ALAB Astera Labs Inc

Alabama National BanCorporation ("ANB") (NASDAQ/NM: ALAB) today announced record earnings for the quarter and nine months ended September 30, 2005 and declared a quarterly cash dividend of $0.3375 per share. For the 2005 third quarter, ANB reported earnings of $17.1 million, up 16.2% from the 2004 third quarter. Diluted earnings per share of $0.98 were up 13.5% from the year ago third quarter. Diluted cash earnings per share were $1.01, up 12.5% from the 2004 third quarter. Total revenue grew to $69.5 million in the 2005 third quarter, up 11.7% from $62.2 million in the year ago third quarter. Noninterest income represented 26.1% of third quarter 2005 total revenue, down from 29.9% in the 2004 third quarter. ANB's taxable equivalent net interest margin was 3.94% for the 2005 third quarter, up 13 basis points from the 2004 third quarter and up 1 basis point from the second quarter of 2005. "Our employees have delivered excellent performance for our share owners in the first nine months of 2005," said John H. Holcomb, III, Chairman and CEO. "Our focus on asset quality along with successful loan and deposit growth will continue to be the key factors that allow us to deliver excellent growth within an acceptable risk profile." Year-to-date earnings were $48.8 million, an increase of 24.2% over the $39.3 million in earnings reported for the same period in 2004. Diluted earnings per share for the first nine months of 2005 were $2.80, up 11.9% from the $2.50 earned in the same period in 2004. Nine months 2005 cash earnings per diluted share of $2.89 were up 11.4% over 2004 levels. Total assets at September 30, 2005 were $5.9 billion. Loan growth (excluding loans held for sale) was 23.8% on an annualized basis during the 2005 third quarter and 22.1% on a year-to-date annualized basis. Deposits grew at an 8.4% annualized rate from June 30, 2005 and at an 11.5% annualized rate from December 31, 2004, ending the September 30, 2005 period at $4.3 billion. Quarter-end share owners' equity was $562 million, or $32.89 per share, and tangible book value per share was $23.65. During the 2005 third quarter, ANB recognized $398 thousand in net charge-offs, or an annualized rate of 0.04% of average loans. Combined with first six months net charge-offs, ANB's year-to-date loss of $880 thousand represents a rate of 0.03% in net losses to average loans and leases. Quarter-end nonperforming assets were 0.20% of period end loans and other real estate. The allowance for loan and lease losses covered nonperforming loans 697%. The Board of Directors of Alabama National today announced a quarterly cash dividend of $0.3375 per share. The dividend is payable January 3, 2006, to stockholders of record at the close of business on December 15, 2005. ANB is a bank holding company operating 85 banking locations through ten bank subsidiaries in Alabama, Florida and Georgia. Alabama subsidiaries include: First American Bank in north central Alabama; Bank of Dadeville; and Alabama Exchange Bank in Tuskegee. Florida subsidiaries are: First Gulf Bank, N.A., in Escambia County, Florida and Baldwin County, AL; Community Bank of Naples, N.A.; Millennium Bank in Gainesville; Public Bank in metropolitan Orlando; CypressCoquina Bank in Ormond Beach; and Indian River National Bank in Vero Beach. ANB has one subsidiary in Georgia, Georgia State Bank in metropolitan Atlanta. ANB provides full banking services to individuals and businesses. Brokerage services are provided to customers through First American Bank's wholly owned subsidiary, NBC Securities, Inc. Investments are not bank guaranteed, not FDIC insured and may lose value. Insurance services are provided through ANB Insurance Services, Inc., a wholly owned subsidiary of First American Bank. Alabama National BanCorporation common stock is traded on the NASDAQ National Market System under the symbol "ALAB." Conference Call Instructions: Alabama National will discuss financial results for the third quarter completed September 30, 2005 as well as its goals and general outlook for the remainder of 2005 in a conference call to be held Thursday, October 20, 2005 at 9:00 a.m. Central Time. A listen-only simulcast and replay of Alabama National's conference call will be available on-line at the following Internet links: www.alabamanational.com, under "In The News," or www.viavid.net, on October 20, beginning at 9:00 a.m. Central Time. The on-line replay will follow immediately and continue for 30 days. For live interactive access to the teleconference, please dial 1-800-938-1464 at 9:00 a.m. Central Time on October 20. For those without Internet access, a telephonic replay will be available through November 20 by dialing 1-800-642-1687 and entering Conference ID number 9985894. Many of the comparisons of financial data from period to period presented in the narrative of this release have been rounded from actual values reported in the attached selected unaudited financial tables. The percentage changes presented above are based on a comparison of the actual values recorded in the attached tables, not the rounded values. This press release, including the attached selected unaudited financial tables which are a part of this release, contains financial information determined by methods other than in accordance with generally accepted accounting principles ("GAAP"). These "non-GAAP" financial measures are "cash earnings" (cash earnings per share), "tangible book value" (tangible book value per share), "return on average tangible equity" and "return on average tangible assets." ANB's management uses these non-GAAP measures in its analysis of ANB's performance. Cash earnings is defined as net income plus amortization expense (net of tax) applicable to intangible assets that do not qualify as regulatory capital. Cash earnings per basic and diluted share is defined as cash earnings divided by basic and diluted common shares outstanding. ANB's management includes cash earnings measures to compare the company's earnings exclusive of non-cash amortization expense and because it is a measure used by many investors as part of their analysis of ANB's performance. Tangible book value is defined as total equity reduced by recorded intangible assets. Tangible book value per share is defined as tangible book value divided by total common shares outstanding. This measure is important to many investors in the marketplace that are interested in changes from period to period in book value per share exclusive of changes in intangible assets. Goodwill, an intangible asset that is recorded in a purchase business combination, has the effect of increasing total book value while not increasing the tangible assets of the company. For companies such as Alabama National that have engaged in multiple business combinations, purchase accounting requires the recording of significant amounts of goodwill related to such transactions. Return on average tangible equity is defined as earnings for the period (annualized for the quarterly period) divided by average equity reduced by average goodwill and other intangible assets. Return on average tangible assets is defined as earnings for the period (annualized for the quarterly period) divided by average assets reduced by average goodwill and other intangible assets. ANB's management includes these measures because it believes that they are important when measuring the company's performance exclusive of the effects of goodwill and other intangibles recorded in recent acquisitions, and these measures are used by many investors as part of their analysis of ANB. These disclosures should not be viewed as a substitute for results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Refer to the "Reconciliation Table" in the attached schedules for a more detailed analysis of these non-GAAP performance measures and the most directly comparable GAAP measures. This press release contains forward-looking statements as defined by federal securities laws. Statements contained in this press release which are not historical facts are forward-looking statements. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. ANB undertakes no obligation to update these statements following the date of this press release. In addition, ANB, through its senior management, may make from time to time forward-looking public statements concerning the matters described herein. Such forward-looking statements are necessarily estimates reflecting the best judgment of ANB's senior management based upon current information and involve a number of risks and uncertainties. Certain factors which could affect the accuracy of such forward-looking statements are identified in the public filings made by ANB with the Securities and Exchange Commission, and forward looking statements contained in this press release or in other public statements of ANB or its senior management should be considered in light of those factors. There can be no assurance that such factors or other factors will not affect the accuracy of such forward-looking statements. -0- *T ALABAMA NATIONAL BANCORPORATION (Unaudited Financial Highlights) (in thousands, except per share amounts and percentages) Three Months Ended September 30, --------------------------- Percentage 2005 2004 Change (b) ------------- ------------- ----------- Net interest income $51,359 $43,614 17.8% Noninterest income 18,098 18,566 (2.5) Total revenue 69,457 62,180 11.7 Provision for loan and lease losses 2,440 1,624 50.2 Noninterest expense 40,990 38,208 7.3 Net income before income taxes 26,027 22,348 16.5 Income taxes 8,944 7,642 17.0 Net income $17,083 $14,706 16.2% Weighted average common and common equivalent shares outstanding Basic 17,198 16,765 2.6% Diluted 17,412 17,013 2.3 Net income per common share Basic $.99 $.88 13.2% Diluted .98 .86 13.5 Cash earnings (a) Total $17,603 $15,287 15.1% Basic 1.02 .91 12.3 Diluted 1.01 .90 12.5 Cash dividends declared on common stock $.3375 $.3125 Return on average assets 1.18% 1.15% Return on average tangible assets 1.22 1.19 Return on average equity 12.20 11.77 Return on average tangible equity 16.94 17.19 Noninterest Income Service charge income $4,181 $4,537 (7.8)% Investment services income 1,086 2,685 (59.6) Securities brokerage and trust income 4,641 4,056 14.4 Gain on sale of mortgages 3,565 2,852 25.0 Gain (loss) on disposal of assets (21) (68) (69.1) Bank owned life insurance 737 637 15.7 Insurance commissions 825 833 (1.0) Other 3,084 3,034 1.6 ------------- ------------- Total noninterest income $18,098 $18,566 (2.5)% ============= ============= (a) Cash basis earnings exclude the effect on earnings of amortization expense applicable to intangible assets that do not qualify as regulatory capital. (b) Percentage change based on actual not rounded values. Nine Months Ended September 30, --------------------------- Percentage 2005 2004 Change (b) ------------- ------------- ----------- Net interest income $147,351 $117,918 25.0% Noninterest income 53,110 55,494 (4.3) Total revenue 200,461 173,412 15.6 Provision for loan and lease losses 5,975 4,130 44.7 Noninterest expense 120,366 109,991 9.4 Net income before income taxes 74,120 59,291 25.0 Income taxes 25,362 20,034 26.6 Net income $48,758 $39,257 24.2% Weighted average common and common equivalent shares outstanding Basic 17,185 15,427 11.4% Diluted 17,404 15,680 11.0 Net income per common share Basic $2.84 $2.54 11.5% Diluted 2.80 2.50 11.9 Cash earnings (a) Total $50,359 $40,741 23.6% Basic 2.93 2.64 11.0 Diluted 2.89 2.60 11.4 Cash dividends declared on common stock $1.0125 $.9375 Return on average assets 1.17% 1.11% Return on average tangible assets 1.21 1.14 Return on average equity 11.96 12.39 Return on average tangible equity 16.71 17.47 Noninterest Income Service charge income $12,265 $12,868 (4.7)% Investment services income 3,089 9,865 (68.7) Securities brokerage and trust income 14,082 12,352 14.0 Gain on sale of mortgages 9,652 8,885 8.6 Gain (loss) on disposal of assets 690 (31) NM Securities gains 72 - NM Bank owned life insurance 2,136 2,047 4.3 Insurance commissions 2,453 2,570 (4.6) Other 8,671 6,938 25.0 ------------- ------------- Total noninterest income $53,110 $55,494 (4.3)% ============= ============= (a) Cash basis earnings exclude the effect on earnings of amortization expense applicable to intangible assets that do not qualify as regulatory capital. (b) Percentage change based on actual not rounded values. NM - Not meaningful September 30, December 31, Percentage 2005 2004 Change ------------- ------------- ----------- Total assets $5,887,078 $5,315,869 10.7% Earning assets 5,330,815 4,841,255 10.1 Securities (a) 1,148,333 1,200,407 (4.3) Loans held for sale 33,128 22,313 48.5 Loans and leases, net of unearned income 4,059,919 3,495,701 16.1 Allowance for loan and lease losses 51,679 46,584 10.9 Deposits 4,269,593 3,934,723 8.5 Short-term borrowings 78,000 30,500 155.7 Long-term debt 311,425 393,688 (20.9) Stockholders' equity 562,448 529,543 6.2 (a) Excludes trading securities ASSET QUALITY ANALYSIS (in thousands, except percentages) As of / For the Three Months Ended Sept 30, June 30, Sept 30, 2005 2005 2004 ------------- ------------- ----------- Nonaccrual loans $7,411 $6,949 $8,252 Restructured loans - - - Loans past due 90 days or more and still accruing 0 0 0 Total nonperforming loans 7,411 6,949 8,252 Other real estate owned 668 450 1,639 Total nonperforming assets 8,079 7,399 9,891 Total non performing assets as a percentage of period-end loans and other real estate (a) 0.20% 0.19% 0.29% Allowance for loan and lease losses 51,679 49,637 45,903 Provision for loan and lease losses 2,440 1,991 1,624 Loans charged off 791 529 825 Loan recoveries 393 349 251 Net loan and lease losses 398 180 574 Allowance for loan and lease losses as a percentage of period-end loans and leases (a) 1.27% 1.29% 1.35% Allowance for loan and lease losses as a percentage of period-end nonperforming loans 697.33 714.30 556.27 Net losses to average loans and leases (annualized) 0.04 0.02 0.07 For the Nine Months Ended September 30, --------------------------- Percentage 2005 2004 Change ------------- ------------- ----------- Provision for loan and lease losses $5,975 $4,130 44.7% Loans charged off 1,809 3,944 (54.1) Loan recoveries 929 2,245 (58.6) Net loan and lease losses 880 1,699 (48.2) Net losses to average loans and leases (annualized) 0.03% 0.07% (a) Excludes loans held for sale TAXABLE EQUIVALENT YIELDS/RATES Three Months Ended Sept 30, June 30, Sept 30, 2005 2005 2004 ------------- ------------- ----------- Interest income: Interest and fees on loans 6.78% 6.48% 5.73% Interest on securities: Taxable 4.15 4.17 4.05 Non-taxable 6.87 6.54 6.05 Total interest earning assets 6.18 5.91 5.27 Interest expense: Interest on deposits 2.39 2.11 1.54 Interest on short-term borrowing 4.14 3.53 1.99 Interest on long-term debt 4.29 4.12 3.41 Total interest bearing liabilities 2.66 2.36 1.72 Net interest spread 3.52 3.55 3.55 Net interest margin 3.94 3.93 3.81 Nine Months Ended September 30, --------------------------- 2005 2004 ------------- ------------- Interest income: Interest and fees on loans 6.51% 5.65% Interest on securities: Taxable 4.17 3.93 Non-taxable 6.54 6.20 Total interest earning assets 5.93 5.18 Interest expense: Interest on deposits 2.12 1.56 Interest on short-term borrowing 3.74 1.77 Interest on long-term debt 3.99 3.37 Total interest bearing liabilities 2.37 1.70 Net interest spread 3.56 3.48 Net interest margin 3.94 3.71 STOCKHOLDERS' EQUITY AND CAPITAL RATIOS September 30, December 31, 2005 2004 ------------- ------------- Stockholders' Equity: Equity to assets 9.55% 9.96% Leverage ratio 8.30 8.44 Book value per common share (a) $32.89 $31.15 Tangible book value per common share (a)(b) 23.65 21.99 Ending shares outstanding 17,100 16,999 (a) Includes a cumulative mark to market adjustment to equity of $(0.34) and $(0.06) per share at September 30, 2005 and December 31, 2004, respectively. (b) Total equity reduced by intangible assets divided by common shares outstanding. RECONCILIATION TABLE (in thousands, except per share amounts and percentages) Three Months Ended Nine Months Ended September 30, September 30, ----------------------- ----------------------- 2005 2004 2005 2004 ----------- ----------- ----------- ----------- Net income $17,083 $14,706 $48,758 $39,257 Amortization of intangibles, net of tax 520 581 1,601 1,484 Cash earnings $17,603 $15,287 $50,359 $40,741 Net income per common share - basic $0.99 $0.88 $2.84 $2.54 Effect of amortization of intangibles per share 0.03 0.03 0.09 0.10 Cash earnings per common share - basic $1.02 $0.91 $2.93 $2.64 Net income per common share - diluted $0.98 $0.86 $2.80 $2.50 Effect of amortization of intangibles per share 0.03 0.04 0.09 0.10 Cash earnings per common share - diluted $1.01 $0.90 $2.89 $2.60 Average assets $5,731,482 $5,075,045 $5,556,994 $4,710,523 Average intangible assets (155,349) (156,690) (155,157) (123,007) Average tangible assets $5,576,133 $4,918,355 $5,401,837 $4,587,516 Return on average assets 1.18% 1.15% 1.17% 1.11% Effect of average intangible assets 0.04 0.04 0.04 0.03 Return on average tangible assets 1.22% 1.19% 1.21% 1.14% Average equity $555,335 $497,023 $545,185 $423,176 Average intangible assets (155,349) (156,690) (155,157) (123,007) Average tangible equity $399,986 $340,333 $390,028 $300,169 Return on average equity 12.20% 11.77% 11.96% 12.39% Effect of average intangible assets 4.74 5.42 4.75 5.08 Return on average tangible equity 16.94% 17.19% 16.71% 17.47% As of September 30, December 31, 2005 2004 ------------- ------------- Book value $562,448 $529,543 Intangible assets (158,031) (155,682) Tangible book value $404,417 $373,861 Book value per common share $32.89 $31.15 Effect of intangible assets per share (9.24) (9.16) Tangible book value per common share $23.65 $21.99 Alabama National BanCorporation and Subsidiaries Consolidated Statements of Financial Condition (Unaudited) ---------------------------------------------------------- (In thousands, except share amounts) September 30, December 31, 2005 2004 ------------- ------------ Assets Cash and due from banks $202,512 $155,027 Interest-bearing deposits in other banks 10,833 21,274 Federal funds sold and securities purchased under resell agreements 78,602 100,970 Trading securities, at fair value - 590 Investment securities (fair values of $573,115 and $566,602) 580,088 568,493 Securities available for sale, at fair value 568,245 631,914 Loans held for sale 33,128 22,313 Loans and leases 4,063,134 3,499,353 Unearned income (3,215) (3,652) ------------- ------------ Loans and leases, net of unearned income 4,059,919 3,495,701 Allowance for loan and lease losses (51,679) (46,584) ------------- ------------ Net loans and leases 4,008,240 3,449,117 Property, equipment and leasehold improvements, net 109,654 99,455 Goodwill 148,088 144,396 Other intangible assets, net 9,943 11,286 Cash surrender value of life insurance 73,794 71,535 Receivable from investment division customers 11,061 2,223 Other assets 52,890 37,276 ------------- ------------ Totals $5,887,078 $5,315,869 ============= ============ Liabilities and Stockholders' Equity Deposits: Noninterest bearing $769,412 $683,245 Interest bearing 3,500,181 3,251,478 ------------- ------------ Total deposits 4,269,593 3,934,723 Federal funds purchased and securities sold under repurchase agreements 596,162 379,114 Treasury, tax and loan accounts - 2,217 Accrued expenses and other liabilities 58,389 43,861 Payable for securities purchased for investment division customers 11,061 2,223 Short-term borrowings 78,000 30,500 Long-term debt 311,425 393,688 ------------- ------------ Total liabilities 5,324,630 4,786,326 Common stock, $1 par; 50,000,000 and 27,500,000 shares authorized at September 30, 2005 and December 31, 2004, respectively; 17,100,178 and 16,998,918 outstanding at September 30, 2005 and December 31, 2004, respectively 17,100 16,999 Additional paid-in capital 346,651 340,161 Retained earnings 204,568 173,345 Accumulated other comprehensive loss, net of tax (5,871) (962) ------------- ------------ Total stockholders' equity 562,448 529,543 ------------- ------------ Totals $5,887,078 $5,315,869 ============= ============ Alabama National BanCorporation and Subsidiaries Consolidated Statements of Income (Unaudited) ------------------------------------------------ (In thousands, except per share data) For the three months For the nine months ended September 30, ended September 30, -------------------- ------------------- 2005 2004 2005 2004 ---------- --------- --------- --------- Interest income: Interest and fees on loans and leases $67,831 $48,320 $184,051 $132,632 Interest on securities 11,985 11,981 36,311 31,833 Interest on deposits in other banks 66 18 191 46 Interest on trading securities 7 9 16 44 Interest on federal funds sold and securities purchased under resell agreements 798 244 2,035 544 Total interest income 80,687 60,572 222,604 165,099 Interest expense: Interest on deposits 20,690 11,924 53,085 33,403 Interest on federal funds purchased and securities sold under repurchase agreements 4,519 1,394 10,148 3,354 Interest on short-term borrowings 754 186 2,030 765 Interest on long-term debt 3,365 3,454 9,990 9,659 --------- --------- --------- --------- Total interest expense 29,328 16,958 75,253 47,181 --------- --------- --------- --------- Net interest income 51,359 43,614 147,351 117,918 Provision for loan and lease losses 2,440 1,624 5,975 4,130 --------- --------- --------- --------- Net interest income after provision for loan and lease losses 48,919 41,990 141,376 113,788 Noninterest income: Securities gains - - 72 - Gain (loss) on disposition of assets (21) (68) 690 (31) Service charges on deposit accounts 4,181 4,537 12,265 12,868 Investment services income 1,086 2,685 3,089 9,865 Securities brokerage and trust income 4,641 4,056 14,082 12,352 Gain on sale of mortgages 3,565 2,852 9,652 8,885 Bank owned life insurance 737 637 2,136 2,047 Insurance commissions 825 833 2,453 2,570 Other 3,084 3,034 8,671 6,938 --------- --------- --------- --------- Total noninterest income 18,098 18,566 53,110 55,494 Noninterest expense: Salaries and employee benefits 21,680 19,630 63,086 56,301 Commission based compensation 4,051 4,357 11,556 13,906 Occupancy and equipment expenses 4,540 4,085 13,021 11,450 Amortization of intangibles 766 858 2,360 2,182 Other 9,953 9,278 30,343 26,152 --------- --------- --------- --------- Total noninterest expense 40,990 38,208 120,366 109,991 --------- --------- --------- --------- Income before provision for income taxes 26,027 22,348 74,120 59,291 Provision for income taxes 8,944 7,642 25,362 20,034 --------- --------- --------- --------- Net income $17,083 $14,706 $48,758 $39,257 ========= ========= ========= ========= Net income per common share (basic) $.99 $.88 $2.84 $2.54 ========= ========= ========= ========= Weighted average common shares outstanding (basic) 17,198 16,765 17,185 15,427 ========= ========= ========= ========= Net income per common share (diluted) $.98 $.86 $2.80 $2.50 ========= ========= ========= ========= Weighted average common shares outstanding (diluted) 17,412 17,013 17,404 15,680 ========= ========= ========= ========= AVERAGE BALANCES, INCOME AND EXPENSES AND RATES (Amounts in thousands, except yields and rates) Three Months 09/30/05 ------------------------------ Average Income/ Yield/ Balance Expense Cost ----------- ---------- ------- Assets: Earning assets: Loans and leases (1) $3,977,186 $67,971 6.78% Securities: Taxable 1,089,857 11,412 4.15 Tax exempt 50,167 868 6.87 Cash balances in other banks 7,703 66 3.40 Funds sold 85,872 798 3.69 Trading account securities 713 7 3.90 ----------- ---------- Total earning assets (2) 5,211,498 81,122 6.18 ----------- ---------- Cash and due from banks 171,248 Premises and equipment 101,588 Other assets 297,664 Allowance for loan and lease losses (50,516) ----------- Total assets $5,731,482 =========== Liabilities: Interest-bearing liabilities: Interest-bearing transaction accounts $901,391 $3,602 1.59 Savings deposits 911,046 3,908 1.70 Time deposits 1,622,181 13,180 3.22 Funds purchased 563,345 4,519 3.18 Other short-term borrowings 72,343 754 4.14 Long-term debt 311,469 3,365 4.29 ----------- ---------- Total interest-bearing liabilities 4,381,775 29,328 2.66 ----------- ---------- Demand deposits 729,220 Accrued interest and other liabilities 65,152 Stockholders' equity 555,335 ----------- Total liabilities and stockholders' equity $5,731,482 =========== Net interest spread 3.52% ======= Net interest income/margin on a taxable equivalent basis 51,794 3.94% ======= Tax equivalent adjustment (2) 435 ---------- Net interest income/margin $51,359 3.91% ========== ======= Three Months 09/30/04 ------------------------------ Average Income/ Yield/ Balance Expense Cost ----------- ---------- ------- Assets: Earning assets: Loans and leases (1) $3,360,817 $48,442 5.73% Securities: Taxable 1,120,518 11,406 4.05 Tax exempt 57,312 871 6.05 Cash balances in other banks 5,242 18 1.37 Funds sold 58,722 244 1.65 Trading account securities 778 9 4.60 ----------- ---------- Total earning assets (2) 4,603,389 60,990 5.27 ----------- ---------- Cash and due from banks 160,867 Premises and equipment 90,134 Other assets 266,000 Allowance for loan and lease losses (45,345) ----------- Total assets $5,075,045 =========== Liabilities: Interest-bearing liabilities: Interest-bearing transaction accounts $751,808 $1,440 0.76 Savings deposits 873,149 2,120 0.97 Time deposits 1,449,082 8,364 2.30 Funds purchased 406,405 1,394 1.36 Other short-term borrowings 37,135 186 1.99 Long-term debt 403,007 3,454 3.41 ----------- ---------- Total interest-bearing liabilities 3,920,586 16,958 1.72 ----------- ---------- Demand deposits 602,994 Accrued interest and other liabilities 54,442 Stockholders' equity 497,023 ----------- Total liabilities and stockholders' equity $5,075,045 =========== Net interest spread 3.55% ======= Net interest income/margin on a taxable equivalent basis 44,032 3.81% ======= Tax equivalent adjustment (2) 418 ---------- Net interest income/margin $43,614 3.77% ========== ======= (1) Average loans include nonaccrual loans. All loans and deposits are domestic. (2) Tax equivalent adjustments are based on the assumed rate of 34%, and do not give effect to the disallowance for Federal income tax purposes of interest expense related to certain tax-exempt assets. AVERAGE BALANCES, INCOME AND EXPENSES AND RATES (Amounts in thousands, except yields and rates) Nine Months 09/30/05 ------------------------------ Average Income/ Yield/ Balance Expense Cost ----------- ---------- ------- Assets: Earning assets: Loans and leases (1) $3,787,438 $184,451 6.51% Securities: Taxable 1,110,353 34,592 4.17 Tax exempt 53,227 2,605 6.54 Cash balances in other banks 8,980 191 2.84 Funds sold 87,086 2,035 3.12 Trading account securities 469 16 4.56 ----------- ---------- Total earning assets (2) 5,047,553 223,890 5.93 ----------- ---------- Cash and due from banks 167,836 Premises and equipment 103,573 Other assets 286,779 Allowance for loan and lease losses (48,747) ----------- Total assets $5,556,994 =========== Liabilities: Interest-bearing liabilities: Interest-bearing transaction accounts $897,545 $9,393 1.40 Savings deposits 899,689 9,713 1.44 Time deposits 1,549,789 33,979 2.93 Funds purchased 491,318 10,148 2.76 Other short-term borrowings 72,560 2,030 3.74 Long-term debt 334,501 9,990 3.99 ----------- ---------- Total interest-bearing liabilities 4,245,402 75,253 2.37 ----------- ---------- Demand deposits 708,320 Accrued interest and other liabilities 58,087 Stockholders' equity 545,185 ----------- Total liabilities and stockholders' equity $5,556,994 =========== Net interest spread 3.56% ======= Net interest income/margin on a taxable equivalent basis 148,637 3.94% ======= Tax equivalent adjustment (2) 1,286 ---------- Net interest income/margin $147,351 3.90% ========== ======= Nine Months 09/30/04 ------------------------------ Average Income/ Yield/ Balance Expense Cost ----------- ---------- ------- Assets: Earning assets: Loans and leases (1) $3,142,319 $132,962 5.65% Securities: Taxable 1,029,276 30,274 3.93 Tax exempt 50,860 2,362 6.20 Cash balances in other banks 6,215 46 0.99 Funds sold 58,959 544 1.23 Trading account securities 1,319 44 4.45 ----------- ---------- Total earning assets (2) 4,288,948 166,232 5.18 ----------- ---------- Cash and due from banks 141,475 Premises and equipment 88,204 Other assets 234,469 Allowance for loan and lease losses (42,573) ----------- Total assets $4,710,523 =========== Liabilities: Interest-bearing liabilities: Interest-bearing transaction accounts $695,276 $3,868 0.74 Savings deposits 744,658 5,041 0.90 Time deposits 1,427,334 24,494 2.29 Funds purchased 392,212 3,354 1.14 Other short-term borrowings 57,785 765 1.77 Long-term debt 382,541 9,659 3.37 ----------- ---------- Total interest-bearing liabilities 3,699,806 47,181 1.70 ----------- ---------- Demand deposits 538,931 Accrued interest and other liabilities 48,610 Stockholders' equity 423,176 ----------- Total liabilities and stockholders' equity $4,710,523 =========== Net interest spread 3.48% ======= Net interest income/margin on a taxable equivalent basis 119,051 3.71% ======= Tax equivalent adjustment (2) 1,133 ---------- Net interest income/margin $117,918 3.67% ========== ======= (1) Average loans include nonaccrual loans. All loans and deposits are domestic. (2) Tax equivalent adjustments are based on the assumed rate of 34%, and do not give effect to the disallowance for Federal income tax purposes of interest expense related to certain tax-exempt assets. *T