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, COMPOUND
1996 1995 1994 1993 1992 GROWTH RATE
Summary of Operations
Interest income........................ $ 1,934,570 $ 1,880,157 $ 1,586,515 $ 1,427,684 $ 1,436,751 7.7%
Interest expense....................... 926,870 948,839 678,571 590,709 686,922 7.8
Net interest income.................... 1,007,700 931,318 907,944 836,975 749,829 7.7
Provision for loan and lease losses.... 62,511 41,924 23,730 59,829 76,030 (4.8)
Net interest income after provision for
loan and lease losses................ 945,189 889,394 884,214 777,146 673,799 8.8
Noninterest income..................... 353,468 271,710 278,339 268,856 229,736 11.4
Noninterest expense.................... 808,550 820,718 740,234 791,060 625,875 6.6
Income before income taxes............. 490,107 340,386 422,319 254,942 277,660 15.3
Provision for income taxes............. 159,932 113,118 147,003 95,229 97,290 13.2
Income before cumulative effect of
changes in accounting principles..... 330,175 227,268 275,316 159,713 180,370 16.3
Less: cumulative effect of changes in
accounting principles, net of
income taxes....................... -- -- -- (32,762) -- NM
Net income............................. $ 330,175 $ 227,268 $ 275,316 $ 126,951 $ 180,370 16.3
Per Common Share
Average shares outstanding (000's)
Primary.............................. 138,152 137,129 135,332 130,419 123,271 2.9
Fully diluted........................ 139,518 142,154 140,382 136,303 130,938 1.6
Primary earnings
Income before cumulative effect...... $ 2.39 $ 1.62 $ 2.00 $ 1.18 $ 1.43 13.7
Less: cumulative effect.............. -- -- -- (0.25) -- NM
Net income......................... $ 2.39 $ 1.62 $ 2.00 $ 0.93 $ 1.43 13.7
Fully diluted
Income before cumulative effect...... $ 2.37 $ 1.60 $ 1.96 $ 1.17 $ 1.38 14.4
Less: cumulative effect.............. -- -- -- (0.24) -- NM
Net income......................... $ 2.37 $ 1.60 $ 1.96 $ 0.93 $ 1.38 14.4
Cash dividends declared................ $ 1.00 $ 0.86 $ 0.74 $ 0.64 $ 0.50 18.9
Shareholders' equity................... 15.13 14.32 12.79 12.06 11.95 6.1
Average Balance Sheets
Securities at carrying value........... $ 6,137,748 $ 6,244,509 $ 6,050,612 $ 5,401,762 $ 4,733,403 6.7
Loans and leases*...................... 16,958,876 16,286,928 14,711,409 13,155,522 11,978,837 9.1
Other assets........................... 1,673,478 1,694,578 1,707,055 1,626,305 1,567,185 1.7
Total assets......................... $24,770,102 $24,226,015 $22,469,076 $20,183,589 $18,279,425 7.9
Deposits............................... $18,577,368 $17,691,264 $17,318,921 $16,260,492 $15,167,080 5.2
Other liabilities...................... 2,346,374 3,507,910 2,724,841 1,687,474 1,535,422 11.2
Long-term debt......................... 1,861,380 1,130,460 679,654 598,753 154,113 86.4
Common shareholders' equity............ 1,969,821 1,824,036 1,671,517 1,562,727 1,357,005 9.8
Preferred shareholders' equity......... 15,159 72,345 74,143 74,143 65,805 NM
Total liabilities and shareholders'
equity.......................... $24,770,102 $24,226,015 $22,469,076 $20,183,589 $18,279,425 7.9
Period End Balances
Total assets........................... $25,707,646 $24,671,277 $23,497,824 $22,273,226 $18,979,348 7.9
Deposits............................... 19,003,340 18,321,708 17,458,085 17,594,408 15,674,867 4.9
Long-term debt......................... 2,054,040 1,386,910 913,060 839,631 424,102 48.3
Shareholders' equity................... 2,071,567 2,025,112 1,803,888 1,686,134 1,510,774 8.2
Selected Performance Ratios
Rate of return on:
Average total assets................. 1.33% 0.94% 1.23% 0.63% 0.99%
Average common shareholders' equity.. 16.73 12.18 16.16 7.79 12.95
Dividend payout........................ 41.84 53.09 37.00 68.82 34.97
Average equity to average assets....... 8.01 7.83 7.77 8.11 7.78
* Loans and leases are net of unearned income and the allowance for losses.
Amounts include loans held for sale.
NM -- Not meaningful.
37
TABLE 1
COMPOSITION OF AVERAGE TOTAL ASSETS
% CHANGE
1996 V. 1995 V.
1996 1995 1994 1995 1994
(DOLLARS IN THOUSANDS)
Securities*.................................................. $ 6,047,280 $ 6,142,707 $ 6,009,703 (1.6)% 2.2%
Federal funds sold and other earning assets.................. 84,167 148,373 177,316 (43.3) (16.3)
Loans and leases, net of unearned income**................... 17,186,046 16,507,428 14,919,264 4.1 10.6
Average earning assets....................................... 23,317,493 22,798,508 21,106,283 2.3 8.0
Non-earning assets........................................... 1,452,609 1,427,507 1,362,793 1.8 4.7
Average total assets......................................... $24,770,102 $24,226,015 $22,469,076 2.2% 7.8%
Average earning assets as percent of average total assets.... 94.1% 94.1% 93.9%
* Based on amortized cost.
** Includes loans held for sale based on lower of amortized cost or market.
Amounts are gross of the allowance for loan and lease losses.
38
TABLE 2
SECURITIES
DECEMBER 31, 1996
CARRYING VALUE AVERAGE YIELD (3)
(DOLLARS IN THOUSANDS)
U.S. Treasury, government and agency obligations (1)
Within one year........................................................................... $ 981,742 6.16%
One to five years......................................................................... 3,287,321 6.45
Five to ten years......................................................................... 153,668 6.55
After ten years........................................................................... 1,288,616 7.21
Total.................................................................................. 5,711,347 6.57
States and political subdivisions
Within one year........................................................................... 24,199 8.49
One to five years......................................................................... 116,143 8.77
Five to ten years......................................................................... 45,028 8.60
After ten years........................................................................... 3,132 9.56
Total.................................................................................. 188,502 8.71
Other securities
Within one year........................................................................... 100 6.24
One to five years......................................................................... 3,003 8.19
Five to ten years......................................................................... 185,556 6.68
After ten years........................................................................... 371 --
Total.................................................................................. 189,030 6.69
Securities with no stated maturity.......................................................... 96,150 8.10
Total securities (2)................................................................... $6,185,029 6.67%
(1) Included in U.S. Treasury, government and agency obligations are
mortgage-backed securities totaling $1.8 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,
the weighted-average holding period of the securities will be substantially
shorter because of the monthly return of principal and prepayments of
principal on certain securities.
(2) Includes securities held to maturity of $170.8 million disclosed at
amortized cost and securities available for sale of $6.0 billion disclosed
at estimated fair value.
(3) Taxable equivalent basis as applied to amortized cost.
39
TABLE 3
ASSET QUALITY
DECEMBER 31,
1996 1995 1994
(DOLLARS IN THOUSANDS)
Nonaccrual loans and leases*................................................................. $62,190 $68,634 $55,037
Foreclosed property.......................................................................... 27,945 18,886 19,517
Restructured loans........................................................................... -- -- 8,823
Nonperforming assets....................................................................... $90,135 $87,520 $83,377
Loans 90 days or more past due and still accruing.......................................... $41,742 $34,648 $29,063
ASSET QUALITY RATIOS
Nonaccrual loans and leases as a percentage of loans and leases............................ .35% .41% .35%
Nonperforming assets as a percentage of:
Total assets............................................................................ .35 .35 .35
Loans and leases plus foreclosed property............................................... .51 .52 .53
Net charge-offs as a percentage of average loans and leases................................ .30 .23 .15
Allowance for losses as a percentage of loans and leases................................... 1.30 1.30 1.36
Ratio of allowance for losses to:
Net charge-offs......................................................................... 4.47x 5.72x 9.74x
Nonaccrual loans and leases............................................................. 3.70 3.19 3.91
NOTE: Items referring to loans and leases are net of unearned income, gross of
the allowance and include loans held for sale.
* Includes $18.5 million of impaired loans at December 31, 1996. See Note
A in the "Notes to Consolidated Financial Statements."
40
TABLE 4
COMPOSITION OF AVERAGE DEPOSITS AND OTHER BORROWINGS
% CHANGE
YEARS ENDED DECEMBER 31, 1996 V. 1995 V.
1996 1995 1994 1995 1994
(DOLLARS IN THOUSANDS)
Savings, interest checking and MRS
sweeps............................. $ 3,776,497 17% $ 3,844,609 18% $ 4,053,916 20% (1.8)% (5.2)%
Money rate savings................... 2,193,438 10 2,223,493 10 2,599,541 13 (1.4) (14.5)
Other time deposits.................. 10,174,310 45 9,340,595 42 8,417,537 41 8.9 11.0
Total interest-bearing deposits...... 16,144,245 72 15,408,697 70 15,070,994 74 4.8 2.2
Noninterest-bearing demand
deposits........................... 2,433,123 11 2,282,567 10 2,247,927 11 6.6 1.5
Total deposits....................... 18,577,368 83 17,691,264 80 17,318,921 85 5.0 2.1
Short-term borrowed funds............ 2,029,293 9 3,184,338 14 2,455,658 12 (36.3) 29.7
Long-term debt....................... 1,861,380 8 1,130,460 6 679,654 3 64.7 66.3
Total deposits and other
borrowings......................... $22,468,041 100% $22,006,062 100% $20,454,233 100% 2.1% 7.6%
41
TABLE 5
NET INTEREST INCOME AND RATE / VOLUME ANALYSIS
FOR THE YEARS ENDED DECEMBER 31, 1996, 1995 AND 1994
FULLY TAXABLE
EQUIVALENT -- (DOLLARS IN P AVERAGE BALANCE YIELD / RATE INCOME / EXPENSE
THOUSANDS) 1996 1995 1994 1996 1995 1994 1996 1995
ASSETS
Securities (1):
U.S. Treasury,
government and other
(5).................. $ 5,843,116 $ 5,907,342 $ 5,741,728 6.53% 6.08% 5.65% $ 381,475 $ 359,182
States and political
subdivisions......... 204,164 235,365 267,975 8.98 9.00 8.95 18,333 21,173
Total securities
(5)................ 6,047,280 6,142,707 6,009,703 6.61 6.19 5.79 399,808 380,355
Other earning assets
(2).................... 84,167 148,373 177,316 5.38 5.90 4.14 4,530 8,760
Loans and leases, net of
unearned income
(1)(3)(4)(5)........... 17,186,046 16,507,428 14,919,264 9.11 9.24 8.46 1,566,378 1,526,083
Total earning
assets............. 23,317,493 22,798,508 21,106,283 8.45 8.40 7.66 1,970,716 1,915,198
Non-earning assets... 1,452,609 1,427,507 1,362,793
Total assets....... $24,770,102 $24,226,015 $22,469,076
LIABILITIES AND
SHAREHOLDERS' EQUITY
Interest-bearing
deposits:
Savings, interest-
checking and MRS
sweeps............. $ 3,776,497 $ 3,844,609 $ 4,053,916 1.68 2.21 2.19 63,476 85,078
Money rate savings... 2,193,438 2,223,493 2,599,541 3.84 3.81 2.78 84,189 84,700
Other time
deposits........... 10,174,310 9,340,595 8,417,537 5.55 5.57 4.40 564,826 519,991
Total
interest-bearing
deposits......... 16,144,245 15,408,697 15,070,994 4.41 4.48 3.53 712,491 689,769
Short-term borrowed
funds.................. 2,029,293 3,184,338 2,455,658 5.26 5.91 4.32 106,777 188,301
Long-term debt........... 1,861,380 1,130,460 679,654 5.78 6.26 6.05 107,602 70,769
Total
interest-bearing
liabilities...... 20,034,918 19,723,495 18,206,306 4.63 4.81 3.73 926,870 948,839
Noninterest-bearing
demand
deposits......... 2,433,123 2,282,567 2,247,927
Other
liabilities...... 317,081 323,572 269,183
Shareholders'
equity........... 1,984,980 1,896,381 1,745,660
Total liabilities
and shareholders'
equity........... $24,770,102 $24,226,015 $22,469,076
Average interest rate
spread................. 3.82 3.59 3.93
Net yield on earning
assets................. 4.48% 4.24% 4.45% $1,043,846 $ 966,359
Taxable equivalent
adjustment............. $ 36,146 $ 35,041
FULLY TAXABLE 1996 V. 1995 1995 V. 1994
EQUIVALENT -- (DOLLARS IN INCREASE CHANGE DUE TO INCREASE CHANGE DUE TO
THOUSANDS) 1994 (DECREASE) RATE VOLUME (DECREASE) RATE VOLUME
ASSETS
Securities (1):
U.S. Treasury,
government and other
(5).................. $ 324,251 $ 22,293 $ 26,235 $ (3,942) $ 34,931 $ 25,382 $ 9,549
States and political
subdivisions......... 23,975 (2,840) (38) (2,802) (2,802) 131 (2,933)
Total securities
(5)................ 348,226 19,453 26,197 (6,744) 32,129 25,513 6,616
Other earning assets
(2).................... 7,348 (4,230) (717) (3,513) 1,412 2,753 (1,341)
Loans and leases, net of
unearned income
(1)(3)(4)(5)........... 1,261,997 40,295 (21,783) 62,078 264,086 123,081 141,005
Total earning
assets............. 1,617,571 55,518 3,697 51,821 297,627 151,347 146,280
Non-earning assets...
Total assets.......
LIABILITIES AND
SHAREHOLDERS' EQUITY
Interest-bearing
deposits:
Savings, interest-
checking and MRS
sweeps............. 88,749 (21,602) (20,120) (1,482) (3,671) 952 (4,623)
Money rate savings... 72,342 (511) 639 (1,150) 12,358 23,910 (11,552)
Other time
deposits........... 370,215 44,835 (1,453) 46,288 149,776 106,027 43,749
Total
interest-bearing
deposits......... 531,306 22,722 (20,934) 43,656 158,463 130,889 27,574
Short-term borrowed
funds.................. 106,174 (81,524) (18,995) (62,529) 82,127 45,448 36,679
Long-term debt........... 41,091 36,833 (5,791) 42,624 29,678 1,506 28,172
Total
interest-bearing
liabilities...... 678,571 (21,969) (45,720) 23,751 270,268 177,843 92,425
Noninterest-bearing
demand
deposits.........
Other
liabilities......
Shareholders'
equity...........
Total liabilities
and shareholders'
equity...........
Average interest rate
spread.................
Net yield on earning
assets................. $ 939,000 $ 77,487 $ 49,417 $ 28,070 $ 27,359 $(26,496) $ 53,855
Taxable equivalent
adjustment............. $ 31,056
(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.
42
TABLE 6
NONINTEREST INCOME
% CHANGE
1996 1995
YEARS ENDED DECEMBER 31, V. V.
1996 1995 1994 1995 1994
(DOLLARS IN THOUSANDS)
Service charges on deposits............................................... $132,180 $113,664 $108,980 16.3% 4.3%
Mortgage banking income................................................... 39,845 31,218 28,813 27.6 8.3
Trust income.............................................................. 28,794 23,872 22,343 20.6 6.8
Agency insurance commissions.............................................. 26,859 19,306 16,151 39.1 19.5
Other insurance commissions............................................... 12,822 12,384 11,865 3.5 4.4
Securities gains (losses), net............................................ 3,090 (18,589) 3,028 NM NM
Bankcard fees and merchange discounts..................................... 35,729 30,990 23,977 15.3 29.2
Investment brokerage commissions.......................................... 17,069 10,103 9,619 68.9 5.0
Other bank service fees and commissions................................... 26,752 22,125 23,443 20.9 (5.6)
International income...................................................... 3,206 2,895 2,600 10.7 11.3
Amortization of negative goodwill......................................... 6,238 6,239 6,283 (.0) (.7)
Other noninterest income.................................................. 20,884 17,503 21,237 19.3 (17.6)
Total noninterest income................................................ $353,468 $271,710 $278,339 30.1% (2.4)%
NM -- not meaningful.
TABLE 7
NONINTEREST EXPENSE
% CHANGE
1996 1995
YEARS ENDED DECEMBER 31, V. V.
1996 1995 1994 1995 1994
(DOLLARS IN THOUSANDS)
Salaries and wages....................................................... $313,585 $349,539 $303,196 (10.3)% 15.3%
Pension and other employee benefits...................................... 73,465 74,764 81,842 (1.7) (8.6)
Net occupancy expense on bank premises................................... 56,491 59,446 54,638 (5.0) 8.8
Furniture and equipment expense.......................................... 65,598 66,743 52,735 (1.7) 26.6
Federal deposit insurance premiums....................................... 44,047 26,859 39,253 64.0 (31.6)
Foreclosed property expense.............................................. 2,470 3,704 5,098 (33.3) (27.3)
Amortization expense on intangibles and mortgage servicing rights........ 14,534 12,305 10,090 18.1 22.0
Software................................................................. 11,074 12,479 8,330 (11.3) 49.8
Telephone................................................................ 15,788 14,978 13,243 5.4 13.1
Donations................................................................ 5,760 7,686 4,530 (25.1) 69.7
Advertising and public relations......................................... 23,716 16,004 14,655 48.2 9.2
Travel................................................................... 7,332 7,156 6,170 2.5 16.0
Professional services.................................................... 25,609 23,894 16,771 7.2 42.5
Supplies................................................................. 14,196 20,326 12,321 (30.2) 65.0
Loan and lease expense................................................... 32,090 24,844 19,448 29.2 27.7
Deposit related expense.................................................. 14,165 12,780 13,466 10.8 (5.1)
Other noninterest expenses............................................... 88,630 87,211 84,448 1.6 3.3
Total noninterest expense.............................................. $808,550 $820,718 $740,234 (1.5)% 10.9%
43
TABLE 8
INTEREST RATE SENSITIVITY GAP ANALYSIS
DECEMBER 31, 1996
EXPECTED REPRICING OR MATURITY DATE
ONE TO
WITHIN ONE THREE THREE TO AFTER FIVE
YEAR YEARS FIVE YEARS YEARS TOTAL
(DOLLARS IN THOUSANDS)
ASSETS
Securities and other interest-earning assets*...... $ 1,645,785 $2,085,479 $1,525,771 $ 909,784 $ 6,166,819
Federal funds sold and securities purchased under
resale agreements or similar arrangements....... 84,940 -- -- -- 84,940
Loans and leases..................................... 11,141,786 3,808,613 1,971,620 824,538 17,746,557
TOTAL INTEREST-EARNING ASSETS........................ 12,872,511 5,894,092 3,497,391 1,734,322 23,998,316
LIABILITIES
Time deposits...................................... 8,272,379 1,584,335 277,051 48,735 10,182,500
Savings and interest checking**.................... -- 1,215,877 405,292 405,293 2,026,462
Money rate savings**............................... 2,085,475 2,085,474 -- -- 4,170,949
Federal funds purchased............................ 779,995 -- -- -- 779,995
Other borrowings................................... 2,522,465 141,471 507,703 383,230 3,554,869
TOTAL INTEREST-BEARING LIABILITIES................... 13,660,314 5,027,157 1,190,046 837,258 20,714,775
ASSET-LIABILITY GAP.................................. (787,803) 866,935 2,307,345 897,064
DERIVATIVES AFFECTING INTEREST RATE SENSITIVITY
Pay fixed interest rate swaps...................... 288,629 (268,817) (15,520) (4,292)
Receive fixed interest rate swaps.................. (450,000) 200,000 -- 250,000
Basis swaps........................................ (250,000) 250,000 -- --
Floors............................................. (105,000) 105,000 -- --
INTEREST RATE SENSITIVITY GAP........................ $(1,304,174) $1,153,118 $2,291,825 $1,142,772
CUMULATIVE INTEREST RATE SENSITIVITY GAP............. $(1,304,174) $ (151,056) $2,140,769 $3,283,541
* Securities based on amortized cost.
** Projected runoff of non-maturity deposits was computed based upon decay rate
assumptions developed by bank regulators to assist banks in addressing FDICIA
rule 305.
TABLE 9
CAPITAL -- COMPONENTS AND RATIOS
DECEMBER 31,
1996 1995
(DOLLARS IN THOUSANDS)
Tier 1 capital................................................ $1,992,527 $1,926,829
Tier 2 capital................................................ 464,489 188,983
Total regulatory capital...................................... $2,457,016 $2,115,812
Risk-based capital ratios:
Tier 1 capital.............................................. 11.5% 12.7%
Total regulatory capital.................................... 14.2 14.0
Tier 1 leverage ratio....................................... 7.8 7.8
44
TABLE 10
SELECTED EQUITY DATA AND RATIOS
DECEMBER 31,
1996 1995 1994
Book value per common share at year end.................................. $15.13 $14.32 $12.79
Book value per common share percentage increase over prior year end...... 5.66% 11.96% 5.56%
Common dividends per share as a percentage increase over prior year...... 16.28 16.22 15.63
Equity at year end to year end:
Total assets........................................................... 8.06 8.21 7.68
Net loans and leases *................................................. 11.83 12.22 11.58
Deposits............................................................... 10.90 11.05 10.34
Equity and long-term debt.............................................. 50.21 59.35 66.39
* Amounts are net of unearned income and the allowance for loan and lease losses
and include loans held for sale.
TABLE 11
QUARTERLY COMMON STOCK SUMMARY
1996 1995
SALES PRICES DIVIDENDS SALES PRICES DIVIDENDS
HIGH LOW LAST PAID HIGH LOW LAST PAID
Quarter Ended
March 31.................................. $29.75 $25.88 $27.75 $ .23 $22.38 $18.88 $19.88 $ .20
June 30................................... 31.75 28.88 31.75 .23 24.13 19.88 24.00 .20
September 30.............................. 33.88 28.63 33.25 .27 27.13 23.63 26.25 .23
December 31............................... 36.75 33.38 36.25 .27 27.00 25.63 26.25 .23
Year................................... 36.75 25.88 36.25 1.00 27.13 18.88 26.25 .86
45
TABLE 12
QUARTERLY FINANCIAL SUMMARY -- UNAUDITED
1996 1995
FOURTH THIRD SECOND FIRST FOURTH THIRD SECOND
QUARTER QUARTER QUARTER QUARTER QUARTER QUARTER QUARTER
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
Consolidated Summary of
Operations
Net interest income
FTE................. $ 270,792 $ 262,119 $ 259,913 $ 251,022 $ 248,210 $ 241,740 $ 240,051
FTE adjustment........ 9,755 8,831 8,967 8,593 9,194 9,150 8,589
Provision for loan and
lease losses........ 18,350 15,400 15,161 13,600 14,052 9,009 8,944
Securities gains
(losses), net....... 2,681 705 (95) (201) 133 1,119 0
Other noninterest
income.............. 92,377 88,517 87,248 82,236 75,200 74,974 70,765
Noninterest expense... 206,228 226,770 189,369 186,183 177,805 181,121 197,057
Provision for income
taxes............... 41,533 31,999 44,449 41,951 38,671 40,526 30,976
Net income............ $ 89,984 $ 68,341 $ 89,120 $ 82,730 $ 83,821 $ 78,027 $ 65,250
Fully diluted net
income per share.... $ .65 $ .49 $ .64 $ .59 $ .59 $ .55 $ .46
Selected Average
Balances
Assets................ $25,452,779 $24,926,111 $24,519,336 $24,172,965 $24,574,430 $24,713,126 $24,220,148
Securities, at
amortized cost...... 6,306,888 6,263,001 5,834,404 5,779,706 6,145,132 6,251,818 6,159,931
Loans and leases *.... 17,450,217 17,185,125 17,217,223 16,888,726 16,871,005 16,817,942 16,421,316
Total earning
assets.............. 23,897,386 23,479,956 23,120,326 22,764,248 23,174,129 23,218,818 22,782,969
Deposits.............. 19,039,282 18,803,569 18,324,501 18,134,559 17,841,183 17,807,359 17,732,319
Short-term borrowed
funds............... 1,888,252 1,857,538 2,141,579 2,233,239 3,041,775 3,319,567 3,384,297
Long-term debt........ 2,164,007 1,979,930 1,782,464 1,514,490 1,379,733 1,312,918 912,642
Total interest-bearing
liabilities......... 20,554,985 20,205,493 19,830,232 19,541,370 19,817,903 20,177,006 19,794,095
Shareholders'
equity.............. 2,048,895 1,969,944 1,950,958 1,969,586 1,987,273 1,919,322 1,869,645
FIRST
QUARTER
Consolidated Summary of
Operations
Net interest income
FTE................. $ 236,358
FTE adjustment........ 8,108
Provision for loan and
lease losses........ 9,919
Securities gains
(losses), net....... (19,841)
Other noninterest
income.............. 69,360
Noninterest expense... 264,735
Provision for income
taxes............... 2,945
Net income............ $ 170
Fully diluted net
income per share.... $ --
Selected Average
Balances
Assets................ $23,438,575
Securities, at
amortized cost...... 6,011,277
Loans and leases *.... 15,959,646
Total earning
assets.............. 22,054,823
Deposits.............. 17,377,826
Short-term borrowed
funds............... 3,035,990
Long-term debt........ 909,374
Total interest-bearing
liabilities......... 19,138,800
Shareholders'
equity.............. 1,824,064
* Loans and leases are net of unearned income and include loans held for sale.
46
TABLE 13
SELECTED FINANCIAL DATA OF BANKING SUBSIDIARIES
AS OF / FOR THE YEARS ENDED DECEMBER 31, 1996, 1995 AND 1994
BB&T-NC BB&T-SC BB&T-VA
1996 1995 1994 1996 1995 1994 1996 1995
(DOLLARS IN THOUSANDS)
Total assets............ $20,652,519 $19,654,218 $18,450,078 $4,213,458 $4,179,955 $4,405,560 $790,955 $737,462
Securities.............. 4,962,941 4,970,762 4,633,799 1,034,385 1,055,622 1,135,926 147,019 154,358
Loans and leases, net of
unearned income*...... 14,149,983 13,213,131 12,284,092 2,901,930 2,928,298 2,937,099 550,218 505,767
Deposits................ 15,683,080 14,856,949 13,769,521 3,336,711 3,255,945 3,251,491 690,318 669,000
Shareholder's equity.... 1,601,950 1,380,924 1,341,593 399,965 385,481 325,459 67,039 60,734
Net interest income..... 773,019 710,338 690,742 173,235 166,764 169,934 35,144 31,231
Provision for loan and
lease losses.......... 44,675 31,264 11,053 8,405 5,518 7,741 2,550 1,910
Noninterest income...... 333,119 238,050 231,549 57,729 58,199 47,432 10,296 4,650
Noninterest expense..... 689,969 659,681 586,643 134,200 119,931 127,146 24,839 25,965
Net income.............. 250,956 172,970 212,586 56,489 62,319 49,830 11,791 4,853
1994
Total assets............ $700,343
Securities.............. 187,461
Loans and leases, net of
unearned income*...... 450,798
Deposits................ 628,750
Shareholder's equity.... 47,865
Net interest income..... 28,863
Provision for loan and
lease losses.......... 2,600
Noninterest income...... 8,793
Noninterest expense..... 24,832
Net income.............. 7,011
* Includes loans held for sale.
TABLE 14
COMPOSITION OF LOAN AND LEASE PORTFOLIO *
DECEMBER 31,
1996 1995 1994 1993 1992
(DOLLARS IN THOUSANDS)
Loans --
Commercial, financial and agricultural......... $ 2,715,363 $ 2,395,084 $ 2,941,109 $ 2,303,554 $ 2,111,329
Real estate -- construction and land
development................................. 1,525,964 1,175,839 889,033 870,112 762,290
Real estate -- mortgage........................ 10,110,927 10,200,968 9,220,222 8,431,729 7,018,374
Consumer....................................... 2,748,572 2,487,235 2,388,970 2,198,858 1,999,066
Loans held for investment................... 17,100,826 16,259,126 15,439,334 13,804,253 11,891,059
Loans held for sale......................... 228,333 261,364 141,676 707,973 447,399
Total loans............................... 17,329,159 16,520,490 15,581,010 14,512,226 12,338,458
Leases........................................... 576,991 376,152 304,544 225,312 170,358
Total loans and leases...................... $17,906,150 $16,896,642 $15,885,554 $14,737,538 $12,508,816
* Balances are gross of unearned income.
47
TABLE 15
SELECTED LOAN MATURITIES AND INTEREST SENSITIVITY *
DECEMBER 31, 1996
COMMERCIAL,
FINANCIAL
AND REAL ESTATE:
AGRICULTURAL CONSTRUCTION TOTAL
(DOLLARS IN THOUSANDS)
Fixed rate:
1 year or less (2).............................................................. $ 219,531 $ 227,320 $ 446,851
1-5 years....................................................................... 392,645 141,106 533,751
After 5 years................................................................... 88,206 34,235 122,441
Total........................................................................ 700,382 402,661 1,103,043
Variable rate:
1 year or less (2).............................................................. 972,701 761,028 1,733,729
1-5 years....................................................................... 939,705 345,087 1,284,792
After 5 years................................................................... 102,575 17,188 119,763
Total........................................................................ 2,014,981 1,123,303 3,138,284
Total loans and leases (1)................................................. $2,715,363 $ 1,525,964 $ 4,241,327
* Balances are gross of unearned income.
(1) The table excludes:
(i) consumer loans to individuals for household, family and other personal expenditures................. $ 2,748,572
(ii) real estate mortgage loans......................................................................... 10,110,927
(iii) loans held for sale............................................................................... 228,333
(iv) leases............................................................................................. 576,991
$13,664,823
(2) Includes loans due on demand.
Scheduled repayments are reported in the maturity category in which the
payment is due. Determinations of maturities are based upon contract terms. BB&T
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 renegotiated at that time.
48
TABLE 16
ALLOCATION OF RESERVE BY CATEGORY
DECEMBER 31,
1996 1995 1994 1993 1992
% LOANS % LOANS % LOANS % LOANS
IN EACH IN EACH IN EACH IN EACH
AMOUNT CATEGORY AMOUNT CATEGORY AMOUNT CATEGORY AMOUNT CATEGORY AMOUNT
(DOLLARS IN THOUSANDS)
Balance at end of period
applicable to:
Commercial, financial and
agricultural................ $ 30,272 15% $ 32,370 14% $ 40,340 19% $ 48,493 16% $ 34,963
Real estate:
Construction and land
development............... 14,645 9 16,436 7 13,522 6 15,004 6 13,706
Mortgage.................... 96,389 58 96,096 62 83,260 58 84,875 61 71,927
Real estate -- total........ 111,034 67 112,532 69 96,782 64 99,879 67 85,633
Consumer...................... 52,238 15 37,977 15 33,706 15 31,461 15 25,952
Leases........................ 3,679 3 3,443 2 906 2 1,218 2 1,313
Unallocated................... 32,847 -- 32,730 -- 43,709 -- 31,655 -- 27,066
Total....................... $ 230,070 100% $ 219,052 100% $ 215,443 100% $ 212,706 100% $ 174,927
% LOANS
IN EACH
CATEGORY
Balance at end of period
applicable to:
Commercial, financial and
agricultural................ 17%
Real estate:
Construction and land
development............... 6
Mortgage.................... 60
Real estate -- total........ 66
Consumer...................... 16
Leases........................ 1
Unallocated................... --
Total....................... 100%
TABLE 17
COMPOSITION OF ALLOWANCE FOR LOAN AND LEASE LOSSES
DECEMBER 31,
1996 1995 1994 1993 1992
(DOLLARS IN THOUSANDS)
Balance, beginning of period..................... $ 219,052 $ 215,443 $ 212,706 $ 176,743 $ 149,986
Charge-offs:
Commercial, financial and agricultural...... (9,341) (10,889) (11,655) (24,832) (28,623)
Real estate................................. (11,523) (12,005) (9,131) (11,844) (15,986)
Consumer.................................... (47,441) (29,556) (16,398) (16,510) (21,629)
Lease receivables........................... (768) (614) (647) (771) (1,428)
Total charge-offs......................... (69,073) (53,064) (37,831) (53,957) (67,666)
Recoveries:
Commercial, financial and agricultural...... 5,065 5,302 7,280 6,212 4,423
Real estate................................. 6,221 3,658 3,148 3,525 4,612
Consumer.................................... 6,158 5,394 4,996 4,267 3,679
Lease receivables........................... 136 395 295 149 188
Total recoveries.......................... 17,580 14,749 15,719 14,153 12,902
Net charge-offs.................................. (51,493) (38,315) (22,112) (39,804) (54,764)
Provision charged to expense................... 62,511 41,924 23,730 59,829 76,030
Allowance of loans acquired in purchase
transactions................................ -- -- 1,119 15,938 3,675
Balance, end of period........................... $ 230,070 $ 219,052 $ 215,443 $ 212,706 $ 174,927
Average loans and leases*........................ $17,186,046 $16,507,428 $14,919,264 $13,344,029 $12,139,046
Net charge-offs as a percentage of average loans
and leases..................................... 0.30% 0.23% 0.15% 0.30% 0.45%
* Loans and leases are net of unearned income and include loans held for sale.
49
TABLE 18
COMPOSITION OF SECURITIES PORTFOLIO
DECEMBER 31,
1996 1995 1994
(DOLLARS IN THOUSANDS)
Securities held to maturity (at amortized cost):
U.S. Treasury, government and agency obligations............................... $ 6,283 $ 41,570 $ 1,354,334
States and political subdivisions.............................................. 164,525 205,168 242,591
Mortgage-backed securities..................................................... -- 4,508 614,309
Other securities............................................................... -- 77 1,463
Total securities held to maturity................................................. 170,808 251,323 2,212,697
Securities available for sale (at estimated fair value):
U.S. Treasury, government and agency obligations............................... 3,954,039 4,788,132 3,370,444
States and political subdivisions.............................................. 23,977 22,115 16,918
Mortgage-backed securities..................................................... 1,751,025 1,007,062 342,027
Other securities............................................................... 285,180 153,991 118,619
Total securities available for sale............................................... 6,014,221 5,971,300 3,848,008
Total securities.................................................................... $ 6,185,029 $ 6,222,623 $ 6,060,705
50
TABLE 19
TIME DEPOSITS $100,000 AND OVER
DECEMBER 31, 1996
(DOLLARS IN
THOUSANDS)
Maturity:
Three months or less......................... $ 1,005,223
Four through six months...................... 510,133
Seven through twelve months.................. 447,699
Over twelve months........................... 356,996
TOTAL TIME DEPOSITS $100,000 AND OVER.......... $ 2,320,051
At December 31, 1996, the scheduled maturities of time deposits are $7.2
billion, $2.5 billion, $214.2 million, $151.7 million and $57.9 million for each
of the next five years. The maturities for 2002 and later years total $22.7
million.
TABLE 20
SHORT-TERM BORROWED FUNDS
(DOLLARS IN THOUSANDS)
The following information summarizes certain pertinent information for the
past three years on short-term borrowed funds:
YEARS ENDED DECEMBER 31,
1996 1995 1994
Maximum outstanding at any month-end during the year................................ $2,340,904 $3,902,581 $3,123,703
Average outstanding during the year................................................. 2,029,293 3,184,338 2,455,658
Average interest rate during the year............................................... 5.26% 5.91% 4.32%
Average interest rate at end of year................................................ 4.80 5.36 5.49
TABLE 21
CAPITAL ADEQUACY
REGULATORY BB&T
MINIMUMS CORPORATION BB&T-NC BB&T-SC BB&T-VA
Risk-based capital ratios:
Tier 1 capital (1)........................................... 4.0% 11.5% 10.8% 14.0% 11.7%
Total risk-based capital (2)................................. 8.0 14.2 12.1 15.2 12.9
Tier 1 leverage ratio (3).................................... 3.0 7.8 7.4 9.4 8.6
(1) Shareholders' equity less non-qualifying 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 ratio of fourth quarter average assets less
goodwill.
51