SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the Quarterly period ended September 30, 2002
or
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the Transition period from to
0-26996
(Commission File Number)
INVESTORS FINANCIAL SERVICES CORP.
(Exact name of registrant as specified in its charter)
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Delaware |
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04-3279817 |
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(State or other jurisdiction of |
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(IRS Employer Identification No.) |
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200 Clarendon Street, |
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02117-9130 |
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(Address of principal executive offices) |
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(Zip Code) |
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(617) 937-6700 |
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(Registrant’s telephone number, including area code) |
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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 ý No o
As of October 31, 2002 there were 64,593,149 shares of Common Stock outstanding.
INVESTORS FINANCIAL SERVICES CORP.
INDEX
2
Item 1. Condensed Consolidated Financial Statements
INVESTORS FINANCIAL SERVICES CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
September 30, 2002 and December 31, 2001
(Dollars in thousands, except per share data)
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September
30, |
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December 31, |
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Assets |
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Cash and due from banks |
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$ |
81,936 |
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$ |
15,605 |
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Federal funds sold and securities purchased under resale agreements |
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120,000 |
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— |
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Securities held to maturity (approximate fair value of $3,444,558 and $3,157,209 at September 30, 2002 and December 31, 2001, respectively) |
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3,412,587 |
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3,135,784 |
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Securities available for sale |
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2,725,585 |
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1,621,661 |
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Non-marketable equity securities |
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50,000 |
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50,000 |
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Loans, less allowance for loan losses of $100 at September 30, 2002 and December 31, 2001 |
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138,998 |
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232,113 |
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Accrued interest and fees receivable |
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68,302 |
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59,751 |
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Equipment and leasehold improvements, less accumulated depreciation of $20,386 and $13,023 at September 30, 2002 and December 31, 2001, respectively |
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70,186 |
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42,618 |
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Goodwill, net |
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79,969 |
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79,969 |
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Other assets |
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67,655 |
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61,144 |
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Total Assets |
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$ |
6,815,218 |
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$ |
5,298,645 |
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Liabilities and Stockholders’ Equity |
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Liabilities: |
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Deposits: |
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Demand |
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$ |
375,784 |
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$ |
507,067 |
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Savings |
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2,311,034 |
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1,681,810 |
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Time |
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90,000 |
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90,000 |
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Total deposits |
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2,776,818 |
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2,278,877 |
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Securities sold under repurchase agreements |
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2,295,375 |
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1,663,312 |
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Short-term and other borrowings |
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1,175,529 |
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910,281 |
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Other liabilities |
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124,724 |
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79,123 |
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Total liabilities |
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6,372,446 |
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4,931,593 |
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Commitments and contingencies (See Note 9) |
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— |
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— |
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Company-obligated, mandatorily redeemable, preferred securities of subsidiary trust holding solely junior subordinated deferrable interest debentures of the Company |
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23,295 |
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24,274 |
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Stockholders’ Equity: |
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Preferred stock, par value $0.01 (shares authorized: 1,000,000; issued and outstanding: 0 at September 30, 2002 and December 31, 2001) |
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— |
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— |
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Common stock, par value $0.01 (shares authorized: 100,000,000 at September 30, 2002 and December 31, 2001; issued and outstanding: 64,583,399 at September 30, 2002 and 31,971,404 at December 31, 2001) |
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646 |
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320 |
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Surplus |
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230,124 |
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222,440 |
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Deferred compensation |
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(1,812 |
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(2,563 |
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Retained earnings |
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180,784 |
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132,877 |
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Accumulated other comprehensive income/(loss), net |
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9,735 |
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(10,296 |
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Treasury stock, par value $0.01 (10,814 shares at September 30, 2002 and December 31, 2001) |
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— |
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— |
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Total stockholders’ equity |
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419,477 |
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342,778 |
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Total Liabilities and Stockholders’ Equity |
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$ |
6,815,218 |
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$ |
5,298,645 |
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See Notes to Condensed Consolidated Financial Statements.
3
INVESTORS FINANCIAL SERVICES CORP.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (unaudited)
Nine Months Ended September 30, 2002 and 2001
(Dollars in thousands, except per share data)
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September
30, |
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September
30, |
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Operating Revenue: |
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Interest income: |
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Federal funds sold and securities purchased under resale agreements |
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$ |
680 |
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$ |
1,611 |
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Investment securities held to maturity and available for sale |
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181,394 |
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184,774 |
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Loans |
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2,891 |
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4,279 |
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Total interest income |
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184,965 |
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190,664 |
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Interest expense: |
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Deposits |
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31,777 |
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53,147 |
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Short-term and other borrowings |
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47,205 |
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60,075 |
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Total interest expense |
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78,982 |
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113,222 |
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Net interest income |
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105,983 |
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77,442 |
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Noninterest income: |
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Asset servicing fees |
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218,103 |
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179,308 |
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Other operating income |
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1,645 |
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2,378 |
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