| 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, 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 October 31, 2004 155,055,938 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. Unregistered Sales of Equity Securities and Use of Proceeds | *** |
| Item 5. Other Information | *** |
| Item 6. Exhibits | *** |
| Consolidated Balance Sheets | |||||||||||
| Hibernia Corporation and Subsidiaries | September 30 | December 31 | September 30 | ||||||||
| Unaudited ($ in thousands) | 2004 | 2003 | 2003 | ||||||||
| Assets | |||||||||||
| Cash and cash equivalents | $ | 956,214 | $ | 957,611 | $ | 750,759 | |||||
| Trading account assets | 226 | 3,853 | 5,778 | ||||||||
| Securities available for sale | 3,991,239 | 3,866,470 | 3,614,848 | ||||||||
| Securities held to maturity (estimated fair value of $40,647, $61,633 | |||||||||||
| and $73,157, at September 30, 2004, December 31, 2003 and | |||||||||||
| September 30, 2003, respectively) | 39,750 | 60,209 | 71,232 | ||||||||
| Mortgage loans held for sale | 87,445 | 195,177 | 284,703 | ||||||||
| Loans, net of unearned income | 15,502,030 | 12,882,986 | 12,226,274 | ||||||||
| Reserve for loan losses | (235,233 | ) | (213,275 | ) | (213,280 | ) | |||||
| Loans, net | 15,266,797 | 12,669,711 | 12,012,994 | ||||||||
| Premises and equipment | 283,360 | 217,399 | 209,621 | ||||||||
| Customers' acceptance liability | 2,374 | 131 | 99 | ||||||||
| Goodwill | 337,441 | 209,114 | 209,114 | ||||||||
| Other intangible assets | 33,862 | 130,996 | 136,868 | ||||||||
| Other assets | 354,662 | 249,771 | 269,413 | ||||||||
| Total assets | $ | 21,353,370 | $ | 18,560,442 | $ | 17,565,429 | |||||
| Liabilities | |||||||||||
| Deposits: | |||||||||||
| Noninterest-bearing | $ | 3,245,513 | $ | 2,827,642 | $ | 2,906,731 | |||||
| Interest-bearing | 13,496,215 | 11,331,877 | 10,635,945 | ||||||||
| Total deposits | 16,741,728 | 14,159,519 | 13,542,676 | ||||||||
| Short-term borrowings | 545,925 | 1,280,802 | 969,623 | ||||||||
| Liability on acceptances | 2,374 | 131 | 99 | ||||||||
| Other liabilities | 246,723 | 240,693 | 224,199 | ||||||||
| Debt | 1,925,153 | 1,101,812 | 1,101,904 | ||||||||
| Total liabilities | 19,461,903 | 16,782,957 | 15,838,501 | ||||||||
| Shareholders' equity | |||||||||||
| Class A Common Stock, no par value: | |||||||||||
| Authorized - 300,000,000 shares; issued - 170,643,760, | |||||||||||
| 168,214,757 and 167,701,667 at September 30, 2004, | |||||||||||
| December 31, 2003 and September 30, 2003, respectively | 327,636 | 322,972 | 321,987 | ||||||||
| Surplus | 551,784 | 515,289 | 506,332 | ||||||||
| Retained earnings | 1,301,175 | 1,171,537 | 1,127,687 | ||||||||
| Treasury stock at cost: 15,582,755, 12,953,260 and | |||||||||||
| 12,479,310 shares at September 30, 2004, December 31, 2003 | |||||||||||
| and September 30, 2003, respectively | (289,932 | ) | (226,970 | ) | (215,711 | ) | |||||
| Accumulated other comprehensive income | 18,926 | 12,779 | 8,198 | ||||||||
| Unearned compensation | (18,122 | ) | (18,122 | ) | (21,565 | ) | |||||
| Total shareholders' equity | 1,891,467 | 1,777,485 | 1,726,928 | ||||||||
| Total liabilities and shareholders' equity | $ | 21,353,370 | $ | 18,560,442 | $ | 17,565,429 | |||||
| See notes to consolidated financial statements. | |||||||||||
| Consolidated Income Statements | |||||||||
| Hibernia Corporation and Subsidiaries | Three Months Ended | Nine Months Ended | |||||||
| September 30 | September 30 | ||||||||
| Unaudited ($ in thousands, except per-share data) | 2004 | 2003 | 2004 | 2003 | |||||
| Interest income | |||||||||
| Interest and fees on loans | $ 217,797 | $ 181,626 | $ 600,043 | $ 548,523 | |||||
| Interest on securities available for sale | 41,362 | 32,878 | 120,220 | 110,521 | |||||
| Interest on securities held to maturity | 555 | 1,092 | 1,993 | 4,324 | |||||
| Interest on short-term investments | 461 | 965 | 1,766 | 3,016 | |||||
| Interest on mortgage loans held for sale | 1,383 | 6,426 | 5,475 | 18,847 | |||||
| Total interest income | 261,558 | 222,987 | 729,497 | 685,231 | |||||
| Interest expense | |||||||||
| Interest on deposits | 51,833 | 36,725 | 130,203 | 121,657 | |||||
| Interest on short-term borrowings | 1,605 | 1,141 | 5,131 | 4,374 | |||||
| Interest on debt | 16,281 | 35,352 | 39,361 | 63,883 | |||||
| Total interest expense | 69,719 | 73,218 | 174,695 | 189,914 | |||||
| Net interest income | 191,839 | 149,769 | 554,802 | 495,317 | |||||
| Provision for loan losses | 12,250 | 16,000 | 36,250 | 46,750 | |||||
| Net interest income after provision for loan losses | 179,589 | 133,769 | 518,552 | 448,567 | |||||
| Noninterest income | |||||||||
| Service charges on deposits | 48,115 | 40,974 | 133,637 | 115,229 | |||||
| Card-related fees | 15,994 | 12,483 | 43,844 | 36,210 | |||||
| Mortgage banking | 5,701 | 44,390 | 28,792 | 25,526 | |||||
| Retail investment fees | 7,887 | 6,665 | 23,723 | 20,327 | |||||
| Trust fees | 5,839 | 5,915 | 17,892 | 17,539 | |||||
| Insurance | 4,808 | 4,914 | 14,381 | 14,241 | |||||
| Investment banking | 5,017 | 2,914 | 12,454 | 9,359 | |||||
| Other service, collection and exchange charges | 5,585 | 4,775 | 16,210 | 14,713 | |||||
| Other operating income | 4,992 | 4,356 | 14,964 | 13,180 | |||||
| Securities gains (losses), net | 153 | (4,859 | ) | (20,387 | ) | 5,341 | |||
| Total noninterest income | 104,091 | 122,527 | 285,510 | 271,665 | |||||
| Noninterest expense | |||||||||
| Salaries and employee benefits | 87,347 | 75,756 | 248,242 | 228,607 | |||||
| Occupancy expense, net | 12,411 | 9,570 | 34,003 | 28,681 | |||||
| Equipment expense | 9,624 | 8,246 | 27,323 | 24,527 | |||||
| Data processing expense | 9,540 | 9,117 | 28,791 | 27,430 | |||||
| Advertising and promotional expense | 8,350 | 5,786 | 24,431 | 18,226 | |||||
| Amortization of purchase accounting intangibles | 1,904 | 1,240 | 4,616 | 3,864 | |||||
| Foreclosed property expense, net | (493 | ) | 9,650 | (708 | ) | 9,707 | |||
| Other operating expense | 37,668 | 30,487 | 105,514 | 91,736 | |||||
| Total noninterest expense | 166,351 | 149,852 | 472,212 | 432,778 | |||||
| Income before income taxes and minority interest | 117,329 | 106,444 | 331,850 | 287,454 | |||||
| Income tax expense | 40,823 | 37,182 | 115,942 | 100,611 | |||||
| Minority interest, net of income tax expense | 40 | - | 71 | - | |||||
| Net income | $ 76,466 | $ 69,262 | $ 215,837 | $186,843 | |||||
| Net income per common share | $ 0.50 | $ 0.45 | $ 1.40 | $ 1.21 | |||||
| Net income per common share - assuming dilution | $ 0.49 | $ 0.44 | $ 1.37 | $ 1.19 | |||||
| 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 | -- | -- | 215,837 | -- | -- | -- | $ | 215,837 | |||||||||||||||
| Change in unrealized gains (losses) on | |||||||||||||||||||||||
| securities, net of reclassification | |||||||||||||||||||||||
| adjustments | -- | -- | -- | -- | 1,873 | -- | 1,873 | ||||||||||||||||
| Change in accumulated gains (losses) | |||||||||||||||||||||||
| on cash flow hedges, net of | |||||||||||||||||||||||
| reclassification adjustments | -- | -- | -- | -- | 4,274 | -- | 4,274 | ||||||||||||||||
| Comprehensive income | $ | 221,984 | |||||||||||||||||||||
| Issuance of common stock: | |||||||||||||||||||||||
| Stock option plans | 4,601 | 28,072 | -- | -- | -- | -- | |||||||||||||||||
| Restricted stock awards | 63 | 705 | -- | -- | -- | -- | |||||||||||||||||
| Directors' compensation | -- | 83 | -- | 75 | -- | -- | |||||||||||||||||
| Cash dividends declared on | |||||||||||||||||||||||