NATIONAL CITY 
By
-- Net Loss of
-- Pre-Tax Pre-Provision Operating Earnings of
-- Tier 1 Capital Ratio of 11% Among Highest of All Major U.S. Banks and
-- Retail Deposits Stable in Quarter and Grow Year-Over-Year, Reflecting Steady Household Growth and Expansion
-- Net Charge-offs Flat with Second Quarter Excluding Writedowns from Reclassification of Marine Loans to Held for Sale
--
-- Performance Improvement Initiative Targets Total Annual Savings of
National City Corporation (NYSE: NCC) reported a net loss for the third
quarter of 2008 of
(Logo: http://www.newscom.com/cgi-bin/prnh/20030428/NATIONALCITYLOGO )
Diluted net loss per common share was
The provision for loan losses was
Pre-tax pre-provision operating earnings were
As of
Summary financial highlights for the three and nine months ended
Third Second Third
($ in millions, except Quarter Quarter Quarter YTD YTD
per share data) 2008 2008 2007 2008 2007
Consolidated net
(loss)/income $(729) $(1,757) $(19) $(2,657) $647
Pre-tax pre-provision
operating earnings* 636 638 543 1,867 1,870
Tier 1 capital ratio 10.98% 11.06% 6.78%
Total risk-based
capital 14.86 14.87 10.37
Tangible equity to
tangible assets 8.93 8.94 5.29
*See reconciliation to consolidated net (loss)/income near the end of this release.
Chairman's Comments
Chairman, President and CEO
"Not surprisingly, the larger macro-economic environment affected credit
quality in our portfolios during the quarter. Reflecting this, we bolstered
reserves by
Exit Portfolio
The Corporation's Exit Portfolio (formerly termed "Liquidating Portfolio")
was formed so that loans remaining from exited businesses and discontinued
products could be managed separately from
These loans, which are in run-off mode, have been declining about
"A limited number of segments within our Exit Portfolio generated the
majority of net charge-offs for the quarter," said Mr. Raskind.
"Specifically,
Performance Improvement Initiative
The performance improvement initiative is based on a rigorous, comprehensive analysis of operations conducted over the past quarter with the help of a leading consulting firm.
Two executives whose units comprise 60% of the bank's costs are leading
the initiative:
Although the review is ongoing, based on the analysis to date, the key areas of focus for this initiative include:
-- Immediately executing on a series of tactical, high-impact expense
reductions to drive greater efficiencies and reduce procurement and
headcount-related costs, worth approximately
-- Systematically streamlining and consolidating operations to optimize
middle and back office functions, better integrate sales effort across the
Company's footprint and improve the ability to serve customers more
efficiently and cost-effectively, worth approximately
-- Reshaping the Company to simplify its management structure and extend
the impact of its direct and integrated strategy across the organization,
worth approximately
Raskind said: "This important initiative is the centerpiece of our ongoing
efforts to transform
Additional Actions to Strengthen Management and Improve Performance
In addition to its progress managing down its Exit Portfolio and
implementing its performance improvement initiative,
-- Combining regional and national commercial operations under one
corporate banking division, now operating under the leadership of recently
appointed Executive Vice President,
-- Investing in new product management capabilities and analytics in corporate banking to enhance return on capital, while continuing to de-emphasize non-core portfolios and business segments.
-- Enhancing the financial planning and alternative investment capabilities in the Private Client Group, which completed the rollout of its Emerging Affluent client offering and expanded its Ultra Affluent offering.
-- Driving household growth in retail banking through strong "Bank at
Work" penetration, and expanding household relationships through
-- Improving cross-selling efforts to generate a substantial increase in mortgages made to retail banking customers.
Financial Review
In
($ in millions, Third Second Third
except per share Quarter Quarter Quarter YTD YTD
data) 2008 2008 2007 2008 2007
Tax-equivalent
net interest
income $1,024 $1,021 $1,102 $3,114 $3,316
Provision for
loan losses 1,184 1,592 368 4,169 635
Noninterest income 386 431 624 1,955 2,009
Noninterest expense 1,335 2,277 1,396 4,624 3,738
(Loss) income before
income taxes (1,109) (2,417) (38) (3,724) 952
Income tax
(benefit) provision
and tax equivalent
adjustment (380) (660) (19) (1,067) 305
Net (loss) income (729) (1,757) (19) (2,657) 647
Preferred dividends
- cash (16) (14) - (30) (2)
Preferred dividends
- noncash (4,400) - - (4,400) -
Net (loss) income
available to common
stockholders $(5,145) $(1,771) $(19) $(7,087) $645
Diluted (loss)
earnings per
share $(5.86) $(2.45) $(.03) $(9.51) $1.07
Noncash preferred
dividend per share (5.01) - - (5.91) -
Diluted (loss)
earnings per share
excluding noncash
preferred dividend (.85) (2.45) (.03) (3.60) 1.07
Weighted average
diluted common
shares 877 723 588 745 604
Common shares
outstanding at
period end 2,036 760 633
Net Interest Income
Tax-equivalent net interest income was
Tax-equivalent net interest income was
Provision for Loan Losses
The provision for loan losses was
Third Second Third
Quarter Quarter Quarter YTD YTD
($ in millions) 2008 2008 2007 2008 2007
Core Portfolio $506 $512 $217 $1,370 $350
Exit Portfolio 678 1,080 151 2,799 285
Total $1,184 $1,592 $368 $4,169 $635
The provision for loan losses in the two most recent quarters included
supplemental reserves for emerging credit trends. In the third quarter of
2008, a
Net charge-offs were
Third Second Third
Quarter Quarter Quarter YTD YTD
($ in millions) 2008 2008 2007 2008 2007
Core Portfolio:
Commercial loans
and leases $53 $39 $16 $116 $58
Commercial construction
and real estate 106 61 13 193 24
Mortgage and other
consumer* 131 109 57 355 142
Total Core 290 209 86 664 224
Exit Portfolio* 554 531 55 1,458 162
Total $844 $740 $141 $2,122 $386
*Third quarter and YTD 2008 include writedowns on loans transferred to held for sale.
Net charge-offs in the Core Portfolio were
Loans 90 days past due were
($ in millions) September 30, June 30, September 30,
2008 2008 2007
Core Portfolio:
Commercial loans and leases $25 $28 $42
Commercial construction and
real estate 141 146 123
Residential real estate 301 308 393
Home equity and other consumer 115 111 81
Total Core 582 593 639
Exit Portfolio:
Residential real estate $519 $543 $734
Home equity and other consumer 7 11 44
Total Exit 526 554 778
Loans held for sale 13 9 43
Total $1,121 $1,156 $1,460
Nonperforming assets were
($ in millions) September 30, June 30, September 30,
2008 2008 2007
Core Portfolio:
Commercial loans and leases $296 $236 $152
Commercial construction and
real estate 1,128 920 415
Residential real estate 303 261 191
Home equity 13 16 15
Total Core 1,740 1,433 773
Exit Portfolio:
Residential real estate 1,100 997 86
Home equity 184 160 2
Total Exit 1,284 1,157 88
Other real estate owned 505 528 324
Loans held for sale 8 8 26
Total $3,537 $3,126 $1,211
The allowance for loan losses increased to $3.8 billion as of September
30, 2008, up from $3.4 billion at June 30, 2008. The allowance for loan
losses was 3.40% of portfolio loans and 124% of nonperforming loans as of
September 30, 2008.
($ in millions) September 30, June 30, September 30,
2008 2008 2007
Core Portfolio $1,715 $1,497 $1,063
Exit Portfolio 2,037 1,937 310
Total $3,752 $3,434 $1,373
As a percentage of portfolio
loans 3.40% 3.03% 1.23%
Noninterest Income
Noninterest income was
Third Second Third
Quarter Quarter Quarter YTD YTD
($ in millions) 2008 2008 2007 2008 2007
Deposit service charges $273 $260 $229 $763 $656
Loan sale and servicing
(loss) revenue* (56) (141) 85 (92) 398
Security (losses) gains** (77) (11) - 427 26
All other 246 323 310 857 929
Total noninterest income $386 $431 $624 $1,955 $2,009
*MSR hedging losses and mortgage recourse provision included within loan sale and servicing (loss)/revenue in all periods.
**Gain on redemption of Visa shares included within YTD 2008 security gains.
Deposit service fees were
Loan sales and servicing loss was
Net security losses arose from other-than-temporary impairment of
available for sale securities of
Noninterest Expense
Noninterest expense was
Third Second Third
Quarter Quarter Quarter YTD YTD
($ in millions) 2008 2008 2007 2008 2007
Salaries, benefits and
other personnel costs $563 $619 $642 $1,841 $1,917
Impairment, fraud and
other losses* 134 1,098 257 1,035 277
Foreclosure costs 122 61 17 232 40
All other 516 499 480 1,516 1,504
Total noninterest
expense $1,335 $2,277 $1,396 $4,624 $3,738
*Goodwill impairment and Visa indemnification included within impairment, fraud and other losses in all periods.
Salaries, benefits and other personnel costs decreased 9% compared to the preceding quarter and 12% compared to the third quarter a year ago due to reductions in staffing, lower business volumes, and lower incentive compensation. On a year-to-date basis, personnel costs were down 4% compared to the prior year. Cost savings from reduced staffing levels in 2008 were partially offset by lower deferrals of loan origination costs resulting from the adoption of fair value for certain loans held for sale at the beginning of the year.
Impairment, fraud and other losses for the third quarter of 2008 included
a provision of
Foreclosure costs increased to
Balance Sheet
Loans
Average portfolio loans were
($ in millions) Third Quarter Second Quarter Third Quarter
2008 2008 2007
Core portfolio $90,604 $91,302 $85,913
Exit portfolio 21,062 22,763 18,526
Total portfolio loans 111,666 114,065 104,439
Loans held for sale 2,131 3,075 12,643
The average balance of the Core Portfolio was down slightly compared to
the preceding quarter but up
Deposits
Average total deposits were
Capital
Total stockholders' equity was
Third Second Third
Quarter Quarter Quarter
2008 2008 2007
Tier 1 capital 10.98% 11.06% 6.78%
Total risk-based capital 14.86 14.87 10.37
Tier 1 leverage 10.07 10.33 6.96
Period end equity to assets 11.85 11.70 8.98
Period end tangible equity to
assets 8.93 8.94 5.29
Pre-Tax Pre-Provision Operating Earnings
Consolidated net (loss)/income, measured in accordance with GAAP, is the principal and most useful measure of earnings and provides comparability of earnings with other companies. However, management believes presenting pre-tax pre-provision operating earnings provides investors with additional information in order to better understand the company's underlying operating trends. Pre-tax pre-provision operating earnings, as defined by management, represents net (loss) income excluding income tax (benefit) expense, the provision for loan losses, as well as other items as shown below. The following table reconciles consolidated net (loss)/income presented in accordance with U.S. generally accepted accounting principles (GAAP) to pre-tax pre-provision operating earnings.
Third Second Third
Quarter Quarter Quarter YTD YTD
($ in millions) 2008 2008 2007 2008 2007
Consolidated net
(loss)/income $(729) $(1,757) $(19) $(2,657) $647
Income tax (benefit)
expense (391) (667) (26) (1,093) 283
Provision for loan
losses 1,184 1,592 368 4,169 635
MSR hedging losses
(gains) 189 146 (64) 394 (25)
Foreclosed asset losses 122 61 17 232 40
Securities losses/
(gains) 77 11 - (427) (26)
Litigation and
indemnification losses 148 214 223 161 273
Goodwill and other asset
impairments 41 1,080 44 1,135 43
Derivative gains on
equity-linked instruments (5) (42) - (47) -
Pre-tax pre-provision
operating earnings $636 $638 $543 $1,867 $1,870
Conference Call
Management of
A replay of the conference call will be available from
National City Corporation (NYSE: NCC), headquartered in
Forward-Looking Statements
This document contains forward-looking statements. Forward-looking
statements provide current expectations or forecasts of future events and are
not guarantees of future performance, nor should they be relied upon as
representing management's views as of any subsequent date. The
forward-looking statements are based on management's expectations and are
subject to a number of risks and uncertainties. Although management believes
that the expectations reflected in such forward-looking statements are
reasonable, actual results may differ materially from those expressed or
implied in such statements. Risks and uncertainties that could cause actual
results to differ materially include, without limitation, the Corporation's
ability to effectively execute its business plans; changes in general economic
and financial market conditions including the housing and residential mortgage
markets; changes in interest rates; changes in the competitive environment;
continuing consolidation in the financial services industry; new litigation or
changes in existing litigation; losses, customer bankruptcies, claims and
assessments; changes in banking regulations or other regulatory or legislative
requirements affecting the Corporation's business; and changes in accounting
policies or procedures as may be required by the Financial Accounting
Standards Board or other regulatory agencies. Additional information
concerning factors that could cause actual results to differ materially from
those expressed or implied in the forward-looking statements is available in
the Corporation's Annual Report on Form 10-K for the year ended
Unaudited
National City Corporation
CONSOLIDATED FINANCIAL HIGHLIGHTS
(In millions, except per share data)
2008
3rd Qtr 2nd Qtr 1st Qtr
EARNINGS
Tax-equivalent interest income $1,853 $1,886 $2,132
Interest expense 829 865 1,063
Tax-equivalent net interest income 1,024 1,021 1,069
Provision for loan losses 1,184 1,592 1,393
Tax-equivalent (NIE) NII after
provision for loan losses (160) (571) (324)
Noninterest income 386 431 1,138
Noninterest expense 1,335 2,277 1,012
(Loss) income before taxes and tax-
equivalent adjustment (1,109) (2,417) (198)
Income tax (benefit) expense (391) (667) (35)
Tax-equivalent adjustment 11 7 8
Net (loss) income ($729) ($1,757) ($171)
Net (loss) income available to common
stockholders(1) ($5,145) ($1,771) ($171)
Effective tax rate (34.9)% (27.5)% (17.0)%
PER COMMON SHARE
Net (loss) income:
Basic ($5.86) ($2.45) ($.27)
Diluted (5.86) (2.45) (.27)
Dividends paid .01 .01 .21
Book value 8.37 15.07 20.61
Tangible book value 6.09 8.94 11.53
Market value (close) 1.75 4.77 9.95
Average shares:
Basic 877.3 722.9 633.4
Diluted 877.3 722.9 633.4
PERFORMANCE RATIOS
Return on average common equity - - -
Return on average total equity - - -
Return on average assets - - -
Net interest margin 2.99% 2.97% 3.18%
Efficiency ratio 94.71 156.79 45.84
LINE OF BUSINESS (LOB) RESULTS
Net Income:
Retail Banking $132 $150 $97
Corporate Banking (27) (1,107) 92
Mortgage Banking (174) (193) (76)
Asset Management 7 20 19
Exit Portfolios (405) (677) (579)
Parent and Other (262) 50 276
Total Consolidated National City
Corporation ($729) ($1,757) ($171)
LOB Contribution to Diluted Earnings
Per Share:
Retail Banking $.15 $.21 $.15
Corporate Banking (.03) (1.53) .14
Mortgage Banking (.20) (.27) (.12)
Asset Management .01 .03 .03
Exit Portfolios (.46) (.94) (.91)
Parent and Other (5.33) .05 .44
Total Consolidated National City
Corporation ($5.86) ($2.45) ($.27)
2007
4th Qtr 3rd Qtr 2nd Qtr 1st Qtr
EARNINGS
Tax-equivalent interest income $2,381 $2,360 $2,255 $2,218
Interest expense 1,272 1,258 1,159 1,100
Tax-equivalent net interest income 1,109 1,102 1,096 1,118
Provision for loan losses 691 368 145 122
Tax-equivalent (NIE) NII after
provision for loan losses 418 734 951 996
Noninterest income 597 624 764 621
Noninterest expense 1,567 1,396 1,186 1,156
(Loss) income before taxes and tax-
equivalent adjustment (552) (38) 529 461
Income tax (benefit) expense (226) (26) 175 134
Tax-equivalent adjustment 7 7 7 8
Net (loss) income ($333) ($19) $347 $319
Net (loss) income available to common
stockholders(1) ($333) ($19) $346 $318
Effective tax rate (40.5)% (58.4)% 33.6% 29.5%
PER COMMON SHARE
Net (loss) income:
Basic ($.53) ($.03) $.60 $.50
Diluted (.53) (.03) .60 .50
Dividends paid .41 .41 .39 .39
Book value 21.15 21.86 21.45 22.12
Tangible book value 12.03 12.38 13.02 14.05
Market value (close) 16.46 25.09 33.32 37.25
Average shares:
Basic 633.2 588.1 572.7 631.7
Diluted 633.2 588.1 580.4 640.5
PERFORMANCE RATIOS
Return on average common equity - - 11.35% 8.98%
Return on average total equity - - 11.37 8.99
Return on average assets - - 1.00 .94
Net interest margin 3.30% 3.43% 3.59 3.69
Efficiency ratio 91.86 80.89 63.76 66.50
LINE OF BUSINESS (LOB) RESULTS
Net Income:
Retail Banking $174 $172 $193 $170
Corporate Banking 151 150 178 226
Mortgage Banking (346) (125) 24 (26)
Asset Management 24 21 29 27
Exit Portfolios (188) (29) 62 13
Parent and Other (148) (208) (139) (91)
Total Consolidated National City
Corporation ($333) ($19) $347 $319
LOB Contribution to Diluted Earnings
Per Share:
Retail Banking $.28 $.29 $.33 $.27
Corporate Banking .23 .25 .31 .35
Mortgage Banking (.55) (.21) .04 (.04)
Asset Management .04 .04 .05 .04
Exit Portfolios (.30) (.05) .11 .02
Parent and Other (.23) (.35) (.24) (.14)
Total Consolidated National City
Corporation ($.53) ($.03) $.60 $.50
Nine Months Ended
September 30,
2008 2007
EARNINGS
Tax-equivalent interest income $5,871 $6,833
Interest expense 2,757 3,517
Tax-equivalent net interest income 3,114 3,316
Provision for loan losses 4,169 635
Tax-equivalent (NIE) NII after
provision for loan losses (1,055) 2,681
Noninterest income 1,955 2,009
Noninterest expense 4,624 3,738
(Loss) income before taxes and tax-
equivalent adjustment (3,724) 952
Income tax (benefit) expense (1,093) 283
Tax-equivalent adjustment 26 22
Net (loss) income ($2,657) $647
Net (loss) income available to common
stockholders(1) ($7,087) $645
Effective tax rate (29.2)% 30.4%
PER COMMON SHARE
Net (loss) income:
Basic ($9.51) $1.08
Diluted (9.51) 1.07
Dividends paid .23 1.19
Book value
Tangible book value
Market value (close)
Average shares:
Basic 745.0 597.4
Diluted 745.0 604.3
PERFORMANCE RATIOS
Return on average common equity - 6.60%
Return on average total equity - 6.61
Return on average assets - .62
Net interest margin 3.05% 3.57
Efficiency ratio 91.21 70.20
LINE OF BUSINESS (LOB) RESULTS
Net Income:
Retail Banking $379 $535
Corporate Banking (1,042) 554
Mortgage Banking (443) (127)
Asset Management 46 77
Exit Portfolios (1,661) 46
Parent and Other 64 (438)
Total Consolidated National City
Corporation ($2,657) $647
LOB Contribution to Diluted Earnings
Per Share:
Retail Banking $.51 $.89
Corporate Banking (1.40) .91
Mortgage Banking (.59) (.21)
Asset Management .06 .13
Exit Portfolios (2.23) .08
Parent and Other (5.86) (.73)
Total Consolidated National City
Corporation ($9.51) $1.07
(1) Includes a $4.4 billion non-cash preferred stock dividend arising from
the Series G preferred stock conversion during the third quarter of
2008.
Unaudited
National City Corporation
CONSOLIDATED FINANCIAL HIGHLIGHTS (continued)
($ in millions)
2008
3rd Qtr 2nd Qtr 1st Qtr
CREDIT QUALITY STATISTICS
Net charge-offs $844 $740 $538
Provision for loan losses 1,184 1,592 1,393
Loan loss allowance 3,752 3,434 2,582
Lending-related commitment allowance 71 75 67
Nonperforming assets 3,537 3,126 2,752
Annualized net charge-offs to average
portfolio loans 2.67% 2.61% 1.88%
Loan loss allowance to period-end
portfolio loans 3.40 3.03 2.23
Loan loss allowance to nonperforming
portfolio loans 124.07 132.59 114.25
Loan loss allowance (period-end) to
annualized net charge-offs 111.78 115.45 119.22
Nonperforming assets to period-end
portfolio loans
and other nonperforming assets 3.19 2.74 2.37
CAPITAL AND LIQUIDITY RATIOS
Tier 1 capital(1) 10.98% 11.06% 6.67%
Total risk-based capital(1) 14.86 14.87 10.31
Leverage(1) 10.07 10.33 6.49
Period-end equity to assets 11.85 11.70 8.53
Period-end tangible equity to assets
(2) 8.93 8.94 5.00
Average equity to assets 11.69 11.35 8.76
Average equity to portfolio loans 15.78 15.30 11.62
Average portfolio loans to deposits 113.11 114.58 118.23
Average portfolio loans to core
deposits 126.85 127.65 131.57
Average portfolio loans to earning
assets 81.61 82.80 85.75
Average securities to earning assets 7.00 6.16 6.38
AVERAGE BALANCES
Assets $150,740 $153,852 $153,032
Portfolio loans 111,666 114,065 115,379
Loans held for sale or securitization 2,131 3,075 4,494
Securities (at cost) 9,582 8,491 8,588
Earning assets 136,833 137,755 134,552
Core deposits 88,027 89,357 87,691
Purchased deposits and funding 41,666 43,361 47,475
Total equity 17,618 17,455 13,411
PERIOD-END BALANCES
Assets $145,035 $153,673 $155,038
Portfolio loans 110,462 113,420 115,859
Loans held for sale or securitization 3,246 2,385 4,536
Securities (at fair value) 8,826 9,404 8,449
Core deposits 85,637 91,096 89,135
Purchased deposits and funding 38,719 40,603 48,733
Total equity 17,182 17,981 13,223
2007
4th Qtr 3rd Qtr 2nd Qtr 1st Qtr
CREDIT QUALITY STATISTICS
Net charge-offs $275 $141 $98 $147
Provision for loan losses 691 368 145 122
Loan loss allowance 1,762 1,373 1,136 1,104
Lending-related commitment
allowance 65 54 61 63
Nonperforming assets 1,523 1,211 848 801
Annualized net charge-offs to
average portfolio loans .96% .54% .39% .61%
Loan loss allowance to period-end
portfolio loans 1.52 1.23 1.14 1.11
Loan loss allowance to
nonperforming portfolio loans 161.55 159.42 202.16 206.08
Loan loss allowance (period-end)
to annualized net charge-offs 161.24 245.43 291.06 184.68
Nonperforming assets to period-end
portfolio loans
and other nonperforming assets 1.31 1.08 .85 .80
CAPITAL AND LIQUIDITY RATIOS
Tier 1 capital(1) 6.53% 6.78% 6.56% 7.08%
Total risk-based capital(1) 10.27 10.37 10.28 10.13
Leverage(1) 6.39 6.96 6.53 6.92
Period-end equity to assets 8.95 8.98 8.64 9.51
Period-end tangible equity to
assets (2) 5.29 5.29 5.43 6.26
Average equity to assets 8.88 8.71 8.83 10.45
Average equity to portfolio loans 11.94 12.10 12.27 14.66
Average portfolio loans to
deposits 115.45 111.70 110.74 111.78
Average portfolio loans to core
deposits 130.20 128.17 127.87 128.66
Average portfolio loans to earning
assets 84.60 81.43 81.48 80.79
Average securities to earning
assets 6.58 6.11 5.84 6.34
AVERAGE BALANCES
Assets $152,566 $145,095 $138,587 $137,810
Portfolio loans 113,484 104,439 99,689 98,198
Loans held for sale or
securitization 8,340 12,643 12,615 11,769
Securities (at cost) 8,826 7,835 7,143 7,704
Earning assets 134,142 128,249 122,344 121,543
Core deposits 87,164 81,484 77,964 76,322
Purchased deposits and funding 47,450 47,093 44,604 43,001
Total equity 13,554 12,636 12,231 14,398
PERIOD-END BALANCES
Assets $149,852 $154,166 $140,636 $138,559
Portfolio loans 116,022 111,991 99,683 99,566
Loans held for sale or
securitization 4,290 11,987 14,421 10,693
Securities (at fair value) 8,731 8,977 7,024 7,208
Core deposits 87,536 86,450 79,043 77,884
Purchased deposits and funding 44,822 49,193 45,036 42,897
Total equity 13,408 13,843 12,147 13,170
Nine Months Ended
September 30,
2008 2007
CREDIT QUALITY STATISTICS
Net charge-offs $2,122 $386
Provision for loan losses 4,169 635
Loan loss allowance
Lending-related commitment allowance
Nonperforming assets
Annualized net charge-offs to average
portfolio loans 2.46% .51%
Loan loss allowance to period-end
portfolio loans
Loan loss allowance to nonperforming
portfolio loans
Loan loss allowance (period-end) to
annualized net charge-offs 132.38 266.24
Nonperforming assets to period-end
portfolio loans
and other nonperforming assets
CAPITAL AND LIQUIDITY RATIOS
Tier 1 capital(1)
Total risk-based capital(1)
Leverage(1)
Period-end equity to assets
Period-end tangible equity to
assets (2)
Average equity to assets 10.60% 9.31%
Average equity to portfolio loans 14.22 12.98
Average portfolio loans to deposits 115.29 111.41
Average portfolio loans to core
deposits 128.68 128.23
Average portfolio loans to earning
assets 83.37 81.24
Average securities to earning assets 6.52 6.09
AVERAGE BALANCES
Assets $152,535 $140,524
Portfolio loans 113,696 100,798
Loans held for sale or securitization 3,229 12,346
Securities (at cost) 8,889 7,561
Earning assets 136,382 124,070
Core deposits 88,358 78,609
Purchased deposits and funding 44,157 44,914
Total equity 16,167 13,082
PERIOD-END BALANCES
Assets
Portfolio loans
Loans held for sale or securitization
Securities (at fair value)
Core deposits
Purchased deposits and funding
Total equity
(1) Third quarter 2008 regulatory capital ratios are based upon
preliminary data.
(2) Excludes goodwill and other intangible assets.
Supplemental financial information available at:
http://media.corporate-ir.net/media_files/irol/64/64242/sup/3Q08.pdfSOURCE National City Corporation
