Exhibit 99.1
Commercial Federal Reports Second Quarter Earnings of $22.7 Million
OMAHA, Neb.--(BUSINESS WIRE)--July 24, 2003--Commercial Federal
Corporation today announced net income of $0.51 per diluted share or
$22.7 million, for the quarter ended June 30, 2003. For the six-month
period ended June 30, 2003, net income totaled $45.8 million, or $1.02
per diluted share.
William A. Fitzgerald, chairman of the board and chief executive
officer stated, "Overall, we are pleased with the Company's second
quarter results. We have continued to see growth in our key loan and
deposit categories, as we manage the challenges presented in the
near-term by the low level of interest rates and the accompanying net
interest margin compression."
"The performance of our core banking units remain on target. Our
long-term objectives of expanding our customer base and changing the
mix in our balance sheet, adding higher margin loans and core
deposits, remain the key to providing additional value for our
shareholders."
Net income of $22.7 million for the most recent quarter compares
to net income of $0.60 per diluted share or $27.5 million for the same
period a year ago. Net income of $45.8 million for the six-month
period ended June 30, 2003 compares with $55.5 million, or $1.21 per
diluted share, for the six-month period ended June 30, 2002.
Key Growth Indicators:
-- Core deposit balances increased $727 million or 22% year over
year
-- Commercial operating loans up 31% year over year
-- Home equity loans up 3% year over year
-- Checking account growth 4% year over year
Chief Financial Officer David S. Fisher stated, "The growth in our
key benchmarks extend the very positive trends established last year.
Growth in core checking and savings deposits has been very strong.
Loan growth trends in our commercial operating and consumer portfolios
on a year over year basis are positive as well. Record mortgage
volumes continued with loan production reaching $3.8 billion in the
first-half of 2003, up 87% year over year."
"In the second quarter, credit quality improved significantly over
the prior quarter, with total nonperforming loans down sharply for the
period. Margin and net interest income have continued to contract in
the recent quarter due to the absolute level of interest rates and
increased prepayment activity on loans and securities. For the
remainder of 2003, margin and net interest income trends will depend
upon our continued success in growing our loan base and lowering our
cost of funds."
Results for the Quarter:
Net Interest Income
Net interest income totaled $71.1 million for the second quarter,
down 5% from the first quarter and 12% from the second quarter of
2002. The net interest rate spread for the quarter fell to 2.46%,
compared with 2.56% in the prior quarter and 2.82% for the same period
last year.
The Company's net interest margin continued to compress as the
rate on the Company's earning assets declined 25 basis points, while
the rate on the Company's interest-bearing liabilities fell by only 15
basis points from the prior quarter ended March 31, 2003.
Credit Risk Management
Overall credit quality remained strong during the quarter with net
loan charge-offs down slightly to $4.4 million, compared with $4.5
million for the previous quarter. For the six months ended June 30,
2003, net charge-offs totaled $8.9 million, compared with $10.5
million for the same period ended June 30, 2002. The provision for
loan losses declined by a similar amount for the six-month period,
from $12.1 million to $11.4 million.
For the quarter ended June 30, 2003, total nonperforming assets
were $109.9 million, compared with $120.6 million at March 31, 2003.
The majority of the decrease in nonperforming assets for the quarter
was related to residential loans and a few specific commercial real
estate loans. Total NPAs represented 0.85% of total assets at June 30,
2003, compared with 0.90% at March 31, 2003.
Noninterest Income
The Company's retail banking operations continued to generate
strong results in the second quarter. For the quarter ended June 30,
2003, retail fees and charges totaled $15.0 million compared with
$13.5 million for the quarter ended March 31, 2003, and $13.9 million
for the quarter ended June 30, 2002. For the six-month period ended
June 30, 2003, retail fees and charges totaled $28.5 million, compared
with $26.3 million for the same period last year, representing an 8%
increase on a year over year basis.
The mortgage banking operations includes activities associated
with the Company's mortgage servicing and secondary marketing
operations. Revenues from these operations are offset by the
amortization of and valuation adjustments related to its mortgage
servicing rights asset. During the second quarter 2003, the Company
recorded a valuation loss on its mortgage servicing rights of $29.8
million, and amortization expense in excess of loan servicing fees of
$6.5 million. The Company offset this valuation loss and net
amortization expense by recognizing $39.1 million in pre-tax gains on
the sales of securities and changes in fair values of hedging
instruments. In addition, the gain on the sale of loans for the
quarter totaled $8.5 million.
Operating Expenses
For the quarter ended June 30, 2003, total administrative expenses
totaled $71.1 million, compared to $66.6 million for the previous
quarter, as commissions and over-time expenses increased to meet the
large loan demand.
Balance Sheet and Capital Ratios
Total assets at June 30, 2003 were $12.9 billion, compared with
$13.3 billion and $13.2 billion at March 31, 2003 and June 30, 2002,
respectively. Core deposit balances, including checking, money market
and savings accounts grew by $187 million or 5% for the quarter and
22% over the same period last year.
At June 30, 2003, stockholders' equity was $747.6 million after
spending $18.9 million in the quarter on the Company's share
repurchase program. Stockholders' equity was $758.4 million at March
31, 2003. The capital ratios of the Company's banking subsidiary
continued to exceed regulatory requirements for classification as
"well-capitalized," the highest regulatory standard.
During the quarter ended June 30, 2003, the Company repurchased
875,500 shares as part of the five million-share buyback program
announced in November 2002. For the six-month period ended June 30,
2003 a total of 1,339,900 shares have been repurchased under this
program. The Company has 3,900,900 shares remaining in its share
repurchase authorizations. As of June 30, 2003, shares outstanding
totaled 43,940,224.
Commercial Federal Corporation (NYSE:CFB) is the parent company of
Commercial Federal Bank, a $12.9 billion federal savings bank that
currently operates branches located in Nebraska, Iowa, Colorado,
Kansas, Oklahoma, Missouri and Arizona. Commercial Federal operations
include consumer and commercial banking services including mortgage
origination and servicing, commercial and industrial lending, small
business banking, construction lending, cash management, insurance and
investment services, and Internet banking.
Commercial Federal's Web site, http://www.comfedbank.com, will
host a live webcast of the investor conference call to discuss second
quarter results on Thursday, July 24, 2003 at 10:30 a.m. Central Time.
The site also includes access to company news releases, annual
reports, quarterly financial statements, and SEC filings.
Certain statements contained in this release are forward-looking
in nature. These statements are subject to risks and uncertainties
that could cause Commercial Federal's actual results or financial
condition to differ materially from those expressed in or implied by
such statements. Factors of particular importance to Commercial
Federal include, but are not limited to, changes in general economic
conditions, changes in interest rates, changes in regulations or
accounting methods, and price levels and conditions in the public
securities markets generally.
COMMERCIAL FEDERAL CORPORATION
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
(Dollars in Thousands)
- ----------------------------------------------------------------------
June 30, March 31, June 30,
ASSETS 2003 2003 2002
- ----------------------------------------------------------------------
Cash (including short-term
investments of $1,067, $842
and $133) $248,500 $223,129 $158,957
Investment securities available
for sale, at fair value 1,288,081 1,271,810 1,225,052
Mortgage-backed securities
available for sale, at fair
value 1,317,756 1,588,715 1,818,067
Loans held for sale, net 1,037,935 1,013,067 847,305
Loans receivable, net of
allowances of $108,706,
$108,857 and $103,722 7,748,521 7,808,986 7,773,465
Federal Home Loan Bank stock 247,817 264,028 264,095
Foreclosed real estate 43,000 41,316 40,213
Premises and equipment, net 143,088 143,904 150,304
Bank owned life insurance 235,504 232,262 221,374
Other assets 441,389 557,290 488,252
Core value of deposits, net of
accumulated amortization of
$64,365, $62,817 and $58,170 19,268 20,816 25,463
Goodwill 162,717 162,717 162,717
- ----------------------------------------------------------------------
Total Assets $12,933,576 $13,328,040 $13,175,264
- ----------------------------------------------------------------------
LIABILITIES AND STOCKHOLDERS'
EQUITY
- ----------------------------------------------------------------------
Liabilities:
Deposits $6,768,368 $6,740,117 $6,243,333
Advances from Federal Home
Loan Bank 4,436,264 4,770,335 5,254,772
Other borrowings 573,081 569,943 612,581
Other liabilities 408,233 489,290 306,407
- ----------------------------------------------------------------------
Total Liabilities 12,185,946 12,569,685 12,417,093
- ----------------------------------------------------------------------
Commitments and Contingencies - - -
- ----------------------------------------------------------------------
Stockholders' Equity:
Preferred stock, $.01 par
value; 10,000,000 shares
authorized; none issued - - -
Common stock, $.01 par
value; 120,000,000 shares
authorized; 43,940,224,
44,808,282 and 45,412,900
shares issued and
outstanding 439 448 454
Additional paid-in capital 33,469 51,837 66,631
Retained earnings 835,184 816,909 752,969
Accumulated other
comprehensive loss, net (121,462) (110,839) (61,883)
- ----------------------------------------------------------------------
Total Stockholders' Equity 747,630 758,355 758,171
- ----------------------------------------------------------------------
Total Liabilities and
Stockholders' Equity $12,933,576 $13,328,040 $13,175,264
- ----------------------------------------------------------------------
Certain amounts in prior periods have been reclassified for
comparative purposes to conform to the June 30, 2003 presentation.
COMMERCIAL FEDERAL CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars in Thousands Except Per Share Data)
- ----------------------------------------------------------------------
Three Months Ended
June 30, March 31, June 30,
-----------------------------------
2003 2003 2002
- ----------------------------------------------------------------------
Interest Income:
Investment securities $16,846 $17,576 $19,328
Mortgage-backed securities 12,638 16,447 23,806
Loans receivable 140,401 142,351 150,037
- ----------------------------------------------------------------------
Total interest
income 169,885 176,374 193,171
Interest Expense:
Deposits 38,974 39,614 44,983
Advances from Federal Home
Loan Bank 54,772 56,920 60,611
Other borrowings 5,037 5,012 6,911
- ----------------------------------------------------------------------
Total interest
expense 98,783 101,546 112,505
Net Interest Income 71,102 74,828 80,666
Provision for Loan Losses (4,273) (7,146) (5,540)
- ----------------------------------------------------------------------
Net Interest Income After
Provision for Loan Losses 66,829 67,682 75,126
Other Income (Loss):
Retail fees and charges 15,009 13,503 13,913
Loan servicing fees 11,958 11,037 9,570
Amortization of mortgage
servicing rights (18,454) (12,062) (6,751)
Mortgage servicing rights
valuation adjustment (29,793) (13,528) (16,607)
Gain on sales of securities
and changes in fair values
of derivatives, net 39,131 19,000 13,583
Gain on sales of loans 8,506 5,480 3,538
Bank owned life insurance 3,242 3,304 3,438
Other operating income 7,627 5,656 7,906
- ----------------------------------------------------------------------
Total other income 37,226 32,390 28,590
Other Expense:
General and administrative
expenses -
Compensation and benefits 31,841 30,813 28,351
Occupancy and equipment 10,495 10,436 9,270
Data processing 4,604 4,675 4,397
Advertising 5,606 4,130 4,330
Communication 3,432 3,414 3,173
Item processing 3,837 3,469 3,622
Outside services 3,226 2,391 3,821
Loan expense 2,667 2,426 1,208
Foreclosed real estate,
net 1,004 1,381 2,280
Other operating expenses 4,349 3,497 2,572
- ----------------------------------------------------------------------
Total general and
administrative
expenses 71,061 66,632 63,024
Amortization of core value of
deposits 1,548 1,549 1,637
- ----------------------------------------------------------------------
Total other expense 72,609 68,181 64,661
- ----------------------------------------------------------------------
Income Before Income Taxes 31,446 31,891 39,055
Income Tax Provision 8,744 8,760 11,522
- ----------------------------------------------------------------------
Net Income $22,702 $23,131 $27,533
- ----------------------------------------------------------------------
Net Income Per Basic Share $.51 $.51 $.61
Net Income Per Diluted Share $.51 $.51 $.60
- ----------------------------------------------------------------------
Dividends Declared Per Common
Share $.10 $.09 $.09
- ----------------------------------------------------------------------
Weighted Average Shares
Outstanding Used in Basic EPS 44,302,234 45,092,714 45,342,680
Weighted Average Shares
Outstanding Used in Diluted EPS 44,582,227 45,421,360 46,212,396
- ----------------------------------------------------------------------
Certain amounts in prior periods have been reclassified for
comparative purposes to conform to the June 30, 2003 presentation.
COMMERCIAL FEDERAL CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars in Thousands Except Per Share Data)
- ----------------------------------------------------------------------
Six Months Ended
June 30, June 30,
-----------------------
2003 2002
- ----------------------------------------------------------------------
Interest Income:
Investment securities $34,422 $38,447
Mortgage-backed securities 29,085 50,664
Loans receivable 282,752 302,076
- ----------------------------------------------------------------------
Total interest income 346,259 391,187
Interest Expense:
Deposits 78,588 93,787
Advances from Federal Home Loan Bank 111,692 119,505
Other borrowings 10,049 12,646
- ----------------------------------------------------------------------
Total interest expense 200,329 225,938
Net Interest Income 145,930 165,249
Provision for Loan Losses (11,419) (12,129)
- ----------------------------------------------------------------------
Net Interest Income After Provision for Loan
Losses 134,511 153,120
Other Income (Loss):
Retail fees and charges 28,512 26,321
Loan servicing fees 22,995 19,074
Amortization of mortgage servicing rights (30,516) (13,419)
Mortgage servicing rights valuation
adjustment (43,321) (16,078)
Gain on sales of securities and changes
in fair values of derivatives, net 58,131 8,740
Gain on sales of loans 13,986 6,977
Bank owned life insurance 6,546 6,783
Other operating income 13,283 15,782
- ----------------------------------------------------------------------
Total other income 69,616 54,180
Other Expense:
General and administrative expenses -
Compensation and benefits 62,654 56,846
Occupancy and equipment 20,931 18,596
Data processing 9,279 8,831
Advertising 9,736 7,245
Communication 6,846 6,229
Item processing 7,306 7,083
Outside services 5,617 7,459
Loan expense 5,093 2,524
Foreclosed real estate, net 2,385 3,722
Other operating expenses 7,846 7,055
- ----------------------------------------------------------------------
Total general and
administrative expenses 137,693 125,590
Amortization of core value of deposits 3,097 3,270
- ----------------------------------------------------------------------
Total other expense 140,790 128,860
- ----------------------------------------------------------------------
Income Before Income Taxes 63,337 78,440
Income Tax Provision 17,504 22,924
- ----------------------------------------------------------------------
Net Income $45,833 $55,516
- ----------------------------------------------------------------------
Net Income Per Basic Share $1.03 $1.22
Net Income Per Diluted Share $1.02 $1.21
- ----------------------------------------------------------------------
Dividends Declared Per Common Share $.19 $.17
- ----------------------------------------------------------------------
Weighted Average Shares Outstanding Used in
Basic EPS 44,697,474 45,349,173
Weighted Average Shares Outstanding Used in
Diluted EPS 45,001,794 46,061,549
- ----------------------------------------------------------------------
Certain amounts in prior periods have been reclassified for
comparative purposes to conform to the June 30, 2003 presentation.
COMMERCIAL FEDERAL CORPORATION
MORTGAGE SERVICING RIGHTS AND MORTGAGE BANKING OPERATIONS
(Dollars in Thousands)
- ----------------------------------------------------------------------
Three Months Ended
June 30, March 31, June 30,
-------------------------------------
2003 2003 2002
- ----------------------------------------------------------------------
Mortgage Servicing Rights:
Beginning balance $179,860 $168,411 $136,733
Mortgage servicing rights
retained through loan
sales 20,378 16,753 9,560
Purchases of mortgage
servicing rights 8,015 6,758 -
Sale of mortgage servicing
rights (9,904) - -
Amortization expense (18,454) (12,062) (6,751)
Other items, net 10,503 - -
------------ ------------ -----------
Balance before valuation
allowance 190,398 179,860 139,542
------------ ------------ -----------
Valuation allowance
beginning balance 93,586 80,058 19,112
Amounts charged to
operations 29,793 13,528 16,607
Sale of mortgage servicing
rights (1,914) - -
------------ ------------ -----------
Valuation allowance ending
balance 121,465 93,586 35,719
------------ ------------ -----------
Mortgage servicing rights,
net of valuation allowance $68,933 $86,274 $103,823
============ ============ ===========
Fair value at the periods
ended $68,933 $86,274 $104,501
============ ============ ===========
Mortgage servicing rights as a
percentage of servicing
portfolio 0.61% 0.73% 1.08%
============ ============ ===========
Mortgage servicing rights as a
multiple of servicing fees 1.82x 2.28x 3.26x
============ ============ ===========
- ----------------------------------------------------------------------
Loans Serviced for Other
Institutions:
Beginning balance $11,848,058 $11,531,755 $9,524,493
Additions to portfolio 1,498,788 1,220,373 548,345
Purchases of loans to
service 515,173 559,688 70,979
Loan payments (1,995,558) (1,457,944) (490,108)
Sales of loans serviced (509,946) - -
Other items, net (2,350) (5,814) (917)
-------------------------------------
Ending balance excluding
sub servicing 11,354,165 11,848,058 9,652,792
Sub servicing retained on
sale of loans serviced 509,946 - -
------------ ------------ -----------
Ending balance including
sub servicing $11,864,111 $11,848,058 $9,652,792
============ ============ ===========
Weighted average servicing
fee 0.32% 0.32% 0.33%
============ ============ ===========
Weighted average coupon
note rate 6.47% 6.66% 7.10%
============ ============ ===========
- ----------------------------------------------------------------------
Certain Components of Mortgage
Banking and Treasury
Activities:
Loan servicing fees $11,958 $11,037 $9,570
Amortization of mortgage
servicing rights (18,454) (12,062) (6,751)
------------ ------------ -----------
Loan servicing fees, net (6,496) (1,025) 2,819
Mortgage servicing
valuation adjustment (29,793) (13,528) (16,607)
Gain on sales of securities
and changes in fair values
of derivatives, net 39,131 19,000 13,583
Gain on sales of loans 8,506 5,480 3,538
------------ ------------ -----------
Total of certain components
of mortgage banking and
treasury activities $11,348 $9,927 $3,333
============ ============ ===========
- ----------------------------------------------------------------------
COMMERCIAL FEDERAL CORPORATION
DEPOSITS AND LOANS
(In Thousands)
- ----------------------------------------------------------------------
June 30, March 31, June 30,
2003 2003 2002
- ----------------------------------------------------------------------
Deposits by State:
Colorado $2,033,740 $2,049,818 $2,063,327
Nebraska 1,919,919 1,934,980 1,407,656
Iowa 1,072,456 1,030,771 1,022,259
Kansas 659,112 659,169 668,324
Oklahoma 552,556 556,166 583,574
Missouri 311,178 299,507 287,706
Arizona 219,407 209,706 186,274
Minnesota - - 24,213
----------- ----------- -----------
Total deposits $6,768,368 $6,740,117 $6,243,333
=========== =========== ===========
Deposits by Type:
Checking accounts -
Interest bearing $515,322 $510,597 $485,967
Noninterest bearing 633,291 664,882 464,965
----------- ----------- -----------
Total retail
checking 1,148,613 1,175,479 950,932
Custodial escrow
accounts 564,871 443,403 221,514
----------- ----------- -----------
Total checking 1,713,484 1,618,882 1,172,446
Money market accounts 958,303 740,292 278,060
Savings accounts 1,390,740 1,516,231 1,884,537
----------- ----------- -----------
Total core deposits 4,062,527 3,875,405 3,335,043
Certificates of deposit - non
core 2,705,841 2,864,712 2,908,290
----------- ----------- -----------
Total deposits $6,768,368 $6,740,117 $6,243,333
=========== =========== ===========
- ----------------------------------------------------------------------
Loans Receivable, before allowance
for losses:
Single-family fixed $1,575,344 $1,765,371 $2,093,858
Single-family adjustable 2,032,644 1,966,394 1,893,222
----------- ----------- -----------
Total single-family 3,607,988 3,731,765 3,987,080
Commercial real estate 1,552,221 1,517,022 1,402,361
Construction (net of LIP) 593,268 587,280 577,313
Multi-family 295,721 287,788 279,765
Commercial operating 269,274 260,109 184,794
Consumer and other 1,538,755 1,533,879 1,445,874
----------- ----------- -----------
Total loans receivable,
before allowance for
losses $7,857,227 $7,917,843 $7,877,187
=========== =========== ===========
- ----------------------------------------------------------------------
COMMERCIAL FEDERAL CORPORATION
ALLOWANCE FOR LOSSES ON LOANS
(In Thousands)
- ----------------------------------------------------------------------
June 30, March 31, June 30,
2003 2003 2002
- ----------------------------------------------------------------------
THREE MONTHS ENDED:
- -------------------
Beginning balance $108,920 $106,291 $102,581
Provision charged to operations 4,273 7,146 5,540
Charge-offs (6,003) (7,295) (5,805)
Recoveries 1,582 2,810 1,722
Change in estimate of allowance for bulk
purchased loans (32) (32) (37)
- ----------------------------------------------------------------------
Ending balance $108,740 $108,920 $104,001
- ----------------------------------------------------------------------
SIX MONTHS ENDED:
- -----------------
Beginning balance $106,291 n/a $102,451
Provision charged to operations 11,419 n/a 12,129
Charge-offs (13,298) n/a (13,807)
Recoveries 4,392 n/a 3,294
Change in estimate of allowance for bulk
purchased loans (64) n/a (66)
- ----------------------------------------------------------------------
Ending balance $108,740 n/a $104,001
- ----------------------------------------------------------------------
Summary of charge-offs, net of
recoveries:
- ------------------------------
Three months ended $(4,421) $(4,485) $(4,083)
========= ========= =========
Six months ended $(8,906) n/a $(10,513)
========= =========
- ----------------------------------------------------------------------
Allocation of allowance:
- ------------------------
Specific $6,025 $4,616 $7,493
Special problem 34,613 35,661 34,141
Nonspecific 68,102 68,643 62,367
--------- --------- ---------
$108,740 $108,920 $104,001
========= ========= =========
- ----------------------------------------------------------------------
COMMERCIAL FEDERAL CORPORATION
NONPERFORMING ASSETS AND LOANS
(Dollars in Thousands)
- ----------------------------------------------------------------------
June 30, March 31, June 30,
2003 2003 2002
- ----------------------------------------------------------------------
Nonperforming Assets:
Nonperforming loans:
Residential real
estate $34,338 $42,012 $46,371
Residential
construction 7,784 6,276 2,409
Commercial real
estate 8,381 14,037 11,098
Commercial
construction 4,371 4,130 235
All other 7,034 7,832 6,632
------------ ------------ ------------
Total nonperforming
loans 61,908 74,287 66,745
------------ ------------ ------------
Real estate:
Residential 12,251 13,045 13,847
Residential
construction 24,187 23,518 22,695
Commercial 5,078 3,268 3,671
Commercial
construction 1,484 1,485 -
------------ ------------ ------------
Total real estate 43,000 41,316 40,213
------------ ------------ ------------
Troubled debt
restructurings:
Residential - - 81
Commercial 4,961 4,972 2,982
------------ ------------ ------------
Total troubled debt
restructurings 4,961 4,972 3,063
------------ ------------ ------------
Total nonperforming assets $109,869 $120,575 $110,021
============ ============ ============
Total assets $12,933,576 $13,328,040 $13,175,264
============ ============ ============
Nonperforming assets to total
assets .85% .90% .84%
============ ============ ============
Summary of Nonperforming
Assets:
Residential $78,560 $84,851 $85,403
Nonresidential 31,309 35,724 24,618
------------ ------------ ------------
$109,869 $120,575 $110,021
============ ============ ============
- ----------------------------------------------------------------------
Nonperforming loans to loans
receivable (1) .79% .94% .85%
Nonperforming assets to total
assets .85% .90% .84%
Allowance for loan losses to:
Loans receivable (1) 1.38% 1.38% 1.32%
Nonperforming assets 98.97% 90.33% 94.53%
Total nonperforming loans 175.65% 146.62% 155.82%
Nonresidential
nonperforming assets 347.31% 304.89% 422.46%
- ----------------------------------------------------------------------
(1) Ratios are calculated based on the net book value of loans
receivable before deducting allowance for loan losses.
COMMERCIAL FEDERAL CORPORATION
SUMMARY OF CONSOLIDATED FINANCIAL HIGHLIGHTS AND RATIOS
(Dollars in Thousands Except Per Share Data)
- ----------------------------------------------------------------------
June 30, March 31, June 30,
2003 2003 2002
- ----------------------------------------------------------------------
Cash, investment securities and
FHLB stock $1,784,398 $1,758,967 $1,648,104
Mortgage-backed securities 1,317,756 1,588,715 1,818,067
Loans held for sale, net 1,037,935 1,013,067 847,305
Loans receivable, net 7,748,521 7,808,986 7,773,465
Intangible assets 181,985 183,533 188,180
Other assets 862,981 974,772 900,143
Total assets 12,933,576 13,328,040 13,175,264
- ----------------------------------------------------------------------
Deposits 6,768,368 6,740,117 6,243,333
Advances from Federal Home Loan
Bank 4,436,264 4,770,335 5,254,772
Other borrowings 573,081 569,943 612,581
Other liabilities 408,233 489,290 306,407
Stockholders' equity 747,630 758,355 758,171
Total liabilities and
stockholders' equity 12,933,576 13,328,040 13,175,264
- ----------------------------------------------------------------------
Book value per common share $17.01 $16.92 $16.70
Stock price $21.20 $21.72 $29.00
Common shares outstanding 43,940,224 44,808,282 45,412,900
Weighted average shares
outstanding per basic EPS 44,302,234 45,092,714 45,342,680
Weighted average shares
outstanding per diluted EPS 44,582,227 45,421,360 46,212,396
- ----------------------------------------------------------------------
Nonperforming assets $109,869 $120,575 $110,021
Nonperforming assets to total
assets .85% .90% .84%
Weighted average interest rates
(durings):
Yield on interest-earning
assets 5.73% 5.98% 6.61%
Rate on interest-bearing
liabilities 3.27% 3.42% 3.79%
Net interest rate spread 2.46% 2.56% 2.82%
Net yield on interest-earning
assets 2.40% 2.53% 2.76%
Loans serviced for other
institutions $11,864,111 $11,848,058 $9,652,792
- ----------------------------------------------------------------------
Three months ended:
- -------------------
Return on average assets .69% .71% .85%
Return on average equity 11.89% 12.09% 14.18%
Average equity to average assets 5.80% 5.84% 6.01%
G & A expenses to average assets 2.16% 2.03% 1.95%
Operating efficiency ratio 65.60% 62.15% 57.68%
- ----------------------------------------------------------------------
Six months ended:
- -----------------
Return on average assets .70% n/a .86%
Return on average equity 11.99% n/a 14.66%
Average equity to average assets 5.82% n/a 5.88%
G & A expenses to average assets 2.10% n/a 1.95%
Operating efficiency ratio 63.88% n/a 57.23%
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COMMERCIAL FEDERAL CORPORATION
AVERAGE BALANCES AND REGULATORY CAPITAL
(Dollars in Thousands)
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June 30, March 31, December 31,
2003 2003 2002
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Three Months Ended:
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Average Balances:
Total assets $13,155,433 $13,101,428 $13,408,194
Total loans, net 8,902,699 8,668,060 8,851,961
Total loans, before
allowances 9,011,377 8,773,891 8,960,880
Total mortgage-backed
securities 1,414,739 1,584,690 1,741,933
Total deposits 6,730,636 6,465,854 6,277,235
Total stockholders' equity 763,666 765,112 736,489
Total interest-earning assets 11,869,514 11,825,331 12,191,686
Total interest-bearing
liabilities 12,032,153 11,947,339 12,286,057
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September June 30,
30,
2002 2002
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Three Months Ended:
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Average Balances:
Total assets $13,511,423 $12,924,321
Total loans, net 8,865,656 8,447,815
Total loans, before
allowances 8,971,536 8,550,402
Total mortgage-backed
securities 1,797,775 1,834,009
Total deposits 6,186,698 6,256,952
Total stockholders' equity 783,612 776,414
Total interest-earning assets 12,205,340 11,703,685
Total interest-bearing
liabilities 12,296,090 11,815,264
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Six Months Year Year
Ended Ended Ended
Year to Date: 6/30/03 12/31/2002 12/31/2001
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Average Balances:
Total assets $13,128,580 $13,175,562 $12,857,135
Total loans, net 8,786,028 8,638,609 8,782,321
Total loans, before
allowances 8,893,291 8,743,759 8,872,003
Total mortgage-
backed securities 1,499,244 1,799,174 1,690,967
Total deposits 6,598,976 6,258,302 7,122,069
Total stockholders'
equity 764,385 758,659 798,889
Total interest-
earning assets 11,847,545 11,931,794 11,724,847
Total interest-
bearing
liabilities 11,989,980 12,034,963 11,704,421
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June 30, March 31, December 31, September June 30,
Regulatory 30,
Capital: 2003 2003 2002 2002 2002
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Tangible $784,326 $768,827 $743,048 $752,804 $723,100
Core 777,933 760,612 734,870 746,244 715,665
Total
risk-
based 913,088 899,378 871,408 882,768 846,021
Tier 1
risk-
based 777,933 760,612 734,870 746,244 715,665
Tangible % 6.17% 5.88% 5.81% 5.71% 5.60%
Core % 6.12% 5.82% 5.75% 5.67% 5.61%
Total
risk-
based % 11.55% 11.00% 10.92% 10.88% 10.77%
Tier 1
risk-
based % 9.84% 9.30% 9.21% 9.20% 9.11%
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CONTACT: Commercial Federal Corporation, Omaha
Investor Relations:
John J. Griffith, 402-514-5336