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Table 18 – Consolidated Daily Average Balances, Income/Expense and Average Yields Earned and Rates Paid
Three Months Ended
December 31, 2007 December 31, 2006
(Dollars in millions; yields on taxable-equivalent basis)
Average
Balances
Income/
Expense
Yields/
Rates
Average
Balances
Income/
Expense
Yields/
Rates
Assets
Loans:1
Real estate 1-4 family $31,990.3 $517.4 6.47% $34,345.4 $531.8 6.19%
Real estate construction 13,250.9 238.8 7.15 13,204.0 254.3 7.64
Real estate home equity lines 14,394.8 268.1 7.39 13,722.9 273.4 7.90
Real estate commercial 12,891.6 221.2 6.81 12,784.8 223.1 6.93
Commercial - FTE234,879.3 564.9 6.43 33,965.1 545.8 6.37
Credit card 690.1 2.1 1.23 351.4 5.3 5.99
Consumer - direct 3,949.3 70.7 7.10 4,116.3 76.8 7.40
Consumer - indirect 7,877.3 125.7 6.33 8,231.8 123.8 5.97
Nonaccrual and restructured 1,170.7 4.3 1.45 642.1 5.0 3.06
Total loans1121,094.3 2,013.2 6.60 121,363.8 2,039.3 6.67
Securities available for sale:
Taxable 11,814.6 182.9 6.19 22,170.4 282.0 5.09
Tax-exempt - FTE21,054.0 16.0 6.07 998.0 14.6 5.85
Total securities available for sale - FTE 12,868.6 198.9 6.18 23,168.4 296.6 5.12
Funds sold and securities purchased under agreements to resell 1,066.1 11.6 4.25 1,176.3 15.4 5.15
Loans held for sale 8,777.6 139.2 6.34 12,009.3 198.4 6.61
Interest-bearing deposits 18.2 0.3 6.22 31.2 0.3 3.76
Interest earning trading assets 7,716.2 112.8 5.80 2,365.8 38.6 6.46
Total earning assets 151,541.0 2,476.0 6.48 160,114.8 2,588.6 6.41
Allowance for loan and lease losses (1,114.9) (1,086.1)
Cash and due from banks 3,462.6 3,683.1
Other assets 17,172.3 16,665.6
Noninterest earning trading assets 1,660.9 1,000.5
Unrealized gains on securities available for sale 2,408.6 1,965.4
Total assets $175,130.5 $182,343.3
Liabilities and Shareholders’ Equity
Interest-bearing deposits:
NOW accounts $20,737.2 $121.0 2.32% $18,441.1 $102.2 2.20%
Money market accounts 24,261.5 177.7 2.91 23,075.7 153.1 2.63
Savings 4,177.7 11.1 1.05 5,437.0 23.6 1.73
Consumer time 17,170.7 197.2 4.56 16,682.8 180.8 4.30
Other time 12,353.3 151.5 4.87 12,338.6 148.3 4.77
Total interest-bearing consumer and commercial deposits 78,700.4 658.5 3.32 75,975.2 608.0 3.18
Brokered deposits 12,771.1 168.2 5.15 18,102.0 243.1 5.25
Foreign deposits 2,945.9 32.6 4.33 8,022.2 107.6 5.25
Total interest-bearing deposits 94,417.4 859.3 3.61 102,099.4 958.7 3.73
Funds purchased 2,151.4 24.1 4.38 5,163.4 68.8 5.21
Securities sold under agreements to repurchase 5,706.7 55.2 3.78 7,148.8 86.3 4.72
Interest-bearing trading liabilities 504.2 3.5 2.75 488.5 5.3 4.28
Other short-term borrowings 3,202.8 37.4 4.63 1,913.3 24.4 5.08
Long-term debt 22,808.1 301.7 5.25 17,854.2 259.9 5.78
Total interest-bearing liabilities 128,790.6 1,281.2 3.95 134,667.6 1,403.4 4.13
Noninterest-bearing deposits 20,948.1 22,577.7
Other liabilities 5,812.5 5,779.5
Noninterest-bearing trading liabilities 1,546.5 1,163.0
Shareholders’ equity 18,032.8 18,155.5
Total liabilities and shareholders’ equity $175,130.5 $182,343.3
Interest Rate Spread 2.53% 2.28%
Net Interest Income - FTE3$1,194.8 $1,185.2
Net Interest Margin43.13% 2.94%
1Interest income includes loan fees of $33.3 million and $29.1 million in the quarters ended December 31, 2007 and December 31, 2006, respectively. Nonaccrual loans are included in average balances and income on such
loans, if recognized, is recorded on a cash basis.
2Interest income includes the effects of taxable-equivalent adjustments using a federal income tax rate of 35% and, where applicable, state income taxes to increase tax-exempt interest income to a taxable-equivalent basis. The
net taxable-equivalent adjustment amounts included in the above table aggregated $27.3 million and $23.9 million in the quarters ended December 31, 2007 and December 31, 2006, respectively.
3The Company obtained derivative instruments to manage the Company’s interest-sensitivity position that increased net interest income $6.6 million and decreased net interest income $36.0 million in the quarters ended
December 31, 2007 and December 31, 2006, respectively.
4The net interest margin is calculated by dividing annualized net interest income – FTE by average total earning assets.
FOURTH QUARTER RESULTS
We reported net income available to common shareholders of $3.3 million for the fourth quarter of 2007, a decrease of
$495.4 million, or 99.3%, compared to the same period of the prior year. Diluted earnings per average common share were
$0.01 and $1.39 for the fourth quarter of 2007 and 2006, respectively. The fourth quarter of 2007 results included net market
valuation losses of approximately $555 million, and a provision for loan losses of $356.8 million. Market valuation losses
were primarily related to securities that were purchased during the quarter from certain money market funds that are
managed by our subsidiary, Trusco, and our multi-seller commercial paper conduit, Three Pillars Funding, LLC, totaling
approximately $510 million.
59