SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR
15(d) OF THE SECURITIES |
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For the Quarterly period ended March 31, 2004 |
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or |
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TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES |
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) |
(617) 937-6700
(Registrant’s telephone number, including area code)
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
Indicate by check mark whether the registrant is an accelerated filer (as defined in Exchange Act Rule 12b-2). Yes ý No o
As of April 30, 2004 there were 66,110,416 shares of Common Stock outstanding.
INVESTORS FINANCIAL SERVICES CORP.
INDEX
2
PART I. FINANCIAL INFORMATION
Item 1. Unaudited Condensed Consolidated Financial Statements
INVESTORS FINANCIAL SERVICES CORP.
UNAUDITED CONDENSED CONSOLIDATED
BALANCE SHEETS
March 31, 2004 and December 31, 2003 (Dollars in thousands, except share data)
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March 31, |
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December
31, |
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Assets |
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Cash and due from banks |
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$ |
45,429 |
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$ |
39,689 |
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Federal Funds sold |
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185,000 |
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— |
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Securities held to maturity (approximate fair value of $4,928,619 and $4,308,578 at March 31, 2004 and December 31, 2003, respectively) |
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4,906,905 |
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4,307,610 |
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Securities available for sale |
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4,387,142 |
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4,296,637 |
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Nonmarketable 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 March 31, 2004 and December 31, 2003 |
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153,104 |
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199,530 |
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Accrued interest and fees receivable |
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76,451 |
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72,816 |
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Equipment and leasehold improvements, less accumulated depreciation of $54,730 and $47,683 at March 31, 2004 and December 31, 2003, respectively |
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73,943 |
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76,420 |
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Goodwill, net |
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79,969 |
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79,969 |
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Other assets |
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141,800 |
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101,901 |
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Total Assets |
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$ |
10,099,743 |
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$ |
9,224,572 |
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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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$ |
855,696 |
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$ |
334,823 |
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Savings |
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3,959,080 |
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3,682,295 |
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Time |
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160,512 |
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190,000 |
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Total deposits |
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4,975,288 |
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4,207,118 |
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Securities sold under repurchase agreements |
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3,479,681 |
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3,258,001 |
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Short-term and other borrowings |
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849,704 |
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1,098,087 |
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Due to brokers for open trades payable |
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32,870 |
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— |
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Junior subordinated deferrable interest debentures |
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24,774 |
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24,774 |
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Other liabilities |
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126,616 |
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95,757 |
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Total liabilities |
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9,488,933 |
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8,683,737 |
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Commitments and contingencies |
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— |
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— |
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Stockholders’ Equity: |
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Preferred stock, par value $0.01 (shares authorized: 1,000,000; issued and outstanding: none at March 31, 2004 and December 31, 2003) |
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— |
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— |
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Common stock, par value $0.01 (shares authorized: 100,000,000 at March 31, 2004 and December 31, 2003; issued and outstanding: 66,027,734 and 65,436,788 at March 31, 2004 and December 31, 2003, respectively) |
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661 |
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655 |
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Surplus |
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256,583 |
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242,662 |
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Deferred compensation |
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(962 |
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(1,076 |
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Retained earnings |
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319,961 |
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286,138 |
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Accumulated other comprehensive income, net |
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35,117 |
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13,006 |
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Treasury stock, at cost (26,508 shares at March 31, 2004 and December 31, 2003) |
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(550 |
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(550 |
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Total stockholders’ equity |
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610,810 |
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540,835 |
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Total Liabilities and Stockholders’ Equity |
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$ |
10,099,743 |
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$ |
9,224,572 |
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See Notes to Unaudited Condensed Consolidated Financial Statements.
3
INVESTORS FINANCIAL
SERVICES CORP.
UNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
Three Months Ended March 31, 2004 and 2003 (Dollars in thousands, except per
share data)
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March 31, |
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March 31, |
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Fees and Other Revenue: |
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Asset servicing fees: |
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Core service fees |
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$ |
76,094 |
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$ |
56,761 |
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Ancillary service fees |
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30,093 |
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17,385 |
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Total asset servicing fees |
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106,187 |
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74,146 |
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Other operating income |
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349 |
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770 |
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Gain on sale of investment |
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234 |
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— |
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Total fees and other revenue |
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106,770 |
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74,916 |
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Interest income |
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71,176 |
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60,349 |
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Interest expense |
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25,215 |
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21,566 |
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Net interest income |
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45,961 |
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38,783 |
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Net operating revenue |
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152,731 |
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113,699 |
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