| 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 March 31, 2004 | 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 April 30, 2004 155,157,712 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, Use of Proceeds and Issuer Purchases of Equity Securities | *** |
| Item 6. Exhibits and Reports on Form 8-K | *** |
| Consolidated Balance Sheets | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Hibernia Corporation and Subsidiaries | March 31 | December 31 | March 31 | ||||||||
| Unaudited ($ in thousands) | 2004 | 2003 | 2003 | ||||||||
| Assets | |||||||||||
| Cash and cash equivalents | $ 972,813 | $ 957,611 | $ 876,685 | ||||||||
| Trading account assets | 3,805 | 3,853 | 6,667 | ||||||||
| Securities available for sale | 3,865,660 | 3,866,470 | 4,015,164 | ||||||||
| Securities held to maturity (estimated fair value of $54,526, $61,633 | |||||||||||
| and $121,057 at March 31, 2004, December 31, 2003 and | |||||||||||
| March 31, 2003, respectively) | 53,023 | 60,209 | 116,580 | ||||||||
| Mortgage loans held for sale | 152,042 | 195,177 | 496,022 | ||||||||
| Loans, net of unearned income | 13,091,851 | 12,882,986 | 11,549,962 | ||||||||
| Reserve for loan losses | (213,503 | ) | (213,275 | ) | (212,882 | ) | |||||
| Loans, net | 12,878,348 | 12,669,711 | 11,337,080 | ||||||||
| Premises and equipment | 222,278 | 217,399 | 208,717 | ||||||||
| Customers' acceptance liability | 147 | 131 | 61 | ||||||||
| Goodwill | 209,114 | 209,114 | 209,114 | ||||||||
| Other intangible assets | 114,296 | 130,996 | 122,782 | ||||||||
| Other assets | 245,239 | 249,771 | 263,314 | ||||||||
| Total assets | $ 18,716,765 | $ 18,560,442 | $ 17,652,186 | ||||||||
| Liabilities | |||||||||||
| Deposits: | |||||||||||
| Noninterest-bearing | $ 3,180,643 | $ 2,827,642 | $ 2,963,956 | ||||||||
| Interest-bearing | 11,701,589 | 11,331,877 | 10,832,583 | ||||||||
| Total deposits | 14,882,232 | 14,159,519 | 13,796,539 | ||||||||
| Short-term borrowings | 640,129 | 1,280,802 | 526,648 | ||||||||
| Liability on acceptances | 147 | 131 | 61 | ||||||||
| Other liabilities | 260,760 | 240,693 | 422,479 | ||||||||
| Federal Home Loan Bank advances | 1,101,720 | 1,101,812 | 1,202,091 | ||||||||
| Total liabilities | 16,884,988 | 16,782,957 | 15,947,818 | ||||||||
| Shareholders' equity | |||||||||||
| Class A Common Stock, no par value: | |||||||||||
| Authorized - 300,000,000 shares; issued - 169,345,071, | |||||||||||
| 168,214,757 and 166,470,964 at March 31, 2004, | |||||||||||
| December 31, 2003 and March 31, 2003, respectively | 325,143 | 322,972 | 319,624 | ||||||||
| Surplus | 532,030 | 515,289 | 492,469 | ||||||||
| Retained earnings | 1,209,830 | 1,171,537 | 1,043,538 | ||||||||
| Treasury stock at cost: 14,059,260, 12,953,260 and | |||||||||||
| 9,607,418 shares at March 31, 2004, December 31, 2003 | |||||||||||
| and March 31, 2003, respectively | (252,604 | ) | (226,970 | ) | (157,217 | ) | |||||
| Accumulated other comprehensive income | 35,500 | 12,779 | 27,519 | ||||||||
| Unearned compensation | (18,122 | ) | (18,122 | ) | (21,565 | ) | |||||
| Total shareholders' equity | 1,831,777 | 1,777,485 | 1,704,368 | ||||||||
| Total liabilities and shareholders' equity | $ 18,716,765 | $ 18,560,442 | $ 17,652,186 | ||||||||
| See notes to consolidated financial statements. |
| Consolidated Income Statements | ||||||||
|---|---|---|---|---|---|---|---|---|
| Hibernia Corporation and Subsidiaries | ||||||||
| Three months ended March 31 | ||||||||
| Unaudited ($ in thousands, except per-share data) | 2004 | 2003 | ||||||
| Interest income | ||||||||
| Interest and fees on loans | $ 184,470 | $ 183,075 | ||||||
| Interest on securities available for sale | 39,921 | 39,029 | ||||||
| Interest on securities held to maturity | 767 | 1,798 | ||||||
| Interest on short-term investments | 658 | 1,377 | ||||||
| Interest on mortgage loans held for sale | 2,063 | 5,479 | ||||||
| Total interest income | 227,879 | 230,758 | ||||||
| Interest expense | ||||||||
| Interest on deposits | 37,061 | 43,320 | ||||||
| Interest on short-term borrowings | 2,292 | 1,500 | ||||||
| Interest on Federal Home Loan Bank advances | 10,083 | 14,207 | ||||||
| Total interest expense | 49,436 | 59,027 | ||||||
| Net interest income | 178,443 | 171,731 | ||||||
| Provision for loan losses | 12,000 | 17,750 | ||||||
| Net interest income after provision for loan losses | 166,443 | 153,981 | ||||||
| Noninterest income | ||||||||
| Service charges on deposits | 40,786 | 35,861 | ||||||
| Card-related fees | 12,517 | 11,076 | ||||||
| Mortgage banking | (7,149 | ) | (4,943 | ) | ||||
| Retail investment fees | 7,698 | 6,520 | ||||||
| Trust fees | 6,172 | 6,068 | ||||||
| Insurance | 4,807 | 4,754 | ||||||
| Investment banking | 3,784 | 2,831 | ||||||
| Other service, collection and exchange charges | 5,233 | 5,020 | ||||||
| Other operating income | 4,343 | 5,282 | ||||||
| Securities gains (losses), net | 1,865 | 9 | ||||||
| Total noninterest income | 80,056 | 72,478 | ||||||
| Noninterest expense | ||||||||
| Salaries and employee benefits | 76,008 | 74,606 | ||||||
| Occupancy expense, net | 10,128 | 9,319 | ||||||
| Equipment expense | 8,872 | 7,929 | ||||||
| Data processing expense | 9,207 | 9,418 | ||||||
| Advertising and promotional expense | 7,774 | 6,962 | ||||||
| Amortization of purchase accounting intangibles | 1,161 | 1,339 | ||||||
| Foreclosed property expense, net | 35 | 86 | ||||||
| Other operating expense | 31,874 | 30,504 | ||||||
| Total noninterest expense | 145,059 | 140,163 | ||||||
| Income before income taxes | 101,440 | 86,296 | ||||||
| Income tax expense | 35,419 | 30,096 | ||||||
| Net income | $ 66,021 | $ 56,200 | ||||||
| Net income per common share | $ 0.43 | $ 0.36 | ||||||
| Net income per common share - assuming dilution | $ 0.42 | $ 0.36 | ||||||
| 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 | Treasury | Accumulated Other Comprehensive Income | Unearned Compensation | Comprehensive Income | |||||||||||||||||
| Balances at December 31, 2003 | $ | 322,972 | $ | 515,289 | $ | 1,171,537 | $ | (226,970 | ) | $ | 12,779 | $ | (18,122 | ) | |||||||||
| Net income | -- | -- | 66,021 | -- | -- | -- | $ | 66,021 | |||||||||||||||
| Change in unrealized gains (losses) on | |||||||||||||||||||||||
| securities, net of reclassification | |||||||||||||||||||||||
| adjustments | -- | -- | -- | -- | 24,608 | -- | 24,608 | ||||||||||||||||
| Change in accumulated gains (losses) | |||||||||||||||||||||||
| on cash flow hedges, net of | |||||||||||||||||||||||
| reclassification adjustments | -- | -- | -- | -- | (1,887 | ) | -- | (1,887 | ) | ||||||||||||||
| Comprehensive income | $ | 88,742 | |||||||||||||||||||||
| Issuance of common stock: | |||||||||||||||||||||||
| Stock option plans | 2,145 | 12,810 | -- | -- | -- | -- | |||||||||||||||||
| Restricted stock awards | 26 | 288 | -- | -- | -- | -- | |||||||||||||||||
| Cash dividends declared on | |||||||||||||||||||||||
| common ($.18 per share) | -- | -- | (27,728 | ) | -- | -- | -- | ||||||||||||||||
| Acquisition of treasury stock | -- | -- | -- | (25,634 | ) | -- | -- | ||||||||||||||||
| Net tax benefit related to stock option plans | |||||||||||||||||||||||
| and ESOP | -- | 3,643 | -- | -- | -- | ||||||||||||||||||