15,683,080 3,336,711 1,422,785 363,427 317,564
Shareholder's equity 1,601,950 399,965 194,884 31,893 38,249
Net interest income 773,019 173,235 43,822 18,290 20,280
Provision for loan and
lease losses 44,675 8,405 2,584 27 1,808
Noninterest income 333,119 57,729 11,811 1,770 6,448
Noninterest expense 689,969 134,200 30,129 12,652 13,477
Net income 250,956 56,489 14,542 4,523 7,708
* Includes loans held for sale.
Table 2
Composition of Loan and Lease Portfolio*
December 31,
--------------------------------------------------------------------------
1998 1997 1996 1995 1994
----------- ----------- ---------- ------------ -----------
(Dollars in thousands)
Loans:
Commercial, financial and agricultural $ 3,637,633 $ 3,387,582 $ 3,034,507 $ 2,648,561 $ 3,300,474
Real estate - construction and land
development 2,266,024 2,206,987 1,610,324 1,222,619 905,772
Real estate - mortgage 13,890,100 12,597,971 11,169,569 10,996,330 9,768,443
Consumer 2,986,225 2,954,154 3,042,729 2,705,878 2,606,187
----------- ----------- ----------- ----------- -----------
Loans held for investment 22,779,982 21,146,694 18,857,129 17,573,388 16,580,876
Loans held for sale 1,035,668 512,189 229,075 263,144 141,676
----------- ----------- ----------- ----------- -----------
Total loans 23,815,650 21,658,883 19,086,204 17,836,532 16,722,552
Leases 1,620,326 788,462 576,991 376,152 304,544
----------- ----------- ----------- ----------- -----------
Total loans and leases $25,435,976 $22,447,345 $19,663,195 $18,212,684 $17,027,096
=========== =========== =========== =========== ===========
- --------------
* Balances include unearned income.
Table 3
Selected Loan Maturities and Interest Sensitivity *
December 31, 1998
-------------------------------------------------------------------
Commercial,
Financial
and Real Estate:
Agricultural Construction Total
--------------------- -------------------- --------------------
(Dollars in thousands)
Fixed rate:
1 year or less (2) $ 288,101 $ 349,194 $ 637,295
1-5 years 720,251 171,991 892,242
After 5 years 192,067 - 192,067
--------------------- -------------------- --------------------
Total 1,200,419 521,185 1,721,604
--------------------- -------------------- --------------------
Variable rate:
1 year or less (2) 1,242,979 1,169,042 2,412,021
1-5 years 1,096,746 575,797 1,672,543
After 5 years 97,489 - 97,489
--------------------- -------------------- --------------------
Total 2,437,214 1,744,839 4,182,053
--------------------- -------------------- --------------------
Total loans and leases (1) $ 3,637,633 $ 2,266,024 $ 5,903,657
===================== ==================== ====================
- ------------------
* 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
(1) The table excludes: thousands)
------------------
(i) consumer loans to individuals for household, family and
other personal expenditures $ 2,986,225
(ii) real estate mortgage loans 13,890,100
(iii) loans held for sale 1,035,668
(iv) leases 1,620,326
------------------
$ 19,532,319
==================
(2) Includes loans due on demand.
Table 4
Allocation of Allowance for Loan and Lease Losses by Category
December 31,
----------------------------------------------------------------------------------------------
1998 1997 1996
------------------------------ --------------------------- -----------------------------
% Loans % Loans % Loans
in each in each in each
Amount category Amount category Amount category
---------------- ------------ ------------- ------------ -------------- ------------
(Dollars in thousands)
Balance at end of period
applicable to:
Commercial, financial
and agricultural $ 42,661 14% $ 45,517 15% $ 44,743 15%
Real estate:
Construction and
land development 32,266 9 24,403 10 17,651 8
Mortgage 107,026 59 107,026 58 93,164 58
---------------- ------------ ------------- ------------ -------------- ------------
Real estate - total 139,292 68 131,429 68 110,815 66
---------------- ------------ ------------- ------------ -------------- ------------
Consumer 22,759 12 21,596 13 19,123 16
Leases 12,736 6 8,021 4 5,207 3
Unallocated 113,167 -- 86,104 -- 75,883 --
---------------- ------------ ------------- ------------ -------------- ------------
Total $ 330,615 100% $ 292,667 100% $ 255,771 100%
================ ============ ============= ============ ============== ============
December 31,
-------------------------------------------------------------
1995 1994
---------------------------- ----------------------------
% Loans % Loans
in each in each
Amount category Amount category
-------------- ------------ -------------- ------------
Balance at end of period
applicable to:
Commercial, financial
and agricultural $ 50,351 15% $ 47,959 19%
Real estate:
Construction and
land development 21,122 7 19,625 5
Mortgage 89,302 61 80,185 59
-------------- ------------ -------------- ------------
Real estate - total 110,424 68 99,810 64
-------------- ------------ -------------- ------------
Consumer 13,035 15 9,167 15
Leases 3,325 2 2,986 2
Unallocated 60,673 -- 73,022 --
-------------- ------------ -------------- ------------
Total $ 237,808 100% $ 232,944 100%
============== ============ ============== ============
Table 5
Composition of Allowance for Loan and Lease Losses
December 31,
-----------------------------------------------------------------------------------------------
1998 1997 1996 1995 1994
------------------ ------------------ ------------------ ------------------ ----------------
(Dollars in thousands)
Balance, beginning of period $ 292,667 $ 255,771 $ 237,808 $ 232,944 $ 228,412
-------------- -------------- -------------- -------------- ---------------
Charge-offs:
Commercial, financial
and agricultural (14,188) (18,260) (11,673) (12,401) (15,141)
Real estate (11,655) (14,192) (11,882) (12,660) (10,092)
Consumer (64,611) (69,334) (49,999) (30,680) (17,454)
Lease receivables (1,167) (671) (768) (614) (647)
-------------- -------------- -------------- -------------- ---------------
Total charge-offs (91,621) (102,457) (74,322) (56,355) (43,334)
-------------- -------------- -------------- -------------- ---------------
Recoveries:
Commercial, financial
and agricultural 7,698 6,271 8,247 6,271 8,054
Real estate 3,551 5,038 6,339 3,743 3,669
Consumer 9,756 7,619 6,583 5,739 5,430
Lease receivables 425 232 136 395 295
-------------- -------------- -------------- -------------- ---------------
Total recoveries 21,430 19,160 21,305 16,148 17,448
-------------- -------------- -------------- -------------- ---------------
Net charge-offs (70,191) (83,297) (53,017) (40,207) (25,886)
-------------- -------------- -------------- -------------- ---------------
Provision charged to expense 90,470 102,680 65,795 44,492 29,299
-------------- -------------- -------------- -------------- ---------------
Allowance of loans acquired in
purchase transactions 17,669 17,513 5,185 579 1,119
-------------- -------------- -------------- -------------- ---------------
Balance, end of period $ 330,615 $ 292,667 $ 255,771 $ 237,808 $ 232,944
============== ============== ============== ============== ===============
Average loans and leases * $ 23,291,306 $ 20,764,382 $ 18,820,307 $ 17,850,309 $ 16,073,888
Net charge-offs as a percentage
of average loans and leases .30 % .40 % .28 % .23 % .16 %
================ ============== ================ ================ ===============
- ----------
* Loans and leases are net of unearned income and include loans held for sale.
Table 6
Composition of Securities Portfolio
December 31,
------------------------------------------------------
1998 1997 1996
----------------- ---------------- ---------------
(Dollars in thousands)
Trading Securities (at estimated fair value): $ 60,422 $ 67,878 $ -
----------------- ---------------- ---------------
Securities held to maturity (at amortized cost):
U.S. Treasury, government and agency obligations 24,810 64,789 61,622
States and political subdivisions 132,521 187,503 217,426
Mortgage-backed securities 17,404 62,491 213,188
----------------- ---------------- ---------------
Total securities held to maturity 174,735 314,783 492,236
----------------- ---------------- ---------------
Securities available for sale (at estimated fair value):
U.S. Treasury, government and agency obligations 3,636,930 4,486,999 4,136,538
States and political subdivisions 172,758 62,623 33,689
Mortgage-backed securities 3,690,383 2,966,137 2,588,605
Other securities 1,237,865 478,175 323,107
----------------- ---------------- ---------------
Total securities available for sale 8,737,936 7,993,934 7,081,939
----------------- ---------------- ---------------
Total securities $ 8,973,093 $ 8,376,595 $ 7,574,175
================= ================ ================
Table 7
Scheduled Maturities of Time Deposits
December 31, 1998
(dollars in thousands)
- --------------------------------------------------------------------------------
Time Deposits $100,000 and Over
- --------------------------------------------------------------------------------
Maturity Schedule
Less than three months $ 1,347,706
Three through six months 718,354
Seven through twelve months 524,142
Over twelve months 783,067
---------------
Total $ 3,373,269
===============
Total Time Deposits
- --------------------------------------------------------------------------------
Time Deposits Due to Mature by December 31,
1999 $ 8,913,624
2000 2,372,065
2001 319,564
2002 226,087
2003 135,760
2004 and later 20,659
---------------
Total $ 11,987,759
===============
Table 8
Short-Term Borrowed Funds
The following information summarizes certain pertinent information for the
past three years on short-term borrowed funds:
1998 1997 1996
------------------------ ------------------------ -----------------------
(Dollars in thousands)
Maximum outstanding at any month-end
during the year $ 5,356,787 $ 3,863,630 $ 2,984,580
Average outstanding during the year 4,183,312 3,214,577 2,481,662
Average interest rate during the year 5.23 % 5.25 % 5.26 %
Average interest rate at end of year 4.83 5.46 4.92
Table 9
Capital Adequacy for BB&T Corporation and Principal Banking Subsidiaries
Regulatory BB&T- BB&T- BB&T- Piedmont
Minimums BB&T NC SC VA Franklin Trust
------------ -------- ---------- --------- -------- ------------ --------------
Risk-based capital ratios:
Tier 1 capital (1) 4.0 % 10.3 % 10.9 % 12.7 % 15.3 % 8.5 % 12.2 %
Total risk-based capital (2) 8.0 15.0 12.2 13.9 16.5 9.7 13.4
Tier 1 leverage ratio (3) 3.0 7.0 7.2 9.3 10.0 5.3 8.3
- -----------------------------
(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.
Table 10
Securities
December 31, 1998
--------------------------------------------------------
Carrying Value Average Yield (3)
------------------------- --------------------------
(Dollars in thousands)
U.S. Treasury, government and agency obligations (1):
Within one year $ 1,009,740 6.35 %
One to five years 3,050,177 6.15
Five to ten years 468,389 6.45
After ten years 2,841,221 6.64
------------------------- --------------------------
Total 7,369,527 6.38
------------------------- --------------------------
States and political subdivisions:
Within one year 28,075 8.72
One to five years 136,941 8.47
Five to ten years 57,600 7.72
After ten years 82,663 7.49
------------------------ --------------------------
Total 305,279 8.09
------------------------- --------------------------
Other securities:
Within one year 28,816 5.12
One to five years 38,242 7.48
Five to ten years 5,651 7.34
After ten years 259,905 6.71
------------------------- --------------------------
Total 332,614 6.67
------------------------- --------------------------
Securities with no stated maturity 965,673 6.39
------------------------- --------------------------
Total securities (2) $ 8,973,093 6.45 %
========================= ==========================
- --------------------
(1) Included in U.S. Treasury, government and agency obligations are
mortgage-backed securities totaling $3.7 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 $174.7 million carried at amortized
cost and securities available for sale and trading securities carried at
estimated fair values of $8.7 billion and $60.4 million, respectively.
(3) Taxable equivalent basis as applied to amortized cost.
Table 11
Asset Quality
December 31,
-----------------------------------------------
1998 1997 1996
----------- ------------ -----------
(Dollars in thousands)
Nonaccrual loans and leases* $ 88,847 $ 104,083 $ 69,062
Restructured loans 522 1,377 2,464
Foreclosed property 28,976 37,146 31,345
----------- ------------ -----------
Nonperforming assets $ 118,345 $ 142,606 $ 102,871
=========== ============ ===========
Loans 90 days or more past due and still accruing $ 54,226 $ 48,324 $ 45,203
=========== ============ ===========
Asset Quality Ratios:
Nonaccrual loans and leases as a percentage of loans and leases .36 % .47 % .35 %
Nonperforming assets as a percentage of:
Total assets .33 .43 .35
Loans and leases plus foreclosed property .48 .64 .53
Net charge-offs as a percentage of average loans and leases .30 .40 .28
Allowance for losses as a percentage of loans and leases 1.34 1.32 1.31
Ratio of allowance for losses to:
Net charge-offs 4.71 x 3.51 x 4.82 x
Nonaccrual and restructured loans and leases 3.70 2.77 3.57
- ------------------------
NOTE: Items referring to loans and leases are net of unearned income and include
loans held for sale.
* Includes $27.2 million, $36.1 million and $31.7 million of impaired loans
at December 31, 1998, 1997 and 1996, respectfully. See Note D in the "Notes
to Consolidated Financial Statements."
Table 12
FTE Net Interest Income and Rate / Volume Analysis
For the Years Ended December 31, 1998, 1997 and 1996
Average Balances Yield/Rate
- ------------------------------------------------------------------------------------------------------------------------------------
1998 1997 1996 1998 1997 1996
- ------------------------------------------------------------------------------------------------------------------------------------
(Dollars in thousands)
Assets
Securities (1):
U.S. Treasury, government and other (5) $ 8,428,290 $ 7,624,939 $ 7,001,091 6.70 % 6.74 % 6.55%
States and political subdivisions 240,230 228,725 249,054 8.26 8.31 8.51
- ------------------------------------------------------------------------------------------------------------------------------------
Total securities (5) 8,668,520 7,853,664 7,250,145 6.75 6.79 6.62
Other earning assets (2) 195,477 109,351 161,059 5.67 5.88 5.53
Loans and leases, net
of unearned income (1)(3)(4)(5) 23,291,306 20,764,382 18,820,307 9.03 9.19 9.12
- ------------------------------------------------------------------------------------------------------------------------------------
Total earning assets 32,155,303 28,727,397 26,231,511 8.40 8.52 8.41
- ------------------------------------------------------------------------------------------------------------------------------------
Non-earning assets 2,266,238 1,775,137 1,589,476
- -----------------------------------------------------------------------------------------------------
Total assets $34,421,541 $30,502,534 $27,820,987
=====================================================================================================
Liabilities and Shareholders' Equity
Interest-bearing deposits:
Savings and interest-checking $ 1,934,723 $ 2,289,089 $ 2,474,422 1.91 1.88 1.98
Money rate savings 5,888,292 4,903,414 4,115,579 3.00 3.09 2.87
Other time deposits 11,806,049 11,491,842 11,342,502 5.43 5.50 5.54
- ------------------------------------------------------------------------------------------------------------------------------------
Total interest-bearing deposits 19,629,064 18,684,345 17,932,503 4.35 4.43 4.44
Short-term borrowed funds 4,183,312 3,214,577 2,481,662 5.23 5.25 5.26
Long-term debt 4,236,980 2,965,271 2,087,998 5.75 5.91 5.83
- ------------------------------------------------------------------------------------------------------------------------------------
Total interest-bearing liabilities 28,049,356 24,864,193 22,502,163 4.69 4.71 4.66
- ------------------------------------------------------------------------------------------------------------------------------------
Noninterest-bearing deposits 3,113,988 2,808,541 2,684,240
Other liabilities 547,250 386,050 346,080
Shareholders' equity 2,710,947 2,443,750 2,288,504
- -----------------------------------------------------------------------------------------------------
Total liabilities and
shareholders' equity $34,421,541 $30,502,534 $27,820,987
=====================================================================================================
Average interest rate spread 3.71 3.81 3.75
Net yield on earning assets 4.30 % 4.44 % 4.41%
===============================
Taxable equivalent adjustment
Income / Expense Change due to
- ---------------------------------------------------------------------------------------------- Increase ---------------------
1998 1997 1996 (Decrease) Rate Volume
- ------------------------------------------------------------------------------------------------------------------------------------
(Dollars in thousands)
Assets
Securities (1):
U.S. Treasury, government and other (5) $ 565,106 $ 514,148 $ 458,703 $ 50,958 $ (2,921) $ 53,879
States and political subdivisions 19,853 19,007 21,186 846 (105) 951
- ------------------------------------------------------------------------------------------------------------------------------------
Total securities (5) 584,959 533,155 479,889 51,804 (3,026) 54,830
Other earning assets (2) 11,086 6,428 8,909 4,658 (234) 4,892
Loans and leases, net
of unearned income (1)(3)(4)(5) 2,103,436 1,907,325 1,716,680 196,111 (32,570) 228,681
- ------------------------------------------------------------------------------------------------------------------------------------
Total earning assets 2,699,481 2,446,908 2,205,478 252,573 (35,830) 288,403
- ------------------------------------------------------------------------------------------------------------------------------------
Non-earning assets
- ---------------------------------------------------------
Total assets
- ---------------------------------------------------------
Liabilities and Shareholders' Equity
Interest-bearing deposits:
Savings and interest-checking 36,942 43,104 48,992 (6,162) 597 (6,759)
Money rate savings 176,537 151,276 118,143 25,261 (4,372) 29,633
Other time deposits 640,636 632,518 628,935 8,118 (9,015) 17,133
- ------------------------------------------------------------------------------------------------------------------------------------
Total interest-bearing deposits 854,115 826,898 796,070 27,217 (12,790) 40,007
Short-term borrowed funds 218,617 168,785 130,508 49,832 (797) 50,629
Long-term debt 243,546 175,113 121,658 68,433 (4,783) 73,216
- ------------------------------------------------------------------------------------------------------------------------------------
Total interest-bearing liabilities 1,316,278 1,170,796 1,048,236 145,482 (18,370) 163,852
- ------------------------------------------------------------------------------------------------------------------------------------
Noninterest-bearing deposits
Other liabilities
Shareholders' equity
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities and
shareholders' equity
========================================================
Average interest rate spread
Net yield on earning assets $1,383,203 $1,276,112 $1,157,242 $107,091 $(17,460) $124,551
========== ========== ========== ======== ========= ========
Taxable equivalent adjustment $ 66,074 $ 54,454 $ 37,33
========== ========== =========
1997 v. 1996
------------------------------------------------
Change due to
Increase -----------------------------------
(Decrease) Rate Volume
Assets
Securities (1):
U.S. Treasury, government and other (5) $ 55,445 $ 13,673 $ 41,772
States and political subdivisions (2,179) (481) (1,698)
---------- ----------- -----------
Total securities (5) 53,266 13,192 40,074
Other earning assets (2) (2,481) 529 (3,010)
Loans and leases, net
of unearned income (1)(3)(4)(5) 190,645 12,150 178,495
---------- ----------- -----------
Total earning assets 241,430 25,871 215,559
---------- ----------- -----------
Non-earning assets
Total assets
Liabilities and Shareholders' Equity
Interest-bearing deposits:
Savings and interest-checking (5,888) (2,327) (3,561)
Money rate savings 33,133 9,302 23,831
Other time deposits 3,583 (4,659) 8,242
---------- ----------- -----------
Total interest-bearing deposits 30,828 2,316 28,512
Short-term borrowed funds 38,277 (206) 38,483
Long-term debt 53,455 1,670 51,785
---------- ----------- -----------
Total interest-bearing liabilities 122,560 3,780 118,780
---------- ----------- -----------
Noninterest-bearing deposits
Other liabilities
Shareholders' equity
Total liabilities and
shareholders' equity
Average interest rate spread
Net yield on earning assets $ 118,870 $ 22,091 $ 96,779
========== =========== ===========
Taxable equivalent adjustment
(1) Yields related to securities, loans and leases exempt from both Federal and
state income taxes, Federal income taxes only or state income taxes only
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.
Table 13
Noninterest Income
% Change
Years Ended December 31, ----------------------
---------------------------------------------- 1998 v. 1997 v.
1998 1997 1996 1997 1996
----------- ---------- ---------- -------- -------
(Dollars in thousands)
Service charges on deposits $ 174,847 $ 154,729 $ 137,972 13.0 % 12.1 %
Mortgage banking income 79,670 50,628 40,494 57.4 25.0
Trust income 40,937 35,378 31,781 15.7 11.3
Agency insurance commissions 52,186 40,148 27,541 30.0 45.8
Other insurance commissions 12,599 13,697 13,288 (8.0) 3.1
Securities gains (losses), net 7,682 4,139 3,820 85.6 8.4
Bankcard fees and merchant discounts 30,140 23,955 19,292 25.8 24.2
Investment brokerage commissions 25,537 20,180 17,284 26.5 16.8
Other bank service fees and commissions 57,268 46,439 29,619 23.3 56.8
International income 4,563 3,685 3,206 23.8 14.9
Amortization of negative goodwill 6,243 6,180 6,238 1.0 (.9)
Other noninterest income 51,957 73,296 22,872 (29.1) 220.5
----------- ----------- ---------- -------- -------
Total noninterest income $ 543,629 $ 472,454 $ 353,407 15.1 % 33.7 %
=========== =========== ========== ======== =======
Table 14
Noninterest Expense
% Change
Years Ended December 31, ---------------------
------------------------------------------ 1998 v. 1997 v.
1998 1997 1996 1997 1996
------------ ----------- ---------- ------- -------
(Dollars in thousands)
Salaries and wages $ 419,158 $ 390,870 $ 343,650 7.2 % 13.7 %
Pension and other employee benefits 95,388 100,530 83,070 (5.1) 21.0
Net occupancy expense on bank premises 62,781 81,734 61,795 (23.2) 32.3
Furniture and equipment expense 99,095 87,536 72,393 13.2 20.9
Federal deposit insurance premiums 4,464 5,274 50,067 (15.4) (89.5)
Foreclosed property expense 2,280 3,454 2,625 (34.0) 31.6
Amortization of intangibles and
mortgage servicing rights 49,473 24,734 15,629 100.0 58.3
Software 10,266 14,267 11,107 (28.0) 28.5
Telephone 21,496 19,431 16,882 10.6 15.1
Donations 6,248 6,938 6,203 (9.9) 11.8
Advertising and public relations 26,569 27,082 25,016 (1.9) 8.3
Travel and transportation 10,462 8,966 7,556 16.7 18.7
Professional services 50,807 49,271 28,317 3.1 74.0
Supplies 17,200 16,532 15,636 4.0 5.7
Loan and lease expense 25,514 41,687 32,424 (38.8) 28.6
Deposit related expense 14,955 16,823 14,305 (11.1) 17.6
Other noninterest expenses 103,764 119,748 82,446 (13.3) 45.2
----------- ----------- --------- ------- --------
Total noninterest expense $ 1,019,920 $1,014,877 $ 869,121 0.5 % 16.8 %
=========== ========== ========= ======= ========
Table 15
Interest Rate Sensitivity Gap Analysis
December 31, 1998
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* $ 2,275,329 $ 2,220,729 $2,944,019 $1,442,603 $ 8,882,680
Federal funds sold and securities purchased
under resale agreements or similar arrangements 103,216 - - - 103,216
Loans and leases** 14,873,061 4,894,891 2,805,893 2,144,623 24,718,468
------------ ------------ ----------- ----------- -----------
Total interest-earning assets 17,251,606 7,115,620 5,749,912 3,587,226 33,704,364
------------ ------------ ----------- ----------- -----------
Liabilities
Savings and interest checking*** - 1,070,095 356,698 356,698 1,783,491
Money rate savings*** 3,510,778 3,510,778 - - 7,021,556
Other time deposits 8,296,855 2,620,807 293,496 137,925 11,349,083
Foreign deposits 638,676 - - - 638,676
Federal funds purchased and securities sold under
repurchase agreements or similar arrangements 2,367,173 50,870 169,727 - 2,587,770
Long-term debt and other borrowings 2,990,753 760,464 470,812 1,862,331 6,084,360
------------ ------------ ----------- ----------- -----------
Total interest-bearing liabilities 17,804,235 8,013,014 1,290,733 2,356,954 $29,464,936
------------ ------------ ----------- ----------- ===========
------------ ------------ ----------- -----------
Asset-liability gap (552,629) (897,394) 4,459,179 1,230,272
------------ ------------ ----------- -----------
Derivatives affecting interest rate
sensitivity:
Pay fixed interest rate swaps 169,946 (7,633) (98,236) (64,077)
Receive fixed interest rate swaps (740,000) 175,000 305,000 260,000
Caps, floors and collars (747,250) 500,000 247,250 -
------------ ------------ ----------- -----------
(1,317,304) 667,367 454,014 195,923
------------ ------------ ----------- -----------
Interest rate sensitivity gap $(1,869,933) $ (230,027) $4,913,193 $1,426,195
============ ============ =========== ===========
Cumulative interest rate
sensitivity gap $(1,869,933) $(2,099,960) $2,813,233 $4,239,428
============ ============ =========== ===========
- ------------------------------------------------------------
* Securities based on amortized cost.
** Loans and leases include loans held for sale and are net of unearned
income.
*** Projected runoff of deposits that do not have a contractual maturity date
was computed based upon decay rate assumptions developed by bank regulators
to assist banks in addressing FDICIA rule 305.
Table 16
Capital - Components and Ratios
December 31,
--------------------------------------
1998 1997
--------------- ----------------
(Dollars in thousands)
Tier 1 capital $ 2,508,490 $ 2,342,982
Tier 2 capital 1,120,802 769,309
--------------- ----------------
Total regulatory capital $ 3,629,292 $ 3,112,291
=============== ================
Risk-based capital ratios:
Tier 1 capital 10.3 % 10.7 %
Total regulatory capital 15.0 14.2
Tier 1 leverage ratio 7.0 7.5
Table 17
Quarterly Common Stock Summary
1998 1997
---------------------------------------- ------------------------------------------
Sales Prices Sales Prices
-------------------------- Dividends --------------------------- Dividends
High Low Last Paid High Low Last Paid
-------------------------- --------- --------------------------- -----------
Quarter Ended:
March 31 $ 33.84 $ 29.03 $ 33.84 $ .155 $ 20.38 $ 17.63 $ 18.63 $ .135
June 30 34.06 32.03 33.81 .155 23.56 17.88 22.50 .135
September 30 36.03 28.00 29.94 .175 27.56 22.66 26.72 .155
December 31 40.63 27.31 40.31 .175 32.50 25.97 32.03 .155
Year 40.63 27.31 40.31 .66 32.50 17.63 32.03 .58
Table 18
Quarterly Financial Summary - Unaudited
1998
----------------------------------------------------------------
Fourth Third Second First
Quarter Quarter Quarter Quarter
------------- ------------ ------------ ------------
(Dollars in thousands, except per share data)
Consolidated Summary of Operations:
Net interest income FTE $ 360,655 $ 348,166 $ 339,477 $ 334,905
FTE adjustment 18,003 16,490 16,016 15,565
Provision for loan and lease losses 22,765 21,229 23,038 23,438
Securities gains (losses), net 1,774 2,114 1,293 2,501
Other noninterest income 140,787 138,863 133,374 122,923
Noninterest expense 269,053 257,943 247,908 245,016
Provision for income taxes 60,761 61,578 59,143 55,865
------------ ------------ ------------ ------------
Net income $ 132,634 $ 131,903 $ 128,039 $ 120,445
============ ============ ============ ============
Diluted net income per share $ .42 $ .43 $ .41 $ .39
============ ============ ============ ============
Selected Average Balances:
Assets $ 36,178,328 $ 34,038,818 $ 34,148,967 $ 33,292,545
Securities, at amortized cost 9,151,670 8,376,487 8,630,609 8,511,489
Loans and leases * 24,306,516 23,308,710 23,146,329 22,382,333
Total earning assets 33,622,182 31,851,473 31,993,113 31,130,401
Deposits 23,754,754 22,532,834 22,562,066 22,106,755
Short-term borrowed funds 4,153,424 3,941,189 4,495,242 4,145,971
Long-term debt 4,749,282 4,393,450 3,903,859 3,890,169
Total interest-bearing liabilities 29,322,351 27,726,057 27,891,635 27,238,029
Shareholders' equity 2,938,976 2,621,143 2,631,041 2,650,444
1997
--------------------------------------------------------------------
Fourth Third Second First
Quarter Quarter Quarter Quarter
------------ ------------ ------------- --------------
(Dollars in thousands, except per share data)
Consolidated Summary of Operations:
Net interest income FTE $ 325,579 $ 322,799 $ 322,837 $ 304,897
FTE adjustment 15,680 14,605 13,422 10,747
Provision for loan and lease losses 31,070 22,885 26,497 22,228
Securities gains (losses), net 1,340 1,053 (930) 2,676
Other noninterest income 113,463 153,187 101,670 99,995
Noninterest expense 255,885 326,191 219,408 213,393
Provision for income taxes 44,518 42,167 56,292 55,291
------------ ------------ ------------- --------------
Net income $ 93,229 $ 71,191 $ 107,958 $ 105,909
============ ============ ============= ==============
Diluted net income per share $ .31 $ .23 $ .35 $ .34
============ ============ ============= ==============
Selected Average Balances:
Assets $ 31,712,650 $ 30,866,095 $ 30,485,739 $ 29,306,418
Securities, at amortized cost 8,003,066 7,975,858 7,908,915 7,527,059
Loans and leases * 21,592,645 21,015,439 20,752,213 19,987,149
Total earning assets 29,764,006 29,086,031 28,771,667 27,638,314
Deposits 21,662,264 21,599,024 21,837,646 21,285,782
Short-term borrowed funds 3,631,430 3,343,621 3,102,596 2,736,641
Long-term debt 3,437,017 3,134,330 2,736,974 2,500,022
Total interest-bearing liabilities 25,762,722 25,187,410 24,825,925 23,792,322
Shareholders' equity 2,473,627 2,447,203 2,460,304 2,435,228
* Loans and leases are net of unearned income and include loans held for
sale.