CCB FINANCIAL CORPORATION
Financial Summary
Unaudited
(In Thousands Except Share and Per Share Data)
Increase
Three Months Ended March 31 (Decrease)
Income Statement 2000 1999 Amount %
Loan income (TE) $ 130,877 117,419 13,458 11.5
Securities income (TE) 29,283 23,402 5,881 25.1
Other interest income (TE) 1,514 6,126 (4,612) (75.3)
Total interest
income (TE) 161,674 146,947 14,727 10.0
Savings/NOW expense 2,258 1,902 356 18.7
Money market account
expense 20,446 15,302 5,144 33.6
Jumbo CD expense 6,309 5,829 480 8.2
Consumer time deposit
expense 36,250 33,203 3,047 9.2
Interest expense on
deposits 65,263 56,236 9,027 16.1
Short-term borrowed funds
expense 5,147 2,549 2,598 101.9
Long-term debt expense 5,556 3,330 2,226 66.8
Total interest expense 75,966 62,115 13,851 22.3
Net interest income (TE) 85,708 84,832 876 1.0
Taxable equivalent
adjustment 4,193 3,974 219 5.5
Net interest income 81,515 80,858 657 .8
Provision for loan losses 2,097 1,811 286 15.8
Net interest income after
provision 79,418 79,047 371 .5
Service charges on
deposits 15,860 14,231 1,629 11.4
Other service charges
and fees 1,111 1,506 (395) (26.2)
Trust income 3,223 2,996 227 7.6
Sales and insurance
commissions 4,020 2,742 1,278 46.6
Merchant discount 3,374 2,576 798 31.0
Secondary marketing and
servicing - mortgages 1,044 4,409 (3,365) (76.3)
Accretion of negative
goodwill 839 839 -- --
Other 2,177 2,621 (444) (16.9)
Investment securities gains 239 124 115 92.7
Investment securities losses (29) (3) (26)(866.7)
Total noninterest income 31,858 32,041 (183) (.6)
Personnel expense 34,150 32,889 1,261 3.8
Occupancy 4,613 4,093 520 12.7
Equipment 4,483 4,090 393 9.6
Foreclosed property expense 108 273 (165) (60.4)
Deposit and other insurance 394 634 (240) (37.9)
Amortization of intangible
assets 1,055 1,025 30 2.9
Other 16,237 16,218 19 .1
Total noninterest
expense 61,040 59,222 1,818 3.1
Income before income
taxes 50,236 51,866 (1,630) (3.1)
Income taxes 17,058 18,113 (1,055) (5.8)
Net income $ 33,178 33,753 (575) (1.7)
Per Share Data
Net income - basic $ .84 .84 -- --
Net income - diluted .84 .83 .01 1.2
Cash dividends per share .29 .26 .03 11.5
CCB FINANCIAL CORPORATION
Financial Summary
Unaudited
(In Thousands Except Share and Per Share Data)
Three Months Ended March 31
Ratios 2000 1999
Net income:
Return on average assets 1.61 % 1.78
Return on average equity 18.42 19.86
Net interest margin 4.38 4.68
Average equity to average assets 8.73 8.98
As of March 31 YTD
Averages
Balance Sheet Data 2000 1999 2000 1999
Assets $ 8,549,687 7,771,593 8,299,603 7,675,964
Loans (all domestic)
(C):
Commercial 1,388,293 1,245,647 1,378,125 1,220,917
Construction and
commercial real
estate 2,121,907 1,682,267 2,052,262 1,629,529
Mortgage 1,128,543 974,628 1,110,608 1,075,473
Consumer 1,406,898 1,247,862 1,394,566 1,241,288
Revolving credit 59,221 205,636 59,497 208,076
Lease financing 74,508 50,218 69,768 48,735
Total loans 6,179,370 5,406,258 6,064,826 5,424,018
Securities held to maturity:
Book value 69,997 75,435 71,307 88,312
Market value 71,905 80,210 -- --
Securities available
for sale (D) 1,613,704 1,378,658 1,609,373 1,269,623
Total investment
securities (D) 1,683,701 1,454,093 1,680,680 1,357,935
Earning assets (D) 8,009,298 7,377,179 7,840,227 7,296,031
Deposits:
Demand deposits
(noninterest-
bearing) 923,812 854,376 826,173 829,826
Savings/NOW accounts 840,696 817,104 805,162 795,821
Money market
accounts 1,984,980 1,823,907 1,914,128 1,794,427
Jumbo CD's 446,933 433,432 438,412 457,524
Consumer time
deposits 2,746,980 2,587,532 2,739,836 2,550,420
Total deposits 6,943,401 6,516,351 6,723,711 6,428,018
Short-term borrowed
funds 393,603 250,308 381,663 244,873
Subordinated notes 32,985 32,985 32,985 32,985
Other long-term debt 350,472 183,610 337,021 183,633
Interest-bearing
liabilities 6,796,649 6,128,877 6,649,207 6,059,683
Shareholders'
equity (E) 721,532 689,233 724,557 689,301
Fair value adjustment
included in
shareholders' equity (18,055) 9,100 (13,769) 13,284
Three Months Ended March 31
Reserve For Loan Losses 2000 1999
Beginning balance $ 77,266 73,182
Provision for loan losses 2,097 1,811
Recoveries 721 708
Charge-offs (1,907) (3,608)
Ending balance $ 78,177 72,093
Net charge-offs to average loans (annualized):
Total .08 % .22
Excluding revolving credit .06 .11
Revolving credit (A) 1.93 3.02
CCB FINANCIAL CORPORATION
Financial Summary (A)
Unaudited
(In Thousands Except Share and Per Share Data)
Three Months Ended March 31
Operating Efficiency Ratios 2000 1999
As a percentage of average assets:
Noninterest income 1.54 % 1.69
Personnel expense 1.65 1.74
Occupancy and equipment expense .44 .44
Other operating expense .86 .96
Noninterest expense 2.95 3.14
Net overhead (noninterest
expense - noninterest income) 1.41 % 1.45
Noninterest expense as a percentage of net
interest income (TE) and other income 51.92 % 50.67
Average assets per employee (in millions) $ 2.97 2.79
Share Data (E)
Weighted average shares outstanding:
Basic 39,468,099 40,237,403
Diluted 39,733,383 40,655,439
As of March 31
2000 1999
Risk-Adjusted Capital (Estimated)
On-balance sheet risk assets $ 6,153,871 5,390,489
Off-balance sheet risk assets 251,924 223,897
Total risk-adjusted assets 6,405,795 5,614,386
Tier I capital 712,324 652,178
Tier II capital 97,968 97,098
Total capital 810,292 749,276
Tier I capital ratio 11.12 % 11.62
Total capital ratio 12.65 13.35
Leverage capital ratio 8.61 8.53
(A) Gain on sale of credit card receivables ($19.9 million after-tax)
which included the premium on the $151 million of receivables sold and
a corresponding $2 million decrease in the reserve for loan losses,
net of various contractual exit fees. Delinquent credit card
receivables were not sold. During the third quarter of 1999, the
majority of these accounts were charged-off.
(B) New York Stock Exchange Symbol: CCB.
(C) Loan balances by category are presented in accordance with the
Corporation's internal classification system which uses the purpose of
the borrowing to determine the reporting category.
(D) Average balances exclude the mark-to-market adjustment for Statement
of Financial Accounting Standards No. 115.
(E) Under a previously announced stock repurchase plan, the Corporation
has repurchased and retired 390,000 shares of its common stock during
2000 and 1,509,634 shares during the year ended December 31, 1999.
The average cost of the shares repurchased was $39.77 and $49.68 per
share for 2000 and 1999, respectively.
CCB FINANCIAL CORPORATION
Average Balances and Net Interest Income Analysis
Three Months Ended March 31, 2000 and 1999
(Taxable Equivalent Basis-In Thousands) (A)
2000 1999
Interest Average Interest Average
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate
Earning assets:
Loans (B) $6,064,826 130,877 8.67 % 5,424,018 117,419 8.76
U.S. Treasury
and agency
obligations (C) 1,559,996 26,758 6.86 1,232,462 20,770 6.74
States and political
subdivision
obligations 71,307 1,530 8.59 78,312 1,703 8.69
Equity securities
and other
securities (C) 49,378 995 8.06 47,161 929 7.88
Federal funds sold
and other short-term
investments 28,515 449 6.34 472,695 5,622 4.82
Time deposits in
other banks 66,205 1,065 6.47 41,383 504 4.94
Total earning
assets (C) 7,840,227 161,674 8.28 7,296,031 146,947 8.13
Non-earning assets:
Cash and due from
banks 217,144 222,738
Premises and
equipment 114,896 93,833
All other assets,
net 127,336 63,362
Total assets $8,299,603 7,675,964
Interest-bearing liabilities:
Savings and time
deposits $5,897,538 65,263 4.45 % 5,598,192 56,236 4.07
Other short-term
borrowed funds 381,663 5,147 5.49 244,873 2,549 4.22
Long-term debt 370,006 5,556 6.05 216,618 3,330 6.22
Total interest-
bearing
liabilities 6,649,207 75,966 4.59 6,059,683 62,115 4.15
Other liabilities and shareholders' equity:
Demand deposits 826,173 829,826
Other liabilities 99,666 97,154
Shareholders'
equity 724,557 689,301
Total liabilities
and shareholders'
equity $8,299,603 7,675,964
Net interest income
and net interest
margin (D) $85,708 4.38 % 84,832 4.68
Interest rate spread (E) 3.69 % 3.98
(A) The taxable equivalent basis is computed using 35% federal and
applicable state tax rates in 2000 and 1999.
(B) The average loan balances include non-accruing loans. Loan fees of
$3,521,000 and $4,536,000 for 2000 and 1999, respectively, are
included in interest income.
(C) The average balances for debt and equity securities exclude the effect
of their mark-to-market adjustment, if any.
(D) Net interest margin is computed by dividing net interest income by
total earning assets.
(E) Interest rate spread equals the earning asset yield minus the
interest-bearing liability rate.
SOURCE CCB Financial Corporation
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