Exhibit 99.1
April 20, 2006
Investors may contact:
Kevin Stitt, Bank of America, 704.386.5667
Lee McEntire, Bank of America, 704.388.6780
Leyla Pakzad, Bank of America, 704.386.2024
Media may contact:
Terry Francisco, Bank of America, 704.386.4343
Bank of America reports record first quarter earnings of $5 billion, or $1.07 per share
Net income up 14 percent
Good momentum across businesses
Capital markets income strong
Efficiency ratio below 50 percent
CHARLOTTE — Bank of America Corporation today reported that net income in the first quarter of 2006 rose 14 percent to $4.99 billion from $4.39 billion a year earlier. Per-share earnings (diluted) were unchanged from a year earlier at $1.07. Return on average common equity for the first quarter was 15.44 percent. Under purchase accounting rules, results for the first quarter of 2005 do not include MBNA, which was acquired on January 1, 2006.
Excluding merger and restructuring charges of $98 million pre-tax, equal to 1 cent per share, the company earned $5.05 billion, or $1.08 per share, in the first quarter of 2006. A year earlier merger and restructuring charges of $112 million reduced per-share earnings by 2 cents.
Revenue grew 31 percent while noninterest expense was up 26 percent. However, on a pro forma basis (including MBNA’s first quarter of 2005 results), revenue increased almost 10 percent while noninterest expense was up only 5 percent. Information regarding pro forma results was included in the Form 8-K filed on April 10, 2006.
This significant operating leverage was driven by continued strong performance in the consumer businesses as well as improvements in trading account profits, equity investment gains and investment banking income.
The current quarter’s results included $320 million, or 5 cents per share, in expense from the impact of SFAS 123R, which accelerates the recognition of certain equity-based compensation expenses for retirement-eligible associates. In addition, as previously announced, the company terminated certain derivatives used as hedges in asset liability management that did not qualify for SFAS 133 hedge accounting at a cost of $175 million, or 2 cents per share.
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“We are off to a great start in 2006,” said Kenneth D. Lewis, chairman and chief executive officer. “We have strong momentum in all our businesses as the benefits from continued execution in our consumer businesses were accompanied this quarter by a rebound in trading and good performance in investment banking and wealth management.”
First Quarter 2006 Highlights
| • | Bank of America maintained its position as a leading online financial services retailer. Sales of products through E-Commerce during the quarter were 1.1 million, as the percentage of retail sales coming through the E-Commerce channel rose to 10.8 percent of total production. The company now has a record 19.6 million active online customers who paid $44.4 billion worth of bills in the first quarter of 2006. During the quarter, the bank announced new e-alerts that will help customers monitor accounts and detect fraud. |
| • | The company added approximately 603,000 net new checking accounts in the quarter, driven by the bank’s Keep the Change™ and customer referral programs. Net new savings accounts grew by more than 483,000 during the quarter primarily due to the reintroduction of the Risk Free CD and the Keep the Change™ program. Bank of America now has more than 54 million checking and savings accounts. |
| • | Home equity production volume increased $3.5 billion, or 23 percent, from the first quarter of 2005 to $18.6 billion. At 8.4 percent, Bank of America has the largest market share as of year-end 2005, with a home equity portfolio now exceeding $70 billion. |
| • | Mass market small business sales increased more than 21 percent from the first quarter of 2005, driven by increases in small business online banking and small business credit products. |
| • | Capital Markets and Advisory Services had a record quarter with more than $2.2 billion in revenue, driven by double-digit revenue increases in Global Liquid Products and Global Credit Products as compared to the first quarter of 2005. According to Loan Pricing Corporation, Bank of America is ranked number one in syndicated loans and leveraged loans as measured by number of deals. |
| • | Total assets under management in Wealth and Investment Management grew to nearly $494 billion, an increase of 14 percent from the first quarter of 2005. Based on assets under management, 82% of assets were invested in funds (equity, fixed income, and money market funds) where at least one share class placed in the top two quartiles of their peer group.1 |
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| 1 | The share class earning the ranking may have limited eligibility and may not be available to all investors. Peer group rankings where provided by Morningstar for equity funds, Lipper for fixed income funds and iMoneyNet for money market funds. |
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First Quarter 2006 MBNA Transition Highlights
| • | Cost savings for the merger in the first quarter were $163 million pre-tax, equal to 2 cents per share, due primarily to personnel reductions and marketing synergies. The transition is on track to meet projected savings targets. |
| • | As of March 31, about one third of the projected 6,000 job reductions have been achieved, the vast majority through attrition since the merger was announced on June 30, 2005. |
| • | Bank of America began offering more than 300 MBNA affinity cards through bankofamerica.com and in pilots involving 700 banking centers. Early results are exceeding expectations. |
| • | Bank of America renewed relationships with several key MBNA affinity partners during the quarter. Bank of America, through its acquisition of MBNA, has worldwide affinity relationships with more than 5,000 organizations. |
First Quarter 2006 Financial Summary
Revenue
Revenue on a fully taxable-equivalent basis grew 31 percent to $17.94 billion from $13.74 billion in the first quarter of 2005. Last year’s results did not include MBNA.
Net interest income on a fully taxable-equivalent basis was $9.04 billion, compared to $7.71 billion the previous year. In addition to MBNA, the increase was driven by the impact of consumer, middle market, commercial and large corporate loan growth and increases in asset liability management activity primarily due to changes in interest rates. The impact of these increases was partially offset by a lower trading-related contribution. The net interest yield increased two basis points to 2.98 percent.
Noninterest income was $8.90 billion compared to $6.03 billion. In addition to MBNA, these results were driven by continued strength in service fee income, increases in trading account profits, equity investment gains, investment banking income and card income.
Gains on sales of debt securities were $14 million in the quarter compared to $659 million in the first quarter of 2005.
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Efficiency
The efficiency ratio for the first quarter of 2006 was 49.74 percent. Noninterest expense increased to $8.92 billion compared to $7.06 billion a year ago. In addition to MBNA and the increase in personnel costs due to changes in equity-based compensation accounting, expenses were higher due to increased marketing spending related to consumer banking initiatives. Also included in first quarter 2006 expenses were $98 million in pre-tax merger and restructuring charges related to the MBNA acquisition.
Credit Quality
Credit quality was stable. As anticipated, net charge-offs decreased substantially from the fourth quarter of 2005 due to the impact of bankruptcy reform. Net charge-offs were down compared to the first quarter of 2005 due to lower bankruptcies, partially offset by growth and seasoning of the card portfolio and new advances on accounts previously securitized. Provision expense rose compared to the first quarter of 2005 due to the addition of MBNA, a slower rate of improvement in commercial credit quality, and an increase in reserves to cover the anticipated return to a more normal level of bankruptcy-related charge-offs.
| • | Provision for credit losses was $1.27 billion, down from $1.4 billion in the fourth quarter of 2005, and up from $580 million a year earlier. |
| • | Net charge-offs were $822 million, or 0.54 percent of average loans and leases. Reported net charge-offs excluded $210 million, or 0.14 percent, as a result of impaired loan accounting for MBNA. Net charge-offs were $1.65 billion, or 1.16 percent, in the fourth quarter of 2005 and $889 million, or 0.69 percent, in the first quarter of 2005. Total managed net losses were $1.48 billion, or 0.84 percent of managed loans and leases. This compared to $1.71 billion, or 1.19 percent, on December 31, 2005 and $1.03 billion, or 0.78 percent, on March 31, 2005. |
| • | Nonperforming assets were $1.68 billion, or 0.27 percent of total loans, leases and foreclosed properties, as of March 31, 2006. This compared to $1.60 billion, or 0.28 percent, at December 31, 2005 and $2.34 billion, or 0.44 percent on March 31, 2005. |
| • | The allowance for loan and lease losses was $9.07 billion, or 1.46 percent of loans and leases, at March 31, 2006. This compared to $8.05 billion, or 1.40 percent at December 31, 2005 and $8.31 billion, or 1.57 percent, at March 31, 2005, which do not include MBNA. |
Capital Management
Total shareholders’ equity was $129.43 billion at March 31, 2006. Period-end assets grew to $1.38 trillion. The Tier 1 Capital Ratio was 8.45 percent, up from 8.25 percent on December 31, 2005 and 8.26 percent a year earlier.
During the quarter, Bank of America paid a cash dividend of $0.50 per share. In conjunction with the MBNA acquisition, the company issued 631 million common shares. The company also issued 38.9 million shares primarily related to employee stock options and ownership plans, and repurchased 88.5 million common shares. Period-ending common shares issued and outstanding were 4.58 billion for the first quarter of 2006, compared to 4.00 billion for the fourth quarter of 2005 and 4.04 billion for the first quarter of 2005.
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First Quarter 2006 Business Segment Results
Global Consumer and Small Business Banking
| (Dollars in millions) |
Q1 2006 | Q1 2005 | ||||||
| Total Revenue 1 |
$ | 10,201 | $ | 6,853 | ||||
| Provision for credit losses |
1,257 | 710 | ||||||
| Noninterest expense |
4,693 | 3,238 | ||||||
| Net Income |
2,675 | 1,878 | ||||||
| Efficiency ratio |
46.01 | % | 47.25 | % | ||||
| Return on average equity |
16.89 | 26.46 | ||||||
| Loans and leases2 |
$ | 187,048 | $ | 139,644 | ||||
| Deposits2 |
330,204 | 300,562 | ||||||
| 1 | Fully taxable-equivalent basis |
| 2 | Balances averaged for period |
Revenue grew 49 percent and net income increased 42 percent from a year ago. Last year’s first quarter did not include MBNA results. On a pro forma basis (including MBNA’s first quarter of 2005 results), revenue increased 8 percent while net income increased 11 percent.
Results were driven by increased service charges due to new account growth, higher debit card income due to increased usage and higher credit card income as Bank of America’s combination with MBNA showed early positive results. These increases were dampened by lower results in consumer real estate, which was affected by margin compression due in part to higher interest rates as compared to the first quarter of 2005.
Provision expense increased primarily due to the addition of MBNA and the increase in reserves to cover the anticipated return to a more normal level of bankruptcy-related charge-offs.
| • | Deposits had revenue of $3.99 billion and net income of $1.10 billion. Mass market small business deposits increased more than 6 percent to more than $75 billion as small business owners opened more than 54,000 net new checking accounts. Debit card revenue grew more than 26 percent, primarily driven by a 24 percent increase in purchase volume resulting from account growth, increased usage and higher average ticket size. |
| • | Card Services had revenue of $5.28 billion and net income of $1.32 billion. More than 3.1 million Bank of America and MBNA cards were issued in the quarter through banking center, E-Commerce and direct mail channels, and managed Card Services loans topped $185 billion. |
| • | Home Equity had revenue of $351 million and net income of $116 million. |
| • | Mortgage had revenue of $347 million and net income of $72 million. |
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Global Corporate and Investment Banking
| (Dollars in millions) |
Q1 2006 | Q1 2005 | ||||||
| Total Revenue 1 |
$ | 5,560 | $ | 5,447 | ||||
| Provision for credit losses |
39 | (151 | ) | |||||
| Noninterest expense |
3,026 | 2,705 | ||||||
| Net Income |
1,586 | 1,851 | ||||||
| Efficiency ratio |
54.42 | % | 49.66 | % | ||||
| Return on average equity |
15.02 | 17.76 | ||||||
| Loans and leases2 |
$ | 236,828 | $ | 205,963 | ||||
| Deposits2 |
197,922 | 186,285 | ||||||
| Trading-related assets2 |
317,675 | 278,571 | ||||||
| 1 | Fully taxable-equivalent basis |
| 2 | Balances averaged for period |
During 2005 Bank of America announced the combination of Global Business and Financial Services and Global Capital Markets and Investment Banking into a new segment called Global Corporate and Investment Banking. This combination was effective January 1, 2006.
Revenue increased 2 percent to $5.56 billion from $5.45 billion. Net income was lower by 14 percent due to higher provision expense and compensation costs. The impact of a flattening yield curve and a reduction in the market value of the bank’s credit default swap book also lowered results.
The revenue increase was driven by 19 percent growth in Capital Markets and Advisory Services, as investments in personnel and trading infrastructure helped produce record trading and investment banking results. Investment banking revenue grew 40 percent from the first quarter of 2005, as increased market activity and deal flow produced strong results in advisory fees, debt underwriting and equity underwriting.
Provision expense rose $190 million, primarily due to a provision benefit in the first quarter of 2005 resulting from actions to reduce certain Latin American portfolio exposures as well as a slower rate of improvement in commercial credit quality.
| • | Capital Markets and Advisory Services had revenue of $2.22 billion and net income of $519 million. |
| • | Business Lending had revenue of $1.34 billion and net income of $516 million. Tighter spreads narrowed net interest income for this sub-segment. Average loans were up 15 percent from a year ago due to increased credit line utilization and new business. |
| • | Treasury Services had revenue of $1.63 billion and net income of $514 million. Results were driven by the effect of rising rates on deposit spreads, increased transactions with existing clients, and the acquisition of new clients. |
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Global Wealth and Investment Management
| (Dollars in millions) |
Q1 2006 | Q1 2005 | ||||||
| Total Revenue 1 |
$ | 1,968 | $ | 1,813 | ||||
| Provision for credit losses |
(1 | ) | 2 | |||||
| Noninterest expense |
992 | 909 | ||||||
| Net Income |
614 | 584 | ||||||
| Efficiency ratio |
50.37 | % | 50.13 | % | ||||
| Return on average equity |
22.70 | 24.01 | ||||||
| Loans and leases2 |
$ | 58,766 | $ | 50,836 | ||||
| Deposits2 |
114,001 | 116,108 | ||||||
| (in billions) |
At 3/31/06 | At 3/31/05 | ||||||
| Assets under management |
$ | 493.9 | $ | 433.4 | ||||
| 1 | Fully taxable-equivalent basis |
| 2 | Balances averaged for period |
Revenue increased 8.5 percent and net income 5 percent from a year ago. Results were driven by higher asset management fees, higher loan volume and higher deposit revenue due in part to the continued migration of certain banking relationships from Global Consumer and Small Business Banking.
Asset management fees increased 10 percent from the first quarter of 2005 due to higher assets under management balances driven by net asset inflows of $33 billion in both short-term and long-term assets in addition to increased market values of $28 billion.
| • | Premier Banking & Investments had revenue of $717 million and net income of $229 million as Premier continues to build out both banking and brokerage services. Higher spreads on the deposit book helped boost results. |
| • | The Private Bank had revenue of $539 million and net income of $144 million. |
| • | Columbia Management had revenue of $363 million and net income of $80 million. Increased levels of assets under management led to higher asset management fees. |
All Other
For the first quarter of 2006, All Other reflected $111 million of net income, compared to net income of $80 million for the first quarter of 2005. Equity Investment gains were $513 million in the first quarter of 2006 compared to $264 million in the first quarter of 2005. Included in All Other was the $175 million, or 2 cents per share, loss on derivatives used as economic hedges.
Note: Al de Molina, chief financial officer, will discuss first quarter 2006 results in a conference call at 9:30 a.m. (Eastern Time) today. The call can be accessed via a webcast available on the Bank of America Web site at http://investor.bankofamerica.com.
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Bank of America is one of the world’s largest financial institutions, serving individual consumers, small and middle market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk-management products and services. The company provides unmatched convenience in the United States, serving more than 54 million consumer and small business relationships with more than 5,700 retail banking offices, more than 16,700 ATMs and award-winning online banking with more than 19 million active users. Bank of America is the No. 1 overall Small Business Administration (SBA) lender in the United States and the No. 1 SBA lender to minority-owned small businesses. The company serves clients in 175 countries and has relationships with 98 percent of the U.S. Fortune 500 companies and 79 percent of the Global Fortune 500. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
Forward-Looking Statements
This press release contains forward-looking statements, including statements about the financial conditions, results of operations and earnings outlook of Bank of America Corporation. The forward-looking statements involve certain risks and uncertainties. Factors that may cause actual results or earnings to differ materially from such forward-looking statements include, among others, the following: 1) projected business increases following process changes and other investments are lower than expected; 2) competitive pressure among financial services companies increases significantly; 3) general economic conditions are less favorable than expected; 4) political conditions including the threat of future terrorist activity and related actions by the United States abroad may adversely affect the company’s businesses and economic conditions as a whole; 5) changes in the interest rate environment reduce interest margins and impact funding sources; 6) changes in foreign exchange rates increases exposure; 7) changes in market rates and prices may adversely impact the value of financial products; 8) legislation or regulatory environments, requirements or changes adversely affect the businesses in which the company is engaged; 9) changes in accounting standards, rules or interpretations, 10) litigation liabilities, including costs, expenses, settlements and judgments, may adversely affect the company or its businesses; 11) mergers and acquisitions and their integration into the company; and 12) decisions to downsize, sell or close units or otherwise change the business mix of any of the company. For further information regarding Bank of America Corporation, please read the Bank of America reports filed with the SEC and available at www.sec.gov.
Please consider the investment objectives, risks, charges and expenses of Columbia mutual funds carefully before investing. Contact your financial advisor for a prospectus which contains this and other important information about the fund. Read it carefully before you invest.
Columbia Management is the primary investment management division of Bank of America Corporation. Columbia Management entities furnish investment management services and advise institutional and mutual fund portfolios. Columbia Funds are distributed by Columbia Management Distributors, Inc., member NASD, SIPC. Columbia Management Distributors, Inc. is part of Columbia Management and an affiliate of Bank of America Corporation.
Bank of America
Selected Financial Data (1)
| Three Months Ended March 31 |
||||||||
| 2006 | 2005 | |||||||
| (Dollars in millions, except per share data; shares in thousands) | ||||||||
| Financial Summary |
||||||||
| Earnings |
$ | 4,986 | $ | 4,393 | ||||
| Earnings per common share |
1.08 | 1.09 | ||||||
| Diluted earnings per common share |
1.07 | 1.07 | ||||||
| Dividends paid per common share |
0.50 | 0.45 | ||||||
| Closing market price per common share |
45.54 | 44.10 | ||||||
| Average common shares issued and outstanding |
4,609,481 | 4,032,550 | ||||||
| Average diluted common shares issued and outstanding |
4,666,405 | 4,099,062 | ||||||
| Summary Income Statement |
||||||||
| Net interest income |
$ | 8,776 | $ | 7,506 | ||||
| Total noninterest income |
8,901 | 6,032 | ||||||
| Total revenue |
17,677 | 13,538 | ||||||
| Provision for credit losses |
1,270 | 580 | ||||||
| Gains on sales of debt securities |
14 | 659 | ||||||
| Other noninterest expense |
8,826 | 6,945 | ||||||
| Merger and restructuring charges |
98 | 112 | ||||||
| Income before income taxes |
7,497 | 6,560 | ||||||
| Income tax expense |
2,511 | 2,167 | ||||||
| Net income |
$ | 4,986 | $ | 4,393 | ||||
| Summary Average Balance Sheet |
||||||||
| Total loans and leases |
$ | 615,968 | $ | 524,921 | ||||
| Securities |
234,606 | 204,574 | ||||||
| Total earning assets |
1,219,611 | 1,044,891 | ||||||
| Total assets |
1,416,373 | 1,200,859 | ||||||
| Total deposits |
659,821 | 627,420 | ||||||
| Shareholders’ equity |
131,153 | 99,401 | ||||||
| Common shareholders’ equity |
130,881 | 99,130 | ||||||
| Performance Ratios |
||||||||
| Return on average assets |
1.43 | % | 1.49 | % | ||||
| Return on average common shareholders’ equity |
15.44 | 17.97 | ||||||
| Return on average tangible common shareholders’ equity |
31.18 | 33.09 | ||||||
| Credit Quality |
||||||||
| Net charge-offs |
$ | 822 | $ | 889 | ||||
| Annualized net charge-offs as a % of average loans and leases outstanding |
0.54 | % | 0.69 | % | ||||
| Managed credit card net losses as a % of average managed credit card receivables |
3.12 | 6.17 | ||||||
| At March 31 | ||||||||
| 2006 | 2005 | |||||||
| Balance Sheet Highlights |
||||||||
| Loans and leases |
$ | 619,525 | $ | 529,457 | ||||
| Total securities |
238,073 | 218,950 | ||||||
| Total earning assets |
1,176,694 | 1,059,806 | ||||||
| Total assets |
1,375,080 | 1,212,229 | ||||||
| Total deposits |
682,449 | 629,987 | ||||||
| Total shareholders’ equity |
129,426 | 98,927 | ||||||
| Common shareholders’ equity |
129,154 | 98,656 | ||||||
| Book value per share |
28.19 | 24.45 | ||||||
| Tangible equity ratio (2) |
4.04 | % | 4.29 | % | ||||
| Risk-based capital ratios: |
||||||||
| Tier 1 |
8.45 | * | 8.26 | |||||
| Total |
11.33 | * | 11.52 | |||||
| Leverage ratio |
6.18 | * | 5.86 | |||||
| Period-end common shares issued and outstanding |
4,581,318 | 4,035,319 | ||||||
| Allowance for credit losses: |
||||||||
| Allowance for loan and lease losses |
$ | 9,067 | $ | 8,313 | ||||
| Reserve for unfunded lending commitments |
395 | 394 | ||||||
| Total |
$ | 9,462 | $ | 8,707 | ||||
| Allowance for loan and lease losses as a % of total loans and leases |
1.46 | % | 1.57 | % | ||||
| Allowance for loan and lease losses as a % of total nonperforming loans and leases |
572 | 401 | ||||||
| Total nonperforming loans and leases |
$ | 1,584 | $ | 2,073 | ||||
| Total nonperforming assets |
1,680 | 2,338 | ||||||
| Nonperforming assets as a % of: |
||||||||
| Total assets |
0.12 | % | 0.19 | % | ||||
| Total loans, leases and foreclosed properties |
0.27 | 0.44 | ||||||
| Nonperforming loans and leases as a % of total loans and leases |
0.26 | 0.39 | ||||||
| Other Data |
||||||||
| Full-time equivalent employees |
202,503 | 176,973 | ||||||
| Number of banking centers - domestic |
5,786 | 5,889 | ||||||
| Number of branded ATMs - domestic |
16,716 | 16,798 | ||||||
| * | Preliminary data |
Information for periods beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated.
BUSINESS SEGMENT RESULTS
| Global Consumer and Small Business Banking |
Global Corporate and Investment Banking |
Global Wealth and Investment Management |
All Other |
|||||||||||||
| Three Months Ended March 31, 2006 |
||||||||||||||||
| Total revenue (FTE) (3) |
$ | 10,201 | $ | 5,560 | $ | 1,968 | $ | 212 | ||||||||
| Net income |
2,675 | 1,586 | 614 | 111 | ||||||||||||
| Shareholder value added |
1,310 | 466 | 336 | (175 | ) | |||||||||||
| Return on average equity |
16.89 | % | 15.02 | % | 22.70 | % | n/m | |||||||||
| Average loans and leases |
$ | 187,048 | $ | 236,828 | $ | 58,766 | $ | 133,326 | ||||||||
| Three Months Ended March 31, 2005 |
||||||||||||||||
| Total revenue (FTE) (3) |
$ | 6,853 | $ | 5,447 | $ | 1,813 | $ | (375 | ) | |||||||
| Net income |
1,878 | 1,851 | 584 | 80 | ||||||||||||
| Shareholder value added |
1,240 | 749 | 336 | (338 | ) | |||||||||||
| Return on average equity |
26.46 | % | 17.76 | % | 24.01 | % | n/m | |||||||||
| Average loans and leases |
$ | 139,644 | $ | 205,963 | $ | 50,836 | $ | 128,478 | ||||||||
n/m = not meaningful
| Three Months Ended March 31 |
||||||||
| 2006 | 2005 | |||||||
| SUPPLEMENTAL FINANCIAL DATA |
||||||||
| Fully taxable-equivalent basis data (3) |
||||||||
| Net interest income |
$ | 9,040 | $ | 7,706 | ||||
| Total revenue |
17,941 | 13,738 | ||||||
| Net interest yield |
2.98 | % | 2.96 | % | ||||
| Efficiency ratio |
49.74 | 51.37 | ||||||
| Reconciliation of net income to operating earnings |
||||||||
| Net income |
$ | 4,986 | $ | 4,393 | ||||
| Merger and restructuring charges |
98 | 112 | ||||||
| Related income tax benefit |
(37 | ) | (37 | ) | ||||
| Operating earnings |
$ | 5,047 | $ | 4,468 | ||||
| Operating Basis |
||||||||
| Diluted earnings per common share |
$ | 1.08 | $ | 1.09 | ||||
| Return on average assets |
1.45 | % | 1.51 | % | ||||
| Return on average common shareholders’ equity |
15.63 | 18.26 | ||||||
| Return on average tangible common shareholders’ equity |
31.57 | 33.66 | ||||||
| Efficiency ratio |
49.19 | 50.55 | ||||||
| Reconciliation of net income to shareholder value added |
||||||||
| Net income |
$ | 4,986 | $ | 4,393 | ||||
| Amortization of intangibles |
440 | 208 | ||||||
| Merger and restructuring charges, net of tax benefit |
61 | 75 | ||||||
| Capital charge |
(3,550 | ) | (2,689 | ) | ||||
| Shareholder value added |
$ | 1,937 | $ | 1,987 | ||||
| (1) | Certain prior period amounts have been reclassified to conform to current period presentation. |
| (2) | Tangible equity ratio equals shareholders’ equity less goodwill, core deposit intangibles and other intangibles divided by total assets less goodwill, core deposit intangibles and other intangibles. |
| (3) | Fully taxable-equivalent (FTE) basis is a performance measure used by management in operating the business that management believes provides investors with a more accurate picture of the interest margin for comparative purposes. |
Information for periods beginning January 1, 2006 includes the MBNA acquisition; prior periods have not been restated.