HIBERNIA CORP - 10-Q Quarterly Report

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549


FORM 10-Q


QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


For the Quarterly Period Ended September 30, 2003	Commission File Number 1-10294


HIBERNIA CORPORATION (Exact name of registrant as specified in its charter)


Louisiana (State or other jurisdiction of incorporation or organization)	72-0724532 (I.R.S. Employer Identification Number)


313 Carondelet Street, New Orleans, Louisiana 70130 (Address of principal executive offices and zip code)


Registrant's telephone number, including area code (504) 533-2831



Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.


YES X NO ____


Indicate by check mark whether the registrant is an accelerated filer (as defined in rule 12b-2 of the Exchange Act).

YES X NO ____

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.


Class Class A Common Stock, no par value	Outstanding at October 31, 2003 155,203,947 Shares








HIBERNIA CORPORATION



INDEX
Page No.
Part I. Financial Information


Item 1. Financial Statements


Consolidated Balance Sheets	***


Consolidated Income Statements	***


Consolidated Statements of Changes in
Shareholders' Equity	***


Consolidated Statements of Cash Flows	***


Notes to Consolidated Financial
Statements	***


Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations	***


Item 3. Quantitative and Qualitative Disclosures about Market Risk	***




Item 4. Controls and Procedures	***




Part II. Other Information


Item 2. Changes in Securities and Use of Proceeds	***


Item 6. Exhibits and Reports on Form 8-K	***

Consolidated Balance Sheets












*Hibernia Corporation and Subsidiaries*		September 30			December 31			September 30
Unaudited ($ in thousands)		2003			2002			2002






Assets
Cash and cash equivalents	$	750,759		$	1,103,694		$	774,731
Trading account assets		5,778			8,561			9,962
Securities available for sale		3,614,848			3,511,153			3,176,565
Securities held to maturity (estimated fair value of $73,157, $146,369
and $180,176 at September 30, 2003, December 31, 2002 and
September 30, 2002, respectively)		71,232			140,525			174,405
Mortgage loans held for sale		284,703			526,288			470,388
Loans, net of unearned income		12,226,274			11,492,212			11,418,369
Reserve for loan losses		(213,280	)		(212,765	)		(212,343	)

Loans, net		12,012,994			11,279,447			11,206,026

Bank premises and equipment		209,621			209,974			203,745
Customers' acceptance liability		99			-			-
Goodwill		209,114			209,114			209,114
Other intangible assets		136,868			131,915			128,256
Other assets		269,413			271,990			279,986

Total assets	$	17,565,429		$	17,392,661		$	16,633,178






Liabilities
Deposits:
Noninterest-bearing	$	2,906,731		$	2,867,307		$	2,719,440
Interest-bearing		10,635,945			10,613,715			10,352,706

Total deposits		13,542,676			13,481,022			13,072,146

Short-term borrowings		969,623			575,448			562,681
Liability on acceptances		99			-			-
Other liabilities		224,199			553,088			348,089
Federal Home Loan Bank advances		1,101,904			1,102,241			1,002,412

Total liabilities		15,838,501			15,711,799			14,985,328






Shareholders' equity
Class A Common Stock, no par value:
Authorized - 300,000,000 shares; issued - 167,701,667,
166,252,171 and 166,210,736 at September 30, 2003,
December 31, 2002 and September 30, 2002, respectively		321,987			319,204			319,125
Surplus		506,332			490,057			487,564
Retained earnings		1,127,687			1,010,710			969,107
Treasury stock at cost: 12,479,310, 8,840,005 and
8,088,005 shares at September 30, 2003, December 31, 2002
and September 30, 2002, respectively		(215,711	)		(142,931	)		(128,458	)
Accumulated other comprehensive income		8,198			25,387			26,995
Unearned compensation		(21,565	)		(21,565	)		(26,483	)

Total shareholders' equity		1,726,928			1,680,862			1,647,850

Total liabilities and shareholders' equity	$	17,565,429		$	17,392,661		$	16,633,178




See notes to consolidated financial statements

Consolidated Income Statements
*Hibernia Corporation and Subsidiaries*	Three Months Ended September 30						Nine Months Ended September 30

Unaudited ($ in thousands, except per-share data)	2003			2002			2003		2002

Interest income
Interest and fees on loans	$	181,626		$	202,033		$	548,523	$	592,960
Interest on securities available for sale		32,878			40,929			110,521		122,496
Interest on securities held to maturity		1,092			2,732			4,324		9,390
Interest on short-term investments		965			1,205			3,016		4,809
Interest on mortgage loans held for sale		6,426			5,783			18,847		16,760

Total interest income		222,987			252,682			685,231		746,415

Interest expense
Interest on deposits		36,725			54,912			121,657		171,552
Interest on short-term borrowings		1,141			2,294			4,374		7,211
Interest on Federal Home Loan Bank advances		35,352			13,311			63,883		39,838

Total interest expense		73,218			70,517			189,914		218,601

Net interest income		149,769			182,165			495,317		527,814
Provision for loan losses		16,000			18,125			46,750		65,625

Net interest income after provision for loan losses		133,769			164,040			448,567		462,189

Noninterest income
Service charges on deposits		40,974			35,998			115,229		101,713
Card-related fees		12,483			10,319			36,210		29,088
Mortgage banking		44,390			(8,741	)		25,526		7,860
Retail investment fees		6,665			8,028			20,327		24,288
Trust fees		5,915			6,027			17,539		18,701
Insurance		4,914			4,289			14,241		12,277
Investment banking		2,914			2,965			9,359		11,724
Other service, collection and exchange charges		4,775			4,707			14,713		14,977
Other operating income		4,356			5,407			13,180		14,715
Securities gains (losses), net		(4,859	)		(1,399	)		5,341		(11,370	)

Total noninterest income		122,527			67,600			271,665		223,973

Noninterest expense
Salaries and employee benefits		75,756			72,607			228,607		216,666
Occupancy expense, net		9,570			9,349			28,681		27,524
Equipment expense		8,246			7,704			24,527		23,547
Data processing expense		9,117			8,459			27,430		25,315
Advertising and promotional expense		5,786			6,035			18,226		16,434
Amortization of intangibles		1,240			1,453			3,864		4,550
Foreclosed property expense, net		9,650			397			9,707		636
Other operating expense		30,487			29,808			91,736		88,329

Total noninterest expense		149,852			135,812			432,778		403,001

Income before income taxes		106,444			95,828			287,454		283,161
Income tax expense		37,182			32,672			100,611		98,234

Net income	$	69,262		$	63,156		$	186,843	$	184,927

Net income per common share	$	0.45		$	0.40		$	1.21	$	1.18

Net income per common share - assuming dilution	$	0.44		$	0.40		$	1.19	$	1.15

See notes to consolidated financial statements.

Consolidated Statements of Changes in Shareholders' Equity
*Hibernia Corporation and Subsidiaries*
Unaudited ($ in thousands, except per-share data)

	Common Stock		Surplus		Retained Earnings		Accumulated Other Comprehensive Income			Other			Comprehensive Income

Balances at December 31, 2002	$	319,204	$	490,057	$	1,010,710	$	25,387		$	(164,496	)
Net income		--		--		186,843		--			--		$	186,843
Change in unrealized gains (losses) on
securities, net of reclassification
adjustments		--		--		--		(36,972	)		--			(36,972	)
Change in accumulated gains (losses)
on cash flow hedges, net of
reclassification adjustments		--		--		--		19,783			--			19,783

Comprehensive income													$	169,654

Issuance of common stock:
Stock option plans		2,687		14,402		--		--			--
Restricted stock awards		60		523		--		--			--
Directors' compensation		--		337		--		--