Exhibit 99.1
Commercial Federal Reports Third Quarter Net Income of $20.2 Million
OMAHA, Neb.--(BUSINESS WIRE)--Oct. 26, 2004--Commercial Federal
Corporation (NYSE:CFB), today announced net income of $20.2 million,
or $0.50 per diluted share, for the quarter ended September 30, 2004.
"By emphasizing core banking growth, service excellence and
prudent expense management Commercial Federal continues to make solid
progress," said William A. Fitzgerald, chairman of the board and chief
executive officer. "Despite a challenging interest rate environment,
period-to-period growth in core deposits, as well as commercial
operating, construction and home equity loans is making a positive
difference.
"By stressing our service philosophy and articulating very clear
service standards, the Company has definitely rallied around our
service excellence initiatives. We also have seen results from reduced
operating expenses in the quarter, as they were down 6% compared to
the same period last year. Credit quality remains very strong,"
concluded Mr. Fitzgerald.
During the quarter ended September 30, 2004, Commercial Federal
continued to show quarter-over-quarter positive gains in the following
highly targeted core business drivers:
-- Average commercial operating loan outstanding balances
increased 21% annualized, even with a slowing in commercial
lending growth nationwide.
-- Average home equity loan outstanding balances grew at a 20%
annualized rate, indicating that consumer demand for this
product has returned after the refinancing boom.
-- Average core deposit balances, excluding custodial escrows,
were up $27 million, or 3% annualized, driven primarily by
retail and commercial checking gains.
-- The number of period-end retail checking and commercial
checking accounts increased at 5% and 31% annualized rates,
respectively during the third quarter.
Results for the Quarter
Net Interest Income
Net interest income totaled $64.4 million for the third quarter,
compared with $71.6 million for the quarter ended June 30, 2004.
Industry-wide effects of margin compression contributed to the
decline, as the net interest rate spread for the quarter declined 19
basis points to 2.60%, compared with 2.79% for the previous quarter.
The weighted average yield on interest-earning assets improved two
basis points to 5.48%, primarily due to improved yields on securities
in addition to an increased volume of higher-yielding commercial and
consumer loans.
These positive increases were partially offset by the reduction in
volume and related interest income on residential mortgage loans.
The compression of the interest rate spread was negatively
affected by an increase in the weighted average rate on deposits and
interest-bearing liabilities to 2.88% from 2.67% in the previous
quarter. This was primarily due to increases in the targeted federal
funds rate and competitive market pressures on the pricing of
deposits.
Noninterest Income
Noninterest income increased 17% from the previous quarter to
partially offset the decline in the Company's net interest income.
Leading this growth, retail banking fees were positively affected by
increases in the number of checking accounts combined with the
increasing volume of debit card usage, as this category of fees grew
at an overall 18% annualized rate.
The Company's mortgage banking operations, which include both
servicing and secondary marketing activities, continued to be affected
by high mortgage prepayments and the resultant amortization of the
mortgage servicing rights asset. During the third quarter, the Company
recorded loan servicing fees of $10.8 million, mortgage servicing
rights amortization expense of $10.6 million, and a mortgage servicing
rights valuation adjustment write-down of $21.6 million. The valuation
adjustment was offset by changes in the fair value of certain
derivatives and gains on the sales of securities held for the purpose
of offsetting changes in the fair value of mortgage servicing rights.
In addition, gains on the sales of loans totaled $1.4 million during
the quarter.
"Mortgage banking, in general, is a very cyclical business. We
continue to operate in a challenging interest-rate environment and
that clearly impacts mortgage prepayment speeds. Although prepayment
speeds have declined rather dramatically from quarter to quarter, they
have not come down as far as the industry had expected," said David S.
Fisher, executive vice president and chief financial officer.
Operating Expenses
For the quarter ended September 30, 2004, general and
administrative expenses fell by $4.1 million to $63.3 million compared
to $67.4 million for the previous quarter. Declines were noted in many
categories including compensation, occupancy and advertising expense.
"We have paid close attention to centralizing operations where it is
appropriate, finding opportunities to be more efficient and effective
while maintaining or enhancing our customer service focus. The results
of these efforts have begun to show through this quarter," reported
Mr. Fisher.
Credit Risk Management
At the end of the third quarter, total nonperforming assets rose
to $65.4 million from $48.8 million in the previous quarter. Despite
the increase, primarily driven by the addition of two commercial real
estate properties, overall credit quality remains strong.
Total nonperforming assets represented only 0.57% of total assets
at September 30, 2004, compared with 0.42% for the previous quarter
and 0.88% at September 30, 2003.
Net loan charge-offs for the third quarter increased to $5.1
million, compared to $3.8 million in the previous quarter and $5.5
million in the third quarter of 2003. The allowance for loan losses
totaled $94.9 million at September 30, 2004, or 1.22% of loans
outstanding versus $97.1 million, or 1.25%, at June 30, 2004.
Balance Sheet and Capital Ratios
Total assets as of September 30, 2004 were $11.4 billion, compared
with $11.7 billion and $12.5 billion as of June 30, 2004 and September
30, 2003, respectively. The size of the balance sheet declined
slightly as expected, primarily driven by a decrease in the warehouse
of mortgage loans held for sale.
For the third quarter, core deposits, including checking, money
market and savings accounts (excluding custodial escrows) were up $39
million from June 30, 2004 and totaled $3.6 billion at September 30,
2004.
During the third quarter 2004, the Company repurchased 655,000
shares of common stock under its stock buyback program. As of
September 30, 2004, the Company had 1,758,800 shares remaining in the
repurchase authorization set to expire June 30, 2005. As of September
30, 2004, the Company had 39,352,564 shares outstanding.
As of September 30, 2004, stockholders' equity was $767.9 million,
compared with $751.3 million at June 30, 2004 and $753.5 million at
September 30, 2003. The capital ratios of the Company's banking
subsidiary continued to exceed regulatory requirements for
classification as "well-capitalized," the highest regulatory standard.
Commercial Federal Corporation (NYSE:CFB) is the parent company of
Commercial Federal Bank, a $11.4 billion federal savings bank with
branches located in Nebraska, Iowa, Colorado, Kansas, Oklahoma,
Missouri and Arizona. Commercial Federal operations include consumer
and commercial banking services, including retail banking, commercial
and industrial lending, small business banking, construction lending,
cash management, mortgage origination and servicing, and insurance and
investment services.
Commercial Federal's Web site, http://www.comfedbank.com, will
host a live webcast of the investor conference call to discuss third
quarter results on Tuesday, October 26, 2004 at 10:00 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)
- ----------------------------------------------------------------------
September 30, June 30, September 30,
ASSETS 2004 2004 2003
- ----------------------------------------------------------------------
Cash (including short-term
investments of $2,060, $1,841
and $1,137) $165,652 $156,229 $168,111
Investment securities available
for sale, at fair value 1,063,033 1,031,111 1,050,040
Mortgage-backed securities
available for sale, at fair
value 1,068,713 1,133,434 1,130,463
Loans held for sale, net 287,757 444,774 732,494
Loans receivable, net of
allowances of $94,857, $97,082
and $107,995 7,651,557 7,691,306 7,894,337
Federal Home Loan Bank stock 202,284 247,580 241,206
Foreclosed real estate 17,047 15,548 48,350
Premises and equipment, net 163,987 153,137 144,170
Bank owned life insurance 248,057 245,157 230,981
Other assets 372,514 418,451 696,367
Core value of deposits, net of
accumulated amortization of
$67,636, $66,652 and $62,999 13,413 14,397 18,050
Goodwill 162,717 162,717 162,717
- ----------------------------------------------------------------------
Total Assets $11,416,731 $11,713,841 $12,517,286
- ----------------------------------------------------------------------
LIABILITIES AND STOCKHOLDERS'
EQUITY
- ----------------------------------------------------------------------
Liabilities:
Deposits $6,249,222 $6,242,747 $6,592,859
Advances from Federal Home
Loan Bank 3,767,837 4,061,840 3,959,906
Other borrowings 424,327 419,848 620,452
Other liabilities 207,487 238,084 590,607
- ----------------------------------------------------------------------
Total Liabilities 10,648,873 10,962,519 11,763,824
- ----------------------------------------------------------------------
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; 39,352,564,
39,870,919 and 42,381,367
shares issued and outstanding 394 399 424
Retained earnings 816,688 816,138 841,391
Accumulated other
comprehensive loss, net (49,224) (65,215) (88,353)
- ----------------------------------------------------------------------
Total Stockholders' Equity 767,858 751,322 753,462
- ----------------------------------------------------------------------
Total Liabilities and
Stockholders' Equity $11,416,731 $11,713,841 $12,517,286
- ----------------------------------------------------------------------
COMMERCIAL FEDERAL CORPORATION
CONSOLIDATED STATEMENT OF INCOME
(Dollars in Thousands Except Per Share Data)
- ----------------------------------------------------------------------
Three Months Ended
September 30, June 30, September 30,
-------------------------------------
2004 2004 2003
- ----------------------------------------------------------------------
Interest Income:
Investment securities $14,628 $13,616 $16,233
Mortgage-backed securities 10,930 11,651 8,688
Loans receivable 116,447 119,750 128,291
- ----------------------------------------------------------------------
Total interest income 142,005 145,017 153,212
Interest Expense:
Deposits 28,765 26,901 36,547
Advances from Federal Home Loan
Bank 45,191 43,384 51,545
Other borrowings 3,655 3,142 4,830
- ----------------------------------------------------------------------
Total interest expense 77,611 73,427 92,922
Net Interest Income 64,394 71,590 60,290
Provision for Loan Losses (2,869) (3,106) (5,475)
- ----------------------------------------------------------------------
Net Interest Income After
Provision for Loan Losses 61,525 68,484 54,815
Other Income (Loss):
Retail fees and charges 17,625 16,881 14,805
Loan servicing fees 10,754 10,726 10,911
Amortization of mortgage
servicing rights (10,616) (14,900) (21,989)
Mortgage servicing rights
valuation adjustment (21,644) 38,866 51,800
Gain (loss) on sales of
securities and changes in fair
values of derivatives, net 21,253 (38,990) (31,294)
Gain on sales of loans 1,393 2,516 9,329
Bank owned life insurance 2,900 3,015 2,771
Other operating income 7,926 7,145 7,398
- ----------------------------------------------------------------------
Total other income 29,591 25,259 43,731
Other Expense:
General and administrative
expenses -
Compensation and benefits 30,582 31,537 30,233
Occupancy and equipment 9,825 9,994 10,188
Data processing 4,698 4,643 4,460
Advertising 2,963 3,940 3,742
Communication 3,263 3,332 3,505
Item processing 3,195 3,156 3,210
Outside services 4,087 3,872 3,410
Loan expenses 1,494 2,445 3,909
Foreclosed real estate, net 643 (1,217) 289
Other operating expenses 2,571 5,671 4,141
- ----------------------------------------------------------------------
Total general and
administrative expenses 63,321 67,373 67,087
Amortization of core value of
deposits 984 1,218 1,218
- ----------------------------------------------------------------------
Total other expense 64,305 68,591 68,305
- ----------------------------------------------------------------------
Income Before Income Taxes 26,811 25,152 30,241
Provision for Income Taxes 6,578 6,450 8,378
- ----------------------------------------------------------------------
Net Income $20,233 $18,702 $21,863
- ----------------------------------------------------------------------
Net Income Per Basic Share $.51 $.46 $.50
Net Income Per Diluted Share $.50 $.45 $.50
- ----------------------------------------------------------------------
Dividends Declared Per Common
Share $.135 $.135 $.10
- ----------------------------------------------------------------------
Weighted Average Shares
Outstanding Used in Basic EPS 39,583,989 40,527,096 43,523,639
Weighted Average Shares
Outstanding Used in Diluted EPS 40,250,103 41,199,954 43,933,969
- ----------------------------------------------------------------------
COMMERCIAL FEDERAL CORPORATION
CONSOLIDATED STATEMENT OF INCOME
(Dollars in Thousands Except Per Share Data)
- ----------------------------------------------------------------------
Nine Months Ended
September 30,
----------------------
2004 2003
- ----------------------------------------------------------------------
Interest Income:
Investment securities $42,543 $50,655
Mortgage-backed securities 34,943 37,773
Loans receivable 356,308 411,043
- ----------------------------------------------------------------------
Total interest income 433,794 499,471
Interest Expense:
Deposits 85,449 115,135
Advances from Federal Home Loan Bank 132,816 163,237
Other borrowings 8,449 14,879
- ----------------------------------------------------------------------
Total interest expense 226,714 293,251
Net Interest Income 207,080 206,220
Provision for Loan Losses (10,828) (16,894)
- ----------------------------------------------------------------------
Net Interest Income After Provision for Loan
Losses 196,252 189,326
Other Income (Loss):
Retail fees and charges 49,003 43,317
Loan servicing fees 32,688 33,906
Amortization of mortgage servicing rights (37,901) (52,505)
Mortgage servicing rights valuation
adjustment (1,671) 8,479
Gain on sales of securities and changes in
fair values of derivatives, net 645 26,837
Gain on sales of loans 4,107 23,315
Bank owned life insurance 13,946 8,443
Other operating income 21,690 20,681
- ----------------------------------------------------------------------
Total other income 82,507 112,473
Other Expense:
General and administrative expenses -
Compensation and benefits 95,005 92,887
Occupancy and equipment 29,983 31,119
Data processing 13,962 13,739
Advertising 10,458 13,478
Communication 9,741 10,351
Item processing 9,381 10,516
Outside services 11,831 9,027
Loan expenses 5,444 9,002
Foreclosed real estate, net 1,351 2,674
Other operating expenses 12,322 11,987
- ----------------------------------------------------------------------
Total general and administrative expenses 199,478 204,780
Amortization of core value of deposits 3,419 4,315
- ----------------------------------------------------------------------
Total other expense 202,897 209,095
- ----------------------------------------------------------------------
Income Before Income Taxes 75,862 92,704
Provision for Income Taxes 19,009 25,882
- ----------------------------------------------------------------------
Net Income $56,853 $66,822
- ----------------------------------------------------------------------
Net Income Per Basic Share $1.41 $1.51
Net Income Per Diluted Share $1.38 $1.50
- ----------------------------------------------------------------------
Dividends Declared Per Common Share $.395 $.29
- ----------------------------------------------------------------------
Weighted Average Shares Outstanding Used in
Basic EPS 40,361,719 44,306,196
Weighted Average Shares Outstanding Used in
Diluted EPS 41,068,710 44,645,852
- ----------------------------------------------------------------------
COMMERCIAL FEDERAL CORPORATION
MORTGAGE SERVICING RIGHTS AND MORTGAGE BANKING OPERATIONS
(Dollars in Thousands)
- ----------------------------------------------------------------------
Three Months Ended
September 30, June 30, September 30,
----------------------------------------
2004 2004 2003
- ----------------------------------------------------------------------
Mortgage Servicing Rights:
Beginning balance before
valuation allowance $175,266 $178,850 $190,398
Mortgage servicing rights
retained through loan
sales 6,966 11,316 19,916
Bulk purchases of mortgage
servicing rights - - 8,942
Amortization expense (10,616) (14,900) (21,989)
------------- ------------ -------------
Ending balance before
valuation allowance 171,616 175,266 197,267
------------- ------------ -------------
Valuation allowance,
beginning balance 29,366 68,232 121,465
Amounts charged (credited)
to operations 21,644 (38,866) (51,800)
------------- ------------ -------------
Valuation allowance, ending
balance 51,010 29,366 69,665
------------- ------------ -------------
Mortgage servicing rights,
net of valuation allowance $120,606 $145,900 $127,602
============= ============ =============
Fair value at the periods
ended $121,876 $157,955 $129,136
============= ============ =============
Mortgage servicing rights as a
percentage of servicing
portfolio (1) 1.11% 1.32% 1.13%
============= ============ =============
Mortgage servicing rights as a
multiple of servicing
fees (1) 3.25x 3.88x 3.42x
============= ============ =============
(1) Ratios are calculated based on the net book value of mortgage
servicing rights after deducting the valuation allowance.
- ----------------------------------------------------------------------
Loans Serviced for Other
Institutions:
Beginning balance $11,049,759 $11,166,995 $11,864,111
Additions to portfolio 479,563 870,423 1,562,189
Purchases - - 529,639
Loan payments (624,266) (976,213) (2,195,435)
Sales of loans serviced - - 8,054
Sub servicing released, net
of payments and other
adjustments - - (457,012)
Other items, net (2,099) (11,446) (3,984)
------------- ------------ -------------
Ending balance including
sub servicing $10,902,957 $11,049,759 $11,307,562
============= ============ =============
Weighted average servicing
fee 0.34% 0.34% 0.33%
============= ============ =============
Weighted average coupon
note rate 5.90% 5.94% 6.18%
============= ============ =============
- ----------------------------------------------------------------------
Certain Components of Mortgage
Banking and Treasury
Activities:
Loan servicing fees $10,754 $10,726 $10,911
Amortization of mortgage
servicing rights (10,616) (14,900) (21,989)
------------- ------------ -------------
Loan servicing fees, net 138 (4,174) (11,078)
Mortgage servicing rights
valuation adjustment (21,644) 38,866 51,800
Gain (loss) on sales of
securities and changes in
fair values of
derivatives, net 21,253 (38,990) (31,294)
Gain on sales of loans 1,393 2,516 9,329
------------- ------------ -------------
Total of certain components
of mortgage banking and
treasury activities $1,140 $(1,782) $18,757
COMMERCIAL FEDERAL CORPORATION
DEPOSITS AND LOANS
(In Thousands)
- ----------------------------------------------------------------------
September 30, June 30, September 30,
2004 2004 2003
- ----------------------------------------------------------------------
Deposits by State:
Colorado $2,043,870 $2,015,803 $2,042,681
Nebraska 1,510,313 1,487,175 1,776,262
Iowa 1,024,832 1,043,580 1,061,398
Kansas 607,942 610,981 639,769
Oklahoma 525,922 548,469 538,570
Missouri 297,633 305,925 314,335
Arizona 238,710 230,814 219,844
------------- ----------- -------------
Total deposits $6,249,222 $6,242,747 $6,592,859
============= =========== =============
Deposits by Type:
Checking accounts -
Interest bearing $557,118 $551,571 $524,871
Noninterest bearing 672,013 637,790 658,575
------------- ----------- -------------
Total checking excluding
escrow accounts 1,229,131 1,189,361 1,183,446
Money market accounts 1,195,326 1,203,268 1,042,342
Savings accounts 1,218,777 1,211,344 1,334,492
------------- ----------- -------------
Total core deposits 3,643,234 3,603,973 3,560,280
Custodial escrow accounts 252,573 285,667 443,132
Certificates of deposit 2,353,415 2,353,107 2,589,447
------------- ----------- -------------
Total deposits $6,249,222 $6,242,747 $6,592,859
============= =========== =============
- ----------------------------------------------------------------------
Loans Receivable, before
allowance for losses:
Residential real estate $2,813,779 $2,978,082 $3,456,176
Commercial real estate 1,963,904 1,976,705 1,943,384
Construction, net of loans-
in-process 624,491 614,017 493,145
Commercial operating and
other 586,922 543,719 519,314
Consumer home equity 967,556 914,967 840,825
Consumer other 789,762 760,898 749,488
------------- ----------- -------------
Total loans receivable,
before allowance for losses $7,746,414 $7,788,388 $8,002,332
============= =========== =============
COMMERCIAL FEDERAL CORPORATION
ALLOWANCE FOR LOSSES ON LOANS
(In Thousands)
- ----------------------------------------------------------------------
September 30, June 30, September 30,
2004 2004 2003
- ----------------------------------------------------------------------
THREE MONTHS ENDED:
- -------------------
Beginning balance $97,082 $97,765 $108,740
Provision charged to operations 2,869 3,106 5,475
Charge-offs (6,069) (5,711) (6,787)
Recoveries 975 1,922 1,295
Other - - (715)
- ----------------------------------------------------------------------
Ending balance $94,857 $97,082 $108,008
- ----------------------------------------------------------------------
NINE MONTHS ENDED:
- ------------------
Beginning balance $108,154 n/a $106,291
Provision charged to operations 10,828 n/a 16,894
Charge-offs (28,592) n/a (20,085)
Recoveries 4,467 n/a 5,687
Other - n/a (779)
- ----------------------------------------------------------------------
Ending balance $94,857 n/a $108,008
- ----------------------------------------------------------------------
Summary of charge-offs, net of
recoveries:
- ------------------------------
Three months ended $5,094 $3,789 $5,492
============= ========== =============
Nine months ended $24,125 n/a $14,398
============= =============
- ----------------------------------------------------------------------
Allocation of allowance:
- ------------------------
Specific $8,395 $4,613 $5,659
Special problem 15,342 23,413 32,749
Nonspecific 71,120 69,056 69,600
------------- ---------- -------------
$94,857 $97,082 $108,008
============= ========== =============
COMMERCIAL FEDERAL CORPORATION
ASSET QUALITY
(Dollars in Thousands)
- ----------------------------------------------------------------------
September 30, June 30, September 30,
2004 2004 2003
- ----------------------------------------------------------------------
Nonperforming Assets:
Nonperforming loans (1):
Residential real
estate (1) $8,548 $7,381 $33,802
Residential construction 4,245 3,020 3,556
Commercial real estate 22,226 9,922 8,701
Commercial construction 968 842 3,160
All other 7,663 7,411 7,861
------------- ------------ -------------
Total nonperforming
loans 43,650 28,576 57,080
------------- ------------ -------------
Foreclosed real estate:
Residential 13,435 12,315 12,588
Residential construction 1,205 1,009 4,365
Commercial 631 448 4,964
Commercial construction 1,776 1,776 26,433
------------- ------------ -------------
Total foreclosed real
estate 17,047 15,548 48,350
------------- ------------ -------------
Troubled debt restructurings
- commercial 4,676 4,690 4,933
------------- ------------ -------------
Total nonperforming assets $65,373 $48,814 $110,363
============= ============ =============
Total assets $11,416,731 $11,713,841 $12,517,286
============= ============ =============
Nonperforming assets to total
assets .57% .42% .88%
============= ============ =============
Summary of Nonperforming
Assets:
Residential $27,433 $23,725 $54,311
Nonresidential 37,940 25,089 56,052
------------- ------------ -------------
$65,373 $48,814 $110,363
============= ============ =============
- ----------------------------------------------------------------------
Nonperforming loans to loans
receivable (1)(2) .56% .37% .71%
Nonperforming assets to total
assets (1) .57% .42% .88%
Allowance for loan losses to:
Loans receivable (2) 1.22% 1.25% 1.35%
Total nonperforming
loans (1) 217.31% 339.73% 189.22%
- ----------------------------------------------------------------------
Accruing loans 90 days or more
past due (1):
Residential real estate $18,518 $20,443 $ -
============= ============ =============
- ----------------------------------------------------------------------
(1) Effective June 30, 2004, management of the Corporation changed its
estimate of determining when the collection of residential first
mortgage loans becomes doubtful and when the loans are therefore
placed on nonaccrual status.
(2) 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)
- ----------------------------------------------------------------------
September 30, June 30, September 30,
2004 2004 2003
- ----------------------------------------------------------------------
Cash, investment securities
and FHLB stock $1,430,969 $1,434,920 $1,459,357
Mortgage-backed securities 1,068,713 1,133,434 1,130,463
Loans held for sale, net 287,757 444,774 732,494
Loans receivable, net 7,651,557 7,691,306 7,894,337
Core value of deposits, net 13,413 14,397 18,050
Goodwill 162,717 162,717 162,717
Other assets 801,605 832,293 1,119,868
Total assets 11,416,731 11,713,841 12,517,286
- ----------------------------------------------------------------------
Deposits 6,249,222 6,242,747 6,592,859
Advances from Federal Home
Loan Bank 3,767,837 4,061,840 3,959,906
Other borrowings 424,327 419,848 620,452
Other liabilities 207,487 238,084 590,607
Stockholders' equity 767,858 751,322 753,462
Total liabilities and
stockholders' equity 11,416,731 11,713,841 12,517,286
- ----------------------------------------------------------------------
Book value per common share $19.51 $18.84 $17.78
Stock price $26.98 $27.10 $24.35
Common shares outstanding 39,352,564 39,870,919 42,381,367
Weighted average shares
outstanding per basic EPS 39,583,989 40,527,096 43,523,639
Weighted average shares
outstanding per diluted EPS 40,250,103 41,199,954 43,933,969
- ----------------------------------------------------------------------
Nonperforming assets $65,373 $48,814 $110,363
Nonperforming assets to total
assets .57% .42% .88%
Weighted average interest
rates on a taxable-equivalent
basis (durings):
Yield on interest-earning
assets 5.48% 5.46% 5.33%
Rate on deposits and
interest-bearing
liabilities 2.88% 2.67% 3.11%
Net interest rate spread 2.60% 2.79% 2.22%
Net annualized yield on
interest-earning assets 2.55% 2.74% 2.16%
Loans serviced for other
institutions $10,902,957 $11,049,759 $11,307,562
- ----------------------------------------------------------------------
Three months ended:
- -------------------
Return on average assets .70% .63% .68%
Return on average equity 10.58% 10.16% 12.35%
Average equity to average
assets 6.61% 6.20% 5.51%
G & A expenses to average
assets 2.19% 2.27% 2.09%
Operating efficiency ratio 67.37% 69.56% 64.49%
- ----------------------------------------------------------------------
Nine months ended:
- ------------------
Return on average assets .64% n/a .68%
Return on average equity 10.08% n/a 11.95%
Average equity to average
assets 6.34% n/a 5.72%
G & A expenses to average
assets 2.24% n/a 2.10%
Operating efficiency ratio 68.88% n/a 64.26%
- ----------------------------------------------------------------------
COMMERCIAL FEDERAL CORPORATION
AVERAGE BALANCES AND REGULATORY CAPITAL
(Dollars in Thousands)
- ----------------------------------------------------------------------
Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
2004 2004 2004 2003 2003
- ----------------------------------------------------------------------
Three Months
Ended:
- ------------
Average
Balances:
Total
assets $11,559,998 $11,878,729 $12,158,982 $12,164,033 $12,857,371
Total
loans,
net 8,062,478 8,256,840 8,292,320 8,410,129 8,847,035
Total
loans,
before
allowances
for loan
losses 8,159,234 8,354,536 8,400,194 8,518,224 8,955,643
Total
mortgage-
backed
secur-
ities 1,086,720 1,181,297 1,278,179 1,293,949 1,160,610
Total
deposits 6,254,687 6,409,826 6,571,111 6,496,315 6,821,942
Total
stock-
holders'
equity 764,614 736,133 755,722 729,062 708,267
Total
interest-
earning
assets 10,406,515 10,726,414 10,878,284 10,999,591 11,553,340
Total
deposits
and
interest-
bearing
liabil-
ities 10,600,208 10,932,101 11,187,969 11,187,875 11,770,123
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Sept. 30, Dec. 31, Dec. 31,
2004 2003 2002
- ----------------------------------------------------------------------
Year to Date:
- -------------
Average Balances:
Total assets $11,864,787 $12,805,574 $13,175,562
Total loans, net 8,203,363 8,704,321 8,681,401
Total loans, before
allowances for loan
losses 8,304,123 8,812,133 8,786,551
Total mortgage-backed
securities 1,181,718 1,362,145 1,799,174
Total deposits 6,411,301 6,629,299 6,258,302
Total stockholders'
equity 752,202 741,337 758,659
Total interest-
earning assets 10,669,441 11,557,322 11,974,586
Total deposits and
interest-bearing
liabilities 10,905,641 11,697,711 12,044,641
- ----------------------------------------------------------------------
Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
2004 2004 2004 2003 2003
- ----------------------------------------------------------------------
Regulatory
Capital:
- ----------
Tangible $713,324 $727,684 $721,410 $710,670 $741,185
Core 713,324 727,684 721,535 704,350 730,186
Total risk-
based 833,679 855,225 852,638 838,437 866,764
Tier 1
risk-based 709,740 725,279 721,535 704,350 730,186
Tangible % 6.37% 6.31% 6.00% 5.93% 6.03%
Core % 6.37% 6.31% 6.00% 5.88% 5.95%
Total risk-
based % 11.06% 11.25% 11.02% 10.87% 10.81%
Tier 1
risk-
based % 9.42% 9.54% 9.31% 9.13% 9.10%
CONTACT: Commercial Federal Corporation, Omaha
Investor Relations:
Hal A. Garyn, 402-514-5336