Slide 1: Fourth Quarter 2000 Review
1 Fourth Quarter 2000 Review January 16, 2001
Slide 2: Private Securities Litigation Reform Act of 1995 Forward-Looking Statement Disclosure
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 FORWARD-LOOKING STATEMENT DISCLOSURE The conference call and discussion, including related questions and answers: msm presentation materials, contain forward-looking statements about issues like core earnings trends for fiscal year 2001, anticipated f
Slide 3: Fourth Quarter Review Outline
Fourth Quarter Review Outline > Introduction > Strategic Highlights > Financial Review > Asset Quality > Wrap up / Q&A B. Somers H. Meyer L. Irving K. Blakely B. Somers
Slide 4: Strategic Highlights
Strategic Highlights > Pivotal year- strong fouréu yuar ef >» Consolidated retail businesses into a single Consumer Banking organization > Competitiveness initiative producing results > Credit quality 2001- industry wild card or.
Slide 5: Competitiveness Initiative
Competitiveness Initiative Target Achieved Reductions 4,000 2,400 PEG Implementation 2,000 “GO” Ideas = 40% Completed 31% In Progress, Still to come or
Slide 6: Financial Overview
Financial Overview Fourth Quarter 2000 > Core EPS of $0.63 > Higher net interest margin > Good growth in fee income > Core net charge-offs: 0.57% > Strong expense discipline
Slide 7: Statement of Income-Reported
Statement of Income-Reported ‘in millions, except per share data 4999 1900 Net Interest Income (TE) S713. $678 Loan Loss Provision 183 Noninterest Income 806 Noninterest Expense 727 Income Before Taxes (TE) S74 Income Taxes & TE adj 207 Net Income $367 EPS - Assuming Dilution $059 $083 ‘Avg. Common
Slide 8: Significant Non-Core Items
Significant Non-Core Items ‘in mitions except per share dae 499 1900 2900 3Q00 Net Interest Income (TE) sa) $1 2 - Loan Loss Provision - 1 - $27 Noninterest Income 164330 - 65) Noninterest Expense a9) $2 Income (Loss) Before Taxes (TE) (1) 201) (197) Income Taxes and TE adj, wo n a (73) Net Income (
Slide 9: Statement of Income-Core
Statement of Income-Core ‘in milion, except per share data Net Interest Income (TE) Loan Loss Provision Noninterest Income Noninterest Expense Income Before Taxes (TE) Income Taxes & TE adj Net Income ‘Avg, Common Shares O/S Assuming Dilution EPS - Core EPS - Adjusted Core 4999 1900 2000 $714 $677 $
Slide 10: Core Net Interest Income & Margin (TE)
Core Net Interest Income & Margin (TE) in mitons so 1900 2900-3900 4Q00 NetInterest 3.88% 3.650% 3.68% 3.68% 3.719% Maran Avg. Baring 73081 $73,679 $7388 «$74,709 $76,036, ‘Assets or
Slide 11: Noninterest Income
at Noninterest Income du muions 4999 1900 Recurring Items 1.Trust & Invest Services Inc. $154 $160 2. Inv, Banking & Cap. Mkts. Inc. 111 89 3. Service Charges on Deposits 8486 4, COLI Income 3125 5. LIC & Loan Fees » B 6. Credit Card Fees, 16 6 7.Net Loan Securitization (G/L) 12 8. Blectronic Bankin
Slide 12: Noninterest Expense
Noninterest Expense in milions Recurring Items 1. Personnel 2. Net Occupaney & Equipment 3. Computer Processing, 4, Marketing 5. Amortization of Intangibles 6. Professional Fees 7. Postage & Delivery 8. Telecommunications Non-core Items Total Noninterest Expense 4099 1900 2900 $374 $382 S361 106 105
Slide 13: Net Charge-offs by Loan Type
Net Charge-offs by Loan Type coer 4992 1900 2900 300 Commercial $293 $27.0 $363 $606 Real Estate - Residential 14 07 ll 07 Home Equity 25 313526 Consumer 309 3912-79402 ‘Credit Card 18.0 - - - ‘Loans Held for Sale 09 06 07 Core Net €/0 $0 a6 OS Non-Core Net C/O. ‘Credit Card - 148 (1.7) (06) FFIEC 5
Slide 14: Provision vs. Net Charge-offs
Provision vs. Net Charge-offs " in milions ‘Ses (Lom Loss Provision Net Charge fs sewcore stos_si08 4999 1900 -2Q00 NetC/O% 0.52% 039%" 0.43% 0.63% OST" * Excludes FFIEC and one-time items
Slide 15: Asset Quality Indicators
Asset Quality Indicators ‘nitions 4999, Nonperforming Loans a7 to EOP Loans 0.70% Nonperforming Assets $473 to EOP Loans+OREO+Other NPA 0.74% Core Net C/O $83 to Average Loans 0.52% Allowance $930 to Total Loans 1.45% to Nonperforming Loans 208% * Excludes FFIEC and one-time items 1900 2000 3900 $47
Slide 16: Core Earnings Trends- F.Y. 2001
Core Earnings Trends- F.Y. 2001 Earning Assets Net Interest Margin Noninterest Income Noninterest Expense Tax Rate Shares Outstanding Asset Quali Core Net Charge-offs NPA Modest increase Relatively stable Modest increase Slight increase Relatively stable Modest decline Up Up 16