FORM 10-Q/A
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR QUARTERLY PERIOD ENDED MARCH 31, 2000 COMMISSION FILE NUMBER 1-2981
FIRSTAR CORPORATION
(Exact Name of Registrant as Specified in its Charter)
WISCONSIN 39-1940778
(State of Incorporation) (I.R.S. EMPLOYER Identification No.)
777 East Wisconsin Avenue, Milwaukee, Wisconsin 53202
Telephone Number (414) 765-4321
The registrant (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the precedeing 12 months and (2) has been subject to such filing
requirements for the past 90 days.
As of April 30, 2000, 969,308,967 shares of common stock were
outstanding.
FIRSTAR CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(dollars in thousands)
Three Months Ended
March 31
2000 1999
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Cash Flows from Operating Activities:
Net Income $ 307,799 $ 287,624
Adjustments:
Depreciation and amortization 38,355 48,825
Intangible amortization 30,185 30,314
Provision for loan losses 45,689 43,389
Net decrease in trading securities 0 20,118
Provision for deferred taxes 51,192 52,280
(Gain) / loss on sale of premises and equipment - net 3,394 (471)
Net gain on sale of assets (7,080) (3,627)
Gain on sale on loans originated for sale (10,280) (31,126)
Proceeds from sale of loans originated for sale 865,372 2,371,699
Mortgage loans originated for sale on the secondary market (899,221) (1,942,748)
Net change in other assets and liabilities (144,387) 158,025
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Total adjustments (26,781) 746,678
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Net cash provided by/(used in) operating activities 281,018 1,034,302
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Cash Flows from Investing Activities:
Proceeds from maturities of held-to-maturity securities 3,798 18,571
Proceeds from maturities of available-for-sale securities 326,933 1,383,067
Proceeds from sales of available-for-sale securities 1,249,969 1,114,620
Purchase of available-for-sale securities (2,063,794) (2,192,202)
Net increase in loans (1,300,470) (895,714)
Proceeds from sales of loans 731,974 50,485
Proceeds from sales of premises and equipment 5,075 8,508
Purchases of premises and equipment (50,249) (38,281)
Purchases of corporate owned life insurance 0 (80,000)
Sale of banking offices, net of cash paid (78,211) 0
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Net cash provided by/(used in) investing activities (1,174,975) (630,946)
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Cash Flows from Financing Activities:
Net decrease in deposits (327,666) (1,722,004)
Net increase/(decrease) in short-term borrowings 1,054,247 (26,509)
Principal payments on long-term debt (291,445) (338,557)
Proceeds from issuance of long-term debt 0 975,000
Proceeds from issuance of common stock 35,771 99,767
Purchase of treasury stock (182,917) (25,692)
Dividends paid (158,498) (115,413)
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Net cash provided by/(used in) financing activities 129,492 (1,153,408)
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Net decrease in cash and cash equivalents (764,465) (750,052)
Cash and cash equivalents at beginning of period 4,185,201 4,605,484
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Cash and cash equivalents at end of period $ 3,420,736 $ 3,855,432
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Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest $ 590,002 $ 576,770
Income taxes 62,748 23,013
Transfer to foreclosed assets from loans $ 17,234 $ 22,916
Sales of Banking Offices
Assets sold $ 47,218 $ 0
Liabilities sold $ 135,438 0
FIRSTAR CORPORATION AND SUBSIDIARIES
TABLE 1 AVERAGE BALANCE SHEETS AND AVERAGE RATES
(dollars in thousands)
First Quarter, 2000 First Quarter, 1999
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Daily Average Daily Average
Average Interest Rate Average Interest Rate
------------ ------------ ------- ------------ ------------ -------
ASSETS:
Commercial loans $ 17,628,570 $ 363,194 8.28% $ 15,772,329 $ 295,607 7.59%
Real estate loans 19,775,401 391,381 7.94 21,242,069 413,295 7.84
Retail loans 13,741,066 305,728 8.95 11,351,255 256,120 9.15
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Total loans 51,145,037 1,060,303 8.33 48,365,653 965,022 8.06
Loans held for sale 601,337 11,714 7.79 1,690,751 30,801 7.29
Investment securities 13,405,028 233,308 6.96 15,418,800 251,214 6.52
Money market investments 459,745 7,016 6.14 668,730 8,830 5.36
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Total interest-
earning assets 65,611,147 1,312,341 8.03% 66,143,934 1,255,867 7.66%
Cash and due from banks 3,134,887 3,323,301
Allowance for loan losses (708,483) (704,922)
Other assets 4,503,247 5,042,145
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Total assets $ 72,540,798 $ 73,804,458
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LIABILITIES AND SHAREHOLDERS' EQUITY:
Savings and NOW $ 10,137,597 43,244 1.72% $ 10,870,882 50,303 1.88%
Money market deposit accounts 10,237,091 108,744 4.27 10,242,882 99,302 3.93
Time deposits 21,766,233 288,289 5.33 21,644,170 277,611 5.20
Short-term borrowings 8,290,510 111,839 5.43 7,024,965 77,729 4.49
Long-term debt 4,911,336 78,342 6.40 5,850,703 81,395 5.62
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Total interest-bearing
liabilities 55,342,767 630,458 4.58% 55,633,602 586,340 4.27%
Noninterest-bearing deposits 9,664,982 10,119,209
Other liabilities 1,136,009 1,288,416
Shareholders' equity 6,397,040 6,763,231
Total liabilities and
shareholders' equity $ 72,540,798 $ 73,804,458
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Net interest revenue/margin $ 681,883 4.17% $ 669,527 4.07%
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Interest rate spread 3.45 3.39
Note: Interest and average rate are presented on a fully-taxable equivalent basis. Taxable equivalent amounts
are calculated utilizing marginal federal income tax rate of 35 percent. The yield on available for sale
securities is based upon historical cost balances. The total of nonaccruing loans is included in average
amounts outstanding.
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Substitute the following paragraph for the fifth paragraph on
page 15:
Total loans were $50.3 billion at March 31, 2000 compared
to $50.6 billion at year-end 1999. Residential real estate loans
have declined reflecting management's decision to transfer $1.7
billion of the residential loan portfolio to loans held for sale.
Excluding residential real estate loans, total loans increased $1.8
billion, or 4.4%, since December 31, 1999. Specifically, retail
loans, which include such areas as installment lending, auto
leasing and credit card services have increased $724 million, or
5.4%, led by a $496 million, or 24.7%, increase in retail leases.
Specialized lending and corporate loans increased $812 million
or 4.7% since December 31, 1999. Commercial and
construction real estate loans increased $296 million or 2.7%
since December 31, 1999. In the third quarter of 1998, Firstar
established a loan conduit, Stellar Funding Group, Inc. At
March 31, 2000, $1.8 billion of short term, high quality, low
yielding commercial loans had been funded in the conduit
compared to $1.7 billion at December 31, 1999.
Substitute the following paragraph for the first paragraph on
page 18:
The net interest margin increased by ten basis points to
4.17% in the first quarter of 2000 compared to the first quarter
of 1999. The yield on total earning assets rose by 37 basis points
to 8.03%. Likewise, the yield on total loans increased by 27
basis points reflecting generally market driven forces. The
comparable rate paid on interest bearing liabilities increased by
31 basis points similarly reflecting higher market rates and more
reliance on higher cost purchased funds. Interest spread, the
difference between the rate earned on total earning assets and the
rate paid on interest bearing liabilities increased by 6 basis
points. The contribution of interest free funds to the net interest
margin increased by four basis points producing the net increase to
the margin of ten basis points. Tables 1 provides detailed
information on the average balances, interest income/expense and
earned or paid.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
Registrant in the capacities and on the dates indicated.
FIRSTAR CORPORATION
June 1, 2000 /s/ James D. Hogan
- ------------------ ---------------------------------
Date James D. Hogan
Executive Vice President and
Controller